- Joined
- May 11, 2009
- Messages
- 172
Hi everyone,
In case anyone is still skeptical or unsure as to whether the Ron
LeGrand 'Quick Turn' method is viable in Ontario, I'd like to share the
details of my first successful Quick Turn experience.
This might be a bit verbose, but I'll share some of the finer details for those who are interested.
A motivated seller found me through my Kijiji ad, went to my
website and filled out the application form. She was nice enough to
leave a short message in the form telling me about her situation. She
and her husband own this little rental house in Listowel (30 mins North
West of Waterloo, population 13,000) that they needed to sell before the
end of February. The reason is that they are closing on a new house
they bought and need the equity out of the rental house to help finance
the down payment for the new place (not an uncommon situation). It
sounded kind of interesting, but Listowel is a small town and at least
an hour's drive from where I live, so I wasn't too sure if I even wanted
to follow up on it.
Well, I'm VERY glad that I did.
As I talked to the seller on
the phone, she went over her situation and asked me about my business. I
explained that I'm a real estate investor that specializes in putting
together 'win-win' real estate transactions for buyers and sellers alike. I told her that my focus is
helping families qualify to own their own homes through my alternative
financing programs and that I find many of these homes by working with
sellers who need quick closings, etc.
So then she tells me, "Oh, that's great, because the tenants we have
living at the house have been bugging us to buy the house on a rent to
own program, only we have no idea how to do that. Do you think you could
help them out, too?". It was all I could do to keep from dropping the
phone and dancing around the room. Trying to stay as calm and
professional as I could, I told her that they would have to qualify
first, and so I asked her a few questions about the tenants. There
didn't seem to be much that would preclude them from qualifying, so I
told her that, even though Listowel is quite outside my geographic
region, we had the makings of what could be the win-win type of deal
that I strive for.
Anyway, I won't bore you with all the back and forth negotiations
with both the sellers and their existing tenants that kept me very
busy for three days straight. I will simply list the highlights!
[*]
The sellers agreed to sell me the house for $105,000, which is worth roughly $120 - $130K (yes, it's small - 2
bed, 1 bath - but a great location and the tenants absolutely love it)
[*]The sellers were quite happy to have me take over their payments of $650 per month
[*]
We negotiated an up front payment to them of $8000 (this is what they needed to close on their new home)
I borrowed private money at 15%, enough to cover this amount plus legal fees and
have the interest accrue with yearly payouts until I'm paid off some time in the future
The sellers weren't all that concerned about when I would cash them out because that $8000 was the bulk of their equity anyway
We negotiated a 3 year balloon payment (which wouldn't be a problem considering such a low cost on the house)
Their mortgage renewal is 3.5 years away, so that won't play into our deal at all
[*]
The tenants (thankfully!) met my qualification criteria and agreed to buy the house from me for $140,000(!) in 12 to 24 months
[*]
They also agreed to pay me $1100 per month with a $300 monthly credit going toward the purchase
They have so far given me $2000 of an agreed upon Option Fee of $4000, with the remainder being paid off by mid-April
I used Peter Cass as my lawyer to complete this deal, and he and his
partner April Hubert at Cass & Bishop have been instrumental in
getting this deal done. At first, the seller's lawyer tried to kill our
deal, telling them that they should never have signed my offer and that
he would try to find a way to back them out of it. Thankfully, Peter was
able to calm him down and bring him around to our way of thinking.
Ultimately, their lawyer just wanted his clients protected, and so we
wrote the Schedule A - Agreement For Sale in such a way that it ensured
their security in the event that I had to walk away from our
arrangement. The sellers were quite happy with everything and had no
reservations about final sign-off.
I'll
admit that I was kind of skeptical going into the LeGrand weekend back
last October, and I even had a few reservations about signing up with
Brian and Lynette Wolff's mentorship program. I really did wonder if
there were truly any deals
out there in Ontario like the ones they talked about up on stage.
Well, to quote the Monkees - Now I'm a believer!
