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I BROUGHT NO MONEY TO CLOSING AND LEFT WITH $4000

Thanks to Prosper Inc I looked at fifteen houses, made three offers and had one offer accepted at a wholesale price. Most of the properties that I found were through my real estate agent, but I found the last one online using Craig’s list. The three-family house was listed on Craig’s list by a real estate agent. The listing was very detailed and had several pictures on it. Based on the information on the listing, I decided to give the real estate agent a call. He quickly returned my call and I was able to view the property within a few days. After seeing the property and analyzing its Fair Market Value (FMV) using the tools I learned from my coaching sessions, I was ready to make an offer. I identified my base price ($125K) and my max. offer price ($140K) so I met up with the seller’s real estate agent and made an initial offer of $125K plus the seller would provide $2,500 as a decorating allowance and $1,000 to pay for a one year warrantee on all three units (asking price $155K and projected FMV 175K). I received a counter-offer the next day for $141K. I made a second offer for $137K, but in addition to what we already agreed to I asked for an additional $2,000 from the seller to pay for closing cost. The seller made a second counter for $137,500 and agreed to all my other terms. I accepted the counter and after all of the negotiating I ended up netting a $132K contract for the house which was 8K below my max offer. My next step was to lock down financing. I called at least 10 banks and mortgage companies to see if I qualified for 100% financing. I could not find anyone in the industry that was offering 100% financing so I went with the next best things which was a FHA loan with 3% down. Since my goal was not to bring any money with me to closing, I negotiated with the seller to add the 3% to the sales price and agree to an additional 3% seller concession. I had an inspection done and overall the property did very well, but there were a few things that did not pass inspection so the seller agreed to fix them before closing. I found a home insurance policy and the appraisal came back positive so we were ready for closing. I did not bring any money with me to closing and I ended up bringing home a check for a little over 4K. I bought this house with two out of the three apartments rented and I plan to live in the third apartment. This is my third property and I have bought the last two within the last 6 months. I am planning to buy my next property over the summer.

Thank you again for all your support.

Adrianne M.
Cincinnati, OH

I COULDN’T HAVE DONE ANY OF THIS WITHOUT MY Prosper Inc COACH

After looking at lots of houses over a couple of months I finally found the property that I knew was it. It was a nice home from the 50’s that had been on the market for almost a year and the seller was asking $127,000 but it needed lots of upgrades. I was also told that the sellers were highly motivated which was what my coach had told me to look for when going for the deal. The first offer I made was for $100,000. My Realtor and everyone in her office kept saying that the offer was too low and that the seller wouldn’t even consider it and that I needed to make it higher or I was going to lose the deal. I said NO and that this was my offer and that they needed to present it. Under much protest they presented it and the seller came back with a counter offer of $107,000 ($20,000 less than the asking). I countered with a final offer of $104,000 and they accepted. My real estate agent was amazed. They just couldn’t believe that my offer had been accepted that low. I completed the deal in September. I’ve spent approximately $10-12,000 to replaced the shingles on the roof, replaced the furnace, replaced the windows, painted all the rooms, pulled carpets to expose the beautiful hardwood floors, re-carpeted the basement, and enclosed the laundry room. Right now I’m in the midst of closing a lease-to-buy deal on the house with a couple who have agreed to $135,000 for the home. I am also working on developing 3 lots I have owned for quite some time in Challis, ID. I couldn’t have done any of this without the knowledge that I got from Prosper Inc and my coach. Thank you so much.

Janelle P.
American Falls, ID

I CLOSED ON MY THIRD PROPERTY AND SHOULD PROFIT $35K

Thank you so much Prosper Inc for your support and encouragement these past two months!! Jason and I closed today on our first two rental properties!! I have to share our success story with you…

Let me start at the beginning… Jason and I got married in December 2004. I was a 60-plus-hour-a-week workaholic — market research & business development strategy for a small marketing agency. Jason was also working 2 jobs nursing — on the NIGHT shift. We were married for less than a year and hardly spent more than one day a week together (or night) during which we were so exhausted we barely felt like being sociable with each other — let alone enjoying being newlyweds!!

Last summer (2005), Jason and I decided to move away from our home, family, friends, church, jobs, LIFE in Mississippi to pursue travel nursing in California. In September, Jason began travel nursing, and I became a stay-home wife — in California. (I went from 200 miles-per-hour to about 5!! Can we say depression?!!)

Our original goal was to travel for 2-3 years to earn enough to pay off our home and all our debts so that we could afford to live on one income when we started having children, and I could stay home with the kids. And Jason could QUIT WORKING NIGHTS!!!! Well, it didn’t take 2-3 weeks to start missing home and by 2-3 months I came home twice for visits. We were ready to move home sooner, but not willing to sacrifice our financial goals to return to the same 60-hour-work-week lifestyle that we had before.

