Bernardo who says he has a short sale question, how to get the lender short sale approval in a down market when the BPO is higher.  Now for those of you on the call who don’t know what a BPO is, that’s a broker price opinion.  That’s what the lender has ordered from a agent or realtor to go ahead and tell what the value of the property is and what Barnardo is asking is when they those “experts” in the industry have told the lender what the property is worth and suddenly you come in at a greatly reduced price, what do you do about that.  He says, “I sent the short sale package.  I negotiated with a lender and the BPO is higher based on the old market at higher prices.


What I tell you Bernardo is just what I’ve been saying for the last few minutes is that you must let that lender get a clue if they don’t all ready have a clue.  You tell them exactly what’s going on in the market place.  Now we have a tool for you to be able to do that and if you’re like most of the people on this call, you own our web site and that’s our Street Smart Investor web site.  And there’s a buying web site, a selling web site, and a borrowing web site they’re predesigned for you to be able to present yourself in the market place with a plan.  A buying plan, a selling plan, and a borrowing plan and all your marketing should include your domain names that we help you get for your web sites.  Now on the backside of those web sites that the public doesn’t see is the tremendous vast amount of additional tools that you can use.  On the buying web site for example on the web site is a complete contact manager and also lead manager that helps you manage your purchase of that property all the way through the entire evaluation process.  Through the offer process, and through the purchase process, and one of the tools we have back there as well is all of your Lou Brown forms.  Your Louis Brown paperwork is on the backside so you can access it from any computer in the world at any time 24 hours a day without having to have your workbook or your form disk.  It’s all ready there on your web site.  We turn that on for you.

By the way if you’re on the call and you don’t know about our web site call for a free tour 1-800-578-8580 that’s 1-800-578-8580 and let us show you what they’re all about, because, it’s truly not like anything out there in the industry, because no one else has those Lou Brown forms for you.

Now the other thing that we’re doing for you is that we have loaded back there articles recent articles of mortgage implosion.  We have articles that tell you exactly what’s going on in the industry.  When you send your package to the lender, you should be sending these articles as well.  You should be notifying the lender of exactly what the current market place is.  Some of the articles we have back there, even talk about that values are a lot less then they are…then they were just a few months ago.  These are the kind of articles that you want to send to them and say, “Listen you don’t have the correct information Mr. Lender let me show you what’s happening in our market place”.

By the way, if you’re on the call and you’re seeing articles like that I want you to send them to us at that’s  And Bruce is the one if you don’t know Bruce who takes care of some of our web issues and helps us put things together for the Whole Enchilada.  And he uploads those articles for you.  So, as you see these articles send them into us and we’ll add them.  In the mean time Bernardo, I would suggest that you download these articles and send them to the lender along with current comparable.  And if you don’t have any current comparables there’s free ones available on the Internet, but there usually worth about what you pay for them.  They’re absolutely free and worth nothing or worth little.  What I recommend you do is when you’re evaluating the price of a property you want to evaluate it several ways.  One is you want to use our property Compwiz C-O-M-M-W-I-Z that actually is what the appraisers use to evaluate property and its got far more data than a typical free comp that you can get on the Internet.  You can send that report to the lender as well.  And one of the things that I like about it is that you can excerpt certain comps and you can cut and paste the comps that you want the lender to see to a document and send it on to the lender when you follow up with him on the short sale that you’re working.  But definitely, you need to communicate with the lender.  You need to show them exactly what’s going on in the market place.


And Vickie Blacko also has a question for short…about short sales.  Hi Vickie, she’s one of our Street Smart Stars who she and her husband Mark have done so well using the Street Smart System.  And they’ve been able to buy property that greatly reduced prices including a marvelous mansion that she and her husband moved into.  And they showed us when we did our St. Louis Millionaire Jump Start they showed us pictures of it and it was just a marvelous thing to see that they were able to buy that property subject to…they were able to get the seller to pay them to buy the house and they got the pool table, and the swamp buggy, and so many other goodies just by knowing all the Street Smart tools to be able to buy those properties.  It was a great thing and it’s an inspiration to all of you on the call, because you’ve got to understand that you can have the house of your dreams and you can buy it at a great discount too as Vickie and Mark did.

And Vickie says, “Hi Lou just wanted to…what do you say to the BPO person to try to get a low BPO on a house that I cannot find anything wrong with?  So, Bernado’s got the problem of the BPO all ready going on…into the lender and Vickie is saying, “Listen I’ve got a beautiful house what am I going to say to them to get them to give me a low number”.


