How to Make $49,000 in 4 Weeks Without Using Banks or Credit

[CashFlowDepot]

The church wants to sell a single family house for $130,000. It needs about $10,000 to $15,000 in work and is a small two bedroom one bath.

But a CashFlowDepot member who goes to the church explained how he might be able to get them more… much more with a Highest Bidder Sale. So, he got an option contract for $130,000 then proceeded to do his first Highest Bidder Sale (with a lot of help from fellow CashFlowDepot members).

He had 4 weeks to read the Highest Bidder Sale Guide then do the marketing necessary to get a lot of potential buyers to the house during a two day Open House.

The first day he had 25 people at the Open House and 7 bids. The second day he had 50 people and 12 more bids. After 3 hours of Round Robin bidding the highest bidder was $179,000… CASH!

That’s $49,000 more profit than the church thought they would make!

This Highest Bidder Sale was a freebie. The CashFlowDepot member did not make a profit financially but he did gain a wealth of experience and confidence to do more Options and Highest Bidder Sales. In fact, he already received a call from a seller asking him to do a Highest Bidder Sale for him (this time for a big profit).

I plan to have a Coaching Call in September with the CashFlowDepot member who did this deal so he can share more details.

There are not many ways you can make $49,000 profit in 4 weeks. But you can do it by getting options then doing a Highest Bidder Sale. You do not need to own the house!

Some CashFlowDepot members are doing TWO Highest Bidder Sales per month... and smiling all the way to the bank!

Plus, Options and Highest Bidder Sales are one of the only ways to make money (a lot of money) with real estate which does NOT require you to buy the house, have good credit, get a loan, hire contractors, then spend months fixing up the house all while you are still paying monthly holding costs.

So, this technique is risk free if done properly.

Learn as much as you can about getting Options then doing a Highest Bidder Sale. It has been proven to work in all price ranges and all areas!

I have done a Highest Bidder Sale on old, run down nasty junkers, median priced homes in nice neighborhoods, high end properties, multi-million dollar mansions, mobile homes, and even resort properties. It is the quickest way to make a substantial profit with real estate.

Plus a Highest Bidder Sale is the quickest and easiest way to sell a house fast.. and for top dollar.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[randomnumber314]

Great as always.

Link doesn't work. Fix it so that I may throw my money at you.

 

[CashFlowDepot]

I did not include a link. This post was just telling a true story about a recent real estate deal and not aimed at being a sales pitch. Send me a PM if you want more details.

 

[randomnumber314]

Oh...when I viewed it the "highest bidder sales guide" was a link to something with an error. Anyway, PM on it's way.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[MoneyDoc]

Sending you a pm bro. Does this work in any market?

 

[CashFlowDepot]

it works in any market, any price range

I have done a Highest Bidder Sale on old, run down nasty junkers, median priced homes in nice neighborhoods, high end properties, multi-million dollar mansions, mobile homes, and even resort properties. It is the quickest way to make a substantial profit with real estate.

 

[debitandcredit]

The church wants to sell a single family house for $130,000. It needs about $10,000 to $15,000 in work and is a small two bedroom one bath.

But a CashFlowDepot member who goes to the church explained how he might be able to get them more… much more with a Highest Bidder Sale. So, he got an option contract for $130,000 then proceeded to do his first Highest Bidder Sale (with a lot of help from fellow CashFlowDepot members).

He had 4 weeks to read the Highest Bidder Sale Guide then do the marketing necessary to get a lot of potential buyers to the house during a two day Open House.

The first day he had 25 people at the Open House and 7 bids. The second day he had 50 people and 12 more bids. After 3 hours of Round Robin bidding the highest bidder was $179,000… CASH!

That’s $49,000 more profit than the church thought they would make!

This Highest Bidder Sale was a freebie. The CashFlowDepot member did not make a profit financially but he did gain a wealth of experience and confidence to do more Options and Highest Bidder Sales. In fact, he already received a call from a seller asking him to do a Highest Bidder Sale for him (this time for a big profit).

