The Rise of Real Estate Infomercials

From the very beginning of the industry, real estate infomercials have been very successful. There’s something about the idea of making money in real estate that appeals to a lot of people.

In fact, most of the real estate infomercials that have appeared through the years have been scams for several reasons. First the information that they purported to have, the secrets that only they knew but would sell to you for some small or not so small sum of money, were fairly common knowledge easily gleaned at a local library or available for free from the government. Second, the “testimonials” from other, satisfied clients of the “plan” turned out to have been paid actors reading from a script and playing a role designed by the infomercial producers. And finally, some of them are using every advertising trick in the book to cover up the fact that they are outright lying.

The most famous example of real estate infomercials that turned out to be total frauds was a very successful program, that, to this day, many viewers remember seeing. It stars a small, Vietnamese immigrant named Tom Vu who pitches his real estate magical formula from his mansion, his yacht or one of his many expensive cars while surrounded constantly with bikini clad swimsuit models. What was Tom Vu selling? A seminar where he would reveal how he, a dirt poor immigrant, made a fortune in real estate and how you could copy his formula and get wealthy yourself by buying the information. What was he really selling?

Tom Vu sold the bodies of those gorgeous swimsuit models. Most people sat transfixed, watching this opulent display of wealth and flesh, hearing very little of what was actually being said and instantly got hooked. Before they knew it they were calling and signing up for old Tom’s seminar not because they were so taken with him and what he was saying, but because somehow he made them believe that they could be surrounded with beautiful women, just like Tom. If that little, funny looking guy could do it, then so can I! Somehow, this worked. Tom has had some legal problems over this venture and the only secret he had to sell was the secret of making infomercials that mesmerized an audience into calling and spending some money without ever really knowing why. This was early on in the growth of the industry when there was little accountability, but even so, Tom Vu was the model for almost all of the real estate infomercials that followed through the years.

Nowadays, real estate infomercials have learned how to use some of the fantastically successful Tom Vu techniques and avoid the legal problems. They do deliver a product - a book, a guide, a history of profitable real estate transactions that could be followed and could be profitable. You’ve all seen the young, good looking guy talking about the fortune he has made buying houses for no money down, fixing them up and then selling them for a profit. Have you noticed he’s sitting poolside in Hawaii talking with one of his clients, a beautiful woman in a skimpy bathing suit? Tom Vu technique. Or the guy telling you how he’s bought nothing but foreclosures and turned them over quickly for a healthy profit? He’ll sell you a detailed guide of how he does what he does and a list of where to find foreclosures that you can get for free from the government just by making a few toll free phone calls. Is it worth it? You decide.


About the author:
Infomercials Info provides detailed information on exercise, weight loss, real estate, and make up infomercials and direct response (DRTV). Infomercials Info is affiliated with Business Plans by Growthink.

Mortgage vs. Real Estate Lead Generation

It is fairly common for real estate companies and mortgage brokers to use leads. There is a difference between mortgage lead generation and real estate generation. Mortgage lead generation deals with people who need to refinance their homes or apply for loans, while real estate lead generation is a service that connects potential buyers with real estate agents.

Mortgage leads are generated in a number of different ways. One way to create the leads is for the lender, that is the mortgage broker, to appear in a paper or online directory. This lets potential customers make the first contact. The lenders give information about themselves, like the interest rates they charge and types of lending programs they offer, along with their contact information. This allows potential borrowers to search out the lender that is best for them.

Real Estate lead generation is somewhat different. It involves connecting prospective buyers to real estate agents. It is usually a good idea to use a real estate lead generation service that uses only inbound leads, meaning that the buyer contacts the lead generator looking for a real estate agent. This way, the lead generator can get the most information possible from the buyer in order to find the most appropriate real estate agent. Many lead generation services use tricks to lure prospective buyers.

Mortgage lead generation helps lenders and borrowers find each other. This service benefits everyone involved. Some of the most successful businesses on the Internet are lead generation agencies.


About the author:
Lead Generation Info provides detailed information about sales, mortage, MLM, business-to-business, internet, and insurance lead generation, lead generation telemarketing, and more. Lead Generation Info is the sister site of MLM Leads Web.

