Ron LeGrand – Big Money In Big Chunks

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Big Money in Big Pieces

Attractive properties in beautiful areas provide for almost 80% of my present real estate revenue.

These houses do not require any repair, we do not need to raise any funds, and credit is not an issue. We don’t make use of it.

There are no banks, committees, short sales, contractors, Realtors, appraisers, or other expensive entanglements, and we are generally in and out in less than 30 days, often in less than a week.

We promise that no loans or leases will be made, and that no other suppliers or decision makers will impede our ability to get paid on six to twelve deals every month.

The majority of the work is done by virtual assistants, so it’s not a time-consuming, life-draining job that we do just because we have to. It’s a wonderful, exciting company that we look forward to every day because it’s never dull, and we work with smart sellers and buyers who have money and appreciate our presence in their lives.

We’ve been focused on lovely houses (For Sale by Owners) for about 212 years now, since since we introduced ACTS (Assignment of Contracts and Terms) to the globe, and the lessons we’ve gained have inspired a quantum jump in our business and hundreds of my students throughout the country.

Before I go any further, you should realize that ACTS is only a small portion of our business and, honestly, is not where the major money is. I’ll get to it in a second.

Everything I have said about our firm is accurate, however until recently, our market consisted of residences ranging in value from $100,000 to $500,000, with the majority of them being around $300,000. As a result, the remuneration ranged from $10,000 to $25,000. The same was true for our kids, most likely because they felt at ease there, which is what I taught them.

But Everything Has Changed.

Now it’s all about…

Big Money in Big Pieces

Allow me to explain!

When we sell with owner financing or lease buy, our revenues come from down payments or non-refundable option deposits.

On $100,000 properties, our typical deposit was around $10,000, and once we moved into the 2s, 3s, and 4s, deposits regularly reached $25,000 or more. Furthermore, we discovered that the sellers were simpler to work with, and the purchasers were overjoyed to find such wonderful properties that they could buy or option on when they couldn’t qualify at a bank. Because their alternatives were so restricted, they’d scrounge up whatever penny they could to please us. In fact, we were their only choice for buying a property in that price range with seller financing or lease purchase.

That was back then!!

A wise guy once said to me

The more money you wallow in, the better.

The more you stick to me!

Recently, we have been concentrating on high-end homes and working with clientele who are doing the same. We discovered some incredible findings. The largest was…

We are paid significantly more.

For Performing the Same Task!

People who own homes worth more than a million dollars have the same difficulties in selling as those who own lower-priced homes. Indeed, some are considerably worse.

They must locate a qualified buyer who can put down 20% and pass bank scrutiny for a loan, and to receive a jumbo loan today, you must be spotless. This significantly reduces the purchasing pool yet creates a great opportunity for us.

Our whole operation is unrelated to bank finance. In reality, the reverse is true. I can sum it up in one word…

Ron LeGrand is offering Big Money in Big Chunks at the standbysun.

TERMS

The aim is straightforward…

Find vendors that are willing to sell with owner financing or lease purchase…TERMS!

When we can, we either transfer our contract to a terms buyer (ACTS) or stay in the agreement for the truly huge paydays.

When dealing with properties worth $1,000,000 to $10,000,000, even the ACTS payouts are substantial.

Take a look at this. To qualify for a $3,000,000 home, you’ll need $600,000 down (20%). And that’s assuming you have good credit and income. Even with $600,000 down, it doesn’t take much to get turned down.

Assume the same customer sees a $3,000,000 home advertised with…

No Bank Qualifying Owner Financing

People wanting to purchase $3,000,000 homes are not broke. They all have money, but many of them may not be eligible for a loan. I’m one of them, by the way. Commercial transactions that went bad following the 2008 collapse forced me to… Unable to obtain a bank loan. That doesn’t imply I couldn’t make the payment or put down a large deposit. I’m not the only one.

If it takes $600,000 if I’m qualified, think how much wiggle room you have if you can offer this identical property with terms to a “unqualified” buyer.

So it really really that simple…

Find sellers willing to sell with owner financing on favorable terms, then sell the house for a higher price, more down, and more each month, and keep the difference.

My favorite is Free and Clear House.

