How would you like to have an UNLIMITED SUPPLY of cash to buy homes??

21 Quick Cash Options

Before using other people’s money check with your attorney as to the specific laws, procedures and paperwork used in your state. This E Book is for information only – on how countless others have used these options to buy real estate and gain tremendous wealth.

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The Art of Getting Money For Your Real Estate Deals
Or Lessons I used from Ron LeGrand
After mastering this package you will say “I CAN DO THIS!” If I could prove to you that any one technique of the 21 could bring you $5,000 to $30,000 this month, would you do it? You need $4,000 to take over a killer deal. Where could you get the money before the deal dies? Your lead generating machine brought you a motivated seller that needs $40,000 on a house that is worth “as is” $80,000. Now what are you going to do?

The Art of Getting Money is just that – an art.
Every renowned artist in any field got to his or her position through mastering the techniques of their field

Expect three results from the Art of Getting Money:
1) You can quickly become a skilled, competent real estate entrepreneur to your Private Investors. 2) You can quickly develop the confidence and poise to attract an army of investors who can’t wait to give you the money. 3) You can become powerful in your presentation and develop the follow through so your army of investors keeps coming back for more.
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Once you gather Private Investors you’ll set aside the other 20 ways to obtain money. This is by far the easiest and the quickest way to build wealth for yourself while building wealth for a very satisfied investor. One of the tried and proven techniques of profiting through real estate investment is a well known three-step process. The steps to this simple process are: STEP 1 - Buy a piece of real estate under the most favorable terms and conditions possible with as much leverage (OPM-other people's money) as you can. STEP 2 - Fix it up or improve it in some way. This step could involve anything from paint and elbow grease to converting an apartment complex to condominiums or timeshares. STEP 3 - Sell or finance the real estate in some way to be able to compound profits and find more real estate to follow the same three-step process.

OK, that’s great! But where do you get the money?
Later, we will go through the usual suspects of where we all go to get the money. I list them because they are easy to do but they are not the best. I saved the BEST for last. My style is like many of you: I imitate the methods of others and gradually build up confidence that something is going to work for me. I had many houses before I met Ron LeGrand but I had hundreds of wonderful deals after I met him.

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The first 20 sources of “getting the money!”
Here is where I started, where Ron did. Here is an article I received early on from Ron and it gave me the knowledge and therefore the courage to go get money from not only mortgage brokers but also the other categories I am going to list.

Mortgage Brokers & Short Term Money
The best place to get short-term money is through mortgage brokers, who know what will work and what won't. They know what they can get on the market today. Some will have access to private funds that require no qualifying by the borrower. Equity in the house is the only concern. Brokers can be a valuable asset. Remember, when I started I had no credit. I had no choice but to use whatever funds where available, so I found a broker who would loan 50% of the appraised price regardless of my financial condition. The cost was high, but the rewards made it worth it. He charged me 10% of every loan I made, and I paid 18% interest. I know this sounds high, but I soon learned it wasn't the cost of funds that count, but the availability of them. Because I had access to these funds, I simply bought up junkers with them and made thousands of dollars in profit on each house. Let me ask you a question. Would you rather pay a mortgage broker 10% of your loan or pay a partner 50% of your deal? Tough choice, isn't it? Mortgage brokers work on a commission. They do not get paid unless you get paid. If you use private money, get used to the idea of paying high points and consider it a cost of doing business. We can get a high interest loan and still make money.
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Remember, it's not the cost of the money that matters. It's the availability that counts. When I first started, I borrowed on 76 loans at 18% interest, 50% loan-to-value ratio (LTV), 6 months interest prepayment penalty, 7 year balloon payment and 10 points up front to the broker. And I still made money on every single one of them! How It Works If the house needs repairs, you may not get all the money at once. Some of it may be escrowed for repairs. For example, suppose you get an offer accepted for $15,000 cash on a property whose value after repairs is $45,000, and the "as is" value is $35,000, and the estimated repair costs are $4,000. We know we can get a loan from a private lender for 50% the fixed up value of the property.

