How to Pick Up a Deal Everyday and make money this month

How To Get A Deal Everyday With No Money, No Credit, No Experience

If you aren’t finding a deal everyday then something is wrong! You DON’T need money and you DON’T need a bank loan.  With my methods, you will not even have to have your credit pulled!  You will be able to start immediately to go out and pick up your first house to sell today.

The methods of buying houses that I am going to cover here are not new BUT it is the way that we are going to be using these methods that will make the difference.  Here are the things you must remember in advance that is the secret to this method

What You Must Know To Buy And Sell Houses Without Risk

1.) Always Control Houses Before You Buy Them
2.) Always Sell Houses Before You Buy Them
3.) Make Sure You Get Paid To Buy Every House

One of the mistakes investors make in real estate is over complicating everything!  Lets keep it simple and easy!

So the secret to no risk investing and what I am going to teach you

First you control the house (or land )
Second you sell it.
Third you buy it.

When you buy it you want to make sure you make your money. This way you know exactly what you are going to make before you go any further into the deal.

This technique is known as the “Control – Sell – Buy” method.

Using this method will cut down your time substantially because you have the power of knowledge of what you need and also what the end user wants for his deal that will allow you make money

The Only Two Ways You Want To Buy Houses!

1.) Substantially Below Market Value –  30% Or More
2.) On Terms – Over Time With Payments

Lets start digging in …

1.) Substantially Below Market Value – Usually 30% Or More

Your seller must be willing to discount price off retail by at least 30% or they must be willing to take payments.

Say you have a seller that wants to sell their home fast.  To do this you explain to them no only way you can do this is if the price meets your “cash buy offer factor”.  You will then go on and explain to them that if they lower their price enough the home will sell. You also explain to them that you can buy closer to the full market price BUT  they will have to wait and get it down the road with payments until then.

They just want to sell because they are MOTIVATED

Example:  The house is worth $100,000 and they are willing to sell it for $70,000. You may even do it for $75,000, but the idea is that you are getting a price that is substantially below the market value.

So what do you do first?

You have to control the home!

You tell the seller that you will try and get them cash for $70-$75k and you will do it within 30 – 90 days. You write up a purchase agreement and both of you sign off on it. ( you may also use an option agreement)

You tell the seller that you will try you best to make this deal happen and for them to get their cash. To protect both you and the seller you tell them that you will take the offer and make it assignable to another person that you work with.

This person will step in and pay the seller their price, they will also pay you for bringing them the deal. The protection comes in the fact that you are going to make sure that any other person you involve must sign off or approve the deal as well.

So you basically tell the seller that you will try and get them their $70,000 by finding an investor to step in and pay you a premium, usually $3k-$5k, and then pay the seller their amount. You will try and get this done within 30 – 90 days and it all depends on you finding this person and them approving the deal.

**** What if you don’t come through?
This is why you let the seller do whatever they want with the home in the 90 days as as long as they let you know. This way the seller loses nothing and you have the chance to help them and make money.

So when a seller just wants cash and they are going to discount the value of the home to do this, you control it, find a buyer and assign it.

In this case you “buy” the home by assigning your interest in it.
Normally you want to make at least $3k-$5k on each deal you assign. This is a very quick way to make money and you can do this within 7-10 days.
So that will be considered a cash deal.

This technique is often misunderstood. Many people have heard about “assigning” or “flipping” a home and then they go out write an offer on a home and try to find some investor to take it over. Then it doesn’t work and they say the method is a “scam” or it just doesn’t work. What these people don’t realize is that the offer they write doesn’t make sense and the investors they deal with are not serious investors.

Unless you are properly trained in evaluating properties and providing value you will not be able to do this. How do I know this? …..  Because I get e-mails in my junk box everyday. These people have some “great deals” that they are trying to push. When you look at the numbers it just doesn’t make sense.

You see when you write an offer you want to know that you are going to be able to move it. You want to have people lined up ready to give you cash for the homes you find. You want to create the market.

REMEMBER TO BUILD YOUR BUYERS LIST FIRST
AND ASK THEM WHAT TYPE OF DEALS THEY WANT..

I want to ensure you that you risk nothing and you should write up the offers within minutes.

Now let’s move on to the other way you want to buy homes…

2.) On Terms – Over Time With Payments

This will be a different type of seller and you will be buying the houses differently. This seller may have equity or maybe not.

