Law of Attraction Magazine January 2019 - Page 46

St udent Finds an EXTRA $195,0 0 0 on a Deal By Chr is Pr efont aine, Your Smar t Real Est at e Coach! Hidden Prof it s It?s nice to find hidden profits in any business and we love finding them in our real estate deals. As a family business we absolutely love the energy in the office and the flow of deals. We also do deals with students (we refer to them as our Associates) around the Country. This story is about a deal we did together with Dave in Michigan. After doing some expired listing calls (homes that were with realtors that didn?t sell for whatever reason), we received a call back (our expired dialing process is automated and utilizes Sly Broadcast ? you can google that) from a seller who wanted to move to Florida from Michigan but couldn?t sell his home with a Realtor after a year or so.. He had filed bankruptcy a few years ago and had since gotten it discharged but had some challenges. Specifically, the value of his home was roughly $360,000 (he tried asking $370,000 and was down to $360,000 but had already wasted too much time) and he owed $132,500 on his main mortgage but had two liens totaling $195,000 so after a potential offer at some percentage of asking price and then a Realtor fee he had to try to break even to pay off all the loans and liens and cover closing costs as well. To say he was frustrated and tired of the situation would be an understatement. How do you f ind sel l ers wil l ing t o do t erms? One of the biggest questions I get on radio, podcasts and via email is ? How do you find the sellers that are willing to do terms the way you describe? The short answer is you set up virtual assistants to call expireds and fsbos and you get real comfortable following up on those who have expressed an interest. We structured a purchase subject to existing loans and liens contingent upon satisfactory research of those liens with our attorney. If we found out that interest was accruing or major legal fees and penalties were on top of the liens (I actually thought that would be the case), then we had the option to say ? we?re not satisfied with our research and we?re out! What we found out is that the banks had discharged the liens totally already in hthe sellers? bankruptcy (so they wrote them off their books) but they were still attached to the home. Our goal was to negotiate with the bank (same bank for two liens) and get them paid off at ten to thirty cents on the dollar, meaning somewhere $19,500 to $58,500 payoff. Our plan was to break the mold so to speak and break our rule of using cash on deals because that would mean a huge upside by discounting those liens. I had a few conversations with the bank and was Page 50