Now that the dust has settled, I've secured a house that cost me none of my own money
and none of my credit. It's putting $4000 in my pocket almost
immediately and will cash flow $450 per month for at least 18 months.
Better yet, that final payout will give me a net profit anywhere from $25,000 to
$35,000 depending on when it happens. And if the tenants ever decide to
leave, I have enough free equity and such cheap monthly payments that I
can afford to put a bit of money into renovations and either re-RTO it
or sell it outright for a profit. There is no downside.
But this is the best part of all.... Both the sellers and the tenants have told me numerous times how lucky and happy they are
that they found me and that I'm able to help them out of their
situation! Unbelievable! Not too long ago I used to think that
you couldn't make any kind of serious money in business without screwing
somebody over. I just proved to myself that, not only is it possible,
it's not that difficult either.
From the conversations I've had with others like me who are getting
started with Quick Turn in Ontario, I'm hearing quite a bit of
frustration and even disappointment in this strategy. If there's
anything I've learned from my experience so far, it's that the system
DOES work, but that it is absolutely dependent on finding the right kind
of seller, and that this seller is a true 'needle in a haystack' to
acquire. Your marketing effort is crucial, and probably one of the most
difficult aspects of your business to justify spending money on in the beginning, as
there will most likely be long stretches of time where you have no
decent leads whatsoever. You must have faith that these types of
motivated sellers are out there, and the only way they will find you is
if you keep your marketing machine running. Once you find a true
'prospect' there is a good chance they will be very willing to work with
you, as you will be helping them in a way that most others can't.
Just keep moving forward, keep learning, keep taking action and the deals WILL present themselves. It's only a matter of time.
And whenever possible, KEEP NETWORKING! Without the support of my
business partner, Brian McGuckian, the Wolff's, Peter Cass, the other
REIN "Quick Turners" who meet with me regularly, and of course my
incredibly supportive wife, this deal would never have happened. To repeat what so many of you already know, a great
network is essential for your education, motivation and
self-confidence.
Thanks for hearing me out! Now on to the next one!
In case anyone is still skeptical or unsure as to whether the Ron
LeGrand 'Quick Turn' method is viable in Ontario, I'd like to share the
details of my first successful Quick Turn experience.
This might be a bit verbose, but I'll share some of the finer details for those who are interested.
A motivated seller found me through my Kijiji ad, went to my
website and filled out the application form. She was nice enough to
leave a short message in the form telling me about her situation. She
and her husband own this little rental house in Listowel (30 mins North
West of Waterloo, population 13,000) that they needed to sell before the
end of February. The reason is that they are closing on a new house
they bought and need the equity out of the rental house to help finance
the down payment for the new place (not an uncommon situation). It
sounded kind of interesting, but Listowel is a small town and at least
an hour's drive from where I live, so I wasn't too sure if I even wanted
to follow up on it.
Well, I'm VERY glad that I did.
As I talked to the seller on
the phone, she went over her situation and asked me about my business. I
explained that I'm a real estate investor that specializes in putting
together 'win-win' real estate transactions for buyers and sellers alike. I told her that my focus is
helping families qualify to own their own homes through my alternative
financing programs and that I find many of these homes by working with
sellers who need quick closings, etc.
So then she tells me, "Oh, that's great, because the tenants we have
living at the house have been bugging us to buy the house on a rent to
own program, only we have no idea how to do that. Do you think you could
help them out, too?". It was all I could do to keep from dropping the
phone and dancing around the room. Trying to stay as calm and
professional as I could, I told her that they would have to qualify
first, and so I asked her a few questions about the tenants. There
didn't seem to be much that would preclude them from qualifying, so I
told her that, even though Listowel is quite outside my geographic
region, we had the makings of what could be the win-win type of deal
that I strive for.
Anyway, I won't bore you with all the back and forth negotiations
with both the sellers and their existing tenants that kept me very
busy for three days straight. I will simply list the highlights!
