30 Days Quick Cash Formula

Hi Ray1987, first of all I would like to congratulate you on receiving fast response from your bandit signs. I would like you to share with me on the google account number. How much did/do you pay? I just ordered majickjack number for my local number today for $39 plus $6 shiping, but it will be on trial for the first month.

Thanks in advance !

G

Google Voice is a free service. Go to http://google.com/voice to set it up.

We have a couple deals working and I'm wanting someone experienced to check our offers and our math. The first problem with the 2 deals we found from our bandit signs is that we don't have buyers in those areas. The signs they saw were in the part of town we were trying to score deals in. Anyway, here are the specs:

1st deal is a lady who is too old to care for her home. She is mostly moved out, but still have stuff in her house. I believe she can't afford the house based on the information she gave me, and it's possible that she might be close to foreclosure. Here it goes:

Asking $40,000 but negotiable
owes $35,500, will take payoff
ARV is $57,400
house needs new flooring, paint, and had the central air/heat stolen from it.
3 bed, 1 bath, 889 sq feet
rents in that area is $650

What would Matt Larson do?

2nd deal is a landlord who is exhausted and doesn't want the rental anymore...
Asking $90,000 (negotiable)
don't know payoff, but she is not willing to settle for payoff.
ARV is $103,000
rent in this area is $1050

house is move in ready except carpet needs cleaning and is only a year old. Owner has done a LOT of work on the house, central heat/air is new, ceramic tile is new, ect.ect.
4 bed, 2 bath 1254sq ft

What would Andrea Weule do?

Anyway, let me know if anyone has any additional questions or what your opinion is on what we should do/offer?

Wow, thank you Michelle so much, not only for this but for all the help your are providing us with all !!

G

The top deal you'd have to get for around $15k to flip/wholesale to a rehabber for $20k, even then it may be too tight and it's impossible without a short sale. It's likely not the best property to flip to a buy and hold guy either, because you'd have to buy for what she owes and add your $5k or so profit, leaving your buyer paying $40k then doing close to $10k in work. He could likely buy a similar property in the same area that won't need the work.

However, it's a prime property to do a mortgage assignment. (sub-to assignment) If you can get it for what she owes and get her to leave the mortgage on, (with all the work needed it's not worth much more than that) you'd advertise it as a "Seller Financing, Fixxer Upper" and find someone who would buy it with seller financing, do the work themselves and move in. You'd ask for around $5k down payment to assign the deal to the buyer, they'd move in and take the house sub-to.

You make $5k, she's able to sell, they do the work (costing around $4k if they do the work themselves) and get a nice home seller financed for $40k plus some work. It would be a pretty easy deal IMO... as long as the seller will leave the mortgage with the house.

This is my favorite type of deal to do. We even do them when there's no equity, or very little.

The 2nd deal is not a deal unless they will either (A) sell for around $70k, or (B) sell with seller financing. You'd flip it the same as what I described, pay her $90k and ask for a $10k assignment fee from the buyer... however, the seller would have to wait until the new buyer refinanced in a few years for her equity.

To be honest, she doesn't sound motivated enough.

nick

PS- Check to see if the taxes have been paid if you end up doing it, someone will have to pay them if not escrowed.

This just occurred to me as a way to find property with your agent doing a lot of the work. I stumbled upon this when an agent emailed me with a rejection to an offer of mine but then said she had a listing coming on the MLS in a few weeks. She'd be happy to show it to me before it hits the market. I told her I'd be interested in making an offer before it hits the MLS.

So, what I think would be a good idea is to have your agent market to other realtors/agents in their office or offices in the area you are targeting. Have your agent tell them that you'd be interested in making an offer on any up and coming listings that the other agents might have. That would be an AWESOME way of finding sellers. They are already in the mind set of selling and how awesome would it be to have an offer a week or two before the property hits the market.

I am planning on doing this.

From Dean's blog #128 for those of you that might have missed it:

http://www.deangraziosi.com/content/weekly-video-blog-128-how-make-low-o...

What is a Payoff? Is it the same as a buy-out?

I definitely will post my experiences. I'm getting back to following the RBBP as well though. I realized I had to nail down the Cash buyer info in my area. So I'm doing that now first, I have 110 or so to go through and it takes a little bit of work to match a name to the address. This site has been invaluable and has had most of the properties I've searched so far. They'll list the owner's name for free and charge extra for more info: http://datastore.netronline.com I tried PropertyShark.com but they have badly out of date records for Los Angeles County.

So I'm cranking through this task and focusing on it and then onwards to the next step in the RBBP.