You agree to purchase $3,000,000

Down(5%) $ 150,000

Mtg to Seller $2,850,000, 3% interest only, 5 year balloon payment

$7,125 to the seller

Relax, you don’t have to come up with the $150,000, or even make a $7,125 payment, or even guarantee a loan. That’s the allure of this industry… ZERO RISK!

Your seller is well aware that you will not be closing until you have found a buyer, or we may just receive 90 days to close and keep the seller out of our business, giving us plenty of time to find a buyer.

If the buyer does not show up (which is exceedingly unlikely), we will simply terminate the deal. In the above scenario, I would have a simultaneous closing and complete the acquisition and sell on the same day. Here’s why…

A buyer approaches us and offers $400,000 down on our $3,295,000 asking price, with no bank qualification.

Remember, if they qualify, they’d need $600,000, so they may have strong credit but not enough down or terrible credit and time to correct it – so the sale looks like this.

The asking price is $3,295,000.

Down $400,000

Buyer owes you $2,895,000 over a five-year period.

You will be paid $11,875 with 5% interest alone.

Yes, the payment may frighten you, but it will not frighten those wanting to purchase a $3,300,000 home. To clarify, if the buyer loans the same amount at 4% for 30 years, the payment is $13,606.

So, what have we achieved?

Payment in Advance

$400,000 in $11,875 in

-$150,000 out -$7,125 out

$250,000 net to you equals $4,750 net per month

The buyer owes you the same principle that you owe the seller, but you get paid $4,750 per month to collect and make payments on a home you don’t own…

And if the buyer fails to close, you get to take the house back and start over…

$250,000 better off.

Do you understand why I’d remain here? Every month, I see 4,750 reasons, plus another large payout if the buyer fails, plus a possible reduction on the seller’s note if the buyer refinances.

Assume the seller wants around $11,000 per month and you can’t see the market paying more. There is no compelling reason to continue in the transaction. In such scenario, just transfer your contract to purchase to a new buyer (ACTS), collect your $250,000, and walk away from the transaction.

OK, I understand your concerns, so let’s go through them here so we’re all on the same page.

Q: Will high-end vendors provide owner financing?

A: Yes, around one-third of them will if the house is free and clear, and roughly one-third will lease option if the house is mortgaged. In any case, we make six figures.

Q: Do I need a permit to do this?

A: Not if you have a commitment to purchase. You can use it as well if you have a license.

Q: What if I make a lot of money? Will the seller be upset?

A: Not if you treat it properly. In my case, I made a profit by boosting the sales price over what the seller desired. They paid no commission and it cost them nothing. Plus, if I stay in the deal, the seller doesn’t have to know how much I made on the sale.

I’ll close the purchase and sale on the same day, but at different times. The seller will never meet my buyer or know the specifics of my transaction. Remember, I’m still in the bargain.

I collect payments and make payments until the buyer refinances and pays me off, which I hope will take a long time because I am paid $4,750 per month. If it’s an ACTS deal where I assign my contract, the seller will know how much I make, but so far the worst that’s happened is that we’ve had to renegotiate the down payment split. We always get at least half of what we ask for.

Q: Aren’t high-end sellers difficult to work with and too sophisticated?

A: Nope. They are easier for us to deal with. They get it with very little training.

Q: Isn’t the pool of buyers for these high-end homes much smaller?

A: Yes, but you only need one per house, and each transaction generates a six-figure profit. However, we are looking for non-qualified buyers with money who will be all ours with no competition. Do you know of any investors who are willing to offer a $3,000,000 house with owner financing or lease purchase?

Q: I heard Dodd Frank made seller financing illegal. Is that correct?

A: Nope, you misheard. A few rules have changed, but seller financing is still available.

I’ll tell you something. You won’t be interested in the cheap stuff once you’ve cracked the code on these high-end homes.

I’m going to assist you in doing so.

I’m going to call it…

Big Money in Big Pieces

Here are some of the topics I discussed:

How to find high-end houses: Have them call your answering service, then have your VA call them to screen them before you get involved. We will provide the trained VA as well as the answering system.
How to quickly prescreen prospects, deal with only the best ones, and get them to agree to terms before you visit the house.
How to approach sellers, what to say, and scripts that have proven to be effective in overcoming seller resistance to terms. In fact, we’ll be practicing this a lot in class because we know it’s the most difficult obstacle for our clients to overcome… You’ll leave feeling confident in your ability to make these decisions.

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