Get a House with NO CREDIT - Step by Step Instructions

Is it possible for you to get a house in the next seven days or less with none of your own credit? Well, I'm here to tell you it is, and I'm going to share with you a strategy that most people don't even know about. My name is Monica M; I'm a serial entrepreneur and successful real estate investor. And what I'm about to share with you is a secret, little-known strategy that will knock your socks off when it comes to getting a no-cash house. In fact, if you don't even have a lot of money, you can also participate in this as well. So buckle up your seat belts, because what I'm about to share with you is going to knock your socks off. All right, so what I have to share with you is a crash course training that I recently did with my group, and I'm going to share with you a little bit about exactly how to get these no-credit houses, the kind of strategy behind it, and how you can actually get your next house in the next seven days or less. So check this training out; it will absolutely blow your mind as far as just how amazing the strategy is, and you might even be able to get your first house in the next seven days or less. So check this out. [Applause] [Music]

For those of you that have kind of missed a little bit of this, or maybe you don't fully understand um what we're doing quite yet, I'm going to talk a little bit about subject-to, and you know, really briefly give you the recap of it. So subject-to is definitely the way to go if you want to take over somebody's property, you want to do it without any of your own credit, and you want to do it as quickly as possible, meaning that you want a seven-day or less close. And it's not a typical close where you go through escrow and all of that, but you will be closing the deal within seven days or less. The reason we want subject-to is because, as you know, or you may not know, but you definitely can enjoy the benefit of a lower interest rate. Because many times these people have purchased the property years ago, and their interest rate is 4%, 5%, you know, high 5%, low 6%, which is, you know, as an investor, you're looking at about seven and a half or more percent to be able to buy an investment property.

So the cool thing about subject-to is it allows you to take over somebody else's existing mortgage while leaving their name on the original mortgage documentation, but yet the property will transfer into your name or your company's name by way of the warranty deed being filed with the county. All right, so it's essentially your property as far as the county's concerned, but it is still their property, their liability when it comes to the mortgage lien holder. And so you're essentially taking over their property by taking over their mortgage payments, and you're essentially going to be logging into their mortgage portal, removing their current bank account information, putting your bank account information so that all the monthly payments are being drawn off of your business bank account. And then this way you're ensured that all the payments are being made; that you never want to give them the money and then hope that they make their payments to the mortgage lien holder. Never, ever, ever agree to that; always say no, we're going to be taking over your mortgage portal; we're going to be putting our information, our banking information in there to ensure that every single monthly payment is made.

Now, most of these mortgage payments also include other fees such as taxes, like property taxes and insurance, so it just depends on how everything is set up. So it's cool if it's just a one-stop shop, meaning that every mortgage payment also includes taxes and insurance, because then you really don't have to worry about much of anything. And so essentially that's how it all works in a nutshell. The reason this is so powerful is because you can actually get involved in these property deals with none of your own credit. So even if you came into the United States as a complete foreigner and you have no social security number and you have no credit or maybe a really bad credit, you can actually make this work.

So now that you kind of know the overall view of what a subject-to, or sub-to, property is, then we can talk about how we can target the right deals, because this is the most important part. Like it's not just a matter of you understanding how subject-to works theoretically, but you have to understand how to target the right kind of deals, otherwise it's going to be very difficult for you to be able to make this work effectively. So in many real estate markets across the country and major metropolitan cities in the United States, many of these markets have gone soft, which means we went from a seller's market to a buyer's market. So because of this, it's relatively easy to be able to make these subject-to deals work. Also, with higher interest rates, people are really starting to rethink the urgency in moving. A lot of people are simply not moving; why would they want to trade their 4.5% interest rate into, you know, a 7% interest and then likely have to pay even more money on the property? So they're like, nah, I don't want to do that; let's not do that, because that doesn't make any sense.

With rising cost of living across the board, people unfortunately who were barely hanging on a couple of years ago, they're now finding themselves in a very desperate financial situation. Many times they are overleveraged themselves when it comes to credit. Many people have borrowed extensively on their personal credit cards or signature loans or maybe against their own homes, and they're realizing that everything across the board has gone up, as far as prescription medication costs, food costs, insurance costs, schooling costs, um, gas prices, um, maintenance on their vehicles—like everything has gone up, like equally; it's almost like all tides were just rising all boats at the same time. And unfortunately now people are realizing, okay, well, I could, I could, I could pay the extra money on my insurance and I could pay the extra money on my food bill, but I can't pay all these other expenses as well that are also going up across the board. And so people are starting to realize that they can't hang on anymore, which is why now many people are starting to find themselves in financial dire straits. And of course there's a lot of them that are now starting to get behind on their mortgage payments. This is why many of them become very, very motivated, and so therefore one of your biggest selling points is that you can close this deal with them in seven days or less.

