Justin B. McClelland

I’m checking in.  It’s day 3, into the 30-day “get a buyer” time window.  And I’m just now completing my property showcase page.  I feel like, I’m behind already because I’m 3 days in and am just now at the point where I am.  Anyway, I felt like blogging for a second because for some reason it de-stresses me.  I have been working on that damn website since 11pm…it’s 7:50am as I type this.  I’ll give a quick run-down of what I did:

1. I installed another WordPress blog onto my Schwaps.com hosting space, this was fairly simple since my hosting provider (readyhosting) now has a one-click WordPress installation feature (it wasn’t always that way).
2. I searched around for free wordpress Real Estate themes.  Good free themes are usually hard to come by, however I found a good collection at ThemesJuncion.com
3. I installed the “Real Estate Agency” theme
4. I added my two properties to the site.  I then had a helluva time getting that site configured the way I wanted it.  I also had spent hours generating the comps and CMA’s that I linked to each property page

So to the right, is the end-product. I still have to add a few things that Lawrence Roberts suggested I do, to make the wholesale deal more turn-key for an end-buyer.  So I’ll still need to get contractor estimates and I’ll need to offer tenant placement service, as well as a contractor management service.  I just need to brainstorm the copy and get the contractors, etc. on stand-by.

But instead of holding things up, I’m going to move forward with the email-blast this morning.  I also have a ton of phone calls to make to wholesalers and landlords.  And to make matters worse, I have like 15 leads on new properties that I need to call back, I have some signs to make for tonight, and I’ve got to see if I can find a cheap lockbox somewhere for one of the properties…hmm as I typed that I think I’ll try to rent one from a Realtor.  That’s a good idea.  I ain’t paying $40 for a new one. Gotta go.

- Peace Out

Business, Marketing, Wholesale Lawrence Roberts, property site, WordPress

You ever have a long list of stuff to do and you know what’s a top priority, however you start with the stuff you feel like doing?  That’s what I face all of the time.  On one hand, at least you’re getting stuff done…but on the other hand, priorities are priorities for a reason.

Anyway, since I’ve been making to do lists every night before sleep, I’ve doubled my production.  Nothing like seeing your list with all check-marks on it, right.  Even though I get my lists accomplished now, I still struggle with doing the stuff I don’t feel like doing at the time I need to do it.  I’m getting better at it though.

Like right now, I’m on my way out the door to get some boxes from Wal-Mart (you know how they stock shelves in the middle of the night).  If I don’t leave to go get them now, I won’t be able to put any signs out this weekend.  Trick off this task and I waste a week of advertising.  Also, as a side note, I’ve got an idea about these signs that I’m not sure has been done before.  I may post about this later.

I made a post to BiggerPockets for the first time in a long time.  The article is about using a software called ShortKeys.  It’s awesome for automating some repetitive keystrokes, check it out.

And my new found recreation is adding to my compilation of hot verses.  I spit hot fire…at least more so than Dylan.  Volume 2 of my mixtape just hit the streets, I got the hood going crazy….I’m so focused…that’s what’s up…real talk….check my swag…I’m so ill….okay, I just ran out of Hip-Hop buzz terms but you get where I’m coming from.

And speaking of the hood…remember when I was venting about some people would claim that Champaign had it’s “rough” areas…and I was like, there’s no such thing in Champaign?  Well anyway, yesterday I went to the hood for real.  A lady called me telling about two properties that she practically wanted to give away.  So I went to check them out…they were in Washington Park, IL….what I learned later to be the worst part of East St. Louis, IL.  I knew it was going to be bad, but damn!  Even my Mom tried to pull rank on me and tell me not to go.  I assured her that I wasn’t going to get shot in the day-time (not that I knew that for sure, it’s just what I told her).  These properties where in bad shape, but for practically free, I may be able to find someone to buy them.  It’s a long-shot though…this neighborhood is that bad.  The owner accepted my verbal offer of $500 each and it would be an option-contract (yes…$500).  Even with this negotiated, I’m not going to put too much time into this.  I’m learning as I go what to put the most effort into…this stuff will just sit on the back burner from the get-go.  And I guess your Mom always knows best…I don’t watch the news (intentionally) but I walked in on this story on the news this morning.  This happened less than 100 yards from the houses I looked at and less than 6 hours after I left from there.  Crazy stuff.

