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Using EHTs with UMR

This topic contains 13 replies, has 0 voices, and was last updated by Avatar of amyhutton amyhutton 11 years ago.

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  • #6365
    Avatar of amyhutton
    amyhutton
    Participant

    How can we use EHTs with UMR to make more than $450?

    I’m getting real frustrated with short sales. I mean REALLY.

    Amy

    #32592
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    @amyhutton wrote:

    How can we use EHTs with UMR to make more than $450? I’m getting real frustrated with short sales. I mean REALLY. Amy

    You all need to remember why we (Bill, Scott and Dave) introduced other services to the NARS Members to begin with. The goal was to find ways to allow us all to do more EHTrust Transactions in this new economy with overly over encumbered properties and excessive and unaffordable payments for homeowners and prospective RBs.

    Even though we had great hopes for Loan Modifications, we found out fast that wasn’t the answer. LFC is great for those who have the time, resources and gumption to follow through. For those who aren’t DIYers then 3ARC may be their answer. Now UMR/LFC comes along and offers yet another possible option for homeowners and investors. Other than having the resources through NARSCO for Short Sales, the process is still the same.

    So to more directly answer your question… UMR is another tool to allow you to do an EHTrust. Your money and profits are still in and should be the profit centers offered via the EHTrust, not affiliate commissions offered solely for selling the service.

    To be honest with you, I don’t intend to ever sell a homeowner a UMR membership. Listen to this…

    As a UMR Member yourself, you can submit an unlimited number of properties to the process. That means that if you make an offer to acquire an interest in an EHTrust and are a UMR Member yourself, as a beneficiary you can have the trust properties note purchased by UMR’s Investors thereby eliminating the over-encumbrance and possibly lowering the monthly mortgage payment.

    As an “Investor Co-Beneficiary” you would participate or share in all the profit centers of the transaction. The homeowner would either agree to staying in the place and be both the SB and RB or moving out while you put in a new RB. Either way you would now have the opportunity to…

    1. Bumped Equtiy
    2. Upfront money
    3. Monthly Cash Flow
    4. Note Reduction
    5. Equitable Growth
    6. Appreciation
    7. Improvements that increase value

    I would think that on a $250,000 property using the UMR program that you would make $5000 to $10,000 in Bumped Equity, a couple thousand upfront, $100 to $500 in monthly cash flow and another $20,000 to $50,000 over 5 to 10 years in Equitable Growth and Appreciation.

    Its all about the deal, not the the sell of a membership. To hell with the membership, do the deal.

    Yes, that means that YOU need to be a UMR Member, not the Homeowner. Of course, if making just $495 on the sale of a membership is fine with you, go ahead and sell memberships. I would rather have the homeowner pay the closing costs of the EHTrust and keep my discount as a profit, which is much more than $495.

    However…

    If it were my place I’d pay the $8k to 3ARC and have them do their thing first. I most likely wouldn’t be making any payments for up to a year and would result in only owing 50% of the value with much less payments as opposed to the UMR process, if they qualify, of still owing 100% of Market Value and payments that would most likely be higher than 3ARC.

    You need to give this choice to your Homeowner or Seller. Let them make the choice, don’t make it for them. Put it in your offer to Acquire an Interest in a Trust. This is exactly what the OCS Students are taught to do in their offers and why our NEOs are just a little different. In fact in some cases we don’t need an NEO at all and just go straight to a Simple Trust to secure our position and convert to an full blown EHTrust when and if needed.

    If you need help or assistance making these kind of offers, join OCS. If you are not a member, don’t the the cost of membership keep you from joining. I want you to be a member as bad as you want to be one. If I have to I’ll work out payment or some sort of profit sharing arrangement but don’t ever let finances stop you from joining OCS or closing deals.

    With that said, remember I can only deal with 24 members at a time (every 90 days). I have 19 members right now so that means I can have 5 more of you join before Sept 1st for the next cycle. If you’re interested in some Personal Coaching, Mentoring and Partnering email me directly at Scott@LandTrust.net. Do not use the PM feature in this Discussion Board, I do not use it.

    Fair Enough?

    #32593
    Avatar of sstanton
    sstanton
    Member

    @Scott M. wrote:

    As a UMR Member yourself, you can submit an unlimited number of properties to the process.

