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17 min
Welcome to the REISkills.com Real Estate Investment Training Program!
This comprehensive guide is designed to equip you with the knowledge, strategies, and practical steps needed to succeed in real estate investing, drawing directly from the proven methods and insights championed by Brian Gibbons and REISkills.Academy. Our core philosophy emphasizes a mentorship-driven approach, focusing on non-traditional acquisition methods, strategic funding, and long-term wealth building through cash flow.
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Table of Contents
Introduction: Welcome to REISkills.com Chapter 1: The REISkills.com Approach to Real Estate Investing Chapter 2: Building Your Foundation: Before You Market Chapter 3: Finding and Negotiating with Motivated Sellers Chapter 4: Funding Your Deals: Private Lenders and Joint Ventures Chapter 5: Disposition Strategies: Aiming for Long-Term Cash Flow Chapter 6: The Invaluable Role of Coaching and Mentorship Chapter 7: Common Mistakes and How to Avoid Them Chapter 8: The Importance of Consistent Effort
Glossary of Key Terms by Category Frequently Asked Questions (FAQs) Your Real Estate Investor To-Do List Knowledge Check Quiz Conclusion
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Introduction: Welcome to REISkills.com
Welcome to the REISkills.com Real Estate Investment Training Program! Our goal is to provide you with practical strategies for real estate investing, emphasizing non-traditional buying methods like purchase options, securing private funding, and focusing on long-term cash flow through creative financing. We believe in a mentorship-driven approach to equip new and aspiring investors with the tools they need for success.
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Chapter 1: The REISkills.com Approach to Real Estate Investing
Our training synthesizes insights to provide you with practical strategies. The core focus is on equipping you with non-traditional acquisition methods such as purchase options, understanding the importance of securing private funding, and prioritizing long-term cash flow through creative financing solutions. A central theme throughout our program is the critical role of mentorship, along with the importance of team building, understanding legal and financial aspects, and actively avoiding common pitfalls for beginners.
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Chapter 2: Building Your Foundation: Before You Market
One of the biggest mistakes new investors make is jumping into marketing efforts prematurely without adequate preparation. At REISkills.com, we guide you to build a strong foundation first:
- Determine Financial Goals: You should work backward from your desired income. A practical approach is to review your previous year’s gross income from your primary job or source and then set a target to match or exceed that amount through your real estate investments.
- Establish Business Structure: Start an LLC right away for liability protection. This separates your personal assets from business debts and lawsuits.
- Financial Diligence: Begin diligent expense tracking early on. Understanding basic business deductions and tax implications is crucial as owning a business allows for various deductible expenses.
- Assemble Your Team: Form a reliable team of professionals, including title, legal (attorney), and tax advisors, before you engage with sellers.
- Acquire Essential Knowledge: Learn effective communication strategies with sellers, understand necessary forms and legal documents, and grasp basic negotiation techniques.
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Chapter 3: Finding and Negotiating with Motivated Sellers
Finding and marketing to motivated sellers is consistently identified as the biggest initial challenge for new real estate investors. Our focus is on identifying sellers willing to sell at a price that allows for profit, moving beyond just “pretty houses” to focus on deal potential.
- Understanding Motivated Sellers: These are homeowners facing circumstances like financial distress, divorce, job relocation, or inheritance, which necessitate a quick sale. They are often open to “terms deals” or creative financing options beyond a traditional cash offer.
- Negotiating “Cash or Terms”: We emphasize the importance of negotiating “cash or terms” with sellers. This strategy focuses on creative financing solutions that can appeal to motivated sellers even if an immediate full cash offer isn’t made. These solutions can be particularly appealing to sellers who prioritize convenience or specific payment structures over an immediate lump sum.
- Importance of Language: We stress the importance of the language used during these interactions.
- Purchase Option Investing: This is a core strategy promoted by REISkills.Academy. It involves securing the right, but not the obligation, to purchase a property at a predetermined price within a specific timeframe. This method often focuses on “pretty houses” that don’t necessarily require extensive repairs, offering flexibility without requiring immediate full acquisition.
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Chapter 4: Funding Your Deals: Private Lenders and Joint Ventures
Having access to private lender money is critically important because it enables investors to seize opportunities quickly. You should not wait until you need funds, but instead “line it up” proactively.
- Situations Requiring Private Funds: Private funds might be needed for unexpected repairs (e.g., $5,000 for property cleanup), down payments, or to secure a deal before another investor does.
- How REISkills.Academy Helps: We teach you how to find private lenders and how to negotiate “win-win contracts” with them. This includes exploring the utilization of self-directed IRAs as a source for private funding.
