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Michael with every seller lead is to walk out of the appointment or the phone call with an agreement to help the owner in some way or another to sell their unwanted property for a profit in fact there are five different acquisition offer methods I follow that I'm going to teach you in detail on this video the problem is most investors are only using one of these five methods and as a result our wasting marketing dollars and losing out on thousands in unearned profits by adding these other four I'll be showing you not only will you be unstoppable and light years ahead of your competition but you'll 10x or more your current lead to contract ratios resulting in thousands of additional dollars in your pocket each and every month by the way if you're new here I'm Jerry Nora to make millions of dollars a year wholesaling and flipping houses and here on my YouTube channel I show you how to do the same so if you want to be a flipping Genius Like Me and live your dream life subscribe to my channel and watch my videos being able to maximize every lead you generate is critical to your success so before I break down down and dive deep into these five offer methods I need to put deal finding in the proper context as an investor you have to adopt the right mindset when it comes to Acquisitions now I think of Acquisitions like a faucet that you turn on and never turn off Acquisitions is ongoing and never ending Around the Clock 24 hours a day seven days a week 365 days a year that's what the most successful investors do and because of that they always have a full pipeline or deal flow and continually make money month in and month out the kiss of death in this business is a roller coaster income where some months you have deals in some months you don't have deals inconsistent deal flow is the natural consequence of inconsistent lead gen the key performance indicator or kpi most important to measure is the number of offers you make each and every day I believe a minimum of five offers a day consistently over time will generate three to five deals a month now I did a detailed video breakdown of my exact process for making five offers a day I'll put the link to that video in the description below and you can watch it later and if you're just getting started and you don't have a marketing budget to generate leads I did a video that shows you exactly how to get unlimited leads with zero marketing budget I'll put the link to that video in the description below as well for you okay let's Deep dive into the five closing methods to maximize every lead and as a reference I'm going to refer to my mind map so that you can also see a visual breakdown now once you generate a distressed property lead and you do a discovery call or what I like to call a motivation probe the first method is the most common and where every offer should start it's what most investors do especially wholesalers and new investors and that is to make a low cash offer a low-cash offer is usually the first offer to a seller who owns a distressed property because it establishes a baseline but the problem is most people don't really understand why a cash offer has to be so low and who the ideal seller is for a cash offer so let me explain it to you so it's crystal clear all cash means the funds are liquid or readily available all cash also means that the offer is not contingent on obtaining new financing and in real estate getting cashed out has the highest value in the marketplace whether it's your cash or someone else's Cash There's an opportunity cost for that cash in other words if that cash is used on your deal that means it's not being used on a different deal that could yield a higher return and if it's not your cash and it's someone else's cash access to that cash is expensive which is why you need the biggest discount when you buy a property for all cash this is why you often hear cash is King it's fast it's convenient and as such requires the biggest discount for example I just made an offer on a distressed property and I gave the seller two options option one was to pay a hundred and sixty thousand with a 45-day closing with both a financing and Appraisal contingency that means if I don't obtain the financing and it doesn't appraise I can back out of the deal option two was all cash no contingencies close in a week for a hundred and forty five thousand which offer do you think the seller chose the cash offer which was fifteen thousand dollars lower why because of the speed and convenience and certainty that cash provides now if you want to know how to calculate a low cash offer on distressed properties I did a video that shows exactly how to calculate that low offer you know the drill Link in the description but here's the thing that most investors don't understand only about five percent of all sellers in the marketplace at any given time fit the all cash bucket the seller would have to have high Equity otherwise you can't sell it at a low price and he has to have urgency and be willing to give up that equity for the speed and convenience of a fast cash closing so when you're talking to a seller and he fits that profile a cash offer is the perfect solution but what if the seller doesn't fit that category what if he has a distressed property but he doesn't have enough urgency to sell the property for a low cash price but he still wants to sell good question Jerry that takes me to methods two three and four which are all creative financing methods I'll break down each of these so keep watching but creative financing allows you to acquire Properties by paying more than all cash for several different reasons you'll see what I mean as I explain these next three methods method two is called seller financing or owner financing let me explain when seller financing is the perfect solution let's say the seller has a distressed property that he wants to sell and he owns the property free and clear which means there are no loans or liens on the property that means he has a hundred percent equity this is more common than you think it's estimated that 30 percent of all real estate owned is free and clear and let's say that the seller is not facing an urgent situation where he desperately needs to sell fast at a steep discount for all cash and so he's not in a desperate situation so he doesn't need to get all of his money up front now in this situation if given a higher price the seller might be willing to wait to get some or all of his money in fact that's the very question to ask the seller if I give you a higher price than all cash would you be willing to wait to get some or all of your money another question that my friend and creative financing expert Pace morby likes to ask is if I give you the price you want will you give me the terms I need now with either of these questions the seller is probably going to ask what that means so then you can explain it in more detail in this situation since there aren't any loans on the property the seller actually becomes the bank on his own property so rather than paying cash to the seller in exchange for ownership of the property instead a loan is created in the amount of the agreed upon price in exchange for ownership of the property and just like with any loan it could have a down payment or zero down and it could have an interest rate or it could be a principal only loan it all depends on what you negotiate with the seller now if you want a more in-depth explanation of seller financing as well as how to calculate how much more you can offer than all cash I did a detailed video link in the description after seller financing method three is also a creative financing strategy called subject to the existing financing or just subject to or sub 2 for short now let me explain when subject two is the perfect solution let's say the seller has a distressed property that he wants to sell but he does not own the property free and clear instead he has an existing loan already