If they have a property on the market, especially that one that's been sitting for a long time, that's been gone, it has not been sold, and there has not been any activity, they're even more desperate than ever. And so if you can use the selling point of, I can close you and make this deal happen within seven days or less, then they're all over it. Because even if you were an actual regular buyer of the property, you're still going to go into the escrow process; that's at least 30 days. And many times when people are in a financially desperate situation, they need to get out like yesterday. So the typical reasons for seller urgency is that the biggest one is behind on their mortgage payments, meaning that they're either in pre-foreclosure or they're about to be in pre-foreclosure; they're either divorced or going through a separation; um, there's a death in the family; maybe one of the parents died and the kids just don't know what to do with the house; they don't want the house; um, maybe they tried selling the house, but maybe the house requires too much work or they don't want to put any money into the house; they just want to get rid of it. So there's that; there's job transfers, like people that are in the military, for example, and they need to get out of town like quick; ex—if you have a property, for example, that maybe has a lot of work that needs to be done, and the owner just simply does not have the affordability to be able to make the repairs happen, and the place is falling around, falling down around their ears, and they feel like they've got to get out of the house, but they just can't afford to maintain it or repair it; maybe it has little or no equity; maybe these people got into the house at the peak of the market and there's like little or no equity, and I'll explain a little bit about why this is harder to sell these kinds of properties, which I'm sure you can probably guess kind of why, but there's another reason why you probably can't guess that it's very difficult to sell properties with little or no equity; and of course people that are retiring, they either want to move out of the state or move out of the county; many of them want to downsize their property; they don't want the upkeep; they don't want the lawn; they don't want all the extra maintenance, and they don't want the extra property taxes, so they'll go from like a larger house into like maybe a condo or something to save money, but also mostly simplify their life.

So they must be in some kind of motivated situation for you to adequately and effectively make the subject-to strategy work. So they need to be able to make a quick decision, and if they're not in a desperate situation, a lot of people will start waffling around, or, I don't know, I'll think about it, and all this other stuff, and then they'll spend weeks and weeks and weeks thinking about it. You want them to be able to make a decision relatively quickly, like right on the spot. And so this is why we target those situations that are desperate, because if the situation is not urgent, they're likely not going to play ball with you. So if their situation is urgent, obviously you are offering them a very, very quick solution so that therefore they can get out of their situation. So it's much easier for them to wrap their head around the idea of how this all makes sense, doing a sub-to or subt-two deal, rather than, again, let me, let me ask all my friends and family who've ever had a piece of real estate what they all think, and of course everybody's going to be like, oh, that seems like a scam, or don't, don't do that; don't subject-to sounds like it's not going to work, or sounds like they're trying to steal your house away from you. So this is why we need to focus on those that need this as a quick solution.

So the biggest reason why most people will move quickly on a subject-to deal is that they're behind on their mortgage payments, and there may or may not be in pre-foreclosure, but if they're not and they're behind on their mortgage payments, they will soon be in pre-foreclosure. So for property owners behind on their mortgage payments, a conventional property sale, outside of, of course, an all-cash offer, which in many cases is simply just not realistic, even then a close can take too long. So a conventional sale, even if somebody had their property on the market and somebody decided to give them an offer like right, like that, you're still looking at a 30- to 45-day escrow period, right? So unless it's an all-cash offer where a sale can happen within two weeks, um, most of the time these pre-foreclosure people just don't have the time to be waiting around to sell their property or for the property to close. Many pre-foreclosure owners, especially the smart ones, you know, they, they're going to attempt to immediately put their property on the market right away, like, for example, if they're one or two months behind, they know that they've been struggling financially; there's no foreseeable way for them to fix their finances, then what they'll do is they'll, the smart people will put their house on the market right away to try to avoid foreclosure. Unfortunately, in a buyer's market, as we have in many areas of the country right now, many of these properties will simply sit on the market unsold for many, many, many, many months, and then of course this will put them in a very bad financial situation, especially when it comes to their mortgage lien holder or their bank, because this will put them in a pre-foreclosure situation, and they will eventually end up likely losing their house. Okay, so this is why it's just so mission-critical for them to be able to do something with somebody, especially if their property's been sitting on the market forever and there's no takers, there's no activity, there's nobody touring the house, there's no offers, then they're going to have to make a quick decision on what they want to do.

