Hey, it’s Joe Crump. Real estate investment strategies for high end markets. High end
markets can be phenomenal for making big chunks of cash. Now we all know the ways
to buy properties substantially under market value, fix them up, turn around and sell them.
You can do that in high end markets and I’m not going to talk about those. Those are covered in
a lot of different places. But I’m going to talk about a strategy where you can go out and make
$20K, $50K, $100K in a matter of weeks without using any of your capital, without using any money
and being able to do this in high end markets where you’re dealing with $400K, $500K, $600K,
$700K, $800K properties, $1M properties, $5M properties. We’ve done this for properties
anywhere from $5,000 in value all the way up to $5M in value and the most I’ve seen anyone make
in this particular technique on one particular deal is $100K on this particular technique.
There’s no reason they couldn’t make more than that, that’s just been my experience personally.
I see people make $10K, $20K, $30K on this on a regular basis
on each individual deal. A deal that takes them 10 minutes on the phone to set up and then
30 days or less to sell and get cash in their pocket. You have to have the skill to do it, you
have to have the ability to put it together and the willingness to do the work to make it happen.
So let me show you how that structure works. It’s using the For Rent Method.
So we go out and let’s say we find a property that’s half a million dollars. And it’s a for sale
by owner. And we find it on craigslist or we find it on Zillow. And we call that person and say,
“Would you consider selling your home rent to buy rather than selling it outright?” And they say, “I
would consider that, you know, tell me about it.” I say, “Well what I do is I go out and I
find people that buy properties on lease options and I’ve got more people on my list right now
than I have properties. So I need more properties to sell to them. It doesn’t cost you anything,
you don’t have to pay, no realtor fees, I’m not a realtor. I’m an investor. I make money
from the profits. So, basically I buy it from you for your asking price, you’re asking for
$500K, so you get the full $500K. I turn around, I’d raise that price and my profit
would be whatever I can get above that price.” “Now, market rent for this property is,
right now is about let’s say $2,800.” I’m just throwing a number out here. Let’s say
it’s $2,800. “And so I would be able to get you $2,800 a month for this property
over a three year period. You’d have a three year lease with an option to buy it, and they’d have
a time, anytime within this next three years to be able to buy their property for $500,000.
Would something like that be acceptable?” And if they say yes, and if they don’t there’s
lots of answers and objection handling techniques and all these other things that I’ve talked about
in the past and I talk about it in my training programs and I help my mentor students learn with
personally. But let’s say they accept this deal. You then turn around and you raise the price,
let’s say you raise the price to $550K. You raise it by 10%. So you’re at $550K lease option, $2,800
a month of income. And I go out and I try to find a new buyer with $50K down payment.
Well, let’s say I find somebody who’s only got $20K as down payment.
Maybe I can get them to do a promissory note for the other $30K or maybe for $10K or for $20K of it
where they make payments to me of $200 or $400 or $500 a month until that amount if paid off.
So I get my chunk of cash. Maybe my $10K, $20K, $30K in cash and then I get maybe $10K, $20K,
$30K as a promissory note that they make payments to me over time. And that’s just an unsecured
note directly to me that they make payments on. And then they make their payments directly to the
seller. So I’m in the deal by getting the lease option memo. I assign that document
to this new buyer. The new buyer comes in. We create a new lease option document. They sign that
document with the seller – not with me – and they are then in contract with that seller and the new
buyer and I’m out of the deal. I walk away at that point with my down payment. And if there’s any
problems of course they call me in then I always talk to them and I try to stay in the middle,
you know, not take sides in any deal and help them through that process
and negotiate and help them understand what their responsibilities are and what their
capabilities are in that particular deal. So that’s a really quick and easy way
to bring in money in high end markets whether you’re working in Sacramento or
the Burroughs of New York or Boston or any of those high end markets that you want to
work in. If you’re working along the coast down in Florida, you know, Palm Springs.
It doesn’t matter. Wherever you’re working that’s a high end market you can do these types of deals
and it’ll actually make more money in most cases for the seller than if they would sell it and use
a realtor and have to pay all the fees that it costs to sell that property. So it’s a great way
to benefit your seller, benefit a buyer who couldn’t have bought the property otherwise
and benefit yourself by making a profit. All right. I hope that helps. Good luck. Subscribe
to the channel and go to ZeroDownInvesting.com to find out about my mentor program. Go to
PushButtonAutomarketer.com to find out about how we automate the process and we contact
these for sale by owners automatically and bring in leads by the dozen in as
many areas as you want to all across the country. And then go to JoeCrumpBlog.com
and find lots of free videos and sign up for my free newsletter where I send out information that
I don’t send out to everybody else. All right. Take care.