Ask Dean's Coaches a Question

I hope I did not take too long to answer this.

You have a great set up for a lease option. The contracts that you needs will be the Lease and the other Contract is the Option.

You will also need to find out what the value of the property is. This is normally found through comparables from a Realtor.

You will then need to determine the repairs needed, as well as what the seller will take for the property.

Have you been working on this already? What has been happening?

Hi Nate,

It is really great to see you, Mike and Randy all posting and available on this site tonight.

Thank you for the phenomenal job that you guys do here!

Angela

Hello Coaches!

I have been on this site literally ALL day (and learning all week!) about all of the different aspects of REI, and I have a question for one of you. I see ads from other REIs saying that they may be able to let the seller stay in the home, or that they may give them cash. Is this referred to as "backflipping"? I just heard of it today, but not sure how it works. Is the cash investors giving to sellers as an incentive taken from their fee?

Thank you,
Denise

P.S. I have decided that wholesaling and some bird-dogging are right up my alley It'll be good in Vegas!!!

Getting ready to talk to my first seller. Any tips on negotiating? Is there a script somewhere?

I am focusing on FSBO's now, as my r.e. agents and I parted company. In trying to run numbers, I'm finding more and more websites missing bed/bath info and/or square footage. Comparing this info was how I learned to run comps. I have tried the tax assessors site too and will often find the same missing info or "not found" at all. Trulia and Zillow seem to list comps based on distance as the other slots are blank. Where can I find info online that I might not have tried yet? I can't calculate avg cost per square foot without each house's sq. footage and cannot compare a 2 bedroom to a 4 just because it's .5 miles away. It's taking way too much time, often with less than thorough results.

I have heard of "Backflipping". This is a marketing ploy. I tends to deal with creating a wrap around mortgage then flipping the mortgage. My oppinion is that if you are going to set up a wrap around mortgage - just keep it. You did all the work, created an option for purchasing that required little to no credit - why give this up?

Investors that allow sellers to stay in a home take on a little more risk. I have heard of a lot of people keeping sellers in the home successfully. However, I have heard the horror stories of those that keep a person in the home then have to foreclose on the home rather than evict the person.

Here is how I follow conversations with the sellers:

1) Find out about the property and the area where the property is located. This builds up report with the seller.
2) In a confused voice I ask "That...that sounds like a great [area or property]. Why...why are you selling?"
3) I then ask "If I paid you cash and closed in 7 days what is the least you would take for the property?"
4) I follow that up to find out what they owe.

The best advice I believe that I can give to you is to get another Realtor. You will want a good Realtor on you team. They can run comparables for you. Truly this is the best place to get comparables...well at least good enough to make offers on.

Understand that most Realtors are not very good. This means that you will probably call around 20 Realtors before you find a good one. A good Realtor, a really, truly good Realtor can be worth their weight in gold.

I am looking at homes for auction in SW Fl on the computer. They are starting at $10,000, $20,000, $25,000, $60,000, $100,000 and $200,000.I am reading "Your Town Your Real Estate Profits". I don't have the money for investing, but I am learning.

I own a home that I have leased with an option to buy. I got a non-refundable option consideration payment up front of $5000. I was told I could put off reporting this money to the IRS until the option is exercised even if it is a few years from now. Is this true?

Best advice is to speak with your CPA...or your RE Attorney...or your Tax Prep person.
Seek PROfessional guidance on this matter.

My cousin has become a sort of "silent 2nd partner" as of late in my real estate journey--however he recently told me that you can purchase houses for $1! Now I know there was a lot of homes that were sold for $1 years and years ago but I didn't think due to the fickle nature of the market they still existed. Does the $1 house still exist--and if so, what are the "hidden parts" involved in purchasing them? Also, do you know of any restrictions on an individual owning a house AND being on SSI? My cousin said that a person that is collecting SSI cannot own more than $2000 in total assets--if they do, they have to sell those assets before they can have their payments reinstated. Any info you could give me on that would be appreciated. BTW, I already have plans in place to nullify the issues with the SSI issue but I told my cousin I would try to find out. Thanks in advance!!

