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How The "For Rent" Method For Real Estate Investing Can Make You $5k In 7 Days
 
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http://www.JoeCrump.com/youtube A quick and simple way to start making money as a real estate investor without investing a dime or using your credit. You can start this method today and make money, very, very quickly. This audio series will show you the basic method and then go on to show you how to automate that process with Internet Marketing so that you can create consistant, reliable income every week. To sign up for the series, go to http://www.JoeCrump.com Six Month Mentor Program http://www.ZeroDownInvesting.com “Push Button Automarketer”: http://PushButtonAutomarketer.com Read Joe Crump's Blog: http://JoeCrumpBlog.com/ Read the Transcript: You can make a nice chunk of cash in real estate by using the "For Rent Method". I'll explain what it is and how it works here. “Can you explain the “For Rent Method” for me? Can it really make me thousands of dollars in a few short days? I need money now.” – Christie Lambert, Seattle, Washington Joe: I don’t think you’re any different than most of the people that are watching these videos – you want to get to the money as quickly as possible, and absolutely – you can make money with the “For Rent Method”. And that’s why it’s the first thing that I teach in my “Push Button Method”. Joe: When you look at the quick start video, it’s about the For Rent Method. When I have somebody start with my partner mentor program (my “Six Month Mentor Program”) I always start them with the For Rent Method. When we go to the buying event, I always start the buying event teaching the For Rent Method because it’s one of the quickest easiest ways to get money very quickly. Joe: I’ve seen people make money using this method in five minutes, making thousands of dollars in five minutes. Those are people that are more advanced and they already have the infrastructure set up and they have their list built (because you can sell this very quickly). But I’ve also seen people that started from scratch, brand new people make this thing happen within a week. So, it doesn’t take long to make this happen. Joe: Let me tell you the structure of how the For Rent Method works. When we’re not automating this process (because there’s ways to automate this process, too) this is what I start everybody with, because I think you need to go through the grunt work a little bit to understand the whole process; you’ve got to walk before you can run. So what I do is I have them get on the phone and call people that have their homes listed for rent and then ask those people, ‘Hey, would you consider selling your home rent to buy rather than just renting it?’ And we find that one in three of those people immediately say, ‘Yes, I would consider that.’ Joe: So what we do is we give them what I call the lease option memo. It’s a one page, very easy to read memo and easy to sign because it doesn’t obligate them to anything. We have them sign that, and essentially it’s a lease option that gives us the right as the investor to assign that right to buy to someone else, to another buyer. So we’ll take that lease option – that makes us a principle in the transaction. Joe: And that, by the way, is what makes it possible for us to be legal doing this. If you don’t use that document, you’re not going to be legal. You have to be a principle in the transaction or you have to have a license to be able to represent that seller. You’re not representing the seller if you’re doing it my way – you’re becoming a principle in the transaction which makes it possible for you to do it legally and go out and sell that property to another buyer. Joe: Once we get that lease option memo, then we go out and we find a lease option buyer. I have some amazing marketing techniques that make that happen quickly. As this video series goes on, we’re going to be talking about those techniques to find those buyers quickly and easily and with very little money. We’ll put our marketing out there, and we get a lease option buyer usually within a week or two weeks, almost always within 30 days, assuming that the deal was put together properly. We then ask that buyer to give us a lease option fee and the first month’s rent. Joe: So, let’s say we have a property that’s worth $150,000. We’ll ask them for a $5,000 lease option fee and the first month’s rent. Let’s say it’s a $1,200 a month deal. We’ll get $5,000 in one check, $1,200 in another check and we keep the $5,000 – that’s our profit in the deal. The $1,200 goes onto the landlord. He gets that in the deal plus he gets full price. If he wanted $150,000 for his property, we are going to go out there and sell it for 155 even if it’s only worth 150, because.... To read the rest of the transcript, click here: http://joecrumpblog.com/what-is-the-for-rent-method-and-how-it-can-make-you-an-extra-5k-in-7-days/?utm_source=Youtube&utm_medium=EndLink&utm_campaign=Youtube13109
Views: 47454 Joe Crump
How To Create $10,000 Passive Monthly Income And Retire - Real Estate Investing
 
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http://www.JoeCrump.com/youtube If you are using the automation and outsourcing techniques that I teach in my Push Button Method and in my Six Month Mentor program, you will eventually want to outsource your buyers. This can save you a huge amount of time and effort and is not that expensive to set up. There are some issues you have to solve before it will be an effective strategy -- watch the video for details. Read Joe Crump's Blog: http://JoeCrumpBlog.com/ Six Month Mentor Program http://www.ZeroDownInvesting.com Joe Crump's website: http://JoeCrump.com Read the Transcript: Bringing in a $10,000 monthly income is more than just possible; it's a reality for plenty of real estate investors. "Based on my own background, the main thrust is, 'Where is all of this leading? What's the finish line?' For example, how do I create a minimum $10,000 a month permanent income, not lease options that can cash out? Besides paying off the single family houses, which is great, how do small to large apartments and self-storages figure in this ultimate plan? In short, where is all of this leading?" -- Jeff from Seattle, Washington Joe: Well, the goal is to have 100% passive income and just like you say here, if you can get $10,000 a month, you have $120,000 a year and that's a pretty good income, and if you own rental property or real estate in general, typically rents go up over time because inflation makes them go up, so that makes your passive investment inflation proof. If you buy a fixed cd or annuity and you know it's going to be _x_ amount of dollars, you know that it's going to stay the same until you die, whereas real estate has the potential to go up and the likelihood is that it will go up over time. Joe: Values fluctuate and we've all seen a big adjustment in values across the country, but income has stayed pretty stable across the board, all over the country, and we've seen a little bit of adjustment in rents on the downward side over this last year or so. I was surprised that it didn't drop earlier but it didn't. Then we've seen in the last year that it's dropped maybe 5 to 10% in some places. Joe: But it's still a good solid investment. All of the real estate that I own is still bringing in income every month. I own property free and clear. I also own property that I bought "Subject-To" that is paying off a loan over time and will work really well, and I even bought properties that I used loans to do. You can't get investment loans these days that make any sense at all, and I wouldn't suggest that anybody do that (there are some other problems with that as well which I won't cover in this program). Joe: The other question you had was, Jeff: "Should I buy commercial property like multifamily and self-storage?" Joe: If you have the cash, they can be good investments. If you look at single family homes and you look at the rent to price ratio, it's much higher on a single family home than it would be on a commercial property, depending on where you buy. If you buy in good solid, blue collared neighborhoods where you can get substantial, professional, competent property managers, that's what you want, because for it to be passive income, you have to have a good property manager to handle the work for you, or good property managers if you're in multiple areas like I am. Joe: It's very important to have good people that can do this for you. You don't have to manage the properties yourself, whether it's self-storage or commercial. So if you have good property management, it's one of the reasons to buy commercial, which from what I hear from people that own a lot of commercial property, is easier to manage. Joe: But you also have the potential for more vacancies, especially in a volatile economic environment. And you still have to make payments on the mortgage, unless you paid cash for the property, and then it doesn't hurt as bad, but it still means that you're going to have less income per dollar that you spent. So if you want to get a 5-35% return, which you can do in real estate and which I'm doing, and if you do even more things to it like become active in the investing part of it or you turn around and sell some of the properties that you buy, then single family homes make a lot more sense for that reason. Joe: I've done commercial, I've done self-storage and have worked in those environments but I like single families better, and the majority of what I have in my portfolio is single family homes, and I'd recommend the same for you. ... To read the rest of the transcript, click here: http://joecrumpblog.com/how-to-create-10000-passive-monthly-income-and-retire-real-estate-investing/
Views: 223827 Joe Crump
Structuring Deals #1:"Subject To" Deals
 
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http://JoeCrumpBlog.com - Sign up for free real estate investing training with 25 year real estate veteran, Joe Crump. Learn how to build an automated, sustainable, profitable investing business with no down payments and no credit. Discover the most advanced automation software for investors available today at: http://www.PushButtonAutomarketer.com Learn how it will bring you a flood of motivated seller financed leads every single day. Six Month Mentor Program: http://www.ZeroDownInvesting.com In this series I'm going to explain the different zero down structures. There's five of them that I'm going to focus on that encompass just about every different type of structure that you can use. And there's a hierarchy based on the type of offer that you're making, whether you're buying or whether you're selling. I'm going to try to explain some of those things in these videos. The first five videos in this series are going to be explaining each of those different structures. So you'll probably want to listen to them all eventually, one after the other. But right now we're going to trickle them out, you know, once a week or whatever, and you're going to be able to listen to them that way. After that, I'm going to do some example deals and I'm going to show you here is a situation, here's how much they want for the property, here's how much it's worth, what kind of offer can you make on it that would work as a zero down structure that would make you money. So that's how I'm going to go through this next series of about 15 videos or so. So let's start, first of all, with subject to. What is buying property subject to the existing loan? Essentially, what you're doing is asking the seller who already has a property and has a mortgage on that property to transfer the title to you. Transfer the deed to you. And so they sign over the deed to you, you take over the property, and you start making payments on their existing loan. You're not going to qualify for that loan, you're going to take over that loan payments. You're also going to transfer the insurance into your name and you're going to start making the tax payments as well. So you're going to be paying principal, interest, taxes and insurance on that property. This is the strongest way to buy a property, having control of the title and not having your name on a loan. Now you don't have to qualify for the loan, you don't have to have good credit, you don't have to have any down payment and you have full control over this property. The seller has no control over that property. You now have control over it. If you don't make the payments on that property, you trash their credit. So you're obligation, your ethical obligation is to make sure you make those payments. If you take that property, start collecting rent on it, don't make the payments, that's considered fraud and they can put you in jail for that. So don't do that. We have a whole package of documents that we ask them to sign, you know, disclosures, and you know, giving us the right to have control over the insurance policy, you know, those types of things that we have on every subject to property that comes through. We also have the right to talk to a lender, which we get in writing, we ask them to give us the password to their online account, their bank account that shows the mortgage account so we have access to the mortgage. We can pay it online if we want to and do it that way. I can't give legal advice. I'm not an attorney, so, take my advice as from my experience, not because I legally have the right to give you legal advice. I don't. I don't even play one on TV. So, anyway, hope that helps. That's subject to. Next time when we come back, I will talk to you about multi-mortgage as the second in the hierarchy. All right. Hope that helps. This transcript was truncated. To read the whole transcript and more of Joe Crump's articles, click here: joecrumpblog.com/structuring-deals-1subject-to-deals/
Views: 17845 Joe Crump
How To Build A List Of 200 to 400 Motivated Sellers In 3 Minutes - Real Estate Investing
 
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http://www.JoeCrump.com/youtube How To Put Deals Together Without Making A Call I am going to teach you how to use a 100% automated system to buy and sell property. I taught this brand new information for the first time at my last Two Day Buying Event. Although it's been working amazingly well in it's current version, this new upgrade and major overhaul changes everything and automates the entire process of working with Buyers and Sellers. Six Month Mentor Program http://www.ZeroDownInvesting.com Read Joe Crump's Blog: http://JoeCrumpBlog.com/ Joe Crump's website: http://JoeCrump.com Read the Transcript: I'm going to show you how to use the systems I teach to build a powerful list of sellers who will contact YOU about deals, instead of you having to contact them. Joe: That's what we're doing with the "Automarketer" and the "Push Button Method". When those people say yes, out of 200 to 400 people, you're going to get 20 to 40 solid potential sellers for property that you can get control over and turn around and sell to lease option buyers. If your conversion is good and you're really good at this, you can convert between 30% and 70% of the people that come in out of that 20 to 40. If you're not very good, you can still convert 5% to 10% of the people you talk to. Joe: So, if you're only converting on a 5% of these types of leads, it means that you're doing approximately 1 or 2 a week. If you're doing 1 a week and you do that over 52 weeks and you make an average of $3,500 per deal, it means you're making $182,000 a year using this very simple technique. It's not going to take you that many hours per deal to make it work. Joe: Once you get it going and you get experienced, then, you have 3 to 5 hours into a deal, which is a lot of time to have in one deal, and if you're working 250 hours a year over a 52 week period, then that's a lot better than working 40 hours a week, so your life will change dramatically when you get the system set up to do this kind of thing. Joe: The way we're building a list like this is that we're using a Craigslist scraper. It's in my new automarketing system. The "Automarketer" has a scraper in it to where you put in the criteria you want. You say, 'I want to pull up all of the for sale by owners in Indianapolis on Craigslist.' Then, I click a button and it starts to scrape those off of Craigslist and it'll give me a list of all of those email addresses. Then we send out a message to those folks saying something like, 'Would you consider selling your home rent to buy rather than just renting it?' Joe: We get a response back from 8% to 15% of those people. Some of them call us. Some of them send us back emails. When we get back an email, the Automarketer automatically categorizes those people into one of three categories. If it's a yes, it puts them into an autorespnder that says, 'Go check out my offer. Here's the website. Go look at this offer and it'll tell you exactly what we're doing.' Joe: The website's already set up. It's part of the clone system in the "Push Button Method". They go look at that and if they like it, they can fill out the form. If they don't like it or they don't want to do it, then they don't do anything and then a few days later, they get another email from us saying, 'Hey, we're still interested in buying. Go check out the website.' It follows up with them forever until they either opt out (because they have a one click link that they can opt out with) or they buy from us or sell to us or they die, or they change their email address. And if one of those things happens, then they go off of our list. Otherwise, they keep getting followed up on. Joe: The other category is the people that say no. But we don't ignore those. We put them in the autoresponder and a week or two weeks later, we send them another email saying, 'Hey, we're still interested. If you haven't sold your property yet, we'd like to buy it rent to buy. Would you consider it now?' and that continues to go out to them over every few weeks until they die or until they sell their property as well. Joe: The last category is that they say yes but they also give us a phone number. And I believe that you should call those people. So, when that happens, you just have to look at the list, pick the person, and then you can filter them out by the people who have called and you can go into the contact management and see the phone number and the email that they sent. Then, you call them and put the deal together over the phone. That's how you put together a lot of leads and deals like this. Joe: You can set it up so that it's all automated so that you don't have to talk to anybody. Or you can set.... To read the rest of the transcript and more of Joe Crump's articles, click here: http://joecrumpblog.com/how-to-build-a-list-of-200-to-400-motivated-sellers-in-3-minutes/?utm_source=Youtube&utm_medium=EndLink&utm_campaign=Youtube130910
Views: 42915 Joe Crump
Structuring Deals #4: Lease Option
 
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http://JoeCrumpBlog.com - Sign up for free real estate investing training with 25 year real estate veteran, Joe Crump. Learn how to build an automated, sustainable, profitable investing business with no down payments and no credit. Discover the most advanced automation software for investors available today at: http://www.PushButtonAutomarketer.com Learn how it will bring you a flood of motivated seller financed leads every single day. Six Month Mentor Program: http://www.ZeroDownInvesting.com Hey, it's Joe. This is zero down structure No. 4. This is lease option. And lease options is what I talk about all the time. You know, that's how we do the for rent method, we get control of a property using a lease option memo that allows us the right to buy that property on a lease option and makes that right assignable so that we can sell it to someone else at a profit. So we raise the price, sell it at a profit, they give us a down payment, we take the down payment, we take the first month's rent and give that to the seller and give them a lease option buyer at their full price, you know, with a three-year lease on it and a three-year option on it. And that's how we make a profit. Basically, a lease with an option to buy is a lease, they're going to rent the property but they have an option to buy that property anytime within their lease. Typically we'll do a three-year lease option. And they usually pay a lease option fee to do that. We ask them for $5,000 or $10,000 or $20,000 depending on the type of lease option or the price of the property that we're dealing with. But what they're getting is home ownership without credit, with a little bit of money out of their pocket and they're getting a home that they can call their own while they're there. And then when it's time for them to move out, they can either exercise the option at the price that they agreed upon, the guaranteed price that they agreed upon, or they can say, no, I'm not interested, I'm going to move out. And then they can move out. And the seller can then turn around and sell it to somebody else and we can do that for them, and we can get another lease option fee. You know, that's the beauty of doing, of having our own properties. We can, you know, get that property and we can get, you know, a lease option fee. I've seen people get as many as three lease option fees in a year on one property. And that's because people would move out. They'd put the lease option fee down, they'd rent it for a few months, and they'd say, oh, we've to move. They move out, goes out and finds another lease option buyer, makes another five grand, does it again and again. Now, it's nice to have people that stay there forever. You want them to succeed and you do your best to help them succeed. But if they don't, at least you've got it covered. You're vacancy times are going to be covered by the lease option fee, the next lease option fee that comes in and then some, hopefully, we make even more money than that. So, that's a lease with an option. And that's the fourth step down in the zero down hierarchy. All right. The next one we're going to talk about is cash assignable deals. Also known as wholesaling. So, we'll talk about that on video No. 5. To read the whole transcript and more of Joe Crump's articles, click here: http://joecrumpblog.com/structuring-deals-4-lease-option/
Views: 8469 Joe Crump
What Do You Do If The Seller Wants The Lease Option Fee?
 