Example:  The house is worth $100,000 and the seller owes $95,000 then they would have $5,000 in equity. This is a negligible amount and usually this seller is lucky to be able to break even on the sale.

In the other cash example our seller had to have at least 30% equity to be able to sell their home for $70,000 when it is worth $100,000, or the seller would have to come up with cash and pay to sell the home.

The cash deals we discussed earlier are not going to be as common. Many investors will strictly focus on just the cash deals which in my opionion is a mistake because they will be leaving money on the table by not doing “terms” deals.

So, back to the example….

a) The seller either has equity or they don’t. If they do they will not get it for usually 12-24 months even though we are going to ask for 2-3 years.

b) If they don’t have equity or they just want to be able to walk away and have their mortgage paid off for what they owe, they are going to still wait for 12-24 months while you tell them 2-3 years.

You will explain to them, in detail, what you will do but you want some cushion room which is what the 2-3 or even 3-5 years allows for. For example…

You have a seller that owes $95,000 and the home is worth $100,000 and they need to sell now. If they list with a Realtor they will normally pay between 5-7% to the Realtor for selling the house.  Lets assume its a good Realtor and he sells the house quickly in 2-3 months, the seller continues to pay their monthly payment which they can’t afford and then they pay about 6% of the $100,000.

When you figure closing costs our seller will have to pay $3,000-$5,000 to sell the home. Now since they can’t afford the home to begin with it is not likely they have that cash sitting around.
They need help. This is where you come in.

You tell the seller that you will start making the monthly mortgage payment*, we will say this payment is $900 a month, and then you will pay off the mortgage balance within 12-18 months or as much as 2-5 years.  You tell the seller, just like you did with the cash deal, that you will try and find a buyer to do a lease option with the home. You will try and close within 90 days, your offer is assignable by you and it depends on you finding a suitable buyer that approves of the home.

Do you see why this make sense for the seller?  They just want to be able to walk away from this home and not have to pay an arm and a leg to do it. You have offered a solution to thier problem which makes sense. Do you see how these offers are completely risk free to you and the seller. So when you write up the purchase agreement you now have control.

You can do whatever you want with the home, but you want to sell it before you buy it – remember that. This is because if you can’t sell it without owning it then actually buying it won’t do you any good either because you still won’t be able to sell it.

NOW you have control of the property and you need to sell before you buy.

Find a lease option tenant ( rent to own ) for the home that will pay you $3,000-$5,000 for the home. This tenant will live in the home as a buyer, (they are not renters and you will not be a landlord. )

*** Remember that you will not be buying the house until you have found a buyer and they have paid you the down payment for a home. This way you don’t waste time and energy buying a home and having to pay out of pocket for the expenses.

I hope you see why I have you building your buyers list FIRST!!

When you have MATCHED up the buyer, in this case a lease option tenant, then you buy the houe. So you never buy the home until you have sold it and you have gotten paid.  Make sense?

Here is the order…
First you control the home.
Then you find a buyer and sell the home.
Then you buy it.

Remember that you never want to risk your sellers’ finances or your own, you just want to help and make money at the same time, the quickest way possible.  Remember this seller does not have very much equity and they are just trying to get out from underneath the payments. You are going to pay off the seller’s mortgage, and since they don’t have much equity what they owe is going to be about the full market value.

Ideally you could just take the assignment fee and walk away, letting the seller collect payments directly from the tenant buyers..

We have now successful bought the home for full market value!

What happens in the case where the seller will have equity.

Let’s say the seller in our last example has a neighbor with the exact same type of home that is worth $100,000. The difference is that this seller only owes $70,000.

Of course we could write a cash offer, ie..We write an offer to pay the seller $70,000 and make the offer assignable and find a buyer to pay us a premium and pay the seller their money. We could do that, but what if the seller is not that motivated?

This is where too many investors walk away, but you will be able to still help the seller and make money at the same time.

Lets for the sake of this example say that if our seller lists the house with a Realtor he may or may not be able to sell the home within 2-3 months. Let’s say that the sellers payment is only $700, which is still pretty high but we want to be conservative for examples.

IF our seller lists with a Realtor he will have to pay the 5-7% to the Realtor as their commission. Then on top of that there are the closing costs, the mortgage payments during the time the home does not sell, etc.

