Transcript 100 Days - Middle Man Income

VIP Seller Benefit Presentation
Home Selling System
Sell in 16 – 60 days or less!
 Fast
 For Top Dollar
 With the Least Amount of
Hassle
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What if you could sell now for top dollar…
Forget the hassles of selling and / or
renting….
And get multiple tax breaks?
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Interested?
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4 THINGS (Yes, That’s Correct – 3) SELL HOMES...
 PRICE - Our Research Analyst will research “listed and sold”
pricing for comparable homes in your area, and we will set a
price that is fair, market supported and attractive to buyers.
 CLEANLINESS - This is an often overlooked, critical
component in selling a home. We will provide you with a clear
roadmap to help ensure that your home is always “ready for
show.”
 MARKETING - Simply put, our Marketing will astound you.
Our Marketing Systems are based on those used by Craig
Proctor, an expert in real estate marketing. Successful and
unique marketing strategies are how we get results!
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CREATIVE FINANCING
Seller must offer their property with creative
financing
NO BANK LOANS
• 90% of any great marketing plan
is pricing your home in the right
range
• The price MUST be below those
homes that offer more features or
your home will sit on the market
until they home sell first
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4.
5.
Drop the price, drop the price, drop the price
and lose money
Wait, Wait, Wait
Short Sale
Rent = “4 letter” word
Sell NOW using a creative exit strategy
Telemarketing
Service
Computers
/Data
Entry
Admin
Sales
Marketing
Craigslist
•Daily Postings
Generate Multiple
Leads and Huge
Interest
•Lead Capture
Follow-up
immediately acted
upon by a
dedicated Inside
Sales Team
•Postings are
Disseminated to
100’s of Other Real
Estate Websites
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Your individual address.com
Sharpconceptsrealty.com
HGTV’s FrontDoor.com
Realestate.com
Oodle.com
Craigslist
Hotpads.com
FreeClevelandHomesearch.com
Coldwell Banker*
Remax*
Prudential*
Homes.com
Realtor.com
Realestate.yahoo.com
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Neighborcity.com
BuyandSellinPGH.com
BobVila.com
Homegain.com
MSN.com
Livingchoices.com
Uniquehomes.com
Trulia.com
Zillow.com
Realestatebook.com
Listings.Listhub.net
Homevalue.com
HarmonHomes.com
HomeFinder.com
ResortScape.com
* Subject to Brokers Reciprocity**
Shows that 90.6% of our clients would come
back to (INSERT NAME OF COMPANY)
What Our Clients Are Saying….
INSERT CLIENT TESTIMONIAL HERE
INSERT CLIENT TESTIMONIAL HERE
INSERT CLIENT TESTIMONIAL HERE
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$150,000 – List Price
◦ Drop price, drop price, drop price!
$132,000 – Sale Price
-$8,100 – 6% Commission to both agents
-$4,000 – seller closing costs
-$4,050 – seller concession 3%
($16,150 – seller costs)
$115,850 Net Check from Title Company
◦ Remember this number because we will come back to it.
What’s owed?
Is this a short sale?
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$150,000 – List Price
◦ Drop Price, Drop Price, Drop Price!
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Decision To Rent It
Market For Sale
◦ Craigslist, Mls, Post, Repost Ads Daily
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Show Property Over And Over
◦ Deal With No Shows And Time Wasters
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30 -90 Day Vacancy Looking For A Tenant
Screening: Credit Verification, Job Verification,
Criminal History, Reference Checks
Then Collect The Rent And Chase People Down
And Hope They Don’t Destroy Your House.
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8% Vacancy Fee
◦ One Month Vacancy
◦ At Least 1 Mo Out Of 12 House Will Be Vacant
◦ Every Month Vacant Is Money Lost
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5-10% Management Fee
◦ Stark Property Management Company Example
 $100 A Mo Per Unit
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5-10% Maintenance Fee
◦ Including
 Water/Sewer/Grass/Snow/ Garbage Pick Up
 Appliances
1.
2.
3.