How Millionaires Get to Be Millionaires

Money is not just a necessity nowadays; it has become a supplement for sustaining wealth and luxury. Anybody of practical reason who’s being asked will have to say that riches should provide for the next generations. Having this thought in mind, everyone are craving for millions even teenagers earn and work out to look forward the future having a house with a large open space, elegant façade and wheels in the garage. Yet there are only few steps, hints of answers revealed by these millionaires global wide.

Before you can manage a large amount of money learn to handle the coins in your hand. Lisa Van Duesen, a Vietnamese now a mini mogul at US was once sunk in debt and penniless. She sold her house and mortgages an amount of $ 200,000, paid her debt and move to settle in the green pasture of US. They sacrifice from eating lavish foods and satiated in rice and soy sauce as their everyday meal. She worked hard as a real estate broker after college and invested her money to real estate properties that soon earned her 40% equity. Learning fro her work, she buys and sells using the bank's money wisely placing them according to her needs. She purchase whatever that has value and can be sold with interest and plan it financially. She recovered from having sky-high debts to rising assets using only what she has into a profitable cause.

Follow your parent’s advice, earn a degree.

Education is a key factor in understanding how money talks and that are by having one potential, being knowledgeable. Invest in your mind. Acquiring a degree is gearing yourself with skill that can be used and valuable in the market. Arturo Gonzalez, son of the Mexican railroad worker dreamt of making it on top. He has promised himself of two possibilities in his life, Harvard or Bust. Later on he was accepted and pulled himself with ambition to Harvard Law School. He then land a job in San Francisco based law firm and has an income about $ 740,000 in 2003, according to the American Lawyer Magazine. This undeniable manifest how education could earn you a living.

Positive attitude towards life spiced with perseverance.

Behavior towards work and the optimism that boost up your moral after you tried hart. Starting a small business is already hard enough, to most of people especially when the resources is scarce and debts is high, study shows 20% are struggling small enterprise, according to SBA ( Small Business Administration office of Advocacy).

Rossie Herman, 42 and a resident of Tomball, Texas had experience a lot of struggle just to get her she is now. She took all the risk even placing her in $ 75,000 debt going form one credit card to another which normally happens to about 46% of small business as of 1998, SBA says. She is a manicurist who has two daughters to raise and convicted herself to get out from debt. Often people slam their door in her face during her marketing strategy of house to house delivery." It was frustrating and tough", she admitted. Yet willingness to succeed paid off. The key there is not by quitting but pursuing.

Invest and Save.

The problem of the most entrepreneurs are recognizing only on what goes in the pocket but not knowing what goes out. Spend only what is not more than your budget and compromise from it. Save, save and play out to invest it when the economy is not shaky. One of Oprah’s best advices during her talk show is that a good financial planner must always sign their own checks. This is to monitor what is left and what needs to be saved or else you’ll end up bankrupt without even knowing it.

Time is always essential.

Multi tasking is the best way of achieving your goals in a short time, this means use your potential in dividing the task to others while focusing on what needs to be done. Most of us try to do a lot of things in a short amount of time and end up finishing nothing at all. Always get your priorities straight and focused baring in mind that investing on it will profit you in the end.


About the author:
Daegan Smith is the leader of the fastest growing team of successful home business enterpernuers on the net. Find out how we're creating financial freedom all across the globe and how to get in on the action FREE =>http://www.comlev.com Team Blog: http://www.turnkeyinternetbusiness.blogspot.com

Building Wealth: Don't Waste Your Money on Real Estate Investment Schemes

You've seen the real estate guru advertisements for books, DVDs, programs, seminars, and mentoring coaches promoting no-money-down deals. Perhaps you've watched the infomercial on TV with the people telling their stories of how they made millions investing in real estate with no-money-down and cash back to the buyers.

Maybe you, like me and many others, have purchased books or expensive systems based on these no-money-down and lease-option investing schemes. Here's the rest of the story.

Perhaps you've seen an ad in your local newspaper offering a home with 100% financing from the seller or a lease option. You should know that the investor offering these types of deals makes money by purchasing the property at a discount and selling the property for an inflated price.

Lease-option real estate investors play the odds. They bet that most people won't be in a position to purchase the lease-option home in a year. So the investor seeks a hopeful tenant to make higher than average rental payments, pay more move-in cash, and make the investor's mortgage payment. Those tenants who do eventually purchase the home paid much more for the home than the investor. Many tenants never come up with a new mortgage loan to purchase the property when the time runs out. Either way, the real estate investor makes money.

