Offer Generator Tour

What Is The Weekend Millionaire OfferGenerator?

You will find this program to be a vitally important tool in your quest for financial freedom through real estate investments.The Weekend Millionaire Offer Generator incorporates the methods taught in The Weekend Millionaire book series and the 8-CD Weekend Millionaire’s Real Estate Investing Program. The program was architected by Mike Summey himself.

The real estate market is tough and one of the best ways to find deals is to make lots and lots of offers. It is not only important to make offers, it is important that they be structured creatively so that, if accepted, they will give you a positive cash flow. Sometimes this can be achieved by actually offering sellers a higher price than what they would expect to get from less imaginative buyers that rely solely on conventional bank financing.

If you have tried to compute a complex real estate deal manually and then typed an initial offer letter, you know it can be very time consuming. Wouldn’t you be better off spending as much time as possible looking for additional opportunities rather than trying to structure complex deals by hand? The Weekend Millionaire Offer Generator does all the complex and tedious work for you.

In a matter of minutes, not hours, you will able to compute multiple offers using a variety of financing options. You will be able to balance price and terms in ways that let you offer a wide array of prices without exceeding the true value of the property. The program even lets you print initial offer letters ready for your signature and presentation to sellers.

This tool is written by a real estate investor for real estate investors using concepts explained in the Weekend Millionaire books and audio programs. Once you’ve used the program a few times, with a laptop and small printer you will actually be able to inspect a property then go to your car, calculate its value and within minutes have an offer letter in hand to present to the sellers. There’s nothing like this program on the market today.

You will find, as many other have, that this tool will become your most important asset on the road to becoming a real estate millionaire.

The following case study shows how the Weekend Millionaire Offer Generator was used to create multiple offers that cash flowed. It also demonstrates how creative financing can be used turn a seemingly marginal deal into a profitable one. It is based on an actual purchase made by a Weekend Millionaire investor who used the Offer Generator to structure a successful deal.

HOW DOES IT WORK?

The following screen prints, will show you how the Offer Generator was used to structure offers for a seller who was asking $128,900 for a3-bedroom 2-bath house. Keep in mind that in some areas the same house may sell for double this amount and the rents and expenses will also be different.

In this example, the expected rent for the home was $1200 a month. The first screen you encounter following the ones where you enter your personal information and the property address, is one where you will enter the projected rent along with an estimate of the amount of time the property may be vacant between tenants. In this case a vacancy factor of 5% was used. (Please note that the screen being shown in each example is highlighted on the Offer Generator Navigator panel on the left side of the screen.)

When these entries were made, the program computed the Net Rent, which is simply the projected gross rent minus the vacancy factor as shown in the screen below.

Clicking on the “Next” button takes you to a screen where the program computes the Net Operating Income (NOI). This is the Net Rent, brought forward from the previous screen, minus the projected expenses such as management, maintenance, taxes, insurance, etc.

In this example, taxes were projected to be $3500 a year and insurance premiums at $800a year. Management fees were projected to be 8% and a reserve for maintenance of 5% was used. Since utilities and grounds maintenance are usually handled by tenants in single family homes, no expenses were projected for these items, but the fields are there if needed.

The screen below shows the projected NOI after these entries were made.

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Clicking the “Next” button brings up a screen where you have the option to generate “All Cash Offers” or”Financed Offers.” The financing option was selected to be used for this property and the “Next” button was clicked.

The estimated monthly NOI was carried forward and shown at the top of the financing screen just above the block where “Down Payment,” “Estimated Repairs” and “Estimated Closing Costs” were entered. No repairs were required, but a down payment of $12,000 and estimated closing costs of $3,500 were entered together with a desired return of 5% on these funds. To the right of each of these entries the program calculated the monthly amount that would be needed to provide this return. Since the buyer would keep that as a return on cash invested, the NOI was reduced by that amount and the remaining NOI available to cover financing was shown on the line above where the financing entries were to be made.


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Once the remaining amount of NOI was computed the next step was to determine how much could be offered for this property so that the buyer would still get the desired return after meeting all expenses. The offers would have to include financing that could be covered by the remaining NOI, which is why it is shown just above the financing block.

