Common Newbie Mistakes

Hi Folks,

Bill and I are in Clinton, Iowa getting our space ready for our first training class. We are so excited to hold training classes here. Doing training in Iowa allows us to add a bus trip to our class! We are so excited about that. I love going on bus trips!

We try to buy one new rental each time we come here. We have a really cute place we just took over last month and are in the process of painting it for our new tenant. We had over 70 responses to our rental ad...it's crazy here.


We just returned from a 4-day class in Hawaii. Pete Youngs was gracious enough to take our class on a bus trip there. It is so much fun to meet new students who are looking to begin rehabbing. Whenever I meet new rehabbers or new investors of any kind - I always want to give some advice - so here goes...

I remember the excitement of being a new investor. I was so excited that I wanted to buy every deal that came my way. The excitement of “the deal” can get you into trouble. Because of that excitement many new investors don’t always look at the deal from an objective viewpoint.

I think one of the biggest mistakes new investors make is that they want to rehab the property themselves to save on the rehab costs. This is fine if you have the skill, the tools, and the time. Unfortunately, what I often see happen is that new investors try to work on the property on weekends and in their free time. BIG mistake!

Picture this, you worked hard all week and now the weekend is here and it’s time to work on your new rehab project. The first weekend is so exciting. You see such great results after the end of the weekend that you can’t wait until next weekend to do it again. The next weekend comes and you’re really tired, but it’s time to work on the house. You sleep in late on Saturday and end up putting in a half-day on Saturday and full day on Sunday. You still see results, but you are really tired and have to go back to work in the morning.

The third weekend comes and now you’re really beat from no time off for three weeks. You sleep in Saturday and work on Sunday. As each weekend passes, less work is getting done. Soon you are either exhausted or going every other weekend. Now several months have passed and you are making extra hard money payments, your property is still not finished, and you are beat.

What did you save? Nothing! It would have been cheaper to hire a crew and pay them as opposed to making extra hard money payments and burning yourself out. The worst part is, your property is still not sold!

Another mistake I often see is investors partnering with people they don’t really know because they don’t have the money to do the deal themselves. Just because you meet someone at one of the investment clubs, does not mean that person needs to be your partner. Take the time to investigate anyone you may be thinking of partnering with. Call a group leader and ask for a reference, ask the person for bank statements, go to the courthouse and see if they truly are buying and selling properties. Do your due diligence now, draw up a detailed partnership agreement (be sure to discuss loses), and pray for the best.

How about overextending yourself? I see many new investors, who have a few dollars saved, buy more than one property. Unless you have a lot of carrying money and free time, this can turn into a bad situation...fast. Do you have the time to oversee several crews, do you have the time to take all the ad calls, can you show the house everyday and then do open house on the weekends? Be care not to get so excited that you buy everything you see.

Until you have some first-hand experience, stick to one deal at a time, hire someone to do the rehab, and when the property sells, buy another. Being an investor is a great way to earn a living, just be cautious.

Folks....please take my advice. I can't tell you how may people I have seen go bankrupt trying to make it big as a real estate investor. Follow my advice and you'll do great!!!

Have a Blessed Day,

Dwan

BTW - Pray for all the people here in the Midwest. There is so much flooding. It's really sad. We are one block off the river and the water is high!!! Kinda un-nerving:-).

Ace the BPO Everytime!

This is Gary Prescott. Gary runs our Apprentice Week in Florida. He is a superstar and makes millions every year and has since day one.

Watch as he does a live BPO - notice how he points out every detail- the floors, the smell, everything...it is so funny.

This is exactly how a BPO should go down....



OK ... OK ... I could not figure out how to copy the video from my YouTube page to here, so you'll have to go to my YouTube page to watch the BPO...sorry:-(

www.youtube.com/dwanbenttwyford


It's worth taking a look at - Gary is awesome!

Thanks,

Dwan

Deal Finding Favorites

Good Morning Folks,

Another beautiful day in Hawaii. Today is the last day of our boot camp. I am sad... This means we leave soon. Tomorrow we are going snorkeling. I can't wait.

Yesterday, the class loaded up on a bus and looked at foreclosures all day. It was such a blast! It never ceases to amaze me how many people still say that they can't find good deals. Folks, deals are falling out of the sky right now....

I want to cover a few of our favorite "deal finding" techniques...

There is an over abundance of deals out there right now. We think that many new investors, who watch too much late-night TV, are under the impression that if they decide to become an investor, the “investor fairy” will drop deals out of the sky. Not true! Investors actually have to work just like the rest of the world. The difference is that we are not stuck in a nine to five rut and bound by the bosses’ rules. Our job is fun, profitable, we make as much as we are willing to work for, and we help people along the way.

We want to share a few of our favorite methods for finding deals. First and foremost, the oldest method in the book: knocking on doors! We’re here to tell you that knocking on doors is still the best way to find deals because other investors hate to do it. The biggest problem is that investors don’t know what to say. It’s simple, just tell the homeowners that you were at the courthouse doing some research and noticed that they have a pending problem with their property and you‘d like to help. NEVER mention the “F” word…. get your mind out of the gutter.. we mean foreclosure. Ask them if they took care of it. Typically they say, “Yes.” Ask what they did… filed an answer, sold it, brought the back payments current, what? You can tell by the blank look on their faces that they haven’t taken care of anything. Offer your assistance and move forward with your deal.

