LESSONS FOR BEGINNING INVESTORS FUTURE HOMEOWNERS...building was a two flat with 5 units and the lot next door. Three of the units were 3 bedrooms and two were 2 bedrooms. The mortgage

LESSONS FOR BEGINNING INVESTORS FUTURE

HOMEOWNERS

By

Ken BIG Blake

Chief Visionary Officer / Blake Investment Group

A realty investment educational consulting firm for buyers & sellers looking to

reach their monetary goals.

Managing Host / Founder: thinkBIGradio.com

An international Realty, Business, Financial & Entertainment radio podcast where

BIGthinkers come to teach and learn.

D.E.A.L.S. IN A.C.T.I.O.N.S

This manual will teach the basics to a novice investor or future

homeowner. It was designed to cover the fields involved leading to your

first investment.

Copyright© 2014 by Kenneth L Blake p.s. Take it…it is free…Im serious…It is yours now……thinkBIG

http://www.thinkbigradio.com/

www.kenBIGblake.com Where Strategy Meets Action

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All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical,

including photocopy, recording, or any information storage and

retrieval system now known or to be invented, without permission in writing from the publisher, except by a reviewer who wishes to quote brief passages in connection with a

review written for inclusion in a magazine, newspaper, or broadcast.

http://www.kenbigblake.com/


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This manual was designed to provide competent

and reliable information regarding the subject

matter covered. However, it is sold with the

understanding that the author Kenneth L Blake,

corporation Blake Investment Group and any of

it’s subsidiaries are not engaged in rendering

legal, financial, or other `professional advice.

Laws and practices often vary from state to state

and if legal or other expert assistance is required,

the services of a professional should be sought.

The author and publisher specifically disclaim

any liability that is incurred from the use or

application of the contents of this manual.



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Readers Comments.


TABLE OF CONTENTS

Chapt. 1 What is an investor? PG. 3

Chapt. 2 Finding Properties PG. 14

Chapt. 3 Finding Property Owners PG. 21

Chapt. 4 Contacting The owner PG. 29

Chapt. 5 Finding Financing PG. 34

Chapt. 6 Credit PG.42

Chapt. 7 Writing offers PG. 48

Chapt. 8 What makes sense? PG.51

www.kenBIGblake.com

You will find links throughout this manual that will uncover the

resources you have been searching for. ThinkBIG!!



2

NOTES



3

CHAPT. 1

What is an investor?

An investor is someone who puts money into

business, stocks, etc… in order to receive a profit. To invest

money. The key words in this definition are to receive

profit. Advantage, gain, the sum remaining after deducting

costs. There are many types of investments as there are

investors. There are investors of stock, real estate, mutual

funds, businesses, loans for startups, insurance to name a

few. These investments are just vehicles to get you from one

place to another. ( www.kenbIGblake.com )

An investor has a plan, which consists of

moving from one level of wealth into another higher one.

The vehicle you choose to move in is your personal choice.

There are good and bad arguments for any that you choose.

This one is better than that one and so on. The only thing

that matters is that you follow your plan and continually

educate yourself in the area you have chosen. The area I




4

have chosen or vehicle is called Real Estate. Land including

the buildings or improvements on it. There are five

categories of real estate.

Category 1- Residential: Property used for single family or

multifamily housing whether in urban, suburban or rural

areas.

Category 2- Commercial: Business property, including

office spaces, shopping centers, stores, theaters, hotels and

parking facilities.

Category 3- Industrial: Warehouses, factories, land in

industrial districts and power plants.

Category 4- Agricultural: Farms, timberland, ranches and

orchards.

Category 5- Special Purpose: Churches, Schools,

cemeteries and government held lands.



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As a beginning investor future homeowner it may be

wise for you to start with residential properties. When your

education and experience evolves then you may want to

form a plan to acquire holdings in other areas. Always stick

to your plan and revise it as your education increases.

When is the best time to start?

Yesterday, today, and tomorrow if it is 12-24 hours from

the time you read this. I know that everyone has heard those

stories about buying a property in the seventies, eighties, and

nineties and it’s worth x amount of dollars today. Well guess

what? Why don’t you be on the end of one of those stories

by buying today. There is no better time than the present.

Let’s get started

As a beginning investor future homeowner you must

first set GOALS then develop a PLAN of action. (We

cover this in more detail in our D.E.A.L.S in

A.C.T.I.O.N.S coaching. Visit www.kenBIGblake.com

for more info.)




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Where do you want to be?

How do you get there?

How long will it take?

What are my available resources?

Who do I know?

What can I change about myself to attain the goals I

have set forth in my plan?

Once you have answered these questions then you are going

to need the basic tools of the trade. You can add to this list

as your education increases.

Dictionary of real estate terms.

Monthly interest amortization tables app

Calculator ( Karls Mortgage Calculator App)

Notepad ( evernote)

Business cards



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Contracts

Folders

Camera.

Flashlight

Fax machine or online fax service

Computer or Tablet

The books can be purchased at most bookstores. It is

imperative that you at least purchase an all in one printer.

