Dean's Private Money Program

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Insiderscash.com

Thanks this will help me too!

I'm so glad to finally have an answer to my question. Dean's folks were supposed to let me know when his funding program was up and going, but I never heard anything, so I kept on asking over and over again.

Now, I've got to try putting together a marketing plan for 2012 that will include that financing, finding motivated sellers and then finding motivated buyers (24 hour flips). I think I have 2 of the three elements worked out, already.

BuyAmarilloHouse.com
SellAmarilloHouse.com (coming soon!)

I guess the 24 hour funding is just provided long enough for a contract to be assigned, not for a deal to be closed. No closing takes place in just 24 hours to my knowledge.

For those of you using Insider Cash, what happens if you don't get the contract assigned within 24 hours? What does Insider Cash do to you?

I have not used Insider Cash but it sounds like traditional Transactional funding. This is used for double closing. You do not need any funding when you do a contract assignment.
The fund covers the a to b of a double closing. What they are saying is your buyer (the b to c) must have their funds in escrow 24 hours before the a to b closing or they will not fund the deal.
So you must have a real buyer in advance with money in escrow before they will fund the deal. This funding is for a double closing on a deal such as a REO wholesale flip where the lender will not allow an assignable contract.

Inside Cash has no skin in the game. they don't do anything to you. You just don't get their funds. You get the property under contract like any deal. You have your escape contingency and if you can't find a buyer before you lose your earnest money you back out.

Hope this helps,

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

The problem for me as a realtor with double closings is everyone having a clear understanding of who I'm representing, as I cannot represent both the buyer and the seller. For legal reasons, as a realtor, I would like to avoid double closings.

That is not to say I can't represent the seller one day, close a deal, and then represent the buyer another day. But, for me, the best thing is to just represent the buyer/investor all along in such transactions.

I understand what you mean about having to have a buyer, and therein lies the problem. If I have a motivated, distressed seller and a contract in hand, I have to be careful to only represent them and present their contract/offer to the seller or a group of sellers. I cannot do double closings in my state as a licensed real estate agent. I really don't know what I would need Insider Cash for, if I am not going to do double closings. I just need an active list of cash buyers - preferably hundreds of them - perhaps with yourself included.

But, see the thing is, if I have a contract that I've drawn up, and I'm going to assign that to the buyer/investor, I'm really representing the buyer/investor, and the distressed seller has to understand that. I want to be in the position where there really is no assignment, either, and I think I can, but that is another post.

Can't you disclose that you are a licensed agent but you are not acting as one on this particular deal? That in this deal you are representing yourself as an investor and representing no one? Agent/investors do that here all the time.

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

Yes, I could disclose that and act as a principal in the transaction. In other words, I would actually be the buyer, seller and assignor. I could not do this with HUD foreclosures, though. One of the reasons is because it's almost impossible to get them to the 30% below market value point that most investors look for although 30% below tax appraisal value may be doable, if the investor considers it, if the property stays on the market long enough. That doesn't happen most of the time, though as the properties move swiftly.

My business partner (sorta) flips houses, but one of the things about doing that here at the top of Texas is there are so few distressed sellers and properties out there, and there are already so many people flipping the ones that do come up. We have a very good, stable real estate market that has been relatively unscathed by the national real estate crisis. I suppose most of Texas is that way, actually.

The agency I'm going to work for in the next ten days handles HUDs statewide, as we are a statewide brokerage. They're bringing me on to help expand the business into representing other buyers and sellers, but HUDs are our bread and butter.

I understand, and after reviewing what Insider Cash had to offer, I didn't see where they were of much value to me. The main reason why I say that is there are plenty of people out there with money ready to invest and to partner with in each of communities.

I'll give an example. Sometimes I go to a laundromat when I have to dry big things like the quilts and comforters from our family's beds. You know, they have those gigantic, industrial type dryers that do a great job. The owner of the laundromat also owns a convenience store and a few rental properties, and he has plenty of cash and credit. I'd like to partner with him in a joint venture, but I can't do that right now, so he's a buyer/client.

