OfflineIMPORTANT!!! Before you ask a question, please go through the thread's Table of Contents via the link below. Your question may have already been answered!
http://www.deangraziosi.com/real-estate-forums/everything-else/86517/30-...
Topics of regular discussion:
*Finding the Perfect Real Estate Agent
*Building a Buyer's List
*Ghost Ads and Bandit Signs
*Assignments VS Double Closings
*Contracts and Purchase Agreements
*Earnest Money
This will be updated as progress is made 
__________________
~Michelle Casey
"Now all glory to God, who is able, through his mighty power at work within us, to accomplish infinitely more than we might ask or think."~Ephesians 3:20
Instead of using your home address use the subject property address. If there isn't a specific property use Area Properties....for example we would say "Denver Metro Area Properties"
Hope this helps.
Chip & Andrea Weule
AC Investment Group, Inc.
I just wanted to thank everyone for all the information especially Michelle and Awaterloo
I have been lurking and reading everything and thought it is time to participate
Longdrv4u
Mike C
Longdrv4u
http://ibuyhousesgastonia.com
I just wanted to tell everybody to keep up the great work and keep pushing forward!
Rick Merritt
Trident Realty, LLC
Weak is he who permits his thoughts to control his actions; Strong is he who forces his actions to control his thoughts. --Og Mandino
Get your very own 1-800# at a great rate. Just click here:
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Hi my DG family, how do you reach into the total amount of costs that the property has: repair cost or else! because this repair cost has to be deducted before you come up with the offer price. I need some hint here if there is a simpler or easier method that I can follow.
____________________
I can see success is near !
It's been quite a race, since we've got RBBP. You'll guys just amazing. What we are doing here, is keeping each other accountable and motivated. It's really possible to do.
I'm working to put out offers with my agent-partner, and everything is going well.
So everybody do each day 1 thing and do it perfectly and we all be successful.
Thanks for your support.
Dennis
- Truly believe in yourself! -
Dennis
I was told by the Success Academy that a general estimate is $12/sq.ft BUT you'll find that to be a very generous estimate. Remember, you're only putting in offers w/an addendum in the contract that the "offer is subject to buyer’s walk-through inspection and/or buyer’s partners’ walk-through inspection and acceptance of same delivered to seller within thirty days of seller’s acceptance of this offer to purchase."
Focus on getting the offer accepted first--when one is accepted, that's when you'll do an actual walk through w/someone who can give you a more accurate estimate of repairs. If the estimate is more than what you figured, you can re-negotiate the offer price.
~Michelle Casey
"Now all glory to God, who is able, through his mighty power at work within us, to accomplish infinitely more than we might ask or think."~Ephesians 3:20
I was listening to Matt Larson's Mentor Replay last night and he mentioned calling For-Rent Ads for reaching possible cash-buyers! I'm about to tackle that list today, but was wondering how in the world to open up that convo once I get them on the phone. I know about the whole "I use creative marketing techniques to find the deals that no one else can find", but what to say before that...hmm...
Any suggestions?
~Michelle Casey
"Now all glory to God, who is able, through his mighty power at work within us, to accomplish infinitely more than we might ask or think."~Ephesians 3:20
I was given a list of landlords in my county by a tenant that's on social services.
Using guidance from the Success Academy and posts around on dg.com, you basically say, Hi, my name is *********** and I'm a private real estate investor, I saw your ad for property for rent, and was wondering if you were interested in selling it.
This will usually get them talking. If they are the curt and to the point type and say "No, I'm not" tell them that you lock in great deals on properties similar to what they have for rent and would they be ok with being put on your buyer's list. Then you can go into qualifying them if they aren't rushed for time.
FYI, this is a buyer's market which means you'll get more landlords selling than buying, but they're out there.
What to do with the sellers that have cash flowing properties but not a great deal of a price? You find investors just like Ali explained in EDGE 11 and focus on Cap rate instead.
Hope that helped.
Any suggestions?
Mark K.
Life Disclaimer: Past Failures are NOT indicative of Future Results.
Real Estate Glossary - Click Here for PDF
View My Everyday Blog - Click Here
Well yesterday was a neat day. I reached out to my buyers in Central Illinois. I have started to get estimates for the repairs needed. This one will need some work, but when I mentioned what was needed to my buyers they said "Oh that's not a problem." Hearing little things like that was pretty cool. Its been a wild ride so far, so just being told "not a problem" by my buyers was pretty soothing.