- Joint Ventures (JVs): Joint ventures are closely linked to private funding and are primarily utilized for larger projects. In a joint venture, a “Silent Partner” will often fund the deal, covering all cash and renovation costs. The active investor handles the “legwork”, such as finding the property, managing renovations, and overseeing the selling process. Profits are split after the capital is returned to the silent partner.
- When to Seek Joint Venture Partners: REISkills.Academy strongly advises against pursuing joint venture deals without a proven track record. You should only consider approaching “Silent Partners” after completing around 5 to 10 successful real estate deals. This demonstrates the necessary experience and reliability to potential capital providers.
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Chapter 5: Disposition Strategies: Aiming for Long-Term Cash Flow
The preferred disposition strategy at REISkills.Academy is “long-term cash flow”, rather than quick reselling.
- Tax Optimization: Focusing on long-term cash flow through these strategies can also provide significant tax benefits. We advise against quick reselling due to higher capital gains taxes. Instead, holding properties for “a year and a day” is recommended. This qualifies any profit from the sale as long-term capital gains, which are taxed at a lower rate than short-term gains.
- Key Strategies for Long-Term Cash Flow:
◦ Seller Financing: This is a key method where the seller provides a loan to the buyer, often with more flexible terms than a traditional mortgage, leading to regular payments back to you over time.
◦ Lease with Option Agreements: Also known as “lease options,” these agreements are frequently utilized. A lease with option grants the tenant the right, but not the obligation, to purchase the property at a predetermined price within a specific timeframe. This allows you to receive ongoing lease payments while the tenant potentially works towards purchasing the property.
- Advantages: These strategies minimize capital gains tax, provide a consistent income stream over an extended period, and offer a flexible sale structure that can make deals more accessible to a wider range of buyers.
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Chapter 6: The Invaluable Role of Coaching and Mentorship
Mentorship plays a crucial and invaluable role in real estate investing, particularly for new investors, and is a core offering of REISkills.Academy.
- Guidance and Support: Coaching and mentoring provide invaluable guidance and support, helping you learn the ropes and navigate the complexities of real estate.
- Building Confidence and Experience: Our “1 on 1 professional coaching” is designed to “handhold you through a few deals” to build your understanding and confidence. This is considered an “apprentice period” with an experienced mentor, crucial for your success.
- Avoiding Costly Mistakes: An experienced mentor helps you avoid costly mistakes, such as premature marketing, not knowing what to say to sellers, or lacking proper forms and a reliable professional team.
- Gaining Credibility: A significant challenge for new investors is gaining credibility with sellers. Our mentorship provides a solution: you can leverage your mentor’s experience. When asked about your experience, you can honestly state, “I have a senior partner that has had over 35 years experience, and I’m fairly new but I’m learning every day”. This demonstrates access to expert guidance and enhances your perceived credibility during negotiations.
- Foundational Knowledge and Team Building: Mentors guide you in acquiring necessary foundational knowledge and in assembling a reliable team of legal, tax, and title professionals.
- Practical Application and Learning by Doing: While we provide comprehensive “lessons on how to do deals,” including marketing, negotiation, and contracts, it’s paramount that “you have to do the work!”. Our hands-on guidance ensures you “understand that particular deal” so you can apply that knowledge independently.
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Chapter 7: Common Mistakes and How to Avoid Them
New real estate investors often make common mistakes that can be costly. By understanding these pitfalls, you can avoid them and build a more successful investing career.
- Mistake 1: Jumping into marketing prematurely. Many beginners start marketing efforts without having the necessary foundational knowledge and support.
◦ Avoidance: Focus on building your foundation first. This includes determining financial goals, establishing your business structure, assembling your professional team, and acquiring essential knowledge about communication, negotiation, and legal forms before you start marketing.
- Mistake 2: Not knowing how to effectively communicate with sellers or which forms to use. This leads to missed opportunities and unprofessional interactions.
◦ Avoidance: Engage in comprehensive education and hands-on mentorship. Learn effective negotiation tactics and understand necessary documentation thoroughly.
- Mistake 3: Not having a reliable team of professionals. Without legal, tax, and title experts, you risk significant errors and liabilities.
◦ Avoidance: Assemble your team early in your investing journey. Your mentor can guide you in connecting with essential team members.
- Mistake 4: Lacking understanding of business fundamentals. Many new investors have never run a business before and may not understand liability protection (like LLCs), proper expense tracking, or small business tax implications.
◦ Avoidance: Start an LLC right away to protect your personal assets and track your expenses diligently. Gain knowledge about business deductions and tax benefits.
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Chapter 8: The Importance of Consistent Effort
While REISkills.Academy provides comprehensive “lessons on how to do deals” covering marketing, negotiation, contracts, and business promotion, a fundamental principle is clearly stated: “But you have to do the work!”.
