30 Days Quick Cash Formula

Amazing to see how far all of us in the DG family have come!

Keep pushing everyone!

You might want to check out some stuff that Jeff Watson (an attorney based in OH [near Cleveland]) has covered on this.

Imagine finding a short-sale deal, tying it up, and doing a double-close with your end-buyer. Let's say that your seller finds out later that you made $20K from that sale, lawyers up, and sues you for stealing his/her equity. Whether or not you'd win your case, you'd lose (eg time, money, energy, etc). Now, let's say that the seller wins, and the seller's attorney somehow convinces the court to award his/her client triple damages and legal fees ($10K for this purpose). Keep in mind that every judgment also has an associated interest rate. Let's also say that your LP doesn't have the entire $70+K. That attorney could levy whatever assets he/she wants from your LP, and then go after your personal assets (eg all of the cash in your personal savings/checking account) for the remainder.

Having a properly structured entity would help to diminish--but not entirely eliminate--the possibility that you'd get sued. Keep in mind that attorneys help to write the laws, so they obviously know how to work them. The point is a decent asset protection strategy will help to make you to various attorneys like a monarch butterfly is to birds: very unsavory.

BTW, I hope all of this doesn't cause others to panic or to become paralyzed. A few of my mentors are attorneys. As a result, I've never done a real-estate transaction in my own name.

Well, over the past few days I have been working hard on passing these deals off to some buyers! This home literally needs less than 10k of work!! The after repair value would be 100K. I made this video tour of the home today. This is my first video like this. Any comments would be appreciated on what to focus on more or less. The camera is off my phone and youtube degrades the quality a little bit.

What are your thoughts?

http://www.youtube.com/watch?v=lgO5Fy_XgOY

A lot of properties are over priced in the MLS. I think I need to lower my original offer price. I have been reaching agreements and getting properties under contract for 40% of the list price.

When I shop the property to my buyers, they are all telling me its expensive. There is a fine line in trying to get sellers to deal with you if you submit too low of an offer, but trying to get a deal worked out with your buyer, is tough.

I am starting to ask myself if my buyers are just waiting for me to pull out of the deal so they can go get the property. This could just be a sign that I am not getting them at deep enough discounts.

Thoughts?

If you think this is bad, try FSBO, it's really ridiculous. They are asking way above the fair market value for their homes, and they don't want to budge. It's possible that 40% discount is about where the sweet spot is. That's what I was going to start with. Is this for fixers, or upgraded homes?

Karemah

How would I go about finding the listing agent?

Thanks,
Karemah

Great video Very informative.

The only thing I would suggest, (and please disregard this comment if you're already planning on doing this), is that you post that video under a different YouTube account if you're planning on showing this video to your buyers. The reason I'm suggesting this is because, and again I may be wrong, but it may not be a good idea for your buyers to see other videos you've made, such as the video of you calling back a buyer in regards to a ghost ad.

You're doing great!

Enter the MLS listing number and the words "listing agent" into Google. One of the results will have the listing agent. You can probably use the address instead of the listing number too, tho I haven't tried that.

Aniko

Revisit your list of cash sales. Notice the prices at which those properties sold. In older, more established neighborhoods, you'll notice 2 clusters of prices. The lower cluster is the set of prices where the investors are buying; similarly, the higher cluster is the set of prices where the retail buyers are buying.

Never base your offer off the list price. Only base it off of the ARV. For example, let's say the list price is $150K, the ARV is $100K, the property needs $20K in repairs, and you want an assignment fee of $3K. I wouldn't offer more than $42K.

Rather than trashing those leads, ask your buyers what they'd be willing to pay for those properties. Then go back to the seller with a "good news, bad news . . . scenario". The good news is they're going to sell their house, and the bad news is that they're going to have to lower their price some more, because the repairs were more extensive than you initially thought. Some sellers will balk and walk; others will lower that price and close.

Thanks for the info...
I'll try not to get analysis paralysis!

Aniko

I love the way you have taken action and are getting things done! I may be wrong here, but I think I would emphasize and video all the positives and not mention, and not focus the video on, any of the negatives. For instance, I might say "it has a new water heater and furnace and comes with a washer and dryer" and leave out the part about the dryer being old, etc. I guess I am saying to point out all the good features and let the buyer come and decide what kind of rehab is needed.

