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PeeFox

Try This,...I Think You'll like it !

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All Forum Friends,

 

 

I sure have appreciated, and gotton alot from "Our" Forum,.....Now it's My time to contribute....

 

Last week I did a mailout,.....Only 100 postcards,..But it was selective..

 

I selected an area near where I live, well. a 15-20mi radius. I mailed my pieces out to Homeowners whose property listings had either expired, or had been listed for 6mos or longer. Friday, the mail hit,....and I started getting calls. Over the weekend I picked up "5 Deals".... $1.3 mil worth of Real Estate,...Every House, Great Shape. and in Great Locations.....I'm excited !

 

Here's something I found, ( 4 out of the 5 had in common ) and of which I'm going to Really Emphasize More in My Own Marketing,.....and I think You should consider as well....

 

I found most of my people had hardly any equity left in their house, because they had "ReFinanced" previously,..and taken it out.

 

What they DID HAVE Though,.....was a Hefty "Pre-Payment Penalty" buried in their new loans for the next few years!

 

We're talking $10-$18,000 Pre-Payment Penalities.

 

Michael's Lease Option techniques, ..the SLO, CA,....They're PERFECT for these people,...and it takes Absolutely NO Selling them at all to see the advantages for them!

 

Think of all the people who have Re-Financed and have these Pre-Payment Penalties.....You've got the PERFECT Solution for them...

 

Point this out during your next meeting with a Home Seller,.....You could be saving them Thousands of dollars,.....(not to mention you'll be making thousands of dollars as well)

 

And you'll have them bending over wanting to Kiss MC's GodFather Ring !

 

 

"Try It,....You'll Like It" !!

 

Rick Ward

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Good advice. I just picked up a 36-month CA because of the pre-payment penalty. How did you generate your list and what does your postcard say?

 

Oh and, Rick....you gotta tell us how you came up with PeeFox :angry:

 

Dan

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Dammmn those are some nasty penalties! Unfortunately here in Canada nearly all mortgages are 100% portable, so as long as you move the mortgage to your new house you don't have to pay any penalty.

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Good advice. I just picked up a 36-month CA because of the pre-payment penalty. How did you generate your list and what does your postcard say?

 

Oh and, Rick....you gotta tell us how you came up with PeeFox :angry:

 

Dan

 

 

Dan,

 

PeeFox,...Boy, that's been a LONG time ago...I think it was probably one of those "Warm Tequila Nites" ! ha!

 

I Guess I Really Need to Change That Sometime..... B)

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Rick, great results! And thanks for sharing them. A few questions come to mind:

Your very small mailing was simply to expired listings, or old and soon-to-be-expired listings. Correct? I assume you got this info from a Realtor associate?

Obvious question that the masses are clamoring to have answered: what did your postcard say??

. . .And you'll have them bending over wanting to Kiss MC's GodFather Ring !
Hmmm. . .don't give me any ideas, Rick.

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Rick, great results! And thanks for sharing them. A few questions come to mind:

Your very small mailing was simply to expired listings, or old and soon-to-be-expired listings. Correct? I assume you got this info from a Realtor associate?

Obvious question that the masses are clamoring to have answered: what did your postcard say??

. . .And you'll have them bending over wanting to Kiss MC's GodFather Ring !
Hmmm. . .don't give me any ideas, Rick.

Hi Michael,

Yes, my wife is a Realtor and I got to playing around with the "MLS" the other night, (not my wife! ha!).

Anyway, I just targeted my Zip Code, that's all. I sent out 100 cards, (5 of which came back today as Not Deliverable and Unable to Forward).

I color outside the lines a little, but it was a simple card. It has a little cartoon on the left side, (I thought maybe this would attract their attention). On the right half it says:

 

House Still Not Sold?

 

If 90% of Full Appraised Value Works for You, It'll Work For Me,

and I'd Like to Discuss Buying your House.

 

I'm Talking 90% of Full Market Value to You,

No Commissions

And I'll Even Pick Up Our Closing Costs As Well !

 

Call Me Today !

 

Rick Ward, 303-887-5049

 

 

That's it. Pretty simple, but it seemed to work OK.

Now I've got to get busy and find a Tenant/Buyer for these properties. I'm a little green here, and would certainly welcome any marketing suggestions any of you have found successful.

Tomorrow I plan to visit my Title Company and obtain addresses of "Non-Owner Occupied Home Addresses" (ie, Rental Houses), in the neighborhoods of the houses I have. I have a Card I designed for them, too. I guess I'll also put a little ad in our community newspaper.

