OfflineI have yet to do a deal, but have made offers, etc. I have been reading the 30 Days QCF thread and realized that my agent is not investor friendly at all. Although I've told him what I do, possibly not correctly, he just doesn't get it and has not really helped me at all. I've learned from this thread what to say to get a REA first of all and I have done that. I actually got one from REmax that says she has been dealling with investors for years. We have talked briefly on the phone and by email, but I have not met her yet. We will be meeting this week. I asked her to send me cash purchases from the last 90 days and she has sent a list but they are ALL sales from the last 90 days. She said each one tells whether it is cash. Okay, that's fine. She also asked some information from me and that's where I need help so that I'll say the right thing and not blow it. She wants to know my investment parameters. I had already told her I was looking for SF or duplexes that were either vacant, as is, motivated seller, etc, etc. She wants to know amount of cash for each purchase(is she asking EMD?), cash on cash returns (I assume she's speaking of rentals), rate of return, and whether I would take section 8. She also asked if I would be reselling or buying and holding. I know what I want, but don't know if what I tell her will float her boat as far as working with me. Any advice as to what exactly I should tell her? I know we need at least 30% ARV, but is that the correct wording?
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
I need to contact this agent and set up an appointment to meet her. I need some advice as to what I should tell her. See my previous post and please let me know if you have any suggestions.
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
Just tell them to send you what they think are deals that will work for an investor like yourself that buys/flips/fixes properties. Don't tell her you assign contracts, wholesale or anything other than you are a cash buyer with a lot of resources. If the agent can bring deals you will close. The agent needs to be able to find good investment properties, usually fixer uppers that a home owner will not buy.
Remember you have PM sources, HM sources and your own money! You do not use institutional lenders. That is ALL you have to tell them concerning your ability to close.
You do need a good POF letter when you make offers through an agent.
Remember also, the best deals you are going to find are when you deal directly with the motivated homeowner , no agents involved!!
You are not buy and holding are you? So tell him/her you fix/flip in any decent neighborhood and like to see a ROI of 15% or better. You base your offers on ARV and do very accurate rehab/remodel estimates to bring the ARV you determine. You can say you do have some fellow investors that are buy and hold guys and if the realtor has anything that looks like a good buy and hold you might flip it to them. That is all you need to say!
Hope that helps,
Michael Mangham
MD Home Acquisitions lLC
Knowledge is power, but execution trumps knowledge. Tony Robbins
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
As always, you nailed it! See, that's what I wanted to say!
Thank you.
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.