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Hitting singles rather than waiting for a homerun

Home Forums General EHTrust/EHT Topics and Creative Real Estate Financing Hitting singles rather than waiting for a homerun

This topic contains 18 replies, has 0 voices, and was last updated by Avatar of areyes areyes 10 years, 8 months ago.

Viewing 15 posts - 1 through 15 (of 20 total)
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  • #5550
    Avatar of areyes
    areyes
    Member

    IOA = Interim Occupancy Agreement with a Simple Trust

    Instead of waiting around to hit a home run (EHT’s and 5% or more), why aren’t NARS members using IOA’s when majority of the RB’s have less than 5%? I would think you can make a quick 5k-7k by hitting a couple of single bases using IOA’s with the intent to do a full blown EHT in a year or two when the RB’s can come up with the difference.

    The 400+ list of RB’s that I have, about 188 of 413 have 5% or more. That means 225 of them that don’t have 5% do have 3k-10k in cash and may potentially be good candidates for an IOA trust setup. I would think IOA’s should be much more DOABLE, MARKETABLE, and SALEABLE with the buyers out there.

    Majority of us already know EHT’s like the back of our hands. If the SB and RB matches up, it should be a simple close. I think IOA’s should be a mainstream for all of us right now by hitting a few singles while hitting home runs once in awhile.

    Sure IOA’s are just another way of doing a lease option and you may have landlording duties and evictions, but would this stop you from doing 5k-7k per deal? Sure the risks are there but they have the option to acquire an interest in personal property/beneficial interest in the trust and they may fall into the 80% of lease options that don’t pan out. So what? You stand the chance of making $5k-$7k in a down market and helping both sellers and buyers with some of the burden.

    With the intent of doing a loan modification first to fix the bad financing out there….

    Would you wait another 1-3 years for that perfect home run of closing an EHT based on RB’s with 5%?

    or

    Would you close a few deals within weeks or months by hitting a few singles using IOA’s with a simple trust based on RB’s with less than 5%?

    Of course, the answer is to do “both”.

    It would be great to have a Saturday teleseminar on the IOA process and documentation.

    #28885
    Avatar of homesavers
    NULL
    Member

    I agree with you Alvin. First you have to get up to bat before you can even hit a single. What I mean is if you are playing the game the idea is to score points. If you have three on base and you hit single you score a point. We need to load the bases so to say. Make offers to sellers (swing) hit a few that get caught, tagged out at first or get a base hit. If and when we do get a base hit how do we get that runner home for the score? The score would be an RB (runner) that can qualify for a loan at the end of the term.
    I do not want to put any “runners” on base that cannot make it home for the score. Would you?

    #28886
    Avatar of areyes
    areyes
    Member

    Getting signed NEO’s from SB and getting a pool of RB’s isn’t the problem. Making offers isn’t the problem. It’s how we’re able to match them up. Even though 5% is just a guideline, our main intent is to close with RB’s that do have 5% or more. When you’re pulling in more RB’s with less than 5%, why not just close the deal already using an IOA now and THEN DO the EHT down the road. It’s just a delayed EHT right? Most of our NEO’s are for 90 days before it expires. How much time would you give yourself to make 5k-7k by closing an IOA sooner rather than “hoping” to find that RB with 5% or more to close out the EHT within your NEO period? Unfortunately, nothing closes and it just expires and we’re off to the next NEO.
    NARS has taught us well on how to compensate any short falls in regards to negative cashflow, small up front contributions, etc. It’s that basic give and take method that Bill uses all the time.

    If they have 5% – 10%, close with an EHT.

    If they have 1% – 3%, close with an IOA with a simple trust and get a promissory note for the difference and bump the monthly payments until the difference is paid off.

    #28887
    Avatar of jerry carey
    jerry carey
    Member

    Hey Alvin!

    I don’t diagree with you said about the use of the IOA!

    What I cannot understand is how can you have a 188 potential Resident Beneficiaries with a 5% contribution and not be able to find one single Settlor Beneficiary/Seller :?:

    I would be a lot mope concern about that than worrying about the 225 with less than 5%! It seems it doesn’t matter how much they have … if you cannot find a Settlor Beneficiary/Seller :!:

    Jerry Carey

    #28888
    Avatar of areyes
    areyes
    Member

    Being only one guy and 188 RB’s with 5%, it’s overwhelming. I need to get better at giving these RB’s direction to bring me suitable properties for me to make offers on. Also it’s been extremely difficult to find So Cal properties with good financing. That’s why I need to make offers subject to a loan modification. Right? Fix the financing, then it gives me a huge step closer to a transaction.

    #28889

    You know, I can’t help but put my two cents in here.
    First, I agree with Alvin – it’s the matching that’s the problem or challenge and anyone who makes light of that is bogus!
    Second, I’d like to propose a novel idea. If someone comes on this board like a peacock strutting his/her stuff – for instance, if someone comes off like they know what they are talking about and that someone else should be able to do make a NARS deal very easily, then “put up or shut up! “I hope Bill reads this – he might like this straight talk.
    Here’s the “put up or shut up” idea:
    If you make a retort, and imply that it’s so easy, tell a NARS member to basically “just do it”, then the “put up” is that you (meaning any one who posts like this) should now tell us how well THEY are doing! Tell us HOW MANY matches YOU have actually made, WHEN you made them, and HOW you did it. Let’s take the BS out of the process and not waste each other’s time.