It was at this time that one of Jason’s co-workers — a fellow travel nurse — began talking to him about real estate investing. In November, we ordered Robert Kiyosaki’s “Rich Dad Poor Dad” and began reading about how we could change our life. We began to realize that we don’t want to be employees for the rest of our lives. Praise GOD for PASSIVE INCOME!!! We had a new lease on life. We wanted to become real estate investors!!!

Through the Rich Dad influence, Jason and I decided that we wanted to be long-term investors rather than short-term flippers, so we began looking for rental property…Today Jason and I purchased two units for $135k, which appraised for $166k and will rent for $800 each, providing us with $200/month cash flow—after all expenses, vacancy allowances, maintenance and a cash reserve. What’s even better — as soon as we repair the ugly side, we will complete our refinance at 90% loan-to-value and secure our final mortgage loan for $149k and still have $200/month cash flow, plus get $14k back to cover repair cost and the down payment on our NEXT property…

Gale, we couldn’t have done this without you. Your support, encouragement and guidance has given us the courage and knowledge to succeed in this first endeavor. The Prosper resources — property analysis forms and rental analysis formulas — were invaluable to us. You and Prosper equipped us to make this possible, and we are forever grateful!! I look forward to your guidance through the next phases of repair and property management. We’ve got new ground to cover!!

Our new goal is to purchase one rental property a month. I am devoting my time now to get this new company off the ground. I LOVE being my own boss now and pray that God blesses this new venture!! Last week, I went by my old office and sat down for an hour with the owner catching up on our adventures. It was with great joy and conviction that I told her I hope I never have to be an employee again!!! I told her that I want us to partner in new ventures together. To which, she eagerly agreed!

So, I have traded in my 60-hour-a-week job for 30 hours a week of real estate. Jason and I were able to move home, work less, spend more time with each other and our family and friends, invest more time in our church and community, and share our new financial education with those less fortunate and less educated than ourselves. I’d say we’re off to a great start!

Jason and I now are concentrating the next 2-3 years on getting our passive income up to at least $3,000/month so we can live comfortably on one salary when we start having kids. We’ve also added a new goal to be fully passive in 5 years — as in, Jason can stop nursing if he so chooses.

I can’t wait to share our next success with you. I know you’ll play another part in it!

SUCCESS UPDATE

Yesterday, I closed on my third property. I just wanted to complete that, so I could include that update in my testimony. Here’s the update.

Two weeks ago, I was calling a realtor on a property. After leaving five messages, I finally got her on the phone Saturday morning, April 29. The property I called about didn’t pan out, but she became one of my greatest networking opportunities. She invited me to attend our local investors’ club. And, even better, she told me to call someone about another property that wasn’t on the market yet. For a $1,000 birddogging fee (a fee paid to someone who gives you a lead on a property), she gave me the seller’s number and let me use her name.

I contacted the seller immediately. The property belonged to a 66-year-old widow who was liquidating her rental property. The guy I contacted was wholesaling — selling his option to purchase the property. The property was offered for $57,500 — $50k for the property and $7,500 for a Release of Option fee. The realtor who referred me to the property recently sold 4 comparable properties in the area for prices ranging from $100k-$120k.

I was blown away!!!! I signed the contract immediately!!! The 1610 sq. ft., 3/2 house was built in 1950. It has a solid structure, good roof, vinyl siding, nice hardwood floors, a good kitchen. The only rehab needed is new vinyl floors in the kitchen, paint and some updating in the bathrooms. There is a dilapidated garage detached from the house which we will probably tear down. Doing much of the repairs ourselves, my husband and I can put less than $70k in this house, which we intend to sell in 6 months for approx. $105k. This one property will generate more income than I made in a year at my previous job!!

The property is currently rented at $700/month — $201 of which is supplemented by HUD. We plan to relocate the tenants in 2-3 months. But, in the meantime, their rent will pay the expenses and generate a small cashflow.

The only catch to this property was…we had to close by May 10. I had 11 days to get this property financed!! I tried my personal bank, which 100% financed my duplex I just closed on April 24. They were willing to finance us again, but they couldn’t promise that they’d close in 10 days. I shared my dilemma with the guy who’s selling me his option on the contract, and he referred me to his bank. This bank is fairly new, small, privately owned and got me an answer in 1 day. They financed 80% of the costs at 7.75% amortized over 15 years with a 5 year balloon. The payment will be $438/mo. This allows me to hold the property for 6 months and avoid any seasoning issues when I sell it. Plus, the $700/mo rent will easily cover my expenses for a few months!