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http://JoeCrumpBlog.com - Sign up for free real estate investing training with 25 year real estate veteran, Joe Crump. Learn how to build an automated, sustainable, profitable investing business with no down payments and no credit. Discover the most advanced automation software for investors available today at: http://www.PushButtonAutomarketer.com Learn how it will bring you a flood of motivated seller financed leads every single day. Six Month Mentor Program: http://www.ZeroDownInvesting.com Read the Transcript: "What do you do if the seller wants some or all of the lease option fee? How do you keep the seller from competing with you by marketing to rent or sell the property?" -- Kevin Joe: Let's start with the second one first -- 'How do you keep the seller from competing with you?' -- You just write it into the contract. We actually set it up in the lease option memo to where it says that they can go ahead and sell it themselves since most of them won't do that. Joe: If you find that you're getting beaten up by people who are getting their properties rented before you can find a lease option buyer, which is possible, because sometimes it's easier to find a renter than it is to find a lease option buyer because they don't need as much money to buy the property, and so if you're getting beaten out on deals like that, then you just write in, 'The first 30 days I ask that you not do any marketing and let me handle it'. If you learn how to get that compliance, then it won't be a problem for you ever again. Joe: I have a student who just recently went through that same situation. He lost two or three deals right in a row because they went out and rented it out from under him. From then on, I said, 'Look, just tell them they can't rent it until you get your 30 days.' He does his 30 days now and he gets his properties sold and doesn't have that problem anymore. Joe: The other question here is, 'What do you do if the seller wants some or all of the lease option fee?' That is a question you will get all the time. They always want a deposit, they want some of the lease option fee, and they say, 'Oh, we'll do it, but we want $10,000 down.' People want more -- there's no question about it -- no matter who you buy from, they want more money. Joe: The question then becomes: what are their options? Do they have options? If they want $10,000 for the down payment, do they have that option? Can they get $10,000? -- Probably not. And they're not going to be able to get it without you, which is what they'd have to do. Joe: If you give them $10,000, you're not going to have any left for yourself. You're probably are not going to make $10,000 on a $150,000 property when you sell it on a lease option. You may make $5,000. So if you make $5,000, obviously you can't give them $10,000 because the buyer won't have enough money to make that happen. Joe: So what is possible? What is possible for you and what is possible for them? It's unlikely that they're going to get it, and even if they try to sell it, for them to get the $5,000 is also unlikely because they don't understand how to sell it. Joe: You're working in this business and it's your business. It's what you do for a living -- finding buyers for properties like this. So the chances that you're going to be able to accomplish it with the marketing techniques I'm teaching you and with the abilities that you have that you're learning through this process, and the fact that you're building a database of buyers -- with all of that taken together, you're going to be able to sell it much quicker than they will. Joe: You just have to show them what their options are. They could go to a realtor, they could sell it for under market value, they could go into foreclosure; they have just a few options that they can take. Joe: Joe: What you need to do is present them with their options AFTER you understand what they need and what their situation is. Everybody's going to be in a little bit different situation, so you need to analyze their situation and say, 'Based on what you've told me, here are the options.' Joe: By the way, in the Automarketer, in the lead sheet on each of these leads that come in, there's a little button that says 'seller options'. If you click on that button, it'll open up a list of all the seller options that are the most common ones. Then, you can read through them, and you can read through them with them right there on the phone and say, 'You could sell it with an agent. Here's what happens if you sell with an agent,' and help them understand how it works with an agent, or how it.... To read the rest of the transcript and more of Joe Crump's articles, click here: http://joecrumpblog.com/what-do-you-do-if-the-seller-wants-the-lease-option-fee/?utm_source=Youtube&utm_medium=EndLink&utm_campaign=Youtube
Views: 16022 Joe Crump
5 Zero Down Offers You Can Make Today
 
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http://JoeCrumpBlog.com - Sign up for free real estate investing training with 25 year real estate veteran, Joe Crump. Learn how to build an automated, sustainable, profitable investing business with no down payments and no credit. Discover the most advanced automation software for investors available today at: http://www.PushButtonAutomarketer.com Learn how it will bring you a flood of motivated seller financed leads every single day. Six Month Mentor Program: http://www.ZeroDownInvesting.com The zero down structure hierarchy which allows you to decide what type of offer to make on a property depending on what you’re trying to accomplish and what the seller needs. The top of the hierarchy is subject to, taking the property subject to the existing loan because that gives you the most control. You have to assume when you buy a property that you’re the most ethical person in the room. In order to do the right thing you need to be in control. You take the deed and you get control of that deed when you buy the property. When you’re selling a property, you want to give the least control. The hierarchy reverses and now lease options are at the top of the structure. If you’re selling a property that you own you want to give the buyer the least control of the deal. You’re still going to treat them fairly, you’re still going to follow the rules. But if they default you’re going to be able to get that property back without too much pain. Land contract, then multi mortgage and subject to. You never sell a property to. You only buy a property subject to because subject to takes control away from the seller and gives it to the buyer. You’re going to buy subject to, you’re going to sell lease option, top and bottom part of the structure. Multi mortgage. Let’s say you buy for eighty, you’ve got forty on it and you could put a second mortgage on there and now you’ve got $80,000 that you’re paying to them. A $40,000 note paying to them and $40,000 that you’re paying to the bank on a regular basis. Make sure you make those fully amortized notes so that you can pay them off and there’s no balloon payments. Don’t do balloons when you’re buying. Only do balloons when you’re selling. Encourage them to cash it out by getting a new loan if they’re able to do that. Land contract does not transfer the deed. It’s just a piece of paper that’s in agreement between you and the seller. When that payment is done, the seller transfers the deed over to you and you take the deed to the property. It’s a little harder to get rid of a land contract buyer than it is to get rid of a lease option buyer, so keep that in mind if you ever sell on a land contract. If you’ve got a property that’s not in very condition, sell it on a land contract rather than on a lease option because a lease option, they could take it to a judge and say, “Hey, this property is in terrible condition, my furnace went out,” and then you’d have to fix it. On a land contract the judge could say, “Yeah, you’re the buyer of this property. You have to take care of that furnace yourself.” Lease option is essentially just leasing a property with the option to buy. As the seller it gives you more control if that person defaults so you can get rid of them, usually with just an eviction. Assignable cash deals. Essentially you’re getting a purchase agreement to buy a property for X amount of dollars and then turning around and selling it and charging an assignment fee. Let’s say you get a property that’s worth a $100,000, you get it for $50,000, add a $5,000 assignment fee, the new buyer gets it for $55,000, they come in and cash you out and you get $5,000. $50,000 goes to the seller and the new buyer has a chunk of equity still in that property. Learn how to do it with no money first and that way when you invest real money or real credit you’re going to be able to do it right way and not screw it up and lose those assets. To read this transcript and more of Joe Crump's articles, click here: http://joecrumpblog.com/5-zero-down-offers-you-can-make-today/
Views: 13535 Joe Crump
The Difference Between A Land Contract And A Subject To Deal - Real Estate Investing
 
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http://www.JoeCrump.com/youtube Real estate investment expert Joe Crump teaches zero down investing techniques. Learn foreclosures, short sales, "Subject To", land contracts, "Multi-mortgage" and other creative real estate financing structures. Six Month Mentor Program http://www.ZeroDownInvesting.com "Push Button Automarketer": http://PushButtonAutomarketer.com Read Joe Crump's Blog: http://JoeCrumpBlog.com/ Read the Transcript: I spend so much time explaining this to my students: the difference between a land contract and a Subject To deal and the hierarchy of zero down real estate deals. Let me go through it again and explain the differences between them and what works and why in different situations. "Joe, can you give some basic definitions for some of the strategies you implement? How can I explain the difference between a land contract versus a "Subject-To" versus a lease option, etc.? Thanks, Javier." -- Javier Pelanco Joe: I'm going to try to make this quick. We spend two and a half to three hours on this at the Buying Event because this is the core information of what I teach -- this is the most important part that you need to understand -- structuring zero down deals. That's what this is really all about. Joe: If you understand what the hierarchy of these structures is, it'll make it easier for you to look at a particular deal and say, 'Yes, that deal needs to be structured in this way in order to make it work.' Ultimately, what we're looking for is a way to solve the problem of the seller. Also, we're financing deals. All of these kinds of investment deals are about solving the problem for the seller, and when you solve that problem for them, then they'll want to do the deal. Joe: But it has to be solved in a way that makes profit for you. So, rather than talking about how we're going to make a profit on it, I'm going to talk about how we're going to structure the deals, the different structures that are available and the hierarchy that they should be in, and I'm going to try to do this in the next two to three minutes. Joe: First of all, "Subject-To": this is the top of the hierarchy. The way you buy the property "Subject-To" is the seller that has an existing mortgage on the property deeds the property to you. The loan stays in the name of that seller. You're not assuming the loan. You're not qualifying for the loan. You're not even ever talking to the lender. All you're going to do is start making the payments on it. Joe: The deed is in your name because they deeded it to you -- you're going to take a warranty deed, and this puts you in full control of that property. Now, it's still subject to the existing loan, so those payments have to be made, and it's possible that the lender is going to take the property back if you default on it. Joe: Now, there's some other issues in this which need to be addressed I'm not going to get into it because we don't have much time, i.e. due on sale clauses and things like that, bu it's not difficult. We do these types of deals all the time. This is the top of the hierarchy and this is the way that you want to buy properties. Joe: The next type is "Multi-mortgage". This is if a seller has equity. Let's say they have a first mortgage of $100,000 but the property is worth $200,000. They're willing to sell it for $180,000 but they don't want to take an $80,000 loss, so what you do is take over the first mortgage subject to the existing loan ($100,000) and then you give them their equity as a second. So, they deed the property to you and then you borrow that other $80,000 from them in the form of a note and you owe them $80,000 to be paid over a period of time at a certain interest rate.... To read the rest of the transcript and more of Joe Crump's articles, click here: http://joecrumpblog.com/the-difference-between-a-land-contract-and-a-subject-to-deal-2/?utm_source=Youtube&utm_medium=EndLink&utm_campaign=Youtube131022
Views: 10232 Joe Crump
Structuring Deals #2: Multi-Mortgage
 
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http://JoeCrumpBlog.com - Sign up for free real estate investing training with 25 year real estate veteran, Joe Crump. Learn how to build an automated, sustainable, profitable investing business with no down payments and no credit. Discover the most advanced automation software for investors available today at: http://www.PushButtonAutomarketer.com Learn how it will bring you a flood of motivated seller financed leads every single day. Six Month Mentor Program: http://www.ZeroDownInvesting.com We're talking about structuring zero down deals and I'm talking about the zero down structure hierarchy. The second structure in the hierarchy is multi-mortgage. The first one is subject to, the second one is multi-mortgage. Like a subject to a multi-mortgage also gets the deed. So the seller is transferring the deed to the property. But a lot of times on a multi-mortgage it's because there's equity in the property. So let's say you've got a property, it's worth $150K. The guy says, "I'll sell it to you for $140K but I don't want to sell it for $100K, which is, you know, I don't want to do it subject to with $100K because I only owe $100K on it. But I've got that $40K worth of equity that I'd like to get out of it." What you can do is have a second mortgage on that property with you as the person who's borrowing the money and them as the seller. You're making payments to them, over time, on a $40K mortgage that's attached to this property. That way they have the right to take that property back if you default on it. They won't lose their equity. And that's a good way to do this that protects them. But it also obligates you to make these payments. You don't have to have credit to do that, you don't have to show income or any of that stuff to do that. You're just doing the paperwork. But you do have to have the paperwork and they do have recourse against you if you don't make the payments. A lot of times, though, if that situation would arise where you can't make the payments, you could probably give it back to them without too much problem because they can go and find a realtor and sell that property and get their equity back that way. As long as you don't damage them. So that's a multi-mortgage. It's the same as subject to. It's transferring the deed. You're taking a second mortgage on there. That's step two in the hierarchy. And I'm going to explain how the hierarchy works in the video, in a later video. But that's number two. Let's go on the number three and we're going to talk about land contracts and contracts for deed in video number three. I'll see you then. This transcript was truncated. To read the whole transcript and more of Joe Crump's articles, click here: joecrumpblog.com/structuring-deals-2-multi-mortgage/
Views: 6987 Joe Crump
What Happens If The Bank Refuses To Take Your Payment On A "Subject To" Deal?
 
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http://JoeCrumpBlog.com - Sign up for free real estate investing training with 25 year real estate veteran, Joe Crump. Learn how to build an automated, sustainable, profitable investing business with no down payments and no credit. Discover the most advanced automation software for investors available today at: http://www.PushButtonAutomarketer.com Learn how it will bring you a flood of motivated seller financed leads every single day. Six Month Mentor Program: http://www.ZeroDownInvesting.com Read the Transcript: “What happens when this occurs? You acquire a property via a Subject To (taking over the existing loan). You put a tenant buyer into the property. The new tenant buyer signs a tenant application and a lease option with your agreeing to buy the property in one year. But the bank decides they don’t want you to be paying the payments, instead just the original owner. Do you have to kick out the tenant buyer, get back the lease option fee and could this lead to possible legal problems with both the tenant and the buyer and the seller?” – Julie Oden Joe: Well first of all, I’ve never seen that happen. Let me qualify that. I have had the banks ask that the original borrower make the payments. That’s happened a few times. I once had a bank say that they wanted me as the lease option owner, the deed holder of that property who was renting it out to a new tenant – they wanted me to qualify for the loan. Joe: Bank of America did this to me. They called me up and I said to them, ‘I took over this property a couple of years ago and I’ve been making the payments ever since. They’ve been coming from my bank account. I’m going to continue to make those payments as long as I have this property. If I gave it back to the original owner, I know that they can’t make the payments – that’s why I took it over from them. I can make the payments. That’s why I’m doing this way.’ And they said, ‘Well, I understand that but you still have to qualify for that property.’ And I said, ‘Well, that’s now how I work. I don’t do that. I don’t qualify for the property. What I’ll do is make the payments and I’ll maintain the property and take care of it for you and make sure you guys are whole.’ Joe: And they said, ‘No, you can’t do that. If you don’t do this, we’re going to file a notice of default.’ And I said, ‘I understand that, but let me just tell you – as soon as I get the notice of default on this property, that’s the day I quit making the payments, so I want you to understand that before you file that.’ They said, ‘I understand that. We still have to do it.’ Joe: They got off the phone. They called me back 15 minutes later. They said, ‘I just talked to my supervisor and he said please continue to make your payments. We’re not going to file a notice of default.’ I said, ‘That’s great. I’ll continue to do that’. And I still own that property. Joe: So, that’s the closest I ever got to anybody ever trying to exercise their due on sale clause, which is what I think you’re talking about here. But if it did happen – if somebody was in a property and they suddenly said we’re going to foreclose on his property, then you can either help that buyer find another property – it’s going to take months and months for them to take that property back, you can continue to make the payments… Joe: If they refuse to take the payments and you’re not able to get the original owner to make the payments for you or have them write a check or whatever to figure out a way to do it for you – because you can do it as a property management company (you can do it a lot of different ways) but if you couldn’t solve that problem, just get your buyer and put them into another property. You can always find them something else, and just help them understand what’s going on and keep them abreast of the process so that there’s not a big issue. Joe: I’ve never seen anybody get into legal trouble because of a situation like this. The reason people get into legal trouble is because they don’t pay attention, they don’t solve the problem when it happens and they get angry with people or piss people off, so if you can avoid those things, most of the time – 90% of the time you can avoid a lawsuit. 10% of the time, you’re going to get into a lawsuit no matter what you do, and then you have to deal with it and you have to deal with an attorney and all of those things... To read the rest of this transcript and more of Joe Crump's articles, click here: http://joecrumpblog.com/what-happens-if-the-bank-refuses-to-take-your-payment-on-a-subject-to-deal/?utm_source=Youtube&utm_medium=EndLink&utm_campaign=Youtube
Views: 6744 Joe Crump
Every Contract, Script And Form You Need To Invest In Real Estate - Real Estate Investing
 
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http://PushButtonAutomarketer.com Automation software for real estate investors that will bring you a steady stream of motivated sellers who say *yes* to no money down, seller financed deals. All the leads and all the training you will need to make it work is included. Six Month Mentor Program http://www.ZeroDownInvesting.com Read Joe Crump's Blog: http://JoeCrumpBlog.com/ Joe Crump's website: http://JoeCrump.com Read the Transcript: All of the purchase contracts, phone scripts and tenant forms you need to get started doing deals are here for you to download for no additional charge. Joe: We've spent years refining and tweaking these contracts and forms. We've found the problems through our years of experience and have made sure that we've included all the verbiage that you need to keep you legal and safe from lawsuits. You can put deals together all day long but if you don't do the paperwork right, you risk it all. Believe me, I've seen it happen. Joe: Voice scripts are the best way to learn to make offers. I provide simple yet complete voice scripts that I've given to hundreds of our students at seminars. With these scripts, I've watched our students speak to live sellers and put deals together on *their first day*. We also give you tenant forms so that you can find the right lease option tenants for your properties. This simple system asks the right questions, and makes sure that the people you sell to have the best chance of success as lease option homeowners. Joe: Let me show some of the forms. First, there's the for rent script. Everything you need to know is here. If they say this, you say that. If they say yes, you respond this way. If they say no, you ask this question -- it's all here in this script. Joe: Next, there's the lease option agreement memo. This is the one page memo. We also have this online for you. You also may need it to fax to them, so here's a document that you can use. Joe: There's also the addendum to the first right of purchase. This is the assignment form that you need to use in order to assign your right to buy this property to someone else and collect an assignment fee. Joe: And here's the lease option form itself in all of its glory. This is one of the best lease option forms that I've ever seen, mainly because I've created it and we went through and made changes over more than a decade to make sure that everything is here. Joe: And finally, there's the tenant application, which you're going to have your tenant fill out and give you all of the information that a seller would need in order to make sure that they're protected. You want to take care of the people that you work with. Joe: Having the right contracts and forms will mean the difference between doing a deal legally and breaking the law. It'll mean the difference between a happy client and a lawsuit. Make sure you have the right materials when you get started. Do this work legally and honorably. To read the rest of the transcript and more of Joe Crump's articles, click here: http://joecrumpblog.com/every-contract-script-and-form-you-need-to-invest-in-real-estate/?utm_source=Youtube&utm_medium=EndLink&utm_campaign=Youtube
Views: 7085 Joe Crump
Structuring Deals #3: Land Contracts & Contract For Deed
 
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http://JoeCrumpBlog.com - Sign up for free real estate investing training with 25 year real estate veteran, Joe Crump. Learn how to build an automated, sustainable, profitable investing business with no down payments and no credit. Discover the most advanced automation software for investors available today at: http://www.PushButtonAutomarketer.com Learn how it will bring you a flood of motivated seller financed leads every single day. Six Month Mentor Program: http://www.ZeroDownInvesting.com Hey, it's Joe. This is video No. 3 of the zero down structure hierarchy and in this one we're going to talk about land contracts, or contracts for deed. It's called the land contract if you're in a mortgage state. It's called a contract for deed if you're in a trust deed state. Either way, they're pretty much the same type of document and you probably want to have an attorney that's local to you draw up this document because it has to be recorded, or it can be recorded, and you want to make sure that it's done properly for your particular state. And that shouldn't cost you more than $200 or $300 to have an attorney draw that up for you. But, basically, it's the same as if you were buying a car using the bank, a loan from the bank. When you get a car the bank holds the title to the car and then they have a document with you that says you're going to pay X amount of dollars over X amount of time at a particular interest rate and then when it's paid off, then the bank is going to transfer that deed to you and you'll have the deed, or the title, I'm sorry, of the car to you. That's the same thing that's going to happen in land contract or contract for deed. The person who's selling it to you is going to hold the deed to the property. You're going to make payments to them based on whatever you agree upon. And once those payments are paid off, then they're going to transfer the deed. What I like to do is have that deed held in escrow somewhere so that I don't have to track them down when that payment, when I make that last payment. But I don't usually buy properties on land contract. It's not a bad way to buy, it still gives you pretty good control. But it doesn't give you the deed and you still need that person who's on the deed to sign the final deed. That's why we try to put those things in escrow. Now, if you're selling a property on land contract, you don't necessarily want to put it in escrow. You want to hold onto control. It's, also if you're selling on escrow, or, I'm sorry, if you're selling on land contract you don't want to record your land contract. If you're buying on land contract, you do want to record the land contract because it solidifies your position. If you do want to buy on land contract, make sure that you record the land contract. If you're selling on land contract, don't record it if you can avoid it and just hold onto it. So if they default, you can just ask them to leave and usually they'll leave and you can tear up the land contract and it'll be, everything will be said and done. If you have to, if it's recorded, you have to get it removed from the County Recorder and you have to have a document signed to do that. So, if you're in a dispute with somebody who you're moving out, that's sometimes difficult to get taken care of. So don't put yourself in that position. Anyway, that's what a land contract is and I'm going to explain how that fits into the zero down hierarchy in a future video. All right. Let's go on to the next structure, which is lease option. And I'm going to do that in the next video. Thanks, now. To read the whole transcript and more of Joe Crump's articles, click here: http://joecrumpblog.com/structuring-deals-3-land-contracts-contract-for-deed/
Views: 7248 Joe Crump
When To Use Land Contracts To Make The Deal Safer And More Profitable - Real Estate Investing
 
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http://www.JoeCrump.com/youtube These videos are teaching real estate investing principals that I have never given away like this before. If you aren't watching this series, you are missing out on some very valuable info. I'm also giving it to you in bite sized pieces to make it easier to understand and absorb. Land Contracts (or Contract For Deed if you are in a Trust Deed State) are the way real estate has been transferred in this country since "Little House On The Praire" days. This video will show you what it is, when to use it and why. Read Joe Crumps Blog: http://JoeCrumpBlog.com/ Read the Transcription: Joe: The third one is a land contract or a contract for deed, depending on which state you're in. A land contract is simply an agreement to buy a property at a particular price with a particular interest rate with a particular payment plan over a particular period of years. It's very much the same way that you buy a car -- when you buy a car, you go out and get a loan from a standard lender, they take the title to the car, they hold onto that title and they have an agreement with you to make payments to them to pay off the loan, and as soon as you pay off the loan then they transfer that title to you and then you have that car free and clear. It's the same with the land contract. The seller, the person who's selling it to you, keeps the deed in their name, but they have another agreement with you, which is recordable -- you can take it down to the county recorder and record it -- saying that you're going to buy it over a certain period of time for a certain price and if you fulfill the terms of the agreement, then they're going to deed you that property after its done. So that's another way to buy a property. Joe: They can have underlying mortgages on it. You never want to buy one that has mortgages on it that are more than the land contract. And with all land contracts, it should be standard that they can never finance it above what is still owed or remaining on the land contract, so that you remain safe as the buyer in that transaction. Joe: So when you start getting to this, this is the middle of the transaction, and now it becomes almost as safe for the sellers as it is for the buyer. If you default on this deal, if you're the seller of the transaction, you sold it on a land contract and that buyer recorded that land contract at the county recorder, then you're going to have to go through a judicial foreclosure to get that property back. It's not a problem and in a lot of places it's easier than going through a foreclosure on a mortgage, so it still makes sense for the seller. Joe: But, if you're the seller in the transaction, what you want to do is try not to have that land contract recorded, because a lot of times where we've had people who defaulted on land contracts that we've sold to them, it's been easy to agree with them, tear up the land contract and say, 'That's enough. We're going to put somebody else in that property. We're going to sell it to somebody else. We're going to put a tenant in there. We're going to sell it on a lease option; we're going to sell it outright,' or whatever it is we choose to do, and we can get that property back without going through a foreclosure process, and usually that buyer will allow us to do that without any argument. But if they record it, then you have to get it off the title, so it becomes more complex. So, if you're buying the property on land contract, make sure that land contract is recorded. If you're selling on a land contract, try not to have that land contract recorded. Joe: What we try to do is keep control over that land contract and put it in our files so that nobody takes it down to the recorder and records it. If the buyer really wants it recorded, then we can talk about it and we can do that if they really need that to be done. Joe: So, we've got subject-to, we've got multi-mortgage, we've got land contract -- those are the top three if you're buying a property in the hierarchy of zero down structures. And they give you control of that property in relation to where they are at in the hierarchy; the higher they are in the hierarchy, the more control the seller has in the transaction. http://joecrumpblog.com/when-to-use-land-contracts-to-make-the-deal-safer-and-more-profitable-video-4/?utm_source=Youtube&utm_medium=EndLink&utm_campaign=Youtube130822
Views: 11118 Joe Crump
What Forms Do I Need To Use With The "For Rent Method?"
 