Electronic stores sale them for under $100.00. A

computer is not necessary as I know several successful

investors without one but it will aid you greatly.

The reason why I stress the fax machine or program

is that it will save you time. In some cases it may benefit

you to have your client fax you their information. A

person can say anything to you over the phone. When



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you reach their home the paperwork states another thing.

(Loss of profit and more important loss of time)

Let me share a story with you. I received a call from

one of my flyers from a person being foreclosed on back

in 1999. They wanted out as soon as possible. The

building was a two flat with 5 units and the lot next door.

Three of the units were 3 bedrooms and two were 2

bedrooms. The mortgage payment was under a $1,000. I

knew the rents in that area would bring in at least $2,200

allowing an apartment for your self. I asked the client to

fax me their paperwork. They didn’t but contacted me 2

days later. I agreed to meet with them.

The numbers I received over the phone had a 15-20

thousand dollar difference than those on the paperwork.

It gets better. After I spent about an hour and a half on

the phone with different lawyers and mortgage companies

I found out the house had been foreclosed on several

months before. They just failed to leave the property.

You will come across time bandits also.



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Before you take a trip get as much documentation that

you can by fax or web so that your decision won’t be

based on solely what is told to you. Many homeowners

are only repeating what they were told. The paperwork

will give you a clearer understanding. In some cases you

have no choice but to visit. Make sure before your arrival

that they have all the documents you will need to review.

Make yourself a checklist that you can read to the

client over the phone. As an investor you must be

determined to look at property in all areas. Most

properties are a goldmine with bad management. If you

don’t find your property earning a profit though all the

numbers are there then you may need a property

management firm to handle it for you. Contact our office

and we will review your situation free of charge.

It will take time to learn the proper execution and to build

your team. However as you will find on the next page….it

is well worth the trouble to increase your

knowledge…hence your income!!!



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I would like to briefly share with you the three types of

people you will come across in your investment career. You

are or may have been one of these people.

Negative faithless one: This type of person has

very little self-esteem and faith in their own works.

They always bring up the “what if” scenarios. They

are not willing to take the steps necessary to free

themselves. They aren’t willing to dream but use

their energy to stop you from dreaming with

thoughts of lack and bad consequences. They are

not happy with their position in life and haven’t the

faith and determination to change it. You will meet

this person in various degrees throughout your day.

If you are this person, please change.

Optimistic fearful one: They believe it will work

and feel they may be able to succeed. They aren’t

negative but are just fearful in taking those first

steps. They feel as though they always need more

information instead of acting on the knowledge



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they have. You really have to push this person and

spend time strengthening their esteem and outlook.

This person can succeed in time if they just take

action. There are more of these people than any of

the other types. If you are this person, please

determine now how much more information you

will need. If you don’t set a deadline to begin, then

you will never start.

Optimistic faith filled one: This person is willing

to learn and follow until they are able to stand on

their own. They have faith in people and more

important faith in themselves. They draw to them

the circumstances that create wealth. They take

their basic knowledge of a system and with time

show what may seem impossible to others. They

don’t let the words of the negative faithless one

persuade their outlook. They are quick to say “ Get

Behind Thee Satan” and focus on the positive

productive things in life.



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They have that childlike quality that we all shared

learning to walk. We never said I might fall down or

walk into traffic. Imagine as kids if we had the choice

of learning to walk. I know a few people who would

be crawling today. It is your choice to become wealthy.

You can believe it or not. As children we learned to

crawl, walk, run, ride, drive and fly. Let’s take our

financial situations through those steps 1 at a time until

we all can fly.

In the next chapter we will discuss the basics of

finding property. The information in this manual is

enough to get you started earning profits on real estate

deals. We offer coaching called D.E.A.L.S. in

A.C.T.I.O.N.S. that covers more than just the basics

outlined in this manual. I strongly suggest that you

attend our workshop for more in depth training. Visit

www.kenBIGblake.com for more info.



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I would like to share with you something I’ve learned. I have

attended many seminars and purchased many courses since the late

eighties. I drowned myself in every bit of knowledge that I could find

dealing with real estate. I may have purchased well over a thousand

dollars in books alone. I don’t want to even think about the

thousands I’ve spent at seminars. I have consulted friends and family

alike in ways to maximize their purchasing power. I have made some

clients more money in deals than I have even made for myself. I’ve

had my realty license, loan officer license, and need only one course

to attain my appraisal license. I had the knowledge but something

was missing. I needed more knowledge. (So I thought) I invited a

fellow investor to a seminar a few years back and he declined the

offer. He said to me that I have the knowledge and that I should start

applying it to more of my own deals. It was then that I realized that

every single course I had taken or book I had read was all I needed to get started.

They all work. What I was missing was A.C.T.I.O.N.

ACTION CHANGES THE IMAGINABLE OPENING NEW

SYSTEMS.

I ask you to decide to make this one work for you. One other thing

I’ve learned, if you don’t believe you can do it, you never will.

