How To Make $100,000 Wholesaling Your First Year In Real Estate!

How To Make $100,000 Wholesaling Your First Year In Real Estate!

Hi Everyone,

I saw the thread with someone asking if is was possible to make $100k wholesaling in a year. Not only is it possible to make $100k in 12 months, I have done it in 30 days.

So I thought I would lay out how to make $100k in your first year in real estate. The concept is actually very simple if you have the correct approach and you are willing to do the work.

I have showed brand new students this technique and I have seen newbies make over $100k in their first year.

First and foremost you absolutely must have 5-10 buyers that are ready and willing to buy properties. You really don't need more than 10 buyers because you will sell some buyers more than one properties in a year.

First of all $100,000 might seem like a lot of money (its a small down payment on a Lamborghini:)) so we need to break it down. You are going to make the $100k in 12 deals (on average). SO that is assigning a contract or doing a double close where you average $8333 per deal. Thats doable. If that is a high profit margin for your area then you will need to break it up into 24 deals or $4167 per deal.

We all know it takes 25 offers to get one deal. Well there are 30 days in a month so you are going to average 1 offer a day. If you can put in a offer a day then you will get one deal a month. If you need 2 offers accepted a month at $4167 then you will need to put in 2 offers a day. Thats how simple this can be!!!

Most people make this difficult because they try to swing for the fences and make $25,000 in a deal and when nobody wants to buy their house they say "real estate won't work in my area" Don't base this on money!!! Base your results on offers and you can do this! IT'S ALL ABOUT OFFERS PEOPLE!

I put in 250 offers a week in order to do 30 - 50 deals a month. I focus on offers and everything else falls into place (because I built a buyers list first).

I get really irritated when someone emails me complaining that real estate doesn't work and I ask them "well how many offers have you put in?" and they say "well I haven't put in any". I end the conversation immediately. I can't help that person.

YOU CAN'T GET A DEAL DONE ON AN OFFER YOU NEVER PUT IN!

Go out there and stop messing around with this thing. Get serious. Stop being scared and put in offers.

Get it done!

Matt Larson

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So simple...

I thought you would have personal experience! You make it sound so simple.

Note to self:
1. Get off lazy butt!
2. Go do it!

__________________

Real estate works...


Matt

Love your directness!
Thanks for the reminder of what we all should be doing.

RENinja

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"Remember, success is a journey, not a destination.
Have faith in your ability."
Bruce Lee


JUST DO IT

We all know what it takes to do a deal we just have to stay focused.

Put in 25 offers= DEAL

Thanks for the reminder Matt

__________________

Mike C
Longdrv4u
http://ibuyhousesgastonia.com


Awesome Lesson!

thank you Matt for keeping it real, and reminding us how it's done!

how to succeed: put in 25 offers to get 1 deal! Put in 25 offers every month, get 12 deals every year! wow, that is a lot of offers!
I'm challenging myself to make 25 offers in January!

thanks for the encouragement,

Valerie

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Valerie

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Reminder

25 offers doesn't mean 25 random homes.

It means 25 homes that fit the following criteria.

Vacant
As-Is (Or any other motivational keyword)
Price Reduced

If they don't meet these three criteria, you do not make an offer!

Offer 70% of the ASKING price, not the original list price.

Once the offer is accepted, go look at the property and figure up your repair costs.

Re-negotiate your offer based on a "un-satisfactory" inspection.

Either the seller pays for the repairs or takes your lower offer based on the dollar amout of the rehab.

Get it done!

It took me a year to do my first deal guys because I didn't do what I was told, I tried to do it my own way and make $10k per deal and that is too high for my area.

As soon as I started offering the right price and charged the right price for an assignment fee, I had my second deal a month later.

Buy cheap, sell cheap, sell often.

DO WHAT THE PROS ARE TEACHING YOU!

DO NOT DEVIATE FROM WHAT WORKS!

