30 Days Quick Cash Formula

I do something similar--but not exactly the same: 20-10-5-1. My agents and/or I will have briefly pre-screened 50-200 properties before filtering out the 20 that I'll examine more closely. I'll weed out the 10 most marginal deals from that batch, and I'll analyze the remainder. Next, I'll write offers on why I deem to be the 5 best deals, and maybe 1 of them will get accepted. Stated another way, I do 20:1, but it's close enough to 25:1.

I'm starting them off slowly with 5 offers. I told each agent that we could use these offers get more acquainted. Some agents insist on writing everything out before lifting a finger. Others are comfortable leading with a verbal offer, and following up that verbal offer with one in writing. I prefer the latter.

After we're comfortable with each other's style, and after we've worked out any kinks, then I'll take some steps to help automate the process. For example, I'll work with the agent to develop 2 template offers: 1 for cash deals, and the other for offers on deals with creative financing.

Afterward, I'll retest with 5-10 more offers (per agent). Assuming everything goes fairly smoothly, then I'll start ramping up the pace. I'm also prospecting on my own for FSBO leads, and I'm submitting offers on them too.

Hello Mark K,

Thanks for this information.... I will use it.

Ty

Wow! You're doin big things. I wanna be like you when I grow up!

Okay that sounds easier. I think that sounds good. Also how are you gadging

what you're going to offer on those properties? I did about 30% discount on

the ones that were above FMV and 25% discount on those that were below FMV.

Did you go with Coastal for FMV..

I think my agent is a bit nervous about expressing to the listing agent that

we will be doing a 30 assignment contract with the intent to reassign.

Is there a tactful way to either do this or get around this?

Thanks,
Karemah

I don't think your agent needs to tell any listing agents that you guys are making offers on 30 properties or whatever that number is. The listing agent on each property might be different anyway. And if you're really closing 30 deals, I'm pretty sure they'll run to you to be your agent!

I guess you meant Coastal Funding for transactional funding? Not sure what you meant.

I'm sure dp2 has his way of making offers, but I just follow what Matt/Dean teaches in the 30 Days to Quick Cash. It's on Page 3 I believe...usually investors are looking for at least 30% off after your fee and rehab. E.g. for a prop with ARV 100k, with 10k rehab, 5k assignment fee, they might pay about 70k for it. But of course the % varies depending on the deals and the type of investors -- landlords that buy and hold will take less discounts than the flippers.

The most important thing is to follow Nike: just do it!

we posted bandit signs 24 hours ago. So far, not one call. Also posted bandits with ghost ads for buyers. I did better when I posted a ghost ad on craigslist and just soliciting for cash buyer. Also got a few buyers from letters from cash solds list. All together, I think we have 4 or 5 buyers, 2 or of which can close in 7-14 days and do more than one deal at a time. So, It certainly doessn't happen overnight.

I agree, We are moving at a turtle pace too. We do something everyday as well and each thing gets us closer to the goal. As long as you reach the goal does it have to be at lightening speed?

Other than the fact that Matt's and my ratios are slightly different, we're essentially doing the same thing. I just packaged it a little differently.

Please keep in mind that Dean, Matt, and the others have stated multiple times that one shouldn't apply that 30% discount across the board. That discount won't be enough in some areas (like in Detroit), and it might be too much in other areas (like in certain parts of DC, NYC, or OC CA).

I study the sales data--just like Dean does--to see what the other investors are paying. After I figure out what the other investors are willing to pay, then I'll offer slightly less. (Please revisit Dean's 'buying below the bottom discussion' for more info.)

Yeah I agree with you, you just gotta get a feel of the market and listen to what your investors are telling you -- although they tend to say they want a bigger discount than they actually do. Just check out their last deal and you'll figure out what their true numbers were.

Thanks for the suggestions as usual!

If it wasn't for Alaskaren the table of contents wouldn't exist.
Thanks Karen!

-Wow! Just realized I posted the 1500th comment in this thread. I remember back in the day when it was just a little 'un. My how they grow so fast.

Thanks for the info. I'm believing that My market here in San Diego requires less than 50% off. Probably more like 30% or less, but time will tell as I intend to put in offers soon.

Thanks,
Karemah

Hey, Ken, keep at it and you gonna close that your first deal.
You'll have it pretty soon!

Thanks dp2 for your input on this thread, it helps a lot to make my strategy work!

Thanks to all of you, guys. Well, now I'm going to network with investors to the meeting!

Dennis

Hey there! Yes, I am in the Oklahoma City area and murdocksusan has also posted on this thread.

Like a lot of others on this thread, I have encountered some challenges, but have picked myself up and am charging full-speed ahead again. In fact, I feel more confident than ever charging ahead since I am much more knowledgeable about the process now. Basically, I got excited when I saw a "textbook" distressed property with a motivated seller but I forgot to double check the LOCATION! My realtor had already drawn up the contract and then it dawned on me that my buyers would probably not be interested (high crime area). I shot out a quick email to my list, but just as I thought, nobody was interested. So I had not actually made the offer, but I felt really silly to miss such an obvious piece of the puzzle. Anyway, I will never do that again!

