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Realtor Deal feed back From event

godlogl

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Jun 19, 2008
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Update from the offers placed by Glen Godlonton at Ron LeGrand Seminar all offer on Calgary Properties





1) Cannock road assessed Value 455,000 asking 449,900 Mortgage 415,000, Realtor owner, 2 Illegal Suites just shut down by city, seller wants 35K down min, Interest rate at 5.9% way over priced,, Owner is asking to much no deal to be had here.

2) Windsor Park.. Assessed value 237,000 asking 189,900 Mortgage 162,566 , Will not do agreement for sale, wants his cash out,, Is now pending as of today.

3) Dover Assessed Value is 190,000, asking 129,000 We Offered 80K as a Junker,, has had a couple offers in around 120ish currently will not take less,, Will continue to watch it ,, has been on 68 days this could be a good rehab then lease to own if anyone is interested !

4) Parkland.. Assessed at 485,000 asking was asking 399,000 now down to 379,500 we Offered 300K , selling realtor told me he had offered him much more than that before he listed it,, still for sale will not currently accept our $300,000 offer (Will watch this one) has been on market 13 days

5) Bowness.. assessed at 350,000 asking 349,900 has a 325,000 Mortgage tried to do a wrap i.e. Agreement for sale,, seller is investor who wants his cash out will not currently do the Wrap will watch this one

6) Patterson Pretty house asking $1,039,000 has mortgage at 790,000 tried to do agreement for sale to take over mortgage, seller wants cash out will not do (AFS ) said he had a couple of offers coming (a week ago ) nothing yet

7) McDougal Road Condo Junker listed at $76,900 city assessment is 325,000 (was mortgage fraud way too high) Glen assessed value at 115,000 in Foreclosure . We offered $40,000 it sold with multiple offers at 116,000

8) Marbank Road Foreclosure Condo assessed value is 344,000 asking 260,000 we offered 210,000 as a Junker,, lawyer had instructed Realtor to shred all offers under 245,000 sold at 275,000 had at least 9 offers above the 245,000

9) Queensland Assessed value is 315,000 listed 299,000 mortgage 240,000 still trying seller to do agreement for sale to take over the mortgage (long shot don’t think it is going to fly)

10) Sabrina, assessed value is 171,500 asking 159,900 mortgage is 145,000 payment is 823 condo fees is 180 Seller is willing to do agreement for sale. They want $10,000 down and payments of $1,100 for 3 years and he will pay condo fees and absorb any condo fee increases



This # 10 is not a bad deal but there is not much equity in the deal. This would be good deal for someone to do a lease to own on this property and will make extra equity up as time progresses.. (would be good for some on from Calgary) This deal was offered to the 5 People chosen to receive the deals but all passed,, so if anyone wants it let me know and we can get you more information and help you get it done





Summary, we submitted 10 offers, Noting accepted as of yet, Learnt lots tho !!



Calgary Foreclosures- It is tough to get a deal in the Calgary foreclosure market the banks and CMHC are keeping the prices at fair market value, as Canadians this is a good thing and they have protected us from falling house prices as in the USA, Not so good for us investors



Agreement for Sales – This technique takes a bit of selling to the Realtors and to the Sellers, it has been around for a long time but has not been used that much. In ten years of dealing with investors as a Realtor I have never done it ,,or really heard about it. So every deal I presented using that technique I had to explain it to the other Realtor and then they had to explain it to their customers. I am going to put a very simple document together that explains the process to submit with the deal so they can educate there sellers. In most cases the seller just wanted their money out so they could use it on the next deal, and the risk factor was also mentioned of waiting for money.



As the Master said we are dealing with the FEW and not the MANY so it is a matter of finding the correct sellers. The timing is critical, FOLLOW UP is key,, as time and circumstance changes so may the motivation,, so I will continue to follow up with the active listings



I will keep you posted,, If anyone is interested in Deal 10 let me know and I will send you the details ( the interesting thing there is that the seller is a sophisticated investor that understands the concept of and agreement for sale and he is willing to do it)



Thanks, for all of your e-mails asking how it is going











Make it a Great Day



Glen Godlonton
 

RedlineBrett

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Oct 24, 2007
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I know several of these properties and have submitted offers on a couple of them as well so I know the uphill battle you`re facing.

You must have had an interesting week and I bet your ears are burning!

I put offers in on two foreclosures last week and got the same results of multiple offers and sales above list price. People are overpaying for the foreclosures because they have the word `foreclosure` in them. I think they think they`re getting a good deal.

Working AFS requires good cover letters in my opinion... you need to make it easy for the `average joe` realtor to sell the terms of the deal to his or her client as a confused mind always says no.
 

JimWhitelaw

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QUOTE (RedlineBrett @ Oct 26 2009, 11:30 AM) Working AFS requires good cover letters in my opinion... you need to make it easy for the `average joe` realtor to sell the terms of the deal to his or her client as a confused mind always says no.Thx Brett, good info. Do you have any examples of a cover letter that you think does a good job of simply explaining the AFS concept?
 

styler91

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Dec 5, 2007
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Thanks for the updates. I would be interested in your sample cover letter & "explanation for dummies." - if you are interested in sharing?

[email protected]

Thanks,

Tyler
 

Ian

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Aug 30, 2007
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[quote name=`styler91` date=`Oct 26 2009, 11:41 AM` post=`69228`]
Thanks for the updates. I would be interested in your sample cover letter & "explanation for dummies." - if you are interested in sharing?

[email protected]

Thanks,

Tyler




As would I-- [email protected]

Thanks

Ian
 

mcilroy

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Sep 15, 2008
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Glen,
Thank you for the update. It was very nice to meet you at the Quick Turn event.
Take care.
Kelly and Sean McIlroy
 

MonteDobson

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Oct 7, 2007
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QUOTE (godlogl @ Oct 26 2009, 11:20 AM) Agreement for Sales – This technique takes a bit of selling to the Realtors and to the Sellers, it has been around for a long time but has not been used that much. In ten years of dealing with investors as a Realtor I have never done it ,,or really heard about it. So every deal I presented using that technique I had to explain it to the other Realtor and then they had to explain it to their customers. I am going to put a very simple document together that explains the process to submit with the deal so they can educate there sellers. In most cases the seller just wanted their money out so they could use it on the next deal, and the risk factor was also mentioned of waiting for money.

As the Master said we are dealing with the FEW and not the MANY so it is a matter of finding the correct sellers. The timing is critical, FOLLOW UP is key,, as time and circumstance changes so may the motivation,, so I will continue to follow up with the active listings

Hi Glen,

Thanks for the update! I have submitted 3 offers myself over the past 10 days and find that the AFS concept is the biggest stumbling block so far. I have yet to find a realtor versed and comfortable with this concept (within my trading area) and the sellers I have talked to so far are against the idea of having the underlying debt stay in their name. But as Ron mentions, we are looking for the minority, not the majority, so we`ll keep fishing and we`ll get a bite one of these days!

If you comlpete that 1-pager on the AFS, please forward it on...thanks!
 

tbarcier

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Feb 15, 2008
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In an AFS when would the Realtor receive their commission? If its later rather than sooner, I can see why it would be hard to convince one to it. I would guess this works best on FSBO.
 
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