Who Else Wants Free and Clear Real Estate Investing Seller Leads?

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We target properties that have been transferred as one of our marketing strategies. You might be thinking…so, what does that actually mean?

It means that a property’s ownership has changed but not through a traditional sale. On the deed, it will usually show a sale price of “$1, $5, $10, $100″ or something like that. Maybe someone inherited the property through an estate. Maybe there was a divorce and one of the spouses deeded the property over.

We have had some good success with the list so far. A surprisingly large number of the calls that we get are from people that own the property free & clear. And you don’t see that much these days.

There are many different types of mailings that you can do as an investor such as foreclosure, burnt out landlord, probate, out of state, etc. We used to mail foreclosure letters and bought plenty of properties from them, but there was so much competition. Each homeowner usually had a stack of investor mailings on their table when we met with them.

The transfer letter has gotten the phone ringing with free & clear property owners without a whole lot of competition. Give it a try. Just remember that repetition is the key. Mailing once is usually not enough for lasting results.

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The Truth Behind the Due-On-Sale Clause : Creative Real Estate Investing

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Buying property subject-to the existing mortgage is a key concept and practice as far as creative real estate investing goes. Most agents, brokers, and other people associated with traditional real estate practices are not privy to this method of buying property. They would probably even tell you that taking over payments on someone’s loan is illegal and will refer you to the due-on-sale clause.

The due-on-sale clause “allows” a lender to call a loan immediately due and payable in full if the title to a property changes hands. They are not required to, they just have the option. Lenders are in the business of making money through interest payments from borrowers. As long as a lender is getting paid their monthly payments, they typically would have no reason to ever call a loan due. I’m not saying that it wouldn’t happen, but I am saying that it is unlikely.

There are some precautions that can be taken to lessen the chance of a loan being called due. One such strategy is to buy the property into a land trust. If a property is passed into trust for estate planning purposes, the due-on-sale clause is bypassed. After purchasing each property in trust, we send the lender a letter from the homeowner notifying them that there is new management. We give them the property’s new mailing address to insure that we get everything related to the property. Even if the lender did a title search at any point in time, it would show that the property was passed into trust.

Even if you buy a property subject-to in your own name or company’s name, just make each monthly payment on time and you are probably good to go. I suggest buying your properties in trust though.

Posted in Real Estate Investment Buying Strategies | No Comments »

Are You Using Google Earth? : Real Estate Investing Tips and Strategies

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For those of you who have never heard of this tool before, Google Earth is a program that uses satellite imagery software to create an aerial map of the entire world. It is truly amazing!

It can be used to scout out and research properties anywhere in the world from the comfort of your own home.

We recently had a lead come in that looked interesting. I knew that the asking price was significantly higher that other homes in the area and it made me curious. I typed the property address into Google Earth and zoomed right in on the property. As I zoomed in closer, I realized that there was a dock in the backyard and that this house was on the water! I called the owner and asked, “What are you doing right now”? I was sitting on the back porch of this home negotiating with the owner within 30 minutes of the lead coming in.

As it turns out, the guy inherited the house and just wanted to get rid of it. He didn’t even owe a thing on this beautiful home that fell into his lap. I ended up buying this home for significantly less than what he was asking and got some owner-financing thrown in for good measure. We were able to turn this lead into an amazing deal that yielded us a couple hundred thousand dollars the day we closed on it!

Download Google Earth for free.

You can practice by Google Earthing your personal residence to see how the program works. You can even use this software now to look out into the universe and zoom in on stars and constellations or to take your own virtual tour of the Grand Canyon! Have fun with it, and I hope it helps your business like it did ours.

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Real Estate Investment Tips and Strategies : Plant Some Seeds

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If you were a farmer, each spring would be a time of planting. Throughout summer you would tend to your crop. And if all went well, you would reap your harvest in the fall.

In order to reap a harvest of good deals and profit in real estate, you have to do the same thing. Plant seeds, tend to your crop, and harvest when the time is right.

Here’s 3 steps to get its done:

1. Tell everyone you know that you are a real estate investor and start talking to sellers. Now your planting some seeds.

2. Follow-up with your leads. Just think of it as if you are tending to your crop. Often times, we make offers and they do not get initially accepted. But the fortune is in the follow-up. We have bought a bunch of houses from sellers’ that we followed up with. Also, by telling everyone you know that you are an investor, you will get some great referrals for contractors, agents, mortgage brokers, attorneys, etc.

3. Now it’s time to harvest. If you got the word out and followed up with your leads, you’ve found a deal and are ready to assemble your team. Use those resources to “harvest the crop.”

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How to Start Investing in Real Estate without Spending Money on Marketing

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In order to find a good deal, you have to spend money to do some kind of marketing, don’t you? Whether it’s bandit signs, “we buy houses” ads, or direct mail, you have to pull out the wallet.

Not true. I have found that in almost any market, there are investors that specialize in wholesaling. You might be asking yourself, “What exactly is wholesaling.” Well, it’s when a property is contracted and immediately sold to another investor.

There are a lot of investors that don’t want anything to do with rentals or rehabs and prefer just to wholesale property. If you are looking for a deal and don’t want to spend money up front, find a local wholesaler. The local REIA (Real Estate Investor’s Association) is great place to start looking.

Posted in Marketing, Real Estate Investment Buying Strategies | 3 Comments »