Please Help - Buyers are coming in fast

You can qualify your buyers all day long. They can answer all your questions just how they should be answered. They can say they have $1,000,000 and are ready to buy today.

The only way you will ever know for sure is to get a great deal under contract and present it to them. With a non refundable earnest money clause. THEN you will KNOW you have a REAL CASH BUYER when they sign your contract and hand you the earnest money check. That is the ONLY way.

HUDs are not assignable. They can be double closed or purchased in an LLC and then you can sell ownership of the LLC.

This is what I did and still do. I work daily to build my "buyers" list. I add everyone that says they are a buyer to my list. I don't do some giant scripted pre qualification with my buyers. They can tell you all the right stuff, does not mean they will EVER buy anything. I get great deals and send them out to all my buyers.

Here is what I would do if I were you.
1. Continue building your buyers list. Add everyone that says they are a buyer.
2. Find properties to look at. You can have all the buyers in the world but it does you NO good unless you have something to sell them.
3. Learn how to properly evaluate deals. What is the ARV? What are the remodel/repair costs? What should my offer be based on the numbers?
4. Read #2 and #3 again!
5. Make offers and LEARN!

Rolando, I can tell you that I have thousands of buyers! Out of them I would say I have 25 that really have money and really invest. They will look at almost ANY property that is in a decent area that will bring them a 15% cash on cash return or $350 to $500 a month cash flow. Most buyers that have a specific area or specific criteria other than a good deal that the numbers work in a decent location DON'T really buy anyway. They have read the same books and taken the same classes and are all TALK in most cases. REAL cash buyers all want the same stuff!! They are only limited to the amount of funds they have available. MOST like entry level, first time home owner properties. The guys with all the money like more expensive houses.

Good Luck,
Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

thank you for the response. i really appreciate the help. I guess im just a lil nervous about submitting an offer and then not have a buyer. i still am unsure about what contingencies to add into the offer, and when/if it gets accepted, what option is best to close...do you think assigns or double close work best? Should i open an LLC now you think?

Thanks for making this post. You are doing and that is how you will learn and be successful in your real estate investing journal. Not only that but in helping other people you will be helping yourself. You are helping me just buy making the post and getting a great response from Michael.

I say that was a very informative and insightful response. Thank you for taking the time to communicate with Rolando and all the rest of us that have an interest in the subject matter.

I hope you have organized yourself first. Take a look at Deans book 30 days to real estate cash. Pages 48 to 114. I know thats probably not what you need to here, But its helping me because im just days away know in doing the same, also try the support tab in the upper right for quick help know. Good luck Im pulling for you.

Mike

i actually have that book and have read it 2 times already. I am very organized and even made a questionnaire for my "buyers" to fill out. i don't have any properties under contract yet, and was unsure what to do first. i was afraid to put offers in without having buyers, but i guess i need to just dive in. thanks for the support and i hope im closer to my first deal!

Esteeanna -

ur welcome for posting. I always get great responses and I love to reach out to other members for help. everyone is so helpful and usually willing to offer advice. goodluck and maybe we can share some success stories of our own real soon!

Michaels response was good, you are just starting out and you have a lot more to learn. And with your motivation you can learn it all fast. Keep building your buyers list, trust me this is the first step. Without buyers, you can't wholesale and like Michael said, without properties, you have nothing to sell. But start asking these two simple questions which will let you know how serious they are, (go back and ask your six buyers these two questions.)

1. Ask, "Will you be closing with cash and can you close in 14 days?"

2. "How many properties do you want to buy this month, and next month, and this year?"

Now you will really know how serious they are, if they are true cash buyers, and how many properties they can buy. Some buyers might only have cash for one property at a time, that limits them to only a couple deals a year. But there are some buyers who have a $1,000,000 and want 10-20 properties, THIS BUYER SHOULD BE AT THE TOP OF YOUR LIST!

This is VERY good information! Thank you for the tip. i'll go back and ask then get back to you with results. Thank you Ryan!

