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I asked Ben to call me today to discuss making Multiple Offers.
CLICK HERE for the short replay of our conversation.
He is now closing 1 of every 5 offers he sends out. There is no way this would happen without making multiple offers.
If you want to increase the number of YESs to your offers… make multiple offers.
If you need help formulating what the multiple offers should be — post the deal details on the forum (minus address) and we will help you come up with 2-3-5 offers. Your exit strategy will help determine what your offer should be too.
The multiple offer letter Ben uses is in his Virtual Real Estate Wealth course. Honestly, I think getting access to this letter is worth the price of the course! The course also includes almost 2 hours of video training PLUS how to buy houses in other markets (setting up teams, working with Virtual Assistants, etc) But all the information in the course is valid even if you only want to buy in your own backyard.
Rafael,
The Magic bus tours were always a HUGE success… selling 10+ houses in one day and as many as 40 houses during a 2 day Magic Bus.
Since I live in Panama, I;m not doing them anymore. But it is certainly something you, and other CashFlowDepot subscribers, should consider doing.
You will need to get a high volume of wholesale deals fast to make it work. You could do one deal at a time but it works better if you target package deals where you can get an option on 5 – 10 or more properties from one seller.
The Magic Bus Special Report details how to have a successful sale, get deals, get buyers on the bus, etc… It is available in the members area for Special Reports which you will see as soon as you log in on the left side OR click on My Accounts at the top of this page to take you to the Special Report section.
Hugh
The Virtual Real Estate video is the same in the Premium training and the Virtual Real Estate Wealth recorded seminar.
The big different is that the recorded seminar comes with the Ultimate Sales Letter AND a course about how to find and train others to assist you with your real estate business so you can buy in multiple markets (like Ben does). He has people on the ground in each market who inspect the properties, get contracts signed, take contracts to title companies, get the houses sold or leased. And he has virtual assistants who talk to sellers, handle all marketing, etc.. so Ben can work ON his business instead of IN his business. The Virtual Real Estate Wealth recorded seminar & Book & Sales Letter include:
♦ Why work with real estate in remote markets
♦ Market Area Selection Criteria
♦ How to locate properties in remote markets
♦ How to process seller leads
♦ How to inspect properties
♦ Educating the seller
♦ How to have sellers like you and want to do business with you
♦ Without ever meeting you
♦ Making offers and creating seller financing
♦ Buying the property
♦ What to do with properties purchased in a virtual market
♦ Maximizing lead monetizationVirtual Real Estate Wealth Bonuses
♦ How to find and train Virtual Assistants
♦ Lead Management flow chart
♦ Lead Management Virtual Assistant telephone scripts
♦ How to find and train a Local AgentTHE Ultimate Sales Letter and System Responsible For Hundreds of Houses Purchased And Creating more than $800,000 in Seller Financing in Just One Year
Jackie, is it safe to say virtual investing is more expensive than DIY REI? Reason I ask, would it or would it not be prudent for new investors with limited capital to first learn how to invest themselves in their own backyard before they try delegating (paying, since people don’t work for free) these tasks to other people?
Hello Jackie, sorry to keep beating a dead horse, but how would you buy with a lease option? Meaning how would you negotiate the deal to convince the seller to deed you the property in 6 months? Is it better to just focus on sub-to and seller finance in Texas to avoid any recourse? What’s the best way to structure a deal when there is low equity in the property? Is a highest bidder sale still an option? A wholesale flip is out of the question at that point. Buying sub-to and keeping as a rental sounds like a viable option but maybe you prefer another way to control the property as a rental with little risk and still be able to capitalize on appreciation at a later sale date……..
Jackie Lange:
“IN Texas, you can still buy with a lease option.
You just can’t sell with a lease option unless the buyer’s option consideration is non-refundable AND you give them the deed within 6 months.
Remember, with a master lease, you don’t need to get an option. You can do master leases in Texas.
You can do wraps! Buying with seller financing then selling with seller financing is still legal in Texas. If there is an underlying loan, you can either buy subject-to the mortgage or buy with a seller finance wrap.
Get options then do a highest bidder sale.
Get options then do a wholesale flip
Buy subject-to then keep as a rental
There are still a LOT of things you can do – but selling with a lease option or selling with a contract for deed are not on the list for texas.”What are the pros and cons to buying with a wrap vs sub to? Which would you prefer if you plan to hold onto the property long term to bank on cashflow and appreciation.
