Home › Forums › General › EHTrust/EHT Topics and Creative Real Estate Financing › KISS Please
May 17, 2007 at 11:06 pm #3345
I have an email response from a seller with the following questions below. I am sending this out to the brilliant ones so that I can respond brilliantly. I submitted the letter and proposal to the client. I offered him full price and trust for 3 years. Thank you for your input.
“Could you please send me a breakdown of what this deal will consist of and how this works? I have read over your proposal and am not sure of exactly how this will work. What costs am I responsible for this move to a trust? Who is responsible for the mortgage payments while the land is in this trust? When will I and my mortgage company receive our payments?
I am basically looking for a layman’s “un-lawyer-lized” description of how your service works and what will happen.
Thank you for your time”May 17, 2007 at 11:30 pm #20672
So I re-wrote the proposal in my own words and I am seeing a much better response.
No you cannot have a copy, so don’t ask.
Use your own words. Find out what works in your area.May 17, 2007 at 11:46 pm #20673
Are you seriously that selfish? Part of reply are to assist not patronize. I wish you the best of luck in your endeavors and when I can help you, I will.May 18, 2007 at 12:20 am #20674
Based on the question from the seller it sounds like you did not give them the simple version over the phone or at your first meeting.
The simple terms are in the first conversation between you and the seller. That is where you tell them that you are looking for someone who will stay on the loan for a while and keep any or all the equity in place. If that is acceptable you will make all mortgage payments, property taxes, insurance and any maintenance and repairs.
The seller should be clear before they get the offer letter what you intend to do.
That was not said to sound negative to what you did just to paint the picture.
Now that you are where you are, you can just say what you want to do in your response. You will start making there payments every month until you can pay off the loan.
Let them know if there are any costs to them in you transaction. This should answer the questions they had.
If they have more questions just answer them.
Questions are good!
I find it easier to talk on the phone then to trade email. You may want to give that a try too. If you are not sure and are a network member give Bret or Bill a call and see when they can help you talk to the seller.
Good luck!May 18, 2007 at 4:59 am #20675
I believe you have the KISS formula given by the above.
BUT, I and all, especially new members would like to know your formual or the speed of your formula.
You joined on May 17, 2007, (yesterday) and have already met with a settlor, made three post, already have a NEO and Propasal out with e-mails coming back from the Settlor.
I think all would benefit from your technique.
You said you would be happy to share with anyone. Please do.May 18, 2007 at 11:47 am #20676
I’m all for simplification however, in an effort to “simplify” we sometimes leave out some very important information. In my experience, at first, it is not the process or the method they are buying in to. It is YOU!
A few weeks ago I posted an example of the method I use to “simplify” the process of making an offer and spoon feed this elephant to prospective Sellers.
I’m sure that Marc does receive many more replies and continued conversations about how he is going to take over the Sellers Loan etc. However, is that resulting in closed EHTrust transactions? No offense Marc, but I highly doubt it.
There is nothing wrong with feeding them the entire Elephant (EHTrust Proposal), just break it down into bite size pieces. Your initial conversation, in my opinion, should never be longer than a few minutes, if not seconds, and never should the topic of Trusts should come up.
All you want to know is… are they willing, in return for a Full Price Offer, to consider yada, yada, yada? If they are then you can say, alright, if you dont’ mind, let me ask you a few important questions and I’d be more than happen to send you an initial proposal to look over.
Now it’s a matter of asking just enough questions to send a “simple” email or letter, I send the Full Cover Letter and Terms of Offer. Before sending it I explain to them that if they have any questions, please write them down and either email them back to me or call me, and I will answer any question they have. If you want to proceed from there then I will send a formal offer. Thats when I send the NEO and Appendix #1 Purchase Offer.
In the “Old Days”, like 4 years ago, we didn’t have an Offer or Proposal Template. All we used was the plain NEO and Appendix #1. It worked then and it still works today.
What I believe some of you are trying to do is… close every deal. Just make offers for crud sakes and close the ones who get it. Believe me, you don’t want to close them all. It’s not hard to close a few per month if all you’re doing is making a couple dozen “solid” offers.