Have faith and determination. Think BIG!!!

www.wealthinvolveswork.com


http://www.wealthinvolveswork.com/


15

(312) 376-8283



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CHAPT. 2

Finding Property

There are many ways to find property. Word of mouth,

driving, realty agents, the courthouse etc…as a beginning

investor you should focus on discounted property to get the

most for your investment dollar.

What is discounted property?

Discounted property is property that you can purchase

much less than the appraised value. Every investor has there

rule of thumb but I like to consider a property a discount if

it is 60% below the average selling price of like properties in

its area.

Some examples of discounted properties are those

going into foreclosure, tax sales, abandoned, sellers

relocating, divorce, death, auctions, estate sales, etc…All of



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these and more are good discount properties and can benefit

a beginning investor and future homeowner. I will talk about

three forms of discount property. They are foreclosures, Tax

sales, and abandoned property.

What is a foreclosure?

A foreclosure is a property that the lender calls the

loan on because of circumstances that lead the buyers to

come into default. The foreclosure process goes through

several steps ending with the property being sold at an

auction. One of the keys to acquiring a property this way is

to contact the owners before the sale. This will be discussed

later in detail in the following chapter.

Can a foreclosure be stopped? (Answer)

Yes. The buyer of the property can reinstate the loan by

paying all of the back payments, late fees, and any fees

associated with the filing of the lis pendens (legal notice)


http://kenbigblake.com/free-gifts/


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What are the stages of foreclosure?

They are slightly different in each state but follow a pattern

similar to this.

Stage 1 delinquency: Owner fail to make payment

Stage 2 lis pendens: legal notice is sent

Stage 3 complaint: tells why foreclosure is happening

and amounts of judgement

Stage 4 final Judgement: grants the motion to set

sale date

Stage 5 Sale: sale date is given for auction

The first two stages take place in 3-4 months. The third and

fourth stages take place in 6-7 months. The last stage is

normally in the ninth month. (Banks don’t like to foreclose.

They will work with a homeowner and use foreclosure only

as a last resort. Most homeowners only have to explain their

situations and work with the bank.)



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Can a person reclaim their property after it sells?

Some states have a redemption period and you can check

your local real estate attorney for the answers in your area.

As an investor when you work with people who are in

foreclosure you will find that more than half think that their

problem can be solved. In most cases their financial picture

will tell you otherwise. Don’t try to convince them to go

with your plan, just put the numbers in front of them and let

them decide on their own. Use your energy to locate and

obtain that next deal. Good deals are everywhere.



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What is a tax sale? (Tax foreclosure)

A sale of the property after a period of nonpayment of

taxes. The buyer of the property receives a tax deed or

certificate to show ownership from the courts at the auction.

In most cases you will own the property for far less than

imaginable.

Who can attend a tax sale?

Anyone can attend and buy a tax certificate that is not

currently in default on their taxes.

When are they held?

There are two types of tax sales. The annual is held

every year in January or February depending on the state and

the scavenger sale usually is held in the summer every 2

years. Visit the link below for info in your state.

http://www.tax-lien-certificates.com/


http://www.tax-lien-certificates.com/


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Do I own the property after a successful bid?

No you will have to wait until the redemption period is

over .Every state has different periods and in Illinois it is 2.5

years on residential and 2 years on commercial.

What if they redeem their property?

Then you will have received 1.5% on your money for

every month held. That’s 18% a year compounded.The

number to the tax sale department at the time of this writing

is (312) 603-3175. Here are a list of websites that may be

able to assist you

www.lexisnexis.com

www.taxsale.com


http://www.lexisnexis.com/

http://www.taxsale.com/


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What is abandoned Property?

Abandoned property is a property that the owners let

deteriorate and is left uninhabited. In some cases these

properties are confiscated by the city.

Why is abandoned property a good deal?

Most of the time a property owner who has abandoned his

property will be willing to sell it for little or nothing.

What if the property has city liens on it?

Find out exactly what kind of liens they are and contact the

appropriate agencies. Let them know your intentions and that

you will be bringing the property up to code. In most cases the

city will work with you to accomplish this.

What if the property is owned by the city?

If the property is owned by the city it may be possible to

purchase it through the *Chicago Abandoned Property Program.

(CAPP) Some of the housing is sold for as much as a dollar. The

dept. of housings number is 1-800-882-0882 or www.nhschicago.org.

For your state visit http://www.unclaimed.org/


http://www.cityofchicago.org/city/webportal/www.nhschicago.org

http://www.unclaimed.org/


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CHAPT. 3

Finding Property Owners

I hope upon your arrival at this chapter that you

have a clear understanding of what a discounted property is.

(A discount property is one that you can buy at least 20%

below the market value) As a beginning investor future

property owner it is very important that you began operating

at a profit. Don’t rely on what may happen in the market.

An investor can see their profit clearly before the purchase

not the resale. Buy smart, buy right, and buy low.

