30 Days Quick Cash Formula

You have several options for handling this. Although you could use a NCND, it might not be enforceable, and you'd still have to rely on the other wholesaler to not poach buyers from your list. Another way to structure your deal in a way that won't reveal as many details about your buyer. For example, you could double close your transaction with the other wholesaler using a trust with another entity as its beneficiary. An astute counter-party will know how to dig up the info no matter how deeply you'd nest that info, but most others will be stopped by the trust (if structured properly). You could also use the NCND with the trust, and the list goes on. . . .

Nevertheless, that's too much work IMHO. If I don't trust a wholesaler, then I probably won't offer to co-wholesale any deals with him/her. That's cheaper.

I'm excited and scared! We just locked up our first property. It's a brick duplex. One bedroom, one bathroom on each side. Rent factors in the area are around $700/month, so we figured $550 each side (might be shooting a bit low there). It's been abandoned for a while, not sure how long, but the neighborhood is gorgeous. The roof and foundation look great. Some windows need replaced. All the floors and walls need work. The kitchen cabinets look salvageable, but one side needs a new counter top and kitchen sink. Anyway, we estimate the rehab around $21,000 and we have it locked up at $32,500. With a $5,000 assignment fee, the buyer will be all in at $58,500 and be getting rent at $1100/month on the low end. So, wte think its a great deal. Our first potential buyer is looking at it today. We are giving him until noon tomorrow to make a decision and if he doesn't bite, we will market it to the rest of our list. The buyer I'm speaking of has acted as our mentor, so to speak, so we are giving him special preference.

He specifically is looking for rental properties that get 1.5 to 2% rent factor to investment in the area that this is locked up in. It's exactly what he has ordered. And, if he doesn't want it, he will give us exact feedback as to why, so that helps us learn.

I'm a little nervous because we put up $500 of our own earnest money. But, if our buyer take this, we will just have him pay us back the earnest money. Anyway, positive thoughts that this goes through so we will no longer be virgins. Yippiededoo!

Could someone please provide the correct route/email address that would help me contact either/both of the above.
I am brand new to this and have read all of the instructions.

God Bless

David S Brown

Go to the Top Users link on the sidebar here, look for Rina and freeindeed, and click on the names to go to their Profile pages. If you're interested in signing up for Carol's wholesaling team, I recommend going directly to her website link on the profile, and filling out an application there.
Welcome, and best of luck,
Jennifer E

congratulations on your first deal! how exciting! enjoy it because no deal is as sweet as the first.

Thank you for the thoughts, Linda!

I'm on my first 5 days. Good to know about this question regarding the bank & proof of funds, thanks.

Thanks man. It's true that you can't do a deal with a bad guy no matter how much paperwork you have, but you can always rely on a handshake if you're dealing with a good guy.

working on week one..a little slow. i am truck driver and the long hours and time necessary to recoup are slowing me down but moving forward. one step at a time.

You're in a marathon, so don't worry about sprinting. At least you're learning it the right way from the start. You'll be able to speed up in time.

I am loving this Book! Today ends my first five day assignment and I have looked at four houses and my agent is submitting four offers today!! All of them WAY below market value that have sat on the market for a long time. We'll see if anything happens from here!

I just had to tell you guys. I haven't been this productive since mid-2010

Ogal Gaines
LAGO Acquisition, LLC

Hello,

Okay I was talking to an agent the other day who was saying that the banks are starting to get more suspicious of the pof letters that investors and wholesalers are getting. Anyone experiencing problems with pof letter? I'm in san diego. Any one else in San Diego?

Thanks

Michelle,
Did you try advertising it on Craigslist and the other on line ads that we have learned about?

What about local construction companies- would any of their employees be interested in it (maybe a flyer to include with their paycheck)-- sell it to the owner as a "free" employee benefit that they can offer to put them head and shoulders above the competition. OR maybe the owner would want to fix it up and donate it to Habitat or some other cause... planting the seed may be all it takes and you can get an assignment fee.

