Minor Setback!!

Minor Setback!!

I just had a meeting with my real estate agent about getting started with the 25:1 system and it seems there's a little set back. My agent told me that i have to have earnest money and proof of funds letter before putting in offers. How do i begin to get this task completed? any suggestions would be appreciated.

__________________


POF

Print a copy of your bank statement showing you have the earnest money funds. Doesn't have to be $1,000 for EM, can be anything you negotiate. $100-$500 is more realistic.

Alternatively, you can use the bank statement of your potential buyer, or a transactional closing company like Coastal Funding. However, agents are becoming more aware of those "generic" POF letters, so a bank statement is your best bet.

Finally, shop around with other agents too.

Good luck!

- Tom


EM

What if I don't have a potental Buyer yet?

__________________

Cbardy43


Build Buyers List First

It's been heavily discussed on this site, but build your buyers list first, so you know what they're looking for.

It's also far easier if you can have your own earnest money first, so you can lock up the property then market to your buyers. Their EM will reimburse you.

Good luck!

- Tom


minor setback

1st thing you should do is get another agent. I never give EMD until my offer is accepted. You can get a POF letter from Best transactional Funding.com. I usually send my POF letter to my agent when I sign the offer.

Hope this helps...Mark


Get a new agent

First when talking with agents and explaining what are you looking to do, do not tell them you are following the 25/1 system, well not at the beginning. Just tell them your looking to do multiple deals so you will be making multiple offers. Second, You can print a POF letter from BestTransactionalFunding.com, works every time for me. Then you can give your agent a copy of a check for $500-$1,000 to submit with your offers. And also you will tell your agent you will not be giving the real check of the earnest money until a offer gets accepted.

Hope this helps

__________________

Reynold Orozco


dont get a new agent

Most agents are required to ask for those items in order to even submit your offer.

Please do not blame the agent for asking for those items.

Here is an easy solution

Earnest money: You do not physically give them a check to make your offer. You just give them a copy of a check. So make one out in the amount you want to use. scan it or make a copy and give that copy to your agent. They can not and will not deposit that. It is just used for the offer. The point where you will actually need the Earnest deposit is when your offer is actually accepted. You will usually have 24 to 48 hours to get that earnest deposit to them. But for now just use a copy of a check.

Proof of funds: You can use a variety of different websites for proof of funds. Google POF and it should lead you to a couple of websites. You can use those letters for now until you have a bank statement to use.

I hope this was of use to you.

with gratitude,

__________________

When you say thank you, you are telling the world that you want more. Say thank you every day! It will bring joy, and it will bring so much more.

www.virtue-investments.com


Copy of EM Check

What do you do as far as the date of the EM check. Use it for a week for many offers and write another? I am not clear on this? Thanks,
Karin


Copy of EM

Hey guys that was very helpful. Now I can get one more step forward! All of you are alwaysn such a big help. Thanks to you I'm going to goole for POF.
THanks Guys fao all your help.
Cindy

__________________

Cbardy43


More on What to Tell Agents

One of the key things that we train on in this program is to build your cash buyers list first. I like to add to that assignment that what you REALLY want is a handful of overlapping cash buyers, buyers who are looking for essentially the same property. If I have 4 or 5 cash buyers all looking for a property on the south side of town that needs minor to moderate rehab, with a FMV in the $200k to $300k range, then I'm going to go looking for properties that fit the needs of this group because when I find it and put it under contract, I'll have 4 to 5 active buyers fighting over the property. That gets your properties sold QUICKLY.
It also sets you up as to what to tell an agent when you first contact them. The conversation would go something like this:
"Hi, my name is Dallin, I'm new to investing in this area, so I need an agent to work with who likes working with investors. Would that be you, or should I contact someone else from your office? (They will always say you should be working with them, and be more committed to you because you kind of took it away from them).
"Great, let me share with you what I am looking for and you can tell me if you can assist with it. Over the course of time we will probably do a variety of transactions ranging from buy and hold, fix and resell, and wholesaling, but for right now, I have a very specific list of criteria that I'd like to forward to you, and have you look at it. If you tell me, Dallin, I can find properties like this for you, then that is ALL I want you to look for, and the more properties you find that match my list, and the closer they match, the more transactions you and I are going to do, and the more money we will both make. But if you bring me random properties that don't match my list, that will be very frustrating to me. Are you interested in this type of arrangement? (They will be because it is very focused).
Excellent, I'm going to forward you an example Proof of Funds letter, and will provide a POF for each property that we make an offer on, as well as an Earnest Money deposit upon acceptance of offer. I'd also like to email you my standard contract addendum, and would like you to email me a copy of the Purchase Contract that you use for me to review with my attorney, would that be okay? Can I get your email address to send these things over to you so you can start a file on me?"
You can also interview and ask them additional questions if you wish, but you will notice that in this short script we have: 1) Told them what we plan to do, and basically not held anything back, confirmed that they will do what we want them to do, and positioned ourselves as professionals who have our ducks in line. And we did it all without dwelling on any of the issues that agents tend to get mired down in. And we told them we are novices even though we sound like the most professional person they have spoken to in weeks. And we will be obtaining a copy of the state approved contract form that we can use in our direct dealings with non-listed properties. Not bad for a five minute conversation right?
Best wishes for your success.

__________________

Dallin Wall
Real Estate Training Team
Forum Blog Location--A collection of my
"Best of" posts:
http://www.deangraziosi.com/blogs/dwall


Dallin

Thank you! I'm going to print this out! Smiling

__________________

Teresa
College Station, TX
**********************************************************************************
"Declare that you will prosper despite every difficulty that may come your way. Don't just survive; thrive!"
-Joel Osteen


Happy to Help

Thanks for your comment, Teresa, happy to be of assistance.
To all, an interesting psychological point that I learned is that the one who asks the questions controls the conversation, so if you launch into some questions before the agent does, you will be able to direct the direction the conversation goes and accomplish a lot more.
Agents are more likely to question us, and doubt our ability to complete successful deals when it appears that we do not have a direction. Most agents are not uncomfortable with making either low calculated offers or multiple offers if they perceive that the person they are working with knows what they are doing and has confidence in their success.
One other point that I think is important, is that I believe in disclosure, I want other people to understand what we are doing, and not be in the dark. I do, however, like to choose my own timing and method of disclosure--too much information too soon tends to kill deals and not get relationships off to a bad start. Just as in dating, you don't want to talk about marriage on a first date, in real estate, you must share information with realtors, sellers, etc., a little bit at a time. An agent does not need to know your whole strategy for success in a first conversation, and will likely misunderstand some portion of what you tell them you are planning to do. Line upon line, precept upon precept, as the good book says.

__________________

Dallin Wall
Real Estate Training Team
Forum Blog Location--A collection of my
"Best of" posts:
http://www.deangraziosi.com/blogs/dwall


I agree with Teresa

This is really got it down to a pinpoint. I am also making a note of it. Thank you Coach Dallin!

__________________

www.tw4homes.com website
https://tvallc.isrefer.com/go/RehabLite/reigirl/ FREE SOFTWARE FOR WHOLESALERS, REHABBERS AND AGENTS! Present professional looking deals to buyers and lenders as well as run your numbers and get the ROI.


Syndicate content