by Tony Youngs

As with most parents, we always want our children to do well and be successful. I myself only have one child, a 24-year-old daughter. As she was growing up and going through school, I always wanted her to get into real estate investing. Why, because it builds wealth and provides income even while you are sleeping. For me, a baby boomer, it has been the greatest life I have ever known. Pure joy.

I always took my daughter to see my rental properties and told her that I own them but my renters are buying them for me. I told her that they pay me rent to live there and explained to her about positive cash flow and how it works. I would also take her to rehab projects and walk her through them and then explain why we do it. I really thought I was rubbing off on her and making a good impression.

She made good grades all through school and was eager to go to college. I asked her what she was going to study and she said Psychology. When I ask her why, she said, that’s what I’m interested in. She told me that real estate is fine but “I want to do my own thing”. I respected her decision because when I was her age, I felt the same way.  I wanted to do what I wanted to do, no matter what my parents wanted.

My daughter went on to college and she did well, however, a funny thing happened during her last year at college –  she all of a sudden became interested in real estate investing. She started to ask me if I knew anything about wholesaling. I said yes, and I asked her where she had heard the term. She said a few of her buddies were telling her that they wanted to get into wholesale real estate. You see, when we parents say it, the younger generation doesn’t want to listen but when their peers say it, it becomes a truth for them. I told her I would be glad to help.

She graduated from college with a degree in Psychology and Immediately got a job in Colorado Springs, Colorado and put real estate on the side. She explained that millennials have dreams to travel and see the world. Some had no desire to get a home and start a family or settle in one place.  They seem to just want instant gratification.

Her job ended up being a one-year stepping stone but she loved Colorado and wanted to stay there but, decided to come back to Georgia.  My daughter discovered that living on your own is great but it takes money to make it. On her own she invested in the stock market and she said she lost money. It turns out she was day-trading. However, she remembered that real estate can produce large amounts of money and is a safer investment.

I began taking her with me when I go out to find deals, I explained that it is very competitive and that’s why I go door knocking and driving for dollars. The very first door we knocked on together, the owner talked and talked.  My daughter jumped right in and the homeowner really enjoyed talking to her.  He told her everything about how he wanted to sell but didn’t know what he was going to do with all his stuff.  He said his house needs a lot of work and that he wanted to move out of state and has a place in mind.  I said we would make an offer within twenty-four hours. My daughter and I went back to the office to write the offer.  It ended up solving all the problems for the seller.

My daughter has seen the light and is very valuable to the business because millennials and the younger crowd do everything on their phones. She understands the benefit of driving the neighborhoods to beat the competition and while we sit in front of a house, she tells me the owners name, the after-repair value, any liens against it, and the approximate loan balance – all from her phone before we even knock on the door.

In summary, if you want to get your sons or daughters involved in real estate, I recommend you show them copies of checks.  Why?  Because that is their main motivation. Remember they like instant gratification and want to work smarter, not harder. If they have jobs, show them how to invest their earnings in real estate. I would like to get my daughter a rental house or two – even if she must get a property manager.  Owning real estate has a proven track record.

I recently wholesaled a property to a 20-year-old who has 16 flips being rehabbed at the same time. He is the project manager and finds the deals. He is kicking it and has a money-backer with very deep pockets. I was so impressed that I have made arrangements for my daughter to meet him and learn from his successes.

We all wish we had started at a young age like that.

Tony Youngs is an active real estate investor and Hands On trainer,  a national speaker and the author of The “Hidden Market” system of acquiring off market properties. He can be reached at his website at www.tonyyoungs.com

by Tony Youngs

I remember when I attended my first seminar back in the 80’s the speaker said you have to have a system and discipline. I knew what the system was because he was teaching it. But I did not know what the discipline was until I began to apply the system. The discipline is that you have to take the action to make the system work properly. Through months and years of trial and error, I now know what he meant by discipline. I had to discipline myself to always take action, even when I didn’t feel like it. Despite all the easier softer ways of doing things today, I still sometimes don’t feel like it. But I force myself to take action.

