As I talked about the other day in the post about seller financing, you can sell houses really quickly using owner financing – aka seller financing…

…But what most people don’t know is that you do NOT have to continue to receive those payments over a long period of time, making this strategy an extremely useful and profitable quick turn real estate investing strategy.

How?

Because once you owner finance a mortgage note, then you can sell that mortgage note for cash. Yes, you will have to sell it at a discount, usually 6-13% or so depending on a couple of factors about your buyer like: down payment received, credit of borrower, time on job, and debt to income ratio, but you WILL get cashed out within 30 days.

This allows you to owner finance houses, and then get all cash within a very short amount of time by selling your mortgage note to a mortgage note buyer or broker.

It’s kind of similar to the requirements that banks have, EXCEPT, there’s a huge difference. The company or individual that will be buying your mortgage note doesn’t care about all the red tape that banks do, doesn’t have to abide by all the same regulations, and they are not as problematic. If there is an issue, you may have to discount the note a little more, but you can still get cash.

The better your note, the less of a discount you have to take. If the borrower has better credit, a larger down payment, longer time on job, or better debt to income ratio, then you’ll get more cash for your note and you won’t have to discount it as much.

Why do they buy notes? For the same reason that banks make loans. Let’s take a $200,000 loan at 7% interest. The bank will make about $279,016.00 over 30 years of profit on one loan. If one company only did 1,000 loans, they would make $279,016,000. That’s a lot of money.

This is why they don’t want houses back. They don’t want to foreclose on them. They are not in the real estate business, they are in the loan business. This is why mortgage brokers will buy your owner financed mortgages.

They even give you different options. You can sell all of the note, some of the note, or the whole thing. They work with you on whatever it is you want.

Quick Turn Owner Financing

Here’s the deal: You run an ad that says, “Owner Will Finance, No Banks”. Don’t forget to put a few other buzz words that will help sell the house and your phone number.

Then, when negotiating the deal, you really need to get 20% down. This is the most important factor in selling the note, next to their credit score.

Now, to get their credit score… you can have them pull a new report, you can become a part of a credit union, or you can have a mortgage broker or loan officer do it. This might cost a small fee, but it’s worth it. Just make sure that before you close the deal, you do pull the credit.

Anyway, I hope this little strategy makes you a ton of money and adds a little more fire to your investing arsenal.

To Your Immediate and Lasting Real Estate Investing Success,

Kenney

P.S. Oh yeah, the reason it takes about 30 days to cash out now is because that’s how long most mortgage buyers want the note in place before they will buy it. Once the real estate market gets back into order, you’ll be able to sell the note, probably, in less than a couple of days.

Technorati Tags: owner finance, sell mortgage note, mortgage note buyer, seller finance, real estate investing, the 22 month retirement

Why?

Because you can control the most beautiful and expensive properties, for only $10, and it’s an easy pitch.

“I will help you sell your house, you don’t have to take it off the market, and I will use my time, my money, and my resources if your house qualifies…”

You’re not really selling them on anything. Either they want your free services or they don’t.

Options have an extreme upside and no real downside.  Options allow even the most humble beginners to the most experienced investors the opportunities to make a lot of money, without risk, in a relatively short amount of time.

So, what is an option?

An option, is a lease option, but without the lease.  Options are an investment strategy where you have a negotiated price agreement with the seller that you can exercise your right to buy at any time during that agreement.

Why is This Powerful?

Because once you negotiate a price that the seller will allow you to buy their property at, you can turn around and sell the property at whatever price above, and pocket the difference.

Example: You negotiate a purchase price with a seller for $350,000 for a house worth $425,000 and you ONLY give them $10 to option the property.

Why?

Because you are helping them sell the property.  A real estate agent wouldn’t give them any money, and most of the time, they won’t even market the house, AND they’ll have to pay a 6% commission on a house that might not sell for 6 months.

Then, you run an ad like: By Owner – Worth $425,000 Beautiful 4/3  $370,000 or Home To Be Sold To The Best Reasonable Offer – and other house selling buzz words.

This ad will generate calls.  The idea here is to generate calls from interested, motivated buyers.