So, yesterday I closed on my third property — third property in less than a month. It is a rental temporarily, then we will rehab and retail it to earn approx. $35k in the fall. I plan to use a 1031 exchange to put that money into another rehab project. My new goal is to rehab two properties and roll the equity into a rental property. This method will allow me to have very low mortgages on my rental properties and much higher cashflow. My husband and I have decided to leave ourselves a nice cushion on our rental properties while we’re starting out in the business. It will be much less stressful to know that another disaster like Hurricane Katrina couldn’t put us into foreclosure.

Lori & Jason S.
Brandon, MS

MY 4-UNIT BUILDING BRINGS IN $900 MONTHLY PASSIVE INCOME – Prosper Inc Success

I just closed escrow on my first property in New York. It is a 4-unit building that is fully rented and brings in $900 a month in passive income. The asking price was $129K and I got it under contract for $124K with 10% down plus closing costs. I must admit, obtaining conventional financing took a bit longer than expected, as I did not own any real estate and the lenders considered me high risk. I managed to find a lender to take on the loan and, after an exhausting process, I got the OK to fund the loan and by the following week I closed on the property.

Right now, I am using my first building as leverage into a multi-property deal where the seller has agreed to do seller financing and hold paper. I am very excited about doing this next deal. If all goes according to plan, it will bring in a fantastic cash flow and will be a great addition to my real estate portfolio. I will then be a few steps away from quitting my full time job.

I want to thank you for all your help and guidance over the last few months. You kept me motivated and gave great advice on how to handle certain situations.

Richard M.
Hermosa Beach, CA

p.s. Having a business partner of this deal, I managed to do it $0 out of my own pocket.

I GOT A $26K PROFIT FOR MY EFFORTS – Prosper Inc Success and Prosper Inc Coaching

This home is a 2/1 block in the HOTTEST part of town and funded just today! A friend of mine brought this deal to me. The sellers were his aunt and uncle. He has recently been confined to a wheel chair and she takes care of him full time. He has cancer, among other problems. Their bills were eating them alive, so they asked the tenant to move out–it was their daughter-in-law. Her husband, their son, died a number of years ago, so they let her stay in the home, but she completely trashed the home and quite obviously her nose quit working YEARS ago.

They called me to see what my estimate would be to repair the home so they could list it. My estimate was $40K, which they really didn’t have. I told them I had another idea—How about they sell it to me. I put it under contract for $45K. The ARV is about $150K. I immediately sold it for $66,250. About 5 days later I get a call from the title company. My buyer has 11 federal tax liens and did I know he was also selling it? Oh, I was mad! After much consternation, I finally get his cancellation and a new offer. While I was waiting to get his cancellation I went and found a new buyer at $75K. I turned in the cancellation and a new contract to the title company. I sent my old buyer a rejection of his offer. He was not happy. Anyhow my new buyer is STOKED.

Fifteen minutes after I dropped off the contract to the title company, I receive a phone call from another party that wanted the house and said they were willing to pay $90K! I told him that I was sorry but “I keep my word.” I thought a little more and decided to call my buyer to see if they would be interested in making a fast $10K. They agreed to my proposal! So I get the signed cancellation, again, a new contract, again and take it to title. We closed on the deal yesterday and funded today. It broke down like this: my second buyer got a check for $10K just for signing a couple of docs, boy were they ready to adopt me! My Realtor made $5400 for sending a few faxes (I needed her to make some money so that I could keep getting her help). My seller got a little over $45K and loved it. I got $26,323.49 for my efforts. It took a while to finally land a good size deal, but it’s worth the wait. All my creditors will be zeroed out and I will still have a bunch for reinvesting.

Jason H.
Albuquerque, NM

I NOW HAVE A CLEAR UNDERSTANDING OF HOW TO EVALUATE A PROPERTY’S CASH FLOW

Working with my coach at Prosper Inc helped me get a clear understanding of how to evaluate a property’s cash flow. I remember him saying, ‘Trust your Numbers!’

I found a commercial/residential building with four apartments and two commercial spaces. In the beginning, I thought I was getting a great deal because I was dealing directly with very motivated seller (no brokers involved, means another 5-6% discount), plus the seller accepted my offer of $280K for a property listed for $350K. I remember being very excited and ecstatic about owning a building in a town that is undergoing revitalization, but my excitement was short -lived.

Todd walked me through a systematic analysis based on current market structure and condition of the property. We went through the income and operating expenses, maintenance, vacancy rates and minimum profits for each apartment. At the end of the coaching call, it was clear it was not an ideal situation for investment because of the vacancies and scope of repairs involved.

