An Example Of A Preforeclosure Deal
A REI newbee asked me the other day how do I structure my deals for birddogs. I sad depends on a deal. For the other beginners, if you have the same question, here is an example of a preforeclosure deal:
You find a house worth $100K that is about to be foreclosed upon. You contact the homeowner and he or she agrees to sell you the house for $65,000 (a 35% discount) rather than lose it at auction.
You fill out a simple contract that gives you the right to purchase the house. You then give the homeowner a $10 deposit on the contract so it will be legal.
At this point, all you have to do is sell the contract to an investor for $70K for a quick 5k profit. if you can source your deals beter then the rest of your aerial commpetition, you can make some serious money. If you happened to score in any of LA arias, just bring the contract to me and I pay for each and every one of them for as long as the owner was not your pure neighbor minor son who you owe the theatre money.
The great part is that you would not have to come up with any of your own cash because the investor will be the one who actually purchases the house. Sounds grate? Then hit the road early and good lack!
PS
Do not ask me for the contract form. Contracts are usuly provided by your REI 'sansei' or guru whose program you just hapen to complete!
omega1[ Edited by omega1 on Date 12/20/2003 ]
If I had a deal from a birddog I would give them a 1000 contract forms. You are lazy Omaga Oh I miispeellred yur nome I sorie
Ted Jr
Tedjr:
Thanks, I blew coffee all over my monitor.
You are right, that is basically a short sale deal. There are some keys forms that you will need to help you complete the deal. Also, having some knowledge on how to construct the deal is essential. My main focus has been in this area because it has been very lucrative for me. I don't even search for them. All of my deals have come from owners in trouble that seem to find me.
OK noirmodels,
Can you tell us how the owners in trouble has found you instead of the other way around? What do you do: post bandit signs, advertise in the penny saver magazines ? lets keep this discution live!
omega1
Hey Omega1...you beat me to the question...I would like to know your strategy also "noirmodels"...would you mind sharing your secret with enquiring minds?
Hey Omega1,
In your example that you have given to us newbies...What's the payoff amount? Don't you have to factor this into the deal?
Can someone also tell us a bit more about fliers as a method of marketing? (Works for my crow in some demographic arias.)
And maybe my misspelling friend Trt-jr-cowman from TX can tell us also, why birddog don't like farmers anymore?
omega1
millionaireinthemaking,
You been active over here but how about some real street smart, kick-ass work.
The first advise I can give you is to 1) work on your atack strategy 2) write it on paper, then when it looks good 3) us your weekends to pass some flyers and business cards into the doorjams, car washes, etc. so you can get some needy homeowner's calls. Everywhere you go, you tell people what you do and promiss $500 commission if they refer you a seller...
Another good place we use for networking and finding prospects a.. [ Edited by omega1 on Date 12/20/2003 ]
Can someone also tell us a bit more about fliers as a method of marketing? (Works for my crow in some demographic arias.)
And maybe my misspelling friend Trt-jr-cowman from TX can tell us also, why birddog don't like farmers anymore?
omega1
I appreciate the insight...It just confirms I'm on the right track of my street smart k...a.. strategy.
I am very interested as well.
But can I ask is anyone one else who is watching from the sidelines at all confused by the wording in some posts or is it just me.
umm...yeap!!!!... I'm just going along to keep it live
And me tooooo...