All Forum Posts by: Account Closed

Call me when you can - I have questions about this property.  

Dan - I could be interested in these as an auctioneer - call when you can four one zero 426 six thousand --

Charlie

Call the auction company to ask them if it is bank or seller ordered

• Have your money ready
• Understand the terms,
• Is there a Buyers Premium, how much, who pays settlement cost, is it negotiable?
• Is there interest on the unpaid balance from the date of sale to settlement? (this could get expensive....especially if the settlement is delayed)
• When you are at the auction, stand parallel to the auctioneer so that you can see who is bidding on the property.
• At time unethically auctioneer will make up bids just to get the bidders to bid against themselves. (it happens!)
• Don't be shy about asking the auctioneer who the bidder is (they won't tell, but that is a warning to them that your know what's happening. It will slow down the process.
• Be it known that auctioneers know how to sell! You need to know how to buy.
• Don't get into a bidding war, don't go above your price, WALK --- there will be another auction tomorrow.
• Try to get immediate possession If the property is vacant - time to fix up and flip or rent
• Start settlement immediately, call your title company.
• Read the auction contract before bidding
• Understand all your charges
• Add in to your cost; commission, settlement cost (both sides), holding interest cost, title search and title insurance, insurance, repairs, taxes to be paid in advance.
• No sale? Great - go find the owner and negotiate a deal
• Foreclosure? No sale - great - find a decision make at the bank, talk to the trustee, find the owner (because if it is a foreclosure - the bank does not own it yet - they have to go through a ratification period, this could take months - time for you to negotiate with the seller, object to the foreclosure on technical mistakes and to negotiate with the lender for an assignment of the mortgage.)

This is a wonderful business, have fun, be kind to others - don't be greedy - there is lots of profits to be had for the prepared investor. Charles

 OK - that's great -- you are unemployed - that means you have lots of FREE TIME - I accept your invitation to work with you ----- as a mentor.

• What is the compensation you are looking for? Sounds like you will do all this work for FREE!
  
• I would NEVER ASK an apprentice under my mentor ship to MAKE COFFEE! so don't worry about that - take that off of your list.
• Until we have an agreement - I will give you some instructions and things to start your learning - and pro-active activity --- are you ready?
• FIRST - YOU need to have just a few of my credentials - 74 years old - in real estate and development for 48 years - a Mason - auctioneer and full time investor.
• If it is OK with you - this is how we'll work - I will give you instruction on how to develop real estate leads - the leads call me or you - I interview the lead and determine from their answers if their property has any EQUITY. (this is the only thing we need to negotiate - EQUITY)
• I will send the seller a contract of sale (and a copy to you) - I always use my "Skinny Contract Offer" at a price we both agreed to -  
• Your job will be to get comps - look at the property - make an inspection and determine that the offer I make is at a price where we can make a reasonable equity profit. If not - we will go into second stage negotiations to get a better price.
• Once we agree that the price is right - that is low enough to make an equity profit - we will than use my pro-active auction marketing system (one that I have used for over 20 years) to sell the property  - all cash in as is condition with NO contingencies with settlement in 30 days.
• We will advertise the property for sale for 3 weeks and than have a public auction - so as an example if we control the property for $100,000 and sell it for $120,000 - that means we make $20,000.
• How much do you make if we are successful in finding an assignee?  - you make 50% of the net profit - that is net less advertising or expensive - so if the expenses are $1,000 you would make $9,500.00 and I would make the same.
• The expenses are usually the cost of advertising the property for sale.
• So............... it you are ready to begin creating leads - this is what I suggest you do ---
• Farm neighborhoods to look for FSBO's, send me as many expired listings as you can in the neighborhoods where we are going to invest, Go to housing court 2-3 times a week to listen to the cases and meet landlords after their case is called, run some ads in the local papers (I will design the ad for you), get me a list of all the local auctioneers in the community, put flyers on super market bulletin boards, ask 5 people a day if they know of anyone interested in selling their real estate.
• Look for commercial and business real estate for sale - get me all that information and we'll make a call to get information and make them an offer (you present the offer for us)
• Later in the "Mentor - Apprentice relationship we will advertise on radio.

Any questions?

Charlie

Not listing to my instincts - I should have inquired about that vacant building - now a Walgreen sits on that site 

Not being more aggressive with commercial real estate - 

A great mentor is - or should be -

• A person of integrity 
• Someone with an impressive real estate portfolio 
• Knowledgable using leverage - creative financing - contract engineering - power prospecting
• Someone who doesn't need your money 
• Having credentials - bonded - a professional - insured
• Willing to prove net worth

A mentor's apprentice should -

•  Be ready to accept instructions
• Pay for services
• Be financial ready to make offers - cash on hand - credit lines
• Be available to attend purchase negotiations 

What you should expect and learn from your Mentor -

• Contracts - long form, commercial, skinny contracts, assignments
• Closing - title companies, assignment procedures, understanding settlement summaries, avoiding junk fees
• Clauses - hybrids, joint ventures, delayed settlements, auto-extensions, auto discounts, delayed settlements, second stage negotiations, seller participation, buyer incentives 
• Power Prospecting - targeted direct mail, tax sales, foreclosures, auctions, expired listings, farming. 
• Media marketing - radio, TV, personal endorsements
• You should expect to earn the fee you pay a mentor back within three months or less

I have a great problems - with a friend we developed website that is producing more leads than I can handle - the problem is that they are thousands of miles from my home base.

In 7 weeks I have received over 200 good leads all over the US - I am looking for someone in those area to look at the properties and receive an equity interest for doing some leg work for us.

At this time we have 45 contracts out -

if you are in the following areas - call me - let's see if we can share some equity profits.

Oh, I am an auctioneer and this is how we are going to sell these properties - "as is" for all cash.

Augusta, GA - 

Utica, IL - 

La Salle, IL 61301

Clinton, IO 

So --- if you are in these area - call me for the address - they are under contract at this time - we control those property with a delayed settlement date.

Thank you for your help.

Charles Parrish - Auctioneer

Let's assume that your relative is going to put up the money for you to buy a property that has a great potential profit.

• I would suggest that he is co-purchaser with you - with a simple agreement that he gets 30% of the NET PROFITS - make sure it is NET!
• If your relative does not want in that position of an investor - just sign a mortgage with him for the amount you need - if he is a relative - I'd say do not record the mortgage (save on transfer cost) - he always has the option to record that mortgage in the event you go belly up.
• You should package you deal - make it very clear - what the potential equity profit is going to be - and
• How you are going to liquidate (sell) the property for. Make NO mistakes here.
• 30% is an expensive partnership - all the relative is doing is putting up money - your are doing the heavy lifting and taking the risk.
• If you are smart enough to know how to negotiate a great deal - you might want to --
• Control a property with delaying tactics - like
• Using banking days 
• Subject to financing
• Extend settlement date - like 90 banking days
• Always get right of possession
• A delayed settlement
• Subject to assignment by public auction
• You DON'T HAVE TO  buy real estate to make money - learn how to
• CONTROL real estate and flip - flip - flip
• A delay settlement gives you time to do your magic FLIP FOR CASH
• You should consider the public auction method of marketing.
• Do you really need your relative's loan? 
• Go get yourself a credit line - it's much less expensive than 30%

Wishing you good luck - Charles

 Thank  you - Charlie