All Forum Posts by: Account Closed

Some ideas - sell at public auction - for all cash "as is"- what you see is what you get -

• Contact several real estate auctioneers in your area - get their opinion of value and the cost for advertising to sell it at public auction - you can put a reserve price on it - or really attract attention and offer it at ABSOLUTE auction - 17 percent more people will attend an absolute sale than one at a reserve.
• Note: Auctioneers are realist - they will tell you like it is - because within 3-4 weeks they have to perform - that is sell your property at a price they suggested - or more. Not to pick on agents (I am a broker), but there are times when they will inflate the estimate of value just to get the listing and will request a reduction after a period of time - A really great agent will tell you exactly what he thinks it will sell for - even if it is well below what you expect.
• You could offer it for sale with 100% owner financing (you'll get more interest) - create split notes then offer the notes for sale at a discount -YOU GET THE CASH! Or you could use the created notes as down payments on cash flow rentals. (that's one way to have your way - little creative - but it works once you understand the necessary steps to achieve that transaction.
• On above try to get additional collateral and a co-signer - YOU WANT security - you want to make those notes attractive - esay for a seller or note discounter to accept.
• Build in a balloon payment - contract candy for end note buyer makes the  balloon attractive. 
• Up the interest a little - make a delayed payment for end buyer - suggest a stutter clause -
• Advertise to trade - AD: "Will trade X acres in Smith County for  cash flow real estate - houses -commercial - Call
• On the above you can make the trade and either keep the cash flow real estate or have a contingency that it will be sold at time of settlement for cash. Just another way to get to the cash.
• Talk to builders - you contribute the land - he builds the house and when sold you get paid off - maybe a little more then you expected.

Charles Parrish ---

That is a good rental area - as long as you have the skills to deal with tenant management - I own several houses in that area - I do have one on the market at this time it is 4118 Balfern - the listing is about to expire - glad to chat with you about the area and how to find some cheap deals.

Call when you can - Charles Parrish

 Tom - Thank you for those kind words - I appreciate it. You know over the years of "Trial and Terror" learning this business - taking courses, reading books, listening to tapes and experimenting in the field of investing - basically paying dues - I look back to the years when I didn't know an "escrow from a option - I am glad now that the struggle for knowledge and wealth has finally paid off (it is about time at 74 years old).

I have lots of empathy for those just starting - I gain great pleasure helping and partnering with others nationwide -

Thank you again - Charlie

I think all you need is a title company to close your transactions - no don't need an account at this time - most title companies have lawyers to close your transactions -

• You should make sure that you buy real estate at a giant discount - 
• Understand the management process - learn how to be a good landlord - a tenant is a customer - the tenant is the person who will pay for your mortgage - treat them well.
• Find discounted real estate from landlords who find themselves in rent court -
• Start to deal directly with owners - I don't think you should depend on agents selling retail properties - you need to go under-ground for great deals -
• Tax sales
• Public Auctions
• Run print ads and radio commercials
• Internet - 5 weeks ago I created an internet site - I have received over 200 leads - have 70 offers out there and 15 ratified contracts - learn those systems and you will do well.
• Expired listings - go knock on some of those doors - an expired listing is  FAILURE of property to sell - I am sure the sellers are not happy - go find them and solve their problems.
• Direct mail to commercial properties owners - commercial buildings can be  great profit center - when you advertise for real estate - signs - internet or mailings always advertise - WANTED REAL ESTATE - houses - commercial and non-conforming properties - all cash -as is - no commission. Call  ------

Hope these ideas will help you - call if you want me to give you some more tips.

Charles

I own a Auction Company in Baltimore. I may be able to give you some insights and suggestions - we flip real estate nationwide using the auction method of marketing.

All auctions are sold in "as is" condition for all cash - that is the transaction is NOT contingent on financing.

You should contact the auctioneer for the terms of the sale. Have them mail you a bidder package so that you have time to read and understand it - it will contain a sample of the contract you are expected to sign if you are the successful high bidder and it will also have other disclosures in it.

IMPORTANT --- Have your financing lined up - Be ready to do business

You should have a credit line - so that you are able to write your own loan. Alternately put together a friendly joint venture - where your friends or relative agree to contribute X $ to be used for real estate investing.