    Cheryl
    Landtrust Partners
    SF Bay Area

    #28890
    Avatar of homesavers
    NULL
    Member

    @land trust partners wrote:

    If someone comes on this board like a peacock strutting his/her stuff – for instance, if someone comes off like they know what they are talking about and that someone else should be able to do make a NARS deal very easily, then “put up or shut up! …

    Anyone that comes on this forum to say it is easy is full of Sales hype. It is not easy. Alvin is not saying that he got 35 NEO’s that all expired. Why because they were either bad loans or the RB’s didn’t like them. That is why Scott and Co. created the alliance with ACES. He knows there are a mass of bad loans out there which kills the NARS EHT long term method of holding properties. I keep saying there are ~15,000 properties on the MLS over here. That is the bucket buyers pull from. REOs are selling because they are lien stripped and discounted.
    This is the reality here folks. We can get NEO’s with Sellers, we can find RB’s with bad credit. What cannot seem to do is match these two entities together. People are still picky about where they live even if their credit is poor.
    How we solve this matching issue determines our success here. If we cannot solve this then we might as well do something else.

    #28891

    And that’s the TRUTH! no BS!!! Amen to that!

    Cheryl
    Landtrust Partners

    #28892

    @homesavers wrote:

    Anyone that comes on this forum to say it is easy is full of Sales hype. It is not easy.

    Absolutely 100% Correct. IT IS NOT EAST but… it is simple.

    It is simple to make a call, all you do is pick up the phone and dial.
    It is not easy to pick up a phone and dial, especially if you have talked yourself into call reluctance.

    It is simple to make and offer, anyone can do it.
    It is not easy to talk to the seller, realtor, lender, attorney, etc about the offer.

    I could go on and on about simple vs. easy.

    Any of you who have the NARS Material or have been to a NARS Training should remember this quote…

    And this is not easy, but it is simple:

    “You must be willing to do, for a little while, what others are unwilling to do” – Bill Gatten

    “Doing for a little while what others are unwilling to do, means being able to charge for a lifetime for what others are unable to do”. – Bill Gatten

    @homesavers wrote:

    Alvin is not saying that he got 35 NEO’s that all expired. Why because they were either bad loans or the RB’s didn’t like them. That is why Scott and Co. created the alliance with ACES.

    BINGO!

    #28893
    Avatar of homesavers
    NULL
    Member

    @Scott_L._Moyes wrote:

    Absolutely 100% Correct. IT IS NOT EAST but… it is simple.

    It is simple to make a call, all you do is pick up the phone and dial.
    It is not easy to pick up a phone and dial, especially if you have talked yourself into call reluctance.

    It is simple to make and offer, anyone can do it.
    It is not easy to talk to the seller, realtor, lender, attorney, etc about the offer.

    I could go on and on about simple vs. easy. …

    You know what Scott I think I have solved this paradox. I am no Einstein but I believe I have solved the equation. E =MC2 Where E is equal to Energy (Closed deal) and M = Mass (Documentation) and C= Speed of Light Squared(Negotiation).

    In simplifying I would say to ponder Occam’s Razor- which translated from Latin is: “entities must not be multiplied beyond necessity.”

    Now I applied this to the business of bringing people together that are not able to participate in the game of Real Estate. The games rules are house is owned by person 1 that wants to sell it. Person 2 comes in to find Person 3 who wants to buy it. What makes it so hard for us is Person 1 does not want to sell it by the game we are playing because we have a different set of Rules. I call these, Gatten Rules. Now if we can have them join our game and play by our rules then it is game where all of us can win.

    I have just figured this out. How by mainly talking to a lot of people and posting questions on this forum.

    #28894

    @homesavers wrote:

    I have just figured this out. How by mainly talking to a lot of people and posting questions on this forum.

    CONGRATULATIONS!!!

    #28895
    Avatar of homesavers
    NULL
    Member

    Now I have to prove it on a consistent basis.

    #28896
    Avatar of dbhenderson
    dbhenderson
    Member

    Pick up the phone.

    Call rentals (because they have already decided they will take payments and are not hung up on “cash only”).

    Ask them if they are willing to sell it to you after you have rented for a while. If they say yes . . .

    Tell them you need an NEO signed so you can help them market their house with out a RE license.

    Put out the yard signs (Lease2Own) and directionals, post with pictures on your web site, post flyers in the grocery stores etc., put out car window cards, etc.

    Find the RB (like Alvin suggested — if they have 1% to 3% sign the interim lease agreement, if they have 5% to 10% do the NEHT. The tax benefits and share of the appreciation is the incentive to get the NEHT completed ASAP.)

    Bump the equity $10K.

    Build in $300 a month positive cash flow (because of the tax benefits and the share of future appreciation, the net lease payment is competitive enough to compete with any rent payment and give you your $300 PCF).

    I don’t have any “cash” so I can’t do bank owned, foreclosures, auctions, rehabs, flips, exchanges, discounted purchases, etc. So, I’m forced to do the above and focus on making it work!

    Become a Lease2Own expert!

    Keep focused on what you do!

    #28897
    Avatar of scott
    scott
    Member

    :lol: Matching problem?

    I have 100% matches BEFORE I call. Get your creativity going and see if you can figure it out.

    #28898
    Avatar of homesavers
    NULL
    Member

    @scott wrote:

    :lol: Matching problem?

    I have 100% matches BEFORE I call. Get your creativity going and see if you can figure it out.

    Common sense. Your marketing buyers first then you are having them find properties. Alvin does that too. However he cannot place them at this time because they cannot afford the payments. A 90 day plus loan mod process may help if the Seller wants to move out but this is also a Catch 22.

    You do not have a matching problem because in Texas houses are more affordable do to your extremly high property taxes. This keeps the price of your properties down. Can you imagine over 3 percent property tax on a California 200K home? That is over 6 Grand a year in just property taxes!!! Of course you do not pay income tax which is over 9 percent (in the high bracket) over here in Sunny, rip off California.

    Share some of your “creative” solutions here Scott it may or may not work for some of us here.

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