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http://JoeCrumpBlog.com - Sign up for free real estate investing training with 25 year real estate veteran, Joe Crump. Learn how to build an automated, sustainable, profitable investing business with no down payments and no credit. Discover the most advanced automation software for investors available today at: http://www.PushButtonAutomarketer.com Learn how it will bring you a flood of motivated seller financed leads every single day. Six Month Mentor Program: http://www.ZeroDownInvesting.com Read the Transcript: “My question is about the paperwork. I’m confused as to what paper is between the seller and the buyer using the ‘For Rent Method’. I know that the lease option memo is between me and the seller and the lease agreement is between the seller and the new buyer but I don’t know about the purchase agreement and the option to purchase. Who are these papers between?” – Trina George, Atlanta, Georgia Joe: Here’s how we set up. First we have the lease option memo. This is a one page document between you the investor and the seller. What it does is it gives you a principle position in the contract. It allows you to buy that property on a lease option and assign your right to buy to a new buyer; it even states that on the agreement. Once you have that control, then you go out and find a new buyer. Joe: Let’s say that that seller wants $150,000 for his property. You’re going to go out there and put it on the market on Craigslist and a sign in the yard for $160,000 or $155,000 and you’re going to try to get a lease option fee. Let’s say you put it up for $155,000 and the new buyer comes in. They ask you how much you need for a down payment. You say $5,000 and they give you $5,000 which applies to their $155,000 purchase price, so now they still owe $150,000 to the original seller. Joe: You’re going to have signed two documents. One is the resident documents, which I created, and basically that’s a lease and an option – it’s a lease on the purchase. It’s usually a three year lease and you can change that for different reasons, plus there’s an option to buy at a specific price within a specific period of time. That’s signed between the seller and the new buyer – you don’t sign the resident documents. What you’re going to sign is an addendum to the resident documents, and what an addendum is is an assignment form – assigning your right to buy to the new buyer. Joe: So the only thing that you’re signing is the lease option memo to give you control and then the assignment form to assign your control to the new buyer, then the new buyer and the new seller are going to sign a separate document between themselves so that you’re out of the deal; you’re no longer in that contract. Joe: Now, if you need these contracts, all of my programs have these contracts in them, even in my book on Amazon: “Automated Real Estate Investing” – if you get that book, you can find that there’s a link where you can opt in and it’ll send you a copy of those documents, or you can get into my mentor program or the “Push Button Automarketer” or the “Push Button Method”. Any of my programs have these documents because we use them on almost every deal that we do. Joe: So get in one of those programs. Even if it only costs you $3 to get the book on Amazon, it’s worth it so that you have the documents and you can take a look at them. But Trina, I think you already got in my program, so all you have to do is download it. If you’ve got the Automarketer, just download it from the contracts page from the Automarketer and then read through it and make sure you understand how it works. You need to be able to define that for the person who you’re working with as the seller and the buyer. Alright, I hope that helps. To read this transcript and more of Joe Crump's articles, click here: http://joecrumpblog.com/what-forms-do-i-need-to-use-with-the-for-rent-method/?utm_source=Youtube&utm_medium=EndLink&utm_campaign=Youtube
Views: 5658 Joe Crump
How Do You Find A Seller Who Is Willing To Sell With Zero Down Payment
 
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http://JoeCrumpBlog.com - Sign up for free real estate investing training with 25 year real estate veteran, Joe Crump. Learn how to build an automated, sustainable, profitable investing business with no down payments and no credit. Discover the most advanced automation software for investors available today at: http://www.PushButtonAutomarketer.com Learn how it will bring you a flood of motivated seller financed leads every single day. Six Month Mentor Program: http://www.ZeroDownInvesting.com Read the Transcript: "Joe, how do you find a seller who's willing to sell with zero down?" -- Jim Delaney, Memphis, Tennessee Joe: That's a basic, upfront question that I think a lot of you have come to my site to find out. To get right down to the basics, there's a thing called seller financing which is where the seller holds the mortgage in the property. The seller may already have an existing mortgage on the property and you can pay them and they can pay the mortgage, or if they have no equity in the property, you can pay them directly on what's called a land contract. Joe: There are different zero down structures that you can use, and there's a whole hierarchy I created to help you understand which one to use in any particular situation. It takes me a few hours to explain the whole hierarchy but I'm going to go through it quickly so that you can Google a few of these terms and get a feeling for how this process works and for why I put them in this hierarchy. Joe: The hierarchy starts at the top and this is with you as the buyer. It's going to be exactly opposite if you are the seller, but if you're the buyer, the best way to buy the property is subject to the existing loan, which means they deed the property to you and you make payments on the property. You have complete control of that property because you have the deed to it. Joe: The second in the hierarchy is "Multi-mortgage". It's also when they're deeding the property to you, but this time they have equity in the property and you put a second mortgage on it so that you can still give them their equity for the property and then sell it on terms. Joe: The third is land contract. They do not deed it to you, so it puts you in a little weaker position, but it still gives you ownership rights. You can record that land contract and turn around and sell that property with a real estate agent or refinance it after a year or so. That's the third method in the hierarchy. Joe: The fourth method is a lease with an option to buy. This puts the buyer in the weakest position but it's still a way to buy with zero down. Typically, what we're going to do if we're selling the property, is sell it on a lease option and buy it on a "Subject-to". We want to buy in the strongest position and sell it in the weakest position. Joe: The reason we do that is because we have to assume that we are the most honorable and ethical person in the transaction and we know that we're going to do the right thing, so we put ourselves in control of the transaction to make sure that the right thing is done. Joe: That's why you need to understand this hierarchy -- so that at any point, you can always make an offer on someone's property which will be profitable to you. Joe: You're always going to buy these with zero down. Don't put any money down on these properties. There's no reason to do that -- there's too many of them available out there that you can get for zero down if you understand the marketing and how to get people to come to you to sell their properties. Joe: That's one of the things that we do in the "Automarketer". That's what I teach in my mentor program and all of my training programs. Joe: I also do something else called passive investing. But that's a different animal altogether. That's where your money is working for you. This is ACTIVE investing, which is where you're going out there and buying properties with no money down and without using your credit and sometimes selling them and sometimes holding them and keeping them in your portfolio or your IRA. You can actually do that with seller financed deals because if you do it with "Subject-to", they're non-recourse loans. Joe: There's some really nice ways to do this that you can fill out your portfolio with and actually give you a sustainable long term ethical business that serves the people that you're buying from and selling to. That's the goal for me in my business in addition to making a lot of money and not working a lot of hours, and, doing that with automation and outsourcing. I hope that answers the question. Thanks. To read this transcript and more of Joe Crump's articles, click here: http://joecrumpblog.com/how-do-you-find-a-seller-who-is-willing-to-sell-with-zero-down-payment/?utm_source=Youtube&utm_medium=EndLink&utm_campaign=Youtube
Views: 10335 Joe Crump
What Happens If The Lease Option Seller Stops Making Their Mortgage Payments?
 
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http://JoeCrumpBlog.com - Sign up for free real estate investing training with 25 year real estate veteran, Joe Crump. Learn how to build an automated, sustainable, profitable investing business with no down payments and no credit. Discover the most advanced automation software for investors available today at: http://www.PushButtonAutomarketer.com Learn how it will bring you a flood of motivated seller financed leads every single day. Six Month Mentor Program: http://www.ZeroDownInvesting.com Read the Transcript: "I helped a family set up a lease to own. We found a buyer and made $4,000 within two months. The buyer then did not make the payments on the property. What is the best advice or action to take to assist this homeowner, the lease option buyer?" -- Tammy Green Joe: First of all, if you ever have the feeling going into the deal that your seller is unstable, that they might be filing bankruptcy or that they cant make the payments or that there's going to be a big problem (which is only a small percentage of most of the sellers that we deal with -- most of them can make their payments and the reason they're doing lease options is because they don't want to go into bankruptcy and don't want to damage their credit or go into foreclosure, so that going to be fairly rare) -- if you find somebody that you think is unstable, you can set up an escrow payment to have the monthly payment go through a title company for a small monthly fee and have it administrated by that attorney at the title company. Joe: Or, you can give access to the online loan account of the buyer so they can see that the payment is being made every month, and if they see one month that its not being made, they can switch things out -- you can even change the verbiage in the contract to make it possible for that buyer to pay the mortgage amount directly to the bank. Joe: So let's say you have a lease option fee of $1,000 a month and $750 of that has to be paid toward the mortgage every month. We could have the buyer set it up so that he pays $750 directly to the bank and the other $250 directly to the seller, so your responsibility through this process is to pay attention to this situation and make sure that people aren't going to do this to the buyer you're dealing with; you want to make sure that your sellers are stable. Joe: The person who is most at risk in the transaction most of the time is the seller, and that's why you make the seller responsible for making the payments to the mortgage; they're going to be more responsible to do that. And it's also easier to get rid of a lease option buyer than it is to deal with a situation like this. Joe: If you're in a situation like this where you didn't foresee any of this stuff and suddenly it starts to happen and the seller's not making their payments and you manage to catch it in time, then it's possible for that buyer to start making the payments directly to the bank, so there's no foreclosure. They may be late every month, but they can make that portion of the payment directly to the bank and pay the balance of it to the seller. Joe: They can also bring it current when the property is purchased, because there's probably a spread between the mortgage amount and the sale price, so if they do exercise the option, they'll still be okay. Joe: If six months go by and suddenly they're getting a notice of default in the mail and they're looking at it and saying, 'Okay, this is bad and we need to get out of this property,' a lot of times that buyer will want to leave that property and then you can help them find another property and give them a discount on the lease option fee. Don't do it for free, but give them a discount on the lease option fee. Maybe you can go talk to the seller and say, 'Hey, what's going on here? Is there some way we can solve this problem?' and there might be a way to solve the problem. Joe: Just try to keep open communication between everybody. Make sure that the buyer and the seller know that this is not your problem. Don't get angry with people -- just try to solve their problem and see what you can do to smooth out the process. .... To read this transcript and more of Joe Crump's articles, click here: http://joecrumpblog.com/what-happens-if-the-lease-option-seller-stops-making-their-mortgage-payments/
Views: 6982 Joe Crump
Here Is What Works: Buying "Subject To" Deals - Real Estate Investing
 
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http://www.JoeCrump.com/youtube "Subject To" deals are the perfect zero down structure. Here is how to buy with no money and no credit, create monthly cashflow, chunks of income when you buy, wonderful tax deductions, build a huge portfolio in a very short period of time using my Push Button Method automation techniques and be in control of the property because your company is on the deed. This is the core of what I teach and a great way to build a business. PS -- If you make comments and ask questions on the post, I will answer them. By the way, there are some good reasons to make COMMENTS and ask questions about my blog postings. First of all, I want to hear them and am willing to personally answer questions. Second, they help me get better search engine positioning. BUT... third, and most important to you, if you have a website, you can put the web address in the comment and it will provide a link back to your site. Search engines see this and will rank your site higher. So it benefits us both. Make sure the comment or question is relevant and not an ad for your site. Six Month Mentor Program http://www.ZeroDownInvesting.com Read Joe Crump's Blog: http://JoeCrumpBlog.com/ “Push Button Automarketer”: http://PushButtonAutomarketer.com Read the Transcript: The most powerful technique in the zero down heierarchy of deals is Subject To deals. Let me explain what they are and show you how to do them and build a portfolio of properties that'll serve you for the rest of your life. Joe: I have another deal I think makes sense and I’m going to show you how these types of deals make sense. I teach zero down structures. I’ve been teaching you about them in these videos. I teach them in my program, PushButtonMethod.com. ZeroDownInvesting.com is my mentor program. Go look at both of those. There’s lots of free information just on those sites about how we do some of this stuff and also how you can get involved in those programs if you want to pay for them. I’ll be happy to teach you. Joe: But, let’s talk about specific Subject-To deals so that you can see the structure and how it works. I’m going to show you one of the types of deals that I do in my Millionaire Matrix so that you can see how this process works and how cool it is – where you don’t have any money or any credit in it and it makes you money for the rest of your life. These are cool deals and they’re pretty easy to put together if you use the Push Button system that I’ve got which automates the whole process of bringing your buyers and your sellers to you; I love it. It’s how I built my rather substantial portfolio doing it. Joe: Now, this Subject-To house is currently in my inventory. I haven’t even advertised it for sale. I keep it as part of my portfolio. I’m holding onto it as a long term strategy, but I am willing to sell it as well. So I’ll show you what I do with some of these properties. Joe: The beauty of it is it’s so easy to find these properties. There’s so many of them available out there that it’s not difficult to sell them. So if you ever want to buy this way and don’t want to do the work to find the properties, then give me a call and I’ll put one together for you. It’s going to be an unusual type of investment and you’re not going to get your head around it at the beginning because at first glance, it’s going to seem like a crazy idea, especially when you look at these numbers that I’m going to show you here. Joe: Let’s go into this one specifically. You can take over this property. I find a homeowner that says I can’t afford to make the payments any more. I want to move. I’m current on my payments. I’ll make your next payment for you and then I’ll deed you the property. So they deed me the property and I take it over. Joe: By the way, if you want to learn how to do Subject-To deals, I teach it in my mentor program at ZeroDownInvesting.com and you can learn about that, or you can learn it in my push button method – PushButtonMethod.com. We actually have some automated systems to bring folks in who do this, a complete FSBO Subject-To system that automates the entire thing so that all you have to do is pick up the phone when the seller’s ready to go and then you sell it to them. They don’t flood in with that method but they come in enough to get one or two of them a month and get the process going. But you have to be careful with negative cash flow. And I’m going to talk about that right now. Joe: Here’s the numbers on this particular property. This was a brand new property when I got it. You can see the dumpster was .... To read the rest of this transcript and more of Joe Crump's articles, click here: http://joecrumpblog.com/here-is-what-works-buying-subject-to-deals-video-20/?utm_source=Youtube&utm_medium=EndLink&utm_campaign=Youtube130812
Views: 56072 Joe Crump
Sellers Laugh At Me When I Make Zero Down Offers - Real Estate Investing
 
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http://www.JoeCrump.com/youtube Building credibility for yourself as an investor when you are just getting started can be a challenge. Here are some techniques and tools I give to my students to help them over this hump. Six Month Mentor Program http://www.ZeroDownInvesting.com Read Joe Crump's Blog: http://JoeCrumpBlog.com/ "Push Button Automarketer": http://PushButtonAutomarketer.com Read the Transcript: When you first start making offers on properties, some sellers may laugh at you. I'll teach you how to make offers to sellers and become a natural at it. Let me tell you about some of what I teach to make that happen. "Sellers laugh at me. When I call sellers, they can tell I'm a complete newbie and it feels like they're laughing at me. How do I get them to accept my zero down offers and not be so humiliated by the situation?" Joe: Well, at the beginning, they're going to laugh at you. Let's face it. You're not going to be professional; you're not going to know what you're talking about. But you don't need to know a lot. You just need to know one basic technique. I teach the "For Rent Method" to everybody who gets into my Mentor Program and gets the Push Button Method BECAUSE I think that if you just focus on one thing -- you don't have to know every different technique that I teach or all of the zero down structures that I teach -- those things are helpful and will give you even more credibility, but if you just learn to talk to people... It won't take long. Joe: When I do my buying events, I have my mentor students come to the buying event and I teach them in the morning how to make these offers. We do some role playing up in front and I get them role playing with each other and I walk around the room and listen to them and give them suggestions, on say this or say that or try this or try that or take this attitude -- giving them some good sales training to understand how to do this stuff, and how to talk to people persuasively and be able to get across the idea that you're credible and that you know what you're talking about, even though you just have an inkling of what you're talking about. Joe: But once you understand the basic concept, that's all you really need to know and maybe a few answers to common questions that are going to be given over and over again. Once we do that, by the time lunch comes around, when we get back from lunch, we're making calls and we're talking to live sellers on the phone -- everybody is talking to a live seller on the phone and making offers. And we're talking to for sale by owners which are common in every town, so there's a lot of people to talk to. Joe: And, when they do that, we find that one in three people that they ask the question, 'Would you consider selling your home rent to buy rather than just renting it?' -- One in three will say yes. And then it's just a matter of showing them why it makes sense to do that once they say yes. It's not a difficult thing. But, it does have a learning curve. It does take a little bit of time to learn how to do it. Once you learn how to do it, that's the simple part. But, yes, there is a learning curve and it takes a little bit of time. Joe: After you've talked to 20 people, you're usually pretty good. After you've talked to 100, you're really good. After you've talked to 300, you're a master and you can do it any time, and that's when your automated marketing becomes the most effective because then, everybody that is contacting you can be converted. I have students that convert 70-90% of the people that they talk to because they're good and because they know how to talk to people. They give those folks confidence and they exude credibility and show people how they can solve their problem. They know that that investor is looking out for their best interest, and that makes all the difference.... To read the rest of the transcript and more of Joe Crump's articles, click here: http://joecrumpblog.com/sellers-laugh-at-me-when-i-make-zero-down-offers/?utm_source=Youtube&utm_medium=EndLink&utm_campaign=Youtube130827
Views: 7528 Joe Crump
Sell A Lease Option For Quick Cash Without A License
 
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http://JoeCrumpBlog.com - Sign up for free real estate investing training with 25 year real estate veteran, Joe Crump. Learn how to build an automated, sustainable, profitable investing business with no down payments and no credit. Discover the most advanced automation software for investors available today at: http://www.PushButtonAutomarketer.com Learn how it will bring you a flood of motivated seller financed leads every single day. Six Month Mentor Program: http://www.ZeroDownInvesting.com Read the Transcript: Welcome to my new question and answer video series. Over the next few weeks, I'm going to be sending out some videos answering questions you guys have sent to me to help you move forward in your real estate investing process. This first question is from Julie Otten who is an American living in Norway doing business here in the United States. "I have a signed lease option agreement with the seller. I intended to find a lease option buyer but I may have a cash buyer. How do I get paid legally? For example, the seller wants $145,000. I had the sale price listed as $149,000 so that I could take my lease option fee off the top and get the seller $145,000. Do I ask the cash buyer to first write me a check for $4,000 and then a separate check to the seller? How does this fit in with closing the property? I have no agreement signed that states that I'll take the fee or find a cash buyer, only a lease option fee memo that I signed with the buyer." -- Julie Otten, Norway Joe: The way you describe it is almost exactly the way you need to do it. It's just a matter of how you set up the paperwork. You have a principle interest in the property because you have a lease option memo, so now you have to go back to the seller and say, 'Look, I've got somebody who might buy it for cash. What we're going to do instead is set it up as a cash purchase to this person.' Joe: Then, you take the new purchase agreement for $145,000 between the seller and the new buyer and close that with a title company with that person. They may need to get a new loan. Most of the time in these situations, the buyer is going to need to get a new loan. Joe: Then, you're going to have a separate assignment form between you and the seller for $4,000 and they're going to pay you $4,000 outside of escrow or at closing, so it can sit in an escrow and then be released to you when it closes if they feel more comfortable doing that, depending on the seller. Alright, I hope that answers the question. Good luck with it. To read this transcript and more of Joe Crump's articles, click here: http://joecrumpblog.com/sell-a-lease-option-for-quick-cash-without-a-license/?utm_source=Youtube&utm_medium=EndLink&utm_campaign=Youtube
Views: 3829 Joe Crump
What's The Fastest Way To Make Money In Real Estate?
 