    I did not know this. That is good information.

    In this EHT/UMR situation, whose name in the new loan under?

    @Scott M. wrote:

    Yes, that means that YOU need to be a UMR Member, not the Homeowner. Of course, if making just $495 on the sale of a membership is fine with you, go ahead and sell memberships. I would rather have the homeowner pay the closing costs of the EHTrust and keep my discount as a profit, which is much more than $495.

    Actually, for free affiliates, it’s $379. Full members that have made three sales, it’s $758 per sale.

    Also, it takes me about 2 hours to get my marketing done for the week on a Sunday evening. I made one sale last week, with limited marketing. That comes out to about $379 per hour (I only did a limit amount of marketing, about an hour to set up). Works for me.

    And, I am working the EHT, that is still the primary goal, but money is money, time is never wasted when you can make it.

    #32594
    Avatar of gshepherd
    gshepherd
    Member

    @Scott_L._Moyes wrote:

    To be honest with you, I don’t intend to ever sell a homeowner a UMR membership. Listen to this…

    How would you work with other investors? I have 2 here in Dallas that want a credit partner to buy pre-foreclosure houses and them rent them out for 5 years. UMR looks perfect for them, but how do I run the homeowner through the UMR program without the investor catching on?

    FYI: I heard for the first time on the call last night that the UMR interest rate is between 8.5% and 9%.

    #32595
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    Ok guys, don’t get me wrong about selling memberships to UMR. Stu, I think that is awesome and you should keep it up for sure.

    My mission is to control property via the EHTrust regardless of which tool I use to achieve my goal. Even though my intent is to control the property and participate in the profits, I will always give the Homeowner the choice or option to DIY. That of course means they will purchase and pay for a 3ARC, LFC or UMR Membership. This is a concept I call… “Retail By Default”.

    A classic example of Retail By Default is a Network Marketing Company. They don’t call you up to sell you soap, they call you to offer an opportunity, right? Even if you are not interested in the opportunity they most likely sell you some soap. But at the very least they get a “sale” out of you.

    When I was a VP with AL Williams years ago, we took the same approach. We would say, “I’m a management recruiter for the largest and most successful financial marketing firm in the world and your buddy John gave me your name. John has recently joined our firm and is doing quite well and suggested you may also be interested in a $50k per year part-time management position. He said you were a really good guy and I called up to find out if that was true or not. Would you be offended if I asked you to interview for a $50k per year part-time management position”? Or something like that. I’m sure many of you have heard something similar.

    So here is what happened in just 14 years. Using that approach our ALW became the largest seller of Life Insurance in the world and sold more than NY Life, Metropolitan and Prudential, COMBINED. Remember, these companies had been in business over 100 years each. ALW became the largest and most successful financial sales organization in the world and all of that without a Sales Pitch for Life Insurance.

    If I had called you to ask if you wanted to buy Life Insurance you would have hung up, right? But if I called you to offer you a much better position than the one you had now??? BTW, 7 out of 10 I called for an interview ended up purchasing a Life Insurance Policy from me. Now that’s Retail By Default. Again, all without having to make a “Presentation on Life Insurance”.

    The moral of the story is this… DO NOT SALE THIS STUFF. This is not what we sell, it’s what we do. Don’t sell 3ARC, LFC, UMR or Trusts. Make Offers that will sell themselves. Appeal to their sense of GREED. Focus on EQUITY, LOWER PAYMENTS, STICKING IT TO THE MAN. In other words, all emotional and positive things.

    FAIR ENOUGH?

    #32596
    Avatar of dave salcido
    dave salcido
    Member

    @gshepherd wrote:

    @Scott_L._Moyes wrote:
    To be honest with you, I don’t intend to ever sell a homeowner a UMR membership. Listen to this…

    How would you work with other investors? I have 2 here in Dallas that want a credit partner to buy pre-foreclosure houses and them rent them out for 5 years. UMR looks perfect for them, but how do I run the homeowner through the UMR program without the investor catching on?

    I have spoken to hundreds of investor leads and one thing remains clear in my head, NONE of them have turned out to be competitors with whom I later regretted sharing information. I have seen, however, that these same leads have helped to me making hundreds of thousands of dollars in EHT, mortgage settlement and UMR transactions. They bring me deals and more affiliate leads. It’s incredible. Why does this happen? Because most so-called investors really aren’t investors at all. Neither are they affiliate marketers or even highly motivated entrepreneurs. They are mostly wannabes that never act on their dreams.