Well Vickie, here’s what I recommend.  First of all, I would start with the seller’s hardship.  I would try to tug on the heartstrings of the BPO’s person, the realtor or whomever the lender has hired to give them a reported value.  I would say, “Listen I just want to tell you a little something about the people that I’m working with here.  I’m their financial advisor.  I’m working with them through this difficult situation in their lives.  They had a fill in the blank, but typically, these people have some pretty heart rendering stories.  You know the lady I’m working with has cancer.  The lady or the couple I’m working with their child had a serious illness, and they had to go through an extensive medical issue and now they’ve got a hundred thousand dollar medical bills.  Or the people I’m working with are elderly and they’ve got some issue now and they’re going to have to move out of the home, but they can’t make the payments any longer and we’ve found a buyer for the property.  Unfortunately this is going to devastate the sellers and you know just tug on their heart strings a little bit and talk about how bad things really are for those people that live in that house.  And that how much that person could really help if they come in at the right number, because you’ve found a buyer for the property.  The only issue is that the number has to match what the buyer is willing to pay.  And unfortunately, because of the stagnant market, because of the challenges in the market that’s exactly why the property won’t sell any other way then to your buyer.  So, if you can get them to kind of listen to you and go though it.

Now the other thing Vickie I recommend is that you also go to Compwiz.  Get the comp and build the comp report so that BPO person can see exactly what the comparables that you’re looking at are and also the comparables that the lender would be looking at.  Because that’s another issue is even though the value of the property may come in higher it actually has to get qualified for a loan.  And that’s the other place that you can explain to the BPO person that you need their help is that while they may find higher comps the problem is the lenders are all looking at the lowest comp, because of how quickly the prices are dropping in the marketplace.  And you’re going to use those comps to be able to get the lower value, because that’s exactly what the lenders are looking at as well.

And also one more thing Vickie I would recommend that you discuss issues with the water heater.  You say obviously the water heater is not up to code.  Well Vickie, most people don’t know and explain that the electrical is not up to code, and explain that the heating and air conditioning is not up to code.  And the thing is that the International Brotherhood of Electrical Workers IBEW changes the codes every year.  They adopt new recommended codes which many local municipalities adopt as part of their overall housing code structure.  So, every year that the IBEW changes things so does everybody else in the country.  And as a result, builders are required to include many more things.  And I don’t know about you, but I’ve noticed electrical, and heating, and air conditioning, and plumbing, and all those issues have gone up dramatically in cost.  Because, they’ve changed the codes and they’ve made it a lot more expensive to put those systems in.  So, I would bring up issues with the codes not being or the things not being up to code on that.  And Vickie I hope that group of things are going to help you with the BPO person.  Please keep me posted on that, because I think that’s going to really help.


All right now we’ve got Gene, and Gene says, “Hello Lou I want to make an offer contingent upon a short sale.  I can’t promise an amount, because the lender won’t work with me.  I don’t…excuse…oh I’m reading it wrong because if the lender won’t work with me I don’t want this heap.  I have all the forms and they’re all the forms you say I should use.  What should I use and how should I write this up.  Thanks.


Well first of all, Gene, I would recommend that you must get the deed to the property.  I don’t want you working on a short sale unless you all ready have the deed.  Now Gene that doesn’t mean you have to record that deed.  That just means that the sellers not going to back up on you and back out on you later if you can’t do a deal with the lender.  So, I would recommend that you get the seller to sign a blank offer.  What difference does it make anyway?  You’re not going to pay him anything.  The only way you can buy the property is to take over the existing loan or to get a reduction in the loan from the lender.  So, you can’t tell the seller what you’re going to pay for the house, because you don’t know yet how much of a reduction you’re going to be able to get from the lender.  And that’s typically, what the seller will agree to, because they understand that to.  You’ve got to negotiate the deal, but the thing is you tell them, however it’s not going to cost you anything.  I’m going to go to work for you, and I’m going to take of these things for you.

