Charles's Blog

Charles Parrish - Auctioneer

Charles Parrish (Auction Brokers & Investors United) — Mon, 10 Nov 2008 17:05:40 -0600

The auction method of marketing is a great system for seller and investors. This system is fast and predictable. There are no commissions or settlement costs to the seller. Bidding on properties at auctions is a great way to make some very attractive profits.

www.charlesparrish.com

www.investorsunited.com

www.auctionbrokers.net

A time to look at real estate income from another view

Charles Parrish (Auction Brokers & Investors United) — Tue, 27 May 2008 23:04:13 -0500

It is a sad thing to see real estate agents who were very active in this business now failing due to the "so called" bad market.

It is time for agents to look at alternative methods of making money in this great business. A student I recently trained made over $900,000; another made $1,300,000 and some others earned $250,000 -$300,000.

What I did to help them is to encourage them to break away from what they learned in real estate licensing school about representation of others and earning money in this business.

While many are lamenting the so called bad marked, many others are getting rich, why, I will tell you why, because they changed their way of doing business and their thinking process.

It is time for agents who are making less now than they use to, to change their marketing process.

Agents know their market; they know what is a good deal and what is not. They need learn the Control & Roll process of earning income.

If any one is interested in a great way to change, if asked, I will respond to the following methods of getting back to where the income earners are.

Ask me and I will discuss: Control & Roll, Hybrid Offers, Locator Program, Piggy Back for Profits, The $100,000 Formula, Getting Paid as a Buyers Brokers, Under Ground Tax Sale Profits 365 days a year, flipping notes, flipping contracts and subject to's with delayed settlements.

You do not need to earn income from commissions, consider stepping up and joining the high income earners by controlling real estate for profit without risk.

Agents have an advantage over others because to their excess to comps and their knowledge of the so called market.

Respond with your questions and I will consult with you (free) on how to increase your income almost immediately.

Charles Parrish/Auctioneer

Real Estate Contract Engineering Conference call

Charles Parrish (Auction Brokers & Investors United) — Sun, 14 Oct 2007 18:10:06 -0500

A well written contract offer to control real estate is like a "work of art". A well written contract of sale will speak for you when you are not with it; it will direct settlement attorneys, lenders and will remind the seller what he agreed to do.

Controlling real estate while you are satisfying your investment needs is very important. I want a long settlement date. That is why I use banking days. I always include an automatic extension clause; most things do not go as planned This is a safety value for me to complete settlement searches or to find an assignee.

I love real estate, I just don't want it anymore; I prefer to Control & Roll! Controlling real estate below market value and recycling it within a few weeks, in my opinion, is the absolute highest form of leverage possible and the fastest method to get paid. Usually within 7 weeks. The great part about this is that you never have to own the property.

Every Monday at 7pm (EST) I conduct a teleconference that discusses real estate. This Monday it will be on contract clauses.

The discussion is free, but you may have to pay for the call. Come join me for fast hour of conversation on controlling contract using creative and time tested clauses.

http://www.investorsunited.com/confcall.php

Charles Parrish

Real Estate Conference Call - 15 Questions You should ask your real estate attorney

Charles Parrish (Auction Brokers & Investors United) — Sat, 29 Sep 2007 21:11:45 -0500

Live Conference Call
Monday, October 1, 2007 @ 7:00pm	Topic: "Fifteen Questions You Should Ask Your Real Estate Attorney" Greetings! Tonight Monday, October 1, 2007 @ 7:00pm Live Conference Call Special Guest: Tony Garcia, Assistant State's Attorney This evening, October 1st @ 7:00pm, join us for a live teleconference with Mr. Tony Garcia. Assistant State's Attorney Tony Garcia combined his legal expertise with the lessons he learned at Investors United School of Real Estate to become, not only a very successful real estate investor, but also an IU instructor. Now listen and join in as he explains why it's wise to hire an attorney even if you have a broker, and the fifteen important questions to ask. The call may be subject to long distance charges. To join the call, dial 1-218-486-1400, and enter PASSCODE 34061.

Auction Brokers 6721 Harford Road Baltimore, Maryland 21234 410-426-6000 chuckp116@aol.com

Investing in Real Estate - No Money - No Credit - No Smarts - - !