So divorce or separation; these are harder to work with because there's usually two people that disagree about how their house should be handled, but if one of the two people actually walks away from the deal and doesn't care what happens with the house, then it's much easier to be able to deal with the situation. So this is probably the hardest motivated seller situation because of the, uh, dual parties that are involved. And so if the property doesn't sell after they put it on the market, usually then and only then will both parties become motivated to get rid of the house, because most of the time during a separation or divorce they just want to move on with their lives and they just want to split and say goodbye, and that's it. And so usually though they have to go through the pain period of sitting in a house that's for sale for, say, four to six months or longer for them to want to be on board with something that's creative like subject-to. And so it's, in many cases, it's difficult to get two people to agree on anything when you're dealing with a divorce or separation, except when the property's been sitting and sitting and sitting; it's not selling, then and only then do these kinds of people become motivated to cut bait with their house. So likely you're going to have to wait till the situation becomes desperate, meaning that they've been sitting on their house for sale for so long and it's not selling, and then they're going to be amenable to the idea of doing a subject-to property deal.

So death in the family; this is probably next to the easiest, which the easiest, as I told you, is those that are behind on their mortgage payments, and this is probably the second easiest is when there's a death in the family, especially when their heirs or their kids or whoever's handling the property situation, especially if they didn't live in the property or on the property. So usually the property heirs are going to want to get rid of the property right away, including all the stuff on the property; they're going to want to put the property on the market usually first; it'll usually sell, um, you know, if it's going to sell, it's going to sell right away. If they're smart, they'll do a fire sale, meaning that they'll sell at the bottom of the market or the bottom of appraised value or market value, but many times you have greedy kids that want to get every dime they possibly can out of the house, so they'll just list it for top of the market, even though it probably needs a lot of repairs and so forth, and so they just sit there on a property that's not selling, and months and months go by, and then finally they become motivated to get rid of it because they just have no emotional attachment to the home whatsoever. So likely you're going to have to wait until their property's been sitting on the market unsold for many months before the family will agree to a subject-to deal.

Job transfer; many times when a property owner needs to leave the state or the county quickly, maybe they're in the military, then the property usually will end up being listed with a real estate agent; many times it will go unsold, and the owner is going to want to cut ties with the property because they already left the immediate area. So likely you're going to have to wait until the property again sits unsold in many cases, but again this is another opportunity for you to be able to come in with a potential subject-to opportunity for them. If the property has expensive repairs that are currently unaffordable to the owner and seller, especially if they have the property listed and it's not going anywhere, there's no activity, no offers, it's just sitting and sitting and sitting; many of your older homes are going to fall into this category, and of course especially if it's an older seller who doesn't have the ability physically or doesn't have the financial ability to have done routine maintenance; many times these houses are just in disrepair; there's a lot of work that needs to be done; it scares away a lot of potential buyers because they figure, why would I want to buy your house, but I could buy another house down the street for relatively the same amount of money that doesn't need that much work. So there's not enough curb appeal; it does not attract enough buyers; and so a lot of these properties will sit on the market, especially in a soft market. So the seller usually will not be able to afford to upkeep the property, add money for curb appeal, and, and of course they're not going to be able to afford to move out either. So you're going to have to be aware of that, and you're going to have to budget in for that in the event that they're going to need money to move as well as money um to be able to pay their current mortgage payment, and then you're going to have to budget in for that, which is usually between five and $10,000 for you to have a seller or owner of the property move. So you have to keep that in mind.