I would like to briefly share a story with you. One

day I received a call from one of my ads. The owner wanted

to sell her property to me with $6,000.00 down and I would

then take over her mortgage payments. I went to see the

property with one of my business partners and it was a nice

brick bungalow with plenty of space for additions and a 2.5

car garage. I loved the property but more important I



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needed to see the numbers. I found out that she paid the

appraised price and that the homes in that area were selling

far short than her appraisal. She had the house for less than

a month and with section 8 tenants she still would have to

put $2-300 out of her own pocket monthly. She bought the

home from a seasoned investor who made about $40,000.00

on the deal.

I really felt her pain but there was nothing that I could

do to help her. I told her if in her situation how I would

solve it. Most people don’t listen to advice but in her case

she did. Within 1 week she had a contract on the house, paid

the mortgage note and was relieved. Guess what? I met the

investors that put the contract on the property. They were so

anxious to make a deal that they failed to look at the

numbers. Don’t ever guess the numbers, know the

numbers.

Well enough of the stories, let’s get down to the real reason

you are reviewing this information.



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How do I locate an owner of a property?

The neighbors.

There are many ways to locate an owner. I will show you 3

of the most basic.

The first thing to do is ask the neighbors. They can tell

you more about an owner than sometimes you’d care

to know. They may know where the person is or

works. You can also use this opportunity to tell them

you are an investor. Leave a couple of business cards

with them in case they feel uncomfortable giving you

information. They can then pass them on to the

owner. Another thing you may want to do is leave a

flyer on the property in hopes the owner will return to

check up on it. Neighbors also may have knowledge

on sales in the area. (We cover this more in detail in

our Deals in Actions coaching.

www.kenBIGblake.com for more info.)




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Realty agents

The second thing may be to ask a realtor. You can give

them the property address and they can pull up a

detailed report with the tax information and all. In our

D.E.A.L.S. in A.C.T.I.O.N.S coaching we discuss

approaching agents.

Websites

The third thing you may want to try is a website that I

have found helpful in Illinois.

( http://chicagotribune.public-record.com/realestate/.)

When you reach the site go to the real estate section and

click on the transactions link. A section will come up that

allows you to enter an address and zip code. This site has

all the properties that have been sold within the last 7

years. It will tell you how much they paid and the owner’s

name. Check the phone book by name and address to

locate the owner. In some cases a people find search

engine will help locate a number.

www.Zabasearch.com


http://chicagotribune.public-record.com/realestate/

http://www.zabasearch.com/


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County building: http://www.courthousedirect.com

The fourth and most informative is to take a trip to

your county court house. In Chicago this is located at

118 N. Clark street. When you enter go to room 112

* Maria Pappas Cook County Treasurer. There are

several large black books. Find the book with your

address and get the tax I. D. #. This is ten numbers

that describe the property. This number will tell you

where the tax bill is sent and who pays it. The number

to this office is (312) 603-6025. They will also be able

to tell you if the taxes have been paid. Once you have

the tax I.D. number you can go to room 120 *Cook

County Recorder Of deeds. Go to the tract

department located in the basement. Give them the tax

I.D. number and they will give you more information

and a document number. Take this document number

and go down the hall to the microfilm library. Anyone

in this department can help you or you can go to one

of the computers and enter the doc #.This number


http://www.courthousedirect.com/


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will tell you everything about the properties mortgage

terms, liens, legal description etc… The number there

is (312) 603-5582 at the time of this publication.

When the property in question has taxes owed you

can visit room 434 *Tax Redemption Division. Give

them the tax I.D. number and they can give you a

printout called an Estimate Of Redemption. This

will tell you all the fees associated with the properties

back taxes and the amount to bring it current as of that

day.

Sometimes finding a phone number for a property

owner is the hardest thing to do. With a little patience

you will soon be able to do this in your sleep. The

more you look the more you will uncover and learn. I

would like to share another story with you.

I had a buddy that liked an abandoned building in a

good area. I told him that I would find out the name

of the owner, how much they paid for it, what the

property was worth now and rehabbed. Well I think



29

my mouth was speaking before my mind. I would have

been better off telling him how to do it.

I spent about an hour cross-referencing and

searching all of my sources. The property went

through about 4 different owners in a year’s time and

they were all related. (Deductive Reasoning) They also

purchased the lot next door. It turned out that the

owners lived 2 blocks away on the same block in

which my buddy lived. I wish there was a more

surefire method that only took the time it took him to

walk up the street. ( There Is.) In order for you to learn

it will be better for you to go through the process 3-4

times. After you have learned what to look for then

you may want to teach someone your methods. There

are a lot of people willing to learn as you yourself are.

The more time you can free up to find deals the more

successful you will become. Find what you are good at

and devote your time to that.

Every thing you will learn in this manual is very

simple to do. Don’t kid yourself though. It will take



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time to get good at it. There is much involved in

investing for an investor to try and learn everything.

Take what you do know and use that. When you reach

a challenge talk to someone who deals with those types

of challenges. We have a website that you can use to

ask us and other professionals for information. Visit

www.kenBIGblake.com ( Yes… again it is me)

In our workshop we contact owners of property

in a learning environment. You will be able to listen in

on deals and have the chance to also make calls

yourself. You will see firsthand that there are really no

two deals alike and how to ask the right questions to

begin negotiating.