What about flyers for people at Home Depot/ Lowes or the bulletin board at Ace or True Value Hardware (where do it yourselfers go) OR a local apartment complex or church- maybe someone has cash, is handy, but cannot get a mortgage or maybe they will see the flyer at the perfect time in their life.

You can give yourself a small window of time to see what you can drum up.

Let us know how you are doing!
Wendy

What is JV and a flex option?

I haven't read all the posts in this thread but I have not seen any mentioning auctions as a place for finding buyers. In case you haven't learned this one yet, most buyers at auctions are cash buyers. They have to be able to produce funds same day of auction or at least show POF prior to bidding then pay up within 24 hours, (if not on the spot).

If you have some properties under contract I recommend putting together a printed prospectus on each one, maybe keep a 3 ring binder of them. Then take it with you to your local RE auctions and show them to those folks you see bidding or anyone else that shows an interest. If they aren't interested in your deals you can still add them to your list, right?

I met an active investor by striking up conversation with one that wasn't bidding and discovered he had two bird dogs there with him handling the actual bidding. I never would have known he was bidding if I had not been talking to him.

NOTE: If you go to auctions you will see many bidders with phones up to their ears (proxy bidders) they are working for buyers that are very active. You may still be able to talk to these bird dogs and market to their boss. If the deal is good enough the buyer will pay a fee to his bird dog as well as your profit. Some may see you as competition but others will realize they can make a buck off you too.

BTW You guys are very inspiring, Thanks
Steve

Great idea! Greg Murphy mentioned this in The Edge 2011 dvd too. I thought this was brilliant, although I haven't had a chance to physically attend RE auctions thus far.

Definitely give this a try if you can. And by the way, it'd be awesome to have a 'proxy bidder' working for you if you're interested in bidding on any properties in the future (when you have the cash). That day will surely come for many of us

Joyce, he was talking about joint venture (JV), and non-exclusive, flexible real estate option, which is basically an option contract that allows you to market a certain property to your buyers, while at the same time the seller also could sell it to any buyer. Essentially, the deal is not 'tied up' by you, but if you manage to find a buyer before the seller does, you will then exercise the option and make a profit.

Hope that helps!

Soccer Guy in LA got some cool cash buyers via Letters already. I've only had 2 contacts so far from the 103 letters but they have both been awesome.

I also was at the Experts Academy conference this past weekend and got to see Dean Graziosi talk on stage live on Saturday night, so that was great as well.

I look forward to making calls to other buyers I had the phone numbers of and attending some really good REI Club meetings tomorrow and possibly this weekend (a 2 day seminar, debating checking it out or devoting time to follow 30DQCF).

Hello,

Gotta another question about pofs. I have most of the agents telling me that we need to have a proof of funds letter before submitting an offer on a property is that the dg way? I thought you needed to have that once an offer was accepted. Please let me know.

Thanks,
Karemah

How's everyone doing with 30DQC? Dean mentioned that in the 2nd or 3rd week you tend to get sucked into your old life, but I actually had the feelings after the 30-day period.

I haven't done my first deal yet, but things are surely picking up fast these days. You really have to go through the dip to get to the next level.

I almost had a great deal under contract (it's a pre-foreclosure), the list price was $150k, the offer price was a lil over $100k, rehab/remodel costs about $40k, and the ARV is over 200k (quick sale). So there was enough room for profit. BUT the owner hesitated on accepting the offer, and unfortunately the property went into foreclosure over the weekend.

My question is, how do you save a deal that just went into foreclosure? It costs the bank $30k or more to foreclose on a property, I'm sure they would rather take the money right now and save the hassle. Any thoughts?

In fact, I'm checking for more info on the process -- I should call the bank and ask, but just wanted to see if anyone has faced similar situation before.

Thanks, and lastly...KEEP MOVING!!!

Depending upon where that deal was, you might have some other ways to make some money from that lead.

I really works wonders. Those letters to cash buyers produce great results. I sent out 55 letters and got 2 solid cash buyers put on my list, as well as another wholesaler too.

