Another $25k Assignment Deal in Ca, Closed Friday,This one Came with A 74 Stingray Corvette ,$8k assignment, Closing next week

Do you have an agent that you work with for contracts on FSBO and if so how do you go about getting them commission?

Congrats! You are a living prove to others that Dean Strategies really work its all about taking action!!

______________________________
TC
Miami, FL

"If it is important to you, you will find a way. If not, you'll find an excuse."- Karen Ellsworth

FOLLOW My daily journal http://www.deangraziosi.com/real-estate-forums/investing-journals/144538...

Congratulations! You really did a great job of negotiating! Love the car. :9) So glad to hear another DG Member in CA is doing deals in spite of all those that say it can't be done here!

Way to go! CONGRATS!!

Tanner,
On my FSBO, I do not use my agents for the contracts, I use my own Calif. approved Contract which I got from Dave ( Coach at PMI ) I also use a promissory Note for My EMD,Once I have my Buyer sign my assignment contract, I take them to my Title co, including the purchase agreement from the seller, Open Escrow, I require my buyer Put a Non-refundable deposit into escrow to show their commitment.Some Title co's Do prefer you to use the C.A.R. Form,But each one is different
Hope this Helps,
Darren

Congratulations Darren!

Thank You TC, Dean's Strategies absolutely work we just have to follow the Steps and Continue taking Action and Moving Forward as He teaches us, The Whole DG Family is The Best also, So much Knowledge shared & Learned Here
Darren

Roxie,
Thank You for the congrats, Deals are a Bit Tougher Here in Calif, But we have to not Go Away, Keep our feet moving forward. Network,Network. Been getting good response from my Bandit signs & My Bird dogs.Always adding to my Buyers List as often as I can.My Naysayers Are Slowly Starting To Come Around:)LOL
Darren

Jackk,
Thank You Guys, Currently working on a couple more FSBO'S
as well :)Marketing is So Important for us
Darren

Teresa,
Thank You Teresa, Take That Naysayers!
One Of My Biggest Naysayers Is Slowly
Taking Notice LOL
Darren

Your perseverance is paying off! and on top of it you got a toy to go with your deal!

Very happy for you!
Val

Question is how or why did the seller take a $98,500 hit from the FMV??

ARV $280,000
Rehab $35,000 -
FMV $245,000
Sold it $146,500
Seller took a hit of $98,500 (not to mention the Stingray)

Is there a logic to this? Was the seller of sound mind? Hasn't the seller ever heard of market value and brokers out to sell at that price?

This can not be commonplace. I don't care what their situation, no one in his right mind would allow something that big go even if it's a FSBO. A slight loss for a quick sale for one reason or another is one thing, but 100K less is just ridiculous. And I don't even think sellers are too concerned about leaving enough profit for an investor. Their first priority is to sell at the highest possible price to a home buyer who plans to live in the house. Investors who plan to profit are at a distant second as far as most sellers are concerned.

Even if the seller had hired a broker at 6% he would have paid no more than $6,000 in commission. It's also safe to assume that it was a FSBO because the seller did not want to pay a commission and had some time to sell, but yet he was willing to take a big loss by giving the property at such a discount??

motivated seller!

I want to know why? Please provide details. It's easy to write it off as 'motivated seller' but what kind of motivation would it take to lose 100K??

Thank You Val Feeling Very Blessed
There are still deals Out here in Calif. Little Extra Work on Our Part
But worth the Rewards, We have To keep our feet Moving,Never Give-Up And Follow The Blue Prints That Dean Teaches & Our DG Fam.
Darren

Like Val Said Motivated Seller, Wanted A Quick Close For Cash,Helped Seller out of His Situation Left Plenty of meat on the bone for my Buyer,Made This a Win-Win-Win for Everybody, like we always want to do:) Yes,Seller was of Sound Mind.
Darren

Congratulations! Nice to see things working out. Gives me hope!
warmest regards,
Lisa Richardson

Great job, congratulations!

Michael

I think it would be very helpful to most if you could be more specific on what motivated the seller to lose almost 100K.

The standard quick close for cash reply is not enough for most of us here. If he was prepared to take that kind of a loss, one would think he could have sold it to anyone at anytime.

