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50 Strategies and Very Profitable Ways To Boost Your Bottom Line Profit
   Ray Como   

  As you know, I've been writing these articles for over two years. It's time to summarize. Enjoy this compendium of ideas I've shared with you in past articles. Read fast. Read furiously. Get good ideas, and use them to make more money...for you and your corporations.

  1. Own Your Mortgage Paper In Nevada. Contract to buy or originate (create) and service paper in your home state. Capitalize a new Nevada Corporation with your own cash, property or services then sell those mortgages to the new Nevada Corporation. Retain a servicing contract at home to accept payments and conduct collection efforts for a fee. Most Servicing contracts call for 1/8%. This is acceptable and workable because this is exactly what mortgage bankers and brokers do in every state in the union--except they do it with large national concerns like FNMA (Fannie Mae), GNMA ( Ginnie Mae) and FHLMC (Freddie Mac).

  2. Get Judgment Proof Now! The only way to get judgment-proof is contemporaneously. That means you do it as you do deals. Lewis Laughlin says "You can't buy life insurance after you die." Obviously, the first and best strategy is to KEEP A LOW PROFILE!

      Systematically drain your corporate checking account. Lien free and clear titles to cars, trucks, boats, planes and RV's. Lien Chattel, equipment, computers and other office machines. Keep personal property private. Encumber all Real Estate. Hold title to Real Estate in a very quiet Nevada Corporation. Then "master-lease" the property for control at home.

  3. Become a Banker Not a Landlord. Buy Real Estate Equity with seller-financed paper @ 0% interest (yes, we do it all the time--especially today.) Collateralize the paper with certificates of deposit. CD's offer excellent security and no risk in exchange for that 0% interest. This, in effect leaves the title to the Real Estate unencumbered. Now, sell the Real Estate for cash. Take the money. Buy more CD's and do it all over again. Collect the interest on those CD's while paying 0% to your mortgagee, and you'll be earning interest on money that isn't yours. Don't worry, that's is exactly what bankers do so they've paved the way for you.

  4. Write-Off Your Bicycle. Are you convinced that good health is important? Good, because so are the people who run most big corporations. In that spirit, they've paved the way for you. They invest in weight programs, diet programs, quit-smoking programs, health and country club memberships, massages and exercise equipment. Why shouldn't you? You can! Present the idea to your board of directors and FORMALLY RESOLVE to invest in good health for your employees (even if there's only one--you!) Adopt a resolution like this:
    • RESOLVED, that or another duly authorized officer or employee of this corporation may invest in products and services which are used by the employee(s) of this corporation for the purpose of maintaining good health.

      Now your corporation can legitimately invest in that $600 mountain bike you had your eye on, or those $100 running shoes, or that ski equipment, or golf clubs, or Nordic Track~...and write off every penny of it. Question: Who gets to enjoy all this stuff your corporation just paid for with before tax dollars? Go look into a mirror, look at the person smiling, and you'll find out.

  5. Buy All Your Advertising at a 15% Discount. One of the ways ad agencies make money is they earn a 15% "ad agency discount" for placing ads with various media. You can do the same thing. Form a Nevada Corporation based in Carson City, Nevada, "the Advertising Mecca of the Planet." Now place your ads through your newly formed Carson City Communications Corporation and take that 15% discount from here on in.

  6. Start Your Publishing Empire in Nevada. Here's what you do: Form Warbucks Publishing Corporation. Have it domiciled in Nevada. Capitalize WPC with your intangible assets (Copyrights, trademarks, customer lists, sales scripts, promotional techniques, advertising concepts, et cetera). Make a contractual, "arms-length" licensing agreement between your home state corporation and WPC. Then every time you want to reprint one of your company brochures, or letters or campaigns, Warbucks get a fee. And when you want to use the customer lists you used-to-own, Warbucks gets a list rental fee of say $100 a thousand because that's the fair market rate to rent high quality mail lists. The best part is, you will effortlessly transfer more income to TAX FREE NEVADA.

  7. Use Options to Judgment-Proof Real Estate. Every time you buy a property, sell a long, long term option to your kids at the price you paid. This "freezes" your estate thereby eliminating estate taxes. This is not a taxable event. It does not get reported. In fact, option money is never claimed as income or deducted as an expense until the option is exercised or allowed to expire. The IRS views an option as an incomplete transaction because it is impossible to ascertain gains or losses. Onward. Record a mortgage-to-secure-the-option. This serves to #1. Protect the equity, #2. Gives constructive notice to the public without revealing the terms and #3. Creates an insurable interest.

