A CPA and owner of a one-person accounting firm, Paul Deltorio has spent the last twenty-five years crunching numbers and living through stressful tax periods. Real estate investing had always been on his radar screen, however, and after meeting real estate coach and investor Jim Gage at a ForeclosuresMass Turning the Key event, Paul decided to begin a one-year real estate coaching program in order to learn the ropes.

Most first-time real estate investors are happy if they close one or two deals when starting out. Paul closed ten deals his first year - and is thinking of hanging up his accountant hat! He explains how coaching helped him achieve his success.

ForeclosuresMass Monthly: Paul, let's talk about your first deal. How did you find it and what were your challenges?

PD: My first deal was a lease option for a foreclosure. The people who owned the property had been transferred out of state and were holding two mortgages - one being a bridge loan - and couldn't manage both of them, so they let the house in Massachusetts go into foreclosure. I found the property via a foreclosure list but it had also been put on the market by a Realtor(r).

My biggest challenge was knocking on the door! I was very nervous - I didn't know these people, and I was very worried about being beaten up or shouted at. When the owners answered the door, I was very respectful and after introducing myself said something like, "I'm here to see if I can help you. I'll need just ten minutes of your time," and presented my business card. I tried to sympathize with the owners without looking phony.

This Article is an excerpt from the 16 Page Print Edition!

Are YOU getting the print edition of ForeclosuresMass Monthly?

Get a FREE copy* of this month's newsletter (worth $49.97!) when you pickup your Real Estate Investors ONLY Free Gift (worth over $267.97!)

First Name:

Email Address:

* Next 37 17 investors only!

We ended up doing a "sandwich" lease-option. I have a lease-option on the property and sandwiched a renter into the home at a higher rate. I put the deal together in two weeks and made $12,500 in non-refundable option considerations. If the renter decides to exercise his option, I will make $22K on the back end.

FMM: How did you know this was a good deal?

PD: This is what you learn when you work with Jim Gage. Through the program, you get all the information you need about the real estate investing process. You don't go into your first deal blind. And, Gage actually coaches you on how to do door knocking, which questions to ask and the negotiation process.

So, when I knocked on this particular door, I already had scenarios lined up. I approached the encounter from the perspective that I was there to help them save their home. Maybe I could negotiate forbearance with the bank because they had had a slight hiccup in their payment history. If that wasn't the case, I knew I would suggest a lease option, then a short sale, and then legal counsel and bankruptcy, depending on their situation.

FMM: So it sounds like you were going in with the idea that you were helping these homeowners, not to simply purchase a property.

PD: Correct. I wanted to do what was best for them, not what was best for me. Once we started talking, I learned they weren't that far behind in payments. I knew I could take the option consideration money and cure their arrearages with the bank. It was a win-win for everyone.

FMM: How did you end up doing nine more deals?

PD: Gage teaches three models of what he calls "leverage investing" - short sales, lease options and probate investing. I chose lease options with foreclosures. I set a goal to close one deal a month for the coming year. My objective was to make enough income to replace my fulltime income and then some.

From July 2007 to July 2008, I closed ten deals - two short of my goal, but that's ok. I made enough income that I can now seriously consider going part-time - or even no time! - with the accounting. I could not even imagine this success a year ago. It's been amazing!

FMM: Did you know anything about real estate before you started the coaching program?

PD: I knew the logistics of real estate due to being an accountant, and I knew about the concept of "no money down," but I had no clue how to apply anything. Before I met Jim, I had been attending REIA meetings and investigating real estate gurus and their programs. However, although many of them offer real estate programs, they don't actually mentor you - and they want thousands of dollars.

I found Jim's Turning the Key presentation refreshing because he didn't have a bunch of products to sell at the back of the room.

When I initially bought the one-year coaching program from him, I have to admit, I was quite skeptical of the whole thing. And, I didn't make regular time to pursue real estate investing until I closed my first deal - then I made the time!

FMM: What are your future goals?

PD: I want to increase the number of deals by 50% - or 15 deals for the next year. I keep myself motivated by watching the nightly news and telling myself that my accountant income won't be enough to cover cost-of-living increases.

FMM: Do you have advice for people who haven't completed their first deal?

