All Forum Posts by: Account Closed

It will be sold at tax sale

We have all used direct mail - and it does pull some leads - but my question is - are you ready to take that call/lead to the next level - that is known as PROFIT - CASH FLOW - MONEY IN YOUR ACCOUNT WITHIN 7 WEEKS?

• What are you going to say first when you receive a call -? (Hello tell me how I can profit from your unsold house?)
• What are you going to say that the other investors haven't said to the seller - I'm a nice person, I go to church, I need money for my kids education, I need to pay my bills.
• I believe you message needs to stand out (not with a yellow letter) I include in my direct mailings my credentials - licensed - bonded - BBB approved - references upon request - 32 degree Mason - years in business - 
• How much do you want - how many bedrooms - the condition - how fast do you want to settle - these are simple questions that don't really mean much! 
• What is important is "HOW MUCH EQUITY is in this deal - and HOW MUCH OF THAT ARE YOU GOOD ENOUGH TO NEGOTIATE FOR YOURSELF!"
• Have you though about how you intend to control the property once you get the lead?
• How are you going to convert you contract to cash - where are you going to find an assignee willing to take over your position?
• Are you a cash buyer - I mean really  cash buyer - anybody can say we buy for all cash as a smoke screen - but as you know most of the so called WHOLESALERS don't have money - they just want to flip ---
• So how do you convince the seller that you are for REAL, that you are HONEST AND FAIR - and that you can solve their problem? You can only fake it for so long!!
• Remember they called you because you said in your card, letter or a childish yellow letter that you WANT their property - so are you REALLY READY to deal - to put yourself in a position to earn an equity profit.
• Do you understand the many ways to flip real estate - do you have a perfect assignment agreement, a skinny contract of sale offer, ll the paper work to make your deal work ?
• Are you ready and knowledgeable to switch your position of "I'll pay you all cash to - oh - I need to control your property so that I can flip it and make money from your distressed situation?

I am sorry to be a little negative with my response - but I get calls all the time from amateurs who fancy themselves as real estate investors because they took a weekend seminar - many of them are just trying to pull off a CON due to really bad information they got from "Know Nothing Real Estate Promoters"!

If you ever need help on doing it the right way - how to handle the lead call or how to close transactions that make money - do send me a note or call - I'd be glad to assist.

A SUGGESTION:  For the time it takes to get envelopes, stamps, write a compelling letter, get a mailing list and wait for a response you could be looking a houses - Try this -

• Use the 50 house rule - look at 50 houses in the community where you want to invest
• Do not make offers - look at and tour as many houses as you can 3-5 per day
• Keep a journal - keep notes of what the seller and the agent tells you - determine the price per S.F. - this will give you an indicator and a comparison of prices in your marketing area.
• Your goal should be to become super knowledgeable on value in your area. And you will if you follow the rules.
• Have agents send you new listings and especially EXPIRED listings 
• Visit the houses of expired listings - an expired listing is a owner with a house that the agent has failed to sell - the seller should still be motivated to sell. Call or better yet - go to the property - ask "Is the house still available - may I look at it?"

Wish you good luck ----- Charles

I understand what you are trying to do - and we do these all the time - my business model is that once I control (control - not own) the property - I will advertise it for public auction - all cash and in "as is" condition. (I own an auction company - you should have a running agreement with a local auctioneer so that when you do the next one you are ready.)

You should be able to flip your controlled property from contract to settlement in nor more than 7 weeks

As for the tenant - sure it is OK for the deed owner to give the tenant notice to vacate - probably  good idea if your assignee is going to live there.

• The most important thing is that you are controlling the property at a discount and that there is enough juice (equity) for you to make money!
• As for your assignee - when they need  a mortgage that complicate things a little since the bank will require an appraisal and may demand certain items be fixed - this will take from your equity profit and complicate things a little (that's why I do an auctions - sold as is for all cash - if there is a hole in the roof, the buyer gets the hole and the roof!) 
• As for the extension you mentioned - you should always expect delays in doing deals like your are doing (I call it Control and Roll - I actually have a recorded program with all the details in it  - I'm telling not selling!)
• I always anticipate a delay - I therefore build into my skinny contract of sale an extension - so that when and if I need it - I don't have to go negotiate with the seller for it. Once the seller knows that you are going to make $20,000 or more, he may be reluctant on signing an extension.
• MY CLAUSE: "The seller agrees to extend this agreement by 25 banking days if necessary to complete title and paper work or to accommodate the assignee".
• So this clause gives you as the contract purchaser another month (banking days) or so to get the deal done!
• As for the bank and the assignee's financing - It is no concern of the bank if you are going to make money on this deal - agents do it all the time - you just need to understand that you need to get paid!
• As far as the bank is concerned the deal is between the deed owner and your assignee - you need to make it clear with the title company that you will be paid your assignment fee, the title company will put that in the HUD-1 settlement papers.
• Do you need a real estate licensed to do this legally - NO. You do need your assignment in perfect order and correct to be able to accomplish your equity profit.
• I wouldn't bother the deed owner anymore with additional requirement - just get the deal done - make sure all in the loop have full disclosures.

I do just under 200 of these a year and have gotten real good at collecting my assignment fees - as long as you are legal and make full disclosures and have your paper work in perfect order - you should be OK.

Charles

Ray, thanks for the vote - did leave a message for you -

Your NOI is about $30,000, ur CAP is about 10% - I'd make a lower offer to increase you CAP -

Go to 

Lowes or Home Depot early in the morning, you'll find all the workman you need, just chat with them and ask for referrals. 

You'll get some amazing quotes. And get your job done in no time at all.

Always pay upon completion of the work.

Skinny Contract is a one page contract offer with only one contingency. Easy to read n understand. Use it all the time to flip houses n commercial properties. 

I am a flipper, I can dress up like an attractive woman but I'd be ugly, I have a lot of experience in the millions of dollars worth of flippong real estate. If you have a wig and some make up I'm your man I mean girl.

I would be interested. Pls call with details. 

Charles 

Stop by our REIA, MDREIA - meeting the first Tuesday of every month in Baltimore - call for details.

Charles