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.

 

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[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?

 

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[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!

 

[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

 

[biophase]

Quoting fhs8 / My replies in bold

Ok let me break down exactly why I think that this is a bad idea.

You have to market to people in order to get business.

• This means putting up signs, making phone calls, emails, etc... There is time and cost involved.

You can't really hire other people to do what you're doing.

• They'll just take the business and do it themselves. There's no moat or barrier to entry. Looks like another job to me.

Business would be limited.

• Only a small portion of people would be willing to do this. Most people would reject your offer since it's too low. The average home seller would never use this method to sell their home.

--- I don't think the OP was posting this as a fastlane business for someone. But also remember that magnitude removes the need for scale

It would be better if you had cash to offer the buyer.

• The conversion rate would be higher and it would lower CPA and time involved for each sale. From what I understand the contract says that if it doesn't sell for X amount or more then you can just walk away. Any logical person will look at that and see that you're not providing value. You're simply going to take the difference for what it would've sold for. So getting clients would be hard. They would likely accept an even lower price if you offered cash immediately.

If this was an easy way to make money then more people would keep doing it until it's no longer a good idea.

• That's how the free market works.

The OP said in one post "No, you do not need a real estate license."

• How do we know that? Is the OP a lawyer in all 50 states? I know that CA requires an escrow company and there are tons of other laws on the books. There may also be laws on how auctions should be carried out and surety bonds and registration with the SOS may be needed.

--- This is all part of bird dogging. It's hard but doesn't mean it doesn't happen. That's why their are flyers posted on light poles and we get those We buy houses postcards all the time.

--- I'm pretty sure you don't need a license to purchase a home, or to put and assigns onto a contract or to write up an option.

OP has supposedly been doing it for 20 years.

• So if this idea was so good then isn't the OP supposed to be fastlane? Any proof? Why bother doing this if you have millions in cash?

--- LOL, I never understood this method of thinking. It's like if I list my used Playstation on Ebay and people are like, if you are so rich, why do you care about $50? It's because it's still $50.

Some points from the OP make no sense.

• OP claims this is a very good idea for someone who wants to sell their home fast. However the option contract says that the homeowner has the obligation to sell you the home at X price within Y time but you have the option to not exercise it. Which basically means that the home may not sell within 30 days if you don't get to pocket money. I don't know of too many people that would agree to this.

--- The biggest downside I see for the seller is that the seller just signed an option to sell their home at a low price. However, presumably, the seller is happy with the low price that the option is at. For a 30 day option, I don't think it's risky for them. The biggest change is that they don't have to pay the seller realtor commission which affords them to drop the price a decent amount.

Anecdotes don't mean anything.

• I haven't seen anything that has been given to verify the anecdotes and it's very easy to make up testimonials or hand pick only the best outcomes while ignoring many bad outcomes. I can bring up tons of people who have won the lottery but that doesn't make it a good idea. I can also bring up anecdotes about people succeeding in MLM.

--- What is the worst outcome for the seller in this situation? The house is under contract at the option price or the house is tied up via option for 30 days when an outside offer comes in.

To see just how bad of an idea this is. Let's apply it to cars. What if someone went to you and said, "I'll pay you $4,000 for your car if I sell it for over $6,000 within 30 days but if I don't sell it then I walk away?" Almost nobody would agree to do this. Real option contracts in the stock market cost money to get the right to buy or sell stock. This is like trying to get someone to sell you an option at no cost. It won't happen very often.

--- I would probably do this. I'd like to sell my car but hate going through the test drive process. The problem with consignment is that the dealers take a huge percentage. If I could get my bottom number without going through the hassle of vetting buyers, I'd do this in a second.

For instance, a few years ago I sold my Ferrari for $68k I think. I think it was listed at $80k. Had a couple of low to mid 70s offers with people wanting to test drive, needing loan approvals, wanting to take it to their mechanic.

But this $68k offer can from out of state. Buyer didn't want to fly in at all. He had me drive it to my local Ferrari shop, he paid for inspection was happy with the results. Then he wired me the money. I left the car at the shop. The guy got sent a trailer to pick it up. Super easy transaction for me.

All I had to do was drive it to the shop and I was done. Well worth the difference in offer prices.

 

[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.

 

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[CashFlowDepot]

The Option has a strike price - or the lowest price the seller will take to sell the house. It is much like a reserve. When you advertise the Highest Bidder Sale you advertise that the sale will only happen with approval of the seller, trustee, or who ever is involved.

It is rare that the sale will not produce a buyer for a price that exceeds the strike price. But if that happens, there are two things you can do

1. Renegotiate with the seller to reduce their price. If the seller was present during your 2 day open house ( which I recommend) then they say the effort you put in to getting people at the house and getting the price up. They know that this may be their best chance for getting their house sold quickly so they will usually reduce their price so they can sell and you can still make a profit too.

