http://www.youtube.com/watch?v=FSl24p0AMXw

It is absolutely imperative that you get into the mind of your buyers… BEFORE… contracting on a property. That means that you need to calculate how much the buyer is into the property for – your selling price plus repairs – and also taxes and insurance. You don’t have to worry about a mortgage payment, because we’re only dealing with cash buyers right now.

In addition, you need to know what your buyer is going to do with the property once he buys it. Here is a hint. If the neighborhood is busted, he’s probably going to rehab and rent. If it’s decent, or even nice, he is probably going to rehab and sell.

If he is going to rent, you need to find out what the going rent is for that type of property, in that neighborhood. You can find this stuff on the internet.

Once you have all this info, you can easily calculate cash buy, plus repairs, plus taxes and insurance, minus rent revenue, plus minor repairs or updates throughout the year.

Now, you can decide if this is a good buy for HIM (not for you).  If it is, contract on it and present it to your buyers.

How?

Mr. Buyer, here is the deal, in less than 5 years, you will make all of your money back and own this property free and clear. After that, you can expect to pocket about $12,500 in profit every single year that you continue to own the property.

Luv Ya,

The Maestro