Now I need to get the assignment contract plus contingency clauses all worked out. I remember reading a post that dg.com had some examples, does anybody know where they are located?

Thanks in advance,
Gardner

I though that I understood this basic thing, but I was talking to a fellow student this morning and now I'm not so sure. I am working with an agent and going only for traditional sales at this time to keep things simple. So I have my agent and I've given her 25 offers. Now from here she makes the offers, I send her the pof letters etc. Then we hope an offer goes through.

When it does, I give the earnest money etc. Now how are we exiting, I thought with an assignment contract in my name and look for an end buyer to transfer it to and then close with the transfer of the contract. I know there are a few other contracts, but mainly the assignment right?

Okay my friend says no, we need to do a double close. I thought we only needed to do these for reo's and shortsales. I guess the problem with assignment how do you explain to the other agent that we are locking the property up for 30 days and may need to exit out/may not find a buyer. What agent is going to go for that?

I'm a little confused and need to send some reassurance in the direction of my agent.

Thanks,
Karemah

Thanks man -- the lender is requiring some more paperwork from the seller (it's a short sale), and pending approval from Fannie Mae, so it's taking up more time although I kinda expected it based on my research. Not letting this deal stops me, got another short sale approved so I'm gonna get a repair estimate for that and see if it's a great deal. Meanwhile I called over 20-30 banks in the area to get a list of foreclosures -- boy that took hours with all the call forwarding and talking. But definitely got a whole lot of useful info Guess I'll have to do the same to find out if they do no-seasoning refinance, keep going!

You don't tell the agent anything.
You get an assignable contract first.
You have a 10 day inspection period.
If you can't find a buyer in 10 days you give the deal back and get your earnest money refunded.

Don't even waste the sellers, their agent or your agents time if you have no buyer.

You said you are doing traditional deals. What does that mean? You are going to assign OR double close to an owner/occupant is a 30 day time frame?
Remember most retail home buyers must be financed. That means the lender must approve inspection, appraisal and financing. That usually takes at least 30 days. Also. most lenders won't finance assignment fees.

Why would anyone but the most distressed, motivated seller ever sign a contract with some one that clearly states they have no money and can only close if they find a buyer?? Present yourself as an investor with the capability to close.

Finally, it is way easier to do contract assignments working directly with a motivated seller, NO AGENTS involved. You must have real cash buyers for this to work. Rehabbers and landlord type investors.

Michael Mangham
MD Home Acquisitions LLC

Okay, I am really frustrated! I hear that we must look for houses in hot areas where investors are buying. I get that. I was told to get a realtor to give me a list of cash buyers in the last 90 days. That would help me know where to drive for dollars. Sounds good, except I've gone to 5 realtors who tell me there is no way to get such a list.

So my question is "Does anyone know of an online resource that I can use myself that will alert me to the areas in Philadelphia, PA that I should spend my marketing dollars?" If you do please inbox me. I love that everyone on here is working to make life better for themselves and I want to be a part of that and take it to the next level. So help me get off the launchng pad!

Ogal Gaines
LAGO Acquisition, LLC

Hey Ogal,
I feel your pain in this. I took a chance on an aggresive realtor who is new but a "listing machine." After a couple of weeks it fizzled. I'm a realtor myself so I spent a boatload of time finding the cash buyers myself but at the same time kept looking for the right realtor. I won't stop until I find them so don't give up on that. Every MLS help desk can tell the realtor how to do it and every MLS that I'm aware of has a support staff.
Back to the Buyers issue: Jeff Jensen has a post "80 ways to find buyers." Here's the link:
http://www.deangraziosi.com/real-estate-forums/marketing-buyers-and-sell...
I hope it helps.
Bob Woloss

Man,
I don't know how many folks reading this great thread are from Maine but I have to tell you, jury duty in this state is for two months and boy can it burn days.
I just got caught up reading this thread again and it is pretty darn good.
Kudos to Michael Mangham for a lot of recent gems.
By the way, if you don't make it in 30 days, don't sweat it.
Just keep moving and remember "Accomplishment Creates Energy!"
Did anything come of the suggestion to hold some conference calls together going forward? Small accountability group. Sounded like a great idea.
Let me know and regards to all.
Bob Woloss

Hi Ogal:
I actually found it easier to get the cash list from an agent than get the agent to follow through with the 25:1 system.
What might be your problem is that you are asking the agent for the cash buyers list. What you need to ask the agent for is for the cash SALES list(ings). If they don't know how to do that, tell them to call the MLS helpline to get this info. You then can go through the listings and see which sales were REOs, Short sales, etc. Then you also can research the new owners with the appraiser's office to see which owners have different mailing addresses than the property. These are most likely to be investors.
(Hint: Use Google Earth and place a pin at each cash sale address. I use different colors to separate the REOs from the Short Sales from the Home owners from the Investors. It paints a VERY clear picture!)

