30 Days Quick Cash Formula

Well I refused to let things hold me up. So what if the LA County site can't divulge owner info. So what if the REA might not be able to provide the info. So what if PropertyShark.com wasn't providing up to date owner info.

I decided I didn't want to wait on anyone, I went on an extended lunch break today to the main Downtown LA Assessor's office. I got to a PC terminal and proceeded to get frustrated using the clunky DOS screen interface that was staring at me. I finally asked someone behind the glass windows for help. A nice lady showed me how to do it and they helped show me the way to owner data nirvana.

I was excited since I could now take my list of 112 cash buyer listings and get owner data. Printouts were $2 a page! So I thought I might jot down the results but that would take too long so I decided to use my cellphone camera to take pics of the screens. That worked well! I put the phone on Airplane Mode as well to conserve battery power.

So I got my owner info and am now ready to transcribe it to my PC and start reaching out to the cash buyers. Woohoo! My other REA's cash buyer list already had owner info since he got it from a Title company.

I've heard that the tip line will become available when the 5 week mentor program is over with.

I just want to make sure I read that correctly: You CANNOT assign and REO correct? Therefore your only option is to do a double closing? I have been searching for the answer to that question because I heard it from a REA. I wasn't sure if I should believe him or not but I had to check. Plus I am in the process of making my first offer on a REO in about 30 mins. Super excited but nervous at the same time. Thanks for your help Kent!!

OMGosh! Matt's call tonight was absolutely awesome! Full of content! If you did not listen to it, please do! You would be glad you did! He got me really excited again!

Assignment of contract is just that, you are assigning your contract to another person.

Assignment of contract takes place like this:
1. You get the contract with your seller using a n agreement to purchase Real Estate contract. Say it is for $100,000
2. You then find a buyer and assign him your original contract using a second contract. This is the assignment of contract contract. Say your assignment fee is $10,000.
Your assignment contract will state: Original contract amount $100,000
Assignment fee is $10,000
Total cost to buyer at closing is $110,000

Take the two contracts to your title company, when you close the title company will cut you a check for $10,000. This will show up on the HUD1. Totally legal where assignments are legal.

Collecting a fee on the side can be interpreted as a commission. You must have a license to be paid a commission. This is the law in most states.

Michael Mangham
MD Home Acquisitions LLC

Hi y'all, this is Dave down here in Texas just north of Houston.
When I set out to find a great agent I called a few and asked friends for referrals.
EVERYONE of the recommended REA's blew me off faster than the water off a duck.

I stopped in on a little office that was not a big REMAX type.
Asked if I could talk to him and see if he would help me.
I was very straight forward as to how new I was and the goals I had set.
360 deals in the next three years!
Maybe slow at first but then bigger as we go.
He said he wanted me to sign an exclusive agreement with him.

At first I said I had talked to other REA's and felt I might compromise my ethics for the work they said they would be doing for me based on our conversations. He appreciated that and started working real hard for me to prove he was my guy.

He sent me info that night and has done research on more than twenty properties to find the ones I can get into on an agreement. When he proved he was the one, I gladly signed with him. When I sell them, I will pay him GLADLY. When I have a bunch rented, he is going to be my property manager.

I'm quite sure I got lucky but you make the luck with perseverence.

Hope this helps someone.
Be blessed.

Dave

David-in-Texas: It sounds like you found a winner of an agent. Lucky you However, if you're following Matt's advice, you shouldn't sign that kind of contract because you may be limiting yourself to only deals that agent brings you and/or cutting him on deals you find yourself that he has nothing to do with. I'm all for rewarding a good agent but there are other ways besides an exclusive agreement.
Just my thoughts.

Andy Sager
DG's AndyS

Hi i have a deal i am going to close myself without an agent i am selling it for 63,000 do you know how much finders fee i charge and how do i ask for my pay if this is all transactions through e-mail and phone? Thanks

We'll need some more info. Usually investors look for an ROI of at least 30%. What is the After Repair Value of the house? What are the appx cost of repairs?

Great Job cmpolanski!! I am in Los Angeles as well and am having that issue. I am heading to the District Office right away to get the buyers information. I too have had hurdles with even getting the buyers list. Funny, I got it from another investor that called my ghost ad. WOW!! But you are on the road to success with that type of determination!!