I plan to have a Coaching Call in September with the CashFlowDepot member who did this deal so he can share more details.

There are not many ways you can make $49,000 profit in 4 weeks. But you can do it by getting options then doing a Highest Bidder Sale. You do not need to own the house!

Some CashFlowDepot members are doing TWO Highest Bidder Sales per month... and smiling all the way to the bank!

Plus, Options and Highest Bidder Sales are one of the only ways to make money (a lot of money) with real estate which does NOT require you to buy the house, have good credit, get a loan, hire contractors, then spend months fixing up the house all while you are still paying monthly holding costs.

So, this technique is risk free if done properly.

Learn as much as you can about getting Options then doing a Highest Bidder Sale. It has been proven to work in all price ranges and all areas!

I have done a Highest Bidder Sale on old, run down nasty junkers, median priced homes in nice neighborhoods, high end properties, multi-million dollar mansions, mobile homes, and even resort properties. It is the quickest way to make a substantial profit with real estate.

Plus a Highest Bidder Sale is the quickest and easiest way to sell a house fast.. and for top dollar.

Thank you for this info. Real estate has always been my interest. I will be sure to study your postings. Cheers

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[CashFlowDepot]

BTW - you can also do a Highest Bidder Sale for the

-- selling with seller financing - the bidders fight over who will give you the most down payment. One time I got $50,000 down on a $169,000 house. The buyers cashed me out a year later

-- The highest renter - let tenants bid it up on who will pay the most rent.

Both subject to credit and income approval of course

I have done both of these many times with great success.

 

[MoneyDoc]

BTW - you can also do a Highest Bidder Sale for the

-- selling with seller financing - the bidders fight over who will give you the most down payment. One time I got $50,000 down on a $169,000 house. The buyers cashed me out a year later

-- The highest renter - let tenants bid it up on who will pay the most rent.

Both subject to credit and income approval of course

I have done both of these many times with great success.

Please check your inbox.

 

[Lagron]

Very interesting base system outlined here. Never even thought of these things before, and just when I am looking into real estate, I read this thread.

Thanks!

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[CashFlowDepot]

Fastlane - get options, do a highest bidder sale, get paid in less than 30 days

Slowlane - save up for a down payment, get a loan, buy the house, hire contractors, wait months for it to sell when you finally get paid

 

[CashFlowDepot]

Fastlane - get options, do a highest bidder sale, get paid in less than 30 days (no banks or credit needed because you do not buy the house)

Slowlane - save up for a down payment, get a loan, buy the house, hire contractors, wait months for it to sell when you finally get paid

 

[PrincessK]

Please pm me with more info

Thankyou .

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[CashFlowDepot]

Here's a reprint of a previous post about a Highest Bidder Sale:

That's why a Highest Bidder Sale is different than a typical Open House. Yes, you still do an open house for 2 days with a short fuse on the times that the house is open. By getting as many people there are the same time it create competition and helps the price go up up up. The big different with a Highest Biddder Sale is that you advertise the house about 25% below market to attract bidders. People submit their bid on a bid sheet during the open house. After the 2 day open house you call back all the bidders, in highest to lowest order. Tell them the high bid and ask if they want to advance or increase their bid. Some will drop out. Some will increase the bid. Auction fever always kicks in so it is just as much about winning the bid as buying the house.

I usually have 200 people come through the house in a two day open house. I will get 25-30 bids. And I always sell the house. Plus you have a built in back-up bidder if the high bidder bombs out.

Put up about 50 signs within a 1 mile radius of the house. Also blanket the neighborhood with flyers ( at houses, 7-11, cleaners, restaurants, etc)

Always get a property inspection done so potential buyers can see exactly what they are getting in to. Then there is no excuse to write a contingent contract subject to an inspection. Often the lender will accept that inspection report so it helps to expedite the loan ( if there is one)

Here's part of an article I write about a Highest Bidder Sale I did in Colorado a few years ago. The house sold for more than market value. Even realtors were stopping by to ask me how I got so many people at my Open house.