Many of these properties in particular will sit unsold for many months, driving the seller or the owner into desperation. Little or no equity; so when people buy at the peak of the market, maybe they bought the property for an Airbnb or some other reason, and it's not making the money that they thought, or they just don't want to be an out-of-area owner anymore, or they just don't want to be an out-of-area landlord. So what they do is they try to turn around and they resell it, especially in the soft market, and they realize, oh shoot, I have no equity, you know, it's going to be hard for me to sell this, and I still have to keep my price on the MLS on for top dollar because I need to be able to pay my mortgage lien holder. So real estate agents absolutely hate little or no equity homes, and the reason being is because their commission comes directly out of the equity, meaning that if the, if the property has no equity, then the seller is going to have to come out of pocket for the commission. The seller who's upside down on their property usually cannot afford to come to the table for the close to make sure the real estate agent gets his or her commission. And so they usually kind of don't take these property deals, and they will literally cherry-pick potential listings, and those that don't have any equity they will pass on. So if an agent does take a listing, which there's always going to be a real estate agent that will take such a listing, they will put no money or no attention into selling the property, period. So a lot of your really top-notch real estate agents, they'll hire a really good photographer; they might stage the property for you; um, they might do a bunch of, you know, open houses where they're offering food and so forth. So this is what typically happens with a traditional sale; however, if they know that they're not going to get any money out of the deal, they're not going to put any money or attention into the sale of the property, which means most likely it's going to go unsold for many months. And so therefore, if you're approaching this real estate agent, and I'm going to talk a little, a little bit about my secret strategy in doing this as we go along, but when you're approaching the real estate agent and you're going to, you're going to actually go through the process of making sure that they know that they will be getting a commission, you will guarantee, you will guarantee that they get the commission. Does that make sense? You want to make sure that they know that it's coming out of your pocket, so then that little worry, that nagging little worry bird in the back of…

Their mind that said, oh, you're not going to get a commission out of this deal; they're upside down, they have no equity, you're going to be wasting your time on this listing. Now, all of a sudden, it's just like their fears have been put to ease, if that makes sense, because now they know you are making the payment toward their commission. Usually, it's the buyer, or rather the seller, that has to pay the commission, not the buyer, but you, as the buyer, will be paying their commission, and therefore they don't have to worry about the property being underwater. And many times, because they know that they probably aren't going to get the commission otherwise through a traditional sale, if one actually happens, they will be more than adamant in pushing your deal on the seller, and basically selling it on your behalf. They will sell it for you; you will not have to worry about selling the deal; they will sell the deal on your behalf, if that makes sense.

Retirement: So many times when people retire, they want to move out of state, or they want to downsize because their property is way too big for them. They just simply don't want the maintenance; they want to live in a house that's, you know, lighter on taxes, lighter on maintenance, lighter on everything. They don't want to mow the lawn anymore, whatever the case may be, so they want to downsize into something more affordable. Many will automatically try to sell their property on the MLS, usually through a listing agent, and in a soft market like what we have right now, these properties will usually sit unsold for many months, driving the owner into absolute desperation. And this is when the seller or the owner will be open to doing what we call a subject to deal, especially since it'll defer their capital gains taxes on the sale of their property, meaning that they won't have to come up with a lump-sum tax payment to the IRS when they sell the property because they didn't get the proceeds of the property, except they're getting payments, if that makes sense.

All right, so how do you find these properties? There's two different ways to find the properties: one is through the online MLS. Target—um, I, I like to target the MLS, and the reason I like to do this is because I like to target properties that have been sitting on the market for 60 days or longer, ideally much longer than 60 days. I like to use the keyword in the MLS, um, either "Finance" or "motivated" or "As Is"—certain keywords that trigger those that are really desperate to sell their properties immediately. I specifically target empty properties, even though this is not a requirement; you don't have to target empty properties, but I like to target empty properties because usually this means that somebody's paying the mortgage, and somebody's paying the taxes, and somebody's paying the insurance, and somebody's paying the utilities to get this property that's empty, so there's holding cost to this property, and especially if the property has been sitting for many months, that's, that's a very costly endeavor for somebody to be sitting on an empty property. So those people are typically very motivated; they're not emotionally attached to their property, and they're much more willing to pull the trigger on a subject to, especially if it's been sitting on the market for six months or longer. And then, of course, fixer-upper properties; they may or may not be owner-occupied, does not matter, but any property that has no curb appeal that's for sale that's been sitting on the market forever, they're just—it's not going to sell, so you can definitely pitch those people your subject to opportunity.