Remember, a buyer can tell you everything you want to hear. It does not mean he/she will ever buy anything from you. I can say I close in 2 days and have $2,000,000 dollars and what 10 properties a month.

The only way you will EVER know if a buyer is real and wants to WORK WITH YOU is to present them with a DEAL. This is why you ad buyers all the time and send ALL of them your deals.

Once you have real buyers that have proven themselves and closed deals with you then you should give them first shot.

Some people have had great luck finding a buyer and then looking specifically for properties for that buyer. When I first started I found properties and put them out to ALL my buyers. To each their own.

Bottom line. Build that buyers list while learning your product!

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

Personally I've been building a buyers list for a year. I have over 20 buyers, but just like Michael said, I don't know how serious ANY are because I haven't done any deals with any. After pre qualifying all my buyers I found out that only about 3 might be be serious buyers who want to buy a lot and Now. A year ago I didn't know anything but I started finding buyers. It took me along time to find a realtor and understand what the heck I was doing, but now I have a realtor and am building a system to put in 25 offers every two weeks. ( My goal is to put in 25 offers a week by December). There is a lot to learn and the only way you learn is by doing it. Just like Michael said, build your buyers list while learning your product. I got a little nervous about starting in Orange County CA because the market is higher than most so I started building a power team and learning the market in Counties nearby. I started finding decent deals that cash-flow double the mortgage payment. So I stuck with it and I finally have offers going in from my realtor. I have a long ways to go to becoming a successful investor but just like Michael said, "Build that buyers list while learning your product!" So Rolondo, keep writing down as much information as you can from people who call, and keep learning. Keep reading Deans books and any other Real Estate material that you have. But most importantly TAKE ACTION! You can learn everything , but without action, you will get no results.

Thanks everyone for your comments...great info! On to building my buyers list! Moving forward...

-Teresa

Hi Michael. Just wondering, what kind of spreadsheet or system do you use to input your buyers' info.?

Teresa
College Station, TX

if you're going to make offers on HUD properties, make sure they are what your buyers want, and that your buyers will come through when you need to pay; otherwise, you can easily lose your EM, because you are not allowed to put any contingencies on your offers with HUD...

wishing you success,

Institutional properties (Bank/Gov't-owned) and Individual Owned properties.
Individual-owned properties are assignable. Institutional properties are not. (HUDs, REOs, HomePaths, etc.)
Otherwise, if purchasing real property under an LLC or PLLC, you can sell the entity to an end buyer.

Thank you for all your posts. You guys are awesome. I love getting feedback like this b/c it just further motivates me. i will continue to build that buyers list. I think I just need to go out and make some offers. I have been afraid to do so without knowing what contingencies to put in the contract and if I should use a double close strategy or not. to those who have closed deals already, how do you know which one to use at what time? Or is it just a trial by error type of thing?

When you get your offer accepted, you should have everything else in place: your buyers who you want to pass the property to, your strategy as to what do you intend to do? Are you using transactional funds to double close. Are you using your buyers funds to do a dry double close?
Read Joe's threads (Indiana Joe); he talks about contingencies... you don't want to put in too many, basically one that will give you a 14 - 30 days window for inspection and if you can put inthat EM will be paid at end of inspection period...
Read Ch 8, p. 157-160 of Profit from Real,Estate Right Now.... for clauses.

awesome! I will go back to ch. 8 now. that is really all im looking for. 14-30 day window to give me time.

I think i want to use the buyers funds to do a dry double close. I don't have funds of my own at this point. kind of nervous right now. b/c i think may business partner is really doing a great job of finding properties, and don't want to fall behind. I have 2 cash buyers right now, and are ready to see what I have.

This is VERY good information! Thank you for the tip. i'll go back and ask then get back to you with results. make sure they are what your buyers want, and that your buyers will come through when you need to pay; otherwise, you can easily lose your EM.
Calgary Houses For Sale

Thanks to everyone who shared his/her thoughts on this post...

I appreciate it.

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