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MATT

Thanks for your breakdown...that's how you eat an elephant!! You have done it over and over ..and you KNOW it can be done....your DOING IT!! I am LISTENING!!! action is the only missing ingredient to this post! !
Appreciate your direct wisdom.
Jay

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Opinion on Wholesaling

I never and I mean never base my offer on list or asking price. Totally e relevant for what I do. It just goes to show that there is NO "only" way to make offers and make that money! To me you can miss a lot of deals going by asking price. What if they already reduced their price to 70% of ARV. Then you offer 50% of ARV? We like to buy at CLOSE to 65% of ARV minus repairs and wholesale it to our buyers at CLOSE 70% of ARV minus repairs. If we get a deal we know we can sell AT 80% of ARV we will offer more. EVERY deal is different for us. To me ,I do not care what REOs are selling for or short sales are selling for. What I look at(and my buyers) is what the property will actually sell for after rehab/remodel and average DOM. OR what it will rent for and what the costs are to get it there. Then, what will they have to buy at to realize at least a 10% ROI or $500 a month cash flow. Then I adjust my fee based on the spread I have between my purchase price and my buyers numbers. Which I know in advance of making my offer! May not be exactly 70% or whatever.

We literally scan 300 properties every two weeks, narrow it down to 100, offer on the 35 best and get 1(maybe). We actually have averaged 2.66 deals per month so what I do must work also. So like Matt said, you have to make offers, and like I always say: NO offer, NO chance of making money! WE make a ton of offers!

Michael Mangham
MD Home Acquisitions LLC

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http://www.mdhomeacquisitionsbargainhouses.com Buyer site
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Excellent post

I'm halfway through BARM and needed that "in your face" kick. Armed with this perspective will only triple my efforts. I feel like an acorn that has found fertile soil (with this site)on my way to becoming a mighty oak tree.

Thanks,
Rick

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Rick
Rick Cooper Investments

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Matt

Thanks for showing how easy it can be. Just keep throwing out all those offers. Btw, I like the Lamborghini line. lol

Jeremy

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Thank you!

For the "kick in the shin" advice ~ some of us needed it!


Is this the formula as Matt teaches it or a variation of yours?

I am somewhat familiar with the 25:1 but I don't know that I have ever heard the entire plan spelled out in it's entirety. I don't recall the "70% of asking" part. I thought I had the perfect agent for this then she totally broke contact with me and I haven't heard a word since. So I continue the quest for the "one" or more works too. I think someone in her office probably talked some sense OUT of her.

Anyway the way I explained it was we search for keywords indicating motivated seller, plus property criteria matching that of my buyers. Then based on a figure of 50% of ARV we make our initial verbal offering, just to see who bites or counters. Then view the property and calculate repairs. If the repairs are more than 15% of ARV adjust my offer down until I am at 65% of ARV, minus repairs, minus my profit (approx. $5k). I may be missing other details as well.

Someone please tell me if I have screwed this up.

Thanks
Steve

lanemccaw wrote:
25 offers doesn't mean 25 random homes.

It means 25 homes that fit the following criteria.

Vacant
As-Is (Or any other motivational keyword)
Price Reduced

If they don't meet these three criteria, you do not make an offer!

Offer 70% of the ASKING price, not the original list price.

Once the offer is accepted, go look at the property and figure up your repair costs.

Re-negotiate your offer based on a "un-satisfactory" inspection.

Either the seller pays for the repairs or takes your lower offer based on the dollar amout of the rehab.

Get it done!

It took me a year to do my first deal guys because I didn't do what I was told, I tried to do it my own way and make $10k per deal and that is too high for my area.

As soon as I started offering the right price and charged the right price for an assignment fee, I had my second deal a month later.

Buy cheap, sell cheap, sell often.

DO WHAT THE PROS ARE TEACHING YOU!

DO NOT DEVIATE FROM WHAT WORKS!

__________________

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"Nothing can ever stop you without your permission."
"So long as you haven't quit, then you haven't lost."


Matt your so right

He hit it on the head folks, take action, make offers, I made offers on three houses on friday, And I plan to work all the way up to Xmas eve this week to make offers every day, one or two per day, I still need get two deals this month to finish the year at three, my goal, Then next year is going to be 24-36 deals or more. Just get out there and do it, Take action..........John H. And Happy Holidays to Matt L. and all the great people here at DG who take time out of there busy day to help..........Smiling

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I Wish

I had all this info when I started my REI....

you guys/gals dont realize how fortunate you are and how valueable Dean Graziosi,the DG staff and this website really is

YOU have a success path layed right out in front of you, so just FOLLOW it!!!