Now of course Gene I’m going to recommend that you use the short sale profits kit and if you do have the short sale profits kit it’s got the correct purchase and sale agreement in there.  Because that purchase and sale agreement specifically states that if you don’t get the discount that you’re looking for from the lender, you are not required to buy the home.  Now that’s different from my typical purchase and sale agreement that’s built into Volume One.  If you don’t have that and if you don’t have all the other short sale tools and forms then you want to get the short sale profits kit.  Go to my web site or call the office at 1-800-578-8580 its $299.95 and it includes the forms disk that has everything on there.  So, the entire package that I want you to send to the lender, not you to get from the lender, but I want you to send to the lender is included there.  And it shows you exactly how to go through the steps, because every thing is built in including the HUD1 closing statement, the hardship letter, the list of repairs all those things are included as well.  So, it makes it very simple for you to be able to go through the process and get the lender to do what you want them to do.  And that’s the real game that we’re up to.  So, I wouldn’t have you buy that heap Gene unless we had the right words in the document.  You won’t have to do it if you use that purchase and sale agreement that I have.  And you protect your time by going ahead and getting the deed using the all the subject to paperwork and the trust Volume Four “Section Four” which gives you all the things to be able to protect yourself on purchasing the property and trust as well.


Okay now we’ve got a question from Peter who says, “Would you suggest to invest in houses located in isolated areas far away from schools, hospitals, and super markets?  How risky is it to sell them to buyers for a profit”?


Well Peter, I would say that it could be very risky, because after all the market is only what the market is and there’s not a lot of people out there to buy that house.  So, you’ve got to ask yourself how am I going to market this house.  How am I going to find somebody to buy this house?  What am I going to do to get people to look at this house?  And then I would say Peter you’re going to have to buy it cheap.  Like really cheap, because if it’s cheap enough you can sell it on better terms.  You can sell it with owner financing for example the way I teach you in Volume Ten on “Owner Financing” or Volume Nine on “Lease Options”.  Those are the things that guide you through exactly how to exit out of this property without having to swing on the vine trying to find a cash buyer.  If you haven’t learned anything on this call, you’ve learned that it’s going to be difficult now for the next number of months to sell anything for cash.  And that’s exactly where you should not be.  So, all of my exit strategies is built into my selling system and that’s exactly what you need to focus on if you’re going to be able to sell it.

Now another idea for you Peter is I want you to buy this property on option O-P-T-I-O-N option to buy so that you are hot at risk.  Now that’s also in “Lease Options” Volume Nine.  That’s split into two parts.  There’s a buying section and there’s a selling section.  So, you can buy on option and it doesn’t obligate you to have to buy the property if you cannot find a customer.  That gives you the ability to get in there get the property tied down and find a customer without being at risk at having to buy the property if you can’t find a customer.  That should set you up for success Peter.  All right we’ve got another question here it says…and again let me just finish that thought.  The house has to be cheap enough and remember that you can use the seller as the bank as well.  So, I would also go back to the seller and say, “There’s only one way I can buy your house, if you act as the bank”.  Acting as the bank would be to give them something like what they’re looking for.  But they’re actually carrying the financing for you.  And let’s say Peter that they wanted $50,000.00 for the house and you know that you can rent that property without much problem for $500.00 a month.  Then you say, “I can pay you $250.00 a month until paid will that work for you”.  Boom you just got a zero interest loan and you spread it out over time, and you’ve got a cash flow on the property to boot.  So, that’s the way we need to look at these things.


Okay we’ve got another question that says, “If I subscribe to a legal newspaper indicating foreclosures and probates etcetera how could I read it and be able to contact the people involved”?


Well what you’re going to have to do is actually read those notices, because right in there it says exactly what you need to do.

Divorces for example will, many times those divorces, are represented by an attorney.  So, what you could do is contact the attorney and say, “I see here that you’re representing a Joe Jones and Sally Jones in their divorce.  I just wanted to let you know what I do.  We buy, and renovate, and sell properties and this may qualify for our buying program if they have real estate.  Tell me do they have real estate”?  If they say, “No”, say, “By the way do you have any other people that are in divorce or about to go through divorce or any other client that might have real estate that they need to liquidate?  I’ll be glad to help you and by the way, I’ll pay you a referral fee too for referring me the deal if I’m able to buy that property.  Now that opens up the world for deals on divorces.

Now probate is a different issue.  Number one, probate sometimes are represented by attorneys so you can contact the attorney and say, “I see here that you’re representing the estate of Sally Williams.  Okay I see that Sally has heirs and what have you as being advertised you’re advertising for creditors in the newspaper tell me is there any real estate involved in this case”.  And if they say, “No”, you say, “Well let me ask you something is there any real estate involved in any of the other cases that you’re working with, because what we do is we pay referral fees.  And we’ll be glad to pay you a referral fee if we’re able to find the house.  Wouldn’t it be great if you could go ahead and assist you client in liquidating their real estate or any other asset right away.  Boom and that opens the door for you to be able to do probates through an attorney.

