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Hi! It’s Lou Brown. With another one of my 101 ways for real estate investors like you to win, close more deals, accelerate your cash flow. Today’s tip is number 18. And it is, Offer to buy the property subject to the existing financing. Oh my goodness! Changed my life. The first property I ever bought was when I was 18 years old. I was able to do that by taking over the payments, taking over the existing financing on the property. How powerful that was? Back in the day, they had a thing called NENQ Loans, Non-Escalating, Non-Qualifying loans. But Congress, in its infinite bought wisdom. Of course the banks, we all know the influence the politicians by a thing called contributions to their campaigns. Right? And so one of the things they created in 1982 was a law called the “Garn-Saint Germain Federal Depository Institutions Act” which allowed the banks to put a clause in their mortgages called the Due Upon Sale clause.
Hi! It’s Lou Brown. With another one of my powerful 101 ways for real estate investors like you to win, close more deals, and accelerate your cash flows. Today’s tip is number 19. Build an extension into your contract. Now, build an extension into your contract. What does that mean? So I’ve been talking in this series a bit about a thing called a standard real estate purchase and sale agreement. And I’ve seen what sellers do and I’ve seen when they don’t do what they’re supposed to do. And I’ve seen that they can pull back on you and cause you a lot of expense and a lot of loss of money because you could have gotten a title search, you could have spent money getting a survey. Maybe you had the home inspected, it’s a lot, it’s a lot. You could have invested by the time you get to the closing.
Hi! It’s Lou Brown. With another of my 101 powerful profitable ways for real estate investors like you to win, close more deals, and accelerate your cash flow. Today’s tip is number 20. Control the closing. You choose the attorney or title company and include that in the contract. Now, one of the things I’ve found is whenever I let the seller control where the closing is going to be, or if I let a real estate agent control where the closing is going to be, I’ve found that I have to go through some pain and suffering in getting in a relationship with this new closing agent or attorney. So I’ve found that my life is a lot better if I have my own team and in my contracts, I tell the seller where the closing is going to be. Or I’ll tell the real estate agent where the closing is going to be.
Hi! It’s Lou Brown. With another of my 101 ways for real estate investors like you to win, close more deals, and accelerate your cash flow. Today’s tip is number 21. Have the seller refinance their home, get the cash that they need, and sell it to you subject to the existing loan. Now, how does that work? Well, let’s say that you go to the house, and in one of my other tips, I said that we go through a presentation with our sellers. When we’re going through the presentation, we do something called the cost to sell worksheet. We get down to a final number. That shows the seller their equity. Now let’s say that our seller was insisting really did need cash. Okay, how can we get them their cash and how can we stay out of the bank and not qualify for a loan? I love that part.
Hi! It’s Lou Brown. With another of my valuable profitable 101 ways for real estate investors like you to win, close more deals, and accelerate your cash flow. So today’s tip is number 22. When optioning to buy or when buying on an agreement for deed, always have this seller place their deed in escrow. Now one of the things you might have heard about is that you could actually purchase a property by simply getting an option and a lease with the seller. So rather than actually getting the deed on the property, maybe you’re not so sure there’s equity there. Maybe you’d be better off doing a lease with the option to buy. Maybe the seller doesn’t want to give you their deed. Maybe they want to stop you from getting their deed. Maybe they’re concerned that you won’t make the payments. Maybe they’re concerned they would have to foreclose to get their property back.
Hi! It’s Lou Brown. With another one of my 101 ways for real estate investors like you to win, close, make more deals, and accelerate your cash flow. Today’s tip is number 23. It’s about negotiations. Get all the issues covered before you make an offer. Well, that’s so important when you’re putting a deal together. Sometimes you negotiate one part but you really haven’t gotten all the pieces put together yet. So you might’ve gotten agreement over here and then you have to bring another issue to the table, and you have to get agreement on that. And then there’s another issue, and you have to get an agreement on that. So what I suggest is before you close, before you actually agree, say, okay well we can take that under consideration. What else do you need to hear about? Or what else is of concern to you? And then you put that back to the seller and they say, well I don’t have anything else.
Hi! It’s Lou Brown. With another one of my 101 ways for real estate investors like you to win and close more deals to accelerate your cash flow. Today’s tip is number 24. Show the seller how you are benefiting them. Now, this is so important because many times sellers really don’t appreciate some of the things that you’re bringing to the table. One of them is that you can close quickly. Now that can be very valuable to a seller. So you want to contrast that. Well, of course, Mr. & Mrs. Jones, you have an opportunity now to go ahead and put your property on the market with a real estate agent and they’re going to tie it up typically for at least six months. Most real estate agents won’t even take a listing for three months. They only want six months or even longer, and in fact, if things don’t work out, they’re going to ask you to relist the property.
Hi! It’s Lou Brown. With another one of my 101 ways for real estate investors like you to win, close more deals, and accelerate your cash flows. Today’s tip is number 25. Alright, SHUT UP!!! I don’t want to mean to scare you, but that’s exactly what I want you to be thinking of like somebody like Lou Brown was just yelling at you. Shut up, shut up, shut up. Now here’s what it says. It says, let the seller talk. Listen. They’ll tell you what they need so that you can buy their house. Now, this is why it’s, you know, it’s amazing. I watched so many real estate investors over my years, of course, I’ve been doing this for over 40 years. And I’ve learned a lot of things about how people learn. How people interpret things. How people act. You know, we all are a product of our DNA. We’re all a product of our background, our experience, and how we are actually wired ourselves in terms of our personality type.
Hi! It’s Lou Brown. With another one of my amazing 101 ways for real estate investors like you to win, close more deals, and accelerate your cash flows. Today’s tip is number 26. Figure out the personality type you are dealing with and negotiate accordingly. Now, what do I mean by that? So you want to listen to people. Listen, even over the phone, you can discover what personality type you’re dealing with. Now there are four basic personality types. Of course, there are iterations of this and everybody’s got all four personality types. But the important thing to learn is that there are four basic personality types. (A) that means bottom-line oriented. They’re not interested in your conversation. They just want to know how much you’re going to pay him for the house. Well, you don’t know yet. And so you got to deal with and overcome that personality type. (B) They’re all about the looks.
Hi! It’s Lou Brown. With another one of my 101 amazing ways for real estate investors like you to win, close more deals, and accelerate your cash flow. Today’s tip is number 27. Know 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, the seller may have an existing loan and you would love to take over that existing loan. That’s one of my favorite ways to buy properties. The seller may have equity and they may be able to do seller financing when you present it to them when you ask them.
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