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

[KLaw]

Good news, I have a house I can sell!

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

@randomnumber314 how did this work out?

 

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[fhs8]

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).

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?

 

[jfny]

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?

@fhs8 I thank you for bringing this thread to my attention.

But if you really just read that whole thread, and think it's a terrible idea, or that it was not worth the guys time although he gained a significant amount of knowledge, you sir, might be a "total failure".

I've been planning my entry into the real estate game for a while now. Gonna make my move really soon and I'm excited for it. Gonna add this idea to my arsenal.

Thanks @CashFlowDepot
Great thread. Your others too. I have learned a lot.

 

[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.

 

[5FOR2]

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 did a little research on BiggerPockets about this strategy. The buyer does pay for the option contract up front. If the property sells within the option end date, then you simply owe the remainder of the agreed purchase price. If not, the property owner keeps the initial option premium.

 

[jfny]

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.

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$$.

 

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[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.

 

[CashFlowDepot]

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

In most countries, you need to be 18 to legally sign a contract. If you're not 18, you can get someone else to sign for you.

You only need a personal bank account, now a business bank account.

You do not need good credit or any credit at all. Remember, you are NOT buying these houses, you are only controlling them with an Option contract.

 

[CashFlowDepot]

How hard is for you to convince the owner to sell you the house well below market price? What is your pitch? Do you promess the owner that he will get the money in a month?
I want to start doing this, couldn't find a property though.

The owner needs to be motivated to sell FAST and at a reduced price to get it sold fast. Motivated sellers are out there all over the place. I have a lot of LEADS for motivated sellers right now.

You should not make promises you can't keep. You promise the seller that you will do aggressive marketing to get as many bidders to the property as possible. If you do your marketing correctly, you will get 100 people at the property during a 2 day open house. That should result in 25 bids. Then the bidders fight over who will pay the most. It's a beautiful things to watch!! And very very profitable.

 

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[CashFlowDepot]

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?

The church made the profit. He helped his church make the extra $49,000 profit that they would not of had if they just sold the property below market.

Even though the investor did not make any cash profit on this deal, he DID gain a wealth of knowledge about how to do a Highest Bidder Sale. Since this church property, he has done many more Highest Bidder Sales and made over $100,000 in 6 months.

The church property gave him the confidence to do Highest Bidder Sales.

Would you do a free deal to gain the knowledge to know how to make $100,000 in 6 months?

 

[CashFlowDepot]

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.

This is not about buying a $10 book ( there is no course). It is about teaching people to think OUTSIDE THE BOX. There are a lot of ways to make substantial profits with real estate without buying the house or fixing it up.

 

[CashFlowDepot]

I have many hundreds of examples of successful Highest Bidder Sales. Here's another one..

Mary Jane has been trying to sell her house for almost a year. She had it listed with one real estate agent for 6 months but only had 2 showings. Then she listed with another agent for 6 months but still no reasonable offers.

The house is in a great location but it could use a little TLC. It was priced below market to compensate for the needed paint, carpet and bathroom upgrades needed. Fixed up, the house is worth $275,000. It has been on the market for $250,000 for 6 months then $225,000 for six months.

Using the traditional listing methods, it just was not getting enough people to see it to get any interest. Mary Jane did get one low ball offer from an investor for $150,000 but she turned it down. She knew there had to be a better way to sell her house so she could make more money.

Then Mary Jane got a postcard from Susan about selling her house in 7 days. Mary Jane thought it was too good to be true but it did not hurt to meet with Susan to learn more.

Susan explained the Highest Bidder Sale (HBS) method to Mary Jane. She discussed how getting 200 to 300 or more people to a two day open house would give the house the exposure it needed to get the price up. A HBS creates excitement and a sense of urgency for buyers.

Mary Jane agreed that a Highest Bidder Sale may be just what she needed to get her house sold. She really had nothing to lose to give it a try. If it did not work, she planned to reduce the price then list with a 3rd real estate agent or maybe she would just try to sell it herself to save the commission.

Susan explained that she would need to get a contract to buy the house before she could do a Highest Bidder Sale. She put up a $10 option consideration. They agreed on a price of $199,000 and that they would split the proceeds over that amount. Susan explained that if it sold for $225,000, Mary Jane would get $199,000 plus $13,000 — or $212,000 (minus any prorated taxes). This was more than she would have made if it sold for $225,000 then she had to pay a 6% realtor commission.

Susan could make $13,000 for doing all the marketing then doing about 8 hours of work at an open house. Not bad! That’s about $1625 an hour.

Susan advertised the starting bid at $178,500. Potential buyers POURED in to the open house. 250 people on Saturday. 300 people on Sunday. She got 35 bidders and most were cash buyers.

THEN THE FUN BEGAN!

