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Great conference call. I was re-listening to it and was interested in the deal towards the front of the call. If I understood correctly, an investor found a house, let Jack buy the house with ($70K house with $45K loan in FL), the investor/partner got a lease/option on it and managed the house, giving Jack 12% yield. So the partner didn’t have to put up any money, he just managed the house. They shared on the current cash flow, and then split the equity when the house is sold. This sounds like a really good play on REO properties today (which are very plentiful here in CA) if you don’t have the cash to buy them from the bank. Does that sound good?
Sorry for another question, but there was so much information it’s hard to understand it all.
You were talking about dumping bad properties now so we can take advantage of the opportunities in today’s market. You said to sell a property for a low price, maybe just what the loan amount is, but have an option to buy the property back later on. I didn?t quite understand the terms that you would buy back on. One of them was to pay 6% and buy the house back, the other was if he didn?t want to sell it back to you. Could you explain/elaborate? Thanks.
– dan (Sacramento)Hi Jack & Jackie
That was an excellent call last evening. Before I ask any questions I’m going to have to listen to it a few times to make sure what I understand and what I have questions about.
Jack, I doubt if I will be able to make it to options seminar. At the last one I attended I thought I heard you say you were going to record and sell both seminars. Am I correct?
Thx again for a dynamic call
Jean Pizzoferrato
Hi jean and Daniel,
Jean, we did record the option seminar last October and we will be recording the option seminar in February. After we get through editing it, for ohhh’s and ahhhh’s we will make the tape set availalble… probably in April or May.
And Daniel, options are the slickest thing you can possibly use – especially these days.
On january 29th, I will be interviewing Denis Koelsch who acquired more than 50 free and clear houses using the technique Jack was talking about — find the deal – get someone else to buy it for cash or put up the down payment money and get a loan, then you manage for 50% of the cashflow ( or agree to use all cashflow for rapid payoff) – then 5 – 10 years down the road you split the equity or divy up the houses you bought.
That’s how you get 50% management and 50% equity.
It’s a slick trick and perfect for the market conditions we are in now!
Daniel
Even with pause and rewind it is hard to keep up with all the great ideas that Jack has. I can tell you that the more you hear it, the more it will STICK with you and become second nature to think that way. That’s why it is so important to FEED YOUR BRAIN these ideas by listening to the audios, conference calls, watching the videos and reading the inforamtion at CREWealth.com
It might seem like it is overwhelming now but trust me that soon your BRAINED WILL BE TRAINED to think creative real estate deals naturally!!!
OK, the other deal where you sell below market just to get rid of the house then have an option to buy it back. Here’s one way it could work. Let say the buyer put up $10,000 as a down payment ( like Jack’s example) you agree to pay them 6% per year on the money they put up to buy the house – or $600 per year.
So the house is worth $150,000 but you sell it to them for $110,000 just to get rid of it for now.
Because you are selling below market you can sell it quickly and your buyers can easily get a loan.
They put down $10,000 and get a loan for $100,000.
Your agreement is that they get to live in a $150,000 house that they bought for only $110,000 if you get to buy it back for $110,000 in 5 years and you’ll pay them $600 for each year or $3000 + the $10,000 they put down and take over the $100,000 loan.
Or it could even be that they out down NO MONEY and get a loan for $110,000 and you’ll give them $3000 and take over the loan in 5 years.
You’re thinking why in the world would anyone do that?
The ideal candidate ( and there are plenty of them) is someone with champagne taste on a beer budget. At least they get to live in a house they could not afford to live in otherwise for 5 years.
Jack will have even more creative idea to use options at the February seminar. I’ll be there. How about you?
Remember, you have to FEED THE BRAIN often!
Jackie
p.s. soon, we’ll be announcing a whole new way to attend Jack’s seminars….more details coming soon.
Joe,
The advantage to finding discount properties and and only taking 1/2 of the upside is that you use the OTHER PERSON’S MONEY to buy so you can get 1/2 of the cash flow and 1/2 of the equity but have ZERO money invested in the deal.
The result is you avoid risks. And you can buy more houses.
On the conference call on January 29th will go in to this in great detail when I interview Denis Koelsch and you will learn how he was able to acquire 50 (FIFTY) free and clear houses using this method.
Jackie
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