Friday, September 6, 2013

JOHN COCHRAN AND WHOLESALING MASTERY

This program Wholesaling Mastery is amazing for analyzing and bidding on HUD homes. The whole system provides training on the process as well as the logic, algorithms and secret tips on why and how to place your bid with HUD with the best possibility of getting your bids accepted. The system also provides information on all the regular processes such as building buyers list, finding funding, evaluating the property to insure you are not paying too much, submitting the bid, submitting the counter offer if provided,  filling out the HUD paperwork once the bid is accepted and then selling the home and getting paid.

As you all know the economy is starting to pick up at least in some parts of the country, but despite this HUD (U.S. Department of Housing and Urban Development) still has thousands of homes that have been abandoned or reclaimed through foreclosure. HUD homes are different from REO’s. A REO is general a property owned by a lender (i.e. bank, financial institution). HUD homes have actually reverted to possession by the government agency HUD. HUD hires professional asset liquidation managers to dispose of the property.

Since HUD has gone to online, bidding for their homes through www.hudhomestore.com has basically become a mathematical process. You are bidding against a computer. Algorithms on the website determine what will be accepted first (i.e. owner occupied vs investor). You can be placed on a standby offer list with HUD if you select that option while bidding. John and his staff have worked out the “secrets” to the HUD process and provide an automated spread sheet that will calculate the exact amount that you should bid on the homes based on the HUD asking price and other factors of the home. The second “secret” is to select a two to three county area that you know well, and then to bid “on every home, every day, even in the hood.”

Once your bid has been accepted you and your “team” perform the due-diligence on the property. In most cases you are not going to be rehabbing the homes but reselling them wholesale at a price below the initial HUD price. As part of the bidding process you can see how many people are interested in the property and this is one factor you take into consider on whether to complete the offer if your bid is accepted.

Now you are thinking, but I might get out bid. This is true. There will be many homes that you will initially lose to a higher bidder. But surprisingly many of these same homes will come back on the HUD list and eventually HUD will sell the homes at a reduced price, even lower than what they have initially listed on their site. If you have been bidding every day, on every home, even in the hood, you will get homes that you can resell at a profitable rate. Let’s face it, if you aren’t going to make a profit you don’t want the home.

The longer a home stays on the hudhomestore.com list (including going off the list and then going back on the list), the sooner HUD will lower the price and accept a lower bid than posted on their site. HUD has no desire to hold home indefinitely; they do not rent homes out; they do not rehab them in most cases; they rarely put any money at all into the foreclosed homes except to initially inspect them and secure them by boarding up the windows if necessary. They don’t even maintain the yards and grounds so the longer the property sits vacant, the less value it retains. Therefore HUD WANTS to sell the home and get it off their non-performing assets roster.

John walks you through the process of evaluating the homes to insure that you are NOT overpaying and that you WILL be able to determine the price at which you can resell the home for a reasonable profit. Once your bid is accepted you complete your due diligence by pulling the comps and determining if you will go forward with the bid.

This system at $995 in conjunction with John Cochran’s BuyersOnFire2 at $997, or Cody Sperber’s programs or Marko Rubel’s systems is still many bucks lower than the initial cost of $25,000 for The Flipping Formula and at least as educational and informative, but some people like the glitz and hurrah of the Las Vegas trip. (I haven’t written a review of Marko’s program yet, but he is based in San Diego CA and has a very good system as well, and he is VERY familiar with the HOT Southern California market.) Note that John, Cody or Marko might change their prices at any time.

I am not being paid by any of these people; I just think their programs are fantastic.

See more homes at: www.SweetHomesInCalifornia.com



12 comments:

  1. I have used John's system on and off for a year, and had bid every day since Jan 1, 2014. In my area (Las Vegas), his system of percentage discounts does not work unless the property is a condo that hasn't sold for many months or a property so far out of town that no one wants. His percentages don't work in my area, and I have never been awarded a bid. I have been countered, but usually at 87% at the investor stage. I did buy the membership over a year ago ($997), and now he offers Buyers on Fire as part of this package. When I asked if I could add Buyers on fire under my current membership, they said no (same price of $997 as it was a year ago) I also have emailed multiple times to their support email with questions, and I have never received a response. I have also asked questions on webinars I have been on, and they never respond. There also have been some changes to HUD's procedures this year, and I never see them update that on the webinars or on their membership website. So I am left to think they are just a big sell, with little support...I wouldn't recommend it, unless you live in an area where you actually see HUD selling properties at a big discount

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    1. Thank you for your comments on John Cochran's Wholesaling Mastery. With regard to the percentages, you have to change them to what is appropriate your area. I agree that in very hot markets you won't see the big discounts that you might see in less competitive markets. I live in the San Diego CA area and home prices were escalating over 20% to 30% year-to-year rate, so the property management companies which HUD hires did not have to give away the homes as they would in less competitive markets. I never received a counter bid that was less than 87% for San Diego. I did get some counter offers in Michigan and Ohio that were closer to the 67%, but not knowing much about those areas I did not rebid. I just wanted to see if my bids would be accepted. Even one room shacks are back to $400,000 in San Diego. However, the speed at which prices were rising has tapered off. There is very little inventory, period. The foreclosure market has practically dried up. That is probably the reason that BoF has added the Wholesaling Mastery as one package. The program still works, but is not for every market. I have always had good response from the BoF staff, so I don't know why you have had such disappointing responses. I would keep your software (unless you have to pay the monthly charge) for when the market turns again, and it will thou probably not this year.