I’m currently talking with a seller that is open to working something out that includes a long term payout but there is no equity in the property; here are the facts:
PITI: $1,050 fixed/no balloon
Rental Value: $1,400
As-Is Current Market Value: $123,000
ARV: $165,000
Repairs: $21,400
Mortgage Balance: $150,000What offers would you make?
Rafael
Just because a seller will take monthly payments or a long term payout, it does not mean you should buy the house.
Because this house needs $21k in repairs I would be more likely to PASS on this one. There is no equity and I’d hate to set up a buyer for failure with such bad numbers.
The only possible offer I would make on this one would be to do a highest bidder sale for the highest down payment – but only if the payments are current. The objective would be to sell to an owner occupant who would like to fix the house up and plans to stay long enough for the house to hopefully increase in value over the mortgage balance. You could not put a balloon on the note with the buyer or seller.
Sales price $165,000
starting bid $3,000 to get a lot of people there.
should fetch $10,000 in a down payment (buyer needs to conserve cash to do repairs or you could get much more)
It would have a $300 to $400 a month cash flow.I don’t buy subject-to anymore. I only do seller finance wraps. The seller is more protected. If you ever have to stand in front of a judge to explain your transaction they will want to know that you gave the seller a deed of trust (or mortgage) to protect their interest. With a sub-2, the seller does not get that.
Good morning Jackie,
I need to know: why can I not put a balloon on the note with the buyer or seller? Is this a conflict with Texas State law similar to the lease options? I was thinking one possible offer could be to give him debt relief by taking over payments and then paying him x,y,z after 10-15 years.I don’t know if it’s too much to ask but would you feel comfortable if I sent you photos of the property so you can estimate what repairs would be? I have your email from previous correspondence. I still feel like estimating is a weak suit of mine; it still seems too abstract for me. In this neighborhood there was a 1700sqft house that sold for $268,000 after only 6 days on the market but there was some serious money that went into it (think platinum level remodel). The majority of comps however are selling for around $160-$170K in like-new condition at the silver or gold level remodel: New cabinets, flooring, appliances, bathrooms……..but they’re sitting on the market for an average of 45 days.
Here’s what I’m having a hard time grasping: I could put maybe $5,000 into it to make it rent ready, or I could invest $15,000 to get it to one ARV tier level, I could invest $25,000 to get it looking even better, or I could invest $50,000 into it to make it top of the line similar to the home that sold for $268,000. To me ARV and Repair estimates are not at all concrete, you can get a couple minor upgrades or you can get all the bells and whistles: which do you use?
I loved your illustration in “Diary of a Rental Property” and I’d like to start creating that kind of portfolio. Based on what you said there and what I learned at a recent John Schaub seminar, properties tend to double in value every 10 years or so. If that’s true I could bank on this house being worth at least $250,000 in 10 years. If I could structure some kind of balloon payment, all that equity would be more than enough to throw some change at the seller. Not to mention I’d have at least $300 in cashflow every month. I hope ballon payments aren’t illegal in Texas………..looking forward to your response Jackie. As well as anyone else who’d like to chime in…….Have a great day everyone.
There is no law about not using a balloon in Texas.
From the buy side, you don’t want a balloon because:
> you don’t want an income stream to disappear
> the balloon might happen at the worst time – after a real estate crash, when there is an increase in interest rates, you have a lot of other things going on in your life and you do not want to deal with either selling the house or GULP… getting bank financingFrom a sell side, you don’t want a balloon because:
> it’s harder to sell if you put a balloon on the note.
> the balloon might happen at the worst time – after a real estate crash, when there is an increase in interest rates, you have a lot of other things going on in your life and you do not want to deal with either selling the house or GULP… getting bank financingThis is not a good house to keep as a rental because:
1. there is no equity. The day you buy it, you would be upside down even with a $5k investment in getting it rent ready
2. Cash flow is good but the upside down mortgage is the problem.There should not be a difference between a rent ready repairs and a sales ready repairs. If you give a tenant a crappy house, they will not stay long. They have plenty of other properties to select from. They don’t want to move in to a house that is not great.
It makes no sense to spend $20,000 to get this house ready to rentYou need equity and cash flow the day you buy a house.
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