You will very quickly learn
The best kept secret of how to use other people’s assets to fill your pockets with cash! Completely legal and totally free!
Welcome! Thank you for taking just a few minutes out of your busy day to visit me here on the web.
You are here because you want to make money. You do not want to sell eBooks or T-shirts and make pennies! You want to earn BIG money. You want a recurring income and you probably want to build some personal net worth. I am going to show you how to leverage other peoples real estate in a way that will earn you wads of cash without requiring you to invest any of your own money! It’s totally legal and completely above board. In fact, to start with you will use my properties to stuff your wallets with cash! Think I am joking? Read on!
First a little bit about me! My name is Lionel and I am an engineer (specializing in logistics and manufacturing) by profession. I have an import / export business and two property rental businesses. I am also a real estate investor in a number of commercial properties located in downtown Toronto and two 100 acre development projects one of which is in the town of Keswick Ontario and the other is in a town called Acton, Ontario. I also own 2 properties in the Philippines.
I work 3 direct sales programs and I am a web developer, project engineer and veteran internet marketing pro! If you really want to get to know me better; when you have some free time; feel free to visit my personal blog site http://www.lionelwayne.com
OK. You have heard all the hype. The real question is this. Do people in general really make huge amounts of money in real estate. I am sure you have seen the commercials saying “Any one can make money in real estate” or “Buy properties with zero down”. My favorite one is the reverse mortgage thing where they say “Turn the unused equity in your home into tax free cash and you don’t even have to pay it back”. Yes right! What they don’t tell you is that ALL borrowed money is tax free. What they also neglect to mention is that when it comes time to sell your home you will not see a penny from the sale.
Do people really make money from real estate? Darn right they do if they know what they are doing! Look at:
- Pat Brow; who owns 310,000 acres of land and controls over 100 companies in real estate, energy and transportation.
- Gerald Lyda; who turned his construction business in the 70’s into a ranching empire of 900,000 acres of land.
- Samuel Burnett; who was a cattle rancher in Texas that amassed more than 1/3 of a million acres of land by the early 1900’s.
- Robert Earl; who began in the oil industry and has holdings in Wyoming, Montana, Utah and Idaho that include ranches, ski resorts, six hotels, and three oil refineries as well as other resorts across the country.
- Let’s not forget Richard LeFrak, Donald Trump, and Howard Hughes!
The five most common ways of earning money in real estate are:
- Method #1 is buying and selling it, or acting as an intermediary between the buyers and the sellers (Owners, Brokers, Real estate agents, etc.) and earning a finder’s fees and / or minority equity participation for your efforts.
- Method #2 is managing the rental of real estate (Property Manager) on behalf of yourself as owner or on behalf of other owners.
- Method #3 is working on the real estate as a contractor (Electrician, plumber, general contractor, or handyman, etc.) and offering services to property owners.
- Method #4, is sort of a combination of all the last three were you become a real estate developer and buy empty land, construct housing developments, or commercial buildings and then either sell or rent all the units.
- Method #5, is actually is a bit different. In this case you are not working directly on any actual property. All you are doing is providing money (Loan Broker, Mortgage Broker, or Equity Investor) to those people or companies that wish to buy or develop properties.
Now here is where the problems arise:
As an Owner/Broker it is an Expensive game to play. How do I know? I DO IT! It requires huge amounts of up front capital and also requires large debt loads in the form of mortgages. We should also not forget the operating capital necessary to cover the costs associated with running large real estate developments. Of course the upside is that huge revenues will result when the properties are managed properly and kept fully occupied. Huge capital gains are also realized when properties are traded (bought at low prices and sold for much higher prices). If you wanted to make money using this method you would needs lots of up front capital ($$$), an excellent credit rating and access to a lot of borrowed money, or some very rich friends that will let you act as an intermediary and find them good deals to purchase.
As an Operator or property manager you are keeping the properties in your portfolio (either your own properties or those owned by others) rented. How do I know? I DO IT! Every day that one of my properties remains vacant is a day of lost income. Since it is not possible to go back in time and rent this property it means that this lost revenue will never be recovered. Unfortunately every day the properties will continue to consume money in the form of maintenance expenses, taxes, insurance, etc. Tenanted or not these expenses still come in and need to be paid.
If you wanted to get started in this segment of the business you would need a fair bit of training and experience before any property management company would hire you. There are property management courses you could take that cost 1000’s of dollars and there is still no guarantee of a job because you lack experience. Some companies insist on professional accreditation which usually means there are additional charges for registration as well. If you want to forgo working for a property management company and go out on your own you need to have access to property owners willing to let you work their properties (like me) and knowledge of how to advertise and manage the properties so that you can keep them rented. Breaking into the field can be costly and quite difficult.