I made at least a dozen offers last week. The dozen or so I made the week before have resulted in one that I’m closing today, RB and all. It’s a 1.2 Million Dollar home that the guy only owes $780K. He is willing to refinance, pull out $150,000 and allow ME (via the RB) to take over his new loan. I get $40k of the beginning equity, split $1000 per month in cash flow and 25% of the Net Profits at termination. The SB gets the other 25% and the RB 50%. The RB is coming in with $37k plus first month. Guess who gets the difference after the CC?
This guy came to me as a result of a offer I made almost a year ago to another seller who referred him to me. I never did the deal with the other seller btw. He called me because he had a guy who wanted to buy his house but couldn’t qualify and heard about me from his associate that turned down my offer the year before.
Why did this guy refer him to me even if he turned me down? Because all the offers I make, I continue sending reminders to them that I exist at least once per month for 24 months. That includes all Realtors, Lenders, Lawyers and Sellers that I’ve ever talked to. I send out about 1000 post cards per month now. That results in all the referrals I can handle.
Don’t “Over Simplify” your Offers or this business. There are only three things that you need to focus on…
I can personally guarantee you that using the Full Offer and Proposal Template is NOT going to result in you losing a Good Deal if you present it correctly. That should be your “Simple” part, not the documentation.May 19, 2007 at 2:56 am #20677
Oh, by the way, I’m flattered by the comment from the previous post. I like Scott’s approach. I am just making offers. Some respond and others don’t. This guy just happen to respond (1 out of 4) offers I emailed out this week.
My seller came back with these questions even though everything is spelled out. It tickles me. However, I do see the opportunity to tie up this property and assist him in getting into a home in the area he wants to move in to. I was looking at how to respond or walk:
“Thank you for your quick response. I have just a few more questions about my particular situation.
My family wants to relocate closer to Grand Rapids for my job. We are looking at businesses such as yours as a quick way to sell our house without the hassle of a realtor. We wanted to use the money from the equity in this house as a down payment on the next.
Since banks figure housing costs to be 30% of a monthly income, if I am listed as one of the beneficiaries of this property after I move, will the bank I go through for my next mortgage see that and will it count against me as already having housing costs? After you assume control of this property, I will have a certain amount of time to move (I believe your paperwork said 30-60 days). Since I plan on using any money received from this house as a down payment on the next, When can I expect to receive that?
Thank you for your time.”May 19, 2007 at 3:27 pm #20678
alan dale grossMember
These are Jim’s answer to the Equity Buy-Out Scenarios, from one of his Q and A posts, to the Seller;
” Q: What about my Equity ?
A: There are Several Ways to Handle this:
We can buy your Equity at the start of the trust. ( at 50 cents on the Dollar ? or other ?, if you or a Partner has Cash, to do this.)
The Mortgage can be Refinanced to Withdraw the Equity, for You.
A Second Mortgage can be placed on the Property, to Withdraw the Equity for You. ( and Sold for a Discount, to recieve Cash or Kept to Recieve Payments.)
Equity can be Paid Directly to you, Monthly, ( and the Balance Owed to you Paid Out, at the Termination of the Trust.)
Equity can be Carried like a Certificate of Deposit.
Equity can be Paid Out in a Lump Sum, at the Termination of the Trust.”
Folks ‘handle tis’ differently.
Jim ‘Sell’s them’ on their Equity, and gets the deal.
So, depending on your position and whart you are ready, willing and able to do, the Seller could have some Options for recieving their Equity or “a Portion of it !”, other than at Termination.
This is the Question I probably get THE MOST, is Seller’s Confusion on Closing and Termination and how they are different, because thier Mindset is just like this guy,”Use you to Sell and get Equity” OR “So, Are You Going to Make This Payment NOW ? – because it’s Killing them and yet, generally it’s preferable for us to take the OPTION, for 45-90 days, etc.
And, there are ways to work good with this, too, just like Bill says, on the tapes.
The Debt to Income Ratio Letter and Lender Letters should be used to help them understand the New Mortgage thing.
Do you have them ?
I have a “Terms” sheet, that I’ll send to your “Greg@” e-mail.
