30 Days Quick Cash Formula

Yeah I've done those as well, and some other techniques too. I got pretty good response from my letters to cash buyers - got several serious cash buyers from there. Sometimes it takes a little bit of creativity and persistence to find these guys, but it's all worth it.

From what I've experienced with the "WE BUY HOUSES" google search so far, most of them are wholesalers rather than real cash buyers. But I ended up working with them anyway, since they seem to be good at locking up deals. And if I ever lock up a deal myself, I'll just show it to them and split the profit when their buyers close.

Haven't had much success with "For Rent Ads" so far since I didn't do it enough. It's always on the back of my mind. Seems like there are a gazillion things going on every minute, gonna spend some time this weekend organizing what I need to focus on.

I have not heard from Waterloo and Michelle for a while hope they are well and busy from making deals out there.
Thank you everyone for sharing very useful info, I just love this thread because whenever I feel down, get sucked back to day-to-day job, I always come back here to get motivated and keep going.
I promise myself never give up.

Hi Reynold,
I am new to the DG family as well, but I do think I can help you with this one. I ordered business cards myself, and here is what I put on them. I did this based on the advice of Dean in one of my late night trips to one of his blog sites. He said the best thing to do is keep it simple to get started.
I chose my business name and put that on there. I did not do an LLC yet. I watched Matt Larson on the EDGE video series I bought and he said do a couple of deals first, then worry about an LLC, so I just did my business name. I went to my state web site and checked if my desired name was in use, and just got the name as it was available.
I went to Google and set up a business specific gmail account, it's free. In the words of Greg Murphy, cheap is good, but free is better! I likee!. So, I have my free gmail account for contact.
I put my phone number. I used my local cell phone, but you can also get a Magic Jack or 1-800 if you prefer. I liked Matt's idea for a Magic Jack... he uses for bandit signs, because it's local but not traceable.. kind of protects you from putting your cell out there if you don't want that to happen. I'm OK either way, just a contact is the main thing.
I did put a "back side" to the card. Dean said it's good to have a portion of your message or "elevator speech" on there. The elevator speech is what you would tell someone about what you do if you were on an elevator with them.. 30 seconds or less or maybe 3 minutes, I don't remember for sure, the idea is keep it brief. Here's what I put, my business name, which is Best Northwest Properties, my message below read "We Buy and Sell Properties. We find the deals no one else can. Call Us!". I think I either saw that on the EDGE or read it in one of Dean's books or Matt's scripts. I really liked it, so I put if on there too. Then I put my local phone number on the back as well. I only ordered 250 to start. The point is, it's a marketing tool, so don't stress about it too much. You can always re-do them. Better to remember Dean's advice: Action + Knowledge = results. It's OK to be tentative, but if you take action IN SPITE of that... you can always re-evaluate and re-focus. Action will ALWAYS get you results, and ways to improve. Great Job Reynold, keep it up.
So short answer: Business Name, e-mail, phone number, your name, I put "real estate investor" for my title per one of Dean's blogs, and an "elevator speech" message if you wish. That's it.
I just went to one of these business card on line places where you can get free cards. I did customize, so it cost me a bit but I'm so happy with how they look and I will get them in 7 days. I would mention the company, but I don't know if the website rules means you can't mention that on here if it's not an approved DG product?, so just google the business card companies and you'll probably find them.

Go for it Reynold! You're on the right track! I so admire you for taking action for you family. Together, we will all succeed!

Northwest Susan
"I can do all things through Christ who strengthens me". Phillipians 4:13

5/65 is nearly an 8% response rate which is excellent for direct mail--especially on the first mailing! "The fortune is in the follow up." I'm not sure who originally coined that phrase, but I heard Than Merril use it first, and I've heard Dean and Jamel Gibbs use it too. Actually, a good and normal response rate is 1% to 2%, so you've received 4 to 8 times the normal response rate only from your first mailing. Again, that's impressive!

I'm putting up some of my own points on the board too. It looks like I'm about to tie up a deal with owner financing, and I might be able to get a second deal with the same owner also with owner financing. I have 4 or 5 other deals in my pipeline, and I'm working on a presentation for a larger deal.

I also found 2 great investor friendly agents in Vegas. Both of them are also investors!! My agent in NoVA just got my cash sales data back to me late last night, and I have a few things cooking in FL and CA.

I almost forgot . . . my accountant brought me a lead awhile ago, but the timing wasn't right for the seller then. I already had lined up another wholesaler (who has a list of buyers) in case the timing became better for that seller. Now, the timing is right, and I actually might get 2 deals out of that one in ATL.

