Home › Forums › General › EHTrust/EHT Topics and Creative Real Estate Financing › Marketing suggestions anyone
August 21, 2009 at 8:16 pm #5789
I have signed NEO on a property that the owner was renovating and ran out of money, now they just want out. Whoever my RB is will either need $$ to pay for completion or skill set to do it their self. Any suggestions on how to market this?
Am presently shopping it to rehabbers I know, but the payoff of loans and monthly payments are above what most normally would pay right now.
thanksAugust 22, 2009 at 6:09 pm #30018
Pretty Easy. Here’s the ad:
REHABBER SPECIAL! (Your Headline) or HANDYMAN SPECIAL!
Partially completed 3 bedroom (or whatever it is)
$x dollars to get it ($23k or whatever it is)
$x dollars per month ($1250, or whatever it is)
Any Credit Ok!
I’m showing it Saturday, August x, 2009 from Noon to 1pm!
[Stick in the cash you want/need. Don't worry. People who want to pay less will call you and ask if you'll take less. Don't think you're closing doors.]
Now do this:
1. Stick this ad on Craigslist.
2. Email every ad on Craigslist that identifies themselves as a rehabber or an investor. (Look under the Real Estate Wanted section). Paste the above ad in your email. Some rehabbers and investors will contact you back
3. Use the above ad on a flyer, and stick the flyer(s) in a flyer/brochure box next to the sign you have For Sale in the front yard.
4. Use that ad as a Cheapie Postcard, and mail it to 500 homes radius
around the subject property (.28 cents) per card OR hand-drop a flyer)
5. Stick that same ad anywhere else online that’s FREE!
6. Stick that same ad on FSBO websites for FREE!
7. Pay a real estate agent a FLAT FEE to stick it on the MLS
IMPORTANT… do not, do not, do not get into any of the particulars about Land Trust, PacTrust, NHT Trust etc. UNTIL you are sitting down comfortably with a person who has already told you: (a) YES, I want the property and (b) YES, I have the x dollars needed to get it, and (c) YES, I can afford the monthly.
Why on earth do you (WE) need to get into ANY specific details whatsoever, unless we’re talking calmly, comfortably, and well prepared with a REAL BUYER (somebody who WANTS IT and CAN AFFORD IT).
Personally, I’ve come to look at our docs just as I do “LOAN DOCS”.
Believe me…. nobody, and I mean nobody sits down to review and sign their LOAN DOCS until… what… purchase contract is signed (I want it), some kinda money is in escrow (more confirmation of want), and the lender is satisfied the buyer is QUALIFIED (has the necessary income, credit and downpayment). Heck, our trust structure ELIMINATES the need for any RB to have so-called good credit.
When prospective buyers (rb’s) ask: “Oh, how does it work?”. “What’s the interest rate?”, “Whaddya mean by Any Credit Ok?” yada, yada, yada… simply smile and say, “Hey… I’m really tryin to save time here, and I’ve got all the docs for buyers to review, so let me ask you with all due respect… Do you WANT it?, and Can you AFFORD it? If so, we’ll go over the docs. Thanks!”
By the way, I suggest calling all the paperwork “docs”, (short for Documentation.) Everybody knows the word “docs”. Also, say the word “docs” as if it’s no big deal. Really. “We’ll go over all the docs”.
Say it aloud a few times. Get the “ohhhhh-this-is-a-big-deal” outta your voice. The docs, the docs, da docs! It’s all in the docs! Or simply say PAPERWORK. Bottomline: Talk details only to folk with MONEY and DESIRE for your property.August 22, 2009 at 6:26 pm #30019
Sorry. I just re-read RICH’s last paragraph… loan/payments too high.
Simply tell sellers their loan is too high, and they’ll need to make up the difference outta their pocket. Remind them that you’re getting them way more than mere rent. AND remind them that they’re avoiding FORECLOSURE on their record.
