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talking to sellers

This topic contains 11 replies, has 0 voices, and was last updated by Avatar of ed_kerr ed_kerr 12 years, 2 months ago.

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  • #5443
    Avatar of ed_kerr
    ed_kerr
    Member

    Scott,

    #1 Which form do you use to bump the Equity in the property?
    ( Terms of proposal or NEO or what)
    #2 Can you tell me what you say to a seller about Bumping the price to the seller..(How do do this with RB’s)
    #3 When the seller refuse to give you the balance on their loan. Is
    this a no? Some only want to give me taxes, HOA, Etc. Sellers have told me its none of my business.
    Also if they don’t want to give me their payment amount.
    Is this a waste of my time with those property owners.

    Thanks

    #28457
    Avatar of areyes
    areyes
    Member

    1) It’s in your proposal template which should automatically fill out your NEO, Appendix 1(purchase offer), and terms of proposal.

    2) Personally I have one separate Appendix 1 with the seller based on an MAV. I tell the seller that anything above this MAV would be profit to me.

    Then if I’m able to secure and match up a RB, then I would have the RB use a second separate Appendix 1 with the bumped equity MAV. I do this so they don’t know the MAV that I’ve negotiated with the seller and I.

    During escrow, have NARS compile both appendixes to come up with the contributions and final MAV.

    This was taught to me by Jim Pasquini.

    You don’t need two separate appendices between SB & IB, IB & RB. It’s just an alternative way to break it down. This is what I’m comfortable with.

    You can have 1 MAV that includes your bumped equity as a contribution, but I’ve never experienced explaining this to a seller.

    3) Walk away and move on. They’re not motivated. Make sure to cuss them out. (I’m kidding about cussing them out). Just politely thank them for their time and hang up.

    #28458
    Avatar of getsmart
    getsmart
    Member

    I was gungho when I first started I was asking for deeds all the time and to my surprise i was getting them. now I am a little shaky asking for deeds and the remorse probably shows.

    How are you guys asking for the deed? I am not highjacking the thread since its title talking to sellers.

    #28459
    Avatar of mtnwizard49
    mtnwizard49
    Member

    Try using caps like they taught you in 1st grade. It’s smarter and makes everything easier to read.

    #28460
    Avatar of getsmart
    getsmart
    Member

    Gary, I don’t care what appears to be smarter since I have a lazy typing hand, I am only using proper caps so you can add your feedback. Do you have any feedback?

    #28461
    Avatar of areyes
    areyes
    Member

    @GetSmart wrote:

    i was gungho when i first started i was asking for deeds all the time and to my surprise i was getting them. now i am a little shaky asking for deeds and the remorse probably shows.

    how are you guys asking for the deed? i am not highjacking the thread since its title talking to sellers.

    We don’t ask for deeds via sub2. Not even quit claim deeds.

    We tell homeowners to create their own trust to hold their real estate asset for their own benefit and protection. We then mention that there’s a 3rd party trustee who’s job is to hold their title until we perform to the agreement by either buying it outright or reselling it. We use analogies to help the seller understand that the trustee holding their title is similar to an escrow company or title company holding their title for the benefit of all parties. That’s it.

    Especially when a homeowner has their own business, I tell them, “look we both have our own personal liabilities that can affect your property with lien attachments. We’ll set up a trust agreement to hold your property, your title, your negative equity, for your benefit as well as ours. We’ll take over your payments and responsibilities for a couple of years until we can qualify for a loan or simple resell the property.

    I’d go into these detailed answers after they’ve agreed to do the lease to own for a few years. Otherwise what’s the point if they’re not even going to agree to your basic terms of keeping the loan in place?

    #28462
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    @mtnwizard49 wrote:

    Try using caps like they taught you in 1st grade. It’s smarter and makes everything easier to read.

    Gary please, its one thing to criticize those who question our methods. But to criticize someone for not using caps or punctuations is getting really nit picky.

    You once told another poster that this was a “professional” board. Maybe, but, it is much more professional to pull them aside, like in a private email, and instruct them in proper netiquette then to take them out at the knees and look stupid or foolish. Build them up, don’t tear them down.

    Thanks,

    #28463
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    @GetSmart wrote:

    I was gungho when I first started I was asking for deeds all the time and to my surprise i was getting them. now I am a little shaky asking for deeds and the remorse probably shows.

    How are you guys asking for the deed? I am not highjacking the thread since its title talking to sellers.

    We/I NEVER ask for the deed, ever. We are asking them to NOT GIVE US THE DEED, but to preserve and protect it by vesting it with their own Trust/Trustee in THEIR OWN NAME and for their own benefit.

    Hope that helps.

    #28464
    Avatar of getsmart
    getsmart
    Member

    I see what you are both saying but when discussing the deed, whether in trust or not. Scott what is the benefit of vesting the deed to the trustee over a corp? Other than the dosc and liens?

    #28465
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    @Ed_Kerr wrote:

    #1 Which form do you use to bump the Equity in the property?
    ( Terms of proposal or NEO or what)
    #2 Can you tell me what you say to a seller about Bumping the price to the seller..(How do do this with RB’s)
    #3 When the seller refuse to give you the balance on their loan. Is
    this a no? Some only want to give me taxes, HOA, Etc. Sellers have told me its none of my business.
    Also if they don’t want to give me their payment amount.
    Is this a waste of my time with those property owners.

    #1 – None, there isn’t a form for “bumping” equity. The MAV is whatever you Mutually Agree it to be. If the seller wants $200k and you want $10k, then the MAV may be $210k.
    #2 – We don’t “bump” price to the anyone. The buyer’s price will only be determined at termination by an appraisal. The MAV is only a starting point of value by which all future profits are to be based.
    #3 – Hang Up or say, I need to know so I know how much of a check to write you at termination, otherwise I’ll put zero, FAIR EHOUGH? Or… I’m going to make you a Full Price Offer, that’s not going to change by me knowing what you owe or exactly what your payments are, is it? Or… just hang up.