I suggest that you attend our coaching if you

are seriously thinking about investing. The

thinkBIGradio podcast offers discounts on realty

related services and put you on a fast track to your first

investment property. We also offer discounts to clubs,

associations, and groups of 15 or more that attend our

training.




31

CHAPT. 4

Contacting The Owner

What do I say?

When you are dealing with the owner of a property it is

very important ( if it is a distressed property or foreclosure)

that you approach the situation as if it were you in there

shoes. Everyone has his or her own method of dealing with

a cold call and with time you will develop what works well

for you. I must stress here more than anything that each deal

has to be a win/win situation. That is the only way to

remain successful in this business.

When you contact an owner the best thing to use is

common sense. Tell them that you are interested in

purchasing their property and if they would consider

meeting you to discuss details. If they are not looking to sell

leave them your name and number and also make a note to

call them back in 3-5 weeks to see if they haven’t changed



32

their mind. If they are willing to sell try to find out as much

as you can about the property over the phone. Here are a list

of questions you can ask for either seller or buyer.

Questions for sellers/buyers

How many rooms? (Bedrooms/Baths)

How many baths?

Is the basement finished?

Does it have a garage?

How many cars does it hold?

What type of heating system?

Does it have air conditioning?

Does it have an existing mortgage?

Is the mortgage assumable?

What are you looking for as far as price?

Are there any problems that need fixing?



33

How long have you owned it?

Is anyone else on the title?

What are the yearly taxes?

Are they paid?

Do you have a copy of the tax bill?

What is the average monthly gas bill?

Is the neighborhood nice?

Where are the closest schools?

(Grammar/High/Private/ catholic Etc…)

Where is the nearest hospital?

Where is the nearest public transportation?

When can we meet so that I may present a written

offer?

What will you be doing with the money?

How quickly do you want to sell?



34

What was the property appraised for?

When was the last appraisal?

Will you owner finance?

What is most important to you in this deal?

Where do you work?

How long have you been there?

How much do you make a month?

What type of property are you looking for?

How much do you have down?

How is your credit?

If the property is not in an area that you are familiar

with the best thing to do is to contact a R.E. agent and

ask for a comparative market analysis. This is as close as

you can come to an appraisal. The realty agent can give

you a list of the like properties in that areas selling price.

This in some cases is more important than an appraisal



35

because it tells you what people are willing to pay in that

market. (http://www.trullia.com or www.zillow.com)

When you have determined value and what you are

willing to pay then it is time to write up your offer. I

myself like to present the seller with three different offers

and a brief explanation of each. My first two consist of

some form of owner financing and I point out the

benefits of it and what they would receive in the long run.

I try not to go over 15 years and never use balloon

payments under 7 years. My third offer normally consists

of financing through a bank. (Sometimes you may not be

able to close on a deal.) That is a part of life. However, at

our D.E.A.L.S. in A.C.T.I.O.N.S coaching we can show

you how to still make a couple of thousand dollars on a

deal.

(http://kenbigblake.com/free-gifts/)


http://www.trullia.com/

Corporate/BIG%20LLC%201/Division%203%20University/ThinkBIGuniversity/BIGu%20Deals%20In%20Actions/Extra%20Workshops%20&%20Manuals/www.zillow.com



36

No points

No fees

No yield spread premium

No pre-payment penalty

No balloon payment

No required credit life or other unnecessary and overpriced insurance

Buy down an already below prime market rate to .125% interest rate

No appraisal fee

No mortgage insurance premium

No closing costs

No lawyers Fee

Find out more here!!!!!




37

Chapt. 5

Finding Financing

Financing (banks)

Every investor needs this one way or another. There

are hundreds of banks in your city alone, not counting the

ones that are a keypad away. These banks have 2-3 or

more lending programs each. If you have decent credit

great, if your credit is not that good then you can try

those banks that loan on the value of the house. You can

contact the banks directly or save time by contacting a

mortgage broker that has access to a majority of banks

with your specific needs.

As a beginning investor there are certain

documents that you must have available at all times.

These documents make up your loan package. Although



38

you may have a bank that you work with continuously

there are still other banks that may have to finance your

project. It is imperative that you update this file monthly.

Sometimes you may need to close on a deal within 10

days. This is not uncommon in the world of an investor.

Once you get the hang of it you may be closing in 2-3

days. I will now list the items that most banks require

from you for financing.

W-2 (2years)

Current months pay stubs, or proof of income

Employment address ( 2 years history)

Last 3 months bank statements ( all accounts)

Apartment lease (if renting)

Open loans-monthly payments etc…

Real estate loan numbers, balances monthly

statements

Social security card and drivers license



39

Complete copy of bankruptcy schedule and release

Divorce decree

Va certificate of eligibility and or dd214

Year to date profit and loss statement for self

employed

Income tax returns for the last 2 years

Personal check, money order or cash for credit

report

Retirement fund statements, including 401k IRA’s

etc…

Name address phone number of attorney,

insurance, carrier and real estate agent

Proof of earnest money (copy of cancelled check

front and back)

Most recent statement from accounts to be paid off

if it’s a refinance.



