SOLD!!!!!!!!!Wow that was FFFFFAAAAAASSSSSSTTTTTTT!!!!

Hey! Michael B wrote some pretty good words about cbrpower too. And here are some more good words:
"Only by putting your attention on the GOAL do you achieve it."

I'm sorry I didn't read ALL of cbrpowers posts. But the few I did read, WOW! I'm serious, it's really great stuff! He's one of the great ones here at dg.com. And apparently Rina thinks so too. (she too, is also one of the great ones.)

(this post has been slightly edited)
________________________________________________________

Michael B

Your kind words did not go un-noticed. Thank you very much, I greatly appreciate it.

Can I interject something? (Hope you don't mind, CBR)
Out of the thousands of people on the DG site, no one is greater than another. We are all just part of a blessed group of people who have found Dean's program and want to put it to use in our lives. Some have had longer to benefit from it, and some have more determination. But the cool thing is we ALL have the opportunity and the potential to become Real Estate Millionaires. That is why I so much appreciate CBR and everyone else who is willing to share where it has already brought them, and teach how to do it. It's great to belong to this DG family. Glad you're a part of it, Michael (millionaire in the making )

God bless,

Rina

hey sandy, The EARNEST MONEY(like cbr said) is a DEPOSIT that the BUYER(you) gives the SELLER to "LOCK UP" the property or as cbr said "TIE UP" the property, what that essentially means is: Nobody else can purchase that paticular property from the SELLER during your contract time frame(which is usualy beween 30-60 days) as long as you did what your suppose to do and file a "MEMORANDUM OF AGREEMENT" which will put a "CLOUD" on the title, and also prevents unscrupulous investors from going around you and buying the property for a $1,000 more , so if for some reason you Dont follow through with the close, the SELLER can then sell the property to someone else.

OK, Sully, you may need to start a new thread for this one. I have a feeling you're gonna get a bunch of questions (including from me), 'cause this is something I hadn't heard of.

Rina

cbrpower,
I read and re-read your post (Wow! that was fast!) I took notes from it. You told us how you found buyers. (great data!) I'm going to do the same thing. The houses were not bank owned. Both were vacant.

A couple of things: I'm just mentioning this, I'm a little surprized you apparently did not use craigslist as one of your methods to find buyers. (or did you?) Again, don't get me wrong, I'm going to do exactly what you did. I'm not saying you should have used craigslist. I mean I'm a newbie and I'm just trying to learn. I'm very impressed with the way you did do it.

Also, how did you find the houses? You said you found buyers by telling everyone you know that you buy real estate and through REI clubs. Did you also find the houses the same way? Or did you drive through neighborhoods etc?

Again I'm a newbie just trying to learn. I love your write up and I'm going to try to implement it as well as I can.
______________________________________-

Michael

These houses were both on the MLS for all the world to see. I did not need to use craigslist to find my buyers because I found my buyers through word of mouth and the REI club that I attend on occasion. Although craigslist would probably be a good place to look. My buyers lists run deep although the numbers of names on it are shallow. Here is what I mean. The people I put on my buyers list all want to buy several houses from me. One has mentioned over 50 houses and another has mentioned over 20. Not to mention several people saying they would like over 10. The reason I like this is because I can work with the same people all the time and get a feel for what they like and don't like. Plus, I know the money is there which is also a big key.

Thanks for going the extra mile in answering questions for me. I will return the favor anytime needed my friends. On to a house below market, tally-ho...Jan

I just read your article again at the top of the page. Wow! That is fantastic!

Also, reading your reply above. My jaw dropped when I read the first sentence.
"both on the MLS" Let me ask you this if you don't mind. That means that a real estate agent was involved. So the agent got the usual 3%-6% comission? Again I'm just asking because I'm going to run into real estate agents. They are all over the place. I will need to know how to work with agents. There's a town nearby called, Vallejo, it was hit pretty hard with foreclosures. There are tons of houses all over Vallejo. One of my agents keeps sending me listings of houses in Vallejo per my request. There are probably some golden nuggets in there that a blind man can not see. But the key is, as you say, is to do what you did. >find a title company that will do assignments. Find a deal that is 40% below value etc. What about a real estate agent? Do we need to find a real estate agent that would be willing to work with us doing assignments? I apologize for the possible idiotic questions.