The buyer contacted his bank and determined that the going interest rate was for a 30 year loan at the time it was 7.5%.Armed with this knowledge he clicked on the Wizard’s Hat next to the financing line and brought up the following screen:

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By selecting “Bank” from the dropdown list of lender types, entering the amount of remaining NOI into the block titled “Amount of Payment You Will Make to This Lender,” 30 into the block titled “Number of Years You will Pay This Lender,” and 8 into the block titled “Maximum Interest You Are Willing To Pay,” a table was created showing the loan amounts that could be paid at varying interest rates with the remaining NOI. Since the buyer knew the bank’s rate would be 7.5% he clicked on the amount opposite7.5% in the drop down list and it was transferred to the financing block on the previous screen.

Immediately the buyer saw that the total of the amount that could be financed at 7.5% together with the proposed down payment of $12,000 was considerably less than what the seller was asking, so he decided to create another offer that would be closer to the asking price. By clicking on the “Save Calculated Offer” button, the buyer was given the option to generate another offer and was returned to a new blank financing screen.

This time when he clicked on the Wizard’s Hat, he selected “Seller” from the drop down list of lender types, entered an amount almost equal to the remaining NOI, again entered 30 in the years block, but this time entered 6% as the most interest he would pay. This produced the following table:

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(Sellers who own properties outright are frequently willing to offer better financing rates than banks, especially when they can get a higher price for their property.)

By scanning down the table he saw that at 4% interest, the amount he could finance together with the $12,000 down payment would produce an offer that was slightly more than the asking price. He clicked on the amount opposite 4% and the information was entered into the amount of loan in the financing block. Just as with the bank financing offer, the information was transferred to the financing screen. By studying the table, you can see that lower interest rates could have been used to create even higher priced offers.

Although they are both similar, only the offer with the seller financing is shown on the following screen:

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Please note that a pop-up block is displayed giving all of the details of the offer just generated. Should an offer result in a negative cash flow situation, a warning to this effect will also pop up.

Each time an offer is generated and saved, the program brings you to a screen listing all offers that have been generated. At the bottom of this screen there are three option buttons. You can “Add a New Offer,” “Edit a Selected Offer” or “Delete a Selected Offer.” This screen with the two offers described above is shown below:

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While only two simple offers are presented here, the Offer Generator can be used to create literally hundreds of offers for any given property. By varying interest rates, length of loans, and combining bank, seller and third part financing the possibilities are virtually unlimited. It’s easy to make offers that contain part bank financing and part seller or other third party financing.

Since every seller is different and every property is different, conceivably there could be as many different ways to buy properties as there are combinations of properties and people. That’s why having a tool like the Offer Generator that allows you to quickly create a wide range of prices and terms makes your chances of finding the right combination far more favorable than people who only know one or two ways to buy.

Once you have generated several offers, the final step is to transfer the information to initial offer letters that will allow you to present your ideas to the sellers. By clicking the “Next” button on the above screen the program will take you to a screen where you will enter the seller’s name, address, phone number, etc. this information will be used in creating the offer letters.

The information you entered about yourself in the beginning will be used to create a letterhead. This information only needs to be entered and saved once and it can then be used for all future deals. The information entered about the seller will be used in the salutation and address portions of the offer letter.

A separate letter is generated for each offer as shown on the screen below:

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Each letter may be selected by clicking on the tab at the top of the window and each letter may be edited, revised, conditions added or any other changes made before it is printed.

This brief description of the Offer Generator is designed to hit the high spots of the program and it merely touches the surface of what this powerful tool can do to enhance your real estate investing career. There’s no need to be afraid of the program because every help is available at every step. By placing the cursor on the title of any field where you will need to enter information, a pop up help screen will appear that tells you what you need to do. This pop up help may be quickly turned on or off by clicking on the help button in the top left of any screen and selecting “help on” or “help off.”

Happy investing and whatever you do, don’t let another day pass without getting this powerful Weekend Millionaire investing tool. It’s easily worth its weight in gold.