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Home » Resources » Articles And Reports » The Gold Club Weekly Report » “New Deals for the New Year: An Excerpt” by Ron LeGrand

“New Deals for the New Year: An Excerpt” by Ron LeGrand

Let’s look at an example:

A seller calls you about a house on the river worth $750,000. It belonged to her mom who recently passed away and left it to her brother. It’s now vacant and has been on the market with a Realtor for six months at $699,000. The listing has expired and the sellers who live many miles away are trying to decide whether to relist. They would take a deep discount for cash and tell you so in a motivated voice. In fact, before you can get off the phone she indicates any reasonable offer over $500,000 will be seriously considered, but she doesn’t want anyone living in the house and wants all cash.

You Offer

$500,000 Option only, three-six months, no risk, all cash.

$100 Deposit (tie up with an option agreement)

You Put it on the Market

$650,000 with a “desperate seller” sale to attract attention from owner occupant bargain hunters. One shows up with $200,000 but needs owner financing for two years to qualify. They can pay $4,000 a month until they do.

Here’s the Beauty of Terms

The beautiful thing about these deals is that you can negotiate with a seller to change your original terms when you locate a potential buyer. A buyer with cash in-hand is a strong motivator for a desperate seller to make concessions and discount the price so they can unload the house. Remember, a motived seller is one that wants to get rid of the house as quickly as possible.

So, you change the terms and present the seller with this:

$500,000 Price

$50,000 Down

$450,000, $2,000 a month, three year balloon, first payment due three months after closing

You then go back to the buyer and tell them you can get the deal done at $700,000.

So, at the end of the deal, here’s the situation:

You Buy With Owner Financing

Price: $500,000

Down: $50,000

Balance: $450,000

Outgoing Payment: $2,000 PITI

You Sell With Owner Financing

Price: $700,000

Down: $200,000

Balance: $500,000

Incoming Payment: $4,000

You Get

  • $150,000 profit now
  • $2,000 every month
  • $50,000 when paid off plus potential discount from seller
  • One or two months $4,000 income with no outgoing payment

Just get it under contract from the seller and make it perfect when you find a buyer!

Ron’s going to cover deals like this and more Terms information in a FREE online video training series cut straight from his new Terms course. Only those that opt-in to receive those lessons will get them, so head over to PrettyHouseTerms.com and sign up for your free training now!

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3 Responses to “New Deals for the New Year: An Excerpt” by Ron LeGrand

  1. Darren Dixie says:

    this is a great example. I wish i would have attended the new terms class. Thanks for the info Ron.

  2. Chyanne Ford says:

    I love this.

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