Ask Matt Larson A Question

Just watched the behind the scenes info from the Edge. At the end of that disk, it ends with you and Dean going into a bank and redirecting the bank to be in the hot seat instead of them, but then its over!!! It didn't go into what they talked with the bank about, what questions they asked the bank, and if they ever ended up showing their financials to the bank.

After you guys told the bank you were going to ask some questions to see if they were a good fit, what questions did you ask them exactly and what took place afterwards? Did you ever show your financials on the first visit? Thanks Matt!

I am going to attempt to go meet for a loan, but I will have to take my 4 kids as I have no babysitters or family to watch them. I know this isn't a good idea, but I need to get out there and do it somehow! I want to go in with all the right questions so I can make it as quick as possible so the kids don't have a chance to get into trouble!

Matt answered that this was correct, however I have a question. If this is an assignment of a house from a FSBO, couldn't you sweeten the deal if they are apprehensive selling with a low FMV with waiving the agent's commission and you pay your agent a fee from your own fee?

I know that I take my girls with me where ever we go. They are in the background when I call and yes I take them to even view properties.

I read this amazing book that helped me feel more comfortable about doing that. Now it has nothing to do with Real estate but it does have to do with running your own business.

I enjoyed every minute of it and it helps keep me inspired too. Its called Mommy Millionaire. she takes her child with her to meetings, attorneys office and so forth. Remember these people NEED YOU. You are paying them. Having children shouldn't matter And if it does move on to the next

Matt

Two questions: 1. On the MLS info from Realtor of sold properties instead of "Cash" it says ""other. Any idea as to what other is and would you market to them? 2. Also while at the county website looking up the owner's name any other info worth noting that you have found useful besides the address. Appreciate you sharing secrets.

Thanks,
Theresa

Question about page 114 and 125
Page 114:
In the fax/email sheet for finding an agent, Matt says "Because of the money backing me, I have set the goal to buy 100 properties within the next 12-18 months"

What backing money is he refering to?

on page 125:
In the summary to sellers, it says "...I've got buyers with decent credit that could not get funded through traditional channes, but my connections can help get them a loan..."

What connections is he refering to?

Thanks!

I think on p114 he is referring to money held either by himself (as he gained wealth over time) or hard money lenders, private money lenders, and the cash buyers on his buyers list.

On p125, I assumed he was referring to a mortgage broker, who helps find loans for people who may have been turned by a bank previously (for bad or so-so credit, for example). The broker has contacts with multiple lending sources and can get loans for these people.

I'm having a heck of a time retrieving this from real estate agents.
Have any suggestions or are there some other successful methods in building a buyer's list?

Secondly, what was this formula used for: Cost of rehab divided by value of
property after rehab? Is this right or is this not the formula? Anyway,
please help. (Using example of $5,000 commission on one of the last assignments you did where you offered a $7,000 rehab on a $54,000 assignment purchase.

Thanks,
Kathleen

Thanks Kevin!

You're welcome. Anytime!

Wow, first let me say I am a real fan of yours sir!! I have watched the 2010 edge videos and I am in the set for life program,. I am setting aside a minimum of three hours a day for real estate and I will be visiting some local real estate agents on the south side of Chicago this weekend since I have this weekend off so I can hopefully locate the best RE agent I can to work with in my investing. I am just having a a difficult time deciding on which strategy to follow. People are bringing deals to me now and I am in the process of looking for a local no seasoning refi bank but I am wondering should I try to combine the Lorina and Greg Murphy strategies or should I just concentrate on one. I know I need to build my buyers list and I am working on that now but I guess my question is where should I take my first bit out of this elephant we call real estate investing and how do I get that first bit out the way so I can start to tear that elephant to pieces and be on my way.

Hi Kev,

keep up the good work in answering the questions here as it lokks as if matt is gone amongst the missing again.

George

I only hope I don't lead anyone astray, but I think I just tend not to answer when I really don't know, so no worries, I guess.

I noticed you answered many in the past and this may be the first thread I began commenting actively on, following your example, so back at ya! I assume Matt must be as busy as ever, so it's to be expected. Hope my day comes for being that busy (but that successful, too!).

Although I will have to say that I need to watch how much time I spend on the site...sometimes I I get a lot done for others and maybe not enough for myself! You take care and feel free to write me anytime!

Thanks Matt and Dean. I only sent out 20 buyer letters so far ("I'm an investor and find properties... would like to run the numbers by you if I come across a deal... etc.)

I already got a call from a cash buyer who wants to talk tonight. I don't really know what I'm doing yet but will keep following the path until I stumble my way into success
It's one thing to see it work for others but when it starts to work for you it becomes real. Am I nervous? Heck yeah. Can I stop and turn around and quit, no way. Gotta move forward no matter what happens. Keep moving.

What do I do next? I call the guy and read a script that DG helped put together called "what to say when a cash buyer calls!"