Now the other thing that is also in those ads is the personal representative or the executor, or the executrix, or the administrator of the estate.  Any of those people also can be your help in liquidating those properties.  So, you want to cal them up and say, and say, “I see you’re the personal representative of Sally William’s I just want to “I’m so sorry for your loss if you…if this is a loss for your family.  What we do if we can be of help…We buy real estate and if there’s real estate or any other assets involved we just wanted to let you know that we can help.  Tell me did Sally own any real estate.  She did no kidding.  Have you sold the real estate yet?  You haven’t, how would you like to have the opportunity to get rid of it right away?  That’s what we do”.  And then you go ahead and go into my seller questionnaire that’s in Volume One and you start asking them all those questions.  Because, even though the person is deceased that does not mean that you can’t buy the property subject to the existing loan.  We’ve been paying on dead people loans for years and you can too.  And that’s another avenue to be able to buy that property and have the seller as the bank, because the seller even though they’re dead can still be the bank if their estate sets the bank on it.

And by the way probate estates can carry back financing as well.  So, these are all ideas to give you the ability to take advantage of those legal newspapers.  And also you don’t have to just wait for the legal newspaper you can pick up the yellow pages and just start making out bound calls to all attorneys in there, and all divorce attorneys, all probate attorneys etcetera to have the same discussion with them, because they’ve got clients.  And you can probably help them solve their problems.  Well I hope that was of help to you.  That’s another detailed answer to one of our questions on this group Q and A call.


Now we’ve got Sharon Mulvani who says, “If I deed some rental property I have owned for several years to an LLC does that change the depreciation structure and the capital gain obligation when I sell it?  I am hoping to sell it soon”.


Well Sharon, it depends on how your LLC is set up.  Is it a flow through LLC that flows through your personal tax return?  Is it a single person LLC that flow through to your personal tax return?  If so then, it won’t change the depreciation on the property.

But what I’d recommend Sharon is that you don’t deed it to your LLC.  I would recommend that you deed it to your trust, and if you learn how to do trusts then you’ve got the ability to deed directly to a trust having that trust only own that one piece of real estate.  And when you put that property in that trust then if anything happens to you, you won’t have probate issues that we were talking about in the earlier question, because trusts avoid probate.  But the other thing it does it avoids having you show up on public record as an owner of real estate, because the trust becomes the owner of the real estate.  And what I teach you to do using the trust course Volume Four and Volume Five is to put your properties each one in their own trust.

Now I’m going to be covering a lot of detail on this at the Maximum Asset Shield, which is coming up August 23rd through the 26th in Atlanta.  And I highly recommend that you are there, because we’re actually going to do it in class.  Sharon what you do is bring you deed with you in class and right there in class we’re actually going to be filling out the paperwork.  Actually right, there in class, you’re going to bring your deed with you and we’re going to do the trust right then.  So, you’ll be able to record it on Monday morning when you return home boom exactly where the trust goes…excuse me on public record deeding it out of your name into the trust name.  And you will be able to retain all of the tax benefits, the depreciation structure, and everything else the way I’m going to teach you to set up the trust.

So, if you’re not all ready registered for trust everyone on this call do make it your business you need to register for that course and I want you to call 1-800-578-8580 as soon as you hear this call, because you must get yourself registered for that.  I think there’s only seven seats remaining in that event and then we close it down and you’ll be put on a waiting list.  So, be sure and call get yourself registered because this is information that you cannot get any place else at any price and we guide you through exactly how to do it.  But not only do we do land trusts we also do the personal property trust, and living trust as well while we’re in class.  So, literally you’re going to know who to transfer your vehicle into trust.  You’re going to know how to transfer you bank account into trust, and you’re going to actually set up a bank account in trust while you’re in class.  And not only that then we’re going to set up your living trust and that’s the other element of how we’re going to protect your assets and set up your estate so that you don’t have to go through probate.  By the way, this includes your parents as well.  You can bring your parents for just an additional $500.00 and they can learn how to get their assets put in trust so that you don’t have to deal with probate.  This is an important conversation and it’s important Sharon that you get this training and everybody on the call too.  Because, I do cover things in the live trust training that you do not hear on the CD.  So, it’s advance information and it’s information that you can’t get any place else.


Okay Clinton Morman asks, if there isn’t…if it isn’t too much can you just give me an example of someone getting the deed on a subject to property.  What is actually said?