Value After Fix Up $45,000 As Is Value $35,000 Repair Estimate $ 4,000 Maximum Loan Amount $22,500 Cost of the Loan $ 3,000 Net From Loan $19,500

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The problem is that the loan is based on the after repaired value. The broker will write the loan for $22,500. You'll pay the cost on $22,500, and you'll start paying interest on $22,500 as of that day. But the broker will escrow 50% of the difference between the "as is" value ($35,000) and the "repaired" value ($45,000). The escrow amount would be 50% of the $10,000 difference because it is a 50% LTV loan. So $5,000 will be held in escrow until the work is completed. After the work is done, the mortgage broker will send an appraiser out to look at the finished house and, if all the work is completed, he will give you the $5,000 held in escrow. In the above example, we needed $15,000 cash to buy the house and $4,000 to repair it, for a total of $19,000. But we are only going to get $14,500 from the loan at closing, so we would construct our offer this way: Q: "Mr. Seller, I'm going to give you $15,000 for this house. I'll give you $10,000 at closing and $5,000 within 60 days. Will that be alright?" A: "Yes. That would be OK." To make this work, the seller will hold a second mortgage for 60 days because we obtained the first mortgage from a private investor through the mortgage broker. This is known as "subordination" and is a useful tool for any investor. This way, we are fully protected. We would get $14,500 from the loan proceeds, give the seller $10,000 of it, and still have $4,500 left over for repairs. Since we only need $4,000 for the repairs, we get to keep the extra $500.

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Generally, the money mortgage brokers find comes through private individuals. A private investor is very different from a bank. There is none of the usual verification ordeal. The only verification is the value of the property. You do not need good credit, these loans are not reported on your credit report, and there is usually no qualifying. They don't care about your personality or personal history. Their only consideration for the loan is the loan-to-value ratio. The length of the loan may vary but, generally, they will amortize the loan for 15 years and call it due in a balloon payment in 5 years or less. Private short term money like this is very valuable to us as investors. This is the kind of money that can make you rich!
Ron LeGrand

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“Show Me The Money”
Family and Friends Banks Private Lenders Mortgage Brokers Mortgage Bankers Credit Cards Sell off part of the property Refinance another property Borrow against life insurance Borrow against stocks Personal Loans from bank Home equity loan (use caution) Add closing costs into mortgage Give something in lieu of cash (car, boat, stock) Escrow, advance rents, etc. as part of down payment (caution) Trade equity in another property you own for down payment Trade for anything you have that they want Sell a mortgage at a discount

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Where to Locate Cash For Your Deals Even though you want to buy with virtually no cash out of your pocket, there may be times when you will have to have some cash to pay closing costs on the transaction, pay for renovations that need to be done, or just plain put in some cash to show good faith on the purchase. Here are some places you may be able to find cash. 1. Family and Friends: This could be a way to lose friends or alienate your family, but it could be a source of cash. You’ll want to treat them like any other business partner by giving them a mortgage on the property being purchased or even part of the profits. My “very conservative” mother and father watched my growth in real estate for about 5 years until my dad finally said “How much interest would you pay me if I invest?” I said “15%”. He said “How much do you need?” He had been investing in Ginnie Maes, REITS and other low interest loans. After my mother and dad invested and spread the word how great it was, my brother and sister, in laws, nephews all wanted to invest the same way.

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2. Banks: Good if you have good credit and you want to put up with their nonsense and their slowness. You can forget about using them to increase an existing mortgage to give you 100% leverage. They tend to shy away from that type of deal. You can quickly get your limit of HUD repossessions and VA foreclosures by having good credit and dealing with a bank. It helps to have a good real estate agent who has connections with a flexible bank that understands HUD and VA financing. My wife and I quickly purchased 10 houses this way and used them for rentals. That’s the way we started in real estate. It was good cash flow but we soon realized that it was taking way to long to build wealth. Then we met Ron LeGrand……….

3. Private Lenders: Quite often, private individuals will place ads in various periodicals offering mortgage money, even second mortgages. Be careful if you use this alternative. You don’t want to end up with a loan shark that makes life impossible for you until you lose the property. Check them out carefully before signing up for a mortgage. Horror stories abound about Private Lenders. The ones we worked with were OK but expensive. High Interest rates, points up front, prepayment penalties on the back end. They control the money and they make the rules. If your private lender has a background as an attorney or an accountant, have your attorney check everything out before, during and on the closing of the deal.

