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Sebastian E. Real Estate Agent from Baltimore

I hope it will turn for the better, I own many houses and commercial buildings, in  Baltimore, There is no leadership here, these politicians condone not paying rent, they will not let you legally evict tenants for non-payment or will they let you evict squatters, smoking pot on the streets is OK according to AG, can't open my Nightclub or other walk in businesses.

I have always been positive and enthusiastic about this town and investing, but the liberals in charge have beaten me down, never felt so negative!

As an auctioneer with family businesses and at 78 years old, I continue to use a program I and teach; POWER PROSPECTING and Control and Roll to hunt down buildings, houses, commercial buildings, lots and land that have a potential for cash flow or equity. Now more than ever those elements should be abundant in the community.

I continue to book auctions and control all types of properties, I hope some real leaders are elected who will take care of owners of businesses and stop taking us for granted!

Being on LOCK-DOWN almost feels like being retired, home all day (prospecting, sending out contracts offers to out of state sellers, partnering deals I never ever see, practicing  my art; water color, sketching and getting lots of stuff done at home - WOW! I could get use to this.

Donn't give up hope, continue to talk to sellers, provide them with a proposal/contract offer, control and roll real estate for cash flow or equity, be honest, make full disclosures and the income you are seeking will be yours.

Have a plan - don't slow down your prospecting, make many offers all the time, use a Skinny contract. Stay healthy, stay away from bad people.

Some ideas to find the deals:

walk/drive neighborhoods, look for neglected properties

advertise, newspapers, radio, pass out flyers

Write a nice letter to landlords

When housing court starts up again, meet landlords there - chat

Call and visit owners of Expired Listings - make offers

Build a relationship with a few Realtors, offer to pay them a fee (3-5% of purchase price for unlisted buildings) for presenting your offers to FSBO's and expired listings (auto pilot investing) The purpose behind this is to open negotiations with sellers, I always offer well below their asking price BUT IN WRITING hand delivered by an agent (you save time, cost of gas and you increase the odds of finding a fat equity deal)

Study Real Estate Control techniques; delayed settlement, assignment clauses, all types of options, hybrid or JV with sellers, repair consideration with possession (known as front porch offers) use one of the 21 proposals for seller financing (the best highest leverage financing you can get)

My LOCK-DOWN has proven to be profitable, I have time to network and develop clients nationwide to mentor/partner transactions. Meeting lots of folks who want to improve their real estate business.

So there you have my opinion and how I feel!

Be safe, make offers, find a great agent, study creative financing and enjoy life and the wealth it can bring you.

Charlie at home in Glen Arm

If your contract is clear on what you and the seller want to accomplish, it should not be as problem. Title companies work for you. if they don't want your business, go else where! 

The issues come later if the bank wants to call the mortgage or if you or a potential assignee don't make payments as agreed.

Ned Carey is a friend and was a member of Investors United  years ago where classes on all types of techniques of Controlling real estate for a profit was presented.

I realized years ago that it is hard to compete with the bulk buyers and the deep pocket investors.

I did something different and created some ways to beat  DEEP POCKETS to the deal before they had an opportunity to use their money to control tax sale deals that shut little guys out of the competition, a way to poach and profit even after their bid was accepted and tax sale redemption process has started.

The tax sale poaching systems has helped me make some nice profits. At 78 years old, I am not trying to sell anything only to say "That you need to be darn creative, get up early, start every day with an objective, be enthusiastic, follow-up leads and be ethical in all that you do in the tax sale business."  (OH! and make full disclosures)

Owners in tax sales are under lots of pressure, it is almost "Do or Die" for many of them, that is why we as investors have to be sensitive to what's happening in their real estate and financial life. 

Important to have empathy, for owners and their situation and apply creative solutions to their problems, but at the same time keeping in mind and also state it clearing to all involved that ...."it is my goal to make a reasonable profit as long as it can be done professionally and honestly with full disclosures."

The Tax Sale Poaching system sometimes comes down to the last hours before a judge signs a deed over to the tax lien certificate holder.

