30 Days Quick Cash Formula

You know there are lots of things that I didn't check before I offered. I just sent in offers. (Wont do that next time) However all of the contracts I signed when I made offers were exactly alike. I didn't even know that this was an REO until the offer was accepted. I think the paper work that I am sending in now are more specific and I intend to read them all before I sign them. I will put in that I want them to pay agents commision and closing costs.

The name of the bank is Bank of New York, CWalt. Never heard of them, maybe someone else has?

Isn't there a checklist that I should have for the inspection? I saw one here that was downloadable, but it was a renting inspection, which didn't seem appropriate for this. Also is there a place where I can see the format for doing a pro-forma? Are those usually just sent out as a pdf? I'm using an emailing service. Should I only send the pro-forma out to those who express interest. Here it looks like many are using escrow companies to do the double closings, is that okay. Also what about transactional funding? Are all rates for 24 hours, or are some for 48.

Thanks So Much for the help.
Karemah

Karemah, great job making offers and getting one accepted!

Just tell your attorney/title & escrow company, and realtor that you're double closing and let them handle most of the work. What you need to do is get the transactional funding and end-buyer lined up. This is probably the most crucial part of the entire deal.

Of course, you need the repair estimates done, and show the property to your cash buyers (or your realtor could do that). Having said that, I never saw the property during my last deal, because my end-buyer already did that and he wanted to get it without any inspection (he's a contractor).

The number has to make sense to the end-buyer after accounting your fee and repairs. There's really nothing to double closing if the attorney/title company know what they're doing, it's just buying and selling a house within a short period of time (one day, or one hour!). In some states, the attorney can do that. Others, the title and escrow companies do. Here's a link I found that might be useful: http://www.closing.com/community/learning-zone/article/who-handles-closi...

You should have a clause in your purchase contract that says when you need to close by. E.g. 30 days from acceptance. So if your offer was accepted today, you have 30 days to close.

Seriously, if you can bring the cash to the table (or bring someone else who does), you're good to go. Almost all the problems could be solved by having cash.

Bottom line, get advice from the professionals in your area, since we can only give generic advice and encouragement on this forum

Good luck!

I assume you have the RBBP? If you do, the pro forma example is in the Done For You Marketing section. If not, Carol Stinson recommends a free site called Postlets that will help you make one to send out through email. Send the pro forma to all of your buyers, unless they have specific criteria and this property doesn't fit it. Check out her website realwholesaling.com, it has a lot of cool stuff on there.
I believe some escrow companies have someone in house who can do title work and the double closing, so Ken is right.
The inspector you hire should have a checklist. I don't know that there is a checklist on here. Ask someone in your local network for advice on that.
As for transactional funding, I don't know the answer to that question, so someone who has used transactional funding, please give Karemah a hand!
Press on!

RENinja

Well I got my letters on Wednesday and sent out 30 of them on Thursday and another 30 on Friday. So far I've received one call that I've answered as a result and that was on Friday. So we'll see if more calls start coming in this weekend. He wasn't motivate (at this time) but I promised to send him some info in an email that could help his situation. In there I'll mention that if there is a time he would like to sell I'm around and also that I offer $1000 referral bonuses for bringing me someone that will buy from or sell a home to me and my partners.

Hi. Wanted to ask, have anybody have ordered the materials in the internet for making bandit signs!??! I am a bit struggling to finding the proper ones.

If anybody have ordered, then I would appreciate if you could send me specific links...

Take care

P.S. I would love to go to Wallmart, but I am living in United Kingdom

You can find pretty much all the info you need about bandit signs at this thread: BANDITS If you AREN'T using them and aren't moving, that's your problem! By BamaGirl6730 (Use the search box at the upper left if it's not on the recent forums list on the right.)
Read through the posts and you will see where to buy, what to say, and how best to use them.

Hope this helps...

Andy Sager
DG's AndyS

Thanks so much you two. The support here is truly amazing, and I'm grateful for your contributions. I'll be happy when I get through with some deals so that I can give back more from my experiences.

I do have the rock bottom blueprint, so I'll get on doing the pro formas for my buyers.

I'm going to work these numbers out with some folks locally. The way I figure it I should be able to squeeze out at least 8,000 for myself. But I really want to make sure that I'm accurate.

I'll keep you all posted.

As you might tell, Investing is a math game and just like math, check your numbers forward, backward and upside down. If the answers all come out the same, you should have figured it right.

Best of luck

Andy Sager
DG's AndyS

thanks AndyS... Appreciate your help! All the best

Check out the conference call Matt and Dean did awhile back.
Conference Call - Tuesday, March 1st 2011 @ 6PM PST - "Marketing Properties for Quick Cash".
Its in the conference call replays under Monthly Conference Calls on the right of the home page.
It talks about becoming a 'full service investor', the go to person in your real estate market who always performs, does what they say they are going to do, and makes the transaction quick and painless. Matt also talks about using pro formas in there. I really think it would be good for all of us to go back and listen to it.

