Selling Property Fast in Today’s Market

This is the most fun part and actually the easiest part the way we do it. We are going to focus on the two fastest and easiest ways to get the most cash in the shortest period of time. These two methods are wholesaling and retailing for all cash.

Wholesaling

Most of the properties we buy we wholesale to other investors. This is probably the fastest way to get started and turn the money fast. With investors, they are buying strictly on the numbers and not on emotion. Also, with investors, you get repeat business. An investor is not just looking for one property. If you get a few investors, you can have a steady source to sell your properties to. There are a couple of things you need to keep in mind. It is very important to make sure that when you present a property to an investor, the numbers on the property are accurate. The worse thing that you could do is to fluff up the values and under estimate the repairs. You will lose your investor buyers very fast once word gets around. When you offer good deals to your investors then you will start receiving calls and emails from other investors wanting to be the first person you contact when you get the next deal. I have enclosed some of the emails that we have received from investors in an earlier section of this manual, as well as, some that we send out to our database to tell investors about a property. If you have multiple properties at one time you may want to use a form like the one I have included in this section. You can include all of the information, as well as, a picture. You also need a disclaimer in whatever flyer you send out. Feel free to use the one at the bottom of the “Wholesale Properties for Sale” form in the manual and on your forms disc. When wholesaling, you can either assign the contract or you may have to close in your name before you can resell the property. If the property is bank owned you will probably not be able to assign your contract. The banks have really tightened up by not letting the contracts be assigned. We still have a few that will let us assign but I think they only let us because they have sold houses to us in the past. The reason they have started getting strict with this is the fact that there are a lot of beginning investors that will get a property under contract with the intentions of selling it before they have to close. Because they are just starting out (and don’t have my course) and can’t get the property sold in time, they have to back out of the contract. Lenders do not like it when this happens. For this reason they have almost completely stopped letting buyers assign the contract. I have enclosed a disclaimer in the contract section that we use when we are selling to investors. This is very similar to a disclosure that some of the lenders use when selling REO properties. Since we don’t know anything about the property because we just bought it ourselves, we feel that we need to let our buyer know that and the best way to do that is in writing. Now in my market we are able to buy our properties cheap enough to be able to sell it to our investors at around 70-75% of value including repairs and closing costs. However, I know that those numbers do not work in all areas. Wherever you live or want to buy property you need to check with other investors, your real estate club leaders, etc. to find out what investors are willing to pay in your area. As an example, in a lot of areas in California investors are willing to pay 80-85% on a property. After all, in a million dollar house, if you have only 15% equity, that’s still $150,000 profit if it sells fast. Many of the items I have already taught you in this course are used for wholesaling as well as retailing, leasing and lease optioning. Therefore this section does not need to be a very long section other than to clarify what wholesaling is.

Retailing for Fast Cash

In this section, we are going to talk about retailing houses to owner occupants. You can make more money per house by retailing and also get into more creative financing strategies by accepting a second mortgage, buying the rate down, paying closing cost, etc. Because you have more profit to work with, you can be more flexible on helping your buyer qualify. The down side is that once you sell a house to someone there is not much chance that you can sell them another one. The good news is that you can get lots of referrals once you help someone become a homeowner. Have you ever lowered the price of a house you have for sale as a retail property? Hopefully, after you read this, you will never have to do that again. Did you know that for every $1,000 in price reduction of a home it only changes the payment about $6 dollars? That is not much of an incentive for a buyer if you ask me. However, if you keep the price the same and offer to pay closing costs or carry a small second mortgage, it greatly increases the number of qualified buyers that could purchase your home. I would like to suggest that before you ever put a home on the market to retail that you get an appraisal first. Let me also say that there are appraisers out there that can stretch the value but I don’t recommend going that route. I have seen many sellers that found an appraiser to stretch the value but what good does it do when the lender is going to require either a desktop review or another drive by appraisal or possibly another full appraisal? Besides, you don’t want to get a reputation with the lenders of pumping up the values of your homes, not to mention the possibilities of fraud becoming an issue. You don’t want any part of that. You want a good appraisal by a reputable appraiser. Now, once you have a good clean appraisal, you are ready to market your property and, instead of dropping the price, you offer to pay closing costs (most lenders allow up to 6% in seller concessions). This will increase the number of potential buyers that can buy your home. The realtors also like it (if there is one involved) because their commission is based on the purchase price. Another way to increase the number of buyers that can qualify for your home is to use some of the seller concessions to buy down the rate. Builders do it all the time. You can buy the rate down for the life of the loan or just for the first few years. This

makes for a lower payment and thus more buyers can qualify for your house! This one technique can save a deal. Ask your lender about this and they can tell you how much it will cost to buy down the rate on your property. You can also contact my mortgage company to help you by calling 877-LarryGoins (877-527-7946) or by visiting www.FinancialHelpServices.com.

I have included in this course the form we use when we are qualifying a retail buyer. There are many, many questions to ask the buyer. Remember, you must get them to like and trust you before you can ask too many questions. The questions on this form are very powerful. We have tried to think of every possible method a buyer could use to qualify for a loan and the get the necessary down payment. For example, many of our retail buyers have a co-signer. Many of them also have a relative that gives them all or part of the needed down payment. There are also many down payment assistance programs available, as well as first time homebuyers programs. I have included a current list of all of the down payment assistance programs I am aware of at the time of this writing. Many states have seller disclosure statements that must be filled out and given to the buyer or potential buyer when purchasing a home. I have included our state’s disclosure statement for you to see. I have also included a generic one as well. I also wanted to let you know about the lead based paint disclosure that is required when selling or renting any property built before 1978. I have included a copy of the government publication “Protect Your Family from Lead in Your Home” brochure, as well as, the disclosure. Please check with your states regulatory agency to see what disclosures are required in your area.

I hope you have enjoyed this article taken from my course called the Ultimate Buying and Selling Machine! which teaches how we buy and sell 5-10 properties a month, have them sold in less than 2 hours and never leave the office or look at them. For many more articles and a 10 part ecourse on how to create your own Ultimate Buying and Selling Machine! as well as over 50 training audio recordings you can listen to online, download and collect, simply go to www.LarryGoinsFreeOffer.com where you will gain instant access to all of this and 51 Exclusive Editable real estate investing Forms and Documents all FREE! You will also get two FREE real estate investing eBooks, A free Personal Coaching Profile to help you jump start your real estate Investing, FREE Nationwide Wholesale Property Listing Notification, FREE Weekly Training Teleconferences with Different Topic Each Week, FREE subscription to Larry Goins “Almost” Weekly Investing Newsletter, FREE Admission for Two to Investor Palooza 3 Day Training Event, FREE Admission for Two to Larry Goins 3 Day Boot Camp, Plus over 31 Exclusive Articles on real estate Investing and Much More! Just go to www.LarryGoinsFreeOffer.com. Thanks and I look forward to working with you, Larry Goins