Charles Parrish (Auction Brokers & Investors United) — Sun, 02 Sep 2007 18:55:39 -0500

Question:

55. How can I guarantee my success in the real estate investing business?

Response:

When I became interested in real estate about 40 years ago, it was not easy to figure out how to get up to speed in real estate investing; those wealthy/successful investors in my community had no interest in helping a newbie like me (I later learned that they really didn't know that much about creative real estate. They just had money, they did their due diligence, they attended foreclose auctions and picked up bargains at the court house steps). Those investors weren't creative, the only skill they had was knowledge of local market values, and the ability to pay cash. What a great formula!

I knew I had to learn about creative real estate techniques, (also known as creative finance or buying property without money or credit) I had to find a way to buy, control and make money in real estate without credit, experience or money. I felt lost and confused about the real estate investing business.

I took every seminar that was advertised, studied real estate books, purchased tapes (they didn't have CD's at that time), calculators, renovation tools, attended auctions, called FSBO's, expired listings and spend thousands of dollars on printing flyers and on postage. I was so desperate to learn and make money in the real estate business that I even became a real estate agent. I thank my wife who put up with this craziness and my passion for the pursuit of real estate profits.

I hope you will not have to go through these same painful activities. I am 64 now and I am humbled and in appreciation of the good fortune I've had in this business. My learning curve was long, but rewarding.

I suggest you look at some of the available courses being sold. Stick with the simple ones; how to find wholesale real estate, how to make offers, creative financing and formulas. Do not get involved with cute formulas and the far out buying techniques. Be a creative real estate generalist.

Find an experience, honest investor in your area. Propose that you will act as a "locater" for him. Develop this person as your mentor; make your mentor an offer; you find bargain properties, help with the due diligence, negotiating offers and perform the necessary leg work. Agree to a fast turn over, take the property to public auction within 3-4 weeks, sell-assign and split the profits. Master this formula and you'll learn fast and build a cash reserve. Make sure you write up a simple agreement that will protect you when it comes time to collect your portion of the profit.

Getting started is not easy, but with personal help and a good system, a newbie can accelerate their learning.

Charles Parrish

Detailed Report: ww.Charles@InvestorsUnited.com Free report in subject line

Leap Frog your wealth in the real estate business

Charles Parrish (Auction Brokers & Investors United) — Sun, 02 Sep 2007 16:11:06 -0500

81. Mortgage broker trying to succeed in this business

QUESTION:

I'm a new loan officer and would like to find out if it is worth going to these real estate clubs to find clients that would need financing for their homes? Or networking with real estate agents? I'm new, young and just trying to make it in the mortgage business...

RESPONSE:

I own a real estate investors club in Baltimore, http://www.mdrealestateclub.com/. There are 80 -200 investors, agents, and lenders who attend the meeting. Some of the members have had bad experiences with mortgage brokers. There are brokers who just can't get the loan done or even return calls. For a great head-start in the mortgage business, start by returning calls and be honest with all your customers and clients.

A professional and well connected mortgage broker can be worth many thousands of dollars in cash flow and equity profits.

Refine your credentials by attending your industry continued education programs, become certified in a few areas of the profession. Learn creative financing, think like an investor, Become an investor, your will learn to develop compassion with them while helping them with financing and closing their transaction. Learn the language of investing.

Offer something FREE; pre-approval, a financing seminar, comparable service. Write an article and offer it free. This is a great way to build a prospect list. Send newsletters. If you are a member of an MLS service, offer to supply expired listings and comps (they'll love this).

The apprentice and experienced investors will appreciate your willingness to give freely of your time to help without expectation of immediate return; they will recognize you as a friendly knowledgeable professional.

Always give more than expected, keep promises.

When working on a hard case, be honest, let your customer know early in your relationship that you may not be able to satisfy their needs.

Cultivate Angels Investors and Hard Money Lenders who are willing to fund all or part of the transactions.

Give your customer practical and creative suggestions:

How to clean up their credit
How to reduce their LTV
Educate them on partial owner financing or contributions and how to ask for it.
How to partner with others to qualfy.
Suggest a hard money lender
Analyze their transaction using an APOD
Explain how to estimate the CAP rate
Suggest they a re-write of their contract offer that would allow grater benefit; possession, a delayed settlement, re-marketing and extension clauses.
Suggest assignment of their contract
Explain blanket mortgages
Additional collateral
Substitution of collateral
Negotiation of points and junk HUD-1 fees
Family partnership

As a loan officer, you will be respected because of your ability to help, to education and to work harder than others in getting the loan done or helping your prospects reach their goal.

