Finding Lease Options in Realtor Listings! – Wendy Patton

Wendy Patton talks more about Buying and Selling Real Estate on Lease Options in Indy and elsewhere.  She isn’t trying to sell you guru abilities, she is actually teaching you.

She speaks about talking with Realtors in Indianapolis and elsewhere. How to qualify Realtor listings and educate Realtors about creative selling techniques in Indianapolis and elsewhere.

Over 35 minutes of class time boot legged(not really) from Wendy Pattons’ Buying and Selling Real Estate Boot Camp… People paid thousands of dollars for this bootcamp, and you are getting a taste of it for free!

If you are looking to invest in real estate in Indianapolis or elsewhere, this is some great info!

Wendy Patton Speaks About Lease Options, Contract for deed(land contract), and marketing for buyers and sellers!

Great interview with Wendy Patton talking about lease options, land contracts(contract for deed). Lots of creative ways to purchase and sell real estate in Indianapolis with little to no money down. Also talking about different ways to market for buyers and sellers.

Wendy Patton started out investing in real estate in 1985. She started out using credit cards, and quickly learned that wasn’t the way to go. She has since published 4 major books about real estate investing, and understands how to buy and sell property in Indy with no money down.

Real Estate Wholesaling.. Get rich quick scheme, or a lot of work?!?

Real Estate Wholesaling.. Get Rich Quick Scheme, or a lot of work?!?

I work with a lot of investors. I have a booth at our local REIA(Real Estate Investors Association), and I am constantly looking for experienced investors looking to buy my properties(yes I wholesale), or newbie investors looking to get their feet wet with private money lending and tutoring.. Point is, I see A LOT of newbies who want to get their feet wet by wholesaling. A lot of these guru’s preach how easy it is to make 5, 10, 50k on a single wholesale deal.. Most guru’s don’t tell you how much work is involved.

Yes, you can make money in wholesaling, but there is a lot of work involved. There is many facets to wholesaling.. It’s not just making lowball offers on houses, and then selling them quick and easily… You are going to need to find sellers(banks/reo properties are easy enough, but there is decent competition there, so don’t depend on these). You will need buyers(Investors who have cash and are ready to go on a moments notice). You will need to know how to be creative and market effectively. Finding sellers and buyers and coming up with the marketing and the marketing itself are all things that are going to take time… Lots of time!!

Let’s run down the main process, as if we already have some buyers(investors) on the line, and we are looking at REO/Bank Owned properties, and since we are in fantasy land, lets say you are a Realtor and can make your own offers(I kid, I kid!)..

On average you will write 20 offers on houses before you will get 1 under contract… So that means you are going to go look at 20 houses(30 minutes a piece), then spend 10-15 minutes a piece writing up offers to submit. Let’s say they all counter offer and it takes you another 15 minutes each to write a counter to their counter, etc So 1 hour per house @ 20 houses = 20 hours per week plus or minus. Add in multiple second or third counter offers and the time limits can go up.

Once you get one under contract it will be time to submit your earnest money and then on to crunch time and getting it sold… You need to be calling all your investors and getting them in to see the house. Once you get one on the hook, you need to get them to give you the wholesale money and get them on the contract. Sounds easy right?

Let’s talk issues….

You don’t have your Realtors license… You have to drag a Realtor to 20 houses a week. You have the Realtor look up comps for your deal. You have the Realtor write up the contracts on 20 houses. You have the Realtor submit and defend all the offers. You have the Realtor submit your earnest monies. You are probably going to have to submit earnest money checks with each offer(don’t worry, they won’t be cashed unless the deal gets accepted). If you can’t close, your Realtor is going to have to fight to get you your earnest money back.

You can’t find a buyer…. Most likely you didn’t get a good enough deal for most investors, or you missed some repairs. You either buy it yourself, or you have to get out of the contract, and get your earnest money back. Be aware that getting your earnest money back might not happen, and in most cases it will take a LONG time to get your money back(2-6 weeks or longer). Your Realtor will be pissed because he/she drug you around to 20 houses, and you couldn’t complete the deal.

You don’t get any offers accepted….. Most likely you are having a problem comp’ing the house, or the repairs. Your offers are coming in way to low, and the bank is just laughing at you.. hehe Your realtor is going to start getting irked at all the work and no payoff.

You find a seller…. You are going to need to spend time with them, hold their hand, explain the process. You may spend 1-2 hours, or more, dealing with a seller to get them to the point of signing a deal with you. Then you are going to have a lot more time holding their hand throughout the process. You plan to hold their hand right?!?! Most people who sell to us are dealing with stressful extenuating circumstances. You need to understand this and help them feel comfortable with their decision. I know this process is about you making money, but you need to understand that you are doing a far better service for the seller. You are helping them offload a burden, in most cases. You may very well have to listen to a 3 hour speech about how the family pet died and it’s been a downward spiral ever since… DEAL WITH IT!!!

20 hours a week to preview and submit offers on bank owned homes to get 1 deal UNDER CONTRACT. Half a 40 hour work week to get 1 deal under contract. Don’t forget the time you will be spending marketing and dealing with buyers and sellers. Don’t forget the time you will be working with your Realtor(if you aren’t one). There is a lot of time involved in wholesaling. Doesn’t stop me, but I don’t have delusions of grandeur. There is no get rich quick scheme in wholesaling… Lots of hard work will pay off in the end..

