Questions not answered totally in the book on assignments

Questions not answered totally in the book on assignments


We just purchased Dean’s excellent book called: “Be a Real Estate Millionaire” we are very impressed with it and believe that it is totally possible to do those things talked about in the book.
My wife and I and our 2 boys, oldest 17 and youngest 15 are going at this like we just formed a business together, the 4 of us, so when we got the book we all took turns reading it and then when we finished we formed a “round table” discussion and tossed our ideas and questions and fears around, none of us know anything about real estate.
This post is about a few questions we have that we couldn’t really find any answers for and were hoping they can be answered here, I must add that we also read the “The Dean’s List” we received with the book which answered even more of our questions but not allJ
After reading the book we come to the conclusion that the situation we are starting in would allow us to do assignments up until we had the cash to move into other areas of investing, so these questions will be solely based on the premise that we are doing nothing but assignments.

Question 1: What is to keep the investor you find or “buyer” from contacting the seller behind your back after you introduce him/her to the property and make a deal after your “lock up” expires on the said property, especially when the investor can save thousands by going around you and make the deal directly with the seller, if he/she is willing to wait until your “contract” expires with the seller?

Question 2: This question sort of ties in with the first one, when you close the deal how do you hide what you paid for the property from the buyer, so lets say he/she sees you paid $50,000 for said property and you are selling it or assigning it to him/her for $60,000, why would they go through with the deal when they could wait and talk with the seller which now they know who it is, and deal with them directly later and save $10,000?

Question 3: Setting up your network, this was our biggest fear of being able to achieve, when searching for a “ugly house” that need the skills of a handyman to give you the proper estimate of all the repairs needed, lets say you get him to give you a free estimate, call him out to take a look, he gives you all the details you needed, no charge, most of the handymen around here do that, they give free estimates. Ok so now your all set, now to fast forward lets say you assigned the property to the buyer, got paid and all is well, you even told the buyer who gave the estimate on repairs, but the buyer decides to do the work themselves or get another contractor to do it.
The point of the question is, next time you find and “ugly house” you won’t be able to use that handyman again for a free estimate or maybe any estimate because you didn’t give him the last job he came to look at for you, so how do you get your repairs estimate on properties without killing your network building after the first use of it?

Question 4: Pertaining to network building again, getting close or tying in with a real estate agent, where we live, northern Wisconsin there are a lot of vacation homes and property and the agents don’t really like to help you or spend the time unless your really going after the “big profit for them” properties, how do you find or get an agent to spend their time with you, or even open their doors to you, and better yet stay openJ

Question 5: How do we find out the closing costs on a property , this would pertain to a house for sale by owner set-up, no real estate agency, how would you find out the costs to do all the legal work on this property ahead of time to be able to figure it in the total cost of the house before knowing what to tell the seller what you will pay for the house, in other words figuring out the total cost to see what kind of profit you and the buyer would have with this deal.

Sorry for the long winded post but these are our biggest fears and concerns, we live in a small community and it wouldn’t take long to kill your network if you did something wrong, we’d have to go way outside the area and start over again, forming a network being our biggest fear and stepping stone.

Thank you all for your help and thank you Dean for opening a “big” door for us to be able to better ourselves in the future, the book is a real eye opener to say the least!

And we continue to read the endless information on this site, we have learned more about real estate in this last week then any of us ever knew:)


some answers

# 1 - You want to get a list of more then one buyer. So if He/She does walk out on the deal you can present it to another end buyer. Advertise on craigs list and for investors. You may get some bites. then build your buyer list.

# 2. I don't believe you can hide the profit from them unless you do a double closing.( that is another option).

#3. If you can use a couple of different handy men for different homes in the begining you will get around it. But i would say if you are closing deals it wouldnt be a bad idea to agree on a price with a good one that you can use in the future to do the work on the homes you may keep.(my opinion only).

#4. Talk to as many as you have to until you get one that is willing to work with you.
#5. Your agent should be able to to give you all the round about figures. But if you are assigning deals, don't worry about that now. That will come later.

Hope that helps. I am sure others will give you even more info. good luck!


Hello! First let me welcome you to the DG Team! Congrats on taking your first step by buying the book, and congrats on taking the next step of Reading and discussing it! I encourage you to continue asking questions cus that knowledge applied with action will lead to your success!

Also let me also begin with recommending that you apply for Dean's Success academy because of their UNBELIEVABLE coaching/mentoring program! In this training course, it will explain a lot of your questions more in depth and if then you still have concerns, your coach will be able to guide you through them, because they themselves are REI! They will also help you get your business structure set up so that you can more inclined to tax breaks and so on and so forth!

Now to quickly answer your questions, I am too a novice, however I do have a note finding business that I have been doing for about a year now. It is a different way to start off my REI career, but still a good one. I bought and read his book not too long ago because it was time to step my education to better prepare myself for the next stage of investing and I have fell in love with wholesaling, "assignment of contracts".

1) First thing is first, Your first big step is to build up a STRONG, COMPREHENSIVE, LENGTHY list of investors and/or retail buyers (first time home owners or the occasional home buyer) to market too. Here is the reason why. COMPETITION! If you have 30-50 buyers and you get their criteria of what they are looking for, find those properties according to what they are looking for, lock the property up, and then lets say in those 30-50 people, 10-15 of those people the property you have locked up is exactly what they are looking for, you have just created a competition for a bid war. Now, those who choose to wait till you contract is up, will loose out cus no matter what happens, you will have someone lined up to buy the property from you. So find your buyers first! You can find many forums on this web page on how to do that. Your best bet to get formal education is to sign up for The Success Academy!

