OfflineHey DG family, I'm having a bit of a problem here that I'm hoping someone will be able to help me with. I've set a goal to have my first deal done by July 4th (a good way I think to celebrate my first deal). The strategy that I'm using right now is making multiple low offers on REOs properties using about two different real estate agents. I have about two good solid cash buyers who says they can close fast with cash, just get them the properties, and of course as long as the numbers look good then they'll proceed.
I have a little bit of an issue though that I'm nervous about, I have no money at all in the bank. At most, I can do about $1,000 to put down as a security deposit should one of my offer get accepted. I learned how to draw up a proof of funds letter using a transactional funding company from the success academy coaches. This morning after looking at some REO listings that one of my realtors sent me, I told him that I saw some properties that I wanted to submit offers on and to tell me what I need to get the process going. He replied that I need a proof of funds letter and also a copy of the deposit check. I told him that shouldn't be a problem and I should be able to get that information to him by the end of today.
I'm planning on submitting about 25 to 30 offers over the next several weeks, after talking to one of the success coaches, so I can increase my chances of getting 1 or 2 accepted. My concern here is once I get one of these offers accepted and I've worked the numbers to make it a good deal, what's the best way to turn the deal over to my buyers? I know I can't assign the deal because its an REO, so I'll have to purchase it and then turn around and sell it to my buyer. How can I do that, when the only funding I have is that $1,000 deposit? Will that transactional funding company be able to fund the deal for me, so I can turn around and sell it to one of my buyer? Is that the best way to do a deal like that, or is there a better way?
I could really use you guys assistance on this, as this will be my first deal doing REOs. I really want to meet that July 4th goal. So anyone who has ever done these types of deals before who can offer some tips and advice as to how they did it, I would greatly appreciate it. Thanks so much in advance...
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Andrew
Are these all REOs? You can do the double closing or even bird dog it. Also PML may be a good choice if you have good numbers, someone may be willing to do that if you show what they can make. Have you ever used PML yet? Micheal on here talks a lot of trans.funding.
You still have a few days to put this together, so try and reach him. But even bird dogging would be a good option now. If you need more info let me know, will be busy most of today, but can get back to you later.
Sandi
hi, i have a question im new to thiis what do you mean by bird dogging im basic here but as much information i can have will be very helpfull
thank you
ps i really want to do my first deal any suggestions thank you
Bird dogging is when you work for an investor/buyer. You find the properties and find out the info on the place, and if you can, run the numbers on it. Some investors just need the basic info, and some ask you to get more info. If it is FSBO, you need to talk to the owners and get as much info from them. You get paid from the investor according to what he wants you to get for him. For ex. I had on investor offer me $20 for just the address of every possible place. If I did the calls, I got a finders fee. Another investor gave my a percentage that we'd agree on depending on the value of the property. And he needed me to find out everything and estimates on rehabbing. Basically you locate properties and sell the info. Never give out the info unless you have in writing from them that you found them the place and will get paid if they do a deal on it.
This is a good way to start, as it gives you cash, and you never risk anything of your own. Don't need money down, or credit.
Have you started anything yet, like reading any of Deans books or done any training on real estate?
And what area do you live in?
Wish you the best on this venture and welcome to the site.
Sandi
You need to find a closing agent who will let you do a Double Closing (with Transactional Funding). Have you talked to any Lenders who do transactional funding? I don't mean just going to their website and downloading a letter; you want to have them ready to go... Nathan Street (Success Academy coach) is very knowledgeble about Hard Money financing.
I would give your realtor a copy of your check for $500 instead of $1000-it can be used for all your offers.
You want your buyers to be ready to buy the property as soon as you have it under contract, if not before-don't wait until you're at the closing table; otherwise you may lose the little money you already have...
wishing you success,
Valerie
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...
i appreciate you responding me back thank you very much, and by starting 1 of youre q's i just finish the last day attending the seminar and there was some awsome info. and the other one i live in san antonio tx i hope there is some good business here, like they say money and business is everywhere right, thankyou again very much