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Most lenders need all or most of the articles that I

have stated. There are also a number of things that you

shouldn’t do while you are waiting for your approval.

They are as follows

Don’t change jobs

Don’t make any late payments

Don’t purchase any high end items

Don’t transfer money from one account to

another

Don’t deposit large sums of money without

notifying your loan officer

Don’t cosign for anything.

Don’t apply for any new credit

There are also credit unions savings and loans

and private investors that will also make loans on

your deals. private investors may have a higher



41

interest rate and shorter term but sometimes that

may be all you need to make a quick 10,000.00

Owner financing

One of the best ways to pick up a property is

if the owner finances you. You will need a contract

for sale stating the terms in which you both agree.

Sometimes the owner will finance you their equity

in the property while the bank finances you the

remainder.( You must ask the right questions in

order to find out if it will be advantageous for the

owner to finance the deal. 5 out of 10 times it is.)

When an owner finances the terms aren’t as

stringent as what the banks look for. They can get a

small down payment and like a bank charge you

interest on your loan. (Never pay more than 12%

interest in owner financing.) The benefit an owner

will receive is that they are not taxed on their capital

gain but only on the income they receive monthly.

Also if a buyer keeps the loan for the entire term

the owner will receive almost 2 times the amount



42

asked for because of the interest payments. (Most

people refinance within 3 –5 years of owning.)

Lets do some quick math.( my worst

subject) Lets say you are selling your home for

100,000 dollars and you are owner financing it. You

are charging 10% interest with nothing down. You

are selling with the term being 15 years. That’s 160

payments. The monthly payments are 1,074.61 In

three years you will have received 38,685.96 cents.

The amount that would have gone to principal is

$8,685.72. The buyers refinance and they pay you

$91,314.28. The owner has just made an additional

$30,000.24 cents on their property by playing bank.

If the buyer fails to refinance, the owner will have

received $193,428.92 cents for the entire 15 years.

There are many scenarios that can be

made to work if your desire, dream, dedication, and

creativity is there with you. The more education you

receive the more creative you will become.

Financing can be a dream or a nightmare. It is up to



43

you to choose what it will be in your eyes.

Sometimes an investor may have to take a little time

to get their financial situation and credit in order.

Don’t let this deter you from finding deals.

What is pre qualified?

Some banks or mortgage brokers do what is

called a pre-qualification. This is when they tell you

based on the amount of money you make minus

the money you owe, how much you are most likely

to be approved for. This can be done over the

phone. It is quite simple to do and is one of the

courses we teach in our D.E.A.L.S in

A.C.T.I.O.N.S. coaching.

What is a pre-approval?

A pre-approval is when you have a banks

approval and you are issued a letter for a certain

amount for a specific time as long as nothing has

changed in your initial paperwork. Owners are

more willing to close faster for a lower amount than



44

wait for someone who has to find financing. Never

let an owner know exactly how much you are pre-

approved for.

In some cases if a property needs work the owner

will give you credit towards fixing it. What this

means is that they will lower the purchase price by

the amount that is needed to correct a problem

within the property. When you are buying a

property it is better for you to correct a problem

with the funds credited to you then relying on the

owner to do so. The reason is because you will take

more time to make sure it is done right as opposed

to an owner who just wants to sell.



45

Chapt. 6

Credit

Lenders look at many things when making a

credit decision, including income, kind of credit

applying for etc.. A FICO score only evaluates your

credit report at the credit-reporting agency.

What is Credit? (Need Assistance In Increasing Your Score )

In finance, the availability of money, A sum

available to one as in a bank account, trust in ones

ability to meet payments when due?

What is a credit score?

A credit score is a score based on various factors

dealing with the activity on your credit report. This

is known as a FICO score.




46

What is a FICO score?

The banks use this to help them access your risk

level when determining whether to issue you a loan.

This is named after Fair Isaac a company that has

software that generates the scores.

How is this score determined?

This score is determined by the compilation of

five factors of information gathered from your

report. They are as follows.

Payment History 35%- Your track record on

the various accounts you have open and

closed.

Amounts owed 30%- Close all unused

accounts and pay off all with balances that are

maxxed

Length of credit history 15%- Age of oldest

and newest accounts, how long accounts have

been open yet unused.



47

New Credit 10%- Are you taking on more

debt, opening many new accounts at once?

Are there many inquires on your account

Types of credit 10%- Installment, revolving

retail, finance companies

Each credit bureau has a different score because

Fair Isaac only looks at each individually and not

as a whole.

What is the best way to build my credit?

Start by eliminating everything that causes you

to be overextended. Challenge everything that

appears to be a mistake or shows up more than

once on your report. Close all unused open

accounts. Don’t make any late payments.