A few weeks past, we continued to negotiate. From $280K to $255K to $220K…down to $210K. It was beginning to make sense with these numbers, however, the building need extensive work. I don’t want to carry the mortgage while I am renovating, as there won’t be rental income coming in from the commercial spaces and two other units.

I proposed a lease-purchase to the seller, where I will pay him $1,000 rent per month for the next six months. I get to fully renovate, the seller continues to pay for the mortgage, all the utilities, taxes and insurance while he keeps the rental income from the two apartments. At the end of 6 months, the seller credits me back for total rent monies at settlement. I reduced my out of pocket expense tremendously. Creative financing allowed me to purchase this building and helped end the seller’s misery. This turned out to be a really GREAT deal!!!

I am very grateful for the knowledge and confidence I gained in the short time that I have been in coaching. Having a coach to guide me took the emotion and fear associated with investing. Now, I am more relaxed and looking forward to buying another property. It is money well invested!!! Coaching works!

Carmina M.
Malvern, PA

I PLAN ON MAKING A PROFIT OF $35K Prosper Inc Success and Propser Inc Success Coaching

My searches for property began with me searching on the Internet for HUD and REO homes. It was hard for me to make the call to begin physically looking at property. My area is very large due to being near a large metropolitan area in the Mid South. The first houses I saw were ‘dumps’. This kind of scared me into believing that on very bad dumps existed. I increased my exposure to looking at houses. I began looking at 2 to 3 houses a week, to 8 to 10 houses per week. After looking at about 36 houses; I made my first offer and was told that it had a contract on it, yesterday. Just my luck. But after each talk with Jeremy, I kept up the faith and the new the program would work. I made offers on 12 houses and all 12 refused. I than counter offered on 6 of those 12, also refused. My spirits were getting low again. I needed help.

I began using a realtor to help me search on homes with my criteria. Bingo. She found me 2 great houses. I made an offer of $56,000 on a single family home with 3 bedrooms, 2 bath, single car garage, dining room, living room, kitchen. The asking price was $84,000 on this REO property. The bank refused my offer. I offered $59,000 as a counter offer; again refused. I figured I had lost on this piece of property.

The market value is around $129,000. My agent called me on the last day of July. She told me that sometimes banks will take an offer on the last day of the month, just to get the property off their books. So, I made one last offer of $60,000. At 6:00 PM, on the last day of July, my realtor called me and congratulated me on my purchase.

Wow! Wow! I could not believe that this is really happening. So, this property will be purchased for $60,000. Repairs will be at $11,595. The repairs needed are fresh paint on the inside, new carpet, replace some of light fixtures. The house was built in 1999. The cabinets and other areas of the house are in great shape. I had the house inspected to determine these factors. The AFV will be at $119,000 to $129,000. I plan on flipping on this property, with a profit of around a minimum of $35,000. This amount to be made is 75% of my salary on my current job. I hope to sell the property in 90 days from closing. My financing will be with a mortgage company and is a conventional loan.

I now have made an offer on the second home. I expect to get this one too. My words to present investors and new investors is ‘DO NOT GIVE UP, KEEP LOOKING, KEEP WORKING THE PROGRAM. SUCCESS IS NOT SITTING ON A HOUSE, ‘ SAYING TAKE ME’. YOU MUST LOOK HARD AND YOU TOO WILL FIND SUCCESS. I highly recommend ‘Prosper Learning’ for you to learn about Real Estate Investing. The mentoring program is the only way I felt that I could succeed in real estate investing.

Hal S.
Bartlett, TN

Prosper Inc Success and Propser Inc Success Coaching

PRACTICAL AND APPLICABLE EDUCATION FROM DAY ONE

I originally signed-up for classes through Prosper Inc to help supplement my income. However, less than a day after I signed up to become a Prosper student, my job was down-sized! Going from barely keeping out heads above water with a family of six to living off assistance wasn’t quite what I had in mind for me and my family! At first I focused a lot of time and energy into getting another job. I thought that getting a job would be a logical way to help fund my real estate investing. Now that sounds all nice on paper and all, providing you actually get a job.

Prosper has giving me hope during this otherwise dark time in my life. I knew I could not control the fact that I was fired. I knew I could not control the fact that I had not been hired (though I have put out a number of resumes to companies and headhunters). What I did know was that I had an opportunity. Not a gimmick. Not a scheme, but an opportunity…an opportunity to learn from some of the brightest minds in real estate…an opportunity to have a mentor stand beside me as I spread out my wings…an opportunity to write my own future paychecks. No one can ever take this away from me!