Susan called each bidder, starting with the highest bidder, to tell them what the high bid was and ask if they wanted to increase their bid. The minimum increment was $2000. The bids went up and up. Finally after 2 hours of calling all bidders, the highest bidder was at $249,000 cash. And the second highest bidder was at $239,000 cash. The third highest bidder was at $238,000 who needed to get financing.

The result was that Mary Jane got her house sold in 7 days. She made $224,000 with no real estate commissions to pay.

Susan made $25,000 PLUS she got 2 other people in the neighborhood who asked her to do a Highest Bidder Sale for their house AND she built a huge buyer’s list of 300 buyers.

NOT BAD FOR A WEEKEND!

That’s how a typical Highest Bidder Sale works.

You let the market determine what the price of the property should be. If you have a low starting bid price, it attracts a lot of potential bidders/buyers. The volume of people who show up at the house at the same time, creates competition and a sense of urgency which helps the price go up and up.

Highest Bidder Sales work with any kind of real estate in any price range.

 

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[CashFlowDepot]

I did a little research on BiggerPockets about this strategy. The buyer does pay for the option contract up front. If the property sells within the option end date, then you simply owe the remainder of the agreed purchase price. If not, the property owner keeps the initial option premium.

Yep, the buyer usually pays $10 to $100 max for the option contract. A small price to pay for the chance to make a HUGE profit fast.

 

[Invictus]

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

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).

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.

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.



That said, I cannot speak to your first comments.

 

[jfny]

Yep, the buyer usually pays $10 to $100 max for the option contract. A small price to pay for the chance to make a HUGE profit fast.

Hey @CashFlowDepot I would love to hear what methods you would recommend for someone who's new to real estate, and is looking to build up a buyer's list. For example, let's say I find one of these houses, how should I go about contacting people and getting them to show up at the open house. I currently don't have many connections in real estate and am not sure I could get a few hundred people to show up to an open house. Also, do you have any copies/links to that e book you were talking about? I don't see the link anywhere.

 

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[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.

 

[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?

 

[fhs8]

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

Right so based on your logic you shouldn't make any lists and just try whatever comes your way. Brilliant.

The premise that you'll get a bidding war because you'll get more exposure than MLS is laughable. Even banks prefer short sales over foreclosure auctions because auctions pay less money.

 

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[KLaw]

Right so based on your logic you shouldn't make any lists and just try whatever comes your way. Brilliant.

The premise that you'll get a bidding war because you'll get more exposure than MLS is laughable. Even banks prefer short sales over foreclosure auctions because auctions pay less money.

You never answered his question...

 

[fhs8]

You never answered his question...

About if it's been working good for me? Yes it has been working good. It wouldn't change my arguments anyways so I don't know why the question was asked.

 

[KLaw]

About if it's been working good for me? Yes it has been working good. It wouldn't change my arguments anyways so I don't know why the question was asked.

He was referencing your "attitude" in general, not your argument...I think. What kind of successes have you had? Thanks for replying.

 

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[fhs8]

He was referencing your "attitude" in general, not your argument...I think. What kind of successes have you had? Thanks for replying.

My attitude has nothing to do whether or not something is a bad idea. It's nothing more than an ad hominem logical fallacy. I won't mention if I had successes because it doesn't solve anything. So are any of my points incorrect?

 

[KLaw]

My attitude has nothing to do whether or not something is a bad idea. It's nothing more than an ad hominem logical fallacy. I won't mention if I had successes because it doesn't solve anything. So are any of my points incorrect?

Again. You are missing his point. Two completely separate points. One doesn't have anything to do w another.we are mucking up this thread. Start a thread about some of your successes?

 

[fhs8]

Again. You are missing his point. Two completely separate points. One doesn't have anything to do w another.we are mucking up this thread. Start a thread about some of your successes?

They are very similar points. My attitude towards an idea is swayed by the pros and cons. There's many ideas to try and it's best to try the good ones over bad ones.

 

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[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.

 

[fhs8]

Quoting fhs8 / My replies in bold

--- 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

In this case no because there's no moat whatsoever. If you hire someone to do it all they will do is do it themselves and end up being your competition.

--- 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.

Putting flyers on light poles and postcards?

If it's not on MLS it's extremely unlikely that you'll target as many people interested in buying homes. Without targeting as many people you'll get less bids. Also what kind of "fastlaner" goes around town putting flyers on light posts? CPA for postcards is likely to be negative. You'll send postcards to people who aren't even considering buying a home. If putting up flyers on telephone posts works so well in selling homes then why don't we see real estate agents doing it?

--- 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.

