Epic Real Estate Investing - I've Got a Deal Under Contract, Now What? | Episode 123

Episode Date: October 6, 2014

If you have a real deal under contract, but are stuck with the next step, let us first congratulate you.  First, congratulations for moving at the speed of instruction.  Second, congratulations because the hard part is over!   On today’s episode, Matt is breaking down exactly what to do to get your property sold.  Enjoy! -------- The free course is getting a facelift and the new version will be released soon!  To access to the two fastest and easiest strategies to a paycheck in real estate, go to FreeRealEstateInvestingCourse.com or text “FreeCourse” to 55678. What interests you most?   E ducation P roperties I ncome C oaching Learn more about your ad choices. Visit megaphone.fm/adchoices

Broadcasting from Terrio Studios in Glendale, California, it's time for Epic Real Estate Investing with Matt Terrio. Yeah. Hello. Hello. And welcome. Welcome to you. Welcome to another episode of Epic Real Estate Investing. And if this is your first time here, if this is your first time listening to the show, welcome.

Glad that you found us. Glad that you're here. If this is not your first time, welcome back. this is the place where I teach people how to escape the rat race by investing in real estate. And if I were to do this all over again, if I had to get started all over again, I'd do it exactly the same way. And I do it exactly the same way whether I had money and credit to work with or not. You see, while I was getting started, I kind of discovered these 12 different strategies of investing in real estate with little to no money. Because at the time, I didn't really have a choice.

I had to get started that way because I didn't have the money and the credit was just, it was probably even worse than the money, actually. And in hindsight, I think by being forced to get started that way, that made me a better investor. And I want to make you a better investor as well. So what I did is I put the first two strategies, the two of which I believe are the easiest and fastest strategies to a paycheck using no money or credit. I've put them into a free course just for you. And you can access that free course at free real estate investing course.com. And by the time you are listening to this, that brand new free real estate investing course should be up and running and posted.

If not, within 24 to 48 hours of this podcast episode's release. Okay, so I've been working very hard on that, and it's all brand spanking new. So if you've already gone through the course, you might want to go through it again, just a little hint at free real estate investing course. And if you're listening via your smartphone, I've got something new for you. You can download the course right there on your phone by texting free course to 55678. I guess it's not new anymore. I can stop saying new.

Just text free course. That's all one word. Text that to 55678. And you have the course right there on your phone. All righty. Just a couple weeks away from our next Grub and Grow Rich event. I think we got a dozen or so people signed up. So I'm looking forward to meeting you.

and that is scheduled for Friday, October 17th in Atlanta, Georgia. And you can get the details for that event and reserve your spot at grub and grow rich.com. Oh, and I just finished a new book, Epic Freedom, and that's available on Amazon.com. You can go there and pick it up. But everyone in the attendance of the Grub and Grow Rich event, you will be receiving a free copy. I'm bringing gifts with me, and you'll get a free copy of my new book. and there's another reason to meet me and my team in Atlanta on Friday, October 17th. Go to Grub and Grow Rich.com for all the details and reserve your seat.

Okay, doke. So, you know, just before I sat down to record this episode, I happened to walk over to the office next door to Fernando's office. He's the director of operations over at Cashflow Savvy. And he's been helping me quite a bit also with the Epic Pro. Academy lately and and I'd asked him what is the most common question you've been getting from our clients and prospective clients and you know without much hesitation he gave me two right out right away so basically what I did is I just kind of scrapped what I had had planned for today and I'll just do that next week I guess and I'll answer the two most common questions that Fernando hears on a daily

basis. And question number one, it says, or the most common question or question number one that came out of his mouth. The first was, I've got my first deal under contract. Now what do I do? And that was it. And I was like, that's not what I was expecting, but okay. And I thought about it. And I said, I guess that makes sense. And I'm actually happy that that is a common question, as it means you are moving at the speed of instruction. And it means you are moving forward with faith that it is indeed easier to find the money for your deals once you have the deal. It means you're listening, which fires me up to help you even more. So great question.