_____________________________

"Nay, in all these things we are more than conquerors through HE that loved us..."Romans 8:37

"You can be discouraged by failure - or you can learn from it. So go ahead and make mistakes. Make all you can. Because, remember that's where you will find success. On the far side". - Thomas Watson, Sr.

Hello Coaches,
I have been on this site for several years now. Great site by the way. My partner and I started learning (books,CDs etc.) in 2007 and in 2009 short sales were everywhere and we are still doing them today. We also have wholesaled and purchased a probate and resold it. We now are in the process of our first rehab.
We have students that we work with and are wanting to keep them engaged and not to give up when things don't go just right.
We want to get to the next level with consistent income to sustain our business and enjoy the fruits of our labor. We both work very hard in our business and would like to get to the point of working less in and focusing on our business. We have systems in place and all the tools. I have come to far to give up but I am at that point. Let go and let god, but god does not pay my bills!
I have grand kids that I want to spend more FUN time with and this 24/7 RE is getting to me. I feel like life is passing me by and I am missing so many things in my kids and grand kids lives. I am passionate about RE and I know that money can be made because we have done it. I am in it full time but now its to the point of finding another corporate JOB if things don't get better financially. I am desperate.
Any advice on closing deals more consistently to make the income we deserve would be Greatly appreciated.
Thank you.

There are a lot of opportunities in the real estate market. You can find them online such as you mention. I read your information and would like to know more. What is your question?

Investing in real estate without money is doable. Take it from me who worked in real estate for several years without money. I started at 17, coming from a middle class family that lived paycheck to paycheck and not having a car to get to real estate properties.

Liberty Kat gave good advice: Get a professional. I am definitely not a professional in the tax realm. In fact I have hired a professional for my own taxes since I started working at the age of 16.

Here are my thoughts. If you claim the money now you get it out of the way. If you claim it later you will most likely have placed note in your accounting books that you have an asset of $5,000 but a debt of $5,000 as well. I assume that because of how you are noting the money in the books that you can buy some time.

Again, some may read my information and say "He, does not know what he is talking about." I don't. I would ask my accountant the same question based upon what basic knowledge I know.

I agree with Kat. I noted this in another post. Often people get into this business expecting to do as much of the business on their own to either save money or time.

More often than not they save neither time nor money. It is my personal opinion that I want to get as many people doing as much of my business for me as possible. Why? So I have more freedom to look for more deals and make even more money. I also cannot risk, with my limited knowledge doing it incorrectly or allow my focus to change from what is making me the most money.

I have not heard of $1.00 houses. I am usually one who follows "if it is too good to be true it probably is." However, if you get more information on these types of houses let me know I will buy $1,000 today.

As far as the SSI here are my thoughts. People that are affraid to do real estate so that they can keep SSI will be held back because of this. The idea is to make money, a lot of money, so that you never need SSI and can live the kind of life that you want. If you do not allow yourself to make the kind of income real estate allows so that you get a check of a few hundred dollars a month is a huge weight to success.

Here is inforamtion from the Social Security Administration (http://www.socialsecurity.gov/ssi/text-resources-ussi.htm):

WHAT ARE RESOURCES?

Resources are things you own such as:
cash;
bank accounts, stocks, U.S. savings bonds;
land;
life insurance;
personal property;
vehicles;

anything else you own which could be changed to cash and used for food or shelter; and deemed resources.

WHAT ARE DEEMED RESOURCES?

Sometimes we “deem” a portion of the resources of a spouse, parent, parent’s spouse, sponsor of an alien or sponsor’s spouse as belonging to the person who files for SSI. We call this process the deeming of resources. If a child under age 18 lives with one parent, $2,000 of the parent's total countable resources does not count. If the child lives with 2 parents, $3,000 does not count. We count amounts over the parents’ limits as part of the child's $2,000 resource limit.