500 buyers at your open house in two days

That’s how many buyers showed up at the Highest Bidder Sale I did in Loveland Colorado last month.

I usually attract at least 200 Buyer to each Highest Bidder Sale.

Here are some other advantages of doing a Highest Bidder Sale:

(1) The great thing about a Highest Bidder Sale is it has a built in back up buyer just in case the high bidder backs out.

(2) But think about this…You also build a HUGE buyers list in just 2 days. Many buyers at a Highest Bidder Sale are CASH buyers so you can get your houses sold and CLOSED even faster.

(3) With all those CASH Buyers, you get to meet a lot of potential “private lenders” in just 2 days

(4) And I have never done a Highest Bidder Sale that I did not generate interest from other Sellers who want me to do a Highest Bidder Sale for their house. I usually get at least 1-2 options every time I do Highest Bidder Sale. More deals! More profits!

Bottom line, a Highest Bidder Sale is a great way to get your house sold fast, build a buyers list, find private lenders, and get even more deals all in just TWO days!

 

[Mike.B]

it works in any market, any price range

I have done a Highest Bidder Sale on old, run down nasty junkers, median priced homes in nice neighborhoods, high end properties, multi-million dollar mansions, mobile homes, and even resort properties. It is the quickest way to make a substantial profit with real estate.

I'm curious as to how this would work with "run down nasty junkers", because my market area has an abundance of them. I get numerous calls from people trying to sell their junkers in run down neighborhoods, but I just can't move them because there's no value.

Most of these properties are in the 32K range after repairs but need 15-20k in repairs just to get them livable. Even if I pick up the property for 1-3K I have a real hard time moving the property for any profit, and 99% of the investors I work with will not even look at these properties.

 

[Lagron]

@Mike.B ...are you in Detroit?

This is something I have been sitting on for ages, but don't have the $ for it yet, would be nice to keep it to myself but I might as well share it... Buy blocks.

Yea, that's right. Buy entire blocks of property, or the homes on one section of a house, and then...wait for it...Fix them, and sell. BUT, don't just sell...

They are run down for a reason. Thefts, violence etc... they have a "security" issue. Fill that necessity while also filling the need for a home. Think of it as such... Buy a block of homes, perhaps 20 of them... Then, hire security, that is of course paid for monthly by those people in those residences. And just expand on this. Create your own little "community," within the actual run down section of the city. Privatize security. Let those who will "grow" the community to move in, for example, someone who wants to start a deli, should be welcome, as you just provided a means of food access near this community...

You get the idea, yes it takes $. But I ran numbers a few years ago and see this as quite profitable, but only if done on a larger scale, I looked at numbers for 20 properties and it still yielded nice income. Renting out the units was also profitable, since these homes really are 30k or less at 1k rent a month is investment returned in roughly 2.5 years..everything after that is PROFIT.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[CashFlowDepot]

There are many towns where houses are cheap - Balitmore was selling a whole street of houses for $2000 each but there was a catch - you had to put section 8 tenants in them after they were fixed up.

Detroit, mosts of Ohio and other areas which are losing population and have serious financial problems are also areas where you can get houses cheap.

It may be true that local investors do not want to buy there BUT you can market the properties to investors in other countries who see the USA as a blue light special. Chinese investors are buying up Detroit.

The problem with actually buying these houses is that it takes lots of money or good credit so you can get a loan. Then there is the fix up costs, loan payments, and the risks of damage. All these things are slowlane.

it is better to just control the property with an option then flip it for a fast profit. Save up the money you make to buy nice CASH FLOW properties so you can get your money working for you instead of you working for money.

 

[MoneyDoc]

Cashflowdepot or any other member can you please explain to me options?

That's the only thing I don't understand. Please use my condo as the example. I am the seller, you are the person doing the highest bidder sale. Can you please outline the steps?

Also, do you need a real estate license to conduct highest bidder sales?

