Sign Massachusetts Banking Letter Of Intent Myself

Industry sign banking california letter of intent fast

[Music] you let's start talking about offers most important part of this business if you're not making offers you know the rest of the story basically what I've done I've got seven points here I've met four myths I've got three things not to do and then down the bottom I've got the number one rules here we go seven steps seven things that your your offer has to have okay your LOI your letter of intent and first time I just remember one that I didn't put up here I'm going to start right now folks and this is basic and some of you may be like really Charlie I have to talk about this I'm telling you guys I have so many students I get so many different formats here's the thing the letter of intent is a business letter put it on your stationery put your head go out and create stationery go on you know Microsoft Word find station make it a business letter make sure all the font is the same make sure it follows all the typical you know wording of what a business letter should have a date the address the the subject line just make it a classic letter it's a letter it's not a form it's not a contract it's just a letter that's all it is it's like that thing you sent to the girl in third grade I like you do you like me check yes or no no that's what a letter of intent is okay so the first thing make sure that you set it up as a letter now one of the first things that you have to have in your letter of intent can you'll see that haha but you can is the question going to be a binding offer all right let me explain that to you and this is very important because it's been some recent case law here in Massachusetts regarding binding and non-binding offers you want might think to yourself hey I'm just throwing an offer that's got a contract that's that I'm not really buying this property I'm waiting to get to contract well there was a court in Massachusetts that found that because it didn't say non-binding and because it didn't say this is preliminary to a contract the letter of intent was construed as an offer and it was accepted and that was the depth that was it the guy was buying it so you have to make sure that your offer is clearly states that it's non-binding and it clearly states that there will be a contract to purchase that will be drafted subsequent to this off okay if any of you were in your own thing make sure that I read it out to make all I can handle all right make sure you have that all right second thing there we go okay in the offer is no I have to do this everybody can see now think about this guys remember I say getting their offer accepted is the first sale I need to move to need everybody okay final I will show route you all mute all there we go you can unmute yourself when you want to I just took care of thanks IRA yeah very okay there we go good good good we're all set good all right thanks everybody okay so the next thing is price remember folks this is your first sale you're making in your new business the first sale is to get an offer accepted getting the seller to yes when he sees your offer he's gonna say yes I'll take I accept your offer so the next thing that's going to be on the letter of intent is the price now think about it from a strategic standpoint now in this particular example that I gave earlier alright the seller wants 1.2 million the owner forum member is offering 900,000 now from a strategic standpoint what I would want that owner forum member to do is to start her number and really end her number at 1 million because from up from a psychological standpoint the owner is going to look at that offer and he's going to see the one he's still off by $200,000 but he's gonna see the one the offer that was going out it shows a nine right away the guys like too low not not interested but if he just sees the one and if we just increase our offer little will trick him into thinking that our offers so much grander priced and come down and enduring the due diligence process but we that is what I want you to think about because I have a couple of students on here they had a six million dollar deal and they offered five hundred ninety five five million nine hundred and fifty thousand dollars why why that just make it sex you your offer looks so much better at six so think about how the offer is going to look to the seller that's your first sale and just for the record in this particular case of the other deal today when we went to 1 million it's such a small property we went to 1 million the numbers didn't look good 900 the numbers look actually pretty good a million just cutting it close so let's go on at the 900 thousand on that one but just keep that in mind now the other thing about the price is how does that number broken down now on the long form ly we don't explain how we're buying on the short form letter of intent we talked about how it's broken down now the reason why we do that is because if there's any type of seller financing that we're asking for we wanted to show up very clearly right there if you're looking for any type of self financing this is the time to ask for it essentially everything that you're looking for in the deal needs to show up in the letter of intent because what happens is once you get your offer accepted that letter of intent goes to the lawyers and we go through it with the purchase and sale contract and we make sure the two of them match up and so during the purchase and sale contract that's not the time to be asking for some financing you do that during the letter of intent stage okay so the letter of intent the purchase price in the letter of intent should is going to show any type of cell financing it's going to show the earnest money deposit it's going to show that essentially the down payment if you're using the short form now here's why you add those two other elements is first off you'd have to if you're really serious about this deal you want to show a strong earnest money deposit number because if you show up with a hundred bucks for earnest money the cell is gonna throw you out like up this guy's a joke and you lost your first sale so be strong with your earnest money and make sure that it looks good make sure that makes sense and there and then put it in and put it in