  8. Close More Sales. Quantify and distill the components of your "perfect sale." Experiment, then create a complete "methodology" for filling out the agreements you use to close sales. Examine everything. Plan every detail, then replicate it. Do it systematically, uniformly and consistently. Train like commandos. Soon your people will internalize it and it will become automatic. Remember: Many have attained great wealth and success with one sales talk delivered with excellence. --Og Mandino from The Greatest Salesman in the World.

  9. Use Direct Mail. Send regularly scheduled direct mail letters to your target market. Communicate with them at least once a month. A newsletter works best and is read the most. Offer "insider" deals. Ask for business. Ask for referrals. Give referrals. Trade clients. Set up joint venture transactions. Ask for testimonials and reference letters. A genuine, unsolicited testimonial letter from a happy customer/client is more powerful than all the superlatives a copyrighter could invent on her best day!

  10. You Are Irresistible. Seek out, study and learn the powerful, hypnotic selling techniques of Neuro Linguistic Programming (or NLP). Learn how to develop rapport instantly, non-verbally by mirroring, matching, pacing and leading your prospect, customer, client or even your competitor. Act the way they act. Sit the way they sit. Talk the way they talk. Use their words, mannerisms and expressions, and mark them out. Elicit their desired outcomes and the values that support those outcomes. Ask questions first. Listen, then sell based on what you hear. Calibrate their non-verbal reactions to your presentation, then "re-play" those same reactions back to them. Elicit then pace their moods and their beliefs. When you "re-play" these it will appear as though you are reading their mind. Do this. Learn this state-of-the-art persuasion technology. It will change everything.

      Notice that in each corporation strategy I create, I caution you. I use words like "arms-length" and "fair market value?" I always set-up these strategies in a way that is in keeping with what happens every day in the business world. You must strive to do that too...in all your strategic maneuvers. Don't be sloppy. Don't be careless. Keep good records. Create the paper trails that justify your actions. Make your deals have substance, real substance. Protect yourself. Watch you ASSets. Do it for you. Please.

  11. "Dissect" Real Estate transactions this way. Own options (the appreciation) in a clean, conservative, private corporation in Nevada. Own leases (the cash flow) in your home state. You have to pay tax in your home state because that's where the act of management is conducted. Hold title, "the fee," (the tax benefits) in your personal name until you've sheltered all the personal income your Real Estate ownership can shelter; then go to corporate ownership.

      Suffice it to say that those who become specialists in componentizing a real estate deal will control the future of this and many related businesses.

  12. Warbucks/Red, Inc., a Como Perspective. What if you are in construction? Then all your jobs should be bid by Warbucks Construction Corporation and subcontracted to Hometown Construction, Inc. HCI should #1. Be at risk. #2. Make tiny, tiny profits. And #3. Be hopelessly in debt to WCC.

  13. What if you are in advertising? Then all your advertising contracts should be sold and serviced at home by independent contractors and assigned to Warbucks & Warbucks, Inc. in Nevada for a small fee. W & W, Inc. ultimately gets the profit.

  14. If you are in publishing then all your copyrights should be owned by Warbucks Publishing Corporation. All fees, royalties and list rentals should be negotiated and serviced by independent contractors at home. However, the lion's share of these royalties and fees will be collected by Warbucks Publishing Corporation of Nevada.

  15. If you are a mortgage broker at home, that's fine. It's just that all the mortgages you personally originate or contract to buy will conveniently be assigned to Warbucks Mortgage Corporation. WMC will then collect interest or better, the early payoff in Nevada.

  16. If you like to buy and sell real estate then it would make sense to contract to buy real estate at home and immediately assign your contract to Warbucks Real Estate Corporation. WREC will process the transaction and ultimately earn the buy/sell profit in Nevada.

  17. If you like to own real estate for long term growth and estate building, you should take title in the name of Warbucks Holding Corporation of Nevada. Then you should lease the property and thus the thrill of management to Hometown Leasing, Inc. Hometown Leasing, Inc. will earn a small management fee, but the benefit of appreciation, tax shelter and equity build-up will go to Warbucks Holding Corporation.

