25 to 1!! First deal of 2014!! $7,000.00

Congrats on yet another deal Mike. I appreciate your post on your success because it's an inspiration to me to know that the information works if I work it. Taking action is the key. Congrats again Mike. Way to start of 2014.

And the month is still young, more time for you to complete more deals...Congrats...inspiring...

Michael, do you think the 80-85% is a function of the market or of the price of the house. Is 80-85% what it takes in Denver or does the higher price allow for the investor to make a smaller percentage but an acceptable dollar amount?

Would love to make that kind of deal right now. Congrats and keep up the hard work!

awesome job on working the 25:1 system !!!!!! may 2014 be an abundant yr for you !!!!

Your success continues to reiterate that it's a NUMBERS GAME in any market, no matter the location or cost. And most importantly, buyers are key to our success! It's evident you built a great buyers list over the past few years. Patience & Perseverance

Question: Are you in the habit of collecting some money upfront, all of the money upfront or waiting until the close? Perhaps it varies by buyer & property...

Thanks for the great post!
Kristin

You are so right about taking action. I hope my posts help others to do so!

Thanks And God Bless,
Michael

Thanks and I know 2014 will be a good year for you. Keep taking action, you will get there.

Michael

The 85% is definitely a function of the current market. Low inventory and high demand have driven up wholesale prices faster than retail prices so the margins are smaller.
We moved into higher priced homes over 2 years ago. The 80% to 85% is what it takes (in most cases) here in Denver. We still get a 65% to 70% deal every once in a while. Although NOT off the MLS for sure! So we (and most smart investors) moved to the higher price point in order to get an acceptable dollar amount just as you suggested.

Michael

Just keep working it, it will come. Get the basics down and then go make offers on anything you can find. Don't wait on the perfect, risk free deal. It will never come!

Good Luck,
Michael

Thanks and the same to you!! 2014 is going to be a great Year!

Michael

I usually get my fee at closing. I do demand a non refundable earnest money deposit. Usually just matches what I have already put down myself. I ask that my buyers do all of their due diligence in advance of signing contracts. They have no inspection period and the earnest is hard. My contracts with my buyers are non-assignable. This prevents people tying up my deals while they search for a buyer. I don't mind people bringing in a buyer for a fee (we all do that) they just have to have them in place when they sign contracts, not after!

As far as my fee, alot of investors (the smart ones) use some type of financing, private money or commercial lenders to fund their purchases. Even or especially if the have millions in cash! Therefore the money to fund the deal does not arrive until closing. Then I get paid.

Michael

you are starting the New Year off with a " Bang " ......Sweet........

Regards,
Sharon

Wonderful start for 2014!

Wishing you and Deb the Happiest of New Years!

Karen

Thanks Mike, I really appreciate it, I feel this is my year too...

Thanks and Happy New Year to you!

Michael

Hope all is well out there on the beach!! 2014 is going to be a great year for you. All the hard work and time you have put in is already producing for you, it's only going to multiply in 2014.

By the way, did I ever tell you I was born in Greenville S.C.?

MIchael

You are welcome! Keep taking action. (I know you will)

Michael

Starting it off good, well done!

Aaron

Michael,
Congrats!! Thanks for posting about your deal. 2014 is starting off right for you.

I just found out about an investor group starting up in my town and I just joined (via meetup). Their first meeting is this month. I'm so excited because finally I'll get to network with some local investors and other real estate professionals.

Happy New Year to you and Deb!!

Your killing it man, thanks for posting your success. You are inspiring others to keep pushing forward.

Thanks!

Michael

Hi Teresa,

REI meetings are a great place to network. Started our own club back in September. I have sold deals to two of my members and others are bringing me their deals.

Happy New Year to you too!
Michael

wtg Michael and Deborah!!
may your 2014 be prosperous and record breaking.

Thanks and Happy New Year!

Michael

Thanks and same to you my friend!

Michael

Awesome congrats! Thanks for sharing the details. So is it safe to say that with 2 accepted offers you had 50 out there? Also how many times did you offer or counter on these ones before they were accepted?

Happy New year!
Thom

Hi Michael,

Congratulations on your early success. Good luck with your second deal.

I have few questions:
you are following 25:1, so do you look at each property and make offer after determining the repair value. How do you find time to look at 25 properties.

If not, what criteria do you use to make these offers, how do you arrive at the repair value without looking at the properties. If the properties are sold as-is how do you articulate your escape clause.

This information will also benefit others investors reading your journal.

Bimal

Mike,

what a great way to start the year! You are such an awesome investor!!
Val

On the first one we made our first offer about 3 weeks ago and they out right rejected our offer. Then about a week ago the sellers agent called my agent and asked if we were still interested. They said they would take $265,000, We said we would have to stay where we were,($245,000) They came back a few days later and accepted our offer.

The second one they accepted our offer the first time in. Pretty unusual, it was a new listing. They accepted an offer $50,000 under what it was listed for right off the bat. I think they liked the terms of the offer. Cash, 7 day inspection, 14 day close.

As far as the 25 to 1 we are finding that ratio to be pretty accurate. I actually have close to 150 offers out there as we speak. Doing 6 to 8 deals a month so there it is!

Happy New Year!
Michael