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Mike
https://tvallc.isrefer.com/go/RehabLite/renvestr/ Free tools


In Southern CA

Count on a ratio closer to 1:50. Smiling [Actually mine have been running closer to 1:75]. The listing RE agents out here don't present all offers like they should, so it makes it a bit different out here.

And some listing agents won't accept any offers unless you've gone to the home and looked at it. That's why in addition to making lots of offers, I network with a lot of other wholesalers and we all co wholesale one another's deals. Majority of homes for sale out here are either REOs, shortsales, or flipped in value.

Know the market you're in. What works one place, works differently in another. But, it can work anywhere.

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Matt, this is great info but...

Is this contingent upon having a willing RE Agent willing to put in all these offers with no POF? The agents I've contacted did not accept the POF letter from Coastal Funding for me. They wanted to see Coastal's POF.

Thanks for any help you can provide.

Andy Sager
DG's AndyS

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DG's AndyS
CFIC & IE member
2013, 2014, 2015 & 2016 EDGE Alumni Laughing out loud


Stay off the MLS

FSBO is where wholesaling works the best.

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Wholesaling

Dont forget everyone, you can assign any contract , if its an Owner Finance , subject to, whatever, if its a deal put it under contract , pass it along to your end buyer.So many deals go right by wholesalers because of that.

Great post Matt

Curtis Fillers
(Charlotte,NC)


well said

Way to get to the point Matt. And by the way I told you, you could borrow my Lam for the weekend. Please return ASAP Smiling
Thank you for all you do!

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John and Julie Wakefield
JCW Properties, LLC


Thanks Matt, Michael & all...

for the reiteration of "follow the path already cut!"

I love it!

To our success!

Linda

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"...be; not greedy for money....but eager to serve"
1 Peter 5:2


Scanning 300 properties

Hi Michael, If I maybe so bold as to ask you how you scan 300 properties?
I'm sure you have some terrific RE Agents working with you, How do you compensate them? How did you get them on your team when you started out? Magic words, actions? Please share if you can!

Thank You!!

__________________

"Cut not the wings of your dreams,
for they are the heartbeat and the freedom of your soul." ~ Flavia

Kathy Wholesales TX
KM WholeSale Properties LLC
469-587-9967
1888-591-1096


THANKS MATT

For the Expert Advise! I see myself in some of the things you said not to do! Kinda funny but that is how I learned what not to do rather quickly, big tire kicker !Smiling

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"Cut not the wings of your dreams,
for they are the heartbeat and the freedom of your soul." ~ Flavia

Kathy Wholesales TX
KM WholeSale Properties LLC
469-587-9967
1888-591-1096


Thank you Matt

I just love it when you speak and go thru the process. No messing around and just saying it like it is simplifies and brings clarity to the business at hand.


Kathy

In a 4 county area here in Denver there are on average 400 notices of default a week. I also have multiple agents sending me REO searches daily. We also pursue probates, FSBOs, for rents, estate sales, expired listings and check out the property leads that we get off the 15 to 20 bandit signs we put out every week.
I got the agents on my team by saying the right things and not saying what every newbie that has taken a course or read a book says. I was able to do this by talking to agents and using common sense. Presenting myself as a player before I really was one. Also I learned in ADVANCE what a real investment property is and how to evaluate the property and the neighborhood down to the street the property was on. When I talked to realtors they knew I knew what I was talking about. Then I CLOSED deals with them. I sent them listing referrals and still do. I had something to offer THEM from day one.
I also have complete MLS access even though I am not a realtor. My agents really like and trust me now.
So as you can see, scanning 150 properties a week is really no problem at all. I can really look at that many in about 6 hours. Eliminate the ones that are not a deal and spend the rest of the week making offers on the ones that will work for an investor. NOT 50% off list on a move in ready owner occupant
property!
It is all about putting your operational systems in place.

Michael Mangham
MD Home Acquisitions LLC

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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


get the 'but' out of the way!!

