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December 2014
>>>
MARCH 2015
A Monthly Insight into Metrolina Real Estate Investor’s Association
Local Investors Answer your Questions
15 Questions to ID Motivated Sellers
Fast
Metrolina Business Partners
Larry Goins & Randolph Cunningham
Panel of Local Expert Investors Answer YOUR Questions
on Doing Deals in TODAY's Market - 2015
Sometimes it's hard to tell who to listen in Real Estate Investing. Yet, there are
people within our very own REIA who are doing Notes, Flips, Spec Homes,
Wholesaling and/or Retailing 2, 3, 4, or even 5 houses per month.
The most important factor in determining the quality of your information is
the credibility of the source. If you wanted to learn about Pig Farming, a Pig
Farmer could probably tell you a whole heap more than an airplane pilot
could. At this month's Main Meeting, we have assembled an AMAZING Panel
of Local Experts, who are out there "in the trenches" doing what they do best
with Real Estate, day in and day out.
This is your chance to have your specific questions answered by the most
credible authorities in the Greater Charlotte Area! Do not hesitate to ask your
questions from the BEST of the BEST!
Join us on Thursday, March 19th, 2015 from 6:00 - 9:00 pm at
Crowne Executive Park, 5700 Westpark Drive, Charlotte, NC.
Visit us online for more info: www.metrolinareia.com @REIAInvestor
15 Questions to ID
Motivated Sellers Fast
By Mike Butler
Wouldn’t it be great if you could
“cherry pick” properties for sale in
your town? You really can if you
have a system to capture
information allowing you to quickly
handicap the property AND
retrieve it again in the near future
for good effective follow up.
Capturing great deals seems to be the most common desire of investors.
But where are they? How do you find those great deals? What sets the
super successful investor apart from the slow mediocre investor? Are
they luckier? Odds are they use a very powerful tool. This tool called
KNOWLEDGE allows them to identify deals others can’t see and gives
them the confidence to pounce on a deal when it surfaces.
“You can’t steal in slow motion,” applies in capturing deals. If you have
to go back and study some more before making your offer, a sharp investor will capture it while you’re still ciphering. Almost every great
deal involves a MOTIVATED SELLER. Without a motivated seller,
it’s very difficult to create a great deal in real estate. They need you to
make their problem(s) go away.
www.meetup.com/TheCharlotte-Metrolina-RealEstate-InvestorsAssociation
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metrolinareia
Sharp Investors Create Deals.
They’re not limited to price alone to identify motivated sellers and great
deals. Let’s use a house with a market value of $100K. Good investors
will buy this house all day long for $60K, but would you pay $105K for
this $100K house? My answer would be maybe. To exaggerate the educational point here, you could give them $150K for a $100K house if
you could pay $1 per month until it was paid off.
Sharp investors create great deals from marginal opportunities. Some
factors to consider include cash flow, appreciation and equity.
There are a few critical pieces of information to allow you to quickly
identify a motivated seller. This “pre-screening” can be done using your
phone. You shouldn’t have to drive all over town and view dozens of
houses for sale. There are just not enough hours in a day to operate this
way.
You must have a system in place to capture this critical information in a
routine manner and the ability to retrieve it again in the future to follow
up. Many of my great deals were the result of referring back to opportunities previously passed over.
Next Page >>>
For more information go to
www.metrolinareia.org
15 Questions to ID Motivated Sellers Fast continued...
Index Cards Make Great System.
pager, etc.
In the beginning while working a full time
job, index cards gripped together with an
“acco” clip became my database on wheels.
Do you scribble notes about a FSBO in
your day planner? How do you quickly find
it when a seller calls you back or your real
estate agent phones you about it?
Source. Ask how they found you.
Most investors ignore this question. Not
only will this help you track your marketing
or advertising, but it will also immediately
identify any existing relationship from
someone who recommended you. This
could put you in the driver’s seat setting the
stage for immediate loyalty. Perhaps you
bought their neighbor’s house or their
uncle’s and they were happy with your
results.