Go look at the property (ask auctioneer if you can get in before the sale - NO not an hour before - well in advance of the sale) is it vacant - needs work - can you get inside?

Try to contract the sellers - maybe you can make a deal before the auction - and cancel the auction and cancel your competition.

• Maybe buy it subject to the mortgage from the sellers.
• Look at other listings in the area - get a good feel for values
• When at the auction (provided your cash is lined up), don't jump to start bidding -

wait for the process to start - see who your competition is first - listen to the stated terms, talk to others at the auction - get cards and names - ask "what do you think it is worth." don't bid until the last seconds if that last bid was within the number you want to pay.

There are times when other bidders will be vocal about the needed repairs as they inspect the property - they do this to discourage their competition. Pay them no attention.

• Is it a reserve auction, an absolute auction - foreclosures - tax sale etc. get the answer to that question
• Play Dick Tracy (if you know who he is) find out WHY it is an auction sale; back on payments, estate, owner ordered auction?
• If it is a F/C - why - how many payments back
• You need to track down the owners - ask - WHY - make an offer

If it is a F/C and does not sell - go directly to the Trustee to make a cash offer -

• Talk to the neighbors - ask WHAT'S THE PROBLEM - be a problem solver.
• Contract the lender - if it is a non-performing mortgage - ask if you can buy the mortgage.
• You have enough time - get to the BOTTOM LINE as fast as you can -
• Make sure you are ready - have your funds available
• If it was listed talk to an agent - get the listing history of the property - was it listed - for how long and how much - how often has the price been reduced and how many days was it on the market?
• Talk to the listing agent - he will be able to give the history and maybe the owners name and contact number - always ask - "Are you still accepting offers on this property?"
• WHERE TO STAND at the auction - make sure you are parallel (on the same plan) with the auctioneer - so you can see what he sees - you want to make sure that the bids are real and not ghost bids -
• Fee free to stop the bidding to ask questions - you want to slow the process down -
• If someone is bidding against you - it is OK to ask if that bidder is qualified to bid - do they have their cash or certified funds?
• If there is a no sale - ask the auctioneer for the contact information of the seller - trustee or bank representative. Contact them.
• Get to the auction early - park where you can see who is getting out of the auctioneer's car - sometimes they will bring a straw person to RUN THE BIDS - that is to get the audience excited and to bid - often times there are no bidders and the straw person trys to get the audience excited about bidding.
• If the auctioneer or their associate is on the phone during the auction - sometimes they pretend to have a bidder - you have a right to ask who they are and if they are qualified to bid - probably not!
• Call the auction company in advance of the sale - ask what the reserve is - how much will they accept now if you make a cash offer?
• Ask to be on the auctioneers mailing list.
• Get pre-approved with the auction company to use your personal or business check.
• Ask the auctioneer if they will pay you a referral fee if you can get them some business. Any deals you can't make - refer them to the auction company and make a fee.
• Always look for PROFIT CENTER opportunities - referrals fees from investors or others - always be alert to profit opportunities.

IDEA for cash flow ----- Work a PIGGY BACK PROGRAM ---- get on all mailing list of auction companies in your area - where there are auctions that are being held in front of the property --

• Contact owners of properties in the neighborhood where there is going to be an auction - Script: letter or in person - "As a public and private service - I wanted to let you know there is going to be a real estate auction at 123 Main Street at 2 pm - you may want to attend - if you would like to sell your property at 2:15 pm I can make that arrangements for you - oh - there are no commissions or settlement cost and no advertising fee."
• Refer that deal to the auction company or make an offer on the property.

So..................... I hope some of these ideas will help you the reader - it is OK to call if you have questions or if you want to do an auction deal in your community.

Bigger Pockets is a great place to learn these exciting money making ideas.

Charles

As an auctioneer I will tell you that we sell real estate at auction and some of the buyers get a great equity and make an attractive profit.

When you find a property going up for auction that you are interest in - you may want to follow some of the following points - this is a post I recent wrote on BP. 

I own a Auction Company in Baltimore. I may be able to give you some insights and suggestions - we flip real estate nationwide using the auction method of marketing.

All auctions are sold in "as is" condition for all cash - that is the transaction is NOT contingent on financing.

