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HI Gerry
First of all I do not do a 5-day sale. I tried doing them the Bill Effross way and it did not work well for me. My Highest Bidder Sale system is different and more effective.
When I get an option then sell to a buyer there are two ways I close:
(1) I do a double close ( in the name of a Trust always(
(2) I get paid to terminate my option so the seller and new buyer can close
My termination fee shows up on the HUD as a way to clear title.Jackie,
My title company (which does a lot of creative stuff for investors) says lenders will not agree to a sale where there’s an option involved. You do it in TX, so I must not be understanding how it works.
Is this how you do a 5-day sale:
Get house under option for x dollars
Find home buyer who qualifies for loan and agrees to pay x + y dollars (y being your profit)
At this point, do you do a double closing – or what do you do at closing so that it’s okay with the lender?
In other words, do you actually “own” the home for a few hours before the buyer closes?
Or how does it work?Thanks!
GerryHi Jackie
you say that you do not do a 5 day sale like Bill Effros. in what ways is your process different from what Mr. Effors outlined in his book?
can you go into more detail as to how you use the trust method to get paid at closing when using the highest bidder sale?
when you get paid as fee to clear title, do you send your option agreement into title along with the end buyer’s P&S agreement?
Bill calls his a 5-day sale because he does 3 days of marketing before he does the open house, then 2 days for an open house.
I do 7-9 days of marketing before the 2 day open house. The marketing I do is completely different than the marketing Bill does.
For example, he does newspaper advertising and I’ve found that to be completely not effective. I utilize the internet much more to help get the word out. But signs are still the #1 thing that gets traffic to the house.During the open house there are a lot of things I do differently.
And during the round robin I do things differently.Because my process is so different, I call it a Highest Bidder sale.
I talk about some of these things on the conference calls I’ve done about Highest Bidder Sales. And I’ll go in to more detail at the CashFlowDepot convention.
The title company will have a copy of my option contract regardless of the way I close. An Option agreement is just a purchase agreement with a contingency clause. My Purchase contract will always show that I will be taking title in a Trust.
Jackie
I don’t do transactional funding. My title company closes the buyer side of the transaction first then the proceeds are used to close the seller side.
If I’m paid to release my option, it could be either side that pays it and it always shows up on the HUD
Nate
that is correct.
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