So this week has been pretty good.

Actually, I have to thank all 5 mentors, because each one said at least something this week that inspired me to reach for it.

The problem may be that you are concentrating on bank owned or bank related properties. My understanding of Matt's 25:1 is to look for motivated sellers by using the criteria: Vacant, As-Is and Price Reduction. While you can find deals with 2 of the 3, it's the ones with all three that should give you the highest percentage of winners.
That being said, It sounds like CA doesn't seem to have too many motivated banks looking to dump their inventory. The mentors all have said that CA is a very tough market to wholesale. Doable? yes! Difficult? ABSOLUTELY!! I can see you burning out your agent looking for that smallest needle in the biggest haystack if you continue with the bank props.

Might I suggest you tell your agent to send you lists that have all 3 criteria and are not bank related (meaning private sellers with listed props) only. See if that works out better for you. Tell your agent that you've tweaked your process to lesson his work load. He should appreciate that.

Best of luck and keep us posted,
Andy Sager
DG's AndyS

Thanks for the input.

I'm actually using the letter to satisfy a hinky RE agent. I finally got one to get onboard and work with me but "The Office" needs an exclusivity contract and POF. I printed out the letter and will be negotiating with the contract stuff on Monday. I just think (as Aniko mentioned) that the letter as printed from online looks less than professional. Knowing that Money Talks and BS walks, I wanted to make the BS smell a little better

I'll post again on Monday,

Andy Sager
DG's AndyS

Hi Guys

Maybe my REA isn't doing iy correctly, but she tells me she can't "find" info on cash purchases. PA uses TREND MlS and she said it's not possible. Pretty good agent otherwise. Any suggestions?

Also, I was using Totalview to get my comps for offer purposes but after getting comps from the agent, I find 'view' comes in light which will affect my profit margin. I'm just saying...

Did you ask her to call the MLS help-desk support to have them walk her through the process?

How do you know that your agent didn't cherry-pick her comps skewed a bit high?

Blindly making offers at 65% of ARV won't work in every market. (Andrea and Matt have pointed this out several times.) 65% of ARV is too high in Detroit, and it's too low in Westminster (in OC). Besides using the list of recent cash sales to build your buyers list, you can also analyze that data to determine the prices that the investors are paying for properties there.

You could have your agent check the listing notes for those properties or call the investor buyer to get some clarity on the repairs. I normally assume that the repairs will be a certain amount ($15K to $20K) when running my numbers to make an offer. I know that I could readjust that figure during negotiations later if necessary, or I'd pass on that deal.

Hey Reynold, We did not pay for anything to put that together. We just used all the suggestions in the "done for you" marketing kit with the Rock Bottom Blue Print. The video was shot on a cell phone. Thanks for your comments, I appreciate you taking the time to look at it. -Susan

Andy, what kind of an exclusivity contract do they want you to sign?

Can't wait to hear about Alex(Waterloo) and Michelles adventures.
I'm with you Chanchai... this thread not only keeps me inspired, but the constant activity here keeps REI on the front burners of my mind.

We'll all be waiting to hear of your progress as you go...
Aniko

I found something interesting today. My REA has me set up to automatically receive updates if there are any changes in the properties with my criteria. So today one of the REO's, which had originally been listed at 200K and then dropped to 190K, was pulled off the market... Only to be listed again, under a new MLS number, showing the original price at 190K. Sneaky creatures... trying to cover up their price drops...

Thank you both for your insight.@ just plan-e, I am not only going to continue chipping away but I'm am always looking to other agents to recruit. Someone out there is the right one for me, able to do all I need.

@dp2 You may be right about the cherry picking. I'm just starting to work with her. I have one offer in on a deal listed at 120k; I offered 56k, comps from agent are 110k-150k and she says the owner wants more like 75k which isn't bad. Totalview puts ARV at 107800 which is what I based my offer on with 8k in repairs. Maybe I'm just nervous about moving forward!!

But thanks for listening!

Ogal

Thanks for the info. I am in the Charlotte region and will verify the North Carolina Real Estate law. I will be finding properties and would be more than willing to work with you if you or an investor you know may be looking for properties in my area.

Here you go: http://www.uslegalforms.com/nc/NC-00470A.htm .