  18. Remember with A.I.D.A. When conceptualizing any sales idea, presentation, script or copy begin by thinking of this acronym. The letters stand for ATTENTION (Get their attention), INTEREST (peak their interest), DESIRE (create a desire), ACT (Give them a reason to act now).

  19. Tell, Tell, Tell in every presentation. That is: Tell them what you are going to tell them. Then tell them. Then tell them what you told them.

  20. Start saving brochures, ads, letters, coupons and reply devices you like. They will be helpful when you go to design one for yourself. Besides, people have paid millions of dollars to conceive, write, test, produce and promote what you see in your mailbox, on your T.V. and radio and in your newspaper. You might as well use it. It's information that's Free. Really Free. [Copyrighters always capitalize the "F" when they write the word "Free."]

  21. Headlines. Your "Headline" or opening sentence or first few words = 75% of your successful presentation. Start noticing how others do it. Notice the first words and sentences in direct mail letters and brochures. Hear the loudness right at the beginning when you watch a movie at a theater. Look at the first words in any ad that strikes your eye and causes you to read further. Start a file and save the ones that do. If your "headline" is weak you will never get the sale or the response or the customer or whatever.

  22. Use the 13 Most Persuasive Words in the English Language. Free, Easy, Guaranteed, Money, New, How To, Discover, Proven, Results, Safety, Love, Save, You.

  23. Direct Mail. Most people open their mail while standing over the waste basket. Do things to your direct mail so that the recipient will at least open it. Make it "look" personal. Use "live" stamps and first class mail rather than a printed-on bulk mail indicia or "metered" postage. Don't put gobs of "teaser copy" on the outside of the envelope because it will literally smell of junk mail and invariably get thrown out unopened. Hand address it or type the address directly on the envelope for a more personal look. In fact, ask yourself this question: "How would my letter look if getting it opened meant my kids life or death?"

  24. Always end your letters with a P.S.
    • A closing morsel for thought: Some of the best advertising ever created broke all of the rules.


  25. Buy Your Own Paper. If you negotiate the right to prepay your own payments (at a discount), some very exciting things will happen. Remember this: When you prepay just six payments at a 15% discount, you will buy an investment in yourself that yields 58.21%. Example: You are are paying $100 a month. You offer to pay $510 today for the right to not make the next six payments of $100. Input the following into your financial calculator: N = 6; PMT = $100; PV = $510. Now solve for I% and you'll see what I mean. I = $58.21% and the same thing happens everytime you apply this formula, no matter what the payments are.

  26. Don't Buy Mortgages, Get Them FREE. I'm here to tell you that I don't like to buy paper. I don't like to buy paper because I think it's easier to buy houses. You must be thinking "what does buying houses have to do with buying paper?" The answer is simple: Houses are vehicles for easily creating paper and I know where houses grow--don't you? Often times finding quality paper at high enough yields is difficult; and the competition is fierce.

      Consider this scenario: A house is available with an FHA loan in place. It has a balance of $45,000. The house appraised for $50,000. The sellers of the house were motivated and agreed to accept $1,000 cash today and you take over the mortgage balance. That's it!

      You market the house and you agree to sell it for $49,000 (still under market) this way: $1,000 down + the mortgage balance of $45,000 + a $3,000 note and mortgage. Since you invested $1,000 initially and got it back when you sold it, what's left? The $3,000 note! The point is: You literally created a $3,000 note by virtue of your ability and skill. So that $3,000 note wasn't truly free, was it?

  27. A Mortgage Corporation Strategy You Should Implement. Contract to buy (or create) paper (mortgages) in your home state. You .can do this with a domestic corporation or a Nevada Corporation qualified to do business in your home state. Form a Nevada Corporation called Warbucks Mortgage Corporation. Sell the notes you buy or create at home to Warbucks for a nominal fee. Use Warbucks to restructure (massage) those notes for higher yields and earlier payoffs. (I.e. in the discount paper world, the faster you trigger earning the discount, the higher the yield.) Earn the higher yield, or triggered discount in Nevada...TAX FREE. Whella!

  28. How To Start Out. Find your purpose first because it's clear that you should start a business for no reason other than to get paid for doing something you love to do. It's been said that if you do what you love to do for a living...you'll never work another day in you life.