 

[CashFlowDepot]

See my thread titled OPTIONS EXPLAINED

You do not need a real estate license to do a Highest Bidder Sale or to get Options

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Iwokeup]

Cashflowdepot or any other member can you please explain to me options?

That's the only thing I don't understand. Please use my condo as the example. I am the seller, you are the person doing the highest bidder sale. Can you please outline the steps?

Also, do you need a real estate license to conduct highest bidder sales?

https://www.thefastlaneforum.com/community/posts/384501/

 

[Mike.B]

@Mike.B ...are you in Detroit?

No, I wholesale in Indiana. Close enough though!

 

[MoneyDoc]

Thanks for the link iwokeup. So just to make sure I understand everything. I see a condo selling for $290000 and has been on the market for quite a while. I approach the seller and tell him listen, every month your house isn't sold is costing you money that can be saved. I'll sell your house in 30 days contingent on an option. I subtract 25% from the houses market value, so, $217500. I put up ads for an open house on the condo priced at $217500 - highest bidder takes it. The highest bid is $285000 and the seller agrees.

Would I state on the option that I get such and such of the amount of the price sold. So say, 10% of sale price. That leaves the buyer with about $260k, how does he benefit from this? Unless I got something wrong..

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Mike.B]

It may be true that local investors do not want to buy there BUT you can market the properties to investors in other countries who see the USA as a blue light special. Chinese investors are buying up Detroit.

I've seen this in my area and I can't compete with their money obviously. They are buying complete shit site unseen in THE worst neighborhoods. I honestly don't believe these neighborhoods will turn around for many years, if ever.

 

[MoneyDoc]

Also, if I have an agent and I'm trying to sell my own condo, can I use this method?

 

[CashFlowDepot]

Yes you can use a Highest Bidder Sale to sell your own condo. But you need to get a written agreement with your agent that if you sell it you do not owe him/her a commission.

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[MoneyDoc]

Cashflowdepot, would you please read my previous post? Thanks.

 

[Bowden]

Posting here so I remember to check back to this thread

Thanks for the info

 

[CashFlowDepot]

Here are more details about how to make $49,000 in 4 weeks ( or less)

As with all great real estate opportunities, it has to start with a motivated seller. A motivated seller is someone who needs to sell quickly for one reason or another. Or it could be someone who just needs to sell quickly because they have an incredible opportunity someplace else and don't want to wait 6 - 12 months for a traditional listing with a realtor.

You can find motivated sellers all over the place, and in every country.

Some reasons for being a motivated seller:

death in the family
illness
lost job
better job across the country
divorce
marriage
need bigger house
need smaller house
lots of repairs needed and no money or desire to get them done
financial problems - business going under
retirement
adventure waiting
etc

You need to be dealing/talking directly to the owner --- so properties listed on MLS will NOT work for this technique.

Once you find the motivated seller, you need to either negotiate to buy the house for 20-30% below market ( if in good condition) or more if in bad condition ... OR... if there is little equity, you need to negotiate to buy the house subject to the mortgage or with seller financing. Either way will work fine for a Highest Bidder Sale.

Next, you will get an OPTION contract. An option contract is a contract to buy the house but it will have a contingency clause that says, you will only close if you are able to sell the house after doing a Highest Bidder Sale.

You can learn more about options in the thread OPTIONS EXPLAINED

If you get an option contract to buy the house for 20-30% below market (or more), then your exit strategy will be to sell to a buyer who will either pay cash or get new financing. Your profit will be the difference between the Option contract price and what you sell it for. Example. Your option is $130,000. You sell for $179,000. You make $49,000

If you get an option to buy the house subject to the existing mortgage or with seller financing, then your exit strategy will be to sell the house with seller financing to the person with the most down payment. For example, the house is worth $150,000. There is a mortgage for $128,000. Your option is for $128,000 subject to the mortgage. You do a highest bidder sale advertising the house for sale for $155,000 with seller financing to be sold to the person with the most down payment. The high bidder is $30,000 down. So you make $30,000 (note that selling with seller financing is faster and easier)

Immediately after you get the option contract, you switch in to marketing mode. A Highest Bidder Sale requires 5-6 days of aggressive marketing before a 2 day Open House.

