Making Dollars and $ense Out of Real Estate Training an Investing
equity or no equity, that is the question
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Good morning, everybody. This is purple jacket. Day. Love wearing the old purple jacket. This is Albert Einstein coming to you all from the beautiful pockets of specialized knowledge studios here in beautiful Titusville, Florida don't visit anyways, um, today's topic. This is a good one. Equity or no equity. Whenever you approach a homeowner and they say, well, listen, I'd love to talk to you about my property. The first thing you have to know is whether they have equity or no equity. So it's a, it's a big, wow. There it is. That is the question. It is. That's my little Shakespeare reference equity or no equity. That's the question. That's the first thing you have to find out when you speak to an owner and they're not going to be able to tell you, you got to do your research. You're going to have to have a little bit of public record knowledgeable. Let's go on and see why we have to know this. Okay? The most important question, every investor must ask before every potential purchase is whether there's equity or no equity. And you really don't have to ask the homeowner because they don't know, you have to ask of the property. So you're going to have to do your homework. It's not that hard. I don't think I get into it here in this, in this video, but I do have some good videos on my website. If you please visit, I'd appreciate it. It's www.pofsk.com. So go there. And if you want to learn more about how, what to do anyways, you got to find out if there's equity And here's what happens if there is yes, there is equity. Now you have an open flood gate of options. There's many, many things that you as a investor and them as a homeowner, what you guys can put together and all depends on what you negotiate. Whether you want a straight up purchase. That's what I call. Just buying it straight up. There's no, no gimmicks. There's no seller financing straight up. You want a hundred? I'll pay a hundred. Here's the money. Here's the deed we're done. That's straight up purchase. You can do it. You can buy it wholesale. You can assign it after that. You can buy and hold. You can sell it and rehab it and sell it and buy it and rehab it into a rehab to a, um, a retail buyer. But if there's equity, there's a lot of options that you as an investor have. So that's the first question that you need to ask of the property. Now, if there's no equity, I love this scene right here. That cool. If there's no equity, you only have two choices. Two choices. One is short sale, and the other is walk away Only two Joyce's up because you've got no equity. You could only do two things. And I know there's these guys that go, oh, you can do subject two. You can do this and that. No, you can't. If you can, it's an outlier. It's a, it's a rarity. It's a, uh, what's that called again? Anyways. It's it's not going to happen a lot. It's solely not scalable. So you'll buy it. If it has equity, if it doesn't have equity, you will short it. Or you walk, learn to measure the early characteristics of successful short sale. Because if you can't tell yet, I'm, I'm moving you towards short sales. Because if you walk, you're never going to make any money. But if you learn how to do a short sale, you'll be able to make money from these situations that other investors have to what they have to walk away from. Okay? So here we go. The confirmation of no equity, that's going to be crucial in a short sale because the lender is not going to allow you to sell short. If you have equity, they're just going to say, sell the house. If there's delinquent taxes, that's always a good thing. That's, that's on my list of, of checklist of in my short sell training that you want to know. Now, the delinquent taxes really make no difference in the overall scheme of things. But what it does is it gives you some color, some added information. That's going to give you some more understanding about the situation, because let's talk about this. If the taxes are delinquent and there's a mortgage on it, that means the mortgage gee is not making the tax payments. In other words, the person that will lose the mortgage and a tax deed sale, isn't taking precautions to make sure the taxes are paid. So what does that tell you that tell you that the lenders may be not paying attention, maybe that they're looking for another way out, maybe that they've already written this property off. So delinquent taxes are going to add color. They're not going to, they're not going to be a decision one or the other. It's just going to give us some information about what the lender may or may not be thinking. What's the property condition. If it's pristine and in perfect condition, you're going to have a hard time getting a short sale through why is that? Because you'll see in my training for short sales, that the property condition has to be such that an under market offer won't be viewed as low-ball the property's got to be in poor condition. So you can get the lender to accept an offer that they otherwise wouldn't accept if the property was pristine. So the next thing you look at is the necessity repairs. You can see that from the outside, you can take a look at the roof, take a look at the facial and this soffit. Is there any shingles turning up, anything broken, any blue tarp? I mean, that's too easy. Anybody can tell there's a root problem. If you've got a blue tarp on it, but got to look and see if there's a necessity to repair it, they'll see all these have been done. The one thing all these things have in common is that you haven't talked to anybody yet. You don't have to spend your time talking to Billy about his yard and how come his dog bit Mrs. Jones. And don't talk to anybody. You can do all this research on your own general neighborhood evaluation. Does the property fit? Does the property fit in the, in the condition that it's in in the neighborhood? I mean, is the rest of the neighborhood. Deck is the rest of the neighborhood. Not going to get your best offer. You might, you might fit in pretty good there, but remember you don't want to buy the best house in the neighborhood. But as long as the property looks like it can be the subject of a lower offer than what be market. I think he got, you got a chance to make some money there. Okay? So you have to do all that work or listen, walk away and notice I put it in there. Walk away from these historically profitable opportunities is every single one going to go together? No. Is everyone going to go together with the profit margin that you require? No. Are the majority. And I go, yeah. Yeah. I'm going to suggest that out of a hundred files that you see that you submit to the short sale lender, depending upon how, depending upon how careful you are with your criteria, that you don't try and jam something through that doesn't really fit. You're going to get your short sale accepted 80, 85% of the time, especially with my training, 80 to 85% of the time, you're going to get an accepted or you're going to get authority to use short-sale technique and pay that lender off short and out of those 85%, how many are going to make a profit on? I'm gonna teach you how to make a profit on all of them. Just follow the character, follow my checklist in my training. And you'll see. But the best thing about this training is that you can take a shot and making some money where other investors have to walk away because they just don't know what to do. Okay. Anyways, that's the equity didn't know equity, video, love baby pictures. Bye-bye to you to remember, you don't know what you don't know, check out your real estate clubs. They're a wealth of information there. Thank you again very much. My name is Albert Einstein and please visit my website. It's not my company. Name is pockets of specialized knowledge, but the website is www.pofsk.com. It's on the very bottom of all the, all the slides. Thank you very much for attending. I hope you picked up a little nugget that you'll be able to use one day. And again, thank you very much. I'll see you again on the next.
