30 Days Quick Cash Formula

I prefer to present my initial offers using a LOI, but I kept running into the opposite issue (most agents wanted me to submit an actual P&S). So now I'll lead with a phone call, and will ask if an agent for his/her preference. Most agents I work with now prefer to lead with a simple e-mail or a verbal offer, so that's what we'll do. Of course, we'd eventually get any accepted verbal offers also in writing.

Michelle,
There are a couple of websites of third party assessor companies that subcontract to the different towns out here in New England. I wonder if your REA has those links for your specific area (actually i'm sure they probably do).
For expample, we use Vision Appraisal and Avitar Associates.

Here's the links to give you an idea of how they work.
http://www.visionappraisal.com/databases/
http://www.avitarassociates.com/

Best regards,
Bob W

Thank you for sharing what is working for you!

This thread is awesome. Thanks everyone.
Finally made it to the 2nd section of the 30 day and I just got summoned for Trial Jury duty starting on September 6th.
I wonder what fantastic thing will happen with this interesting turn of events.
Maybe I'm going to meet a new key player for my sphere of influence.
Wow. Jury duty.
Thanks for letting me vent.
Bob W
"Accomplishment Creates Energy!"

A few years ago, I kept consistently having so many problems dealing with a lot of agents. I got so frustrated that I stopped going after deals with any agents involved; I focused on deals that I could do without any agents (ie FSBOs, probates, bankruptcies, short-paper, code violations, etc).

Awhile later, I started learning how to work more constructively with agents, and I've since close some deals also working with agents.

FYI, the primary source of my problems was that most agents insisted on controlling every aspect of a deal. We butted heads constantly, because I confronted them every time they tried. I even told several of them to ante up or else follow my lead, because it's my dollars on the line. That didn't go over too well--at least for them.

The secondary source of my problems was that I was terrified to use the phone, and most agents kept trying to force me to call them. Most wouldn't answer their e-mails, and many of the ones who did e-mailed me with a "call me at . . ." message. I rarely ever called.

After having spent years locking horns with them, I learned some techniques for how to manage them more effectively. Not that I'm a control freak, but I (as an IT person) was used to managing systems--not people. I had to learn how to be more "people friendly". (Maybe some others might be able to relate.)

Hello Everyone,

Okay, I have agent problems again. My real estate agent was very gung ho, sending me all sorts of properties and answering all emails etc, for the passed 3-4 days. She is now backing up though, after I told her a little more about the contracts, locking up properties, and the 25:1 rule. She's leary that assignments and double closing isn't legal and says that she has been getting information in the mail stating to beware of doing these sorts of deals. Now I have suspected myself that banks and other entities might see these deals as a threat, and might try to crack down on it. My opinion is it's too good to be true. I've already seen signs in place where they seem to be cracking down and making it hard for the small guy to do big dealings in real estate in California.

My question is this, where can I go to prove that these real estate contracts and transactional funding institutions are perfectly legal here in California. I'd like the info to be from a site or resource not associated with Deangraziosi.com She's a little biased and feels like there's some double dealing going on here. She doesn't know much anything about these contracts that I'm giving her, and I don't know very much myself to be able to deeply elaborate. I don't want to strong-arm her, because she's a really nice person and a real go-getter. I'd love to have her on my team.

Any help that you can give me at this point would be greatly appreciated.

Karemah

Hello Everyone,

Okay, I have agent problems again. My real estate agent was very gung ho, sending me all sorts of properties and answering all emails etc, for the passed 3-4 days. She is now backing up though, after I told her a little more about the contracts, locking up properties, and the 25:1 rule. She's leary that assignments and double closing isn't legal and says that she has been getting information in the mail stating to beware of doing these sorts of deals. Now I have suspected myself that banks and other entities might see these deals as a threat, and might try to crack down on it. My opinion is it's too good to be true. I've already seen signs in place where they seem to be cracking down and making it hard for the small guy to do big dealings in real estate in California.

My question is this, where can I go to prove that these real estate contracts and transactional funding institutions are perfectly legal here in California. I'd like the info to be from a site or resource not associated with Deangraziosi.com She's a little biased and feels like there's some double dealing going on here. She doesn't know much anything about these contracts that I'm giving her, and I don't know very much myself to be able to deeply elaborate. I don't want to strong-arm her, because she's a really nice person and a real go-getter. I'd love to have her on my team.

Any help that you can give me at this point would be greatly appreciated.

Karemah

I'm literally smiling ear-to-ear! Got a phonecall from a seller who saw my bandit sign, he left the property address and his asking price ($10K) in my Google Voice mailbox. House needs extensive work (roof, siding, heating & air which my husband is a H&A/C tech) but has no foundational probs...

anyhoo, I researched the property, and found out he owes 4 YEARS OF BACK TAXES totaling $1,700! I'm not sure when the county takes a property and sets it up to be auctioned, but I'm sure it'll be soon.

So I contacted the seller and basically told it to him like this: the amount of repairs needed to the house is substantial, plus there are 4 years of back taxes owed which I'm sure the county will collect by auctioning the house starting at the amt that is owed. Should the house make it to auction, your credit will take a hit. My husband and I are willing to take that burden from you right now. We will pay off those back taxes in exchange for a clear title to the house. Your credit doesn't take a hit, plus you dont have to worry about fixing the roof, HVAC system, siding, and what not.

