Armstrong Capital Newsletter
May 2005
Jeffrey R. Armstrong, President, Armstrong Capital
In the last two months, for the broker/consultant that wants to
sit back and wait for the phone to ring, I have given you a direct mail letter
to note holders and some great one-liners to use when they call you. This month,
for the broker/consultant that wants to go out and give short presentations at
local real estate agency meetings, I have a short 5-10 minute presentation for
you to use as a guideline.
By educating real estate agents and
brokers as to what is a good and saleable note AND by showing them that they
might be able to sell a couple of more properties per year by using this
approach it is a win/win situation for everyone.
Presentation to Realtors
There is a benefit to to Realtors and their clients in working with a CCFC and
encouraging property owners to consider Seller-Financing.
1. More people will come to look at the home as a result of offering Seller
financing.
2. It will most probably sell for a higher price because the seller of the home
does not have to reduce the price of the home when they agree to take back the
note.
3. The Realtor will make more because the home will sell for more and their
commission is based on the selling price.
4. The CCFC offers referral fees.
Cash Offer:
Asking Price $100,000.00
Cash Offer $ 80,000.00
Real Estate Commission 6% $ 4,800.00
Net to Owner $ 75,200.00
Seller Financing Alternative:
Asking/Sales Price $100,000.00
Down Payment $ 10,000.00
Seller Note $ 90,000.00 (8% for 360 months, $660.39/month)
Sale of Note (approximate) $ 72,251.77**
Real Estate Commission 6% $ 6,000.00
Escrow to Seller $ 66,251.77
Down Payment $ 10,000.00
Total Net to Seller $ 76,251.77 (more than the cash offer!)
**This assumes that the note was purchased 30 days after the closing and after
the first payment has been paid at a 10% yield to the funding source and the
CCFC subtracted a $3000 fee. We are also assuming that it is a free and clear
property.
Hope this gives you some ideas! Next
month we'll talk about what to do WHEN the note holder says "YES"!
Don't forget that the CASH FLOW 2005 convention is this month in San Francisco
May 26-29. Hope to see you there!
Jeff Armstrong
For more great strategies, don't
forget to check out Jeff's wonderful cash flow books for Scripts, Tips,
Marketing ideas and more! Click
here today!
http://www.armstrongcapital.com/AC Products.htm
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Don't forget that Jeff's NEW book
Personal Cash Flow Prosperity
was released Last Month! To check it out and purchase your own copy visit
us at Armstrong Capital
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"Scripts and Tips: A Handbook For The Serious Note Broker" is available online at http://www.armstrongcapital.com/ or by clicking on the button below
OR purchase as part of a combo package with his Marketing book "Every Single Profitable Note Marketing Idea In The World (almost)" for ONLY $75.00 by clicking on the "Buy Now" button below
Next month we will share some great presentations that can help you succeed.
Hope this helps!
Jeff Armstrong is president of Armstrong Capital. He is a member of the Million-Dollar Club, a Master Broker, visiting instructor for the American Cash Flow Institute, and the author of two best selling books. He can be reached by calling 818-884-2322, faxing 818-884-1723, e-mail jeff@armstrongcapital.com, or visit http://www.armstrongcapital.com and click on "Note Brokers" for questions and information about his Master Broker services, Mentorship program how Armstrong Capital can help you succeed.
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