Some other marketing ideas; create your own newsletter. Advertise it free of charge. Build a buyer and seller list. Offer creative financing seminars.

-------------------

Free Report ---

Answers to Frequently Asked Creative Real Estate

Income Producing Real Estate Negotiations Questions

Report - 3 & 4 of 5. Charles Parrish: Investors, Auctioneer, CEO of Investors United School of Real Estate, http://www.investorsunited.com/, and Auction Brokers, http://www.auctionbrokers.net/. Visit me at http://www.charlesparrish.com/ .

54. Don't be blinded by incentives when buying properties
55. How can I guarantee my success in the real estate investing business?

56. Needing advice from experienced investors

57. I need help!

58. Recognize and play the game in the many real estate markets

59. You made a light go off in my brain

60. Real estate control concepts and auctions & creative control clauses.

61. Bird-Dog: a short legged beagle with floppy ears and a cold nose.

62. TAX CERTIFICATES, insider techniques

63. Structuring Lease options for tenants

64. Control & Roll concepts

65. Starting your own REIC (Real Estate Investors Club)

66. I would like to be a bird dog

67. An exciting game it is! Real estate can be fun

68. I just have a block, I can't get started

70. New real estate agent

71. Controlling out of state properties

72. Getting paid in advance use a Fiduciary Buyers and Non-Compete agreement

73. Abused Real Estate Agents

74. The seller says, "Make me an offer"

75. Business card, what should the message be?

76. Make the buyers come to you.

77. Attention grabbing letters

78. Everything is negotiable

79. Buying foreclosures at the court house steps

Foreclosure Auctions

80. I need answers, do I need a coach?

82. Wholesale properties

83. Contract Bonuses/Contract Candy

84. Purchasing distressed properties and foreclosures

85. Perceived values of homes on the MLS?

86. How did you get started? Meaning what did you master first?

87. "The mission is the commission; however greed doesn't grow the fruits in our

backyard".

88. Newbie investor needs a private lender

Agents Contribute their Commission with Investors for More Profits. Tip #49

Charles Parrish (Auction Brokers & Investors United) — Tue, 21 Aug 2007 20:36:52 -0500

49 Broker Leverage

When purchasing listed real estate, you can save money by buying with a friendly real estate broker. Ask the broker to contribute their commission toward property repairs in exchange for a percentage of your cash flow or equity profit in the short term.

Notes: This tip is not that easy to pull off, but talk to the agent or broker, let them know that you are a successful investor, and that you are willing to bring them in as a limited partner. Show them how much return they could make by contributing their commission to the transaction. Show them how they could make 20-30% on their commission invested and that you will list the property with them for re-sale.

Agents often think TOO SHORT TERM, they should have confidence in the product they sell.

If agents knew what investors know, they would do more deals, make more money and think out side the box; where ever that box may be!

Charles Parrish

Get Cash from Seller - Make repairs Tip #48

Charles Parrish (Auction Brokers & Investors United) — Tue, 21 Aug 2007 10:06:18 -0500

48 Over-Finance

Need cash for repairs? Consider over-financing. If the Seller needs $100,000, write the contract for $125,000 with an addendum requiring the Seller to reimburse $25,000 to you at closing for repairs. It's borrowed money, but it's green!

It is important to to collect the over-financed amount at time of settlement. It would be wise to have that check made out to your contractor for the repairs and a draw schedule. You should leave a paper trail.

Make all disclosures when dealing with lenders and sellers.

Charles Parrish

Visit - www.investorsunited.com

Equity Partnership Tip #47

Charles Parrish (Auction Brokers & Investors United) — Sun, 19 Aug 2007 21:42:40 -0500

47 Equity Partnership

Borrowing money at a set interest rate is cheaper, but when funds are tight a partner can be an alternative to going into debt. Package your real estate opportunity by creating a detailed investment proposal offering a 20, 30, or 40% equity interest in the short-term transaction. You do the legwork. Make sure to negotiate a delayed settlement with the seller so you have time to secure a partner and wholesale the property for a cash profit.

Charles

LIst More - Make More - Get to Seller's Base Line Need Price

Charles Parrish (Auction Brokers & Investors United) — Sun, 19 Aug 2007 21:36:22 -0500

Real estate really is a very exciting and profitable business with many options for those who practice making offers, and considering all their options.

