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February Is LOOKING GOOD!

Posted on: Thu, 02/05/2015 - 00:41
February Is LOOKING GOOD!

So far this week I have assigned a contract on a house that Debbie found doing pre foreclosure research. Assignment Fee is $3500, closes the 23rd.

Got a lead from a friend concerning a friend of his that was way behind on payments. Talked with the seller and determined that he needed to talk to my Short Sale guy and figure out what avenue he should pursue. A short sale was determined to be his best option. My agent listed it and we got a full price offer in 24 hours.
Of course, now we deal with the lender and get it closed. Payday, who knows? Short Sale!! I'll net $6500 when it happens. Could be less that 30 days.

Did a co-wholesale deal, I provided the buyer. My net is $5,000. Closes the 17th.

This all happened in Denver, where there is no inventory and every listed property goes for list and higher!! Just doing what Dean teaches, that's all!

Not bad for 4 days work! These deals are the result of networking and marketing to unlisted sellers.

Thanks again Dean!!

Michael

__________________

Knowledge is power, but execution trumps knowledge. Tony Robbins

http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site


Posted on: Thu, 02/05/2015 - 01:42 #1
michael

that is awesome and it is not even the end of the week yet.......

__________________

Watch your thoughts, for they become words.
Watch your words, for they become actions.
Watch your actions, for they become habits.
Watch your habits, for they become character.
Watch your character, for it becomes your destiny.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Our Heart's Desire must be nurtured by our mind,to give birth to common sense, that will enable us to seek out the path less traveled, with the greatest Personal Growth. -J.R.-


Posted on: Thu, 02/05/2015 - 17:42 #2
Thanks Joel

Yep, working several other deals as we speak. Going up to Grand Junction, Co. to visit my youngest daughter Friday thru Sunday. She's in her 2nd year in college up there studying to become a radiologist. We have 5 or 6 properties to look at up there. Going to rent one out to her and a couple of her friends for the next 3 or 4 years then sell it or keep renting it out to students OR have a little house up on the western slope of Colorado for Debbie and me.

Ain't Real Estate GREAT?!!

Michael

__________________

Knowledge is power, but execution trumps knowledge. Tony Robbins

http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site


Posted on: Fri, 02/06/2015 - 03:55 #3
Great!!!

Your rolling Mike, keep up the good work. Your post always motivate me to push harder and get more deals done.

__________________

Reynold Orozco


Posted on: Fri, 02/06/2015 - 15:41 #4
Michael

That is awesome ...... Not only are you going to help your child but it is a double win keep it going.....

As stated by Reynold as love what you share with us.....

__________________

Watch your thoughts, for they become words.
Watch your words, for they become actions.
Watch your actions, for they become habits.
Watch your habits, for they become character.
Watch your character, for it becomes your destiny.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Our Heart's Desire must be nurtured by our mind,to give birth to common sense, that will enable us to seek out the path less traveled, with the greatest Personal Growth. -J.R.-


Posted on: Fri, 02/06/2015 - 18:33 #5
Michael and Deb

Great job! As always.

Karen

__________________

"You're never too old to be what you were meant to be!"

www.deangraziosi.com/real-estate-forums/investing-journals/59128/day-for...

"Shining Like a Star & Dancing on Sunshine"

"Shoot for the moon! Even if you fall short, you'll still land among the stars!"


Posted on: Fri, 02/06/2015 - 18:47 #6
Thanks Reynold!

I hope my posts help everyone!

Michael

__________________

Knowledge is power, but execution trumps knowledge. Tony Robbins

http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site


Posted on: Fri, 02/06/2015 - 18:48 #7
Thanks Karen

We're working it!!

Hope all is well,
Michael

__________________

Knowledge is power, but execution trumps knowledge. Tony Robbins

http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site


Posted on: Thu, 02/12/2015 - 19:36 #8
Deals in Denver

Great to hear what your doing..

__________________

Dan in Seattle..


Posted on: Thu, 02/12/2015 - 19:53 #9
24 hour recored message

Great job , I have a question where can I get the best deal for a 24hr record message for my real estate career.


Posted on: Thu, 02/12/2015 - 20:31 #10
Dan

Thanks. We are moving aggressively into other states as well. Denver has a really tight market and so many other locations do not Smiling

Michael

__________________

Knowledge is power, but execution trumps knowledge. Tony Robbins

http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site


Posted on: Thu, 02/12/2015 - 20:34 #11
Quincy

Thanks. You can get a free phone number and record a phone message at google voice.

