30 Days Quick Cash Formula

Hey Guys so my bandit signs turned up and put them up all over the city about 28 in total on friday night had 3 calls plus one from a city worker saying I'm going to get fined, getting his friend from the police to find me. Don't they have anything to do on the weekend? I was planning on taking them down today anyway.

Huw

The numbers are kinda close, especially when you factor in repair costs.
Depending on how motivated the seller is, you can suggest owner financing or sandwich lease options or even taking over his mortgage payments "subject to" which is covered here:http://www.deangraziosi.com/node/10010

This would allow you to then look for an end buyer or renter while still controlling the property.
Whatever you decide, put a coupla deal options on the table for the seller to consider, and if he says no, check back with him in a month or two. Your suggestions might look better as time passes.

Can't thank you'all enough for this great info. I was starting to lose focus and hope so I came back to this site and got just what I need.

I'm so happy for you Jill. I'm glad for your success, plus it gives me hope. I was beginning to think that this was not going to work in San Diego. I've heard a lot of nay sayers in the area,especially agents. Keep it going!!!
Congratulations.

Huw I sent you a private message please give me a call at the number I left you when you get a chance!!

Hello,

Did anyone have any answers to my previously asked questions?

Thanks,
Karemah

Hey! Question! I'm finding lots of FSBO and am wondering if we should be doing the same filtering system on them as we do on the MLS. If so, how would we go about filtering? Asking questions, obviously, but how could we ask a question that doesn't seem so probing to figure out if they've reduced the price recently?

"as is"/needs work: are there any repairs that needs to be done, and if so, are you willing to do repairs, or are you selling the house "as is"?

"vacant": is anyone currently living in the house? (if they seem a little suspicious, just tell them that you pay cash and are looking to close very quickly).

"price reduction": how long has the house been up for sale? (this is where I find it difficult to ask if they have reduced the price--any suggestions?)

I also realize it's important to stick w/houses that fit the 'starter home' criteria and price range.

Hey Everyone I thought I had the perfected agent, Everything was going good , he got me the listing of the cash sales in the last 90 days. Then 2 days ago I called him and to him we were going to start making offers, then explained to him the 25/1 Strategy. So he said he never heard of that strategy, but was willing to learn. So he said he was going to send me more listings. 1 day went by and i never recieved them, then i texted him and ask why he never got back to me. So i didnt get an answer back from the text, but 3 hours later i got an E-mail saying he's sorry for wasting my time but he would not continue to work with me. Do to he didnt want to submitt 25 offers and only have 1 accepted. So I told him thats fine and its his lost.

Well I already have 3 agents that i have to interview tomorrow. These agents found me, by me putting an ad on Criagslist stating "RE Agent Need for Investor. I gave a Discription of the Agent the would be perfect for me.
And I recieved 3 E-mails says " I'm the Perfect Agent for you" call me!!

So all I have to say is down feel bad if your agent bails on you. He/she was not the perfect one for your in the first place. Like Matt said after you have experience dealing with your first agent, you will feel like a pro dealing with the next one.

ON TO THE NEXT AGENT!!!!! HIS LOST!!!!

they are only pretending to be people until the market turns around...

Learning and progressing every day,
Valerie

We need a version of Yelp for individual real estate agents. That would make life a lot easier for tons of people AND hold agents accountable for their actions.
Just my 2¢

what area of CL did you post this under? i want to try that but not sure where to post it on CL? please help!

Wow, it has been a very crazy weekend. Lots and lots going on.

I have been frantically trying to find buyers for my property in Chicago. Nobody wants to take a bite. I'd love to keep it for myself, but no $$$. Very soon though It looks like I'll end up backing out of this deal.