Real Estate agents and Investors leave commission and profits on the table by not negotiating when the time calls for negotiating. Some fail to find the seller's base line price and do not make a good connection with the seller.

Sellers like to do business with people they like, with people they understand and can identify with.

It is important to focus on the seller and their needs and to help them identify with you. Let them know that you can solve their real estate problems by buying or listing their property.

As an agent or investor, it is important to take it slowly, to be firm and to make a trial offer and to connect with sellers.

AGENTS:

Too often agents list properties way too high. They do so to secure the listing with the attitude that they can always come down later. By the time the seller is sufficiently motivated to reduce their price; the property has become market worn and not attractive. A professional agent will negotiate a price that will attract the most buyers very close or below market value.

INVESTORS:

It is imperative for investors to arrive at seller's base line price before making an appointment to inspect the property.

The question that is often asked is, "How do I take control of real estate, how do I make an offer, how do I control real estate to list or buy it at a price that makes sense, a price that will sell a price that an investors can make a profit?".

Often, sellers will tell an agent or investor, "Make me an offer, and tell me how much my property is worth? Make me a proposal".

DON'T DO IT! Do not make an offer at any price! Sellers know what they want. They will sometimes insist that you make them an offer. They are hoping you will offer more than their unrevealed price.

What ever price you quote to the seller, will be the wrong number, the wrong price! If you offer them more than they expected, you are over-paying or listing too high, if you offer them less, you risk alienating the seller closing off of negotiations.

Sellers have two prices; what they WANT and what they NEED.

The Seller may want $200,000, but they can live with and need $187,500.

Finding the seller's base line price is where your negotiations should start

If the seller will not reveal their asking price and insists on you making an offer, you need to collect more information; ask questions, accumulate more information about the property and the motivation of the seller.

What is the condition of the property, does it need any repairs or cosmetics. (I hope it does, this is a great basis for negotiations.)

Age of roof? (I hope it is old; better for negotiations)
Are there any rental houses in the area? (Tells about values of the area.)
What are properties selling for in the area? (Let the seller help you with comps, compare these answers with his asking price.)
How much cash do you need above your mortgage? What is that balance? (These answers will give you the amount of their equity and how their property compares to others.)
Are you building a property or moving out of the area? (This will give you their time frame information.)
When can I look at the property? (Make an appointment to meet with the seller to inspect the property.)

A great agent will list a property at a price that will attract the most sellers. Great investors will make Trial Offers in order to smoke out the seller's base line price.

Charles Parrish

Interest Free - Control Real Estate Tip # 46

Charles Parrish (Auction Brokers & Investors United) — Sun, 19 Aug 2007 21:03:32 -0500

46 Installment Down Payment

When funds are tight, control property with a contract of sale and pay the down payment in installments over a period of time. Lease or option the property while making the down payment installments. This arrangement is also known as an interest-free or principal-only mortgage.

Charles Parrish

Listen every Monday, 7pm (EST) to a creative real estate interviews, this Monday, 1-218-486-1400, Pass code: 34061

Possible Short Sale Deal Advice Needed - Q & A

Charles Parrish (Auction Brokers & Investors United) — Sun, 19 Aug 2007 13:37:59 -0500

Question:

Possible Short Sale Deal Advice Needed

If the owner has little or no equity then it is a possible candidate for a short sale.

What you offer the bank is dependent on a number of things. What are you going to do once you own it, sell it, rent it, or live in it? If you are going to resale it, what will it sell for?

2nd, what is your cost structure and profit requirement. Each investor has different answers to these questions.

You don't care what the bank will accept; only what you are willing to pay in order to make the amount of profit you want to make.

My humble answer:

As an investor you are certainly challenged when dealing with owners who have little or no equity.

You have NO choice; you need to create it somehow! I see no future in paying retail for real estate unless you are a user of it or you have information of forced appreciation.

If you do not know what you are going to do with the property after you own it, you need to figure that one out. You should have an exit plan and a profit plan.

That projection should be very clear and written down.

As for cost structure; as little as possible, preferably with money from your credit line, or better yet, just control the property until you can exit with cash.

Profit, well as much as possible, but it is OK to leave some juice on the table as long as you come out of the deal with some profit.

There is a great excitement and sense of accomplishment in doing successful transactions.

Understanding the language of real estate is exhilarating.

Understand that banks are not that easy to deal with when it comes to short sales. Short sales are tedious and time consuming as well as frustrating.