- Active Application: Your success hinges on the active application of the learned material and strategies.
- Your Responsibility: The knowledge and tools are provided, but it is your consistent effort that will translate them into successful real estate deals.
- Continuous Learning: Real estate investing is an ongoing journey of learning and application. Embrace continuous learning and consistently apply the strategies to achieve your financial goals.
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Glossary of Key Terms by Category
Here’s a breakdown of essential terms you’ll encounter in real estate investing, categorized for clarity:
| Category | Term | Definition | Source |
| Investment Strategies | Disposition | The process of selling or otherwise disposing of a real estate asset. | |
| Lease with Option | A lease agreement that gives the tenant the right to purchase the property at a predetermined price within a certain period. | ||
| Purchase Option Investing | A strategy where an investor secures the right (but not the obligation) to purchase a property at a predetermined price within a specific timeframe. | ||
| Seller Financing | A financing arrangement where the seller of a property provides a loan to the buyer, often with more flexible terms than a traditional mortgage. | ||
| Wholesaling | A short-term investment strategy where an investor gets a property under contract and then assigns the contract to another buyer, profiting from the difference in price. | ||
| People/Roles | Joint Venture Partner | A partnership between two or more parties who pool their resources and expertise to undertake a real estate project, sharing profits and losses. | |
| Motivated Seller | A homeowner who needs to sell their property quickly due to circumstances like financial distress, divorce, job relocation, or inheritance. | ||
| New/Aspiring Real Estate Investor | An individual new to real estate investing, often without prior business experience, seeking guidance and practical strategies to enter the market. | ||
| Private Lender | An individual or company that lends money for real estate investments, often at higher interest rates than banks but with more flexible terms. | ||
| REI Mentor (from REISkills.Academy) | An experienced real estate investor with over 35 years of experience who provides 1 on 1 professional coaching and guidance to new investors. | ||
| Silent Partner | A joint venture partner who provides capital for a project but does not actively participate in its management. | ||
| Financial/Legal Concepts | Capital Gains | The profit realized from the sale of a capital asset, such as real estate. Long-term capital gains (from assets held over a year) are taxed at a lower rate than short-term gains. | |
| LLC (Limited Liability Company) | A business structure that provides personal liability protection for the owners, separating their personal assets from business debts and lawsuits. | ||
| Support/Guidance | 1 on 1 Coaching/Mentoring | Personalized guidance and support from an experienced real estate investor, helping new investors learn the ropes and navigate the industry. |
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Frequently Asked Questions (FAQs)
Here are some of the most common questions new real estate investors have, along with answers based on REISkills.Academy’s guidance:
- What are the biggest challenges for new real estate investors? The biggest challenge is marketing to find motivated sellers who are willing to sell at a price that allows for profit. New investors also struggle with knowing how to communicate and negotiate effectively, what legal forms to use, and how to assemble a reliable team of professionals.
- Why is having private lender money important? Having access to private lender money is crucial because it provides quick access to capital, enabling investors to seize opportunities swiftly. It can be essential for unexpected repairs, covering down payments, or securing a deal before another investor does.
- What are joint venture partners and when should I seek them out? Joint venture partners are individuals or entities that invest in a real estate deal alongside you, typically providing the capital while you handle the legwork. You should only approach potential joint venture partners after you have a proven track record of successful deals, ideally around 5-10 completed projects.
- What are the advantages of seller financing and lease options? Seller financing and lease options are preferred strategies because they can generate long-term cash flow and offer significant tax advantages by qualifying profits as lower-taxed long-term capital gains.
- How can I determine my financial goals as a real estate investor? A helpful way to set financial goals is to work backward from your income needs. Look at your previous year’s gross income and aim to match or exceed that amount through your real estate investments, also considering various deductible expenses.
- What common mistakes do new investors make? A frequent mistake is jumping into marketing efforts prematurely without adequate preparation, including not knowing how to communicate with sellers, which forms to use, or how to assemble a reliable professional team.
- What is the value of coaching and mentoring in real estate investing? Coaching and mentoring provide invaluable guidance and support, helping new investors build confidence, avoid costly mistakes, and learn the ropes through hands-on experience.
- How can I gain credibility with sellers and buyers when I’m just starting out? You can gain credibility by leveraging your mentor’s experience. You can honestly state that you are working with a senior partner who has extensive experience in the field, demonstrating access to expert guidance and support.
