2 "Little-Known" Methods That Easily Get You Motivated Seller Leads... Under $100 per Month.5/3/2016 If you're looking for affordable ways to generate highly-targeted, motivated seller traffic to your wholesale real estate investment business, this blog post will provide you with two great places you can start... even if you're on a budget. The first method involves the 6 major social media platforms:
Method #1 - Major Social Media Platforms |
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Want to Learn Exactly How We Do Deals
Just Like This One... Without Leaving Our Couch?
Get My FREE, Video Series That Shows You How To Build An
Automated "Virtual" Wholesale Real Estate Investing Business From The Comfort Of Your Couch.
The "Sandwich Lease-Option" is one of the best exit strategies a new (or even seasoned Pro) wholesale real estate investors who want to learn (and profit from) no-money down, "seller financing" strategies in their business can use to profit from property they do not own (but they do control) in 4 different ways.
None of the following exit strategy requires you to risk any:
- Of your own cash
- Of your own credit
- Of your family's cash or credit
- Private money loans
- Hard money loans
- Conventional loans
- Your good name
And the best part?...
You can complete this exit strategy, start to finish, ...without risking your own cash or credit and ...without ever leaving the comfort of your couch.
It's true.
I've been doing stuff like this for the last 8 years, and it's easier than you think. Watch the video below now and see how it's done without ever leaving your couch, and without using any of your own cash or credit. You'll love it!
Want to Learn Exactly How We Do Deals
Just Like This One... Without Leaving Our Couch?
Get My FREE, Video Series That Shows You How To Build An
Automated "Virtual" Wholesale Real Estate Investing Business From The Comfort Of Your Couch.
This 17-Minute Video Explains:
How a "Rent-to-Own" Transaction Works and How Sellers Can Get Their Full Asking Price, Pay No Commissions,
and Close In 7-14 Days
(Without Banks).
Now ask yourself:
Can you see how making this offer to sellers (anywhere in the country) can help you to get more deals, more sales closed, and more profits if you didn't have to ever get bank or private money financing?
If the answer is yes, I'd like to invite you to watch my 4-part video series where I show you exactly how I:
- Get endless streams of motivated seller leads for my wholesaler real estate investors, Realtors, "fix & flippers," rehabbers, and more.
- Allow my "Inner Circle" members plug their prospects into a 3-way call with me, so I can answer all of their prospect's questions (works great if this is all completely new to you)
- Help a complete newbie to Lease-Options and/ or Internet marketing get instant credibility by leveraging my 7 years of experience online and 8 + years offline the minute they join us.
- Automate 90% of my work using automated sales & marketing funnels to do my work for me.
- And tons more.
Maybe you can relate?...
Today, I'd like to show you how you can quickly and easily close 2 types of transactions that are probably hiding right underneath your nose, and you didn't even know it. And they're far easier to close than you think.
Here's the first one...
Homes with Zero Equity
Here's what you do:
- Offer the seller their FULL asking price. Yes, their full asking price.
- Do not charge them a commission or any fee at all. Ever.
- Act as a Principal only and... represent yourself only. Not the buyer. Not the seller.
- Build your fee ON TOP of the seller's asking price, and collect that as your fee, instead of a commission.
- Find a "tenant-buyer" instead of a buyer, and sell the home, "Rent-to-Own" instead of through a conventional sale.
- Seller needs $100,000, because she owes $100,000 (can even be slightly higher too), so she can't hire you to help her.
- You do not charge any commissions or fees to the seller - you only charge the "tenant-buyer"
- You do this by adding 3% (or $3,000) to the purchase price for a total of $103,000.
- The seller will get $100,000 (allow for 1.5-2% for closing costs, though who will ultimately pay them can be negotiated), plus their first month's rent and a non-refundable deposit equal to the rent amount. If you have to finance a portion of your $3K, do it to get the deal done at 10%.
- Make the lease term for 1-3 years, with 3 years being the ideal term. This makes more sense to a would-be tenant-buyer, since they will be exchanging a higher purchase price for time to fix their credit, get more time on their job, and or save up for their full down payment required by the bank.
- You collect the $3,000 (may be less if you need to make the deal work and give some of that amount to the seller - every deal I do is different, so this always varies).
- The seller is happy, because she got all $100K, and didn't have to pay you a dime.
- You're happy, because you didn't throw away a deal just because there was no equity to pay your commissions.
FSBOs That Simply Don't Want to Pay You a Commission
The seller in this case doesn't want to sell with you, not because they can't - but because the idea of paying you a commission makes them want to vomit.