We HAVE to get the 'buts' out of the way. Did we not catch the line that say "$100k in 30 days" and then we still inject a but in there. That's the hiccup. There is NO but. A 'but ' is nothing more than a self justifiable excuse. Omit it. He's layed out exactly HOW it's to be done. Proven over and over again! Don't question, don't waiver, do it!

$100k in 30 days....If Matt (or anyone for that matter that's DONE it and WHERE you are striving to be) said how he did it was by wearing a red shirt on Monday, green shirt on Wednesday,etc. and make the offer standing on one foot..........THEN wear a red shirt on Monday and green shirt on Wednesday and get really good at your balancing technique! lol Just stinkin DO IT! (may be silly example but it IS that simple)

He's given direction, layed out the formula, just take the counsel and apply it....The End! Smiling

(btw: If you are uncertain of the exact 25:1 strategy and offer calculations; order and read or RE-read Days 11-15 (pgs: 73-89) of Dean's latest book "30 Days to RE Cash" it's CRYSTAL clear!)

Just sayn.......
I will dismount from my soapbox at this time! LOL Smiling

Blessings to all!
Remember God and Jen luvs ya! Smiling
tootles,
Jen


Thanks Matt !!!

Matt, any suggestions on how to make the massive amount of offers with these agents, I have lost 7 in a row when it comes time to submit the low offers I present to them.. Also on HUD props they are requesting Certified funds for earnest money, and I have no money, behind on bills now, I have been in the Success Academy for one year now, and so far did 2 deals, lost 7k,not knowing what I was doing on my first deal !! Can't seem to find an agent that wants to pull comps, submit offers, and all that this program teaches us to look for with an investor friendly agent, any thoughts, suggestions, or help of any kind would be great !!!!

Thanks for your inspiration !!

John B.

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Dean, I know this is supposed to work, and I believe it will,,, but I have been in your success academy for 4 months, and as I stand on the edge of bankruptcy, please tell me when and how, I'm doing what the program says, and getting no results, I need some help- and FAST !! Anything other than what is in the program available ?? So far no luck !!!

Sincerely, John Battaglia


Always inspired + a note to JOHN B. + POF letter - site

Matt,

Thanks again for hopping on here, keeping us inspired, and reminding us HOW SIMPLE this business is once we have the belief that NOTHING will stop us!

Thanks to everyone else that has thrown their 2 cents in on how they have made it happen. I always pick something new up on here when reading through blogs like this, and find it super helpful.

CHEERS TO EVERYONE AND THEIR SUCCESS!!

PROOF OF FUNDS LETTER (plus a source for transactional funding) ---in response to a question above ----here's a great site for Proof of Funds. I like the wording on these letters. It is sent instantly and I have made a TON of offers on MLS properties, REOs, etc... and I have NEVER had ANYONE reject this POF letter: http://www.shortsalefundingnow.com/proof-of-funds-letter

John B ----to your note above. So sorry about your pending bankruptcy. But get it out of your signature (the negative is clouding your thoughts). Every time you post and your signature posts, you are telling everyone "I'm failing, I'm a failure, and none of this works." You ARE what you tell yourself you are. Start telling yourself, THIS WORKS!! And I can't wait for my next deal to happen ----it will!! It is around the corner!! The keys are in Matt's post, Dean's books, Dean's website. Keep making offers (with or without agents). It is not overnight. It is a marathon, not a sprint. Put a motivating thought in your signature....not a defeating thought ---that will be a HUGE start. Even if you have to file bankruptcy -----wake up in the morning and KNOW you will be a success. PLENTY of millionaires have made it all back and more AFTER a bankruptcy. The difference ----they believed they could do it.

Forget HUDs for now. There are plenty of opportunities elsewhere. For the most part, if you are an investor bidding on a HUD, you better be ready to lose your earnest money (unlike other properties). Wait until you've done SEVERAL deals passing them off to your cash buyers before you put your money on the line for a HUD. So don't pay attention to those and don't get down about it because there are SOOOOOO many more properties to bid on.....on or off the MLS.

You have lost 7 offers or 7 agents??