In order to sell this house quickly, you’ll want to offer them a deal that they cannot pass up.  This is how you sell houses fast.  The purpose of quick turn real estate is to get in, get out, get a check, with little to no risk.

You still make $20,000, so don’t get greedy here.  Take what you can get and get out.  Everyone wins here.

To Your Immediate and Lasting Real Estate Investing Success,

Kenney

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Technorati Tags: options to buy homes, options, real estate investing

Seller financing is simply the art of getting a seller to finance a real estate deal. In this case, the seller is the bank.

They will negotiate a down payment (if any), they will allow you to make payments to them at an agreed upon rate and length of time, and you can even negotiate the interest rate (if any).

Have you noticed the theme here? Everything is negotiable and there is NO banks involved?

That means you don’t have to go through a mortgage approval process.
That means you don’t have to make large (if any) down payments.
That means you can find rates and terms that make sense for both you and the seller.

What is really cool is that the time in which you can get one of these done is a couple of hours to a couple of days. That’s it!

Yes, you could start looking for a house in the morning and by the end of the day, own it without going down to a bank and signing personally for a loan.

This is what makes owner financing so powerful, so amazing, and a strategy that you’ll need in your portfolio of offers.

How To Use Owner Financing As An Investment Strategy

The purpose of this strategy is NOT to take advantage of the home owners. It is to create a win-win-win situation where you help the owner sell their house fast, you make a profit, and the person buying the home from you gets a house that they didn’t have to go down to the bank to qualify for and with much less cost.

If you start making deals where only you win, then you will find it hard to succeed, and your business will be tough.

How Seller Financing Ties Into No Money Down Deals

Please listen to this tip: What is going to set you apart from those “other” types of investors is that you will not have to put any money of your own into the deal, except an earnest money deposit, but you will be able to give the sellers a good deposit if and when you sell the property.

How?

Here’s an example: Houses in North Dallas are worth $240,000. Let’s say that your seller is behind 2 months on their payments for a total of $4000 and they need $1,000 moving money.

So, you decide to give them a $10 earnest money deposit and a $5,500 down payment (being nice). Remember, the down payment only comes when you close the deal, not before.

You would then market the house, “Owner Will Finance, No Banks” and some other jargon. What you are looking for is a buyer that has at least $5,500 plus whatever profit you want to make.

So, let’s say that you want to make $10,000 out of this deal. You would just need a down payment of $15,500.

To come up with a $15,500 down payment for a house that you don’t have to qualify for is nothing. Remember, there are other options than having to go get a loan in which most banks, especially nowadays, want to see 20% into the deal. That would mean, traditionally, they will have to come up with $48,000.

So, there is no heckling on price, or the small things. They are getting a house for almost nothing and without all the red tape. Then, when you close the deal, the buyer will bring the $15,500 check or roll of cash (I don’t really care), and the seller will get their $5,500 and you will get $10,000.

Everybody wins and nobody had to be taken advantage of…And with the rate of foreclosures as high as it is now, there are lots of people who are motivated to sell there homes, but that’s not all that creates motivation…there’s relocation, job loss, drop of income, death, too big, too small, making 2 mortgage payments, or they just really want to sell.

So, go out and start creating “Winning” deals.

Then, you can take your baby on a cool date, and get back to work.

To Your Immediate and Lasting Real Estate Investing Success,

Kenney

P.S. Check out this post that will help you to turn your Owner Financed Deals into cash in 30 days.

Technorati Tags: seller financing, real estate investing, real estate training, how to buy house, the 22 month retirement

It’s all over the infomercials.
It’s all over the book stores.

…But they don’t really tell you how to do this, or why it’s really so powerful and that it should be crafted so that the sellers do get money…It’s just not yours.

Remember, I told you that I am not going to be putting myself or you at risk when investing in real estate. This is one of the most important rules we have.

One of the biggest risks is investing a lot of money into a deal. There’s just no need for it!

So, how to you get around it?

One of the best ways is with a simultaneous close.

What is a simultaneous close?

It’s a close where you buy and sell a property at the same closing. You sign the papers to buy the house and then, you sign the papers to sell the house right after.