Michael

__________________

Knowledge is power, but execution trumps knowledge. Tony Robbins

http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site


Posted on: Sat, 02/14/2015 - 02:54 #12
Your system

When you are expanding to the new market aggressively, what is your timeline of structuring your team to be settled to launch your RE business activities in the new state?


Posted on: Sat, 02/14/2015 - 17:34 #13
Judy

We try to be set up and making offers in 30 days or less.

Michael

__________________

Knowledge is power, but execution trumps knowledge. Tony Robbins

http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site


Posted on: Sat, 02/14/2015 - 19:18 #14
February update

We got a 1.4 million dollar turnkey rental portfolio in Williston, ND under contract Friday. $3500 earnest money and a 21 day due diligence period! Putting together the marketing material for the deal over the weekend. It's an 18 cap.
Already have some buyer interest and have lined up a couple of lenders from a morning REI breakfast I went to this AM. Our fee will be around $75k. If we co-wholesale we will split that fee!

Got a property in Decatur Ga. under contract and looking to wholesale it down there. Should net the buyer $25,000. Our fee on this one is $5,000.

Michael

__________________

Knowledge is power, but execution trumps knowledge. Tony Robbins

http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site


Posted on: Sat, 02/14/2015 - 19:51 #15
Rolling in Denver

Way to go Michael, I see your footsteps ahead of me going up the mountain..Dont slow down, We'll catch up, thanks for showing the way..Dan in Seattle

__________________

Dan in Seattle..


Posted on: Sat, 02/14/2015 - 21:51 #16
Thanks Dan!

Hows business in Seattle?

Michael

__________________

Knowledge is power, but execution trumps knowledge. Tony Robbins

http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site


Posted on: Sat, 02/14/2015 - 23:24 #17
Hey Michael

What do you mean by an 18 cap?

michaelmangham wrote:
We got a 1.4 million dollar turnkey rental portfolio in Williston, ND under contract Friday. $3500 earnest money and a 21 day due diligence period! Putting together the marketing material for the deal over the weekend. It's an 18 cap.
Already have some buyer interest and have lined up a couple of lenders from a morning REI breakfast I went to this AM. Our fee will be around $75k. If we co-wholesale we will split that fee!

Got a property in Decatur Ga. under contract and looking to wholesale it down there. Should net the buyer $25,000. Our fee on this one is $5,000.

Michael

__________________

Watch your thoughts, for they become words.
Watch your words, for they become actions.
Watch your actions, for they become habits.
Watch your habits, for they become character.
Watch your character, for it becomes your destiny.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Our Heart's Desire must be nurtured by our mind,to give birth to common sense, that will enable us to seek out the path less traveled, with the greatest Personal Growth. -J.R.-


Posted on: Sun, 02/15/2015 - 02:49 #18
Joel

insidernotes wrote:

What do you mean by an 18 cap?


The NOI (net operating income) ratio is 18% of original capital cost. It's usually based on an all cash purchase, but nevertheless a good quick way to value a deal.

Another quick way to analyze a deal is to use the below formula and aim for minimum 5% cap.

NOI/FMV = CAP

For example:

NOI $50,000/FMV $1,000,000 = 5% (The maximum to pay for the property is $1,000,000. Paying anything above will drop the cap below 5 and upset the desired NOI ratio)

The caveat always being that the higher the rate the more problematic the property, such as a bad neighborhood, lack of amenities or some other situation which makes the property less than attractive to investors. Prime investment properties usually have low cap rates and are directed towards investors with other investing goals besides immediate cash flow. Cap rates are primarily used to analyze investment properties including commercial.

__________________

P.S. - Everything else is immaterial, irrelevant, and unnecessary.


Posted on: Sun, 02/15/2015 - 07:05 #19
Again

Thank you for clearing that up, as I will have to refer to it in the future

CaREI wrote:
insidernotes wrote:

What do you mean by an 18 cap?


The NOI (net operating income) ratio is 18% of original capital cost. It's usually based on an all cash purchase, but nevertheless a good quick way to value a deal.

Another quick way to analyze a deal is to use the below formula and aim for minimum 5% cap.