So... just offer the same deal described above, and... PRESTO!... you've got yet another deal closed where both the seller and buyer love you and you can all ride off into the sunset.
Of course, there are more details, but this is the "bird's eye" view so you can start to see how being creative can help you to close 2 more deals each month that you may have been just throwing down the drain thus far.
And the best part?...
- There are no banks or underwriters to deal with at the start for you or the buyer, so more of your deals close each month.
- Closing in 7-14 days can now become a regular reality for you.
- You can ask all of your agent friends to send you all of their deals like this, so you can close more while doing less.
I've been doing this since 2009, solely online, and it works great.
- Sellers don't have to do much, because the "heavy lifting" is done online and contractually by us.
- Buyers love it, because they can now get the benefits of home-ownership before they can actually qualify, and you're a rock star, because you solved a problem for both parties from your home in your pajamas.
Want to See How I Do This from Home...
Like a Rock Star... While I'm At Home and In My Jammies?
Enter your best email below and watch over my shoulder right now and I'll prove it to you.
6,386 Tenant-Buyers Nationwide (and Counting)...
We are Russell & Diana de la Peña.
We're in bit of a pinch and... we need your help.
We've got some tenant-buyers who need a house... actually, we've got 6,386 tenant-buyers across the country (and counting) who need a house.
Here's the story...
My wife and I are real estate investors out of Southern California, and we advertise to find people who want to buy homes, "Rent-to-Own".
Well... our marketing worked amazingly well, and we found a lot more tenant-buyers than we had houses to sell.
So... we wanted to find a way to help these folks find a home and to make a little money on all the work we've done to find them and qualify them... so we set up this web page and started to look for wholesale real estate investors, landlords, home owners, and property managers like you.
About Our 6,386 Nationwide
Tenant-Buyers
They can afford the monthly payment and will qualify within 1 or 2 years. Many of them have already talked to a mortgage broker before we put them on the list...
We want to know exactly how long it would take them before they did qualify and could take out a new loan and pay off the house.
In the last 8 years of working with both tenant-buyers and property owners, we've only had one tenant-buyer not offer the property their full asking price.
The others (well into the hundreds and hundreds) have always been willing to accept the property owner's full asking price in exchange for great terms.
Our Tenant-Buyers Are Safer
Than the Usual Tenant...
So if the furnace goes out, they have to fix it or if the toilet stops up, they don't call you in the middle of the night. It saves a lot of landlord headaches.
And if the worst happens and they default, they lose their option and you can evict them. The beauty is that the percentage of evictions on this type of sale is way below normal tenant eviction rates... so it's a lot safer.
This Is All...
100% Free to You
As far as price goes...It doesn't really matter to us how much you want for it, but if we put it much over market value, we won't be able to find a buyer.
But there is no reason we shouldn't be able to get you full market value or maybe a little more because the way we are selling it. Our tenant-buyers are pretty motivated.
Let's Talk Today...
We can talk on the phone, and I'll answer any of your questions. As soon as you give us the okay, we'll send out an email to my tenant-buyer-list about your house. We have sold houses in 6 days with this list, so don't be surprised if things happen pretty fast after you give me the okay.
Let me know what you think.
Fill out the form below, and we can either draft a Letter of Intent that will describe our full priced offer to you, or... you can simply fill out our one-page Lease-Option Memo now and we'll begin right away, since you have no risk and nothing to lose - and everything to gain.
Whatever you decide, I wish you the very best of all good things.
Best Wishes,
Russell & Diana de la Peña
Schedule a Call with Me Here
P.s. There is never a cost to sell your property through our program. It's 100% free to you, the property owner, because our tenant-buyers pay our fee. We act solely as Principals in each transaction, representing ourselves only. We are not Realtors, attorneys, or accountants. Feel free to schedule a time to talk with me personally today here.
Frequently Asked Questions (F.A.Q.s)
It varies per property and the property asking price, but we usually try to collect as much as we can as a lease-Option fee. This is where we make our money, so our goal is to get a much as possible. Also, the more we get as a down payment, the more stable the tenant-buyer is for you, so it benefits us both.
What is the number of people who walk away from the house when the lease is over (either because they are unable to get regular financing or decide the no longer want the home.)
Approximately, 30-50% of lease-Option buyers will exercise the option. So it is likely that they will not buy it at the end. But there are some real benefits -
1. It doesn't cost you a dime to fill the property. That is what we do and we are paid by the tenant-buyer.
2. You no longer have to lose your mortgage or property tax payment every month since you will offset it with the monthly income.
