OfflineOk so all is going great am at a level of supreme confidence, I just did my 8th deal! 7k coming to me from my buyer & he put 40k in to escrow non refundable so he is defintely closing on the prop, deal should close Tue 3/31st, I wrote about this deal a wk ago thinking I had lost it.
So I locked the deal up from 25:1 for 370k ,ARV 520k rehab 60k buyer w/make 50k (bc he has cheap labor his own $ not using hard money & uses cheaper but good materials from Mex)
so the sticking point w/my buyers w/that they werent going to close on the prop until the seller moved out but i had agreed to close the deal with the seller staying in the prop for up to a month while she went thru her husbands things seeing w/one's she wanted to keep & that she w/rent back the hm for $1,500 for that mo. (big mistake:)
seller was a widow & w/going at it very slowly, God bless her.
Well my buyers(s) did not like that since they had been burned by folks staying in the hm for mo's after close of escrow & losing ton's of $ w/holding costs & not being able to start rehab on the props & having to evict the them, CA is a friendly tenant St & it can take up to 6 mo's to get someone out of a hm! & cost a lot.
So it was looking like I w/going to lose this deal like I had written earlier so I told my agent that the deal was dead & proceeded to sulk for Fri & Sat of last wk thinking all was lost.
But had remembered that 1 of my buyers had said to tell him if I w/going to cancel that he w/go to the listing agent directly w/an offer of 375k & give the seller 40k upfront non refundable so she wld agree to the condition of not closing till she moves out w/is looking like this Tue, & that he w/give me 7k for it. He gave it to me in writing as well.
So I cancelled & my buyer made his offer & the seller accepted it! Hallejujah!
Of course the listing agent was very motivated since he w/double end the commission & make 40k instead of 20k)
This w/be deal #8! the deal was saved thank God!
Lessons learned, #1 dont' get props that are occupied or if they are at least structure them with $ upfront non refundable so they w/agree to a closing after they move out.
Lesson learned #2 don't use a buyers agent anymore! We got lucky on this one too using my buyers agent bc the seller said my agent reminded her of her son LOL! but my buyer proved what I already knew & Matt had said, make offers directly to the listing agents!.
list agents w/be more likely to take your offer over other offers that have a buyers agent bc they w/double end or get all of the commission!
I know it is wrong, they are not supposed to! they have a fiduciary duty to hve the best interests of their client at heart & present all the offers! But w/can happen I have heard is the list agent accidentally puts the other offers w/buyers agents or financed offers at the bottom of the pile & presents the seller w/your all cash offer w/no buyers agent at the top!
It is human nature! We all want/need to prosper & have more $ for our families, mortgage, vacation, operation etc whatever we need right. So no more buyers agents(my buyers agent w/offering for mo's & no deals)so no more, just going to the listing agents.
Lesson #3: The san diego market is soooo hot!! buyers want/need deals & inventory is low so that is why I am now offering all cash, quick close, 15 days, no contingencies(no inspection) higher emd, 4k-5k(the buyer is paying it anyway)or even higher if need be 20k released to the seller immediately for example( that is w/my buyers have told me to do) (this is the MLS I am talking about not off market)
that is the only way to get deals on the Mls here & in hot markets w/listings are getting offers over asking like San Fran, Phoenix, LA, OC, Orlando, NY etc., again you have to have buyers that w/pay this, don't offer like this until you have buyers that w/do this & back out of your offers bc you don't have buyers that have told you this is what they will do ok.
Also, a deal is never dead until the fat lady sings or at least humm's LOL keep at it & dont' give up
people say you cant wholesale in southern CA or North Ca SF, not true, just believe, it's exactly like Matt says you can do it anywhere! I'ts all mindset, You have to adapt your strategies is all sometimes.
Find out w/your buyers are doing to get deals, ask them how you should you offer to help them get deals & they w/tell you, they cannot be everywhere, they want you to help them lock up deals, they don't have the time sometimes or don't want to do it they would rather have someone else get deals & pay them or they miss the deal on the MLS or you outbid them!
It has happened to me already on this deal & the previous deal here in Chula Vista, so get to know your buyers, listen to the teaching here & in Dean's book 30 days to cash and/or your training if you signed up for the Success acadamy.
remember w/Michael Jordan said, "I have failed over & over & over, & that is why I am successful!"
Tony
Go faster do more! GFDM!
AWESOME I loved reading your story. Your right "it aint over til the fat lady sings" !!
WALT
right, or humms, it aint over till it's over.
Tony
Go faster do more! GFDM!