that purchase price section now the other part has to do with the down payment if you're coming to this thing you're trying to buy this deal no money down 100% financing you are a weak buyer you up dude are not a strong buyer so you need to make sure that you go out there and you figure out you're going to show this seller that I am strong I'm the guy to choose let me have this property so that's what's happening why we put those numbers in there it all goes to making your first sale and that means your product has to look better than everybody else's so that's why we do that we break down that purchase price number any questions let me see that's a great strategy yeah is Reyes it's a great strategy Shh their percent of the sale price you recommend for earnest money deposit yeah one percent typically you know is good enough I don't Billy you and I are looking at some smaller properties you were dealing directly with the seller you know you could go with one percent you know with you know when you're dealing directly with the cell with no broker involved sometimes you can get more creative now the other thing too and we'll get to in just a moment can we talk more about the earnest money let me talk about that next boy I usually start over here with three three mason jars full of water I think I'm gonna go through all of these today all right let's see next number three is what do you know like I knew what was next the earnest money okay let's talk about this the earnest-money a couple of different ways to do it as we just said with bill one percent of the purchase price typically your standard earnest way deposit if you're dealing with a broker the brokers tend to want one percent earnest money now remember this is your first sale you're trying to make your product which is the offer look really good so can you get creative with the earnest way deposit so that you stand out from everybody else and the answer is yes there is now what you want to do is maybe you have two tranches as we call them two tranches of earnest money meaning we'll put a certain amount down during the inspection period and if we get past the inspection period and we want to move forward we will put another deposit down the second deposit of earnest money another 1% or maybe what we do is we say and this is this is a killer and I was having this conversation with my mother I think earlier if the earnest money can be hard on day one think about that if you are a seller of a property and somebody comes up to you with an offer that says if you accept my offer this $50,000 is yours on day one know that if I decide I don't want to buy the property my money is gone who makes those types of offers very confident people people are gonna drop 50 grand and it doesn't hurt or if you're building a fund if you're trying to create a fund that you can buy property that's the type of vehicle that can do those types of things because if you're out there raising private money in the form of an apartment fund you've got a million dollars sitting in your fund and you need to put it to work so if you are making offers and that perfect property comes along and you look at it and say I want that property what do I have to do to get that property well I'm gonna make my offer hard on day one $50,000 if you accept my offer I'd take it guy says great it's yours I'll take your offer fifty thousand bucks you got the deal in the contract you go through the due diligence face at the end of the 30 days you say this thing's a dog I'm not buying it you just lost 50 thousand you got a million dollars sitting in a bank account look being look looking to go to work you just lost fifty thousand okay cost of doing business we'll move on to the next one so those are the type those are a couple of different ways that you can you can write that earnest money deposit differently so that you can you can stand out from the crowd remember guys the guys and you know when he's you know call for offers and they have all the offers lined up these are the things that the sellers look at to determine whose offer rises to the top all right and you want it to be your offer okay yeah here we go yeah wahhhh oh yeah wahhhh sale price you read okay next number four okay inspection period now you have to think about your audience when you're making this offer you have to think about who is going to be looking at this offer if you're making an offer on a bank-owned property don't even bother doing a 30-day inspection they're not going to accept it they're going to give you ten days to look at this property and you think you're so wait a minute ten days look at the property I'm not going to have enough time to do the due diligence I'm not gonna have enough time to do the to do the numbers to to evaluate the finances the bank is gonna look at you and say hey there's nothing to look at this is a bank owned property it's a non-performing asset the numbers don't work so you have to recreate the numbers on your own to determine whether that property is going to work at that price so think about who you're at who you're talking to to make sure that the OP that the inspection period works for the audience now typically we like to see 30 days all right now I can tell you on this deal that I'm looking to make the offer on I'm going to ask for a 45 day inspection period 700 units no financing contingency okay so I've got 45 days to figure out whether I'm going ahead with this deal or not all right so think about the inspection period and how long you're gonna need to make it happen now I don't care you know this is 700 units it doesn't really matter I can go through them I can have a team of people go through them in 30 days that's not a problem for those of you remember if you watch the due diligence training seminar training program the last you know recently remember the 30 day inspection period the first two weeks of the 30 day inspection happens in your office you don't even go out you don't even leave the house all right what you're doing is you're doing all the financial modeling right there from the financial information that they give you and if it passes muster then you're gonna go out and do the physical inspection so just remember that's typically how a 30 day inspection goes all right let me just check to see I got a big huge