3. You don't have to do maintenance on the property - the new tenant-buyer is responsible for repairs up to $5,000.
4. You don't pay for utilities.
5. They cut their own grass and shovel their own snow.
6. They don't call you like regular tenants.
7. You get a 3+ year lease rather than 1 year for most tenant-buyers.
8. You get a more stable tenant-buyer than a regular renter, because the folks that move in see themselves as owners rather than renters. Remember the old adage, "You don't wash a rental car." Same goes for buyers vs. tenants of houses.
If the person walks away from the lease what becomes of their down payment?
It is non-refundable to the tenant-buyer. When they end their lease, we would be happy to help you fill the property again - we have a very active and growing list of buyers. Again, when your home is priced correctly, filling a property with our tenant-buyers is very easy and quick for us.
Who is responsible for upkeep and maintenance on the home.
This is all the responsibility of the tenant-buyers.
Since the home has a mortgage are there any problems with leasing that would cause the "Due on sale" clause of the mortgage to be invoked by the lender?
No, a lender would see this as a lease, not a transfer of ownership. Remember, this is a Lease with the "Option" to buy the home, as well as the "Option" not to buy it. No sale has taken place yet, until they exercise their Option right.
Because it's a lease, does the person leasing the home get the homestead exemption or would it be treated like a rental property, and if so, at what point would the taxes would go up without that exemption.
It would be treated like a rental property, so eventually the exemptions would be removed and the taxes would go up.
But - you also get the benefits of owning rental property.
You will get several financial benefits from keeping your property and selling it as a lease-Option:
1. Depreciation on the property. This is a good thing. You can deduct 3.64% of the tax basis (27.5 years depreciation) of the improvement of the property against either active or passive income (depending on how you are set up). On a $100k property, this would equal about $1k in real cash savings on your taxes each year. (talk to your CPA for details about how this works).
2. Appreciation of the property. Over time, the value of the property goes up. We know it's been a rough patch in the market these last few years, but the likelihood is that the values will eventually go back up. This will make it possible for you to sell the property in the future and make a profit rather than have the potential (in many cases) of actually having to come to closing with cash to sell it.
3. Buy down of the mortgage over time. Over time, the note will pay itself off. You may have years before this happens, but every month a little bit of your payment goes toward the principle and you will build equity.
4. Rents go up over time as a hedge against inflation. The thing we love best about our investment property is that the rents go up. We know of no other investment that has an automatic hedge against inflation like this. Most houses have 30 year fixed payments, but as rents go up, if you apply the extra income to the mortgage each month, you will likely pay it off in 10-15 years because of the increased cash flow.
There are also some negatives to consider if you do not use our program:
1. Risk of vacancy. Over time, you will have vacancies. Each month the property is vacant, you lose money. The beauty of working with us is that we have lots of tenant-buyers and can fill it very quickly. The risk of selling it on the open market is often much higher than selling it through us with a Lease-Option. Keeping it on the open market, you must pay the mortgage, utilities, taxes, insurance, grass cutting, maintenance and wear and tear that comes from keeping a property vacant (did you know that the plumbing will often deteriorate in a vacant house because of lack of use?).
2. Risk of damage from tenants. There is always going to be wear and tear on a house when someone lives in it. When they move out, you will need to have it cleaned up before you sell it again. It's also possible that someone will deliberately 'trash' your house. This is very rare when you sell, "Rent to Own" using our tenant-buyers, since they're paying more to ultimately own the home, rather than just rent it.
3. Management headaches. We hate managing property and make a point NEVER to talk to any of my tenants. The biggest reason people say they hate real estate investing is because they manage their own property. This, in our opinion just doesn't make sense. Let our tenant-buyer be responsible for the repairs - the first $5,000 so that you will not need to pay 10+% of your monthly income to a property management company.
4. Picking a bad buyer/tenant. This is another mistake most newbie investors make - they screw up on tenant-buyer selection. That is why we put them through a qualification process that vastly improves the tenant/buyer's success rate.
The downside is that taking on tenant-buyers, in my opinion, is much smaller than the upside - especially if the alternative is a vacant house. We know that in a good market, 33% of all properties listed for sale on the MLS do NOT sell. Right now, that percentage is much higher. We also know they will not sell for more than market value and that the cost to sell with a Realtor will run you about 10% after commissions, closing costs, repairs, and negotiation. For many people who are close to market value on their mortgage, this cost just isn't possible.
How do buyers get financing when it's time to exercise their Option?