Thank you for the valuable pinpoints from your great story. I really appreciate you took time to write out all those priceless lessons you went through with your sweats and blood. Now I am very motivated and have less fear than ever in Orange County,CA! Looks like I am right next to the "All-Star" REI players here (with Ali, Mark, Tammy R, Thomas-TRSD, CaliTony, Rando, and Denni P) where I thought it was the most difficult place to create good deals. I feel very fortunate; I wish I can follow one of them all day long to see how they do their daily REI activities.
Incredible isn't it? As more deals closes more confidence is gained......
You are absolutely right you knew you had a great deal and remembering the techniques here and carefully listening to your buyers was key.....
I wish you more deals closing before the edge.......
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.-
Congradulations Tony!!!!, feel your energy, oh I feel the energy, Jim
jbischoff
Your welcome & yea it is totally possible here & it is cool to have these other dg'ers here, So Cal is a doable place to get deasl we just have to apply these techniques in these hot markets & follow w/our buyers are doing to get deals on market or on the MLS.
It's all mindset really like Dean says in his latest WW. If you followed me around all day you would see I am still working at being as effective as I can & making offers & staying positive & organized w/is difficult I think but once you get a deal the momentum carries you & it becomes easier like Dean says.
It is cool to have these other investors here in So Cal! LMK if you get anything in SD & we can co wholesale it ok & I do plan on adding OC later in the yr to my areas.
keep at it & you w/see results.
Tony
Go faster do more! GFDM!
for reading my post. cant wait to you get your 1st deal!
Tony
Go faster do more! GFDM!
so true confidence is ooozing right now, feels really good. cant wait for more deals gonna work even harder to make sure I have several deals bfore the edge.
forgot to say in making offers in hot markets on the MLS to not include "and/or assigns" bc agents/sellers are on to us that we want to wholesale the prop also too many wholesalers like myself in the beginning made too many mistakes by not having buyers or the right buyers or not comping out & evaluating the props correctly & carefully & had to back out of the deal.
So it has given wholesalers a bad name I think as a matter of fact I don't even present myself as a wholesaler anymore, only here to my fellow dg'ers & closes friends. I just say I am an investor & that wholesale & that I do want to fix n flip & buy n hold & I will if the right deal comes along I have buyers w/will partner w/me on the deal & bring in the $ & I get a % of the flip profits or cashflow from a rental.
It's just that I prob wont do that right now but later in the yr or nxt yr, but they dont' need to know that
only me, so I say I am a buyer send me your deals(to other wholesaler/bird dogs/investors/buyers) I am buying.
And that way they send me their deals, I am not lying I may actually keep it & flip it w/another buyer of mine even tho the probability is low LOL. That is the way I present myself to everyone now, agents, wholesalers, contractors, buyers, bird dog's, lenders, etc. anyone really. It makes a difference, & what I have found is that all my buyers almost all of them wholesaler also to their other investor friends they just aren't a professional wholesaler like me with a buyers list & techniques like Matt/Dean have taught us that is all.
So go out there & get em & I hope this has helped. God bless. Remember If I can do this anyone can, I don't drive I use a white cane due to partial vision & I pretty much work from hm & have done 4 wholesale deals in kansas city mo & now 4 in san diego ca. Now go make offers!
Tony
Go faster do more! GFDM!
that not putting and/or assigns in your offers when you do that & one get's accepted & your buyer tells you they want the deal, you tell the listing agent that you want to close the property in your partners name LLC & they usually will let you.
When they don't then you will have to double close it, no worries, just make sure you state in your offers you will use your title/escrow co.(which does dry double closes & assignments) you have to find these title/escrow co's & do your homework, I found mine through my local reia & another one by finding out on my 7th deal that the title/escrow co the bank wanted to use bc it was an REO, did dry double closes(which is using the end buyers funds to purchase the property & then turning around & selling it to him, again with his/her own funds)
If they want you to use their title/escrow & they wont' budge just ask which it is from the agent you want make sure that the deal will run smoothly & get their ph# & call them & ask them if they do double closes & if they can use the end buyers funds to close the 1st transaction, your purchase & then turn around & have another escrow & close it the same day & sell it to the end buyer-w/is a dry double close.
Hopefully their Title/escrow co does dry double closes, if not push for your title/escrow if they still don't budge you can always still get it under contract & then ask to put it in your partner name(assign it) they will probably say yes 9 out of 10 time's, on the 10th time they dont' just tell the listing agent that you are going to have to back out that you really need to put it in your partners name you cannot buy props right now under your LLC in your name at the moment something has come up.
