First Three Deals of September

More to come!
Thanks Dean

Michael

Never posted for some reason. bumping back up to see if it posts.

I am very surprised to hear this! I also signed up for the Success Academy and did my 5 deals within twelve months. I supplied the required documentation that proved I did the deals and my money was fully refunded. There are many others on this website that also has received their FULL refund from PMI. This is the first I have ever heard of someone doing and proving they did 5 deals within twelve months and not getting back what Dean and PMI promised.

I have found Dean and PMI to be 100% honest. Are you sure you documented each of your 8 deals and sent the info to PMI within the time frame?? Did you make over $1000 on each deal. I don't think we are getting the full story here. Dean and PMI do NOT rip people off!!! Even now if there has been some mistake and you can provide the necessary documentation on your deals, the time frame and how much you made on each deal they would work with you. If your stroke prevented you for providing the proof in time I KNOW PMI and Dean in particular WILL work with you.

Michael

I saw a REO property which was bought for 1 dollar. Can anyone tell me how I go about getting this. I'm new.

we are not getting the whole story here. i'm with michael on this. something is being overlooked are something.

walt

That REO may be worth a negative $1000. Who knows? That is certainly the exception to the rule. You won't be able to build a business wasting your time looking for $1.00 REOs!

Michael

Michael,

Where do you live? You always seem to be closing deals where your at. Don't worry Im not gonna step on your turf..lol. I live in Ohio and will be closing 2 of my 3 deals next week.

Im just wondering if your market place is better than mine. It seems that way at least. Either that or you have something figured out that I haven't yet.

Anyways awesome job man!! Always enjoy reading your posts

I agree we have to adapt my market in san diego has changed over the last 8 mo's from a byers market to a sellers and I have been doing the multiple offer strategy off the MLS offering 80% of asking price off of vacants, as is, & price reduced but havent gotten any hits, & have been doing this for a couple of mo's now, my agent is getting burned out, so Im wondering what I should change up, run comp's off the prop's I make offers on? I did order bandit signs should be here tomm or Mon will put those up & have my bus cards, but off the MLS I wonder what I could change, any thoughts Michael? & Company?

Jason,

I live in the Denver, Co. area. Always looking for deals here.

Tony,

You need to offer more or offer on more distressed properties. So your offers are too low or you are offering on the wrong types of properties.

Michael

Michael,

Congrats on your three (3) deals (so far) in September. Thank you for providing such detailed advice on the particular deals, as that is very helpful to many DGers.

However Michael, you are again out of bounds criticizing the 65% number. That is just a starting point. Apparently in your market it is higher; good for Denver and good for you. No one, not even Dean himself, said that number is "set in stone". It is merely a starting point and people need to network and speak with other members in your LOCAL REI GROUP to find what the number is [currently] in your particular area. And people, that number varies and moves with the market conditions (i.e. what is happening in your particular market).

Okay Michael, you like to network so let's talk. I have 120 units [3/2/2 and 4/2.5/2 townhouse units to be exact] that we can work on together. Do you know anyone in Texas who can handle such a project as this?? The rents are very very strong in this market and should be in the $1100 - $1350 range. The Seller is motivated. Some of the units are 95% complete; others are slab & frame; and the balance is in between.

PM me.

--Walter

I was not criticizing the 65% number. Some areas may be less than 65%!!! What I criticize is using some formula that won't work in your area. That is all I try and stress. I see where a lot of people don't understand that and quit because no one accepts there 65% offers when 70% may have worked.

I would not rely on the answers I get at an REI meeting concerning what the formula is. 99% of the people there are just professional tire kickers and students.

Whats the problem anyway? You say it is not set in stone, Dean says it is not set in stone, I say it is not set in stone. That is why I don't like seeing it presented as some kind of law or barrier. That's all.

Maybe what should be said is, this is the type of formula we use. Practice using the formula at 65%. Don't use that number until you find what actually works in your area. OR if offers are not being accepted DON'T keep offering at 65%.(Dean says this!)

On your townhouse deal, do you have an accepted LOI from the seller?
You control the property or are you a bird dog?
This is new construction, non occupied right?
Any liens of any kind?
Usually when an owner is selling before completion there are some underling issues. Do you know what those are? Just lack of funds or??
Any owner finance? Terms?
Asking price?
Cost to complete construction?
All permits still active?

Finally, IF the numbers are right and it is truly a desirable area, if I don't have anyone in Texas I can find them quickly. No problem!

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

First off, congrats on your evolved success and great start to Sep. I have appreciated reading your posts lately for their candidness and superior advice.

I have been trying to do my first deal for a few years off and on. I recently gave myself 40 days to go all in and get some deals done as of a few days ago.

Recent Steps taken: 800 # with Dean's scripts, 36 posted we buy houses bandits=no leads yet, ghost ads for craigslist buyers=several leads, local REI club calendar=going to one tmor, List of local REI buyer/seller/network/wholesaler websites, lots of note-taking from DG.com/BP.com/etc., and several conversations with realtor offices looking for agents(Matt's 25:1)=no investor friendly realtor with listings yet.