What about postcards? Do you religiously mail them? To whom? Most investors mail postcards to people in foreclosure. This is a great idea, but did you know that there is a wealth of other information that is public knowledge? Try mailing to people in probate; going through a divorce; in bankruptcy; and landlords who just walked out of eviction court. This information is public knowledge that the typical investor doesn’t tap into. NEVER be typical.

What about mailing lists? Have you ever considered buying a mailing list and “farming” neighborhoods? It works for Realtors, why won’t it work for you! We buy lists by the zip code and mail where we want to own property. Doesn’t it make sense to have several properties for sale in the same area opposed to all over the county?

How about phone calls? How often do you sit down and call foreclosures? Never? Why not? With a criss-cross directory you can find almost anyone. Investors, take the time to find people who have moved or changed their numbers. If they have moved, you have a deal because the mental attachment to the property is gone.

Do you run ads in newspapers? Why not? Many investors think ads are too expensive. How many deals do you have to do to pay for a year’s worth of ads? One? We’ll give you a little known tip: place your ads under “money to lend.” Many times the homeowners’ first choice is to save their house, not sell it. Once you have them on the phone you can negotiate your way into the deal.

You will make as much money as you are willing to work for. Our question for you is: how much are you willing to make? The sky is truly the limit. The bottom line is this, there are thousands of deals out there. If you don’t make the effort to find them, other investors will. We know because we’re one of them!

I have to get back to class....have a great day and go find some people who need your help.

Remember - always put the homeowners and their needs before your paycheck. You have lots of deals around the corner and they have one chance to start over...give them a fair shot at a new start!

Have Blessed Day,

Dwan
www.youtube.com/dwanbenttwyford

Kodakgallery.com Slideshow - Clinton, Iowa

Hi Friends,

We received a slide show from a friend in Clinton, Iowa. We wanted to share what a sweet town our training classes will be held in.

Bill and I are are so excited to have an official training center. Iowa is such a great state to invest in. Bill and I are 50'ish and we want to invest in areas where growth is steady. I want to be able to count on my rental income as I approach my 60's and 70's. We feel certain that we'll be able to by investing in the Midwest.

When you attend our training classes, we'll take you on buses to view properties that will be available for investment purposes.

It's very exciting.

We are still Hawaii, having a blast and teaching a great class.

Talk to you soon....

Dwan
Kodakgallery.com Slideshow

How to Present Yourself to the Bank During the Short Sale

Hi Folks,

Wow! I never got over how great Hawaii is...warm, sunny, nice people, great food, did I mention - warm:-).

We are super excited to teach this class this week. We have almost 150 people coming! We are adding a day on the bus to tour houses on the island...maybe we can find something for ourselves:-).

When you first start doing short sales, you may not know how to present yourself to the bank. Here are some tips that should help...

The key to success is to pin the rep down as to when you can expect an answer. If you are dealing with a bank for the first time, you may want to call the loss mitigation department to confirm that the bank accepts short sales before you spend time preparing the entire package.

All of the larger banks do short sales:

• Washington Mutual
• Bank of America
• Wells Fargo
• Countrywide Bank
• First Union
• Option One Mortgage Corporation
• Ocwen Financial Corporation
• First Franklin
• Litton Loan Servicing

There are many more. The problem with calling the bank first is that you may get a new person who has no idea what a short sale is and tells you no when, in fact, the bank does do short sales. We prefer to prepare the package, call loss mitigation, and ask who we need to fax the package to in order to get our deal accepted. We assume that all banks will say yes.

Most banks do say yes to some sort of a short sale. If you have a property worth $100,000 with a $100,000 mortgage balance, and the bank accepts $90,000, the bank considers that a short sale. It’s just not a short sale we would accept.

If the bank does not have a loss mitigation department, ask for the foreclosure department, workout department, loan modification department, late payment department, bankruptcy, or who ever helps homeowners in distress.

Give the seller’s name and loan number and ask for the representative who is handling the seller’s account. Once you have the right person on the line, ask for the fax number and fax the authorization to release form while you are on the phone with the rep.

Before you begin dealing with the loss mitigation reps, it is important you understand the mind-set of this person. Most of these folks are overworked and underpaid. Remember, some have as many as 700 files on their desk at any given time. Because these reps are so overwhelmed with their case loads, they often blow you off on the phone if you don’t appear to know what you are doing.

There are several ways to represent yourself to loss mitigation:

• As a friend. You could represent yourself as a friend trying to help. The problem with this approach is that the rep may think you have no experience and may not want to bother with you. On the positive side, the bank may like the fact that you are not a smooth-talking investor.
  
• As an investor. The rep may think that as an investor you are out to take advantage of the homeowners as well as make a killing from the bank’s loss. On the positive side, the rep will like the fact that you have experience and will be less trouble than someone with no experience. With bank reps having as many properties to unload as they currently have, presenting yourself as an investor is a really good thing. The reps know that you have experience, that they won’t have to train you, and that you will make their hectic job easy.
  
• As a real estate agent (if you have a license). The bank realizes that as an agent you are a neutral third party, but the bank may not have the confidence that you will follow through without a buyer, because agents show houses, not purchase them. On the positive side, the bank may take your offer more seriously because you are an agent and are considered a professional.
  

You have to decide which role best suits you. We have been able to use all three with great success. There is no right or wrong way to present yourself. The key is to let the rep know that you are easy to work with and will make the transaction as smooth as possible.

When speaking with the loss mitigation representative, always be professional and refer to the sellers by their first names as often as possible. Bring as much emotion into the conversation with the rep as possible in the hope that this will help the rep’s decision to accept a short sale become more meaningful rather than just financial.

