30 Days Quick Cash Formula

Pay close attention, because your word choice matters a lot here. You want to use an Assignment Agreement--not a Finder's Fee Agreement. In some jurisdictions, only a licensed agent/broker can legally collect a "finder's fee" (aka the commission) for helping someone to find a property. The agent/broker represents a buyer/seller, and isn't a primary (or someone who's directly involved with the deal [ie s/he isn't signing on the line as a buyer/seller]).

OTOH, you are one of the primaries: you're the buyer. You'll also become a seller when you assign/flip/wholesale your rights to that deal to your end-buyer.

Internalize that: get the terminology right.

Some agents/brokers will pounce all over the phrase "finder's fees", with their claws fully extended, intending to crush anyone who'd dare to "practice real-estate without a license" (or collect money from selling real-estate without having a real-estate license). Others (like Don Tepper [in NoVA--incidentally another Rock Star agent]) are more gracious and knowledgeable, and will ask if one meant to do an assignment.

Yes, one could argue that "finder's fee" and "assignment fee" are synonyms. Yet, the use of "finder's fee" might win him/her the first-place door-prize of a visit from a police officer or sheriff.

I prefer to avoid the drama, so I exclusively use "assignment fee" AND I explain that I'm one of the primaries.

I was wondering if anyone found a great realtor to work with in NJ and wouldn't mind referring them to me! PM me if you don't mind sharing! Thanks!

I spoke to two agents today. One wanted to know what area I wanted to invest in I told him the ones where the most transactions are. He also wanted to know did I have a proof of funds letter. I told him that I could get him one and he wants me to scan it to him..... I know I saw the proof of funds on this site can anyone help me out , Im not sure where I saw it.

You can get a proof of funds here:

http://www.coastal-funding.com/pof.html

Hi everyone,
I spotted a distressed-looking home in a nice neighborhood. Unlike all the other homes, this one is very ill kept. It is possibly vacant. How can I find out without insulting the owner?

The home is a stately Victorian in a great neighborhood. But it looks awful. High weeds fill the entire front yard, dry leaves cover the front steps, a window is covered over with a make-shift barrier that is falling off, the other upstairs window is filled with storage boxes. Dead-looking vegetation covers the side of the house.

But the usual recycle bin and trash bin stand in the driveway. Should I inquire about this house? I don't want to hurt somebody's feelings if they aren't wanting to sell!

Hello all,
I see the above discussion about getting proof of funding to show the Real Estate Agent. I do not have funds. Can I just tell the Real Estate Agent that I am going to assign the contract to one of my buyers?

Or is there another suggestion how I can navigate with complete honesty, cultivating trust? I have a personal commitment to that.

Please clarify. Thank you!

Today I had a great lunch with 2 people in the Chicago area that I have connected with through DG.com!! I cannot tell you how much of a breath of fresh air that it is to talk with people that are all very interested in doing what we do.

At lunch we have identified each other's strong points and weak points. The best part is we compliment each others skill sets. We are going to work together to get our deals done.

I highly encourage you to find fellow DGer's and network with them. I don't know about you but I have been feeling a "very alone" feeling while doing all of this. It is so great to work with them face to face.

Hey everybody... I am a little bit in stress right now, because I made a call today and I think I have found a good realtor (which is really great) and the realtor said that he will call me tomorrow to discuss the listings which he will narrow down by specific criteria ''as is'' ''vacant'' ''price redusction'' and all I know I will tell him to narrow the listing down to 25 properties... so that's all I know i am gona be saying in the second call... so my question is...

what else should I talk to realtor about when I talk to him the SECOND TIME? what questions he might ask talking to me second time?

I hope that someone might be concerned about the same questions that I have, so this post and reply from someone could be useful...

thanks in advance and take care

The initial call was supposed to be his mindset checking call. So you probably already know what he thinks about the market and his experience in working with investors and so on. He has to be open-minded and willing to do some leg work for you.
If you know his mindset and he is willing to work with you, on the second call tell him that you want to get him to filter through those properties and start submitting offers(1-5 offers a day, depends on you speed). So you guys have to meet up and go through the contract, to make a template out of it.
If you make it easier for your agent to work with you, he'll be willing to do the necessary work for you and you will be happy and start making money together.