2)NEVER EVER under ANY CIRCUMSTANCES hide anything from the people you are going to do business with. This is an ethics thing. Remember, you are in this for the LONG TERM. If you try and hide profits, people won't trust you, and the REI world, just like the tennis world, is small and you dont want a bad rep. So with that said, be up front from the start! Tell your buyers (especially investors) that you are relatively new, that your starting your REI career wholesaling properties. Until you make enough money to move on to bigger and better things! With retail buyers, they don't need to know because you can use a SIMULTANEOUS CLOSE, but of course be fair. If you find a home 50-80% off FMV, try selling the home to them with some equity in it. That way its a big marketing piece for you and will get more people refering to you for business. A simultaneous close is also explained in forums throughout this website, as well as in the book! (ps, simultaneous closings are a way to hide your profit, but try not using it with investors..again they wont trust you)

3) It is great that you are ready to set up your team so quickly, however this early in your stage of investing, a realtor/handyman aren't really needed. You need to get good at make assessments so that you can figure repair numbers into your quick cash formulas. So use the handyman the first time on your first deal but walk through with them and ask them questions on what to look for and how much repairs usually range. Remember you are only selling your rights to purchase the property, not the property itself. The end buyer will be doing their own due diligence before acquiring the property at which all those costs will be taken care by them (including closing costs). Secondly, if you want to know about closing costs, just ask your local realtor of the process and how closing costs are calculated. Talk to a few of them, even call a few title companies and have them explain what is included in the closing process, esp the costs associated. That way you can have any necessary knowledge to make accurate calucaltions on your end. When it comes to that particular repair man, tell him as well what you are doing. Tell him that a short term assessment will lead to future deals! If he is a smart and savvy businessman he will know that when you do business with anyone, you are looking for "repeat" business, not just a one time sale. (Hence the reason I advise being up front with your buyers. You want your buyers to keep coming back to you!)

4) Join Real Estate Investing Clubs, network yourself their to meet more investors and talk to them about what you are doing. Try to get them on your buyers list. At the same time, talk to them about what realtors they are using in their area. Get the names and numbers of at least 10 realtors that are investor friendly/are investors themselves/and are friendly and good to work with. Out of those 10, choose 3-5 good ones to work with! Again, you don't really need them now, because if they are involved, they will want their cut which will take away from your profits, however they are good for the MLS. But of course you can use them, your choice. BUT DEF do find one for later! So network network network!

5) Was answered in question 3 - but talk to a real estate attorney as well though, especially about the real estate laws in your state. Sometimes how you do a deal requires certain things, so you may want to make sure you understand what the laws are in your state.

Anyways, my suggestion is take advantage of the mentor/coaching program. I would suggestion making contacts as soon as possible by join REI Clubs in your area, putting ads in your local newspapers, signs and brochures up in public areas (know your local laws), ads in free online classifieds, and tell everyone you talk too what your are doing.

Most importantly, do not quit, give up, or let other people steal your dreams from you!!!

Hope that helps!!!!! Good Investing =)


- The Copy Ninja

Cash Flow Financial Solutions, LLC
a subsidiary of Halo Enterprise Inc.

"Make a distinction between being interested and being committed. When you are interested in doing something, you do it only when it’s convenient. When you are committed you follow through – no matter what – no excuses. – Mike Krzyzewski , Duke Blue Devils

WOW!! What a fast response,

WOW!! What a fast response, I went reading on this site for awhile and then I came back to check my post and I seen these two very helpful posts, you both cleared up a lot of questions for us, and we are seriously considering that "mentor" program here you mentioned.
Thank you for the help, at first I was worried about putting in such a long post but now I see it was more then welcome:)
We will keep reading and posting and we will definitely let you all know how our REI goes:)


Here is a great post for assigns from Anita.

Thank you, that is an

Thank you, that is an excellent thread, Anita really knows her stuff! I have never seen such an information filled, helpful site before on the net, such a positive atmosphere here, how can one go wrong:)

Important to lock up the deal first...

It's important to lock up the deal first...once it's under contract then market the property to your end buyers (show photos, show them the numbers).
This is the goal of a wholesaler: to get a property under contract first.
You will have several week's time to market to potential buyers during your interim before closing (include this in the terms of your contract w/seller).
The contract ensures no one "steals" it from you.

Wholesaler Commandment: "Know Thy Buyers!"
And then go seek what THEY want to buy!
What are their investment goals? What's their criteria?
Are they tenant buyers or rehab buyers or buy n' hold investors?
Incidentally, that makes TWO different buyer "buckets' as Dean puts it.
Run ads for both kinds. Laughing out loud
~Hope this helps.


Happy Prospering! ~Kat, Liberty Residential Investment Acquisitions
• "To every thing there is a season, & a time to every purpose..." ~Ecclesiastes 3:1-8
• "Inaction breeds doubt and fear. Action breeds confidence and courage. If you want to conquer fear, do not sit home and think about it. Go out and get busy!" ~Dale Carnegie
• "Begin, be bold, and venture to be wise." ~Horace
• "Never, never, never give up." ~Winston Churchill
• "Whatever you do, or dream you can, begin it. Boldness has genius and power and magic in it." ~Johann Wolfgang von Goethe

Welcome to the site

Goldpanners!! LOoks like you have some very good answers here already. Yes, the questions you've asked have been talked about on here. One of my recommendations then would be to start going through all the old posts and you will find a wealth of information. Best wishes!!

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