My other property in Central Illinois has been going well. The only problem is the seller and the house. The house needs about $25,000 of work. Its a 4 bed / 2.5 bath home. It would make a tremendous rental. The seller had a couple of disclosures stating some problems with the home. The issues aren't really issues you want to have, so I may have to pull out of this deal too. Another road block with this deal is that the selling side said "no inspection contingencies" in the MLS listing sheet. When I submitted the contract it had a 14 day inspection contingency. The seller signed off on it and signed the contract. Now they are saying no inspections, "because it said so in the MLS sheet." They already signed off on the contract with inspection period in there. Now my attorney is getting involved and either I am going to pull out because they don't want to honor the inspection contingency or they will honor it and I'll continue on. We'll see what happens.....

Now, in Michigan my Realtor is a Rockstar. He has presented me with 3 different families that want to do Lease Options (Land Contracts). Each family has $40,000 to put down. I have to call the PMI accademy and have them walk me through how to do these. I am pretty cranked on these, but I have no clue how to do them. Hahaha....

Needless to say it has been a HUGE emotional roller coaster. My gut reaction on all of this stuff has been fearful. I just want to pull out of the deal and keep trucking. I can totally see how it is fearful to do this stuff. I am the only person holding me back on this. One thing that is great is after experiencing all the emotions on these is you'll know what to expect on your next deal making it 100% easier. Its awesome. Another thing I have experienced is trying to do all of this while maintaining and doing my full time job (flying). Its a lot to tackle, that's why I haven't posted anything in a day or two.

I have noticed it is also important to take a break and make sure you relax though all of this.. Even if it is for a half hour. It will help you clear your mind, and realize that its important to fall back on your training and keep moving forward. This thread has been very very helpful through all of this. When your first deal hits, you'll know EXACTLY what I mean!!!

Great job everybody, Thanks for ALL of your help. I cannot wait to meet all of you! It's going to be a lot of fun!

Hey Alex, if you got the property at 50% off, why did nobody take it? Did you put it on Craigslist or Linkedin to get some calls? If the numbers make sense, and you have a few cash buyers, I'm curious why there's no taker. Anyhow, keep going, it's part of the journey!

Paul, talk to a specialized real estate attorney about the assignment of contracts and whatever questions you have. Don't listen to people who have never succeeded at what you want to do. Get a free consultation by calling a few attorneys and ask them the questions. Sometimes, it's just all noise, you just gotta cut through the clutter and move forward. Good luck!

Karemah,
The point in submitting 25 offers is b/c Matt Larson has found that this is roughly the number of offers necessary to get 1 accepted. Keep in mind, these are offers placed on MLS listed properties that have been put through the filtering process mentioned in the program. We are putting in very aggressively low offers, justified by the fact that the properties in question are in a certain condition. If, after 100 offers, you get no bites, your offers may be a little too low, and if you get more than 25 to 1, your offers are a little too high. 25 to 1 represents the sweet spot for offers in your market area. As far as what happens after 30 days and no cash buyers, it all depends on what your purchase agreement stipulates. The program leads us to use the strategy of using 14 days as an inspection contingency. During this time, you are doing many things: getting comps, getting fix-up costs, marketing to buyers, etc. If you get no bites during the inspection period nor are able to partner with others who can provide the missing pieces in your overall scheme, you use your contingency to back out of the agreement.

Michelle,
If the numbers are good enough to provide an acceptable cash flow, you might just consider assuming the mortgage, which has recently become known in DG circles as a "hostile takeover." Because you are not paying points/processing fees/charges to get the loan setup, you are making pure cashflow. You can hold on to the property until you can figure out what else you want to do with the property (fix and flip, lease option both sound like longer term exit strategies). The numbers you suggest do NOT seem like the property is fit for an assignment/double close since the necessary equity is not there. Still, a little number crunching and alternate exit strategies might be able to put some money in your pocket that could be reinvested into your growing real estate empire

Let us know how this one turns out. I'm sure we could all learn from your choices. Best of luck.

what happens when after i placed a ghost ad and have someone contact me and i tell them that "the property is longer available but can i put them on the list to see what my partner has within their criteria", what do i do when they ask for "a specific address to see the kind of deals i can get?" help! trying to build my buyers list!

thanks for your information you sent me shine717 but I need different information to make my deals work. I can only do TF funding right now because I have no money and I can't work with any banks right now. I do know what an exit strategy is, I just need to know some good one's to use in the contract when using transactional funding. Thanks for any help than anyone can give me.