Thanks for sharing your adventure with us!
Aniko

Hi and congratulations on the video. You covered the property really well. The wood floors should be a great selling point! I would suggest that you slow down when panning through the rooms and try to limit the up/down movements ... I was getting a little dizzy. And, I agree with Aniko ... the old furniture and ugly rugs are not what you're selling, so don't comment on them. Just stick with the positive features of what you are offering. You've got a friendly style and a good speaking voice, and you move at an easy pace. You're a natural for videos, so keep them coming! Thanks for sharing.

Ronnie B

Thanks for the post, just the words I was looking for to break the ice with a realtor.

Thanks everybody for the great and informative posts. I started looking into the RBBP, 30D QCF, DG’s new book that I got and the Forums it is so much information along with everything else I am doing. Plus, I have to look for a new place to live. In fact, I feel overwhelmed and going in multiple directions possibly wasting time on things that aren't pertinent to RIGHT NOW like looking a properties and becoming more familiar with neighborhoods. I wrote and posted my Whys and wrote down my goals and that may seem like baby steps, but it is very important to put that in writing. I am doing my best to stay on track and follow the specific order DG outlined so nicely which is real helpful along with the Forum postings. I know I am behind in the QCF and it is a "30-Day" Formula, but I have still a few days to push it. Will be calling the KW and ReMax realtors tomorrow from the list I made up! THANK YOU, Dean and everyone!

Very Nice Video, I see your marketing yourself pretty heavily on youtube. Great!
Keep at it,
Karemah

Hello all, quick update from Soccer Guy in LA. I've been faithfully trudging through part 2/3 of the 30DQCF and have all my envelopes ready to go except for their stamps for all the Cash Buyers my REAs gave me. That is about 100 or so letters! I'll be caling as many of the rest of the cash buyers I could find potential phone numbers for in the next couple of days. If those numbers aren't accurate I'll note the fact and send a letter instead.

I'll look to see what else I can do as well, I think starting call Newspaper ads and posting flyers elsewhere are some other good next steps.

I haven't started to explore this yet but I got a complimentary annual membership to Angie's List and ti seem's to be a good way to find reputable handymen, contractors and good deals. Anybody else have good experiences with this service? I'll start looking into it as I find Handy Men and Contractors and relay my experiences. May be well worth the $32 or so a year.

Any other sources for Handymen and Contractors other than local contractor meetings or newspaper/etc. listings?

- Soccer Guy in LA

Thanks for the info on finding the listing agent. I'll get on it asap.

Karemah

I was wondering about other's experiences in promoting themselves as REIs on Facebook to their Facebook friends. I will try to put out a message now that isn't a sales pitch/spam but it is a bit of a Facebook rule to stick with personal stuff and away from business as much as possible on there. It sounds like we are walking a line on this. But if someone can post a meaningless, yet funny video, we should be able to post how our services can help improve other's lives. So I'm going with that philosophy and the idea that I'm "Serving others" and not selling others.

It is proving to be tough to find the right agent that needs to fit into the circle, that he or she needs to fit into but it is the one person that can make or break the team.so if they dont fit they just have to be dropped, and move on to the next agent.

Hi, I'm going rather slow at it, but I am working on a facebook business page for that I also have a twitter account. I need to turn up the heat on marketing myself. I guess it can get a bit overwhelming when you're trying to find buyers, deals, study the techniques and promote yourself. Not to mention other duties outside of business. However I think that you can def. get away with promoting yourself on your own personal page. But if you want to get serious about it you'll want to have a business page. Once I get my page up and running I'll let you know how its going.

Karemah

Well, I have written down my why and my goals, have watched the videos... but for some reason am very hung up on jumping out of my comfort zone to call real estate agents. I have looked up the offices in my area and have the phone numbers in front of me, but can't seem to get myself to pick up the phone. I know I am way far behind in the 30 day formula (I should almost have my first deal right?) and I guess am hoping that by posting it on here, it will force me over my line of comfort and help me be accountable. Hopefully I am not the only one who is having this inner struggle... I think I'm just afraid of saying the wrong thing and blowing it.

First of all as far as being behind this is set up for 30 days but does not mean that if it takes longer you are behind or doing something wrong. Everybody does things at their own pace .So do not worry about that. Something Dean said on a blog one time I think of when I feel like Im not getting anywhere which was basically "as long as you did something toward your goals today then thats something if you spent 5 min then your 5 min closer than you where yesterday"
Now as far as calling the agent I think that that was hard for most people .I never thought of it as being hard since I've spent years dealing with customers on phone But ..when it came time to dial that number same thing I stared at it went over my script again took a while to dial the whole # .. Once I did though it really was not bad . I would say think of it like this 1st of all they dont know you 2nd anyone calling them is a pottential for them to make money so they will usually be very easy to speak with . Just stick to script make it your own if having trouble w exact wording and you will find its not that bad

good luck!!!

