Quick $10,000 assignment!!

Keep up the great job wow

Michael and Mrs
You two are truly inspiring. You've followed the path and utilize all the suggestions and techniques. Helps me realize where I am falling short. Will I get to meet you at the Edge?
Gena

Hi Michael,

I've been looking into REO's a lot lately because there are some amazing deals by me, but I've had a few questions coem up in the process.

1) When you say you submit a POF: Is that a POF from a transactional funding company?

2) And the copy of the Earnest $ check: Where does that come from if you haven't presented it to your buyers yet? It sounded to me like you have an earnest money check from each cash buyer on your buyers list already. Is that right? Is that because you've already done deals with them?

3) If the point is to have the end buyer already when you put in your offer, how do you present an REO property to your buyers if you don't yet have it under contract? This is where I'm most confused. How do you know who your end buyer will be when you put in an offer and an earnest $ check in 24 hours?

4) If your only contingency is the 10 days for inspection how is that a good protection? Do you mean you don't sign the contract on your end until the 10 days is up? (Do they sign first? Or does it not matter?) So during the 10 days are you marketing to your buyers? And then you have to give the earnest $ 24 hours after you sign, but now you should have your end buyer? What if the inspection is good and there's nothing to back you up if your buyer isn't interested?

Sorry for the lengthy questions, but my wheels have been turning on this for a while.
I really appreciate the feedback.
-Allison

Angie, thanks for the kind words!

Nancy, I know you are about to do it right here in Denver! Call me if you have any questions or need any help getting started.

Gena, you are right, Dean teaches everything you need to know to get going, you just have to take action! We all fall short, just got to keep learning what works and be ready to change when something does not work anymore.
I won't be at the edge this year, I have to work! Maybe next year.

Allison, I will try to answer your questions in order

1. I use a POF letter from a Transactional funder that will back me up if the lender checks to verify my funds. He does not tell the lender it is for transactional funds. This does not mean I will close using his funds.
2.I give them a copy of one of my checks. My buyers give me a earnest money check on the contract they have with me. I have the property under contract using my POF and my copy of my earnest money check.
They do not cash this check when you submit your offer, only when you have an accepted offer that is then signed by you and then the seller. After that you have 24 to 48 hours to supply actual earnest money.
3.I always have the property under contract before I submit it to my buyers. I don't know for absolute sure that I will have a buyer that closes. This is part of the risk you must take. However I do have multiple cash buyers that take my true wholesale deals.
4.I have a signed accepted contract that I have earnest money on. I have 10 days or less to back out of the deal if I can not find a buyer and still get my earnest money back. Some banks are saying you must provide an estimate to repair what you object to and they will have the choice to do the repair or refund your earnest money and kill the deal. You must read your contract and pay close attention to the inspection period. The worst thing that can happen is you lose your earnest money. I have only turned 2 properties back to the lender. One I said the overall repair/rehab was more than we estimated the other I said the road behind the house was a lot noisier that we thought. Both times I got my earnest money back. Doing REOs is not really a 100% no money down deal all the time. It may be easier for you to work directly with motivated home owners at first.

Hope this helps!
Michael Mangham
MD Home Acquisitions LLC
The key is getting the property at the right price and having a buyer that will close on it! Get out there and start doing it, nothing is risk free, if I thought of all the bad things that COULD happen I would never do a deal!

Now that is my motivation to get moving on my first deal. I will keep moving forward.

Thanks for sharing I get on this site for that kind of inspiration

Mimsey

Great job to you and your wife for bringing all this together,this is a great inspiration to us all.Just curious on your post on the short sales, how is that working out for you?

The short sale thing is working just fine. Took us a while to hook up with the right people. We supply a lot of leads to our negotiator and most don't go through, but after 8 months we are starting to get a steady flow of checks.

Thanks,
Michael Mangham
MD Home Acquisitions LLC

For spilling out details that people NEED to know.

AFTER you know what you're doing it gets easy.

Tie your shoe 18 times and you got it.

I just hope they take the info and DO something with it!! You are never going to get anywhere in this business unless you are willing to take chances (just like in any other business!) and take what you learn to the next level.

I am mentoring several people and I have to say a couple just don't get it. They are not entrepreneurs and that is OK. The world would not turn without people that do the old 9 to 5. Tell and show them how to tie their shoes 27 times and the next day they ask how to tie their shoe!

Thanks again Mike!

Michael Mangham
MD Home Acquisitions LLC

Great deal Michael. We are happy for you. I hope you continue to have a lot of success. You are an inspiation to us all here on this DG site.
Thank you for sharing your success stories.

Steve.

that is so exciting! you always have the best deal stories that keep us fueled! thank you for sharing!

valerie

Thanks so much for all the valuable information!

And, Congratulations on your continued success!

Deb in OK

AHA! Now, here it is! Wish I had a team like this! One day I'm hoping it will happen. Congrats to you and your wife! Way to work together and kick RE butt! Are you guys going to the EDGE?

Love your posts and all the valuable tools you share with everyone!

