Free Corvette With Purchase ( Sub2 Deal )

Finding treasure is fun! Finding antique bottles lying around in an abandoned house is a joy for me.

My friend Chip and I used to scrounge in abandoned railway stations and old warehouses in Kansas City and find the most fun stuff ever. We scavenged the old dispatcher’s office that had been empty since the 1970’s. I found a hand-made note paper roller that was nailed loosely to the wall. I still have it as a reminder of good times spent scavenging with my friend Chip.

Speaking of Chip, he led me to this secluded little dump outside Olathe, Kansas where we found a rotted box of old, colored glass insulators. I was in heaven. Chip could care less. I still have those insulators. They’re pretty to me. Violet, blue, aqua, pink, brown and white. It’s like Christmas looking at those things. I imagine the history each of those pieces of early artwork disguised as electrical hardware.

The reason I mention all this is that finding treasure is the spice of life. Everyone loves to do it. It’s addictive behavior. Why else would people scour beaches with metal detectors for necklaces and coins...on beaches!!!

Well, Barney Zick wrote once that leaving treasures behind in homes we want to sell will compel buyers subconsciously to buy our houses. They may not even have liked our house the best, but the thought of getting something for free just makes some buyers irrational buyers. We’re talking about leaving pianos, sewing machines, bicycles, rockers and what not. Buyers love free stuff.

My friend John told me once that a week before Christmas one year he had sold three or four houses, but the last one was not selling. So he went to his used car dealer friend and asked if he had any “sexy cars” on the lot. His friend had an old Corvette available. So John bought the Corvette, put it in the garage of the house that wasn’t selling, raised the down payment by a little more than the cost of the car, and had the house sold in two days. He advertised “Free Corvette With Purchase of Home.”

John says he likes to include freebies with his house to make them more attractive. I have always loved this concept. I’ve left antique bicycles and appliances behind before. I’ve also left bedroom sets. It really helps sell a house, when the buyer believes he’s getting something for free.

So, think about what you can “accidentally” leave behind in the next house you try to sell, and see if your days on market are shortened up substantially.

"When You Absolutely Must Have $30k In 90 Days..."

Wow, after three weeks of preparation, I just finished the final touches on a 30-minute presentation outlining how I learned how to do "subject to" deals from my friend Mitch.

In the video, I share the story about Mitch, the guy that we all thought was a drug dealer, because he drove nice cars and lived in a view home with a pool, but nobody ever saw him at work.

Ha Ha! Little did we know that Mitch was a professional negotiator and sales trainer that morphed his training into buying upscale houses from motivated sellers without down payments or using his credit...

Well, I got Mitch to tell me what he was up to several years ago now, and frankly, what he showed me changed my life forever.

Normally I put content here, but today, I'm just offering a free video presentation that shares exactly how my friend Mitch made thirty or forty thousand dollars in just a few days of buying pretty houses without qualifying for loans, or offering up his credit. In the video, I also show examples of what can be bought using "subject to" financing that surprises most people.

Here's the link to the video... FREE VIDEO PRESENTATION

Give Me $8,000 So I Can Buy Another House!

The following is a response to a guy who wanted to know how to Sub2 his house that had no equity. Here's the text of an email where I showed a guy how to pull cash out of his no-equity house, and come up with 20% down to buy a cheaper house for himself. [please excuse the typos, this is the exact text (me in blue), the seller is green]
**************************

[quote]
If I seller finance my primary residence the mortgage is still on my credit report

Yes, this is true.

how does it help me purchase the REO as my primary residence?

You have to show that your old house is "sold".

You will have documentation showing the sale (HUD1 Statement) and copy of Land Trust, or Land Contract, or Promissory Note (Cognovit Promissory Note), or Deed of Trust, or whatever you use to facilitate a sale. I like Land Contracts coupled with Cognovit Promissory Notes.

This doesn't transfer title, but the Cog. NOTE makes the Buyer personally liable for the entire balance of the note without having to get a judgment (this is a rarely used or understood document, but I use it for leverage in getting a deadbeat out of my property in the event they become delinquent).

The REO wants $88,000 cash I may be able to scrap up 10% but the hard money I contacted wants 30% down and charges 13.99%.

Hard money lenders do not lend on owner occupied properties that I'm aware of. And their money is only temporary. As far as the price is concerned, you're talking about raising $8,000 as your total down payment?

This would equate to 10% for an FHA loan. Are you sure you can't get conventional financing with that much down on an REO? Are you wanting to use a hard money lender to avoid having to provide a credit and financial statement? I would talk with a mortgage broker and explain your circumstances and see what he tells you.

Selling your house on terms is EASY. There's lot of folks with five to ten thousand down and need seller financing with no credit check.
What's your house worth in this market? What's the payment? What are the existing terms of your loan? Are the payments fixed, or is this an adjustable interest rate with a "bad" future payment?

Assuming the payment is fixed, and the loan has no balloon payment, I would advertise your house as "owner financing", or "seller financing" or whatever people will recognize and do the following to get it sold:

1. Ask 10% down (Take what they have, and finance the rest over six month at most)

2. Say "No qualifying (and/or) No bank Qualifying" in your headline

3. "Take over payments"

4. List principal and interest payment only, not the entire payment with tax/ins/hoa's, etc. Take nice pictures of your house inside and outside.

Go to photobucket and upload your pictures.

Copy the html code from photobucket and paste that in the body of a craigslist ad. This will show all your pictures of your house with no limits in the body.

Go to craigslist and advertise your property. List all the amenities of the house. Figure out which type of buyer would most like your home. Who would it most appeal to?

Young families that need a yard?

What is the best features of your house?

Large Yard, rural---no neighbors?