Anywho, on a positive note. Check out this hot flame:

J-Suave Mixtape v2

Business, Real Estate IL, Mixtape, Option contract, washington park

So this is my last weekend as a resident of Champaign and I’m en route to Saint Louis .  As I pack up the necessities, I am reminded that I keep way too much stuff around that isn’t necessary.  Thank God for CraigsList, as I was able to sell my couch, bed, and desk (never doing U-Haul ever again, plus when I move from STL I’m starting fresh with all new shit).  But during this sale process I practiced my negotiating skills on these buyers.  I emphasized in the CL post that I was a motivated buyer, I had in all caps MUST SELL NOW and etcetera.  But I didn’t list a price anywhere, I just told the people to reply with an offer.  My (queen) bed sold really quick for $60, funny thing is I only paid $100 for it back in college.  A forty dollar 7 year rental sounds pretty good right.  The item I was most surprised about was the couch, which I got $80 for.  The girl that bought it responded to my ad and said she’d pay $125 for it.  I was like WTF (had I listed a price I would’ve priced it at $40)!  So then I said, if she picked it up within a few hours that same day, I’d let it go for $100.  When she arrived we settled at $80.  This whole scenario just reminded me that a product is worth what someone is willing to pay for it.  I wish these real estate property sellers would realize this fact.  Too many people balk at my offers with the response, “You’re offering me less than what I paid for it”.  My mental response is “that is completely irrelevant, so let your house sit on the market for another 200 days, I couldn’t care less”.

So anyway, although I’m leaving town I’ve made some major strides in the last two weeks:

• I’ve found a way to revamp my (efficient) offer making process for MLS offers (video coming soon), although this new method is completely compliant, I’ll probably still piss-off some of the local Realtors but…I don’t really give a shit.
• I’ve also fully launched my Property Scout network, though I need to step-up the promotion of it.  CraigsList, I think may be the only way for recruitment.  However, I’m officially a registered employer via a local temp agency in town.  I think I’m going to see if I can work with them on this.  Perhaps, I should look into Monster, CareerBuilder, etc.  Why not?
• In return for some Mozenda Screen-Scraping, a guy out of the UK hooked me up with some web-hosting and a bomb-ass Real Estate WordPress theme.  The site is www.ChampaignDeals.com check it out and let me know what you think.  I still need to tweak it alot and complete it with some custom content.  But I’m thinking I can throw some wholesale deals on that site, get other local real estate professional to contribute to it…perhaps make it accessible only if one completes a squeeze page…etc.  I’m liking this barter thing…so if anyone else wants to trade services, get @ me.
• I also have a new partner in crime.  About a week ago, a young lady gave me a call out of the blue (why was that color selected for that saying anyway?…but I digress).  She is from Chicago and fairly new to the Champaign area and wants to get into Real Estate Investing.  She was asking me if there were any REI clubs, mentors in the area, etc.  I gave her some contacts of other investors that may want to mentor her, and also told her about my property scout program.  After a few days, we had a few more phone conversations and met in person.  This girl is on point!  I think she’s more of a hustler than me…which is saying a lot, if I don’t say so myself.  So since we’ve decided to team-up, she’s going to take over most of my marketing tasks.  And I’m going to tell her everything I know.  Which is actually a lot, contrary to popular belief, I just have ran into all kinds of bad-luck with closings…but anyway.  She told me that she has read tons of books on investing, as she speed reads (yes…speed reads. If that doesn’t say you’re sharp as a tack, I don’t know what does), but ‘doing’ is the best education of all.  So I think this is the start of something really good.

That about sums up the last 1.5-2 weeks.  Oh, I also have got some Internet Marketing stuff up my sleeve too.  As well as an eBook about the whole DIY yellow letter thing.  I get a lot of questions about this process, still.  In the ebook I’ll go into much further detail.  All of my wholesale flip situations haven’t changed status, still a bunch of BS holding those up.  So anyway, the kid has still been on his grind.  I hope yall didn’t think I gave up.  By the way, I’m bringing accountability-monday back.  I forgot why I stopped anyway…

- Peace Out

Accountability, Business, Internet Marketing Assembly Hall, CareerBuilder, Champaign, CraigsList, property scout, Real Estate, saint louis

So I finally have my semi-automated system in place that will allow me to make 40+ offers per week.  Basically what I have is an Option-Contract and a Cover Sheet that are mailed out to the owners of properties that have been listed and since withdrawn from the MLS.  My Realtor was able to export an Excel file from the MLS that contains the expired property information that I desire.  This spreadsheet was then appended with county assessor information (last date sold, owner name, assessed value, and etcetera).  The Option-Contract and Cover Sheet have mail-merged values that include the property address, offer price, mailing address.  This mail-merge along with the custom Excel doc, makes me semi-automatic.  After all of the printing is said and done, I hand-address the envelopes.  I just sent out my first batch today.  Next week, it’s on and popping again.