And that's one hell of a buyers list you got!

Anyway thanks for answering my questions.
____________________________________________________
Michael B

A good real estate agent is key. Especially if you want to do assignments of contract. When I first told my agent about assignments of contract she told me it was illegal. I told her that it was totally legal and something that is done all the time. Then I brought her a copy of Dean's new book just to prove it. (Yes you can steal my ideas if you want). Plus I always turn everything around and show her the benefit of how it is going to make her money (more closings). So yes a real estate agent is a key component.

Michael B,

I just wanted to elaborate on a point that a lot of us overlook or forget.
While FINDING a deal at 40% off is awesome, remember that CBR OFFERS at 40%-50% off the ASKING price. He's getting homes that are CURRENTLY VALUED at double what he's getting them for! So he is CREATING his great deals, not just by chance finding them. And by making dozens of offers a week, he's working off the law of probability, and it's in his favor.

Did I say that right, CBR? I just think it bears repeating, even though you say it all the time. It's one of those things that's just hard to absorb. For me, too.

Rina

If a house in listed with a real estate (on MLS)how do you assign them? There are hundreds of great houses here on the MLS but I avoid them because I assumed that I would have to sign purchase agreement with realtor in order to get them. If I did this how could I assign the house?

Also if the house is listed on MLS doesn't the realtor get a % of the sale?

Maybe I am missing something. Please clarify how I can obtain MLS properties.

True-right on point. Create the deal with your offer.

CBR WOW! Thanks for the awesome answer! So real estate agents are key. It's fantastic to know that! It's funny, because all the wholesalers I know by me (and I have all their business cards) they all state they do not want any properties listed by agents.
So this is great because it CAN be done successfully using real estate agents too. Incredible!

Also when you said, ("Yes you can steal my ideas if you want*), That totally cracked me up (lol) possibly the whole building heard me laughing!
Thanks tons cbrpower.

And I'll bet anything that YOU cbrpower will be Dean's next confernece call!

And Rina, thanks for clarifying that. Real estate is such a formidable subject. That's why some gurus charge so much. There is so much to learn.

Good luck to everyone and get ready for another super conference call.
____________________________________________________________

Michael B

Please tell me where I get a contract for assignments? could someone give me a copy

Jenks, if you look @ the left hand side of the web site, their will be a option that says: "DOC'S and FORM'S" click on the link and i believe theirs a "generic copy" of an ASSIGNMENT OF CONTRACT thats downloadable, SULLY

I just read this thread and the one you had about turning $500 into $30k and all I can say is... GOOD GAWD ALMIGHTY! You guys are some heavy hitters on this site! I'm so glad I signed up!

I'm just about to look at my first property (I'll start a separate thread on it as it develops), and I'm so nervous and determined to get started that I couldn't sleep last night. Reading your posts just now has just about completely slapped the fear right out of me. Here I'm scared about getting started, and you guys are just knocking 'em out of the park, 1 right after the other! What an inspiration!

I'm gonna get some real rest tonight and interview my potential seller. If anybody reads my posts... So far, it's a 3 BD/2 BA on 4.5 acres 10 min. east of my town. There's vacant land on all sides but across the street. It's an estate property, held in conservatorship by an out of state atty. He did not list a sales price in the classified ad, but he mentioned $675/mon. rent and "VERY MOTIVATED!" Tell you more soon!

Great job CBR! (standing ovation)

That's Awesome CBR! But I have a question: I thought you preferred to use real estate attorneys for assignments. What changed?

I also just wanted to say how incredibly inspiring and informative all your tips are. It's harder to believe that we will not succeed with everything you and so many others provide us. Thanks for that!

Howdy ~

Your assignment deals serve as timeless grrrrrrrreat examples. Thanks ...

Here's a question:

If you came across a deal (Bank REO, or otherwise) and there was some flexibility to ******* not ******** put down any EM DEPOSIT and just execute the contract without any financial risk ...