one with Brian do you call Charlie owners buddy if you're putting up 1% of $2,000,000 off price and you get to the due diligence it's a dog seems like you're losing $20,000 if you have a million dollars in the bank for your example sure cost it in business what if a $20,000 loss hurts too much do you focus on less expensive properties no because no no no Brian you're missing the point here your $20,000 let's talk about the earnest money and what it means to be at risk because this has happened and I've been involved these situations both both as an investor as a consultant and as an attorney when you put the earnest money up it is not gone if you write it or if you write the offer in such a way that the money goes hard on day one yeah it's gone it's gone but if you typically write the earnest money so that you can you put it up on on whatever you decide that it's due then you go through the due diligence process and you realize like you said Brian the deal is a dog well then you just you terminate the trans you terminate the contract and your money comes off a table and the escrow agent sends you your money back your money is not hard your money does not go hard until after the inspection period and listen to this and this is something I want to stress because so many people they're taught this wrong by one particular guru that it drives me crazy if you make it to the financing contingency period your money is conditionally hard you may get it back no problems no questions but it could be conditionally hard and the seller might fight you for it in the situations I've been involved with the money has been has been tied up in that financing contingency period and it's been fought for and it cost a lot of money Lee in legal fees to fight that so you better be Don Shore at the end of the due diligence period that you're gonna go ahead with this deal and then you move on to the financing contingency period you still can get your money back in the financing period but don't play games guys don't play games if you know you're gonna terminate this deal do it during the inspection period don't wait any longer don't think that oh you know app I missed the end of the financing inspection period I'm just gonna you know I'll kill the deal during the financing period and you never even applied for a mortgage you never even spoke to a financing company that sellers gonna hang you out to dry it's contingent it's conditionally hard don't play games all right all right so inspection period 30 days 45 days that's that's typically what you see bank owned properties you're looking at 10 10 days who's buying 700 units someone in our group dude 1 hello the master sit back and watch cliff watch the master cliff I'm sitting there rocking back and forth you win this deal okay number five here we go any questions on that and of course the financing period that's the next thing that's going to be in a letter of intent now guys remember this is optional you don't have to have a financing contingency period you don't when you put one in it protects you but it also weakens your offer because if you're looking if a seller is looking at two offers that look exactly the same all the numbers are the same the dates are the same but one has a financing contingency and the other one doesn't the one without the financing contingency goes to the top of the pot all right so if you can write your offer without a financing contingency do it now I just told you that I'm gonna try to write my offer in such a way that we don't need to finance a contingency we will need a partial financing contingency because out of the deal that we're doing one of the deals requires us to assume the mortgage well you know what that's a third party in the ransaction that nobody has any control over and I want to get out of free jail card if I have if I'm dealing with that particular back so in that particular deal we are going to put a financing contingency and protect ourselves in that and that transaction the other properties we're going to try to go without a financing contingency and just close in 60 days okay so because when it's an a-class property because we're dealing with a very sophisticated seller we have to look sophisticated to and we have to take that that finance and contingency out and make our offer look good so let's say you're going to have a financing contingency in there now what exactly does that mean typically the way we write the financing adage contingency is in such a way that you can essentially drive a Mack truck right through it means that if you don't like the financing for whatever reason you can kill the deal now remember guys all contracts must be negotiated in good faith all right so if you have a financing contingency in there you've got to make sure that you're acting in good faith meaning this is not a free look due diligence 30-day inspection part of the deal this is the financing period it's getting real right now that means you're gonna go out to a bank and you're gonna apply for a mortgage that means it's gonna cost you some money that means you're gonna go through the process that means you're either going to be approved or you're going to be denied and if you're approved the terms well it depending on how or the financing contingency you might end up having that deal bound meaning that you are going to either close on that transaction by the closing date or you're gonna lose your earnest money all right so always keep that in mind that financing contingency starts to get the deal real you no longer sitting above your mother's garage anymore you're playing with the big boys all right all right hey Ivan do you have my garages in Croatia did you oh you did okay good so you know what I'm talking about with you sitting above your mother's garage okay cliff Karen says I had a deal at a contract with $25,000 dialed to buying the contract and 30 days it'll be hard if it was a her it was a bank property and need approval of the court the receiver told me that the money was hard even though the court didn't approve it need to watch the agents they will rip you off hey cliff can you unmute yourself because I want to get I want to understand that a little bit more can you talk no okay no you got no microphone so I guess that also means that we can say anything we want