However, next week I’m going to use my Tax Delinquent list and not the MLS expired list.  I have a Tax Delinquent list left over from the tax sale last October.  With the MLS expireds, there is way too much additional manual-work needed…it’s best to check if the property has since been relisted, if the property has been sold, and etcetera.  This extra work takes the automation right out of the equation.  This is still a task to pursue, but best in addition to something that’s close to automatic and always running in the background while I perform the tedious composition of some offers.  With some of the offers that I’m making, many will go straight to a waste-basket, I’m sure.  But I need to boost the amount of “hell naws” that I receive so I can accept more “yes please” replies.  We all know this is a numbers game.

And to the email naysayer #242 who wrote:

…I seen your 40 deal a week strategy. Thats almost impossible dude…

This is my formal response:

Please Believe That.

- I’m Out

Business, Entrepreneurship, Internet Marketing, Random, Real Estate, Short Sale Microsoft Excel, offers, tax delinquent

Accountability Monday once again.  And I didn’t accomplish my goals.  This accountability stuff is embarrassing when you don’t get the job done, but I guess that’s the point!  I’m going to keep the same goals for next week as I had last week.  But, I’m going to make it 40 offers instead, I need to make-up for lost time.

1. Submit a total of 40 offers on properties. (NEW GOAL)

*Tangent*, it felt extremely strange typing the title of this post.  That’s the first time I wrote the date since the new year. 1/4/10….for some reason when I look at that, my mind thinks 1910, but anyway.

I’ve had a lot going on and have learned very much from this wholesale deal while in the trenches.  I’ve learned enough from this deal to write an ebook, I’m not kidding.  And the deal isn’t over with yet.  I don’t feel like delving into great detail right now because it’s 2am and I need to get up in 5 hours.  So I’ll give the cliff notes in chronological fashion.

1. Seller contacted me
2. I checked out the house
3. Made offer and put house under contract on spot
4. I found buyer
5. I assigned contract
6. I ordered title search
7. Beaucoup liens appeared on title
8. I checked out liens at County Recorders office
9. All seemed well as they were minimal liens, hundred here, thousand there (sum of which are less than contract sales price)
10. The last lien on title didn’t have an amount, I had to call the Department of Health and Family Services to obtain the dollar amount.
11. The DHFS lien is 65K!!!! The house isn’t worth half of that as-is!

So now my wholesale deal turns into a short-sale if I’m going to make this work.  I spoke with the rep at the DHFS and he said that I’d need to obtain an appraisal and the appraisal would help the DHFS determine how much they’d be willing to discount their lien for this sale to happen.  Considering that I negotiated the contract price to be a bit less than what an appraisal may come in at, this deal lies in the hands of one guy at the DHFS.  I already have an idea of what I will need to do to push this through, I won’t go into detail about it now, but I’m fairly confident it will get the job done.  I’ll report about it later.

So as of now this deal is officially on life support with the aid of an African-American heart monitor.

Business, Real Estate Department of Health, DHFS, Monday, Short

Another Friday evening filled with work. I just got home from the gym. I ran 5 miles and it felt like 15. I don’t know what that was all about, it was torture! I didn’t skip any meals or anything…maybe it’s because I haven’t ran long since the summer (5 isn’t really long though). Oh well….I got it in.

Once I got home I ate and watched the Lil Wayne documentary for the 4th time. That dude inspires me sooo much. He basically has a work addiction. He records like 1,000 songs per year (I’m not exaggerating). And this documentary about him, let’s you in on how things really go down. The puzzling aspect of Lil Wayne is that he pretty much stays high off of weed and syrup (codeine) and still accomplishes so much creative work daily.

This translates for me as inspiration. Don’t ask me why. But I figure, if Lil Wayne can be one of the elite rappers in the industry and constantly release song after song, then I can get to 7-figures in 11.5 months. Every spare moment, I must work. Just like he does. It’s as simple as that.

So I’m off to stuff some plastic door-hanger baggies with brochures, so I can post them in select neighborhoods in Urbana tomorrow morning.  If I could post these on doorknobs at night without getting shot, I would.

- I’m out

P.S.
Here is the Lil Wayne documentary that I’ve been watching. I’m pretty sure that it’s not supposed to be available on the web granted that iTunes is charging $15 for it. I’m not hosting it…..so free game (it will probably get pulled soon by the owner anyway).

