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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Be a soft hearted schmoozer. Posted by kennyboy on August 25, 2003 at 2:54 PM In Reply to: Be a soft hearted schmoozer. posted by Ward-CA- on August 24, 2003 at 3:20 AM Ward: How do you handle the face amount of the straight note you talk about below? Is it a fixed price you estimate before the deal? Is it flexible based upon the actual selling price which may be less than the amount you estimated? How do notes handle this? Is the note enforceable without a fixed amount? Ken : : Ward, I hate to blow someone else's horn, but you are great. I will be a student of yours very soon. My partner and I have only scrached the surface of what you make available to persistent investors, and are enjoying success with our limited knowledge. My question is...when closing a propery (buying out the owner with a cash settlement)with significant equity do you suggest taking the earliest appointment with the seller and trying to come to an agreement/ closing the deal right there. Or, do you think giving them time to shop and besting there other offers is potentially better. In my limited experience Ihave found that most investors are willing to offer very little on houses with a lot of equity, making a better offer still quite profitable, and I have also lost deals due to hard closes when I give sellers some room to shop. Any thoughts??? : =-=-=-=-=-=-=-=-=-=-=-=-=-=-=-- : If you are working in CA, the strictures of CC 1695 require you to make multiple call backs. But even if you’re working some other state I’d still suggest you adopt the strategy of a generous schmoozer with your prospects. : You’ll get farther as a nonjudgmental, affable foreclosure expert who genuinely wants to help. Make your offer as good as what you would think is fair if your roles were reversed. : For me that would be a 50/50 net equity split after making deductions for all expenses on both sides of the deal. Use our Projected Net Equity Worksheet (see our free Fillable Forms page) to arrive at the net equity in the deal and then divide it in two. : To conserve our precious cash we give them $5,000 of their total in cash up front. $2,000 of it when we get the deed and $3,000 more a week later when they have moved out. Whatever the remaining balance we owe them is in the form of a Straight Note secured by a trust deed against the title of the property we now own. : Full payment of the note to them occurs when we’ve refinanced or resold the property. : By the way, give them a token of your appreciation for spending time with you on your first visit. Works wonders since your stingy competition won’t be giving them anything. : The nifty items I’ve seen are a letter opener (that’s encapsulated your business card), a slick little pen knife with 7 blades from Myron.com or the business card size magnets you put your business card on from Staples. : Treat people just like you’d want to be treated and you’ll start to love this business and make many deals, believe me. : Hope this helps. Follow Ups: Determinable note payoff amount. Ward-CA- 9:58 PM, 08/25/03 (0) Post a Followup: Name : E-Mail : Subject : Comments: : Ward: : How do you handle the face amount of the straight note you talk about below? Is it a fixed price you estimate before the deal? Is it flexible based upon the actual selling price which may be less than the amount you estimated? How do notes handle this? Is the note enforceable without a fixed amount? : Ken : : : : Ward, I hate to blow someone else's horn, but you are great. I will be a student of yours very soon. My partner and I have only scrached the surface of what you make available to persistent investors, and are enjoying success with our limited knowledge. My question is...when closing a propery (buying out the owner with a cash settlement)with significant equity do you suggest taking the earliest appointment with the seller and trying to come to an agreement/ closing the deal right there. Or, do you think giving them time to shop and besting there other offers is potentially better. In my limited experience Ihave found that most investors are willing to offer very little on houses with a lot of equity, making a better offer still quite profitable, and I have also lost deals due to hard closes when I give sellers some room to shop. Any thoughts??? : : =-=-=-=-=-=-=-=-=-=-=-=-=-=-=-- : : If you are working in CA, the strictures of CC 1695 require you to make multiple call backs. But even if you’re working some other state I’d still suggest you adopt the strategy of a generous schmoozer with your prospects. : : You’ll get farther as a nonjudgmental, affable foreclosure expert who genuinely wants to help. Make your offer as good as what you would think is fair if your roles were reversed. : : For me that would be a 50/50 net equity split after making deductions for all expenses on both sides of the deal. Use our Projected Net Equity Worksheet (see our free Fillable Forms page) to arrive at the net equity in the deal and then divide it in two. : : To conserve our precious cash we give them $5,000 of their total in cash up front. $2,000 of it when we get the deed and $3,000 more a week later when they have moved out. Whatever the remaining balance we owe them is in the form of a Straight Note secured by a trust deed against the title of the property we now own. : : Full payment of the note to them occurs when we’ve refinanced or resold the property. : : By the way, give them a token of your appreciation for spending time with you on your first visit. Works wonders since your stingy competition won’t be giving them anything. : : The nifty items I’ve seen are a letter opener (that’s encapsulated your business card), a slick little pen knife with 7 blades from Myron.com or the business card size magnets you put your business card on from Staples. : : Treat people just like you’d want to be treated and you’ll start to love this business and make many deals, believe me. : : Hope this helps. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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