OfflineI get more questions from people about how I assign contracts than anything else. I decided to start this thread to answer questions that some of you may have. First of all lets tackle the hard parts about assigning contracts.
Q. Real Estate Agents won't let me put "and/or assigns" on my contract.
A. True. Sometimes the agent that has the property listed informs the seller not to accept the contract with and/or assigns. The solution is to move to another deal, focus on for sale by owner properties, or use "and/or financial partner" instead of "and/or assigns" which will accomplish the same thing without letting on you may assign the contract.
Q. People tell me that assigning contracts is illegal?
A. Do not argue with them. Simply contact an attorney that handles assigning contracts and then tell anyone who tells you it is illegal to contact that attorney. That will stop them in their tracks.
Q. Which properties do I go after to try and assign?
A. Any property that you can buy half price. If you can negotiate a property for half off the actual true value then you will make money! What's that you ask? You don't think buying a property at half price is possible? Really? How many offers have you put out there? If you have put out 100 offers and every single one of them have turned you down then put out 200. Or just quit and keep working the job you hate everyday. Don't argue-just get it done. I buy properties AT WILL for 50% off ASKING price.
Q. I don't have anyone to sell the property to after I get it locked up for 50% off?
A. Put up 25 bandit signs that say "House for Sale! Owner Desperate! Half Price! 555-5555". The house will sell in approximately 8 seconds! Yes really. Or have active CASH buyers ready to buy waiting for you. Thats what I do. I'm not going into how to get cash buyers because there is enough info already available on this site on how to do that.
Q. I don't have a proof of funds letter and the real estate agent says I have to have one before I put in offers?
A. If you don't have a proof of funds letter then go after for sale by owner properties. They aren't going to ask for a proof of funds letter. Tell them it is a cash offer.
Q. I live in an area where you can't buy properties at half price?
A. Bull.
Q. In my area all of the foreclosures get multiple offers the day the properties get listed, therefore creating too much competition to get a good deal?
A. Don't go after foreclosures when assigning contracts.
Q. In my area no one has enough equity to be able to buy a property at half price?
A. Bull.
I think that pretty much covers all of the hard questions about assigning contracts. As you can see I don't have any limiting beliefs on buying properties at half price. Just get it done. If you can assign a property that you locked up for a price that was only 20 percent less than true value then even better. Just remember that the cheaper you buy the property the easier it is to assign. The stronger the buyers list you have the easier it will be to assign properties. Don't be afraid. Don't be scared. Just get it done!
You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!
Matt,
Great info about assigning! For myself dealing with (big)banks,I must show respect and bring cash!Matt you know the larger banks are holding huge REO's properties!
P.S.Everytime i think...It is not possible! I think of you saying:Bull S.
I did need this post from you!!!
Rosefield
Invest in yourself!
Gotta love it, can't get any simple than this! Thanks Matt
Everyone Can Make A Difference!
John A.
We needed that tough love method of speaking to jerk us a little to act. Thanks for being frank in sharing this much needed valuable information. God Bless.
Sandra
"You can never get to the top, if you are not willing to climb. Do not look at the difficulty of the climb, only anticipate the view from the top."
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"In all things, wait on the Lord."
"Think not of your own deliverance, but trust in God who will give in abundance."
"When you are down to nothing, God is up to something." Unknown
"Our lives begin to end, the day we become silent about those things that really matters." Dr. Martin Luther King Jr.
I think visitors and new people get saturated with all the koombaya-style overoptimism they've been hearing (and spreading to each other) lately. You can try to convince someone who's never invested before that these are techniques, not just theories, until you're blue in the face. Or you can share and celebrate each others' success stories until the end of time. But the truth is, if you dunked someone's head in a bucket of ice water, and then told them to go find a towel, most people would be halfway to one before you finished your sentence. That's the approach these people need to hear: "get off the couch, away from the computer, and go dunk your head into your local market!"
It frustrates me to no end how many people ask questions when they clearly have not read any of Dean's books yet. Believe me people, Dean covers MORE THAN YOU NEED to get started (regarding marketing and advertising, ALOT MORE). To help yourselves (and each other), PLEASE read at least 2 of his books before posting a question. The experts and veterans here have, I guarantee it.
You can't smash a brick the 1st week you study Karate. You can't get a job with NASA the 1st week you're in college. Why would you expect similar results with RE investing without reading any material? I've noticed none of the questions people post on this site are about Dean's books or materials. They're almost always, "How do I get to step 12 (cashing a check), without knowing or doing steps 1 through 11?" Here's the answer: Read Dean's books already!
