Business models for selling a house every weekend

(Personal Note: be sure to read and leave a QUESTION or COMMENT at the end. Thanks! –Richard)

When I got fired from my own company (a fascinating story but not one I can tell here) I was on a non-compete so I couldn’t go back into the business I had been in.

I did what most folks do who have raised a bunch of money, built up a successful company, and been ousted by their board of directors.

I went into consulting.

My clients soon included DuPont, the George Washington University and a cable TV company. Those were fun gigs and I had a blast.

But when it was time to get back to the love of my life, when that non-compete expired, I dashed back into marketing and selling and real estate and alternative investing and all that I loved.

For real estate deals, it was evident that the market was going to crash. I had been in one crash already, in California, and I wasn’t eager to be owner of 10 or 20 properties I had to unload just when nobody was buying.

I in fact warned everyone I knew to get OUT of real estate. I sold my last property (my own house) and became a renter.

Not many people listened because the biggest money is always made at the very end of a bubble, just before the crash. When the crash takes place, it takes out the maximum number of people for the most clams possible.

This one was no different. This slow motion real estate crash started in large part just when I sold my last property, July of 2005, and continues to this day.

But in the meantime, I resolved to re-learn everything I thought I knew about real estate.

That’s when it hit me: those who can sell in ANY market, AT a market price, can own that market.

It’s the ability to SELL in any market, down up or sideways, that can make you rich in real estate.

Think about it. If you can always sell properties, you aren’t going to be sitting on your capital the way everyone else is.

When I was flipping houses and wholesaling in a big way, I was doing it in an UP market and selling was not a problem until the end.

But when the bubble crashed, selling was a HUGE problem.

So this time around, I said to myself, “Gell-Dog, you are gonna have to find the best, most effective way to sell a house quick, like in a week, at market price.”

I knew there was a system out there that I could adopt and try out and bring to my students. There had to be. I had heard of many systems that could sell a house quickly.

So what I did is what I do best. I have never had an original idea in my life. I am a passionate borrower of ideas. I try to use my access to top people to find the best experts in any particular skill or system and then I get them to help me.

So I went out there and located top people in the art of the “quick sale” of residential real estate.

Lots of people think they invented the quick sale. The 9 day house sale, or the 5 day sale, or whatever. I don’t know who invented it. I am not saying I did because I did not. But what I did do is interview and find those who have done them hundreds of times successfully. I’ve learned it, I’ve taught it, I’ve been there and seen what people do with it.

What I did was distill the best practices possible out of all the practitioners of the quick sale. And I created the 9 Day House Sale and taught it to my students.

The results have always blown me away. And what has astounded me more than anything else is, since this works so well, why everyone isn’t doing it?

But they’re not. So I’ll leave that question aside for the moment and move to how students of mine have made money with the 9 Day House Sale.

How to make money with the 9 Day House Sale

Consult with home sellers

This is when you collect a fee and homeowners rely upon you to help them. You can be a Realtor or not, doesn’t matter. You are never quoting prices to potential buyers and you aren’t acting in the capacity of a real estate agent or broker, even if you have a license.

I’ve known many who have pursued this and it works but it is the least profitable way to go. People don’t like paying you for this service. They would rather pay you after the house is sold. But you have a hard time collecting that way. So you either charge a pittance or you don’t ever get paid.

That’s why the people doing it as consultants have not been successful in the last few years.

Tie up a property and flip it

This is an awesome way to make money on the 9 Day House Sale. You can do a purchase agreement and make it contingent on a successful 9 Day House Sale. Then the seller knows the score and everything’s above board. Your purchase agreement gives you a principal position in the deal so you do not need to be a real estate licensee.

You put on the 9 Day House Sale and get a purchase contract for a higher amount than yours. You do a back to back closing, hopefully a dry one (yes you still can do these) or you do an assignment of your interest to the ultimate buyer for an assignment fee.

This is a great way to make money today. If you are a real estate agent or broker, you can also earn a commission. If you are not a broker or agent, you may be able to semi legally collect part of the commission, or totally legally, depending upon your local laws.

List and sell (and work with someone who flips)

Here, you are a real estate agent or broker. You use your knowledge of the 9 Day House Sale to list properties. You sell them quickly and pocket a commission and build a huge successful business this way. Every 9 Day House Sale tide washes up a whole bunch of new sellers to work with, and new buyers.

In all seriousness, you won’t know what to do with all the money. And if you work with a flipper, someone who can buy and flip, you can have him or her cream deals and earn double, triple or quadruple commissions.

List and sell (or flip) short sales in 9 days

Here is where things really get magical.

With most short sales today, you have an investor sign a purchase contract for the property at a huge discount. You don’t expect the lender to agree to this outrageous price because it is too low. But you put in the offer so you can get the lender off their butt to move towards negotiations.

The problem with flipping short sales is that the lender MAY approve the short sale in 60 days, or in 30 days, or in 180 days. You need to quickly sell the house when the lender has approved something, or when you’ve negotiated the right deal.

You remove your lowball offer at some point and substitute a real, ultimate-buyer type offer there instead. If you are working with a flipper, the flipper will have made the lowball offer, which will now be raised to satisfy the lender.

But how do you get an ultimate buyer offer quickly? You need to time a real, ultimate buyer offer so it comes in just in time. Not too early and not too late.

That’s where the 9 Day House Sale comes in. You can schedule your sale to correspond with when the lender has said “APPROVED” to your short sale flipper offer. Then you can do the 9 Day House Sale and get an ultimate buyer to pay far more than the existing contract. You can close both and earn commissions on both sides, 12% in some cases.

And you make your flipper investor very happy.

This is the magic of the 9 Day House Sale and I hope I have shed some light on how you can use mastery of it to make money in many ways. I believe this is the undiscovered “in plain site” secret for today’s market and for real estate wealth. I think that once you understand this you will be able to make money in real estate because you’ll know how to attract people who will pay market prices any time you want.

What power you will have.

Now, the Secrets of the 9 Day House Sale has been off the market for maybe a year and a half and I’m thinking of bringing it back for a time to help folks who are always asking for it. I think the time has come to blow the socks off people who need to sell houses today.

So do me a favor. Please ask a question, your #1 question, on the 9 Day House Sale. Or make a comment if you’ve successfully used the technique, or if you haven’t and thought about it. Thank you!

photocredits:
DuPont racing car http://www.flickr.com/photos/aresauburnphotos/
Eye http://www.flickr.com/photos/shanegorski/
Signs http://www.flickr.com/photos/thetruthabout/
Zombie bank monster http://www.flickr.com/photos/markusram/
http://www.flickr.com/photos/pictfactory/ condos for sale lockboxes http://www.flickr.com/photos/theritters/