Either way ----Go into this KNOWING you will be a success. Get the negativity out of your head. Make offers on NON-MLS properties if you don't have an agent right now. I'm looking for agent number 3. I know this works. Matt has proven that it has. I'm not blaming the system because agent number 1 and 2 either gave up, or didn't have the consistency in them. I just haven't found my rock star agent yet that will do hundreds of deals with me (not just one or two). I know I will and I have to be responsible for my own success ---no excuses. Do exactly what Matt says to find an investor-friendly agent. Fire off emails to set your serious intentions (see Dean's book). Sit down with those that respond for 20 minutes and lay out how you plan to work with them, and what you plan to close in 2012. Not "if" you close, but "when" you close. People will work with you, if they believe in you. You have to believe in yourself and represent your confidence in what you will accomplish. Set appointments with 3 or more agents that respond to your "serious goals" and interview them to see which one will work with you the best. YOU are doing the interview. YOU are finding out who is going to be LUCKY enough to work with YOU! Go in with this attitude. Not everyone will be a fit. Not everyone will get it done. If not, NEXT!! Their loss. They just missed out on a HUGE success and they don't even know it (you have to have this mindset and truly believe this ---if you don't, no one will believe in you or work with you). Just walk into your meeting and continue to say to yourself "I'm the most successful investor on the planet and people WOULD LOVE to work with me." You become what you tell yourself you are.

In the meantime, after you've made lots of calls, fired off lots of emails, and set up appointments with 3 or more agents -----start attacking those WE BUY HOUSES signs and just get on making offers like Matt says. Keep it simple. If you don't make offers, you can't do deals and it doesn't matter if you are making those offers on or off the MLS. Plenty of houses out there. Don't make excuses...just go do, do and do some more. If you have questions ----the academy is at your fingertips (lucky!!!!) so call them, let them walk you through your offers and your deals. Put them on speed dial. Use all of their experience. They are AWESOME!!!! You don't HAVE to have an agent to be a success. Don't let the agent be your excuse. Go make offers yourself. And when the right agent comes along, bonus!! You'll have even more offers out there.

I had Dean's books for over a year before I took action. This is a disciplined business. It is those who don't give up, who get out there, screw up and pick themselves back up quickly....those who do that the FASTEST reach success more quickly, so just pick yourself up and RUN again. YOU CAN DO THIS!! All the best to you.

***
Thanks again Matt for coming back here to post. These are things you don't have to do, but giving back to all of us means a lot.

Cheers, happy holidays, and all the best in 2012!
Louisa

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Matt

Thanks Matt,for the great info!

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mike


Cbrpower (Matt)

Thank you Matt for bringing up your methods once again and for remaining with all of us whether we are green or seasoned investors we can all learned a lot from each other and I am glad I saw this post it was helpful in reminding me about the 25:1 method and I decided to return to "Profit from Real Estate RIGHT NOW!" book pg 138 where your 25:1 Formula was and reread it. I am glad I did now with more seasoned eyes it makes more sense!

I've poured over that book and BARM (purchased second and down to the last 31 pages hope to finish it by tomorrow at the latest). I have also been putting in offers paying attorney fees to make sure I understand all my legal rights, liabilities, and any exit strategies I can use with the Texas real estate commission standard purchase contract (I'll have a attorney make me one later). This way if the any listing agent insists on using their contract I know how to work the deals with or without a buyers agent to my benefit.

I have also spoken to mortgage brokers and I am happy to say after going through one title company and two closing attorneys and their title companies I have found one (called me during a house walk-through ^_^) that was willing to close with every method suggested even the IEE method (oddly had trouble finding someone willing to do that one, if didn't find one was considering just simultaneous closing like in short sales *shrugs).

I have also been pouring over all kinds of books from roofing to masonry so I could get a rough idea of repair costs to the closest $5000 amount (my fudge amount always added). I wanted to be able to work on my own terms without always asking for a general contractor to estimate my costs based on their schedule (will still do it on major rehab stuff I am unsure of). I have learned a lot here with my DG family we can all do this, but you can't be lazy and don't let anyone pull you down because your green and unsure of yourself yet! You can do it just get out there learn and for goodness sake like everyone said put some offers in and be told no a few dozen times lol we all hear that word from time to time (or more lol)