As a Contractor it requires a lot of specialized knowledge and often trade Certifications are needed as well. How do I know? I DO IT. I often do many of the repairs and work on my own properties to save money. The work that needs to be done that I am not qualified to do myself I contract out to the professionals. If you wanted to break into this part of the real estate business you would need to get training.
The costs of these programs range in price from about $5000 to $20,000 depending on where you live and how many certificates you need to get before your license is granted. Have the training you need the tools to do the work. If you are a carpenter or cabinet maker you need wood working tools. If you are a landscaper you need landscaping equipment. This stuff can be very expensive. You may also be required to join a trade union and pay union dues and then the real work starts. You need to find clients, or people with property that need to have work done. Breaking into this field is very hard to do requiring expensive training, on the job work experience, sales training and some marketing know how!
As a Developer you are really doing a combination of the above three. How do I know? I DO IT. The two 100 Acre development projects that I have invested in have been ongoing for the last 15 years and only now are we close to actually starting to get a return on our hard work. You need to buy properties to develop so you need capital ($$$) for that. Then you need to get all the legal work and permits so you can start the project. That alone can take years!!!!
Then you have to hire architects and designers and then contractors to do the design and construction. If you are lucky and you are qualified then you can save money and do some of the work yourself. Then you have to manage and or sell these properties to get any revenue back and hopefully get a high return on your investment (ROI). You need to be very patient as it can often take a great deal of time to complete the projects before they are even able to be sold or rented. To get into the real estate market in this manner you need huge wads of capital to invest and if you had it you would not need to be here in the first place!
Finally we have the last option of being a Financier. This can be an extremely lucrative way of making money in the real estate field. It is far less work and often much less stress. How do I know this? I DID IT. As an example, if you were to be a real estate agent here in Ontario Canada you would by law be able to earn a maximum 6% commission on anything that you sell. If you sold a house for $500,000 you would earn a maximum of $30,000 in commission. Sounds good yes?
Well if you were a mortgage broker in Toronto Ontario and arranging the financing on this same property you might be charging as much as 20% or more to arrange the financing on this deal. What sounds better to you? Making $30k or making $100K? I was a licensed mortgage broker here in Ontario for several years way back before I went into engineering. I worked for a mortgage company then I went out on my own. Life was really good until the market took a dive and I lost HUGE amounts of money. Many properties I financed went into default because of the economy. I learned a very valuable and expensive lesson. Want to go that route? Well you either need a lot of capital ($$$) yourself or have access to a lot of friends with money that will trust you to invest it for them in mortgages. If you are investing your own money you do not need a license but if you are investing other people’s money you very likely will be required to have one. It is not at all easy to break into this field.
So now you are probably going to ask me about one more thing… Why do you need all this capital? How about doing those “No Money Down” deals? Ok so let’s talk about that. It is possible to buy property with zero upfront investment. What they somehow forget to mention is that it results in larger debt loads at more expensive interest rates that are much harder to support. This can still be a good option if the property has a great return on investment (ROI).
The problem here is that finding properties that will be suitable for zero down deals is a very time consuming task. These deals are often very hard to find. You need to have the right type of property in the right location and available under the right circumstances for a zero down deal. It sounds easy but it is not. I should also point out that the more you borrow the higher the risk. To manage this risk you need to work the property correctly or you will lose everything in a flaming hurry. You also need to be able to identify when a good property comes along and determine if in fact it is a good candidate for a zero down deal.
OK ENOUGH OF THE EDUCATION.
You want to earn money. You do not want to earn a commission on a $15 item. Even if the commission rate was 100% you would only earn $15. You want to earn big money. How do you earn big money? You want to earn commissions on big ticket (Expensive) sales. What is bigger ticket then real estate? The average house price in Toronto, Canada right now is $500,000. If you live in Vancouver Canada it is more. If you live in New York City, USA it is way more. If you live in Japan, it is way way.. way.. way.. (I am sure you have the idea) more! It does not matter where you live real estate is the best option.
My promise to you was to show you how to use other peoples properties to fill your pockets with cash. Now I am going to tell you how I will do this. Before I go into the how I will do it, I better explain to you why I will do it!
I am a property owner! I also manage many (not all) of my own properties. I have a number of properties that I rent out. Kawartha Cottage Rentals showcases the properties I have in the North Kawartha’s which is about a 2 hour drive from where I live in Toronto Canada. Simcoe County Cottage Rentals features the property I have in North Western Ontario. My common expenses alone are $1000 per month. Never mind the mortgage, utilities, labour, maintenance costs, taxes, and insurance that I must pay to support my properties. I also have interests in some properties in down town Toronto. One is a commercial office building the other is a large parking lot.
