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First off, there are some subliminal things you will need to learn how to do. When I say subliminal, there are some basic sales tactics that will work in any type of sales environment, especially in real estate dealings.
The first one is association. You have to let your sellers know that people do this. This is a regular thing. It´s not this huge unheard of thing for someone to sell with seller financing. If you have done this in the past, talk about it. Mention about doing this in the past. People also want to do what other people have done. If they know other people are doing it, they will feel good about doing it. Let the seller know that people do this all of the time, lots of people do it. Then, maybe they will be more likely to do it. Unfortunately, we have a herd mentality. A lot of times we have to see that someone else did something first, then we have permission to do it as well.
Also, you want to have some fear of loss, indirectly, in the tone of your voice. You want to make it sound like this is the only way that you can do this particular deal. In a lot of cases, this is the truth, so you´re not lying to anybody. Let them be aware of it. Be indifferent about it. You have to have an attitude about you that there are other houses you can buy. Make them feel that they are going to lose something if they don´t go ahead with the sale with you.
Now, let´s go into the topic itself. There are some things you can do to sway the seller into going your way. One of them is to offer them a great interest rate. In most of these cases, we are buying these houses, not for a long-term deal, maybe to have it for a couple of years with a lease-option tenant in it to pay it off, or just looking to buy it for a short period of time to fix it up and maybe sell it. Or perhaps, we are just looking to get it under contract to then sell it to someone else. So, offer a nice interest rate. Offer an interest rate that makes it attractive to the seller to give you seller financing, to have them trust you. You are not going to have it that long. That extra 2, 3, or 4, percent is peanuts. I´ll pay 15 or 20 percent interest if I have to if the deal is right, just to get the deal under my belt and make some money on it. If you are only going to make 3 or 4 payments on it, what´s the difference if you are paying 20 or 25 percent? It´s only going to be an extra couple of hundred dollars. If the deal is good enough to take, it´s good enough to take with a higher interest rate attached to it. Don´t make the mistake of financing at the same rates the banks give.
Another tip for you if someone is feeling uncomfortable is to offer them a balloon. A balloon on a mortgage means that the mortgage is going to be paid in full by a certain amount of time. So, a mortgage with a 3 year balloon guarantees the seller that in 3 years or sooner, we are going to pay that mortgage off and they will have all of their money back. It also allows them to defer their taxes. If they sell their house today for cash, and they get their HUD, and go to closing and they get that full amount, they are liable to pay taxes on the full amount of their profit. (Make sure your accountant double checks this for you on an individual basis). When they sell you the house with owner financing, they don´t have to pay taxes on the whole amount, because they didn´t get the full amount. It allows them to defer their taxes for a year or two, or until you pay the loan off in full.
They are also acting as a bank. I have told sellers that the people that are making the big money in selling homes are usually the banks. I tell them that they will be in a position like a bank, and they will earn a ton of interest on their property. I add it up with them and explain to them how much profit they will be making on the deal. For example, it´s a $200,000 house and I´m giving them eight percent interest. That´s a $1,467 payment per month. Let´s say I make that payment for two years. At the end of 2 years, on that $200,000 house, I´m going to owe approximately $197,000. So, I will show him that in a year, it equals $17,000 that I have paid him. If it takes me 2 years to pay you off, I will have given you $35,000 on your house, and I will still owe you $197,000. Let him know that he will end up selling that house for $237,000 because of my monthly payments and the amount that is due at payoff time. Not the original $200,000 that was on the contract. Explain that that is how the banks make money. Point out to him the real dollars that he will be getting over this period of time.
On an interest-only loan, you will be giving them interest every month after month after month. At the completion of the loan, you still owe them the full amount. If it´s a $250,000 house and they are giving me an interest-only loan on the house, I still owe them $250,000 whenever I do pay it off. So, everything I give them up- front is money that goes straight into their pocket. Make sure you tell them that the whole payment every month goes right into their pocket no matter when I pay it off. At payoff, I will STILL owe you the full amount of that loan.