Graduates of “Make Your 1st Million with
Your Job” 3 Day Boot Camp use the index
card system with great success in their
office on wheels and they use Mike’s
Property Information Sheet if they sit
behind a desk most of their work day. The
same information is captured with both
systems.
Address and Cross Street. Ask for
the address and the nearest cross streets.
Keep asking the cross streets until YOU can
identify the neighborhood or part of town
that rings a bell with your noggin. Don’t
Picture yourself driving and your cell phone confuse this wish specific driving
rings from a seller who got your business
directions. You’re simply trying to locate
card announcing, “I Buy Houses.” First of
the area quickly on your local mental map.
all, stop driving. Pull over or stop in the
It doesn’t matter if you use landmarks,
emergency lane, but don’t drive and talk.
grocery stores on major streets, just
Not only is it dangerous and hazardous to
something to give you a quick idea what
your health and those around you, but,
end of town this property is located.
you‘ll not focus on key points to ask your
seller.
ASKING Price. Ask for the sale
price of the property along with how they
Here are Your Questions.
got their sale price. They may use a tax
assessment, a recent appraisal from some
kind of refinancing, or a relative or friend
who’s a real estate agent.
Vacant. Is the property vacant or
occupied? If occupied, who’s living there?
This will also be helpful in identifying a
motivated seller.
Tell Me About Your House. This is one of
your most powerful statements. Keep in
It’s important to ask them in this order
because you’re going to ask questions many mind; you’re in the people business. It’s so
folks would label private and confidential. much easier to create deals when you have
a motivated seller who likes you. Folks love
There’s a method to my madness here in
to yap. This is how counselors make a
developing rapport with your seller. It
living. People who have problems go to
allows them to feel comfortable with
shrinks to “vent” and verbalize their
answering sensitive private questions:
problems. They get to talk about it, get it
off their chest and they feel better.
Name and Phone Number. Make Amazing. Do the same for your seller. If
this your number one question because cell
they really are a motivated seller, they’ll
phones seem to drop calls at the most
bump their gums a lot on this one. Don’t
inopportune time, like right now. Get the
cut your seller off and force them to
phone number they’re calling from first and answer, “Yes, no, 3, 4,” etc. Let them talk
blame it on the cell phone. They’ll
and they’ll like you better. Remember, you
understand. Later during this same
have two ears and one mouth for a reason.
conversation, get as many phone numbers
Use it. When you say, “Tell me about your
as they can think of or remember. Get their
home,” the seller will ramble on and on.
home phone, cell phone, work phone,
Next Page >>>
15 Questions to ID Motivated Sellers Fast continued...
Here’s the information you should be
able to capture while they’re responding
and prevents you from asking them a
bunch of yes/no questions:
Number of bedrooms
Number of bathrooms
Square footage
Year built
Style – ranch, 1 story, cape cod, etc.
Construction – brick, siding, wood
Garage - #, attached, detached
“Why Are You Unloading this Property?”
Don’t ask why they are selling this
house. This one powerful question
should immediately identify whether
you’re dealing with a motivated seller.
The word “unload” is very powerful and
it communicates immediately that you
expect a deal. If they frown, back peddle
or say they’re not unloading this house,
you may not have a motivated seller.
Many common reasons involve settling
estates, divorce, job loss, medical
tragedies, downsizing, moving to assisted
care facility, job relocation, family grown
and more.
Two additional powerful phrases in this
arena:
Do you need top price or fast sale?
Do you want any money or just want
to get it out of your name?
Basement, crawl space
Pain.
There’s a very painful component
involved with asking a seller to “tell me
about your house.” It never fails. They
always tell you how much they’ve done
and were planning on doing. Bite your
lip and le them ramble on about this
stuff. It makes them feel good because
you’re listening. They’ll tell you about
all the stuff and material they’ve already
purchased and have stacked up
downstairs or in the garage. You must
have patience. You’re not taking notes on
this part. Just listening.