HE AGREED! We're putting under contract tomorrow, a 2BD/1BTH House which averages $550/mo. in rental income for only $1,700 (actually more like $1670)!!!

I do have prayer requests if you don't mind sending a couple up! One: that he doesn't change his mind (meeting him tomorrow to sign purchase agreement); two, that the roof and siding have at least 3-5 yrs left on them; and THREE, that the foundation is structurally sound and there isn't any mold, termites, or other infestations (in Jesus' name, Amen).

We're going to see the house over the weekend to do an actual inspection w/our contractor to get a detailed estimate of repairs needed (yes there is a clause in our contract that will allow us to back out of the purchase, but hoping we won't need to exercise it). If the roof and siding still has a few years left, then my husband and I plan on purchasing the house ourselves and doing the work that needs to be done to get it movein ready (clean, paint, carpet is applicable) and then rent it out for $500-$550 a month!

Prayers being answered, my hubby and I are on our way to owning our very first investment property! And I thought we would have to wholesale for awhile before we could start having our own properties!

Say it with me now, GOD IS GOOD ALL THE TIME! Ephesians 3:20(see below)--read it, know it, believe it!

regarding my previous post, how would I actually go about paying off the tax lien on the house? We're not giving the money to the guy, but paying off the owed taxes. The seller understands he's not getting a dime--that the money is going towards paying the taxes owed on the house. How should that be worded in the purchase agreement just to CMA?

in the addendum i would put something like: "seller agrees that entire purchase price monies go to pay off back taxes and seller understands that he will not personally receive any monies for the purchase of this property". something like that. maybe that will give you a good start. be sure he initials or signs it.

Will there be a RE attorney involved in this? If I were in your shoes I'd want to make sure that everything is rock solid so the seller doesn't pull any shenanigans.

Just my 2¢

Basically, you could tie up the property with an option. Take that option, have the seller bring the deed to your title company of choice. Have the title company to record the option for you, and have the seller to deposit the deed into escrow. Order a title search to ensure that there aren't any other surprises. Check with the city/county code enforcement, zoning, etc to ensure that there aren't any other unreported liens, demolition orders, etc. Assuming all of that turns up clear, then exercise your option to purchase, and then close.

The nice thing about using the option is that you don't have to exercise it if you find that this acquisition might cost you FAR more than you anticipated.

Ok My agent told me to get a POF letter for the 25 properties that I want to place offers on. I went to the website "Insiders Cash". I'm a little confused with how to fill one out. At the site it states the following

Recipient of Letter:
Name of Bank if a short sale. If this is an REO and you are unsure of the Bank/Seller, it can be the listing agent.

Name:
The person to whom you are sending the letter. This can be left blank.

Address of the lender if a short sale:
Can be left blank, example: XXX STREET NAME, CITY, STATE, ZIP.

Place the name of your Company/LLC here that is purchasing the subject property:
MUST BE AN INC, LLC, TRUSTEE, or AS AGENT FOR CORP or it will not be processed. ( This is the one I dont understand) I dont have a LLC!!

Place the Address of the Subject Property Here:
Example: XXX STREET NAME, CITY, STATE, ZIP (CITY AND STATE ARE REQUIRED). Must be a specific address. This can not be a blanket request.

Proposed Loan Amount:
Insert a dollar amount without the dollar sign

Can someone help me and tell me how I go about filling one of these POF letter to cover mulitple properties??

I would really appreciate the help.

Congrats, that is so awesome! Good luck, and make sure you do your due diligence that the above people described. I hope it all goes well, and again, congrats!! I'm excited for you

I just thought of another thing: you said you and hubby may do the work yourselves, but consider this: I watched the VIP Mastermind Sessions DVD yesterday, and in it Dean talks about not getting bogged down with repairs etc. if you can make more money by finding other deals. My paraphrase, basically delegate to others any work that would cost less to hire someone to do, and spend your time finding other deals that you can make more money on. Of course, if it would cost an arm and a leg for the repairs, well, you get what I mean. Anyway, if you haven't watched that DVD yet, watch it! It's awesome!!

Again, congrats you!

Hi Michelle
Congratulation on that rental which you are currently putting under contract. Like Bill O'Rafferty said you will pick up some Perl on you investor journey
And it will come true to you . By the way my name is Tom I'm from Westminster , ca, that's my first month in Dean family, I did not post much, i do enjoy to read all your posts, do my home work and augment my knowledge . I have a long way to go but i already enjoy it a lot and hope to make some deals soon
Tom

Hey,

Thanks for the info.

How many deals have you done so far?

I think I have found the perfect agent. He even mentioned wholesaling.

He mentioned a current shortsale on the market for about $75,000, with ARP of about $80,000. He said offer $35,000 with a $10,000 repair cost. So I think he has the right mindset.

Thanks,

j

Do you know where I could get that "option" (contract or other form of paperwork)? I'm calling the Success Academy about it right now since I'm supposed to put the prop under contract today. I can ask them about the "option" also and maybe they'll have something they can email for me to use...