Your initial conversation with the loss mitigation representative will go something like this:

You: Hello, Mary, my name is John and I am working with Bob and Sally Brown to help them with their situation. May I have your fax number so I can send you my authorization to release?

Bank: Sure, my fax is 555-456-7890.

You: Hold on, I’ll send it right now. (Fax it while you have the rep on the phone.)

Bank: Okay, I’ve received it. How can I help you?

You: As you know, Bob and Sally are in foreclosure. I told them I would do my best to help them if I could. Upon researching the property it looks as if they owe more than it’s worth. Bob thinks their mortgage balance is $100,000. Is that correct?

Bank: Yes, it is.

You: Great! When is the property set for the sheriff’s sale? My real estate agent says the property is worth only about $40,000 to $50,000 because it needs so much work. Based on the fact that Bob and Sally owe far more than their property is worth, I’m willing to purchase the property, but only if you can take a short sale. Where do we need to be pricewise to get this deal closed?

Bank: Fax a sales contract and a net sheet and we’ll see what we can do.

You: Great, Mary. I will have that faxed to you as soon as possible. I’d like you to know that I am prepared to close quickly and will not make you work hard on this deal only to bail out at the end. I can close as soon as you can get me a yes.

Bank: Fine.

You: I’d like to ask you a few questions if I may. Do you make the decisions or does your boss?

Bank: My boss does.

You: Great. How often do you meet with your boss?

Bank: I meet with my boss twice a month.

You: Great. When was the last time you met with your boss?

Bank: We met last week.

You: So … if I get you everything you need today, will you be able to present my offer to your boss next week?

Bank: Yes, if you get the information I need I’ll present your offer next week.

You: Okay, great. I’ll get you as much information as I can by the end of the day. Then I’ll call you to see if my offer is in a range that your bank can accept. What percentage does your bank usually discount?

Bank: It’s different with every deal. Get your offer to me and we’ll discuss it then.

You: One last thing: I just want to remind you that I can close quickly. I am sending you a cover letter, a sales contract, a hardship letter from the homeowners, a list of repairs, a net sheet, and pictures. Is there anything else your bank requires?

Bank: Wow, it sounds like you have a great package ready. That will be plenty of information to get started. Get your package to me and I’ll do my best.

You: Great, I’ll stay in touch.

See how often we use the homeowner’s names? We also reassured the rep that we could close quickly. We also told the rep what we were sending and asked if there were any other items the bank required. This shows your professionalism and experience.

Once your package is submitted, follow up until you get a yes.

OK - that's it for now. I have to get some sun before the sun sets...

Have a Wonderful Evening,

Dwan

www.youtube.com/dwanbenttwyford

Look at the bobble head video - it's so funny!

Another Successful Student

You have to LOVE this!!!!!!!!

She is such a great girl and I am so very proud of her... This could be you:-)....

Getting Through a Stonewalling Lender

Good Evening Folks,

I am headed to Hawaii and I wanted to make sure I wrote to everyone before I left. We are doing a boot camp there so I will be blogging. I went in April for two weeks and was MIA most of the time:-). Hawaii is one of my favorite places to visit - so peaceful, warm, great beaches, it is wonderful.

We have hired a few people to help us make some major changes - we are moving all our training classes to a state-of-the-art facility in Iowa, we are making a membership site with all kinds of great freebies for those who register, building an entirely new web site, starting a web TV show, offering all sorts of great services like tenant checking, online rental payments, property maintenance, and so much more. Just wait until it is all launched.

Working on all this has kept me really busy. I have been writing letters and making flyer's and posting information and working my butt off. My goal is to provide you with an amazing place to learn online - The Investors Edge University - is taking on a new life.

Once I get everything launched - I will post new information daily. It's a big commitment on my part because I will have to get online no matter what I am doing:-). I'm excited though. I need some structure on my life:-). I lose all structure in the summer when no kids are getting up for school - I sleep in, walk the dogs in the middle of the day, stay up really late, and just get out of control:-). It's a good life.

My youngest, Billy, just got his drivers license today! Another 16 year old on the roads - watch out. No seriously - he is a really good driver. All three of the kids are. It's hard to believe all three of my kids are so grown up. I am excited to have raised one amazing daughter and to have come into Billy and Kris' life when I did and get to be part of their raising as well. It's been a real blessing to have raised three wonderful children.

So, what does all this have to do with real estate investing - nothing. Just felt like saying hi to everyone before my 200 hour flight:-). Have a great evening, spend time with family, turn off the TV, make good use of this beautiful night...

Before I go - I wanted to give you some tips on how to GET THROUGH A STONEWALLING LENDER...

Trying to get through to the right person is difficult at times. Getting that individual to actually answer their phone is even more difficult. That’s why it’s important to get the fax number or e-mail address of the person you will be working with. Many times, their voice mail will tell you not to leave a message more than once in any 24-hour period. That’s how inundated they are. The trick is to do your best to get the rep’s e-mail address.

E-mail is one of the best ways for them to communicate with you. But if you can’t get an e-mail address and phone tag doesn’t work, then fax them repeatedly until you are contacted. They have so many delinquent loans they are dealing with that files are often pushed to the bottom of the pile. Constant communication helps keep your short sale on the top of the pile. We don’t want you to be so pushy that the rep doesn’t like you, but be professionally persistent enough to be taken seriously, even though you are a pain. Have you ever heard that the squeaky wheel gets the oil?


