Ask Matt Larson A Question

Your awesome for doing this man. We all thank you 100 times. Now when you say reassigning, is that like locking it up for x amount of days and then selling it to a cach buyer? or a buyer that needs financing? or some that has financing lined up? I get confused on this and also when do this technique is it called wholesaleing?

Hello Edwin,

Received your 'offer' - have you read the additional disclosure info online? this offer would be satisfactory to submit to the bank for consideration - but you need to read that add'l disclosure info.

The offer must be on a Standard PA State A/S-R Contract to be submitted to the lender, along with a preapproval letter or a letter of verification of funds if a cash transaction.

Inspections must be done within 7 days of lender's acceptance of this offer; utilities may not be on @ sellers' expense - but buyer can turn on in his name if he wants to do the inspections.

Cannot make the offer contingent on approval of buyer's partner.

No inconvenience whatsoever, hope your buyer is in position to actually write the offer for submission -

Please let me know either way -

Thank you for the intent to offer!

(Note)Edwin is my REA

Has your agent written the offer up on the appropriate form that Lender is asking for from him? Get him to do that, if he hasn't; and if he doesn't know how then someone with more short sale experience needs to step in to intervene so you don't loose this deal. Do you have a preapproval letter? If you have one already from coastal-funding submit that or use your buyer's POF letter keeping the contract in your name until they've paid your assignment fee. You can use a Land Trust to convey the deed to your buyer. Also submit whatever other part of the short sale packet you need to send in into the lender. Make sure you have another exit clause (contingency) since they ain't accepting the "Subject to Partner's approval" clause. Good luck with you REI.

How exactly would I go about getting/using a Land Trust? I'm not too savvy at this REI yet or it's different aspects and terms,(but I'm getting there). Please explain the Land Trust part a bit more in-depth to me.

Thanks Altcamel

Bryant

Hi. Of all the deals you've done and all the material you've studied, ...

What have you benefited from the most?
What was your most successful action?

Thanks.

PS: If you ever want to do deals in northern California, I'll be happy to assist you.
Michael B

Dear Matt, Thanks for your response. My concern here is that I am very new in real estate world. I have just purchased Dean's books and right now I am reading them with great enjoyment. Nonetheless, I think that I might need a mentor from Dean's Real Estate Academy to help me grasp and apply the correct strategies correctly. I called the number for the Academy and I was connected to some one who claimed that he is part of your team but what I did not understand is that I latter discovered that he was not from your Academy but from National Marketing Resources, Kansas MO. Please help me to understand whether these guys from NMR are actually part of your Dean Real Estate Success Academy. Please get back to me as soon as you can. I don't want to be fleeced by some crafty people scattered all over the US. One guy is called Nick Rousan and I think the other is Aamon. And if you could, help me please and get me a mentor that you trust and you know that will be of great help to me or you can as well be my mentor. I am determined to succeed. Thanks Matt.

Thanks.

Julius Mugisha
Indianapolis, IN
tel. 419 371 5043

Kimmyj best explains whole process; how go about using a Land Trust to close your deal here's the thread topic;

http://www.deangraziosi.com/real-estate-forums/buying-foreclosures-reos-...

Matt,

This question might be a little off the topic. However, your mentality and approach to life and business is very aspiring.

What type of books did you read to build that strong mentality and will power to move forward everyday?

I knew that somewhere on this forum I had seen that topic explained, but just couldn't find it. That's cleared up alot of things for me and given me a better/newer perspective on drafting up a new contract with my agent. You've been a very big help to me so far and I'm very grateful. Thank you once again, my friend.

Bryant

Hi Matt,

Hope all is well! Just wanted your advice on sheriff sales. Continued success.............Lubertha

Good-day,
I believe Matt's action of Holding and Flipping deals consist of goal #1!...Less effort of your mind and time!Matt keeps it simple and doing very well with that idea!I can only guess control is #2 goal.
I am throwing out that idea,It is not fact!

Hey Matt-thanks so much for offering your expertise to us here-i hope you dont get overwhelmed. I got motivated in Prof from RE now book;and via Ch6-found an agent willing to submit multiple offers at 30-50%below FMV. The problem the agent ran into using Letters of Intent(to save time filling out multiple offers)was-lots of negative feedback (we are in Central TX-I think you were in Austin awhile back ..?)-and banks; according to the agent; did not even recognize LOI as a "legitamate offer". Did your agent use LOI; and how did she deal with this negativity/roadblock; if so? Thanks so much; again.

