How To Do Zero Down, No Credit, “Subject To” Deals Completely Over The Internet Without Ever Making A Call
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Read Transcript for “How To Do Zero Down, No Credit “Subject To” Deals Completely Over The Internet Without Ever Making A Call
Joe: I’ve been telling you about some of the different things that we’ve been doing with websites and some of the things that my mentor students and I have been using, i.e. websites that I’ve created over these past few years.
Joe: I’m going to tell you about another one today. It’s a complete system to work with for sale by owners. Actually I was prompted by this question from Alice Watson from Raleigh, North Carolina. She says,
Alice: “I keep hearing you talk about your system for getting for sale by owners to sell their home to you “Subject To”. Can you explain how that works?”
Joe: It’s all based around this website and this system that I created so that it can all happen for me. I wanted to build my portfolio. I wanted to get more “Subject To” properties. By the way, “Subject To” is where they deed you the property, you take over the payments on the loan, put a lease option tenant in there, and you make a chunk of money right up front from the lease option tenant (maybe they give you $5,000 to take over the property).
Joe: They make a payment to you equal or maybe a little bit more than your monthly payment. You keep that property long term and it builds value for you. You get depreciation and you get appreciation for the property. You get to buy down on the loan. There’s lots of benefits from owning properties long term. That’s where you build your wealth. That’s what makes you rich in real estate, by the way.
Joe: You need cash flow to sustain a business. That’s what the lease option fee is all about, but the long term wealth comes from holding onto these properties and keeping them long term, and then eventually, 10 to 15 years later, they’re paid off because the rents go up and you increase the amount of payment that you make. You pay them off and then suddenly you have a property free and clear that is going to pay you for the rest of your life, the rest of your kids’ lives, and on and on; it’s an asset that you’ll never have to worry about.
Joe: Anyway, this system essentially is… I created a screen capture video for my assistant. I got my assistant through Elance and I said, ‘Here’s what I want you to do.’ I gave him the screen capture video and that screen capture video explained to them how this process works. Essentially, what I have them do is go to for sale by owner websites, e.g. Craigslist, ForSaleByOwner.com, etc. (there’s a bunch of them). We have them go to these websites and we have them send out a specific letter making an offer to those people on their property, and then they respond back to us.
Joe: When they respond back to us, we get their email and we put them into a system that then sends them another email giving them the FSBO website that explains how subject to works, how we buy properties and all of that stuff; it explains that whole process.
Joe: If they read through it and they’re sold on it, they can hit ‘Yes, I’m interested’ and they can fill out the form and tell us about their property, hit send, and then it sends me an email. Every one of those emails that I’ve received and have been filled out we get a deal together on, if I want it. I don’t want every one of them that I get I want, but we do get them.
Joe: By the way, they don’t flood in through this process, but the ones that do come in always work, so you have to decide, ‘Do I want lots of leads coming in or do I want a few leads that will only take a few minutes of my time?’
Joe: There are reasons to have both, and I do different things depending on the situation and what I’m working on, but in this situation, I wanted to talk to nobody. I wanted only to have them call me up or send me an email saying, ‘Joe, I’m interested in what you have to say. I’m ready to sell my property and the way you want to sell it. Yes, I have the equity, I have the position, I have the mortgage, and I have the deeds. I have all of the things that you want in order to make this deal work’ (because I explain very specifically what I need to make the deal work).
Joe: So they tell me this and say, ‘Give me a call and we’ll make it happen.’ So I give them a call and they say, ‘That’s great.’ So, we get them the paperwork. I usually send over somebody with the paperwork for them to sign. We get it signed. I then give it to my property manager, she fills the property and we keep it for a long term investment.
Joe: There’s other things that you can do with those properties than just keeping it for a long term investment. You can flip it to another investor. You can fill it with a lease option tenant and flip it to another investor and make two chunks of money. You can flip it to an investor as a land contract and protect your seller that way and make money monthly on the deal. There’s lots of different ways to make money on it, but the idea is that you get these properties coming in.
Joe: And, you can do this not just in one city but you can do it in 10, 20, 50 or 100 cities; you can do it in as many different places as you want. So you can bring in more leads and more leads and build a huge business around just this one technique.
Joe: This isn’t the technique that I start everybody with in the Mentor Program. This is, I think, a little more advanced technique, but it’s also a brand new technique, and as I use it more, I realize that this doesn’t really take that much experience; it doesn’t take that much to get it done properly. I know it sounds like there’s a lot of pieces and it’s a complicated process, but once it’s set up properly…
Joe: And, believe me – I’ve got a lot of experience as a direct marketer so I set it up with all of that knowledge so that we would know for sure that it was going to work, and after I’ve tested it and I’ve got lots of deals put together through it, I know that it works.
Joe: I’ve given it to my students. This is part of the Mentor Program. You get one of these sites when you come into the Mentor Program, plus you get the autoresponders that keep following up with people once they’ve opted in, once they’ve sent you an email saying, ‘Give me a call back and let me know what kind of deal you want to do.’
Joe: We don’t call them back – we want them to go to the website. But then, if they go to the website and they don’t like it, that’s okay. I still don’t call them. Instead, I have these emails going out to them every few days that keeps reminding them, ‘We’re still interested in buying your property. We’re still interested in buying your property. Please go to the website. If you’re interested, let me know and we’ll make it happen for you.’ It’s exciting stuff. I’m really excited about this new program.
Joe: I’m also going to be teaching it at the next buying event, so you ought to come and I’ll show you exactly how to use all of this stuff. Thanks. Bye, bye.