Dwan describes the process of owner partnering (also known as equity partnering) and the importance of getting your paperwork in order before venturing out with a homeowner in distress. Many things can go wrong, but many things can also go right, and the ideal outcome is for you to make a hearty profit, the homeowner to walk away with a good payout, and everyone to be happy at the end. Sometimes it is the homeowners that have a lot of equity in their house who come to you in the most desperation because they finally surrender to the fact that the bank will take their house otherwise.
The most straightforward method for walking the homeowner through the process of equity partnering is with a written agreement, the terms of which are discussed using the pen and paper approach. Seeing the numbers all together really opens the homeowners’ eyes to the trouble they have gotten themselves into and the lifeline you are trying to throw them by partnering with them.
Time Stamped Show Notes
- 1:39 – This is the last episode of season 2 of the podcast, and Dwan reviews what we have covered so far. Drinks with Dwan is social time for Dwan to catch up with her loyal listeners.
- 7:50 – Owner or Equity Partnering involves becoming business partners with the homeowner in distress and splitting the equity with them after you help save their house from foreclosure.
- 9:26 – Homeowners who are in this position often have a lot of equity in their house, but they have missed 15+ payments. They are convinced that the bank will not take their house and because of the number of missed payments, they can’t find a company to help them refinance.
- 12:02 – When they first start talking to you, their mindset is that they are not going to give you anything. Just start out telling them that you require a risk management fee of 10% of the selling price of the house and then you will split the equity with them 50%/50%.
- 15:34 – Use the pad and pen approach described in the Wholesaling program at Dwanderful.com/flip. Explain to them that by missing payments and not making necessary repairs, they have essentially already taken profits out of their house, and then show them how the numbers come out.
- 21:29 – If you sell the house before the foreclosure sale, you won’t have to pay anything out of pocket.
- 23:46 – If you’re a member of the Dwanderful.com site, you have access to the land trust and homeowner agreement forms that are essential to this process.
- 27:38 – Homeowners are much happier taking whatever equity they can get after being involved in the process rather than cut out.
- 28:44 – Help make this podcast #1 in the Investing category, and call iHeartRadio to tell them to pick it up! Share this podcast with all of your social media followers and leave us a 5-star review!
- 32:35 – Your assignment is to download the Lingo at Dwanderful.com/lingo and to become a member of the Dwanderful.com site.