Aloha, Matt!
Thank you for taking the time to share so much of your experiences. I'm very impressed. I'm re-reading Dean's "Profit...Right Now!" book, and I'm both excited and overwhelmed at the same time. My greatest worry is how to apply the lessons shared to the challenging market with its stiff banking/lending practices here in Hawaii. So, if you don't mind, I have two pressing questions: 1) Aside from the woman in Hawaii (who shared her story in this book) who already had both her and her husband's feet wet in real estate in some fashion, can these techniques really be usable in Hawaii? and 2) What advice could you offer as to "Where do I begin"? I've been a public school teacher for many years, and I have been very excited about trying my hand at real estate investing for years. I'm pretty sure I've read all the materials I've wanted to, and now that I've found Dean and you, I'm ready! But I'm not sure how to jump off the diving board.
Thank you in advance for any information that could give me that initial boost to get started!
Aloha and Mahalo from Maui

Hi

So, can you tell me the best approach for knocking on doors and talking to people about selling me their properties before they loose it? How do you convince them it's for they're own good? And thanks for all the great info.

Ken

Does a wraparound mortgage count as a "subject to?"

And what happens if I pay off a wraparound mortgage before the original mortgage? Would I get full ownership after that or what?

Hi Matt!

I am totally intrigued and psyched about the 25:1 plan - I work a full time job, have a side business that helps pay the bills but I don't see making me a millionaire, and 2 kids, so I don't really have too much extra time to do most of the leg work myself. My only question is how does your agent get paid using this strategy if you are assiging the deal? Thanks. - Seth

Thanks for all the wonderful advice on RE so far. I'm a newbie and just finished reading the BARM book. I think i just ran across a deal and i need some good advice about putting it together.
It's a 4 unit apt, all rented. Their asking 173,000, flex terms.Where i'm having a problem at is...they say its possible to do a subject to deal, to acquire ownership of the property, subject to the existing mortages.Their asking for $7000, own it and take over the payments, keep the current interest rate and no set time to refinance.
Is this a deal and if it is, how do i put together the contract? Any help would be greatly appreciated.

Hi Matt, congratulations on your success. I just finished reading PROFIT FROM REAL ESTATE RIGHT NOW. One thing I noticed as I read the book was that Dean or anyone in the book never mentioned how much profit was in it for the seller once the deal was made. Say for example you purchase a property with an FMV of 100k for 60k, you know that the 40k difference is for repairs, escrow, your profit and you need to leave some room for the end buyer to profit from if you're assigning the property. Now, how much does the original seller profit from a deal like this? Or is he/she just giving you the property to save their credit and be done with it?

Hope to hear from you soon

Jorge F.

My husbands bankruptcy was discharged 1/08. Bankruptcy due to failed economy (business). We can't seem to find a bank that will give us a mortgage - they all seem to point us to a credit repair company which wants more money. We both have good stable jobs for over 4 yrs now - all bills paid on time. We find a lot of bank owned properties that we could well afford (we now pay $1300 in rent!) & have a down payment -
I could not find anything while reading Dean's book which explains how to buy a bank owned property as a primary residence. Would there be chance a bank would finance us just to get the house off their books? How would we approach this situation. Thank you

Hi! First of all god bless you Matt Larson and getting to the question I have is as freshly a new member and just purchased Deans' book and almost am to the end of the book right now. What advise if you had one for me starting out as a new member would it be?

What have you gotten the Bank or Corporation (who own REO) to pay for (regards to closing costs) at closing? What closing costs will they usually not pay for?

Hi Matty:

I found 2 four plex's on a bank website and I called the listing agent. They are in an area I am very familar with. The listing agent has them priced at slightly above FMV. $224,900 for each unit. They are 2bd 1 bath units built in 2005 foreclosed on from the developer. The bank booted the tenants when they foreclosed. I have not yet been to the court house to look at the sheriff's sale and see what the bank paid for them nor have I done my walk through doing both on Friday. Photos sent to me by the agent and after talking to him I am figuring less than $3000 would need to be spent to bring them up to snuff. Easily rentable for $1000.00 a month each unit. I couldn't find any comparibles in the last 12 months for 4 plex's per say but not to far off the mark in regard to square footage in SFR that have sold in the last 3-6 months. They have been on the market for 91 days so I figure the bank has had control of the units for around 6 months. I just want to make sure I am not to far off the mark with what I intend to offer. I am thinking $100,000 for each 4-plex, bank pays closing costs, contingent on inspection and clean title, as is (of course standard for a REO) fast close 20 days or less. This would be a cash deal. Just wondering if this is too bold or not bold enough. These are not fannie mae or freddie mac properties. Any input would be greatly appricated. Thanks in advance. Donna