And that question being, I've got my first deal under contract. Now what do I do? So the good news is, I've got great news for you, the hard part is done. Okay? Finding deals is the hardest part of this business. And it's not necessarily difficult getting properties under contract, but getting deals under contract. The operative word being deals, that's the hard part.

If you do indeed have a deal under contract, the rest is easy. It's simple, it's easy, it's cake, simple. And take comfort in knowing that you now have total control over the deal. You've got total control. now and and you have total control over your outcome, over your result. You are just in massive control. How does that feel?

You are in control of how much money you're going to make. And your destiny, it just, it simply lies within your hands once you have that deal under contract. And here's how. By the way, you might want to get a pen and paper for today's episode. You might want to keep that handy. I'm going to be sharing a lot of steps. I'm going to be sharing a lot of resources and domain names to maximize.

the efficiency of you making money off your deals. Not only maximizing the efficiency, but maximizing the assurity of clothes, meaning the assurance that you are actually going to make money off the deal. Not only be more efficient, but increase the likelihood of that happening. All right. So get your pen and paper, blah, blah, blah. I'm wasting time, wasting time, giving you a second. Okay, that's it.

We're getting started. White paper blue ink, by the way. Blue ink increases your memory retention by 40%. Very wise person. once told me that. All right, so white paper, blue, ink. Got it ready? So first, when you put a property under contract, know that the seller cannot entertain any other offers unless you fail to fulfill your obligations under the contract. Got it? This is one of the big reasons why you want to get the property under contract. Know that the seller, they can't look at any other offers. They can't even

really talk to other buyers. They can't entertain any other offers unless you fail. Okay? Now the ball's in your court. It's up to you to fulfill your obligations under the contract. And as long as you do, they cannot sell this property anyone else. So basically in layman's terms, you've locked out your competition from this deal. By the nature of you having the property under contract, you've locked out your competition. Now, me, just nobody can swoop in and steal from you. So just relax. Okay, you got under contract. Now relax and take your time with the rest of the process. It's not a big rush part of this, uh, this process anymore. Okay. So now you can take your time and rest and just kind of fulfill your obligations. But let me clarify, feel free to rest,

but, but, but and take the time that you've been given per the terms of your contract for the rest of the process. Okay. So there will be a defined amount of terms of how long you have to act, But it's not, I got to move ASAP, SAP, SAP, in a frantic, scared, fearful mode of someone coming in and taking the deal from you. Okay, the deal is yours. So that's the first thing. Second, you put a property under contract, okay? You, when that happens, you are granted certain rights to the property.

And you'll commonly hear these rights referred to as equitable rights or perhaps equitable interest. those two terms, they seem to be used interchangeably. The differences is really negligible and not really applicable per this discussion. Basically, these aren't legal rights, but they are rights per the contract to do two fundamental things. One, you have the right to inspect the property, and two, you have the right to market the property. If the seller should object and you performing any one of those two things exercising any one of those two rights, then you just don't buy the property. It's their problem, okay?

Not your problem. It's their problem. Very simple. But not once in over 500 transactions. I've been saying 500 for a couple, over a year now. I'm sure it's more than that. But over 500 transactions, I've never, ever experienced any objection from the seller in me exercising those two specific equitable rights.

Nor have I ever heard of an instance where a seller objected after a property was under contract. I mean, they may object before, and that might be part of the negotiation, but after you're in contract, A, you're good, okay? You're good because per the signature, they have made it known that

they want to sell the property to you, and they're willing to cooperate. That's what their kind of their signature implies. So after you have it under contract, and assuming you're not going to keep it, because if you plan on holding it, then you simply just get your physical inspection done and then arrange to pay for it per the terms that you negotiated within the agreement.

That's pretty simple. I'm assuming this is not where people are getting stuck, though. I mean, they're not getting stuck if holding the property is their intention. You're not getting stuck here because the contract tells you exactly what there is left to do to close the transaction. So you don't need me to tell you to do that. The contract tells you to do that. So what I'm going to do is I'm going to assume that you're going, or excuse me,

you're not going to keep it, that you want to sell it. And I'm guessing that you probably want to make some money with this deal. without using any of your own money. Okay, so that's the assumption here. First thing, start marketing the property. Do that right away. As soon as you get that property under contract, start marketing it. Like, perhaps the first thing you do once you've got the property under contract

is take a bunch of pictures of the property. If you haven't already, take a bunch of pictures and rush back to your office or rush back to your home, wherever your computer is, and, I mean, maybe even have an iPad and you can do this in the field. And what you do want to do is you want to post the property for sale on the internet. Now, there's some places you want to go and make this happen. First place, Craigslist. Got to go to craigslist.org and post the property for sale.