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http://JoeCrumpBlog.com - Sign up for free real estate investing training with 25 year real estate veteran, Joe Crump. Learn how to build an automated, sustainable, profitable investing business with no down payments and no credit. Discover the most advanced automation software for investors available today at: http://www.PushButtonAutomarketer.com Learn how it will bring you a flood of motivated seller financed leads every single day. Six Month Mentor Program: http://www.ZeroDownInvesting.com Read Transcript: Hey, it's Joe Crump and welcome to my new series of video blogs on real estate investing. I'm taking a bunch of questions that I sent out an email to my list and I said, "Send me your questions," and I've got a ton of questions that came in. I'm going to try to answer as many of them as I can. Some of them I consolidated into one questions, so if I don't get to yours, I apologize. I tried to pick the one that I felt were most pertinent in the situation. So, let's get started. The first one is from Yvette Simmons. Yvette says, "What's the fastest way to make money in real estate?" Well, I think that's the question that most people have when they first get into this program. And it depends a little bit on whether you have money to invest or whether you don't have money to invest. If you have money to invest and you have knowledge on how to invest it, and you're competent at it, then investing money, you can go out and buy a house and turn around and flip and have somebody do the rehab for you and you have a team that does that work for you, and you can make some money on that in pretty short order, within three or four months you've got money in your pocket. But if you're looking for a way to make money in weeks, and you have the knowledge, then using something like the For Rent method, which is one of the main things that I teach my mentor students, is a great way to do it. It doesn't require cash. Doesn't require credit. But the problem with doing any type of real estate investing is the learning curve. You've got to learn and know what you're doing. They say you need money to make money, but I say if you can't make money with no money, you probably can't make money with money. So if you have money to invest and you invest it without the knowledge, then it's a very good chance that you'll screw it up and you'll either lose money, or you won't make much money, or you'll put a lot of work into it and have a lot of headache into it without being successful. So if you go through these processes the way I teach my mentor students, which is to learn how to do it without cash, without credit, without even really having to go to the house, but actually just trading your right to buy it. If you'll do it that way, then you can learn all the ins and outs of putting a deal together, of working with sellers and working with buyers and learn how to do it and make it happen very quickly. And before long, once you learn how to do this, then you can put together money in a week, in two weeks and it doesn't take long to do. One of the biggest problems that I see is that people get discouraged and give up way before they learn how to do this business. And that's a shame, because sometimes they get very close to being able to being able to be successful with it, but then they decide, "Oh, this is too much," or, "I don't like this," or, "This isn't any fun. I don't want to talk to people." And they forget that eventually, if you'll just put yourself through that pain at the beginning, that eventually you won't have to talk to very many people at all. To read the whole transcript and more of Joe Crump's articles, click here: http://joecrumpblog.com/whats-the-fastest-way-to-make-money-in-real-estate/
Views: 7974 Joe Crump
How I Buy Junk Houses For 12 Cents On The Dollar And Sell Them For Full Price Without Doing Repairs
 
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http://www.JoeCrump.com/youtube Real estate investment expert Joe Crump teaches zero down investing techniques. Learn foreclosures, short sales, "Subject To", land contracts, "Multi-mortgage" and other creative real estate financing structures. Six Month Mentor Program http://www.ZeroDownInvesting.com Read Joe Crump's Blog: http://JoeCrumpBlog.com/ Joe Crump's website: http://JoeCrump.com Read the Transcript: One man's junk is another's treasure, but only if you do it this way. Let me tell you how I bought properties in horrible condition, fixed them up and then rented them out or sold them for a heck of a return and how you can, too. "Dear Joe, not too long ago you sent an email out, selling junk houses in depressed areas for $4,000 to $5,000 apiece. The areas are horrible. The pictures of the houses are frightening and I can't figure out how they would make sense for me to buy. Can you tell me how I'm supposed to make money on these kinds of houses? I sure don't want to work in these areas or even go to them, for that matter. Does this kind of deal make sense?" -- Ben Asad, Atlanta, Georgia. Joe: Not too long ago, I sent out these emails, selling these properties. I had some properties that were $4,000 or $5,000 apiece. They were in Detroit, Michigan. They were in Cleveland, Ohio in pretty tough areas. I also had pictures of these properties that I put up on the website and they were in terrible condition. These houses had been completely gutted. They have no furnace, most of them anyway. They had no furnace, no water heater, no plumbing, all the copper has been ripped out of the house, etc. Some of them didn't have windows in them. They were absolute messes. Joe: I got them cheaply. My goal was to sell them for 5 grand and just make $1,000 or so on each deal and get them to an investor and let them take it to the next step. I gave them some ideas on some exit strategies on things they could do to sell them, but to my surprise (maybe I shouldn't have been surprised) nobody took me up on the offer. I had one guy who was interested in the deal but then he backed out on the deal once he went over to the property and took a look at it, even though the pictures were there. The pictures were bad, too. Joe: Anyway, I didn't sell the properties. I have 60,000 investors on my list and nobody wants this. There's a reason. Either it's not a good deal like I thought it was (because I think they're good deals) or people didn't understand what they could do with them, and they're afraid of the area, they're nervous about the process and they don't want to sell it. I knew that there's plenty of people on my list that have $5,000 they could easily come up with if they thought it was going to make them money. Joe: So what I decided to do instead is to sell them myself. I had somebody go out there (because this is Detroit and I'm in Indianapolis) drive round to the houses, put lockboxes on all of the houses that actually had doors, and they also nailed a sign (and I don't usually nail signs to my houses but I wanted them to stay up) Coroplast signs on there that said, '$1,000 down, $250 a month' and my phone number and my website. I would put it on all of these houses. Joe: I bought a whole bunch of these houses. I bought them in bulk from an REO thing, so I had a bunch of them that I just paid cash for, which is not something that I normally do, but eventually you're going to make enough money to where you're going to have cash and you're going to want to do something with that cash, and you don't want to put it into the stock market because you're just going to lose money there. You want to put it into real estate because if you learn this business, that's what you know -- you have control over your money and your business and you'll make a lot more money that way. Anyway, I bought these properties and I couldn't sell them to my list after just one email. I suppose if I had changed things around, I might have convinced people to do it. Joe: But then I had these signs put up for me and suddenly the phones just starts ringing and ringing and it won't stop and I'm going, 'Oh, my. This is going to take a lot longer than I thought it was going to,' and we immediately started selling these properties. The way I structured it was that I sold them for $20,000 a piece with $1,000 down, $250 a month, which is about 8% interest over a 10 year period amortized. So, they pay for 10 years, $250 a month plus the $1,000 up front to buy this property from me on a land contract. They're responsible for the taxes and taking care of the different properties. ...
Views: 24392 Joe Crump
How Can I Help Sellers Who Are Late On Payments or Upside-down? - Real Estate Investing
 
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http://www.JoeCrump.com/youtube There are a lot of people these days who are late on their payments and have no equity in their home or are upside-down on their mortgage. Here is how you handle those situations. Six Month Mentor Program http://www.ZeroDownInvesting.com Read Joe Crump's Blog: http://JoeCrumpBlog.com/ Joe Crump's website: http://JoeCrump.com Read the Transcript: You can help people who are late on their payments and still make money on the deal for yourself. It's been working for us for many years. Here's how. "There are two scenarios that I've come across when talking to sellers. Number 1: What happens if someone is behind in their mortgage payments? Is there a way to help them by selling the home rent to buy with the tenant?" -- Kim, Los Angeles Joe: She's talking about the "For Rent Method" where we use the lease option memo and we tie up the property to buy it with a rent to buy that's assignable that we then assign to a new buyer and take the lease option fee, the first month rent goes to the seller, we're in and out of the deal, we make a chunk of money, then we're done. That's what she's talking about here. Joe: But, she's talking about somebody who's behind on their payments. You don't want to do this with a buyer if that person is behind on their payments. So, they need to get current on their payments. There is a possibility that you could come up with their late payments out of your lease option fee but that'll dramatically reduce the amount of money that you can get to do that deal. I don't usually do deals like that, but you can look at that and decide for yourself. Joe: You can also have the seller talk to their mortgage company and see if they can get a loan modification, which is becoming more and more difficult these days for them to do, but it might be possible for them to bring it current and then make the payments over time. That way, you'll protect your buyer in the transaction and the seller will be back on track and get their credit straightened out over time. It's a real benefit if they can pull that off. But, if they can't, I wouldn't spend a lot of time with a deal like this unless you can get it substantially under market value. Joe: Remember, there are only two ways that you can make money in real estate as in investor: one is that you buy properties substantially under market value for cash, and two is that you buy properties that are closer to market value on terms or even above market value in some cases. If you can buy it on terms, then that means you can sell it on terms. If you buy it for cash, you can even do an assignment for cash if you can get it low enough in price. Joe: But remember, the person you sell it to has to come up with cash, and that makes it more difficult for them. It means you have fewer people that'll buy that property. So you want to focus on properties that you can sell on terms most of the time because it'll make it easier for you to sell. We know this about a property on a lease option that's properly priced, not just the purchase price but the actual monthly payment, which is much more important than the purchase price. Joe: The purchase price can be high, but the monthly payment has to be in line with the market rent for that property. If you're over that, it's not going to sell. But if you're in line with that, and you use the techniques that I teach to sell, using Craig's List, signs in the yard and those types of things, to get it sold, that property will sell in 30 days or less, and usually in just a couple of weeks. If the monthly payment is high, it will not sell at all and you'll have to get your seller to get their monthly payment down because they'll be competing with other properties. "If someone is upside down with their property value by $150,000 -- Let's say the seller wants $500,000 but the current market value is $350,000. In one of your CD's you say that you can give the seller the sale price of the property they want of $150,000 more than market value today, if they agree to a longer term on the lease option like 5 years. My question is, how do you know how much above the market you can go with the sale price, and how much longer do you need to extend the term by? Is this something that one becomes more comfortable structuring the longer you're doing deals? Right now it seems so arbitrary. Or does the market naturally dictate what you can and cannot do with regard to structuring the deal (meaning if it's too priced high, no tenant buyers will respond to my marketing of the property)?".... To read the rest of the transcript and more of Joe Crump's articles, click here: http://joecrumpblog.com/how-can-i-help-sellers-who-are-late-on-payments-or-upside-down-real-estate-investing/?utm_source=Youtube&utm_medium=EndLink&utm_campaign=Youtube130813
Views: 5070 Joe Crump
Sellers Will Sign Over Their Property To You Before You Speak To Them - Real Estate Investing
 
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http://www.JoeCrump.com/youtube Here is how we get Sellers to give us their homes before we ever speak to them -- using the automation alone. Here is how we use the online Lease Option Agreement Memo to take control so that we can legally sell their property, solve the problem of the Seller and the Buyer and make a profit for ourselves. Read Joe Crumps Blog: http://JoeCrumpBlog.com/ Read the Transcription: Joe: Hey, it's Joe Crump. Here's another video in the 8 Dollar Startup Program training series. This one is about the lease option agreement memo. Here's what we're doing. First of all, we're using the Automarketer. This Automarketer is going to send out a message to ads of people who are selling their homes on Craigslist and BackPage, asking them if they'd like to sell their home rent to buy rather than just renting it. And then some of those people are going to send us a response. Then, with those people that send us a response, if they say yes, they're going to get an email that is sent out through the autoresponder, which is the sequential email program that has a link in it that sends them to a page that sells them on the idea of doing a rent to buy deal with us. Joe: That rent to buy seller page looks something like this. It has an audio in there that explains the whole situation. It has a place for them to fill out to tell you if they're interested or not, and also it's in print; this same audio information is in print. By the way, you can change out this audio if you want to have your own voice on there. Right now, it's just my voice, but you can have your voice on there if you like, although there's no need to mess with that if you don't want to. Joe: When they fill out this form, we have a very high percentage of conversion for anyone who fills out this form because it shows that they're interested. Once they fill out this form, another email gets sent out to them because they get put into a different category. You get an email, by the way, if they fill out this form, and then they get an email saying thank you. Also now that they're interested, go to our lease option memo and let's get the ball rolling. It'll take them to the lease option memo page, which looks like this, and this is a form agreement. Joe: They put in their name, address, and city of their property, the price that they want to sell their house for, the term of the lease option (usually 1 to 3 years), and the monthly lease payment that they want. Let's say it's $1,200. They just type that in there. Then, they go down here and they put their email address and their phone number and evening phone number, and then when they click on this check this box to show your acceptance of this agreement and that you have the right to make this agreement (that means they were on the deed), clicking the 'I agree' button acts as your electronic signature. They click on this 'I agree' button and suddenly an email goes out with this filled out form to them and one comes to you, so now you've got control of their property. Joe: This says that they're willing to lease option to you and that they're willing to assign this lease option to a new tenant. And if you don't find a buyer, then you're out of the deal. So you've got no risk in the deal, and they've got very little risk in the deal, so it's a wonderful way of putting these things together. Joe: So, then we go out there and find someone who's interested in rent to buy. There's a ton of people that are interested in rent to buy. Those are the easy people to find. We ask them for a down payment and the first month's payment on the lease. The down payment is also the lease option fee. Let's say we've got a $150,000 property, we get $5,000 from the lease option fee and $1,200 for the first month's rent. The $5,000 comes to us and the $1,200 goes to the new seller. We're in and out of the deal and we're done. Joe: The seller has a brand new buyer who is solving his problem, stops the bleeding and he no longer has to make payments on that mortgage. It's coming in from the buyer. The buyer is able to get into a home that they never could have qualified for on their own because maybe they had damaged credit or some other issue. We just make sure they have enough income to qualify for these properties because we want to make sure we send a good buyer to them. But we don't expect them to have good credit. Joe: So, everybody's happy in a transaction like this. We're out of the deal, and we have no responsibility. It's not like doing a sandwich lease..... To read the rest of the transcript, click here: http://joecrumpblog.com/sellers-will-sign-over-their-property-to-you-before-you-speak-to-them-part-17-2/?utm_source=Youtube&utm_medium=EndLink&utm_campaign=Youtube131031
Views: 13525 Joe Crump
The Seller Wants $20,000 Down Payment - Now What?
 
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http://JoeCrumpBlog.com - Sign up for free real estate investing training with 25 year real estate veteran, Joe Crump. Learn how to build an automated, sustainable, profitable investing business with no down payments and no credit. Discover the most advanced automation software for investors available today at: http://www.PushButtonAutomarketer.com Learn how it will bring you a flood of motivated seller financed leads every single day. Six Month Mentor Program: http://www.ZeroDownInvesting.com Read the Transcript: Joe: This is another objection to the “For Rent Method” when you’re talking to a seller. Joe: They say, “Yes, I’ll do it but I want $20,000 for a down payment to do the lease option.” Joe: You’re not going to give them $20,000. As a matter of fact, they’re not going to get a down payment if you do this the way that you teach because that money is your money – that money is the money that you’re making as a profit. Joe: The more of it you give away, the less of it goes in your pocket. So make sure you don’t give it away. Making $20,000 on a down payment for a lease option is unlikely unless that property is worth $400,000 or $500,000 or more. So don’t expect to get that much. If you promise them $20,000, there’s no way you’re going to get it so don’t waste your time on deals like that. Joe: So here is the response that you want to give if you’re in that situation: Joe: “I can understand that. that’d be nice. What will you do if you don’t get that much for a down payment?” Joe: That’s the crux of it really. I mean, what are their options in this situation? Then you get into this next question which is: Joe: “Do you know your options for the different ways that you can sell?” Joe: If you look at the Automarketer, if you go to any of the lead sheets there, there’s a button up in the left hand corner that sells “seller options” and it breaks down their options. What happens if they work with a realtor? What happens if they sell it for under market value? What happens if they go into foreclosure? What happens if they sell it subject to or land contract or multi-mortgage or for cash or for a lease option? Those options are all broken down. Joe: Those are the limited options that these people have when they’re selling a property, depending on what you as the investor are willing to do. so you can look through that process with them and help them look at the options and then they can make their own decision about what makes sense for them. Alright, I hope that helps. To read this transcript and more of Joe Crump's articles, click here: http://joecrumpblog.com/the-seller-wants-20000-down-payment-now-what/
Views: 4478 Joe Crump
Structuring Deals #5: Assignable Cash Deals
 
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http://JoeCrumpBlog.com - Sign up for free real estate investing training with 25 year real estate veteran, Joe Crump. Learn how to build an automated, sustainable, profitable investing business with no down payments and no credit. Discover the most advanced automation software for investors available today at: http://www.PushButtonAutomarketer.com Learn how it will bring you a flood of motivated seller financed leads every single day. Six Month Mentor Program: http://www.ZeroDownInvesting.com Hey, it's Joe. This is video No. 5 of the deal structures, the zero down deal structures. And this is the fifth zero down structure that we use in the hierarchy. It's called assignable cash deals and it's also known as wholesaling. Basically, where you go out and find a property that's substantially under market value. You get it under a purchase agreement, for cash, and then you turn around and find somebody to buy it from you for a little bit more money. You take the profit and you take the buyer and they pay off what's owed on that property. So, let's take an example here. Let's say you've got a property that's worth $100K and the guy want's $50K. You get a purchase agreement with him for $50K, you add $5,000 to the price, now it's $55K. Somebody comes in, gives you the $5,000, they give $50K to the seller, they get in for $55K, they put in maybe $10,000 to fix it up. Now it's worth $100K, they've just made $35K on their deal. So it's a good deal for another investor. It pays off the person who sells it, and you make a profit in the deal as well. That's wholesaling. There's two ways that you make money as an investor. One is, you buy properties at or below market value, but you buy it on terms. You don't have any money coming out of your pocket. Two, you buy properties substantially under market value and you can do it for cash. Ideally, you want to do both of those of those things. You want to get it under market value and you want to get it on terms. Or, you want those, and you want those terms to be as attractive as possible, and with as small as interest as possible. So, you can do that both ways. A lot of times when we're buying less expensive deals that we're flipping, if you can get them on terms, let's say you have a $50K property that's worth $100K, you can ask that guy well, let me buy it on terms. If you know it needs some fix up, let's say it needs $10,000 worth of fix up, you get it on a $50K with a six-month land contract, then you can go and find somebody to give you $10,000. All they have to do is take over the land contract and they have to pay it off in six months. But they're going to fix it up and sell it in that six-month period anyway. So they can do it with having only $10,000 that they're paying to you, plus another $10,000 to fix it up, and then they're cost to sell it and they can, you know, get in and out and make a quick $30K on a deal like that. As long as you look at these deals and decide, hey, that makes sense for an investor. I can see how that would be profitable for an investor. And the less money that they have to come out of pocket, that means the higher return on their money. So, you always want to find better ways for them to do it. So, on an assignable cash deal, if you can make that cash that they have to come up with smaller and smaller and smaller, it's more and more likely that you'll get it sold. And, if you're dealing with cheaper properties, those are easier to sell than more expensive properties. There's a lot more people that have $20K or $50K than have $100K or $200K or $500K. There are still deals, if you found something for half a million dollars, that's worth, realistically, $1 million, the likelihood that you could probably sell that is still high as well. And you can make a good profit on things like that. But, it's going to be easier for you to sell a $50K property that's worth $100K. And when you talk about substantially under market value, it has to be substantial. It can't be 10% under market value, 20% under market value. And the cheaper the property is, the more of a percentage that it has to be under market value because it's a smaller number. The higher that you get the less that percentage has to be. So it's going to be anywhere from 30% to 50% under market value before you're likely to be able to sell it on a cash assignable deal. Anyway, so that's assignable deals. On the next video, I'm going to wrap up the explanation of these structures and talk about the zero down hierarchy and how all these structures fit together in the hierarchy. To read the whole transcript and more of Joe Crump's articles, click here: http://joecrumpblog.com/structuring-deals-5-assignable-cash-deals/
Views: 5141 Joe Crump
How Do I Flip Houses With No Money?
 