Fannie Mae makes me laugh.

So I write something like 15-20 offers a week on properties for investors.. Of which we get 2-3 per month under contract… Most of my offers are foreclosures or REO properties. It never ceases to amaze me how stupid their “restrictions” are, or the things that will show up on counter offers.

All of the stuff is ALWAYS in the banks favor. If you need to postpone closing, they charge you $100 p/day, but if they need to postpone closing, they owe you nothing. They wont pay any title fees that a normal seller would. They wont pay for remediation if wood destroying insects are found. Lots of goofy stuff like that.

Anyways, I got a counter yesterday and although I shouldn’t be surprised, it did make me laugh…

Fannie Mae does suck SUCH a good job at running their own business, now they are going to tell me how to run mine?!?

Below is the restriction they put on a counter offer I received this morning.

6) Deed restriction applies to non-owner occupied purchases. Buyer is restricted from selling/encumbering property for more than 120% of purchase price for a period of 3 months from date of close.

hahaha How the heck do they expect to enforce this?  The house in question has EXTENSIVE damage and will require EXTENSIVE cash to fix.. and yet if we go with the letter of the law here.. even though I may put 3 TIMES the amount of money into repairing the house that I purchased the house for.. I can’t sell it for 3 months.. hahaha So my offer on the house in question was $8000. It needs probably $30,000 in repairs. Yet, If I want to sell it in under 90 days, i cant ask for more than $9600?!?!? yeah.. whatever…

When you really look at the facts though.. It really is a non-issue because the house needs so much work, and in this market doing the repairs needed and “selling” it in 3 months would be like winning the lottery, but the audacity for them to tell me how i can run my own business?!?! hahaha

As a matter of principle I will counter and tell them to stick that restriction where the sun don’t shine.. Well, I won’t use those exact words, but you get my point…

20 Quotes from Entrepreneurs!

Found this link on the internet, figured it was a good read and I would repost! 

1. I have not failed. I’ve just found 10,000 ways that won’t work – Thomas Edison, inventor and scientist
2. The only place where success comes before work is in the dictionary – Vidal Sassoon, entrepreneur
3. Entrepreneurship is living a few years of your life like most people won’t, so that you can spend the rest of your life like most people can’t – Anonymous
4. A good idea is ten percent implementation and hard work, and luck is 90 percent –Guy Kawasaki, entrepreneur, investor, author
5. Every worthwhile accomplishment, big or little, has its stages of drudgery and triumph; a beginning, a struggle and a victory – Mahatma Gandhi, political and spiritual leader
6. Failure defeats losers, failure inspires winners – Robert T. Kiyosaki, author, entrepreneur, investor
7. Entrepreneurs average 3.8 failures before final success. What sets the successful ones apart is their amazing persistence – Lisa M. Amos
8. Once you say you’re going to settle for second, that’s what happens to you in life – John F. Kennedy, U.S. President
9. In preparing for battle I have always found that plans are useless, but planning is indispensable – Dwight E. Eisenhower, U.S. President
10. The greatest reward in becoming a millionaire is not the amount of money that you earn. It is the kind of person that you have to become to become a millionaire in the first place – Jim Rohn
11. Some people dream of great accomplishments, while others stay awake and do them – Anonymous
12. Experience taught me a few things. One is to listen to your gut, no matter how good something sounds on paper. The second is that you’re generally better off sticking with what you know. And the third is that sometimes your best investments are the ones you don’t make – Donald Trump, real estate and entertainment mogul 
13. The entrepreneur in us sees opportunities everywhere we look, but many people see only problems everywhere they look. The entrepreneur in us is more concerned with discriminating between opportunities than he or she is with failing to see the opportunities – Michael Gerber, author, entrepreneur
14. An entrepreneur tends to bite off a little more than he can chew hoping he’ll quickly learn how to chew it – Roy Ash, co-founder of Litton Industries
15. The critical ingredient is getting off your butt and doing something. It’s as simple as that. A lot of people have ideas, but there are few who decide to do something about them now. Not tomorrow. Not next week. But today. The true entrepreneur is a doer, not a dreamer – Nolan Bushnell, founder of Atari and Chuck E. Cheese’s
16. I will tell you how to become rich. Close the doors. Be fearful when others are greedy. Be greedy when others are fearful – Warren Buffet, investor and billionaire
17. I never perfected an invention that I did not think about in terms of the service it might give others… I find out what the world needs, then I proceed to invent – Thomas Edison, inventor and scientist
18. Twenty years from now you will be more disappointed by the things that you didn’t do than by the ones you did do. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover – Mark Twain, author
19. There is a tide in the affairs of men
    Which, taken at the flood, leads on to fortune;
    Omitted, all the voyage of their life
    Is bound in shallows and in miseries.
    On such a full sea are now afloat;
    And we must take the current when it serves,
    Or lose the ventures before us – William Shakespeare, author
20. Genius is 1% inspiration, and 99% perspiration – Thomas Edison, inventor and scientist

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