The other way that you can do this is through advertising; this is the least favorite way for me; I typically don't do it this way. You can, if you'd like, but I just don't like working this way at all. And so what I've done in years past is I've liked to send out postcards, uh, to different people. So I, I'd use the USPS service to where you can actually send postcards to a specific zip code, so that everybody gets the postcard in their mailbox, and you get a really deep discount by doing it this way. So you could check that out on the USPS.com website, and it's called Every Door Direct Mail. And so basically you can literally take a specific ZIP code or a specific neighborhood and have your postcard delivered to all the people in that area. And you only want to target—like, I, I don't, I don't know how to say it, um, properly, because you don't want places that are really ghetto out, but you certainly don't want places that are like Beverly Hills either; you want to be middle class or working-middle class, so you choose those, those zip codes or those neighborhoods for that, and that, that's one of the offline, one of the most effective offline ways. And of course, I would have "We Buy Houses Fast" really big with my name, my website, and my phone number, and people will call. My least, least favorite way is by using newspapers; back in the day, I used to use the Penny Saver, American Classified; those are, those are ways that you can do it as well. However, in, in, in recent years, I like to use the MLS strategy, and there's a reason for that; it's because I use the real estate agent or the listing agent on the property as my compadre to be able to sell these, the subject to, to the seller of the property. I use them, and I make them earn their commission; since I'm paying their commission, I say, "Listen, the faster we could close this, the better I can actually get you your commission in like seven days, but you got to push this deal, and you got to sell it to the seller." I don't sell this, the deal to the seller; I only have to sell the deal to the real estate agent. And so the cool thing about this whole thing is that I only talk to the real estate agent; I never deal with the seller at all; the real estate agent deals with the seller and facilitates the whole thing, and that's how they earn their commission. So I don't want to be the one knocking on people's doors, trying to twist people's arms, or dealing with sellers that are just difficult to deal with, or, you know, flaky or on the fence and all that other stuff. And that's what you're dealing with when you're advertising that way; when you're getting leads, doing postcards, doing newspaper ads, all of those things, you are now connecting with the seller directly, and that could be difficult. If you want to be one of these people like me where you are facilitating the services of the listing agent on the property and having them communicate with the seller only, you don't have to, and they will be pushing your deal on your behalf because they want to get their commission, and they want to get paid, paid, and they know that this property's been sitting forever, and nobody's buying it; there's no activity, there's no offers, there's no nothing; they're definitely then going to want to push your deal because there's nothing else on the table, and they want to get paid; they got to eat too, right? So that's why I like to use the target method strategy better over getting leads the other way.

Now, if the market changes and you go from a buyer's market back to a seller's market, then you're going to have to advertise more, and you're going to have to do the postcards and the classifi and all that other stuff because it's going to be so difficult to find MLS target properties, um, because of the fact that they're simply not going to exist; nothing's going to last on the—I mean, things are going to be listed and they're going to be gone within seven days, so you're not going to have that level of motivation that you currently have right now in today's market, if that makes sense. So you always want to start searching the MLS first, always, because this is where your gold is; this is where you're going to find all the golden nuggets. And by the way, now is a really good time for me to mention that you want to be able to put in offers and deal with at least 10 properties, which means likely you'll be dealing with 10 different listing agents. Now you might have a listing agent that might have two or three of your 10 properties that you're looking at, which would be good fortune for you, but in many cases you're going to be dealing with 10 different listing agents for 10 different pieces of property. But for you to gain traction with this, it's a numbers game; most people just want to throw out one offer, and then they wonder why it doesn't come to fruition. You have to be willing to throw out 10 offers at any given time, and then if nothing happens for a week or two, throw at another 10 offers and another 10 offers; it's a numbers game. And the reason that this works so well is number one, you're not emotionally attached to any given property; it's just all business; there's no emotional attachment. And number two, there's something universal about the whole Law of Attraction thing; when you go out there and you're not, you're not so attached to any outcome on any given property, if that makes sense, like if you just simply just say, "I'm throwing all these offers out there; I don't even give a damn what happens; it's it would be nice to get a deal, but I'm just going to throw these offers out there, and if nothing happens, I'm going to throw another 10 out and another 10 out, and I'm gonna eventually get a deal." So if you have no emotional attachment and no interest—I mean, you have some interest, but not like, "Oh, I got to get one of these deals or else my life is just gonna end"—it can't be like that; it's gonna be like, "Well, if it works out, great; if it doesn't, great," right? There, there's going to be more properties to be had. So if you have that attitude, then you're gonna find that probably out your first 10 offers that you put out there, you're probably gonna have two really solid ones that come through for you because you have that attitude and that sense of feeling that whatever happens, happens, and that's a powerful place to be. You don't want to be desperate; your sellers will be desperate; you should not be desperate.