They go to any conventional lender and apply for a loan. The reason they are buying "Rent-to-Own" right now is because they do not qualify for a conventional loan. Since 2007, conventional loans have become much harder to qualify for - ask any mortgage broker. That is why so many properties that are for sale by real estate brokers don't sell. Buyers just can't get loans without almost perfect credit. Appraisals have also been a problem recently, so even if the Buyer qualifies, if the appraisal doesn't come in, they won't be able to finance it.
Our goal is to help good and responsible people get into a home. People who will take care of it and treat it like their own. We've had good luck finding just that over the years.
If the tenant-buyer exercises the Option, that's great and you make your money. If they don't, the advantages of having someone pay your mortgage and buy a house for you are enormous.
We believe that selling the property as a lease-Option is the solution that is the least painful. In fact, it may end up being the best financial decision you ever make.
My wife and I hope these answers give you a better idea of how this all works and helps you decide if it is for you or not.
Feel free to call us if you have additional questions by clicking here now. If you are ready to go, just fill out the form below, and we'll get started immediately. We'll email blast out the details of your property to our tenant-buyer-list and get it assigned/ transferred to one of our tenant-buyers as soon as possible which you will approve first.
2 Easy Ways for Finding Motivated Sellers In Your Wholesale Real Estate Investing Business
10/9/2015
Let me first start by saying, we at PushButtonInvestor.com do not purposely prospect "desperate" sellers who are in danger of losing their homes, or who are behind on their monthly mortgage payments, etc.
That is not to say it is "wrong" to help sellers that need help (without taking advantage of them, of course), but only to say that our focus is not that type of seller scenario.
This fact is on purpose, because we're looking for quick, easy, and daily ways to control property (without ownership), profit from that property, and be able to simultaneously help a property seller meet their needs - not just ours.
My definition then, for the sake of this blog post, is of a "Motivated Seller" who has a need that they themselves either do not know how to resolve, do not have the time to resolve it, or who knows how to solve it, but does not want to on their own.
The 2 types of property owners we look to help are:
- Landlords who do not want to be landlords anymore and now want to sell (or plan to in the next 3 years)
- For Sale By Owner (FSBO's) who no longer want to sell their property on their own, but who still refuse to pay out any Realtor commissions (if you are a Realtor, what I'm about to show you will allow you to still help these folks and profit without charging a commission)
We are going to offer these two property sellers a Lease with the Option to buy (A.K.A "Rent-to-Own") exit strategy, and source them our tenant-buyers.
While there are many free websites where you kind find these two groups, for the sake of simplicity and quickness, let's just focus on one - Craigslist.org.
Here's what you do:
Step One: Go to Craigslist.org and search for...
"Homes for Rent"
Ideally, properties not listed in this way are best, because it allows you to bring the most value to the owner as you, the real estate expert, can lead him or her through the entire process from start to finish, allows you to control the transaction, and allows you to source the buyer and "earn your keep" so to speak.
As you can see, there are lots and lots of potential listings that you can call on here, and this just one website. Not to mention the fact that there are new listings added every day nationwide (even worldwide), so you'll never run out of leads.
Simply click on a listing, contact the owner, and ask them if they would consider selling, "Rent-to-Own" instead of just renting the home only.
You'll find that 1 out 3 sellers, when presented with this option correctly, will say yes to you.
Think about it.
The landlord who does not want to be a landlord any longer, will be open to listening to all fair options that allow them to stay in control, get a full price offer, get a better-than-normal tenant (a tenant-BUYER), and... if they don't have to pay you a dime in commissions or fees... they're all ears.
"For Sale By Owner"
For the FSBO, the ideal goal is to sell their property today, get cashed out, and be done with the property so they can move on with their lives, right?
The answer is yes, but the reality is these folks, more often than not, are unable to sell their property in the time they need to so as to avoid a double mortgage payment, or they simply cannot sell the property at all for they price they want.
That's where you come in.
You offer to solve this problem by sourcing one of your tenant-buyers on your Buyer list, get them the price they want or need, and essentially take the property mortgage payment off their hands for predetermined term length (usually 1-3 years).
Yes, the owner will not be cashed out today, but for the property owner that cannot sell fast enough, and that is in danger of having to make a double mortgage payment every month, or in danger of becoming an out-of-state landlord (it's hard to fix leaky toilets when you live out of state), this solution is the next best option for them.
In both of the above seller categories, you can offer these property sellers their full asking price, never charge them a dime in commissions or fees, and even help them find a safer-than-most tenant-buyer for their home in just 7-14 days, if you know what you're doing
Author
My name is
Russell de la Peña and my wife Diana and I live in beautiful Southern CA. We own several offline and online companies and love to help others succeed in doing the same.
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