4 closings so far in December/ UPDATE, 2015 !!!

If any wholesaler can present a property under contract in the Northeast section of Los Angeles, I will pay double your usual fee plus $1000. The criteria is simple, SFR 2+ that's all. For those of you who are not familiar with the area, it includes the following 7 neighborhoods. Below is a link for an overview.

1. Eagle Rock
2. Glassell Park
3. Highland Park
4. Cypress Park
5. Atwater Village
6. Mount Washington
7. Montecito Heights

http://en.wikipedia.org/wiki/Northeast_Los_Angeles

Thanks for sharing the strategy your using Michael. I would be asking my agent if she has any owner occupant buyers paying cash so I can implement this strategy into my business.

Hey Micheal. I am assuming you are making offers all over your area. How much are you putting in for earnest money, if any, to get your offers accepted?
And when they are accepted, do you just shoot it away to your buyers? Thank you.

I am closing my first deal in mid-Jan, but my wholesale comes in tomorrow. Because of that deal i have added eight cash buyers on my list. This deal came from a lady who saw my flyer in a laundryment, and called me. That flyer was there since last year. That takes tooooo long. The 25-1 method mention in 30 Day Cash is better, but they need earnest money, because most of the properties here are bank owned and VA.Earnest money is $500-$1000. So i will invest some of the wholesale money i get tomorrow for my EARNEST MONEY BANK ROLL.

I don't work that area at all. But I am sure I can provide a 2/1 for you there. You did not mention any criteria but a 2/1. No % of ARV, no rehab preferences, no price point, just a 2/1. My fee is $10,000, so you will pay me $21,000 if I have a 2/1 under contract and you will buy it no matter what as long as it is a 2/1. Done deal, give me 48 hours.

First PM me and I will provide my email address. You can send me your POF. I don't take POFs from a TF lender however. Your POF will have to show liquid funds in your personal or business account.

Earnest Money will be non refundable.

Lets do it!
Michael

Just another tool for our toolbox!

Happy Holidays!
Michael

Remember, in most states earnest is not paid unless the deal is accepted. Right now I have offers out that equate to around $55,000 in earnest. Does not mean a thing unless the deal is excepted, then I have 48 hours to come up with the earnest. Usually my buyers cover that money anyway.

My earnest money varies. I try to stay in the $500 range these days but sometimes I offer what the sellers agent is asking, depends on the deal. No more that $5000 however.

Congratulations on the closing!

Michael

Im reading most of your forms sir. Its productive, informative, and inspirational. although you make it sound so easy, i will up my game. 2015 is around the corner, so i will post my deals here on dg, so maybe i can give out the same inspiration alot of the top students here.

Thank you for replying back

on what Michael said, I can provide you props too I just pm'd you. But yea 21k per deal sounds good, I am getting better at getting deals so lmk.

Michael, outstanding sir I am going to do the same & have been thinking about that actually. Thanks so much. Do you have someone call agents directly asking them for buyers, cash buyers owner occupants? I imagine you call retail agents then right, not necessearily agents who work with investors.

I was trying to figure that out & I was only calling agents who work with invstors but that makes more sense & also have the end buyer pay their comission. Thx. These have to be almost move in ready tho right? i have one now that needs 60k of work.

I think I will call this "Retail Wholesaling"

With this strategy I am offering on move in ready properties. We start at 10% under list price when we make our offers. We have gotten some decent fees and are still selling them cheaper than they were listed for.

We are contacting every "retail" agent we can find and asking if they want to be added to our buyers list. We MAKE SURE they understand that their buyers must be cash and they (the agent) must add their commission to our asking price. We also let them know their commission will show on the HUD anf they must have permission from broker.

Hope all is well my Brother!
Michael

You guys have got your systems smokin'!

Did you come to SC yet?

Karen

Good info! Just to clarify--first you are finding the property at 10% below listing price on your own or thru an agent? When you say "our properties", you mean the ones you have gotten under contract to wholesale to another investor?

Thats AWESOME Michael!!

Its great to be able to read the market like you are doing. Keep going Michael. You're machine is running very well I'd say.

Merry Christmas

No, we have not made it to SC yet. When we do, you will be the first person I contact! Hope all is well, Merry Christmas!

Michael

The -10% is what we offer through our agents on MLS listed move in ready properties. Yes "our" properties are the ones we have under contract. We are now wholesaling to cash paying owner/occupants AND investors. We offer on different types of properties for each strategy. Our move in ready properties are priced too high for investors. Our investors properties are too ugly for owner occupants.

Merry Christmas!
Michael

Thanks, you seem to be doing pretty well yourself!!

Merry Christmas,
Michael

Of course this strategy requires properties to sell! Along with the 25/1 MLS offering strategy we constantly market to unlisted motivated sellers and of course we work with other wholesalers.

We got two of those properties this week off our Craigs List searches. What is awesome about this is the fact that the seller owns 8 more rental properties that he is selling. He wants to liquidate his portfolio due to health reasons. So I should get 8 more properties as their leases expire! 10 unlisted properties from searching Craigs List!!

The 3rd property is a co-wholesale deal.

One of these properties is move-in ready. We will retail-wholesale this one. The other two are ugly and need a lot of work. We will wholesale these to our investor buyers.

This business is awesome!! Thanks Dean!
Michael

Ok awesome! you are on fire! I will replicate that here in san diego & kc mo! Merry Xmas & look forward to seeing you at the Edge! I look to do 5 more deals till then!

Got it...thanks and Merry Christmas!!

Teresa

Are these offers on the mls listed properties?
Are they still somewhat distressed properties?
Are you paying the buyers agent 3% commission on the buyers side on your offers?
And is that figured into your 10% below asking price?

Thanks
Jay C

Congrats to you Michael ;)Merry Christmas!!!

Offers are on MLS and unlisted properties.

The properties are move in ready or needing very little work. In this strategy we are looking for cash paying owner/occupants, not investors.

Agents must add their commission to my buy price. They are paid on the HUD.

The 10% is a starting point, if we can get it cheaper we do. We ALWAYS ask for at least a $3500 price reduction during inspection. Again, the agents add their commission to my buy price.

Hope all is well and Merry Christmas,
Michael

Now is a great time to get some great deals!

Merry Christmas,
Michael

Merry Christmas and a Happy New Year to you and yours!!

Michael

Going to use this strategy. Awesome.

Michael, you say you ask for a $3,500 price reduction during the inspection. This is after you have an offer accepted correct? And when you ask for the reduction, what's the reason you give to the seller? Keep up the great work!

Correct, after the contract is accepted, towards the end of the inspection period. I tell them repairs were higher than expected. ARV was lower than expected, the street is really busy etc, etc.

Michael

We tell them " add what you 'need' and sell it!!

DONE!

Happy Holidays

congrats on your December deals! Very true about the shift in marketing to owner occupants vs investors!
Thanks for sharing!

Happy New Year to you and Deb!
Val

I do the same with my Realtor acquaintances and with Brokers in my area. I usually propose a flat fee that I will pay them, but most will add their commission on top if they are bringing a buyer.

I totally feel you on the presence of homeowners paying cash for properties. I see quite alot of that type of activity happening in my region.

I have one now that is in move in condition and is a very light fixer upper that I should really be presenting to owner occupants, but I have a rehabber investor who has a serious interest in it.

It is amazing how many agents are calling me these days! Two years ago they would not give me the time of day. It is super easy to get agents on your team. Bringing sellers AND buyers!

Of course this is happening in the Denver market. There are still many areas that have a lot of distressed inventory (sellers)

That is what is so awesome about this business. Once we develop the proper skills and systems we can do it nationwide.

Michael