RENinja

Very useful information on that conference call I got to say.
Karemah, try to do your best with providing a great service for your buyers and Everything is gonna work out. You don't have to know every aspect of the deal, like Ken said, thats why you have teammembers who are professionals in their respected fields. You are gonna acquire all the necessary knowledge as you go.
Just move forward, mistakes are just building blocks to your success.

Good luck

Dennis

Glad I was able to help

Good luck and much success to you.

Andy Sager
DG's AndyS

Hi, I saw on your post that you are thinking about looking into foreclosures, I found a great website that posts foreclosures across the US. It is called watchforeclosure.com. Take a look at and see if it may have something you are interested in.

Right now I am looking for a way to increase my income but it will not include RE. You guys may ask why it's because it is a slow process and I won't make anything fast enough. I have a couple things I am going to be doing but I am still looking into doing transactions.

I came across a guy last week that is willing to work with me and he said he is willing to do 50/50 splits of profits if we find a good buyer, he says he has quite a few. It may be a slow start but its a start.

Everyone keep at it, and hope success comes to everyone.

I think you can make RE investing as fast as you want to go. The initial set-up might take some time but you could quickly accelerate the process once you got the first one nailed.

I'm closing my 2nd deal this Friday (if everything goes well), and planning to buy, fix, and flip/lease option the property within a month (before it gets too cold). A 3rd deal is in the works, so once you break through the psychological barriers, the wind is pushing you forward (to quote Dean). I think it's mainly because everyone on your team now knows that you're a producer, not just someone who talks the talk.

Good luck with whatever you're trying to do, feel free to keep us updated of your life!

Hi I am petrafied.. I read almost everything that is on the forums. I finally got the guts and called a realesate agent. BOY! I meet with him on Wednesday afternoon to look at 5 houses thatneed rehab and 5 houses that have been rehabbed. I think I messed up on the verbage Matt gave us to use.
I need major help I don't want to accedently by anything. What do I do now? The agent is going to e-mail me a list later tonight that I will not see until tomorrow.(i do not have an iphone yet)
That agent even has contractors, plumbers, air conditioning people, I am in AZ by the way. Somone please help.

Mark K. Thank you for taking time to apply links-- the TOC set up in prior months is a great help too!

I love you all so much and I'm sad I'm not spending as much time as I was on this thread-- it seems like weeks go by before I try to catch up and it's getting stronger every day.

As I move along here I might see that we hear from Michelle and AWaterloo. Ken Slew I commend you, you have been diligent in posting and always sharing helpful, useful info.

Thank you all--

Go Team RBBP!

Tina in Las Vegas

Go Go Go! And know you are helping so many others along the way-- you make us proud!

- Tina in Las Vegas

Hi!
I'm happy to hear you're still working hard! I don;t ee where anyone answered you specifically about the signs.

I believe you'll find examples in the Market done fro you part of the RBBP, but they are commonly called Bandit signs here, and they are made of Coroplast (a corrugated plastic material). On SignWarehouse.com you can get them at a good price-- either $1 or $2 ea, BUT then you need to get someone top install them.
I saw others recommend partnering with someone in the town/city you are choosing to work in. I must say that might make things easier for you. However, if you choose to go it alone-- get on the yellow pages in the city of your choice and email Sign Companies until you get them priced well at say $1.50 each then have the sign company install them-- you should expect installation at about $1 each. Don't forget to tell them where you want them installed. Again refer to Matt's lessons in RBBP.

So, I gather you got your Google Voice or Magic Jack phone number we talked about a month or two ago?

Keep it up, and if you choose Las Vegas, please PM me! I've had my head down "working it" very hard for 30 days now-- I've set up my power team and placed nearly 60 offers as of today; I should close any day on one or more!

Talk soon--

Tina in Las Vegas

i have talked to two agents. one said all sales are cash and the second told me there were seventy five cash sales in the last ninety days but she said her agency told her it was realtor info only. what should i do now?

The bottom line will probably be that you will need to change agents but before you do, try once again to ask for all sales from the last 90 days that were paid for with cash. It's not a secret and agent only information. If you wanted to take the time to go to your county records department, you could find this info out yourself. At 70 cash sales, it would probably take you a long time to do that. If the agent doesn't do it, move on.
(FYI: I got this list for my area of interest from 2 different agents and they both wound up not working with me so the "Agent Info Only" line is BS.)

Hope this helps...