Many years ago, I found something on the internet that I printed and framed and it is on my office wall. It’s called, the “7 Excuses.”  I can’t do it, I’m not feeling it right now, I’m too busy, I’m too tired, there’s no guarantee it’s going to work, I’m not good enough, and my luck sucks. I still to this day do not know who the author is, but I read that from time to time to keep me motivated. I always check to see if I’m making excuses. Let’s break it down.

I can’t do it: if that’s what I’m thinking, I’m probably right, But, if I change it, I can do it, I’m also right. I must program my mind that I can do it, Then, all I need to do is try, and if I run into a hurdle, I find a way around it and with some fine tuning, I find that I can do it, So, really, all I have to do is get started. Any challenge we run across that we feel we can’t do, all we have to do is get on YouTube or the internet. With all the resources available today, you can do just about anything.

I’m not feeling it right now:  All I have to do is get started. I discipline myself to plot a course of about 8 foreclosure properties each week to go visit. Sometimes I just don’t feel like going but I tell myself to just go see the first one, Then the motivation kicks in and I start to get excited so I go to the second, then third. It was just a matter of getting started.

I’m too busy: Everybody is busy, I have found that if I add it to my list of things to do, somehow it gets done and there is time to do it. I have a gym membership that I sometimes feel I’m too busy to use.  But I take the action to go and do the first exercise, then the energy kicks in. Energy breeds more energy.

I’m too tired: who isn’t, we all get tired. It’s just a matter of going to bed a little earlier so you can get a good night’s sleep. Take inventory of your TV habits and see what you can do to get enough rest.

There’s no guarantee it’s going to work: So what. There is a guarantee it won’t work if you don’t try. I have found that persistence pays off. Real Estate is a numbers game. It’s being at the right place at the right time and if I keep on keeping on, I get the good ones. Even though there’s no guarantee.

I’m not good enough: Start telling yourself you are good enough. Educate yourself more, hang out with positive people, read success books, Join a REIA and attend every meeting. Surround yourself with successful entrepreneurs. It will rub off on you.

My luck sucks: I heard a wise man make a statement that said, you create your own luck.  Luck, is when action meets opportunity. That fits right into my real estate business. I take action each week to drive through neighborhoods, and I find opportunities every time I go, and that in turn creates good luck. I always find great deals.

We all know that real estate requires work and action, it’s not always easy, but if you have a system and the discipline to follow that system, you can’t help but succeed.

Tony Youngs is a trainer, national speaker, active real estate investor and the author of The “Hidden Market” system of acquiring off market properties. He can be reached at his website at www.tonyyoungs.com

by Tony Youngs

As I go to various states pursuing distressed property acquisitions, I am finding an uptick in the number of sellers that are willing to sell their off-market properties. These include probate situations, tired landlords, elderly moving to assisted living, vacant properties, bankruptcies, and pre-foreclosures. The problem is, sellers still have the impression their homes are worth a lot more than is often the case. They all remember their neighbors getting multiple offers and selling for above the norm, but that has all changed…somewhat. I live in a high demand area and houses can sit on the market for 30 days before they go under contract. Around other parts of the country that I visit, it can be even longer. Although most of the housing markets are still seeing lower than normal inventory, higher interest rates have had an effect as well as the uncertainty of government affairs.

The reason I say proceed but with caution, is because if you are going to rehab a property, right now, the rehab costs are outrageous. The cost of materials has come down a little from the pandemic but they are still high and I think those highs are here to stay. Businesses know that people are willing to pay and consumers are spending like crazy.  However, on the other hand, contractors are charging much higher labor costs. Sheetrockers, framers, painters, plumbers, electricians, and HVAC servicing is much higher today.

