What You Missed December 2017 General Meeting
by Rob Earhart
Let’s Hear About the White Elephant Properties that He Turned Into Green Money Deals
Mr. Khalid Naseer
December 5, 2017
Khalid began, “Ever since I came to America, I have lived in Lakeland. After awhile, I spent $5000 on one of those seminars that teach you how to buy real estate and, in one year, I made no money.”
“One year later, I was mad, and I called them up.” The lady asked a few questions like, “Did you do this? Or that?” After eight questions, I was embarrassed because I did nothing, but they said I could attend again for nothing, and I decided to do something. “I then did three deals and made $7,000. Once I had done that, I needed some more education, so I asked to go again, and they said ‘one more time.’ “
After I did a few more deals, they invited me back and paid me to talk at their seminar this time.
They said to drive a different route all the time, so you can find some vacant or run-down houses. Then, look up on the county records to see who owns it. Khalid exclaimed, “That way I could find more deals.”
In order to get around more, I decided to deliver pizza after 6 to find more deals. “I put a sign on my car that says I Buy Houses. I started to get some calls and my best day was getting 17 deals in one day.”
I don’t mind letting people know how to do this. I helped one fellow who owned a restaurant. He has been very successful and has never charged me for a meal. He now owns 20 houses.
Khalid explained, “I don’t charge for the education, but if you are in one of my circles, things come out of my mouth.”
One deal Khalid showed us was one that was burned. “The owner turned it over to me and I fixed it up to rent,” he exclaimed. I checked on the new renter to see how they lived, and they were cleaning the house out. I ended up purchasing it with a friend and made a 92% profit over two years.
A gentleman who buys and sells houses called and wanted to sell a few houses. I negotiated a deal to get it rehabbed, then appraised. I told him that “whatever the appraisal comes in as, I will give you 20% less.” He asked why, and I told him, “we’ll get it financed and you will supply the 20% down, so I was in the deal for no money down and he got his money.”
“I don’t push anyone, but if they want to do a deal, I will work with them,” added Khalid.
I offer my tenants to get them “credit Improvement” by putting $5,000 in the bank, they get a $5,000 loan, pay me and get the loan paid back and improve their credit. I offer this service to most of my renters so they can buy my house. He explained, “You can do this any number of times.”
I got another call about a double wide on 3.5 acres. It was ready to be foreclosed, but I said, let me talk to the owners. They wanted to move, so I asked how much they needed to move. She wanted $4,000, so I paid her, and the owner gave it to me with 100% financing. Within a week, I had a buyer and made $7,000 on the sale.
Khalid warned, “I paid for five billboards, but they were too expensive. Pizza delivery worked out better for me.”
He continues his education: “I budget $5,000 per year to go to seminars. I go to the short seminars to interview them and see what their guarantee is. I make sure I can go three or four times to make sure I get it.”
I took one of Larry Harbolt’s seminars in Lakeland and sold a house in the seminar. I suggest you go to different REIA’S just to meet new people. If you meet people that are on your level, you get a lot more education.
In Lakeland, there are four or five people that I communicate with weekly. I have books and videos that we read and watch to keep up on the new ways of doing things.
While I am out and about, I write down the phone numbers of the “I Buy Houses” signs, and call them to see what they want to buy.
“If I go to a house, I don’t leave without a contract.” Then I call the numbers that I’ve collected and know that one will buy. “It’s all about networking,” proclaimed Khalid.
Normally, I give them a $10 deposit. My car has the signs all over explaining that I buy houses. In the day when I was delivering pizzas, a lady saw my car and asked me about buying houses. I asked, “Do you owe a lot on the house?” She answered, “$50-60,000.” I asked her why she wanted to sell. She said she wanted to move to Jacksonville, so I asked her what would she do if it does not sell? She stressed that she did not care what happened to the house.
I had my attorney draw up papers, and was out of town when they moved out. I had someone clean out the house, and put up the for-rent signs. Khalid exclaimed, “Before I got back into town the house was bought, rented and I was making money.”
Question: How do you take title? He said, “If I don’t put my name on it, I put it in a trust or an LLC.”
I also advertise to buy junk cars, and I have around 35 cars in a lot. If I collect too many, I call the junkyard to take 10 of them and I collect $5,000. I had a truck that a mechanic said the engine was dead, so I bought it for $200. We checked it out and it was just out of gas. I had it filled up and drove it to Chicago. When I got back, someone was waiting and paid me $2,500.
I know a lot of people are into wholesaling, but I suggest that, if you can buy something, keep it.
Question: “Are you still selling pizzas?” No, after getting hit in the back three times, I gave it up.
Question: “How do you get good tenants?” He advised, “I charge $99, because if they are shady, they won’t pay. Then I do the background check and see where they live now. If they ask what I check, I say another company checks it, and if you are approved, you will get to rent my house. If they don’t, you will not." He warned us to say, “I never know why,” so it does not involve me in the decision. That way, you are not discriminating against anyone.
Khalid explained that he did not collect a deposit, just a performance deposit. That way, if anything goes bad, it comes out of those funds.
Mr. Naseer remained in the room to answer any questions for several minutes.