Investors are increasingly turning to the teachings of Phil Grove and AMPS which stands for the Assignment of Mortgage Payments System. Obviously, with any new strategy, there is a learning curve that must be overcome to rake in the deals.
As one who studied Phil Grove and AMPS and turned that training into a successful AMPS based business in less than a year, I have a few tips and guideline to allow new investors to avoid some big mistakes that can really stop you from getting to deals.
One mistake is giving up too soon. This system is based on marketing to motivated sellers. No doubt, the combo of Phill’s training will give you a powerful arsenal of marketing magic to get a flood of calls to motivated sellers.
That said, it is a numbers game and sometimes, you put out the filers and don’t get much response, and sometimes you get a call from a motivated seller that you don’t close. This is part of the business that happens even to those of us who have been doing it a while.
So even with Phil Grove and AMPS behind you, you can’t give up just because 1 or 2 deals didn’t work out, or you had a bad go at marketing. You must persevere!
Another mistake is not enough marketing. Some people get the system, go over every video multiple times, read everything about AMPS, but never do the marketing to do the deals. You must market to be successful with the Phil Grove and AMPS investor strategy.
One more mistake is making way too big of a deal of the due on sales clause.
Anytime you do a lease option, sub to deal, rent a property, and yes, do a Phil Grove and Amps style deal, you are going to trigger what is known as the due on sales clause which states that if you do any of the before said, the bank has the option, but not the obligation, to call the note due immediately.
I am not a lawyer, just a Phil Grove and AMPS student, but I have talked to lawyers who have done thousands of these type transactions, that in theory trigger the due on sales clause, and cannot tell me of one single case where the bank has actually called the note due. That could change, but that is the practical reality.
So in my opinion, investors make way to big of a deal about this. And if it’s explained openly and honestly to the seller and buyer as taught in Phil Grove and AMPS system, they don’t usually have any problems either.
Investors tend to make a way bigger deal about this than seller and buyers do.
Hope that helps, on to deals!