The bottom line is our seller may be able to be lucky to net $90K So our seller will get about $20,000 of their total $30,000 equity.

Here is the interesting thing…. they are still going to have to pay to get their equity and they are not going to get all of it. The benefit is that they will get it all now with what I teach you.

With a seller like this who has equity, if they don’t have to drop the price then you should not ask “force” them to. You are going to give this seller a way to get all of their equity.  *** This will take time to do.

Here is how this works…

You are going to tell the seller that you will start making their mortgage payments and an additional payment to the seller for “financing” the $30,000 of equity they have.

You are going to pay the seller’s mortgage of $70,000 off and you are going to pay the seller their $30,000 in equity within 2-5 years.

You will be making the seller’s payments AND you are going to make a payment to the seller as well on their $30,000 equity position.

Here’s how it works:  Assume you pay the seller $250 a month on their $30,000 and you pay the $700 a month on their mortgage, you are at $950 a month.

Do you see the similarity here? This works the same way.

The difference is that this time you are going to pay the seller as well as the bank, not just the bank. You are going to pay the seller’s mortgage off and make payments to the seller as well.

SO you are asking .. how do you profit??

You are going to do this from the money you get from your lease option tenant. You are going to charge the tenant a down payment, a monthly payment at least $200 more than you are paying, and a back end purchase price 10-15% above the market value.
Does that make sense?

So again here is the order of this…
First you control the home.
Then you find a buyer and sell the home.
Then you buy it.

Again by buying homes this way you are going to ensure you never risk a penny or your credit. You are also going to be providing the seller and your buyer a priceless service by making this happen.
Can you see the power in this approach approach?

You will be doing deals systematically using this technique. Although a lease option is not anything new, but the way you are going to be doing this is new!

This is how and why you will be able to do deals over and over again.

Let’s  go into EVEN more detailed walk through of this method and go through exactly what you need to do to make this happen.

The BASICS

Three Ways To Buy Homes Without Having A Dime, or Credit.

There are basically three methods you will use after controlling and selling houses when you buy.

This technique is mainly for houses you buy for your portfolio. Remember that every deal you come across will fit this criteria.

For those that don’t you will use another method or technique to monetize them.

So here are the basic ways you want to buy homes;

1. Land Contract,
2. Multiple mortgage
3. Subject to the Existing Financing

Land Contract :

Please check your state statutes.  In some states these are no longer used, instead you will do “seller financing addendums” which would fall into the multiple mortgages category.

A land contract is a contract between you and the seller of a property, this contract outlines the terms of the sale and specifies items like the monthly payment, the term or length of the contract, and the ultimate purchase price. You can make millions by just buying properties on land contract. These are also called wraps, a contract, or a contract for the deed as well. The name really doesn’t matter it all relates to the same thing.

When you buy a home with a contract you own it much like most people own their car. While you are making payments on a car the bank holds the title while you control the car. You can do whatever you want with car; drive it, sell it, rent it out, wreck it, burn it, etc. You don’t get the deed until you pay the car off.

Buying a home on a land contract works the same way. The owner holds the title but your contract is recorded and you become the owner of record. You have the property “tied up” and you get the deed once the you fulfill the terms of the contract.

This is basically a rent to buy but it is more powerful because you have a recorded form of ownership. You are going to get the contract recorded immediately this way instead of just evicting you the seller will have to foreclose on you.

** NOTE:  Evictions are with rentals or lease options, and that is how you are going to be selling your homes. If there is a problem you will evict the tenants.

So if you buy a home with a land contract, there is an actual contract written up, signed by you and the seller, notarized, and recorded. Now you own the property on land contract. You have a claim to the title. You have essentially bought the home. The contract can be put together by an attorney at any title company and you can have the buyer and the seller pay for it, or pay for from your profits, split the costs, etc.  If you have the title company do it they will record it.

Remember the first thing to do is control the home, then sell it, then buy it. The contract can be signed and notarized at any bank. Then you just record it, which can be done my mail, and you are done. Those are the basics of a land contract.

When do you use a land contract and for what?

This is for the seller who has equity but doesn’t want to give you the deed. They may have no equity too, and just not want to give you the deed. So let’s say that with our last example when the seller owed $70,000 and the home is worth $100,000. You can tell the seller you will buy the home from them on a land contract.

