Question on Matt Larsen's 25-1 System

Mark -

I don't have a template on hand at the moment. I want to answer a few questions real quick.

1. When mentioning that the properties value has been compromised due to foreclosures in the area. You don't need to provide any proof. This is a psychological statement to open up their mindset to be ready for your lower offer. There are many ways that you can say this, one example would be "Due to the numerous foreclosures in your area, I have had to adjust my offer to stay within current market values for the neighborhood"

2. Contingency clauses are for the actual purchase contract only

3. Question #2 - the answer is yes and no There are investors that push out mass offers using a blanket percentage and hope that something sticks. This strategy works. If you are new to investing, I wouldn't recommend this strategy because you are cutting corners and you really need to learn to crawl before you start running. If you run too soon, you risk stumbling and it can come at a price. Start with 5 offers, do the research and make your offers the right way by running the numbers through the following formula:

FMV - Fair Market Value
- Closing costs
- Rehab costs
- Holding costs
- RE Agents Fee
- Profit
=MAX OFFER

Once you have deals 1-5 behind you, then you can start to streamline the process but be careful when you are cutting corners.

The key to the 25:1 is to follow it. Don't stray from the formula. Matt has it so dialed in that if you follow it, you will get a min 1 offer accepted out of 25. If you skip or leave out any part of the formula then you are pushing your odds out to 30:1 or 50:1 or possibly 150:1. Don't make that mistake. You don't need to reinvent the wheel. Follow the steps and you will have success! Matt has proven it over and over and over again.

I hope this helps a little

Happy Investing!

Karen

that you gave is it for rent/flip or wholesaling?

Agents

I talked to a agent on the phone he said he has worked with investers befor and I ask him to send me
If you can find 100 potential property's in Northern VA
SHF/ Townhome / Condo (with low HOA )
Looking for
Motivated seller
Reo
Bank- owned
Sort sale
Pre foreclosure
Handyman special
Vacant
On Market for along time over 90 days or more
Selling price below average
Property that looks like no one is maintaining it anymore
Lower then average property taxs

every day he sends me emails for move in ready listings in the 700s so today I called another agent I told her I was wholesaling propery and I have two cash buyers I would like to work withher and could she find homes in N.VA for sale as is that are vacant and has had a price reduction 30 to 50 listings that met this Criteria
OH BOY SHE LOOKED AT ME LIKE I WAS FROM MARS. She said she could find what I was looking for but.... She usally worked with the cash buyers herself she asked where did you find them and all I said with they contacted me.again I was looking for a agent that was willing to work with a invester she said she have to talk to her manager Boy oh boy this is not easy

Hello DG Family,

I am trying to really understand Matt's 25:1 offer strategy formula and I have a question I am hoping you can answer it.

Matt mentions that we need to make offers at 30 to 40% of listed price( depending on our market). My questions is, do we run comps to determine the offer price or do we send an offer only based on the listed price less the percentage amount that I need to discount?

Your help in the matter is greatly appreciated.
Thank you and I look forward to your response.

Best Regards,

Ellie Verdura
Home Rescue South Florida
786.853.4004 Direct
800.311.5822 E Fax
Greatly blessed, Highly favored and Deeply loved...

I'm new to RE investing and I've spent over $11K on "RE education" and now don't have money to do deals. So, I need to wholesale properties. Also, it seems there are always details left out so I'm writing here to hopefully get some answers...

I read Dean's book "30 days to real estate cash" and have watched the videos. I now have a handful of RE cash buyers, and have tracked down an investor RE Agent. Now I'm implementing the 25:1 strategy.

I've given the agent the 4 criteria (3bed/2bath, starter homes, as-is, vacant, with price reduction) and the agent has sent me a list but they include REO Auctions. From what I understand, as a wholesaler we need to be able to assign the contract - and banks don't like that. Also, I believe there are restrictions on how fast you can sell a property and how much you can make on the deal if you buy an REO.

Is this mentioned in the book somewhere and I missed it? Are we supposed to filter out REOs as well or is there some way to get these deals with no money down and assignable? Now that I've built up these relationships I don't want to lose them because of a lack of knowledge.

Need help asap.

Thanks,
John

If you've spent over 11K on RE education, hopefully you don't have to rely solely on the book anymore. You should be able to contact the coaches to get the answer.

The list price means nothing. You must discount it from the comps. But first you must run it through the formula.

Hi John,

Regarding REO's, that is correct, 99% of the time they are not assignable, and in addition there can be restrictions on when you can resell them. There are other methods to purchase them such as buying through an LLC and selling the LLC. Others have written on this site in detail of that process.

A lot of people like to work with motivated FSBO's too, not just the MLS.

Hopefully that helps and good luck to you!

-Tom

Thanks. Does anyone here use the 25:1 system with RE Agents and the MLS? If so, what do you do when the agent gives you just REOs and Auctions?

Jacksonville, FL is one of the largest cities in the country and using Matt's 25:1 filter with the real estate agent and using 6 zip codes only gave me 4 listings. Matt says in the videos that you would be getting about 50-60 listings to choose from. Am I doing something wrong or is the agent?

Hmmm. I would if I knew for a fact that they were working with Dean. I'm testing out the viability of the 25:1 system as outline in Dean's book. You are supposed to get cash fast in 30 days using this system but so far I haven't seen it work - there is no mention of what happens if you get REOs from the Agent, if you are supposed to filter them out, what you're supposed to tell the agent regarding REOs, etc. The cash buyers I have, can buy REOs, but how do I get those to my buyers without locking them up with a contract first? Can you only bird-dog these deals for a small fee? I'm writing this group because you are on deangraziosi.com and this forum question is talking about Matt Larsen's 25:1 system. Is there somewhere else I should be asking on this site?

Hi John,

I see lots of advice here on how to make it work. It's been mentioned that you can lock up a REO deal with a LLC and then sell the LLC to the Cash Buyer. Most cash buyers are familiar with them and an attorney can make sure it's done right. The important thing is that you find a good deal and get it locked up with your LLC as the buyer. Regarding the amount of listings your agent finds, Los Angeles is similar to Jacksonville. My agent is working 4 different counties to find me properties that fit the filter. Go bigger, change the venue, due whatever you have to and stay in the game and stay positive!

Rick

see my signature for the videos