We are who we associate with,
and success breeds success.
Ahead our upcoming Agreements for Sale (AFS) Focus Workshop on February 18th, we’re giving you a chance to get to know some our amazing Focus Team Leaders. The hour-long audio recording below is from a breakout session at a previous workshop. It features the background stories of regular folks who are doing amazing things with Creative Real Estate Investment, as well as Q&A with them. These are some of the people who will be helping attendees learn to achieve their financial goals on February 18th in BC. There’s also an outline of the idea behind Agreements for Sale, and why it’s a great Creative Strategy for investing in a down market.
Download the audio file HERE.
(control click or right click + save as)
Outline on Creative Strategies
for Real Estate Investment
in a Down Market
Introduction
Advanced Investment Techniques That Help Sellers Win Too
- Recession = opportunity!
- Reality check
Foreclosure – The Elephant in the room
- Pre-foreclosure
- What can lenders really do?
- Do’s & Don’ts
- Review blogs/podcasts on ‘foreclosure’ and ‘quit claim’
Creative investing opportunities are slightly different in a down market
- Opportunities come from a seller needing to sell
- In our Focus Workshops, we call these sellers ‘distressed sellers’
- In this economy, distressed sellers can be a little different
- It could be you and me, and it could very well be someone in this room
- They are not rubes, or stupid, or incompetents, or addicts! They are a sad result of the economy
- Don’t judge or try to predict their need to sell
- Whatever the reason, down markets produce way more distressed sellers
The greatest success in creative investing comes from a non-predatory approach.
- True helping
- Win-win
Creative Strategies in a Down Market
All strategies have an application in down markets.
We will be looking at each of these strategies from two perspectives
- Opportunity for buyers
- Viable exit strategy for sellers
Agreements For Sale
Overview
- Seller financing
- No need to get a mortgage
- Buyer & seller negotiate a price
- The seller is your bank (seller financing)
Seller still holds legal title
Buyer owns a 100% beneficial interest in the property.
You can use an AFS when
- Seller has clear title
- Seller has a small mortgage
- Seller has a large mortgage perhaps even equal to or very close to the complete purchase price. Most opportunities in this category.
Buyer is not Assuming the Seller’s Mortgage!
Why Buyers Like AFS
- No mortgage qualification
- Little or no money down
- Buyer now controls the property
- Opportunities for: assignments, lease-options, or buy & hold
AFS Buying Opportunities in Today’s Market
- Three income streams: need at least one, two are better
- Cash flow
- Mortgage paydown
- Free / instant equity
- Analyze the numbers!
- You can’t help everyone
Why Sellers Like AFS
- No payout penalties / no realtor commissions
- Widens potential buyer market
- Buyer is responsible for normal ownership costs
- No property management fees
- Allows sale without realtor commissions
- Preserves credit
- Gets rid of financial burden
- Relieves stress “I just want out!”
- Provide exit where none existed
- Win/lose replaced with win/win
AFS Selling Opportunities in Today’s Market
- You are basically the bank
- Negotiate your interest rate
- Negotiate length of term
Rent To Own (RTO) – Property First
- Exit strategy for underperforming properties
- Increase cash flow during RTO term
Vendor Take-back Mortgages (VTB)
- More sellers interested in down market
- Clear title scenario
- Useful where lender has low LTV limits and you have a motivated seller
Agreements for Sale
Focus Workshop
Saturday, February 18th, 2017
Full-day event: 8:30 am to 5:30 pm
British Columbia (BC), Canada
venue TBD
To register, use the contact form below. Don’t wait! Space is limited…