Okay. Then what you want to do is the second place you want to go to is post your property for sale on a website called postlitz.com. P-O-S-T-L-E-T-S dot com. This is a Zillow company. It's part of the Zillow family. And with that one click, by posting your property for sale over at Postlets, you can syndicate your property to over 20 very popular websites, websites like Hotpads, Yahoo! H-D-T-Vs real estate website, MSN real estate, and a bunch of others.

Over 20, very popular websites with just one click. So go to postlets.com and post your property there. Then the next place you want to go to is sellpoint.com, s-e-l-l-l-p-o-in-tttcom, and post your property for sale there. And with that one click, you can blast your property to 40 more sites. So there's some overlap there, but there are a lot of additional websites that sell point handles in addition to, in addition, in addition, kind of redundant. but there's additional websites there that sell point handles that postlets doesn't and vice versa, but there is some overlap. And, you know, with that, with those two clicks, you get massive coverage.

And like I said, there's some overlap there. But to take advantage of that overlap, use a different ad on postlets than you did on cell point or vice versa. Use two different ads. And those overlaps, then it'll kind of show up as two different ads. So you want to do that. And then the next place you want to go to is backpage.com and post your property for sale there. Back page. B-A-C-K-P-A-G-E.com, just like it sounds.

So with those four websites, you're going to create some massive, massive exposure for your deal. Okay. And then every day or maybe every other day or so could be the first things you do in the morning. Repeat the process until you find a buyer. Okay? Just get up and do that every single day until you find a buyer. If you truly have a deal, you're almost assured to find a buyer this way. And you're probably going to find that buyer really, really quickly.

So those there are just, and the reason I say that is, and I can say that with such confidence, there are just too many people online searching for property, hoping that someone like you who went out there and got their hands dirty and dealt directly with the seller finds a deal to sell them because they're too lazy to do it. okay so there are just too many people out there that are looking for deals i mean the most recent statistic says that 90% that's pretty much 100% okay 90% of all property searches begin online so if you're not online you are invisible to 90% of the buyers looking for your deal you've got to massively expose your property online that's the market these days okay so

is it really a simple amount is posting your your property on a few websites? Yes. Okay, that's where all the buyers are. And you can also leverage this practice to build a massive buyers list as well. And you do that by placing your ad. When you place your ad, placing in your ad, you want to place a call to action of which will drive buyers to your landing page or your squeeze page. You want to write something to the effect in your ad. you know, you're advertising 1, 2, 3 Main Street, the deal you just got under contract.

And at the end of the ad, you're going to say, get all the details of this property, as well as many more properties at my real estate website.com, whatever your domain name is. Okay. Put that call to action in there. And what you'll be doing is, one, you'll be effectively marketing your property, because that's where all the buyers are. And two, you'll be building a buyers list. And by the way, if you don't have a land.

landing page or a squeeze page, get one, okay, or two, or three, or four. I mean, there's an abundance of services out there that provide real estate investor specific landing pages and squeeze pages. So there's no need to do this yourself. No need to know how to build one yourself. No need to know how the internet works. You don't need to know didly about websites. If you're not so technologically inclined, I created a service just for you.

You can go to Epic Real Estate Websites.com, Epic Real Estate Websites.com. And really, with just a few clicks, you'll be up and running. Okay, you'll be done in minutes. So regardless, whether you use my service or someone else's, I'm begging you. Just don't do it yourself. Your time is better spent elsewhere. It's better spent like buying and selling real estate. You know, web designers don't make nearly as much money as real estate investors do.