in place on the property and the loan balance is more than the low cash offer the loan balance may even be higher than the as is value of the property that is what we call negative equity or what I like to call upside down for example let's say your low cash offer is a hundred and ten thousand but the seller has an existing Loan in place for a hundred and twenty five thousand that's a problem because the cash offer isn't enough to pay off the loan the seller would have to bring fifteen thousand dollars to closing to pay off the loan which isn't likely now in that scenario using subject two you could buy the property for a hundred and twenty five thousand you would take title to the property but leave the existing Loan in place and take over the existing payments now you may be wondering why would you pay more using subject two well remember real estate is about the use of the property not necessarily the price to illustrate let's say using the example I just gave where the loan balance is 125 000. let's say that the monthly loan payment is eight hundred dollars and the going rental rate for that property is twelve hundred dollars a month so at cash flows 400 a month by purchasing that home subject to for 125 000 you just acquired a rental property without having to use cash or qualify for a new loan this is smart because why take out existing debt with new debt especially since interest rates are currently higher for new debt and remember if you don't want to keep a long-term rental no problem you can wholesale that subject to deal or any creative financing deal for that matter for a premium because another investor will be thrilled to acquire a positive cash flowing rental property for little or no money down the subject to strategy raises several objections such as do on sale clause and the seller's debt to income ratio for buying a new property I don't have time to discuss these objections on this video but I did a detail video with Pace morby where we address all of the concerns with subject two to get all your questions answered watch that video link in the description now as I said subject to is ideal when the seller has an existing loan and there's little to no equity but what happens when there is an existing loan but there is high Equity great question Jerry that brings us to Method four which is combining subject to with seller financing for example let's say your creative financing price is two hundred thousand and the seller has an existing loan already in place for a hundred thousand now if you took over the loan at a hundred thousand how do you pay the remaining hundred thousand well you could pay the difference in cash or use private money or you could create a seller finance second position note on the remaining hundred thousand in that scenario the bank would be the first position loan for a hundred thousand and the seller would be the second position loan for the other hundred thousand and you just acquired a property for two hundred thousand without using any cash or qualifying for a new loan and just like the other creative financing methods if you want to Deep dive on how to use a hybrid between sub 2 and seller finance I'll put a video link in the description below for you and just so you know there are several other creative financing strategies that I'm not going to cover on this video but I did put together a comprehensive guide that covers them I'll give you that for free just go to creative financinghacks.com before I cover the last method I have two final thoughts I want to share with you about creative financing first is don't get tripped off about the paperwork that seems to be what most people worry about I have a highly competent transaction coordinator that is intimately familiar with how to structure all of these strategies I let her figure it all out and make sure it's done correctly I just focus on structuring the deal which is where you should spend your time not doing paperwork and you can use her too for your deals I'll put her information below in the description so you can use her on your next creative deal the second and final thought on Creative that I want to reiterate is you don't have to keep creative deals in fact I I rarely do once you execute a creative financing purchase agreement you can wholesale that deal like I said another investor will pay a premium to buy your creative deal you would simply assign your contract just like you do with an all cash deal all right last but not least is Method five which is to list the property for sale as a real estate agent you cannot do this method unless you have an active real estate license which I highly recommend you get it's well worth it as you'll see here's when listing the property for sale as an agent is the perfect solution let's say the seller has a distressed property that he wants to sell but he does not want a low cash offer solution and he has enough equity to sell it on the open market and he's not willing to wait using creative financing methods basically he wants the highest price the market is willing to pay now this is the number one throwaway lead for most investors in that situation if you have a real estate license you can offer to list for sale on the MLS for a 3 percent listing fee so think about it if the property sold for 400 000 you would earn a twelve thousand dollar commission which is about the same as a typical wholesale fee and if you don't want to list it yourself you can refer it to another agent for one to one and a half percent commission now I will say as a licensed investor you have to always be transparent and crystal clear with sellers about your role in the transaction if you're acting as an investor you're looking out for your own best interest and if you're acting as an agent you're looking out for the seller's best interest you have to make sure that the seller Knows Your Role I did a video that explains exactly how to do that including my agency disclosure form that the seller signs Link in the description and if you have a license or are considering getting your license I did a video that explains eight ways to make additional money with your real estate license Link in the description so taking a look at this mind map let's quickly review the five methods and when to apply them method one is an all cash offer I deal when the seller has equity and needs a fast and convenient in closing method two is seller financing where the seller wants a higher price than all cash and owns the property free and clear and is willing to wait to get some or all of his money by creating a loan to you method three is subject two ideal when there is an existing loan and little to no equity and is willing to let you take over the loan method four is a hybrid of seller financing and subject two a deal when there is an existing loan but High equity and the seller's willing to let you take over his existing loan and create a second seller financing loan for the remaining equity and Method five is to list for sale as an agent you must be licensed but this is ideal when the seller wants the highest price the market will pay and if you want this mind map as a reference guide as well as my 10-step process to acquiring a deal and my flipping business blueprints I'll give you all of that for free Link in the description in the very beginning of this video I said that most investors are only using one of these five methods the all cash method and as a result our wasting marketing dollars and losing out on thousands in the unearned profits by adding and mastering these other four methods you will be unstoppable and light years ahead of your competition because you will literally have the right solution for every distressed property situation you encounter resulting in thousands of additional dollars in your pocket each and every month if you think that's brilliant and plan on implementing all five methods leave a comment and say Jerry you are flipping genius and I'll see you on the next video