How Two Investing Secrets Quadrupled My Real Estate Income
When I started buying foreclosures, I typically closed only one out of every five deals I attempted. Today it’s closer to four out of five. The secret that quadrupled the number of successful deals was two-fold:
This may not seem like much for you to do, but I can assure you it’s made a major difference in my bank account! When I started using this information my six-figure income shot up to $1,348,000.00 in a single year. More recently these secrets helped me make $180,510.00 in a single month. Here’s how it works:
Before you meet with an owner, it’s crucial that you fully understand every way they can get out of foreclosure—and the consequences of each. Every owner facing foreclosure has the following options.
Walk Away. The owner allows the lender to proceed with the foreclosure. This may be an economically valid alternative if the owner has little or no equity, but the damage to the owner’s credit rating will live with them for 10 years or more.
Now that you know the alternatives available to sellers in foreclosure, let’s look at strategies you can use to get the deal done.
First, I do my homework on the property to make sure that it’s a great deal and decide which exit strategy I’ll use if I acquire it. Next, I call the owner and ask for permission to visit the house when all the people on the title are at home.
When I arrive, I introduce myself and ask the owners to give me a tour of the property. I look for pictures of children or anything that I can talk to them about to break the ice. I also let them talk for as long as they like about how they got into their current predicament, and actively listen. I display empathy with their situation, tell them they are not to blame, and reassure them that bad things happen to good people.
At the end of the tour, I sit down with them and ask them to restate all the facts. Then comes my first crucial question: I ask them what they would like to do, and what would be the best outcome of our meeting with them.
In the negotiation that follows, I review the options detailed above--and there consequences--and detail the reasons why selling the property is the best possible option. Here’s where knowing all the options detailed above gives you a strong bargaining chip.
Once they realize that selling is the best way out for them, I tell them about my company and what I might be able to do to help them. In most cases, they have already seen my credibility-building website, which includes about a dozen video testimonials from people I have helped. I also remind them that I have seen other homeowners earlier in the week, and have more appointments to come.
Next I work from a memorized script that continues to plant the seed that I’m their best option. I show them how I will make up the back payments on their loan and immediately improve their credit rating.
Later, when we have agreed on all the terms of the sale, I introduce the concept of acquiring the property on a “subject to"? basis. This basically means that I’ll continue making payments on their loan, further increasing their credit score.
This minimizes any future objection to taking over the loan while it is still in their name. It also saves me a lot of money on the deal by eliminating middlemen like banks and realtors.
Then it’s a matter of agreeing on simple things like the moving date, closing date, and so on. Then I review all the terms one last time. Just before I produce the purchase agreement, I say that it looks like I will be helping them…and that the people I was supposed to see tomorrow are out of luck because I never take on more than four clients per month. Saying this will help you handle any “we’ll think it over"? objections should they arise.
After all the paperwork is signed, congratulate the owners for taking action and doing the right thing. Be happy for them and show it!
Marko Rubel is a prolific real estate investor living and investing in the Phoenix, Arizona area, and provides seminars and home study courses to serious investors or those who want to become successful. To find out more, visit http://www.freewealthcoaching.com
About the Author
Marko Rubel knew just a few words of English when he arrived in the United States from Croatia in 1994 with a small suitcase, $3,000, and a huge desire to become wealthy. He soon realized that a job in Corporate America is not a synonym for the American Dream and financial security. When he discovered real estate investing, he recognized that he had found the way to transform his life into one of independence and happiness. free wealth coaching
- I learned all of the options a seller in foreclosure has.
- I mastered the art of positioning myself as the best of those options, getting buyers out of foreclosure with minimum damage to their credit ratings.
This may not seem like much for you to do, but I can assure you it’s made a major difference in my bank account! When I started using this information my six-figure income shot up to $1,348,000.00 in a single year. More recently these secrets helped me make $180,510.00 in a single month. Here’s how it works:
Before you meet with an owner, it’s crucial that you fully understand every way they can get out of foreclosure—and the consequences of each. Every owner facing foreclosure has the following options.