First-Time Home Buyers

If you need to buy your first home to live in, these home-purchase methods may help you if you have terrible credit and can clean it up in time to finalize the purchase in a year. Just understand that you're paying too much for the property and may not make any money on appreciation. On the other hand, if you have strong credit, you can purchase a bargain house with no money down legitimately.

Tips for Beginning Real Estate Investors

Don't buy overpriced property! Avoid 100% investor-financed "deals." You will have to wait too long to make any money. Plus, the rental income most likely won't come close to making the mortgage payment for you.

Don't waste your money buying real estate guru books, DVDs, programs, seminars and mentor-coach promoting no-money-down deals. Would you buy a book on how to make a fortune on the Internet that was written in 1995?

These out-of-date, no-money down schemes, tell you to look for home sellers in distress who will let you buy their home for no-money down with the seller financing the property for you. This system worked last century. Today's home sellers know that they can get a buyer who can get their own financing.

Plus, today's home sellers know that other sellers have lost money selling with no-money down. They've heard the stories where home sellers didn't get paid and had to foreclose on a property. They've heard the stories where the investor-buyer rented the house to tenants who trashed the property. They've heard the stories where the investor-buyer collected the rent and didn't pay the home seller.

To get started building wealth in real estate today:

1. Get your credit ready for mortgage financing. (Mortgage credit differs from consumer credit.)

2. Buy right. Don't overpay for deals that sound too good to be true. These schemes are too good to be true!

3. Guard your money. Don't get yourself in over your head with high mortgages on rental properties that cause you negative cash flow and jeopardize your financial well-being. The best way to do this is to make sure you get the best mortgage rates on a bargain-priced property.

You can buy investment property for little -- or even no-money down. Get started by buying your home or a second home. Real estate investing offers you the most tried and true way to build wealth when you avoid investing schemes.


Copyright © 2005 Jeanette J. Fisher. All rights reserved.

About the author:
Jeanette Fisher teaches beginning real estate investors five easy steps to find, finance and fix houses for profits. Free ebook on fixing houses using interior design strategies for top-dollar sales, http://www.doghousetodollhouse.com/

A Real Estate Formula

It was a simple real estate formula. The ads ran in our small-town newspaper for years before I realized exactly what was going on. They were always the same: A house for sale with 5% down and payments of 1% of the purchase price. Maybe a three bedroom home for $90,000, for example, with $4,500 down and $900 per month payments.

When a friend started doing the same thing he explained the process to me. It was a way to get a great return on capital, and it was the opposite of buying with no money down. There is no down payment at all when you buy, because you buy for cash.

The Simple Real Estate Formula

You probably know that when you buy for cash, you can often get a much better price. With no financing contingencies in the offer, and the promise of a faster closing, sellers are willing to sell for less. You can offer $95,000, for example, on a house that might be worth $108,000. If you can't get it for less than, say, $99,000, you walk away - there are always other opportunities.

Once you buy the house, you put few thousand into high-return repairs and improvements. These might include paint, carpet, and maybe asphalt for a dirt driveway. For our example, we'll say you spend $5,000. Let's suppose the house is worth $116,000 now. You're ready for the next important step in this real estate formula.

You put it up for sale, targeting buyers who can't get financing easily. You provide the financing. Because you are making it easy for the buyer, you can get more than the $116,000 value for the home - and do it without paying a realtor's commission. Let's say you sell it for 123,000. The buyer needs a down payment of just 5%, or $6,150, and makes monthly payments of $1230 per month. You charge higher interest than the going rates at the banks, of course.

This is a win-win situation. Your buyer is able to buy a home instead of renting, and you get a capital gain of perhaps $16,000 after expenses, plus good interest. Your total rate of return will often be over 20%!

In our town, the first to do this consistently were a father and son team of lawyers. They saved money by doing their own foreclosures when necessary. Once they foreclosed, they raised the price and sold the home all over again.

They made millions. Did you know that if you can get an average return of 18% on your money, you'll turn $75,000 into more than one million dollars in about fifteen years? That's the power of a good real estate formula.



by: Steve Gillman