What If I Don’t Have Cash for a Home Auction?

Today, I have a committed group of folks out here in Coeur d’Alene/Spokane attending my Lee’s Inner Circle intensive training. I can’t even begin to review everything they’re learning, but I can tell you that today, I am taking them to an auction. It’s a fantastic opportunity for these success-hungry individuals to get on-site training, learn the details of structuring MAO (maximum allowed offers, or in this case, my maximum bid), and I bet a few will acquire properties with me.

Not all of them have cash to buy houses at an auction like I do. Most people think you need to or you’re out of luck.

But what if you don’t have the cash? Can you still participate in purchasing these properties?

Yes! It’s called an equity deal.

What’s an equity deal?

Equity Deals: you’re still dealing with properties that are going to a foreclosure auction (that you could buy at the auction if you had cash) but instead, you do what most won’t; go knock on the door!

Here’s how… (grab a pen and paper and take notes!)

Recap quiz…

Question:
– Should you start driving all over tarnation knocking on doors?
Answer:
– No, first find out if the homeowner has equity in the deal.

 

Question:
– What are the two questions you should ask for any deal?
Answer:
1- What is the property worth?
2- What can I get it for? (And is there a large enough marginal spread for you to make money?)

 

Question:
– Is putting together an equity deal better or worse for the homeowner than letting the home go to foreclosure?
Answer:
– It’s better! If structured right, the homeowner can make a profit that they wouldn’t make if they lost the home to foreclosure auction, you get the property at a good price, and to top it off, you acquired the property before anyone else had a chance to bid you up on it. Win win win.

 

Question:
– Does a private money lender care more about you and your financial situation or the property?
Answer:
– The property! If your deal is attractive, you aren’t going to have a problem coming up with the capital necessary to close.

 

Question:
– If you think you have a great deal but you don’t know how to write an offer, are you out of luck?
Answer:
– No! I’m not saying I’m going to write the offer for you, but I will offer assistance so we can see this deal through to fruition. If you’ve run the numbers as best as you can, call us at 800-341-9918 to talk to a funding specialist. Tell them the terms of the deal, how you structured it, and we’ll help you out.

We’re here to support you in any way we can, we just ask that you make the initial ground work and some due diligence.

And, remember, all real estate cares about is whether or not you have a good deal! If you have a great deal under contract and are looking for a private money lender, check out COGO Capital for your loan. Call us at 800-341-9918 to talk to a funding specialist or go directly to cogocapital.com for a rate quote.

What’s stopping you now? What can we help with?

Follow me on Twitter @LeeArnoldSystem and use the hashtag #AskLee, and I might address your question on here next week.

To Your Success;

Lee A. Arnold

CEO

The Lee Arnold System of Real Estate Investing

 

To learn more about attending Lee’s Inner Circle, contact one of our team members at  800-533-1622.

Out to dinner at Anthony’s in Spokane with the Lee’s Inner Circle team. What a great group of people!
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