[Jackie Lange]

Jackie Lange

Debbie Bunnell asked me to post these questions in for forum for her. It’s late tonight but tomorrow, I will answer them. Meanwhile, if you have any input, it is always great to get a variety of opinions on how Debbie should proceed.

Sorry I didn’t post this in the forum area, but I’m not sure if I am supposed to hit REPLY or START A DISCUSSION. If you think it would be helpful to others you can post it.

I have two houses that I have just finished renovating and would like to sell in a Highest Down Payment Sale in April, and I have some questions:

1. You said there was someone in Tallahassee who would be willing to help with a HBS. Do you remember who that was?

2. How do you price a house? If the after-repaired market value is $250,000, what can one reasonably ask if owner-financing is offered?

3. What is the minimum down payment you would accept?

4. What sort of terms do you usually give for the balance owed? Do you offer better terms if the down payment is higher?

5. Would you have an open house for both houses the same weekend (for example, 10 to 12 at one and 2 to 4 at the other), or would you do one house per weekend?

6. What do you do differently when you have a down payment sale?

7. Do you take calls and talk to everyone who calls, or have a recorded message that answers questions?

8. Do you make everyone wait to see the house until the open house?

9. You said something last night about keeping the bidder sheet close to your chest and not wanting to let everyone know who bid what. How do you do that if the sheet is out for everyone to sign up on? Do you not require them to write down an actual bid?

I am getting bogged down trying to figure out how and where to advertise. I have read your manual (Highest Bidder Sale), and I’m trying to work on the ads. I have set up a website, because the one you said we could use, http://www.highestbiddersale.com, still says “Coming Soon”. Any help or suggestions would be greatly appreciated.

[DON WEDE]

DON WEDE

Myself when I carry term deals I always sell at the full market value plus 5%-10%. Doing HBS for down payment you will more than likely get anywhere for 10% – 40% down. Myself I NEVER SHOW THE HOUSE OTHER THAN THE OPEN HOUSE HOURS. Just me, I know I can be a bit of a SOB. Lol
Jackie and I both let the other bidders see the list. She just does not want it out of her site.
Don

[Jackie Lange]

Jackie Lange

HI Debbie

Here are answers to your questions:

I have two houses that I have just finished renovating and would like to sell in a Highest Down Payment Sale in April, and I have some questions:

1. You said there was someone in Tallahassee who would be willing to help with a HBS. Do you remember who that was?

I know someone in Pensacola who has done several HBS. I’m sure he would come help. I will ask and put you two together.

2. How do you price a house? If the after-repaired market value is $250,000, what can one reasonably ask if owner-financing is offered?

When selling with seller financing, I usually price the home at the top of the market. Maybe even padding the price by an extra 5%

3. What is the minimum down payment you would accept?

If you do a Highest Bidder Sale for the Highest Down Payment, you will advertise what the starting down payment would be. That price needs to be low to attract a lot of bidders. The more bidders you have, the highest the price will go up and up. For a $250,000 house, I would advertise the starting bid at $5,000 and must be increased in $1,000 increments. You will most likely get at least $25,000 to $50,000 for the highest down payment… maybe more.

4. What sort of terms do you usually give for the balance owed? Do you offer better terms if the down payment is higher?

When I sell for the Highest Down Payment, I will have a spread sheet at the property that states

if they pay $10,000 down, the interest rate on the balance is x%
if they pay $15,000 down, the interest rate will be y%
if they pay $20,000 down,…. etc

give then an incentive to put more down by offering a lower interest rate ( lower payments.

5. Would you have an open house for both houses the same weekend (for example, 10 to 12 at one and 2 to 4 at the other), or would you do one house per weekend?

If the houses are similar and close to each other, then yes, it would be good to do a Highest Bidder Sale for the Highest Down for both on the same weekend. You’ll need to have a team of people at each house though. If you can’t do that, then you need to do one house one weekend then the other house the next weekend. During the first Highest Bidder Sale, you should have flyers about the 2nd highest bidder sale though.

6. What do you do differently when you have a down payment sale?

See the premium member training about doing a Highest Bidder Sale for the Highest Down payment.

7. Do you take calls and talk to everyone who calls, or have a recorded message that answers questions?

have a recorded message. You do NOT want to take these calls. use google voice or something similar.

8. Do you make everyone wait to see the house until the open house?

9. You said something last night about keeping the bidder sheet close to your chest and not wanting to let everyone know who bid what. How do you do that if the sheet is out for everyone to sign up on? Do you not require them to write down an actual bid?

I keep the bid sheets close to me. But buyers/bidders can see them anytime. Most bidders would never put their “real” highest bid on the bid sheet because they don’t want others to know what it is. Bidders do have to write down their name, phone number, email and their high bid on the bid sheet to be included in the rournd robin bidding process. The highest Bid will come out during the round robin calling.

I am getting bogged down trying to figure out how and where to advertise. I have read your manual.

Also review the training you got at the Panama Retreat. There were a lot of great ideas about marketing for a Highest Bidder Sale.

[Jackie Lange]

Jackie Lange

I want to add some additional comments about doing a Highest Bidder Sale for the Highest Down Payment.

In Debbie’s case, she purchased the houses then rehabbed them so she could resell.

It is NOT necessary to buy houses to do a Highest Bidder Sale for either the highest price of the highest down payment. Instead, you can simply get an option to buy a property for a certain price. You’ll explain to the seller the advantages of selling with a Highest Bidder Sale. Usually your contract to buy will state that you will sell the property with a Highest Bidder Sale method. If you are successful at finding a buyer, then the seller will be paid the contract price and you will make any profit over that amount. Sometimes you will agree that you and the seller will split proceeds over a certain amount (I use this technique to get the contract price as low as possible). Here’s an example:

Your contract price is $200,000 for a house worth $300,000 in perfect condition.
You sell for $220,000 and make $20,000 profit. The seller gets $200,000
The whole process from your contract to everyone getting paid takes about 2 weeks!

To do a Highest Bidder Sale for the Highest Down Payment, you will need to negotiate to buy the property subject-to the existing mortgage or with seller financing. This will make it possible for you to re-sell the house with seller financing for the highest down payment.

The house is worth $250,000 and is in good condition.
The mortgage is $200,000 with 3.5% and payments of $898.09 + $300 a month in taxes and insurance = $1198 payments.
You sell for $260,000 to the person with the highest down payment with an interest rate of 6%
You get $40,000 down (money in your pockets) = balance of $220,000 to finance with payments of $1319 + $300 a month for taxes and insurance + $1619 or a $421 a month cash flow!!!!
You get money up front, money every month, plus if the buyer cashes you out, you will make an extra $20,000 approximately later!

All this on a house you did not even need to buy or fix up.

See why I love Highest Bidder Sales and Highest Bidder Sales for the Highest Down payment. You need to get in on this action.

[Debbie Bunnell]

Debbie Bunnell

Jackie,
Those are great responses. Thank you. And thanks for your input, Don. I’ll let everyone know how the sales go. Since this is my first time, and the houses are not close together, I have decided to do one at a time.