The marketing consists of
1 big sign in front of the house that says the house will be sold to the Highest Bidder
run ads on craigslist 2 times a day every day
press releases
get 100 coroplast signs made ( they can be used for future HBS also) - these are distributed in a 1 mile radius the day before the open house
Fliers in the neighborhood

When you are selling to the person who will pay the most, you advertise the house at about 50% below market value. In the $179,000 example above, you would advertise the house at $79,500 or maybe $85,000 for the starting bid.

The low low starting bid attracts more bidders.
The more bidders you get to the house, the higher the price goes up.

For selling to the person with the most down payments, you advertise the starting bid at $2,000 - $3,000. Once again the low price attracts a lot of bidders.

the 2 day open house is usually on Saturday and Sunday from 12 - 3. You want a short time frame so there will be a lot of people at the house at the same time. This creates a sense of urgency ( lots of bidders and interest) which helps get the price up.

Bidders submit their bids on an open bid sheet.. meaning they can all see what the other bids are. But you explain that, like a poker game, it is better not to reveal what their REAL high bid is. So long as their name, phone number and bid amount is on the sheet that is all that matters.

AFter the open house, you usually have 25-30 bids.

then you arrange the bids from highest to lowest. You call each bidder to tell them what the high bid is then ask if they want to increase their bid so they can be the high bidder. You usually have to call everyone 4-5 times or more. Some drop out. Some advance their bid. Finally, you have a high bidder.

This is just a general overview. There are many other details which I explain in my book and it also has a good option contract and all the highest bidder sale paperwork.

Some other important things to note.

I always get the property inspected before the open house and have the report available for all bidders to see so they know exactly what they are getting in to.

I have a mortgage broker at the house to qualify people on the spot.

I do not allow any contingencies of my buyers except 3 days to get financing approval if they need financing. If they cannot get their financing, I go with the 2nd highest bidder.

Benefits of selling this way

it saves time - you sell the house and get paid in 30 days or less
the seller can move on with their life
buyers are not negotiating with the seller - they are competing with other buyers
you have a list of back of buyers
you have a list of buyers who want houses in that area so you can do more marketing to sell them houses too.
there are usually many cash buyers at these sales - so a good way to find private lenders too.
you get paid FAST

Interesting things I have discovered after doing 100s of Highest Bidder Sales

the higher the price, the bigger the chance the buyer will pay cash
market to international buyers too - some will buy sight unseen - they text in their bid
buyers love this way of buying

Any other questions?

 

Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

[Lagron]

@CashFlowDepot - I have to say I love the information here. I tip my hat to you champ. Very insightful.
I see a nice way to scale on this type of business transaction. Would take some working/figuring out but its what I enjoy doing. With that said...

I will need to do this a few times on my own to get the idea of it all.

The process is quite simple when explained but there are a few things that will take time. You've given me a golden ticket to income with a real estate related business.

I'm going in with this. Will start a thread to keep track of my progress/process. I feel it'll be supplemental to my current income stream (I'm actually thinking of getting a relative or close friend of mine into this, if things work well).
---

The real question is, how to find these distressed sellers? I have already begun searching for them, and I can easily find distrissed sellers but the price tags involved are half a million and upwards, one seller is at a 1.6 Million price tag. I feel I don't have sufficient marketing in place to target people who can afford the deals I can see occurring if I did.

Anyways, thats the question- how to find them? I did some reading, and already have experience with tax lien sales etc but I don't think that's going to really help me.

Any information is welcome, if its too infringing upon your book and what it entails, please do not answer my question. After my first sale, I'll pay for it, and for more.

Thanks bud.

 

[MyronGainz]

This is kinda cool, it's like the "pump and dump" scheme but for real estate lol