Eliminate 1 of your accounts that are of the

same nature. (Sears, Montgomery Ward-

Carson’s, Neiman Marcus-Home depot,

Menards etc…)We offer in depth credit repair in

our advanced workshop. Borrow from a bank



48

with a secured loan. Several new good ratings

can override a few older negative ones.

What if my credit report has mistakes in it?

The best ways to fix these mistakes are to

dispute their validity. I have enclosed a copy

dispute letter at the end of this chapter so that

you may have an example to go by. L.O.X.

(letters of explanation) can be used to explain

negative items on your credit report. In our

D.E.A.L.S. in A.C.T.I.O.N.S coaching we

cover credit repair and teach/help you repair it.

Will I still be able to purchase a home with bad credit?

Because of the many different lending programs out there

you can. In most cases it is better to have a place lined up

with enough equity to support the program. In some cases

40% equity. There are many banks that will loan with the

owner financing his equity position as long as the bank has

the first mortgage position.

I already have great credit and want to earn income!




49

Credit bureaus

www.equifax.com

800 685-1111

888 532-0179

P.O.box 740241

Atlanta, Ga 30374-0241

www.experian.com

888 397 3742

Experian national consumer assistance center

P.O. box 2104

Allen TX. 75013-2104


http://www.equifax.com/

http://www.experian.com/


50

www.transunion.com

800 888 4213

800 916 8800

Transunion LLC

Consumer Disclosure letter

P.O. box 1000

Chester, PA 19022

Here is a list of credit related websites that may help you.

www.creditbase.com

www.truecredit.com

www.fairisaac.com


http://www.transunion.com/

http://www.creditbase.com/

http://www.truecredit.com/

http://www.fairisaac.com/


51

Chapt 7

Writing offers

Are you aware that your initial offer does not need to be

on a sales contract? Sometimes when you are out in the field

you may not have access to your tools. In a case like this

who has time to find an office supply store. Whatever is

handy will do just dandy. After you have came to an

agreement then you can meet later with all the details on a

Real Estate Sales Contract.

What does an offer consist of?

An offer consists of giving and taking. Offers

deal with negotiating. You must be prepared by

knowing your numbers and the most that you will

pay for the property in question. You must be

willing to compromise to reach a deal that both of

you will win. You must be then ready to put



52

everything down in writing to sign. Once the

contract is signed then it becomes legally binding.

You and the seller or buyer are then bound to the

agreements terms and conditions.

What are the basic things to have in an offer?

A standard offer normally but is not limited to the

following items.

Sellers/buyers name

Street address/legal description

Any items you would like in the deal (car,

refrigerator, patio furniture etc…)

Purchase price

Amount down (if any)

Interest rate

Principal & interest payment

Balance at close



53

Years the mortgage will be

Date by which you can secure financing

Closing date

Any addendums

What is an addendum?

An addendum is something added to the

contract. In most cases it is a way out in case

something you find out later affects the deal in a

manner that really cuts into your profits. Most

addendums involve the type of financing you are

looking for and property inspection clauses. We

go more into detail in one of our D.E.A.L.S. in

A.C.T.I.O.N.S coaching on writing offers.



54

Chapt. 8

What makes sense?

This is the story about two people born on the

same day same year. Both kids were told to do well

in grammar, high school and college. They were

told to apply with a well-known company that was

stable upon their completion of schooling.

However one of the kids decided to also

build a business on the side in her spare time for a

little extra income. (http://kenbigblake.com/earn-while-

learn/) Every month she followed her plan like

clockwork. After a while this income became more

than the income she received at work. This extra

income went toward purchasing multiunit buildings,

which in turn produced more income.. She had to

form a corporation to handle her assets.


http://kenbigblake.com/earn-while-learn/

http://kenbigblake.com/earn-while-learn/


55

After working for the company for 12

years they had a layoff. The job security that they

both counted on was now gone. What do you think

happened to the person that didn’t try to build a

business on the side? The person that didn’t own a

building that brought on extra income.

Not one of us would like to be in that

person’s shoes but everyday that we are not doing

things to build our own business is a day that we are

closer to becoming a victim of our lack of

economic education. The business owners don’t lay

themselves off.

Property income is passive, which means

whether you work for it or not it will continue to

come in. You only need to maintain it to make sure

it is working well. This is similar to residual income.

Put in a little effort today and get paid tomorrow.

There are many companies out there that have this

type of income in which you own your portion of

the business. That is also something a



56

beginning/investor future homeowner should look

into. The most important thing you can do is to

continue your education in areas of finance. Believe

me, MONEY MATTERS!!