NOI/FMV = CAP

For example:

NOI $50,000/FMV $1,000,000 = 5% (The maximum to pay for the property is $1,000,000. Paying anything above will drop the cap below 5 and upset the desired NOI ratio)

The caveat always being that the higher the rate the more problematic the property, such as a bad neighborhood, lack of amenities or some other situation which makes the property less attractive to investors. Prime investment properties usually have low cap rates and are aimed towards investors with other investing goals besides immediate cash flow. Cap rates are primarily used to analyze investment properties including commercial.

__________________

Watch your thoughts, for they become words.
Watch your words, for they become actions.
Watch your actions, for they become habits.
Watch your habits, for they become character.
Watch your character, for it becomes your destiny.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Our Heart's Desire must be nurtured by our mind,to give birth to common sense, that will enable us to seek out the path less traveled, with the greatest Personal Growth. -J.R.-


Posted on: Mon, 02/16/2015 - 17:32 #20
More on Cap Rates

The higher the cap rate the higher the risk, the lower the cap rate the lower the risk.
The normal range is between an 8 and a 12 cap. Institutional investors will often invest in lower cap rated properties. A long term stable investment appeals to them. Others specialize in what is known as a "value play" where they take a property in need of updating for whatever the reason, make the needed improvements, then raise the rents. Increasing the cash flow and the equity. However, some properties are just junk with no possibility of any real improvement. These are torn down and built brand new when the area improves and/or the market calls for new development.

It is similar to what fix/flippers do with ugly houses. Flippers buy a junker that is a high risk or pretty much worthless as/is. They then rehab/remodel it adding value to the property and then sell for a profit. Commercial Investors will remodel and raise rents while improving the quality of their tenants. They get increased cash flow and have gained equity from their fix/up. Thus the "value play"

So depending on the investor and their goals, a higher cap rate property can be converted into a very stable investment. This is actually what the most successful commercial (anything over 5 unit buildings)investors do. Only those that do the ground up development make more money!

Hope that helps!
Michael

__________________

Knowledge is power, but execution trumps knowledge. Tony Robbins

http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site


Posted on: Mon, 02/16/2015 - 23:26 #21
MICHAEL AND DEB GREAT JOB !!!!!!!

congratulations...... I'm happy for Ya'll. What other states are y'all working now ??


Posted on: Tue, 02/17/2015 - 03:16 #22
Keep up the extraordinary work

Love these posts! Keep it up Mike!


Posted on: Tue, 02/17/2015 - 17:04 #23
Thanks Walt

We are in Georgia, Alabama, Oklahoma, Wisconsin. Michigan, Missouri, Florida and looking to expand into a couple of others. Just started in North Dakota. We are based out of Colorado of course Smiling

Michael

__________________

Knowledge is power, but execution trumps knowledge. Tony Robbins

http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site


Posted on: Wed, 02/25/2015 - 12:33 #24
NEW ORLEANS LOUISIANA OR JACKSON MISSISSIPPI

by any chance ??


Posted on: Wed, 02/25/2015 - 16:13 #25
Sterling

Thanks! I hope my posts help out!

Michael

__________________

Knowledge is power, but execution trumps knowledge. Tony Robbins

http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site


Posted on: Wed, 02/25/2015 - 16:15 #26
Hi Walt

We are looking into moving into 2 or 3 more markets.

Why would we choose New Orleans or Jackson?

Michael

__________________

Knowledge is power, but execution trumps knowledge. Tony Robbins

http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site


Posted on: Sat, 02/28/2015 - 00:43 #27
Hey Michael

Have you thought about NW Arkansas? We are home of Walmart and they are doing a fantastic job at getting people to visit, invest and live here.

This area is booming we should talk.

Aaron


Posted on: Sun, 03/01/2015 - 05:42 #28
Two Year Newbie

Hi Michael great job and continue the good work.

Am an Canadian That still struggling to make my first deal.


Posted on: Mon, 03/02/2015 - 16:58 #29
Aaron

What cities in Arkansas are you talking about? We will certainly take a look!

Michael

__________________

Knowledge is power, but execution trumps knowledge. Tony Robbins

http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site


Posted on: Mon, 03/02/2015 - 19:45 #30
sweet michael

way to go how encouraging, did a deal myself earlier this mo. way to go

__________________

Tony

Go faster do more! GFDM!


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