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4. A Financing Trend: Some lenders are now offering you a mortgage at up to 110% of the appraised value of a home. How can they do this? Notice I said, “appraised value”. The appraised value on real estate is usually somewhat less than the actual market value of the property. If the home would sell for $150,000 but the appraised value is $110,000 the lender will offer a loan at 110% of the $110,000 appraised value or $121,000. This is still about 20%less than the fair market value of the property.

Refinancing our lake home this way freed up a lot of cash to go buy several “killer deals”. When we sold our home 5 years later it had gone up in value $50,000 over our loan balance. Remember, this is your vacation home. Your family will not think much of you if you screw this up and they lose out going to the lake.

5. Mortgage Brokers were mentioned earlier. Although they will charge a modest fee for placing a mortgage for you, they have continual contacts, and a track record, with several lenders and can often get you a deal that you could not find on your own. This is an easy way to get started with Private Investors. Watch your mortgage broker work through your mortgage, ask a lot of questions. Chances are the mortgage broker is dealing with the same kind of private investors you will find on your own.

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6. Mortgage Bankers: Mortgage bankers will tie up large sums of money (maybe millions of dollars) in mortgage commitments from one or more lenders. They are playing the odds that interest rates will increase and they will have locked in mortgage money at a rate lower than the current one. If they guess right, they will have mortgage money available at less than you can obtain at a bank on your own. One mortgage banker offered a $800,000 credit line for us to go out and buy houses at a 70% LTV. He was happy to have the difference in the 12% we were paying him and the 7.5% rate he was paying his lender. It worked so well that after a couple of years he offered $400,000 more.

7. Credit Cards: You may have a large cash reserve available to you on one or more of you credit cards. One no money down guru suggests this may be a place to borrow money with no qualifying. The problem is, you may be paying 18 to 24 percent for the use of that money. I had a deal where I had to move fast. The seller was willing to walk away with $3,000.00 cash and I would take over and assumable mortgage. The spread on this property was over $30,000.00. The seller was leaving the next day and he wasn’t coming back - ever. I did a quick title search. Title was clean except for the assumable mortgage. I met him the next day and gave him the $3,000.00 in exchange for the warranty deed. The fastest way to get cash was with a credit card. 45 days later the new buyer completed financing and I made $30,000.00.
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8. Sell off Part of Your Property: If you are buying an investment property that is on some acreage, or even a double lot, you may be able to sell off a portion of the extra land in order to generate the cash you need to purchase the property. If, of course, you buy a home and it sits in the middle of a double lot, this technique will not work.

Several times I split off properties and generated cash I needed to make the purchase. Warning: be sure you can split off the property. Be sure you can sell why you split off. Do your homework ahead of time. Make sure there isn’t an underground drainage going through the middle of the property.

9. Refinance Another Property: If you own another real estate property with a considerable amount of equity, it may pay to increase the size of the loan on that property to generate cash for the second property. Those funds, by the way, are usually tax free. In a few years you will have several of these types of properties that you can do this with. At that point you probably won’t have to if you keep growing in the Art of Getting Money.

10. Refinancing of Your Home: In Number 9 above we discussed refinancing another property to obtain tax free cash for another investment. You need to carefully think twice before committing your home security to an increased mortgage. Most people consider this their “safe harbor” and do not want to risk it.

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11. Borrow Against Life Insurance: If you have been making payments for a long time on a “cash value” type of life insurance policy, you have no doubt built up a sizable reserve account. You can borrow this money at a very low rate of interest. Chances are the insurance company is only paying you one to three percent interest for the use of the money you have invested in that policy. Keep in mind that if you borrow against your cash value policy; you reduce the benefit that will be paid if something happens to you. Most experts in the field suggest purchasing lower cost term policies rather than cash value policies. They do not build up a low interest paying residual, but the offer what you purchased the policy for: an instant estate if something happens to you.

12. Borrow Against Stocks: If you still have a stock portfolio with a considerable amount of value, you can borrow against that stock. In fact you can borrow more against the stock to buy real estate than you can to buy more stock. It is a good source of instant cash. Just be sure to leave sufficient value in the stock so that if it goes down you will not have to come up with enough cash to cover the loss.