PD: It's really important you apply what you learn and then take action. One guy I know spent $25K in real estate educational programs and still hasn't done a deal. It's also very important that you mentor with someone who is active in the industry - by active, I mean, actually buying and selling. You want this person to know what you're facing and offer you advice on how to overcome any challenges you encounter.

Paul Deltorio is an accountant and real estate investor based in Palmer, Massachusetts. He can be reached by phone at 508-841-4061.

Did you like this article? You May Also Like:

	Negotiation Skills: Developing Strong Relationships... A Key to Success with your Contractors Richard Cohen, Negotiation Coach and Consultant As a property investor, you're challenged by the sheer number of contractors with whom you must negotiate. It can be a struggle, but as Richard Cohen explains, it doesn't have to be. Build strong relationships with these folks and watch your negotiations go smoothly.
	Success Strategies: The Top Three Fears That Prevent You From Making that First Deal Kelle Sparta If you've yet to close on your first deal, it could be that something is blocking you. According to author, trainer, and coach Kelle Sparta, people usually have the following fears when it comes to real estate investing: they think they don't have enough information, they're afraid they'll lose money, or they believe they aren't the real estate investing type. Read her article to find out how to conquer these common, yet debilitating, fears!
	Interview with the Expert: The Nitty-Gritty Rehabbing Tips You Must Know Kevin Lacasse What's the biggest mistake real estate investors make when it comes to rehabbing properties? According to expert rehabber Kevin Lacasse, it's paying too much for a property! Read his tips for figuring out how much you should pay - and how to budget for those unexpected cost overruns.
	Interview with the Expert: Using Syndication to Fund Multi-Family Transactions Kate Dobens, Clear River Partners, LLC In the fall of 2006, Kate Dobens attended a training seminar about owning and operating apartments. Now, a year and a half later, she and her husband manage $18 million in multi-family assets - thanks to syndication. Read her advice about getting started in syndication - and how you can use it to consider deals that are double or triple in size.
	Interview with the Expert: Helping Families Get Back on Track Financially After Foreclosure Jennifer Matthews, Founder, Creating Financial Literacy, LLC You can play a key role in helping clients get back on their feet both financially and emotionally by understanding the challenges they face. According to Jennifer Matthews, an advocate for those who have been through foreclosure, often times people lack basic financial literacy and management skills - the lack of which contributed to their financial woes. In this livley article, Jennifer Matthews provides the essential tools consumers need to increase their financial literacy, repair their credit, and recover from foreclosure.
	Interview with the Expert: Know How to Use Your Contingencies David Camiel, Attorney If you think you can use an escape clause to get out of a real estate contract, think again. Because the courts look unfavorably at escape clauses, contingencies are a better way to protect your interests - as either the buyer or the seller. Veteran real estate lawyer David Camiel explains the legal ins and outs of real estate contingencies and how they can work to your advantage.
	Feature: How Real Estate Investors Make Big Money with Syndication Eileen Schwartz, Real Estate Investor Want to get in on a little "secret" real estate professionals have long known to offer a very considerable return on investment? Eileen Schwartz shares her knowledge of real estate syndication, a potentially lucrative strategy that involves forging a partnership with a group of shareholders to invest in multi-million-dollar properties. This introduction to real estate syndication provides everything you need to know to get started.
	Success Strategies: What Banks See When They Look at Your Credit File Tammi Koza and Carl Phinney, Family First Mortgage Corp. Most people know the credit score is the first thing the bank looks at when reviewing a credit file, but did you know lenders also look at a host of other data? In this article, Tammi Koza and Carl Phinny explain why you need to view your credit file the way a bank does if you're serious about investing in real estate.
	Technology Corner: Generate More Leads With Text Messaging Dylan Schleppe You know the problem with flyer boxes - you're forever filling them up only to find out two days later they're empty again. Wouldn't it be great if you could eliminate the flyer box problem - and give your prospects property info when they want it? Now you can with SMS (also known as text messaging). In his article, SMS technology expert Dylan Schleppe talks about the state of SMS and how real estate companies and investors are using this technology to generate leads 24/7 - without breaking the bank.
	Feature Article: Talk Like a Contractor to Explode Your Rehabbing Profits Paul Esajian What's the number one fear that prevents investors from rehabbing properties? The potential nightmare of working with contractors! The star of A&E's popular "Flip this House," TV show, Paul Esajian gives you three steps for establishing expectations with contractors up front. Learn how to talk their language - and reap the benefits!