Well Clinton, it’s pretty simple.  Basically what we’re doing when we go through the process with the seller we’ve only collected information.  One of the things we did on the call was to set up certain parameters and certain agreements with the seller.

One of them was we first asked questions we said, “Are you willing to sell your house for what you owe on it”?  Yes or no I don’t care what they say.  The next question…the next statement that we make rather is “As long as your house qualifies what we do is take over payments for you until we get the house sold.  Will that work for you”?  “Yes”.  “Good then I’ll need a little information.”  Boom and then you go into detail with them about how you can buy their house, because you’re going to gather all the details about the existing loan on there.  So, when you meet with them guess what you’re going to do?  You’re going to use my Seller Presentation Kit and you’re going to go through all your house-buying program.  And it’s built into your Seller Presentation Kit.  Then you’re going to use your cost to sell worksheet.  When you use your cost to sell worksheet you’re going to work with the seller to actually come up with the offer on their property.  When you do, you’re going to go through all the expenses that it’s going to cost them and cost you to sell their property when you buy their property.  And you say, “Before I can make you an offer I first have to calculate what it’s going to cost me to sell your property when we get the property purchased”.  So, you go through the numbers with them and then you get to the bottom and guess what you’re going to also deduct what they owe on the property.  That’s usually going to create a negative number and it does you can say, “Theirs is one other way that I can buy your house.  I could simply take over the existing financing on your property and not have to go though a bank and qualify for a loan and all the other expenses those are eliminated.  So therefore, I can afford to buy your house and take this pain off of you.  And Clinton it’s just that simple.  I have structured it so that you don’t have to have a lot of magic words.  What you have to have is the system and you step yourself into the system and follow the system in detail and that’s exactly what’s going to help you through the process.  Good question.


All right Jeff Pollisk asks, “What is the process of foreclosure in Pennsylvania?  I have a potential customer who is behind seven months and they just got their legal statement a month ago.  How long until they actually have to move once they get that letter?  I’d like to know how fast I need to move on the deal.


Well Jeff, according to your statement here they got the legal statement about a month ago.  Well in Pennsylvania, the lender is required to give notice, and their required to serve that notice, and they’re given up to 30 days to serve that notice.  And then once it goes to that person the owner of the property that owner has 21 days to file a response.  Then once that 21 days is past the lender now the plaintiff has to give them another notice a ten day notice telling them that they have all…you know, “Hey are you going to respond.  You’re supposed to respond.  You haven’t responded yet.  You don’t respond you don’t have any position in court”.  Now Pennsylvania is a judicial foreclosure State meaning that it goes through the Court system.  So, if they don’t answer in that ten-day period then there’s a judgment filed.  Well after the judgment is filed then the Sheriff has to schedule the eviction process basically the sale of the property first and then the eviction.  So, first they have to go through the sale.  Well there’s a writ of execution filed and then there’s a notice of share sale.  And they have to notice the owner of the property the person living there 30 days prior to the sale.  Then they have to schedule that sale.  Then they just…it just goes on and on and on in Pennsylvania.  Generally, it takes two to four months after the filing of the writ to the sale date.  And in Pennsylvania that can even be postponed once and rescheduled through a court order just by having usually the owner of the property go to court and ask for it.  So, it’s a minimum of three months.  There is no right of redemption.  There’s a deficiency judgment allowed and that just means this is a long arduous process and then after all that after the sale at the courthouse steps then there still has to be an eviction process.  And guess what eviction takes a while in Pennsylvania.  And so now, you’ve got that process to go through as well.  So, I would say that Jeff you’ve got a good length of time to work this deal out with the owner of the property.  And in Pennsylvania particularly, the lenders would be very inclined to work with you to do some kind of work out short sale or something else on that deal, because it sucks in Pennsylvania to be a lender.

All right now, let’s see here.  Oh by the way Jeff, you are one of our total package members so you do have our web site and guess what on the back side of your web site you…that I was talking about earlier all you have to do is click on State Law and then click on down to Pennsylvania and click on foreclosure and boom there’s the foreclosures laws for Pennsylvania.  And that’s exactly where I got the information that I just shared with you was right on the back side of your Street Smart Investment web site.  So, again that’s another resource for you guys, because not only have we got the foreclosure laws for all 50 States we’ve also got the landlord tenant laws for all 50 States.  And we’ve got the notarization requirements for all 50 States, and we’ve got the oh goodness we’ve got a copy of the deed for all 50 States, a copy of the mortgage for all 50 States.  All kinds of things that you guys need to be in this business.