13. Personal Loans from Your Bank: If you have a good credit rating and track record with your local bank, you may be able to borrow on a personal loan basis. Remember, this is like a mortgage, it must be paid back and must be considered when calculating your monthly payments to cover the debt service (loans). You can use a line of credit, if you have one established with the bank.

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14. Add Closing Costs into the Mortgage: Get the seller or the lender to include your closing costs in the mortgage. This reduces your cash requirements. On all of my HUD and VA home purchases all the closing costs were included in the mortgage.

15. Give a seller something in lieu of cash. Perhaps he admires a boat you have that you were planning on selling. You can barter with anything you have of value that you want to use and he would like to have. It may be a car, stocks, etc. The illustration on the video of the seller taking our Beech Bonanza instead of $25,000 cash down payment is a perfect example. This killer deal enabled us to take the money made and step up to a newer and faster Beech Debonair.

16. Using Security Deposits and Advance Rents: When you buy a property that is rented already, such as a small apartment building, you will receive credit for advanced rents and security deposits that have been collected. This reduces the amount of cash you need to close. Caution: Remember that these advanced rents and security deposits really belong to the tenant and not you. They will reduce your cash outlay at closing, but when the tenant is using his or her advanced rent for the month this means you will be collecting that much less rent money for the month. When a tenant moves out, you will have to return all or part of the security deposit. In other words, you may have the use of those funds at closing, but you will have to reimburse them to the tenant at a future date.

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17. Trade Equity in Another Property: If you own another property, you may be willing to trade your equity in that property for equity in the property you want to purchase.

18. Sell a Mortgage at a Discount: If you own a mortgage, you can find a buyer who will purchase it from you and give you the cash you need. The mortgage buyer will expect to purchase the mortgage at a discount. For example, he or she will offer you $10,000 for a $15,000 mortgage. This greatly increases his or her actual interest rate over the rate that appears on the mortgage note.

19. In short, use your imagination if you are short of cash. You just may locate a wealth of valuable sources of funds you never thought about. You never know what a seller is willing to take, other than cash, if you don’t ask. The answer will often surprise you.

20. What do you do if the seller changes his mind and does not want to carry a mortgage on the property after it has been signed and agreed to carry it. One possible solution is to find someone to buy the mortgage from him. Suppose the seller wants to sell the $22,000 note he was going to hold. A buyer is located that buys mortgages, including second mortgages. There is one catch. The buyer will not pay the full $22,000 for it. He will buy only at a discount…say 25%. He is willing to pay the seller $16,500 for the mortgage. The seller may be willing to accept this amount just to get cash out of the deal. The buying and selling of contracts and mortgages at a discount was a huge part of our business for several years and brought in a tremendous amount of money.

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Ron says “The cost of Education is cheaper than the cost of ignorance”. So I never hesitate to recommend all of Ron’s courses to anyone. The sooner you take them the better off you will be.

21. The Magical World of Private Investors:
Once you start using private investors your money problems will be over. The benefits of using private investors: - No down payments - No points to pay like you have with mortgage brokers - Reduced closing cost - None of your own money needed - No prepayment penalty

'The less you do, the more you make.' Ron LeGrand

You Can Get All The Money You Want From People, Not Banks... And Get It Faster, Easier And There's No Limit To How Much You Can Borrow.

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3 Steps To All The Money You Will Ever Need
1) Master the basics of Real Estate Investing so you know what you are talking about. 2) Ask the Magic Question to Potential Investors: "Do you have an IRA or any other investment capital that's not getting you a 15% return safely?" These magic words will get you all the money you need assuming you ask at least some people who have money to invest. 3) Develop Your Credibility Package: To answer the question - Why should anyone invest with you?

You will know immediately if they have any money they might lend. Remember, people are looking at you today, tomorrow and next month. Develop a consistency in your real estate investing that shows success. Have an Investor Luncheon - invite 5-10 people.
Better yet, have your current investors bring their friends to the luncheon. My 1st Investor Luncheon brought in over a Million Dollars.

Are you still shy? Then have a “No Luncheon -Investor Luncheon.” Set up a CD or cassette tape
explaining in a powerful way your programs. Make this CD or cassette tape the highest quality – it may be the only chance you get to make a first powerful impression.

