© 2025 Trust Associates LLC. All rights reserved.
BOOK A CALL
Read all the paperwork. Know what you’re agreeing to, this is so important. I’ve seen many of my licensees around the country borrow money from third parties. They didn’t even know what they were getting themselves into. I’ve seen them borrow from banks. For example, banks love to take all of your assets, pull them together into one. What’s called a blanket loan and then makes you subject to them is if they decide that your property’s not worth what they think it ought to be worth, they can call that entire loan. Do I imagine that that was in that paperwork all along?
I’m teaching you about how to borrow money. But not the traditional way. That I’ve done since I got started in this business. I know you can avoid all of the expenses, the headaches, the pain, the suffering that it takes to qualify for a traditional loan. Once you contact, and in other words, plan in advance, put this on your calendar, know that you’re going to have a deal come and in some cases, you’re going to need all cash or you’re going to need rehab money or you’re going to need down payment money, you’re going to need some cash.
Help someone who has some money that they would like to loan, put that money to work. If they’ve got a self-directed IRA, fantastic, they can move that money. They can actually loan that money to you. But what if they’ve got money in a retirement account and it’s not a self-directed account? Self-directed means that they can actually direct that the money comes from the IRA Custodian to you and what you give back is a note to the IRA Custodian and they hang onto that and watch the payments come in based upon those notes.
Before you say what you’ll pay, ask them what they are earning on their money. Then offer to increase that. What do I mean by that? Well, so many folks have their money sitting in bank accounts right now, lots of it, and it’s just sitting there earning 0.0 something percent, which is zero. In fact, because of inflation, inflation has averaged 3% over the last 20 years according to the Bureau of Labor Statistics, 2.94% to be accurate. Anyone who’s earning less than that is really going backward.
Borrow private money from folks who are not in the business. Let me tell you what that is. Basically a lot of folks that are close to real estate, also understand money and they understand interest rates and they understand the power of that and they understand just how much profit you can make by allowing them allowing you to borrow their money. Typically when you’re close to real estate, you’re actually paying more for the money if you’re borrowing it from another real estate investor or if you’re borrowing from a private money lender that’s affiliated or associated with real estate.
Show the seller what it will cost them to sell their home the traditional way or the typical way. All right, when I’m making a presentation to the seller, one of the things we do is a thing called a cost to sell worksheet. We actually share with the seller what those costs are. We talk about the real estate commission. If they were to list their home, we talk about closing costs, we talk about repairs to the property, all the different aspects of what it will cost them to sell their home, and if they were to move. Let’s say they’re being transferred to another state, then that’s another cost that has to be considered as well.
What Makes Sellers Beg to Let You Sell Them Your House
101 Street Smart Cash Flow Accelerators #30
Ask Questions – Don’t Talk
101 Street Smart Cash Flow Accelerators #29
Continue Reading Ask Questions – Don’t Talk – Street Smart Cash Flow Accelerator #29
Real Estate Investment Training – Real Estate Investors
Real Estate Investing the Street Smart Way with Lou Brown
Home
Real Estate Close: Negotiating Tip
When negotiating, know all the items you can give up on before you proceed.
101 Street Smart Cash Flow Accelerators #28
Today’s tip is number 27. No, all the items you can give up on before you proceed. Now let me tell you why that’s so important because as you’re going through the home, there’s gonna be certain things that you’re going to see and if you are going to give up for example, on repairs, then you want to know what the repairs are going to be and it’s good to have a list of things that you can negotiate on such as, uh, the seller may have an existing loan and you would love to take over that existing loan.
© 2025 Trust Associates LLC. All rights reserved.
BOOK A CALL