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http://JoeCrumpBlog.com - Sign up for free real estate investing training with 25 year real estate veteran, Joe Crump. Learn how to build an automated, sustainable, profitable investing business with no down payments and no credit. Discover the most advanced automation software for investors available today at: http://www.PushButtonAutomarketer.com Learn how it will bring you a flood of motivated seller financed leads every single day. “How do I flip houses with no money?” A lot of people would love to invest in property and do it over and over and over again, but they just don’t have the funds. Or, maybe they do have funds and they want to do a flip and they go out there and they put their cash up and they get a loan and they’re able to do one or two or three properties at a time and then they’re out of business. They can’t do any more until they get those sold and then they can go out and get new loans. So, what you want to learn how to do is how to do it with no money. With no cash. You know, they say you need money to make money. I say that if you can’t make money with no money you probably aren’t going to make money with money. So if you learn how to do it with no money then when you make money on those types of deals and you have excess cash above and beyond what you need to live on, then you can start investing that money. And there’s some great ways to invest your cash as well which I’m going to talk about in some videos later on. But if you want to buy properties with nothing down, the best way to start is, and this is what I teach my mentor students when they get in, because I know that they’re interested in getting to the cash as quickly as possible. So the best way to start is with what I call the For Rent Method. And essentially it’s just an assignable lease option. So we take a one-page lease option memo, we ask the seller to sign it and they tell us yes you can buy it on a lease option and you can assign your right to buy to someone else, and if you don’t buy it, that’s okay, too. That’s what a lease option says, essentially. It has the price, it has the monthly payment, it has the term of the lease which I usually do three years. I have the Automarketer. Now, you could go find these sellers just by going onto craigslist or to Zillow and looking for for sale by owners. And then calling those people and say, hey, would you consider selling your home rent to buy rather than selling it outright? And you can either call the For Rent or you can call the For Sale By Owners. We originally started this by just calling the For Rents and we ran out of them so we started calling the For Sale By Owners and they worked even better. And now we’ve got the Automarketer set up so that it’ll actually text all those For Sale By Owners for you and with the text that says would you consider selling your home rent to buy? If you would, I’d be interested. Please let me know. To read the whole transcript and more of Joe Crump's articles, click here: http://joecrumpblog.com/?p=13936 Six Month Mentor Program: http://www.ZeroDownInvesting.com
Views: 2429 Joe Crump
Make $5,000 In 2 Weeks With This Simple Real Estate Investing Technique
 
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http://JoeCrumpBlog.com - Sign up for free real estate investing training with 25 year real estate veteran, Joe Crump. Learn how to build an automated, sustainable, profitable investing business with no down payments and no credit. Discover the most advanced automation software for investors available today at: http://www.PushButtonAutomarketer.com Learn how it will bring you a flood of motivated seller financed leads every single day. There’s a lot of ways to make money quickly in real estate, and if you have experience you can do it in two weeks. You can probably do it in less than two weeks. And if you have a pipeline of deals going, it’s going to be less than that. You may end up doing a deal every week. So you’ve got another property closing every week. I’ve been at times in my business where we were closing 10 or 25 properties a week consistently over months and months at a time. And when you do that, it makes you a lot of money. And it doesn’t take very long to make that happen. You’ve got other people in place, you’ve got systems in place, you’ve got that consistently going. But let’s say that you’re just getting started and you want to make some money right away. You’ve got to pay your rent at the end of the month and you’re trying to make this stuff happen. I would say that the best way to do it is using the For Rent Method. I’ve never seen a system that works faster than using the For Rent Method. Essentially what you’re going to do is, you’re going to call all the for sale by owners on craigslist or Zillow or Tulia and you’re going to say, “Hey, would you consider selling your home rent to buy rather than just selling it outright?” Or, you could call the for rents and say, “Would you consider selling your home rent to buy rather than renting it?” And a certain percentage of those people are going to say, yeah, I’d consider that. And then you just have them sign a lease option memo, and let’s say you get that property for $200K. You raise the price up to $220K and you put it back on the market as a lease option. The likelihood is that you’ll get it sold in a fairly short period of time, usually within two weeks, sometimes four weeks to get that property sold, and make your $10K or $20K of spread between the amount that you paid for it and the amount you sold it for. Because you’re going to ask them for a down payment. You’re going to ask the new buyer for a down payment. They’re going to give you $10K or $20K down. Maybe they give you $10K down and you carry another $10K as a note. And you can do it that way. So, that’s how you make it, and it can happen very quickly. I’ve seen people close a deal in a matter of hours. One of my students told me about a deal they did the other day where they called a guy up on the phone, he said, yeah, I would do it. And this particular student had a list of buyers and he had one of those buyers that he knew was looking in this particular area and he called that buyer up on the way over to get that lease option memo signed, said, hey, I’ve got this property. Do you want to come over and take a look at it? Don’t come for another 20 minutes, I’ve got to get the memo signed on it. So he went in, he got the memo signed from the seller, the buyer came in, liked the property, bought it, and by the next day he had an extra $5,000 in his bank account from that person. The seller had a new buyer, the buyer got a new property, it was a win win win for everybody. So it’s not hard to make these things happen very quickly, but it does take some skill. The skill is what takes time to learn, not doing the deals. The deals don’t take long at all once you know how to do them. So, if you’re willing to put in the time, if you have the stamina to get through all the rejections so that you can learn how to make this stuff work, how you can learn how to talk to people so that they will actually comply with your wishes, to actually do what you are asking them to do, where they can actually trust you to solve their problem, once you get to that point, then it won’t be hard to do this in a very short period of time and make money consistently whenever you want to. And, if you put it into a system, then it’ll be consistent and reliable on top of that. Full transcript & more videos: http://joecrumpblog.com/?p=16162 Six Month Mentor Program: http://www.ZeroDownInvesting.com
Views: 1677 Joe Crump
How To Create A $100,000 Annual Income In Six Months Or Less
 
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http://JoeCrumpBlog.com - Sign up for free real estate investing training with 25 year real estate veteran, Joe Crump. Learn how to build an automated, sustainable, profitable investing business with no down payments and no credit. Discover the most advanced automation software for investors available today at: http://www.PushButtonAutomarketer.com Learn how it will bring you a flood of motivated seller financed leads every single day. Six Month Mentor Program: http://www.ZeroDownInvesting.com To read this transcript and more of Joe Crump's articles, click here: http://joecrumpblog.com/how-to-create-a-100000-annual-income-in-six-months-or-less/ Here’s another outrageous claim. How to create a $100,000 income in six months or less. This really isn’t that difficult. This is a matter of flipping two simple For Rent Method deals, one every two weeks. All you need is about $8,000. If you make $8,500 a month you’re going to be at the $100,000 mark. Rather than building a portfolio, flip properties at the beginning, where you take control of the property, with the For Rent Method. Go to people who have their homes for rent or For Sale By Owner and ask them, “Would you consider selling your home rent to buy rather than selling it outright, or rather than renting it?” Typically one in three say, “Yeah, I’d consider doing that, but I don’t really understand it.” You get on the phone with them, explain how it works, put the deal together and get control of the property simply with a Lease Option Memo. It’s an assignable lease option deal that you then go out and find a lease option buyer. If you have that document that makes you a principal, and makes you the owner of that property so that you can turn around and sell it. It gives you the ownership that you need in order to make it legal. You get that document signed, you advertise Rent to Buy and you find a buyer. The first month’s rent goes to the seller and they get the property sold for full price. They don’t have to pay any realtor fees, they don’t have to pay any expenses, they don’t pay you anything. You go out there and you’re paid by the buyer, the new buyer, the lease option buyer. So they come up with maybe $5,000 down on a property. You keep the $5,000. They also come up with the first month’s rent. You pass the first month’s rent on to the seller. You’re done with the deal and the lease option deal is between the seller and the new buyer after all is said and done. All you’re doing is assigning your right to buy it. You just need to do that a couple of times a month to make that consistent. Give yourself three or four months before you can expect to make any money. I’ve got people that make money in a week or two, but they’re the exception not the rule. The thing you have to learn as you’re going through this process is how to talk to these sellers and speak to them in a way that you have credibility, that they believe you can do what you say you can do, and most importantly, that they believe that what you’re offering will benefit them. If you can show them what their other options are, what you’re offering makes sense for a high percentage of people that are selling For Sale By Owner. This is a great way to get started and to start making money just by doing two deals. If you’ll look at the actual amount of time that it takes to do two deals, most deals will take five to fifteen hours if we have outsourcing. I’m going to talk a little bit about outsourcing in some of the later videos. If it takes you ten hours to make $5,000 you’ve just made $500 an hour for that time. I think it’s realistic to think you can work ten hours a week. That task is making offers. An hour and a half, two hours a day, four or five days a week. If you do that, the likelihood that you’re going to get into a position where you can do a deal or two a month is very high within a reasonable period of time. Everybody comes in with a different level of skill. Some people are better on the phone than others. Some people are better technologically than others so they can get the Automarketer up and running faster. The Automarketer keeps you from having to do it manually. Once you get to a point where you’re doing it three months in a row, where you have consistent income that replaces your income that you’re currently making, you can probably quit your job at that point and feel that you’re going to be able to be consistent with that from now on. Three months in a row is a pretty good litmus test for that process. To read this transcript and more of Joe Crump's articles, click here: http://joecrumpblog.com/POSTLINK
Views: 26483 Joe Crump
How To Get Online And Start Making Money Immediately
 
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http://JoeCrumpBlog.com - Sign up for free real estate investing training with 25 year real estate veteran, Joe Crump. Learn how to build an automated, sustainable, profitable investing business with no down payments and no credit. Discover the most advanced automation software for investors available today at: http://www.PushButtonAutomarketer.com Learn how it will bring you a flood of motivated seller financed leads every single day. Six Month Mentor Program: http://www.ZeroDownInvesting.com We've been going through a lot of different types of hypothetical deals to give you an understanding of how to structure zero down deals on properties like this and how to engineer particular offers on these properties. Also, help you understand how you can give your sellers different options so that you can make money a lot of different ways. The more tools you have in your toolbox the more ways that you can make money. If all you have is a hammer, everything looks like a nail. You only do things one way. When I start my mentor students, I start them with the for rent method using the lease option deals. And that's the one that I just have them focus on right from the beginning so you can make offers almost immediately. You don't have to know all these things in order to make offers on properties. So, you don't have to know everything that I'm teaching you here to be able to go out and do this. You can just learn the for rent method, learn one of these structures and start making offers that way. Because it's easy to find those types of deals. You just have to learn how to get good at it. And as you get better at it, just start thinking about these other structures as well. You know, the subject to, the multi-mortgage, the land contract, the lease option and the assignable cash deals. When you understand those five different structures, you can make an offer on any property out there, whether it's residential property, whether it's commercial property, whether it's here in the United States or whether it's outside the United States. So there's a lot of opportunities. I've got people that've done this in the UK, all over mainland Europe. I've had people in Australia do this, and of course Canada like crazy. I've never had anybody do it down in Mexico, although I know it's doable. I have had people in South America and Central America do it. Hopefully, one of these days, I want to get somebody from Mexico. I've had people in Dubai, I've had people in the other Emirates do this as well. So, it's transferrable wherever you go. And if you just learn the knowledge you need to do it, you don't have to have cash to do it. The most difficult part of working with high end properties is the sophistication level of the seller. So you have to be sophisticated. You have to have enough credibility, you have to have confidence, you have to know what you're doing, for them to trust you. If all you've done is $50K properties, you might feel more intimidated talking to people that are talking about $1.2 million properties. On the other hand, I've had people that have done $50K properties and they are so good at that, by switching over to the $1.2 million was no big deal. It's the new people that are talking to the $1.2 million people. That's the one where they start having challenges. So if you're working in a high end market like this and you're dealing with these kinds of properties, the potential for profit is enormous. But, you have to have skill. So, you know, does it make sense to start with these? Yeah - why not? You know, if they're in your backyard, start with them. If you're doing high end properties, I'd also work in a low end area, too, and do it remotely. You know, say you're working in Los Angeles and you see, find these properties all over the place that are million dollar price ranges. But you also maybe go to Bakersfield, or go to Lancaster, or go out of the state altogether and go to Texas or go to Wyoming and work at properties that are less expensive, work in the $100K range as well. Because those sellers might be a little bit easier for you to talk to and a little less intimidating than somebody who has a little higher sophistication in the financial market. This transcript was truncated. To read the whole transcript and more of Joe Crump's articles, click here: http://joecrumpblog.com/how-to-get-online-and-start-making-money-immediately/
Views: 9746 Joe Crump
How To Make Your First 10K As An Investor
 
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http://JoeCrumpBlog.com - Sign up for free real estate investing training with 25 year real estate veteran, Joe Crump. Learn how to build an automated, sustainable, profitable investing business with no down payments and no credit. Discover the most advanced automation software for investors available today at: http://www.PushButtonAutomarketer.com Learn how it will bring you a flood of motivated seller financed leads every single day. Everybody that gets into this business, especially when you're brand new, you want to know how am I going to get that money? How can I get money coming in as quickly as possible? I've seen people make money in a matter of a couple of weeks. I've seen people make money, it take them three or four months longer. I usually tell my mentor students that it takes three or four months before you can expect to make money. But I've also seen people do it a lot faster, depending on the skill level that you have coming in, some of the knowledge that you have coming in. And the technique that you're using. So many people start with the wrong technique. And then they have to spend months and months working on that technique, and that didn't work, and then they have to find another technique and they work on that one for a while and then they go out and you know, they'll spend some money on this person and learn one technique from them and another one from this guy over here and another one from this person over here. And they'll try a lot of things and none of it will come together. They're looking for, we're all looking for a quick fix. We're all looking to try to make this happen as absolutely as quickly as possible. So, what I'm going to suggest to you is that you do this using the same techniques that I teach my mentor students, using a technique that I call the For Rent Method. This is an amalgam of different types of techniques that we've used over the years, but we pretty much created this technique back in early 2000's - the aughts - and it's worked for us ever since in every market that we've worked in. It's called the For Rent Method. Basically, what we're doing is, we're calling up for sale by owners, or people who have their properties listed for rent on any one of the for sale by owner sites, craigslist, Zillow, Trulia, Redfin, any of those places you can go to. Our Automarketer goes into those places as well and actually scrapes those ads and we contact those people with a text. And that text says, "Would you consider selling your home rent to buy?" And then we get responses. And we typically get anywhere from 10% to 60% of the people we send out texts to to respond to us. And on average, between 50% and 80% of them will say "No" right off the bat. "No, I'm not interested," "No, I need cash for this property," whatever. Those people go into a follow-up system that's automatically built in to the system. So, three days later they'll get another email or another text. Three days after that they'll get another one. A week after that they get another one. And that follow up process goes on for three months in a row. A lot of the times when we're sending out these text messages to people who are for sale by owner, the first week they're in the process they're all gung ho. They think they're going to get it sold themselves. But we know that 85% to 95% according to the National Association of Realtors do not succeed as for sale by owners. They either have to take their property off the market or they typically would list it with a realtor. We're giving them a third alternative that we can do. And we can actually solve the problem for them. And if we're dripping on them through this whole process with our text messages, automatic text messages, the likelihood is that they're going to remember who we are and, hey, this guy's still at it. He's still interested, maybe I should give him a call now even though they said no to us two or three times before. And then you start automating that process by using the Automarketer, and using these drip systems and getting a pipeline of deals that are constantly coming in so that you can have not just the first deal, but deal after deal after deal every week that comes in. Six Month Mentor Program: http://www.ZeroDownInvesting.com Full transcript & more articles: http://joecrumpblog.com/?p=16037
Views: 2280 Joe Crump
You Are Breaking The Law - Did You Read The Dodd-Frank Act?
 