Then every month you pay the seller directly, then after 2-5 years you will pay off the balance of what you owe to the seller. In the meantime you find a lease option tenant and get them to refinance the home and pay you off so you can pay the seller and the bank off. Make sense?  Those are the basics of a land contract, let’s move on.

Multiple Mortgages

This is also a form of “seller financing.”  In a land contract you do not get the deed, however with a multiple mortgage deal you do.  A multiple mortgage  is stronger than a land contract.

A multiple mortgage is another way to get the seller their equity.  If your seller is willing to wait for his equtiy and take  payments on it, then this is what you will do. The seller basically “loans” you the money and then puts a lien on the home that you have to pay off. So the seller becomes a lender and you are the borrower.

On our last example where the seller owes $70,000 and the home is worth $100,000, you can have the seller put a lien on the home and become the lender for their $30,000. So now you have a first mortgage of $70,000 that you will owe to the bank and a second mortgage payment that you will have to make to the seller. You may run into a seller that just wants the $30,000, or whatever their equity is, at the end of the contract timeframe and you don’t have to make them payments.

*** One reason will be because the payments are already too high and instead of refinancing the seller just wants to get out from under the payments. The benefit to you is that you get the deed and now the seller has to foreclose, the seller’s benefit is recorded ownership to their equity.

I hope by now this is all starting to make sense?

So the seller is going to be just like the lender and you are going to make them payments and pay them off just like you are going to do with the original mortgage. The title company can set this up and you go from there. That is how a multiple mortgage deal works.

Who is multiple mortgage for?

This is for the same type of seller that the land contract is normally for; a seller who has equity but wants to wait and get the most out of it. This seller is somewhat “smart” in the sense that they realize that to get the full market value they can simply wait for you to come through. Even if you don’t the seller hasn’t lost anything. The big difference here is that with the multiple mortgage you are going to get the deed.

Subject To – Sub2 ( Subject to the existing financing )

This is the strongest form of ownership among the three. In a Sub2 the seller gives you a general warrantry deed (or quit claim)  to their home, and you become the owner of the house. The home is in your name and now you begin to make the mortgage payments as if you bought the home. The seller just walks away while the mortgage, taxes, insurance, everything stays in their name.

This is a very motivated seller!  Many times the seller’s only other choice is foreclosure and this may be their last option. Normally the seller will walk away and be happy, they normally don’t have any equity. If they do have equity and they want some of it you can put their equity position on the home as a lien or add an addendum and when it comes time to pay the mortgage off you pay them off as well. You can structure their equity with no payments, no interest, etc. if that is how the deal is set up, remember you make the rules.

In a Sub2 it is questionable whether the seller can do anything to get you out of the picture, their recourse is minimal at best since you have the deed and they are exposed. This is why you never want the deed until you sell, or move, the home. When you promise a seller that the payment will be made you make sure it gets made.

All across the country investors are given a bad name because of people who took advantage of sellers and the lack of education to this process. Never do that. When you promise a buyer, sellers, Realtor, anything you make sure you make it happen. It is important that everybody who you come across knows that you can help them and you aren’t going to hurt or take advantage of them. This is crucial.

WIth a Sub2 deal you really only need a few pieces of documentation. Only the seller has to be present to quit claim a deed, and they can quit claim a deed fifty times but the first person to record it becomes the owner. That is why you want to record it immediately. It is better to have a General Warranty Deed signed by your seller, they are pretty much the same thing except for the time that the seller “guarantees” the title is longer with the General Warranty Deed.

You don’t have to qualify, talk to a lender, put money down, etc. All you do is  get the deed. Now remember you get the deed after you have sold the home and you know you have a buyer lined up. One way to protect the seller with a quit claim is to quit claim the deed right back to the seller while they agree not to record it unless there is a problem. This helps the seller trust you but it does leave the chance that they will record the deed anyway and leave your ownership position out. This risk is offset by the fact that you have the seller’s credit in your hands and if you did the job right they love you for what you did for them.

Who is the Subject to deal  for?

In the first example we used in this section our seller owed $95,000 on a home worth $100,000, in that case the seller just wants out and if the payments are too high they will work with you and do whatever you want to get the home moved.
So you first control the home, find a buyer, have them put money down and sign the paperwork effectively buying the home, and then you buy it. This seller needs out right now. You help these people out of foreclosure and you are going to see how powerful just one referral will be to your business.