WHY ARE RESOURCES IMPORTANT IN THE SSI PROGRAM?

The value of your resources is one of the factors that determine whether you are eligible for SSI benefits. However, not all resources count for SSI. If the value of your resources that we count is over the allowable limit at the beginning of the month, you cannot receive SSI for that month. If you decide to sell the excess resources for what they are worth, you may receive SSI beginning the month after you sell the excess resources. You may even be able to receive benefits while you try to sell the excess resources in certain situations.

WHAT IS THE RESOURCE LIMIT?

The limit for countable resources is $2,000 for an individual and $3,000 for a couple.

Here are my thoughts of getting to the next level.
1) I would keep your business going and I would get someone else to run what you are currently doing. Pay them however you need to or you negotiate to.
2) I would look for financing options then begin purchasing properties, fixing them and renting them.
3) I would find a bank that would do no-seasoned refinances for you. This way you can pay off the money that you have used and do it over, and over, and over again.

Truly, if you are looking for Freedom you need cash flow. This will allow you to make money no matter what you are doing. You are then able to capture the profits monthly, the increase in appreciation and the depreciations during tax time. Rentals truly are a money making option.

Hi Deb,

Hi Deb,

After reading your post on vacant land, I felt you may be able to give me some advice.

I found over 6 acres of vacant land for 150K in Southern California. It's a 2 hour drive from where I live and a different county. Land around there is undeveloped. My partner who's also a broker said homes in that area are selling for a million dollars. I believe it's important to get my due diligence done before I present this deal to a developer or investor. If you have any suggestions on how I can best get the questions below answered, I'd appreciate it. It's on an REO List. Thank you,Greg

1) What is the land zoned for?

2) Is the land developed or undeveloped?

3) Has there been any surveys or soil reports?

4) Can the lot be subdivided?

5) What is the allocation per lot?

6) How many houses per acre acre are allowed?

7) What are the utility hook up fees for the property? (sewer, water meter, gas, plumbing, electric etc.)

Is the lot accessible by paved road?

9) How close is the lot to the nearest utility, house, paved road?

10) There could be additional costs to get plan approved, entitlement to make a road, subdivision.

Real Work,

You mentioned Deb in your initial post. There is not a coach named Deb. Maybe if you can do a reply right to her that would be beneficial.

You asked for advice on the vacant land so I will give some even though you asked for Deb.

The questions you ask are fantastic.

I would suggest adding a little more due diligence. I would call your zoning and planning department and ask them where building permits are being sought the most. Not only this: I would ask about the statistics of building permits. How many were sought last month? How many the month before and so on?

I would also contact the local chamber of commerce and ask about any news that would pertain to you and the potential lot. The chamber will often know of large companies moving in or out that are near this plot of land. This will help you get a very good gauge of the potential value of the land.

Contacting developers to see if they will share profits with you is a great idea as well. Often, if you purchase the land the developers will develop then split profits with you after sale of each phase. A potential opportunity if you do not have the money to develope.

to top...

I just came out of Boots of the Ground with Greg Harmon, and I am interested in doing double closing deals.

But I am absolutely new when it comes to real estate; I have yet to rent or buy a home, have yet to have a job, and have yet to understand even simple RE terms such as "equity". I just came out of high school...and I have Asperger's.

Could you explain what is need and what needs to be done in double closings, such as what personnel is needed, and lay the explanation out step-by-step? As to reiterate, I am very new in Real Estate, and have yet to figure out the process that comes in buying or selling a home. I need to come up with at least 10k by the end of July to deal with personal matters, and I am very eager to start investing right away, if I knew exactly how.