I plan to make a Jim’s Equity Buy-Out Explanation Out-Line, for the Seller, if needed, to discuss with them and a Scott’s Partnering with the Seller Out-Line, too, to add along, for their edifacation.
Bret’s “There may be No Benefit to You, but other’s have Benefitted from _________ ” could be added to “the Benefits to the Seller” Portion.
Get down, AlanMay 20, 2007 at 12:16 pm #20679
Are you seriously that selfish? Part of reply are to assist not patronize.
Nope, I just don’t want anyone getting the idea that I am competing with NARS. Based on the most popular post on this board, Bill and his gang like to sue folks.
You specifically are not authorized under any circumstance to charge others for services rendered relative to our stuff unless you are clearly a paid licensee ($120K upon approval) or a principal in the particular transaction (e.g., seller, buyer or an actively participating beneficiary in the transaction).
So if I am not a principal in your deal, you are not going to see my modifications.May 20, 2007 at 12:33 pm #20680
You apparently haven’t learned that NARS members tend to share our insights and ideas with other members.
So I re-wrote the proposal in my own words and I am seeing a much better response. No you cannot have a copy, so don’t ask.
That, my friend, in my opinion, is a childish attitude. Rather than brag that you had a better way but wouldn’t share it, why didn’t you just keep that information to yourself, or was it so important to be front and center: “It’s mine and you can’t have it”?
Your obvious need for attention is sad. Just my opinion, of course.May 20, 2007 at 12:43 pm #20681
You never get what I am saying. I’m not surprised that you don’t get this one either.
What I am saying is to write it in your own words Don’t use my words. Use your own words.
However, is that resulting in closed EHTrust transactions? No offense Marc, but I highly doubt it.
Actually, my signup rate jumped after I reworded the form. My problem is that I can’t get a tenant. I have 6 options right now with signs and directionals and all I get is looky-loos.May 20, 2007 at 12:49 pm #20682
I got EXACTLY what you said. You thought you have a better way but thumbed your nose at other members telling them to figure it out themselves. This IS English, Marc, and we do understand it here. Then you said you would only divulge it for money but Bill likes to sue people so unless someone makes you a principal in their deal they can go jump. That I find insulting and arrogant to Bill and to the other members. You are in his house here. A little respect. We are like family and you are acting like the spoiled child who tells everyone else to go stuff it. As to your inability to find tenants, that is fully understandable.May 20, 2007 at 1:45 pm #20683
No you still have it quite wrong.
I never said I would divulge for money. You assumed that.
I am not telling anyone to stuff it.
I am saying to write it in your own words.
I am saying that I did that and it worked better for me
unless someone makes you a principal in their deal they can go jump.
I never said that.
So if I am not a principal in your deal, you are not going to see my modifications.
I said that.
You assumed I meant that I am offering something. I am not.
Stop making assumptions. I am not going to show my docs to anyone other than folks I am dealing with directly. If you want to see them, then I am truly sorry, but I am not going to show them to you. If you have a problem with that, then get over it.May 20, 2007 at 2:59 pm #20684
You are the LAST person whose docs I would want to see. That is hilarious. Get over yourself. Nobody else who posts here has demonstrated such a clear lack of knowledge of the NARS system or an attitude that challenges anyone who questions your reasoning. You were the one that said an RB could force us to sell for way below the mortgage balance. How wrong was that? If there is anyone from whom I would seek advice on this board it is either Scott Moyes or Jim Pasquini, definitely not marcdonovan. Have a nice day.May 20, 2007 at 3:23 pm #20685
So I re-wrote the proposal in my own words and I am seeing a much better response.
No you cannot have a copy, so don’t ask.
Use your own words. Find out what works in your area.
I understand about using your own words, but why bother telling us about what works if you are not going to share with everyone. After all, we come here to share ideas and information with each other.
If you re-read, you will find your statement to have an arrogant flavor to it
If you send a copy to Bill, I bet he would say, share it with others; providing that there is no personal monetary benefits.
If there was something I could contribute to this board, I would share it with everyone knowing that, it has my mark on it.
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