Adam King (MI)

Merry Christmas MC. And thank you for the card. I know...I know...I don't show up here very much, but that doesn't mean I don't love you. ;P Adam

BBBAAAAHHHHH!!!!!!!!! Wow, so THAT'S what happens when you have sun all year round!!!!

Ah yes....Jason and I have SUCH a knack for turning a thread upside down...or, as we like to call it in Texas, tits up! Or is that England? As for the home warranty, you are correctomongo. They are ONLY for certain appliances, electrical and plumbing. (they can differ so do your homework) Insurance for the tenant/buyer sacrificing goats with a blender (after they are "de-horned of course) that's up to what the seller/owner is willing to dish out extra with the insurance guy. Which, is not a bad idea. Call your insurance guy and mention the "goat sacrificing and Harley mishaps and he/she/it will give you some options. Hope that helps, Adam PS Drinking Corona out of a bottle right now. And yes, it's better than out of a can! DOH!!! NO YOU DIDN'T!! He didn't go there did he!?!?!?!

I know, I know...I never call anymore..never write... Anyway, just saw this post and thought I'd bud in. (haven't heard myself talk since....well, earlier today actually) Here's why to use a home warranty. Mr. Seller and Adam dialog.. "So Adam, what you're telling me is that you're going to put someone in the house that has bad credit etc and assign your interest to them/me/Ghandi. What if they trash the place? What if something breaks? I mean, I don't want to be a landlord?" My answer: "Well Mr. Seller, don't make it about "if" per say, make it about "when." Let's just assume they're devil worshiping biker nuts who are going to drive their Harleys into the dining room while sacrificing a goat with a blender. I mean, why not just be prepared with the proper insurance instead of worrying and guessing?" Note: The truth is always in-congruent and leads to the self conclusion of trust by the seller, i.e. use what's against you for you. Then, I tell them about the fire and dwelling policy, making sure the tenant/buyer gets a good renter's policy with at least $3-$5K in liability (in the off chance that it's their drunk goat sacrificing kitchen savvy biker buddies with a lack of "hog riding skills") whom trash the place and start a lawsuit. Then I move into the benefits of a home warranty for the simple fact that it's in the option agreement that they're liable for taking care of the place (for everything un-equitably damageable of course), and that if something goes wrong, they call bob the builder instead of you. AND....not that this is legal advice, which it's not, but it looks better in court if you offered such a thing to your beloved tenant/buyers, even if they paid for it, or you paid for half of it. So, the list of benefits goes on and on.... And then, the holy grail of negotiation sentences to close the deal. "And just to comfort you a little Mr. Seller, I want you to know who these poor, bad credit, socially depressed culinary biker nuts really are. They are YOU in six to nine months from now if you don't move your home!!" Okay, you sign here.....and here.....and...here..and... Deal Closed. Ah....see, that wasn't so bad. I don't post but every two years or so, but at least I haven't lost my sense of humor. BARTENDER!! Corona in a can for all my peeps!! Adam PS I used a Gandhi reference, did you catch it!

Is it mushy time again already? Happy Thanksgiving to you and yours my friend.

OMG Herb was one of my best students. He just emailed me no more than a few weeks ago to discuss becoming an affiliate. Oh man....I don't have the words.

Holy crap I had a birthday? Thanks everyone!

All I know is that this entire thread was yummy.

Ho Ho, Holy Crap that was close!!! Whoh, I gotta be more specific from here on out with what I ask for. That was a close one! Merry Christmas!

If you can separate the parcels, I would find out like yesterday, what the city/town will allow you to do on them. You could LO one, option and sell the other. You could option one, sell the lumber on the other. You could LO one and put apartments, or senior living on the other. Again, what are they zoned for and what can you do with them? There's tons of possibilities. Adam

MC, Thanks man...but sheesh, almost a decade now and no boobie Xmas cards? I mean, where's the "naked" in naked-investor? This is false advertising you know? The wife is behind this isn't she?

I hope these weren't MC's crotch shots! MY EYES MY EYES! Adam PS There ain't nothin better since Corona in a can...NUTHIN!

Very cool stuff fellas! John, was the classroom the limo? Glad you guys had a chance to do this, very cool stuff! Adam

Well, at least my summers aren't so damn hot I have to spend the entire winter re-hydrating! Adam PS You know...come to think of it, why haven't I been banned yet?

I'd say we'd hit bottom by MC's reply, but I think that happened a LONG, LONG, LONG time ago!

Wow, has it been that long? I don't think I'm trailing too far behind... Sheesh...you'd think we'd have something better to do?

Just to through my two cents in here as well. A fire and dwelling policy is critical, but I also make sure the tenant/buyer gets a renter's policy (with my agent) with at least $300K liability. This way if their friends come over, get drunk off of coronas in a can (which they will) and fall flat on their faces in the driveway, (which they will) it can be covered by their insurance. Or, if your property is restaurant/hotel on the bay with rope as a fence and your friend falls into the water after being scared half to death by the waitress who's skin is so badly sun drenched that she looks like leatherface from texas chainsaw massacre...well, you get the picture. Again, just my two cents. Adam PS Remember that one MC?