Some of the creative approaches could be:

1. Option to buy the lien

2. Bring the debt current

3. Hybrid partner with owners or JV

4. Offer proposal for assignment of the certificate

5. Offer dramatic pro-active liquidation methods

6. Apply legal procedures and appeals

7. Counseling for equity.

8. There are times when a seller's problem can be solved using some of these methods that does not result in a profit, but lots of good will for a distressed seller that will be long remembered.

9. Helping others, according to the Laws of universal reciprocity is returned many times over.

10. There are times when you have to give freely to obtain the rewards you are looking for. 

11. Discount mortgages

12. Offer financing

Tax Sales are abundant almost in all 3200 counties in the US, when you are ready with the tools, forms, scripts and personal energy, profits WILL BE MADE. Be ready to beat DEEP POCKETS at the tax sale game, a game they are so good at.

Even the little guy, just getting started can play for fun and profits.

Good luck --- Charlie

Sorry, I said 1,000 votes it should have  been 2,000 votes, I need 600 more.

Love bigger Pockets

Your best lender is the Bank of the Owner, owner financing or creative financing without hard or soft money is the best. The best leverage in the world, no need to fill out long applications, no humbling request for a loan from a pimpled faced recently collage graduate from a financing course working for Bank of America.

The seller never asks you for a credit report, an appraisal, points or an application fee.

Always request seller financing (best to put the request in your contract offer)

When I am considering an offer on a building I  need to know how much equity is in the deal, and negotiate for a percentage of that equity for my profit. I accomplish this by using my Skinny  contract offer (one page contract offer) which has a contingent  request for seller take back. (Seller agrees to hold a first mortgage in the amount of $XX, amortized for 10 years, with a balloon payment with in XX months with interest of XX% having a monthly payment of $XX.

As you know sellers want all their money at settlement, but they also want out from the property, my offer may the only one they've seen in months and their motivation may have reach a point to consider the offer that will solve their issues and my need for equity!

I want to be prepared when trying to get a ratified contract (to be assigned) I have my stuff ready at hand, credit report, my business plan, P and L, and all my credentials, auctioneer, broker, Mason, owner operator of several corporations, referenced and testimonials, and a note from my Mother.

Being armed with this approach can help your credibility (the seller may be meeting you for the first time and you are asking them to hold back part of their equity so you can make a deal and a profit. It's great to be closing at your fist meeting with the seller.

Personal rapport is so important, people like to do business with those they like and understand, so make it easy for them to like you and loan you part of their equity.

Did you know you can over pay (make offer) for more than the seller wants? If they agree to a 80-100% principal mortgage. A PRINCIPAL mortgage is one without interest and self liquidating until paid in full. (who ever said we have to offer interest?)

You know EQUITY is a great thing, I like to turn that equity into CASH, by doing a Control and Roll, finding my assignee using an auction to tap-out and collect my equity cash.

The good thing about being an investor is that we are buyers, we can solve the sellers problem, we are not negotiating to be their friend, we're in this business for a profit!

What's in it for the seller ? - Fast settlement, no commission, as is sale, interest on their loan, monthly payments, a balloon payment sometime in the future when they may really need some cash and the real estate monkey is off their back.

Some things to consider in your mortgage an negotiations; 

You want the mortgage to be fully assumable with release of liability, build in a percentage discount if paid off early, have a first right of refusal in the event they try to sell the mortgage at  a discount (you want that savings) a stutter clause, this gives you the right to miss one payment without penalty and a substitution of collateral clause (this gives you the right to move the mortgage to another property in the event you sell the building, with this you keep all the proceeds without having to satisfy the mortgage pay-off upon sale. 

You can also explain to the seller that  the mortgage can be split notes, this gives the seller more leverage, meaning they have one mortgage but several notes secured by that mortgage, A $100,000 mortgage could have four $25,000 notes, the mortgagor can sell a note at a discount, use one as a down payment or assign one to their favorite grand son who just entered college, those payments could come in handy. (College kids love beer). 