I was rehabbing houses all through the pandemic years and I am doing one right now.  The costs are much higher than they were even a year ago. We have used the same plumber, electrician, and HVAC guys for years and their prices are much different. When we sit down with them to go over the figures, comparing them to our last few jobs and ask them why the difference, they show us the higher material costs and how their labor costs are more because of the cost of living being higher (groceries, gas, food, clothing, and shelter, etc.).  Just to make sure we do our due-diligence, we get estimates from other companies and have found the prices are very comparable.

My point is, as you find property owners willing to sell, make a sensible offer and stick to it. I make offers every week and when a seller tells me it is too low, I say, if you are willing to fix some of the items, I can go a little higher.  After researching the costs and time involved, it doesn’t take long for them to see your way of thinking and then you can negotiate. Some sellers refuse to budge but it’s better to walk away than to lose money.

Today, if you do buy a house and begin your rehab, and it seems to be costing more than you thought, nobody can force you to finish it. If a project starts looking like you will lose money or just break even, stop your work and sell it incomplete. There is always someone that will buy it in the condition it’s in and finish it themselves. Especially if they like the location. Homebuyers realize they are here for long term and don’t mind spending money for their long-term home.  Even in the recent days of multiple offers, I would fix up a house beautifully and sell it for top price, and then the homeowner would sink more money into it. Why? Because they were so happy that they got a home in the area that they wanted.

When we rehab a house, we make a list of what we want to accomplish this week and then I stay on top of that list to make sure it gets done. I shop around for good prices, I use low-cost labor to do many of the things like demolition, carrying trash to the dumpster, keeping the grass cut, painting, replacing broken glass, applying fire retardant caulking to the holes where new wiring was installed, digging drainage ditches, etc.  There are plenty of important little items like those.

We also have a guy who has a full-time job but wants to earn extra money after work. He is an excellent carpenter and installs new windows & doors, installs trim around the windows, puts in attic stairways, etc.  Knowing him saves us plenty of money. However, I personally still do some of the work that I can. It keeps the other workers busy when they see me on site working. There are still many more money-saving things you can (and must) learn when doing a project. One thing I learned from my father when getting an estimate;  Don’t give the impression that you are rich and successful. Project costs can be higher.

The bottom line is this, proceed with caution and make your offers, but be aware of today’s renovation costs. Learn all you can about estimating repairs.

Tony Youngs has been an investor, trainer and a national speaker for over 32 years.  He is the Author of The Hidden Market System and is best known in the industry for his “Hands on In the Field” trainings that take place around the country.  Learn more about him by visiting TonyYoungs.com.

by Tony Youngs

There are some important things to consider today when making an offer to a homeowner in foreclosure. If and when their home goes up for auction, the opening bid is calculated by the balance of the loan, court fees, attorney fees, and advertising costs for the legal ad. At the auction, the auctioneer will open the bid at that amount. If no one else bids, the house is sold back to the lender and it becomes a lender-owned property. However, if someone bids a price over the opening bid, the lender gets paid what he is owed in full, and the surplus funds will be used to pay a second mortgage or underlying liens. It may not be enough to cover the entire lien but they are entitled to whatever the amount may be. After all underlying liens are paid, if there are any funds leftover, it goes to the homeowner. However, not all states inform the owner of this and the homeowner usually has to file a claim to recover it.

I recently attended an auction in my county and there was a house that had an after-repair value (ARV) of $366,800 The opening bid was $94,000. Several people started to bid against each other and the house was sold at $216,000. That meant the buyer got the house for 59 cents on the dollar. It also meant the defaulting homeowner will receive about $122,000 dollars if they claim it.  I’m sure there are probably some junk fees that would be collected before the owner can receive it, too. Therefore, when I am offering to buy a house from a homeowner in foreclosure, I like to be up front with them and tell them that if their home goes up for auction, they are entitled to the excess funds if the home sells to a third-party bidder. I also them know that they may have to claim them.