So why does the MLS strategy work the best, and why should you do that one first? It's the easiest way right now to find motivated sellers. Now this might be different three or four years from now if we change over from a buyer's market to a seller's market again, but for right now, today, this is the easiest way to find motivated sellers because you can actually see how long the property's been sitting there unsold. A property that's been sitting there unsold for many months is usually tied to a very motivated and/or impatient seller or owner; somebody who just is on the verge of throwing in the towel because they've just had enough. You could also see if the property is vacant based on the pictures in the listing. Now, mind you, you might argue, "Well, what if they, what if they actually decided to stage the property? What if the real estate agents stage the property?" Well, nine times out of 10, especially when you're dealing with your average middle-class or lower-middle-class house, the agent's not putting any money into staging a property; to stage a property costs thousands of dollars, and so many times real estate agents aren't going to take the time to stage a property unless it's your higher-end property, like a million-dollar property, $2 million property plus, then they're going to spend the money to stage a property. Now you could usually tell if a property is staged, unless it's a top-notch real estate agent who makes sure that the house is like spotless and clean; like when I sold my property in California, she staged part of my property, but she made sure that it was completely spotless when she had her professional photographer take pictures, and of course that's what you get when you deal with a multi-million-dollar property; you have a real estate agent who does those extra services, right? So you can usually tell if it's professionally done or not by what's in the rooms. And so, so for example, if you have rooms in the house that look like just somebody threw a chair in the corner and it's like a bigger-than-normal room and there's like just a glove seat and a couch and not really your normal like kind of living situation, you realize, "Oh, this property's probably been staged because it just has furniture that doesn't make sense, or it doesn't have like normal living furniture in there; it just looks like some kind of weird chair that nobody would ever sit in with a table next to it in some room that's too big for the stuff that they have in it." They can usually tell if it's been staged; most real estate agents, like 99.9% real estate agents, are not top agents, which means that they'll take pictures of anything; the lighting's poor; they just don't care; they're just trying—they think that being a real estate agent is a get-rich-quick scheme, and many of them are realizing that that's not the case because that it's not the case. So you could see based on the pictures whether it's been staged or not, and most people don't; most real estate agents are too lazy to stage an empty property; in fact, many of them think it's a benefit for people to see an empty property because somebody told them along the way, "Oh, well, if it's an empty property, people can visualize their own furniture in there," not realizing that most people are not creative enough to visualize anything in there, so they need, they need to see it—a dining table, they need to see dining room chairs, they need to be able to see curtains to be able to visualize what maybe their stuff might look like in there. But some real estate agents actually believe, "Oh, people just want to see a blank canvas so then they can, in their mind, fill in where they think that their furniture can go," not realizing many buyers don't have that kind of level of creativity. So, so please note that you know there's a lot of listings with vacant properties there, and those are the ones that I usually typically target; I want the vacant ones that have been sitting for months and months and months, and those are the ones that I usually target, kind of like a laser beam, like a shark—I'm, I'm just beining it there, and those are the ones that I'm focusing in on. And then my second best option are those that need a lot of work; they lack curb appeal, and they've been sitting on the market for a long time; those are also highly motivated sellers as well, but they're not my top choice; they're not my number one.

You're probably wondering, why is this the easiest way to start seeking out deals? Well, the answer is you got to think in terms of the psychology behind somebody who has been dealing with situations such as these, like, for example, sitting on a property that's been sitting on the market for months and months and months unsold with little or no activity and no offers. Okay, what is the person going through at that point? Well, they're on pins and needles; they're stressed out; they're wondering, "Are, is anybody gonna buy my property?" And of course, at this, this, this particular point, the seller is getting antsy; they're getting concerned; they might be financially getting concerned; the listing agent's very unhappy because they're not getting paid; they're not getting a commission; they're not selling the property. It's even better if the property's been under contract, contract a couple times and fell out of escrow a couple times; that's even better because you realize that when the seller is dealing with the situation where it's fallen out of escrow a couple times, they're starting to think that maybe financing is getting harder for people to come by, and it really actually is; it's harder to get people qualified for loans; it's harder for people to actually, um, get a mortgage these days because the lending requirements have gotten so strict because I honestly think that a lot of these banks are starting to see what's going to be happening in the months to come when it comes to the credit collapse or the credit bubble bursting, so they're trying to mitigate their potential loss, and they've gotten very, very strict with lending right now. So a lot of properties that are under contract are falling out, and so people are starting to realize, "Is anybody even qualifying for a mortgage? And what if nobody qualifies? Am I ever going to sell this property?" So this is the kind of stuff that they're thinking about if the property's been under contract one or two times or more and it's fallen out of escrow.

