Did you miss yesterdays episode? Wednesday’s episode of The James Orr Show contained the following:
- James begins the show with a reminder that listeners can find episodes of The James Orr Show on the Learn To Be Rich website and on iTunes available as a podcast. He also reminds everyone to join the Private Money Mastermind Group, as well as a reminder for new people in the business to check out the Resources for New Real Estate Entrepreneurs, which include videos, articles, and free downloads.
- James then goes over the new Affirmation for the Day.
- After this, James talks about doing only the important things in a business and rewarding yourself for doing important things.
- Next, James answers several listener questions about specific deals and about buying in other states.
- James then talks about marketing, flyers in specific. He talks about deals you can expect to get as well as cost per deal. Want to know how many deals/flyers? Listen to the show to find out.
- After the flyer discussion, James answers some marketing questions.
- At the end of the show, James reminds everyone to join the Private Money Mastermind Group and to follow James on Twitter.
If you enjoy this episode you can download it below or you can find all the episodes as a podcast on iTunes.
To be able to wholesale real estate without first closing on it yourself, you need to be able to have your buyer take over your position in the contract that you have with the seller. Usually, we accomplish this by assigning our rights in the contract to our buyer and having our buyer close directly with the seller.
However, as a real estate investor I occasionally get a real estate contract that does not have a section that would allow me to make the contract assignable. How do you deal with this? Well, my late mentor, Brent Grove taught me the power of “and/or assigns.” While you will want to verify that contract law is the same in your state, in most contracts anything that is hand-written into the contract takes precedence over anything typed. So, if, when you write out your contract, you use your name as the buyer name and then add in the words “and/or assigns”, even if the contract states that it is not assignable, then the contract becomes assignable.
So, as an example, if I was writing a contract with Suzy Seller and my name was Bob Buyer, I might fill out the contract so that for the name of the buyer it would read:
Bob Buyer and/or assigns
If Suzy Seller agrees to the terms and signs the contract, then that contract becomes assignable. So, if I then sent out an e-mail blast to my list of thousands of real estate investor buyers to tell them about this new deal that I have, I could assign my contract to them. For a small assignment fee (which is often also called a wholesale fee), I would assign my rights and interest in that contract to my investor buyer and they could then purchase the house directly from Suzy Seller using my contract.
So, with that tiny phrase, “and/or assigns”, you can take just about any contract and make it instantly assignable.
Until my next post,
James
P.S. Are you interested in taking your real estate investing business to the next level? Sign up for our Real Estate Investor Bronze Membership and get started today.
I was fortunate enough to have some great real estate investing mentors over my career as a real estate investor and one of my mentors, the late Brent Grove, taught me the importance of being on the right side of the desk.
He taught me that you should set up your business to have people come to you and ask you if you want to buy their house. You do not want to chase people and ask them if they will sell you their house. There is quite a bit of subtlety to this business philosophy, which I will explore in this article.
One of the biggest benefits of having people approach you instead of approaching them is that, when they come to you, you are automatically established as a credible expert. They came to you for help with their situation or problem and while you still have to strengthen your credibility with them, it is much easier than having to convince someone you’ve called – who has never heard of you – that you are credible.
This benefit often shows up for us as real estate investors when we ask those somewhat sensitive questions about the seller and their property. For example, in my script for gathering information about a property, I ask if there is a mortgage on the property. If you have not established yourself as credible or you are chasing leads, this is a very, very difficult question to get answered – but when people call me I rarely run into a problem getting an answer. If you don’t believe me, try calling 10 sellers from the newspaper or from a classified ad website and ask them for info about their loan balance. Even though it’s on public record, you’re likely to get very few people who will feel comfortable enough to tell you.
Now, try asking that same question to someone who calls you on marketing you have out saying that you buy houses. For me, the difference is extreme: better than 9 out of 10 give it to me without hesitation.
The benefit of not chasing and being on the right side of the desk is also apparent when you make an offer. Make a lower than expected offer to someone who you called out of the blue and they’re likely to be offended. Make a lower than expected offer to someone who called you and you will get a much different result because they came asking what you could do and you told them what you could do. A different perspective yields a much different outcome.
Overall, I think you will find a huge benefit to having marketing out and having motivated sellers and buyers calling you rather than chasing down sellers that have not already pre-sold themselves on you and your service before they picked up the phone to call you.
Until my next post,
James
P.S. I had some great consultants and mentors… do you? Sign up for our Real Estate Investor Bronze Membership now.