about cliff because nothing he can say back that's right okay cool that's really interesting cliff I'd like to hear more about that man that stinks that stinks that's why you're absolutely right and you know guys I'm telling you you need lawyers you need lawyers to look over these things you know I know I talk about I'm a lawyer not your lawyer hire lawyer I help you out every step of the way as best I can when you're down there when you put this money in when you start to execute a purchase and sale agreement you had better have a lawyer in your jurisdiction helping you all right and don't I know some of you you pull fast ones and you think I'm your lawyer and stuff like that I'm gonna act like a lawyer but I cannot be the one to represent you you always need to have local representation all right not being said all right anything else will rip you off okay good okay good I'm all caught up in numbers now that's that's a financing pair remember it doesn't have to be in there but if it is you're going to make sure that you're protected and you know what it means and then you know how to get out of it if you have to well no let me tell you one story let me tell you okay so this is this is the true story so I had a client he was in very early on in my my coaching and my training man this is gonna be over five years ago okay this guy comes to me after the purchase and sale contract was signed which today I don't even get involved in those situations I don't want to be involved it's too far down I can't help you as I was trying to explain to somebody earlier what I love about my business now is that I'm very proactive I can help you out going into the deal to protect you in the transaction when I was representing people as their attorney it's all reactionary you just have to get in there to fix the problems that they got to screwed up on and that's that's very frustrating because you can't really help these people you just have to solve their their mind you know they're not my new issue for their issue at the time now we can help you ahead of time what this guy did is he got into a purchase and sale contract I know lawyer representation and then he calls me members hey help me do the due diligence so we go through it and this this property is a dog it was a dog the first day I looked at it it didn't get any better and the seller was in bankruptcy and so that the sellers law firm was holding the $10,000 okay so many mistakes with this already he gets into the end of the finance end of the inspection period and the seller still has not turned over all of them the financial information did he use my purchase and sale contract No do you know why my purchase and sale contract is word of the way it is this is one of the reasons so he gets down to the last couple of days I said I said kill this deal kill this deal now he was no no no no we'll get the information if we don't get the information then we'll just kill it the guy was promised all the financials right up on the last day guess whose phone didn't work for two days the sellers nobody heard from the seller two days past we're now in the financing period guy goes to kill the deal and they say no we're not killing the deal you never file for an a mortgage you never negotiate in good faith you now owe me that $10,000 it's mine and I'm in bankruptcy and I need that $10,000 so my lawyer is going to turn it over to the court and what's called an interpleader so it turns it over to the court my client had to my client had to go through a hearing a court case the whole trial to get the $10,000 expert witness they had me fly down to Washington as an expert witness caviar shrimp champagne I mean hey I was an expert witness I had all sent up to my room it's good thing my credit card cleared no anyway I didn't I didn't eat I don't like any of that stuff anyway so I had to be the expert witness in this testimony in this in this trial he won he got his $10,000 back an illegal build for $10,000 because he waited those two days don't do it if they're having any questions remember guys we're coming down to the number one rule down here and the number one rule the reason why it's number one rule is because if we don't do this part correctly we won't we will never be in control of the deal this guy lost control of the deal when he went into the financing period dinner terminated the deal continue the negotiations and waited for the information that's how it should have been here but he didn't listen okay so that's a financing period why am i Michael um here today Wow we got cooking closing date closing date there did you see it that's number six number six closing date one of the things guys in the templates that I have on in the memberships I'm gonna update them soon but here's the thing they are templates you manipulate them based upon what you want okay I have one template in there that has a 30-day inspection a 45-day financing and the 90-day closed okay that's just a template I don't recommend those numbers I don't recommend those dates and how to go but you have to make sure that the closing date is a date that makes sense in light of all of the other dates if you have a 45-day end of the financing period and then a 90 day close that's 45 days between the two dates no bank holds their interest rates for that long so you got to make sure that those numbers make sense typically what I like to do is a 30-60-90 30 60 75 30 45 60 and it's just a nice flow every step of the way you know you finish with one you can wrap up the other and you're gonna close right thereafter so make sure that the dates on the closing date makes sense in light of all the other dates on the contract okay don't another mistake I see happen is don't make the closing date the same date as the financing contingency the end of the financing period because your bank typically you get down to that point where you know you're going to do it or not in the bank gives you approval well it's gonna take the bank two weeks to put all their paperwork together so make sure that your closing date doesn't it isn't a date that you cannot perform - you never want to get yourself into a contract that you can't perform under you're the one that were drafting it you're the one signing it make sure you can perform under that contract okay noticing all