Both techniques are covered thoroughly in the Learn and Live Series on Private Investors – Order your package today!
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Introduction To Magic Letter #1 That Brings You Millions of Dollars From Your Private Investors

YOUR LETTERHEAD
December 23, 2004 Mac RE: Upcoming investment opportunity

Dear Mac :

2910 Lincoln, Travis City
This is a great 2 Bedroom ranch home with a full basement and a nice yard and a one car detached garage. We are buying this house from a lady who has recently had to move into a retirement home. Her daughter is handling the sale of the property and they needed to sell in order to qualify for a government assistance program. We are closing on this property in mid January. We will be repairing the property, including new carpet, paint and updating the bathroom. After these repairs, we will sell this house for $64,900 on contract and provide another family with the opportunity of home ownership. Please consider investing $35,750 or 55% Loan To Value. Your monthly “interest only” payment is $446.88. At payoff you will receive a three-month bonus ($1,340.64!). You definitely need to consider investing with us on this one! Sincerely,

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Introduction to the Magic Letter #2 That Keeps Your Private Investors Coming Back For More
June 3, 2004 Harold M

RE:

1494Ogden pay-off with three month bonus

Dear Harold: Please find two checks enclosed. One is your principal back on 1494 Ogden and the other is the three-month bonus. Please sign and have notarized the Satisfaction of Mortgage. We expect to send you two more payoffs in the next week – the one from Virginia and the other is Lake Street in Detroit. An unusual purchase that you may be interested in investing: The property is at 1235 W 16th, Travis City. The family has owned this home, probably since 1915 when it was built. The parents transferred it to the daughter in 1979 and she is now in a rest home with “elephantitis – the elephant man disease”. Her limbs are swollen and deformed but her attitude on life is astounding. She is a terrific lady. We have purchased this home and have cleared title. We have already resold this home to a quality buyer who needs a year to refinance. This home is in the good east side where we have seen dozens of our buyers refinance. We sold this home for $49,900 and have monthly payments coming in of $495. Please consider investing $20,000 at 15%. Your monthly income would be $250 interest only with the three-month balloon at refinance. Thank you for all that you have done for us. Let’s get together for dinner soon. Sincerely,

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Practice, Practice and More Practice
Another major leap in training and instilling confidence in my team that slowly gathered around me was the question/answer sessions we would have in the office in those early days waiting for the phone to ring. One of us would shout out the question or objection and someone else would give the answer – as illustrated in the following article of Ron’s. BONUS INSERT

Magic Words That Make Millions
by Ron LeGrand

I've just finished reading (for the second time) a book called Magic Words That Bring You Riches, authored by my good friend Ted Nicholas, a member of our Board of Directors. Ted has sold over 200 million dollars worth of information products worldwide by direct marketing. Over the years he put together a collection of Magic Words to get people to do things they ordinarily wouldn't do. In Magic Words, Ted discusses how to do such things as get the best table in a restaurant and first class seats on airplanes. He talks about how to slash the cost of a room at first class hotels and attract all the money you need for any business venture. Want to approach a member of the opposite sex and immediately gain interest? How about renting a Mercedes for the price of a Ford or buying jewelry at below wholesale prices? Ted can tell you how to attract the best employees to make your business prosper, as well as how to get capable people to work for free. He even discusses ways to gain financial interests in other people's companies without investing one red cent. Pretty cool stuff, huh? And that's just the first few chapters. This book is also a masterful direct marketing bible
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covering every aspect of the business by a consummate professional. Like I said, I read it twice. Then it hit me! Like Ted, I've got a collection of magic words I've accumulated over the years. Most are designed to help me get into or out of a real estate deal. All of them work. The words you are about to read have made me millions of dollars and, if used properly, could do the same for you. The truth is, students have been trying to get me to do this for years, but it was Ted Nicholas book that pulled the trigger. Incidentally, this one issue of the Mentor could easily justify your cost for the next ten years. Okay, here goes. Here's a set of magic words you should know by now and use daily: "If I pay you all cash and close quickly, what's the least you would accept?” and that's always followed by: "Is that the best you can do?" If you're not using these words to get to the bottom line quickly, you're making a mistake, not to mention wasting valuable time. These words cut to the chase and save you a lot of time otherwise spent beating around the bush. Of course, if you're naming the price you'll pay before you ask what the seller wants, I'll have to take you out behind the woodshed . . . Ye who speak first have big mouth & will pay handsome price for house. Those words aren't exactly magic, but they speak the truth nonetheless. Never, never name the price you'll pay or the down payment or monthly payment you'll pay or accept when selling.