To anyone new, just follow the steps of each recipe. It's all there and the next puzzle piece will be there at the right time. Why? Because Dean and his students have built the puzzle already!

Keep learning and applying something each day and those tools will come in handy.

Type a few letters, start building a buyers list, print out a small community bank list, apply one thing today from a DVD or book. Just make sure you don't spin the wheels too much in one place without a little progress toward the real goal; your first deal. If it takes you closer do it. If not move on from that task.

An Expert Was Impressed:

To illustrate the great strategies we are learning from Dean and his students... I have a real estate friend who lives in DC. He went to Wharton, has a degree in real estate, worked in the industry for years, works for congress regarding real estate, also has a degree in city planning, the list goes on. Now here's the kicker, so pay attention...
I started mentioning some of what I learned, sandwich lease options, private lender to buy then refinance with a no seasoning loan strategy, etc. All stuff from the books and this site. Here's what the expert told me:

"I'm actually very impressed by the real estate knowledge you have learned so far and some of these strategies. I didn't know some of this myself and they sound like good ideas."
Is that a testament to what we're all learning from Dean? I would say so.
Is the "expert" going to partner with me? Already talked about it in the past, but now these plans are even more solid now that he sees I'm not messing around
He told me "he does want to work with me."
Lucky guy. And I'm talking about him of course

-Vin

What have people been doing, Success Academy, Set for life, Edge videos??? which program is better? i feel like it may have the same information but whats best if im looking for more guidance to actually take my first step into the real estate investing world. ive read lot of the books and forums and learned but need support to assure im making the right decisions. any help or feedback?

Hard to say which is better. Ask anyone using any of them and they will have good things to say. I have Set For Life and have dabbled with it but have a little ways to go before I can truly take full advantage of what it offers, but it will be a a fantastic tool. If you would like, I can send you an invite to something similar (not exactly SFL, but similar). PM me if you wish to consider this option.

The books:
1) Profit From Real Estate Right Now. Read it. REALLY got me motivated! Lots of specific information on marketing, techniques, and bringing buyers and sellers to you.

2) Be A Real Estate Millionaire. Read it. REALLY gives good base of information on types of real estate, knowing the market you are in (a major premise to being successful anywhere, anytime), different types of loans, overcoming personal obstacles to success, and the basis of Dean's techniques for buying REOs, pre-foreclosures, short sales, assignments, and lease-to-own.

These two books will cost you $20 (look on the left side of this page!) and are well worth the money.

Taking your first steps into the REI world is probably more a leap of faith (one leap that I'm still trying to gauge the distance on...still a little scary...) but to "actually take your first step," no one but you can say when that is. You just have to try at some point.

3) The Edge Videos: lots of great information. For me, without having the books (at least basic knowledge from any real estate investing book), I might have found things a bit more difficult, but there are great, specific tips in there.

But guess what? In line with being able to "actually take your first step," those tips do you no good unless you (eventually) act on them.

4) You mentioned that you have read many books and you have read the forums. Maybe you already have everything you need. Maybe you only need ot organize it. Make a list. Take it one step at a time.

THAT is how you take your first steps. One at a time. Remember that 99% of the people on this site will help you out and back you up in any way they can.

Good Luck

Hi everyone! I wanted to start a post where anyone can ask me a question. I will do everything I can answer each and every question. I haven't been posting much lately but I can promise you I haven't stopped doing deals. I am making more money now than I ever have. You can do it too! Don't let hitting a roadblock stop you. Just ask me how to power through it!

Hi Matt. Thanks for all great advice! I am hoping you could help point me the right direction. Im using your 25:1 technique in the Bay Area, California with REO's. I have no money or credit so my plan is to use transactional funding and flip the properties with a double close. I've worked with 3 Realtors now and they will not submit my offers. The reasons are they say the banks require a financial statement from me showing I have 3% earnest money available, which I don't have and the banks will not allow a double close? Do you know of a way to get around the 3% EMD and double close issue? Thanks for your help.

Regards,
John K.

FYI, Matt has been busy making money and not on this thread for some time. Don't know if anyone else wilil jump in and I am new to investing so all I can add is this:

1) Perhaps you can use a hard money lender (HML) or private money lender (PML) to get the 3% if it is required. PML would be best because the fees for the little money (3%) you would need may be steep, but depending on your calculated profit, maybe it is still worth it either way

I do not yet know how transactional funding works so I cannot include it in my thoughts here. Also, with what I am about to say, I know nothing of the legalities, the complexities, or the probability of success. Do not take this as advice on what you should do, merely something you could look into.

2) Perhaps you can use two HMLs and cover the entire cost of the purchase. You will have up-front, non-refundable fees that cut into your profit adn you will probably be paying monthly interest. If you can get enough from the HMLs (106%, say), you would have extra to cover interest for a couple months. In that first 30-60 days, secure a buyer or who will cover the 106% you borrow, the up-front HML costs, plus any bank fees (?), closing costs, and your profit.