Business, Marketing, Random, Real Estate brochures, Documentary, Lil Wayne

Another Friday evening. So much to do, that won’t all get done.  This weekend is going to be pretty hectic.  I’ve got alot of RE work to do.  On a tangent note, why is it so hard to blog everyday?  I’ve been aiming to do so, but it doesn’t get done.  Then when I do post, I have so much new news that is backlogged, it doesn’t all get told because who feels like writing a novel each blog post?  Anyway, I digress.

I’ve revamped my advertising plan.  I know that the Newspapers don’t work for me.  After about one month, I had received all kinds of calls but they were for properties way out in Lynchville, Illinois (that’s meant as a joke, but did you know Lynchville is a city in Maine, Virginia, and Tennessee? Me neither. Either way, you won’t see me there).  My focus is on the college town of Champaign-Urbana, IL.  I don’t have the time or interest to learn about all of these little surrounding cities that don’t even have a Walmart (a good measure of city size BTW).

Nixing the Newspaper ads will free-up about $200 monthly in ad expenses.  So remember the door-hanger brochure idea I spoke about while back?  The brochures are being printed right now and I also got my friend to hook-up a flyer design.  The brochures will go into plastic bag door-hangers and be put on doors of houses within targeted neighborhoods, while the flyer will be printed in 11×17 size and put in grocery stores and laundromats and such.

I’ve also got another idea.  And I think it’s DOPE!  So check this out…as a resident of the Mid-West the winters can be brutal.  It’s not that cold yet, but once January and February rolls around it will be an every-morning task of warming up the car for 10 minutes and scraping the ice off of the windshield.  And I mean everyday.  So since that is a part of the morning routine for most (who don’t have a garage at least), I’m thinking of getting some promotional “We Buy Houses” Ice scrapers.  BAHM!  How you like that!  Genius right?  If these free ice-scrapers are distributed to select homeowners and are quality enough for them to actually use, they will read my advertisement every morning.  And probably every evening in the parking lot at work before heading home.  The beauty is that I can get some decent ones for like a dollar each, which isn’t bad.  I’m a marketing machine baybeh!  I’m going to let this idea marinate and I may just get some custom scrapers to ad to my marketing mix.

I’m a bit cocky to be as broke as I am right?  WRONG!  My vision is clear “I can see it NOW” and pretty soon my bank account will grow into the ego.  It’s all coming together, slowly but surely.

- Peace Out

P.S.
I forgot I was supposed to bring back accountability Mondays.  I’m going to get back on it next week.  Despite the fact that none of my blogger friends do it anymore.  What’s up with that anyway?!  You all know who you are.  That’s OK! (said in Al Pacino – Scarface voice) I’m going to bring it back anyway.  Bring it back like fannypacks

Business, Entrepreneurship, Marketing, Random, Real Estate Advertising, Ice scraper, newspaper

I just got off of work and now realize that I have another full days worth of work ahead.  I have some phone calls to return (why does everyone want to talk these days, I’m so not a phone person), I have a BiggerPockets blog post to contribute, I have some Mozenda tutorial videos to create, and some MLS offers to concoct before I meet with my Realtor tomorrow .  It looks like it won’t be feasible to get it all done tonight, but I’m sure going to try.  And on top of that, I need to get in the gym tonight (I’ve been working out 5-6 days a week for the last 2.5 weeks).  I need to keep the ball rolling on these habitual workouts so that they become habit.  It already is very odd to take the route straight home and not go to the gym after work.  I’ve also been eating alot better, not that I ate bad in the first place (my Mom is a dietitian).  I eat a large break fast, mid-size lunch, and a salad for dinner.  That’s been working so far, I have a feeling I’ll need to change this up soon.  Especially the salad every night.  But what’s the point in having money if you don’t have your health, right?

Welp, gotta go.  I’m just going finish downloading this mixtape to my IPOD so I can have the necessary Lou Ferrigno inspiration while I go hard in the gym.  Maybe I’ll post again later tonight when I need a break. Peace Out.

Business, Random Apple iPod, Health club, Lou Ferrigno

Okay, so after my post last night, I took immediate action.  I bugged a college friend who is a marketing wiz (MBA) and does graphic design until I finally got in touch with her via phone earlier today.  I ran my concept past her, as far as needing a brochure to put on houses explaining that I buy houses fast.  I’m leaving the graphics and marketing concept completely up to her as I know she’ll knock it out of the park.  She just started her own marketing company and I’m glad I’m getting to her early, because once she’s established she will cost an arm and a leg.  I’ve seen some of her past work and I know she’ll do good with this.  I’ll hopefully be able to outsource some other marketing materials to her too.  I like to find someone who does good work and stick with them.