So if you're spending your time designing your website, that means you're getting paid the same rate as a web designer. You're doing that work for, I don't know, five bucks an hour, 10 bucks an hour, 15, 20 bucks an hour. Even if you got 100 bucks an hour, that's not anywhere close to what you're going to make as a real estate investor. Okay, so don't try to become a web designer by, you know, by thinking that you're going to be saving some money and, you know, you're just making your own website so you're saving some money. Don't do it. It's a trap. It's a deep, deep, deep rabbit hole. It's a very slippery slope.

And ask me how I know. How do I know this? How can I speak about this with such conviction? Yes, I've been there. I've done that. Building a web presence, let alone just a simple website, is one of the bigger times dealers that you'll find. I don't do any of that anymore. I hire it all out.

And I get it for a very, very low hourly rate on like E-Lance or O-Disc, where you can find virtual website or virtual assistance. But there's a lot of services that's just, it's a point-and-click service now. So you've been warned. Just don't do it. Whether you go to Epic Real Estate Websites.com for your landing pages or some other company, just don't do it yourself, okay? That's not the best use of your time.

It's not even good use of your time. Got it? All right. It's not good use of your time. building it, but it will be invaluable to your business in having it. There's the distinction. So get one or two or three. They will help you sell your deals and they will help you build your buyers list.

All right? Just combine your landing pages with widely dispersed ads in the way that I just shared with you and you will have created one of the more powerful systems in your business. It'll be automated. You'll have an automated selling machine and an automated list building machine, a buyer's list building machine. Okay, so that's first. Second thing, take a variation of your ad and blast it out to your database, your network, your existing buyers list.

And as always, if you don't have your own buyers list, you're welcome to borrow mine. That's at epic wholesalers.com, and perhaps we can sell it for you if the property fits our criteria. But make sure that you send it out to your network, your database, your existing buyers list. This activity also has a dual purpose. First, someone on your email list just might buy the property, which is our primary goal, right, to sell the property, to find a buyer. So that might happen. That is definitely the primary purpose and that is one of the goals that you might accomplish with this practice. The second thing is it displays to your network that you are in the game.

Okay? It builds credibility and it builds your reputation in a good way. If you do this in a good way. You know, these are two things of which cannot be underestimated when it comes to your longevity as a real estate investor. So with that in mind, don't send out crap, okay? Think about what you're sending out. Be honest and ethical in your promotions, whether on the internet or via email. I mean, if you actually have a deal, you won't have to embellish or use sales tactics or use any sort of weird gimmicks or tricks to try and help sell the property.

Never lose sight that your promotions are an extension of you. They are a representation of you. So represent your deals in the way that you want to be known by your network. Represent your deals in the way that you would want to be represented because they are you. Got it? Especially with your network. No, especially with everybody. Anyone that's going to see your promotion and that's a representation of you.

This practice that has long-term ramifications, whether you represent yourself well or you represent yourself poorly. the effects are long lasting. So be a straight shooter and represent good deals and represent them with integrity. All right? So that's the second thing. Blast out to your network. The third thing to do after you get a property under the contract

is to take the most compelling photos that you have and maybe it's just one. Could be one, it could be multiple. And the most compelling copy that you have, the copy that you used within your internet ads, your email ads, and make an absolute killer, an absolute killer marketing flyer.

And when I say killer, I'm suggesting it, well, I'm not suggesting it has to be super fancy. It doesn't have to be super high quality. What I mean by, I mean, simply just running a bunch of copies off on your home computer, that should be enough in most cases. That's not what I'm talking about when I say killer flyer.

When I say killer flyer, I mean, use a good pick, come up with five amazing bullet points that let your buyer know what's in it for them. That's your focus. The flyer has to focus. Actually, all of your ads have to focus on what's in it for the buyer. Focus on the money. That's a big hint.

That's a clue. No, that's what you should do. Focus on the money. Make it a no-brainer for your buyers to see how they are going to profit off of your deal, whether they're going to profit off the deal as a flip, whether they get to rehort, wholesale it or whether they're going to hold on to it and generate a nice ROI off the cash flow that the property generates. Okay.