It´s a great deal for a seller. And that´s the truth. That is how the mortgage companies and banks make A LOT OF MONEY! That´s why some investors stop investing after a period of time after they put a million dollars in their accounts and become hard money lenders. They become private lenders and make a ton of money for NOTHING!
In a lot of cases, you will have a seller that will go with owner financing, but needs some money NOW. Point out to them that if you give them $20,000 now, and pay off the difference, they are going to have to pay taxes on that $20,000 (again, double-check with your accountant about this). Suggest this to them if the home is paid in full: So they can save money, they can instead go get a loan/mortgage on the house for $20,000. You can put that $20,000 in your pocket right now. I will then make the payments on that loan until we sell the house and I pay you off in full. And right now, you don´t have to pay taxes on that $20,000. This is a great way if they want some money now.
Here is another tactic that works and will continue to work in the future. Once you get a deal on seller financing for a house that is selling for $300,000 and it has a 5 year balloon, tell the seller that within 5 years or sooner you will pay them off. If in the near future, I have someone ready to buy that house, I´ll call the seller and tell them that I have some extra cash, offer to pay about $250,000 for that home RIGHT NOW. Now, guess what? That $250,000 today is much better than $300,000 in 4 or 5 years, and you have just make $50,000! If they make a counter-offer for a little more, tell them you will think about it, wait a day or so, call back and accept their offer. There are many ways to make money in this business!
The bottom line is: MAKE AN OFFER. You have to believe that people will accept your offers. Don´t think for a minute that just because maybe you don´t own your house outright, that a lot of other people don´t. I personally own a house outright. I can borrow money against it, I can rent it. In any case, go make an offer. There are many people out there that own houses that are paid for, and they are just sitting there. Make that offer, look them in the eye, pitch them high, and watch them buy. Believe in yourself!
Get serious. The key to losing large amounts of weight it to get serious and make a commitment to yourself to start exercising. Don\’t go over the top and try to get a little bit better every day. Rather than setting massive, unrealistic goals, aim for a small, daily improvement. Things that seem small, like taking 100 additional steps each day, will start to get you fit before you know it. Don\’t go overboard straight away and feel defeated. Try to be consistent and move towards 20 minutes of exercising three times a week.
Get consistent. Make a commitment to getting fit and stick with it. Aim to improve every day. Small consistent improvements are much easier to achieve than huge daunting goals that seem so far away. Even just walking a 100 extra steps each day will get you well on the path to improved heath. Work up to 20 minutes of exercising three times a week instead of overdoing it and becoming discouraged.
Of course, if you are over 35 years old, seriously overweight, or have medical problems, it\’s best to see a physician before starting any exercise program. Getting checked out by your doctor will also stop you from worrying whether everything is OK when your heart starts to beat a little faster during a workout.
Here are a few examples if you are still confused on a way to find an ideal product:
How to get out of debt? How to stop smoking? How to make money online? How to budget? And etc.
Step 4: Out of those 5 amazing ideas or topics, break them down again from most to least favorite. The idea with the highest score will be your ideal product. It is best that you keep your journal with all those ideas and scores in case your idea does not work out.
In case you are still not sure what kind of ideal product to come up with, here are some examples:
It covers two crucial areas, your happiness with the work performed and any potential warranty issues that could come back on the contractor. This will save you aggravation and the contractor precious time and money. An experienced contractor who is concerned about their customers realizes that this is the best way to wrap up a job.
10. The following are more obvious things to look at, a business license, unsettled complaints listed with the BBB, how long has the company been around, how many people work for them and a well written contract including warranties.
Always put quality first. Putting a little extra time into qualifying your Marietta painting contractors will pay off handsomely. You will have fewer headaches during the project. You will have a better looking home with a paint job that last longer.
http://www.bustthatspeedingticket.com
Bio:
Nick Cifonie is the Host of Real Estate Investor TV, found at www.REI-TV.com . Visit us to get your FREE Real Estate Investing Training videos, CD\’s, audios, and more!
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