Anyway, when I initially reached out to them, I sent and email. 3 guys called me within 30 seconds of sending the email, that's pretty awesome. They all told me I got a really good deal if it is accepted by the bank (this is a short sale transaction).
My agent also told me I got another short sale accepted. I had 2 offers in 20 get accepted. This probably means I might be offering too much. The good news is that this property only needs 3k of nice simple work.
I am starting to see why short sales and bank owned properties might be a little more difficult to do. There is confusion between agents on when the inspection period starts. My agent is asking for earnest money checks, before I have even seen a signed contract. My buyers are only interested the short sale is at the contract price. Finally, I am using my own money for earnest money. Basically, what I have discovered is that a lot of people will be asking a lot of information from you all at once. So, the best thing you can do is....take a deep breath and slow down. Make sure you get everything done, and work at a pace that is comfortable for you. I am pretty familiar with the mechanics of a real estate transaction, but doing this as investment is brand new, so I have to work at a comfortable pace.
I have definitely learned a lot so far, and cannot wait to change some things up on the next round of offers.
Get rich or die tryin!!
I found myself a Realtor, who got everything I asked for and more back to me in less than 24 hours. Here's my problem. There have been no cash sales in the last 90 days!
Now what do I do? I've placed a ghost ad and only gotten 3 responses. None of them would talk to me since this property was no longer available.
Help!
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.
Who is responsible for getting the inspection done? Me or the agent?
Thanks.
Hello everyone. I've been quietly reading this amazing chain since starting the program late last month. Thanks to everyone who's posted. I feel like I'm in in a graduate program I've learned so much.
I'm starting out with no money so I'm focusing my energy on assignment deals to begin to build cash for future growth. In the last two weeks I've accomplished the following:
-found REA (three in three unique markets)
-communicated what I'm looking for and have begun property searches with each agent
-begun building my buyers list. I've used Ghost Ads, General Ads, researched investors from "cash sale" lists provided by my REA, and attended my first investor meeting.
-This weekend I made my first round of offers (25-1 system, right)
-5 offers in one market; 15 in second market and preparing to make 10 offers in third
-I've structured my offers as follows:
500.00 earnest money 5 days from accepted offer
14 day for inspections
30 day cash closing
assignment clause in place
I've provided POF letter c/o Coastal Funding
and I've been very careful determining my offer price based on research of comps..etc.
-From my group of 15 offers (Lexington MA area) I've been hit will the following: On every bank owned property my offers have been rejected because I've not provided 10% deposit. My agent and escrow people I've talked to all say that the banks require this or they won't even look at an offer.
I'm prepared to navigate around the earnest money (500 even 1000) but submitting a 10% deposit with each offer is something I've not anticipate and don't know how to work around.
Does anyone have an idea on how to navigate this challenge. I'm really excited by this program but can't seem to find a work-around in any of Dean's books or in this chain of posts (I promise I've looked!)...
Any feedback/ideas are greatly appreciated.
James Swan
Never, never, never, never give up.
James Swan
New Wall Enterprises, LLC
jrs4rei@****
Hello all, great to hear the progress everyone is experiencing. I wanted to wait until my website was presentable and my business cards rolled in before I began my marketing in earnest. But the business cards should arrive tomorrow and my website is all set so I'm excited to start blasting past Page 2 and onto 3 and more in quick succession.
I've signed up for a couple REI clubs in Los Angeles. One is free and looks to have some real good people running things:
http://irca-losangeles.com/
The other is a paid club but there is a really good membership of over 750 people and lots of great content, speakers, etc.: http://www.realestateclubla.com/ I'll be attending a seminar this Saturday on Lease Options, perhaps I can lease option my own underwater condo!
They both meet just 10 minutes from me, I'm real excited to start telling the world about my new avocation (and hopefully soon to be my vocation).
Call a couple of contractors in the area and make sure they give free estimates which 85% do and then use their estimate to reduce the bid price on property. I use this technique all the time to get the price where I need it.The seller can see how you arrived at your offer price.They will be willing to accept a lower offer when you can validate your offer.This way you don't loose the seller by going back and haggling on price again.Every deal will go smoother if you do your homework in advance.
kris
Kris
Experienced Investor of 12 years
I buy many REO properties but I don't use RE agents.This is for advanced investors or investors with money.I have never given a deposit not one time.The secret is I never buy 1,I always opt for 3-10 to get the best deal.Hand shake is always acceptable.
kris
Kris
Experienced Investor of 12 years
Hi Everyone,
This place is great with all the information we can share.