I bet you they w/say yes, & if they don't then just back out you wont look that bad since you needed to put it in your partner's name period & that is the reason why you are backing out. Move on to the next deal.
Basically you have to make your offers the most attractive out of all, all cash, no inspection, 15 day close & emd being non refundable to compete & get the deals since they are being ovebid(but do put your title/escrow co that does dry double closes & assignments) & that way you have a chance to do the deal if they don't let you assign it.
Also, of course they don't know you are wholesaling the prop, never tell the agent/seller you are wholesaling the prop, only your buyers know you are wholesaling, no one else.
It's none of the agents/sellers business what you are going to do with the prop, w/your exit strategy is. As long as you perform(meaning your buyers perform) on the deal that they close it so we go back to having a strong buyers list! like Dean/matt always say, go to your reia's that is how I got my heavyhitter buyers who do multiple deals per month. Now go get em!
Tony
Go faster do more! GFDM!
Tony.....
Outstanding !
every obstacle is a new way to make RE Investing more stream lined....
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.-
No inspection? How do you do your due diligence and not get caught up with making sure you have your rehab numbers in place?
Or you use the standard equation for rehab as they taught us to do?
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.-
my buyers do their inspections beforehand they go see the prop immediately w/I get it under contract, I tell them they have to move quickly, they know I have 50 other buyers int & that w/move fast, so they know.
They go see the prop & if they want it then I ask to assign the prop, w/they give me permission then I assign it & the buyer puts down the emd w/goes hard immediately.
If they don't give me permission to assign it then I have double close it, of course I have set up my title/escrow co for that & have asked to use mine in my contract, & I fill out another purchase agreement with my buyer, now I as the seller & my buyer as the purchaser with my profit on top of what I have the prop under contract for & the buyer puts down the emd non refundable in to escrow & I write it in to my purch agreement w/my buyer also as the emd that is due non refundable in to escrow right away, no inspection period, same closing date of course since it is a double close & my buyer has seen the prop so he doesn't need inspection.
Your buyers will tell you what they are looking for & ask them if they are ok with this, they will tell you they are in hot markets bc that is what they are doing, you are just beating them to the punch & handing the deal over to them. This is all predicated on the fact that you have a solid buyers list of course & that you communicate with them, wholesaling is all based on our buyers list, no buyers you prob wont wholesale or not smoothly, maybe you w/find a buyer but good luck it is tough to find buyers once you have a deal it is better to hve buyers beforehand, buyers can hear the desperation in your voice when you are against the wall looking for buyers for a deal you have gotten.
Tony
Go faster do more! GFDM!
oops, excited now, ok w/rehab ask your buyers w/they spend on that, I did. My buyers told me one of them he that he spends 35-45k on a starter hm up to 500k average sq ft 1,200-1,400 for a regular updating of a hm, kitchen, bthrooms, landscaping, carpet paint etc.
This doesn not include if the hm needs foundation, roof etc. major things you have to add that in. Often times there are bids on those major issues already that the seller w/have so you have an estimate to work with. My buyer the main one told me whatever that bid was to whack it in half, he again does rehabs cheaply, he has cheap labor, & cheap materials from mex, he is mexican.
Another buyer said the same thing, he uses cheap labor, they add on a bed/bath add more sq footage & make 3/2's in to 4/3's & their arv goes up etc. you have to talk to your buyers just ask them how you should offer for them, should you include all cash, emd non refundable, 15 day close etc. ask them how much they spend on rehabs, roofs, foundation, adding on sq footage.
my main buyer said it costs him $80-$100 a sq ft to add on sq footage, that prob is a rule people can follow in So Cal & prob even markets like NYC maybe even a little bit more there, labor is more expensive there than here.
this is how buyers are making deals happen in hot markets like san diego, they use their own $ so they dont have to borrow it or if they do they have special deals w/it is cheaper for them & they are able to make deals that were not deals work.
Tony
Go faster do more! GFDM!
This Makes a lot more sense you have developed a well established relationship with your buyers that is why you can go around the inspection period and have already co-ordinated your fee.....
not only that you must have your cherry pick of which buyers will perform and act swiftly....
i can only imagine the horror stories you endured while vetting your buyers
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.-
Golden Nuggets -
these very helpful questions you provided are true golden Nuggets, not only does it allow me to weed out those that are not true buyers from the pretenders
plus it gives me more insight from the buyers
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.-
Good Job
For every adversity there is the seed to an equivalent or greater benefit
( W.Clemente Stone ) Founder of Combined Insurance and Author of The Power Of OPM
Things are really going well for you now! You refused to give up and it is paying off.