I'm going to have Suzanne list "Rent to Own" in the MLS with these properties. I'll be unable to sell them outright because of the prepayment penalties. But of course, in these deals, that's a good thing. Also, I've worked with Realtors who have brought me clients that they couldn't get qualified.

I've never used Craig's List. I remember Bev used them alot. Any ideas there?

I'm pleased to be able to contribute something myself after all the help and encouragement I've received from our Forum, and I thank you all.

 

Rick

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I often say simple is best, and your card is further proof. Thanks for sharing that, Rick.

As for marketing for tenant/buyers, some basics apply. I always start with a Rent to Own sign on the property. It says just that:

RENT TO OWN

123-456-7890

Additional directional signs around the area to direct traffic to the property.

Newspaper ads are still the most effective in my opinion, but also the most costly. If you decide to run with this, push some buttons with the key words: low down payment, no bank qualifying, 50% rent credit, etc.

Flyers around the area won't hurt, either. If there are any apartment complexes locally, their are probably some tenants looking to upgrade to homeownership. Bottom line: get the word out aggressively! This is your payday, Rick. Don't shortchange yourself.

And, yes, Craig's List is a must. You can advertise your properties for free. Do so. And you can also place a free ad similar to your postcards in their Property Wanted section.

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Hello,

 

I am new to this forum. I started reading tonight, I do have some knowledge on Lease Options/Purchase, but curious what CA means?

 

Thank you,

 

Eddie :angry:

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Hello,

 

I am new to this forum. I started reading tonight, I do have some knowledge on Lease Options/Purchase, but curious what CA means?

 

Thank you,

 

Eddie :angry:

Hi Eddie, and welcome aboard. CA is an abbreviation for Cooperative Assignment. You will see them talked about frequently here. It is a type of lease purchase deal where you work with the homeowner to find them a tenant/buyer and set up a lease purchase for them. This is an ideal approach for when you find a homeowner who likes the idea of a lease purchase, but isn't motivated enough to turn the keys over to you and give you control, as in a sandwich lease. The CA allows you to give the homeowner full price and a great deal, while at the same time allowing you to profit, (you keep the option money). You're able to create a deal where there otherwise wasn't one.

If you do a search on the board for CA and cooperative assignment, you'll find much information.

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Hey Eddie. I'm going to go ahead and hopefully save you some time. Check it out here! Saved me about 6 months easily! Not the first course I read, but the first that really made me money, no joke.

 

Late night gurus and bookstore "mentors" aside, this will make you money. Especially if you're relatively new to the business and willing to work hard. UNICEF isn't in the real estate business last I checked. Good luck and let us know if you have any questions! If not new, still the best place I've ever found to ask questions........

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Michael C and Brian,

 

Thank you for the response. I had always heard of it as a Coop Agreement, never had heard CA. I am familiar with the concept, have never done one. I hope to do some of these in the very near future.

 

Thanks again,

 

 

Eddie :)

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Michael C and Brian,

 

Thank you for the response. I had always heard of it as a Coop Agreement, never had heard CA. I am familiar with the concept, have never done one. I hope to do some of these in the very near future.

 

Thanks again,

 

 

Eddie :)

Hey Eddie. Not totally sure on that, but it's the same as far as I know. Honestly, doing CA's are a great way to get started. Not to say that they are only for beginners by any means, but are a great way to generate some fast cash. They are actually the first money I've ever made in real estate that didn't involve getting dirty for months on end.

 

My family used to do a bunch of HUD rehabs and made a lot of money, but spent way too much time trying to get paid. My first deal was a $5k CA that took me about 5 weeks to do, which was 8 weeks after buying MC's course (from purchase of manual to paycheck). Not bad by any standards...........

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. . .My first deal was a $5k CA that took me about 5 weeks to do, which was 8 weeks after buying MC's course (from purchase of manual to paycheck). Not bad by any standards...........
Brian, please read the fine print that comes with my manual. Any deal consummated within 8 weeks of purchase require a 80/20 split with the author. Please forward $4,000 (cash only, large denominations), to my PO Box in Aruba. Thank you. :)

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You need to know your state laws when it comes to prepayment penalities. Most lenders will have a hard and soft prepayment penalities. They can not stop you from selling your house so most of the time there is no penality for selling your house. The lenders main objective is to keep the financing in place without you doing a refinance. I would check your state, here in MN you can only charge a maximum of 3 months interest on a prepayment penality.

 

hth

 

steve

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