In order to keep these properties making money they need to be managed and worked. The vacation rental units need to be kept tenanted. The office building also needs to be kept fully rented. Occasionally it is necessary when markets are tough to be very creative when it comes to finding tenants.
There was a time just after the office building was fully renovated (converted from a clothing factory to a 6 story 60,000 sq ft office building) when it was fully vacant. The bills kept coming in yet there was not a dime being earned in rent from the property. In fact this lasted for several years. You can just imagine how much that cost. Since it was not rented out as yet I got creative and used it as a venue for events. I spent a considerable amount of money on advertising (about $15,000 for the year), hired security staff, and operated the place in this manner for about a year. I was hugely successful. In fact I was so successful that on Christmas (2009) I wound up with 5 separate parties in the building and on that one night alone it was a host to over 10,000 people. I think I was lucky the place was not burned to the ground. On New Year’s Day my cleanup crew came and we had to fill an entire 20’ garbage container to get rid of all the refuse. Now you want to know about stress! Most of the other investors (partners) in the property do not know about this! Darn good thing too!
There are three things I want you to take away from this story. One, don’t host parties for 10,000 people at one time! Two, creative advertising methods can and do work. Three, advertising and marketing is expensive.
Can you tell me what the most effective type of advertising is? Television spots, radio ads, Newspaper classifieds, Internet marketing? All of these methods of advertising are effective and many of them are often very expensive but are they the most effective? Actually they are not!
The most effective form of advertising is by referral. We do it naturally. We do it as children when we want our parents to buy us something. We do it as adults when we tell (brag) to our friends what a good deal we just got when we bought that new sofa on clearance, or found this great mechanic to fix our car for not too much money. We do it ALL the time. The personal recommendation that is given as part of the referral is 1000% more effective at closing the sale then any TV commercial or any other method of advertising might ever be.
As a property manager I have to spend money on advertising my properties. I would rather give that money to you as a referral fee then pay some TV station huge amounts of money to run a 30 second commercial and hope for the best. You making a referral will be far more effective than any commercial I could ever possibly produce. In fact a significant percentage of my rentals already come from referrals.
I have designed this referral program to encourage and reward those people that take the time and trouble to tell people about my properties. Now here is the really good news. As a real estate agent the commissions are legislated but as a property owner I can pay how I want, as much as I want in whatever manner that I want and so you get the benefit.
NOW I WILL EXPLAIN HOW THIS WORKS
It all starts off with a referral fee. Let’s suppose you post a link to your facebook page and someone checks out the properties and books a 1 week rental. Well as the direct referrer you would make a 10% referral fee or $100 on an average one week rental. In fact every time someone booked a week from your link you would earn this same $100 fee for each and every week that is booked on any of the units being rented out. Perhaps it took you 5 min to do the Facebook post. If that was the case then $100 for that 5 minutes worth of work translates to $2000 per hour if you could get a booking like this every 5 minutes.
You would make the same rates if the properties are booked by the day or by the month. If you happen to get a long term tenant then every month that they stay in the property you receive your referral fee.
Let’s suppose now that you also told one of your friends (John) about this program and he decided to participate as well. John signs up for the program and now he manages to refer someone that books a rental. In this case John gets the $65 referral fee but you also make money on this rental.
You see in this case you acted as the marketing agent that sponsored John into our referral program. Since this is the case you would be entitled to a marketing fee that is $20 on that same one week rental. Now let’s suppose that John introduced Dave into the Referral program. If Dave manages to rent out a week then he gets the $100 referral fee and John gets a $20 marketing fee for bringing Dave in and you get a $20 marketing fee from bringing John in. If Dave also sponsors someone into the referral program then it would work the same way. The marketing fee is paid to a depth of 5 positions. Graphically it might look something like this:
In the above diagram we are basing the figures on a one week rental at a rate of $1000. The person that makes the direct referral gets the $100 referral fee. The people that sponsored the marketing rep that made the actual referal receive a marketing fee of $20 up to a level of 5 deep! Really its a pretty simple plan.
Most programs of this nature actually charge you some sort of setup or registration fee. I personally do not agree with that. To join this program is totally free. I am here to make you money not spend your money. I sort of think about it like this.