I also, posted an ad on CraigsList that I needed someone to post those brochures to houses in select Urbana, Illinois neighborhoods.  It took me like 15 minutes to figure out what to offer as far as pay.  I quoted $100 per neighborhood and asked for resume and references.  May have overbid.  I know it’s a low skilled job, but I need someone who isn’t as dumb as a box of rocks and will be accountable, so that’s what I’m willing to pay for.  Because technically, there isn’t a feasible way that I know of to follow up on the work completed.  It’s not like I’m going to drive each neighborhood and check for the door hangers.  I need someone who is trustworthy right off of the bat and it looks like I’ll just have to screen to my best ability to get that person.

The door hanger brochures are just one more facet to my marketing strategy.  In my Preston Ely ebook, he said that nothing is going to start happening until you take MASSIVE action, so that’s the plan from here on out.  No more, half-assness.  Not that I was ever doing that, but it’s full blast from now on.  This advertising is getting expensive, I’ll just have to suck it up and keep living like a college student until things start to pop.

Business, Marketing Graphic design, Marketing, Marketing and Advertising, Preston Ely

Now that I’ve increased my advertising by 5 times, I’m steadily getting calls every day.  Pretty much receiving one to 3 leads each day.  The increase in leads is a good thing, however they’re not all motivated-seller leads.  I’m revamping my system now so that I don’t waste my time with the unmotivated people.  At my 9-5 I speak on the phone with people most of the day, this makes me dread talking to people who I don’t care to speak with.  So the plan moving forward is to let my secretary screen each caller, return some calls and follow up with people, therefore I have all of the pertinent information I need before wasting a single breath with property owners.  Tire kicker lead-sheets go straight to the trash can, “Kobe”!  No, but seriously they go to my Realtor.  We have a reciprocal exchange going for us, he helps me out alot, and I give him leads when I can.

My secretary was supposed to start last Thursday, but she came down with bronchitis.  So hopefully she’ll be well by Monday and we can get the ball rolling on some things.  I’ve come to realize that I cannot do all of this myself.  By the time I get off of work most days, I have only a 2 hour window to make call backs.  Half of the time I reach a voice mailbox, the other half I get someone who is long-winded and there goes my time window.  On average it’s taking me 3-4 days to get back in touch with people after they leave me a message.  This is way too long.

I’ve begun talks with a guy I went to college with about Tax Lien investing.  He’s new to the subject, but hey…so am I.  After seeing that some were more novice than me at the auction, I realized it’s time to jump in.  We’re going to get a plan together for next year and possibly form a LLP, strictly for tax lien investing.  I’ve got so many ideas that will give us an advantage it’s almost unfair.  We’re planning to hit many of the Illinois tax lien sales of small counties.  It’s going down!

The past year, I’ve been working on establishing business credit. I followed the steps offered atwhatever reason only one of my seven vendors are reporting to Dun & Bradstreet and none are reporting to Experian.  I’m not sure if this is due to a flaw within their guidelines or if there was something I didn’t setup right or what.  But, I need the vendor lines to report so that I can establish a DNB score.   Once I have a DNB score, I can then start acquiring business credit cards and loans sans personal guarantee.  Abstaining from personal guarantees with business credit avoids the tie to your personal FICO score, it also protects your corporate veil more so than using a PG.  I’ve been in correspondence with the company that offers the biz credit info and they’ve been dodging me lately.  I hate wasting my time with customer service issues.  Waste of life.

Well, I plan on getting some more advertising in place this weekend so that my phone can blow up next week and my secretary will have something to do.  This reminds me, I need to give her a list of numbers to cold-call.  These would be FSBO’s in the newspaper classifieds.  I’ve got some plastic doorhanger sleeves.  I need to get some brochures made and pay some kids to canvas Urbana.  I’ve been putting this off for quite sometime.  I need to just get it done.  As a matter of fact I’m going to call my graphic designer now and put an ad out on CraigsList.  And I wish somebody would flag my ad! The flagging on CL is getting rediculous by the way.

Welp. I’ve got alot to do, so Peace Out!

Business, Marketing, Real Estate Credit card, Credit score, Dun & Bradstreet, Experian