What's the ultimate strategy?
It's a real estate investing "business model" that works anytime, anywhere and on any type of real estate. It works in slow markets, normal markets, hot markets and post-hot markets like California, Florida and Arizona. It's a laser guided approach... very specific and targeted. It's a simplified approach with every step of buying and selling made easy and systematic.
So what do I mean by a real estate investing business model?
Think of all the ways we might do a deal as a "transaction engineer."
First there different types of property you might target like pretty houses, ugly houses, multi-family and commercial (just to name a few).
Next there are a number of ways to buy, fund or control a deal like buying subject to, creating owner financing, offering all cash or getting an option agreement.
Then there are a variety of ways to occupy, sell or hold a property such as flipping, renting, leasing optioning, retailing or selling with owner financing.
When you combine what you buy with how you fund it and then how you sell it, you have a business model. Make sense? As you may know, there are dozens of great ways to do deals. And my clients and I have made millions using most all of them.
But there is one strategy that is my favorite. It's truly the ultimate strategy. When I compare it to all the other models like wholesaling, retailing, lease options, rehabbing, short sales, etc., it provides the longest list of benefits and solves most all of the challenges real estate entrepreneurs face sooner or later. I lovingly call this strategy "The Free and Clear Money Machine." But I also simply call it The Ultimate Strategy.
Here's how it works...
1) Target houses with lots of equity
Many real estate entrepreneurs have discovered that when there's more equity in a deal, there are more exits and more ways to create an acceptable offer to the seller.
If there's no equity then you have to create it by discounting the debt or waiting years... hoping the property appreciates. The benefits of targeting houses that are free and clear (or have very little debt) include:
* If you need cash for buying and getting a house occupied, you can borrow against the equity (without bank qualifying) using hard money loans or private investors.
* Not only can you raise cash for a down payment, repairs or remodeling, paying off liens, marketing expenses and holding costs BUT you can also pull out some EXTRA cash on the day you buy.
* Contrary to what a lot of investors may think, sellers with free and clear houses in many cases do not need any of their equity in cash now. If they did, they would have pulled it out sooner.
* Sellers with high equity tend to be older and many times like the idea of receiving a monthly cash flow. This allows you to buy in installments, paying the seller off with the income from the property.
* A lot free and clear houses are non-owner occupied and the seller might be facing a big tax bill if they received all their money at once. You can help them defer or stretch out their tax bite by having them finance your purchase.
* You will find landlords with multiple properties who want to eliminate all their management hassles and sell all of them to you.
2) Create offers with 0% owner financing
If doesn't matter what price a seller with a free and clear house wants. I can always pay it. The only question is WHEN. The longer they can wait, the more I can pay. The benefits of creating an owner carryback note at 0% interest include:
* You can offer a higher purchase price and get more of your offers accepted by having the seller wait for part or all of their equity.
* You can create a lump sum balloon payment due in several years and collect all the cash flow from the property during that term.
* You can give all the net positive cash flow to the seller to rapidly pay off the principle balance due and build huge equity positions without ever relying on appreciation.
* If the seller ever wants to be paid off early you can discount their note at a guaranteed 35%+ annual return, or move their mortgage to another property.
3) Make 15% net profit on every house you buy
When you show a seller what they might net selling their house traditionally, you can easily get them to take 10% to 15% off the present value and still call that full retail price. You can then get them to go even lower by asking if it's OK if you made a margin on the deal. Then lower if you took the property as is. And even lower if you gave them some or all of their equity in cash now instead of later.
Once you can reliable predict what you can sell the house for offering owner financing or a lease option to your buyer, you can then determine the maximum price you can pay the seller. I suggest your price to the seller ensures you get at least a 15% net profit after your transactions cost of buying, holding and selling. If that drives the price down too low for the seller to accept, you now can push the price back up by stringing their money out into the future.