[*]
The sellers agreed to sell me the house for $105,000, which is worth roughly $120 - $130K (yes, it's small - 2
bed, 1 bath - but a great location and the tenants absolutely love it)
[*]The sellers were quite happy to have me take over their payments of $650 per month
[*]
We negotiated an up front payment to them of $8000 (this is what they needed to close on their new home)
I borrowed private money at 15%, enough to cover this amount plus legal fees and
have the interest accrue with yearly payouts until I'm paid off some time in the future
The sellers weren't all that concerned about when I would cash them out because that $8000 was the bulk of their equity anyway
We negotiated a 3 year balloon payment (which wouldn't be a problem considering such a low cost on the house)
Their mortgage renewal is 3.5 years away, so that won't play into our deal at all
[*]
The tenants (thankfully!) met my qualification criteria and agreed to buy the house from me for $140,000(!) in 12 to 24 months
[*]
They also agreed to pay me $1100 per month with a $300 monthly credit going toward the purchase
They have so far given me $2000 of an agreed upon Option Fee of $4000, with the remainder being paid off by mid-April
I used Peter Cass as my lawyer to complete this deal, and he and his
partner April Hubert at Cass & Bishop have been instrumental in
getting this deal done. At first, the seller's lawyer tried to kill our
deal, telling them that they should never have signed my offer and that
he would try to find a way to back them out of it. Thankfully, Peter was
able to calm him down and bring him around to our way of thinking.
Ultimately, their lawyer just wanted his clients protected, and so we
wrote the Schedule A - Agreement For Sale in such a way that it ensured
their security in the event that I had to walk away from our
arrangement. The sellers were quite happy with everything and had no
reservations about final sign-off.
I'll
admit that I was kind of skeptical going into the LeGrand weekend back
last October, and I even had a few reservations about signing up with
Brian and Lynette Wolff's mentorship program. I really did wonder if
there were truly any deals
out there in Ontario like the ones they talked about up on stage.
Well, to quote the Monkees - Now I'm a believer!
Now that the dust has settled, I've secured a house that cost me none of my own money
and none of my credit. It's putting $4000 in my pocket almost
immediately and will cash flow $450 per month for at least 18 months.
Better yet, that final payout will give me a net profit anywhere from $25,000 to
$35,000 depending on when it happens. And if the tenants ever decide to
leave, I have enough free equity and such cheap monthly payments that I
can afford to put a bit of money into renovations and either re-RTO it
or sell it outright for a profit. There is no downside.
But this is the best part of all.... Both the sellers and the tenants have told me numerous times how lucky and happy they are
that they found me and that I'm able to help them out of their
situation! Unbelievable! Not too long ago I used to think that
you couldn't make any kind of serious money in business without screwing
somebody over. I just proved to myself that, not only is it possible,
it's not that difficult either.
From the conversations I've had with others like me who are getting
started with Quick Turn in Ontario, I'm hearing quite a bit of
frustration and even disappointment in this strategy. If there's
anything I've learned from my experience so far, it's that the system
DOES work, but that it is absolutely dependent on finding the right kind
of seller, and that this seller is a true 'needle in a haystack' to
acquire. Your marketing effort is crucial, and probably one of the most
difficult aspects of your business to justify spending money on in the beginning, as
there will most likely be long stretches of time where you have no
decent leads whatsoever. You must have faith that these types of
motivated sellers are out there, and the only way they will find you is
if you keep your marketing machine running. Once you find a true
'prospect' there is a good chance they will be very willing to work with
you, as you will be helping them in a way that most others can't.
Just keep moving forward, keep learning, keep taking action and the deals WILL present themselves. It's only a matter of time.
And whenever possible, KEEP NETWORKING! Without the support of my
business partner, Brian McGuckian, the Wolff's, Peter Cass, the other
REIN "Quick Turners" who meet with me regularly, and of course my
incredibly supportive wife, this deal would never have happened. To repeat what so many of you already know, a great
network is essential for your education, motivation and
self-confidence.
Thanks for hearing me out! Now on to the next one!
It's great to see others doing it !