Hope this helps.

Dennis

When realtor is asking - have I had ever invested in US berfore (as I am from United Kingdom), what should I say? Should I lie or tell the truth that I am a new investor, never invested in US before?!

Any info appreciated...

Okay no more posting for me. Time to get to reading.

to the people on here who want your realtor to make 2-5 offers a day, do you look at or inside these properties first???

Or do you just make blind offers and then if they get accepted, you then look and evaluate???

So what did you use the words, do you have any kind of form contract to suggest ?
I use for any of the buyer and give one to seller to be agreement, but i did not charge as much as 1k each contract
thank for sharing.

Don't bother trying to explain the assignment. Nearly 100% of the agents I've ever tried to explain that to didn't know about them beforehand, and weren't interested in facilitating those deals anyway.

Better to just be straight forward and to the point than to give a longer than needed explanation of "I buy houses and only do cash deals" speeches.

You tell someone you have cash, they expect to see cash. You tell them you flip, they'll be more comfortable towards other options.

Hope this helps.

We first make offers and then view the properties that accepted the offers.

Hi Micheal,
I read about your Assignment Of Contract, and now i got confused I am new! try to get the first assignment on buyer and sell to meet a contract!!
What Do i need a license You mean agent RE license?
Now, what am i going to do then?
sday

A side note to marketing your offers to your buyers, you want to create the sense of urgency when you show them a great deal. It helps a lot when you have many buyers you could sell the deal to. Just let them know individually that you're showing to other investors at the same time and the deal may get snapped up right away (or something along those lines). This will help prevent you from dealing with investors who want to wait and get the property themselves.

Hey, I don't see how you could insult the owner by inquiring about a property that's sitting there that makes no money for them. You're literally helping them by getting it off their hands. Plus, you'll never know until you ask. All these questions might just be that little voice in our heads that stops us from moving forward anyway.

Just be polite when you ask, and things will take care of themselves.

Are we getting off subject? It seems we are not following the steps in the program and instead focusing on problems that need to be worked out. I know problems need to be resolved but I feel the next step will be informative and helpful to all that did not get the book. let me know what the rest of you think.

Hello everyone, atroy is here. I'm not sure how to submit my offers. I found a realtor but i think i need to look for a different one, well that's a different story. here's my question. the success academy keeps telling me that I would Submit my offers based on the ARV. So, ARV-repairs-profit for my end buyer-my fee-holding cost (if any)=my maximum offer. If I did that, My realtor would have to pull a lot of comps on all the properties before I submit offers on. And for example Matt Larson and Some of you guys are saying to just submit %50 off asking price. OR is it the ARV price? If I would do that, would I just shotgun all my offers on all the houses that I get from my realtor, or I would still filter them down to the ones that have the highest probability of getting accepted. Such as 100+days on market, vacant, distressed, need work, that were purchased 10+ years ago, things like that. Should I look at properties before submitting offers or once accepted, go look at the property? Should I still submit offers on houses that have been on the market for over 100 days but don't need work done? Please clarify that for me. I want to go fast but what success academy is telling me I don't think will allow me to do. Please help, I'M STUCK!!!

I don't think so. We're essentially a class full of culinary students. Our instructors have demonstrated a recipe for us, and have given us the assignment to cook that dish. It's one thing to watch them do deals using that recipe. It's another thing to step into the kitchen, to select some produce, and to start slicing, dicing, and mixing. Some of us will pick up the wrong knife; others will grab the wrong bowl; others will grab the right knife and bowl, and will turn up the flame too high. And the list goes on. . . . The point is that we're all in the kitchen getting intimate with the ingredients and utensils. Eventually, we'll emerge as master chefs like our instructors too.

