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This is my first deal and need HELP!

Home Forums Documentation Assistance Documentation Assistance and Advice This is my first deal and need HELP!

This topic contains 1 reply, has 0 voices, and was last updated by Avatar of mandalay mandalay 11 years, 3 months ago.

Viewing 3 posts - 1 through 3 (of 3 total)
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  • #5126
    Avatar of mandalay
    mandalay
    Member

    1. I sent the proposal template to the seller without anyone checking from the NARS Office. (I think something is not right.)

    2. Do we ever negotiate the price with the seller? The COMPS I’ve seen is alot lower than what the seller is asking. Should I just call the seller and tell him to cancel the deal?

    3. This is how my script look like when and if I’m reading to find a RB.

    NO BANK QUALIFY
    NO DOWN
    NO CREDIT APP
    As little as 3 adv. pmts and Closing cost moves you in – $265,000 4+3 w/SPA, Incld, 1636 sq ft. Only $ 1450/mo+tx & Ins.

    Seller asking price $265,000
    Seller’s Monthly payment $1,450
    He is not sure whether insurance is included.

    Anybody is welcome to correct my script.

    If we are saying NO DOWN, why are we asking for 3 adv pmts. How do we determine 3 adv pmts or 2 or whatever.

    When do we say NO CLOSING COST in the script?

    #27075
    Avatar of neftalipazo
    neftalipazo
    Member

    Mandalay, I hope you do not mind me replying to this post. I’m a new member as well but believe that I have a good understanding of the process and this is a great opportunity to test my knowledge. I’m sure that if I state anything incorrect, Joe or any other NARS member will correct me and we will both benefit.

    1. I sent the proposal template to the seller without anyone checking from the NARS Office. (I think something is not right.)

    I do the same. The information needed to fill out the proposal I gather from the initial interview with the Settlor and subsequent interview that Brett conducts. Once Brett finishes the interview he contacts me and gives me all of the rest of the information necessary including what I should offer, what the Settlor should pay, what the Settlor should get, etc. The proposal verbiage, however, stays the same as it should be. I do not see the need for a review or check from the NARS office. I’m pretty sure that if you request a review one will be done for you.

    2. Do we ever negotiate the price with the seller? The COMPS I’ve seen is alot lower than what the seller is asking. Should I just call the seller and tell him to cancel the deal?

    Everything is negotiable. However if the Settlor wants to negotiate what is in the proposal, I would ask him/her what is in the proposal that they do not agree with or that they would like to see different and tell them that I will run it through with my associate and will get back to them as soon as possible. At that time, I will contact Brett again and discuss the aspects with him and follow up with exactly what he tells me to do. Remember though, that Brett will not negotiate with the Settlor on our behalf. That it is something that we have to do with his guidance. Again, I’m pretty sure that other NARS members can help with this as well. I would not cancel the deal until talking with Brett again.

    3. This is how my script look like when and if I’m reading to find a RB.

    NO BANK QUALIFY
    NO DOWN
    NO CREDIT APP
    As little as 3 adv. pmts and Closing cost moves you in – $265,000 4+3 w/SPA, Incld, 1636 sq ft. Only $ 1450/mo+tx & Ins.

    Seller asking price $265,000
    Seller’s Monthly payment $1,450
    He is not sure whether insurance is included.

    Anybody is welcome to correct my script.

    Unless you are counting on making money out of the equity built in, if any, or future equity, this deal looks like you will not make any money upfront nor any cash flow. I’m surprise that the Settlor does not know about the insurance. This is very simple, if it is included in the mortgage payment then he does not have to write a check to the insurance company, otherwise he has to. I think I would know this without having to look at any paperwork.

    If we are saying NO DOWN, why are we asking for 3 adv pmts. How do we determine 3 adv pmts or 2 or whatever.

    NO DOWN is just that. There is no sale and loan generation at this time. Accepting money down may/will create an equitable interest in the realty property and may/will be considered by the IRS as a disguised sale, not to mention that it may trigger the due on sale clause by the lender. We have been WARNED against this from the beginning and there are numerous posts in this forum with this regard. The reason for the 2, 3, or whatever advance payments are for the protection of the Settlor and ALL beneficiaries of the Trust and required by the Trustee as per agreement(s). This is really simple, the RB is just a renter. He has to pay the first month and put a “contingency” fund. This is similar to the security deposit used in normal leases. Usually, as an IB all you will need is the first month payment plus two months for the contingency fund. Remember, that the contingency fund is fully refundable if the RB does not exercise his option as long as he/she has met all of the other parts of the contract.

    When do we say NO CLOSING COST in the script?

    When the Settlor has agreed to pay for them or when you as the IB will pay for them. This is not to say that you cannot get the monies from the RB by marketing differently. Example:

    No Money Down
    No Bank Qualify
    No Closing Costs
    5% plus 1st Month Moves You In

    From the 5% you will be able to put the 2 months contingency fund, pay to set up the trust, and pocket some CASH upfront.

    This is a great system and deals can be engineered in many ways to your advantage. I just follow this simple rule: Market for SB’s and RB’s, make calls, let Brett do his finesse dance and do and say EXACTLY what he tells me, and if all goes well make money.

    #27076
    Avatar of joecain
    joecain
    Member

    Nice job NeftaliPazo. I have nothing substantive to add. Your responses and suggestions to mandalay are right on the money. Congratulations on absorbing all the info at your disposal.

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