I am a newbie and I just received my RBBP package, unfortunately I couldn't view the Edge Videos that came with it as they are in ".VOB" file format. My sand alone Flash Player accepts ".flv" file format, but not .VOB.
I called DG's Tech Support, they sent me a link to download a Google Chrome browser Flash plugin, which I did download and installed with no error msg. However I still could not view the videos.
Did anyone experience the same thing? If so what tool did you use if any to convert .VOB to .flv files?
Also how do you view the videos from the browser once the plugin is installed and enabled?
Thanks for your help,
Stan
I'm not sure if every Realtor Association uses the same or similar purchase agreement contract, but I'm wondering about a provision in the contract that the Wichita Area Realtor Association uses. Before I share it, I had my REA add an addendum stating: "This offer is subject to buyer’s walk-through inspection and/or buyer’s partners’ walk-through inspection and acceptance of same delivered to seller within thirty days of seller’s acceptance of this offer to purchase."
Looking at provision 20 in the REA contract, it seems to contradict the added addendum. Provision 20 basically assumes that I've already walked through the property and inspected it prior to submitting an offer. My RE atty looked at the contract and said that it is geared more toward the interest of the seller and not the buyer, but also added that 95% of RE transactions in the county use the contract. He did offer to draft a custom, more efficient contract, that will be specific for the work I'm trying to do.
I guess I'm wondering if I'm not being too thorough here. What luck are you guys having submitting offers on the contracts that are supplied through your REA and are you putting in contingencies to allow you a way out?
Help a sista out here...
~Michelle Casey
"Now all glory to God, who is able, through his mighty power at work within us, to accomplish infinitely more than we might ask or think."~Ephesians 3:20
So if I understand you correctly, you don't have a dvd player?
Oh, think I misunderstood, you just can't play dvds on your computer.
Here: http://www.videolan.org/vlc/ VLC media player will play almost anything you throw at it and it's open source so it's free!
Keeps me from having a zillion different video players on my computer.
This place is great with all the information we can share.
I am a newbie and I just received my RBBP package, unfortunately I couldn't view the Edge Videos that came with it as they are in ".VOB" file format. My sand alone Flash Player accepts ".flv" file format, but not .VOB.
I called DG's Tech Support, they sent me a link to download a Google Chrome browser Flash plugin, which I did download and installed with no error msg. However I still could not view the videos.
Did anyone experience the same thing? If so what tool did you use if any to convert .VOB to .flv files?
Also how do you view the videos from the browser once the plugin is installed and enabled?
Thanks for your help,
Stan
Mark K.
Life Disclaimer: Past Failures are NOT indicative of Future Results.
Real Estate Glossary - Click Here for PDF
View My Everyday Blog - Click Here
You are responsible, ultimately.
That does NOT mean you have to inspect it personally. If that were true, noone would get a deal done.
This is where your Power Team members come in. You need to have a qualified person (inspector/contractor) inspect the property. Leverage their time and knowledge and have them report back to you (or your agent) in some official capacity (itemized report) so that you can take into account exactly what you are dealing with, and figuring if the numbers still make sense for you and your buyers
Your friend,
SHINE
Hey Michelle,
Every real estate association has a little different contract. There are so many different contracts out there to do the same thing. There are a couple of things that you can probably do with your situation.
1) Have you attorney draft the contract (this is probably the best option). That way it is geared to exactly what you want and or are trying to do.
2) You can have your real estate agent cross out any paragraphs that you don't want to use. (just double check your modifications with your attorney) So that way it will get rid of any contradicting clauses.
3) There should be a home inspection clause in your contract already that you can modify. A home inspection clause is a very standard thing in real estate contracts. It may be called a due diligence period too.
Get rich or die tryin!!