Why is this powerful?

Because it eliminates the BIGGEST risk that you have investing in real estate…Using your own money!

Instead, what happens is that the deal is funded by your buyer.

For example: Let’s say that I get a deal into contract and I am buying the house for $101,000. Then, after I have the agreement signed, I found someone to buy the house for $117,000. At the closing, the person buying from me would bring the $117,000. The title company (or attorney) would cut me a check for $16,000 and the rest would go toward the seller’s (person who was selling to me) balance.

You see, I didn’t have to bring any money at all. There was no need. My buyer brought all the cash and I got a check, and so did the seller.

How many deals would you do if you knew that you didn’t have to use your own money? You don’t! So, get started…

If you learn how to find buyers, you will never have a problem trying to make money in real estate.

Note: The worst thing that can happen when you get a house into contract and you can’t find a buyer…is that you’d lose your earnest money deposit, which shouldn’t be that much if you stuck with our biggest, Ron Legrand-adopted rule: Don’t write big check, don’t lose big check.

To Your Immediate and Lasting Real Estate Investing Success,

Kenney

Technorati Tags: simultaneous real estate closing, real estate investing, real estate training

It resulted in almost 90 different buyers calling to buy a house that we didn’t even own.

You see, we ran an ad for a house that we didn’t own or have in contract.  Actually, we hadn’t even call to try and buy one house at all yet.

This helped us get over our fears of finding buyers for houses that we get into contract.  Finding houses to sell is NOT the problem.  It’s having an exit strategy…. a way of getting rid of the house quickly and without risk.

What Did We Do?

We ran an ad for an “Investor Special, Cheap, Cash” and the ph #.  Over the next week, the calls just kept coming in. Most were on the Sunday the ad hit the paper, but there were a lot on Monday and they tapered off, but we did get calls the next week even.

We then categorized every person that called in an A pile, a B pile, and a C pile because when we did have a house for sale, we wanted to be able to contact these investors without ever having to run an ad….

…We wanted to make the best use of our time.

We classified these investors into A, B, & C pile investors because we didn’t want to call a “buyer” if they were not going to be able to buy. I don’t want to waste their time or ours.

So, how did we classify these investors (home buyer leads)?

We asked them several questions, but these were the 2 main qualifying ones (ones that would determine if we could do business together now or in the future):

• How quickly can you close?
• What is your price range?

The thing is, I knew that if the investor told me they were going to take more than 2 weeks to close, I was dealing with the wrong type of investor.  It doesn’t take that long to close if you have the goods.  It shouldn’t take longer than 14 days tops.  So, they got put in either the B or C pile.

How To Use This Same Idea To Get Lead Buyers and Owner Occupant Calls

You can use this same idea for finding lead buyers, investors to buy ugly houses, owner occupants to buy pretty houses, or just about anybody else that you are looking for.

Think about who you want to target, then run an ad that would stimulate calls from that person.

For instance: If you wanted to sell ugly houses to investors who wanted to fix them up, you would run an ad similar to the one above. If you wanted to create a list of people (owner occupants) to buy your pretty houses, you would run an ad like…

…Owner will finance, no banks, Beautiful 4/2.  Call Kenney 214-555-7777.  An ad similar to this one would cost between $35-$120 in any Major newspaper paper across the country and would run for about 7-10 days.  Try to get it to run from Sunday to Sunday for 7 day ads… And you can then start to generate leads for people who want to buy houses from you before you even have a house to sell.

This should help alleviate your fears of investing in real estate and give you the confidence that you can find buyers for houses you have for sale quickly.

You can then further pre-qualify this prospect to find out exactly what they want.  Then, you can go out and find houses that you ALREADY know your prospects want.  Get them into contract and set up a simultaneous close to buy and sell the property at the same closing.

As I said earlier, You can use this little trick for generating any type of real estate related lead that you need.

To Your Immediate and Lasting Real Estate Investing Success,

Kenney
“Because I Have A Dream”

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Technorati Tags: how to find buyers for your house, real estate investing, real estate training, invest in real estate without risk

People need to see you as the expert.  You want to be everywhere they go.  Plus, I believe that the Internet is the perfect place to reach your target market as an investor.