2. If #1 does not work, you can terminate your option to buy and notify the Highest Bidder that their price did not meet the sellers approval. They can either raise their price or the deal is off.

Either way, it is risk free for you! The worst thing that can happen is you spent time learning a new skill. You also built a list of buyers so you can go find them a different house.

 

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[CashFlowDepot]

Here's a spin on the Highest Bidder Sale method which I have written about before - it's called a MAGIC BUS

You find an older landlord with multiple properties he wants to get rid of. Could be 10, 20, 200 properties.
They will probably need work. Most will be vacant.

Instead of doing a Highest Bidder Sale for 1 property - you do a Magic Bus to sell 20-40 houses in 2 days.

My last Magic bus I sold 40 properties in 2 days making $190,000.

I'm planning my first Magic Bus in PANAMA for January. It will be fun.

Here are more details
http://www.cashflowdepot.com/blog/a...eid/446/crazy-option-deals-the-magic-bus.aspx

 

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[randomnumber314]

Good news, I have a house I can sell!

Now to do my homework and re read everything @CashFlowDepot has ever written.

 

[randomnumber314]

@randomnumber314 how did this work out?

Fell through. I did pass the idea on to a family friend who flips houses, he tried it on one last year and said it worked pretty well for him.

Ok let me break down exactly why I think that this is a bad idea.

• You have to market to people in order to get business.
  • This means putting up signs, making phone calls, emails, etc... There is time and cost involved.
• You can't really hire other people to do what you're doing.
  • They'll just take the business and do it themselves. There's no moat or barrier to entry. Looks like another job to me.
• Business would be limited.
  • Only a small portion of people would be willing to do this. Most people would reject your offer since it's too low. The average home seller would never use this method to sell their home.
• It would be better if you had cash to offer the buyer.
  • The conversion rate would be higher and it would lower CPA and time involved for each sale. From what I understand the contract says that if it doesn't sell for X amount or more then you can just walk away. Any logical person will look at that and see that you're not providing value. You're simply going to take the difference for what it would've sold for. So getting clients would be hard. They would likely accept an even lower price if you offered cash immediately.
• If this was an easy way to make money then more people would keep doing it until it's no longer a good idea.
  • That's how the free market works.
• The OP said in one post "No, you do not need a real estate license."
  • How do we know that? Is the OP a lawyer in all 50 states? I know that CA requires an escrow company and there are tons of other laws on the books. There may also be laws on how auctions should be carried out and surety bonds and registration with the SOS may be needed.
• OP has supposedly been doing it for 20 years.
  • So if this idea was so good then isn't the OP supposed to be fastlane? Any proof? Why bother doing this if you have millions in cash?
• Some points from the OP make no sense.
  • OP claims this is a very good idea for someone who wants to sell their home fast. However the option contract says that the homeowner has the obligation to sell you the home at X price within Y time but you have the option to not exercise it. Which basically means that the home may not sell within 30 days if you don't get to pocket money. I don't know of too many people that would agree to this.
• Anecdotes don't mean anything.
  • I haven't seen anything that has been given to verify the anecdotes and it's very easy to make up testimonials or hand pick only the best outcomes while ignoring many bad outcomes. I can bring up tons of people who have won the lottery but that doesn't make it a good idea. I can also bring up anecdotes about people succeeding in MLM.
• Cashflowdepot website has "free" ebook and sells online seminars
  • My BS meter went off the roof. Of course it looks like a standard Wordpress squeeze page. Selling a way to make money? Are you kidding me? Anyone trying to make a quick buck would design this kind of website. It reminds me of MLM selling products/teaching materials to brain dead sidewalkers.

Where does it say that he did it pro-bono for the church?

To see just how bad of an idea this is. Let's apply it to cars. What if someone went to you and said, "I'll pay you $4,000 for your car if I sell it for over $6,000 within 30 days but if I don't sell it then I walk away?" Almost nobody would agree to do this. Real option contracts in the stock market cost money to get the right to buy or sell stock. This is like trying to get someone to sell you an option at no cost. It won't happen very often.

You're right....better to make lists of why it won't work and never try. How's that working out for you?

 

[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

 

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[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.

 

[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]

Great post, very informative.

So tell me If I'm understanding this correctly..and I have a few questions

Someone wants to sell their home. Instead of doing it traditionally and paying fees and such (and waiting), they give you an option on the property. You then go out and market it and do a Highest Bidder Sale, and because of the option you are able to sell it to the highest bidder. What if you somehow fail at this and no one bids (not that this would happen, just curious), is there a certain time that you need to close it (a week, a month?) before it results in a breaking of the option contract?