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http://JoeCrumpBlog.com - Sign up for free real estate investing training with 25 year real estate veteran, Joe Crump. Learn how to build an automated, sustainable, profitable investing business with no down payments and no credit. Discover the most advanced automation software for investors available today at: http://www.PushButtonAutomarketer.com Learn how it will bring you a flood of motivated seller financed leads every single day. Six Month Mentor Program: http://www.ZeroDownInvesting.com Read the Transcript: "I was wanting to know if one can still use all of your methods with the Dodd-Frank Act like land contracts or for rent methods or subject-to." -- Billy Shumway Joe: First of all, I'm going to direct you to an article that I wrote on my blog. If you just type in Dodd-Frank into the search on my blog, you'll be able to find an article that I wrote about this. But the thing about Dodd-Frank, first of all, is that it's 1000 pages long. It's been in effect for a while and new pieces keep coming along, but most of it still has not been implemented and almost none of it has actually been contested in court, so we don't know exactly how it's going to play out. Joe: It wasn't designed for people who are doing an honorable business. It was designed to keep people from taking advantage of the system. It was designed from keeping mortgage companies from running amuck like they did right before the crash. It was just crazy what was happening and the way people were doing predatory lending and the stuff that was going on at the time. These banks were abusing the system. And so, Dodd-Frank is set up to try to stop that. Joe: Any time you try to stop something, you always end up going overboard or at least most of the time the government does, so Dodd-Frank creates some problems for us. One of the things that you need to look out for (and there's several things) is putting private money together, pulling it together, being a general partner and managing this money for these people and doing deals with their money in that structure as a general partner. With an LLC, it's different, but as a general partner, you have control of that money, so you have to be very careful about not intermingling those funds. Joe: So there's the question of whether you might need to have some kind of securities license in order to do that type of deal, but we don't do those types of deals very often. What we're doing is just flipping properties outright, so I don't think you're going to have problems with the Dodd-Frank the way we're doing it right now. We'll have to wait and see what comes before the court in the future, if anything does, to see if we have to modify what we're doing. Joe: One of the things that we've learned in the past and that I've seen over and over again because I've seen these types of legislations come and go a lot, was with lease option laws in Texas. Those lease option laws made it very difficult to do lease options in Texas. We found a way to do it that complies with their process (and we still comply with their process). Joe: But I also know a lot of people that are doing lease options in Texas the same way you normally do them all over the country and I don't know anyone who's come afoul of that regulation or has had to pay the price all of the attorneys and experts said were going to be popping up on these folks if they did lease options. Joe: So, none of it was actually implemented. None of it has been brought to court as far as I know. I haven't seen it. I do business in Texas. I have properties in Texas and I have a lot of students who are in Texas, so I'm watching this stuff all the time. I would suggest that you comply with the rules as they are needed but also -- don't be afraid of the rules -- just make sure that you're following through with the process the way you need to that still makes you money. Joe: I also was in a situation once where I talked to my attorney and my attorney said, 'No, you can't do business this way because if you do, you come up to this situation' and I'm not going to get into it because it's not directly related to real estate, but it was just attorney advice. I looked at the way he was telling me to do business and I knew that by doing it that way, it would shut me down. It would completely destroy the way I was doing it because there was no way I could really comply with what they wanted. Joe: Everything I was doing was perfectly legal, ethical and moral and I was watching out for the people and not hurting anyone, but he was telling me, 'In order to comply with this particular rule, you are going to have to change your business.'.... To read the rest of the transcript and more of Joe Crump's articles, click here: http://joecrumpblog.com/you-are-breaking-the-law-did-you-read-the-dodd-frank-act/?utm_source=Youtube&utm_medium=EndLink&utm_campaign=Youtube
Views: 6116 Joe Crump
Deadly Mistakes Cash Investors Make - How To Invest Safely - Real Estate Investing
 
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http://www.JoeCrump.com/youtube Real estate investment expert, Joe Crump, teaches zero down investing techniques. Learn foreclosures, short sales, subject to, land contracts, multi-mortgage and other creative real estate financing structures. Free newsletter teaches you how: http://www.JoeCrump.com Six Month Mentor Program http://www.zerodowninvesting.com Read Joe Crump's Blog: http://JoeCrumpBlog.com/ Joe Crump's website: http://JoeCrump.com Read the transcript: Joe: Hey, it's Joe again. We've been talking a lot about how to analyze deals. We've been talking about specific deals and specific questions that I've gotten from you guys. And what I thought might make a little more sense than going into more deals that are sent to me specifically from you guys (because I've gotten so many of them and I appreciate you sending them) is to let me go through a series of videos that show you what does make sense. Rather than saying, 'Does this make sense?' let's show what does make sense; what is possible. Joe: And then, you can extrapolate from there -- does my deal fit into what makes sense? And why do these make sense? These next few videos that I'm going to show you are going to be the different types of deals that you can make money with. And remember, it always goes back to those two things that I tell you about all the time: there's only two types of deals that are going to make you money. One is properties that you can dramatically under market value for cash. The other is properties that you can buy at market value or below that you can buy on terms. With either one of those ways, you can almost always make money as an investor. And you can do it different ways. Joe: Let's start though, with cash deals. Properties that you can buy dramatically under market value -- dramatically under market value is one of those variable sort of numbers. 5 years ago, 20% under market value was considered dramatically under market value, especially in some markets that were shooting up 40% or 50% a year in value. If you could buy something 20% under market value currently and knew that it was going to up another 50% the following year because the market was going so crazy, that could be a pretty interesting deal. Joe: By the way, that's how I started in real estate investing -- I bought a property at market value. It was being built. It took 4 months to build it and by the time it was built it had gone up 20% in value. And I'm thinking, 'Wow, this is cool.' And this was in 1986 when the market was going crazy. Don't do that, by the way -- don't buy properties based on appreciation. That was a stupid thing to do. I was just lucky -- I got in at the right time at the right place and I didn't lose money; I started making money immediately. Joe: A lot of you, your first experience in real estate investing is where you lose money, and that's a shame -- because it usually knocks you out of the game and it keeps you from doing it again. I was lucky. I got a taste of it and I started thinking, 'Well, what if I actually bought a property UNDER market value?' What a light bulb that was! So I started buying properties from HUD and from VA foreclosures, and I'd fix them up and then we'd turn around and sell them, plus they had the appreciation that was going on in the market nationally at that time. And I was able to buy properties at 15-20% under market value and that would be considered dramatically under market value at that time. Joe: Right now in this market environment, 20% under market value is not dramatic. You're seeing properties all the time at 30-50% under market value. And I'm talking about real market value, not somebody's perceived idea of what the real value is. Because a lot of people will tell you, 'Oh, that property is worth $500,000 when it's worth $250,000 because that's what it was worth 3 or 4 years ago, so don't necessarily believe the values that you're told. And even if you do comps, don't necessarily believe that those values are accurate, either. I honestly don't know the value of some of my properties simply because the area is so variable -- there are so many different comps in the same area that are for identical properties so how do you really extrapolate from that? What you do is hold onto those properties and let the market stabilize itself which will happen over the next 3-5 years. So always have exit strategies that give you multiple options, especially if you're buying for cash. ... To read the rest of the transcript, click here: http://joecrumpblog.com/deadly-mistakes-cash-investors-make-how-to-invest-safely-video-17/
Views: 7243 Joe Crump
Structuring Deals #6: Hierarchy Of Control
 
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http://JoeCrumpBlog.com - Sign up for free real estate investing training with 25 year real estate veteran, Joe Crump. Learn how to build an automated, sustainable, profitable investing business with no down payments and no credit. Discover the most advanced automation software for investors available today at: http://www.PushButtonAutomarketer.com Learn how it will bring you a flood of motivated seller financed leads every single day. Six Month Mentor Program: http://www.ZeroDownInvesting.com Hey, it's Joe. This video 6 in the structuring zero down deals series that I'm doing here. And I've talked about the five different zero down structures, subject to, multi-mortgage, land contract or contract for deed, lease option and assignable cash deals. And they all fit in that order in a hierarchy. And I've placed them in this hierarchy because it's a hierarchy of control. You want as much control as possible when you do a deal and you want to give as little control as possible when you, you know, to the other party. So if you're buying the property, you want to be in control as the buyer. So on a subject to you get the most control because you get the deed in your hand and you have the least control if you're down at the bottom of the hierarchy on a cash assignable deal or a lease option. Those don’t give you much control at all. So you don't buy on, you don't buy that way, you would assign those to someone else. But you don't buy that way personally. You buy with subject to. You buy when you get the deed. You sell on lease option. You sell on assignable cash deals where you don't give them much control. If they don't perform, then you don't close the deal and you can get them out of the deal quickly. If they do perform, you make your money and everybody's happy. You have to assume that you're the most ethical person in the room and you know that you're going to do the right thing. So the only way that the right thing can be done in these transactions is if you're in control. So make sure that you're always in control of these deals whether you're buying or selling. So you use the hierarchy of structures. If you buy subject to, you can't sell subject to anymore, because of the Dodd Frank laws. So you, that's only if you're going to keep that property. If you buy multi-mortgage, you can't sell with a multi-mortgage either, but you can hold on to that property and it gives you the most control. If you buy on a land contract, you can't sell subject to because you don't have the deed. But you could sell on a land contract if it's an assignable cash deal, you can sell on a lease option or you can sell for cash. So it gives you, if you sell, if you buy on a land contract it still gives you a fair amount of control. If you buy on a lease option, you can't sell it on a land contract and you can't sell it on subject to. You can't sell it on a multi-mortgage. But you could sell it on a lease option if that was assignable, which is the main thing that we do in the for rent method, or you could sell it for cash. If you buy it as an assignable cash deal, you can't sell it on a lease option, you can't sell it on a land contract, you can't sell it on a multi-mortgage or a subject to, but you can sell it for cash. So you have the most limited options at the bottom of the hierarchy when you're doing that. So, try to get control of these properties where you have the most control so you have the most options to sell it. And that'll make your life a lot easier. Now, the next videos in this series that I'm going to do are going to be specific zero down deals and we're going to talk about, okay, this guy wants this much money, here's how much he owes on it, and these are all hypothetical deals. These aren't real deals. But they're hypothetical deals and they're real situations that I've run into before and I think there's a good variety of them here that I'm going to go through for the next eight or ten videos so you can have a pretty good understanding of what you could do in any particular situation with these kinds of deals. All right, hope that helps and I'll see you on the next video. Thanks. To read the whole transcript and more of Joe Crump's articles, click here: http://joecrumpblog.com/structuring-deals-6-hierarchy-of-control/
Views: 3911 Joe Crump
How To Get A Constant Flood Of Motivated Sellers Calling You - Part 3 - Real Estate Investing
 
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http://www.joecrump.com/youtube Marketing and innovation are the ONLY profit centers in your business. Everything else is an expense. http://www.PushButtonAutomarketer.com Effective, consistent, automated marketing systems are the only way to guarantee that money will continue to come in to your business without you having to monitor it everyday. This video shows you how to start up and use the Automarketer to bring you in a flood of sellers who are interested in selling their properties with no down payment and no qualifying. It is like a faucet for seller leads - turn it on and leads start filling your inbox and calling your voicemail. Six Month Mentor Program http://www.ZeroDownInvesting.com Read Joe Crump's Blog: http://JoeCrumpBlog.com/ Joe Crump's website: http://JoeCrump.com Read the Transcript: Let me show you how to queue up your email blasts, send them out and start responding to all of the leads you'll get with the Automarketer. Joe: Today I'm going to show you how to get your first mailing done through your Automarketer. We're going to go into the Automarketer and to step one which is 'category and location setup'. I'm going to scroll down the page a little bit, and what we have here is called a 'scraper'. It'll actually go onto Craigslist and to Backpage and it'll pull off ads, emails and phone numbers of the folks in there. Joe: I'm going to go in there and pick U.S. and then Indiana because that's where I'm working, and you'll notice I've got Indianapolis already selected, but if I didn't, I would select that. If I wanted to see all of the ones that I have selected, I can do this. I can do it in multiple states, multiple areas and multiple countries. You can do it any place Craigslist is at. Joe: We're going to do the same thing with the category. I'm going to get the housing category. I'm picking 'real estate - for sale by owner', and if I want to see all of the ones that I picked, that's the way I do it. You're going to get a lot fewer leads with Backpage than with Craigslist, so let's just get started with Craigslist and get the ball rolling. Joe: Once I pick those two, I go down and I click the step two and I scroll down the page and there, you'll see that there's a bunch of listings I can pull off of. Joe: If this is the first time you've done it and it's the first time that anybody has been in that city, then it'll take a little while to scrape that information. Right now, it's about 11:30 Eastern Time. This is showing that 12:00 is the next scrape. Joe: Every hour and a half or so it does a scrape, so it'll go in and automatically do it and keep those listings up to date, so every two hours or so it's going to pull off all of the new leads. So, whenever you do your search and your filter of leads that are going to go out, it's going to pull the most recent ones up as long as you put in those particular dates. Joe: There are a lot of ways you can use these filters. I'm not going to get into that right now. But if I search here, it's going to pull up a bunch of them. I'm just going to pull up about 500 right now and see what kind of deals I've got. There are 500 here. If I want to queue these up to be sent out, all I have to do is select all, it'll put a checkmark on this, and then I click on the queue button and it'll change this little red minus sign turn it into a green plus. Joe: Once it turns into a green plus, it'll add those to the queue. I'm not going to do it right now because I already have some working. Then I go to step three after I queue them up, and it'll show the ones that are in the queue right now, and we still have 108 in the queue that we're sending out. Joe: It sends these out very slowly (one every five minutes). We don't want it to send it out fast, because if we do, if you'll notice, most of these to Craigslist are going to a Craigslist email address -- that's an anonymized email address, and if you send out a blast to Craigslist like that, they will block the incoming email. So instead of doing it that way, we spread them out so that one goes out every five minutes or so, so it'll takes a while for that to happen. Joe: It'll go out all day and night long and it'll send out a message to them saying, 'Hey, would you consider selling your home rent to buy rather than just renting it?' It'll send out this message with our phone number in it, those people will get those things, and that's all we have to do. Joe: All we have to do now is wait for the responses to come in. As you can see here, we have lead responses that are already coming in. Some of them are saying, 'Yes, I'm interested' and some of them are saying 'No, I'm not interested,' and some of them are saying, 'Give me a.... To read the rest of the transcript and more of Joe Crump's articles, click here: http://joecrumpblog.com/how-to-get-a-constant-flood-of-motivated-sellers-calling-you-part-3/?utm_source=Youtube&utm_medium=EndLink&utm_campaign=Youtube
Views: 4701 Joe Crump
How to Do Another Zero Down Deal - $125k asking - $1100 rent
 
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http://JoeCrumpBlog.com - Sign up for free real estate investing training with 25 year real estate veteran, Joe Crump. Learn how to build an automated, sustainable, profitable investing business with no down payments and no credit. Discover the most advanced automation software for investors available today at: http://www.PushButtonAutomarketer.com Learn how it will bring you a flood of motivated seller financed leads every single day. Six Month Mentor Program: http://www.ZeroDownInvesting.com Read Transcript: “The seller wants $125,000 for the property. There’s $1,100 is the market rent for that property. He owes the $105,000 on it with a PITI payment of $875 – principal, interest, taxes and insurance of $875. The house is in good condition. It could use some sprucing up. It’s in an area of other houses that are priced, you know, about the same, at the same price range. What could I offer a guy on this house?” In this case I would be buying a subject to. Buying a subject to gives you the most control over a property because they’re deeding the property to you other than buying it for cash. So they’re deeding the property to you and you’re going to start making payments on the existing mortgage. “Would you just take $105,000 for this property and let us take over your payments and we’ll put a tenant in it and take care of the property?” Our exit strategy on something like that would be we’d turn around and sell it, maybe for $135,000, a little over market value. We’d ask for $5,000 or $10,000 down from a lease option buyer. We’d hold on to the underlying deed and we’d make the payments on the property, and the payments are $875 PITI. So now you have this property, turn around and sell it on a lease option, you get $5,000 down, you sell it for $135,000. Now you’re owed $130,000 if they exercise the option. So if they do exercise the option you’re going to make, $20,000, $25,000 when they exercise the option. In the meantime, they’re going to be renting it from you for $1,100 a month. You’re going to be making about $100 a month of income from that property, plus you’re going to get the tax depreciation on the property, which on something like this will be $3,000 or $4,000 a year which you can reduce your capital, you can reduce the income tax that you pay if it’s, if you’re an active investor, by about that much. If they don’t want to do the subject to deal, you could also do this as a land contract. Now, or we could do it as a multi-mortgage which is, you could do, take over the first as a subject to and then you could put a second mortgage on there for the balance that they want. If they wanted $125,000 and you’ve got a $105,000 mortgage, you could put a $20,000 second on there with you making the payments to the seller. You just have to make sure that you have enough cash flow to make it make sense. Because if you pay another $100 a month towards cash flow, it means you’re break even on this thing, which still might make sense because you’ve got zero down on this property. You just have to keep it for the long term. The other, the third option, is that you could do a land contract on this deal. A land contract doesn’t transfer the deed of the property. All it does is, is an agreement between the buyer and the seller to buy the property and it’s kind of like buying a car. The bank holds the title on a car until you pay off the contract that you have on the car and then once you pay that off then the bank gives you the title of the car. That’s the way it works on a land contract. And you can do that, you can make it assignable so you could sell to somebody else on a land contract. The other option here is we could just take this property and we can get this guy his whole $125,000, but we do it with an assignable lease option. I call this the for rent method and basically what we’ll do is take this property with a lease option memo, one-page memo that we’ve got, assign it, that makes us a principal in the transaction, so it makes it legal for someone without a license to sell a property that is not technically yours, but you have a principal interest in the property. So you go out and you find a buyer for that property. You raise the price to $130,000, you take $5,000 down. When you get good at this, it’s going to take you maybe eight to ten hours per deal, if you’re doing a fair amount of the work. If you outsource some of it, you’ll have very little time into it. And I’m going to talk about outsourcing later on in this series. To read the complete transcript and more of Joe Crump's articles, click here: http://joecrumpblog.com/how-to-do-another-zero-down-deal-125k-asking-1100-rent/
Views: 8058 Joe Crump
What Works: A Profitable Land Contract Deal Example -- Video 21 - Real Estate Investing
 
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http://www.JoeCrump.com/youtube This video will show you how to do a quick flip by buying on land contract and selling through a real estate agent on the MLS. Very simple, very quick. Land Contracts have some valuable uses if you know what you are doing. Most investors don't know when to use a specific type of financing structure. They don't know if it makes more sense to buy it with a Land Contract or a Lease Option, to sell it "Subject To" or for Cash. If you learn these deal structures and you learn my hierarchy of zero down structures, you will ALWAYS know the best offer to make -- and by best, I'm talking about the one that is the most profitable, has the best exit strategy for the situation, is the safest legally and puts you in control of the deal. Read Joe Crumps Blog: http://JoeCrumpBlog.com/ Read the Transcription: Joe: Hey, it's Joe. This next video that I'm showing you here is about buying properties on a land contract and when it makes sense. There's several ways that you can do it that make sense. One is, if you're working in Texas, then land contracts are pretty easy to do in Texas because you can foreclose on them in 30 days if the buyer doesn't pay you. And they also help because there's some regulations on lease options in Texas that they don't have in other parts of the country that land contracts will help you comply with. So I'm going to talk about that a little bit. Joe: Also, if you want to do a quick flip, or if you're buying something that's dramatically under market value, you can buy it on a land contract, turn around and sell it through a realtor on the MLS, make a quick chunk of money and then move on. I've done this quite a few times in different states and different areas. You don't have to do it locally. It's very easy to put together, and I'll give you an example of one of the ones that we did recently where we made just a quick 5 grand and then turned around and sold it under market value on the MLS, paid the realtor and then everyone was happy in the transaction. Joe: The other thing that you can do with land contracts is you can buy any property on terms with a land contract. I prefer not to buy properties on land contract when I'm buying them for the long term. I much prefer taking them subject-to or through multi-mortgage. And that's what I stick with because there's so many of those available that you don't have to go down the hierarchy and go to land contracts. But I'll show you an example of what might make sense. Sometimes when you're not as good at negotiating or talking to a seller, a land contract sometimes makes the seller a little more comfortable than just deeding the property to you. Once you get good at talking to them and making them feel comfortable that you're actually going to follow through with what you promise, then selling it subject-to is really not a problem. And if you use the techniques that I have in the push button method, I think it'll be a lot easier for you. So let me show you these types of deals here then I'll be right back. Joe: Here's a little house that we bought on land contract in Pennsylvania. I had to go online to get this picture because we never even got a picture or needed a picture to sell this property. What we did was— the current value was $57,000 on it. This person responded to one of our ads in the paper to sell their home and they went to our website and they filled out the form so we knew pretty much what the values were. They actually told us that the current is $57,000, they wanted to get rid of it and they gave us a price. We offered a little bit less on it, and we said, 'Sell it to us on a land contract. We want that land contract to be no payments at all for 6 months, 2 year land contract.' We figured that if we couldn't get it sold in 6 months, we probably weren't going to get it sold anyway. So, we had no payments on this thing. Joe: Then we went out and called a realtor local to the area. We had him list the property in the MLS for $39,000 and we sold it within 7 days through the MLS for $37,000. Now, after our closing costs and the deal that we cut with the realtor to get a good deal, we ended up making $5,000 profit on this deal simply by talking to the seller, getting the land contract put together, finding the realtor, having the realtor do the work, and a week later they get it done. They sent out a check to us.... To read the rest of the transcript, click here: http://joecrumpblog.com/what-works-a-profitable-land-contract-deal-example-video-21/?utm_source=Youtube&utm_medium=EndLink&utm_campaign=Youtube130822
Views: 7739 Joe Crump
Do You Ask Mortgage Lenders To Qualify Your Lease Option Buyers?
 