Now we’ve got Larry Hogan.  And Larry says, “Lou please take a look at the comments below.  I’m working with a potential tenant who wants a property that I own.  They have all ready had a full blown building inspection done and now what the below items changed in the lease.  Please help.  Larry Hogan.


All right so the person…what Larry has done is sent me the e-mail from the individual who wants to rent his property.  I have been advised to make sure that we have a valid agreement before terminating our lease.  If we can agree with the changes requested below and execute the lease within a day or so of this e-mail then that would give us the five to seven day overlap that would facilitate an easy move to your property.  All right, please address the following issues in the lease and option agreement.

Well Larry, this one is going to hinder me just a little bit, because I’m not sure exactly which ones you used.  But is suspect that you used the lease with…that we use in conjunction with the lease option.  With the option agreement when you are selling.  The one from Volume Nine “Lease Options” so I’m going to use that assumption as we go through here, and then I’m going to say number one of the rental agreement it states.  He is asking the term needs to start September 11th, 2007 and end September 11th, 2010 to coincide with the option to purchase.  Now I’m going to assume Larry that you have worked out that date with the…with the potential tenant or the potential buyer.  If not I would try to negotiate these dates backwards.  And I would say basically many of…if you want me to take the property off the market I cannot take the property off the market for a month.  I can perhaps work with you on maybe ten days.  But all of our agreements begin on the 25th of the month and it will remain to the 25th of the month.  And we’re going to do a proration from whatever date we agreed to, to the other date.  That proration is going to take care of things.  Now the other thing that you can do if he wants it to start on a particular date and end on a particular date you can just say, “We’re actually going to give you a little extra time”.  So, let’s say that you have agreed to September 11th and you just say, “We’re going to set this for September 25th so that’s going to prorate you to the 25th and everything from the 25th to the 25th from that point on.  And you adjustment is going to be stated in the rental agreement and at the end of the rental agreement as well.  It states the details of the proration amount.  Now to clarify Larry what that means is that you’re going to prorate the rent let’s say from the 11th to the 25th and that means that he has already paid you a full months rent in advance.  He did that when he signed the application receipt agreement.  So, you’ve all ready got a full months rent.  What you want from him on the 25th of September is the prorated amount that he owes for that month.  You’ve all ready got a full month so now you want a prorated amount and that should explain it to him and make it clear.

All right number eight remove statements waiving our rights under Georgia law.  Well Larry actually that’s okay, because under the law they can’t really waive their rights under Georgia law.  So, if you take it out that’s not going to hurt you.

Number 11 my wife he says and then he states her name and he need to be given permission to stay with my daughter at no additional rent per person.  I guess what he’s saying is that they’re applying for not only for him and himself but also his daughter to live there.  If not then, you can make a provision in there that his daughter could visit or live there, whatever you want to do.  But any extra people other than that would be at an additional fee.  Larry, that’s totally up to you if you want to add that additional provision about the daughter.

All right number 12 of the lease.  The home inspector could not verify the smoke detectors to be working…in working order.  Larry I would say replace it.  Replace the smoke detector if it doesn’t work.  What is that $4.00 at Home Depot or something like that?  Just put a new one in there.  Don’t make an issue of that.  In fact, what they’re agreeing to is that indeed the smoke detector does work and that they have tested it and they have agreed that it does work.  So, that should take care of you.

All right number 14 of the lease he says that I guess his daughter has a small aquarium with four fish.  We are requesting permission and a waiver of any fees associated with having the aquarium.  Well Larry again that’s completely up to you and no we don’t have a per fish fee.  So, you can waive the fish if you want to, but you go ahead and leave the numbers in there and all you’re going to do is refer to this in the special stipulation section of my…or the additional requirements that we have in the rental agreement to make sure that you make it clear that you are not waiving any other provision of it.  You have special stipulations of the rental agreement.

All right so now we’ve taken care of your customer down to paragraph 14.  Now his issue is paragraph 22.  And the reason folks I am going through this is so that you can deal with these things, because it does come up from time to time.  And I just appreciated seeing so many of these things in one place so I could just address it for you as a training exercise as well.  So, you would know what’s going on as well.

Number 22 he says change that to 72 hours.  Well I think the provision that he’s talking about is what happens on right of access.  And that you have immediate right of access under any circumstances.  What you might if you want to negotiate that paragraph at all you’ll just put you’ll allow 24 hours notice.  Except in the case of emergency, in which case you have full right of access.  And emergency can be defined as water pouring out from under the door, fire, or any other thing like a neighbor contacting you and saying there’s something wrong at your property.  And you have to have right of access to if you haven’t heard from the tenants.  You have to have right of access to find out if they’re God forbid dead inside.