Other investor clients are my doctors (I'm totally messed up health wise), other business owners and church friends who are attorneys, etc. These people have been hoarding money for the last few years (recession fear/lack of consumer confidence), and now they're coming out of the wood work to invest in something more tangible - real estate. They have friends and family around the country who lost their shirts in other investments, but here they sit in one of the best real estate markets in America much less Texas, they see rental incomes going up, and they are eager to buy.

My agency is having to open a call center to handle the inbound phone calls from across the state of people wanting to invest in Texas, where in other parts of the country 1-2 houses out of 5 is in foreclosure. Business is booming expect for agriculture (damn drought).

I understand this whole process pretty good, but i have a few questions though.
How do u make this a 100% No Money Down Deal if u put you own earnest money into it. (U KNOW) Im sure once i find a great deal. Buyers Will buy. But i dont have a check to write, or cash that shows im really serious...

1.Wat if you have no earnest money to put up of your own?

2.Wats the minimum limit u think that will work?

3. Is there a way to have your cash buyer/buyer put it up into to escrow.

Great website out there for getting access to Dean's Private Money.
www.insiderscash.com The main purpose of this website was to provide people with unlimited access to cash to purchase properties as a "CASH BUYER" through double closing. The most important factor to working with any transactional lender is to make sure that your buyer actually has cash. The number one thing that causes a double closing to fall through or not close is that the final buyer out there doesn't actually have access to cash to close in one day. So as you are building your buyers list, make sure that your buyers actually have access to liquid cash that they can access within a 24 to 48 hour window. You find buyers like this,,,,,,, you are good to go to use as much of Dean's money through this website. This is the first type of program the website has.
The second one is a 90 day "rehabber" loan that they have.
The third one is a 2 year "buy and hold" loan that they have.
These 3 options are all outlined on the website www.insiderscash.com and click on the top of the page where it says "funding options"
There are even very helpful videos that you can watch to see a more detailed description of these 3 different funding options.
Hope this helps.

Happy Investing!

Matt W.

The number one reason why any deal falls through is because of the lack of financing, of course.

The 90 day, "Rehabber," idea is a good one, if someone has cash buyers lined up, and most of the time that is not the case. The key is to get an active buyers list in place. In a lot of markets, even with soft pricing, one cannot flip a house in 90 days now days without an active buyers/investors list.

The other financing options that Matt mentions also involve some cash on the part of the wholesaler, I believe.

Yet, Dean continues to teach that there lots of no money down deals to be had out there. If this were completely true in all markets, then there would be no need for private money lending programs, and private money lending programs are promoted here at this website all of the time, and some in the classifieds section are probably fraudulent, and that portion of the website should be policed better.

Now, I don't want to sound like a complete naysayer here, so let me add that there are some exceptional opportunities in almost any urban market, but they are the exception not the rule.

I'm not sure if I was clear. To clarify, a HUD broker and their agent (me) cannot have any ownership interest in a HUD foreclosure, so they can't act as a principal whether they are buying to resell or to live in a property themselves.

But, HUD properties aren't that great for flipping, anyway, because there's not a large enough, short term profit margin. If an investor has a different investment strategy, namely buying and holding, then HUDs do work for them. They buy at a discount, rehab some (not much), and then they rent the property out at at about 20% above what their payment is (if they have one), and then they profit on the back in if they resell when the market goes up.

In my market, that strategy varies just a little, because the market never went down hardly at all. My city was relatively unaffected by the "real estate crisis." House values dropped just a little bit, but they rebounded quickly.

I wanted to revisit this thread for a moment.

I had mentioned that one should have cash buyers lined up, but if one was taking a whole year to rehab and flip a property in my market, that would be plenty of time to resell it to the general public as the average time a house is on the market here is only 4 months.

The Insider's Cash program also requires a participation fee, but it's only $750.00. I've seen some companies that charge $6000 which is of course ludicrous. So, when real estate gurus tell you that you can buy real estate with no money, most of the time it is not true. You have costs like that and there also may be escrow and closing costs involved.