Hello Michelle,

Thank you for this thread, and all who have contributed with such valuable information. I am new to DG family, but have joined the Success Academy. It is very valuable information and great basics of real estate which I definitely needed, but I find the Rock Bottom information to be specific and tweaked to a very effective strategy to buy at Rock Bottom prices, just like the title states. I ordered the EDGE 2011 series, and with it came Dean's new book 30 Days to Quick Cash Flow which I understand is kind of the basis of the RBBP. I regret now not having ordered the entire RBBP program, and did not know it came with mentorship specific to the program, which I would really think I could benefit from. My question is, do you know if one could still order the entire program? I would really like to see the videos and do the whole program step by step. Thanks in advance for any input Michelle, or anyone else on the thread who has helpful suggestions to this.

Sincerely,
Northwest Susan

"I can do all things through Christ who strenthens me". Phillipians 4:13

More Government Mortgage Help Around the Corner

The Obama Administration may unveil new changes next week to its existing foreclosure prevention programs. These modifications may help more homeowners refinance into lower rates.

Reports last week speculated on plans for allowing borrowers with guaranteed loans by Fannie Mae and Freddie Mac to refinance into today’s rock-bottom rates.

Glad to know we're missed I've been keeping busy looking for deals and more qualified cash buyers. Bandit signs have yielded at least 25 calls from sellers--a few who are landlords wanting to retire and sell their remaining props.

I did put a prop under contract today for $25K, a 3BDR/1BTH selling for $27K ($25K + $2K assignment fee) and worth $63K after repairs. Has 1-car garage, new Central A/C, fenced-in back yard, and a full unfinished basement. Just called and left messages w/my buyers about the prop as well as sent them an email w/all the details.

Hoping to hear something in the next couple of days. The prop is in a decent neighborhood w/light traffic and only a short 5-minute drive from the University. Prop will need a new roof in 3-5 yrs, but the rest of the house only needs light cosmetic repairs (carpet, paint, etc) to make it rentable. We estimate materials and labor costs to be $10,500 (obviously less if the buyer does repairs themselves), so the property is overall a good investment since the total investment (including repairs and closing costs) will equal appx $39K (38% discount on the prop). Thoughts? Feedback?

The prop that is $1700 is being considered by a developing company right now so I may actually get that sold as well...

*********************************************************

Now I do have a question. In the RBBP 30DQCF on Page 3, Matt deducts 15% right off the top for the following:

6% = the Realtors commission
3% = buyers are asking the seller to pay closing costs. (In a Buyer's Market the buyer's usually get what they want)
3% = discount off asking price that buyer wants (will not usually get full asking price) we want to be conservative by calculating in a 3% discount
3% = our closing costs and some of our own closing costs
Total of 15% (thus we need 15% right off the top of the asking price to cover these costs)

My question is, if the seller is paying closing costs why are we taking it off the top? And don't the sellers also usually pay for realtor commissions? I also don't get the 3% discount when we're factoring in a "desired profit" that usually equals 30-40% off ARV. The reason I'm asking is because my REA wants me to explain how I've reached my maximum amt offered (so he knows where I'm coming from he says).

Hey Aniko:
In reading the contract the agent wants me to sign, it could be construed that ANY property the agent deals with will entitle him to a minimum commission of 2%. If I understand it correctly, if I ask him to do a Comp or CMA report on a property that I find (or someone calls me on), I would have to pay the agent 2%. I do realize that I have to and fully expected to give him a token for the help but 2% is too much of a token if you ask me.
Also, The contract stipulates that in the event the seller is only paying less than 2%, I am guaranteeing the difference up to 2%.

There is also a 90 day stipulation that I have to pay the agent a commission for any property he makes me aware of. I want to try to lower that to 30 or 60 days.

After all this time trying to find an agent, I feel like I am between a rock and a hard place. I spoke with my coach at the success academy and she agreed that I am in a tough position. Her thoughts were that if I have not gotten any responses from all of my requests (and there were a lot of them)and I am over 45 days in (I'm actually over 2 years in my investing career), I might need to sign the thing after reading it carefully. (In doing that, I found these objections.)

I want to try to get these things fixed or I may just walk away and deal with FSBO's only for the time being. It's frustrating because I really would like an agent to work with because the buyers I currently have on my list want houses in areas I know nothing about. I want to work with this agent because he is a former Keller-Williams agent. I figure that since I couldn't get the local Keller-Williams agent to work with me, this is the next best thing.

So that's my story...

Andy Sager
DG's AndyS

I run my numbers a little differently, but I get similar results: .65 * ARV - repairs - assignment fee - holding costs.

Our compound transaction has 2 parts: the A-B (or buy-side) leg, and the B-C (or sale-side) leg (where A=the original seller, B=us, and C=our buyer).

