Do More Deals In Hot Markets By Offering Credit Repair
I don’t know about where you live, but there is a boat load of competition in my area. There’s a bunch more real estate investors in my market than there was 2 years ago, 1 year ago, heck even 6 months ago!
I used to be one of the two or three obnoxious We Buy Houses ads in my local free Pennysaver newspaper (now I can’t count them all), and bandit signs were as rare as honest politicians (now there’s a ton of them . . . bandit signs that is).
And the market is so hot here, that any reasonably priced deals whether advertised in the newspaper by FSBOs or entered on the MLS by agents, create an instant bidding war and are literally snapped up within hours.
Needless to say, we’ve had to get darned creative to find and get our disproportionately unfair share of the limited supply of real estate deals. Besides our superior intelligence and movie star looks, our real secret weapon has been offering the distressed seller credit repair or credit restoration services as it is sometimes called.
When talking to homeowners in pre-foreclosures, our sales pitch (oops . . . sales presentation) goes something like this:
“Mr and Mrs Seller, I understand that you’ve been going through a rough time these past months, but once things turn around, of course you will want to buy another house, get a new car, etc. Unfortunately, with the mess your credit is in right now that’s going to be pretty tough to do.
However Mr and Mrs Seller, I have a solution that no one else can offer you. If we do business together, at my expense, I will send you to a credit restoration service that will repair your credit. They can repair anyone’s credit by deleting negative items from their credit report, even bankruptcies! I don’t know how they do it, but these guys are good!
By repairing your credit, once again you will be able to get approved for a mortgage, a car loan, credit cards, qualify for lower interest rates and save thousands of dollars.
The credit restoration services are worth at least { . . . insert a dollar value here . . . }, and it’s my way of helping you.
Now, I just need your signature on a few real estate documents here . . . “
Even though your cost for the credit repair services will only be a few hundred dollars, I would suggest that you state a value of several thousand dollars . . . and in fact repairing their credit is worth thousands of dollars to the seller. Just consider how much money they will save because they qualify for significantly lower interest rates on loans as well as lower premiums for their car insurance. (Yes, auto insurance companies do partly compute your premium based on your credit report!) The sellers should also know that many employers now check prospective employees credit reports. (Yes again, getting a job could partially depend on a person’s credit report.)
I can tell you from personal experience that offering to repair the seller’s credit will differentiate you from other real estate investors in your market.
Offering credit repair will also make it easier for you to find buyers for your lease-option deals. While you may get some cash up front and a small monthly cash flow, the big payday for lease options is typically on the back end. But watch what happens when you offer credit repair:
Do you think that your pool of prospective buyers might expand? Could you ask for a larger down payment? Could you add another $5,000, $10,000 or more to the sales price of the house?
The answers to these questions are self evident.
Well there you have it, you can do more deals in hot markets by offering credit repair to your sellers and buyers . . . come to think of it, this tip should make you more money in any market!!
See ya at the bank . . .
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