You can get the same results by offering to purchase the mortgage from the bank. Offer to purchase the first at a discount.

This process should be conducted with the help of your lawyer or title company. To show creditability, I deposit the amount of my offer with my title company and have my representative contact the mortgagees to make the offers.

If there are two mortgages, offer to purchase the first mortgage and than notify the 2nd mortgagee of your intention to foreclose (As a lender, you will have more leverage with the mortgagee.

If you use this process, make sure the seller is on board with you and that, for a fee, they will sign the deed over to you in lieu of foreclosure.

I hope my comments were helpful.

Oh, if you do not have the money, take an option to purchase the notes at a discount, get the deed and than place a loan on the property to pay off the existing mortgage.

Charles Parrish

Question - Cash Back at Settlement for Buyers

Charles Parrish (Auction Brokers & Investors United) — Sun, 19 Aug 2007 11:21:49 -0500

Question: Cash Back at Closing

My buyer wants cash back at closing to renovate the property, which is fine by me because he's willing to pay me the difference in my tax liability. My question is how do I correctly and LEGALLY write it up into the purchase agreement so that I'm not committing fraud? Thanks.

How much does he want and how much are you willing to give back?

There are several ways to satisfy your buyer:

•1. Give the buyer a check that will be due at a future date after the formal settlement. This could be consideration for completing needed work or reimbursement for closing cost.

•2. The buyer can write a clause in the offer that states that the seller agrees to give the buyer $10,000 at time of settlement to complete the following deferred maintenances.....

•3. Buyer can offer to paint the front porch (Called a "front porch clause") for $10,000, seller writes a check for $10,000 payable to buyer, and buyer endorses the check back to seller as a downpayment on the property. You should retain a photo copy of the check as proof of consideration.

You never want to do anything that is gray, marginal or could be interpreted as illegal.

There are many formulas that can be used to structure transactions legally and creatively; never do anything that is contrary to the law. Always make full disclosures early in your negotiations and keep your word.

Charles Parrish

There is NO such thing as a STANDARD CONTRACT OF SALE!

Charles Parrish (Auction Brokers & Investors United) — Sun, 19 Aug 2007 11:05:17 -0500

Question: Contract of sale form

Does anyone have or know where I can get a California Residential Real Estate Sale Contract?

Thanks in advance.

-Mike

Response: Mike, what is a California Residential Real Estate Sales Contract? I would think a contract of sales is dependent upon the person authoring the contract. In this case it would be you! A form contract picked up at Staples or Office Depot will not have the necessary clauses, nor will any other contract form.

Your contract of sale is personal and related directly to your needs. Write it to speak for you. It will remind the seller your conditions; it will speak to the title company and others reviewing your offer. So author it well.

If you mean a Board of Realtors contract, you can have an agent write an offer for you (usually for a fee). You could also go to a good title company to ask them to write a contract for you. They will often perform this service in return for the settlement at their office.

You can call a local lawyer to write and negotiate an offer for you. It could be well worth the fee you pay to have an expert mediator representing you.

I do not mind paying others to perform services that I elect not to do myself.

I would suspect you are an apprentice investor. If that is the case, the most important start up function would be to make smart offers, well written contracts with all necessary buyer clauses.

A well written contract offer could be considered a work of art.

Charles Parrish

More Free Real Estate Leads - plus get paid for the leads and the business!

Charles Parrish (Auction Brokers & Investors United) — Sun, 19 Aug 2007 10:51:21 -0500

Hundreds of FREE Leads and getting paid for them!

Conduct a real estate seminar. The purpose of the seminar is to train people to become LOCATORS for you as an agent or investor.

I have a powerful PowerPoint on how to become a real estate locator. I charge $100.00 for the seminar. This fee is 100% refundable on their first success referral.

Attract prospects - use this ad. It worked for me. I have over 100 locators calling me all the time with leads (friends, relatives, fsbo's and farming leads)

FREE - Real Estate "Locator" workshop, earn $5,000 -$20,000 referral fees. Net-working with Charles Parrish, Auctioneer/Investor. Auction Brokers. Register now, 443-253-3886, Friday, October 6, 6:30 pm, 6721 Harford Rd. (at Northern Pkw.) Baltimore, Md. http://www.charlesparrish.com/

WANTED: A few well informed individuals interested in earning fees, or equity profits in the real estate industry.

This is an open invitation to participate as a real estate locator.