Good idea about having the title company do a title search. I've actually become very acquainted with the president of the title company I'm going to be doing my business with

Thank You! It is AWESOME! I did watch the VIP mastermind section and recall Dean speaking about that very thing! My husband used to be a maintenance man for a friend of his that is a general contractor and hopefully we'll be able to hire our friend to do the work. My husband can help our friend rehab the house (cutting down on rehab costs) while I attend to locking up more deals

"My husband can help our friend rehab the house (cutting down on rehab costs) while I attend to locking up more deals :-)"

Absolutely, I thought that exact same thing after I posted. I swear, this is so much fun!

I've literally lost count of how many I've done, but it's in the hundreds, so I'm not a newbie. I decided to participate in the RBBP to help me to elevate my game to the next level. I could sense something about the mindset of every DG all-star student that I lacked--and wanted to see in myself.

Carol Stinson mentioned in some of the videos how she was running circles around her competition. I was in that group, and I instantly recognized her credibility by what she said she did.

I'm putting it out there that I'm chasing after Matt and Ali; I'm going to catch them.

I'm a "seasoned" investor--meaning I've learned some lessons via my own experiences (of losing money on some deals). A business partner and I got burned on a recent (last month) deal, because we failed to do our due diligence thoroughly. We were about to buy a non-performing note (NPN), and we intended to short-sale it to another end-buyer. Although I was the tax sale and code violations expert on the team, my partner offered to take the lead on the DD, so that I could focus on several other notes. The back taxes were more than than the seller claimed; my partner didn't think of checking for code violations; and I didn't double-check my partner's work. We only lost a few hundred bucks, but I hate losing money over stupid stuff that I know I could have prevented. The lesson I learned is to always double-check my partner's work, and to have him double-check mine too.

So don't forget to check the code violations too. Those usually won't show up in a title search unless a lien has already been filed against the property. A demolition order might not--and did not in our case--show up on the title report.

For the option, you could basically accomplish that several different ways, but I'll give you 2. First, you could download an option contract. I'm sure that the Success Academy has to have one. I noticed there was a lease-option contract in the "lock it up" section of totalview. Second, you effectively could get what you'd need by tweaking a regular P&S (purchase and sale agreement) by adding the appropriate contingency. Don't get too caught up in all of the details. The main thing is that you don't want to blindly accept a quitclaim deed without knowing what you'd be getting into.

I swear I log on here after just one day and there are more than 50 new posts. You are all on fire!

Congratulations for getting on here and taking action and asking questions. If you are not running into a question each week....then you're not going enough. Make sure when you have questions get on here an ask. As you can see the DG family is happy to work through your questions with you.

Keep up your hard work!

Enjoy your weekend. - Looking forward to talking about contracts and paper work on Monday!

My RE agent e-mailed me the sales agreement which is 3 pages, so I can sign it and she would fill in the rest. I would like to know is this the contract that you can put your own contingencies in Like (14-30 days to inspection) or (purchase with approval of my partner). Or when my offer gets accepted, will there be another contract that I will sign that I will be able to put my on exit strategys in?

I don't want to ask my Agent, because then she would know that I'm new to this. Like Dean said "Fake it to you make it"!!!

Thanks so much for your insight! Do I check with the city or county for code violations?

Both. A few years ago, I did some DD on 2 properties that were within a couple blocks of each other. One was in Cleveland, and the other was in Cleveland Hts (a suburb). I checked for any code violations only at the county level. The agent for the one in in Cleveland Hts was also a professional engineer (meaning was certified [more on this later]), and he asked me whether I had also checked with the Cleveland Hts code enforcement for any violations.

It turns out that some of the Cleveland Hts code violations wouldn't show up at the county level until a lien had been filed; whereas, most of them in Cleveland would show up. That was a nice catch; I didn't lose any money on that one.

On some projects, it's good to have a professional engineer and/or a "fixer". Either one will have excellent connections, and would be able to walk a project through to completion. Some projects just wouldn't get completed without having a professional engineer or "fixer" on the team.

A "fixer" is basically a consultant (could be 1 person or a firm)--typically someone who used to work for the government--who knows the process for getting projects accepted and has the connections to be able to get them approved. They're expensive--but well worth it.

The property in Cleveland Hts was a shell, and it had lots of code violations. Had I tried to submit my plans without a professional engineer or "fixer", I would have been required to deposit more funds into the escrow, and the approval process would have taken at least twice as long.

Congratulations, nicely done!

I believe the whole deal now falls on the rehab/repair costs. The more you could minimize the costs, the better a deal it could be! Also, take into account the insurance, taxes, maintenance, vacancy, etc when you calculate your ROI.

Way to go Michelle, make the DG Family proud!!

We're going today to get an estimate of repairs and costs done for that very reason. We're taking everything into acct, even whether the house will need appliances and/or new fixtures in the kitchen and bathroom. If the costs exceed the house's current value, we'll back out. HOPEFULLY that won't be the case.

I'll keep everyone updated...

Where's Awaterloo lately? We haven't heard from him on here for a while. How's it going, Awaterloo?