SNEAK PEAK! INSTANT MOTIVATED SELLER, CASH BUYER AND PRIVATE LENDER LEADS USING REI LEADS ON DEMAND
Super excited to give you guys a [SNEAK PEAK] at a tool I literally just got sent over to me from my software development team.
This is going to make it so easy to get Motivated Seller Leads, Cash Buyer Leads and Private Lenders leads instantly.
I'm going to call it REI LEADS ON DEMAND!
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Randy - The REI Rockstar
HOUSE FLIPPING CASE STUDY #1: VENTURE RD - 45K GROSS PROFIT!
This is a short sale deal I did back in 2009.
Let me walk you through this.
I had been in real estate investing for two years building websites to get leads and joining every online forum I could to understand how to MAKE MONEY in real estate. Hopefully no money down and with OK credit.
It seemed like every time I got a lead I wouldn't know what to do with it.
I didn't know what to say to the seller.
I didn't know how to find the value of the home.
I didn't know how to fill out a contract.
I didn't have a title company, attorney, and LLC, a realtor, a contractor or appraiser on my so called "power team".
One day a local investor called me.
He must of seen one of my websites advertising to help people out of an "underwater" home.
The conversation went like this.
Nick: "Is this Randy?"
Nick: "I see your craigslist ads and websites everywhere offering to help homeowners with selling their unwanted real estate, are you making money?
Me: "Uh... No man..."
Me: "Well every time I get a lead, these so called "real estate professionals" gladly take my deals and never call me back for any updates or anything".
Nick: "I'm an investor that does those deals, do yourself a favor, the next deal you get call me and we'll make some money".
Me: "OK. Cool."
So I did just that. The next deal I got, I went on the appointment with Nick to be a "fly on the wall".
After that appointment Nick said next time you do it.
Two weeks later a seller named Damon entered his information on one of my "motivated seller" websites offering to help homeowners who are underwater on their homes in Arizona.
I immediately called him to access the property and his situation.
He basically bought the home during the "real estate boom" for over $315,000
About two weeks earlier my investment partner went with me on another "short sale" deal in Peoria, AZ so I could see him talk to the seller and sign all the documents (And wow are there a lot).
Now it was my turn.
I met Damon at a Jack in the Box in south Scottsdale, AZ. I was pretty anxious reviewing ten different documents as I nervously sipped my soda over and over to feel "normal".
As soon as Damon sat down with me at the both, I confirmed everything we talked about over the phone. I explained that I saw his "Notice of Default" in the Pinal County records.
I reiterated that because we will be buying the property for less than he owes he won't have to fix up anything or pay any closing costs (technically) as this will all be apart of the shorted transaction.
He was happy to hear that and I had him sign EVERYTHING. An affidavit of understanding and a short sale addendum, even a quit claim deed and inadvertently two purchase and sale agreements. OOPS!
After the meeting I called my investment partner who was the "go to" investor for short sales locally. He calmed me down and said great, "Now go get ten more!".
Two months later, he called me to state the first and second mortgages agreed to our offer of $72,500 since the values in that area had fallen so much and we were offering cash.
CASH? I didn't have a but a few hundred in my bank account and that was probably going to bills, bills and more bills.
Nick assured me we won't spend a dime other than the original $10.00 earnest money deposit we agreed to on Damon's purchase contract.
The private market responds quickly, there were actually companies who's business model was to lend money based on three key factors:
- The purchase price of the property
- The resale price of the property
- The End Buyer
That's it. As long as you had a buyer lined up to buy for more than what you were "contracted" for... YOUR APPROVED!
What I had just learned was transaction funding. A far different type of lender I understood even though I was a loan officer at one time brokering every type of borrower from A paper and Alt A to sub-prime hard money.
They lent money for short term for at least one day to as much as 91 days!
They charged a small fee they called "points" and that comes out of your deals profits.
My mind was blown.
Nick further explained that we will be listing the property on the MLS (multiple listing service) for a much higher price of $110,000.
I have to admit even at this point I still didn't quite get it.
I had questions like>
"Do I still pay closing costs?".
"Am I responsible for an appraisal or inspection cost?"
"How does this investor savvy Realtor get paid on both sides of the transaction?"
"Is this legal?"
Before I could even research these things, Nick called me to state we had a bidding war. That several buyers are bidding well above the original $110 list price on the MLS.
Our Realtor chose the best candidate and accepted an offer of $121,000 with a substantial down payment!
We closed on the property and grossed over $45,000 in profit!
From that moment on I was "hooked".
I went on to flip tons of homes that were underwater. I rarely went to these homes, I just met the sellers, confirmed the motivation and made sure they were in a real and legitimate "distressed" situation and signed them up!
For your reference I posted a screen shot of the purchase and resale of that property below.
The rest is history.
If I can do it, you can to! Be a REAL ESTATE ROCKSTAR.
Randy - The REI Rockstar
The REI Rockstar
Confessions of A Real Estate Investing Rockstar: Rants, Raves, and Real Estate Tips.
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