Those are basics will all three methods.

Now I want to talk about controlling homes, I keep saying that at first you want to control the homes then sell them and then buy them. So since controlling homes is going to be a big part of your business it is important that you understand exactly how to do it. So following, these are some crucial points about investing in real estate that far too few “investors” understand.

How To Control Homes The Smart And Easy Way!

When you control a home its essentially buying it. Once you control a home and you can sell it, buy it, refinance it, etc.  There is NO difference between you and the owner?

That is what makes controlling properties so great.  You are going to get an OPTION the home. You are going to tell the seller you will try to help them and make money. You are going to try and move the home, you either sell it and buy it or just sell it for them and take a profit, I will get into this later.

To “buy” or control a home really doesn’t take much and you should immediately move forward with it – later I will show you how to do it without even seeing the home.

The paperwork involved in controlling a home is minimal.  You will either use the purchase agreement of the Letter Of Intent or the Lease Agreement Memo, the last two are pretty much the same thing. When you send this to your seller and they sign there is a huge perceived commitment they are making, it isn’t as solid legally so it is more of a way to qualify your seller and let them know you are serious.  You won’t take many sellers to court because they didn’t follow through on what they signed, because after all you can’t force somebody to sell you a home.

That is why the signature is more of a gauge that tells you how serious they are and how quickly you can help them and make money.  A key Profit Pressure Point to realize here is that no matter what the situation is once you control the home you have effectively “bought” the home. Your control has value by itself. This control needs to be established as quickly as possible. You want to be able to pick up homes left and right. But first let’s get into how to control a home.

The main way you are going to control homes is by using the Purchase Agreement or the Letter Of Intent/Lease Agreement Memo.

These two methods do almost the same thing. The Purchase Agreement, or offer, is a much longer and less friendly version but it it goes into more detail.  The Letter Of Intent is specifically for sellers that you are going to find a lease option tenant for but you can use it for just about any seller with a few adjustments.

The point here is to explain what you are going to try to do and see if that helps the seller out. If it does you want them to sign something that gives you the right not the obligation to move the home.

Once this is signed there is a psychological commitment made on the part of the seller. Now while you are trying to help them you will be able to build rapport and provide value so they trust you. This will eliminate objections as you move ahead.

At this point when you go through paperwork like the Purchase Agreement later on, this seller will have fewer, if any, objections and you can close deals much more smoothly.

This is much more effective than sending a 5-6 legally binding agreements over after talking to somebody for a few minutes. You want to be able to do deals quickly and easily and keep the people you work with happy.

That is the whole point of the Lease Agreement Memo and the Letter Of Intent, outlining the situation so clearly that saying no is just plain dumb.

So on almost any deal you do you are going to have the Purchase Agreement signed anyways, but sometimes you are going to go through the Letter Of Intent first. Especially when dealing with landlords.

So the quickest, easiest way to control a home is simply fax the one-page memo over and have them fax it back to you signed. This takes, literally, less than 10-15 minutes. This, by the way, is the quickest way to make money in real estate. You will make several times the thousands that you paid for my course by doing just one deal.

So to control a home you simply have either the Purchase Agreement , or the Memo signed. We are going to call this making the offer. The quickest way to do this is to simply do it; just get it signed.

When you are communicating with the seller immediately find out their situation. Here is main info you need to know…

Do they have equity?
Do they want all of the equity or do they want to just walk away?

Already you know what type of offer to to make them. If they have and want all of their equity you can do this over time with payments. If that won’t work you can still control the home and I will show you how and why in the next section.  If they don’t have equity or just want to get out you can start making their payments.

Either way you can control the home immediately by knowing what type of offer to make them. You run the benefits by them and see if that is what they want. Once they tell you what you can do to help them you send the paperwork over immediately, you can email or fax it, just get it signed.  Now you have essentially bought the home. You still have to profit from selling and then owning the home, but you have controlled the home within minutes.

Once you start talking to sellers more you will be able to write offers left and right, you should have no trouble writing several offers a day, you should easily be able to pick up one home a day.

Remember that you want to go out and start writing offers immediately, find out if they want a discounted cash offer or a full market value sale over time with payments.

This is why I use my custom made “Rapid Offer Generator” !