Hi I’m Matt Theriault of Epic Real Estate, former U.S. Marine (Desert Storm Veteran) turned hip-hop music executive… lost it all due to the advent of the digital download, But! I got it all back, and then some, through creatively investing in real estate.
Currently, I average 20 deals per month and own just shy of 100 positive cash-flowing income properties that I acquired using very little to any of my own money, nor my credit. Coming up with creative options to help distressed Sellers has become a passion of mine.
There’s a saying, “Those that CAN’T do, teach.” Heard that before?
I have a saying, too. “Those that LOVE what they do, can’t help but teach.”
Watch the video below and I’ll show you one of the more powerful tools in my creative real estate investing arsenal that has allowed me to build outrageous equity and cash flow using little to any of my own money.
These three techniques we use in our office literally doubles the amount of deals that we do. It doubles the amount of offers that we get accepted with this one slight tweak to the presentation of our offers:
So option number one, I call it the “BAR NAPKIN” method.
I call this the “BAR NAPKIN” method because that’s essentially what it is. When there isn’t a formal agreement to be found, (i.e. you don’t have the paperwork with you, don’t let the opportunity pass you by). Put the price and terms on a “BAR NAPKIN,” a paper towel, or a scratch piece of paper.
Whatever is available.
You know, if I was able to come to an agreement of price and terms with the seller right there on the spot, I would present my offer in the exact same way I explained it in session D of this lesson.
Write the price and terms out on a piece of paper, we both sign it and then I turn it into my escrow officer or my closing agent who would then just insert the price and terms into formal escrow instructions. My escrow officer would then overnight the escrow instructions to the seller for a formal signature.
BOOM! You are done! The deal is official. You are in contract. You have officially secured the property.
So that’s option number one, the “BAR NAPKIN” method.
Option number two, the “ASSIGNABLE CONTRACT.”
If I was able to come to an agreement in the same way I did in the last scenario, I had the price and terms down with the seller right there on the spot and I happened to have my contracts with me, I would then just pull out the contract and write the price and terms on the contract.
You fill in the blanks. It’s really easy.
Print out a bunch and put them in your car so that you are always prepared. Before you use it, it probably won’t hurt or be a bad idea to have a real estate attorney from your state to look it over. If you don’t have a real estate attorney, no worries, just ask the legal department at your escrow or title office to look it over and confirm that the contract is compliant in the market of which you are investing.
Once you complete the contract with the price and terms, both you and the seller, go ahead and you sign it.
Again, BOOM! You are done. It’s official. You are in contract. You have officially secured the property.
Option number three, the “3 Option Letter of Intent”.
I love this tool. I have began to use this option in my business with much more frequency as I have rediscovered that it creates more opportunity to build my cash flow portfolio.
It also opens up dialogue with more resistant or reluctant sellers; you are going to meet some of those out there, believe it or not! And so, you know, once I have completed a seller information questionnaire, nothing has changed up to that point and have given myself 24 hours to come back with an offer.
What I’ll come back with, is what is called the “3 OPTION LETTER OF INTENT”.
It’s exactly the what it sounds like.
Just a single piece of paper with three different options of how I’m willing, and how I intend to purchase the subject property. So the seller gets to choose which option he or she likes best. And once they pick one, I have a formal agreement and/or escrow instructions is drawn up to reflect their choice.
Very simple. And here’s why this method has become more common in my business.
First, you see by giving the seller three choices, they seem to forget that they have a fourth choice. They can actually say no thank you, if they want. Since they forget that they have this fourth choice, they will almost always choose one of the three options or a variation of these three options. I seem to get more offers accepted this way.
The second reason why I like using the “3 OPTION LETTER OF INTENT” is that, it can create an opportunity where it didn’t seem to be any opportunity before. Meaning, with your tougher customers, your more resistant customers, your savvy customers, maybe the more cynical sellers.
By giving them a “3 OPTION LETTER OF INTENT” even if they didn’t want an offer from you at all, when you give it to them, you can see and hear the wheels turning. Their eyes and minds seem to open up to possibilities and solutions that they weren’t quite understanding or they weren’t open to when they were discussed verbally.
For some people they just need to see the details in writing. That’s perfectly okay. With every seller I meet at the very least, they will get a “3 OPTION LETTER OF INTENT” from me. Even if they flat out said “No, thank you!” to the possibility of selling out their property to me, it doesn’t matter.
Mail the letter of intent to them. That is if they won’t take it from you hand-to-hand.
Remember, no lead left behind, because some of these seemingly dead leads, they will indeed convert.
Maybe not immediately, but some will convert eventually. And they will convert eventually because you were the only one to put your offer in writing and give it to them. That’s why I say, ”Always present an offer”. You work too hard to generate these leads. Don’t let them slip by. This practice, it separates you from your competition.
So what types of options do you put in a “3 OPTION LETTER OF INTENT”?
I am glad that you asked. The next lesson, the next several lessons and sessions will cover just that: options. This is where the creativity comes into play. This is where creative real estate investment comes from. So I’ll see you there!
So I created a special version of that training just for you. I also included my Epic offer calculator and the letter template. My clients are having wonderful results with it and so am I. I still use it to this day. And I mean It’s literally doubled the amount of cash offers that we get accepted. It’s doubled the amount of seller financed deals that we get accepted.
Semper Fi to my fellow Marines.
Peace, blessings and abundance to all…