Sorry this response is so long, i'd like to add more, but I need to go.

Wonder if you could help, I am trying to get 1,000 votes before the end of the year.

Thanks and good luck with Seller Financing,

Charles

Growing up in this business I found things I didn't care for and started to invent my own systems of investing and changed the conventional rules to suit me; like cash down payments (I have a system of making offers without the need for real negotiable cash or EMD). This enables' me my network of clients and apprentices able to make offers without commitment, which means making many more offers w/o money.

CONTRACTS! A 30 page agent's contract was way too much to read and understand by sellers…. So I created my own contract offer that I call it "The Skinny", because it is only ONE PAGE. I found out immediately that I was able to control more houses because sellers understood my written SKINNY CONTRACT OFFER. It was simple, it said in every day language what I wanted, and what they needed. all the other stuff was negotiated and hand written to the satisfaction to all.

I made more changes in my contract that was PRO-ME as an investor; A full profit disclosure was inserted,(this is a protective statement that made it clear what the meeting of minds were between buyer and seller just in case there is ever a legal issue) Delaying clauses (this is an insurance clause against running out of time to settle or failure to assign or sell), A release/non commitment contingency, (a clause that lets me out of a contract ethically if I am unable to assign my contract) Marketing hybrid, rights with cooperative expenses', (this is an informal profit sharing with the seller or estate) Automatic time extension, (creating more time when needed, a protective clause that can save deals when necessary to use)

Knowledge of market value is important, so I created a national real estate comparable and information service, named IURealist This is a great service that helps me our friends find needed comp information on properties. Check it out.

So FAST FORWARD now, May 2020; At 78 years old, I am still active in development, investing teaching, and learning and working on equity deals, and I have been helping other folks on Bigger Pockets, partnering and growing our base of members and friends.

Good luck  - MAKE OFFERS OFTEN!

Charlie

I use IURealistdotcom

pay a Realtor to do that work for you, this frees you up to finding deals and making offers, delegate as much as you can and you will accelerate your profits.

What ever the seller is asking, offer haft to see his reaction, this might smoke out his real needs, if he gets pissed, just say, "Sir my goal is to make a reasonable profit, that offer was just a trial offer, let's get to your bottom line, what's going to take to make a deal today?

AT 78 years old I do 100% assignments using controlandrolldotcom it works for me.

Good luck,

Charles

Great deals are not found! They are made! Sure you can get lucky as long as you are performing POWER PROSPECTING - So how do you make a not good equity or cash flow property a GOOD DEAL? 

Know first what is a great deal to you ? What do you want? Cash Flow, to build a portfolio, Fast assignment?

Contract engineering and creative financing can make a poor listing or FSBO great. It is in my opinion about Control, control of the Equity, control of the chain of title, control with the seller or hybrid control and control of possession.

I start with determining the real amount of the potential equity (equity that can be converted to cash) negotiating for a percentage of the equity is what makes a good deal. Equity as you know is the wholesale value less fixed liens. Controlling the amount of that equity that you want for yourself is where a profit begins to materialize. 

Cash in your equity using a public auction, assign your position in the property.

Offer a lease with an option to purchase with right of possession.

Offer a straight option to purchase at an agreed price to take place sometime in the future. w/right of possession.

Offer at a higher price with seller financing with a delayed settlement with right of possession. You can pay more if you can negotiate a "principal mortgage" this is a mortgage without interest and all payments goes to principal until it is paid off.

Offer a fail price with right of assignment, offer the building at public auction (partner with the seller).

Long tern Rent agreement with payments and repairs going to discount the price and  going toward the principal, assign rental position to sandwich rent.

just a few ideas --

Hey Girl, Charles Parrish - Baltimore - I feel your pain, I have been in the wholesaling business before they started calling it "wholesaling", started when I was 20, 78 years old now, boy! Can I remember how excited I was to own an investment property, I just knew I'd be a millionaire in no time at all, well.... I made it, but it took 50 years.

