Lou Brown has been buying, selling and holding property for 40 years and you are about to discover what a lot of so called gurus are missing.
* How to buy all the property you want without ever visiting a single bank or needing to qualify for a loan…
* How to have a buyer or renter before you even buy property…
* How to have them already pay you money before you sold them anything…
These are exactly the kinds of deals he does day in and day out. Most 'investors' are getting it wrong. It's not about the property, it's about the buyer. Buying right and buying cheap is what you'll do after you have the buyer.
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Hi! It's Lou Brown.I'm back with another of my 101 cash
flow accelerators. And this one is about your future. Remember, I've been in
this business for over 40 years. I've learned a lot about what can go wrong in
a transaction as much as what can go right about it. Of course we do this
business so we can make a good profit and a good living for ourselves and our
families. And when you are selling property, it's inevitable that the time that
you worked out with the buyer will change. So in other words, there's a date on
the contract you expect that to happen and many times that doesn't happen. So
what I suggest is there be a clause in your agreement that says if it goes past
the day that it's supposed to close, then you get paid an additional fee per day
for each day that it doesn't close.
flow accelerators. And this one is about your future. Remember, I've been in
this business for over 40 years. I've learned a lot about what can go wrong in
a transaction as much as what can go right about it. Of course we do this
business so we can make a good profit and a good living for ourselves and our
families. And when you are selling property, it's inevitable that the time that
you worked out with the buyer will change. So in other words, there's a date on
the contract you expect that to happen and many times that doesn't happen. So
what I suggest is there be a clause in your agreement that says if it goes past
the day that it's supposed to close, then you get paid an additional fee per day
for each day that it doesn't close.
And that has paid me tens of thousands of dollars over the
years because here's what happens. They might have applied for a loan. And the
lender, for whatever reason, they can't get their act together. Maybe it's a
credit issue. Maybe they're shopping the loan. Going to sell the loan to
somebody else, delays the whole process and you pay. Why do I say you pay?
Because property taxes, insurance and interests continue on a daily basis until
you finally closed. Oh, by the way, let's not forget your opportunity costs
because that money that you could have had, maybe you've got another closing
lined up or you've got your Mercedes on order. And you don't have the money to
be able to close that transaction. All of that is not good news for the seller.
So be sure and have a clause in there that you get paid on a daily basis. What
is it? Well, it's really relative to the price of the home. But generally my
daily rate is a hundred dollars. Hundred dollars per day for every day that
this is extended. How many days do you want to buy?
years because here's what happens. They might have applied for a loan. And the
lender, for whatever reason, they can't get their act together. Maybe it's a
credit issue. Maybe they're shopping the loan. Going to sell the loan to
somebody else, delays the whole process and you pay. Why do I say you pay?
Because property taxes, insurance and interests continue on a daily basis until
you finally closed. Oh, by the way, let's not forget your opportunity costs
because that money that you could have had, maybe you've got another closing
lined up or you've got your Mercedes on order. And you don't have the money to
be able to close that transaction. All of that is not good news for the seller.
So be sure and have a clause in there that you get paid on a daily basis. What
is it? Well, it's really relative to the price of the home. But generally my
daily rate is a hundred dollars. Hundred dollars per day for every day that
this is extended. How many days do you want to buy?
I've got that in my addendum to Purchase and Sale
Agreement. That's in the selling side. So, that's my Volume Two Selling. You
can check it out. StreetSmartInvestor.com/tools And this is volume to selling.
And holding. Hopefully this is of help to you and your business. I love to help
people build amazing real estate businesses. Check us out. Look forward to
seeing you soon. Yeah, baby!
Agreement. That's in the selling side. So, that's my Volume Two Selling. You
can check it out. StreetSmartInvestor.com/tools And this is volume to selling.
And holding. Hopefully this is of help to you and your business. I love to help
people build amazing real estate businesses. Check us out. Look forward to
seeing you soon. Yeah, baby!
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