Andy Sager
DG's AndyS

Hey Petrified,

Just do it! You will learn a lot along the way. You are going to say something stupid (most likely), we all do, but that's how we learn. And, if you've read the books, or done any of the educational stuff that DG offers, you will know more than most. Even more than your agent. As far as rehab goes, if you lock up a deal and you are scared about the rehab, just know that it will probably cost way less than you think and the only way you are going to get accustomed to knowing the costs of rehab is if you just jump in and get your feet wet and get a contractor (or 2 or 3) to come out and give you some estimates.

If this were easy, more people would do it. Good luck to you, keep us posted!

-Susan

"If this were easy, more people would do it." Well said Susan!

I'm closing on my 2nd deal this Friday, but I need some advice or suggestions about which exit strategy to use. Hope you guys could help!

Here's the story: I got a 3-br/1.5ba half duplex short sale approved for $76k, it needs about $10k of repairs if renting (about $13k for flip), and the rent runs from $1,100 to $1,300 (Section 8 is higher, but I don't know too much about the pros and cons). I'm buying it with cash, so I have 2 options:

1) Resell it in 2 weeks after repairs (with rent-to-own option available). Based on comps it could probably resell at $140k or so.

2) Rent it out after repairs, then do a cash-out refinance afterwards. I found banks who are willing to do it with 90-day seasoning, but I still need to call more banks to find one with no seasoning requirement. I'm estimating the net cash flow per month is about $300-500 depending on how much I manage to rent it for.

My long-term goal is to have my net cash flow cover all my monthly expenses so I'll be financially free (if I manage my properties well). So buy-and-hold might make sense, plus I could probably sell it at a higher price when it peaks out years later.

However, at the same time, I was thinking about reselling it and getting the capital now so I could reinvest the money into a bigger home (possibly apartment houses).

I'm in a dilemma, any thoughts would be greatly appreciated!

Both options sound great. A flip would bring in about 50k for you to reinvest or cover your monthly expenses. If you rent it out, you would have a small monthly cashflow, plus what you can refi to invest. You would also have the expense of a property manger to consider.
Have you considered investing in apartments twenty units or larger with the cash from flips? That might be a better option for you since you want to have monthly cashflow covering your expenses. You WILL need a property manager for a building with that many units, though.
Good luck on whatever you want to do Ken! You are an inspiration! You realize you started two months ago and now your already talking like a pro? lol! "Hmm should I take 50k or rent this property for positive cashflow and refi to buy another building, hmm", LOL!!

RENinja

If you can find a buyer to flip it to, do so; get the money and run.

If you want to hold and build, which might be in these hard times the more 'safe' bet, do so as well. You have two options where you cannot lose(knock on wood)

If you decide to keep, or before you decide you want to keep, you should think about what type of tenant you're going to rent to;

1. Regular working
2. Programs
3. Seniors
4. College students

These are things you should be thinking about now. Either way you'll be fine.

Remember what we talked about.

Here's an interesting thread (http://www.trulia.com/voices/Remodel_and_Renovate/I_am_interested_in_sta...). Check out Don Tepper's comment which compares and contrasts the differences between how investors and Realtors approach deals.

Love your positive feedback! I called probably 30 banks/mortgage companies today to ask about refinancing (some went out of business, some have the wrong phone numbers, etc), and found 3 who could do no-seasoning refinancing if the deal is right. Although it's contingent upon that I could get the loan, and that they actually have a quick turnaround (and not bluffing), it gives me a peace of mind knowing that the option is available.

Just go out there and get in the game!

thank you Susan,
I think I was blown off. I was to receive an e-mail last night from the agent, but, of course I never did. I am not giving up hope yet. That was just the first realestate agency I contacted and the one furthest away from me.
I will keep trucken.

Stef

Great determination and willingness to work hard on your part.
Calling 30 different banks to find one that does not require refy...Awesome!!!

Whatever exit strategy you choose, try to do your homework and see if it's great location for rental and what kind of people would want to live there,
just figure out if that is a good property and location to hold it long-term or you always can flip to other investors or even to a regular buyer who is gonna live there after you rehab it.

Do your due diligence and you gonna be a winner!!!

Take care!

Dennis

Well, you say your long term goal is cash flow. Compare your ROI on this property compared to the larger ones. If the ROI is about the same, and this one gives you the cash flow you want now, you can keep it for now. If you want the money to fund a larger property later, perhaps you can sell it and roll the profit into the next property and avoid taxes right now.

Awesome job getting the deals done!

Aniko

Take a deep breath and just do it. Don't sign any contracts and you won't accidentally buy anything. I think I am dg.coms biggest scaredy cat, but I have found that after you get out there and talk to REA's and look at property, you get a lot more comfortable really quickly. Try to relax and look at it as a learning experience, and if you mess up, oh well... you'll know better next time.

Let us know how things go on Wednesday...

Cheers
Aniko