Close to the largest shopping mall in the country?

Best schools in the county?

What?

Emphasize that to the most likely prospect. This is called "message to market" advertising. You don't want to pitch senior citizens on your house if it has lots of bedrooms, or two story, etc.

However, a large family would be very interested, so mention that in your ad. Put your contact information ever three or four lines in your ad copy and create a sense of urgency about the deal "This won't last long with these terms!" "Don't Snooze, or you'll lose on this deal!"

Call Johnny today!

List the schools, shopping centers that are close by including any entertainment centers, etc.

Now... Go to Kijiji and set up an ad for your house with pictures you took.

Include all the amenities in the information box they provide. List the size, bedroom, garage size, fireplace, sprinklers, appliances included in the price, etc and every three or four lines put a call to action in the body inviting the prospect to... "Call Johnny today at (333) 333-3333 or email at "noequityseller@aol(dot)com" before it's too late!"

Repetitive calls to action get results. Answer the phone every time. Don't let prospects go to voice mail if you can help it.

That said, it's better to hold a "cattle call" for your prospects. This means you're having an open house on Thursday at p.m., or whenever it works for you.

This may be hard if you're not getting a lot of calls. So do your best here. But creating scarcity is a great motivating tool, if you can find a reason Buyers need to act quick. When two more Buyers show up at the same time, it creates some competition. You get it.

Make sure you've got your contracts together that you want to use.
In your case, you're not going to get a spread on the payment, so don't worry about that. You just want someone to babysit your over-leveraged loan until the value comes back. Chances are the Buyer that you sell to will move in the next three or four years without refinancing. This will happen.

Just re-market the house for another 10% down and see what happens. Eventually the loan will start paying down significantly. You might end up keeping the house after 10 years, when the loan balance returns to a retail amount. Who knows.

Keep the objective in mind: Sell the house to someone who can afford the payments, so you can qualify for a cheaper house, not so you can make money off the house anytime soon. Don't get greedy, when you discover the house has some appeal. Meanwhile, if you can get $8K from a new Buyer and then use the $8k you already have...you now have $16,000 for a down payment. Could this help you qualify for a new loan easier without using a HML?

This amount would be 20% down! There's Sellers who might finance you, even at a premium, but without qualifying you, if you gave them $16 in cash. Just saying.

That's it for me right now. Hopes this helps.

Later!

Jay

Want to know exactly how to do this step-by-step? Click Here: "Screw The Bank!"

How do you find "good" deals without any competition?

I've been curious and questioned other investors that consistently found juicy deals, how they found a particular deal. The answers have usually been that they learned about the property word-of-mouth from someone who knew the owners, or through some acquaintance. Basically referrals.

That seems obvious for seasoned investors who've staked a claim in particular farm. However what about when we don't have a presence in the farm yet? How can we find good deals before we've established a good referral business?

I've discovered that direct marketing is THE answer (dream tool) for not only finding juicy prospects, but getting the prospects to call ME directly, and...best of all... getting the prospects to call me without (or before) calling any of my potential competitors.

OK, so direct marketing works. But one asks, how we choose a good farm area. And what criteria do we use to chisel the list of prospects down to the MOST profitable mailing list.

The answer is easy. First make up your mind about what type of financing you are capable of. Are you a cash buyer? Are you a Lease/Optionor type buyer with a some cash? Are you a wholesaler with solid financial backing or personal funds? Or maybe a rehabber with a line of credit? These all make difference on what types of houses, and equity situations you target.

Then make a decision on the price range of houses you want to invest in, the size home, again the equity values, the age of the properties, and finally the length of ownership. Did you know that most owners get in trouble on their home loans within the first 24 months of ownership? These are usually good sub2 type prospects. These are what I target.

Yep. And these types of prospects usually have very little equity. And this makes a big difference for those of us who specialize in taking over loans on houses that I call "equity lite". These are properties bought with 10% down a couple years previous, but don't reflect enough equity now to pay a real estate agent to sell.

Of these prospects that get in trouble --- these are the same prospects that tried to keep up with the Jones after buying their new home. They moved in and immediately loaded their credit cards up with furniture and toy purchases. Dad of course had to match the "Bubba" truck that the neighbor owned, in order to pull the new trailer filled with "desert toys". And then mom soon after refused to drive the kids to school in that old 1995 Aerostar. So she came home in the new Honda SUV to show off to the other mothers.

Well, after all these purchases of cars, furniture and toys, they're now over extended. Whoops! Figuring out how to downsize the bills, they discover the only thing they can sell is the house! Everything else is upside down.

Meanwhile, I'm scouring for upside down moms and dads in new houses. So Mom and Dad Seller get a card from me, informing them about how they can sell their house in 24 hours (or less!). Mom calls to ask how this is possible. I invite myself over to evaluate their situation and explain what (if anything) I can do for them.

So, in comes me! The hero,

• to take over their loan
• protect their credit
• and resell the house for an obscene profit to a credit challenged buyer whom has roughly 10% down.
  
• This all happens in four weeks flat.

The house was worth about $300,000. I took over a $260,000 loan. I resold the house for $330,000. I asked for $30,000 down. So, $30,000 profit up front in down payment money, and another $40,000 in potential equity profit equals $70,000!

Not bad just for protecting someone's credit, and bailing them out of a loan they could no longer afford.

That's why DM'ing becomes profitable --- sifting out all the prospects except those that are likely to be headed to foreclosure because of pride. And notice, nobody else was competing with me for this juicy deal. I am the only one talking to these sellers. And I didn't have to create a name for myself in the community to get the referral. I just went directly into the pool of "don't-wanters" as Bob Allen used to say.

Next post, I'll explain the cheapest place to get a mailing list.