Very proud of you!
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!"
Congrats on the deal.
I agree I never tell anyone Im wholesaling only the buyers, on my card it says investor not wholesaler.
Nice breakdown this will help.
Aaron
i will make you proud. i wont have to call anybody cause yall will all here me shouting from the roof tops !!!!!!! thanks for what you have done to help me along !!!
WALT
Way to go Tony, and thanks for writing all the details of the deals.. ..
Dan in Seattle..
no horror stories, there are some wannabe's or wholesalers posing as buyers(but the diff is I perform now so I am legit:) but for the most part just investors who want deals & are honest & easy to work with.
my last 7th deal the buyer was a pain in the a@% to work with so the 8th deal I gave it to someone else & he was ****ed but I trained him how I wanted to be treated & to be quicker about responding, you have to do that, wholesaling is all about speed & having quick buyers. Keep at it Joel you will have a breakthrough, as they say winners never quit & quitters never win ha.
Tony
Go faster do more! GFDM!
Your welcome btw Joel, & thx Daryl & karen appreciate it. keeping it at & lets do lunch at the edge.
Tony
Go faster do more! GFDM!
Your welcome Walt yea I will hear you keep at it do smething every day for your biz even if it is one thing, sooner or later you will get a deal & bang you get momentum, it does work my friend.
Aaron, thx buddy I am going to share all my insights & give back to the dg fam bc I have been given so much & I want to help. YOu can do this my friend you know you can & you are working towards it & you will have your first deal soon & the edge is going to give you sooo much momentum, let's hang!
Seattle Dan, thx too I know that you too are going to get deals like gangbusters bc you are here learning & putting forth the effort, it is difficult but it can be done. Seattle is a great market prob like san diego a lot i bet. I am going to share like I was saying going forward more consistently now & I hope it helps, I want to give back. Roger out.
Tony
Go faster do more! GFDM!
I am going to request time off from my job ! That's how determined and striving forward I am :0). Also I hope Dean and his team reserve some tickets for some last minute chance at the very least I will be viewing remotely so I am preparing for that......
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.-
way to go nice on watching remotely the next best thing. good, yea i think there are spots for watching remotely there are sstill some tix left for going there too i think.
Tony
Go faster do more! GFDM!
Way to go. You have separated yourself from the wannabe, and you perform. That's how you establish true business.
To get something you've NEVER HAD
DO something you've NEVER DONE.
7k just got wired in to my acct!!!!!!!!!!! My buyer closed on the property!! The Lady moved out & my buyer was able to close, the deal was saved!!!!!
I can't tell you how that feels!!! It feels amazing & since I spent some $ in Mex going on vacation this will replace some of the $ I spent, it is a shot in the arm! Now I can do a few more things like mailers next week & prob get a VA soon.
My buyer is top notch he is doing about 10 deals a mo right now so busily making offers to get more deals.
It goes to show that when you think something is lost it is not, try to think about solutions & think positive, thats what I did the Sun after I thought the deal was lost & my friend who is also a REI encouraged me to think about solutions(also hang out with other RE investors! It took me a while to find someone like that too but keep pushing!! Don't give up!!! Your answer is right around the corner)
I can't tell you how many times I gave up & my answer was around the corner, no mre. It also proves with me even bumbling forward like feeling my way thru the dark that anyone can get deals. I mean really, all you have to do is one thing a day, make an offer, start small & then repeat every day & eventually you will build momentum & boom you get a deal & then you will start the fire of your RE investment business.
To everyone thanks for all your encouragment & help it is sooo awesome.
Tony
Go faster do more! GFDM!
Man that is awesome. i am so happy for you. way to keep it together. i wish more people would post there successes. i know there out there doin deals and just forget to come in here and tell us about it. CONGRATULATIONS MAN i'm proud of you !!!!!
WALT
Wow, that is awesome. I know, it's so weird how you think a deal has died but later it gets revived...lol. Keep up the great work!!
Teresa
College Station, TX
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"Declare that you will prosper despite every difficulty that may come your way. Don't just survive; thrive!"
-Joel Osteen
thank you both appreciate it & Walt yes we have to remember to give back I know people are getting busy making $ & living their lives but we have to remember where we came from.
I do wish some people who were active before would come back so we could all be encouraged or encourage them. come back folks!!!!!!!!!!!!! Dont forget who brought us here where we are at! Thanks Dean.
TJ=yea it is funny just when you think all is lost bam you give it one more shot & you have the deal.
Tony
Go faster do more! GFDM!