The Boots on the Ground event should give you a base of what is to be done.
Here is a step by step that I present when I teach Boots Events:
1) Find buyers
2) Find properties / Realtor
3) Grade the properties to determine motivation.
4) Walk through the highest motivated properties
5) Determine the rehab costs (Lowes)
6) Calculate the Offer
7) Make the offer
OFFER ACCEPTANCE
Contact your buyers from #1 to determine interest.
9) Get a contract from the buyer
10) Contact a Title Company / Closing attorney to set closing.
11) Contact transactional funding company
12) Close
13) Close again

Do all Banks have seasoning requirements, or has that changed now? How can we find out before making offers, whether there is seasoning, to be able to sell to another buyer without having to wait 90 days, using transactional funding?

Here is an answer to your question:

http://www.deangraziosi.com/real-estate-forums/financing-and-credit/1436...

In a simple answer: If you work with a local bank chances are they make up their own requirements on seasoning. If you work with a larger bank chances are they will require larger amounts of seasoning.

Hello,

I just purchased the 30 days to real estate cash and I came to the end of the first chapter and was completing the homework assignment, but couldn't find the information to view for step #5. My question is where do I find this video of Matt and Dean about blueprint #1? I went back through the information and items sent to me with the book, and there wasn't a blue print there. Am I missing something?

Thank you very much for all your help

Hi I am just starting out as well and want to do assignments and/birddogging. My question is what shall I do to get started? I'm going to post my ads this monday to search for buyers..but I would like to know if I should wait until I know how to calculate things first? I'm not sure...I have some informational CD's to listen to this weekend..but just wanted to make sure that I'm approaching this appropriately.

Here are my thoughts:

1)post ads for buyers and possible sellers
2)screen them to see who is serious and if the buyers will be willing to purchase immediately (hence serious buyers)
3) make sure that the sellers are serious
4) get the contractual agreement done where it works for both parties
5)try to get the property assigned and done with.

I know there are more steps needed to this..but I just don't know them yet. I am learning on my own and with a mentor...but extra advice never hurts!

Ps: I'm wanting to do birddoging and/assignments to get my feet wet and to earn some income, however, I want to work my way up to investing...but I really want to take my time in that area...My desire is to purchase at least 2 properties that I can rent out for starters (short term goal). Then maybe work on some flips/rehabs ...or short sales...but I mean...I don't want to hold properties until I become better in this field. Please advise on how to get a firm start and what is the best option for me when it comes to birddoging and /assignments. Thank you!

Take care and stay blessed!

I'm brand new. I think this website is awesome. Thank you for starting this particular thread.

I need to protect some assets so I will be getting an LLC here in Texas. I want to be able to wholesale real estate in all of the states so I wanted to know if I'd need to get just one LLC in my state or an LLC in each state where I'm wanting to wholesale real estate. Can any of the coaches or members who are attorneys advise me on this?

Any help would be appreciated.

Thanks,
Jason

Hey where is the coach? I have checked back every now and then..and haven't seen an answer yet. Anywho- when ever you get the chance please look above and see my question. Thank you and stay blessed!

HI... I have a question for you all, not just the coaches.

See, I'm one of the failures. I enrolled in the real estate academy, and gave it a sincere, all out, effort, and earned nothing. I did not have a single offer -out of 50+ before I ran out of money and time, - accepted. I haven't even been able to finish paying for the academy, as a matter of fact. There have been some other bumps in my road that have left me facing no other choice but to file bankruptcy and try to start over.

TO that end, I am back, and I am looking into scraping up my few pennies left and getting my California Real Estate Agents License.

Now here is my question.
Would any of you be even remotely interested in having a Real Estate salesperson who is more than willing to help you, won't tell you "That's illegal/impossible/can't be done," , has some familiarity with Dean's system and the 25/1 process, and wants to make honest and real money with you?

Yes, I am currently looking into taking the required classes for the California Real Estate salesperson test, and getting my license. I am recycling aluminum cans to get the money together for this, (donations happily accepted as well!) - and want to know that there is someone out there who would be interested in working with me.
I have heard so many stories of folks who went out to find a RE agent, only to have the REA's say "Can't be done, that's illegal" or some other balderdash, and I figure that it's a niche that needs to be filled.
So, thoughts?