Essence

Thank you for that breakdown, it's a lot easier when you see it from this height

Dennis

OK DG family I have really been busy. I met with one of my agents yesterday and have found a listing I am going to make an offer on today. Last night I went to another REI club meeting this was very cool and I found another agent she does not really understand our marketing plan but is willing to work. So let me sum up the week. I found 3 Agents, 2 cash buyers, 2 REI clubs, and 1 listing to make an offer on. Hey I am not done I have a meeting with one of my other Agents an will be looking at property this afternoon.

Come on DG family let's keep it going!

Hope everyone is utilizing the list of cash-purchases you rec'd from your REA! They really do work! I just rec'd a call from one of the LLCs on the list and MAN did they qualify! All they care about are the numbers, repairs don't scare them (even foundation and roof problems), and they can take as many deals a month as I can give them! Dude even offered me a JOB as a sales rep for his company (I politely declined of course) lol!

In short-put that list to work cuz it does show results! Now I feel more confident about the offers I'll be submitting over the weekend

Hey Michelle, great job! I can't believe they actually offered you a job as a sales rep

I'd received several calls as well, one of the buyers has a lot of properties and he's ready to take on as many great deals as I can find. But your LLC is even better, make sure to keep in touch with them!

My agent had 2 offers drawn up (a few others got rejected or the properties were sold), but I'll keep looking and making offers. All the superstars said to spend most of your time (85%) building buyer's list, so that's what I'm gonna do!

Definitely watch Edge 2011 Disc 2 with Matt Larson, he explains the 25:1 magic formula in more details - it'll help you understand exactly what they asked you to do in the 30 day quick cash formula.

Till then, have a wonderful weekend DG family!

On my last post you said (TexasTurn) that I should use exit strategies to get out of a contract if I can't find buyers for my properties. Could you give me some example of these strategies you are talking about? I also think what I originally said is still a good idea because without cash buyers a person won't make money. I live in an area where cash buyers are paranoid and thinks that if they can't trust a seller they won't have anything to do with you.

How does this work: One of my investors is wanting to "partner"--he has props he's also looking to wholesale and gave me the info on them. I forwarded just the prop info to my buyer's list and one investor is interested in seeing one of them. Should the investor be interested in purchasing, am I supposed to put him under some kind of contract?

For those of you who may have experience, how would you handle this?

I just started page 2 of "30 days QCF" and still working on building buyers' list. On parallel, I am also working on getting Agents qualified. out of the 6 Agents I talked to, 2 Agents sent me the list of cash sales/buyers, 1 agent didn't understand it and sent me statistics. Out of the 2 Agents who sent me the list, 1 agent is sending me more listings without asking any proof of funds, but the second one holds the listings by putting proof of funds as a precondition. First of all, am I on the right truck continuing with the one who is willing sending everything without any preconditions? What am I gonna do with the listings because I am still on Page 2 of "30 days QCF"? What can I tell to the Agent who asked me for the proof of fund? I need help from my DG family !

Thank you
GH

You're definitely on the right track in keeping w/the REA who is working w/out asking for PoF. I know it's always smarter to not put all your eggs in one basket, and work w/the other REA also, but first tell her that you will happily supply her w/PoF once you have found a property to submit an offer on. If she still refuses to help, then that's a red flag that she truly isn't investor friendly.

You can obtain a PoF free-of-charge from coastal-funding.com in just a couple of minutes.

Chris,
Excellent advice. I am a realtor and just in the first week of the 30 day and contacted 2 REAs who are working w/ investors (or claim to be killing it). One is in my Keller Williams office and has promised everything and delivered nothing. Not even an email back after 48 hours but boy, I had to listen to his great deals stories and 10 agent team chest puffing. What a bunch of poo. The second agent was referred by the receptionist in a REMAX office of 31 agents. Rapport was excellent - over a day later nothing asked for is received.
The manager is the only way to go and thanks.
This will not get me down but what an epiphany.
Bob W.
"Accomplishment Creates Energy!"

I am having trouble getting an agent to return my call or be cooperative. I had one who emailed e a few listings then got grouchy when I would not divulge my exit strategy.
I may have found a property in a nearby area that is a major rehab with a double ARV from price. Good rental area. I need money from this fast. Scared as hell to lock it up. So nervous.

What is the best way to build a buyers list because I want to close on some deals man!

