Tuesday, 28 June 2016

Realtor? Here's How to Get 1-Out-of-3 FSBOs (Without Charging Commissions)


Could a real estate professional get 1 out of 3 "For Sale By Owners" to list with them without having

to charge any commissions or fees? The answer is a resounding "Yes"!

Let's look at the facts:

  • FSBO's do not want to pay you one red cent in commissions or fees if they can help it. 
    • They don't have any equity with which they can pay you commissions
    • They do have equity in their property but they don't want to give it to you
    • They feel that they can do the same job you do, equally or better
    • They are underwater and would rather sit and wait for the market to correct itself etc.

    What if though you could still help these FSBO's by giving them the following:

    • Provide Huge Value
    • Find great buyers that are more than happy to pay the full asking price
    • Do all of this absolutely free of charge

    All sounds too good to be true, right?

    Well, it's not, and you will see why in a second. I am going to give you straight forward logic that is

    easy to consume that will prove that you CAN help FSBOs. Plus...you will do all this without

    charging them a 3-6% commission, find them ready and willing buyers, and do it all within 7-14

    days, from beginning to end.

    Step 1 - Think Like An Investor, Not a Realtor

    • I need you to take off your Realtor cap for a minute, and put on your real estate investor cap on instead. Now, rather than thinking about commissions or fees, think about profits.
    • Instead of representing the FSBO seller, work with them hand in hand and along side of them while you both profit.
    • Act as a Principle and represent only yourself. You are not reprsenting the FSBO nor the Buyer
    • Find out what the FSBO sellers ideal purchase price (within reason of course) and give it to them.
    • Build your "profits" (not commissions or fees) on top of that purchase price, creating the new resale purchase price that you will offer to "tenant buyers" instead of conventional buyers.


      Step 2 - Knowing Your Numbers. How to Structure the Deal Accordingly

      I want to give you an example of how the numbers here would play out:

      For simplicity, let's say the FSBO wants $100,000 for the property. Normally, you as a realtor would

      charge them up to 6% for you and the selling agent, correct? You would get your 3% cut and so

      would the other agent. But instead, what if you could add your 3% to the total purchase price of the

      property instead, never having to charge the seller a dime. Now, what if you made the new purchase

      price of the property $103,000 and the buyer gives you that $3,000 for assigning a contract over to

      them, all while the FSBO gets their $100,000?

      Is this realistic and a viable option?

      It is when you structure the deal on what is called a, "Lease with the Option to buy" (Lease Option or

      Rent to Own), and bring the FSBO a tenant buyer who will lease the home for a few years (normally

      1-3 yrs) all while working on their credit issues, saving up for the down payment, and/or gain more

      time on their job.

      In this simplified scenario, all parties win due to the following reasons:

      • The FSBO gets to find a tenant buyer for their home who is more than willing to pay their full asking price for the property all while they keep 100% of their equity.
      • The tenant buyer gets to avoid wasting all their money on rent and allocate a significant amount of their monthly rents towards their future should they decide to exercise their option rights.
      • And You? You're going to get the same amount of money would have received in commissions, but instead now in profits.

      Now, lets answer the obvious question that is begging to be answered: How many of these FSBO

      deals that you would have dismissed and never listed, can now be listed?

      Tons of them!

      " But wait, Daniel!...Not so fast! This all sounds to good to be true."

      You might still be a little skeptical, asking yourself, "what if the FSBO wants part of the option fee

      as well?"


      This might happen from time to time, and while most FSBOs will be pleased with getting their full

      asking price while not having to pay any commissions should the tenant buyer exercise their Option,

      they may still be concerned that the tenant buyer may not pay their rent and they may have to evict.

      I do not blame them one bit.

      While this is a possibility, tenant buyers who's ultimate goal is to own the home is by far a lot less

      likely to default on the rent since they just put up a large "non" refundable deposit (the Option fee),

      so they have more "skin in the game" compared to your regular tenants.

      Think about this...

      Do you wash your rental car when you have one? No! But, you do wash the car you own or will

      own, correct?

      For arguments sake, let's say the FSBO wants half the option fee.

      Is this still worth doing? Yes, 100%.

      If you as a Realtor or other real estate professional could do the kinds of deals each week or every

      two weeks, without having to deal with the hassle of working with banks, wouldn't you give up half

      the Option fee to do these kinds of deals on a consistent basis?

      I would. And I do.

      I actually like and appreciate the fact that the FSBO we're working with is getting money to protect

      themselves just in case. It makes me and them sleep easier at night knowing that they have some

      financial backing if the tenant buyer fails to pay on time...or flakes all together. Remember

      this...greedy investors will always lose in the long term. Make great deals while avoid being greedy,

      and you will be around for the long haul.


      Step 3 - Start Contacting FSBOs Today and Get More Deals.
      Remember: 1 Out-of-3 Say, "YES" to This Offer!

      Finding FSBOs is not hard at all either.

      Your can find them quickly and easily on following sites such as:

      • Craigslist
      • FSBO.com
      • ForSaleByOwner.com
      • Owners.com
      • Plus, many more!

      You can also go to SimilarSites.com and type in one of the sites above and hit enter. You will find

      similar sites and results, allowing you to find more FSBOs. Again, finding FSBOs is not hard at all.

      And...when you propose this type of structured deal, it's pretty simple to get daily deals. Let the

      FSBOs know right away upfront that they can put their wallets away, and that your're not going to

      ask them to list their property on the MLS for a fee. In fact, your not going to charge them one red

      cent...ever...because your going to get paid by the tenant buyer once you successfully find the FSBO

      a tenant buyer that they have met, like, trust, and have verified they can qualify to buy their house in

      a few years.

      If you find that your starting to get lots and lots of FSBOs under contract, and you need a resource

      that can provide you with nationwide tenant buyers, please keep me in mind. We have over 4,000

      tenant buyer subscribers and it grows everyday.

      In fact you can CLICK HERE NOW to get a better idea for what we do, how we do it, and why we

      have been successful at it.

      Hope you enjoyed this strategy. I hope you start contacting FSBOs today, so you can make huge




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