We have faxed the same rep over 200 times in one day … seriously. On one particular day, a rep simply refused to call us back. We had left over 13 messages. We were both very frustrated and were at our wits’ end. We don’t know what came over us, but we decided to fax until we got a call back. We began faxing throughout the day. Finally, at the end of the day, the rep called, yelling, “You faxed me over 200 times today! What is wrong with you?!” We stated that we hadn’t received a confirmation and didn’t realize how many times the fax had gone through. The rep stated that she would never work with us, because we had gotten her in trouble. We reminded her that tomorrow was a new day and we had nothing to do tomorrow except fax her again, and, after a long pause, she took our deal. It was great!

Don't let the bank push you around - stay tough....

BTW - you have to watch the bobble head video I put on my youtube page. It is hysterical:-).

Have a Blessed Day,

Dwan
www.youtube.com/dwanbenttwyford

Memorial Day

Hi Folks,

Sorry I have been off a few days...lots to do before we head to Hawaii.

Today is Memorial Day ... Do you know what this day signifies? It is a day to remember all the men and women who have fought for your freedom - freedom to read blogs, watch youtube, attend a seminar openly, be your own boss, marry who you want, for men and women to walk and talk openly, for your right to vote, for everything you should hold dear.

I hear so many people complain about America. I have traveled to over 30 countries - and we ARE blessed! We live in the greatest country in the world. So many people have sacrificed for our rights. I hope all of you take a moment today and say a prayer - not just for the fallen soldiers, but every single person who has fought for you whether you wanted them to or not. So many people came back maimed, mentally destroyed, lost homes in foreclosure, had wives or husbands cheat on them, weren't here to see their babies born, and so much more.

When I hear people complain about America - I get so upset. My thought is - if you don't like it - move out! Most Americans wouldn't last one week in another country. Much of the world is very poor, has little resources, had no technology, or offers little opportunity for you to become a self-made millionaire.

I don't mean to be on a soap box, but most of us really do take for granted what a great life we have. Even with all the foreclosures, the high gas prices, the recession we are supposed to be in - we are still the greatest country in the world. Our country was founded on Christian values and I hope we can remember that - God has truly blessed our country.

I have some great stuff coming up this week, so stay tuned.

Have a Blessed Day,

Dwan
http://www.theieu.com/

Changes in Freddie Mac/Fannie Mae Lending

Hi Friends,

Good afternoon ... I hope this posting finds you well. Before we get down to business, I have to tell you how excited I am that David Cook won American Idol. If you are reading all my posts, you know I always watch Idol ... what can I say - I do waste time once in a while, I guess:-). I think what excites me is that I see people get to live their dreams. I am living mine and it is the greatest feeling in the world. I teach to help you live yours and I get all weepy watching others live theirs. I was so excited last night I screamed when he won:-).

OK - down to business ... Freddie Mac has made a change to their lending guidelines - they are NOT refinancing properties that have been held in an LLC at any time in the previous six months. What does this mean to us? Nothing really - it just means we have to plan a little better.

• If you have any properties you plan to keep for long-term, this won't affect you at all.
• If you have a property you want to refinance and it is in an LLC - take it out of the LLC seven months prior, refinance it, and then put it back into the LLC.
• Find a lender who is willing to refinance a property in an LLC - other than Freddie Mac or Fannie Mae.
• Put the property into a Land Trust naming the LLC as your beneficiary.
• Do what we do and take properties "subject to."

We take properties subject to. Once we accumulate several, we make the homeowners payments on time for awhile, and then refinance them all at once using different banks. This way, I am not applying for 10 loans at the same bank. I am applying for 10 loans at 10 different banks. It is much easier to qualify this way. I do all my re-fi's at once and then collect rentals for awhile and do it again. This also gives me lots of different banks or work with when I do need to borrow money.

As lenders, the government or the IRS try to change laws, we have to stay ahead of the game. Most of these new laws in the foreclosure business are in place to prevent homeowners from being taken advantage of. Sadly - there are lots of predators out there. A few bad apples ruin it for the rest of us.

As long as we stay ahead of the game, run our business ethically, and ALWAYS do what is right for the homeowner - we can sleep at night without worry of going out of business.

If you don't already have a Land Trust - I'll give you one. Email me at www.dwan@theieu.com and request a FREE Land Trust. I'll email you the one I use ... FREE!

Don't wait - email today - also ... we are having a scratch and dent sale on some products that came back to us slightly damaged. If you need something, name it in your email, and I'll have Billy call you and see what we have left. We are selling things as low as $149.

Have a Blessed Day,

Dwan

BTW - Fannie Mae hasn't adopted this policy yet, but, most likely, will very soon.

www.theieu.com

Permanent Boot Camp Location

Hi Folks,

I am so excited! We have made the decision to use one of our buildings in Clinton, Iowa as a permanent boot camp location. I know some of you are already saying, "I'm not going to Iowa!" Hey - it's OK...you'll be glad you did.

We really want to help you to become as successful as possible. By holding classes in one location, we can add a bus trip to the classes. In addition, we own rentals there and will be able to offer many new services:

• State-of-the-art location
• Catered lunches
• Parties on the rooftop
• A bus trip to look at and PURCHASE properties right where we invest
• Monthly property maintenance
• Someone to process rental applications for you
• Handy men you can trust
• MUCH cheaper hotels
• Riverboat gambling
• and much more

We are really excited to make this change and we hope and pray you will support our decision. In this tough market, we feel it will be a major asset for you to be able to invest where we invest. We can't guarantee success, but if you follow what we do - you should have the same results ... rentals that are FULL and CASH FLOWING!