right how many how many doing a question Oh what are you doing deals where that says whether it says a price is TBD and it says a price is super to be determined you really need to know the cap rate in that marketplace and that's going to help you determine what the price should be okay so what you can also do is go on the cashflow analyzer software put in the noi and then figure out what what numbers work as far as a debt coverage ratio as far as a cash or cash return at a particular price and then that will help you determine what the cap rate is and see if that property is trading at that at that right cap rate if you're looking at a class a property and you put the numbers in and once it once all the numbers are in their case spits back out a mate cap well then you know that deal is just not gonna work so you know and remember is I always say that beautiful thing about multifamily is that them the numbers are a ballet and they all work perfectly together so if you know you know some if you know the NI you can put into the cash flow analyzer and start playing around with different variations to figure out what the price should be the cap rate is going to help you determine whether that price is in line or not whether the deal is in line so it's all a nice flow so that's that's typically how you look at those TV DS but remember those TV DS are typically done by brokers and that don't want to price it they want the market to price it because they don't want to set a cap rate for that type of property they want the market to set the cap rate they want some guy with deep pockets you California to walk in there and buy it in a for cap and so that's that's why they do those TV DS okay figured out the comps in the area so you can get at least get a guess we'll okay so Doug katella's got it right okay good good good good here we go oh man that water's so good number seven okay remember what all of my offers have the schedule one times this thing was never in my early offers it never was and I'm telling you right now that is the best move I ever made and because it tells you right away what the deal is going to moose or if it is I mean there's some this a particular owner forum member right here on the call right now who is finding out why that scheduled one is a great idea because the sellers attorney is playing games and saying and acting like he's never read that document before it's on our offer we give it to them the very first time we have our first written communication with them and we state all the things we need and if the seller can provide it that deal is going to go through go smoothly and if we get the deal executed and we're on the contract and the guy shows up and he's not going to turn over anything because he doesn't have it that deals a dead deal move on just move on and it's all because of that scheduled one so make sure now you know we've crafted it I'm going to get back out there and update some of those some of those templates because we've got a nice schedule one that has all the information you need it's been developed over time it's a great document so make sure and remember the the the typically the way we write the earnest money deposit is we don't put a dime down on the earnest money until we have all those documents because remember look at my client that lost $10,000 he asked for those documents on day one and never got them but he put his ten thousand dollars up and he was what he won but lost he lost so that's why we don't put any of our own hard-earned money into the deal until that schedule one information is in our hot little hands so make sure you do it that way all right so that schedule one is great document live by make sure that they know when when the offer comes back counteroffer comes back signed executed or not a good counter and the guy has marked off cross things out of the schedule one that he doesn't have that's great you know that he's gone through it you know that he's serious about giving you information to make the deal happen so use that schedule to your advantage okay myth number one about offers you don't need any money to make offers you don't need any money so for those you sitting there God can make garbage who can't do this listen I'm gonna show you the myths you guys don't need anything just write the offers guys get the activity going broken up me too obviousiy broken me and put up $100,000 earnest money approval funds before he accepts accepts the offer okay put a 100 100 thousand okay but Anthony you got to tell me more about the deal like how much was it deal worth you know one in a hundred thousand dollars represent and remember out here in the Massachusetts area one percent ain't gonna fly that's that's how hot this market is and you're gonna think about that too when you're talking about it anything in the schedule limit absolutely our must-haves okay Mike mother said anything that in the schedule an absolute must-have for me the bank deposits I need to see the revenue coming in that tells the story and remember guys and I talked about this in the due diligence course one of the biggest tricks the sellers do when they give you those bank deposits is you go in there and you look for deposits the end in three zeros why type it in what are you doing it on a deal it looks good otherwise the seller via his broker says they want em need to go to a neutral escrow title company like Chicago do you kill no you don't kill a transaction you just go to chicago title chicago town or any of these you know chicago titles stuart title first national first american all great companies we can work with them for the earnest money okay but preferably prefer to keep it my firm's i all done account okay so myth number two money yeah we did myth number two oh this one came up recently I get this a lot I don't have an entity I don't have a company I don't have an LLC I don't care make up a name just throw it on the offer and send it out it doesn't matter you know why because you're never going to own the property in the name of the entity that you're making the offering you know you're gonna create the day before you go you buy this property you're gonna create an entity with whatever state it's in you know 1 2 3 Main Street LLC well you're not gonna name you know make an offer in the name of 1 2 3 