My understanding is that you specify an amount that you will sell it for by a certain time (agreed upon in the contract), and then if you sell it for more then the extra money goes into your pocket? What happens if you sell it for less? Not too familiar with real estate, so thanks for the clarification.

Also, would this be realistic for a 19-year-old with no real estate experience to do in a month-two months time?

The beauty of this method is there is NO risk.

An option does not make you legally entitled to buy the house. It gives you the OPTION of buying the house, but you are not obligated.




Sent from my iPhone using Tapatalk

 

[100k]

Came across this video today.... thought it might be useful to someone that's reading this thread.

 

[CashFlowDepot]

ShadowX

On the young side...You need to be old enough to legally sign a contract or have someone else who will sign for you. I think that is 18 years old in most places. My kids both did their first deal the week they turned 18 (with a little help from Mom)

On the older side... there is absolutely no limit.

You do not need good credit.

You can set up the bank account after you make money. You do not need it before doing your first deal.

 

[CashFlowDepot]

YES, the Highest Bidder Sale strategy is being used by people all over the world.

Listen to a free audio to learn how Brian made $148,000 NET profit on a highest bidder sale

http://www.cashflowdepot.com/podcasts.aspx

About 3 weeks ago, he did another one and made $50,000.

Yesterday I got an email from a student in London who did a Highest Bidder Sale and made $17,000 in a week.

Also listen the audio by Patti to learn how she is doing 2-3 Highest Bidder Sale each month with an average profit of $25,000 per sale.

 

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[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.

 

[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

 

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[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!

 

[CashFlowDepot]

and YES a 19 year old can do this.

Both of my children did their first deal when they were 18!

 

[CashFlowDepot]

Yes it will work anywhere

@CashFlowDepot Great thread ! Thank you for sharing your knowledge.

Question: Will this method work in any area ?

I live near Detroit, MI and the housing market here is terrible.

I see a lot of ads on Craigslist and signs posted at busy intersections advertising they buy houses for cash. Lately, I've seen ads looking for people to find houses for sale for companies and earning commission.

Could the competition for buying houses be too saturated here ?

BTW, I worked for a hard money lender so I know a little about real estate.

Yes it will work anywhere, including Michigan.

Do not work with the people who want you to find deals for them - then they make all the profit instead of you.

You should have your hard money lender at all the Highest Bidder Sales to pre-qualify buyers on the spot. It will help you sell the fixer houses faster if financing is readily available. And it will help the hard money lender get more business. win - win!

 

[randomnumber314]

Is there a certain age limit for doing this? Do you need to have business bank account + good credit history etc?

Ask better questions.

 

[CashFlowDepot]

This Easter weekend reminded me of a Highest Bidder Sale I did a few years ago. I accidentally scheduled the open house for Easter Weekend without checking for holidays.

I had an option to buy the house subject to the mortgage with a contingency that I had to have a successful Highest Bidder Sale.

The owners had 4 big dogs in the house and it smelled terrible. So I got the carpet cleaned two days before my open house hoping it would help with the smell.

But, when I went to check on the house the day before the open house I noticed the smell was WORSE, not better. So, I placed an emergency call to my regular carpet installation company. They came out first thing in the morning and got all the carpet and pad replaced before the open house started at 11am.

This house was being sold with seller financing to the person with the most down payment. The asking price was $165,000.

Even though it was Easter weekend I had a steady flow of potential buyers and a lot of bids.

The house was sold for $50,000 down. I got $350 a month cash flow until it was paid off 2 years later.. in cash

 

[Invictus]

Wow he didn't even make a profit and put in hours and hours of time? Total failure.

I still don't understand the idea completely but from what I read so far I think this idea sucks. There's CPA and only a limited amount of people willing to do this. Who made the $49,000 in 4 weeks? The church? Not clear. Why would it be good if the church made $49,000 and why did the member not make a profit?

If I read it correctly, he did it pro-bono for the Church, which benefited from the extra cash. He also got an immediate Gig (Job? Contract? Offer? Not sure the appropriate term in this case) offer to do another one, which would earn him cash.

So. He put in hours and hours of time and got:

*The experience/case study he would need to pitch
*A client
*His church an extra forty grand.

All in all, I'd consider that a total win.


Assuming I'm correct. I'm wrong quite often.

 

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[fhs8]

Ok let me break down exactly why I think that this is a bad idea.