(www.thinkBIGradioGUEST.com )


www.thinkBIGradioGUEST.com


57

For more information on our services and educational workshops

you can contact us at

www.kenBIGblake.com




58

Thank You for allowing me to help educate you in Realty related matters. I am but one person in a group of individuals from all areas of business willing to share ideas and help you reach your goals. (www.welivelifeBIG.com ) I have included this updated bonus section from questions asked and to help enlighten various aspects of the purchasing process. Please share this manual with family and friends. Thanks Ken BIG Blake www.kenBIGblake.com

Your Goals Are Our Goals &

Your Success Makes Us Successful


http://www.welivelifebig.com/



59

This Bonus Section will briefly cover 4 Topics

1. Foreclosure Buying

2. Hud Homes

3. BIG News 4. D.E.A.L.S. IN A.C.T.I.O.N.S Coaching



60

1. Foreclosure Buying: First things first, the leading cause of foreclosures is owners not able to make their payments because of living paycheck to paycheck and predatory lending projects. Many websites are set up that cater to individuals looking to cash in on this market. Many of these sites confuse the novice investor because the prices they have posted are prices to bring the mortgage current. These prices don’t include eviction, fix up, or total amount owed. Although it may be a foreclosure it still needs to be financed. (Unless you have the cash to buy it outright) The best time to pick up a foreclosure is before the banks own it. The bank works with realtors who try to sell it at current market value. There are many facets involved in true foreclosure buying. Visit my website www.kenBIGblake.com for more info




61

2. Hud Homes: A hud home is similar to a foreclosed home. It actually is a home the bank owns that had a Fha insured mortgage. A Good 80% of foreclosed homes need work rather it be hud, va, or conventional. There are many programs available to purchase and fix up these homes. With the right financing your hud home can receive a complete makeover with no out of pocket costs. Visit www.kenBIGblake.com. for more info. Ex. You are qualified for $150,000.00 loan. Hud home in your area listed at $100,000.00 Home needs $50,000.00 in work Homes in area appraise at $175,000.00 With 203k ,203b or various other programs you will receive the purchase funds and funds to fix the property up. The funds will fall within your budget and within 30-60 days your new completely rehabbed home is ready for move in. Your first mortgage payment wont be due until after everything is completed. Your $150,000.00 pre-qual just moved you into a home with $25,000.00 in equity. Most people don’t realize that these homes are a good bargain and that there are loan programs available to assist them in these purchases.




62

3. BIG News ( www.kenBIGblake.com )

December 26th through December 29th 2014 we will choose 100 people to work with for an entire year.

We will help you increase your income by $50,000.00 or

more in 2015.

We will be offering a double your money back guarantee if you are unable to increase your income by $50,000.00.

You must commit to following our program and doing

a video testimonial upon reaching $50,000.00



63

4. D.E.A.L.S. IN A.C.T.I.O.N.S

W.H.Y. should I attend?

Simple…….because

We Help You….

D.E.A.L.S in A.C.T.I.O.N.S Can teach a

B.R.O.K.E. S.L.A.V.E With

G.O.A.L.S Over

T.I.M.E to

P.L.A.N.T. S.E.E.D.S from

I.D.E.A.S & D.R.E.A.M.S with the right T.O.O.L.S

too F.R.E.E

Themselves using T.E.A.M. S.Y.S.T.E.M.S L.A.W.S & R.U.L.E.S.

to create



64

S.U.C.C.E.S.S. through

S.U.P.P.O.R.T To

G.A.I.N. P.O.W.E.R.

D.E.A.L.S. IN A.C.T.I.O.N.S

Do Everything And Learn Something Action Changes The Imaginable Opening New Systems

B.R.O.K.E Build Regardless Of Known Environment

S.L.A.V.E Someone’s Labor Achieves Vagrant Existence

G.O.A.L.S Go Out And Learn Something

T.I.M.E To Impede My Enemy

P.L.A.N.T. S.E.E.D.S Plan Learn Assimilate Nurture Trust

Seeing Every Endeavor Develop Success

I.D.E.A.S Idle Dreams Eating Away Senselessly

D.R.E.A.M.S Do Right Enjoy And Manifest Success

T.O.O.L.S Timing 0pportunity Open-Mind Liquidity System

F.R.E.E. Financially Ready Enjoying Everyday



65

T.E.A.M. S.Y.S.T.E.M.S Training Energies Aiding Momentum

Seeing Your Strongest Talents Earning More Simultaneously

L.A.W.S. & R.U.L.E.S Leadership Achieves Winning Solutions

Leaders Attain Wealth Systematically Retain Unity Loyalty Empowering Success

S.U.C.C.E.S.S S.U.P.P.O.R.T Seeing Unity Change Circumstances Enabling Someone’s Success

Simple Unified Problem Prevention Organized Reliable Teamwork

G.A.I.N. P.O.W.E.R Growth Achievement Independence Noble (Nobility)

Person Of Wealth Exercising Righteousness

thinkBIG!!!



66

There are many who say and do

nothing, as opposed to

those who do and say nothing!

Ken BIG Blake www.kenBIGblake.com

Thanks & remember to thinkBIG for all of your

R.E.A.L.T.Y. Financial & Business GOALS…

Your Goals Are Our Goals &

Your Success Makes Us Successful



Documents

LESSONS FOR BEGINNING INVESTORS FUTURE HOMEOWNERS...building was a two flat with 5 units and the lot next door. Three of the units were 3 bedrooms and two were 2 bedrooms. The mortgage