So focus on the money. Make it a no-brainer for them to. Oh, okay, I get it. Let me buy it for this. I'll sell it for that and this is how much I'm going to make. Make it really simple for them that way. And then at the very bottom of that flyer put a call to action. Okay, just like your internet ads.

And that call to action could be to your landing page because you can build your online presence offline as well, and or it could be to a phone number. And you can send that to your cell number or you can send that to one of those lead capturing numbers. I use call8.com to capture all my callers information. It's K-L-L-8, the number eight.com, call8.com. And put the call to action. So they're going to send them to your landing page and or send them to a phone number.

And then if you don't have the schedules of all the REI meetings, the real estate investor meetings that that happen in your area go to google and look them up shame on you if you don't have this already but if you don't go to google type in ria meetings riaiaa meetings then like follow that with your city or go to meetup.com and search form there just look for anywhere that you can find where people get together to discuss real estate and mark all of those upcoming dates on your calendar they should be on your calendar already that should be a normal practice for you but mark all the upcoming dates on your calendar and make it a point to be there. Okay?

It's one thing to put on your calendar. It's another thing to actually get there. And you want to get there to represent your deal. Take your flyers with you. And when the time is appropriate and they typically always have an appropriate time where they have needs or wants where everyone can stand up in front of the room and represent what they're looking for or what they have to represent. And that time is appropriate. Stand in front of the room and share your details with all of the attendees.

share your deal with the attendees. All righty. So those are the first three things to do. Take advantage of your equitable right to market the property and get that started immediately. And don't let up on it. Keep it going. Do it every single day, every other day at the very, very least. All right?

Now, you have a decision to make here. The next thing. Do you just sit around and wait for an email to come through? Or do you wait for the phone to ring because of all the marketing you've done? or do you take it a step further, do you schedule a physical inspection of the property? You know, as another one of your equitable rights is to investigate the property, right, to conduct your due diligence. Some people, in fact, many people, don't see the advantage of doing this.

For those people, I believe that they're leaving money on the table. Maybe not in every deal, but over time, I think they're leaving a good portion of money on the table, especially if they're, you know, they're, they're, they're, they're, they think they don't need to do this because their sole intention is to just sell the property immediately to someone else or assign the contract to someone else. Most people don't want to do the extra work. But like I said, I think they're leaving some money on the table. But it takes a little bit of money to make that money. And so what I like about investing a few hundred bucks into the deal and getting a physical inspection,

which would be the next step to get a physical inspection, you know, it'll typically give me something, something that's discovered in the physical inspection. I'm going to find something to go back to the seller of which I am justified in asking for a price reduction, an additional discount. And most of the time, you will get a price reduction, especially if you have, just imagine this. You've got this formal physical inspection report that was performed by a licensed inspector that details all the potential liabilities with the property. It shows what needs to be fixed. It's probably going to reveal some stuff about that property that the seller themselves didn't even know. So it's going to justify a price reduction, but it's also going to show the seller like, well, gosh, I didn't know that was wrong with the property. I really don't want this property back.

Will you please take this problem off of my hands? It does both of those things in. And so aside from the obvious of getting the property cheaper and increasing your profit, there are some additional benefits to taking this extra step. One, yes, you increase your profit. You get the property for a lesser amount that is built into your profit most of the time. Two, it increases the speed of which you will find a buyer. It increases the speed because if you get the price reduction, the property's cheaper. It appears as a better deal on all of your marketing and your advertising.

So you sell it quicker. Go for the fast money. I mean, if your business is wholesaling, that's the name of the game. It's speed. You got to over and over and over. You got to move quickly. Okay? You want to run through your inventory quickly.

You want to close those deals as fast as you can. Number three, what it does is it reduces the liability for either you and or your buyer. Okay? If you find some things wrong and you showed that you demonstrated a certain amount of due diligence and you actually took a couple extra steps to invest. the property, then what it shows is that, you know, you're covering your ass, so to speak. Okay. And you're also protecting the buyer because you're going to be able to disclose that information to the buyer as well.