Okay, number 37, adjust to reflect the change in the start date.  I’m unclear as to which version he’s referring to there.  But again, just be careful to what you’re agreeing to there.

All right then he goes into the option.  And he says number four of the option change the date to September 11th, 2009.  Clarify that the option E buyer is not responsible for establishing an escrow account until the property is purchased.  Well that should be, Larry, pretty doggone clear that obviously the escrow account is not established until the property is purchased.  So, if you have to clarify this for this poor guy you can do this in special stipulation section as a clarification.

Number six option.  He says of change statement to acceptance of any late monthly option payment does constitute an automatic waiver of this provision.  No, Larry, under no circumstance do I want you to create a waiver of the acceptance of late payment.  And here’s how you’re going to explain it to the guy.  You’re going to say, “If I allow acceptance of a late payment sometime later in our agreement that then sets up a waiver for the entire agreement.  And no, I’m not going to do that.  Otherwise, if you want me to put that in there then what that means is if you’re even a day late, I must under the provisions of the agreement evict you.  I have no other choice but to evict you.  I cannot under the terms of the agreement accept a late payment and therefore I must evict you.  And so Larry you can illustrate for him how stupid that would be for him to do that and that his late payment does indeed put at risk everything that he’s paid you up to that point.  So, that’s a provision to make him act right.

Number 15, change to $200.00 he says and remove the statement waiving our rights under Georgia law.  Well number 15 refers to the deduction in the option agreement.  There’s a deduction for any repairs he wants.  You probably got $500.00 or $1,000.00 there as he has to pay the first $500.00 or $1,000.00, and he wants you to move that down to $200.00 is what he willing to accept.  Here’s what you could say, “Well the $500.00 provision in there is the deductible and just like insurance when you increase your deductible they increase the premium.  So, we’ll be glad to work with you and we’ll be glad to change the $200.00 to…we’ll be glad to lower it $200.00, but we’re going to increase your option fee.  So, instead of the $500.00 that you’ve agreed to we’re going to go to…when we change it down to $200.00 we’re going to increase it to $1,000.00 on the deductible how about that.  Excuse me we’re going to increase it to $1,000.00 for your option fee or increase your option fee by $1,000.00 how about that.  Doesn’t that make sense”?  And maybe he’ll get it that that deductible is actually in his favor due to the low option fee that you’re charging.

Number…item number 11 on his list he says, “The application receipt agreement stipulates that the reservation earnest money fee will be applied to the first months rent and the a hundred dollars credited to the purchase of the property”.  Well frankly Larry that’s all ready stipulated that that in the first months rent because it says clearly that the first month rent or any month that’s paid on time earns the hundred dollars.  But if he needs to have that clarified you can put that on a special stipulation section of the option agreement that indeed he will earn that hundred dollars.  It was all ready provided for in the agreement.

And then finally he mentions the disclosure statement.  What are these leaser’s obligation under 42 USC 4582(D) those obligations are, Larry, this freaking notice okay.  The notice that the guy is signing is what the obligations are and the notification of lead based paint in your home the pamphlet that notifies them of the provisions about lead based paint in their home.  So, you’re giving them the pamphlet and their signing the agreement and everything should be cool at that point.

He goes on to say, “I appreciate your patience in helping to work towards an acceptable agreement to both parties and look forward to a successful conclusion.

Okay whew all right I hope…I hope this guy’s not a law suit, but you know he’s dotting his I’s he’s crossing his T’s.  He’s making his wife feel very impressed that he knows what he’s doing.  So, you can just make him feel good too that you are cooperating with him on some of these things.  But you heard the ones that I said you can’t do otherwise you’re going to change the agreement on him.

Good I hope all of you enjoyed that little training exercise on how to deal with a tenant who wants to change any of the provisions of the agreement.  Because frankly those are the ones that come up, but they rarely come up.  And I don’t want you guys to even plan that you’re going to have a problem like that come up in your future, because it’s just not a problem.

Wow, we’ve come to the end of another group Q and A it’s amazing that these things go by so fast.  But they do and we’ve got a lot of information here for you.