You submit your resume to a bunch of companies. You go for a few interviews and finally one of them gives you a job offer. You go for your first meeting to accept the offer and take the job and that’s when they tell you that your salary will be $50,000 per year with full benefits including drugs, dental and life insurance and 2 weeks of paid vacation per year. You tell the nice interviewer you will take the job it sounds great and he says “Fantastic, just sign the contract here, give me a payment of $10,000 and I will take you to your cubical”! Are you still going to take the job now? No of course not! Well I am not going to charge you to work and market for me either!
There is no cost to join this program. No credit card is required! It will provide you with an income generated from marketing my properties and getting bookings it is as simple as that. If you get a booking you get a referral fee. If anyone in your team gets a booking you get a marketing fee.
This is a very unique program and it offers a fantastic opportunity for you to earn a great income. It gets even better though.
Most companies that offer programs like this sign you up and then leave you alone and hope you sell something. NOT ME. It is my job to ensure that you are successful and that you manage to refer bookings and earn referral fees. If you are not successful my properties remain empty and that would be VERY bad!
WHEN YOU PARTICIPATE IN THIS PROGRAM YOU ALSO GET:
Personal one on one coaching with me! I will give you step by step instructions that will show you exactly what to do so that you get results quickly. This training will help you market my vacation properties but may also be adapted to marketing any other program you may later decide to try or develop on your own. It will teach you how to widen your reach and get more referrals and increase the number of people you sponsor into the program to build your team.
You will learn prospecting skills and how to market on the web. You will learn how to promote real estate, find other owners, and learn workable skills that generate leads using the internet. The internet is a huge pond of prospects without borders! My Kawartha properties as an example are located in Toronto Ontario but I have hosted guests from all over the world including;
- A school master and his family from Germany.
- A fellow and his mother from Vancouver.
- A family from London Ontario.
- An American Coast guard captain and his family from Florida.
- And approximately 400 other guests from across Canada and the United States.
Training like this can cost you thousands of dollars but you get it here free! Personal coaching can cost you $20,000 to $30,000 and once again you get it here free!
WAIT THOUGH IT GETS EVEN BETTER STILL
The Vacation Rental Industry is a multi-billion dollar industry and I am going to show you how to get your share of it without the need for having your own property to start.
If you go through my program and I see you are working hard you will be eligible to receive a series of Milestone Rewards that include:
- Sponsor your first 100 active marketing reps get a $100 bonus even if there has not been a rental.
- Directly sponsor your first 200 active marketing reps and get a $500 cash bonus even if there has not been a rental..
- Directly refer 21 rental days in any calendar year and get a $250 cash bonus
- Directly or indirectly refer 60 rental days in any calendar year and get a $750 cash bonus
- Be the top producing marketing rep in any calendar year (based on # of rental days, or # of sponsored marketing reps) and receive a one week all expenses paid rental at any one of our available properties.
WAIT THERE IS EVEN MORE TO MAKE IT BETTER YET
I am looking for some very eager self-motivated individuals that want to earn a lot of money in a fairly short period of time and that are willing to work hard to do so! If you are performing well I will widen the program in four stages to expand the number of properties you can promote and substantially increase your earnings. The five stages are:
Stage #1: I will add more of my residential properties into this program so you have a wider selection of properties to make referrals on.
Stage #2: I will further widen the portfolio of properties that you may make referrals on to include properties that I manage for other owners.
Stage #3: I will increase the marketing fee rate by 1%, and give you access to a program that will pay marketing fees to an unlimited depth (not just 5 levels) that will vastly increase your earnings potential.
Stage #4: I will increase your referral and marketing earnings potential even further by including commercial properties into this referral and marketing program. Commercial properties rent for a lot more money so the commissions earned are much larger.
Stage #5: I will make one final addition to the program for you and this will earn you even more money. The program up until this point pays referral and marketing fees for all rental transactions. In stage five I will now pay referral fees on Sale transactions (at the rate of 5%) and Marketing Fees (at the rate of 1%). This now starts to get into some really BIG money transactions.
STARTING IS EASY AND IT’S TOTALLY FREE
Since there is only one of me to do all this training and since there is only so much time in a day I am limited to the number of people that I can initially accept into this program. Act fast before all the spots are gone.
o Bonus #1 Twelve step marketing eBook that is designed to give you some quick start instruction for marketing on the web.
o Bonus #2, success in 10 steps eBook that is designed to help you read people and build relationships to help you better refer and close actual sales.
o Bonus #3, Vacation Renters Handbook that will give you some background in the vacation rental industry.
o Bonus #4, Credit Voucher good for $300 off any KCR rental. This is a transferable and gift able voucher that will provide a discount on any KCR property rental.
Take advantage of this limited time offer. Learn the art of making money from other people’s properties and fill your pockets with cash.