Hi, it’s Joe. Here’s the next one. It says,
“Joe, you keep talking about your incredible FSBO system. Would you tell me how it works
or do I have to pay you thousands of dollars to find out?”
It’s a very simple process. What we’re doing is we’re going to for sale by owners and instead
of saying, ‘Hey, I’d like to list your property for you,’ and having them get all upset with
us and hang up on us, what we do instead is say, ‘I’d like to buy your property. I’m an
investor and we buy on terms. Would you consider selling?”
Instead of calling them by phone, we do it a couple of different ways. One, we use voice
blasts which I think I talked about in other videos that I’ve done. The other is we use
email blasts, and you can go onto websites like fsbo.com or forsalebyowner.com (almost
every town now has its own for sale by owner website) – you can go onto that site and you
can contact those sellers by email and you can send them a simple letter (which I have
written copies of it) but you can do something just along the lines of what I just said,
and you’ll get responses from them. Now, when you get a response from them, the
way you’re going to structure it is – you’re not going to buy their property for cash,
you’re not going to get a loan, you’re not going to put down payments down – what you’re
going to do instead is offer them an offer that an investor would make. After all you,
you told them you’re an investor and that you wanted to buy “Subject-To” or that you
wanted to buy on land contract. And that’s exactly what you’re going to do – you’re going
to make that offer to them. A certain percentage of them will say yes,
and it’s actually a pretty high percentage once you get good at this. A lot of the reasons
people don’t sell on terms is because they don’t trust the person who’s making the offer.
If they trust you and they think you’re going to follow through with what you offer, it’s
a great solution for them – you can get them very close to full price on these deals, it
doesn’t cost them any closing costs. Now, they don’t get any money at closing but most
of the people that are selling this way can’t do that anyway.
For sale by owners: there’s two types of for sale by owners: there’s the need and the greed
for sale by owner. The ones that need to do it are typically ones that don’t have a lot
of equity and they can’t afford to pay for a realtor. This is the perfect kind of person
to go after, and I’d say it’s about a third of all for sale by owners out there are people
that need to sell it themselves because they can’t afford to pay a realtor to do it.
The other two thirds of people that are in the greed category. They don’t want to pay
a realtor. They don’t like realtors. They don’t think realtors deserve the money they
earned, and they want to do it themselves, they think they can do it themselves and they
also tend to overprice their properties. Well, those people, you can help, too. You can help
them get equity out of their property and there’s also things that you can do with refinancing,
helping them refinance the property so that they can then sell it to you on terms, and
then you can take over the property and put a lease option tenant in it, a regular tenant
in it, have it managed by a professional and then never touch the thing again.
This is how I do it with all of the properties that I own. I don’t manage my own properties.
I hate to be a landlord. I don’t ever want to talk to tenants. I don’t ever want to evict
anyone. I don’t want to have to go after and collect late payments. I don’t want to have
to do repairs. I don’t want to clean out any toilets. I want someone else to do that for
me, so I pay a manager to do that, and for 8 to 10% and sometimes even less than that,
you can have property managers and you can get them all over the country (I have properties
in a lot of different states). You can get good property managers from all over the country
to do this type of thing for you. This is a great way to do it with for sale by owners.
Hopefully that answers the question. You didn’t have to pay thousands of dollars to find that
out, either. Alright, thanks.