The 35% margin comes from the B-C proceeds when we sell the property to C (for the amount of the ARV).

margin = profit + (disposition costs)

We're locking in a minimum profit of 20% for C. We're estimating the disposition costs to be around 15%. (20% + 15% = 35%)

We use the other numbers to back into our offer price. We do this, because a property under the current market conditions won't sell for cash (to a retail buyer) for more than its ARV. So we discount our offer by 35% initially to lock in our margin. Afterward, we deduct the other costs (from the perspective of our buyer [hence our assignment fee is a cost for our buyer]) to get the max purchase price that we can afford to pay.

Let's use some real numbers: ARV=$100K, repairs=$20K, assignment fee=$2K, and holding costs=$4K. So the max purchase price that we could afford to offer is:
.65 * $100K - $20K - $2K - $4K = $39K. Now, let's say that we offer $39K, and the seller accepts our offer. The seller will pay a commission based on that $39K; whereas, we'd pay a commission based on the $100K when we sell it.

Hey everyone Ive been puting 25 bandit signs out every fri and take them down monday morning for the last 3 weeks. Ive been getting about 4 calls a day. I had 2 contractors call me and told me they do good work for cheap and I even added 2 cash buyers to my list. About every weekend I put my signs out 3-4 are missing. So you would learn where not to put them in your town or city.

Hey everyone I figuered I share with you guys on how I got an Intern to do all the foot work for me. Well as Ali said from the 2011 Edge Event DVD. I took into to thought on what he said, on having anIntern do all the work you dont like to do. So I posted a ad on Craigslist in the jobs section under real estate, (Real Estate investor looking for Intern). I posted this Friday night and sunday morning I received a call. This guy that called me was a realtor's assistant before. So he's unemployed right now and looking to learn how to become an investor. I stated in the ad what were the resposibilties and requirements needed for the position and he said he's in when do I start? I even told him, if he sticks by my side, when I close on a deal I will compensate him $200-$500 for helping me. He was excited. I'm meeting with him on tuesday morning so I can get to know him better. This stuff really works, whatever dean or his successful students say do it!!! Infact everyone should get an Intern, so that everything you dont like doing, they can pick up the slack for you.

This is the ad I posted

Real Estate Investor looking for Intern!!!

Real Estate Investor is looking for a qualified intern to join my real state power team.This intern should be prepared to work in a fast-paced team environment, and will finish the internship having gained broad experience in various aspects of real estate investing.

Responsibilities
■Assist in the distribution or delivery of marketing materials
■Assist with fulfillment of marketing offers
■Perform analysis of marketing and sales data
■Provide support to social media efforts
■Run ads on classified ads on the internet
■Answer and return phone calls from sellers

Requirements
■ Must have Car,Cell phone,GPS or familiar with the city of Waterbury.
■Must have access to a computer and know how to e-mail.
■This person should have excellent verbal and written communication skills, with extensive knowledge of Web and social media
■Would need to be available 5 hours out the week.

Call This number for more infomation XXX-XXX-XXXX

First, commissions are negotiable. You could try to negotiate the terms that you'd like with that agent.

Second, you don't want to be "penny wise and pound foolish". Remember, your agent would earn 2% when you'd earn at least that amount--often more--based on the grunt work that he did. Jack Welch, when asked about how he was able to keep getting excellent performance out of his workers, he said that he "hits them in the pocket" (meaning he shared the wealth). Similarly, I like to make a portion of my agents' income based on performance; they earn more when they do more. Who's deal do you think they'd be more motivated to push the one with the bonus (mine) or the one with the reduced commission (someone else's)?

Third, those bonuses sometimes will also get me a first look at certain deals--especially pocket listings.

Hey Everyone Im putting this house under contract tomorrow, that I got thru my bandit signs. I couldnt get the actual comps in the area, because the houses in the area that recently sold, were houses that needed work too or 3 family homes. Since I figured you need comps from properties that sold at ARV.
Well I went with what totalviewrealestate.com said it was estimate at $95,000. Zillow had it for $101,000 and this other site had it for $98,000. Well Im putting the house under contract for $37,000 the seller originally wanted $50,000. But using deans strategies I got him down to $37,000 well the house needs about $12,000 in repairs and I'm going to assign it for $10,000.

4brs
1bath
1310sqft

Purchase price 37k
12k in repairs
10k assignment fee
wholesale price 47k
ARV 95k
Buyers profit 41k

let me know what you guys think? And I also wanted to know, do you have to have an attorney there or notarize the contract between me and the FSBO seller?

I think it sounds good... If your estimate is accurate.

However the total profit to your buyers is 5k too low.

