Magic Bullets Kill Sacred Cows HTML version
Magic Bullets Kill Sacred Cows
Terms of the deal
Date of closing
Screening Your Potential Buyers
OK, Fiz. Please allow me to again remove any fear that you may have before we
begin. You know the drill! I remove the fear and you go on to achieve great things.
Fiz, remember everything that you have done up to this point was done to make
the next step easier. You have all the power you need to call the shots. You're
simply looking for the right buyer to transfer this power to. You're actually a
benefactor to the right person and when you find them, they are going to help you
transfer your power to them.
Our real mission is finding the person who wants the power you are offering. We
are looking for the perfect fit!
Your first requirement of a potential buyer is to determine at the very beginning
whether or not they are actually qualified to buy what you are selling. This
involves their primary motivations, current situation, time lines, and their
financial ability to assume control.
We will start with their ability to pay because, without that, nothing else matters.
So you need to understand the following two definitions:
#1 Pre-qualified: Is a person who has already spoke with a lender, and has a letter
stating a certain dollar amount that they can spend on housing. This is based on a
preliminary review of their credit standing through credit reports, employment
status (pay stubs), 2-3 years of previous tax returns with schedules and W2 forms,
three months of bank statements verifying funds on hand and any and all
outstanding debt in all forms that they are currently obligated to pay.
This process is undertaken by filling out a “Uniform Residential Loan
Application”. The bank reviews all documentation, verifying its validity, and
bases its decision to loan certain amounts of capital to the individual applicant
based on the qualifying ratios applied. In other words, can you afford this? And