Rehabbing( flipping) vs. rentals

Proof of Funds

You can include all of your expenses in your request for proof of funds! When you double close, the b to c transaction should be discounted! The fees can come out of your gross profit at closing so those costs should be figured into your buy price. We try to keep the fund request as low as possible!
The website is $49 a month but you do not have to keep it to have access to the funding after you join and put down the deposit. The first 90 days are free.
I kept the website because it is a GREAT tool and I use it every day!

Michael Mangham
MD Home Acquisitions LLC

http://www.mdtfcam.com

I don't know if anyone will disagree with me, but I know what it's like to be in a bad position financially. Actually, I consider my situation bad, but yours sounds worse than mine, so maybe I don't know. All I know is I squeak by every month. Right now, I've got my wife to help out and I may even ask my parents for little help. If no one helped, I'd have about $20 for gas and food for the month. NOT GOOD. I'm scared about that every day and have lived paycheck to paycheck for so long.

I know that the Success Academy is probably a very wise decision, but you have to be willing to be in it (like anything else), and more encouraged than stressed by it. It's easy for people to say, "You just gotta drop all your fear" and so on, but it's not that easy when you are that broke. It can be a great motivator, but if you are the type (like me) that needs to get yourself set up and wants to feel as though they have a solid footing, it's hard to do when you're broke and getting into more debt at the same time.

But all that aside even Dean says, and I think you can agree, that there are so many resources right here, so many people willing to help. Being in the Academy will not determine if you fail (which we all will at some point, it's called learning) or when we ultimately succeed. Your commitment will.

I know, I'm not stupid. I did what I had to do, right? So, I'm moving on and not stopping until I get something locked up and done! I WILL do it! Thanks for your encouragement, it means a lot to me I hope you're doing well and getting over your fear, but the way I see you is you're a winner and you'll make it soon! Honest. I can tell. So, don't forget us small ones once you've hit the top lol.

Flipping will make you rich, but holding will make you wealthy.

RJB
www.****
Free Real Estate Lead Generator

You are so right about holding. However I would say not to move into that strategy unless you have around a $250,000 bankroll depending on the part of the country you are working in! Or you have 20% down and a 620 FICA with an established job. Maybe you could get 4 or 5 properties that way. Lease/purchase is what will work for most on DG.
Private money is really the answer but most people on this site are just trying
to get off the ground so their best chance of getting to a buy and hold position that will actually make them wealthy is by FLIPPING or lease/purchase.
I know many people here have buy and hold properties and they are not wealthy! They have multiple head aches however! To reach that "wealthy" stage you need about 50 average cash flowing properties. Build your cash by flipping, find a private money source, then invest in buy/ hold!! Real estate is the way to go!!

Michael Mangham
MD Home Acquisitions

http://www.mdtfcam.com Transactional (flipping) fund site

Just picked up this thread today and appreciate the kind people who are sharing this wealth of information. I'm a newbie too and have been putting my "team" together. The info on transactional funding is great.

Sandra

I know we are all beyond stuggling anymore. I lost my job 2 yrs ago, no longer get my unemployment, and after 28yrs of working in ICU's and I also rescued horses, One horse "throw" and my life changed.
But I understood the basics on RE investing. And you may have read how another investor lied to me and he walked away with $14,000 that should have been mine, but I was afraid to do a contract.
I haven't done my first deal yet, but I did start stopping at any FSBO and just walked up to the doors and started asking about the house. I now have 3 homes I am working on. He wants $235,000 and it is assessed at $276 for taxes. Beautiful home, 3 acres in horse country. But I won't quit. Tonight I just stopped in by him. This time we discussed the roof and painting. Still don't have a contract, but I was raised on a dairy farm, and still worked on a farm till 2004, and he is a farmer. So a hand shake and a smile and talking John Deere tractors vs my Allis Chalmers, keeps him talking to me. I intend to ask him again about a price and maybe a contract. Tonight he sounded more willing.
You need to just start talking to everyone!! Don't sound like you "want to try real estate." Say you are working with other investors and look for homes for them. And that you also are looking. That way if they think I am not sure of everything, I have partners that are.
Even if you aren't sure, go to auctions and watch, and I get cards from everyone and most answer a lot of questions I ask.
So Deans blogs and all the stuff you need is here. If you print out a contract, just ask your Realtor if this acceptable in your state. Or better yet, ask if you could pay them to help with the contracts.
Your finances aren't stopping you at all. It may be the thing that finally gets you moving.
My daughter and I used to sing a song from Childrens Bible Hour, and one lyric was, "God does not compel you to go against your will, BUT He just makes you willing to go!"
Wish you the best.
Sandi

"You can include all of your expenses in your request for proof of funds! When you double close, the b to c transaction should be discounted! The fees can come out of your gross profit at closing so those costs should be figured into your buy price. We try to keep the fund request as low as possible!
The website is $49 a month but you do not have to keep it to have access to the funding after you join and put down the deposit. The first 90 days are free.
I kept the website because it is a GREAT tool and I use it every day!