- Reinstatement. This is when an owner cures the default by coming up with his own cash or taking out a short-term loan. Keep in mind that the amount the owner has to pay is more than the total of the missed payments. It will also include attorney’s fees and other fees charged by the lender such as filing fees, etc.
- Sell the property. The owner can sell the property any time prior to the foreclosure sale. This is often difficult and risky because deals can fall through or prospective buyers may not qualify for the loan.
- Refinance. The owner refinances the property with a new loan that pays off the loan in default. This may be very difficult to do if the owner is behind in payments.
- Deed In Lieu. The owner deeds the property directly to the lender (essentially giving them the property) so the lender doesn’t have to go through the foreclosure process.
- Bankruptcy. Filing bankruptcy will stop the foreclosure in its tracks, but only until the release is obtained from the court by the lender. Bankruptcy only delays the inevitable if the owner can’t make up the back payments as part of a reorganization plan. Once the stay is lifted, the foreclosure process will continue where it stopped.
- Let it go and hope to get something when it sells. In this case the owner lets the foreclosure proceed and receives anything above the opening bid after all the junior liens are paid off. In most cases that’s nothing.
Walk Away. The owner allows the lender to proceed with the foreclosure. This may be an economically valid alternative if the owner has little or no equity, but the damage to the owner’s credit rating will live with them for 10 years or more.
Now that you know the alternatives available to sellers in foreclosure, let’s look at strategies you can use to get the deal done.
First, I do my homework on the property to make sure that it’s a great deal and decide which exit strategy I’ll use if I acquire it. Next, I call the owner and ask for permission to visit the house when all the people on the title are at home.
When I arrive, I introduce myself and ask the owners to give me a tour of the property. I look for pictures of children or anything that I can talk to them about to break the ice. I also let them talk for as long as they like about how they got into their current predicament, and actively listen. I display empathy with their situation, tell them they are not to blame, and reassure them that bad things happen to good people.
At the end of the tour, I sit down with them and ask them to restate all the facts. Then comes my first crucial question: I ask them what they would like to do, and what would be the best outcome of our meeting with them.
In the negotiation that follows, I review the options detailed above--and there consequences--and detail the reasons why selling the property is the best possible option. Here’s where knowing all the options detailed above gives you a strong bargaining chip.
Once they realize that selling is the best way out for them, I tell them about my company and what I might be able to do to help them. In most cases, they have already seen my credibility-building website, which includes about a dozen video testimonials from people I have helped. I also remind them that I have seen other homeowners earlier in the week, and have more appointments to come.
Next I work from a memorized script that continues to plant the seed that I’m their best option. I show them how I will make up the back payments on their loan and immediately improve their credit rating.
Later, when we have agreed on all the terms of the sale, I introduce the concept of acquiring the property on a “subject to"? basis. This basically means that I’ll continue making payments on their loan, further increasing their credit score.
This minimizes any future objection to taking over the loan while it is still in their name. It also saves me a lot of money on the deal by eliminating middlemen like banks and realtors.
Then it’s a matter of agreeing on simple things like the moving date, closing date, and so on. Then I review all the terms one last time. Just before I produce the purchase agreement, I say that it looks like I will be helping them…and that the people I was supposed to see tomorrow are out of luck because I never take on more than four clients per month. Saying this will help you handle any “we’ll think it over"? objections should they arise.
After all the paperwork is signed, congratulate the owners for taking action and doing the right thing. Be happy for them and show it!
Marko Rubel is a prolific real estate investor living and investing in the Phoenix, Arizona area, and provides seminars and home study courses to serious investors or those who want to become successful. To find out more, visit http://www.freewealthcoaching.com
About the Author
Marko Rubel knew just a few words of English when he arrived in the United States from Croatia in 1994 with a small suitcase, $3,000, and a huge desire to become wealthy. He soon realized that a job in Corporate America is not a synonym for the American Dream and financial security. When he discovered real estate investing, he recognized that he had found the way to transform his life into one of independence and happiness. free wealth coaching