So when you ask the listing agent, um, during scenarios—my perfect target scenarios—you want to ask whether the seller might be interested in what we call a creative financing deal. You don't talk about subject to quite yet; you don't talk about the strategy that you're using at this point; you just simply mention that you know you want to do a creative financing deal; "What do you think the seller might think about that?" But the most important part though is that you have, have to mention that you will be guaranteeing their commission on the deal; very, very important; that's the most important part of this; you might even want to include it in the same sentence, like say, say this: you want to say on the phone, talking to the listing agent, "Hey, I'm interested in this property; you know, of course you build some kind of rapport first; you don't just start blurting out what you want, but you said you basically say, 'I'm interested in this property; do you think I, I, I know that this property has been sitting on the market for seven months unsold; do you think the property owner or the seller would be interested in a creative financing deal?' Please note that I'm going to guarantee that you get your commission; what do you think that they would say if I broached a creative financing deal?" And the very moment that you mention that you will be guaranteeing their commission, they're going to be all ears. Okay, everybody's got to eat, right? They're going to be all ears, so they might scoff at the idea, "Well, what do you mean by creative financing?" And that's when you say, "I'd like to do a subject to," and if they went through real estate school, which they all had to, to get their license, subject to is actually talked about quite extensively in most curriculums when it comes to people becoming real estate agents, so they would be aware of what subject to is; they should be anyway. So when you basically lay out what you're going to be doing as far as the offer goes, then the real estate agent is then going to come go back to the seller and go, "Listen, I have, we have an offer; we have an offer, but it's not your conventional offer," and they're going to push your deal for you, on your behalf, because you're paying the commission, and they want it; they want to eat; they want to get paid.

All right, so right now what I'd like to see your homework be is to look on the online MLS; you can go to Zillow, you can go to Trulia, you can go to Realtor.com; it does not matter, but you want to specifically look for properties that have been sitting unsold on the market for 60 days or longer; the longer the better; they may or may not need a little or a lot of work, but those are your better target properties, and the ideal ones are empty or non-owner occupied. All right, but mostly they're empty; those are the target, those are the target properties that you want to look for, and then you want to make a list of all the listing agents, including all of the property addresses, including the phone numbers of the listing agents, because you're going to then take the time to call them up on the phone. Yes, this is where the rubber meets the road. Okay, you are going to call them up, and you're going to say this; you're going to find—let's, let's first talk about, let's first talk about the mechanics of exactly what we're looking for, then I'm going to give you a mini-script; this is, this is what I'm excited about because you're going to actually get a mini-script. What you want to do is start reaching out to these listing agents, and again you want to find those listings that have been sitting for months; you want to target homes that are empty, and then you want to pick up the phone, and you're going to be calling each listing agent on each subject target property. If you are local, you want to see the property in person with them obviously present; if you aren't local or you'd rather not take the time to

See the property you're going to need to pitch them over the phone. Okay, and so here's what the pitch is. Ready for this? This is the most important part of all this because you're going to be talking to these listing agents directly on the phone or in person when you're on-site on the property, and you're going to be utilizing this pitch. You're going to say, "I noticed that this house has been sitting on the market for [Fill in the blank] days, and that it's empty, if that applies. Do you think the seller would be interested in creative financing?"

And before they are even able to answer the question, you say, "Especially since I will personally guarantee your commission when the deal goes through." You want to make sure that you get that in before they have a chance to answer whether or not they think the seller would be interested in creative financing. Now, why are we doing it this way? Because most times they will shut you down on the creative financing aspect of it, like right away. The you say, "Do you think the seller would be interested in creative financing?" And if there's a space or a gap in time, they're going to probably say no or I doubt it. But if you don't even give them a chance to answer, as you're continuing to talk about how they're going to get their commission, then they will be very interested to know what creative financing you're talking about.