Hopefully this is something to think about or it leads you to a potential purchasing pathway. Good Luck and let me know how you work it out!

Hi Kevin. Thanks for your input. Those sound like good ideas. Obviously I need to make some adjustments since I cant get my offers submitted. The majority of listings in my area are REO's with very few "regular sales" and according to the Realtors I've worked with so far regular sale listings will want the 3% EMD as well. In my area that is about $10k. Maybe its time to try a different approach. I will keep you posted as you asked.

Regards,
John

My question on Matt's 25:1 Formula, After you get a super realtor to agree to work with you, and they help find the 100 motivated sellers,you choose your 25 to 30 sellers out of the 100 you wish to work with and then you submit your offers thru your realtor all at the same time, But do you not have to have good faith money for all of these offers up front upon submiting your offers especially if the sellers have their own realtor.??

Thanks for you Help
Robert

Hi Robert. Im a newbie and I am trying the 25:1 formula as well using transaction funding. Im in the Bay Area, California. My Realtor just requested a copy of one check that they will use for all offers. The problem is my Realtors would not submit my offers without a minimum 3% EMD, verified available by my bank statement. On REO properties the bank will not allow a double escrow which eliminates my using transactional funding. Maybe you can offer less EMD but I have not found an agent that will do it yet.

Good luck,
John

Tichman,

No you do not need earnest money for each offer. Have you realtor get you an offer form and fill out and sign everything except for the specifics of the property. Give them a check for the earnest money ($100 should do) and have them use a copy of that check for each offer. The realtor can than make a copy of the form and use it over & over again.

Matt. In Dean's Empowering conversation, Dean mentioned your DVD or your Program... I forgot the name of it. I learned so much listening to your Empowering conversation and Edge 2009, 2010 DVDs.

And I want to learn from you more. Is there any DVD you published that is available for us to buy? I am very interested in it.

I think others will be interested in it, too. Please let us know!
Hiro from New York

It's so motivating listening to you speak and hear everything you've done and how successful you've become. i'm new at RE and I've been reading studying and spending hours on Dean's site. I have learned a lot about being a Bird Dog, and I've also heard of a couple people who are doing Bird Dogging from a distance. How do you Bird Dog from a distance? When I find a property that sounds that it may be good and needs to be checked out, how do I do that from a long distance? Or do I find the property, find the info from the owner, run the comps or what? I'm itching to do this, but I just want to do it right-- I don't want to be spinning my wheels. i live in Youngstown, Ohio which is a very depressed area(the value of a lot of the properties have been low for about seventeen years) and if I could do some long distance Bird Dogging until I could build up some investment cash, that will be great. Please advise.
Andrew from Youngstown, Ohio

Matt,

Whats the best way to deal with an reo property from the bank? What I mean by that is how do I get an REO using none of my own money? Will theu let me do an assignment contract on an reo? Any advice would be much appreciated.

Doug

P.S. just got the books and joined the DG family and loved your story. Your a true inspiration...

I am listening to Empowering Conversations AGAIN, and I was wondering if you still have the info you created on DVD 'REPS' - Real Estate Profit System and how can I get a copy? Thanks for sharing such invaluable information. It is much appreciated. This is going to be a life changing year for me.

Shirley

Matt,

I am not yet in the Accademy and I need some help. I am going to join the Accademy as soon as I can profit from a deal.

I have found an investor selling all of his 14 rental units. After my initial contact he forwarded me a spreadsheet of all the property discriptions,taxes,rent amounts and values. I all these are $860,000 worth of properties and I have no money at the moment to work with and I have no earthly idea of where to begin with this prospect.

I do't want to even call him back without knowing what to ask and what to say. I might blow it.

I am looking for guidance or a posible partner.

Please reply with some kind of answer. ( My wife has no faith in this working)

Brian

how can i get a copy of your R E P S program?

I apologize but we do not offer Matt Larson's program, REPS.

Thank you,
Jeremy
DGadmin2

Hi, how are you? I am new to rei.

I wanted to know how to get more cash buyers. I wanted to put an add similar this.

If you have money that is not doing well in your ira 4-15%. Why don't you try a self directed ira investing in real estate in this down market? Call us at xxx-xxx-xxxx.

Can I place an add like this?

Matt! Great to see you back on the site! I try to follow you, because your situation so closely mirrors mine! I cant get out of my own way. On top of that, everytime someone puts REI info on the internet, I'm always chasing their info too, even though Deans info is more than enough. I'm suffering from overload and dont know where to start. Bad credit, 75 + hrs a wk on a truck, no cash, dghtr in college, etc. You know the rest. I'm hungry but I dont know where to start! Info overload. Cant afford the Academy. What should be my first course of action.