Ethical Foreclosure Investing Strategies for Massive Wealth Creation
 

 © Copyright 2008 Asset Solutions 2100, LLC   All Rights Reserved

  

Disclaimer: The information in this educational manual is designed to provide accurate and authoritative information in regard to the subject matter covered. It is offered with the understanding that the presenters are not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert advice is required, the services of a competent professional should be sought.  Adapted from a Declaration of Principals jointly adopted by a committee of the AmericanBar Association and a Committee of Publishers and Associations

T.J. Marrs has performed hundreds of real estate transactions as a licensed California Real Estate Agent, an Oregon & Washington licensed Mortgage Broker & Mortgage Banker, 

and a real estate investor over the past 17 years. T.J. has also held professional certifications in securities and insurance. He is a decorated U.S. Naval Intelligence 

Officer who served during the Iran-Iraq War and the Cold War.

While parking his car to attend Midnight Mass on Christmas 1998, T.J. survived a near-fatal multiple stabbing attack in a church parking lot. Ever since then, T.J. has dedicated his life to helping others overcome their fears and obstacles so they 

can change their lives. T. J. has authored two books and multiple courses on real estate and is developing another on business success. He currently serves as Chairman 

of the Northwest Real Estate Investors Association. He now dedicates his time to his real estate investments, speaking internationally, and helping his students succeed 

in their businesses. He is the select author for one of the internet’s highest volume web sites on Real Estate, RealtyTrac.com. He has twice been interviewed by the Wall 

Street Journal and CNBC’s Power Lunch. He has also contributed to “The Idiots Guide to Foreclosure Investing” and “House Poor” (Harper Collins).

T.J.’s motto is “Helping people succeed, one person at a time.” T.J. invites everyone to try his success newsletter, available at: www.tjmarrs.com

Homeownership today is at an all-time high. Every American wants to own his or her own home. At least, those who understand the value of owning their own home do.

At an unprecedented level, our government is providing incentives to own homes. The banking system is offering record level low rates to entice people to become homeowners. This all began during the period following World War II, when the government made it a priority to provide housing for returning veterans. President Roosevelt created this program for the veterans so that they would receive better treatment and benefits in exchange for their service to the country. These measures eventually led to the GI Bill and the Federal Housing Administration (FHA). These events have caused a mass movement and understanding of the opportunity to own your own home.

Rather than live in poorly designed and cramped apartments with little economic opportunity or pride, homeownership gave Americans the dream of building their own little nest egg, which they could eventually use during retirement. We have long seen homeownership as a tool to provide community pride and improve the social condition of our entire society. These opportunities, combined with the postwar economic boom, affected the Baby Boomer generation. This entire generation has grown up with a higher standard and has really had to deal with the harsh economic conditions of the prior generation. Homeownership in a nicer place is an expectation, not just an opportunity to expand one's life.

As the demand for homes stays high, and the government and financial markets create sources of cheap loans, the economy has grown to record levels. Thus, we have seen amazing prosperity during these past 50 years.

Through all of the interest rate fluctuations, people still want to own their own home. Of course, they want it at the cheapest price possible. However, prices in some areas of the country have risen significantly faster than incomes can rise. When interest rates rise, this has a further impact on what we call the “affordability index.” Other factors, such as the rising cost of living, inflation, oil prices, and the effect of over-borrowing money, can significantly impact one's lifestyle. This is the basis for the fear of a “housing bubble.”

However, in reality, the only places to worry about such conditions are in the super high-end markets, which have seen the fastest appreciation in recent years. That is a market-by-market concern, not a national one. What goes up fast just might come crashing down fast. On the other hand, as long as demand is high, I believe housing is a great place to invest, as long as you have the right buying strategies and criteria. 

As far as foreclosure investments are concerned, we can make money in any market. If the market is up, consumers tend to over-buy and therefore overextend themselves. When a market is down, there is a general trend of more foreclosures in that market. We simply adjust our buying and selling strategies to fit the marketplace. As long as people need a place to live, we are in business. What a great business this is. More importantly, we are actually helping these people improve their situations and avoid a credit catastrophe that could ruin their futures.

Another condition that creates a solid marketplace for a foreclosure investor is the tendency for Americans to borrow too much. Then, something happens which disrupts their ability to pay. In some cases, people are simply credit abusers. In other cases, it is just bad luckthat leads to a distressed seller situation. Our society has actually evolved into one of “indentured servitude.” This means that we live our lives around paying our bills, living from paycheck to paycheck. As a result, some of us fail. The good news is we live in a great country where anyone can recover, if they make the effort.

I, for one, don't believe indentured servitude is a way to live, but merely a slow way to die. One of my goals in writing this book is to educate consumers about this reality and to educate people as to how this reality creates opportunity at the same time. I'm not suggesting one take advantage of people in distress, but merely to recognize how to help others improve their situation, while improving your situation at the same time. You really can get into the real estate investing business and build a fortune. It takes hard work, plus the mentality that you are building a real business.