04:08
http://JoeCrumpBlog.com - Sign up for free real estate investing training with 25 year real estate veteran, Joe Crump. Learn how to build an automated, sustainable, profitable investing business with no down payments and no credit. Discover the most advanced automation software for investors available today at: http://www.PushButtonAutomarketer.com Learn how it will bring you a flood of motivated seller financed leads every single day. Six Month Mentor Program: http://www.ZeroDownInvesting.com Read the Transcript: “When soliciting buyers for the for rent program, you mentioned that a mortgage broker will review the buyers finances to determine when they’ll be able to exercise their option to buy the house…” – Jeffrey Smith Joe: Let me stop you right here to start with. Yes, we sometimes have lenders look over their finances to find out if they qualify. If you have any skill as far as qualifying people for a loan, it’s not that difficult to find out how to do that, i.e. find out what the front end ratio and the back end ratio is, how to look at their credit report and do those type of things – you can learn that yourself and any mortgage broker can teach you how to do that – or you can just send them over to a mortgage broker and have them do it for you. But if you know that they’re not going to qualify and you know they’ve got a lot of problems with their credit, then it’s difficult sometimes to get mortgage brokers to work with us. Joe: And we’ve tried it different ways where we would give these people two mortgage brokers, and we know that one or two out of ten probably qualify for a loan (they just don’t think they do) but it’s hard to get mortgage brokers to stick with it unless you pay them to do it and in that case, you might as well pay somebody to do it and pay them a lower amount to make that happen. “Part of your qualifying the buyer includes the down payment, about 5% of the purchase price. My question is how do you avoid competing with the government home loan programs that are for credit challenged buyers, i.e. with the FHA at 3.5% or some of the USDA zero down payment programs? Wont the mortgage broker have a fiduciary obligation to inform the buyer of the availability of these government home loan programs?” Joe: Yes, if he’s dealing with a lender, that lender is going to try to get him into the best type of deal that he can. We, as lease option buyers, are going to try to get them to come up with as much down payment as possible. The first question we usually ask a buyer Is, ‘how much do you have for down payment?’ if they say, ‘well, I’ve got $3,000,’ we’ll say, ‘well, if you had 5, I know we could make this work.’ If they say, ‘I’ve got $5,000’ we’ll say, ‘if you had 7, I know we could make this work.’ So you’re always trying to negotiate a little bit more. Joe: But we also want to try to stay within that 3.5% range which is typically what we do. And we’ll tell them, ‘Usually an FHA loan requires 3.5% so that’s what we require for the down payment for these.’ Joe: And remember, the down payment, when they finally buy this, may or may not apply to their purchase, so they may have to make a down payment now and then maybe later make a down payment again. And one of the ways we can solve this problem (and we’ve done this for people that we knew wanted to buy the property) – within the last year of their lease option, we can convert them over to a land contract and they can make those 12 months of payments, and when they do those 12 months of payments, the lender will actually look at those payments as another loan and they’ll see this as a refinance instead of purchase money or a new loan, which means they don’t have to come up with the down payment which is pretty handy when they go through that process. Joe: So those are the things… Down payment is adjustable or negotiable and we try to negotiate the most that we can get. We feel that it benefits everyone for us to get more down payment. First of all, we make more money which is good. The seller has a more stable investor or buyer for that property,. which is good for them and the buyer has a better chance of buying that property if they put more money down because it makes them more motivated to do that and follow through with that process. So it works all the way around if we try to get a higher down payment. But we don’t always get what we like so we just try to negotiate for what’s reasonable.... To read the rest of this transcript and more of Joe Crump's articles, click here: http://joecrumpblog.com/do-you-ask-mortgage-lenders-to-qualify-your-lease-option-buyers/?utm_source=Youtube&utm_medium=EndLink&utm_campaign=Youtube
Views: 4857 Joe Crump
How Much Should I Charge For A Lease Option Fee?
 
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http://JoeCrumpBlog.com - Sign up for free real estate investing training with 25 year real estate veteran, Joe Crump. Learn how to build an automated, sustainable, profitable investing business with no down payments and no credit. Discover the most advanced automation software for investors available today at: http://www.PushButtonAutomarketer.com Learn how it will bring you a flood of motivated seller financed leads every single day. Six Month Mentor Program: http://www.ZeroDownInvesting.com Read the Transcript: "How should I calculate the amount to charge for a lease option fee on the rent to buy program?" -- Jim Body, Anaheim Hills, Anaheim, California Joe: The way we do it is, first of all, when a buyer comes along, we don't advertise the amount of down payment. What we do instead is advertise down payment required, so when a buyer calls in, the first question we ask them is, 'How much do you have for a down payment?' And if they tell us, 'I've got $3,000,' we tell them, 'If you had $5,000, I know we could make this work.' If they say $7,000, then we say, 'If you had $10,000, I know we could make this work.' If they say $20,000, we say, 'Well, if you had $25,000, I know we could make this work'. Joe: The whole goal here is to negotiate the best possible lease option fee that you can because it benefits the seller for you to get more lease option fee because it makes that buyer more secure, it benefits the buyer because it makes it more likely that they'll exercise the option and fulfill the process they're doing because they have more on the line, and of course, it benefits you because you make a higher lease option fee and more profit. So it's a win-win-win situation if you negotiate the best price you can. Joe: I have other students that say, 'We need 3.5% because that's the FHA down payment and what they require' and by wording it that way, it makes it easier for them to get that 3.5% than if they just asked for the amount of down payment. Joe: Try it both ways and see which way works best for you. The average lease option fee in a $100,000 to $200,000 market is probably $3,500 to $5,000. If you get over $200,000 to $300,000, you're probably looking at $4,000 to $10,000 on those lease option fees. It's pretty rare to get lease option fees that are above $10,000 but we see that happen as well on properties that are in the $4,000 to $7,000 and above range, so keep that in mind as you go. Joe: Sometimes as you work in higher end markets, you're going to be getting higher lease option fees. You may also have fewer properties to do this with, so you have to kind of balance that and see which one makes the most sense for you. All the teaching I'm doing right now about how to do it remotely from different states, e.g. if you're in one state you can do it in another, or if you're in one country, you can do it in another, you can do all of that -- you can pick the area that you want to work in and the area you think is going to make the most sense for you. Joe: I've never seen an area that didn't work with this process. A lot of it depends on the investor (you) and how you want to do your business, and I would suggest that you start in your own hometown and get started there. Sometimes it's easier to get a deal together if you can get face to face with people and they can see who you are, trust you and feel more confident in you. Joe: Once you've done it a few times, then you're going to be a little more comfortable on the phone and a little more confident and that's going to come across on the phone and then it'll be more likely that they'll work with you. Alright, I hope that helps. Thanks. To read this transcript and more of Joe Crump's articles, click here: http://joecrumpblog.com/how-much-should-i-charge-for-a-lease-option-fee/?utm_source=Youtube&utm_medium=EndLink&utm_campaign=Youtube
Views: 4354 Joe Crump
$7,000 In 5 Days - 23 Years Old - Real Estate Investing
 
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http://www.JoeCrump.com/youtube Real estate investor Joe Crump teaches zero down, no credit real estate investing methods. These are case studies of his students in his "Six Month Mentor Program". Watch and learn all of the ways you can make money as a real estate investor from the experiences of his students. Six Month Mentor Program http://www.ZeroDownInvesting.com Read Joe Crump's Blog: http://JoeCrumpBlog.com/ Case Studies of Joe Crump's Students: http://JoeCrump.com/partner/casestudy.html Read the Transcript: Prince Amos: My name is Prince Amos. I'm from Longview, Texas. Well, the first real estate transaction I did with Joe actually was part of the Cash Flow Newsletter, which for quite some time I never really got on board with. As soon as I entered the mentor group, I had seen that I needed some one on one assistance, and as soon as we did that, with little tweaks here and there, and having that influence there, I was able to close my deal within about 3 to 4 weeks that I was there. Prince Amos: On the first deal, I made about 3 grand. I didn't put too much work into it. I just made some phone calls and we did sign the lease option just like he says to do, put out the signs just like he says to do, and just follow it. We were able to sell it and make a quick profit. Prince Amos: About 5 to 6 hours maybe, total. We spoke to a seller, got the lease option memo signed, went through the biggest things just as we were instructed to basically, put the sign in the yard, and in a couple of weeks, we sold the property. Prince Amos: I found out about Joe's program just looking online. I was always interested in real estate investing. I was reading books here and there. And what I did is I actually went online and I kind of stumbled across his newsletter, and his sincerity stuck out to me -- that he really seemed like he was a real person and was willing to help. So, we signed up for the Cash Flow Newsletter and we took it from there and it couldn't be better since. Prince Amos: What made me decide to get into the Mentor Program was the one on one help that I knew I needed. You need guidance in business and you need somebody by your side and what's awesome about the group is that I knew that he was dead serious about helping us. And like I said, the down to Earth real person that he was kind of came across, and then we just pulled the trigger from there and we were able to move forward. Prince Amos: The best that I've done (I'm kind of excited). I think I signed up the 29th of this year (we were already doing some deals) -- so I signed up the 29th of this year and I sold it on the 3rd and made about $7,000 on that, so that means it took about 5 days to make $7,000. I put about maybe 2 days' worth of work into it, signing it up, putting the sign in the yard, meeting the buyer, and so we sold the property that quick. Prince Amos: Yes, we just started automating the business. We're just starting now. With the program as far as automation is concerned, we're starting the sellers first and we're looking forward to moving into doing the virtual assistants and things of that nature so that we can focus on the bottom line as far as being more effective in making offers. So, having it outsourced and automation is definitely going to increase that for us so that we're not doing so much of the leg work. So it's an awesome concept, definitely. Prince Amos: The different automation techniques that are the reason we went with Joe Crump are the voice blast, which is awesome, and we're starting to use the List Builder as well, and with just that, in and of itself, we were able to get more marketing out there and more contacts and we were able to follow up with them. Then, of course, that means more deals for us. Prince Amos: I'm trying to do over $150,000 this year. That's my goal. My ultimate goal as a real estate investor is to be a millionaire, definitely. I just turned 23, so by the time I'm 30 I definitely want to be a millionaire. Prince Amos: So far, the impact that the business has had on our lifestyle is awesome. Knowing the fact that you can take control of your own life and you can create the income that you want for your family just by having the correct knowledge and implementing that knowledge makes you feel good about yourself and give you a different on the world as well. Prince Amos: We're planning to quit in the next few months, so in the next two months, we can't wait to quit. I'm sorry -- I love everybody, but we can't wait to quit. Prince Amos: What we're doing next to build the business, from this event that we're going to take away from it, is as far as hiring virtual assistants. And, to go ahead and start delegating and outsourcing more in order to free up .... To read this transcript and more case studies of Joe Crump's program, click here: http://joecrumpblog.com/7000-in-5-days-23-years-old/?utm_source=Youtube&utm_medium=EndLink&utm_campaign=Youtube130826
Views: 6600 Joe Crump
Should I Do A "Sandwich" Lease Option?
 
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http://JoeCrumpBlog.com - Sign up for free real estate investing training with 25 year real estate veteran, Joe Crump. Learn how to build an automated, sustainable, profitable investing business with no down payments and no credit. Discover the most advanced automation software for investors available today at: http://www.PushButtonAutomarketer.com Learn how it will bring you a flood of motivated seller financed leads every single day. Six Month Mentor Program: http://www.ZeroDownInvesting.com Hey, it’s Joe. This question is from Ryan. Ryan says, “How do we structure a lease option where we do not stay in the middle of the transaction as an assignment, where the end buyer gets full credit for the purchase price when they go to exercise their option to purchase and refinance into the deal?” Well, there’s a lot of ways that you can flip properties like this. You can either flip for cash or you can flip on terms. So if you understand the zero down structures, and I’ve got videos on these if you go to my blog, there’s a bunch of other videos that talk about the different structures like subject to, multi mortgage, land contract or contract for deed, lease option or assignable cash deals. You can assign every one of those types of deals, except for subject to. Subject to you have to keep yourself. But the other types of deals, contracts or lease options or assignable cash deals, are all assignable deals and you can get your property under control, simply with a purchase agreement or we use what’s call the lease option memo to do the for rent method and take a property that we say we’re going to buy on a lease option and we’re going to assign our right to buy to another buyer and we take control. We become a principal in the transaction. It makes it legal for us to sell the property because we’re a principal in the transaction even if we don’t have a realtor’s license. I have a broker’s license, I’ve had one for thirty years, but you can do this without a broker’s license as long as you become a principal in the transaction. And that document will make you a principal and that makes it possible for you to then go out and find another buyer, sell it to them, assign your right to buy to them and then they can buy it at the purchase price that you negotiated originally with the seller. So that’s it. I mean, it’s pretty straightforward. It’s pretty easy to do. And it’s the basis of everything that I teach. So learn how to do this process and it’ll make you a lot of money. All right. Good luck. To read the whole transcript and more of Joe Crump's articles, click here: http://joecrumpblog.com/?p=13154
Views: 1892 Joe Crump
Why Low Priced Houses In Rural And Urban Areas Are Cash Cows
 
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http://JoeCrumpBlog.com - Sign up for free real estate investing training with 25 year real estate veteran, Joe Crump. Learn how to build an automated, sustainable, profitable investing business with no down payments and no credit. Discover the most advanced automation software for investors available today at: http://www.PushButtonAutomarketer.com Learn how it will bring you a flood of motivated seller financed leads every single day. I’ve got another thing I want to talk about today. It’s something that I’ve seen a lot of my students do and we’ve been doing it as well. We go and buy really inexpensive houses in either urban areas or rural areas. There’s a ton of rural areas, especially here in Indiana, and in states in the Midwest where you can buy a property for $30K or $40K that’ll rent out for $600 or $700 a month, and that are in pretty good condition. And there’s a bunch of them out there and a bunch of places out there where you can do this. I’ve got students who’ve built portfolios of 50, 100, 200 properties in just a few short years buying properties like this in rural areas that have cash flow that they can sell – and by the way, they’re not just renting them – they’re selling them on lease options. So they’ll take $5,000 as a lease option fee, they’ll get the $200 a month cash flow and then they’ll get the $400 a month that goes towards the principal that buys that note down every month. And when that person, if they exercise the option, then you can go ahead and sell it to them for cash because they’ll go out and get a new loan. Or, if they don’t exercise the option, you can go around, turn around and sell it to another lease option buyer and make money doing it that way. And typically you can sell a property for a little bit more than it’s worth when you’re selling it on terms anyway. So, if you bought it for $30K you might want to sell it for $45K, or $40K. If you bought it for $50K, you might want to sell it for $70K. And you can still make a profit on those deals. Six Month Mentor Program: http://www.ZeroDownInvesting.com To read the whole transcript and more of Joe Crump's articles, click here: http://joecrumpblog.com/?p=16008
Views: 2180 Joe Crump
The Seller Told Me Their Lender Forbids Rent To Own
 
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http://JoeCrumpBlog.com - Sign up for free real estate investing training with 25 year real estate veteran, Joe Crump. Learn how to build an automated, sustainable, profitable investing business with no down payments and no credit. Discover the most advanced automation software for investors available today at: http://www.PushButtonAutomarketer.com Learn how it will bring you a flood of motivated seller financed leads every single day. Six Month Mentor Program: http://www.ZeroDownInvesting.com Read the Transcript: “What do you say when the seller says their mortgage contract forbids rent to own or the bank requires that the owner occupies the home?” – Denise McKune Joe: There’s different kinds of loans that you can go out there and get. One is owner occupied loans. One is for investors. An owner occupied loan – the stipulation is that your intention when you move into it is to occupy that property. That doesn’t mean that you have to live there for 30 years. What it means is that your intention when you bought it was to move into it. Now, you should actually move into that property – don’t say it’s my intention and then not move into it. But if you’ve had that property, and these people presumably have already been living there so they’ve been occupying that property – the lenders will allow them to do it, and there’s nothing in their loan documents that will say that they can’t rent that property. So have them look at their loan documents and I think you’ll be able to prove that to them through thatr process. Joe: Now another thing you need to look at is homeowners associations. Some homeowners associations don’t allow renters into an area. It’s pretty rare but it is possible that the homeowners association won’t allow it. So look at that issue and that might be what they’re thinking. Joe: So all you have to do most of the time in these situations is help them understand what the reality is rather than what they think the reality is. Joe: You also said here that the mortgage contract forbids rent to own, and that is very rare – to see that in a loan document – that they would allow any type of rental property. There is something called a due on sale clause – 99.9% of mortgages that I’ve seen have a due on sale clause. That due on sale clause says that if you transfer ownership of that property, that the loan can be called due and payable immediately. If they did that, that would mean that every subject to deal that I’ve ever done or that the thousands of other deals that I’ve seen done would have been called by the bank. Joe: But banks don’t do that. Banks aren’t in the business of foreclosing a property – they’re in the business of loaning money and getting money back. And if you go in there and take a property and you continue to make your payments, they’re usually going to be fine with that. So I wouldn’t worry so much about this happening. They may just be misunderstanding what they think the lender is saying rather than what the lender actually is saying. Joe: The lender is not saying you can’t rent your property even though you have a loan on that property. They would love it if you lived there, but they also know that that doesn’t always happen. They’re not going to foreclose on it for that reason. At least that’s been my experience. I’m not an attorney. I can’t give legal advice. I don’t even play one on TV. Alright, thanks. To read this transcript and more of Joe Crump's articles, click here: http://joecrumpblog.com/the-seller-told-me-their-lender-forbids-rent-to-own/
Views: 3223 Joe Crump
Do I Need A Real Estate License To Flip Houses?
 
