OfflineDG Fam,
Just want some verification on Matt's 25:1 system... So, you only discount from the asking price, whether it's 20,30 or 40 percent below once you figure out what's working in your area? No contacting the seller right? You don't include rehab estimates on those offers correct? Then when you get one accepted you go and do your due diligence as far as rehab estimates and make adjustments to your offer? I hope I got this figured out....
Bernard
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Also, how do you determine which deal is good to put an offer on in the 25:1? Example: You done the filter Matt explained (vacant, as-is, price reduction, etc). Filtered the specifications as far as bedrooms, starter homes, hot zipcodes. NOW.... do you place offers on all of them that come from that filter? Is there a need to get ARV's on them first or no need to worry about the ARV's in this system up front?
Bernard
& click on my picture to see MY PROFILE FOR SOME HELPFUL tips. I have matts 25-1 videos below watch those and he will explain it to you. it would also help tremendously if you filled in your bio on your profile page. it helps us to know where you are from and a little bit about you. you can do this so try not to get discouraged. come here and ask your ?'s and get back on track.
WALT
Walt,
Awesome!! Thanks for those links! Helped me so much!! You guys on DG are just beyond amazing! I feel more and more confident and prepared when I receive such support from this family!
Continuing the Journey,
Bernard
hey bernard just so you know. if your able to join "INSIDERS ELITE" ALL of Deans books are there for free and in audiobook form as well. all books are available in audio form except "30 DAYS TO REAL ESTATE CASH" you have to join insiders elite to get it in audiobook. while i read very well of course i enjoy listening to the audio's and following along or listening while i do other stuff on the computer.
WALT
Yes you got it right. Find out where your market is when submitting offers, some markets 20% off asking price others are 15% off and some on. You will not contact sellers because you can't, your making offers with an agent and thats her job. Then when one offer gets accepted you due your diligence on the property to get the repair cost and ARV, if the repairs are more than what you discounted on your offer you simply just reconsider your offer and make an lower offer.
Reynold Orozco
I still don't understand why Matt is always being credited for the 25:1 system. Isn't this how Dean found success? Or did he have another approach? I mean, he was successful before teaching it to his students so what was Dean's original method if not the 25:1?
P.S. - Everything else is immaterial, irrelevant, and unnecessary.
reynold basicially said it, depending on your area, for example here in san diego I would offer prob 90% of asking the market is soooo tight only 3 mo's worth of inventory.
KC is diff there is 6 mo's worth of inventory there so I would offer 70% of asking, so depending on where you are, these are the tweaks that we are doing while the market changes ok.
But yes we make the offers without figuring ARV just making multiple offers & seeing what hit's. Another thing to do with this system is offering on the HUD props right at the time they become available to investors because they are only available to owner occupants the 1st 30 days or so. when they become available that day have you agent put that offer in(you have to see when the date is it becomes available in the mls in the remarks & calendar it tell your agent too)
then you offer on it, they take the 1st acceptable offer usually hud does, i got one of my deals like that.
Tony
Go faster do more! GFDM!
the ones you make offers on fr: the vacants as is & price reduced are the one's who have in the comments: needs work, tlc, handyman special, diamond in the rough . those you offer on, pass on the others.
Tony
Go faster do more! GFDM!
Alright guys.... Now I get an offered accepted, get the contract signed and conduct the due diligence. Now when I get the repair estimate, do I make another offer minus repair cost AND MINUS WHOLESALE FEE I WANT TO MAKE?? I'm really confused on that one.. Or do I make the initial offer minus discount, minus wholesale fee, then do repair estimates?? Every time I think I got it, something else comes up in question.. Where do I implement my fee I want to make on the deal? During what stage of acceptance??
Bernard
When you make an offer, you should have already factored in your fee.
In one of the Chats what Carol Stinson had mentioned that when she makes an offer she factors in
$25k in repairs. Also the pictures of the house can show the condition of the house.
Wish you all the request.
Regards to all
Bimal
Wish Everybody a great success in their Real Estate Business
Don't over think it..
Find out what your buyer wants and go get it..
Subtract all cost and yes your fee..
Its not going to be easy and yes you will get told you cant do this and blaa blaa blaa...
Its the truth some like it and some don't...Just keep in mind what your goals are and WHY you are doing this and "BAM" you will get that first deal and nobody can stop you...
You can do this.....
Aaron