Purchasing foreclosures is by no means an easy answer to lowering your cost of living or to venturing into a new business of real estate investing. I want to encourage you to be a real estate investor and a better consumer.

My motto has always been:

“You're automatically already in the real estate business. The real question is, ‘Are you profiting from it, or are you the one providing the profit to someone else?’ With this training, you have the opportunity to make that choice.”

Everyone relies on real estate to exist on this planet. From the beginning of time, human beings have fought and died over real estate concerns. Today, corporations rely on it for major portions of their holdings. Stocks come and go, but the real estate stays and generally continues to increase in value.

“Real estate is the business of all businesses.”

One simple objective of this book is to give you an introduction to the idea of purchasing a home at a discount. Another is to show you some great strategies that can help you increase your profits as a real estate investor, even if you don't have a lot of time, money, or credit. 

If you are a Realtor, my hope is that you will look at this business from the point of view of the consumer and the investor to see ways in which you could expand your business. Many realtors get into the business with the intent of becoming investors, only to find out later that they’re in a different business than real investors. Real estate licensing school does little to teach you how to invest the way I can. So, I hope this book can help you get closer to the dreams you had.

Good luck, and happy hunting.

T.J. Marrs

 

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 What have students said about T.J.’s materials and support…
 

I like the practical examples and hands on instruction.

A comprehensive, practical course combining excepts and actions to make them real.
Thanks.  Fred M.

The way T.J. presented his information in a local format. I feel I can get started without being scared, because I will know how to focus on one step at a time and not worry about the unknown. P.S. I have attended other seminars and have always come away overwhelmed and have not taken any action! With T.J’s coaching I an excited to get started and am looking forward to taking action.   Lisa R.

…This student found his first deal within 3 weeks for a profit of almost $30,000…..I almost negotiated the deal for a $10,000 profit, TJ showed me how to find another $20,000 I never realized I could get out of the deal on my own. Casey C.

…I did not believe you at first. Who would sell to us with such terms? Somebody would give their home away!? I thought it was just a once in a life time chance. In my first month I made $10,000 and it only took me a total of 10 hours of work.  More recently I acquired new TWO more deals with no money out of pocket, with over $85,000 in combined equity!  Chris B.

I pulled $55,000 cash out at my purchase closing on first deal with T.J….Steven M.

I am already wholesaling an average of 4 transactions a month, with a wholesale profit of about $2,000-$3000 cash each deal. With your help I am sure I will be able to perfect my deals so they become more profitable…..Oscar M.

…I am very grateful we have had the opportunity to work together and become friends.  By following your suggestions I have been able to create a bright future for myself.  I am very excited about this.  I realize I don't have to stay stuck in a j.o.b for the rest of my life.  I realize I have the personality and drive to be successful, but I know many people are not risk takers and may not take enough action to change their lives.  I tried to say something today to motivate the people in your training….Leaha L.

I've always heard: "them's that can… do; them's that can't… teach." It's good to find someone who can, and teaches!  J. Jessup

I have one deal complete and 5 others started (that’s over $1m in properties). “You have made real estate investing processes so easy to understand, given the multitude of marketing tips, and new time saving auto forms, makes the investor more confident about the paperwork. You’ve done it all for us, except talk to the motivated sellers (and the new CD of TJ talking to sellers does that too)."

“I have been looking for a program s comprehensive as this for years. I would highly recommend this course for anyone that is serious about operating a real estate investment business!”   Debbie T.

You're too good!!  You REALLY do want us to succeed don't you??:-)) Thank you very much, TJ  Briana W.- Indiana

I definitely know I am exactly where I need to be (with your program). I continue to go through your course and find that it is as complete as a course could be. Thank you
for that….Scott S.

Thank you for your reply and the e-book . I just finished the 45 minute audio and all I can say is WOW !!!  It appears you  have been doing this for a  long time. You did lose me on the whole trust thing at the end of the audio but most of the rest I could comprehend. …Jason

I took the "$5,000 in 15 Days Challenge" program after last Wednesday's (11/17) call and I'm just writing to tell you that tomorrow, Sunday 11/22/04, I am going to meet with 2 sellers on 2 properties!

Property 1 was actually taken sub2 by another local investor who has too many projects going and she wants to pass it on. She's already even gotten 5 or 6 potential tenant buyers for the property. All I have to do is pay her an assignment fee (which I can get from a portion of the TB's option payment) and the place will be mine (or rather, my TB's!).

Property 2 is a pre-foreclosure. The owner is willing to just walk away, basically. She's 3 months behind, owes $256k and the property is worth approx. $280k. Might take this one over for myself! It's a nice place on 5 acres. Or maybe I'll flip it to a retail buyer, leaving them some built in equity so that I can move it fast and walk away with $12k or so.

Any tips or advice on these would greatly appreciated. Thanks for your course, TJ. It's down to earth, practical and well laid out. I love the fact it came with all the forms, too! Take care …Annie Anderson

Thank you for helping me reach my peak potential as a real estate investor.  Lonnie Wiig