There are a few exceptions where one can get a house with absolutely no money, but I think those are indeed exceptions, and one has to be able to find a truly desperate seller/owner.

no offense intended, but sounds like you've found ALL the ways Deans strategies won't work instead of looking for a strategy that will work. Nothings perfect. Sometimes you have to tweek something a little. Give it a little spin. Make it work for your given situation. No 'no-money-down' deals in Amarillo? Look elsewhere. Thanks to the internet you're not stuck investing in your back yard.

Deans strategies do work - too many people on this site are proof of that. Don't let your REAgent mindset blind you to opportunities around you. HUD and bank REOs aren't the only investment opportunities out there. Broaden your horizons.

Thanks for bumping this up. I totally forgot about this subject and I think I will be able to use this in the future.

Of course HUD and REO deals aren't, "The only investment opportunities out there," and I am trying to expand my horizons and find something that is useful to me. That's why I post things that aren't useful in order to try to illicit a response from people who have found something that is working. Like reverse psychology. It works, too. I've gotten lots of help here and learned a lot, like recently sorting out who I represent in an assignment deal.

However, I do think it is very likely that Dean's strategies do not work for most of his students most of the time for whatever reason, and they're probably not working for most of this site's users. THEY ARE working for some though it's probably a small percentage. That's probably just a statistical fact.

Of course none of us stuck with investing merely in our, "Own back yard."

I disagree, I think this can work in any market. Yes, with HUD and REO properties, you may have to put down an earnest money deposit of 500 dollars or so, but you could even borrow that from someone if you don't have the means to do it yourself. But, working with just a motivated seller FSBO, then sometimes the most you have to put down is 10 dollars.

I am a Realtor as well, and as long as everything is disclosed about you acting in the sole interest of yourself as an investor, not as a fiduciary duty to a seller or buyer, then in most if not every state, you should be fine.

As far as the transactional funding goes, you just have to work in those lending prices into your deal, that way you come away without using your own money.

When Dean and the other experts preach about "no money down deals" they don't necessarily mean "no money down", they mean "none of your own money." All of these strategies can work, and like they said above, it just may need to be tweaked a tiny bit to fit your personal investment experience.

Luke you said it well.
I too can't even afford the $500 earnest money. But when I needed it last year, a friend borrowed it to me. What I don't like is that one agent that I love working with always demands $1000 which I walk away from deals then because I can't do that.
However....no money down does work. FSBO is what will give you that kind of deal. And if you find something even through an agent with excellent numbers, just put it out for the other investors. You may not have an end buyer, but you can get a finders fee, which will help get you started.
I looked at 4 properties this morning through an agent, all REOs, and all needing work.
One is for sure a good numbers deal. But hopefully someone will either go in with me, or let me bird dog this one.
I put a FSBO under an assignment, told them straight out I couldn't purchase, but would they allow me to try for them. And they said yes. After 1yr, and no buyers, contract ran out, I find two buyers actually fighting over it, thus it is sold. But they are giving a money gift of thanks, since there was no contract.
Last week, another person from 3yrs ago, who I talked with FSBO, has had it with an a couple agents. She is fed up, so this week we are getting together. She will do a land contract or possible lease option.
Again no money down.
So things can be done.
Luke said it well. Take the info you have and make it work in your situation.
And everyone who can't seem to get contacts. Please, join a REI club. Networking is 99% of it!

lkward13: I agree with you; it just took me a little while to sort that out in my head among all the other things going on in my head.

keb64: Yes, some people, "Scared to pull the trigger," (are not risk takers), and they are lazy, but I am neither. Then, there are people who have taken risks in all sorts of real estate deals and have lost big time. However, there is nothing wrong with anyone in any business minimizing their risks by being cautious, educated, informed, etc., and there is certainly nothing wrong with, "Ripping it apart at every angle," assuming that you mean analyzing details to also minimize risk. Dean certainly teaches to be calculating and analyzing to minimize risks as do any of the speakers that speak for him. No one would ever say, "throw caution to the wind," and that seems to be what you're saying.

Every real estate transaction involves real estate laws and sometimes government regulation, too, and those things cannot be ignored, but those should not be used an excuse for doing nothing any more so than the other things you mention.

I'm not suffering from analysis paralysis. I'm figuring how to do things the best, most efficient, least expensive and most profitable way as any responsible, intelligent investor or any other buyer should do.

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