4) Sell quickly on with owner financing or lease option
Since the mortgage market meltdown, sellers are having trouble selling BUT buyers are having trouble buying also. Many of the loans for less than A-paper buyers are gone. This has created a growing demand for rentals and the need for creative seller financing. Cha ching! The ultimate strategy has the answers.
When you've created 0% financing on a house you bought, how quickly do you want to pay it off? Never! Then how can you sell? You sell to a tenant buyer and insist they close with wraparound owner financing. Or you find a buyer with more money down and close NOW with wraparound owner financing. On a "wrap" you make a mortgage payment to your seller while collecting a mortgage payment from a buyer. You keep the difference.
Read More about The Ultimate Strategy from Richard Roop
Yes, it's a buyer's market. And guess what? As a real estate entrepreneur, you make your money when you buy. And as a buyer, you're in control, especially now. The best time to buy is when no one else is buying. You can become very selective. You set the rules. You can cherry pick only the best deals.
But what if prices decline another 6 or 7% over the next 12 months? It could happen. That's why now the time to change your focus from flipping houses to becoming a "real estate tycoon."
Here's what I mean...
ACTION ITEM #1
Start buying houses that have lots of equity. Begin targeting
houses that are free and clear (or have a very low loan balance).
33% of all houses in the US are free and clear. We call this The
Ultimate Strategy because you can collect more than half of your profit on the day you buy and generate positive cash flow on any
house in any price range.
ACTION ITEM #2
Structure your offers by asking the seller to finance part or all
of their equity at 0% interest for 3 to 12 years. Even sellers with
free and clear houses are having trouble selling. You can offer
these sellers top dollar, a quick and easy sale... plus... you can
guarantee yourself a 15% net profit on every house you buy. That's a $33,000 profit on a $220,000 house.
ACTION ITEM #3
Raise all the cash you need for any deal by borrowing against the
equity in the house using private investors or hard money loans.
This will be a smaller first position loan with no bank qualifying
placed in front of a larger seller carry back loan in second
position. This allows you to raise all the cash you need for
buying, fixing, holding and occupying the house. You can also pull out part of your profit in advance... which I highly recommend if you need cash.
ACTION ITEM #4
Resell the house to a tenant buyer or contract buyer within 60 days by offering very attractive price and terms. You can be a great solution to all the buyers who want to buy but can't because of recent changes in the lending industry.
ACTION ITEM #5
Use the income from your occupant to rapidly pay down the debt you owe to the seller. This provides you with nice protection if
housing prices declined. Soon prices will stabilize and return back to their long-term trend upward. The longer you can get a seller to accept their equity over time, the more wealth you'll build.
ACTION ITEM #6
Sellers will sometimes accept no monthly payments in order get a
higher purchase price. On these houses you collect all the net
positive cash flow each month. Start lining up dozens of these
deals right now while it's a buyer's market. Imagine collecting
$10,000 to $20,000 each month automatically, without buying new
properties, and with little or no property management.
You can become a "real estate tycoon" using The Ultimate Strategy for buying and selling houses with none of your own money down.
Collect $15,000 to $50,000 in cash when you buy a house. Collect $500 to $1,500 positive cash flows and hold for many years.
Accelerate your wealth building using rapid principal reduction and establish a large portfolio of houses that become paid off free and clear.
Every housing bubble in history has been followed by the perfect
time to buy and hold real estate. Using The Ultimate Strategy we don't have to time the market just right. You can be buying now while still protecting your self against uncertainties in the near future.
Here's what you need to discover to use The Ultimate Strategy:
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How to setup automated postcard mailing campaigns that target free and clear properties.
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How to raise all the long term cash you need from private investors without bank qualifying.
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How to sell quickly to tenant buyers or contract buyers on
wraparound owner financing.
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How to use our exclusive "Free & Clear Offer Generator software" to structure offers to get sellers the cash down, monthly income and
price they need while still getting you your upfront cash, positive cash flow and minimum 15% net profit on each deal.
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How to negotiate with sellers and overcome the common objections
you can expect.