Newton's second law of motion also applies here: an object in motion tends to stay in motion, and an object at rest tends to stay at rest. It's more important that people get started--even if they make a series of mistakes. Mistakes can be corrected; inactivity can't.

Besides, everyone here isn't necessarily a newbie. Some of us are already experienced investors (myself included). I acquired the RBBP to help me to elevate my game (specifically in the areas of marketing/sales and human automation). So my next step might not be the same as yours. Some people like to do a bunch of things all at once; that's how they operate. They might be 50 or so steps ahead of me, and that's fine, because I'm going to the same destination at my own pace.

Arriving at our common destination is only one of the joys to experience. I like to stop and smell the roses along the way; that is another joy for me to experience.

You're kind of over-thinking this. Check out some of the stuff that Carol Stinson discussed about getting know your market. Have your agent to determine what the median sales price (MSP) is for the area(s) where you plan to invest. Next, have your agent run the comps for that median property; the resulting value will be your ARV (if he/she ran the CMA correctly). Afterward, target properties in that/those neighborhood(s) near the MSP, and then you won't have to redo the CMA every time.

If all of that sounds confusing, then don't worry about it. You can get the same results another way. Have your agent to give you a list of the cash sales within the past 90 days in that/those neighborhoods. Sort that list increasingly by sales price. If your target property is in an older neighborhood, then you should see 2 clusters of prices. Select the lower one, and average those values. That result is basically where you'll need to be. Of course, you'll want to run the numbers to verify that result, and I'd go with the lower figure.

Got the prop under contract then did an inspection over this weekend. Truth be told, this prop needs WAY too much work done to it. Being that the house isn't spacious and doesn't have any amneties (basement, garage, Central Heating & Air), it'd only rent below average for the area. Factoring in taxes, insurance, and the mortgage we'd have to take out on the house to repair it, it'd only cashflow appx $100/month (being that our estimates to repair the house are spot-on).

After all is said and done, we'd get the house at a 20% discount. Being so new to this still, I'm wondering if my time and money wouldn't be better spent elsewhere.

What do ya'll think?

Hi Andy,

I asked for the name of the agency in FL and was told that they do not deal with individuals. I will PM you the name and number of the credit repair guy in CA... he says he works nationwide... and you can call him and see if he is a fit for you.

Aniko

Move on!! But don't feel bad, you got a great education on this one I am sure. Keep it up, you have to evaluate the deal and pull the trigger or move on quickly. Volume is what it is all about. You will look at 25 to 50 deals to find a good one. $100 a month is not worth the risk. Don't waste your time trying to pound a round peg into a square hole! What if you have one months vacancy? The water heater dies? Negative cash flow, thats what! If you are going to buy and hold you should have a least $500 month cash flow AND 6 months of reserve in your account for each property you hold. Just my opinion of course.

Way to take action!!

Michael Mangham
MD Home Acquisitions LLC

Hey Michelle, I agree with Michael that it's probably not a great deal. When we're first starting off, we tend to underestimate costs by a huge margin. And having a $100/month cushion is probably a little risky. I believe your time and money would be better spent elsewhere based on the information you've provided so far.

NEXT!!!

P.S. I'm proud you for moving forward!

A 20% discount with respect to what? Assuming that you ran your numbers the way Matt did, then your offer should have been discounted by more than 20% of the ARV. OTOH, if you meant 20% of the list price, then don't base your offer price off of the list price.

Before tossing that lead, you could run your numbers again to figure out the price at which this deal would make sense. (Maybe the deal might make more sense if you were to pay 50% of what you initially offered.) Then you could go back to the seller, tell him/her/them that your inspection revealed that the property will require more work than you initially expected, and that you'd need to lower your offer price or walk.

I'd be purchasing this prop for what the seller owes on back taxes ($1700). Back taxes + repairs + closing costs = 80% of the prop's ARV. I figured it wouldn't be worth the time and effort financially; but thought maybe the experience would be worth it. after reading the advice of other's, now I'm figuring not! So, yes, NEXT!