By the way I want to remind you that you guys have access to what’s called our direct Q and A program and that means that you can fax or e-mail a question any time you want to and get a direct response from our office.  If it’s one that my office cannot answer then they call that a Lou question and I answer that question for you personally to make sure that you get taken care of.  Now that’s available though out the month.  And you do not have to wait for the call.  But guess what included in your direct Q and A is this group Q and A so you also get the benefit of hearing everybody else’s question and those answers as well all through out the month.  So, you get an extra two hours along with your direct program.

Now our next level of support for you is our one on one.  And this is where I mentor you in your business.  I put you back on track and keep you on track, because it’s so easy to get off track and just look at the day as something to do and go down these little rabbit trails and waste your time and waste your energy and not build your business they way you’re supposed to.  So, I’m the one who keeps you on track and you have some responsibilities to me on a monthly basis.  Because, you do have to make a report to me as your coach of exactly what you’re up to and exactly what you’re doing.  And I keep you accountable.

We set up a marketing program and you’re required to follow it.  You are setting up a calendar and you’re required to follow that.  We do that on a one on one.  And you also get the benefit of asking questions any time during the month and the benefits of the group Q and A as well.

And then finally our Pinnacle Program and our Apprentice Program where we actually meet three times a year in a group setting with other Pinnacle and Apprentice members of our Platinum Program and these are our Masterminds where we mastermind as a team your business three times a year.  And you get to help mastermind other people’s businesses.  And you’re able to see exactly what other people are doing.  Not only that you get access to our specially designed e-mail service that is just available for Apprentice and Platinum level students.  Apprentice and Pinnacle level students and you’re able to communicate with one another through out the year as you help one another build your businesses.  You post photos there.  You post questions there about problems that you have in your office.  Problems that you’re having with your marketing problems you’re having with anything else.  And we all mastermind your issues and so you get the benefit of me and the other people that are going through the same efforts that you are on a monthly basis and on a daily basis.  And you will be shocked at how fast your business can accelerate when you are at the Platinum level.

Folks I am telling you right now you won’t believe how fast you can get there if you will just commit yourself to the Platinum Level Program.  It is a remarkable feat and a remarkable response that we see engrossed on folks that on that program.  So, you absolutely positively owe it to yourself, your family, and your business to pick up the phone and you need to get yourself registered to that.  And you need to do that now.  Call 1-800-578-8580 and in that Platinum Program, all those levels of coaching are included as well.  So, I want you guys to take action now get yourself involved.  Get yourself committed to your business and take it to a whole other level.  And you can do that if you commit to that.  The coaching begins at the time you make the commitment, because you have made that commitment that you will get the results that you’re looking for.

Most of our members of our Platinum Program have been able to accelerate their business in just one year.  Listen to me carefully they’ve been able to make at least a million dollars in cash and equity and you can do that too if you will just make the commitment.  We help you through, and you get the benefit of those folks that have built their businesses that quickly and to that level, you get their masterminding as well to help you grow.  Now if you don’t think that’s worth every penny you’re missing the point.  It is all about the coaching.  While I can deliver the tools, the training, and the technology to you until you get the coaching you will flail around like a fish out of water trying to get yourself taken care of.  Now that is what it’s all about to get you to the point where you have success in your business, and success for yourself, and your family and you’re able to achieve your goals.  That’s what Lou Brown is all about.  I want to see you get there, and I want to be there while you get there, and I want to be there when you get there.

Well folks I have enjoyed this call, and I hope you have too.  I hope you’ve gotten a lot of benefit from sharing this hour with me, and I’d like to hear back from you too.  Just send us an e-mail and just tell us what did you think of the call.  We really do appreciate that feedback.  Send it to,  And if you need to speak with any folks in our office it’s,,,, and all the other support staff that we have to support you.  So, whenever you need a question answered just go to that web site and or go and e-mail any time you want to and we’ll get you taken care of whether…depending on the level of support that you have purchased from us.

All right, well I look forward to another great two weeks for you.  I look forward to you buying some property in the next two weeks and selling any property that you have on the market.  I look forward to you having success and may God bless you over the next two weeks.  And we look forward to seeing you very quickly and very soon.  And by the way don’t miss the Maximum Asset Shield coming up.

Oh by the way I have a special treat there’s going to be an auction in the hotel for three days during our event and all of you are going to be at the auction as well.  Because I’ve gotten a special invitation from the people that are giving the auction and you’re going to be able to come to it and see some little side things that I’m going to teach you about auctions while you’re at the MAS event as a bonus session for you.  So, by all means get yourself registered 1-800-578-8580.

And good luck guys I’ll see you soon.