Posted by Monique on May 18, 2001 at 08:59:04:
Jimi,
Not to answer for Merle but …
You should check out Merle’s previous posts where he gives
TONS of details of how he structures his deals with private investors.
Do a Search on his name and add “private”. You’ll be amazed at how much is there.
Monique
Nothing left to sell! - Posted by Merle E Woolley
Posted by Merle E Woolley on May 17, 2001 at 06:04:12:
Yesterday as we wrote a contract on the last house we had available, I was reminded of an incident from a few years ago.
Pat and I were playing golf in Florida. One of those slow days, golfers backed up in front of us. As we sat at one tee box awaiting our turn, a little girl (probably about 8-10 years old) came out of the house next to the course. She walked up to me and asked, “Do you want to buy some golf balls?”
“Let’s see what you have,” I responded. These were obviously balls she had retrieved from their yard. “How much?”
“25¢ for most of them, 50¢ for the really good ones,” she told me.
“How many do you have?”
She looked up at me and said, “You can’t buy them all.”
“Why not?”
“Because then I wouldn’t have anything to sell!” she said in her childish innocence.
Well, today we have nothing to sell. One of perhaps a half dozen times in 16 years we don’t have anything ready to sell. Have 3 under contract, one of those already sold … but, we don’t close on it til next week.
Since the convention, we’ve purchased 4 houses, had 3 come back. Have 3 more under contract to buy, will close in June.
Sent a letter last week to our investors … sort of a “once-in-a-while” update on what we are doing. Mentioned the 3 houses under contract. Within 48 hours of mailing, we had commitments for financing 8 houses (those 3 and 5 more). If you are not pursuing the private investor thing, you should be. Sure is nice to have the money sitting there waiting for us to find something to buy.
By the way, yesterday’s sale (L/O) was a referral (as most are any more). But, this was one was especially interesting in view of the way some investors do their L/O’s.
Last month we received a payoff on a property. This particular L/O specified that the buyer would receive a $50/month rent credit for each “on time” payment for up to 36 months. They had been on the house for 6 months.
The title company credited them with $300 on the HUD statement. After everything was signed, we had our check in hand, ready to leave, we told the buyer to wait a minute.
We handed them a $1,500 check. “The contract says you get $50 creit for each payment made on time. As far as we are concerned, you made the next 30 payments in advance and you are entitled to the rent credit.”
Wiping the tears from his eyes, he thanked us and we all left.
Yesterday’s was the 3rd referral from them.
Nothing to sell today … warm weather … sun’s coming up … be back in about 5 hours (after 18 holes).
Have a GREAT day … TODAY!!
Merle
working w/private investors - Posted by jimi
Posted by jimi on May 18, 2001 at 08:45:41:
“If you are not pursuing the private investor thing, you should be. Sure is nice to have the money sitting there waiting for us to find something to buy.”
Merle -
how do you structure your relationship with your investors. Are they simply “lenders” earning a fixed return on their capital? Or, are they involved in equity ownership along with you?
regards,
jimi
Nothing to say but… - Posted by Jim IL
Posted by Jim IL on May 17, 2001 at 14:12:30:
Thank you!
Merle, that made me smile, and I needed that today, thanks.
Take care sir,
Jim IL
Re: Nothing left to sell! - Posted by frank
Posted by frank on May 17, 2001 at 09:35:15:
I have a sales position open for you “golf ball” girl.
What a Charmer!!! I am reminded that your appearance and what you say is so IMPORTANT. Thank you for your
great and simple story… frank
Re: Nothing left to sell! - Posted by Tr
Posted by Tr on May 17, 2001 at 08:15:34:
You have a good heart! We all can learn something from this. :0)
Oh I love that! - Posted by steph in tex
Posted by steph in tex on May 17, 2001 at 06:49:30:
Merle,
You never cease to amaze me!
I love the 1500 for the 30 “on time payments”!
I have never thought of that.
I will put that in place immediately.
Its about giving back, and giving plus one service, that keeps the houses pouring in.
You’re a good man Merle. Your heart is pure, and you do right by people. I admire that immensely.
I believe that’s the right way to do business. Kinda a “karma” type thing. I’m glad I checked the board today. That’s one I hadn’t thought of. It’s a good one.
Thank you.
Steph in tex
Re: working w/private investors - Posted by Merle E Woolley
Posted by Merle E Woolley on May 19, 2001 at 17:04:18:
Our investors are “lenders” only … no equity or profit sharing. We pay them 9% interest with monthly interest payments, up to 5 years, no prepayment penalties.
Rather than reinvent the wheel, Monique’s suggestion wil find a lot of this. If you have additional questions, let m know. Will try to answer as soon as I can.
Merle