All Forum Posts by: Jackie Lange

House is worth $85,000

Seller will take $38,000 - We have a contract for that price.

3 bedroom, 1.5 baths, 1 car garage. Needs only cosmetic repairs. Free and Clear. It was rented for $800. But the tenant moved out and the seller is out of state so he says sell sell sell.

He has also agreed to a highest bidder sale if you can do it the weekend of January 14/15th. The terms would be Seller gets the first $38,000, you and the seller split all proceeds over that 50/50. The house should sell for $60,000 at least which means you'd make $10,000.  

If you are near Toledo and interested, let me know.

I have a free 24-part video series called Foundations of Wealth by Legendary Investor Jack Miller who was absolutely the most creative real estate investor I have even known. 

He also a audio book about Facing Your Fears. We identified the 20 things that hold people back from getting started with real estate investing - then busted through the fears with easy solutions.

Download this free ebook to learn 5 low risk techniques for making money with real estate. It takes LITTLE or NO cash to get started and you won’t have to borrow money or fix up houses.

Learn how to be your own boss instead of making money for others. 
Learn how you can retire in 5 years or less
How to solve other people’s real estate problems.
How to find motivated sellers & negotiate a win-win contract with them.
How to make money without buying houses.
How to generate monthly recurring income without being a landlord.
How to sell or rent a house for top dollar in 1 week.

Here's the link to the free book

https://www.cashflowdepot.com/education/free-ebook/

My Happy New Year gift to you!

If you want to just make money with real estate without using cash or getting loans then a wholesale flip is the best way to get started.  You need to build a buyer's list first.  These are people who can pay cash for old run down houses.  Then you start looking for old run down houses that you can get under contract well below market.  You can assign your contract to the rehabbers - you'll get paid at closing which is usually a few weeks later.  Or, you can do a simultaneous close where you write a new contract with your buyer.  You'll typically make $5,000 to $10,000 per deal.  

If you want to start generating monthly cash flow, find houses you can lease below market with the right to sublease.  This is called a sandwich lease or a master lease.  Your cash flow will be the difference between what you pay the owner and what you collect from your tenant.  I have a lot of students who went from $0 to $10,000 a month in cash flow in just a few years using this technique.

In BC there are a lot of motivated sellers right now. Any foreigner who owns property there has to pay an extra tax every month.  I heard from one guy who is forced to pay $5,000 a month.  It's insane.  Many of those people would love to sell.  Get an option contract at a pre-negotiated price, then find a buyer.  Your profit is the spread.  I have some unique ways to get houses sold in 7 days.

Bryan Dunklin

http://www.texasseriesllclaw.com/

Don't make an offer!  Instead, ask the seller what's the least they would take if they got cash for their house within 30 days.  You may be surprised that they would take less than you were planning to offer. 

If their price is too high, simply ask if that is the best they can do.  Remind then that they can sell the house "as is" and you could offer to pay all closing costs to help get the price down.  If you tell them they can take what they want but leave the rest in the house that will usually close the deal. 

Simultaneously, you need to be building a buyer's list of potential buyers.  It will sell much faster if you already have 5 - 10 rehabbers on your buyer list. 

Instead of just doing a wholesale flip, there are other ways you could make about 20-30% more.

Be careful.  Many of those free themes come with viruses and malware and/or insert their own ads all over the place.   Theme Forest has some real estate themes for about $50

You could create a website with wix for free.

I work with a guy in the Philippines who can whip up a great custom site for you in about 24 hours for about $100.   You don't need to buy a theme, he already has plenty. Send a message through my website (see below) for his contact info. You'll still need to set up hosting.  He will make recommendations.

Code Enforcement provides a list of all code violation properties in Texas.. by City.  They only have the address then a code next to the address.  Get their code key.  Some properties have Code Violations for a leaning fence or tall grass - pass on those.  Others have actually been deemed not habitable so they have been condemned.  When I lived in Texas, the code for a condemned property in Dallas county was RT (red tagged).  Some have a date set for demolition which really drives up the cost of the liens but you can usually negotiate for the lot value only.

Code Enforcement RT is a GREAT list to market to for wholesale flips.  

If a landlord owns a condemned property, they can't rent it until all the repairs are done and a certificate of occupancy is issued.  There will need to be permits and inspections for any repairs.  There could be city liens to board up the property or mow the grass.  Plus taxes are due the end of January.  These landlords are extremely motivated to SELL FAST and for a deep deep discount. 

All properties that have fire damage will be on the code violation list.  

When you get a contract, be sure to include a contingency that you need to inspect the Code Enforcement file and get approval from your "investor group"  (person you will wholesale to).

Make friends with the Code Enforcement staff.  

It would be better to get a contract on this one - usually 80-90% below market for condemned properties - they do a wholesale flip.

Code Enforcement will have a file on the property which tell you exactly what needs to be done to get a certificate of occupancy again.  That information needs to be attached to the contract when you wholesale the property along with a disclosure that the buyer will need to get permits and inspections from Code Enforcement to do the rehab.

The City is probably mowing the lawn then filing a lien against the property.  These liens can be negotiated down.  

You can Look up the owner and the deed date in the County Tax Appraisal records by entering the address.

Sell it asap and the best way to do that is a Highest Bidder Sale!  Instead of listing with an agent (certainly not your Mom), or just putting a for sale sign in the front yard, you need to do some aggressive marketing to get this house sold FAST and for TOP DOLLAR.

A Highest Bidder sale is the fastest way to get the house sold.  Here's an overview of how it works:

1. do 7 days of aggressive marketing with flyers to the neighborhood, 

2. signs in a 1 mile radius that say "Home Being Sold to the Highest Bidder" --->>  + a huge sign in front of the property.

3. craigslist ads 2-3 times a day to discuss an upcoming 2 day open house where the house will be sold to the highest bidder

4. Pick dates to do a 2 day open house.  Get the house inspected by a professional.

5. do a 2 day open house, explain that the house is being sold "as is" have the inspection report available for people to see so they know what they are getting in to.  Buyers can submit a bid on an open bid sheet.  

6. after the open house, call all bidders back to tell then what the high bid is and ask if they want to increase their bid.  (some will, some won't).  

7. The house is sold to the Highest Bidder!  You only need 7 days for marketing, 2 days to do the open house, then you should be able to close about a week later.  Use the same title company where you closed when you bought it.  

You may want to invite hard money lenders to the open house.  They can approve people for financing on the spot.  

There is no need to put your family at risk by getting bank financing.