If the seller has a reason such as trying to
sell in order to buy another home
sometime soon, odds are you’re wasting
your time. But don’t trash this
information now. Save it and follow up
with them in a month or two. They may
have become a motivated seller.
Identify the Owners.
Ask who owns the property. This may
seem elementary, but many investors
have wasted days, not hours, dealing
with friends, in-laws, outlaws, and even
helpful neighbors of the real owners.
Most of the time, only owners can sell a
property to you. Why not make sure
you’re dealing the right person in the first
place? A real eye opener in my state
involves married folks. Odds are you’re
going to get a married couple getting
Repairs. Ask the seller what repairs divorced and one party owned the house
are needed. Sometimes they get confused before they got married. This same
and try to revert back to all the wonderful person honestly believes it’s their house
things they’ve done. You must be a tad
and they can sell it on their own without
bit firm here and explain what they’ve
their spouse. Unknown to them, they
done is nice; however, you must ask
must have their soon-to-be-ex-spouse
them straight up, “If I buy your house,
sign off on the deed to properly sell the
what repairs must be done?” If they
property even though their name is
answer, “Nothing,” follow up with,
nowhere on the deed. This sometimes
“Doesn’t it need paint and carpet?” if
makes them madder than a mashed duck.
they need a little help here, ask them
So if your state is similar, and their
about the roof, electric, plumbing,
reason for selling is a divorce, you
kitchen, bathrooms, windows, doors,
should ask about the ex-spouse’s
furnace, air conditioning. Jot notes on
involvement in the sale upfront.
items you suspect may need updating.
Next Page >>>
Visit out website at MetrolinaREIA.org
Complete these 6 simple steps to
success within the first 45 days
and you will be awarded a
Certificate of Achievement from
Metrolina REIA.
1. Attend the New Member
Orientation
2. Attend a Main Meeting
3. Attend a Subgroup
Meeting
4. Volunteer at an event
5. Register and attend a
PHP Saturday
6. Complete Your Member
Profile
15 Questions to ID Motivated Sellers Fast continued...
Liens/Encumbrances/Mortgages.
You must position yourself to
make the seller comfortable
by asking questions in a
manner that’s not offensive to
them. Don’t start off by
asking them how much they
owe. Ask them who gets their
monthly mortgage payments.
It’s implied it’s okay to have
a mortgage on their house. If
they hesitate with this
question, tell them you’re not asking them for their account
number or any personal information. Tell them you have
relationships with some lenders and mortgage companies and it
could be a big factor in your decision to buy their property. That’s
pretty easy and not very personal. If you fire them a question of
how much do you owe, they’ll usually immediately retreat, telling
you, “It’s none of your business.” When this happens, you might
have shot down all of the rapport building that occurred during
the “Tell me about your house” phase. Asking the lender’s name
is a baby step forward to getting the information gracefully. Ask:
How much is their monthly payment?
Does in include taxes and insurance?
Interest rate and if fixed or adjustable?
When did this loan start (with this info you should be able to
ballpark the balance if loan is current)?
How many payments behind are you? Do NOT ask, “Are you
behind?” The first question implies it’s okay and acceptable
to be behind on your house payments. The second question
sets the stage for the seller to be perceived as not being
responsible. Nobody wants to be called something bad. If
they say they’re 3 months behind, DOUBLE IT. Always
double the numbers of months behind on payments as a
starting point. You can even ask them, “You say you’re 3
months behind, could it be 6 months?” Surprisingly, they’ll
usually say, “Yes.”
Now you can ask, “How much do you think you owe to XYZ
Mortgage Company?”
could choose to make you pay the loan off in full or foreclose on
the property.
This isn’t meant to terrify you, only to inform you of the risk
associated with certain strategies. Learn how to properly and
successfully use the “subject to” technique with minimal risks.
11. How long have you owned this house? This is an easy
question to help verify the integrity of their information without
leaving your desk. Most towns now have public records available
on the internet. Use it to your benefit.