4.
5.
Rental Agreement
Plus A “Pre-agreed Upon” Sale Of The
Property In The Next 6 To 24 Months
Buyers Put Non-refundable Option Money
Down That They Don’t Want To Loose
Buyers Are Responsible For All Upkeep And
Utilities
Buyers Get Approved For Mortgage And Buy
ASAP.
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Home prices are bottoming out, sellers are
getting realistic that they won’t get the price they
want today, opening a big market for home
sellers.
Sellers who can’t sell are more open to creative
selling strategies
◦ The house is vacant
◦ Carrying 2 mortgages
◦ House is not selling
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Seller maintains on time mortgage payments and
good credit
Banks are still tight with lending criteria, so
there’s an abundance of buyers who want the
rent to own option
1.
What is major damage occurs?
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2.
3.
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Mindset – “Ownership” not renters
Improve property
Why would I purposely damage my own house
Large down payment
Hazard Insurance – landlord and renters policy
Midnight move out
1. They move out with notice
2. Just re-sell it
3. Seller keeps the option deposit
3.
Money collection {Rent and Monthly rent}
1. Angelo Russo, Avalon Escrow Company ($50 a mo)
2. Title company can collect
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3.
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5.
Rental Agreement
a. 1 Year, With 1 Year Option To Continue
b. Utilities Included And Paid By The Buyer
c. 10% Late Fee If Rent Paid After 5th Of Month
Option Money
A. 1-2% Of Purchase Price
a.
Future Purchase Price
Seller Typically Gets Full Asking Price
Rent Credits
A. 10% Of The Rent Rate
B. Incentive For Tenant Buyer To Pay Rent On Time And
Eventually Buy Property Outright
Assignment Fee/ Commission
A. Paid By The Buyer
All Checks Paid “Avalon Escrow”
1. Option Deposit
1. Applied
1. 3% Buyer’s Agent / Assignment Fee
2. Sellers Option Consideration Fee
2.
First month’s rent - $1,250
1. Rent Credit - 10%
1. Applied
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2.
3.
Reduces the Sales Price
~OR~
Down payment
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The title company handles the payment
collection.
Protects the seller and buyer
◦ Makes buyer pay on time
◦ Makes sure seller pays the mortgage and doesn’t
go into foreclosure
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The title company charges $50 month.
◦ Buyers pays for this service
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The Seller Now Has Options.
A Buyer Is Ready To Buy And Move In Now.
We Only Work With Qualified Buyers
We Handle All The Screening: Job, Credit,
Criminal
We Show The Property By Appointment
No Long Term Vacancy
No Inconveniences
Property Is Sold For A Higher Net Profit!
Once
a buyer realizes they can own instead of
rent they will beat down our doors to own your
home.
We tell buyers:
“If you want to tie up this property, you need to put
down $1,000 in earnest money to lock it up. Are you
ready to lock up this property?”
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$150,000 – Future Sale Price – FULL ASKING PRICE
-$3,500 Now – Option Deposit Non- Refundable
-$9,000 Seller Concession 6% To The Buyer
-$4,000 Seller Closing Costs
-$4,500 Sellers Agent Commission (3% Of $150k)
$129,000 NET PROCEEDS From The Sale
+$3500 TODAY From Buyer
$132,500 – NET PROCEEDS In Their Pocket
+ “Margin Over Payment” $150 /Mo For 2 Years = $3,600 Cash
Flow Proceeds
+ Principal Pay down = $200 / Mo = $4,800 Prin Paydown
+ Depreciation = 3.5% Value = $5250 BENEFIT!!!!! Per Year!!!!!!!
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+$144,400 Net Net Over Course Of Agreement
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**All number are approximate and projected. Not Guaranteed!
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◦ $3500 Tax Savings - $10,500 - 35% Tax Bracket (Includes Fed, State And
Local)
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Seller Agrees to Allow (INSERT COMPANY
NAME) to Market Their Property
◦ Sign the:
Letter of Intent
Then we begin immediately to find a buyer!