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Hi, it's Joe. Here's the next one. It says, "Joe, you keep talking about your incredible
FSBO system. Would you tell me how it works or do I have to pay you thousands of dollars
to find out?" It's a very simple process. What we're doing
is we're going to for sale by owners and instead of saying, 'Hey, I'd like to list your property
for you,' and having them get all upset with us and hang up on us, what we do instead is
say, 'I'd like to buy your property. I'm an investor and we buy on terms. Would you consider
selling?" Instead of calling them by phone, we do it
a couple of different ways. One, we use voice blasts which I think I talked about in other
videos that I've done. The other is we use email blasts, and you can go onto websites
like fsbo.com or forsalebyowner.com (almost every town now has its own for sale by owner
website) - you can go onto that site and you can contact those sellers by email and you
can send them a simple letter (which I have written copies of it) but you can do something
just along the lines of what I just said, and you'll get responses from them.
Now, when you get a response from them, the way you're going to structure it is - you're
not going to buy their property for cash, you're not going to get a loan, you're not
going to put down payments down - what you're going to do instead is offer them an offer
that an investor would make. After all you, you told them you're an investor and that
you wanted to buy "Subject-To" or that you wanted to buy on land contract. And that's
exactly what you're going to do - you're going to make that offer to them.
A certain percentage of them will say yes, and it's actually a pretty high percentage
once you get good at this. A lot of the reasons people don't sell on terms is because they
don't trust the person who's making the offer. If they trust you and they think you're going
to follow through with what you offer, it's a great solution for them - you can get them
very close to full price on these deals, it doesn't cost them any closing costs. Now,
they don't get any money at closing but most of the people that are selling this way can't
do that anyway. For sale by owners: there's two types of for
sale by owners: there's the need and the greed for sale by owner. The ones that need to do
it are typically ones that don't have a lot of equity and they can't afford to pay for
a realtor. This is the perfect kind of person to go after, and I'd say it's about a third
of all for sale by owners out there are people that need to sell it themselves because they
can't afford to pay a realtor to do it. The other two thirds of people that are in
the greed category. They don't want to pay a realtor. They don't like realtors. They
don't think realtors deserve the money they earned, and they want to do it themselves,
they think they can do it themselves and they also tend to overprice their properties. Well,
those people, you can help, too. You can help them get equity out of their property and
there's also things that you can do with refinancing, helping them refinance the property so that
they can then sell it to you on terms, and then you can take over the property and put
a lease option tenant in it, a regular tenant in it, have it managed by a professional and
then never touch the thing again. This is how I do it with all of the properties
that I own. I don't manage my own properties. I hate to be a landlord. I don't ever want
to talk to tenants. I don't ever want to evict anyone. I don't want to have to go after and
collect late payments. I don't want to have to do repairs. I don't want to clean out any
toilets. I want someone else to do that for me, so I pay a manager to do that, and for
8 to 10% and sometimes even less than that, you can have property managers and you can
get them all over the country (I have properties in a lot of different states). You can get
good property managers from all over the country to do this type of thing for you. This is
a great way to do it with for sale by owners. Hopefully that answers the question. You didn't
have to pay thousands of dollars to find that out, either. Alright, thanks.