And four, what that does is it establishes your credibility and your reputation, and it does that with your network and with your buyers. You know, investing a few hundred bucks, it's going to often produce a price reduction far greater than what the inspection costs are. not always, but that will average out over time to be worth it. Okay, absolutely will. It'll also enable you to disclose more about the deal to your end buyer, not only bolstering your credibility, but empowering you to sleep better at night, knowing you're doing right by people while you're making a profit, rather than just making a profit at any cost. Okay? Sometimes spending that extra money, I'm not even going to say sometimes. I'm going to say most of the time spending that extra money will result in a greater profit for you.

It might not feel like it. It might be a step. You might have a slam dunk deal that you don't want to take that extra step, but over time that practice will consistently average out at the end of the year to be more money in your pocket. Okay. So that's what's next after you get a property in a contract. Okay?

You want to start marketing the property right away and you have the option to whether you want to conduct any further due diligence on the property and go ask for an additional discount. Now, from that, you have two possible outcomes. either you find a buyer or you don't. Very simple, right? Either you find a buyer or you don't. If you don't, then you just go back to the seller and explain that, I'm sorry, the market is not justifying the price that we came up with.

Remember, it's not you versus the seller. It's you and the seller versus the market. If no one is buying that property, there's a reason why. It's not worth what you're asking for it. So you have to explain to the seller that the market is not justifying the price that we decided on. And from there, you ask for a price reduction and an extension. Ask for a price reduction and an extension to help them find a buyer for the property. You know, most of the time you're going to get one or the other.

Frequently, you'll get both. You'll get a price reduction and an extension. If they don't want to give you a price reduction, if they don't want to give you an extension, cancel the contract and go find another deal. Very simple. You've lost nothing. You've lost some time,

but you've gained some invaluable experience, and at least you were up at the plate. You had a chance at bat. Okay? Not every one of them is going to work. So don't get frustrated if one every once in a while falls out. Or maybe even you go through a slump and a few fall out in a road. That's this business.

That's what you signed up for. Okay? It's not 100% clothing ratio. You've got to take it all the way from A to Z. Sometimes you just get to L, M, N, O, or P. And then you've got to stop and go back to A again with another deal. All right? So cancel the contract.

Wash your hands of the thing. It's their problem, not yours. Okay? It's their problem, not yours. And you go find another deal. So that's, if you don't find a buyer, ask for the price rate. reduction, ask for the extension. Maybe you'll get one or the other, which will enable you to find a buyer.

Maybe you'll get both, which will enable you to find a buyer. Or maybe that doesn't work either and you still don't find a buyer. Let us repeat the process. Just keep doing it and explain to them that the market doesn't think their house is worth what the seller thinks it's worth. Okay? Very simple. Don't make that all complicated.

Very simple. All right. Now, the second scenario or the second possible outcome is you do find a buyer, which is more likely to happen if you indeed have a deal. You have a decision now to make on how you close that deal. Okay. So if you do have a deal, you will find a buyer. You just really will.

That's more likely to be your outcome, but not always, but more likely. Okay. So you have three options of how you're going to close the deal. One, you do a double close or a double escrow, and this is basically where your buyer comes in and funds the deal. deal. So you have a contract with a seller. That's the A to B, the seller being A, you being B in that transaction, A to B transaction, then you have a second contract with your new buyer. That you're still B, that never changes, and your new buyer is C. So there's your B to C transaction. Now with the double

close or double escrow, you can take both of those contracts, your contract with a seller and your second contract with the buyer, you take both of those contracts and you hand them into your escrow officer or your title agent or your attorney, your closing agent, it's going to be a little different in every state. So hopefully you know that much. If you don't, ask at your next rea meeting on how they close escrow in your area, how they conduct this actual transaction. And you're going to inform or advise your closing agent that the C buyer is coming in

with the money for this deal. Take that money, please, and give that to the A seller and give me what's left over. So if you have that property in a contract for $100,000, you found your buyer for $110,000 and form the closing agent that that $10,000 extra is mine. So go ahead and process this paperwork and send my check here or call me when it's ready. Okay, so that's how the double close or the double escrow works. And that's exactly how it works. I simplified it on purpose because there's nothing to be afraid of.