You should contact the auctioneer for the terms of the sale. Have them mail you a bidder package so that you have time to read and understand it - it will contain a sample of the contract you are expected to sign if you are the successful high bidder and it will also have other disclosures in it.

IMPORTANT --- Have your financing lined up - Be ready to do business

You should have a credit line - so that you are able to write your own loan. Alternately put together a friendly joint venture - where your friends or relative agree to contribute X $ to be used for real estate investing.

Go look at the property (ask auctioneer if you can get in before the sale - NO not an hour before - well in advance of the sale) is it vacant - needs work - can you get inside?

Try to contract the sellers - maybe you can make a deal before the auction - and cancel the auction and cancel your competition.

• Maybe buy it subject to the mortgage from the sellers.
• Look at other listings in the area - get a good feel for values
• When at the auction (provided your cash is lined up), don't jump to start bidding -

wait for the process to start - see who your competition is first - listen to the stated terms, talk to others at the auction - get cards and names - ask "what do you think it is worth." don't bid until the last seconds if that last bid was within the number you want to pay.

There are times when other bidders will be vocal about the needed repairs as they inspect the property - they do this to discourage their competition. Pay them no attention.

• Is it a reserve auction, an absolute auction - foreclosures - tax sale etc. get the answer to that question
• Play Dick Tracy (if you know who he is) find out WHY it is an auction sale; back on payments, estate, owner ordered auction?
• If it is a F/C - why - how many payments back
• You need to track down the owners - ask - WHY - make an offer

If it is a F/C and does not sell - go directly to the Trustee to make a cash offer -

• Talk to the neighbors - ask WHAT'S THE PROBLEM - be a problem solver.
• Contract the lender - if it is a non-performing mortgage - ask if you can buy the mortgage.
• You have enough time - get to the BOTTOM LINE as fast as you can -
• Make sure you are ready - have your funds available
• If it was listed talk to an agent - get the listing history of the property - was it listed - for how long and how much - how often has the price been reduced and how many days was it on the market?
• Talk to the listing agent - he will be able to give the history and maybe the owners name and contact number - always ask - "Are you still accepting offers on this property?"
• WHERE TO STAND at the auction - make sure you are parallel (on the same plan) with the auctioneer - so you can see what he sees - you want to make sure that the bids are real and not ghost bids -
• Fee free to stop the bidding to ask questions - you want to slow the process down -
• If someone is bidding against you - it is OK to ask if that bidder is qualified to bid - do they have their cash or certified funds?
• If there is a no sale - ask the auctioneer for the contact information of the seller - trustee or bank representative. Contact them.
• Get to the auction early - park where you can see who is getting out of the auctioneer's car - sometimes they will bring a straw person to RUN THE BIDS - that is to get the audience excited and to bid - often times there are no bidders and the straw person trys to get the audience excited about bidding.
• If the auctioneer or their associate is on the phone during the auction - sometimes they pretend to have a bidder - you have a right to ask who they are and if they are qualified to bid - probably not!
• Call the auction company in advance of the sale - ask what the reserve is - how much will they accept now if you make a cash offer?
• Ask to be on the auctioneers mailing list.
• Get pre-approved with the auction company to use your personal or business check.
• Ask the auctioneer if they will pay you a referral fee if you can get them some business. Any deals you can't make - refer them to the auction company and make a fee.
• Always look for PROFIT CENTER opportunities - referrals fees from investors or others - always be alert to profit opportunities.

IDEA for cash flow ----- Work a PIGGY BACK PROGRAM ---- get on all mailing list of auction companies in your area - where there are auctions that are being held in front of the property --

• Contact owners of properties in the neighborhood where there is going to be an auction - Script: letter or in person - "As a public and private service - I wanted to let you know there is going to be a real estate auction at 123 Main Street at 2 pm - you may want to attend - if you would like to sell your property at 2:15 pm I can make that arrangements for you - oh - there are no commissions or settlement cost and no advertising fee."
• Refer that deal to the auction company or make an offer on the property.

So..................... I hope some of these ideas will help you the reader - it is OK to call if you have questions or if you want to do an auction deal in your community.

Bigger Pockets is a great place to learn these exciting money making ideas.