Income is earned by locating suitable real estate for us to purchase.

TYPES OF PROPERTIES:

Residential, Commercial, Farms, Lots, Waterfronts, Estates, Sub-Divisions, Slow to Sell and Non-Conforming Properties, Tax Certificates, disrepair buildings, Businesses with Real Estate, Options, Assignments, Mortgage Notes (current or in default), Land locked or challenged property, Marinas or nor-performing bank notes.

Terms: All cash (certified funds) for properties purchased. Offer is not contingent on
financing.

Prefer negotiating with owners of: Non-listed real estate, For Sale by Owners (FSBO's), Expired listings.

Real estate brokers/agents and non-licensees are protected by a written Non-Circumvent and a Fiduciary Referral Consultant Agreement. Fees are guaranteed and paid upon settlement.

This offer affords an agent or non licensee, the FREEDOM to freelance investment opportunities.

We act as professional principal buyers and prepare an offer agreement.

OUR ONLY criterion is that the property has a potential of earning a small equity profit.

If there is an interested or questions, contact me.

Charles D. Parrish
CharlesParrish.com
charles@investorsunited.com

Free Real Estate Leads - nOw -NoW -NOw - noW

Charles Parrish (Auction Brokers & Investors United) — Sun, 19 Aug 2007 10:26:27 -0500

Free, Free, Free - Now - Now - Now - Free Leads :

1. Free leads if you can afford to buy a local newspaper! They are called FSBOs!

2. Free leads if you can afford a postage stamp and a phone call!

3. Free leads if you have to ability to WALK AND TALK

#1 - Call FSBOs from the newspaper - get to the bottom line quickly by asking a few qualifying questions and making a Trial Offer.

#2 - Call and write to Expired Listings.

#3 - Ask everyone you see a question; "Excuse me, I am a Real Estate Agent, do you know anyone who would like to sell or buy real estate"?

Go back to the basics! This stuff works!

Charles Parrish

Find a Co-Borrower Tip #44

Charles Parrish (Auction Brokers & Investors United) — Sun, 19 Aug 2007 09:58:35 -0500

44 Find a Co-Borrower

Even credit-poor individuals can secure bank financing by finding a co-borrower with good credit. Deliver a formal investment proposal regarding your real estate opportunity to interested parties. When you find a willing partner, take the opportunity to build your credit by asking them to cosign on your loan. Conduct the transaction, cash out, pay off the debt (and your partner), and enjoy your improved credit rating!

Charles Parrish

The Most Creative Real Estate Technique ever published to Control Properties Tip #45

Charles Parrish (Auction Brokers & Investors United) — Sun, 19 Aug 2007 09:53:45 -0500

Take your time when reading and understanding this powerful Tip #45.

45 Pay at Closing

To create a valid contract without a significant deposit, offer both negotiated funds and check funds. "An initial deposit of $50 in cash will be paid today to Seller. Within 5 business days, Buyer will deliver to the title company a check for $5,000 to be held until Closing." The $50 assures a legally binding contract, and the check is to be held (not negotiated) until closing.

QUESTIONS

How would you use this tip to your advantage?

Why do you think I suggest that this is a very powerful tip?

Can this tip get you in trouble? Why?

Charles Parrish

Listen every Monday, 7pm (EST) to a creative real estate interviews, this Monday, 1-218-486-1400, Pass code: 34061

Co-Sign for Owner to Close the deal - to #43

Charles Parrish (Auction Brokers & Investors United) — Sun, 19 Aug 2007 00:43:28 -0500

43 Co-Sign for Owner

When a seller needs money but is credit-challenged, consider co-signing for a loan for him. In exchange, ask the seller to add your name to the deed. Take a buy out option and offer one to the seller. Verify that payments are made by having the seller send you monthly payment receipts. If the seller defaults on the loan, exercise your option and buy him or her out.

Listen every Monday, 7pm (EST) to a creative real estate interviews, this Monday, 1-218-486-1400, Pass code: 34061

Charles Parrish

Offer an Option - tip #42

Charles Parrish (Auction Brokers & Investors United) — Sun, 19 Aug 2007 00:39:49 -0500

42 Offer an Option

When the seller needs a little cash but wants to stay in the property, offer an option to buy the property at a set price within a period of time. Have a title company complete a title search and judgment report, and record your option to protect your interests. Begin making small monthly or quarterly option payments to the owner. Sell your option for a profit.