We have done very well in river front towns and want to offer the same to you. We are planning to hold the first class in July. Instead of teaching in Chicago - we are going to try to have the space ready for - The Investors Edge University Training Center.

If you are struggling in this market, please plan to attend a class as soon as possible. Our goal is to teach you how to survive the crashing market and come out on top.

On a sad note...one of my dogs - Ruthie - has had cancer for a while. We had to put her to sleep today. It is a sad day for me, so say a little prayer for me today. Thanks for you support...

Have a Blessed Day,

Dwan

www.theieu.com

What To Do if Your Rentals are NOT Producing

Good Afternoon Friends,

I received this response to one of my posts and I want to share it with you...Again - this is why I dedicate so much of my time to teaching. God has given me a gift and a business I can share with others that can change their lives. Thanks for your support. Each time I read a letter like this, I thank God for the blessing of being part of your life and for you being part of mine...

Dear Dwan,
I am a real estate investor who for several years has done very well. I am a buy and hold investor as well and I, too, enjoy sharing and educating along the way. I had purchased rehabbed and then refinanced. This became my income and artificially produced a very high income I became accustomed too. Last year when the lending business changed overnight, my income was gone...who moved my cheese?

Since then, I have gone back to work in the industry I was in prior to becoming a full time investor. I have to say I love the work and the people, and yet I love the freedom being self employed gave to me and my beautiful wife. Unfortunately, I also had a property manager who has been less than 100% ethical. I have a total of 64 properties, of which 19 are building lots. The majority of my rental are with this one PM company. So I received a double whammy wake up. Instead of me getting my 14-15k per month I began getting 1k-2k per month.

I then began a short sale process to sell my properties. The real estate agent took so long to do their job (third one hired to do the short sale) that the properties are now being foreclosed on. I am reading your book, which I received when I attended a seminar in December. It is renewing my strength and confidence. And now with reading your subject to, and using land trusts to take possession of your rentals, this will be the direction I will head.

I am inspired and re-committed to get back to rebuilding my real estate, and your blog, your book and the stories within have been a direct catalyst.

God Bless you and thank you.

Wow! Thanks for the kind words. I do want to offer some advice right now. If you have 64 properties, sell some of them and pay off the others. Say you were able to sell off 50 - use that money to pay the other 14 off completely. This way you'll still have several rentals to start over with.

I realize that the market is down - but - did you know that you can do your OWN short sales. Call the bank, explain that you have 64 properties that are in foreclosure, get the bank to agree to accept a short sale and list them in the MLS - "subject to a short sale." You should get a ton of offers. If other investors by any of them from you, have them give you some cash at the closing. Use the cash to pay off the others or if there are any with equity, sell them in a package to pay off others.

Put them in smaller packages - maybe 6 or 7 in a group. Advertise them on www.craigslist.com. We have had great response buying and selling on craigslist. If they are bundled together, you might get some interest. Folks, if any of you are stuck with unwanted rentals, try this. You'd be surprised what you can come up with when you need to.

Sadly, markets like these can catch people with their pants down - there are hundreds of thousands of investors who got caught up in the pre-construction craze sitting with 1/2 finished properties that now require a payment. It's unfortunate...

The good news is that you can rebuild and be much better off. Did you know that Henry Ford went bankrupt 7 times? Think about this - started a company ... filed bankruptcy; started another company ... filed bankruptcy; started another company ... filed bankruptcy; started another company ... filed bankruptcy; started yet another company ... filed bankruptcy; started yet another company ... filed bankruptcy; started another company ... now it's getting painful just to read ... filed bankruptcy; started Ford Motor Company and many of you now pay him.

Think about what it must have taken to go bankrupt 7 times! All your friends thinking you are a nut for starting another company, people losing faith in you, you losing faith in yourself...what perseverance it must have taken.

So, when a market like this catches you off-guard, turn lemons into lemonade....

• Sell some of your rentals to pay off others.
• Rent to people in the Section 8 program.
• Use the Section 9 program - people with aids.
• Use programs for people with substance abuse.
• Use program for people just getting out of jail.
• Use special needs housing programs - handicapped people.

There are all sorts of programs where the government will PAY you HUGE amounts of rent. All you have to do is search them out and use them. ALL my tenants are from the Section 8 program. My rent is paid by the government and I am getting rent increases every year. Nothing is vacant and none of my rent went down during this housing market.

I like to think of government programs as "recession proof" rentals. There is no person elected into public office who would sign a bill stopping programs for the poor and handicapped. It will never happen.

Folks, this does not have to be the end of the world - change what you are doing and you will come out on top.

Hope this helped some of you. Rentals can make you very wealthy and can also cause you to lose everything. Even if you have lost everything because of rentals - do what I said the other day - use subject to's to rebuild during this market. You will come out on top.

Buy in places like the Midwest. Especially river front towns. Gambling boats are huge and anyplace along a river will soon have a gambling boat - which means more jobs - which means more hotels - which means more jobs - which means new industry will move in - and so it goes...

Have a Blessed Day,

Dwan

www.youtube.com/dwanbenttwyford

Rising Foreclosures and Subject To's

Hi Friends,

The rising foreclosure rate is staggering. I read today that in some counties in Colorado 1 in every 86 homes is in foreclosure. It's so hard to imagine. How can so many people be losing their homes?

I was talking with another educator yesterday and he said there is a Bill on the table right now to outlaw "subject to's" in the entire country. I would hate to see that happen because that is how we take our rentals. Whenever you hear of anything like this - do something about it. We are planning to support a lobbyist who is going to bat for investors nationwide. Sadly, we have no real voice in Washington. As I get more information, I'll let you know what you can do to be part of the solution.