At least if I drive my John Deere to work I can mow the ditches on the way:)

Matt, I am having trouble making a buyers list, placed ads with craigs list, but to not much avail yet. No money to place ads in the paper yet but it will happen in time, but what can i do in the mean time?

erh

if i wanted to own more than 1 property do i need to be under a LLC of some type or do i not need to be under an LLC to own properties

Hi Matt,
I live in a small town in Ohio. Have found 6 FSBO properties since reading the books last week. All properties are being sold by the relatives of the dearly departed to settle up the estates. All are asking FMV or greater and don't want to budge any on price. Is there any thing I can do to convince them of a lower price. Nothing major needs fixing on any of them. Is it just a waiting game now? Once they see they can't get FMV maybe they will call me later? Any help would be appreciated.

Thanks, Brian

Hello. Can you please tell me your experiences at AUCTIONS. Do homes normally sell at auction...or do they pass thru un-sold and go to REO properties.

I am VERY interested in a home (for our personal home) and it is going to auction tomorrow. It is our dream home. The starting bid is WAAAAY less than what I anticipated and I am terrified it will sell at auction. It is starting at only $51,000.

I want it to go to Countrywide REO and offer $30,000 CASH plus all real estate fees. It is a fair offer of about 60% of prior owners loan amount.

I am praying that it does not sell tomorrow and I just need an experienced person to give me their thoughts. Thanks for anything/advice you can give.

where are you? We do not see a response to many of the questions posted.

Hi Matt,
My name is Bryan, I live in So. Cal,
My wife and kids and I were vacationing in Phoenix last week.
at our timeshare at the Legacy Golf Resort. I knew Dean was in Phoenix so I
went over to his office on the off chance that he might just be there. I got lucky,
He was in. I did not know if Dean would even talk to me. Well he did and I was so happy
to meet him. I thought Dean was the nicest guy you would ever want to meet.
What a great guy he is. My wife took a picture of Dean and I, How cool is that?
I was pumped up and ready to go and do a deal. Then when we got back to our timeshare
a day later I got a call from my mom saying my dad was not doing well at all. We came home
and I went to see him on Saturday on Sunday he was gone. My dad was a WW2 Vet. He was 84.
I miss him we were very close.
I have started reading Totally Fulfilled for strength and inspiration.
My question is, Do you think we have hit bottom? No Pun intended.

Hi Matt:
We are new and we have been studying a lot, I know you have so many questions from all the newbies and here is another one:
I submitted an offer like a month ago for an REO house in Los Angeles. They've been countering back and forth and the final they are accepting our cash offer for $260K, 3K deposit, close on 21 days.
I checked comps and went to the new totalreviewforinvestors website and the estimate we got is $353, needs about 30K on repairs, it's 4 x 2 in a very good area. Our intentions is to assign the contract to another investor.
I'm a little bit confused as far as the numbers, could you pls guide us? We just want to do our first one and if we can get at least 5K on this first one we would be very happy. On our offer we add the clause: "Vesting to be determined at close of escrow" in that way we can assign to somebody else.
Please guide us, thanks a lot.
Ana Lucia

Hi Matt,
I found a brand new condo in uptown Charlotte in May of this year that was offered to me for $250K if I were to take over the contract of a purchaser who put 5% down on it 3 years ago. The condos were being built and had stalled due to a freeze in their construction from the economy. This friend got married in the meantime, bought a home and couldn't afford to close this August on it. So in lieu of him losing his deposit, the developer agreed to sustitute me in the contract at the pre-sale price if we would buy it. The condos are on the market for $400K plus and are very nice (big glass windows, tall ceilings, granite, hardwood, city views...) My husband and I flew down to look at it (we live in upstate NY) and decided to let the deal go since it would tie up all our cash and max us out too much. But after buying and reading Dean's book this July, I am wondering if I should ask the developer's broker if he'd agree to me finding him a buyer for a finder's fee. Do you think this is a good plan and if so, what should I do first and how would you advise me to go about finding an investor who would want this condo?