Yesterday I was reading a blog about seller incentives with Investors and surfed onto the iflip webinar. Your previous posts about REO success and the "fund-a-flip"(POF/TF) resulted in a very late night researching into REO's for the first time.

Now, Im at a cross road of whether I should employ the REO or assignment criteria to my next qualified realtor I find. Eventually, I will be open to most RE deals. However, to get this monkey off my back once and for all I am trying to decide on one strategy to focus on while attacking my first deal. Everything I have learned about distressed properties and FSBO assignments over the past years have suggested their simplicity and availability for a first deal.
Everything I have read about REOs since yesterday suggests that with fund-a-flip, and foreclosure websites there are more deals with more equity right off the bat in this niche.

I will make a decision soon and go with it, whether it is the lesser of the two approaches or not.

But, I'd appreciate a little direction from you or any experienced investor about which strategy would be better to use in South FL in today's market.

Specifically.....

1)Does the fund-a-flip advantage put a new investor in the ballpark with seasoned investors in terms of offering on, funding, and closing a REO Flip?
2)Is it too good to be true that I am seeing easy to find foreclosures on free websites with asking prices that leave 20-50% equity. Is 'wet funding' what is preventing the masses from snagging up these properties or are they likely offered on already and just not updated on the sites?
3)I guess the only way to know for sure would be to get a foreclosure realtor to submit an offer with POF and see what happens, right?
4)Have you experienced any pitfalls or unforeseen challenges with Flipping REO's?

Jonathan

I will answer your questions.

1. Yes
2. Those equity numbers DO NOT take into account the rehab/remodel costs. Not that there are not deals out there. Good deals are snagged up, to get some for yourself you have to make multiple offers. To make money you have to have buyers that will buy and pay your fee.
3. Yes make offers. Evaluate properties, rehab/remodel costs, ARVs. etc.
4. EVERY deal has its ups and downs and ins and outs. Watch out for any seasoning issues and adapt you acquisition strategy accordingly.

Michael

I just bought the EDGE and RBBP, does that mean it is not going to work? Is it too late for it?

thanks for sharing, and for reminding us about re-reading DG's books and adjust to the market! so true!

and these three deals by Sept 6th! can't wait to hear how many more you get within the next 23 days!

Gabriel,

That stuff will always work. The education is invaluable! You just have to adjust what you learn to your market. It could be that where you are it will work to the letter.

Valerie,

Thanks! I really like Be A real Estate Millionaire! Great book.
Got 3 more deals from a fellow wholesaler tonight. As soon as I take a look and evaluate them I will blast them out to my buyers. (if the ARV and rehabs are accurate)

Hey check my video. It got posted under success stories today. WE had 20 properties but they edited it down to 5 or 6. Time frame I guess. To bad, we went to 20 of our properties in one day making the video. All zero down, all sorts of acquisition, closing and marketing strategies.

Michael

Congrats on the deals so early in the month! You are incredible but you work hard to be incredible. It is handed to no one!

I can't wait to see your movie! I would love to see the complete, unabridged version.

Karen

Cant wait to find multiple realtors on Monday!!

I am going to make REO's my bread and butter. I relish the promise of soon profiting off of a bank for once ...hehee

But typically, whats the max time between a REO offer accepted and the double close?

Also, was wondering if you recommend any realtors/contacts, or have any specific tips for the S. FLA market?

Jonathan

Congrats!Way to go Michael!

By NOT being greedy on assignments fees (taking lower amounts)you can/will do more deals- and make more money!

I appreciate the advice!

Jonathan,

We have gone back and forth on REO offers up to 6 months. WE have had a few accepted in a couple of weeks. ONE was accepted on the first offer! After acceptance we can close as soon as the lender is ready. Usually 14 days.
You have to have a good agent to submit your REO offers.

Thanks Karen,
Yeah, they edited about 10 minutes from our video. I guess it was kind of long. They cut 14 properties from our tour. Oh well! Did you watch it yet?

Hey Mike! Thanks! You are so right on the fees. I have a LINE of real buyers waiting for my deals. AND a line of other wholesalers sending me their deals because they have no real buyers! I had an offer of $50,000 for my buyers list! The wife and I decided we would settle on $250,000. REI is such a great business. The snowball effect is amazing once you take action and pull the trigger.

Gabriel,

Glad I could help.

Michael

"Hey Mike! Thanks! You are so right on the fees. I have a LINE of real buyers waiting for my deals. AND a line of other wholesalers sending me their deals because they have no real buyers! I had an offer of $50,000 for my buyers list! The wife and I decided we would settle on $250,000. REI is such a great business. The snowball effect is amazing once you take action and pull the trigger."

REI IS the Greatest business!!

My buyers list is not for sale even @ $250k...and You know WHY!

Keep up the Great work Michael!

Mike

Well now I am going to have to raise my price for my list to $500,000. You made me think about it. Ha Ha!! Besides, the guy that buys my list still can't provide the deals I can! Just kidding of course, although we really did have a guy offer us $50,000. No way on that one!

Michael