Paul: "I must not fear. Fear is the mind-killer. Fear is the little-death that brings total obliteration. I will face my fear. I will permit it to pass over me and through me. And when my fear is gone I will turn and face fear's path, and only I will remain."
Duke Leto: "I'll miss the sea, but a person needs new experiences. They jar something deep inside, allowing him to grow. Without change something sleeps inside us, and seldom awakens. The sleeper must awaken." - "Dune."
Very informative. excellent.
Great post! It's true. However you go about it, don't get STUCK on one thing if it isn't working. The challenge isn't to break down the whole wall, it's to find your way through to get to the prize! Personally, "koombaya-style" works for me, LOL! (dpboyden, I like how you put that!
), but whatever it takes to make yourself take ACTION is what is most important. It's AMAZING how little the "assignment" issue seems after you get one done. But it sure can seem like a MOUNTAIN before that. (btw, my last 8 PAs were accepted w &/or assignees)
Thanks for all your help, Matt!!
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
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When my dad taught me how to ride a bike he thought it would be best to teach me on a gravel road that way if I crashed it hurt really bad. He wanted to give me high motivation to succeed. There were no training wheels allowed. He said training wheels were for girls. He forbid training wheels. As you can imagine I crashed a lot. He would not allow me to quit just because my hands and knees were bleeding. I remember crying my eyes out as crashed over and over again trying to learn to peddle and balance myself. But I never quit. He taught me the "tough" love style. Well some of you may think that was a cruel way to teach me. But I want to ask you this: Do you remember the day you learned how to ride a bike? I do. I remember the exact day, my surroundings, where I rode, and how happy I was because of my new found freedom. Condidering that was 30 years ago I would say that day was a major accomplishment. My dad never promised me it would be easy. He told me I would fall and crash a few times. He also told me that as soon as I learned how to ride he would let me ride my bike down to my friends house. I wanted that freedom so badly that I didn't care if I got hurt. I wasn't going to give up. You see at dg.com I don't promise anyone a crash free learning curve. Success will cost you. You will never find success for half price. Pay full price. For me learning real estate was really tough. I'm not that smart of a guy. I don't learn very quickly. I read really slow and grew up with a learning disability. I was just willing to pay full price for success. Now after I learned how to ride a bike it was very easy to ride. The learning curve was over. Real estate is the EXACT same way. Once I learned how to ride my bike well my dad quickly put me on a mini bike! By the time I was 18 I had a full fledged street motorcycle. And by the time I was 25 I was riding wheelies down the interstate at well over 100 miles per hour! (Not recommended)
In real estate you are going to get turned down on your offers a lot. You are going to have real estate agents tell you they don't want to work with you. You are going to have sellers that are very offended by your offer. You will have banks tell you no. Things are going to go wrong. But remember, success is on the other side of failure!
You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!
I just LOVE your posts! Maybe it's the midwestern way you have with words but the point comes across loud & clear!
Thanks for the pep talk Matt, you're my hero!(no BS)
Dawn
Life's a Dance you learn as you go...GET HAPPY FEET!
"Most of the important things in the world have been accomplished by people who have kept on trying when there seemed no hope at all." ~Dale Carnegie
I am in the process of finding a real estate agent to work with. I am going to start out assigning contracts. How much should I expect to pay an agent for each deal completed. Does that come out of the % that I plan on getting in the deals?
Great post Matt! thats all i need to say.
Matt. This is a great post.
Lea
SPR Property Solutions, LLC
I'm bookmarking this to read it when I'm down! Thank you Matt for the advice, the question and answers, and your bike riding story. Most of all, thank you for keeping all of us focused, and inspired to get it done!
Cheers!
Louisa
Current Journal on Dean's site: The Second Chapter: http://tinyurl.com/p986al3
First Journal on Dean's Site: From the Beginning: http://bit.ly/ocv10
You definitely don't mince words, and I like that. Sometimes you just need to hear it. Thanks.
Cathy
Cathy B
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http://www.deangraziosi.com/real-estate-forums/investing-journals/44397/...
Matt,
Excellent post. I like your no BS, tough love attitude. It is motivating to say the least.
Thanks,
Greg
Hey Matt, tell us how you really feel.
Yes siree bob that's the ticket. It is so hard to hear but
that is the real truth is it not. Folks we have to just quit
whining and get it done. Great post Matt. Thank you.
God bless,
Alice n John
Matt VERY nice post! But I have one question about this:
A. If you don't have a proof of funds letter then go after for sale by owner properties. They aren't going to ask for a proof of funds letter. Tell them it is a cash offer.
