Matt's 25:1 System

Hey Bryce,
I live in Charlotte and this is how I do it here. It may not be this way everywhere. But when I submit an offer, that means a signed and filled out contract. Have everything put in it , such as, "as assigns" following your name.
With the realtor I work with, I make out a check to my attorney for $500.00
in memo I put Earnest Money, then sign it, and make a copy, and she uses that COPY , for every offer. So know one has my $500.00 , I keep it until something is accepted. Now Im not sure it will work that way for everyone, but does for me.
I have never used more then $500.00 either.
Hope this helps.

Curtis Fillers
(Charlotte,NC)

Hi Curtis,

I'm guessing you just fax the contracts with your signature to your realtor, right? Are faxed contracts still considered a legal document? It doesn't make sense to me to keep coming to your realtor's office to sign contracts since you'll be making multiple offers.

Thank you!

__________________________________

Remember, no more effort is required to aim high in life, to demand abundance and prosperity,
than is required to accept misery and poverty.
-Napoleon Hill (Think and Grow Rich, 1938)

Thanks for these questions Bryce..
Have also been scratching my head on that one.
And if you don't have a fax machine, that could get expensive too !!
I think we need to find out about how to do something on the computer
for our signature...forgot what it's called, had to do it for school...
forgot !! The realtor I want to use is not close to me either, gotta figure this one out for sure.
Best wishes for a Grand day.

For instance yesterday , I faxed to her 2 POF , 2 COPIES OF A CHECK (EM) , thats it.About 20 minutes later she e-mailed me the 2 contracts and I sign them by Clicking on the computer.It is called Docu-Sign. It is so easy , just mention this to your Realtor, they should know how to do this and should be.
The crazy thing is I have never met my Realtor or stepped foot in her office.
I dont even look at the property unless its accepted. I use to, I think everyone should.But after a point ,It gets old real quick.
Hope it helps

Curtis Fillers
(Charlotte,NC)

PS Remember this is the way I do it, you may want or need to do it another way.

If you dont look at the properties,how do you know what to offer? If you have your realtor make your offers for you,what kind of percentage off of the fmv did you tell them to offer?

This is a very simple process but often over complicated. Fill out one of your agents contracts... fill out everything except the address and price. Let your agent keep this offer on a saved file in his iphone or computer. send him the addresses and prices in an email and let him simply change the addresses and prices and submit. This way there is only one exchange between you and the agent and much less paperwork on the agents side.

And Curtis is also correct, give your agent one copy of an earnest money check. It's not even needed unless the offer is submitted anyway. My agent doesn't even ask for one from me until an offer is accepted. Some say that a higher amount of earnest money makes the offer stronger... not sure if it's true but may be worth a try.

All you need in your contract for protection is the inspection clause. Too many contengencies will hurt your offer. Also if other agents ask your agent if you have even seen the property, just have you agent say that you arent worried about the cosmetics, instead the numbers have to work for you.

Hope this helps.

You need to be the one telling your agent what price to offer. This is one reason to get to know your neighborhoods. Depending on your area it can go like this... arv X .70 - rehab costs - assignment fee. I generally account for 25-30k for the rehab because thats what it usually takes me, but thats also why you have your inspection clause in there in case your numbers may have been wrong. In Southern,CA, your percentage may need to go up, but thats something you need to find out. In my area I use .65.

I couldnt have said it better myself.Like he said once you know your market and run your numbers , I generally come in way below whats needed.
Thanks Mark

Curtis Fillers
(Charlotte,NC)

Thanks for that much needed clarification Curtis amd Mark

I'm sure this will help all of those who are starting to invest in real estate. It's good to know there are like minded people out there who are willing to share their experiences with beginners like us. It takes away the fear of uncertainty. All of the comments are highly appreciated. Thanks again!

"This is a very simple process but often over complicated. Fill out one of your agents contracts... fill out everything except the address and price. Let your agent keep this offer on a saved file in his iphone or computer."

Mark, how do you handle the signature? Does your agent have a signed contract template or do you docusign or fax or?
Thanks

Curtis&Mark,
Thank you, Thank You,Very helpful info.
All The Best
Chuck

Guys and gals, when it comes to making multiple offers like this we are fishing for motivation from the sellers. We are not neccessarily trying to buy the house yet. That's the reason for making very low offers on a lot of properties. Once the seller counters then the ball is back in our court... also at this point our original offer is void because they are asking for something different then what we offered. Also this is when the due dilligence and the inspections are done.

I had it explained to me like this... we have to stop looking for the house and instead start looking for the motivated seller. When we figure out how to find the motivated sellers the flood gates open!

I hope ths makes sense.

You said you ask for 25% - 30%,if you account for that, and it seems to be alot higher on the rehab sence,and your offer is accepted.What do you do,back out of it,or move forward,noing that its more rehab than you expected?

Thank you

Curtis Fillers
(Charlotte,NC)

Wow, this all sounds so overwhelming to me. Thanks for all the great advice, though.

I promise I felt the same way.Trust me, its gets so much easier, once you step out there. You just have to do it.

Hope this helps you

Curtis Fillers
(Charlotte, NC)

Do the sellers ever question your EM Check being made out to your Lawyer? Like who is that, as it clearly would not be made out to the Seller.....
And if they accept your offer, what time frame to you have on your Offer do you say the Earnest Money would be provided?

I like this thread everyone!! I'm looking to start this system myself

Renae