Amazing Real Estate Deal | Smart Real Estate Coach

Amazing Real Estate Deal | Smart Real Estate Coach


Guys it’s Chris Prefontaine Smart Real Estate
Coach.com and I want to go over dealing today that is a little bit above average I tend
to always water it down so that we don’t over emphasize anything and we don’t make any you
know high-end promises but I will tell you ahead of time, Disclosure: This is above average. This is not the normal deal but I want to
walk it through it because you will by staying out there and calling on enough people, enough
home so people need your help you will find these deals. You’re going to see in this deal that we absolutely
made a seller and a buyer extremely happy by purchasing a home to
these purchase and then selling it to our tenant buyer. The source of this property isn’t expired
on that note, side note here: please make sure you get a hold of the expired dialing
process that my son once Zack has on our membership area. It is super important because we’ve gone from
me manually dialing say four years ago well this reason of the year and a half ago, to
totally automating the the auto dialer to touch expires than have a call backs from
the ones that are you know the low-hanging fruit the high priority leads. So it’s an expired listing it was called. We bought this property for now, see this
thing moving to get questions are just email me. We bought this property for the balance of
the mortgage plus about excuse me balance of the mortgage plus about Forty grand cash
the total 618. Okay? Well I’m so you show the cash is around Forty
K, when are we paying this? At the end of the term and the mortgage is
the difference there whatever that comes to. Okay? Now, the mortgage the price of the mortgage
because they had a first and a second and they decided to keep paying on the second
because it’s part of a line of credit they use long story short, we’re only paying on
the first but the lump sum has been paid off at the end. Okay? So the first mortgage is only 1260 but this
property has a very high tax rates and a flood zone so has flood insurance. Our total cost in this deal Twenty Five Hundred
Ninety Three. Now it was a lesson here very one because
this is pretty high it’s not too high for a property that we’re going to go out themselves
with $699K but I know when the rent-to-own world we know that that is going to be a tough
number to crack when you start adding taxes, insurance everything on top of that right? Because the mortgage payment at this price
with 20% down which they’re going to be required to eventually when they buy the buyers
you have mortgage payments turn around Twenty nine hundred bucks I figured on today’s rates. But so I want to make sure the tenant buyer
getting on the door be comfortable good to save money does it get cashed out that’s
the A game here we want to help them right? So here’s what we did, we went on the market
in Two Thousand Dollars, now you say well right away if you’re in the market for two
and you’re going to pay 25. What the heck? No, what we do is this, in our videos it’s
very well explained and when the buyers came into the buyer’s meeting just yesterday here
in the conference room, they were already well educated, went through all the videos
and understood completely that they are responsible in addition to this Two Thousand of the 833
taxes just like when they go to the bank can get a bank loan and the loan’s going to be
around Twenty Nine Hundred they’re going to pay the taxes Escrow on top of that and they
also because of the property where it is have to pay the flood insurance I’m not going to
pay it. Okay? So our adjusted monthly lease payments just
went up to 1333 that’s the payment we’re getting. I’m sorry 3333 that’s the payment we’re
getting in the door we’re sending our Twenty Five Ninety Three the difference is, when
you go to payday number two is Seven Forty I believe you do the math whatever that comes
to. So what could we sell with that? We sold it at 699k so let’s walk through the
three pay date by the way we tied this home up on a 36 month term with the ability to
extend it for one term of six months if necessary.We brought the buyers in more fantastic who frankly
the credit won’t take long at all but they need time to save some more downpayment because
they get into the 20%. Okay? Now follow us, sell to 699k payday number
one cash upfront $80,000. Now you have to qualify the buyer you have
to bring them to the right system so you cover yourself and you have a plan to successfully
get the buyer to the end result here I’m course skipping some steps but that is critical in
the process. You don’t stick them in the home that you
can’t qualify to the home you set up the field and you’re going to lose on that deal. Okay so now did this come all at once I wish
it did did none it came in convinced up around 20. Over the next I think it was only 12 months
or so 12 to 14 Okay? So they have payments. Okay? To get in the home it’s going to be 20 plus
2 plus the 333 which by the way plus 333 adds to pay day one. Why? So a lot of information is one video guys. But we keep the first payment because we have
contracted with the owner to take over the payments and the plot and all at. 30 days after we take occupancy that means
that’s the signings with our attorney, you always have an attorney with the buyers,
we’ll teach how to do that they’re going to bring in a check for 20 out of the 80 in
the 333. That’s payday number 1. Payday number 2 is what? The spread between the 333 in the 2593 which
is around 7:40 that’s right here 740 times 36 months is 26
grand. So far we’ve got 8333 Eighty Three Thousand
Three Hundred Dollar, we got 26 and what’s payday 3? Going to go through the math here. Payday 3 is 699K we sold it 618 we haven’t
tied up for. That’s about 80 grand profit coincidentally
we took 80 grand in the deposit over the next 12 to 14. So we took a lot of our profits in the 36
month term in the next few months. The principal reduction I’m using round numbers
for the video is around 500 a month for three years that’s another 18,000. What’s the morning pay they just said 80 so
you come up with about another 18,000. I add this up Eighty Three Thousand Three
Hundred Thirty Three 26 comes to what? 106 109 Thousand One Hundred Nine Thousand
plus 18 is 127. So on one deal on an expired listing it’s
127 k over 36 months. Now, is it worth it for you to understand
how to get to and properly speak with the write scripts expired calls? Is it important to you to understand how to
get two more of those in a shorter period of time once you have the right script of
the technology. I would think so. Is it worth it for you to learn how to structure
deals so something like this with a high price tag can get sold by marketing it this way
with the added cost to the homeowner because they are behaving like a homeowner. Absolutely! It is that this deal structuring if you become
the Real Estate master which is what we’re working on with everyone, there’s not a set
algorithm that says do this and every time you get this and every time you exist deal
you get that I wished it was. You are going to learn how to structure sale
with these deals better and better as your doom in the trenches with us which we offer
it on JV program but it’s going to take you get in the fire and doing a few of them. There is no push but you the answer I wish
like a lot of the other gurus I could tell you that. I’m not going to lie to you they’re not. You got to learn this stuff and you got to
do it with us. Is it worth it then for you to do all this
understand how to do that and do several these per year? In the month that I’m filming this, we had
three of these one agreement working on two more not all this level. We tend to average as follows to propose closure
here. We average around 20 in this one.Okay? This is a high one we have a twenty. We average around 308 this is a high One Seven
Forty and three we average around Fifty something or here around a actually with the principal
paying on 98. Pretty heavy on this one. It is above average it’s not the norm but
if you did one of these every quarter or one a year, would you be okay with that? I have JV partners that replaces their salaries
because that about what they make elsewhere. In particular I won’t forgive anything in
particular one of the professional field of Engineering that above this yearly is upwards
of 350 right now and deals under agreement in some shape form or fashion with the three
paydays. So I hope that helps you if you watch this
on our website because you’re a member great! If you’re on YouTube or other you have not
gone into the webinar and some of the other things we offer, please do that. You’re doing yourself an enormous
disservice if you’re not diving into someone’s material if in fact you want to get to.

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