• You have to market to people in order to get business.
  • This means putting up signs, making phone calls, emails, etc... There is time and cost involved.
• You can't really hire other people to do what you're doing.
  • They'll just take the business and do it themselves. There's no moat or barrier to entry. Looks like another job to me.
• Business would be limited.
  • Only a small portion of people would be willing to do this. Most people would reject your offer since it's too low. The average home seller would never use this method to sell their home.
• It would be better if you had cash to offer the buyer.
  • The conversion rate would be higher and it would lower CPA and time involved for each sale. From what I understand the contract says that if it doesn't sell for X amount or more then you can just walk away. Any logical person will look at that and see that you're not providing value. You're simply going to take the difference for what it would've sold for. So getting clients would be hard. They would likely accept an even lower price if you offered cash immediately.
• If this was an easy way to make money then more people would keep doing it until it's no longer a good idea.
  • That's how the free market works.
• The OP said in one post "No, you do not need a real estate license."
  • How do we know that? Is the OP a lawyer in all 50 states? I know that CA requires an escrow company and there are tons of other laws on the books. There may also be laws on how auctions should be carried out and surety bonds and registration with the SOS may be needed.
• OP has supposedly been doing it for 20 years.
  • So if this idea was so good then isn't the OP supposed to be fastlane? Any proof? Why bother doing this if you have millions in cash?
• Some points from the OP make no sense.
  • OP claims this is a very good idea for someone who wants to sell their home fast. However the option contract says that the homeowner has the obligation to sell you the home at X price within Y time but you have the option to not exercise it. Which basically means that the home may not sell within 30 days if you don't get to pocket money. I don't know of too many people that would agree to this.
• Anecdotes don't mean anything.
  • I haven't seen anything that has been given to verify the anecdotes and it's very easy to make up testimonials or hand pick only the best outcomes while ignoring many bad outcomes. I can bring up tons of people who have won the lottery but that doesn't make it a good idea. I can also bring up anecdotes about people succeeding in MLM.
• Cashflowdepot website has "free" ebook and sells online seminars
  • My BS meter went off the roof. Of course it looks like a standard Wordpress squeeze page. Selling a way to make money? Are you kidding me? Anyone trying to make a quick buck would design this kind of website. It reminds me of MLM selling products/teaching materials to brain dead sidewalkers.

If I read it correctly, he did it pro-bono for the Church, which benefited from the extra cash. He also got an immediate Gig (Job? Contract? Offer? Not sure the appropriate term in this case) offer to do another one, which would earn him cash.

Where does it say that he did it pro-bono for the church?

To see just how bad of an idea this is. Let's apply it to cars. What if someone went to you and said, "I'll pay you $4,000 for your car if I sell it for over $6,000 within 30 days but if I don't sell it then I walk away?" Almost nobody would agree to do this. Real option contracts in the stock market cost money to get the right to buy or sell stock. This is like trying to get someone to sell you an option at no cost. It won't happen very often.

 

[strobe]

I was going to write an equally long response disproving each of your theories but I think I can save myself the time via summarizing it all by saying, with your mentality, this is all apparently one big scam, and there's absolutely nobody on gods green earth making money using these exact methods...

Right...

With all due respect, get your head out of your a$$.

Pretty immature response, seems like hearing the truth from @fhs8 offended you. Be aware of people telling you something is easy, you just need to buy my course and you'll have all the answers which is what this thread is about.

 

[fhs8]

In regards to the car piece. If someone needed the money and was looking to sell their $4,000 car but had no luck selling it, I think they'd love to have someone offer to sell it for a higher price. IE: Tom has a $4,000 car but has had no luck selling it. George offers to sell it for him, but if he sells it for over $4,000 then they'll split the extra money.

If someone can't sell their car for $4,000 and posted it online then it's usually because it's too expensive which means you're even more unlikely to sell it for more. Also the difference in price is likely to be very small if it does sell. The problem isn't marketing if the car had some exposure.

As the $4,000 becomes $40,000 or even $400,000 I would imagine that the urge to have someone help you out would be even greater.

You need to put your shoes in the homeowner's for one second. Let's say YOU have a house to sell. Would you sell it for $775,000 - $825,000 through an agent or go through the cashflowdepot guy who says he'll probably sell it in 30 days if you accept $640,000? If you answer $775k - $825k then there you go.

Almost nobody is going to sell their home for $640k when they know they can get $800k. They are going to put in a lot of due diligence and not be fooled out of $100k+. You also cannot just sell an $800k home for 1 million. Marketing will not help because a home has all the marketing in the world once it's on the MLS. If there's a home that's 20% undervalued on MLS people will bid on it.

If someone thinks that there's such a market imbalance/inefficiency then I think that someone should go with cashflowdepot because they need to be educated on why it doesn't work.Even if the idea did work (It doesn't), you can't hire other people to do it for you. You'd have to do all the work yourself which would make it another job.

One more thing is that the title of the thread is misleading. It's not $49,000 in 4 weeks because there's a lot more time involved in just finding people and time wasted on sales that didn't go through.