My first Real Estate transaction was actually funding a project for another investor. I put up $18K for the deal and I’m looking to net $3600 in about a week. 20% interest for a two week loan? Only in real estate!

I also have another deal in the works where I am buying a property at $20K and with about $7500 worth of repairs, should be worth $60K!

I love the opportunity to write my own paycheck!!

My 8 year old daughter asked me just the other day, “Dad, are you ever going to get another job?” I told her, “I hope not! Daddy’s don’t need to have jobs to earn money.” She replied, “You mean you are earning money when you are on the computer?” I said, “Yes.” She replied, “Cool!”

Needless to say, I am relieved to see that I have replaced my income from my full time job with investing in real estate. My goal for March was to earn $1000/week in real estate. I am already close to target for that. My next immediate goal is to net earn $1500/week. However, I believe that is totally unrealistic. I should be averaging more than if I only do 1 or 2 deals per month!

I feel like the young, teenage boy who just got the keys to the parent’s new car! Not only do I know how to drive now, but oh won’t the neighbors talk once we get this thing started!

My personal goal is to look for the deal where I can earn at least $10K every week for the rest of year. Hitting on this goal only once every other week would still make a quarter of a million dollars per year! Suppose I only hit once a month. That’s still over $100K! Not too bad when you think I used to find security in my $20K per year job!

I would like to thank my coach. I would also like to thank the entire Prosper team! What a wonderful product! Awesome education! Practical and applicable teaching from day one. Supurb!!

David R.
Alma, MI

THE PROSPER INC WEBSITE HAS AN ABUNDANCE OF INFORMATION

I’m a single mother and own my waterfront condo in Vancouver, BC, Canada. I am learning to leverage the equity in my property to build my real estate portfolio. I’ve just closed on my first investment property, which is a 5-plex in Rochester NY. Buying real estate can be a stressful experience, even if you are local and able to handle things personally; but when you have to build a team remotely from another country, it ups the ante significantly. My real estate mentor was very encouraging throughout, however, and I’m clear on the fact that it never would have happened without his guidance.

I’ve learned how to easily assess properties for profitable investments and also discovered that there’s an abundance of opportunities out there. I also learned how to build a strong team of people remotely that can assist me in locating, closing, and managing real estate properties. I’ve experienced a clear shift in my thinking that totally changed my reality and expectations where I feel like I embraced the concept that abundance is totally achievable and only limited by my level of commitment and desire. I feel that this shift is what is referred to as “The Millionaire Mind” and once changed I don’t think you are ever the same again. I understand now how I can leverage the equity that I have in existing real estate to buy other investment property and build significant wealth for myself and my family.

There’s an abundance of information provided by Prosper on the website, weekly conference calls, access to mentors via phone, and of course, the weekly calls with your mentor are invaluable. The weekly calls with your mentor can be more productive if you gather your questions before the call and set goals for the next week that you commit to completing before your next call. Your progress is only limited by the time, effort, and commitment that you’re willing to invest in your future. Thanks to Prosper I’m eagerly looking forward to adding the next real estate deal to build my portfolio.

Janice C.
Vancouver, BC, Canada

Hey Prosper Inc, I MADE A PROFIT OF $40K ON MY FIRST DEAL Prosper Inc Success

I started by looking for distressed properties and motivated sellers so I would find the best deals. After finding 3 prospects, I contacted the owners to access the properties so I could make offers. I quickly found out that making offers is fun, but takes skill. I asked my coach to break down the process and off I went.

I made 3 offers but, one property stuck out. It was a foreclosure bank owned property worth $200K, but it was listed for $162.9K. I made an offer of $155K and 6% closing cost. They countered with $160K and 3% closing cost. I evaluated the numbers and because it made sense, I accepted the offer.

I started this real estate investing course and my coach has made all the difference in my quick success. He made sure we discussed each step I took every week. If I encountered an obstacle or road block, he would guide me through it. He offered simple solutions and resources to make the process easy.

For example, this property was bank-owned and very different than dealing directly with the owners. I was a bit intimidated, but Prosper Learning taught me how to evaluate the property for repairs and profit, and make the offer and negotiate confidently with the Realtor who was not very cooperative. We didn’t close on time and I had fallen out of contract. I didn’t know what to do so I contacted my coach. Due to his advise, the Realtor realized I was not alone and someone very experience must be helping me because I was on top of my game. She granted an extension on the contract and that advice saved my first deal.

I did exactly what my coach told me to do step by step and I closed on my first investment property with a PROFIT of $40,000. This course is well worth it. THANKS PROSPER LEARNING.

L.A. G.
South Holland, IL