I read something on this site about going to www.coastal-funding.com and getting one for free? It instantly gives you a proof of fund letter.
Would this work? I just don't understand the whole deal how a website can just blindly say they will fund you without even knowing who you are. Could you clear this up a bit for me along with anyone else wondering the same thing?
Thanks in advance!
Dominic
Are you new? Check out my NEW and IMPROVED Guide for Beginners! http://deangraziosi.com/real-estate-forums/everything-else/128413/domini...
Hi cbrpower,
I like the advice and the attitude.
Thanks and………… Keep on Keepin’ on
Yeah sometimes I can be a little bull-headed! I appreciate all the positive comments. I am just trying to do my part!
You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!
is a transactional lender. They will fund your closing between Seller (A) and you (B) and then you will pay them back their monies (including their fees) when you close between you (B) and end buyer (C), all in the same day. Some transactional lenders (e.g. Hartwell Ventures) have you set up an escrow account and then generate a Proof of Funds letter for you. Coastal Funding provides a POF letter with a catch, that you agree in their Terms and Conditions (please read these) that you intent to use them for their transactional funding services. Otherwise you're not suppose to use their proof of funds letter.
"I will NOT BE BROKE! ANYMORE!"
In the name of Allah, the Beneficent,
the Merciful.
22.He is Allah besides Whom there is no God: The Knower of the unseen and the seen; He is the Beneficent, the Merciful.
23. He is Allah besides Whom there is no God: the King, the Holy, the Author of Peace,the Granter of Security, Guardian over all, the Mighty, the Supreme, the Possessor of greatness. Glory be to Allah from that which they set up (with Him)!
24. He is Allah: the Creator, the Maker, the Fashioner: His are the most beautiful names. Whatever is in the heavens and the earth declares His glory: and He is the Mighty, the Wise.
Thanks matt for the info on the contracts and for the way is been put straight up. I always try to keep up whit your post is the way I was raise too, tough only and no dad but thanks again for all the great info you give us.Hope one day I could be able to have lunch whit you and collect more knowledge, thanks again.
Thanks for the great post. Needed the up lifting.
Just get done
In order to Succeed your desire for Success should be greater than your Fear of Failure. Bill Cosby.
Some people dream of Success.... While others wake up and work hard at it
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Great post Matt...once again, the excuses are obsolete.
STAY FOCUSED OR LOSE SIGHT!!!!
Woody
STAY FOCUSED OR LOSE SIGHT !!!!!
Thanks for putting Real Estate investing in perspective for us again. There will be failures and that's part of how we learn.
Great post. reading this post seemed like you were actually telling me what to do. When I am told what to do it seems like taking the first step is easier to make. Thanks Matt.
Great information & advice.Right on the money! Thanks a million,no bull! I too am a slow learner but I will Not quit & people like you and others are there to help so it's just a matter of time & action & I'll be on the bandwagon.Thanks again for your posts. Silverhound
Silverhound(WHAT BOX?)
Great information & advice.Right on the money! Thanks a million,no bull! I too am a slow learner but I will Not quit & people like you and others are there to help so it's just a matter of time & action & I'll be on the bandwagon.Thanks again for your posts. Silverhound
Silverhound(WHAT BOX?)
Great post Matt
Has anyone ever noticed that the world we live in is very tough and unforgiving? The world is brutal and it wants to beat you up. Here is the problem-the world can't take a punch and I hit back! Don't let the world push you around. Once the world sees how hard you hit and sees you always get back up after being hit the world will go pick on someone else.
Because of the way the world is, is why I teach with tough love. I am preparing you.
You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!
Excellent point Mat.
READ at least one of Deans books and spend a good amount of time on the site reading these GREAT posts.
I love your analogy using learning to ride a bike. Perfect!!
Barbara
Owen Properties, LLC
I really like this thread! And the post! I was really relating to the:
"Q. In my area all of the foreclosures get multiple offers the day the properties get listed, therefore creating too much competition to get a good deal?"
This is so true in my area! But I kept at it and worked hard and....my bid just got accepted AT LIST! Which is amazing because list IS 50% off value! And I got it in a really round about way. The agent that is helping me also has a nephew in the biz that had a new listing (must be the whole family is in real estate) and he really wanted to help me get a house (since I kept getting outbid), so the day it came on the market he got him to pull down the sign at the house and got my bid in FIRST (and I think last), so I got the house at list price. (I'm so excited, my first investment property!)
I've read all over that REO's aren't the houses to go after when assigning contracts and there it was on my contract, that it "cannot be assigned". That's OK because my goal is to flip it, not to assign, but it is all starting to make sense the more I get out there.