Michael Mangham
MD Home Acquisitions LLC"

Thanks Michael... Hey, what ways did you use to build your buyers list...

Dan (Mcarlo24)

I built my buyers list by going to REI meetings, seminars, hard money lender meetings, going to the public trustee auctions. That way you are meeting REAL cash buyers not another newbee looking to assign your deal and has no real buyers himself.
I also ran ghost ads on craigs list using the squeeze page websites that my transactional funds lender provides. I still get 2 or 3 a week running those ads. However they are no longer ghost ads, there are actual properties listed now! When a buyer provides his info it goes into your list and you can email them with all your properties as soon as you get one under contract!
We blast out our deals to several hundred cash buyers all at once!
We have bird dogs sending in vacant properties they find, photos and all, we research and when we get one under contract we blast out the property, pictures and all! Watch the presentation at my website if you have not already, it explains everything http://www.mdtfcam.com

We also have Dean's SFL and that is an awesome program also. The "automation" is great and works alot like ours. But there are somethings that one does that the other does not.

Together, you don't need anything else for your REI business. Buyers lists, Sellers lists, the ability to add your own properties and buyers at any time, websites, the transactional funds and POF letters you need to offer on REO and short sale properties and double close. We use the POF on all our offers not just REOs and short sales, adds to the offer, shows you are a serious buyer!

Good luck!
Michael Mangham
MD Home Acquisitions LLC

Thanks for answering so quickly... I did review the webinar and I like it alot... I will be sure to register through your website... BTW... Thanks for talking with me...

Dan (Mcarlo24)

When you double close, the b to c transaction should be discounted: Can you please explain this? Is it discounted by you? I'm a little confused, well alot confused.
Also, Are you charged the points if a deal does not go through?

You stated:

**************
Cheap properties - The distressed REOs I find are always through a realtor. I always have a 7 to 10 day inspection period in the contract. If I can't find a wholesale buyer in that time period I give it back and get my earnest money back. I have only had to do this 1 time however because I don't buy unless it is a killer deal.

*************

In your inspection contingency, do you state something to the effect that if the inspection is not satisfactory to the buyer, this contract can be voided and EMD returned ? Or do you put in a small dollar amount for a repair limit ? Reason I am asking is what if the house really has very little wrong with it (cosmetic only) ? I just want to make sure the bank couldn't give me any problems if I want to back out due to not being able to find a buyer in the 7 to 10 day period.

Thanks,

Tom

Bobbymac and Debbie,

You are doing the a to b and b to c closing with in a matter of hours so you can negotiate (open title policy) Title Ins. and other costs with the title company. Not quite 2 for 1 but you can get some price reductions if you ask!

TSJ.

It depends on the contract and the way it is written concerning the inspection period. Sometimes the lender will have the opportunity to fix the problems found during inspection at their cost so your earnest money will be at risk if they say they will fix the problem themselves so you have no inspection issues. Most of the time you can state that repairs were way more than you expected so you are canceling the contract within the inspection time line.
The key is totally understanding the contract for that deal.

PM me if you wish. I'll be glad to help if I can. I guess this post was really about flipping or renting and I got off on transactional funds and stuff. So, sorry everyone!

Michael Mangham
MD Home Acquisitions LLC

Michael Man

So its very important to have buyers ready when doing REOs?
Will I double close a house as is or will there be a way/time to spruce it up.

As always, thanks for great info.
Still nervous.

You need your buyers in place if you are wholesaling. That is the reason you double close an REO, because you can not assign one.

If you double close an REO using transactional funds you must have your buyer in place first. Actually, you can not do any type of double close without a buyer. That's what a double close is, A to b then b to c usually the same day.

You do not do any work on the house when you double close because you only have
possession of the house for a couple of hours at most.

Michael Mangham
MD Home Acquisitions LLC

http://www.mdtfcam.com Transactional fund site

I've got a quick off the wall questions.
With a double close, does this affect your credit score? If you owned something then, "paid it off" does this reflect in your credit profile as a paid off mortgage after the double closes occurs?

Great Question, I didn't even think of that. I hope we get an answer soon.

It does not affect your credit score because 1)you never opened an account with a financial institution that reports and 2)the transaction never is reported to any of the credit agencies