Charles

Here is an answer to a post I recently wrote - maybe some of these points will help you - You might want to talk to the PR before the auction to see if they would accept X -$.

If you are the high bidder - see if you can get immediate possession of the property - tell the estate you want to clean it up so that you will be able to get a good appraisal. 

One of the options you have - if you get immediate possession before settlement - is to market the property for MORE than you paid for it - you could make a quick $10-20,000 within a few weeks - there are lots of moving parts in this technique - but if you call me - I will give you some ideas.

I own a Auction Company in Baltimore. I may be able to give you some insights and suggestions - we flip real estate nationwide using the auction method of marketing.

All auctions are sold in "as is" condition for all cash - that is the transaction is NOT contingent on financing.

You should contact the auctioneer for the terms of the sale. Have them mail you a bidder package so that you have time to read and understand it - it will contain a sample of the contract you are expected to sign if you are the successful high bidder and it will also have other disclosures in it.

IMPORTANT --- Have your financing lined up - Be ready to do business

You should have a credit line - so that you are able to write your own loan. Alternately put together a friendly joint venture - where your friends or relative agree to contribute X $ to be used for real estate investing.

Go look at the property (ask auctioneer if you can get in before the sale - NO not an hour before - well in advance of the sale) is it vacant - needs work - can you get inside?

Try to contract the sellers - maybe you can make a deal before the auction - and cancel the auction and cancel your competition.

• Maybe buy it subject to the mortgage from the sellers.
• Look at other listings in the area - get a good feel for values
• When at the auction (provided your cash is lined up), don't jump to start bidding -

wait for the process to start - see who your competition is first - listen to the stated terms, talk to others at the auction - get cards and names - ask "what do you think it is worth." don't bid until the last seconds if that last bid was within the number you want to pay.

There are times when other bidders will be vocal about the needed repairs as they inspect the property - they do this to discourage their competition. Pay them no attention.

• Is it a reserve auction, an absolute auction - foreclosures - tax sale etc. get the answer to that question
• Play Dick Tracy (if you know who he is) find out WHY it is an auction sale; back on payments, estate, owner ordered auction?
• If it is a F/C - why - how many payments back
• You need to track down the owners - ask - WHY - make an offer

If it is a F/C and does not sell - go directly to the Trustee to make a cash offer -

• Talk to the neighbors - ask WHAT'S THE PROBLEM - be a problem solver.
• Contract the lender - if it is a non-performing mortgage - ask if you can buy the mortgage.
• You have enough time - get to the BOTTOM LINE as fast as you can -
• Make sure you are ready - have your funds available
• If it was listed talk to an agent - get the listing history of the property - was it listed - for how long and how much - how often has the price been reduced and how many days was it on the market?
• Talk to the listing agent - he will be able to give the history and maybe the owners name and contact number - always ask - "Are you still accepting offers on this property?"
• WHERE TO STAND at the auction - make sure you are parallel (on the same plan) with the auctioneer - so you can see what he sees - you want to make sure that the bids are real and not ghost bids -
• Fee free to stop the bidding to ask questions - you want to slow the process down -
• If someone is bidding against you - it is OK to ask if that bidder is qualified to bid - do they have their cash or certified funds?
• If there is a no sale - ask the auctioneer for the contact information of the seller - trustee or bank representative. Contact them.
• Get to the auction early - park where you can see who is getting out of the auctioneer's car - sometimes they will bring a straw person to RUN THE BIDS - that is to get the audience excited and to bid - often times there are no bidders and the straw person trys to get the audience excited about bidding.
• If the auctioneer or their associate is on the phone during the auction - sometimes they pretend to have a bidder - you have a right to ask who they are and if they are qualified to bid - probably not!
• Call the auction company in advance of the sale - ask what the reserve is - how much will they accept now if you make a cash offer?
• Ask to be on the auctioneers mailing list.
• Get pre-approved with the auction company to use your personal or business check.
• Ask the auctioneer if they will pay you a referral fee if you can get them some business. Any deals you can't make - refer them to the auction company and make a fee.
• Always look for PROFIT CENTER opportunities - referrals fees from investors or others - always be alert to profit opportunities.

