Have you ever had someone come to you asking for help with a problem? There's big money waiting for you when you become a problem solver.

Note buyers have lots of tools to help people solve real estate problems. My personal favorite will solve the most common problem home owners face. It turns you into a hero in the eyes of the home owner. The home owner will praise and recommend you to know end with their family and friends. The end result this problem solving tool produces is a super--high quality note--you can broker or buy for yourself. The tool I'm talking about is teaching home owner's how to offer good solid owner financing when they sell their house.

Any person who buys a house will in due time need to sell it. The fastest way to sell a home is to offer financing and carry the paper. The technique allows the home owner to sell on their own using no sales agent. The benefit of selling on their own, plus getting a quick sale at the same time, is a powerful selling point to a home seller--when a note buyer properly teaches them the owner finance strategy. It doesn't matter if your a seasoned note buyer or just starting out. Teaching owner financing to home seller's is easy to learn and becomes second nature to you. Opportunities to teach it are every where. In fact, you can easily market and sell the information to eager home owner's and end up with a high quality note. Here's a real example of what can happen when you market and teach the "quick home sale"--owner finance strategy.

Imagine yourself in my place: Five years ago people started referring their friends and associates to me who had real estate problems. When you wear the hat of a note buyer people come to you with all kinds of questions. Topics like borrowing money, Investing, the future of the economy etc. Over 80% of all the questions people wanted help with was selling their home. People would phone me and I'd try to help them with a five or ten minute description on owner financing. I quickly found that five or ten minutes was too short a time to really be effective in selling them on the strategy. I determined that the strategy needed to be carefully laid out step by step.

So I wrote a simple to read manual that taught the whole technique written on a seventh grade level. This changed everyone's ability to understand. The information gave them the confidence to sell their home on their own. Plus, they understood how to put the right financial terms in their mortgage and note, giving it solid cash value and a quality deal I could buy after they closed the sale. I started a service and successfully sold my manual and membership in the service through mail order ads and referrals.

One day I got a call from a man responding to one of my ads. He introduced himself as Carl. It was clear to me he was in some kind of financial crises. I sent him some information on my home selling material. About two months later Carl phoned me back. He told me he'd tried to sell his house with an agent and had no offers. He said, "I'm sick of all the hot air from my agent. Can your information get me a fast sale"?. I said it would.

The day after he read my home seller manual he called me back. I thought his financial problem was foreclosure. I was wrong. It was credit card debt. We talked a little about owner financing and I went over some questions regarding his deal. One of the key questions he asked me was, "If my real estate agent couldn't sell my house what makes you think I can sell it by myself.? I'm no salesman. I never have been", he explained. I said, "look Carl, Its not a question of you being a salesman. Your home will be the salesmen. All you do is simply show the buyer a way to buy the house. Owner financing provides that way. When the buyer sees a way to buy--the house sells itself. I've proved this over and over".

I told Carl to put an ad in the paper that said "owner will finance". "Follow the instructions on creating your contract and note in the manual and close the deal with your lawyer", I replied.

Carl got instant reaction to his ad. He found a good responsible buyer in about two weeks. After he closed the sale on his house, I went over his financial problem and came up with the following offer: his home sold for $134,000.00. Carl got $33,000.00 down from his buyer. He owed $40,000.00 on the first mortgage which he paid off with the down payment and my cash offer. His credit card debt was about $24,000.00. As I talked to Carl about his situation it was clear what he needed was some extra monthly income. I offered to buy the right to receive half of each monthly payment for $38,795.00. The payment was $1,024.00 per month. Carl got $512.00 and I got $512.00.

Here's how everything worked out for Carl.

1. House sold for.......................$134,000.00

2. Carl's buyer put down..............$33,000.00

3. I paid Carl.................................$38,795.00 for the right to receive half of each payment.

4. After Carl pays off his 1st mtg. and credit card debt--Carl gets......$7,795.00 cash.

5. Carl gets $512.00 every month for the next 15 years.

After we closed the deal on the note Carl said, "Leonard, its just like you said. The house actually sold itself on it's own. Why didn't my real estate agent tell me about this"? I diplomatically said, "he probably doesn't understand the selling power of owner financing".

Within two months Carl referred 2 of his friends to me who bought my manual and sold their homes. These two friends of Carl told their friends. And the cycle goes on and on. This is the dream of any note investor. Your best deals come from referrals of happy clients.

Do you see the profits you can make from sharing the owner finance strategy with home sellers? You teach someone how to solve their problem on their own. The home seller ends up with a nice note you can buy for yourself or sell to an institutional buyer for a quick profit.

When you show someone how owner financing works its very important to keep it simple. When I wrote my manual I made sure it was written on a seventh grade level. No great big words or fancy legal talk. Just keep it simple in down to earth words. I recommend you write a little booklet or manual. You can give the booklet away or sell it. You'll have better success if you sell it.

Here's a little outline of what you should cover in your manual.

1. Begin by explaining to the home owner their going to discover the fastest way to sell their home.

2. Open with a question. What do you think is the quickest way to sell your house? Work the question thru by giving examples of fast sale techniques---new paint job, nice landscape, open house, special features, or sales price. These techniques can help, but there's one strategy that out sells them all. Then hit them with the owner finance strategy.

3. Introduce the owner finance strategy. Explain how it works and describe the benefits. Seller gets a fast sale. Buyer gets rid of the bank hassles, points and fees etc.

4. Explain how a note and mortgage is sold. Walk them through the process after the home is sold, how the note buyer purchases the contract and how the home seller gets their cash.

5. Show the home seller what gives a note and contract high value. Valuable contracts are secured by sound property, healthy down payments, short pay back term, good LTV ratios and owner occupied that's responsible etc.

6. Give an example of a good note & mortgage that has high value. Write out some figures that show the example. Give a figure of what a note buyer would be willing to pay for your example.

7. Stress the benefits of creating a short term note vs. a long term note. In other words they'll get more money for a 15 year note vs. a 30 year note.

8. You might mention other strategies that will help sell a home. You can get some good idea's from a little book called "101 Easy Ways To Make Your Home Sell Faster" by Barbara Jane Hall. Your local book store should have this book.

9. Offer the home seller your help answering their questions on owner financing. Mention they can talk about their deal and you'll give them suggestions on the best terms to put in the note. Talk about buying their note after the sale closes on their house.

10. Make sure the home seller understands you can't give legal or accounting advice. Also be sure they understand your not a real estate agent. You can't sell their house for them. In addition, you want to stay away from any contact with the buyer. It makes you look like a lender. You can talk to the home seller all you want. However, any conversation between the home seller and buyer must be between themselves or their attorneys.

I realize this is a brief outline. However, it does give you foundation to build on.

Take advantage of the profits you can make teaching owner financing to home sellers. It's a huge source that runs into the millions. Unlimited business is everywhere.

If you'd like more ideas on marketing and teaching owner financing click here.

Further reading on this subject:

HOW TO START CASHING IN ON THE BIRTH OF PROFITABLE DISCOUNT MORTGAGES

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