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Okay, lets say you've asked 'Is that the best you can do,' and the seller says yes. A good follow-up line that works for me is . . "So you're saying if I don't give you $_____, you won't sell the house?" Now if the answer is still yes, you won't be buying today unless you're willing to change the focus to a terms deal rather than a price deal. A good icebreaker to use when you want to make it clear that you're not happy with the number you've been quoted is . . . 'What's your second choice?' I usually chuckle or use a hint of humor when I ask this. It's better than simply saying I won't pay the asking price. Let's say you're trying to get a seller to name the asking price and they won't. You know better than to pressure them, but you just can't get them to break. Try this . . . "How about a dollar?" This will get through to them and probably produce an answer. If so, you're back in the screening process and you know where you stand. If not, you can come back with . . . "I simply have too many prospects to work with to waste time on those I can't buy. If you'll tell me what you're asking, I'll know quickly if we can do business. Is that fair?" By this time, they're usually in or out. You can't buy houses from uncooperative sellers. By the way, did you notice some powerful magic words hidden in there? Take note of how I tend to answer a question with a question. 'Is that fair?' turned my response into a question and put the responsibility to answer back on the seller. It also softened the
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blow and made me seem more warm and fuzzy. 'Is that fair?' is a powerful set of magic words that should become a part of your everyday vocabulary with almost everything you negotiate. Let's say you're pre-screening a seller who has a house with a mortgage balance. First, you want to know what's owed on the property or you can't possibly determine whether it's a deal or not. These aren't magic words, but are critical ones: "What do you owe on the house?" What if they say it's none of your business? You say . . . "I buy ____ houses per year and use many different methods. I'm probably the most serious buyer you've talked to yet. However, I'll need the facts to be able to present you with an intelligent offer. Will this be a problem for you?" Again, a question in an answers clothing. Did I not sock it to them on that one? Frankly, anyone who won't give you the facts is not ready to sell yet. You got your answer . . . move on. You can't make unmotivated sellers motivated. Now you have your answer. You know the loan balance. Now it's time to find out where you're headed with this deal, so ask . . "Will you sell the house for what you owe on it?" Those magic words can make you $500,000 per year if you ask them on all your deals. With just those twelve little words, you'll instantly know whether you'll be getting a free house by taking over the debt or an almost-free house with debt plus a little cash thrown in. Of course, you may also learn that the seller wants full price and is not flexible. Again, you found out what you needed to know with twelve words. Now you know whether to proceed with the deal or move on.
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Now let's say you can't get a deed because of the due on sale clause or the seller won't trust you with their credit. But you see opportunity there and a lease /option makes sense. Here's the opening line to present the offer . . . "I will lease your house with the right to buy it for the loan balance when I purchase. I'll guarantee your payment and maintenance until the loan is paid off and the house is out of your life. How does that sound?" Notice how all the benefits come before the question. The seller has enough information to encourage a positive response. Isn't that better than will you lease/option your home to me?? Another good question that will ease the seller's mind and make you seem genuine is . . . "If it doesn't work for both of us, then we don't want to do it, do we?" That makes it pretty clear that you're not desperate to make the deal. Another version is . . . "If this will cause you to lose sleep at night, I'd rather not do it. Is it going to be a problem?" Here's a good one to break a stalemate and get you back in negotiation as well as collect more facts that might lead to different offers . . . "If you and I can't do business today, what will you do with the house?" This also gets the seller thinking, particularly about all the ugly answers to that question. Their answer may be, 'I'll put it on the market or list with a Realtor until it sells.' Your response . . . "And what if it doesn't sell?"