Speaking of subject to properties... this is how we get most of our rentals. We have the homeowners deed the property into a "Land Trust" and then we become the beneficiaries. We have an attorney who is our Trustee. As beneficiaries, we are the owners of the property. Many people don't understand what a land trust is and how it works.

The deed is filed into the name of a land trust - instead of into YOUR name. That deed is filed at the courthouse and the land trust is now the new owner. The actual land trust itself is a document kept by you. In the document it states who is the trustee (the person who represents the land trust) and who is the beneficiary (the owner of the trust and; therefore, the owner of the property). The land trust document is NOT filed. It is kept in your hands. This is why the bank does not realize that the title changed...people are allowed to put their properties into an asset protection entity without calling the "due on sale" clause.

We name the land trust the property address. So, if we were buying a property located at 123 Elm Street. We would name the land trust - The Elm Street Land Trust. The bank assumes that the homeowners put their property into a trust for asset protection. If I named the trust - Bill and Dwan's New Rental - it would raise red flags. The new deed now states that the Elm Street Land Trust is the new owner. The ONLY document filed at the courthouse is the new deed. The actual land trust remains in your possession, naming you as the beneficiary...get it?

By using this method, we are able to take all our rentals without ever raising any questions with the banks. By taking over the homeowners payments, we don't have to qualify for new loans every time we get a new rental. With this crashing market, taking over properties subject to is the best way for you to accumulate wealth without having to use your own money.

I keep telling everyone - if you have the means to keep rentals right now - do it. Properties have never been so cheap. Take a look at my youtube pictures. There is a cute, little white house. We just got a new tenant for $600 a month - moving in June 1. The payment is $233. How crazy is that? It's a great deal for everyone. Part of the reason we are going to start doing boot camps in Iowa is to expose you to some of the amazing deals we are getting.

As more people lose their homes, they will need to rent. You can fill a need as well as help homeowners get a fresh start. What can be better than that?

OK, I have to run. I am doing a live call in 20 minutes...hopefully you will be tuning in.

Have a Blessed Day,

Dwan
www.youtube.com/dwanbenttwyford

Jim Ferebee - $40,000 in ONE day!

You have to love this guy!!!

Dwan, thank you for the opportunity to take these photos with you. It was an absolute Honor to stand beside someone who has changed my life completely when it came to being able to finally do something for myself and quit my job at Ford Motor Company.

I could not have done this without the benefit of having your course and following what you laid out for me to do. You truly have changed my life and I appreciate you forever....I had co-workers saying that I was crazy to leave a job like that. I believe they did not wany me to make it just so they could say I told you so.

Even what I thought was a close friend did not believe that I could do it and was told that I was crazy as hell to think that a bank would discount their loans so that I could come along and make money like that and that I was a dreamer and I need to stay at Ford where I belong. But boy did I prove them wrong......

I have my boss fax number and quite often send them a copy of my checks just to show them it can be done. I feel like McDonalds, "I'm Loving It"

Thanks Dwan!!!!

Sincerely,

Jim Ferebee Jr

$10,000 paycheck

Hi friends,

I just wanted to take a quick minute and post this. I received this email today...


Hi Bill & Dwan & Staff,

I wanted to share with you that I closed my first deal!!! It actually closed while I was still in LA for the Scripts Bootcamp last week. I made $10,000 on it, and a copy of the check is attached. Your classes and materials really made this success possible. Especially the NLP techniques were a big eye opener for me! Besides the concrete things that I learned by taking the bootcamps, what really did it for me is the inspiration and the example of how you guys talk during the bootcamps.

Thank you very much!

I reallyrespect the high level at which you guys teach this business!

Thank You,
Roelof Drenth

Isn't this great!!! What is stopping you!!!

I'l be back a little later with some real estate updates.

Dwan

Elliott made ONE MILLION dollars his first year!

Investing in Iowa

Hi Friends,

I wanted to let you know that Bill and I are going to start teaching ALL our boot camps in Clinton, Iowa. You may be asking yourself ... why???

Several reasons - we own a beautiful building there with an amazing space, hotels are cheap, we are tired of dealing with hotels and people who don't do their job ....

Most importantly - we are going to add a bus trip to our classes and take you to properties that you can buy and also show you what we are doing. There are sooo many deals in this small town and it is a safe place to put your investing dollars, especially in this down market.

We want you to be successful and we figure if you invest where we do...you can't go wrong. So, if you are planning on attending a boot camp, Iowa is the place to be:-).

Think about it...if you aren't registered for a class..come. You will love it.

Thanks,

Dwan
www.youtube.com/dwanbenttwyford


This is the building you'll be coming to...

Encouragement and Hope

Hi Friends,

I want to share a comment I received on my blog. This email touched me so much, I cried. A lot of people ask me why I teach. I hear comments like - If you're doing so well in real estate why do you teach, do you still do deals, how long has it been since you did a short sale and stuff like that.

The Bible speaks of gifts. Each of us has a special gift. Some of us know our gift and others haven't discovered it yet. A "gift" can be anything - prophesy, preaching, teaching, making quilts, counseling, playing basketball, teaching someone to read, being a volunteer, being a great parent...anything. It is important for each of you to take some time and find your gift. Once you know what it is, you can use it to the fullest and you'll feel satisfaction using your gift and sharing it with others.

