Naked Lady Real Estate, The Bare Truth About Real Estate Investing

Do folks really want to be helped out?

We had a great meeting training meeting this week for the "pacrats" land trust group.  Wow what a great turn out!  Over 50 people!  We were so fortunate, because not only did we get Joe Cain from NARS to come and train us on the Trust documentation, we also had Pete Mendenhall, land trust educator extraordinary! 

Actually, I talked Pete into coming with me because it was his birthday and I wanted all of us to take him out for a couple of drinkie poos afterward! 

I realized something very interesting that night.  I have been talking to Pete about this on our radio show "The Naked Investors", but I really saw it true for other investors as well.  Putting properties into a Land Trust is not a new concept by any means.  But what seems to be new is that we have a whole new market of sellers and buyers out there.  The last time the industry had this many problems getting loans or selling homes there was a different generation of people!  So now - even though investors may understand the concept of "owner financing" type of deals, the main stream public doesn't quite get it yet. 

So as these homeowners in trouble call us for help, we try to explain "leaving the loan in your name for a couple of years and put you home in a Land Trust concept", and they have no clue what we are talking about.  As a matter of fact - they get sketchy about it. Also with Buyers.  They don't quite get what a great deal it is for them to not have to qualify for traditional financing, but rather purchase one of our properties through a Land Trust.   

It seems that not only educating ourselves as investors is important, but also educating the sellers and buyers about this incredible strategy on how to sell & buy homes - The Non Traditional Way!  Creative financing is all we are talking about here. Of course - investors - we are not trying to teach them how to fly a plane here. We are just the travel agents showing them the different flights & hotels that are available for their trip.  As my grand pappy used to say: I don't want to know where the water comes from, I just want to turn on the facet and have water come out.  Actually my grand pappy never used to say that - I always say it.  But it sounds better coming from someone older and wiser doesn't it?

Anyway - it seems that Buyers & Sellers workshops might be in order ey? .... stay tuned!

Pictures and video from our fun filled Pacrat Meeting!

"Little Petey" as he is called on our radio show - goes over questions with Lisa Cooley a member of Pacrats.

 

Happy 22nd anniversay of your 21st B-day Little Petey!

Several drinks later...

PACRAT meeting was great!!

Wow what a great PACRat's meeting last night.  We are growing!  Lots of cool stuff we talked about.  Some of the things (I think) I learned were:

1.  Buyers do not give a "Deposit" to move into the home.  The give a Refundable Contribution, which means that at the end of the term of the contract their contribution is refundable. e.g. they contribute $30K to the trust and at the end of the term, the refundable contribution can be deducted from the fair market value.

2.  Find Buyers for our current homes by marketing to homeowners who may be loosing their home in foreclosure. This will help so many people because they no longer have good credit, and will be in need of finding a new home.  With us they can buy without having to qualify for a new loan and will still receive the tax benefits of a homeownership.

3.  We also discussed taking multiple unit buildings and turning them into "condo's" using the trust, which is called "quick condominumization."  Basically assigning beneficial interest to each unit, therefore making them a an owner in the trust and now having all the benefits of ownership, which includes tax benefits.  This is a little over my head and although sounds fascinating, will take me a little longer to learn it!

ALVINS SIGNs are the hit of evening!

ROSIE and Petey!

Land Trust Deal... in the works

I have a deal in Inglewood that the seller is anxious to get rid of.  He needs 60K to move into his new home that he is trying to close on.  He is running behind 5 months payments and has had his home in escrow 4 times.  All 4 buyers fell through because the buyers could not get Qualified!  This is such a huge problem.  We all know this. 

The good news is that he does have plenty of equity and I will be able to pull out the 60K to give to him.  What a great opportunity to work with this fella.  He has had a messy divorce and is just looking for a way to get out from under the house and start a new life.

I know the first rule is to not get emotionally involved in these deals but I am going to work my butt off to get this deal completed and money in his pocket to move.

I will be able to take the house subject to the existing loan and then we will put it into a Land Trust.  We will then be able to sell the home with no bank qualifying and get someone in there right away to buy the house through the Trust.  This is great news!

It's such a nice home.  Over 2400 sq ft in a great area of Inglewood!  I think I will look for a private money investor to loan the 60K at 10% to be paid within 3-6 months.  Additionally I might allow them to be a partner in the deal.  I'll see how it goes in the next couple of days.  I'm going to give Mr. Bill Gatten a call and ask him to help me structure this deal...!

PACRats Meeting on Nov 29 2007

The Next PACRats - Los Angeles meeting is set!!

Date:  Thursday, November 29th.

Networking begins:   6:30pm
Meeting Starts:  7:00pm

TOPIC:  What to say to Sellers, How to Say it, Overcoming Naysayers

Trainer:  Pete Mendenhall

Location:

Jay Miracle's office

5839 Green Valley Circle, Ste. 200
Culver City , 90230