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Real Estate News Articles
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Dear Fellow Investor,
My son surprised even me when he licked a number of other real estate investor pro's at their own game. He pulled off quite a coup when he purchased a really great single family home on an acre lot from a bank (REO) for more than $15,OOO less than the next higher bidder.
Did you get that? He bought it for less than the other bidders. $15,OOO less! How did he do it? Isn't the bank supposed to sell their REO's to the highest bidder? Not the lowest?
Stay tuned and you'll discover the secret to this amazing story...
My son had just turned 20 when he found this wonderful little 2 bedroom sitting along a rumbling creek. The lender had just foreclosed on it and was super motivated to sell it quickly. They were offering the house for $75,OOO under the appraised value because they had discovered that the 3 year old house was built without the proper permits.
Even though my son was quick to submit his offer, there were a number of other investors already bidding the price up well over the $65,OOO asking price. My son's first offer to the bank was $40,OOO.
"What? Was he crazy??" you're asking.
No. He wasn't crazy. Young & brash, perhaps. But not crazy.
After evaluating the offer, the bank counter-offered. In the end after more negotiations, my son purchased it for $50,OOO.
He spent another $20,OOO fixing the permit problems himself (if he had done like I told him and hired craftsmen to do the work, he would have spent a lot less on the repairs and saved himself a lot of time. But since when do kids listen to their parents?). He sold it for $140,OOO and cleared a cool $70,OOO.
"Ok, Lee, I'm impressed", you're saying. "But why would any bank in their right mind sell this property for less than other much higher bids?"
Glad you asked!
My son's offer differed from all of the other offers submitted to the bank in one very critical, deal-making way. My son's offer to this very nervous bank was a full cash offer with NO contingencies and a very quick closing. In other words, he was telling this seller that if they would accept his offer, there would be absolutely no reason that he wouldn't be able to close on the deal. Why? Because he had all cash. (Now, in case you're wondering where a 20 year old college kid gets that kind of green stuff, let me tell you, he had none. More on that little trick in a moment...)
What was the draw that got the bank to zero in on my son's offer? Unlike the other offers, my son's was not depending on an approval from another bank..., an approval that may or may not fly. So, he could promise the lender that soon this whole "unwanted albatross of a liability" would be off their books, 100 percent without fail. All they had to do was "sign on the dotted line" and they could be assured that the transaction would be completed and the funds would be in their account within a week's time, pending the title work. It was unconditional.
Do you see my son's ploy?
If you were a super motivated seller like this one was, can you see the reason why this offer from my son looked so attractive? Consider the downside for them if they had accepted one of the higher offers. Since all of the other investors' offers were based on getting a loan, the lender had to consider the downside if the buyer's loan wasn't approved. The deal could likely fall through and the lender would still be stuck with this house. They didn't want the house. They just wanted their "dough", even if they had to take a big discount to get it. You know what they say about "a bird in the hand is worth two in the bush"? Well, for this seller, my son was the bird in the hand.
There's a lesson here if you're paying attention and that lesson is this;
You don't have to be dealing with an REO to make this technique work.
The technique that my son used to pick up this incredible deal applies equally well to any motivated seller, whether it's someone in pre-foreclosure, someone getting a divorce, a remote owner or a displaced job. The first element in my son's story that you need to do to duplicate these incredible results is simply to find a very motivated seller.
If you're a graduate of one of USLandCo's excellent boot camps, then you already know how to find a motivated seller. It's the second all important element of my son's story that likely has you scratching your head...
So how does one offer all cash when you're bank account is hovering around zero?
The answer's so simple, no wonder it escapes you (don't worry, it escapes a whole lot of investors!) You don't need your own cash. And you don't need good credit. So what do you need? What you need are private lenders. Not banks. Banks are too slow and too bureaucratic. They want too much skin from you and provide too little of the money that you need to do deals. You need private lenders who will loan you all the money to do deals (100% of the purchase price plus fix up costs much of the time), quickly and efficiently with almost no paperwork or hassle.
What are private lenders? Just people, plain everyday people with money to lend. People with savings accounts, investment accounts, IRA's, or who own a home with a little equity. I can almost promise that you probably know a few people who fall into one of those categories. And even if you don't, guess what? There's a system that will show you how to attract private lenders from all walks of life, some that you know and many that you haven't yet met.
Alan Cowgill has created a simple, easy-to-follow method that will attract private lenders to you like flies to butter. There's no reason on earth that you can't have all the money that you could ever need at your disposal to buy properties with. When you have private lenders available to work with, it's like having your own private bank. All you do is pick up the phone and call your private lender. The fund approvals are that easy. I'll tell you this. Once you begin doing deals in this way, you'll never go back to playing the game the old way. Having private lenders lined up and eager to give you money simply can't be beat;
(1) You can buy properties cheaper, as in my son's case.
(2) You can increase your profits by offering all-cash terms that nervous sellers really like and are willing to exchange a big junk of their equity for.
(3) Since you'll never have to worry about "where you're going to get the money" to fund your deals ever again, you can make offers with confidence.
To learn more about Alan Cowgill's Private Lending Made Easy, visit http://www.uslandco.com/reiproducts/product.aspx?id=1422 or call us at (800) 808-6349 and ask to speak to one of our Course Advisors.
Don't procrastinate. The sooner you start the process, the sooner you'll arrive at the powerful realization that you have more money at your disposal than you ever thought possible... all because you have private lenders in your life pressing you.. even pleading with you to use their funds.
(Then, unlike my son, don't do the repairs yourself. Let someone else take their time to do them so you can quickly move on to your next deal. And the next. And the next...)
Check this out. Do it now. You can thank me later.
See you at the top!
Yours for Profitable Investing,
Lee Parker
Resources for the Serious Real Estate Investor
http://www.uslandco.com (800) 808-6349
P.S. The system that Alan teaches you to attract private lenders works like magic. If you think that it's only people like Donald Trump that can attract money, guess again. We'll promise that Alan Cowgill's Private Lending Made Easy will work like clockwork for you too. For more details of our iron clad promise, see http://www.uslandco.com/reiproducts/product.aspx?id=1422
P.P.S. For a very limited amount of time, Alan has authorized USLandCo to offer a free copy of his just released information explaining the ins and outs of how to avoid conflicts with the Securities and Exchange Commission when becoming a borrower of funds from private lenders. You'll definitely want to have this "must have" book in your library and it's available now for a limited amount of time for those who order Alan's Private Lending Made Easy.
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