Next, I explain the benefits of selling before the auction. I inform them that if they allow me to make an offer, we will calculate the amount they would receive if it goes to auction and sells for the average price. I show them some of the recent sales at the auction and what they might expect. Then I write an offer explaining that selling before the auction means they will not have a completed foreclosure against their credit which, in turn, could hinder them from getting another home in the near future. I also offer to help them find a place to live, like an apartment or rental house. I do this because in the past, some owners have no idea where they can move. Finally, I explain that my offer is a for sure thing, and if they choose to go to auction in hopes of getting more money, there is always a possibility that if no one bids, there will not be any money left over.

Therefore, when dealing with homeowners in foreclosure, we should try to get as close to what they might receive if it goes to auction.  In the case study described above, the house sold for fifty-nine cents on the dollar – which is not too bad. So, how can we do this?

Here is what I do;  I attend foreclosure auctions as often as possible and collect data on each house by writing down the opening bid, and if applicable, what it sold for. Next, I do the comps on the after repair value (ARV). Then I make note of what percentage it sold for.   At most county courthouse websites, you can usually print any documentation justifying the figures on what a house sold for.

In addition, there are many other benefits of attending foreclosure auctions. One very good reason is that gives you the pulse of the local market.  As long as there are investors bidding on houses, it is safe to buy in the hidden market. On the other hand, if you attend a foreclosure auction and there aren’t any investors, there is probably a good a reason why. It may just be a hint that now is not a good time to buy.  Although, I have seen investors buy during bad times as well as in good times – they just change their strategy. For example, in bad times, you buy and hold.

In real estate, I don’t put all my time in the foreclosure arena, the majority of my time is working the hidden market. The information I have provided is by no means the rule, it is just something to consider on your real estate investing journey.  However, since the beginning of the year, more and more homeowners are selling their homes before the auction date.

Tony Youngs has been an investor, trainer and a national speaker for over 32 years.  He is the Author of The Hidden Market System and is best known in the industry for his “Hands on In the Field” trainings that take place around the country.  Learn more about him by visiting TonyYoungs.com.

by Tony Youngs

When I first got into real estate, I started with foreclosures.  I would contact the owners to see if they wanted to sell. If they did, I would ask them how much they owed and they would usually show me the latest letter from the bank showing the balance and arrears.  Then I would ask them if they had any other liens on the property. They would usually say, not that I know of. Next, I would make an offer and set a closing date with an attorney or title company.  However, after a few days or weeks, the closing attorney would inform me of additional liens that needed to be dealt with.  It would sometimes kill the deal or cause some sort of delay or problem.

On future deals I would hire a freelancer to do a search for me prior to making an offer. There were times that they would contact me and say, this property has 3 mortgages, a federal tax lien, and 3 judgements, and, of course, I would not buy the house. But I still had to pay for the title search.  The thought came to mind that I needed to learn how to do a title search myself.  I went to my local real investors association to see if they knew where I could learn how to do this.  At that time, they did not know of anyone. I met a paralegal that once told me that there was a class at the local community college that takes you to the courthouse records room and teaches you how to do court records.  I took the course and it was one of the best things I did for my business growth.

Not only did it save me a lot of money, but it catapulted my success. For any homeowner that wanted to sell, I could quickly find everything recorded against the property; Federal tax liens, judgements, mechanic’s liens, and hospital liens. I would also find power of attorney and affidavits that contained information to help me negotiate win-win deals with the seller.  The benefit of finding liens before you make the offer gives you a chance to contact the lien holders and offer to settle the liens at huge discounts, thus creating a better profit potential and a better purchase price. Most other investors would run from these deals because of the liens, however, I could turn a bad deal into a good deal.

When I tell folks about doing their own title search, they say no thank you, I want a professional to do it so I know for sure the title is good. Let me explain, I do my own to see what’s owed to help me negotiate a deal with the owner. Then I get it under contract and the contract has a paragraph stating if there are any liens discovered after the contract is signed, the seller must settle those liens or the contract is null and void. Then the title company does a professional search and lets you know before closing if there are liens. Then they offer you title insurance. So, ultimately, you are protected with all these layers.