A successful broker in Dallas once told me that 80-92% of all people who are looking to buy a house now search the Internet at some time during their process, looking for a deal, and that right now is the perfect time for bringing your investing business online.

So, because I believe that the Internet can be a powerful player in this challenge and in any real estate investor’s marketing methods, one of the first tasks I took on was to create 2 quick, little sites.

Now, they only took me about an hour or so to create a piece and they are not pretty, but I believe the payoff will be well worth it.  These sites will help me capture online, motivated and interested prospects and will increase the amount of overall business we do.

You’ll notice that the ONLY purpose of the sites is to find and capture motivated and interested prospects, and educate them on what I can do for them.  Then, we’ll be able to turn that into more houses being bought and more houses being sold.  (As of this posting, the FREE video isn’t available just yet, but will be when I start marketing the site.)

They also don’t have the coolest names, because I chose domain names based on helping me get good ranking in the search engines for particular keywords that I am interested in being ranked for.

Without Further Adieu:

1.  Sell My House Texas:  This site is for people that are looking to sell their house, and would like help to get out of their situation.  You’ll also notice that the site is tailored to Texas residents only because that is where I will be focusing all my efforts.  Actually, I am focusing in and around Dallas, Texas.

2.  Buy Texas Homes For Sale:  This site has the same layout as the site above, just the wording is tailored to people looking to buy a heck of a deal in and around the Dallas, Texas area.

To be clear, in some of my other posts I’ve talked about making money selling real estate leads.  Please note, that I do not sell email addresses.  So, unless in the future I start to collect home addresses (not emails), I won’t be selling the leads generated from the home page of this site.

Anyway, you can put together a simple page like this in no time, and even if you didn’t, it shouldn’t stop you from investing in real estate.

You don’t need a website, but  I added them to my repertoire because I feel that it will help me, but it’s not necessary and don’t let this keep you from getting started.

To Your Immediate and Lasting Real Estate Investing Success,

Kenney
Because I Have A Dream…

Technorati Tags: real estate investing websites, real estate investing, real estate training

Many people believe that this is the time to run away from real estate investing…

…And that’s great because that’s more for me….Just kidding…actually, this post is about turning people toward real estate investing because this is the right time.

What’s so cool about investing in real estate is that it’s always a good time.  If the market is bad, then you can buy houses at great prices, sellers are more flexible, and you can make a lot of money quick.

If the market is good, it’s an awesome time to buy and sell because you can sell properties at a higher price, houses sell even faster, and you can make a lot of money.

So, it’s always a good time to buy and sell real estate…But what does matter is how you buy and sell those homes.

I am not here to talk about buying and holding a piece of property and making long term investments.  I am here to talk about getting in and out of a property as quickly as possible, and getting the fattest check possible because money today is much better than money tomorrow.

You can’t take care of the money worries of tomorrow, until you can take care of the money worries of today.  I think it was Ron Legrand that said something like that and it’s the investing credo that I live by.

This is something that you have to keep in mind when you’re talking with sellers too.

Why?

Because this will set you apart from other investors and allow you to get more deals done for the same amount of work.  Most investors believe that in order to make a lot of money, you have to take advantage of people.  You don’t!

So, it’s great when they are making offers where the sellers don’t get paid, and they are getting rejected. Then, you come along where the seller gets some money and gets their problem house off their hands – you’ll be seen as a saint.  You’ll stand out.  Then, they will refer you and your business will grow.  You ‘ll get more deals.

This is a true win-win situation.

Let me ask you this…

Would you prefer to make $157 a month for the next 10 years, or would you prefer to get a $21,697 check right now? I’d take the second because I can’t do anything with $157, but I can sure do a lot with $21,697 right now.

You can take care of your money problems of today, and also use that money to invest with to make more deals.

So, get in and out of deals as quickly as possible and get paid today.

To Your Immediate and Lasting Real Estate Investing Success,

Kenney

P.S. I will be posting more about each type of strategy we’re using to get in and out of deals, so be sure to stay tuned.

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Technorati Tags: real estate investing, how to invest in real estate, make money investing in real estate