You mention about his 'Situation' can you please provide details of his 'Situation'. Perhaps we will learn something from your experience.

Paul,

There are many people out there who have 'headache' properties; and don't want to deal with realtors who will most likely ask owners to invest some money to get the house in selling condition... They have bills due, mortgages, taxes, insurance, all while the house is deteriorating... If they call the bandit signs and want to sell their house quickly, it is very likely that they will agree to sell at lower than average price. Remember that the 100K 'loss' is from the ARV which needs $ to bring it to the ARV state...

Thank You Michael, & Thank You Again For The Awesome Advice
It was Great Talking With You
Darren/ Blue Sky

All I've been getting is a blanket answer. Is there a reason why my question is being dodged? Aren't we all here to learn and help each other? I'm trying to see if WE could all learn from his experience.

I'm all for praising and congratulating a fellow DG member but I think this site is meant to be more than that. It is an honest place where we can all come to share our knowledge and experience.

By the way, the 100K loss is from FMV. Below are the numbers from the original posting:

ARV $280,000
Rehab $35,000 -
FMV $245,000
Sold it $146,500 -
Seller took a hit of $98,500 (not to mention the Stingray)

I read the original post several times and nowhere did I see mention of "FMV" of $245,000. I never consider that a valid number anyway. All I care about is ARV and the repairs needed to attain the ARV. Looks like Darren bought this deal at 65% of ARV minus repairs. I know this is rare in California and where I am also. HOWEVER it does happen every once in a while. Why would a seller do this? WHO CARES!!! Lost job, hates agents, did not want to do any work, needed the cash now after waiting to long to list it, needed to move, whatever. Knowing the exact motivation on this deal will not help you because every seller and every deal is unique.
One thing I know, if you aren't marketing consistently and making multiple offers daily you will NEVER HAVE THIS KIND OF DEAL HAPPEN TO YOU.

Now go make some offers!
Michael

Since you're considering the value at ARV minus repairs then $245,000 would be the FMV. And if we're working off that number then he actually bought this deal at 60% of ARV minus repairs ($146,500/$245,000); so actually we're talking the same thing here....a loss of nearly 100K by the owner.

Regardless of what the FMV is or not, what was the 'Situation' with this motivated seller? Is this really an unreasonable question to ask?

280,000 x 64.9% = $181,720 - $35,000 = $146,720. So I would say this was pretty darn close to a 65% of ARV minus repair deal. I think in California its a lot closer to 90% most of the time. However, these 65% (or less) deals do come along every now and then and the sellers motivation will vary. It is our job to find that motivation, it will never be quite the same.

Darren, could you please let Paul know what your sellers "hot buttons" were on this deal?

Paul, I just did an ESTATE sale (motivated seller) about six weeks ago. I wholesaled it for a $29,000 fee. The ARV is $590,000, it needed $120,0000. I bought it for $290,000 and assigned the contract for $319,000. FMV (whatever that is!) would have been $470,000 according to your way of calculating it. This seller took a $180,000 hit! Why? It was a MLS listed estate sale that no one wanted because of the extensive rehab/remodel needed. It was actually worth far less than the way you calculate "FMV" in the state it was in! If I recall it was at least 120 days on market, they started at a list price of $369,000 if I remember correctly. No one was biting so they took my offer after 6 weeks of countering. Why didn't another investor pay more? I don't know!! Why did they take my offer? They just wanted out, the place was vacant and in horrible shape. 69.5% of ARV deal.

Hope that helps,
Michael

Darren didnt do anythithing that Dean doesn't teach us; no secret to his success... He drives about two hours each way, several times a week; puts up yellow bandit signs ( many of them!,) , when sellers call him he answers the phone, listens to them, then goes look at the properties with a contractor to estimate cost of repairs, does his calculations, makes offer to seller, puts property under contract, then contacts his Buyers (which he already has several of) , open escrow, close, gets his check.

I know it sounds too simple, that's because the steps are simple, but it requires work! Not everyone here puts out bandit signs, continuously, not everyone picks up the phone when people call from their bandit signs, not everyone is willing to drive two hours each way several times a week to put out bandit signs or to look at properties, or to show to buyers....
This was one of many properties that he has looked at, one of the many phone calls that he has answered, one of the many offers that he has put in....he works hard! Every day!