Even today with wonderful credit and reputation paying bills, a large portfolio of houses and commercial buildings, I also have trouble getting contractors to show up, when they do and give me an estimate, they want money up-front, NEVER give $$ before the work is started! Lesson learned!

I think contractors would rather do work for those who are less aware of the business, a customer who will pay more than a seasoned investor.

When I start this business, I needed things done, duct work, furnaces, roofing, dry wall.

I had a house on St. Paul St that needed duct work and  furnace, I started getting high estimates, I wanted to know how long it would take and the cost of material, armed with these numbers, I ran an ad, Wanted, part time and evenings and weekends, heating and duct mechanic $25-30/hr. What I wanted is the mechanic working daily in the business who would welcome the opportunity to do the job at a big savings to me and has the knowledge of wholesale suppliers.

Sure, I had to use unlicensed people, I'd watch them carefully, bottom line I got the work done cheap fast and right. You'd be surprised how many folks with skills will help you, make sure you create an agreement, get picture ID, and license plat number, and if you can a few references. DO NOT give up any money for advances or materials, you can charge supplies. Don't run around getting stuff, let the handyman do that (check your insurance policies, make sure you are covered if he run over someone while doing work for you, the handyman is self employed, but not by you, have a clear agreement.

There is risk, but so is a leaking roof and a mad tenant.

Good luck, when you are in Baltimore - give a call, chat awhile,

Charlie

Thank you for your votes on the response to the 22 year old with $40,000

• I Had many inquiries for more details, so here they are:.
  
  Preview 50 houses in you marketing area, (or as many as you can) keep a detailed account of everything, listings, pictures, archive your notes in a journal of all the details, listen carefully to sellers, and agents. Oh! Don't make any offers verbal or in writing, go with the intent to only preview and gather marketing information. (to be used later when the time is right.)

Preview the same houses in 3-6 months (you will be much wiser, and more knowledgeable of values and how to control some equity).

Pay attention to and look for - Value Deficiencies, (those item that need attention, windows, kitchen, baths, water stains, cobwebs in basement, low water pressure, ghost doors, these things are useful when estimating value and final offer)

Be informed, with pointed questions, the answers could be valuable.