I haven't found anything in the thread about Earnest Money. I don't have any. I can find the deals and tie them up if I had the earnest money. I can find buyers and hopefully have figured out the assignment thing. What do I do?

Michelle, just ask the sellers if the asking price is flexible. To show that the price is great, they would usually tell you that the price has already been reduced before, and how fantastic the bargain is for you.

Alternatively, just make the offer without knowing if the price has been reduced before. The way I look at it, if they are motivated, they will accept it, if not, they'll reject. The most important question is probably 'why are you selling?'.

Let me know what you think.

P.S. Are you getting FSBOs through bandit signs alone, or some other means as well?

That's a great way to find out! As for FSBOs, I'm find them by driving around, ads on CL, calls from ppl who've seen my bandit signs, etc. They're practically everywhere! My husband's job requires that he drives around town, so I told him to watch out for FSBO signs or houses that appear vacant and when he finds them, to write down the phone number and address for me so I can look up the details online.

I've talked to a few owners and toured a few houses this past weekend and realized that I need to start filtering these props through the same criteria that the MLS props have been filtered through.

There was a brief discussion regarding Earnest Money on this thread (Page 24 starting w/post #394)

Is there a way you can find/borrow $500-$1000 and open up an escrow acct w/it? I've been told that this is the best way (besides not using EM at all) to handle EM. there were other suggestions earlier in this thread if you'd like to check them out...

Here's what I've told ppl who called me regarding my Ghost Ads and I NEVER had anyone get mad and hang up (in fact, they were happy to get on my buyer's list)...

First of all, I always post the Ghost Ad late at night (8pm or so) and wait until the next day to start calling or emailing ppl back. When I do call them back, I tell them that the property is already under contract w/another one of my investor/partner. Then I explain to them that I give my personal contacts about a 5-8 hour jump start before I make the sale public (explains why the prop "sold" so quickly). Then I ask them if they want to be on that list that way I can give them the "heads up" in advance as well. Every one of my respondents said "yes!". Try that technique and tell me how it works for you...

I will try that!

Okay, getting back to my seller who has a house worth $45K, needing appx $7K worth of repairs, w/a mortgage of $32K still pending...

I've been told to try doing a sandwich L/O which I understand (mostly) but I was wondering about legalities...

Does the mortgage still stay in the seller's name? If so, what happens to the title/deed of the house? How is this presented to the bank? This looks like a great way to help this seller out if only I knew the mechanics about it!

Love this! Great idea. Thank you for sharing!

Hey ya'll...

was wondering about the number we get after calculating comps; is that number the value of the house as it stands right then, or is it the after-repaired value (ARV)?

Essentially, ARV is the price you could sell the home at after the rehab. So it would usually be the comp value.

However, this assumes that your rehab of say $10k only increases the value of the property by $10k. However, if you rehab suddenly increases the value of property by $20k, your final ARV might be $10k over the comp value (e.g. you now have a wonderful deck, flower bed, stainless steel appliances, etc compared to other sold comps who didn't).

If anyone else has a different opinion, please share!

Oh, and some calculate ARV by having a Property Appraiser estimates the value by considering the repairs/rehab you plan to make. Some banks and governments do that to get a good estimate. But those appraisals are quite subjective so I wouldn't do that for investors (plus it costs money!).

You have to posted it under jobs offered under Real estate. Then if you go back and look thru the thread, somebody posted an scrip of what he put on CL to find an agent. I just copyed and paste and used the same thing. It works, good luck!!!

Need information on proof of funds letter, I have a letter from Coastal Funding and on the letter it states that I have been pre approve to purchase my home address can anyone please respond or give me the rihgt interpation. Thanks