12. Listed with a Real Estate Company? If yes, how long has it
been listed? This speaks for itself. If you’re licensed, you’re
probably forbidden from talking directly with the seller since
they’ve hired an agent to represent them. If you’re licensed, you
should ask this question and not try to ignore and play “ostrich”
because you’re held to a higher standard as a licensed
professional. No big deal. Just call their agent and work with
them.
13. Would you consider owner financing? This sets the stage to
get them thinking about it even if they say no now. Most of my
super deals involved selling financing.
14. Do you have other properties to unload? You may stumble
onto a retiring investor or someone expecting to sell other
properties in the near future. Most things are cheaper when you
buy in bulk. Consider a package deal.
15. “If I offered you all cash in 2 days, what’s the least amount
you can accept? (Their answer). Is this the best you can do?”
Memorize this one. If you’re dealing with a motivated seller,
they’ll ALWAYS reduce the price from the beginning of the
conversation. I’ve had as much as a $50K drop during the first
phone call. It’s very important to get their sale price at the
beginning and use this question at the end.
With this information captured correctly, you can now pre-screen
Repeat the same for a 2nd position mortgage and even a 3rd
position mortgage and loans. Remember, some sellers consider
refinancing a 1st mortgage results in their 2nd mortgage. This can
be frustrating at times.
The purpose of asking these questions is to allow you the
opportunity to pre-screen and quickly identify not only a
motivated seller, but your ability to make a marginal deal into a
very good deal. Many homeowners now have very low fixed rate
interest loans making very good “subject to” opportunities for
you.
and identify a motivated seller FAST and cut through the bull. If
you know your market and you feel an opportunity, you can make
arrangements to see the property to “verify” the information you
learned on the phone.
If you don’t know your market, get on your computer and check it
out or call a real estate agent. Knowing your market is a must to
operate effectively in your town. Sharp investors identify an
opportunity with this information because they know their market.
For example, the property involved may be exactly the kind of
property you desire and your seller may already have a 2 year-old,
30-year, 4% fixed rate loan in place. This might be right up your Happy investing, have fun and keep on cranking it 24-7.
alley. Caution: buying property “subject to” existing loans usually
allows lenders the opportunity to call the entire note due and
Reprinted courtesy of South Jersey Investors, March 2008.
payable with the sale of the property. In other words, the lender
Support Our Business Partners!
ACCOUNTING
Asset Advance Financial
Collette Koester
4711 Heatherton Place
Charlotte, NC 28270
Phone: 704-756-7890
[email protected]
Capstone Financial Services, Inc.
Doug DeShields
P.O. Box 77225
Charlotte, NC 28271
Phone: 704-765-2201
[email protected]
m
Smith and Shin, Certified Public
Accountants, LLC
Ki Shin
530 Howell Road
Suite 203
Greenville, SC 29615
Phone: 864 322 8995
[email protected]
www.smithandshin.com
ADJUSTERS
AmeriClaims, Inc.
Robert Freitag
305 Post Office Dr. Suite #4
Indian Trail , NC 28079
Phone: 704-821-0108
Toll Free: 866-310-0195
[email protected]
www.americlaims.com
AIR QUALITY & MOLD
INSPECTORS
Gail Allocco Law Firm
Gail Allocco
3126 Savannah Hills Drive
Matthews, North Carolina 28105
[email protected]