• What is the mortgage balance? This question should not offend the seller, you need to know how much you need to pay off if you make an offer
• How much did you need above your mortgage? (This is leading up to a TRIAL OFFER this will give a clue to how to handle the negotiations)
• Know the potential equity in the deal, negotiate for equity (no equity, no deal!) - value = EQUITY. Must know this and how much to contract for an assignment profit!
• Always make offers below market value at a price that will make an equity,sell or renovate ( It is imperatives to know your comparable and compare prices, Square footage and condition, calculate the cost per SF) compare dollar value (divide SF into asking price to get cost per SF)
• Ask "Can you help with financing", even if you get a NO, ignore that and make it a contingent in your offer. (Seller financing is a high leverage factor, the best financing you'll ever get.)
• Delay settlement as long as possible. (you'll need time to assign, market or prepare the house for tenant)
• Ask for immediate possession, make this a contract contingency,(unless it is occupied, than agreed to right to preview by appointment.) , Buyers need to have access to the house to show potential assignee, contractors and to market or prepare the house for tenant)
• Build in a automatic extension (you will always need more time) DON'T wait until you run out of contract time to ask for an extension to settlement, always include that extension in your initial offer! "Seller agrees to extent this contract by 25 banking days upon notification in order to complete settlement documents or to satisfy the assignor")
• Make sure that "time is not of the essence" (you don't want to be obligated to a time restriction, always be negotiating.)
• Use banking days, not calendar days. This give you the time you might need to find a way to create a profit. Banking days, don't count week-ends, or holidays.
• No need to BUY, Controlling property is faster when doing assignments without risk.
• Ask for money back at settlement, To repair stuff, settlement cost, just because you want to use LESS of your own money or you might want to celebrate the great deal you just made and take your wife or partner out for an expensive meal after settlement! This is called CONTRACT CANDY. (HOW SWEET IT IS)!
• Ask seller to pay for home inspection, you can negotiate it a-way if necessary, always have throw always in your offer.
• Use a skinny contract offer, study and understand contracts and creative clauses, they'll be your best friend and will make you millions! A skinny contract is a one page document that is easy for sellers to read and understand, better than the 32 page contacts that agents use. KEEP IT SIMPLE.
• Build good relationships with a few agents, be ready to pay them on non-listed houses. Be generous, don't waste their time, they don't make money until something is sold. Show them how to delivery your offers to expired listings.
• Don't make an immediate buying decision, think over you opinions, be sure (how long it will take you exit the deal.
• Make a statement to sellers or anyone who will listen to you - "My goal is to earn a reasonable profit in real estate as long as it is ethical!", let seller and agent know that is your goal, they'll respect your honesty.
• Talk less, listen more, take notes, don't tell on yourself, don't reveal too much about self, sellers don't need to know about your finances, only that you can and maybe give them an offer that will solve their problem!
• Remember Cash IS KING conserve it. Always go for seller financing, lease options, delayed settlements, wrap around mortgages, subject to existing financing, hybrid offers with sellers.
• Ask sellers to fix stuff before settlement, this is another throw- away in your negotiations if necessary. Think ahead, be well prepared to create the best equity position possible.
• Always ask for more; the furniture, the old car in the garage, money back and all the lawn equipment.
• You should be in this business to make a profit, not to make a friends, take contract risks, act as an investor, ask for more than you expect!
• If you don't like the deal or agent move on, there are many more sellers who will let you have your way and your profit potential.
• Use these 7 words all the time ….."Is that the best you can do"? you'll be surprised how often sellers will drop their asking price by thousands of dollars.
• "Do you need top price or a fast sale"? The answer will give you a hint about how hard you'll have to negotiate to get what you want. (their top price may be under market value, Fast sale is a good answer, how fast, why? Write it up!
• Learn "Power prospecting"…… there many ways to prospect, prospecting for equity is something that should be done all the time.
• Learn to represent yourself, you are your best client!
• Study all expired listings in your area. An expired listing is a FAILURE, of the seller and agent. The seller's motivation should be increased since he is back to square one, seller still has a property that is not sold! Contact sellers of expired listings with a solution (offer) to their problem! (CONTROL that property and begin a marketing process for assignment)
• Find the housing court in your area, that is where to find motivated landlords. (sit in the Second row, take notes listen to the tenant, landlord and judge carefully) Start a conversation with landlords about how much you love cash flow and collecting rents from tenants, maybe they'll offer you their house, you know the one with a tenant who is behind in their rent.
• Attend public real estate auctions (there is a reason why it is being offered at auction, take notes, network with and make friends with others at the auction sale, collect names and contact information, you may be contacting them soon (build a buyers list). DON'T bid unless you are sure you can get it wholesale (be prepared with money or a credit line, auctions are a great place to find equity packed houses or commercial buildings. (Don’t bid against yourself, know your limit) Get your name on mailing list of all auction companies to receive their upcoming auctions.
• Trust only your Mother!
• Be absolutely prepared at all times and lady luck will reward you with accepted offers and a potential profits or equity.
• Have at your finger tips; contracts; a skinny, commercial, assignment agreements, options, blank checks, disclosures and all necessary forms to do your business legally.
• Be kind, smile often, (take off your face mask sometimes, and have fun, don't be afraid of talking to strangers about real estate This a great business with lots of moving parts, understand those moves while learning this business.
• Talk to 10 people a day, ask this question "Do you know of anyone who has real estate to sell?"
• Where a name tag; (This makes it easy for others to start a conversation with you) I BUY HOUSES! (BETTER Real estate wanted, houses, commercial, land, lots or apartments - Charlie. You'd be surprised how many people will chat with you.
• Set an optimist but conservative goal.
• Have fun, enjoy your wealth and share your knowledge. Thanks again.
• Charlie