  29. How To Start Out Right. Do business in the name of a closely held corporation. It's the safest way. It holds the most benefits for you. Besides, the fastest route to success is by modeling what successful people do. Ask around. You'll see that everybody who is somebody does business within the corporation entity.

  30. What is your Unique Selling Proposition (USP)? Decide what does your company do? How does your company do what it does? Why is your company unique? Why should people (or companies) deal with your company? What do your want [to accomplish]? What is your company's purpose? What do you want for your company's future? Who are your customers, clients, market? What are your trying to convey to them? Why do you want their business?

  31. How To Sell More. Communicate with your market regularly. Use: Post Cards. Direct mail letters. Newsletters. Newspaper cut-outs. Newsprint brocures. Seminars. Sell to your market systematically. Mail every day. Get referrals. Develop rapport. Sell to your market after you've sold them. Rent Your List. Market Your Endorsement. Offer Consulting. Expand your market. Mail more. Advertise more. Go into other markets. Add to your marketing mix.

  32. Use The BillBoard Business Card Concept. I believe the business card of the Entrepreneur of the Nineties should be a little billboard. It should tell a even further condensed version of your USP. Your business card should be a direct response piece all its own. Let me give you a brief outline: a.) Design the card to catch the eye immediately. b.) include every possible way someone could contact you--name, address, phone, FAX, telex, et cetera. c.) Make it a tent design like this («) so it must be opened. Then tell your story inside. Enclose your billboard business card in everything you mail.

  33. Develop An "Order Form Close." Once you get a lead, you've got to know how to get the order, and I'm a firm believer in "order-form closes." I think they work like gangbusters. Order form agreements are designed to be "closed" or "negotiated" line-by-line. You just constantly back up and close doors. When the last door is closed, the only left to do is buy!

      Here's what you do. Sketch out and script an exact presentation complete with mannerisms, inflections in your voice and facial expressions. This is called a "closing methodology." In other words, figure out exactly how to begin filling it out and finish by knowing exactly how to ask for the customer's deposit, and ultimately their order.

  34. A Thought For Your Future. DataBase marketing is the future. You should first define your market. Then you should continuously forage for customers and clients who want to buy what you have to sell. Then you should communicate with them at least once a month. If you follow my advice on this small issue, you will have more business than you can handle.

  35. Believe What Successful People Believe. Don't be afraid to make mistakes because...

    Failure Is Not the Opposite Of Success,

    It's Part Of the Process

            -Ray Como

  36. Develop Your Post Purchase Program. What's really important, I mean really important, is what happens after they buy from you. What will you do for your customers after they buy? Remember, assure them that they made a shrewd purchase. Make them feel good about spending money with you.

      This brand of customer service will all but guarantee you a great referral business. And referrals are the best, the easiest, and the least expensive kind of sales to have.

      All of you know that this is the kind of treatment you are used to from the fine people at Laughlin Associates, Inc. I have emulated them in my business in many ways and I would like to invite you to become a customer and experience The Raymond Como Ventures brand of service. Write to me and I'll send you my personal billboard business card as well as some other neat, FREE goodies you will enjoy and profit from.

  37. Learn to use the Internet. Get online. Be the first to know to know about new techniques, updates, products, events and Tools for the Virtual EntrepreneurTM. Subscribe now to our free electronic newsletter at: www.reidepot.com/anyboard/Como/index.html

  38. Think global. Create entities designed to do business worldwide. Base your "worldwide" entities in Nevada, then use the internet, faxes and other modern communication devices to ship, consult, negotiate, have meetings, train and a variety of other things you already do.

  39. Own Options In Nevada. An option is a unilateral agreement between two parties where the optionor (option-OR...Sell-OR, remember that) has agreed to sell under some predetermined price and terms. On the other hand, the optionee (the buyer) cannot be forced to buy...thus "a unilateral agreement."

  40. Options are the most powerful tool available to you in the real estate marketplace. With options you can control huge assets and equities with zero risk. Remember an option is a unilateral agreement. The optionor must sell, but the optionee cannot be forced to buy.