I don't understand why you are so hung up on the numbers; what difference does it make if it's 60% or 65%; who cares! Seller was happy to get rid of property, buyer was happy to pay an assignment fee and to buy the property, and Darren was happy to get 25K!

We're going around in circles on this matter. I understand everything single thing you said, but the fact remains, as Michael pointed out, what where the sellers "hot buttons" on this deal?

We're not debating the 5% difference in numbers and the steps you are explaining is elementary. We all understand it. But again, without beating around the bush, WE all, and that includes you, should be curious and willing to learn from his experience. Why aren't you interested in asking some questions, don't you want to learn from a fellow DG member? I surely do, that's why I come here.

I mean I've asked this question numerous times, but the answers are so vague that it compels me to ask again!!

I haven't been on this site in a while and this is the first thing I see.
Way to go Darren.

Here are the details in regards to the sellers Motivation/ "Hot Buttons"
for the Deal:

1. House was empty ( owner was having the son stay in house occasionally so as to avoid Vandals )
2. House was in Very Poor condition, & Was Deteriorating Away,As we Know they do when left Vacant too long, Son was Neglecting it Severely .
3. Sellers son did not want to live there by himself in this Large home,
moving in to a smaller home near Mom & Dad
4. Sellers Knew that due to Poor Condition of the House it could only be bought for Cash & By an Investor, " No Bank would Finance This"
5. Sellers Also wanted a Very Fast/Smooth " Cash" Transaction for their House, & We ( My Buyer & Myself) provided this To Them, We Closed in Less Than 7 Days, The Biggest delay was waiting for The Bank To Issue Stamp & The payoff demand ,Due to seller Having a 1st Mortgage on The property.
6. I left "Plenty Of Meat On The Bone" As well For My Buyer, As I Always Try And Do. Sellers Walked away Happy, Buyer Walked Away Happy, I walked Away Happy
Win-Win-Win For All
7. oh 1 more Thing Son Was A Bit Of A Pack-Rat As Well

Paul, I did notice that in your calculation that you did not acct for any of the Fees as well which we Must acct for in our due diligence.
Closing fees= 3%, Holding Fees= 3%( 3 Months for rehab& Re-sell)
Realtor Fees = 3-6 % ( FSBO= AVG 3% ) , - Rehab Fees, - Our fees.
And of Coarse our Buyer's Profit, This were taught to me from the Awesome Coaches from The Success Academy As Well from The Awesome Dg Fam Site as Well, I am always Very Pro-active in Learning & Trying To Absorb as much Knowledge as I can, Daily

I live up Near Yosemite Park here in Calif & I drive an avg 0f 2hrs Each way for my deals, Posting my Bandit signs, Networking, Advertising,Meeting With possible sellers,Realtors,Contractors etc,I also have multiple Realtors who work with me,( Offers,Offers,Offers) I also am slowly acquiring an Army of bird dogs ( 220 Currently ) who are bringing me leads as well , Due to my website & advertising on Multiple sites, I work Very hard at This,
"But The Rewards & Blessings That come With it Are Wonderful! :)"
Dean Teaches us " Thank You Dean" & "Thank You DG Fam" & Thank You To Our Lord, that we Must Put in the Effort & Extra Work To make Things Happen, " We Can't Give-up Or Quit & Definitely Not Listen To The Naysayers!
Sorry for the Novel of a Post, But I do Hope this Has helped.
Let All Make It A Good week!
To All Of Our Success
Darren

as Michael said, every seller will have different reasons for his/her motivation to sell... Dean teaches us that... it can be divorce, retirement, moving, etc. etc....
There is nothing about Darren's deal that anyone hasn't learned from Dean... and the answer to your question is No, I do not want to ask questions because I've been communicating with Darren long before he started this deal and I know that he is just following Dean's strategies, and that anyone can do it, that is, if they put their heart and mind into it...

And now that Darren has 'answered your question about sellers hot buttons' did you learn something new?

Anyway, this thread is about celebrating Darren's deal, so Congrats again buddy! Great job!!