In this time of this “late recession” (in some regions now “post-recession”), the worst error you can make is to think that all of the sellers out there are over-leveraged and that the ONLY option to earn money is to perform short sales. This is the largest mistake you can make in this time period. That is a MASSIVE error on your part!
Even while there is a lot of money to be gained via short sales (and you do need to know how to execute them), the majority of short sales are quite time-consuming, and investing in real estate through short sales is not the most lucrative method to do so.
To ensure that the short sale aspect of our company generates the highest possible return on investment, we have zeroed in on a relatively unexplored subfield of the industry that generates significant profits on a constant basis while requiring a lot less effort and investment of both money and time. (When you attend the future webinar, you are going to be overjoyed to find out that information. You will find that it makes a great deal of sense.)
What is working now–in this economy?
You may be interested in learning more about the other aspects of my real estate company… What else, aside from short sales, can I do in this economy to bring in a lot of money for myself and my students?
The solution is to focus on residences that have equity, regardless of whether or not they are in foreclosure. You might be under the impression that there are no properties with equity in the area in which you now reside, but you would be WRONG.
It’s a sad reality, but the vast majority of folks whose names get up on your foreclosure list and who are behind on their payments did so because they took on too much debt. The data also reveal that one out of every three homes in the United States does not have any mortgage attached to it at all.
On the one hand, you have residences that have an excessive amount of debt, and on the other hand, you have properties that have a significant amount of equity. There are many chances on both ends of the spectrum, in addition to those that may be found in the middle and in between.
For the sake of this essay, let’s talk about one kind of seller out there: those who have 15% to 20% of the equity in their homes, are NOT in the process of going through a foreclosure, but need to sell their homes soon for some other reason (illness, divorce, job transfer, etc.). The sellers in question are motivated, but they are not now delinquent on any payments.
As a result of the fact that the market in the majority of regions of the nation is not a “seller’s market” and properties do not sell in a week, these motivated sellers are unable to wait, and they want YOUR assistance in order to complete their transactions.
So, how do I get paid to buy their house?
You may illustrate to a seller like this that they will need to pay money out of their own pocket in order to sell the property if you sit down with them and inform them of the costs associated with selling the property through conventional means. It is not hard to demonstrate that utilizing a Realtor will result in costs that are more than or equal to 12% of the sale price (commission, closing cost, monthly payments until they find the buyer and close, maintenance, etc.).
Our “P-E-N” (Presentation-Education-Negotiation) strategy, which stands for “Presentation-Education-Negotiation,” is used to bring the seller down anywhere from 15% to 20%. If they do not have sufficient equity to cover it, it should not be difficult for them to understand that they will be required to write a check when the transaction is finalized.
At that point, by using very specific language, you can get them to understand that writing a check to you for the difference rather than waiting for a buyer and writing the same (or a larger) check later is a much better option for them than waiting for a buyer and writing the same (or a larger) check later. If you know what to say, you can get many of these vendors to agree with you.
Now, this strategy won’t work with every seller, and it won’t work at all with a seller whose property is in the process of being foreclosed on. (They are unable to send you a check because they do not have the funds.) You end up earning money when you purchase (the seller pays you! ), plus you got the property at least 20% below market value, and you will make a handsome profit when you sell it. However, it works with a lot of sellers out there.
All of that was accomplished without making use of any of your cash or credit, and to top it all off, you are simply dealing with aesthetically pleasing residences. In the next section of this essay, “How to Get Paid to Buy,” we will examine a real-life case study of this kind of business transaction.