I never said that you needed a license to purchase a home. However you do need a license to sell/advertise/get commission off someone else's home just like you need a contractors license to do a big job on someone else's home. It doesn't matter if they agree to it in contract. Why does CA require people to get a license then? You can sell your own home without a license.

http://www.dre.ca.gov/files/pdf/relaw/2016/regs.pdf

I would also advise you to read this as well:
http://www.criminaldefenselawyer.com/resources/brokering-real-estate-without-a-license.htmhttp://www.criminaldefenselawyer.com/resources/brokering-real-estate-without-a-license.htm

"Anyone who wants to sell real estate as a salesperson, real estate agent, or real estate broker must first obtain a license to do so from the state in which they live."
...
"Any time you act on someone else’s behalf when buying or selling real estate in order to receive a fee, commission, or other type of compensation, you have engaged in the practice of real estate."

--- 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.

You completely missed the point. If the person has millions of dollars in cash since the person has been in the business for 20 years then wouldn't it be better to buy the home cash? The CPA would be lower because there's not a complicated deal going on and the home will sell immediately and not in 30 days?

--- 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.

If people cared about real estate commission then there would be more FSBO or more discount real estate companies. I do think 6% is a very high amount however I don't think that offsets the lack of exposure the home gets. So a home may actually sell for 10% less which is more than the 6% commission. What's the big difference between being a real estate agent and cashflowdepot? Not much.

--- 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.

I don't care about the outcome. You're missing the point again. I care about the CPA or time needed to get someone to sell their home. The more complicated you make something the less likely they are going to decide to list their home with you because they don't understand.

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.

Anecdote again. Also this just shows that you want to deal with cash and not some complicated deal with contracts. So it's better to offer a person cash rather than use the cashflowdepot method?

 

[jfny]

In this case no because there's no moat whatsoever. If you hire someone to do it all they will do is do it themselves and end up being your competition.



Putting flyers on light poles and postcards?

If it's not on MLS it's extremely unlikely that you'll target as many people interested in buying homes. Without targeting as many people you'll get less bids. Also what kind of "fastlaner" goes around town putting flyers on light posts? CPA for postcards is likely to be negative. You'll send postcards to people who aren't even considering buying a home. If putting up flyers on telephone posts works so well in selling homes then why don't we see real estate agents doing it?




I never said that you needed a license to purchase a home. However you do need a license to sell/advertise/get commission off someone else's home just like you need a contractors license to do a big job on someone else's home. It doesn't matter if they agree to it in contract. Why does CA require people to get a license then? You can sell your own home without a license.

http://www.dre.ca.gov/files/pdf/relaw/2016/regs.pdf

I would also advise you to read this as well:
http://www.criminaldefenselawyer.com/resources/brokering-real-estate-without-a-license.htm

"Anyone who wants to sell real estate as a salesperson, real estate agent, or real estate broker must first obtain a license to do so from the state in which they live."
...
"Any time you act on someone else’s behalf when buying or selling real estate in order to receive a fee, commission, or other type of compensation, you have engaged in the practice of real estate."





You completely missed the point. If the person has millions of dollars in cash since the person has been in the business for 20 years then wouldn't it be better to buy the home cash? The CPA would be lower because there's not a complicated deal going on and the home will sell immediately and not in 30 days?




If people cared about real estate commission then there would be more FSBO or more discount real estate companies. I do think 6% is a very high amount however I don't think that offsets the lack of exposure the home gets. So a home may actually sell for 10% less which is more than the 6% commission. What's the big difference between being a real estate agent and cashflowdepot? Not much.



I don't care about the outcome. You're missing the point again. I care about the CPA or time needed to get someone to sell their home. The more complicated you make something the less likely they are going to decide to list their home with you because they don't understand.



Anecdote again. Also this just shows that you want to deal with cash and not some complicated deal with contracts. So it's better to offer a person cash rather than use the cashflowdepot method?

You are overthinking this shit dude.

FACTS:
1) It works.
2) People do it all the time.

 

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[fhs8]

You are overthinking this shit dude.

FACTS:
1) It works.
2) People do it all the time.

People join MLM all the time and people say that MLM works. It doesn't make joining an MLM a good idea. The OP first made the post in 2014 so has anyone here had consistent success with it or actually tried it? In fact the program has been out for many years.

 

[jfny]

People join MLM all the time and people say that MLM works. It doesn't make joining an MLM a good idea. The OP first made the post in 2014 so has anyone here had consistent success with it or actually tried it? In fact the program has been out for many years.

I HAVE tried it, and yes, it works.

In my particular case it was wholesaling via signing the contracts over, not a highest bidder sale but the principals are all the same. I will be adding highest bidder sales into my arsenal though.

Now that I have proven there is a market out there for it, I have a few fastlane ideologies I'm going to implement into it, which should increase the number of leads I get drastically, which should allow me to close more deals and make a lot more money.

Once it's all said and done I plan to make an INSIDERS thread showing how I did it all, that's just going to take some time though.