And so the very question that they're going to ask after that is, "What? What do you mean by creative financing? Exactly what? What do you have in mind for that?" And then you tell them, "This is going to be a subject to property deal. I'm going to essentially take over their existing mortgage. I'm going to pay them to move out, if of course that applies. I'm going to give them a little bit of money up front, including making sure all their mortgage payments are caught up, if that applies. And I'm essentially going to be taking over their mortgage, and they will be able to essentially sell their property, getting a little bit of money up front, and they'll be able to save their pre-foreclosure if they're in pre-foreclosure, or they'll be able to actually sell their property otherwise. The alternative is that they can continue moving on and going on as business as usual if they're in pre-foreclosure."

Especially, especially, especially this is the time to really hit hard as far as that goes. You can look up in many County Courthouse info online; especially, you can even get pre-foreclosure lists of properties that are in pre-foreclosure. This is amazing to be able to go out after those properties as well, because when you go after pre-foreclosure properties, then they're highly motivated to do this because they know that you will be catching them up on their prior behind mortgage payments with this deal. So to be clear, the reason that they're going to make out is because all of their arrears of their fore- their pre-foreclosure payments—that's going to be brought up to speed to date. Any arrears they're in with their tax payments, that's going to be all brought up to date, and then you'll even give them a little bit of money too—$5,000 to $10,000 to move as well. Remember, you're going to be getting unsecured business credit card or utilizing one of the many resources that I have to be able to get this unsecured cash to be able to get people out. So powerful thing that you understand that this, this is the script that's going to be your million-dollar script. You want to use this script because this is your million-dollar script.

So as much information that you can get about the property in advance—ideally, if you can find out if the property is in pre-foreclosure by simply looking it up through County records before you contact the listing agent—then you have an extra bargaining chip. So this is why I like to really focus on those that are in pre-foreclosure because there's not a lot of thought process behind somebody wanting to do a deal like this because it's literally a win-win-win for them. Of course, who wouldn't want to not be in foreclosure? Of course, who would want to have somebody help them catch them up on their mortgage payments and their back tax payments? Like, who wouldn't want that, right? So that's why those are the easiest houses and the easiest properties to go after.

So at this point, the real estate agent is going to likely be curious; they're going to ask you a bunch of questions about what you and your intent is, maybe what the property—you don't have to answer that question. You don't have to say you're going to be doing a specific kind of property deal, a specific kind of real estate investing strategy. You don't have to explain to them what you plan on doing with the house afterwards, but you can if you really want to. You don't have to. They're likely going to want to know mostly about what the creative financing terms and conditions are for the subject to strategy that you have, and just state that you're trying to buy houses in the area for your real estate investing company and you're creating a win-win situation for the seller who's clearly not selling his or her property and maybe in arrears with their taxes and their mortgage payments.

So you want to make sure that you mention at least twice in the conversation that you're going to guarantee that they get the commission if they help you facilitate this creative financing deal, period. Most important part of this because they're not going to be on board with this, and they're certainly not going to want to sell your deal if they know that they're not going to get paid because obviously it has to go through the whole traditional sale route using escrow and all of that good stuff for them to actually get paid their commission through the seller in many cases. So the subject to disallows them from getting that commission, so you want to guarantee that they get their commission, and that, my friend, is in my opinion the most powerful and profitable way to be able to get properties, houses mostly, with very little cash. And by the way, that little cash does not have to be yours; it can be borrowed unsecured business credit and absolutely none of your own credit.

So I love this strategy, especially in a very soft real estate market or a market that there's an abundance of properties and prop—properties that are just simply sitting there for months and months and not selling, and especially if you plan on using what I call my 10x transitional community housing sober living strategy where you can get these houses and get anywhere from $3,000 to $5,000 per month in net profits for a four-bedroom, two-bath house. It's like the most surreal strategy on the planet. So if you want to know more details about exactly how this subject to and this transitional community housing strategy works, go into the description box below because I have more information about exactly how this whole thing works. You can join me on one of my many trainings. So if you found that this was helpful, give me a nice thumbs up as well as consider subscribing to my channel. It helps me out a lot. This is Mon M signing off, and I will see you in the next video.