Main Street LLC that's a property making an offer on that's the silliest thing I've ever heard don't worry about it just make the offer okay stumped me on the OE stumped who still might bother they patent the deposit siren iris says why three zeros cash deposit they're making cash deposit okay they're making cash deposit but where they're making are in our owner owner term for and the accounting owner essentially the owner is putting money into the deal an owner is not going to make a deposit into his own bank account his own company's properties bank account in sums crazy number he's gonna give the property ten thousand dollars so you see it a deposit going into that cash to find that monthly deposit a monthly bank statement for ten thousand dollars and you look at you think it was a wait a minute I mean they collected rent that month equal to exactly ten thousand dollars no the owner the property was losing money the property's struggling they needed to put some money down he writes a check for $10,000 why well I thought this property is doing gre t I thought this property was able to pay its bills why is the owner putting in ten thousand dollars and so that's the thing you look for it's one of the tricks that they do so you got to make sure that you when you go when you get all the bank statements you start off with the deposits and the deposits match up with the rental revenue and the other income so if you see something with three zeros you're like whoa wait a minute here this doesn't add up okay see ya one of the tricks the owners do all the time all right number three we said no entity number three is I don't have the financing lined up well that d'lai about it don't worry about it I mean when we start making offers what we're putting together the deal in our minds you have to think about how am I gonna get this deal finders you always have to think about that but if you don't have the answer for it don't worry about it we'll figure it out don't let that be a roadblock to you getting this deal under contract don't let that be a roadblock to you just getting offers out the door every day okay that's your responsibility to just get those offers when Charlie's answer is better than mine this is you know this is like he's leading up to you know but you know it was like Charlie's answer is better than mine but I'm much better looking Doug Benson but these days guys are running all of their businesses out of one account true what do you mean Doug do you mean like the you think the guy who owns a bunch of properties is doing it all in one bank account so what you're saying cuz I don't see that I won't yeah I don't never ran my properties that way Carolee I'm only mentioning that the last two buildings and I have four LLC's and you have four LLC's you have separate basses one yeah so cliff yeah you have you have to I mean it just it's crazy these guys that are running properties like it's her own personal cash checkbook it's a disaster and it's a disaster you have a guy show up and the way he provides you with the financial information is with a Schedule II ya cost more in taxes also cost more and on every every every year with the governor registering those things you know you have a guy who gives you a schedule he you love that because you know he's not gonna lie to the IRS and he's gonna try to minimize his income as best he can with the IRS so schedule ease can certainly help you those are those a lot easier so all right number four I don't I don't have any investors boy you know I'm seeing this one more and more well I haven't I haven't found the money yet I'm gonna yelling once you go and talking the investors they're gonna tell you will show me a deal and well I don't have a deal yet because I don't the investors well you know the investors because you're on a deal I know it's a very frustrating a part of this business I get it guys but remember you're always looking for proper and you're always looking for money alright so Jeff you got to be doing both at the same time it's a two legged stool and it stands up beautiful when you get it going so make sure that you have you're always looking for money and you always looking for properties but don't let the lack of investors early on in your business prevent you from getting your business off the ground okay everybody get it now okay now we'll come down and close I'm going to go very quickly because I'm obviously running long cuz I'm gonna go home I still got it now alright alright don't write it offer with a repair allowance just don't do it I know there's one guru that says 3% you just put 3% you they'll give you that don't do it you've just bargained away one of your best chips wait until the end of the inspection period okay then decide whether you need a repair allowance and if you do that's a much stronger period for you to negotiate because the guys had this property I'm the contract he's coming up in the inspection period he thinks oh man that closing day is coming that closing day payday is coming let's make this happen and boom you hit them with a repair allowance wait don't put in that first one number two never ask for a second mortgage don't ask for a second mortgage you'll lose control of the deal I go ahead and ask for seller financing just don't call it assault say the second mortgage okay I'm not gonna get too much more into that I talked about that so much on other videos I think I even talked about it on the I do it on lesson five lesson five talks all about that do not forget what number three is like I am right now all right blaming it I can't remember what I meant number three okay go watch the video finally why did we do this why did we go through all of this stuff the cuz guys remember what the number one real rule is what's the number one rule tell me who was gonna get the gold star today who's gonna get stay in control of the deal I know that was Cynthia that was not Stephen that wrote that I know that that's definitely Cynthia always remain in control of the deal and that starts with drafting the offer the right way if you don't draft the off of the right way it's gonna come back and bite you if you set everything up perfectly and the offer side you're gonna flow right through the whole entire process and you will always remain in control of the deal [Music]