Hey everyone, I have been following this thread since the beginning and I must say that this is by far the best source of information I have ever received in real estate. I have heard a lot of the big time gurus speak and yes I have spent thousands on their books and CD courses but nothing has got me so close to my goals until I joined up with this incredible DG Family. I think the difference and the key element of this mysterious thing that was missing all this time was this thread. Don't get me wrong I mean the information in the Blue Print is cutting edge but having a family that cares and are all working in the same direction is so different than I have ever experienced. We all have different goals but we are all helping each other get up this mountain together. We are all struggling and going through challenges but we are all learning together as one huge powerful team.
Fish swim in large schools to ward off predictors and in a since, we are doing the same thing warding off the naysayers and negativity in our lives. As a single individual we are weak and fall easily to the world that wants to hold us back, but in this powerful group we are unstoppable.
This is my first entry in this thread but as I read I can feel the emotions of folks getting down and having their doubts but just know this; we are strong! We are powerful and together nothing or no one will take our prize of winning this victory. As long as we stay together we will all win what Dean has dreamed for each and everyone of us. No Man Left Behind! WE ARE ALL WINNERS!!!!!!!!
Now lets do this thing!!!!!!!!
Are you in the Academy? I have the books. They are greeaat! How much is the Academy?
I am in IRAQ and should have the Funds saved up for it when I come home.
Thanks
I am lost. I don't even know where I am suppose to start:(
LaRose
Hi everyone,
Thank you for all the information giving here. I've been reading this for last few days and I'm still on page 15 or something so I'm sorry that if somebody already had a same kind of question.
Anyway, I'm looking for my first REA right now. Today, I've got an email from a REA saying...
If want to invest and my team will do all the work, we can talk about lower-priced properties. What I mean is that we locate the home, handle the transaction, handle the remodel crews and handle the resale of the home. You invest the $ and we do all the work. We don't take any commissions on any of the sales, but we are 50/50 partners on the profits. We don't make anything unless you make money. You will make a lot more than $20k on a deal. Interested?
How can I answer this? Has anyone got offers like this from REA?
I appreciate any advice.
Im going to put a offer in tomorrow on this Property but I would like to see if you guys can help me out.
List $139,900
Zillow $116,700
Repairs $4000
Housing selling around $120,000
Renting between $1000 to $1200
My question is how can I justify asking at lease 50% off
Can someone do the math here for me so I can see if Im doing it right
Are you doing the RBBP? Try here...
http://www.deangraziosi.com/real-estate-forums/everything-else/86517/30-...
~Michelle Casey
"Now all glory to God, who is able, through his mighty power at work within us, to accomplish infinitely more than we might ask or think."~Ephesians 3:20
List $139,900
Zillow $116,700
Repairs $4000
Housing selling around $120,000
Renting between $1000 to $1200
My question is how can I justify asking at lease 50% off
Can someone do the math here for me so I can see if Im doing it right
Zillow is usually way off on their estimates. You really need to either check totalviewrealestate.com or trulia.com (when using trulia, it's best to Google the address and then see if trulia came up in the search) and see if they have comparables for the property that you're wanting to make an offer on.
Remember, that if you followed the criteria right, these props should've been filtered leaving properties that FHA/Conventional loans won't touch; repairs that retail buyers don't have the patience, money, or time to fix; and are most likely owned by banks who could care less about the property--they just want to get rid of it. Offering 50% of asking price might P/O a homeowner who still owes $30K more than what you're offering, but the way I see it, it's a buyers market and you're just playing the field as a saavy RE investor. Nothing should be taken personal--whether you're making low offers (which btw are based on your research) or your offers are being rejected. It's just a numbers game
~Michelle Casey
"Now all glory to God, who is able, through his mighty power at work within us, to accomplish infinitely more than we might ask or think."~Ephesians 3:20
I was doing research on the property and it was saying that she only owns 22k
quote]
Can you add an addendum that says all the addendums override any conflicting clauses? I know in California the REA's prefer to use the standard contract, and this seems like a good way to let them use it and still add my contingencies... win-win...
Just my 2 cents
Aniko
"If want to invest and my team will do all the work, we can talk about lower-priced properties. What I mean is that we locate the home, handle the transaction, handle the remodel crews and handle the resale of the home. You invest the $ and we do all the work. We don't take any commissions on any of the sales, but we are 50/50 partners on the profits. We don't make anything unless you make money. You will make a lot more than $20k on a deal. Interested?"
How much more than $20k per deal with lower priced properties? Do you share in the downside 50-50 also? I would prefer you have some skin in the game. What do you see as your downside to this proposal with no skin in the game?