But there are the 85 ways to find cash buyers mentioned in a blog post on this site. Just search it and bring it up (search engine is a bit slow for me right now)

One big one I'll do is call people with For Sale and For Rent ads in paper and online.

Hi Michelle, she owes $56K on it and is not willing to settle for payoff. She wants an extra $25K. With that conversation, I was able to knock another $9K off the price, but I'm not sure this will get me where I need to be to make a deal.

-Susan

I had a seller call me about her property..She caught me off guard so I just went with the flow..I swear there was a list of question to ask the seller..But I cant find it.Does anyone know what Im talking about

Here ya go:

http://www.deangraziosi.com/real-estate-forums/marketing-buyers-and-sell...

For future reference, you can just type a search in the "Search / Enter" bar in the upper left corner of any page and hit "enter". The magnifying glass doesn't work. That's what I just did and came up with this thread. (I entered "Questions to ask sellers")

It would probably be a good idea to watch the following vlog #127 before you watch #128 (in reference to Mark K's post #1025). 128 will just make more sense after watching 127.

http://www.deangraziosi.com/content/weekly-video-blog-127-new-awesome-ad...

Goodness you guys! I put up bandit signs Friday and Saturday and have 6 or 7 calls to make today to respondents! On top of that, I've had a couple of my investors call also just keeping in touch (I email them occassionally to keep my name fresh in their minds)! I can SMELL a deal coming on the horizon!

Right now I'm getting my bearings regarding making offers so I don't P/O potential sellers (blog#127 & #128) as well as calling the Success Academy to run the numbers by them...

The support I've received from everyone on this thread and other members on this site has been priceless. I haven't solidified a deal yet, but I feel I couldn't have gotten this far w/out all of you! I will give back!!!!

Love you all...

Well, this is my first daily log post. (one of the items in the book) I have started contacting real estate agents. So far the first one told me that to wholesale with neither money nor credit would be extremely difficult. Well, maybe, but I have to try and I have to start somewhere. I made a bad purchase several years ago that I have finally short saled and I will be freshly divorced in a month or so with less income than I need for my basic bills, so, I have a very strong incentive to succeed.

I made a couple of phone calls, and today I am going to meet a lady from Remax, she said she is working with investors, I plan to ask her if she also invests herself, I think this makes a difference too, hopefully she will answer all my questions. Halina

Hi, Nick -

What protections are in place for the seller if the buyer stops making the payments? How does the new buyer make payments to...the seller? Just not clear how the details of this would work.

-Steve and Susan

Hello,

Hi,

I wanted to know, I have a lot of flippers on my buyers list. For my first offer I'm only submitting offers on fixer-uppers that have been listed for a long time. I want to know when using the 25:1 rule, how do I determine how much I should offer on a fixer property? Obviously not 50 % off as suggested. Also for the 25:1 do you do this everytime you get ready to make offers, or only once or twice to see what percentage you should be taking off of the asking price/ or the market value price of the house when submitting offers. Also I was wondering do we always submit 25 offers, or is that just initially to see if we are getting our offers down low enough?

I know I asked this before, please bare with me. I'm short on time and can't really read through all the posts to see if this was answered already. If it has been, please send the link, or tell me which book I can read this in and the pages its on.

Thanks so much.

i'm very impressed with this forum and have finally caught up. i did want to respond to one of Michelle's questions that no one really answered. it's a few pages back, but it does need to be answered. i am a realtor in IN. Michelle asked about an addendum on a contract. an addendum supercedes anything in the contract, so basically what you have in the addendum is what will happen. it overrides the contract and/or is in addition to the contract. you also have the right to cross out anything on the contract and initial it when you do that. i know that you had your attorney draw up a contract for you to use, but he should have explained the addendum to you first.

congrats on the bandit signs. they are totally outlawed here except for the politicians.

Thanks for the tip

A week talking and emailing the realtor and giving him the POF letter he told me that it was not acceptable. So a week that was wasted to say the least, now I am looking for a new realtor hope to have a better experience. Have a couple to interview. Hope everyone have a great week.

Hi DG's family,
I am a newbie, really new to REI but very exciting to start something new. I bought RBBP like you guys did and studied half of it. I can see myself as a buy and hold kind of investor for now. I am so frustrated to see my saving in the bank and earning very ridiculous low interest. This is what I have been doing since i got RBBP, I am dealing with this property and here is my breakdowns;
Location: Nassau County, NY
Single Family, 2 Bed/ 1 bath, tenant in place ( Section 8 )
year buit 1940
Asking Price 120,000.00
---------------------------
Offer Price 75,000.00
Area ( Sq.ft) 758.00
Price per sq.ft 98.94
Attorney 1,000.00
Closing Cost 2,000.00
Estimate Rehab Budget 500.00
Total Investment Cost 78,500.00
-----------------------------
Annual Tax 7,000.00
Home Waranty Insurance -
Annual Insurance 2,500.00
Utilities per month 190.00
Monthly Rental 1,800.00 (includes utilities)
Property Mgmt 10% -
Repair/ Vacancy 5% 90.00
Total Monthly Expenses 1,071.67
Net Monthly Income 728.33
CAP rate 11.13

DO you think it's a good investment? Do I miss anything? It's a cash deal.
All comments and suggestions are very welcome.