They are all flipper, so they want more ROI on a deal. So now I'm calling for Rent signs to get some landlord style buyers on my list.

My agent keeps sending me houses that match my criteria and I'm sifting through them to find those that we gonna put out offers on.

Also bandit signs in the progress, gonna put them up on Friday in my scouting area

Thanks to everybody for keeping each other accountable and answering questions!

Dennis

You can get a POF letter from many transactional funding lenders. Requesting this from them should not obligate you to actually using their funds at all. Of course they are hoping you will and may ask you questions about the property and such but some of these companies are used to providing these letters to investors who never, or rarely, use their money. This is common practice so don't be afraid to ask. There are a few of them listed earlier in this post. Nice job guys.

Rumor has it that the banks are seeing a lot of letters from coastal and wising up to wholesalers using transactional funds to flip. I know it shouldn't matter but some of these guys are leery of wholesalers and want to believe they are selling directly to the money man. If the Coastal Funding letters are working though than happily disregard.

Steve

Most agents are trained to ask for POFs first. There's no legal requirement to do so; they justify the request with the reasoning that they don't want to waste time with someone who doesn't have any money.

Often, whenever I run into agents who seem to go skipped CD on me on POFs, I'll explain that the corporate policy of my company prohibits me from disclosing that kind of sensitive information before we're under contract. I've even told a few agents, who got extremely pushy and ticked me off, that I'd produce one after they showed me theirs. Of course, they usually protested reasoning that they didn't know me, and I interjected that I also didn't know them.

Now, I'll tell them directly about my corporate policy, and I'll ask them if they would like to continue. Some will; others won't. I have a four letter word for the others: NEXT!

lol I enjoyed the analogy.

Not only are some banks rejecting the POFs from some well-known transactional funders, they're also rejecting pre-quals from certain lenders.

I called an agent on Friday to qualify her. Almost immediately after greeting me, she demanded to see a POF and pre-qual. I explained that I work with multiple funding sources, and that I'd sometimes use creative financing to acquire properties. Then she drilled me on the identity of my lenders, and tried to get me to qualify with one of her lenders. I politely thanked her, told her that I'd check out her referral, and that I'd give my own lenders first dibs since we already have an established relationship.

Hey,

Thanks to the two of you for your information and advise about pof letters.
I have a good idea of what's going on now. Will keep you posted.

Karemah

Think of how peeved I would be. That's the mindset.

And yes, most agents are very much so up on the transactional funding letters, etc.

[/quote]

I explained that I work with multiple funding sources, and that I'd sometimes use creative financing to acquire properties. [/quote]

I, if I were an arsehole or very leery of your expertise would ask you to explain how you used creative financing on your last three deals and what funding sources you used.

Your explanation would come down to someone who flipped the property(ies), if you did indeed. That's why I say to people who aren't as experienced to just say "I flip contracts"; when you start explanations in which you sound like you're speaking over people, you set off flags. And flags lead to questions. And more questions tend to lead to the truth or you fumbling and a potential deal done.

I found a REA to work with me last Saturday and she seemed real nice on the phone. Then I sent her a follow up email with some things to do as you had suggested. I have not heard back from her yet. I will give it another day before I call her back or call more agents. How many REA do you all work with, is it just one? Then I posted two Ghost Ads on Craigslist last night and I got eagar cash buyers sending me emails. So I have to call them back and start the buyer's list. This stuff works!!

Hi all,

I am gearing up to taking the plunge and making an offer (beyond nervous and procrastinating!!)... sooo.. I went to Coastal-Funding and printed a POF for the property. There were several items on the page that I believe would cause the REA/bank to question the validty of the letter:

1 - "page 1 of 1" in the top right hand corner
2 - a link to "print this page" towards the bottom
3 - website and date stamp at bottom of page
4 - the logo appears on top and bottom

Maybe I didn't print it correctly, but in any case, my intention is to remove items 1 - 3, and remove one of the logos. I think that will make the letter appear more legitimate.

just my 2 cents
Aniko