Elam Law Firm, PLLC
Brian Elam
630 Williamson Rd.
Charlotte, NC
Phone:: 704-230-4945
[email protected]
CARPET CLEANERS
Carolina Carpet One
David Stophel
5001 South Blvd
Charlotte, NC
Phone: 704-522-0404
[email protected]
All Clean Carpet Cleaning
Joseph (Vincent) Polk
5960 Moose Lane
Charlotte, NC 28269
Phone: 704-491-0849
[email protected]
COUNTER TOPS
39 Dollar Granite
Lee Bonacum
800 Clanton Rd
Suite W
Charlotte, NC 28217
Phone: 704-685-1492
[email protected]
CONTRACTORS
Smith Environmental Solutions
Daniel Smith
8448 Magnolia Springs Drive
Harrisburg, NC 28075
Phone: 704-454-6526
[email protected]
ATTORNEY
Britton Law Offices
Kyle Britton
155 S York Street
Gastonia, NC 28052
Phone: 704-802-9228
[email protected]
Diesel Construction
John Santangelo
6710 Holston Court
Charlotte, NC 28215
Phone: 704-995-6454
[email protected]
www.dieseldev.com
EDUCATORS
Coach Carson LLC
Chad Carson
PO Box 99
Clemson, SC 29630
Phone: 864-654-8617
[email protected]
www.coachcarson.com
The Goins Group, LLC
Wendy Sweet
P O Box 5261
Lake Wylie, SC 29710
Phone: 803-831-2856
[email protected]
INSURANCE
Pentagon Group
Vincent Gahren
5922 Weddington Monroe Rd.
Wesley Chapel, NC 28104
Phone: 980-202-2886
[email protected]
FLOORING
Flooring Pros
Rick Garitano
11523 B Carolinas Place Parkway
Charlotte, NC 28134
Phone: 704-628-8052
[email protected]
Nationwide Insurance
Brett Ziskind
2710 Trappers Creek Ct.
Charlotte, NC
Phone: 704-527-5766
[email protected]
INVESTMENT SALES
HARD MONEY LENDERS
Carolina Hard Money
Wendy Sweet
4607 Charlotte Highway
Suite 3
Lake Wylie, SC 29710
Phone: 803-831-2856
[email protected]
www.carolinahardmoney.com
CCC Holdings, LLC
Claude Stone
2301 B Rama Rd
Charlotte, NC 28212
Phone: 704 531 2888
[email protected]
www.hardmoneymetrolina.com
Lima One Capital
Justin Thompson
2015 Ayrsley Town Boulevard
Suite 202
Charlotte, NC 28273
Phone: 804-854-6457
[email protected]
www.limaonecapital.com
The Goins Group, LLC
Wendy Sweet
P O Box 5261
Lake Wylie, SC 29710
Phone: 803-831-2856
Home Vestors
Kip Roth
2624 West Blvd,
Charlotte , NC 28208
Phone: 704-497-0771
[email protected]
Neighborhood Housing Group
Larry Goins
4707 Charlotte Swy
Lake Wylie, SC 29710
Phone:803-831-0056
MISCELLANEOUS
Crest Homes Inc.
Heather Tetzlaff
4601 Nobility Couirt
Charlotte, NC
Phone: 7047270706
[email protected]
HOME INSPECTIONS
Walter Wilson Inspections
Walter Wilson
4925 Old Fox Trail
Charlotte, NC 28269
Phone: 704-400-5891
[email protected]
CRS Data
Chuck Phillips
341 Troy Circle
Knoxville, TN 37915
Phone: 1-865-584-8017
[email protected]
The Estates LOC
Craig Brooksby
173 Yatkin Falls
New London, North Carolina
28127
Phone: 702-327-4556
[email protected]
Support Our Business Partners!