I am blessed to have several gifts from God - I have the gift of hospitality ( I am a great host), the gift of encouragement, the gift of teaching, the gift of discernment, and several others along those lines. Because of that, I love to teach and offer hope to others. I had a very rough start - single mom, no money, no formal education, no car...it was bad.

I have done very well for myself in real estate - and, yes, we still do deals ( I posted two on my youtube account that we just picked up last week) - because of that, I want to encourage others to be successful as well. I am the first person in my entire family (both parents, all my cousins, everyone) to become a millionaire. Not only did I make a million once..I have been blessed enough to make well in excess of that EVERY year. God put in on my heart many years ago to teach and encourage others.

That brings me to this email...please read it and you'll understand why I do what I do...

Dwan, I just luv, luv you; And I want to thank you for this blog. I am going to log in here daily, and use you as my inspiration and motivation for starting to invest in real estate. Dwan, may I share with you, I have had some personal things happen, (I lost a child, and a dad in the same week, and now we are losing our home due to an ARM) I have allowed those things to knock me down, and now I am having trouble shaking it off, getting up and getting going again. I know that when God is ready to change our lives, he sends people into our lives, and that is what happened when I found your Blog. After reading your profile, I promised myself that I am going to log into this Blog everyday, so I can keep my attitude in check, and my motivation level up! I thank you again, for just sharing with us, and blogging so faithfully.You are REAL, and GENUINE, and you give me courage to go out there and get started. May God continue to greatly Bless your family and Business! Looking forward to your daily blogs.
Elisa - Florida

Isn't that amazing? Elisa, I want to thank you for your kind words. It is because of you and other people like you that I teach classes, travel all over the country, post blogs, take the time to coach, and encourage others. I feel like God placed me in your life to make a difference and you have made a difference in mine as well. When someone reads a letter like that, how can they wonder why I teach?

It is a privilege from God for me to help others and to make a difference. People always talk about changing the world, but I think the average person thinks they have to do something huge and larger than life. I make changes one person at a time...that's how God does it...one person at a time. If it's good enough for God, it's good enough for me:-).

I still like the thrill of the deal though, so we still do deals. This year we are focusing on buying and holding, so we won't be flipping that many. In fact, we have kept everything we have gotten our hands on this year. We are getting things so cheap, it's a shame to sell them.

So folks..I want to encourage you to learn this business, become wealthy, help homeowners who really need you, and most importantly - let me help you. I won't let you down...

Ok - it's Tuesday and I have a call and American Idol:-). What can I say...I waste some of my valuable time on TV. I love to see people live their dreams and that is exactly what happens with these kids on Idol. They get a chance to live the dream. Hey, if you happen to tune in - vote for David Cook - he's my favorite...cutie pie:-).

Make it a point to make a difference in the life of someone else today. You'll be glad you did.

Have a Blessed Day,

Dwan
www.youtube.com/dwanbenttwyford

Finally

Hi Folks,

I can finally get back on!!! My blog got locked and it took me this long to figure out what to do.

Since it is late tonight, I'll get back to posting tomorrow. I have lots to share...

Not only do I have a blog...I have a You Tube account now, too. Am I getting with the program or what???

Check out some great deals and what other students are doing...You'll be glad you did.

Have a Blessed Night,

Dwan
http://www.youtube.com/DwanBentTwyford

Life

Hi Folks,

Life sure comes at you fast. Bill's Aunt Bev passed away this past weekend. She was a wonderful, Christian woman. The strange thing is, Bill is now the oldest. We are the next generation of people who will die.

I think we all feel like we have some sort of "safety net" as long as someone older than us is still alive. We are now the oldest! Crazy isn't it???

Which made me think of something I read once and saved...I want to share it with you...

IF I KNEW

If I knew it would be the last time that I'd see you fall asleep, I would tuck you in more tightly and pray the Lord, your soul to keep.

If I knew it would be the last time that I see you walk out the door, I would give you a hug and kiss and call you back for one more.

If I knew it would be the last time I'd hear your voice lifted up in praise, I would video tape each action and word, so I could play them back day after day.

If I knew it would be the last time, I could spare an extra minute to stop and say "I love you," instead of assuming you would KNOW I do.

If I knew it would be the last time I would be there to share your day, Well I'm sure you'll have so many more, so I can let just this one slip away. For surely there's always tomorrow to make up for an oversight, and we always get a second chance to make everything just right.

There will always be another day to say "I love you," and certainly there's another chance to say our "Anything I can do?" But just in case I might be wrong, and today is all I get, I'd like to say how much I love you and I hope we never forget.

Tomorrow is not promised to anyone, young or old alike, and today may be the last chance you get to hold your loved one tight.

So if you're waiting for tomorrow, why not do it today? For if tomorrow never comes, you'll surely regret the day, that you didn't take that extra time for a smile, a hug, or a kiss and you were too busy to grant someone, what turned out to be their one last wish.

So hold your loved ones close today, and whisper in their ear, Tell them how much you love them and that you'll always hold them dear.

Take time to say "I'm sorry," "Please forgive me," "Thank you," or "It's okay." And if tomorrow never comes, you'll have no regrets about today.

Before you walk out your door each morning, be certain you are right with God and those you love. You may never get another chance.

Have A Wonderful Evening,

Dwan

www.theieu.com

When the Bank Won't Accept Your Short Sale Information

Hi Friends,

We are in San Diego this weekend. Bill is teaching right now, while I write to you.

I had another great question posted on my blog. People are asking questions about Vegas and comps and short sales.

Folks, Vegas in one of the hardest hit areas. There was soooo much pre-construction and there are so many people upside down right now.