Mike, do you have an agent take you to see the REOs? Here in CA they have the majority of lockboxes locked down with a Suprakey, which requires an agent there to open them up with their magical computerized code that is constantly changing through the day. It sucks because 72% of the market here are REOs and I would love to be able to get in them without having an agent with me because I always have my kids with me, and some of the agents just don't take someone taking 4 kids along with them seriously, and I have to work around their schedule.

I wanted to thank you for responding to my post earlier this week. I'm sorry it's taken me so long to respond but my j-o-b unfortunately takes up a lot of my time. I work 12-14 hour nights and so there's not much free time for me right now.
I see that you have a very full day each day and I'm just trying to figure out how I can fit some of that into my day. Since I work at night, I have to sleep during the day - even on my days off so that I don't throw off my schedule too much. Anytime I have something that has to be done during the day, I sacrifice sleep to do it. That's why I've been trying to figure out a way to put as much of my business on auto-pilot as possible.
I've created my own website, I have a 1-800# with all of my voicemail extensions recorded and I've set up my SFL system from Dean that includes two webpages that capture leads for me. Now I'm working on the marketing of my business by sending out postcards, ordering magnetic signs for my truck that say "We buy houses!! Any condition - Any area" w/ my 800# and my website address and I'm going to start making my bandit signs this weekend.
I know that if I keep plugging away at this, I will succeed. Thank you again for your advice and encouragement. Best wishes.

Rick

When we do something together in Colorado you WILL become part of our team. We will get your other on board sooner that later! I'll give him the MAN talk!! We won't be going to the EDGE this year, we will be working RE! Maybe next year.

No 100% HML and no lock boxes, California is tough! I have several agents that supply me with codes, they are not supposed to but they know I am discreet. I hope they don't bring Suprakey here, or I should say my agents hope not!! 4 to 6 REOs a day would wear them out.

Michael Mangham
MD Home Acquisitions LLC

We close on this one Friday the 13th at 11:00 AM. We gave the family members all the time they needed to get all of their Dad's stuff out of the house and the place cleaned up. They finished today (there was 30 years worth of his possessions in there) called the title company and set the closing date.

Today was a good day! Been trying to get 2 properties for ourselves to fix/flip since our last one closed April 1st. Got both today!
We got a short sale offer accepted by the lender today!! This one we are going to fix/flip ourselves.
Got it for $150,000, Fix up $30,000 ARV is $260,000.
Got the second one today from a Private homeowner. Paid a little more than I like, but it is a beautiful property that just needs updating.
Got it for $185,000. Remodel and add a forth bedroom downstairs $35,000. ARV is $290,000. Both of these should be ready for retail 30 to 45 days after I close on them.

Now I need at least 8 more properties for waiting buyers. Anyone in the Denver area got anything? Real live CASH buyers waiting for me to produce a real deal. A couple of these are DGers! They get next pick!

Michael Mangham
MD Home Acquisitions LLC

Thank you for posting this info. I always have to bookmark your posts because they have such good stuff in 'em. Keep up the good work!

Hi Michael,
I just wanted to say thank you for your response to my lengthy questions. Sorry I should have posted a while ago, but just wanted to say thank you. And congratulations on all of your deals. You deserve it.

Great going on locking those up!

Thanks for all the great great information. Just get out there and do it seems to be the theme. Bandit signs really work? I'm in San Diego and I've heard ordinances don't allow. Someone always takes them down or is this common part of the process.

Thanks again for all you do here at DG and all the additional great questions and comments in this thread.

I am in CA and bandit signs never stay up for more than a few minutes here (I'm at Orange and LA County borders. The only success I've had is putting up a sign and getting a thick heavy chain and padlocking a metal sign up. That one lasted about a week, then I took it down and put it back up again. But, it was at an entrance to a community with one way in and one way out within the city after having at least 50 signs removed.

This is FUNNY! I made a template of HUGE letters and got a HUGE piece of heavy wood and kept making repeat signs. I'd get the wood free at a local lumber yard as it was scrap. I'd put it out with a pickup truck and a few strong men. I made it into an upside down V sign and it was very heavy. It usually would last a WHOLE day or two! LOL But, since I made a template, redoing the sign wasn't that hard, just placing out in the median of the street was. .

These signs were used to recruit renters for one of the homes I had for rent. I never got a call on them from the city or county, they just kept getting removed. I'm sure they got a kick of all the crazy efforts I put in.

PS. I did get a great tenant off of the signs This WAS back in 2004.

Shirley, Allison and Jill,

You guys are quite welcome! I hope I have helped get your REI careers going!

Tammy,

Got my two, are you still ready, if so you are next!

Michael Mangham
MD Home Acquisitions LLC

A question about number 4 which you replied, because I was really interested in all the questions that were asked. Are you able to get your earnest money back and back out of a deal during the 10 day inspection period? How exactly does that work in your contract, or is it pretty standard with most banks?

Congratulations and thanks as always for all your responses.

Standard inspection period. Read the contract to determine if the inspection period you requested was accepted or what the sellers inspection period is. It varies.

Michael Mangham
MD Home Acquisitions LLC