I'm that introverted IT guy. Although I felt comfortable talking to people (about stuff I know) in person, I was terrified to make or receive calls a few years ago. I also dreaded saying something stupid, and blowing it. So I empathize with you 100%.

I used to sit with my list of numbers next to the phone for months. I'd glare at numbers and phone; they'd glare back at me; and then I'd freeze up every time I lifted the phone.

I was so terrified of making/receiving calls that I'd only work with agents who were willing to correspond with me exclusively via e-mail. Incidentally, one of my biggest pet peeves is when an agent will send me an e-mail with a "call me . . ." message. I trashed most of those e-mails, but I called a few of them back at odd hours--hoping to get their voice mail--and left a message for them to e-mail me.

Of course, a few agents horrified me by actually picking up the phone, and then I stumbled and bumbled through those calls. I basically introduced myself as an investor. I also explained that I'm an IT guy, and that I write much better than I speak.

Ultimately, I ended up getting over it the same way that my paternal grandfather helped me to get over my fear of heights: cold turkey. He held my hand, and walked me all the way up and down some bleachers until I was no longer afraid to do it by myself. Similarly, I put a list of 50 leads next to my phone, wrote out my scripts, and blasted away.

Although I don't remember everything I said, I do remember that I was still terrified while making every call. The irony is that I was already an experienced investor even then; yet, I was paralyzed by fear. Here's another irony: I learned while making my cold calls that most of the agents knew far less than I already did.

I still get some knots in my belly when making some calls. Whenever that happens, I'll reflect on the bleachers, and I'll plow through those obstacles.

What a great response from a great group of people! I appreciate your comments very much so. For my next property video, I'll be sure to focus on the positives a little bit more, be a lot more enthusiastic, and keep the camera still.

I did also make a business account for these as well. That way my other videos don't pop up.

Just got word a property in Michigan I submitted an offer on get accepted. This will be a good time to see if my Realtor can help me sell this, and use the techniques I use here in Chicago to try and sell my properties.

I have also develop a proforma but I have gotten a lot of critiques on it. It needs to be more specific and better estimates on the comps.

Yes, I am trying only charging for fee to finder in contract I send the original contract that send me by "my mentor" I got slap me back by buyer, with the please rewrite or question me as " Do I know what is investor be?" Because the contract fee is content to pay upon the signing contract said:

Finder’s Fee Contract

Date: _______________

This contract is between _________________________________ (Assignor)

&
_________________________________ (Assignee)

The two parties enter into an agreement for the sale and receipt of address (es) of potential investment properties.

The Assignee agrees to pay Assignor the total sum of $_______ for each of the ___ address (es) and only the addresses listed below. The Assignee agrees to pay in full the total sum of $______ to the Assignor upon receipt of said address in the form of (cash, cashiers check, etc.).

The Assignor agrees to provide the addresses of potential investment properties that fit within the predetermined guidelines set forth and agreed upon by both the Assignor and Assignee.
The Assignee agrees that the Assignor is not responsible for providing additional research or information regarding said properties, unless otherwise previously agreed upon. The Assignee agrees the Assignor does not warrant or guarantee the investment potential, condition, or level of distress of any property. The Assignor agrees that by accepting payment in full he/she relinquishes all further claims both monetary and non-monetary against the properties provided to the Assignee.

Property List:

1. _________________________________________________________________

2. _________________________________________________________________

3. _________________________________________________________________

4. _________________________________________________________________

Signed & Dated

_____________ ________________________________________
(Date) (Assignor)
_____________ ________________________________________
(Date) (Assignee)

After, I send this form; two of parties, do not agree what is?

Help me find the better contract any one, please show me and link me to the right one!!

My purpose is: just want to charge fee to find the two (buy-sell) meet together then pay fee after they finish on transaction and walk with only fee, and this is the first assignment that i am try to make

Totally embarrassing that buyer's investor come to give me all these questions, that are you investor? are you agent?
I will say "this is my first" but I did not say, THANK GOODNESS
NEED ADVICE FOR ANY ONE

SDAY

Hi Alex,
I have see you posting this one i am into funding, Can I put in request the fund or just the reference for funding approved , and if I want to loan more than a year are they will be problem or just the front of investor showoff!!!

thanks
sday

Thank to post all interest and helpful info