If they don’t see the value in keeping a foreclosure off their record, OR if they don’t see that you’re getting them more per month than a normal rent (which they cannot do anyway due to property condition)… we’ll if they just can’t see it, or can’t afford the difference… MOVE-ON. They are headed to foreclosure… no doubt about it! Unless, mmm, they can get a loan mod approved at LESS PER MONTH, then maybe somebody else pays it. Make the trust long enough to for value to catch back up to balance due. OR, maybe SHORTSALE is the answer. (I’m now laughing at myself for being all over the map with this thing, yet, it is what it is! lol). Good luck. Heck, where’s Scott or Bill or Dave!August 23, 2009 at 5:05 pm #30020
Thanks for all the suggestions Kevin! Quite a few along the lines of what I was thinking, though sometimes the wording ties me up!
I just found another owner on the title that I have to track down so it may all be a moot point, but good ideas not only for me but anyone else who might be in a similar situation, so thanks again!!August 23, 2009 at 5:26 pm #30021
These are all great suggestions and I think you should do them if you proceed with this deal. However, as you know, I tend to be a little more simple.
1. Get it under contract via an NEO – This requires no more than $10 on your behalf.
2. Market the property for an RB that has or is willing to do fix-up or completion. Here’s the deal though with an RB doing “Fix-Up” or “Improvements”, don’t let THEM do the work. I suggest you always require at least 2 bids from licensed contractors. Give the RB dollar-for-dollar credit for materials only and no credit for labor. They may ASSIST with the work.
Seller Will Carry if YOU…
Make the payments and Finish the Rehab to your liking.
As Little as 5% plus 1st month… Moves YOU In!
No Credit, No Closing Costs
3+2 in the burbs
See this website for pics and details
(I prefer they visit a website with ALL the details and either qualify or dis-qualify themselves before I ever talk to them. If they don’t have what it’s going to take to complete the work or what I’m looking for I tell them to get lost. I have no problem walking from a deal if I can’t find EXACTLY the RB or Buyer I’m looking for, period, no exceptions).
3. Make sure the RB you select has plenty of CASH to complete the project over say a year or so. I would also put in the Agreement that the credits for work are only available within the first 24 months.
4. If you don’t find the EXACT RB you want then be willing to walk away at the end of your contract (NEO) period.
5. Also consider a Short Sale. With the condition the property is in now, the lender may be more motivated to dump it and make someone else finish the rehab.
6. You may even go so far as requiring the Contractor Estimated Costs to be placed in the Contingency Fund and have it paid out via direction of the beneficiaries as per the contract with the Contractor.August 23, 2009 at 6:47 pm #30022
Thanks Scott for your take on this deal.
1. Get it under contract via an NEO – This requires no more than $10 on your behalf. Exactly what I did. However, I should have dug a little deeper before I met with SB then I would have known beforehand about the other owner…my mistake.
2. Market the property for an RB that has or is willing to do fix-up or completion. The wording on this I was stumbling over. Kevin helped open up the thought process, as have you. Thanks!
3. Make sure the RB you select has plenty of CASH to complete the project over say a year or so.The credits are also a good idea. I have been shopping it around to rehabbers I know that are still active in this economy merely because I know they have the skills and money available. Obviously I would rather have a qualified RB that will keep the
4. If you don’t find the EXACT RB you want then be willing to walk away at the end of your contract (NEO) period. This I do always, regardless of how the deal is structured. No profit, no deal.
5. Also consider a Short Sale.The owner I’m working with does not qualify yet. He happens to work for the bank where his primary loan is, and says he’ll lose his job if he defaults. Considered who the bank is that would not surprise me in the least. Always an option I keep open thougn.
6. You may even go so far as requiring the Contractor Estimated Costs to be placed in the Contingency Fund and have it paid out via direction of the beneficiaries as per the contract with the Contractor.
This one I have never considered, did not even know it was a possibility! What a great idea!!
Thanks a bunch Scott!!
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