Today, in most states, you can do a title search online from the comfort of your home.  There are only a handful that charge a fee but if you go to the actual courthouse, you can always do it for free.  If I am in a state that charges for online title searches, I will go to the courthouse. The way to find out if your courthouse is online, is to simply go to google, and put your county name first, then the state, then the words Register of Deeds.  For example, “Fulton County GA register of deeds.”  It is usually the first thing that comes up.  The further down the list you go, you will be tapping into third party companies that charge money. Only click the first thing that pops up, then you will look for a button that says search records. Sometimes you have to accept a disclaimer before accessing the records. Once in, you can search by parcel number or owner’s name.  I like to search by owner’s name.  Some liens are recorded against a person’s name and does not show up if you search by Parcel number.

Each week when I go out and find off-market properties in the hidden market,  I get so excited and can’t wait to get home and do a title search. It always keeps me a step ahead of the competition.

Tony Youngs is a national speaker, trainer, and active real estate investor who takes you by the hand in your own back yard to teach you how to be good at finding good deals. He can be reached through his website at www.tonyyoungs.com

by Tony Youngs

When I first got into real estate, I chose to start with pre-foreclosures.  I learned that banks and lending institutions would auction houses off to the highest bidder at the courthouse steps in the county where the property was located. I also learned that you could buy these houses directly from the homeowner before the auction date, and thus help the homeowner have dignity, recoup some of their equity and keep a foreclosure off their credit report. Due to the fact that these homes usually need repairs and were less than perfect, I figured I could buy these properties at a discount and create a win-win solution for the owner.  I attended my local REIA meetings to learn various techniques to finance the purchase. This all sounded great to me so I obtained a copy of the local legal notices to get a list of all the foreclosures in my area.

Next, I would send a letter to all the homeowners listed in the paper asking if they would be interested in selling their house before the auction date. I soon found out that because foreclosures are public, a homeowner in foreclosure receives many letters from folks that want to buy their homes.  So, I decided to become a door knocker and visit them in person and ask them directly, face to face, if they would like to sell. I was able to have success but soon found out that this is a numbers game. Interestingly, I discovered that many of these homeowners didn’t want to sell but were just looking for solutions that would allow them to keep their homes. It worked out that I would have to knock on ten doors to find one owner that wanted to sell. Accepting that fact, I continued knocking until I got past all the no’s until I found a yes.

There were many times I would knock on a door and a homeowner would say they don’t need to sell because they were going to file for bankruptcy protection. If they file bankruptcy, that will instantly stop the house from going to auction. A typical homeowner also gets letters from law firms explaining that if they file, it will stop the foreclosure. If a homeowner chose to file bankruptcy, I would simply mark them off my list. However, since I always attended foreclosure auctions and I would later see some of those very houses get auctioned off and recalled talking to those very owners three months prior. I soon discovered that a home can still go to auction even if the owner filed bankruptcy. This meant that those owners now have a foreclosure and a bankruptcy on their credit and they still lost their home.  I didn’t understand how this could happen, but it certainly taught me that I needed to learn about bankruptcy. I went to my local REIA meeting and requested that they get a bankruptcy expert to teach us about how it works and why some owners still lose their homes. I learned everything there is to know about the subject and it has helped tremendously. Therefore, the business will teach you what you need to learn.

As I continued to talk to homeowners in foreclosure and write offers, I would ask the owners if they had any other liens besides the mortgage. Usually they would say they didn’t know. I would hire an attorney to do a title search and they would usually charge me a couple hundred dollars. Then a few days later they would inform me that the house has Federal tax liens, hospital liens, mechanics Liens, and judgements that made it impossible to buy the house.  But, I still had to pay the two hundred bucks for a house that I didn’t buy. The business was teaching me that I needed to learn how to do my own title search before making offers. Guess what I did next?  I went to my local REIA and they did not know anyone that teaches it.  So, I went to the courthouse and learned how to do it. It took some time but it has saved me thousands and thousands of dollars as well as a lot of precious time. When I get ask to be a presenter at REIA meetings, I always teach how to perform a title search. In many states, it can even be done without going to the courthouse.