It's that simple. Number two, your second option, is assignment of contract. Now, this is where you take your A to B contract, your A to B contract, your A, Your contract, A, is still the seller. B is you. And what you do is you assign that contract to the buyer. So now the buyer is B. Now that contract is then turned into the closing agent with an additional document

called an assignment of contract. That's an additional agreement between you and your buyer of how much you were going to get paid off of that deal, of how much of their proceeds are going to go to. you. And again, you give it to the closing agent and you advise them, here's the instructions. Here's the purchase agreement. Here's the assignment of contract. Please send my check here or call me when it's ready. I'll come and get it. So that's number two, the assignment of contract. The third option, and by the way, let me talk about those two things a little bit. The double close and the double escrow, it's getting a little bit more difficult to do. So a lot of you probably

already shaking your head and you realize this. You will even hear that it is against the law, which just gets under my skin because it absolutely is not against the law. The next time someone says it's against the law, ask them, great. Wow. Gosh, I'd probably be going to jail here pretty soon because I've done about 20 of these in the last six months. Now, ask them, okay, can you show me the civil code? Because I certainly don't want to do anything illegal here. No one can ever produce a civil code.

It's not against the law. However, it is increasingly more in violation. of company policy, an internal policy within the closing company that you're using. Okay? So that is becoming more and more common. The fallout of the economic crisis back in 2007, it's far reaching. And this is one of those things where now just different companies are skittish about this practice. Unfortunately, there's a bunch of people that came before us and weren't honest with it.

But it's the way it's always been done. Okay. And it's still being done today. It's just a little bit more difficult to find companies that will comply with your request. Okay? But it's still doable and it is not against the law. So don't let anyone scare you out of that because you think you're going to go to real estate jail. Okay?

You're not. All right. But the good news is you have options. So the second option is the assignment of contract. Now the assignment of contract is still a widely accepted practice. However, it is becoming a little bit more. I don't know. We are actually here in the office.

We're experiencing some head scratching or some nose turnings up when we present that type of scenario. We're getting a little bit more resistance, but it's still widely accepted and it's still our primary practice now. The assignment of contract. Now, the third option, which no one can argue with, is transactional funding. And what that is is where you have a transactional funder. It's a fourth party to the transaction who's going to come in with the money. and pay that A to B transaction to where you will now own the property. Okay, and that's a very short-term loan.

It could be 24, 48 hours. It might even just be an hour long. Then that C-buyer is going to come in and pay you for the property. So now you're going to transfer the property to your C-buyer. Then you're going to take those proceeds and repay your transactional funder. You're going to pay back the transactional funder the amount that they paid for the property plus their fees, and then you get to keep what's left over. Okay.

So that's how the transactional funding process works. And if you need a transactional funder, just go type in transactional funding into Google and you'll find about 100 pages full of transactional funding services. All right. Most transactional funders like to work locally. So keep that in mind and look for a local business. All right? Not always, but that's just kind of rule of thumb.

So those are your three options. You can do the double escrow or the double close. You can do the assignment of contract or you can do the transactional. funding. All righty. And that's how you do it. That's what there is left to do. That's what there is to do once you get a deal under contract.

Now, let's see. We're over a half hour now. I'm all out of time to answer the second question that Fernando gave me. So I'll do that next week. Okay, I promise. And, you know, it's really that simple. Just keep in mind once you've got the property under contract, it's downhill from there in a good way.

It's less resistance. It's easier. The hard part is done. Congratulations if you've got a deal under contract. Now what there's left to do is very, very simple. And if you actually did get a deal under contract, the rest, it's a breeze. It'll be no sweat. So nothing to fear there.

And I just laid out for you step by step. Okay. All righty. So that's it for today. I'll see you Thursday for another episode of Third Degree Thursday. And that's it. I'm Matt Terrio, living the dream. You've been listening to Epic Real Estate Investing, the world's foremost authority on separating the facts.

from the BS in real estate investing education. If you enjoyed this show, please take a minute to visit iTunes and share your thoughts. Thanks for listening. We'll see you next time here at Epic Real Estate Investing with Matt Terrio. This podcast is a part of the C-suite Radio Network.

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