    I’m sure there may be one or two that have sapped me for free information and then went ahead and started their own business without my participation, but there are so many potential transactions out there that, even if this were true, their impact is negligible. I work on the theory of abundance, not scarcity. I tell the investor everything they want to know and wait for them them to bring me the “parts”. This strategy has worked well for me.

    #32597
    Avatar of sstanton
    sstanton
    Member

    What is the answer to this question that I posed earlier in this thread:

    In this EHT/UMR situation, whose name in the new loan under?

    I can see how this goes together, except for that answer.

    #32598
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    @sstanton wrote:

    whose name in the new loan under?

    The Homeowner. Why would or could it be anyone else? All we are is a co-beneficiary. The loans remain in the Homeowner/Seller’s name just like in any other EHTrust transaction.

    #32599
    Avatar of sstanton
    sstanton
    Member

    I thought with UMR their was a possibility that someone else would be on the note. Thank you for setting my straight.

    #32600
    Avatar of piloto
    piloto
    Member

    Scott Moyes wrote:

    If it were my place I’d pay the $8k to 3ARC and have them do their thing first. I most likely wouldn’t be making any payments for up to a year and would result in only owing 50% of the value with much less payments as opposed to the UMR process, if they qualify, of still owing 100% of Market Value and payments that would most likely be higher than 3ARC.

    Correct me if I’m wrong.

    Although with both programs the homeowner is still on the hook for 100% of the FMV, with 3ARCK they are making a payment base on a 50%-60% (depending on their ability to pay and keep paying) of FMV, with UMR the loan and the payment is based on the entire 100% of FMV.

    3ARCK gives the homeowner a better chance at recovery because of the substantially lower payment.

    From the investor’s standpoint–
    –Even though UMR gets rid of the over-encumberance they leave nothing on the table for you, thus you have to bump the equity above the 100% FMV and loan to build in profit…
    –3ARCK on the other hand leaves something on the table for the investor to apply as beginning equity for their beneficial interest in the Trust.

    This gives the homeowner another break because the investor does not have to bump their equity over the 100% FMV in order to build in profit.

    #32601
    Avatar of gshepherd
    gshepherd
    Member

    @sstanton wrote:

    I thought with UMR their was a possibility that someone else would be on the note. Thank you for setting my straight.

    Stu,
    Do you mean the co-signers option? AFAIK They can have co-signers on the initial application as long as the money is paid into the homeowners account.

    GS

    #32602
    Avatar of scott_l._moyes
    scott_l._moyes
    Participant

    Why would anyone in their right mind co-sign on a home loan or any loan for that matter? If it requires a co-signer to make it work, then in my mind, it shouldn’t be done, period!

    #32603
    Avatar of gshepherd
    gshepherd
    Member

    I’m just stating what the UMR program allows.

    #32604
    Avatar of sstanton
    sstanton
    Member

    On a recent UMR call, they stated a co-signer was OK.

    Greg, to answer you question, no, not a co-signer, I was thinking someone else to be on the loan (I think 3-ARCK allows that and I crossed the wires)

    #32605
    Avatar of dave salcido
    dave salcido
    Member

    Okay. Here’s what you can do with a UMR deal.

    1. Put property into trust
    2. Deed to Equity Holding Corp as owner and trustee
    3. Acquire your co-beneficiary interest
    4. Homeowner AND/OR co-beneficiary co-signer (if needed) can take financial responsibility for the mortgage
    5. Resident beneficiary can take over payment
    6. Cash flow property and split monthly profits
    7. Sell property down the road for an equitable profit

    The interesting thing to note is that the trustee can be on title while the new mortgage terms are agreed upon by the UMR investors and the person(s) assuming payoff liability. So, make your offer to be the “transaction coordinator beneficiary” and get positioned properly to equity share. Don’t delay another day. Do it now.

    As a UMR Master Affiliate, you can piggy back on my membership if you agree to some simple terms until you can get your own membership. But don’t forget to take advantage of 3ARCK as you consider options because the payouts are better and quicker.

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