If you are doing short sales and having a hard time getting banks to accept REO sales as comps, ask the bank what comps they would like to see you use? Banks look for comparable sales within the past six months. If that is all there is, they must accept those comps.

If you have my program or have been to a short sale boot camp....you know that we use a "three step" short sale process. My thought is to treat short sales as if you were going to court and presenting a case. The more information you have, the better your chances to win.

We begin with our first offer focusing on the distress of the homeowners and their property. We provide low comps, hardship letters, a cover letter from us, pictures, and whatever else we think will help.

I have never had a problem with a bank using REO comps. I think that if you send the second and third offers, the banks will be more likely to look at your offer as a WHOLE package.

In the second offer, we send the crime reports, a list of the registered sex offenders, pictures of boarded up houses and more.

In our third offer, we show the financial loss to the bank if it does not accept our offer. The third offer is VERY important...it shows the bank exactly what it will lose if our offer is not taken.

I truly believe that if enough effort is put into a short sale, you will get a "yes" 80% of the time.

I find that when a bank is not wanting to accept some portion of my package (like comps)...I push to find out what it will accept. Almost ALL banks do short sales, so there must be some item that will be acceptable. Being pushy is sometimes the key.

Remember, if a bank says no right now to your deal...call back at the beginning of the next quarter. A bank may say no in March, then receive reports of what a bad first quarter it had and then accept your short sale when you call back in April.

Likewise, you may get a no in the beginning of April and call back at the end of the same quarter and get a yes.

Banks are all about numbers and run in quarters. A "no" this quarter could be a "yes" next quarter.

As long as the property hasn't gone to the sheriffs sale, the deal is not over. We call up until the last day to try and talk a bank rep into a yes. Often, homeowners will file bankruptcy just before the sheriffs sale in order to buy more time. Once bankruptcy is filed ... we get back to work.

Are short sales worth all the work? You bet! You can expect to make anywhere from 10% to 20% of the current retail value on each property. That can mean a huge check for you on every deal.

Since our goal is to by properties at 50% of the value, we are willing to put in the extra effort and extra calls to get the deal done.

Remember..the homeowner must always come first. This is their one and only chance to start over - you have a deal around every corner.

We are headed to the airport soon....Hope you have a wonderful weekend. Hey... go to church tomorrow and thank God that you live in such a great country and that you have the ability to make a difference in the lives of people every day...just like Jesus does!

Have a Blessed Day,

Dwan
www.theieu.com

Buy and Hold?

Good Evening Friends,

I had such a great answer to my blog from yesterday, I decided to write about it...
The questions was...

Am I correct to say that "buy now" and hold only works in a place that doesn't have double digit devaluation going on? Some places have 13% to 17% and even more, in declining house values. A place like Iowa is a better place to "buy and hold?"


My answer...

As I said, Bill and I "buy and hold" in Iowa for several reasons. The main one being that the property values hold, year after year. Even if the property values dropped 5% this year, it wouldn't make a difference in the long run because values typically climb 5% a year....year after year. Every two years, values have climbed 10%. It doesn't take many years to see appreciation on your investment.

We buy and hold for long-term, and we mean...long-term. The Bible says it is a blessing to leave a legacy to your grandchildren. We are buying and holding for us, our kids, and their kids. It is our goal to set our family up in a business that can be passed down through generations. Owning lots of property would be a blessing to us and our families. They don't make any more land, so owning lots of it is our goal.

If you are in a area that is dropping with double digits...you must learn to short sale. If you can buy properties at 50% of the current value, even if the values drop another 20%, you still own properties below market. If you do a short sale, you would have to secure financing, which is a problem for a lot of folks right now. We have a company we are working with that only charges $500 to fix your credit - I don't want to turn this into a sales pitch, but this really works. If you have late payments, foreclosures, or even a bankruptcy...they can get it off. Take a look at: http://ieu.fixcreditbiz.com

If buying with your credit is not an option ... you'll have to do "Subject To's" - having a homeowner deed their house to you. Once the deed is transferred, the property becomes yours. The homeowners name is still on the mortgage - so make the payments on time. If you make a late payment, you hurt the homeowners credit.

Some states are making "subject to's" illegal because investors are taking advantage of distressed sellers. Check with your local attorney to see if you can do a subject to.

We recently invested in four rentals in Iowa. All four of them are worth $50,000 to $57,000 and we got each one for $30,000 or under. That is not a huge amount of equity, but they rent for $550 or more each. We took over payments and each one cash flows. Our total out of pocket expense was only $2,000. As each one climbs 5% a year in value, it won't take long for them to be worth $100,000 and the payments are under $300 each. They will be huge cash cows.

We always pay a little extra on our rentals to get them paid off as soon as possible. We bought a lot of properties in Florida back when the market was down. As the markets went up, we owned properties at 20% of the value. We sold a few and paid off others and ended up sitting good when the market dropped again.

It is important to plan ahead and watch markets. The hard part is knowing who to listen to. The news stations say not to buy now and I say...buy as much as you can. I have said many times that millionaires are born in times like these. People who understand how to help sellers while getting a good deal themselves will see the fruit of their labor pay off. The people who do it right, will come out on top at the end of all this.

I am doing a four part series of teleconference calls in May called -

Surviving The Crashing Market and Coming Out on Top!

Make sure you tune into it. With a little guidance...ALL of you can become super wealthy right now...

Ok...I have to watch American Idol now. I am a fan of David Cook - too cute!

Have a Blessed Day,

Dwan
www.theieu.com