Another aspect the business has taught me as I go deal hunting, is that there are thousands of vacant houses in our great nation. I used to have trouble finding the owners of these treasures. The business taught me that I needed to learn how to find vacated owners. Thanks to modern technology, I learned how to find them and it has greatly increased my success rate.  These are just a few examples of how to “let the business teach you”. I could write a book on the hundreds of things the business has taught me simply because I got out there and took action.  Oh wait, I already did.

Tony Youngs is a national speaker, trainer, and active real estate investor who takes you by the hand in your own back yard to teach you how to be good at finding good deals. He can be reached through his website at www.tonyyoungs.com

I began my real estate career back in 1986 after I attended a seminar and purchased a home study system and then began to implement it. The course taught me how to find foreclosure properties in my county and then I would go out and look at the ones in my area. One time, I came upon a property that I thought was vacant, as it was in pretty bad shape.  While walking around the property, to my surprise, it turned out that it was not vacant and there was a lady in the window looking out at me. I knocked on the door to explain that I saw the property was going up for auction and that thought it was vacant.  After I apologized for not knowing the facts, she was very nice and asked if I would like to see the inside. Her husband was home, too and they explained how he lost his job and that’s how they ended up in foreclosure.

She walked me through the home and asked me how much I would offer for the house. I asked her how much she wanted and she quickly said $85,000. The house needed a lot of work but after repairs it would be worth around $125,000.  My problem was that I did not have the money. Just to get out of the situation, I offered less hoping she would turn me down so I could leave. Before I could get to my car, she called out and said her husband wanted to accept my offer. Uh Oh, I thought. Now what.  Where am I going to get the money?

I went to my father and told him about the situation and then took him to see the property. I asked him if he would be willing to fund the deal and we would share the profits. At first, he was reluctant as it looked pretty bad but I could see that some paint carpet and elbow grease would do wonders!  Finally, after some further discussion, I convinced him and he funded the deal.  That was the beginning of a lifelong career that has changed the lives of our entire family. It has been a great life for all of us. I often sit back and think of where we would be if he had not funded that deal.

Now, what if you don’t have a father that I willing or able to lend you money.  Today, investors have access to Hard Money or Private Money lenders. You can usually find a hard money lender by attending a meeting at your local real estate investors association – which is a good group to belong to. While there, ask the leader for some contacts and recommendations. The way Hard Money works, is that you must find a deal worth buying, the hard money lender will analyze the deal to see if it’s feasible, and then offer to fund 70 to 80% of the after repair value. They normally charge an upfront fee to loan you the money and some might ask for monthly interest-only payments during the renovation, and then ask for 10 to 15% at the end. I have never used or needed hard money but I did recently call one to see what it would take.  They will also want to see a substantial amount of money in your bank account to make sure will get paid back if the deal goes south.

On the other hand, there is Private Money.  This can be form your neighbor, friend, fellow investor, doctor, real estate agent, golf buddy, or anyone who has money in the bank. They, like my father, will usually fund the deal and share the profits in the end. There are no upfront fees. Where do you find these “hero’s?”

The first thing you need to do is get good at finding the deals. Once you do that, private money lenders will come out of the woodwork and plead with you to cut them in. I myself have gotten really good at finding deals and often have to choose who I will cut in and who I cannot.  Today there are many people wanting to fund my deals, simply because I am constantly talking with property owners and solving their problems.

As I look back to the very first real estate seminar I ever attended, the presenter said, don’t worry about the money, “if you find a deal, the money will come” Oh how true that has turned out to be.

Tony Youngs is a national speaker, trainer, and active real estate investor who takes you by the hand in your own back yard to teach you how to be good at finding good deals. He can be reached through his website at www.tonyyoungs.com