Buyers purchase price is 47k
Add 12k for rehab

47+12 = 59k invested

ARV 95k - 59 = 36k

or did I miss something? lol

Hello Jay,
Yes, I think I can help you here. If you have bought the Rock Bottom Blueprint, on pages 37 - 41 of the book "30 Days to Real Estate Cash" which I think was included in your purchase, Matt Larson states what to say to them. Here it is in a nutshell: "I want to buy, fix, and sell the property. I want to turn a $20,000 to $25,000 profit. This is not a long term strategy. I'm looking to be in and out of the deal quick". This is where you are looking for the agent's mind set.
Read the next few pages to find the exact follow up after that. If they press you and want more detail, I would recommend saying: "this is really the basis of what I'm doing. we can discuss more details as we locate viable deals that I will give you the criteria for". If they still push you, and you don't feel comfortable with that, move on and find another agent. The more you practice this, YOU will get more comfortable and begin to feel like you can ask the questions and not be put on the spot. Don't worry about losing out on a "great agent". There are plenty of them out there. If one doesn't make you feel comfortable, that's not a good fit, and it probably isn't a great agent for YOU. The conference call I am referring to below, Dean said this "You want to find the agent that makes you feel good and believes in what you are doing. You want the agent who puts the wind at your sails, not the anchor that drags you down". I LOVE that!!

Another great resource: Listen to the Conference Call of 9-14-2011. It is OUTSTANDING. The home page of DG. com has a place where you can click on "listen to pre-recorded conference calls at any time". It's free, and on this one with Matt, Dean and Matt go through step by step the first 4 absolutely needed pieces of the Rock Bottom Blue Print. They include:

*Finding an Agent
*Finding Buyers
*What to Say (via letter) to buyers once you found them. - (This is GREAT!!!! I needed this one right now, it was EXACTLY what I was looking for... in LESS THAN 1 paragraph).
* How to get leads for great deals.

It's less than 1 hour long, and it has great information for each one of these things. If you still have questions, I believe the Rock Bottom blue print has mentors that come with the program. I am certain if you have more questions about the material, just call them up and ask your question... "what do I do about this agent who wants more detail"? I am sure they will be able to help you. You can do this Ray. Just keep on keeping on with your questions, you are totally on the right track. You can't go wrong asking questions, those mentors and all your DG family want to help you get 'er done! Hang in there, best to you. (PS - I really like Romans 8:28 too ).

Sincerely,
Northwest Susan

"I can do all things through Christ who strengthens me". Phillipians 4:13.

Hi guys,
Just wanted to tell everybody that you all are doing a great job and really pushing forward.
I'm going to look at a house Tuesday for a possible Lease Option or Subject-to deal. The seller said she wants to sell for what she owes (around $142k) and said the house appraised for $192k. I doubt I can get financed myself, so I'm going to talk to her about seller financing or selling it to me subject-to the existing mortgage.
I'm going to call one of the academy coaches to help me through this and hopefully I'll be reporting my first deal on here soon. (Finally)
Wish me luck and best wishes to everybody on here!

Rick

Hey Londell:
Thanks for the post. I understand what you are saying as my Mother was a RE agent.
What I was trying to get at was this: The agent has a contract he wants me to sign that says that I am guaranteeing them at least a 2% commission under any circumstance. Also, whether I bring the property or the MLS brings the property, I'm paying at least 2%. Say the MLS brings me a listing, I am paying the agent to have put me on his MLS list, run my comps and CMAs, show me the house, negotiate whatever they do, etc. I don't have a problem with that at all. Say I get a house from my bandit sign, I do all the work except I have the agent run a comps and CMA report. Should I be paying him the same commission as the first scenario? According to what I have been reading here, the answer is " No". The contract he wants me to sign says "Yes". I plan on compensating the agent to make him happy but I don't think I should be forced into guaranteeing the amount. In my eyes, it's all situational. My other "twist" is that this agent is a fisherman and I own a Lure manufactering business. I could sweeten any deal with products instead of cash. (At least that was my thinking.)
I'm not trying to be cheap, I'm trying to be free to choose.

Andy Sager
DG's AndyS

Hey all, just wanted to share some obstacles I've faced thus far when marketing a deal to a cash buyer. I've got 2-3 deals going on with several other wholesalers, with most of them asking only 50-55% off the ARV. The repairs cost between 25-35k. So we're looking at over 20-30% ROI here.

To my surprise, for the cash buyers who are not afraid of total rehab, they think the financials look good, but the location seems to be a deal breaker even though the houses are in good neighborhoods.

Going forward, I'll pay more attention to locating deals that are close the areas the cash buyers are interested in (especially if they've bought properties in the same area before). Just wanna throw it out there as a quick tip