If you can do a name search on your appraiser's site, look up by name and you'll see how many other properties that person/company owns. The more they own, the better the investor they are and should be in your marketing sites.

I hope this helps you better target your market.

Best of luck, ( It's not really luck, it's SKILL!! )

Andy Sager
DG's AndyS

5 Realtors is a good start. I literally went through hundreds--albeit not in the same market--before finding the right ones; meanwhile, I focused on various unlisted deals. A couple of other sources for that list of cash sales are an escrow/title company, and a list source (ie listsource.com).

DG Family, I found my first investor yesterday and I got a rush.
Got to do it again, and again, and again, and again and....................
IT WAS AWSOME!!!

Thanks for your reply, when I say traditional sale, I mean it not a short sale or a reo. The seller is the original owner. I have a little less than 20 cash buyers on my list and connections to others who have cash buyers so if I come up with a good price, I'm pretty sure that I can come up with a buyer, but I was not certain that I needed to do a double close. Since it wasn't a bank I thought that I could do an assignment. They are so much easier.

So now from this point on, if we get an offer accepted, I need to do a double close? No way we can assign the property?

This thread is starting to look like those Santa Fe trains out west, It just keeps going on forever! It's like a never ending book PACKED full of all kinds of awsome information. Thanx to everyone contributing here

Well I realized I should've renamed my username from cmpolanski to SoccerGuyInLA awhile back and I finally did. I'm glad I could change it. It is much more memorable.

Plus to Update everyone:
1a) Got calls from my Bandit Sign where I personally wasn't really able to be the problem solver but I still wanted to help them out. One person had a property in Charlotte, NC he needed to sell before foreclosure so I posted in these forums on a NC thread and hope to connect with someone that does business out there. But if you also can handle deals in that area, PM me and I can send you details. He also has an empty lot he needs to get rid of...
1b) Another caller wanted to know how to get a loan since the banks wouldn't loan to him since his LLC already has 11 mortgages. I put him in contact with a company recommended by my local REI club that does hard and private loans.

It feels great helping people!

I've begun prepping offers finally as well! I'm trying to save time by making an offer based on the info provided by the MLS and then making my REA and the seller's REA aware that if upon inspection, other repairs are needed I'll total them and put them as an exception on my offer and lower my offer accordingly. I need to look at forums to see how others are doing offers.

My direct mail campaign should start early next week, I'm getting my 1,000 fully prepped letters any day now and I'll start sending 20-30 out a day. So I'm real excited about that!

Keep chugging everyone, keep making some type of progress each day.

Well, no wonder we didn't get any calls. We went to take our bandits down today and half of them were gone. I'm thinkin' either the city or the Twp. took them. We figured someone would call us if the signs we not allowed but, no call for that either. I doubt another investor took them down. So, needless to say, that campaign yielded nothing!

Hi
I'm having the same problem. I put up at least 15-18 signs and most of them with the exception of about 3 or so are gone. I've been thinking that it is another investor. Since I have alot left, I intend to regroup and put them up on telephone poles. Yes I'm taking a risk, but at least folks will be able to see them better.
It will also be difficult to get them off.
I'll keep you posted on how that goes.

Put out some more in different locations! A bandit sign campaign never ends. We do it once a week in an organized manner. We have signs in the truck at all times and sometimes when we are out and about we will put one up in the area we are in. Get used to the signs being taken down. That is part of the game. If they stay up over the weekend think how many people see that sign for $2.00!! Like any form of advertising, repetition, keeping it in front of peoples faces is critical. Day in and day out.

Keep up the good work and don't get discouraged! Bandit signs work.

Michael Mangham
MD Home Acquisitions LLC

You can assign any property if you have an assignable contract. I only double close REOs or short sales. I don't offer on owner occupied properties listed on the MLS by the owner through a realtor. It is usually a waste of time, they want to much money for it to be a wholesale deal. Most need to cash out so trying to do a L/O through a realtor listed property is usually a waste of time.

Michael Mangham
MD Home Acquisitions LLC

They're posted and I am jazzed. Only 25 more days of Jury duty. I feel like I'm working nights but can't wait to see if I have any hits tomorrow.
Tomorrow the bandit signs go out for the weekend. Based on the last couple of posts I've read I think I better get twice as many as I originally thought.
I haven't even thought about a website.
Here's a question, how important is a website at this early stage?
Thanks everyone.
Bob Woloss
"Accomplishment Creates Energy!"

Hey guys, got a quick question related to double closing commission. My agent is the listing agent and buyer's agent for the first sale, and she's helping me with the 2nd sale as well. The end-buyer has a buyer's agent so I'm paying him the commission (it was a mistake in the negotiation).

My question is, is it standard in double closing situation NOT to pay my agent any commission on the 2nd sale? She's getting the 6% from the short sale in the first sale. And she hasn't really done a lot for the 2nd sale other than sending me the contract from the end-buyer's agent.

If you would pay her, how much would make sense? $250? $500? All the closing costs, money costs, and commissions are eating into my profits!