    #28466
    Avatar of mtnwizard49
    mtnwizard49
    Member

    what is the benefit of vesting the deed to the trustee over a corp? Other than the dosc and liens?

    This is basic NARS material that you should know in order to be able to discuss the transaction with your prospect.

    USING ONE’S OWN CORPORATION

    Would create a merger of title, invalidating the trust, should it be challenged in court as not being a bona fide land trust (see N.C. A.G.O. vs Russell and Dianne Barberio 2005)

    A privately or closely held corporation would not charge legitimate fees and therefore would not likely be seen by the courts as a bona fide holding company, whose business it is to hold titles in trusts and charge fees commensurate with industry standards.

    One’s own corporation would not be seen by a co-beneficiary as a mutually trustworthy, and wholly unbiased third-party holding (escrow) entity. Such a bias would not be in the best interests of co-beneficiaries. As well, using one’s own business entity would create a merger of title invalidating the land trust model.

    USING AN OUTSIDE CORPORATION AS TRUSTEE

    In virtually all states, any corporation used as a holding company must be either: 1) one’s own corporation (see above), 2) a chartered depository trust institution (e.g., Bank and Trust, Title and Trust, etc.) or, 3) a non-profit, charitable corporation established solely for the purpose of holding titles to real estate in trust for the benefit of its members.

    WHY WE USE EQUITY HOLDING CORPORATION:

    The Third Party Non-Profit Corporation

    A professional non-profit entity specifically and solely engaged in the holding of titles in land trusts. Fully staffed by full-time knowledgeable professionals.

    A reasonable trustee fee is charged, which is well in line with industry standards is charged, enabling the creation and funding of an un-paid 3rd-party collection & disbursement entity (a free bill paying service for the benefit of members).

    Cannot die (re. Probate issues), and is well backed financially to allow for careful adherence to all laws. rules and regulations relative to reporting and maintenance of a consistently good standing with the state.

    Fully bonded as a trustee for title holding, beneficiary directed, 3rd party trustee nominee title-holding land trusts.

    Fully recognized as a bona fide holding institution by any court that would/might be challenging the integrity and structure of the land trust or holding to adherence to statute and or standards in states wherein land trusts per se are specifically legislated and authorized

    Functions a fully unbiased and unassociated third-party title holder (escrow-type) holding entity.

    #28467
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    @GetSmart wrote:

    I see what you are both saying but when discussing the deed, whether in trust or not. Scott what is the benefit of vesting the deed to the trustee over a corp? Other than the dosc and liens?

    The Trustee is a Corporation. (Equity Holding Corporation) None of the individuals or beneficiaries can have any association with or part of the Trustee. A valid Trustee is also Licensed and Bonded and provides deals with inquiring minds for you, like Attorney’s and Creditors. Especially a System and Trustee that has stood the test of time and ALL Challenges?

    WOW, that’s who I want holding title to my property. Oh, they already do.

    I can’t tell you how many times I’ve had EHC deal with Bankruptcy Courts, Attorney’s, Creditors etc, all for FREE.

    Will your choice of Trustee, like your own Attorney, have the savy, experience, knowledge, etc to deal with any of the issues that can and do arise over the term of the trust?

    #28468
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    @mtnwizard49 wrote:

    what is the benefit of vesting the deed to the trustee over a corp? Other than the dosc and liens?

    This is basic NARS material that you should know in order to be able to discuss the transaction with your prospect.

    USING ONE’S OWN CORPORATION

    Would create a merger of title, invalidating the trust, should it be challenged in court as not being a bona fide land trust (see N.C. A.G.O. vs Russell and Dianne Barberio 2005)

    A privately or closely held corporation would not charge legitimate fees and therefore would not likely be seen by the courts as a bona fide holding company, whose business it is to hold titles in trusts and charge fees commensurate with industry standards.

    One’s own corporation would not be seen by a co-beneficiary as a mutually trustworthy, and wholly unbiased third-party holding (escrow) entity. Such a bias would not be in the best interests of co-beneficiaries. As well, using one’s own business entity would create a merger of title invalidating the land trust model.

    USING AN OUTSIDE CORPORATION AS TRUSTEE

    In virtually all states, any corporation used as a holding company must be either: 1) one’s own corporation (see above), 2) a chartered depository trust institution (e.g., Bank and Trust, Title and Trust, etc.) or, 3) a non-profit, charitable corporation established solely for the purpose of holding titles to real estate in trust for the benefit of its members.

    WHY WE USE EQUITY HOLDING CORPORATION:

    The Third Party Non-Profit Corporation

    A professional non-profit entity specifically and solely engaged in the holding of titles in land trusts. Fully staffed by full-time knowledgeable professionals.

    A reasonable trustee fee is charged, which is well in line with industry standards is charged, enabling the creation and funding of an un-paid 3rd-party collection & disbursement entity (a free bill paying service for the benefit of members).

    Cannot die (re. Probate issues), and is well backed financially to allow for careful adherence to all laws. rules and regulations relative to reporting and maintenance of a consistently good standing with the state.

    Fully bonded as a trustee for title holding, beneficiary directed, 3rd party trustee nominee title-holding land trusts.

    Fully recognized as a bona fide holding institution by any court that would/might be challenging the integrity and structure of the land trust or holding to adherence to statute and or standards in states wherein land trusts per se are specifically legislated and authorized

    Functions a fully unbiased and unassociated third-party title holder (escrow-type) holding entity.

    Now that’s the Wiz we all know and love. Thanks Gary!

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