If You Wholesale Houses - You Should Be Doing Novations: Part 1 w/ @NovationKing

[@FlippingMastery]

FREE Novation Kit: novationkit.com *Once you enter your email, it’s automatically emailed to you. If you don’t see it, check your junk/spam folder in case your email provider put it there...If you still don’t see it, my team can help you out. [e-mail]

[@mattiematt316]

This is pure fire! Being able to get a seller more money than a typical investor AND deliver the results on a silver platter… So great! 🔥 🔥 🔥

[@FlippingMastery]

Couldn't agree more!

[@Edgar_Franco]

Best series on the internet right now for REI

[@circa33]

Super stoked for this training series... even more stoked that you offer a JV on it and let you do the heavy lifting, Rich. I've got a graveyard of leads that I would love to see if we can breathe life into.

[@Thenatalyteran]

Let’s goo!!! Rich is killing it 🔥🔥🔥

[@collinbaptiste5619]

Rich, you're a flipping genius, sir 👏🏾 🎉🎉🎉

[@carterbecker7162]

sounds like wholesaling but instead of you taking the contract to a cash buyer you take the contract to someone wanting to move in.

[@1StopToyShop]

Is that buyer cash too and quick close? I guess if you have cash retail buyers it makes sense. But If have to search for any buyer i don’t see why it makes sense if it’s basically same process.

[@1StopToyShop]

As hiring a realtor

[@gabrielREI1]

THE KEY THROUGH UNLOCKING A DEAL IS THROUGH THE HOMEOWNER

[@julietruong.invests]

Can’t wait for this! I feel like notations are going to help so much in this market along with creative.

[@terrymccoy1016]

Wow! Jerry, will you be doing Novations for your 10k students?

[@jaison206]

LG Jerry and Rich.

[@luislacayo9293]

Omg... Always dropping gems!

[@arianarose2655]

Thank you both !! this is an amazing way to get into novations , so glad to be learning about this now !

[@claudemoss1005]

Thanks for this Jerry! Massive value 🔥

[@FlippingMastery]

Glad you liked it!

[@stattonparis-zw9lo]

Thank you Jerry!

[@Lawrence_of_Asia]

Sounds like these leads can’t be in contract with an agent. Is that also accurate!?

[@novationking]

Correct. Normally these deals need to be found off-market, direct to seller

[@1StopToyShop]

Is novation basically same as wholesale but just selling to those middle buyers? What are the inspection periods and closing terms/ timelines on novations?

[@TheAnduwan18]

Sounds like this is a strategy for off market deals only. Am I correct?

[@FlippingMastery]

Yes

[@I_Am_Adrien]

🔥🔥🔥🔥🔥

[@winwinfix]

Hey! Hello Jerry! please, I m not sure if i got the time to learn novations now as I got a hot lead in Tampa. I believe this can be a perfect fit for novations however i can't manage it atm. would you help me please? this is also my second week cold calling and my first very warm lead so I think that if i don't act fast, the lead would be gone as you always say time kills all deals! thanks!

[@Lawrence_of_Asia]

So, how is this any different than typical wholesale, did I miss something!?? I guess wholesale is an agreed upon low price and find someone to pay more. And novation is an agreement on a midrange price and you get the contract much like an agent and then You keep the difference… !? Is that correct!? 😅

[@novationking]

We sell most of these properties on market after we hire an agent. We can sell to a retail buyer that's using a loan instead of just cash investors/fix and flippers like traditional wholesale

[@garvin3d]

​@@novationking you guys are nationwide correct?

[@justarandomstranger6467]

Is there a jet engine in the background? what is that noise?

[@faizaenterprises2279]

Everything sounds good to me

[@justarandomstranger6467]

@@faizaenterprises2279 0:21 when he first starts sounds fine?

[@FlippingMastery]

Audio was messed up in the intro. Sorry about that

[@AberrantArt]

QUESTIONS: 1) IF It's a flip Novation, how is the equity and construction cost secured? 2) Are there states that see this as acting as an agent and have restrictions on this method? 3) what documents are needed for this? Power of Attourney? Discloses? Liens? 🤔

[@novationking]

1. I personally dont care for those but you can use a promissory note and/or cloud title 2. we hire a local real estate agent, so we are not performing any agent related tasks. if you are using a flat fee, listing service and acting as an agent and absolutely it could be seen in that way, and that's why I do not recommend it along with several other reasons. We have a whole video on that in the series coming up. 3. We also have a whole other video in the series about that.

[@AberrantArt]

@novationking thank you very much for the reply. Looking forward to the videos and info. For 1) does clouding title give you the ability to sell the property? What if the seller changes their mind after you did the work? Same with the promissory note. I assume that's the seller promising to pay you (the buyer back)? Without a deed, it's similar to a lien on their property, Correct? If they don't sell, how do you get paid?

[@novationking]

⁠@@AberrantArtClouding title just prevents them from selling to someone else. It is very important to keep the seller happy throughout the process. This is one reason I spend minimal money because the sellers normally have no money and if they default, your only recourse is taking them to court (which I most likely would not do). The promisory note has a payment schedule and interest rate if they do not perform. It is more of a psychological tool than an protection. Normally, it would be more expensive to try to take them to court then it would be to just walk away from the deal and cut your losses. I've yet to lose money on a novation deal yet, but I go with my gut if something seems fishy, and I think the seller may be unstable and "flight risk". The types of things that I'll spend money on our helping them move, cleaning out the property, or putting down to deposit on their new property, which are all things that move along our process, more so than actual value ads to the house and give them a reason to walk away from the deal. There is probably a more sophisticated way to secure your interest in the property but since I'm not doing remodels and haven't lost any money, the way that we have been doing it has been sufficient. The document that gives us the right to hire an agent is the Attorney in fact: Authorization to sign listing docs.

[@GTFCEO]

​@@AberrantArtyeah it's like a lein and honestly I thought of that myself if they dont sell will u have to wait until they sell down the line IF they ever do, or they expire and their kids sell it/bank auctions it, to get paid your rehab cost back?

[@FlippingMastery]

Stay tuned. We cover paperwork in video 4