http://JoeCrumpBlog.com - Sign up for free real estate investing training with 25 year real estate veteran, Joe Crump. Learn how to build an automated, sustainable, profitable investing business with no down payments and no credit.
Discover the most advanced automation software for investors available today at:
Learn how it will bring you a flood of motivated seller financed leads every single day.
This video is titled, “How to Become a Real Estate Investing Deal Engineer and Make Money Off of Every Lead.” One of the goals of the Automarketer and for my business is to always have leads coming in. Leads are the lifeblood of any business. Nothing happens in business until a sale is made. So if you don’t have good marketing, if you don’t have good systems in place to have that good marketing, you’re not going to have a regular pipeline, or you’re not going to have a consistent, reliable source of income. And your business will eventually crash because of it.
So, you’re goal is to have leads coming in all the time. So, as those leads come in you want to have a way to develop those leads. So the Automarketer can bring you leads. You can get leads through other sources, too. Snail mail, through ringless voice mail, through absentee owners, through, there’s lots of different sources of good leads which I’ve talked about in my other systems. But, once you get those leads in you’ve got to develop those leads. Those structures are Subject To, that’s at that top of the seller hierarchy. And if I’m going to be the buyer in the transaction and I’m talking to a seller, Subject To is one of the best ways to buy it because you get the deed to the property. All they do is deed you the property, you start making payments on the loan that they’ve got. You don’t give them money for their equity, you don’t give them any down payment. You’re just taking over the property and making payments on it. You have to make sure you have enough income on that property to be able to pay that mortgage and have a profit. So, that’s the top of the hierarchy and that’s the one that you want, that’s the one that puts you in the most control of any of these structures because you have the deed.
The second on is the multi-mortgage. That’s if someone has a bunch of equity in the property but they still have a mortgage. Let’s say they owe $60K on a property but they want $100K for it. They can, you can take over this first mortgage subject to the existing loan. And then you can do a second mortgage that is between the seller and you for $40K and you can make payments to them. So you’re going to get, they’re going to deed you the property, they’re going to put a mortgage on the property and you’re going to start making payments on the first mortgage. And they’re going to put a second mortgage on. So you just have, still, again, you have to make sure you have enough income on that property to be able to make the payments. And that’s how you decide whether or not that structure is going to make sense for you. And that’ll give your seller their equity and it’ll also get you into a property.
The third type is contract for deed, or, land contract. And that doesn’t transfer the deed like the first two. So you have less control over the property, but you still have control over it. There’s the document between you and the seller. And if you record that document it puts you in more control. So, is you’re buying the property you’re going to make sure you record that document. If you’re selling that property you’re going to try not to record that document because if they default, if the buyer defaults, then you can get rid of them a little bit easier than if it’s on the title.
Full transcript & more videos: http://joecrumpblog.com/?p=16324
Six Month Mentor Program: