tag:blogger.com,1999:blog-8238580336028028965.post4986996555792171278..comments2021-05-19T06:18:15.443-07:00Comments on Profitable Investing Strategies: "When Cash Isn't King...Then What...!"Jay Palmquisthttp://www.blogger.com/profile/16579050903015122895noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-8238580336028028965.post-21389098064340537542010-08-15T14:44:05.879-07:002010-08-15T14:44:05.879-07:00<<<...continued from last post...
4. Hav...<<<...continued from last post...<br /><br />4. Having bad credit and being a "dead beat" are two different things. One has a solvable hiccup, the other just won't pay his bills...ever. Joe doesn't work with the latter buyers. Also, nobody gives Joe money that also has no way of making payments (on purpose). People just don't do that in our experience. <br /><br />Buyers may lose their jobs after buying Joe's house and many will. In fact 30% of Joe's buyers bail for any number of reasons. <br /><br />However, its a matter of reselling to another buyer and collecting yet another down payment. Meantime, Joe has a proprietary system of inducing "dead beat" wanna bees out of his houses that is 110% effective.<br /><br />Meantime, again, 100% of Joe's buyers can/will get new loans in this environment once Joe helps his buyer demonstrate a verifiable, on-time, 12-month repayment history. This is the critical element of getting clients into their own loans. And of course, if the appraisal would fail for some reason...the buyer can make up the difference, move out, or wait...until the value comes in line. Either way, Joe is in good shape.<br /><br />5. Dan, I love this one!!!<br /><br />Joe isn't an idiot! Joe doesn't sell to dead-beats, or those with no jobs...<br /><br />There are too many other prospects available with cash, jobs, and solvable credit issues to bother with deadbeats and dreamers. <br /><br />To recap, we're dealing with nice homes here, not run-of-the-mill track houses. We're offering first class properties, with first class terms, to those who are likely to regain their first class credit ratings in the foreseeable future (because they want to). <br /><br />These buyers are not thinking about "investing" in a home and understand that a their primary residences are liabilities to them. They are thinking about quality of life for their families, and about what they can afford today with the resources they have available. <br /><br />They are not dreamers who think they can get something for nothing like "Frank & Dodd" mortgage suckers. <br /><br />The current benefits of home ownership actually outweigh the future costs and so they give us money to buy a house they can afford with the income they currently enjoy; anticipating an improvement in their conventional credit profile so that they can eventually get better rates from a bank than they're getting from Joe, all while remaining in their beautiful home for many years to come. <br /><br />So, Joe is selling nice homes to buyers with jobs, down payments and solvable credit issues, who understand that the price they're paying is the cost of doing business with one or more conventional obstacles to home ownership to hurdle.Jay Palmquisthttps://www.blogger.com/profile/16579050903015122895noreply@blogger.comtag:blogger.com,1999:blog-8238580336028028965.post-78460805177498008832010-08-15T14:43:30.768-07:002010-08-15T14:43:30.768-07:00Daniel, enough of these softballs!!! :D
1. Joe w...Daniel, enough of these softballs!!! :D<br /><br />1. Joe will already have a pool of buyers if he follows my directions... He'll find over 40 buyers with something less than $40k ready to spend (in less than six weeks time).<br /><br />2. The seller doesn't think he's got any equity after Joe's finished "yellow padding" him. See my post on "yellow padding".<br /><br />3. The house didn't sell for a number of reasons having nothing to do with anything except that the first agent was only charging $500 to list the house on the MLS and the other agent just wanted listing points, and open houses to sell other properties...and neither could reduce the price to compete with all the other "like-priced" homes and still get paid their commissions. The seller is in a HURRY, did I mention? He can't wait for full retail. And after trying to sell it himself for several weeks, and trying to keep the house spotless 24/7, his wife finally objects and says, "I'm not vacuuming these rugs one more time for any more looky-loos. If we don't sell this place immediately, you can find another "live-in" housekeeper, if you get my drift!"<br /><br />Meanwhile, Joe's buyers don't care what his price is. They only care about the down payment and the payment he wants. This is a critical distinction from the conventional buyer you're thinking about. Joe caters to a completely different mindset than those who've got more options.<br /><br />...continued next post...>>>Jay Palmquisthttps://www.blogger.com/profile/16579050903015122895noreply@blogger.comtag:blogger.com,1999:blog-8238580336028028965.post-56706301542519115092010-08-15T09:03:05.490-07:002010-08-15T09:03:05.490-07:00Hi J, Love your posts and outside the box thinking...Hi J, Love your posts and outside the box thinking.<br />We have a few issues however:<br />1.Joe has to be able to make the monthly payment on this new purchase.<br />2.Owner has to agree to deal leaving equity on the table.<br />3.Joe has to find a buyer pronto who will "overpay" for the privilege of having bad credit or some other mess.And remember the house did not sell by traditional methods the first time around for less money.<br />4.If Joe finds a buyer---He, the buyer will most likely have bad credit, no job but cash and will NOT be able to Refi in this environment. Soooooo what happens to Joe?<br />5.Joe continues to make the monthly payments and hopes his buyer, who overpaid for the property for the privilege of buying with bad credit or no job or both, will continue making payments and somehow come up with the funds to pay Joe off.<br />I'm just sayin. Love ya J.<br />DanAnonymoushttps://www.blogger.com/profile/05886125329832393487noreply@blogger.com