I downloaded Dean's book and read it. Since I'm low on cash and my debt is through the roof, I'll be running this program step by step as written. Here's what I have accomplished thus far...
1 - My Why: I never want to worry about money again and my wife said this would never go anywhere. If someone says it can't be done, I'm the first one to step up to prove that it can. I have confidence this will work if I continue to take action.
2 - My Goal: Ultimately, I want to retire on the income from 190 rental properties in the next 5 years. But to start, I will put 100% effort into achieving a wholesale or double-close deal in 30 days or less using the steps as outlined in the book. Once I have one deal under my belt, move to 3 deals, 5 deals, 8 deals, 10 deals a month. Here is an outline:
1 Year Plan -
July - 25:1 Strategy, close at least 1 deal in the next 30 days. $10,000 - $6,500 expenses - $3,000 Debt = $500 profit
August - Close at least 3 deals. $30,000 - $6,500 expenses - $10,000 Debt = $14,000 profit (running total)
September - Close at least 5 deals. $50,000 - $7,500 expenses - $10,000 Debt = $46,500 profit
October - Close at least 8 deals. $80,000 - $8,500 expenses - $10,000 Debt = $108,000 profit
November - Close at least 10 deals. $100,000 - $9,500 expense - $10,000 Debt = $188,500 Profit
December - Close at least 12 deals. $120,000 - $8,500 expenses - $10,000 Debt = $290,000 profit
January - Close at least 15 deals. $150,000 - $8,500 expenses - $20,000 Debt = $411,500 profit. Now have financing to do my own double-close deals.
February - Close at least 20 deals. $200,000 - $10,500 expenses = $189,500 profit (Purchase 4 rental properties with 20% down)
March - Close at least 20 deals. $200,000 - $10,500 expenses = $189,500 profit (Purchase 4 rental properties with 20% down)
April - Close at least 20 deals. $200,000 - $10,500 expenses = $189,500 profit (Purchase 4 rental properties with 20% down)
May - Close at least 20 deals. $200,000 - $10,500 expenses = $189,500 profit (Purchase 4 rental properties with 20% down)
June - Take a 3-week vacation with my family to anywhere in the world. Come back and keep going...
3 - I created accounts here as well as with REIClub.com and have posted comments to questions I have on both sites. I will be writing this blog on a daily basis to record my journey over the next few months.
4 - I read Dean's book for this 30-day success plan, watched all the video posts I could find here, as well as reviewed the real estate material from the 3-Day event.
5 - I watched all videos in Blueprint page 1 and completed the tasks as outlined.
6 - I will build a real estate agent list today to develop on my power team and run the 25:1 strategy on a weekly basis. I Developed a power team list using the local yellow pages and Angie's List including contractors, appraisers, inspectors, attorneys, etc. Will be locating RE offices and contacting investor friendly real estate agents using Matt Larson's script. I will then get locations in my area where the RE Agents say investors are investing.
7 - Using PropTrend software, I've located hot spots in my area where cash buyers are buying and located cash buyers' addresses and made a list to mail to as well as compare to what the RE Agents send me in step 6. I plan on developing a deep buyers list using Craig's List, "We Buy Houses" ads, and through this list.
8 - Using Google maps, I'm developing demographics in my area to show where the "hot" areas are, new developments, new business moving in, and printing them out.
9 - I'm continuing to investigate this site and contact other investors and learning from their experience.
10 - I've created an email address with Gmail, have a local phone number using MagicJack, established two LLC's for my real estate transactions, had business cards printed, as well as ordered 100 Yellow 18x24 blank Bandit Sign stock and stands to install in the "hot" areas.
11 - I'm constantly reviewing the information in the book and on this site to keep on track.
Who is Dean Graziosi?
Are People Actually Successful?
Does Dean Practice What He Preaches?
What Deals Are The Students Doing Right Now?
LOVE THE PASSION!
Question for you, what are all those deals? Wholesale? If so, what are the expenses in every deal you have?
One thing that I have seen repeated by a lot of folks, make sure you reward yourself when you do something right. example: Go out for a dinner when you close a deal.
Can't wait to see how you explode in REI!
Expenses and deals...
Good idea on the small rewards. I think when I start seeing my mountain of debt shrink and my bank account increase, it will be a huge motivating factor.
The projected deals are combinations of Assignments and Double-closes as I think these will make me the most money in the shortest time-frame with little or no money down. I may do some bird-dogging but without locking up the property with a contract I would be afraid the cash buyer could take the deal from you without much recourse.
The expenses include my salary, business expenses like gas, business cards, flyers, bandit signs, etc. As well as getting rid of bad debt that I have. Any expenses involving each deal such as Agent commissions, earnest money, etc. I plan on recouping in the deal itself.
We'll see how it goes. Wish me luck!
You have a very detailed plan
which is great as you know right on paper your goals and plans to reach them. Best wishes!
Thanks...
I've found that your chances of reaching a goal is increased by 50% or more just by writing it down. But regardless of how detailed a plan may be, if you don't put it into action, it's just a dream or a wish.
Thanks for the encouragement.
John
Any Update?
Hi John - just reading through your journal and some great stuff! Were you able to get a deal closed in July?
Wishing you good luck!
- Tom
Update...
No. My full-time job got in the way and haven't had time to write the blog as I'd like. But I'm back on track and through extensive research I decided to find cash buyers first rather than real estate agents. Rather than finding properties and then trying to find buyers, I'm doing the reverse and shopping for properties they want. This way I feel more comfortable/ethical going into a contract with buyers waiting in the wings rather than getting an inventory of properties and trying to weasel out of the deal because I wasn't able to find a buyer.
To get access to the cash buyers fast, I combined the tactics developed by Dean with some online software and resources developed by Kent Clothier at "FindCashBuyersNow.com" and "PropTrend" software. Using these tools I sent out 314 letters on Saturday and had 5 high-end cash buyers by the following Tuesday. I'm still getting calls. I now have a list of cash buyers chomping at the bit for some properties in specific local ZIP codes wanting to buy 6-15 homes a month.
Now I'm developing some investor friendly real estate agents that fall within the ZIP codes my buyers want properties. I feel like I'm doing a lot of work and I hate the idea of paying 3-6% of the sales price (as much or more profit than I may be getting) to a real estate agent just to get access to information held by the MLS and takes a few minutes to gather, but through my research there doesn't seem to be a better/faster way. If someone has a better way please let me know. Dean's book was written back in 2011 so a lot can happen in 3+ years.
Since the 25-1 strategy is looking for sellers selling as-is, vacant, etc., I'm also using Clothier's "FindMotivatedSellersNow.com" to find high-equity vacant homes in the ZIP codes my buyers want as a secondary method to using a real estate agent.
We'll see how it goes.