I know its easy to get the POF,im just wondering if you have to get one for each house or can you get one for like $250k and it will be good for all offers

We too have been following this thread and am very excited to see how well everyone gets along. We are not moving as readily however, we have gotten information overload by not starting with the 30 day QCF. I thought I had gotten us a decent Agent, but she didn't work out. I have another I am working with, but she hasn't sent over the list of cash buyers yet. I will have to contact her tomorrow and see what's up. Keep up the great work everyone, and I'll be following. Paul

JoyceC: Exit strategy basically means: what are your possible options once you lock up a property with a purchase agreement. This thread, because it stems from the 30DQCF, uses wholesaling as your primary exit strategy. If you are looking at other strategies b/c your cash buyers don't bite on a deal, you can do one of the following:

1) Buy and Hold: Close on the property yourself and go for the cash flow until the property appreciates. If you get the property cheap enough and have some fat equity, you should also consider a cash-out refi with a local bank that doesn't require seasoning so you can pull cash from the asset (house) and put the money back in your pocket, often with cash to spare depending on how much of a discount you originally got on that property. You can then look for more deals. I would imagine that lease-options could also fall in this bucket.
2) Rehab and flip to a retail buyer: Find financing to do the necessary rehab and offer it to retail owner-occupants at a discount of comparable properties. Your numbers should be good enough that you can do the repairs and still offer your property to these retail buyers at an attractive discount while turning a healthy profit for yourself.

michellecaseyks: Before I lock up the property, I think a couple pieces need to be put in place. The most intuitive step is, what is the "official" arrangement you have with your partner? If it's necessary (maybe it's the first time you've worked together), is it in writing so that there is no confusion on either side about what the conditions and details of the partnership were? Secondly, before locking it up, I would think that a conversation about minimum acceptable profit would need to be had. After that, if the numbers work for everyone involved, lock away, and start marketing that bad boy. Let us know how the partnership details work out (I'm sure many of us will want a way to partner on an actual deal and your experience can guide us all) and hopefully, you'll make some sweet cashola sooner than later.

Hope this helps.

Thanks guys you'll was very informative
your comments was eyeopening

I want to say thank you to all of you... you have kept me going and I have learned a great deal. Between this thread and the mentor calls, whenever I have drifted away, my focus has been returned to REI each day this week. This constant draw back to REI is exactly what I need. (Methinks Dean may have done this 5 week intensive on purpose!)

I believe Carol Stinson said that she asks for cash buyers for the last 6 months, so I worked up the courage to call my REA and asked him to email me that info. He pulled up a list of 1900 properties (I'm looking at a 20 mile radius of SoCal suburbs) and he will be sending those to me. I'm not sure if I am doing this right... but I will muddle thru it. It was funny, he said that the very same day I called for the 90 day cash buyer list, someone else called for the same exact thing... guess we both stuck close to the script! He was curious as to what was up.

He told me about an REI club that has a cover charge of $20. Is this common?

He also seems to think that 85% of ARV is a great deal... (altho he understands that I am looking for something under 65% and seems totally willing to work with me). Do any of your REA's feel the same way? Should I be looking for another one?

Again, thank you to all who post here for the info and the encouragement!
Aniko

Aniko: The REIs in this area (NJ/PA) that I have come across have a cover charge if you are not a member yet. Check into membership and also find out if renewal is on a calendar year or on your anniversary of joining... There are MANY advantages of membership- discounts, etc.

@Simon7077:
I wouldn't worry about your agent as long as he remains positive and supportive about providing the details that you request. I think he's right, by the way. 85% is a great deal IF you are a retail buyer looking for a residence as an owner occupant. But you and we are wholesalers looking for AMAZING deals that you can pass on to other people, who may eventually be that very same owner occupant happy to find that great deal of 85% FMV. Remember, Matt Larson finds such crazy deals that DG pays him $7500 a pop, and is happy to do it, b/c he still has so much built in equity. I think we have to think along those lines.

I've been so engulfed with the REI world that I forgot that I was supposed to be in Vegas this weekend with some friends. I got an email and totally freaked. Funny thing is that I was, at first, a little bummed since I was on such a roll! HA! It will be a good break, though, to catch my breath and look at all the shows and shopping places that I can take my family when I make this things happen.

Have a great weekend, DG fam!!!

With putting in let say 10 offers a day..Does that mean I will need 10 Proof of Funds Letters..Or can I use one