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February 24, 2020 @ 9:59 am

Ep 094 When Things Go Wrong On A Substitution Of Collateral Deal, How To Make Them Right

On this episode we talk about how things can go wrong on creative financing deals and how to make them right. Most mistakes made on deal structuring boils down to miscommunication or lack thereof.... We talk about some mistakes that can be made and how to renegotiate with the Seller, specifically when using Substitution of Collateral. This is a multi-layered episode all about moving money from one deal to another for a higher yield. Listen closely to find out how to move financing around on different properties to create a win/win for your Sellers and a better interest rate for yourself for more profitable deals. Happy Investing!

And to get special access to a step by step video on how to structure offers, text CFP to our hotline at 877-409-8090 or click HERE.

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February 17, 2020 @ 3:00 am

Ep 093 The 6 Most Common Objections On Seller Financing And How To Handle Them

  1. Objection: We want 20% down- Question: what do you need it for or is it a trust issue? Be their advocate. Explain all the reasons you have to make sure this works for them.
  2. Objection: Interest rate too low- Question: what's the issue with the rate? Solution: show them the gross earnings and compare it to parking the money in the bank. Ask them what they would like and explain why the payment has to work for you.
  3. Objection: I want a shorter term- Question: is there a reason why you need a shorter term? Solution: the longer you hold this the more money you’ll make, wouldn’t that make more sense. Add an extension option to the contract for a fee to get an additional year if need be.
  4. Objection: I don’t want to be in second position- Question: what is your concern with second position?, isn’t your equity already in second position because of the loan you have on the property? Solution: Explain their equity position and how the banks have to be paid first if they were to sell the property for cash. Therefore their equity is in second position anyway.
  5. Objection: I want more money- Question: is there a reason you need that money? What is most important to you purchase price or terms? Solution: I can give you more money if you are willing to hold financing longer or we may have to adjust other terms such as interest rate, or down payment.
  6. Objection: I am afraid of the due on sell clause- Question: what's the worst case scenario for you? Solution: Explain that for them to exercise the due on sell clause they have to stop taking payments, the bank could no longer accept your monthly payment and then would have to start foreclosure proceedings and banks don’t want toxic assets on their books because it impacts their lending ability. Also explain that you have the most to lose in the deal because of the money you’re putting down. And  maybe you can do a land contract or contract for deed and/or take certain precautions such as don’t notify the bank of the sale, don’t cancel insurance that’s already in place, pay through a third party ESCROW.

                     Remember to always voice their concern, validate the concern, ask a why or what question, then offer the solution or                         “objection handler”. Happy investing!

And to get special access to a step by step video on how to structure offers, text CFP to our hotline at 877-409-8090 or click HERE.

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February 10, 2020 @ 3:00 am

Ep 092 Case Study- Deal Breakdown; What To Do If Your Seller Is Buying On A Contract For Deed

On this episode Jeff walks us through another case study. It’s a single family home, they owe 45K payment 675/month PITI. Kitchen and bath needs to be updated. She was asking 125K and the home was worth 200K so Jeff made some offers. At first she was not open to terms. He offered 114K Cash, or 122K short term financing with 20K down and he would take over the monthly payment. She accepted the short term finance offer. Now the Seller throws him a curve ball, the Seller was buying on Contract For Deed and was not on title, so Jeff could not buy on a All Inclusive Trust Deed as they originally agreed to... Find out what Jeff does to solve the problem. Happy Investing!

And to get special access to a step by step video on how to structure offers, text CFP to our hotline at 877-409-8090 or click HERE.

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February 3, 2020 @ 11:50 am

Ep 091- How To Get A Pre-foreclosure Subject To Deal Done in 2 Days!

On this episode we talk about a Subject To deal that Jeff got done in 2 business days. Not without risk either. Jeff had to put down money before he closed on the property. This deal is creative in a few ways, Jeff was able to get the Seller to commit to working with him to get the property closed. He got his title company on board up front and made sure they could close in 2 days. Jeff had to threaten a lawsuit against the Trustee attorney and the bank in order to get a payoff statement, and 12 hours later was able to get the reinstatement and payoff for the first loan and the payoff for the second mortgage. He bought it subject to both mortgages, reinstated the first loan for 15K, got the second discounted for 5K, offered to pay the Seller 20K and was able to immediately sell it to for a 40K profit to the person who brought the deal to him. Plus he was able to coach his Buyer on how to buy on Hard Money and then refinance the property, so the sell could be done fast. 

The biggest risk Jeff had to take was to pay the reinstatement of the loan without transferring title before hand, because the Seller lives out of state and they had no time to get closing docs signed and back to the title company before the Trustee Sale. Jeff shares what he would have done differently in retrospect to protect the money he paid to reinstate the loan.

SO... suggestions to get Pre-foreclosure done fast- 

  1. Get the Seller's commitment up front to working with you to get the deal closed.
  2. Contact your title company immediately to make sure they can close on your time frame.
  3. Threaten a lawsuit against the bank and/or Trustee to get a payoff/reinstatement.
  4. Call the bank on the Seller's behalf so you're in control and not waiting on the Seller.
  5. Reinstate the loan before closing with the Seller if you don't have enough time to complete the transaction before the Trustee Sale/auction.
  6. File a Notice of Interest/Memorandum before reinstating the loan if you are unable to close the sale in time so to have some kind of security on the property.
  7. Lastly, if you're wholesaling/wholetailing the property, line your Buyer up with a Hard Money lender to get the deal done fast.

And to get special access to a step by step video on how to structure offers, text CFP to our hotline at 877-409-8090 or click HERE.

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