Listen every Monday, 7pm (EST) to a creative real estate interviews, this Monday, 1-218-486-1400, Pass code: 34061

Charles Parrish

#41 Sell an Option

Charles Parrish (Auction Brokers & Investors United) — Sun, 19 Aug 2007 00:32:10 -0500

41 Sell an Option
If you are short on funds, sell an option on one of your properties. Collect an up-front option payment plus monthly residuals. Include the option to buy out the option for a set price at any time before or after the option is exercised.
Listen every Monday, 7pm (EST) to a creative real estate interviews, this Monday, 1-218-486-1400, Pass code: 34061

Charles Parrish

#40 Hybrid Offer - Cash Flow System

Charles Parrish (Auction Brokers & Investors United) — Sun, 19 Aug 2007 00:28:38 -0500

40 Hybrid Offer

When your intention is to "Control and Roll" (flip, resell, recast, wholesale, recycle, etc.) and the seller is stuck on a higher price than you are willing to pay, make a hybrid offer. Offer a lower sale price, plus a portion of your profit upon resale within 90 days. You'll pay to advertise the property, so the seller has nothing to lose. Give the seller a written pledge to pay the portion of your profit, and call it your deposit. Assign your contract before closing.

Listen every Monday, 7pm (EST) to a creative real estate interviews, this Monday, 1-218-486-1400, Pass code: 34061

Charles Parrish

Seller Pays Buyer - Tip #38, Seller Participation #39

Charles Parrish (Auction Brokers & Investors United) — Sun, 19 Aug 2007 00:23:32 -0500

38 Seller Pays Buyer
That's right. Sometimes, real estate owners believe that their property is not an asset but a liability. Ask the seller to write you a check to take the property. If their answer is "how much?", then you might just get a free house - and cash. This technique works more often than you think, especially when the numbers are tight. You never know until you ask.
39 Seller Participation

You may be able to acquire real estate with your future profits, and no time machine is necessary! As a down payment, give the seller a written pledge to assign all or a percentage of future cash flows for a period of time or a percentage over $X if sold. "As consideration, buyer hereby pledges to pay seller 20% of net income from the Property for the next 3 years."
Listen every Monday, 7pm (EST) to a creative real estate interviews, this Monday, 1-218-486-1400, Pass code: 34061

Charles Parrish

Real Estate "Vertical Break Up" - Tip # 36 - Land Sale Lease-back - Tip #37

Charles Parrish (Auction Brokers & Investors United) — Sun, 19 Aug 2007 00:16:31 -0500

36 Vertical Break Up
Break the purchase price in two: one price for the building and another for the land. Offer to buy the building for cash, and to set up a Ground Lease to lease the land from the seller for a specified amount and term with a balloon purchase payment in the future. Negotiate a pre-payment discount and consider paying it off early
37 Land Sale Lease-back
For a no-money-down transaction, set up a Land Sale Lease-back. Before closing on an investment property, find an investor to buy the land without the building and lease it back to you for 20 years at an attractive yield. Build into the ground lease an option to renew and a pre-payment discount. At closing, the price of the land is paid to the seller by the investor, and you pay the rest with bank financing. Make sure the building income covers both your mortgage and ground lease.
Listen every Monday, 7pm (EST) to a creative real estate interviews, this Monday, 1-218-486-1400, Pass code: 34061

Charles Parrish

Credit Security Deposits Tip #34, Seller Deposit Credit, Tip #35

Charles Parrish (Auction Brokers & Investors United) — Sun, 19 Aug 2007 00:11:05 -0500

34 Security Deposits

When rental property is sold, security deposits are credited from the seller's proceeds to the buyer at closing. Informed buyers can structure a no-money-down transaction by allowing the seller to walk away with their entire expected profit in exchange for a down payment credit. Have the seller write you a check for the security deposits, then endorse the check back to the seller. Make it legal by opening an escrow account for the security deposits after closing.

35 Seller Deposit Credit

Sometimes buyers ask sellers to place earnest money in escrow to back up a warranty or when the seller must perform tasks that if not completed could cause the buyer damages. Ask the seller to make an earnest money deposit. Then, instead of both buyer and seller making deposits, call it a wash. Each writes a check to the other and endorses it back, or the parties can simply put up $1.00 each for consideration.

Listen every Monday, 7pm (EST) to a creative real estate interviews, this Monday, 1-218-486-1400, Pass code: 34061

Charles Parrish