Would you prefer to put down an EM deposit (however small) regardless to perceptually (or legally) "strengthen" the deal being locked ????

Can the seller slip out of the contract easier with no money exchanging hands?

Or does 'locked still mean locked' with a binding contract, but no valuable consideration?

Thanks ~ Sherri

Just finished reading all of the posts on this thread.

Great learning experience.

We have uncovered a multiple-house deal (one owner) with chance to purchase two or three of them in a package. The assignment method might be the right way to go.

We intend to dig deeper into assignments as a result. Good discussion!

Alice and Jim
HomeStar2020

Matt has not been back on this thread in a bit (busy as all get-out I imagine!), so if I may, event through I'm a newbie, yes, putting a little down couldn't hurt as long as you have your contingencies in place. However, a binding contract is a binding contract, money down or not. At that point, the money is just to sweeten the offer and maybe let them know that you are serious. Good luck!

I am catching up on my DG SITE READING and just stumbled upon this thread today.

I could tell it wasn't "new" but didn't know that Matt (like Elvis) had left

the building !!! Thanks, Kevin, so much for your reply and insight !!!

~ S

Anytime

Sounds like a great job, you make it sound so easy, just like Dean. Thanks for providing that example with us, very informational. Makes me want to get out there and do it today, right now. I just need to leverage with somebody who has both age(18+) and experience.

Thank you,
-Gabriel Do Carmo

CBR, truly an REI rockstar

I humbly receive your blessings of knowledge and wisdom.

I am so there, and like you have gotten to the point of building my buyer's list that I know I have enough to work with, but have much more work to do.

I have taken your real-life analysis and printed it out and put it up on one of my office boards to use as an example of how to work the numbers. The realtor you worked with may become a new convert, lol. Truly a gem. I don't mind who I work with, as long as they can eventually be trainable and workable.

Correct me if I'm wrong, but unless you had an all cash offer, a modest non-refundable EMD, was there no way anyone could get that great assignment deal? (40% below FMV, assuming 60% ARV). Embarrasingly stating that I'd have to change my shorts on that one )
Although, I'm an outside-the-box, alternative thinker, and great deals are out there, I'm dealing with no cash and no credit, but only the grace and mercy of my God and the intelligence, my 2 left feet, and the "tongue" he gave me.

NEW REIer, though I have learned much already and somewhat a great teacher in my own right, I'm forever a student and in awe of my peers...

Hijacking your post for a minute here.

Mr.Larson,

I know you're big on one liners, I'm using a few of yours(Thank you by the way) So how do you tell someone that you're going to assign their home after you've just said "I've been buying homes just like yours for %50" ???

I'm in the middle of my first deal RIGHT now and I've been procrastinating calling the seller back for the past few hours because I'm worried that I'll talk myself right out of a deal. I'm a people person, but just TALKING to people when you're new is the hardest part of RE Investing.

What I've got so far is: "What I'd like to do now is secure the rights to buy your property up on contract."

followed by

"All that means is You still get exactly what you and I agreed on. I just have the option to sell the rights to buy your property to one of my partners. The only thing to change is, I won't be the one you go to closing with."

Or

"If my situation changes and I choose to, I have the option to pass off the rights to buy from You to one of my partners"

Non threatening I think.

Everyone please throw your two cents in.

OR! Drop me a line if you're shopping in North NJ, or if you would like to be. (Resi or Commcercial, I'll do it all)

Thanks,
Matt

If I may, I am big on choosing words carefully, so obviously I liked your topic!

Only thing I’d change on your first line is that you “secure the rights to buy your property by locking it up on contract for the next 30 (or however many) days."

As for the second line, maybe something like, “At closing, either I or one of my partners will buy your property under the terms You and I have agreed to.”

Hope this helps refine

It's great, any point of view in addition to my own helps tremendously. Thank you.

Way to go CBR.

Your right having the right title company makes the closing much easier. Build that buyers list first then move on to finding deals for them that what it's all about.

Great job Keep up the good work and keep teaching us.
Gene.

Matt I love that a few thousand is still as great now as four years ago. You are so humble! Love it!
Theresa