IDEA for cash flow ----- Work a PIGGY BACK PROGRAM ---- get on all mailing list of auction companies in your area - where there are auctions that are being held in front of the property --

• Contact owners of properties in the neighborhood where there is going to be an auction - Script: letter or in person - "As a public and private service - I wanted to let you know there is going to be a real estate auction at 123 Main Street at 2 pm - you may want to attend - if you would like to sell your property at 2:15 pm I can make that arrangements for you - oh - there are no commissions or settlement cost and no advertising fee."
• Refer that deal to the auction company or make an offer on the property.

So..................... I hope some of these ideas will help you the reader - it is OK to call if you have questions or if you want to do an auction deal in your community.

Bigger Pockets is a great place to learn these exciting money making ideas.

Charles

This sale is contingent upon successful third party assignment anytime before settlement - it is understood that if an assignee is not found - this offer is subject to cancellation.

The above is a clause we have been using in our "skinny contract" for years - but understand that this is just part of my contract offer - you would need to understand the sense and meaning of other statements in our contract to have a feel and taste of the true favor of the offer. 

A well written contract offer of sale in my opinion is " A Work of Art"

Your offer is going to speak for you when you are not present to defend it - it could be construed and misunderstood by the seller's lawyer, a judge, a jury,  relatives, agents and others the seller seeks for consul. 

Don't be tricky - forget the long legal terms - be clear and be concise - this is why I use my "Skinny Contract of sale."

Writing offers is a serious business - you need to know and understand every word in that offer and most importantly -- you need to understand disclosures and have a sense of fairness.

Also understand that agents DO NOT write contracts (unless they are lawyers) they can ONLY fill in the blanks on a standard approved contract of sale (usually 20-35 pages).

You can design your own contract if you are presenting yourself.

When making offers nationwide -

• I always have "Hybrid" clause (sellers love this)
• Use banking days (nothing goes as expected in real estate deals - you need time to get to the profit)
• A built-In extension (you need time and don't want to beg for an extension.)
• Financing clauses - (the sweeter you can make the deal - the easier it will be to assign your contract - we call it CONTRACT CANDY - ask for everything - the furniture - car in the garage - lawn equipment - money back at settlement - paint the house - delayed settlement etc.)
• A memorandum of understanding - sellers need to understand your motivation and what you are trying to accomplish and who you are - do you have a license, bonded, insured - references - testimonials - etc. remember you are a buyer - sellers look to you to satisfy their financial needs or real estate problems - don't be cavalier about your actions - leave ego at home.  
• Cover letter ( to cover your butt - put everything in it that you expect to accomplish in this newly formed relationship )
• A drop dead date and time to accept (accept now or forget about it!)
• Who pays what - important - spell this out.
• What happens if the assignment is not successful clause - clear this up in the beginning.

Charles - thanks for reading - just my opinion.....

To be safe - the property needs to be transferred to the buyer subject to the existing mortgage - the title company will pick up any liens or judgement - once the property is in another name - no problem. There could be an issue with the due on sale clauses in the mortgage that is going to be wrapped.

WOW - this reminds me of me 40 years ago when I had second thoughts about investing - everyone wanted to discourage me from getting into the real estate investing industry - as you say - 

I know how you feel -

There came a time in my quest for real estate wealth - I said NO - NO - I am finished with the "Road Blocks" with the bloody gate keepers - with relatives telling me to get a job - NO MORE!

One of the problems with the education system in the US is that they teach kids to get an education and get a job - they do not talk about being an entrepreneur - get a JOB - why ---- when there is so much money to be made by being an entrepreneur - working your own hours - doing what you like to do - working for yourself - having fun and knowing that you can make money using systems and your creativity -

Many years ago as a real estate agent and wanting to be an investor - I soon discovered that the gate keepers (those working at a JOB) wanted to STOP ME from earning profits - so I invented and still use a system called Control and Roll (Bigger Pockets - I am telling not selling - please don't delete this post)

Basically I use a Power Prospecting System to unearth real estate equities (also known as wholesaling), advertising the property for 3 weeks and selling (ASSIGN) it for all cash, fast settlement and in  "as is" condition - using the auction method of marketing.

Kelli - I feel your pain - I understand your frustration - stick with it and ignore the negative relatives and the gate keeps  - flip properties until you have enough money saved to build a real estate portfolio. 

Best - Charles