Chris, It depends on the experience and effort of the person bring the tenant/buyer. I would almost always pay an agent one and a half months rent. Then, if they wanted more I would tell them to sign with the seller and get 3% on the back. But that was a while ago before the bottom fell out. Again, if an investor/agent is marketing, taking calls, showing and sending them over to your LO, then half may suffice. But again, an agent can do this for cheaper. And if you turn that around where you're doing all the work, then $500 finder's, or marketing fee is more than enough. I put up with a lot of that in the beginning and it wasn't fun. I used to pay other investors half when I did all the work. Just listen to your gut. Hope that helps, Adam

I wish. Can't even spell corrrrona.

Agreements can be used to cut people (if you get close enough) and if you print the manual on large, heavy card stock, you could use it as a flotation device. Or, if you used REALLY BIG paper, it could use it as a bed for a small family. And finally, if you use "really thin and soft paper" you could use it as toi....uh, never mind. Hope that helps, Adam PS This is a secret, but I hear it's the missing ingredient in MC's lasagna!

Okay, after reading John's post (which was funny and informative) I'll give my "real two cents". I've been through this a hundred times. The real truth is, if a seller wants you to email you your documents for review, they're not motivated enough, or you're explaining the CA to abstractly. What I mean, is that you're not hitting their emotional buttons the right way, or two, they're just not the right person. Like they say in MLM, you can't say the right thing to the wrong person, or the wrong thing to the right person. On the first call you objective is to get a meeting, or a yes, or both. The contracts don't come out until you've totally gotten on board. Below is an article I wrote about this subject. Hope it helps, Adam _______________________ The Art of Strategic Preeminence You are sitting across from a mother in tears who is trying to sell her house. She tells you that her son has a drug addiction and they are completely broke because of it. She has decided to put him into state funded rehab and then go live with her mother. She doesn’t want the house anymore, she doesn’t want the debt or even the memories. She just wants a new start. You have two choices. One, you follow the step-by-step instructions from your real estate course that shows how to take over the payments. You present the agreements to her and explain that you will be leasing with the option to buy and possibly sub-leasing the property for a profit. She glares over the agreements you’re showing her as if her mind is somewhere else. She half-listens to you as you hand her the pen to sign, but there’s hesitation. She isn’t sure because “there’s so much going on now in my life” she says. I’m sorry she says, but I need some time to think about this. You then part ways uncertain of the outcome. Or. Two, you tell her that you can’t imagine the pain she’s going through because you’ve never experienced it for yourself. You also tell her that you fully understand what her needs are and that you’re there to help make what you can happen. Then, you tell her that because of her situation with her son, you can help, but you’ll need HER HELP so together you can make the house/terms attractive to an end buyer or tenant. And finally, you sympathetically tell her that she’s been through enough and you’ll do all of the work if the two of you can come to an agreement that can benefit both of you. The key here is not making it about you. That, my friend, never works. This is the difference between good negotiating by using what you’re naturally given, (The ability to emotionally relate) or trying to set up a deal with nothing more than logic in the form of someone else’s materials and/or experiences. Did the guy/gal who wrote the course ever meet this lady? No. Did they ever have a deal similar to this? Of course. But the point is that it’s about people, not just numbers and how to set up a deal and you, are always a part of that equation. This is what no instructor, teacher or guru can ever teach you, it’s something you learn and develop as you go.

I disagree entirely with Steve and MC. First, I'd explain the ENTIRE CA system inside and out. (with diagrams and bullet points if need be) Then, I'd send them over blank agreements that were PRO buyer. (Just in case this plan doesn't work ) Then, I'd have a legal disclaimer in the the email that the agreements were copyrighted to the sender and that if the seller used them, you would sue with the full force of the law. Then, I would wait until they blew you off. That's when I would send a friend over that was TOTALLY FREAKING interested in the house with a fake proof of funds letter for $50K down, and see if those suckers use the agreements to try to tie him/her up. And if they did, I would have my lawyer call them, threaten a lawsuit for their life's savings and settle out of court for twice of what you would have made on the deal in the first place. No tenants, no toilets, no headaches. That's the American dream baby. PS Seriously, don't be stupid.

So, you're saying your tenants actually return your calls?

See MC, someone's looking out for ya. Adam PS Need my address for the commission check? PPS Welcome aboard Sean!

Holy crap this is an old post! Well, I reached most of my goals (Became a millionaire "on paper anyway") and then in late 2007 got too big for my britches raised a million bucks and turned into a private lender. Then got CRUSHED! I lost in one month more than most people make in a lifetime. Still stinging FYI. Adam PS I know more than anyone about REI now. And no, not the lesson I was looking for.