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rents
FIRE SALE! Do you buy “on sale” or pay full price?
Right now we are seeing one of the greatest fire sales on real estate that our country has ever seen. Many pundits are comparing it to the real estate market that we had in and after the Jimmy Carter days and the Great Depression! Talk is serious that pricing is about to bottom out and will start turning around.
While that could take a little while longer the time is great for buying at a discount. Take a minute and think back to January 1, 2000. If you can remember that far back, that is when pricing had hit a low a few years prior and had stabilized. As we moved forward from that day, prices went through the roof.
I know that if there was one of us that could create a time machine to go back we would so that we could buy anything and everything that we could get our hands on. To know what happened to pricing from January 1, 2000 forward would make anyone buy. I owned over 70 units then and wish I had 700 or 7,000 looking back. We are at January 1, 2000 again figuratively. Prices are higher because we have gone through eight years, but compared to what they are going to do, they will be considered low, even historically low.
WHAT ARE YOU GOING TO DO ABOUT IT? WILL YOU ACT OR SIT ON THE SIDELINES LIKE YOU MAY HAVE 8.5 YEARS AGO? WILL YOU MISS A REAL ESTATE SALE THAT COULD SURPASS ANY IN HISTORY WHEN IT IS ALL DONE? WILL YOU CREATE UNPRECEDENTED PERSONAL WEALTH OR MORE EXCUSES?
I know that I am committed to doing something about it for me AND the students in the MWI system. We are embarking on an urgent tour, called: “The Great Real Estate Liquidation” One-Day Boot Camp. I would strongly encourage you to make immediate plans to attend this mind-blowing event. Admission is free, and the only condition is that you USE the techniques you learn. I want to make sure this valuable training is available to anyone that has a desire to learn and take action.
We are teaching the strategies that I and other successful investing millionaires are using to create unprecedented wealth in this time of real estate opportunity. Topics include, foreclosures, seller financing, bank seller financing, use changes, highest and best uses, rocketing rent increases, cash flows and much more.
DON’T MISS THIS OPPORTUNITY LIKE YOU DID IN 2000! WE’LL SEE YOU THERE.
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SELLER FINANCING FROM BANKS!
Did you read the title correctly? I said, “We are getting seller financing from banks!” Most of the nation is crying, whining and complaining about how hard it is get financing at banks. Perhaps they should be asking for a different type of financing from banks………SELLER FINANCING!
I just got back from another meeting with some of my investors, partners and students and found that one of them had taken my advice, followed my strategies and asked a bank for seller financing on a house that she wanted to buy from them. They agreed offering seller financing at 7% interest only payments. Our student has a one year call so that they can close on the property and sell it or refinance the seller financing in plenty of time. The house provides a $450 per month positive cash flow for the investor.
The crazy part is that my student didn’t stop there. They ended up asking the bank if they had any other properties for sale and found one that the bank owned (because they took it back) that had a mixed use zone on a piece of land smaller than an acre. They are going to have a floor of commercial space on the first floor and over 30 condo units on top on less than an acre sized lot! My student will be able to buy that for about an $800,000 purchase price.
This property will require less than 25% of their own money out of pocket and be financed again at 7% interest only as seller financing from the bank. Since the bank was giving them an extended time frame to close (due to their contract strategies and negotiating time frames) they will be able to pull a building permit to build their project and start construction in less than 60 days after they close on the project.
I think the craziest part of all is the fact that this bank has also committed to do a construction and development loan to get the project built behind their seller financing so that my student will be able to get the original seller financing paid off. WHAT A DEAL! My student Roberta was so stoked I don’t know if she could see straight.
What many of you don’t realize is that with all the foreclosures and repossessions going on in the marketplace right now, banks are holding near record numbers and amounts of non-performing assets and mortgages. What are these banks going to do with all of these properties and non-performing debts? Many banks have so many of them they can’t get to them all. They literally have boxes and boxes of non-performing files. Why do you think some of these banks are taking 5-6 months or more to get an answer back on a short sale?
I find it odd, amusing and titillating that I can go into a bank, ask for a mortgage, get rejected, talk to someone else in the bank about getting seller financing (which requires less paperwork and far less credentials) and get a yes. HILARIOUS! We are entering a new age of seller financing. Everyone, including banks, will seller finance.
Savvy investors will do anything to learn these strategies and techniques and them implement them. How much do you really know? What are you prepared to do to learn more?
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Golden Tenants
Most profitable investors are doing two key things that others are not doing right now. The first skill is being able to provide seller-financed mortgages to buyers and obtain seller-financed mortgages from sellers as a buyer. Just because banks don’t want to give mortgages doesn’t mean sellers can’t and won’t.
The second skill is learning how to find or create available product to sell that would have a mortgage payment equal to or lower than rent through property use change. Imagine how easy it would be to sell your investments for profits if the buyers could get mortgage payments lower than their current rents. This technique and ability is extremely profitable. I will be teaching these skills at an upcoming Seller Finance camp in sunny San Diego.
I have a student from a large metropolitan area that is working with my “Equity Builder” program with tenants. In his tenant search, he just found a nurse that makes $86k per year, has very little personal debt and a fico score of 796. She is paying $2,200 per month in rents. My investor has several investments he can sell her for a profit of over $30,000 and estimates that there are another 1,000 properties in the area that would yield a fixed mortgage payment lower than her current rent. The best part is that he just started this tenant procurement program and he has had amazing results.
The nurse had no idea that she could purchase a property with all the negative press the market and mortgage industries are getting right now. The sad thing is that a lot of good people aren’t buying because of all of the negativity when they should be buying. Amazing investors are using programs and advertising to locate these types of tenants. There are a ton of them.
As prices fall, more investorse will profit by helping people that don’t know their own financial abilities to follow the American Dream and own a home.
Learn more about this system with my free ebook and video.
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Another Quick “Bad” Market Profit
I just got word from one of my students that they have made another incredible profit in a “bad” market. This student from Southern California , Ryan Rude and his team, used a program I teach call the “Equity Builder” Program to find some great tenants to put in houses they are working on. This program specializes in turning tenants into buyers.
Ryan used this program to locate some tenants that could qualify for a home right now and didn’t know it. The sale helped a Grandmother, Mother and Granddaughter to purchase a home after many years of renting. Ryan simply located a house that would have a lower monthly payment than these ladies were already paying for rent and sold it to them.
Ryan and his team located a distressed 3 bedroom 2 bath home they bought for $167,000. They put $30,000 in the rehab and then sold the property to these women for $290,000. Their mortgage payment on a fixed 30-year mortgage was lower by over $100 per month than their rent! They were so grateful and excited.
One difficulty they had in obtaining the mortgage was the debt service caused by about $12,000 in personal debt. Ryan had enough profit in the deal to pay for his work, pay his investors, pay off these ladies’ $12,000 in personal debt so that they qualifed and still made $55,000! From the time Ryan closed on the purchase of his investment to the time he sold it was a total of 90 short days. $55,000 in 90 days!
Ryan has learned some valuable lessons about investing in today’s market. The first one is housing that offers lower fixed mortgage payments than rents always sells in any market. The second lesson is that there are a lot of way to help people get mortgages that others aren’t aware of. One of my favorites is seller financing.
Anyone that thinks that this is a bad market just has a bad attitude! Keep up the good work team. You can do it!
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