  41. The IRS views an option transaction as incomplete. They hold that it is impossible to ascertain gains or losses until the option is exercise or allowed to expire. Take a look at your tax forms. You will not see any reference to option money (option consideration) paid or received. Option money paid is not deductible by the payor, nor is it claimed as income by the payee.

  42. Options are addressed in section 1234 of the IRS code.

  43. An Option Is a Contract. To be enforceable it must be drawn in contract form. An option to buy real estate should be drawn in recordable form.

  44. Contract Form Includes: 1. An offer and acceptance. 2. A meeting of Minds. 3. Between competent parties. 4. For a lawful purpose. 5. Consideration passed. 6. Signed by all parties. 7. Dated. That is basic "English-Common-Law-Type Contract Form." For a document involving real estate there are two additional ingredients: 1. Identify the property by address; Legal Description; Deed Book Volume and Page # and Lot and Block #. 2. It must be notarized. (I am not aware of any area were an un-notarized document can be recorded.)

  45. "Packaging" or "Underwriting" an Option-to-Buy is very similar to the process of buying. You must have the title searched. And you do open escrow because all documents necessary to transfer title must be executed and placed into escrow. The optionor executes all these documents the day you close the option part of the transaction. In the future, when/if you exercise your option-to-buy, taking title is as simple as sending a notice followed by a visit to the escrow holder.

  46. Pay Equity As Tax Deferred Option Consideration rather than payments of principal and interest. It's private. It's tax deferred.

  47. Make Your Option Strike Price Equal to the first mortgage balance at the time you exercise your option. Then you are using a document called an option to control the right to the future appreciation, as well as the amortization of the loan. Smart. Very Smart.

  48. Your Nevada Corporation Owns Each Fancy Deal You Create. Then your Nevada Corporation will develop the project by naming you (personally) as the Transaction Manager. You'd be an employee. When the work is complete, sub-lease the whole deal to your hometown corporation giving HomeTown Management, Inc.. a nominal but fair market fee for taking on "The Thrill of Management."

  49. Multiple Corporations Work. Contract to buy deals in your home state. For a nominal fee you assign those deals to one of your Nevada corporations called Warbucks Holding Company. Sub-contract your rehab work to Hometown Construction, Inc. Sell the property and select Warbucks Mortgage Corporation to underwrite and service the mortgage.

  50. Limit Your Personal Liability. Nowhere in my writing do you see me advocating the use of institutional financing. That's because it's too easy to buy real estate without ever walking into a bank. The secret is not to find a bank that will lend you tons of money. The secret is to find a seller who is motivated enough to get involved in the financing so you never have to walk into a bank.

  51. Avoid Fraudulent Conveyances. In order for a transfer to be challenged as "fraudulent" there has to be actual prejudice to the rights of the complaining creditor. There are two types of Fraudulent Conveyances: Fraud-In-Law is when the nature of the transaction creates a presumption that the conveyance is fraudulent. Fraud-In-Fact is when there is an actual fraudulent intent to hinder and delay creditors.

  52. Avoid Piercing the Corporate Veil. This process occurs when a claimant against the corporation finds the corporation's assets are insufficient to meet his or her claim. The claimant will then ask the judge in a lawsuit against the corporation and its shareholders and directors to disregard the corporation's existence and the hold the principals individually liable for what appears to be a claim only against the corporation.

      The basis for this is when the principals fail to treat the business as if it was a corporation. The good news is that it is relatively simple to avoid "a piercing." All that is necessary is to comply with the state's legal requirements concerning corporate formation and operation, keep adequate records, and do not commingle individual and corporate money.

      So there you have it. A perfect way to end Fifty Strategies and Very Profitable Ways to Boost Your Bottom Line Profit...just like it began. Remember my admonition: "...always setup these strategies in a way that is in keeping with what happens every day in the business world. You must strive to do that too...in all your strategic maneuvers. Don't be sloppy. Don't be careless. Keep good records. Create the paper trails that justify your actions. Make your deals have substance, real substance. Protect yourself. Watch your assets. Do it for you."

      I hope you enjoyed reading this exciting compendium of articles as much as I enjoyed writing them.

© Copyright MCMXCVII by WWV, Inc. All Rights Reserved

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Ray Como has created, produced, copyrighted and self-published 15 audio cassette programs and lots of other forms and tools for business, real estate, corporations, selling, marketing, finance, management and Entrepreneurship.
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