Charles

Hello everyone,Where do we find the (30 Day QCF) videos of Dean and Matt? We are also members of the success academy,and look forward to learning all the property steps to this formula.

Thanks,
Dwayne & Dwight

Hey guys, hope everyone is kicking butt at 30-Day Quick Cash Formula!

I have 2 more days until the end of the 30-day challenge, and I now have about 3 counteroffers! 1 of them doesn't seem to be a great deal even though the seller countered with 20% off asking - it will still cash flow but it's just not an attractive deal. Another deal just asked for something closer to the purchase price - so I countered with $3,000 more since the request is so vague, waiting for response now.

I need some advice for the last deal though:
Asking: $149,900
Offered: $91,300
Comps: Low-end: $160,000 ; Average: $180,000
Listing agent estimated rehab cost: $30,000 (I dunno if it actually needs that much since I haven't seen the property, but there might be room there)

The seller already had a cash offer a little higher than mine (but "not too far off"). Also, apparently he has to decide soon due to sheriff sale.

I plan to offer $94,300, which is my max offer price based on the $20k rehab cost assuming ARV of $160,000. If it ends up needing more work, I'll go back to the seller for a price reduction.

My first question is: Do you usually use the low-end comp, or the average comp when calculating your offer? Sometimes it could make quite a huge difference (thousands of dollars).

Also on a side note, I have another deal that I'm planning on making an offer. The property has an 1.2 acre wooded lot, which is rare in the neighborhood (other properties have like 0.2 acre).

My question is: how do you price a property with a large lot? The comps in the area are in the 0.2 acre range, which doesn't help a lot. Is there a good rule of thumb? Also, could you subdivide the lot to something more profitable? I know Dean's done a lot of profitable subdivision deals.

Thanks for all your help. I don't think I could realistically get paid in 2 days, but I'm going to keep going at RBBP (I set myself up for victory by having a 30-day OR 60-day goal). Anyway, I'm having fun learning and doing real estate deals, hope you are too!

That's a really detailed breakdown! You sure don't like a newbie to me Charles

Before we analyze the numbers, did the seller accept your offer yet?

I haven't offered cause i want to make sure if I do homework real good, no rush though.
I just did Property Search from the County website, aww man... School tax + General Tax = 5027+2784= 7812, so now my Cap rate is reduced.
Last sold 2008 = 100K
FMV = 252K ( from the Nassau County)

Can I used FMV from the county website to analyze this????

If the buyer defaults, they'd need to be evicted, but they usually will leave on their own to avoid having a foreclosure on their credit. Keep in mind that they lose their down payment/assignment $ if they default/get foreclosed on. You need to be careful with who you put in, and have a lender work with them to help them refi soon.

The buyer can make payments to the seller or directly to the lender, but I prefer to have them pay an escrow company who handles the $. (the attorneys I use close these nationwide and provide the service for like $20 a month)

I've closed these myself as well, but prefer to have an attorney do it, it protects me better as well...

Nick

I have a seller who is basing the value of her property on the County Appraiser which is $15K MORE than the ARV after doing sold comps. What would make the county appraisal different than the after-sold-comps ARV? I'm going to call her and submit an offer, but need to have an answer ready.

County Appraisal is calculated within certain guidelines. They are using specific formulas for estimating the value of the property, as well as using comps. But sometimes it's geared towards the Bank(if the bank hires an Appraiser) The bottom line is you have to think what would you sell it for to your end buyer, what would he pay for that property. And I think foreclosure comps are gonna help you to arrive at that price.

It's my opinion, but always consult with Qualified Professional.

Dennis

Hi all. I took a chance on a newbie agent (1 year in the business) because the KW office manager said she was agressive and teachable. Man was he right!
The so-called REA "pros" who never followed through after the initial phone call are "off my list" and this REA is on.
Just thought I'd put it out there for any having trouble finding the "right" REA. If they are teachable (willing to learn and willing to accept change) they just might work out pretty good for you

Bob Woloss
"Accomplishment Creates Energy"