So I am at this elementary school in Detroit in December, dressed up as Santa, having the time of my life and the last class we took the toys in is being taught by this very young gentleman named Mr.Uresti.
After we had giving the toys out and the wrappers came off and everybody was happy and smiling; all the kids wanted to keep the dolls, dinosaurs and the racing cars out for a while and play which gave Mr.Uresti a pause.
And the kids were all yelling please, please, please let us play; so he said, if I am going to let you guys play with your toys we have to raise our right hand and repeat after me: I promise not to take anybody’s else toy or blame anybody for taking my toy; I will be quite and respectful and play with my toys and have a great time.
They all very seriously repeated the oath and went back to playing. And I thought what a wonderful idea…. May be I should have a MP3 here somewhere that every new Michigan real estate investor should repeat after me before they start flipping foreclosures in their Michigan cities especially when it comes to these 7 rules:
1. I promise not to give any money to any contractor without a written agreement between them and us. I also promise to check their references and get a W-9 form sign and filed from them before I gave them any money. And I also will not give them the final check without getting an Unconditional Lien Waiver Form signed and filed away.
2. I promise not to enter into any partnership agreement with anybody, no matter how long I have known them, without a contract, prepared by a lawyer.
3. I promise not to put any offers on any REO’s without having OPM lined up to buy it once my offer is accepted. That will insure that the REO agents I come across in Michigan will love and respect me for all the days to come.
4. I promise not to buy moldy, fire damaged, foundation destroyed, flooded with water houses in 2011.
5. I promise not to try and fix these flips myself so I can save couple of dollars. I will not be cheap and I will find good help to get these houses done fast so I can flip them.
6. I promise to find a great loan officer who can help me get my buyers approved and my flips moved fast so I can spend time in finding the next deal instead of playing mortgage banker all day long.
7. I promise to spend time networking with other experienced real estate investors in Michigan and go to networking meetings like local REIA’s and other entrepreneur groups and ask for help and not try to waste couple of years trying to ‘discover’ things that already been discovered long time ago.