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Your Real Estate Investor To-Do List
This actionable checklist outlines key steps to take on your real estate investing journey, guided by REISkills.Academy principles:
| Action Item | Status | Notes |
| Foundation Building | ||
| Determine your financial goals (work backward from income). | Set a clear target for your real estate income. | |
| Establish an LLC for liability protection. | Do this early in your business setup. | |
| Begin diligent expense tracking. | Crucial for understanding business deductions and tax implications. | |
| Assemble your reliable team (title, legal, tax advisors). | Get these professionals in place before engaging with sellers. | |
| Learn effective communication and negotiation strategies with sellers. | Practice what to say beyond just cash offers. | |
| Understand necessary forms and legal documents. | Be familiar with all paperwork required for deals. | |
| Funding & Partnerships | ||
| Proactively “line up” private lender money. | Don’t wait until funds are needed; establish relationships now. | |
| Learn how to negotiate “win-win contracts” with private lenders. | Understand the terms and benefits for both parties. | |
| Mentorship & Learning by Doing | ||
| Engage in 1 on 1 professional coaching/mentorship. | Allow your mentor to “handhold you through a few deals.” | |
| Practice leveraging your mentor’s experience to build credibility. | Learn how to present yourself as supported by seasoned expertise. | |
| Focus on completing 5-10 initial deals. | Build a proven track record through hands-on experience. | |
| Disposition & Growth | ||
| Aim for long-term cash flow as your preferred disposition strategy. | Prioritize consistent income over quick resales. | |
| Consider holding properties for “a year and a day” for tax benefits. | Optimize for lower long-term capital gains tax rates. | |
| Learn and utilize seller financing and lease with option strategies. | Key methods for achieving long-term cash flow. | |
| (After 5-10 deals) Consider joint venture partnerships for larger projects. | Only pursue after establishing your track record. | |
| Ongoing Effort | ||
| Consistently “do the work!” | Active application of learned strategies is essential for success. |
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Knowledge Check Quiz
Test your understanding of the key concepts from this training!
- What is identified as the single biggest initial challenge for new real estate investors according to REISkills.Academy? a) Securing traditional bank loans b) Finding motivated sellers c) Managing renovations d) Calculating property values
- REISkills.Academy strongly advises against which common mistake for new investors? a) Investing in “pretty houses” b) Forming an LLC too early c) Jumping into marketing efforts before being fully prepared d) Relying on mentorship
- Why is it crucial to “line up” private lender money proactively? a) To avoid paying interest b) To secure deals quickly when opportunities arise c) To replace traditional bank loans entirely d) To fund all renovation costs
- How many successful deals does REISkills.Academy recommend completing before seeking joint venture partners? a) 1-2 deals b) 5-10 deals c) 20+ deals d) No specific number, just depends on confidence
- What is the preferred disposition strategy of REISkills.Academy for selling properties, primarily for tax advantages? a) Wholesaling for quick profit b) Selling properties outright for cash c) Long-term cash flow using strategies like seller financing d) Holding properties indefinitely without selling
- When a new investor lacks experience, how can they build credibility with sellers according to the training? a) By exaggerating their past experience b) By offering significantly below market value c) By leveraging the experience of their mentor or “senior partner” d) By only dealing with distressed properties
- Which two methods are frequently utilized by REISkills.Academy to achieve long-term cash flow from properties? a) Wholesaling and Flipping b) Traditional Mortgages and Bank Loans c) Seller Financing and Lease with Option Agreements d) Hard Money Loans and Quick Resales
Quiz Answer Key:
- b) Finding motivated sellers
- c) Jumping into marketing efforts before being fully prepared
- b) To secure deals quickly when opportunities arise
- b) 5-10 deals
- c) Long-term cash flow using strategies like seller financing
- c) By leveraging the experience of their mentor or “senior partner”
- c) Seller Financing and Lease with Option Agreements
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Conclusion
This training has provided a comprehensive overview of real estate investing through the lens of REISkills.Academy. We’ve covered the paramount challenge of finding motivated sellers and how to overcome it through strategic negotiation and creative financing methods like purchase options and terms deals. The crucial role of proactively securing private funding and the strategic use of joint ventures (once a track record is established) has been emphasized.
Our preferred disposition strategy, long-term cash flow through seller financing and lease options, offers significant tax advantages and a consistent income stream. Most importantly, we’ve highlighted the invaluable role of mentorship in guiding you, building your confidence, avoiding costly beginner mistakes, and helping you gain credibility.
Remember, while REISkills.Academy provides the tools, knowledge, and hands-on guidance, the ultimate success hinges on your consistent effort and dedication. “But you have to do the work!”. We are committed to equipping you with the practical strategies and support needed to thrive in your real estate investing journey.
1 on 1 Coaching/Mentoring: Personalized guidance and support from an experienced real estate investor, helping new investors learn the ropes and navigate the industry.