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http://JoeCrumpBlog.com - Sign up for free real estate investing training with 25 year real estate veteran, Joe Crump. Learn how to build an automated, sustainable, profitable investing business with no down payments and no credit. Discover the most advanced automation software for investors available today at: http://www.PushButtonAutomarketer.com Learn how it will bring you a flood of motivated seller financed leads every single day. Six Month Mentor Program: http://www.ZeroDownInvesting.com Read Transcript: Hey, it's Joe Crump. Got another question here. This is from Bharuch Asolay. Bharuch says, "I live in New York state. Do I need a real estate license to flip houses?" The answer is no. You need a real estate license to represent other people in a deal. So, if you're representing yourself in the deal, then you don't need a license for that. You can always sell your, buy and sell your own property. That's why we have for sale by owner deals. So that the question is, what makes you a principal in that transaction? And having the right to sell that property through the document that says you have the right to buy that property and make that right assignable, that's what gives you a principal position in that deal and makes you legal when you sell it. So if you don't have your option signed, or if you don't have an assignable purchase agreement signed, then it's not legal for you if you don't have a license. If you have a license then you can do it, but it's not necessary to have a license and I think sometimes if you don't have a license now you probably don't want to spend a lot of time and money getting a license doing this, until maybe you've been in the business for a while. I've had a license for thirty years. I work as a broker. I no longer list and sell properties. I did that many years ago and I don't enjoy it and I find that investing is much more profitable than that. But I keep my license active. I go to the continuing education every year, I go put in my days and do the continuing education. I sit through the stuff that I've learned thirty years ago. But I do it because that's the requirement for me to be able to keep my license and I think it gives me some credibility with some of the people that I talk to that I have the license, and that does help a little bit. But it's not necessary, and I've had so many students who don't have a license, who have been very successful with this business without a license. Hope that answers the question. And, by the way, I guess I should say before sign off here, I am not an attorney. Don't even play one on TV. I can't give legal advice, so I'm just giving you my opinion. I'm giving you my experience in this business for the last thirty years. But it's not legal advice and if you feel uncomfortable about anything that I'm saying, please, please, please, talk to an attorney. Hire somebody and get their take on it. Because if you're not comfortable with what you're doing legally, you're probably not going to end up doing it. You're going to find a reason not to do it. So get comfortable with it legally and then move forward and that way you can feel like, you know, I’m heading in the right direction. I'm doing this honorably, I'm doing this ethically, you know, I'm doing this morally, and you're treating people right and you're following the law. That's very important in this business. You know, it's the only way that you can have a long term sustainable business. You've got to treat it like, treat people like they're family. You've got to treat them with love and respect. To read the whole transcript and more of Joe Crump's articles, click here: http://joecrumpblog.com/do-i-need-a-real-estate-license-to-flip-houses/
Views: 2221 Joe Crump
Take The Deed! Build A Million Dollar Portfolio In A Year
 
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http://JoeCrumpBlog.com - Sign up for free real estate investing training with 25 year real estate veteran, Joe Crump. Learn how to build an automated, sustainable, profitable investing business with no down payments and no credit. Discover the most advanced automation software for investors available today at: http://www.PushButtonAutomarketer.com Learn how it will bring you a flood of motivated seller financed leads every single day. Today I’m going to give you a brief outline of how to build a million dollar portfolio in one year. Now, that’s not a million dollars’ worth of equity, that’s a million dollars’ worth of property. How do you buy a million dollars’ worth of property with no money, without using your credit, and do it from you home. And do it anywhere in the country that you like. And the way to do that is by taking the deed. And the technique is called “subject to.” Taking the property subject to the existing loan. The way subject to works is that the seller has a property, they have a mortgage on it, usually that mortgage is pretty close to its real value in property. Now, in my mentor program in the Pushbutton Method, I have training programs on how to do subject to’s. And subject to’s are a great way to build this portfolio because you’re going to buy it subject to. Now. Big important caveat. Don’t take the entire lease option fee and spend it on your life. You know, don’t use that just as income. Use that and put it into an escrow account, into a bank account where you’re not going to touch it. You know, every time you have a tenant, there’s going to be wear and tear on a property and sometimes they’ll be harder on it than others and you’ve got to send people in there, you know, clean it up, and get it ready to rent again. That’s how you can build a portfolio that quickly. Use the Automarketer to bring in the leads, use those leads, analyze each one of them that comes in, and then decide which is the best deal. You’re engineering the deal with each person you talk to. And you’re going to find the best thing for them and the thing that works for you as well and makes you a profit. To read the whole transcript and more of Joe Crump's articles, click here: http://joecrumpblog.com/?p=15967 Six Month Mentor Program: http://www.ZeroDownInvesting.com
Views: 1914 Joe Crump
How Do I Make Money With Short Sales? - Real Estate Investing
 
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http://www.JoeCrump.com/youtube Real estate investment expert Joe Crump teaches zero down investing techniques. Learn foreclosures, short sales, "Subject To", land contracts, "Multi-mortgage" and other creative real estate financing structures. Six Month Mentor Program http://www.ZeroDownInvesting.com Read Joe Crump's Blog: http://JoeCrumpBlog.com/ Joe Crump's website: http://JoeCrump.com Read the Transcript: How do you make money on short sales? Here are some of the advantages and disadvantages of short sales, and how to make the most money out of them if you do decide to do them. "I need some starter information on short sales. What is the benefit to the owner versus foreclosure? How do I get paid my commission on top of the lender taking less for the sale? How do homeowners associations get paid that are in arrears? Do I send an offer with a request for a short sale to the lender? What if there is a second on the house as well?" -- Babbs Stilly from Kansas City, Missouri Joe: First of all, let's talk about short sales and the value of doing short sales. There are a lot of people out there who are teaching short sales as being a viable way of working as an investor. And you can make a lot of money in short sales. There's no reason you can't make money in it. This just came out from the National Association of Realtors: only one in nine offers that are made to lenders for short sales are accepted, so you're in an uphill battle. Joe: If you know how to do it and really understand the process, you have a chance of making it happen. But, lenders are not stupid. They're going to try to get the most amount of money that they can from the properties, and if it makes sense for them to take the property back and list it, they're going to do that instead. Joe: So, don't expect to get 30-60% discounts on short sales. I don't see that happening very often. But let me answer your specific questions about short sales, because I think it's relevant and there are still a lot of people that are doing it. Joe: The benefits to the owner versus foreclosure are that it's going to have a different impact on their credit, although not very much, because it's still going to show up that it was given over as a deed in lieu of foreclosure -- it's not really going to keep their credit clean. Usually, if they're going into foreclosure, the bank won't even talk to them about doing a short sale until they're late three months and filing a notice of default. This is an average number across the country. It varies in different places with different lenders. Joe: Some lenders are waiting for a very long time before they're filing a notice of default because they don't want the property back right now and are just having a hard time keeping up with the foreclosures that are happening. So, is there a huge benefit to the seller? Not really. They're not getting any money out of the deal. It would be much better for them if you took over the property subject to the existing loan, deeded you the property and you started making their payments. Hopefully, you can find them at a time before they stop making their payments. Joe: This is the best group to go after. Everybody thinks they need to go after people who are in foreclosure and that they're going to get the best deal doing that, but that's not the case. What we're going after are for sale by owners, people who are still making their payments and want to sell their property but who can't sell their property because there's not enough equity in there to hire a realtor to do it, so they try to do it themselves. They aren't successful with it because nobody out there can get a loan to buy it from them. Joe: We're going to them saying, 'Why don't you just deed us the property? We'll take it subject to the existing loan. You'll stay on the loan. We'll be on the deed. You'll be responsible for the loan. We won't give you a down payment. You make the next payment on the property and we'll take over the property and we'll put a tenant in there.' That's one of the things that I've been doing. I did one yesterday, and she was very, very pleased that I took it off her hands, even though she's still on the loan and even though she's still responsible and has to make the next payment on the property (because I want to have enough time to fill the property before I start making the payments)... To read the rest of the transcript and more of Joe Crump's articles, click here: http://joecrumpblog.com/how-do-i-make-money-with-short-sales/?utm_source=Youtube&utm_medium=EndLink&utm_campaign=Youtube131017
Views: 4791 Joe Crump
What Are The Best Sources For Finding Motivated Seller Leads?
 
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http://JoeCrumpBlog.com - Sign up for free real estate investing training with 25 year real estate veteran, Joe Crump. Learn how to build an automated, sustainable, profitable investing business with no down payments and no credit. Discover the most advanced automation software for investors available today at: http://www.PushButtonAutomarketer.com Learn how it will bring you a flood of motivated seller financed leads every single day. Six Month Mentor Program: http://www.ZeroDownInvesting.com My question is I’ve been through your mentor program and have some success with the For Rent Method, but I’m looking to start doing some of your other zero down methods. One thing that still confuses me is what type of sellers or people would we approach to make these zero down offers? Would it be FSBO’s, absentee owners, foreclosures, and any of these? What is the best source to find these leads and make immediate zero down offers whether it be through Zillow or craigslist or any of these other sources?” My main lead source is through craigslist. We just scrap craigslist and we send a text to all those people and say, “Would you consider selling your home rent to buy rather than selling it outright?” And when we do that we get responses. And some of them will say, “Yeah, I would consider that.” Some of them, most of them, most of the responses we get are “No.” Eighty percent of them are “No, I’m not interested in that.” But that twenty, ten to twenty percent that we get that say “yes” or “maybe” or “I don’t quite understand” or “How does that work?” or, “Yes, I’d do it if you get me $20,000 down,” you know, those are the people that we talk to. And having those leads like that that are already prequalified on some level, then we can get on the phone and we can walk them through their options and selling their property. So that lead source is, I believe, the best source. It’s also a good source for using the other zero down structures because not everybody is going to want to do a lease option. Now, you’re not going to get every deal this way, but a lot of times I’ve found that people would prefer to work with you than do it the other way. And, the thing that we’re offering will actually make them more money in most cases than any other option that they have. So these are good options to be able to offer people as they’re going through it. There’s also other lead sources. We scrape craigslist but Zillow is out there and you can go through Zillow and get for sale by owners, Trulia is out there. Those are good sources as well. To read the whole transcript and more of Joe Crump's articles, click here: http://joecrumpblog.com/?p=13355
Views: 2487 Joe Crump
How Are Funds From The Lease Option Buyer Distributed?
 
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http://JoeCrumpBlog.com - Sign up for free real estate investing training with 25 year real estate veteran, Joe Crump. Learn how to build an automated, sustainable, profitable investing business with no down payments and no credit. Discover the most advanced automation software for investors available today at: http://www.PushButtonAutomarketer.com Learn how it will bring you a flood of motivated seller financed leads every single day. Six Month Mentor Program: http://www.ZeroDownInvesting.com Read the Transcript: I hope you’re enjoying this process. I hope it’s good training for you. I hope you’re getting it piece by piece. Joe: Sometimes I find it’s a little easier to digest a ton of information over time in small little bits, and that’s why I do it this way. It’s also a lot of fun and it’s a nice way for me to be able to break this stuff up as well. It’s fun to see people come and see these videos. I love to have your comments so please give comments to these videos as you go along because I think it’ll help create a dialogue and I’ll try to do my best to answer the questions that you have in the comments on the blog as well, so keep that in mind. Joe: As you go through this process, look at the training and where you’re at in your process and then decide whether or not you want to follow through with something like this. Sometimes it’s just fun to learn about it and it’s a hobby and it doesn’t really matter; it’s kind of a nice dream that’s off in the future, but you know, sometimes it makes sense to actually take action on some of this stuff and actually do it. And if you take action on it, over time you’re going to learn how to talk to these sellers, how to talk to these buyers, how to put these deals together and then if you try it a few times, you may find that you make some money, and if you make some money, you may find that you should do it again. Joe: A lot of people will go and they’ll do it and they’ll make some money and then they’ll get busy with the rest of their life and they won’t do another deal for another year, and if they had only just done the same thing that they did the few hours that they had to spend on doing these deals, they could have done it again and again and again and turned it into something so consistent that it replaces their income and gives them the freedom and the lifestyle that they’ve always dreamed of. Joe: This is a wonderful business, and it’s a lot of fun and I think that you would enjoy it if you’d follow through. “When a lease option tenant enters the house and starts making payments, who exactly do they pay the monthly rent or option fee to? Do they pay the money into the bank account of the seller assuming that I’m the middleman?” – T. LaBuy Joe: He’s talking about him as the investor as the middleman. Joe: Well, first of all the, the tenant doesn’t move in until all of the documents are signed and until you get the lease option fee and you get the first month’s rent. The lease option fee is going to go to you, it’s going to apply to the down payment, and the first month’s rent is going to go to the seller. Joe: If you have a property and the seller says on the lease option memo that he wants $150,000 for that property and you raise the price to $155,000, you get a $5,000 lease option fee, the lease option fee is paid to you and now the amount that they owe the seller is $150,000, so $5,000 applied to the purchase price and now they owe $150,000 and they have to pay, for example, $1,200 a month – they’re paying $1,200 a month on that lease and they’re going to pay that to the seller. Joe: You’re out of the deal at that point, and the deal is going to be between the seller and the new buyer, so that’s the whole thing. The only time you would have the buyer pay directly to the bank to pay the mortgage of the seller is if you thought the seller was unstable and not going to be making those payments; you want to make sure that those payments are made, and the best way to do that is to have a stable seller who wants to keep their credit clean. To read the rest of this transcript and more of Joe Crump's articles, click here: http://joecrumpblog.com/how-are-funds-from-the-lease-option-buyer-distributed/?utm_source=Youtube&utm_medium=EndLink&utm_campaign=Youtube
Views: 4012 Joe Crump
How To Buy With The Multi-Mortgage Technique To Give The Seller His Equity - Real Estate Investing
 
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http://www.JoeCrump.com/youtube In this video, you will learn the "Multi-Mortgage" technique. This is a great way to structure a deal so that it gives the seller some of his equity and makes it more likely for them to do the deal. If you understand all of the structures in my hierarchy, you will be able to make an offer on ANY property so that it is profitable to you and likely to be accepted by the Sellers. Read Joe Crumps Blog: http://JoeCrumpBlog.com/ Read the Transcription: Joe: Second in this structure is called multi-mortgage. This is a structure that I created simply because there weren't any other out there. You're still taking the property subject-to but this time, that property may have some equity in it. Joe: Now, when you take most properties subject-to, they're going to have mortgages up to the value of their property or within 70-80% of their value. And it's easy to take those properties over and get that equity for free. But let's say somebody has a property and they only have a mortgage on it that's 20% of their equity. Let's say it's a property that's worth $100,000 and they owe $20,000 on the mortgage right now. What you can do is take that property from them, buy that property from them with multi mortgage and get them their equity. Let's say it makes sense for you to pay them $400,000 for that property. Let's say it's worth $100,000. You're going to be able to get $1,000 of income on it and your payments overall aren't going to be more than say $900 a month with taxes and insurance and property management -- that property might make a lot of sense to take over. So to do that, what you have to do is put a second mortgage on there. The seller deeds you the property, you start making payments on the first mortgage or first trust deed that's on the property, and then we have a second mortgage that's on the property where the beneficiary is the owner or the seller of the property. So they're going to have an $80,000 second on that property that you're going to make payments to. If you default, they can take the property back from you, so they're protected, and you -- you're on the deed so you're protected and you're given a stronger position because you're on the deed. And you're going to make payments to them. Joe: Alright, so that's the top two structures, subject-to and multi-mortgage. Of course, as you go down the structures, you have less and less control of these deals. It doesn't mean it doesn't make sense to do -- multi-mortgage usually makes just as much sense as a subject-to, although I'd much rather see you negotiate a much smaller price when you do a multi-mortgage like that.
Views: 3612 Joe Crump
The "Subject To" Gold Mine -  How You Make Money
 
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http://JoeCrumpBlog.com - Sign up for free real estate investing training with 25 year real estate veteran, Joe Crump. Learn how to build an automated, sustainable, profitable investing business with no down payments and no credit. Discover the most advanced automation software for investors available today at: http://www.PushButtonAutomarketer.com Learn how it will bring you a flood of motivated seller financed leads every single day. Subject To is a gold mine. It’s a beautiful, it’s a beautiful thing. It’s a beautiful structure. When I, the first Subject To I did, it amazed me that I pulled it off. It amazed that anybody would deed their property over to me without me taking over the loan, without me giving them any money. And it happened when I came across somebody who wanted to sell their property but she didn’t have much equity in the property so I didn’t want to, it didn’t make sense for me to buy it as an under market value property, and I said, well, you know, but it also, it had, it was I think it was $120K, I think it had $100K mortgage. It had an $800 a month payment, approximately. It rented for about $1,000 a month. Subject To is what builds your portfolio quickly. The other thing you could do with Subject To’s is you can put them into a Roth IRA. Now, I’ve done that with a few of them, but most of my Subject To’s I’ve kept outside my Roth. The reason you can put them inside an IRA is because they’re nonrecourse loans which IRA will allow you to have them, a self-directed IRA will allow you to put a Subject To into it. Now, you still have the UBIT so you can only get tax free money on money that was made with money that you put in, not with borrowed money. Full transcript & more videos: http://joecrumpblog.com/?p=16297 Six Month Mentor Program: http://www.ZeroDownInvesting.com
Views: 1231 Joe Crump
Does A Signed Lease Option Need To Be Notarized?
 
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http://JoeCrumpBlog.com - Sign up for free real estate investing training with 25 year real estate veteran, Joe Crump. Learn how to build an automated, sustainable, profitable investing business with no down payments and no credit. Discover the most advanced automation software for investors available today at: http://www.PushButtonAutomarketer.com Learn how it will bring you a flood of motivated seller financed leads every single day. Six Month Mentor Program: http://www.ZeroDownInvesting.com Hey, it's Joe. Got another question here. This one is from Basal Akim. "My question, and this is the for rent method," he says, "I'm a beginner. Number one, when the seller and tenant buyer sign the lease option contracts do we have to get them notarized and/or recorded at the county, or is it enough to simply have signed copies in the possession of the three parties." There's nothing that has to be notarized on a lease option. It's the same as a lease. Leases don't have to be notarized. If you record something, it's going to have to be notarized. So if you're buying a property and you want to record a cloud against the title so that your seller can't sell it out from under you, then you might want to have it notarized and then file that at the county courthouse. That's if you're buying. If you're selling you don't want to do that because once, if that person defaults or they don't exercise the option then you've got to find a way to get them off of that title and that means you have to get another signature from the later. So, we don't have them sign the paper unless we're the ones that are buying. We always want to be in control of the deal and in the most control possible. You know, we have to assume that we are the most ethical person in the room and we know that we'll do the right thing, but we don't know that the other party will do the right thing. So we have to put ourselves in control so the right thing can be done in any particular transaction. It also puts the responsibility on your shoulders to make sure you do the right thing. The second question here is, "How exactly do we set up the flow of payments from tenant buyer to me, the investor, to the seller? Do we, for example, have to set up an escrow bank account in our name?" The way, when you're doing the lease option, the way you're making money is, let's say we've got a property. The seller wants $150K for it. You're going to raise it to $155K and you're going to ask for $5,000 as a down payment, lease option fee, for the new lease option tenant and you're going to ask for the first month's rent, let's say it's $1,500. So you're going to get $1,500 plus you're going to have $5,000 from the seller. $5,000 of it goes to you, $1,500 goes to the seller as their first month's rent. You're going to get all the paperwork signed. You're going to have that money wired to your account and then you're going to get the signature from the seller. The seller is going to sign it and then you're going to wire him the $1,500 to close the deal. And that's all that you have to do. You could also get it with a cashier's check. Just make sure that when you get a cashier's check that you take it to the bank where it's drawn against and get cash for it because cashier's checks bounce, too. There's a lot of fraud with cashier's checks. That's why I like wiring funds better. You can also do an ACH if you set up an business account that allows ACH's. You can actually do a direct debit from peoples' accounts. Give yourself a few days before you let them move in to make sure that it doesn't bounce and that it goes into your account. Once it goes into your account and is verified there, then you know that they can move in. But wiring the funds makes it possible for you to do it immediately. So you do need a US account. If you're working from overseas, and I've got a lot of people that have worked from overseas. It doesn't look, I don't know if you are or not, but, if you're working from overseas, you're going to need a US bank account because you're going to need to wire into the, your funds into that account. All right, hope that answers the question. Good luck. To read the whole transcript and more of Joe Crump's articles, click here: http://joecrumpblog.com/does-a-signed-lease-option-need-to-be-notarized/
Views: 1997 Joe Crump