Work For Equity by Ron Legrand
Description
It was 1989 and I had been buying and selling houses and completing hundreds of transactions for over seven years. Everything I did and sold to owner occupiers was a wholesale reversal or rehab.
This was three years after a change in the 1986 tax law that turned the real estate world upside down and created chaos for business. The economy wasn’t great,interest rates were high and real estate was getting slaughtered on the news.
I just want to close in on buying a house in Jacksonville, Florida, the Western Prospect St. in my home town.
The value after the repair was about$80,000 and$10,000 in repairs. I borrowed $ 40,000 from one of my private lenders to cover my$20,000 purchase price,repair and closing costs, and took home about $ 9,000 for other uses.
My intention was to rehab the house the same way I did a couple of hundred times before.
I was lining up the crew, I knew the business, and it was just another deal. Little do I know that this ugly little house is going to be a game-changer for years to come soon and create a whole new exit strategy that I want to use over and over again.
That day I was putting a sign in the forecourt that someone said…
For sale by owner, during renovation
The next day I got a call from a man who claimed to want to talk to the owner, so I took it and found out that he worked for a construction company.
He told me he could work on himself and buy his own material and asked how much I would discount the house if he did.
He caught me by surprise, so the only thing I could say was,”I don’t know. What would you pay for?His answer…”$75,000.””
I immediately knew that we were on something here and finally wound up a lease optioning him a house for$600 a month rent and a non-refundable deposit of$1,000.
Seven months later, he finished work and after he cleaned up some credit card problems, we got him funded with an Fha loan and what’s a big deal you say of me for the equity program?
Well, let’s slowly look at the facts that happened to me, and you’ll see a big deal.
He fixed the house with his money so I set aside$10,000 to fix it.
He was responsible for all repairs before, during and after. That means I didn’t hire a contractor, had no costly renovation delays, and got a call after the sale to fix something I thought was a good idea.
I sold the house at 95% of the value after its repair without touching it.
For those who are looking for an absolute Look, I got a favorite buyer qualification, which is on loan.
I collected the rent for a house that needed to be repaired enough to cover my interest, taxes and insurance.
If he moved out, I knew it would be no worse than when I put him in the house, even if he didn’t do the repairs.
That day I took a comparison of the work for equity versus rehabilitation. It looked like this.…
Rehab contract work for stocks
Sale price$80,000 to$75,000
Collected rent$0$4,200
Buy $ 20,000 to$20,000
Repair$10,000 $ 0
Sale cost$8,000 to $ 4,000
Interest(12%)$2,400(6 months)$2,800(7 months)
Cost of holding(taxes, Ins, maintenance-appx. $300mo)$1,800(6 months)$2,100(7 months)
Net$37,800 to$50,300
The tenant’s buyer made all the repairs with his money.
I had no marketing cost to sell and my seller’s concession on closing costs was much lower than paying the buyer to get closed with a new financing.
Which one do you prefer? Can I have a minute? I don’t have more than 50% of that money. I was horrified but I discovered a brand new exit strategy that none of the gurus told me about and continued to do a lot of these deals.
And still do today, 30 years later.
Recently,I taped an all-day seminar on jobs for the first time for equity,and I went through all the stuff I learned over 30 years from my first job for a fair deal.
Now I have the chance to get my first monthly payment back in a few minutes for a small amount of money, in minutes more, in a vacant lot.
This is disgusting.:
Which house is the best candidate and who is the best buyer. Either get wrong, and work for the capital will not work.
Why your after-tax profits can add another 20% to your net income to work for stocks you will always lose in rehab?
How to borrow private money correctly cash in excess of at least$10,000 to make sure you have no outgoing monthly payments before you buy you have mine.
Why work for equity is the perfect solution for a deal on all subjects where you don’t have the cash to find and fix that need work.
What to do in the first 30 days you always have a ready secondary plan, you need to do in some cases to ensure the buyer.
How do I blame housing, even if I use the work for the shares to sell to investors, and make three times what you would make in a wholesale transaction.
How to lease options sale in financing the owner, described in detail, good, bad and ugly.
True in today’s market, how to determine the value after repair, because you’ll know what to pay and what to sell for. You get my formula that sets your selling price to get maximum profit and not kill the sale.
Before finding a home there are several buyers to choose from, so hurry up and stock up on a list of buyers for how to build a big job.
Complete system
You will get a new form to use for a counter top in the house,a sales letter to sell a job for stock, a q&A with a buyer and a step-by-step guide.
A checklist for your meeting with prospective buyers so you don’t forget anything.
Your buyer should not think about putting a tenant buyer in a home that requires a job without this agreement on rent to build my special job for an equity lease option contract along with a down payment and my special down payment assistance contract. It can be expensive. How do you think you know? For reference, this deal alone would cost me $ 6,000 to get ready and would cost far more than you would pay for my entire job for the stock system.
Set the time for completing repairs,repair lists and contracts, how to monitor without personal visits,how to get paid to inspect,how to make repairs on time.
How to handle multiple buyers simultaneously with each deposit without taking the house off the market.
It took me 15 years to stumble upon this special shape. Never sign a sales contract to bind your home until you are ready to close. Why would I learn in my system.
How to use cleaning in the case when the buyer is satisfied, repair is carried out. It is done for you and you receive the payment to provide this valuable service to your customers. It also works for you. If your credit needs work, you’ll hear from a person who can repair it, including foreclosures, bankruptcy, judgments, late payments, IRS liens and anything else.
There are ways to make sure that your buyer gets a new loan and what you have to do along the way and why you have a better system, or what you have to do.
If the material can be purchased in the case of flooding of the system, the buyer should take care of it.
How to run your business so you win even if your buyer doesn’t buy or rehab the House. My 25 years of work for stock experience has revealed all the tricks of the trade and will save you a lot of mistakes year on year.
We have a true understanding of the work for equity, and that’s not the case. Frankly, it just doesn’t make any mathematical sense. If your cash flow took seven months to get cashed you might wonder where it would come from
But Ron, where’s the cash flow?
Here is the answer:
With a private loan set aside for repairs I can use$10,000 to$10,000 after my buyer repairs the home.
A few days later$1,000 from the buyer.
$ 600 a month
$ 21,600 cash flow before I cashed out. $28,700 more when I cash out. As you can see, you won’t starve while waiting to get cashed. What if 10-20 of these deals are all with tenants? Five of these can be done for rehabilitation.
It can be used by more deals, less jobs, contractors, costly delays, tenant buyers, late checks by lenders and price-to-price haggle.
And about my system is to transfer the score to the Cd or manual.
You’ll receive a $ 997 Cd and a manual, and that’s a steal in it. The minimal cost can be recovered many times in holding your first deal, much less the cost of repair and reduced closing costs alone that you have saved.
In fact, you’ll never collect in a rehab facility paid for my system will collect at work for stock rent for one month.
It seems like an easy decision for me. Order it now because you should listen to the Cd before you make your next offer to buy a house. This system will change your offer and make you aware of some current traps in this depression.
Take Ron Legrand – Work For Equity at Whatstudy.com
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Course Features
- Lectures 0
- Quizzes 0
- Duration Lifetime access
- Skill level All levels
- Language English
- Students 128
- Assessments Yes
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