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At least you'll get a feel for whether this seller is worthy of your follow-up list. I hope you know by now that . . . "All seller's minds will change with time and circumstance" Here's one you'll love if you're a beginner and worried about the seller finding out that you don't exactly know what you're doing. First, don't sweat it. You don't have to appear to be an expert. You can try to fake it, but if you're confronting an intelligent seller, many times they'll see through you and try to ask you embarrassing questions. So if you're asked if you've ever done this before, use these words . . . "Well actually, no. This is my first deal after graduating from some rather intense training. I was hoping you'd help me do it right, OK?" Asking for help brings you down to the seller's skill level and you've built trust by answering truthfully. Don't worry about the seller expecting you to be an expert. If you seem sincere and excited, you'll usually get the deal. In fact, being too smart or seeming too confidant will often turn off more people than if you appear to be a novice. They'll think you're too green to cheat them. Now let's say you're talking to a seller about carrying a mortgage and the subject of interest comes up. Your goal is zero interest, so you shouldn't be the one to initiate conversation on this topic. If the seller doesn't mention interest, you shouldn't, either. When presenting an installment offer, the magic words are . . . "I'll pay $____ per month until you're paid in full." Of course, this means you've divided the loan amount by the monthly principal payment you want to pay, excluding interest. If the seller comes back with “what interest rate is that?” Your response is . . .
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"Why do you need interest?" Then if you get more argument and it becomes a sticking issue, you could respond by saying . . . "What's more important, your interest or getting the house sold now?" If that doesn't get the job done, say . . . "If I give you interest, how much can we lower the price?" Or . . . "Will you sell to me with no down payment?" Or . . . "Would you wait six months(or a year) for your first payment?" Or . . . "Would you take 25% off the balance I owe you if I agree to pay you off within _____ years?" Of course, these same tactics can be used if the seller is asking you to raise your offer. You'll notice it all comes down to some very powerful magic words that can be adapted to many uses (If I . . . , Would you . . .). How about when you're raising private money and approaching potential lenders? Here's my icebreaker that hasn't changed one whit in 16 years . . . "Do you have an IRA or any other investment capital that's not getting you a 15% return safely?" These magic words will get you all the money you need assuming you ask at least some people who have money to invest.
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Now let's look at the selling side and discuss a few choice words I use to find good buyers. When wholesaling, I want to know my buyer will come to closing with the money and isn't simply trying to jerk my chain. In this case, the magic words are ... "When do you want to close?" If they need more than ten days, they're a time waster and I'm at risk. If they say "ASAP", I know they're serious. There are so many magic words to use when pre-screening buyers, it's easier to simply use the whole script because these words are all magic. I can't tell you how many hundreds, maybe thousands of buyers (idiots) I talked to before I developed the words and the order in which I use them. Here we go . . "Do you want to buy or rent?" If the answer is rent and you want to sell, the rest is worthless conversation. But before giving up, use one more line . . . "If I can show you how to buy and get you financed, would you rather own than rent?" If yes, continue. If no, save your breath. Next . . . "Have you ever tried to buy before?" "Yes." "What stopped you?" This lets you know immediately what you're dealing with. "Is your credit good, fair or poor?" Don't ask how's your credit.' Some people are ashamed to tell you it's ugly and will simply lie. Give them a multiple-choice question so they know you won't be shocked if they have poor credit. If it's bad . . .
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"What's on it a bank wouldn't like?" This breaks the ice and gets the customer to open up. Now the big question . . . "How much money can you raise for a down payment?" Whatever the answer . . . "Can you get any more?" "Can you borrow from relatives?" "Do you have credit cards?" "Do you have something you could sell or trade to me?" "Can you repair houses or have other skills to earn more?" "Are you willing to rob a bank to raise cash?" Oops! Got a little carried away on that last question. It might not be appropriate. Now let's assume you see someone you can work with and you want them to get excited and realize that you are their solution to home ownership. Here are the words that will glue them to you . . . "If you can convince me you want the house and make a commitment to buy, I'll get you financed one way or another. Even if I have to be the bank. If I can't get you in a home of your own, no one in this city can." These words have sold a lot of real estate for me. They really make an impact on your buyer's level of hope. Follow them up with assurance that you are easy to work with and very flexible and the prospect will be putty in your hands.

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"We can do whatever you and I agree. I own the house and I'll do what it takes if you will. Is that fair?" Well that ought to be enough magic to keep you practicing awhile. Of course, these words aren't really magical until you begin to actually use them and make them work.

So the Bottom Line … Questions – to guide the seller, buyer, money investor into a win-win deal for all. Master these magic words and use them all them time.

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