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If you remember, we first interviewed Keith and Shannon French a year ago (March 2012). If you haven't already – you've got to listen to these two episodes:
Episode #29 Here & Episode #30 Here
They have an amazing story!
Well something happened to Keith and Shannon recently… They recently moved from Baltimore to Louisiana. And they are still flipping properties virtually in Baltimore!
Listen how Keith & Shannon are taking regular vacations and still closing 4 deals a month (with an average profit of $7,000).
On this podcast, we also talk about…
- How they use Social Media to buy and sell deals
- Why it's important to do deals first in your own market first
- Best Free Marketing Strategies
- Find other wholesalers
- Find Realtors
- Craigslist
- Social Media, specifically YouTube
Misc Links Talked About In Podcast:
Listen To The Podcast Episode Here:
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Great interview. My question is, Keith & Shannon mentioned they only spend around $100-$250 per month for all marketing.
What all are they doing for marketing for that low amount? (especially since they are pulling in so many deals with it).
Thanks,
JvM
They are mostly spending that money on direct mail, I believe. Listen again to the interview. We talked a lot about all the free marketing that they are doing.
Nice Interview with Keith & Shannon
Where? did Joe Post the URL 4 the Credit Repair Co. in TEX they spoke about?
thanks, Josh the “Orlando Flipper”
Yes, the link is in the show notes. Look again.
Great session Joe and Alex. Loved the mini atlas shrugged lesson… too bad most won’t get it. Totally neutered Kern’s quote though 😉
I had a question, do the tenant buyer’s monthly payments go to the seller or to some kind of escrow? I ask because here in Vegas, there’s been a problem with landlords pocketing the rent and having the property go into foreclosure with the tenants not knowing.
Hey Ron! Thanks for the kind words. We always recommend using a third party (or escrow service) to collect the rent and pay the mortgage. That is what I always do. You can find companies that will do it for only $25 – $50 per month. You also want to verify that the mortgage is current, and it is not over-encumbered. Finally, you want to make sure that the Tenant-Buyer has a chance to get their property appraised before they move in, or within 10 days of signing the contract.
Joe, I thought you we’re going to have a new up-to date interview with the French’s sometime?
Like to hear what working best for them now. Seems that the market has changed for various parts of the country and would be great to hear if they made any adjustments.
Dean – Did you listen to Episode #50 yet? That was about as “up-to date” as you can get. 🙂
where are the show notes?
Found them!
Im working in Maryland following Joe’s Program. Any recommendations from Keith & Shannonon on a mortgage broker in the area that understands what we are doing ?
Bruce – I would find them on facebook and try to contact them. Or go to their main website (www.BuyBaltimoreProperties.com)
I’d like to know how they are marketing their properties. Especially is their “average” option consideration is 7k. I realize that there may be more availability to people with money in Baltimore as opposed to some areas, but my experience in central NC is that finding ANYBODY with a down payment/option consideration of ANY amount is a “find.”
FYI, I have a 1500 name buyers list, I use Craigslist, and all of the most popular real estate selling sites at my access. I’d like to know their secret to finding people with money down.
Their big secret is they have nice homes in nice areas. They mostly take on nicer properties. Homes in nice areas will sell faster and for more money. They also are EVERYWHERE in Baltimore. So they are very easy to find. If you have a lower end house, you are not going to find many people who want it and who have money for a lease option.
Joe,
Great interview. From studying your WLO course, I know you require tenant buyers to get a home inspection prior to move in. I didn’t know about the appraisal you mentioned above. From the podcast, it seems that Keith/Shannon will use comps to help establish the sellers asking price and allow for the tenant buyer to appraise more reasonably down the road at the end of the lease term. Do you feel apprisal is mandatory or just using comps may suffice? Thanks for you time.
I think you need to at least give them a chance to get the house appraised. If they don’t want to pay for a professional appraisal, they will specifically waive their rights to get one. But at least you are giving them a chance. Better to find out now if there are going to be any potential issues later on down the road. Plus – and this is really important – I will never allow a tenant-buyer to get kicked out of a house if it will not appraise for the Option Price at the end of the Option Period. If the house doesn’t appraise, they get to automatically extend the Lease Option until it does appraise – without penalty. – Joe
Joe,
Great podcast.
One quick question. You and Keith & Shannon talk about using a lawyer or an escrow account for the option deposits. Is there a specific legal reason why you use an escrow account? I understand why the Keith & Shannon use an escrow account since they are not in the city where they do business.
Thanks for presenting such great information.
We recommend using an escrow service because it will help the Tenant-Buyer source their funds for their future down payment. The Title Company will also make sure the mortgage is current, that the property is not over-encumbered, and that all the rents actually go to the mortgage company (if there is a mortgage). It’s an added layer of protection. – Joe