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    2. So what you suggest me not to join the program? You said the initiation fee is $997. There is going to be alive event where John wants to meet personally with buyers and give them open line of credit for $500,000. Is that credit line true? Are you happy with the system over all? thanks Rishi

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  2. Are you happy with the system overall?

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  3. Yes, if you are getting the combination of BUYERS ON FIRE and THE WHOLESALE MASTERY (HUD bidding) then you might want to consider his offer. If you are only getting the WHOLESALE MASTERY, then I would say no because HUD is now using outside asset managers who tend to price the homes fairly close to retail. Foreclosures are pretty much drying up. (There will always be some but you won't see the deluge of homes as you did since the GREAT RECESSION started.) Depending on the market that you are researching, WM might be useful.

    Of the programs and people that I have researched, these are the ones that I think give you good value for your money (at least at the prices that I saw):
    John Cochran - Buyers on Fire with Wholesale Mastery

    Cody Sperber -

    Lance Edwards -ApartmentWealthMachine.com

    Lee Arnold--has both a real estate education department (Private Money Exchange), and a funding department (COGO CAPITAL--first company in the US approved by SEC and feds to offer a franchised brokerage private money funding company--not a bank. Funding is based on the "deal" (ie the asset) not on personal credit score.They only fund non-owner occupied real estate transactions.) The mother company is called SECURED INVESTMENT CORPORATION. I am an affiliate with Private Money Exchange and you can see more information on their education and funding at www.mspinvestingllc.com .

    Ross Hamilton--CONNECTED INVESTORS. http://get.connectedinvestors.com/?invitation=mspinvesting They have a new updated program coming out in June and they have been making modifications in the current program so some parts of website work off and on right now. But John Kennedy (the IT person) provides a weekly discussion on the site and how to use it. He also works one on one in setting up your websites and answering other questions.

    I'm rattling on. You may want to view my other blogs. These are strictly my opinion and not legal or financial advise.

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  4. Thanks! for responding. Did you buy this deal for $997?What have you hear of fortune builders. They are asking $25k joining fee. They want to me join ASAP. You think it is much of a buy? Rishi

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    1. Yes, I did pay the $997, but without the monthly fee as I got into the program while it was still in the testing phase. Just to be clear, I do not work for BoF or John Cochran. I think he is a phenomenal person. His training under the LEARNING CENTER on his website is exceptional. His program is more than just a software package, but includes a complete capture system to funnel buyers and sellers to a capture site where you can capture their information and be able to follow up with them automatically with voice, text, and emails. It also includes websites, and dedicated telephone numbers for your advertising, Since I have moved to the realm of creating and brokering loans, I have not been actively working on the BoF site, so I am not familiar with all the changes that may have occurred. If you are still unsure whether his program will be of benefit then I suggest that you attend several of the free webinars that he puts on so you can see how the system all comes together to form a complete package. The $97 per month is a hefty amount unless you are going to devote your attention the one site.
      I am currently paying $97 for the REI BLACKBOOK which is a different program and company. The monthly fee on this site provides real-time updates from the counties and public records. Yes, you can pull the individual county records yourself.

      Anytime there are real-time downloads from the public records, there is usually a monthly fee to pay for those downloads. If, however, you are looking for property in parts of the country where the county records are still antiquated (not on the computer or internet) then these downloads might not serve your purposes. Each investor's situation is different and thus not all programs are going to benefit the same way for all people.
      I have not participated in the $25K Fortune Builders program and thus can not comment as to whether it would beneficial for all people.

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  5. Buyers of fire is simply a software that you can get it for cheap than what he is selling for $97/month. The whole sale for buyers is only HUD, not bank owned property, REO etc? Rishi

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  6. Are you making your financial goals through this program? You mentioned their support sucks? Do they have programs over seas? Rishi

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    1. I did not find that BoF support sucks. They answered my calls and emails right away. We worked together to resolved the special telephone number issue, although I think they were puzzled by the cause as I was. My main focus right now is studying for my loan broker's state license so I have not been actively using his programs. Hope that helps to answer your question. I can not advise you on whether you should spend the money as I do not know your work ethic and habits or desire to succeed.

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  7. I joined the apartment complex program. Are you working with Lance

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    1. I am assuming that you are referring to Lance Edward's Big Money With Small Apartments program? I am not working directly with his program. I did attend some of the online free training, but have decided to concentrate on loan brokering. It looks like Lance has a lot of good information and there is certainly no reason to go only for single family homes. Commercial and small apartment complexes give you more bang for your buck, but require more oversight to insure that management company is doing what they are suppose to do. But you have that problem with a single family home also such as I am experiencing with my property in Kansas City. (Read more in my other blog.)

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