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michaelmangham

michaelmangham wrote:
I never and I mean never base my offer on list or asking price. Totally e relevant for what I do. It just goes to show that there is NO "only" way to make offers and make that money! To me you can miss a lot of deals going by asking price. What if they already reduced their price to 70% of ARV. Then you offer 50% of ARV? We like to buy at CLOSE to 65% of ARV minus repairs and wholesale it to our buyers at CLOSE 70% of ARV minus repairs. If we get a deal we know we can sell AT 80% of ARV we will offer more. EVERY deal is different for us. To me ,I do not care what REOs are selling for or short sales are selling for. What I look at(and my buyers) is what the property will actually sell for after rehab/remodel and average DOM. OR what it will rent for and what the costs are to get it there. Then, what will they have to buy at to realize at least a 10% ROI or $500 a month cash flow. Then I adjust my fee based on the spread I have between my purchase price and my buyers numbers. Which I know in advance of making my offer! May not be exactly 70% or whatever.

We literally scan 300 properties every two weeks, narrow it down to 100, offer on the 35 best and get 1(maybe). We actually have averaged 2.66 deals per month so what I do must work also. So like Matt said, you have to make offers, and like I always say: NO offer, NO chance of making money! WE make a ton of offers!

Michael Mangham
MD Home Acquisitions LLC

Well Michael like Matt says on page 142 of profit from real estate right now! on his 25:1 rule first paragraph: "25-30 offers, you'll usually get one homeowner who will either accept your low offer or be willing to negotiate from that low offer" EVEN if it is 50% of ARV, its the ones that bit back that you want to pursue. The others might not have accepted a low offer either way. This doesn't mean don't double back and still consider them. This is just a method to get a deal under contract fast as they would be very motivated after 90 DOM. Their property might not even be worth that much! I've had a few I wouldn't even offer lot price for as it would cost more to demo it to sell the lot! I trust you might be finding some sweet deals, but not every house is a pot of gold, if is and they accept 30% off listing price that MIGHT be 50% of ARV WOW look at THAT! You assign that to your end buyer at 70% less repairs giving you 20% equity to play with over the normal 2-5% if your lucky! The main reason I say this is because most home owners have no idea what their ARV is or what ARV stands for. They might guess to high (I've had this ALOT).

In a down/bottom market after 90 dom I don't think they will be wanting to hold out for more unless they #1 can't because they owe to much (consider SS or lease with option to purchase on double back) #2 They are to attached to the property (If this is the case when you double back and they want more for that reason re-offer to the in another 30 days lol). This is not a bad method and you can still give them a way out with your 65% ARV less repairs then assign it to your buyers at 70% less repairs if it was to low originally. I would only do 80% of ARV less repairs (cosmetic) to a retail buyer with a FHA/conv loan or 203k with I believe the limit now is 35k in repairs (not just cosmetic) using IEE method as no cash buyer I work with would take anything with less then 30% equity for holding costs and profit it is also expected someone to also try and haggle them down in price about 5-8% off the new listing ARV if it takes the same 90 DOM some even plan on that and that is why they wont take anything less then 30% so they can also stay flexible.

Yea everyone knows you should only care about what it is selling for in the end after rehab. You are just putting your foot in the door and locked it at 30% off listing with this method THEN you work with your agent to get solid comps so you can find your ARV and work your normal method if you pull under your 65%- repairs Jawdropping! WOOT MORE PROFIT FOR YOU! if your go over it you let them know the truth the amount of repairs and profit are not matching the numbers you would like and you negotiate it to a number so you can assign it. If no, move on, meh big deal more deals out there. If you get a yes, Smiling SUPER! Now go pass it to your end buyer and move to the next deal. All because they said no to your first offer doesn't mean you can't make another offer. By the sounds of it your are already getting 35 together and pulling comps on them all...why not shoot them all an offer off the bat with 30% off listing then follow up with the ones that decline and don't counter with your normal method?? Just a thought Sticking out tongue

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Totally Agree Michael

Well thanks for sharing and reminding me what that 25:1 ratio was all about!
(thanks to JCOMMONS)

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"Cut not the wings of your dreams,
for they are the heartbeat and the freedom of your soul." ~ Flavia

Kathy Wholesales TX
KM WholeSale Properties LLC
469-587-9967
1888-591-1096


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