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How to put together your "early retirement" buy and hold investment
plan and begin living your preferred lifestyle now while you work
your plan.
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CHECK OUT THE ULTIMATE STRATEGY NOW
My good friends Richard Roop and Dan Doran have created a special offer for their clients and at my request have allowed me to pass it on to you for readers of this site only!
It’s a copy of the new "What's Working Best Now" audio collection they just put together… a collection of 12 killer audio CDs which is normally $197.00 that you can get for just $37 plus shipping.
Discover "what's working best" directly from active and success investors doing consistent deals each month... in every type of market. Use the proven methods and steps you'll learn to help double and triple the cash now and cash later you generate from buying and selling of single family homes.
Order your copy for $37 at:
http://m176.infusionsoft.com/go/tus/yellowle/Weebly
Richard and Dan have agreed to keep this offer open for the first 150 people who respond.
Discover "what's working best" for creative real estate investors nationwide. See a full description of this audio collection at the link above.
Wishing you all the best,
Brian Gunthry
Real Estate Marketer
1) ONE-ON-ONE: You should be looking forwarded to and be fully prepared for your monthly one-on-one appointment with your personal accountability and performance coach. This is the time to review your previous month, assess how you're progressing and commit to your plans and goals for the current month. The keys to your success lie in working off your Marketing Plan spreadsheet and then using a GIG to track your progress.
2) WHOLE GROUP CALL: The monthly Whole Group call is focused on inner game issues that will help you successful overcome common challenges that come up. Block out time to be on the call so it gets done but if you miss the call make sure you review the replay link or CDs. Block out time to systematically review calls from previous months. Everyone benefits greatly from having Willie Hooks on our team and these calls allow you to tap into his unique insights and contributions.
3) MARKETING MASTERY CALL: The Marketing Mastery Training Calls each month is your ongoing tech. It's best to join us live giving it your full attention, taking notes, identifying 3 top action items and taking advantage of the of the live Q&A when time permits. However, if you have enough tech to study from us, it's OK to review the training via replay links or CDs. The topics we choose are very timely and are usually chosen based on common challenges recently reported from the coaches and other coaching members. This is your "virtual boot camp" training session (without the travel) with "what's working best" plus important new strategies and updates.
4) PEER GROUP CALL: You should be on your Peer Group call LIVE and then review the other Peer Group calls on CDs when they arrive. This is you opportunity to get input on any challenges with all three head coaches including me, Dan and Willie. Plus you can get the benefit of advice and insights from your peers. If you do not have a presenting challenge, share your most recent breakthrough as it will help you internalize what you learned from it and provide motivation and inspiration to your fellow members.
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7) PRIVATE COACHING CALL: If all the above is STILL not enough and you need even more assistance, book a 15 minute appointment with me. Schedule it through my assistant Barb. I recommend you jump on my bonus coaching call or tap into your other support first but you can use these benefit anytime you need it.
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9) PLATINUM RETREAT: Do whatever you can to attend the special full day event held the day prior to each boot camp. It is always the highlight and most cherished day of every boot camp and it's only for Platinum members. Think of it as a Whole Group Call on steroids! Each one is unique, going deeply into an inner game topic and will never be repeated. Let me, Dan and Willie transform you habits, attitudes, beliefs and expectations in ways words could not describe. If at all possible, stay over for the boot camp or at least the first day of the boot camp where we always share the latest new developments working best nationwide for creative real estate entrepreneurs.
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11) PLATINUM VIP: When you're approaching your 12 month anniversary in coaching, you'll be qualified to continue into your second year as a PlatinumVIP member. Currently we're offering one of two free bonuses when you enroll for coaching for another 12 months. You'll receive "Business Mastery for Real Estate Entrepreneurs" home study system free (normally $1,497) when you commit to another year. If you already own it then you will get your 12th month of PlatinumVIP membership for free. You will also get a special 3-on-1 business planning teleconference with me, Dan and Willie as soon as you start your PlatinumVIP membership... plus a few other exclusive benefits.