All Forum Posts by: William Johnson

 @Jordan H.  Great suggestions thank you! 

@Karen Margrave Thank you for the heads up!

@Jon Holdman Thanks for moving the post to the right forum!

@Roy N. Thank you I am definitely interested in growing my contacts in these areas.  I specifically interested in good credit unions where I can get a credit card with an interest as low as Matt was talking about. 

Thank you for this information.  I am wondering if there is anybody from Canada that is doing something similar who would like to join in.

Hello all,

I hope that what I am about to write in this forum will generate a lot of responses as I am looking for areas to grow in my deal making abilities and in my ability to structure deals. If there are any ways that you can recommend that I approach these situations differently I would be very appreciative.  I am interested in creative approaches to closing this deal with the seller as well as ways that I could structure this deal with investors.

I have recently ordered 200 signs and registered a website to begin a marketing campaign. This is my first attempt to really get into buying houses with no agents involved.  I have put up 35 of these signs and recently received many phone calls and one of them was a phone call from a man who had an employee who might require my services.  After talking to the actual seller (with his boss originally having us on a 3 way call) I learned that he owes 235,000 on the house and it can very easily get 300,000 in today's market.  On top of that the house is perfectly renovated and can sell within 80 days in today's market, the catch is that it is his marriage home and he's going through a divorce.  

I arranged to meet him for a coffee and we negotiate a subject to with 20,000 paid to him at closing and, (here is where I turn into a retard) I leave the coffee shop without having him sign anything, I didn't even have the documents with me!!!  I put out feelers to my investors network to make sure that I have some potential interest in spite of the context and there is plenty but I don't have a signed document.  I try to contact him after this but cannot get him on the phone to set up an appt. to sign.  

I found his address in spite of it being unlisted and I decided to knock on his door and take the risk of spooking him out rather than lose my momentum.  He answers the door and (with a sheepish look on his face) apologizes for avoiding my calls and invites me in, he tells me that he was offered 30k upfront by somebody else.  I try to discredit the others and add credit to my own offer and I do get him to agree to sell it to me but, when I try to get him to sign the offer he says he wants someone to check out the offer.  

We agreed that I will come back the next evening (which was tonight) and I unfortunately had to work at my regular job until 8h30pm (although I do love my day job as well) so I tried to knock at his door earlier in the afternoon and he was not home from work yet.

I will try again tomorrow and I will prepare a very simple, direct pitch to close this deal, 

Hello _____, 

We have spoken many times in the last week. We both know that the conditions that my company offered for you house are unbeatable.  I am here today to nail this deal down with you, if you are interested in taking care of this problem permanently (and I know that you are) then you will sign this deal with me right now.  

I will then hand him the pen to sign with.

I am going to leave it all on the floor for this deal.

Welcome Tanya why don't you invest in Montreal? 

I have just completed my first marketing campaign with wild success as far as receiving phone calls is concerned.

My first potential deal involves receiving a call from a man who is going through a divorce.  Here are the pertinent details

ARV = 300k

Mortgage owed = 235k

Name on title = Just the man

Renovations = Just esthetic

He cannot go onto the property of his home because of the problems with his wife.

The man has told me that he has been advised by his lawyer that he will have to have his wife sign off on any purchase offers on the house.  I assume that this is just so that she will not be able to come after him for anything related to the house during the divorce.  If this is the case then that should mean that he can sign off on the purchase offer and that he and he alone can transfer the title over to me.

If I can legally and ethically get him to sign off on the offer than my plan is the following:

1. Explain to him how the sub 2 would work.

2. Make an offer where I agree to assume payments and he transfers the title of the house to me or a person of my choice

If I cannot legally and ethically get him to sign off on the offer than my plan is the following.

1. Explain to him how the sub 2 would work.

2. Make an offer where I agree to assume payments and he transfers the title of the house to me or a person of my choice

3. Obtain the contact details of his ex-wife and, with his blessing contact her, set up a meeting with her to discuss the purchase of the home, create rapport, explain SUB2 and make my offer where I agree to assume payments and he transfers the title of the house to me or a person of my choice.

I am looking for feedback and criticism from all people but, especially from those who have successfully negotiated through this minefield before.

I am in Canada btw.

@Roy N. I agree with you 100 percent on all points and they are extremely informative.  I need not take into consideration most of them because I am only wholesaling or flipping.  FYI in Quebec a lawyer is not obligated to inform the lender and a notary is obligated. 

I am actually in the middle of negotiating for a sub2 here in Quebec.  It is my first one but my mentor has done several.  They don't usually care.  After the 5 year term if you still have the property then you just would have to renew the mortgage in your name.  Why would the bank care if you are making your payments and they are getting their money? 

@Casey Cuppy Unfortunately most agents are way too optimistic about the ARV for my liking. I have heard of people from Phoenix (there's actually a BP podcast with one) who were buying at 70% in 2007, 2008 and lost everything when the market bottomed out. I am looking for a way to safeguard for this. So far I have decided to buy at 65% instead of 70%. I am open to other suggestions as well.