MORTGAGE LENDERS
REAL ESTATE BROKERS
First Equity Funding
Claude Stone
4801 East Independence Boulevard
# 303
Charlotte, NC 28212
[email protected]
Atypical Real Estate, Inc
Tony Reed
8605 Mulberry Grove
Charlotte, NC 28227
Phone: 704 301 2913
[email protected]
Movement Mortgage
Bryan Maddex
2901 Coltsgate Road
Suite 100
Charlotte, NC 28211
Phone: 7042463833
Bran.maddex@
movementmortgage.com
Charlotte Investors.com
Scott Patterson
P.O. Box 790274
Charlotte, NC 28206
Phone: 704-500-0011
[email protected]
PAINTERS
Dennis Painting
120 Nantz Street
Mt Holly, NC 28120
Phone: 704-915-0068
[email protected]
PRINTING COMPANY
Charlotte Print
Shaun Caldwell
9101 Munsing Drive
Charlotte, Nc 28269
Phone: 704-222-6944
[email protected]
PROPERTY
MANAGEMENT
Costner Realty
Marshall Costner
P O Box 78058
Charlotte, NC
Phone: 704 953 7270
Real Property Management
Dean Draddy
302 McCullough Drive
Suite 400
Charlotte, NC 28262
Phone: 704-510-0888
[email protected]
RPS Properties of the Carolinas
Pamela Striano
P O Box 669331
Charlotte, NC 28266
Phone: 704-529-7368
[email protected]
RPS Properties of the Carolinas
Pamela Striano
P O Box 669331
Charlotte, NC 28266
Phone: 704-529-7368
[email protected]
SELF-DIRECTED IRA’S
American IRA, LLC
Sean McKay
137 Broad Street
Asheville, NC 28801
Phone: 866 750 0472
[email protected]
www.americanira.com
STAGING
Betti Staging
Carlos Betti
6419 Creola Rd
Charlotte, NC 28226
Phone: 704-526-8685
TRASH REMOVAL
Junk King
Terendius David
8425 Old Statesville Rd Unit 4
Charlotte, NC 28269
Phone: 7047013527
[email protected]
Rock Hill Subgroup - 1st Wednesday of every month @ 6:00
pm. Golden Corral, 1031 Anderson Road, Rock Hill SC 29730.
Business dinner, with speaker, discussion, deal sharing and networking. Group Leader: Mac Sharpe (803)514-3780
Email: [email protected]
Free for members
Metrolina REIA Lunch Group – 2nd Wednesday of every
month @ 12:30 pm. Our focus is on investors investing in our
current real estate market. A different local real estate investor is
highlighted as a guest speaker each month. Group Leader: Tony
Reis [email protected]
Location: Golden Corral, 9430 South Blvd, Charlotte, NC 28273
Free for members
Charlotte Landlord Association - 2nd Wednesday of every
month @ 6:00 pm.
Open discussion and support on landlord related real estate.
Group Leader: Sean McKay [email protected]
Robert Shoffner [email protected]
Location: Wishart, Norris, Henninger and Pittman Law Offices
6832 Morrison Blvd, Charlotte, NC
Free for members
Advanced Investor Subgroup - 2nd Thursday of every month
@ 6:00 pm. This group meets to discuss advanced level real estate investments. Location: Golden Corral, 7701 N Tryon St, Charlotte, NC 28262
Scott Patterson at [email protected]
Free for members
Matthews Subgroup - 4th Tuesday of every month @ 6:00 pm.
Discussion and networking in all aspects of real estate investment
Location: Johnathon’s Restaurant, 10630 Independence Pointe
Pkwy, Matthews, NC.
Group Leader: Wayne Clanton 704 221
5888 [email protected]
Free for members
Sonrisers Subgroup - Every Friday @ 7:00 am.
Each meeting opens with a 3-5 minute devotional on investing,
based on Ethical, Moral and Biblical principles. Discussion and
networking in all aspects of real estate investment
Group Leader: Wendy Sweet
Location: LightRail Family Restaurant, 8045 South Blvd Charlotte,
NC 28210
Free for members
Lake Norman Subgroup – 4th Thursday of the month @ 6pm.
Lake Norman Subgroup - Meets from 6 - 8pm
Location: Huntersville Family Restaurant, 105 N Statesville Road
Huntersville, NC 28078. This group will have various guest
speakers to provide insight and knowledge to help the new
investor, the seasoned investor or present a new point of view for
all. Open discussion is welcome and bring your questions!
Contact Jack Knochel 704-502-3589 or Michelle Knochel
Phone: 704-607-2100
[email protected]
Free for members
Concord Subgroup - 1st Thursday each month at 6:00pm.
Location: Logan's Roadhouse -2431 Wonder Dr. NE, Kannapolis,
NC. The Speaker presentation is 7:00 pm. Bring your business
cards fornetworking, notebooks & pens for taking notes, & any
info / flyers on properties and/or services you have available!!!
Bring a guest or three!!! Group Leader: Jon Wilson
Email: [email protected]