OfflineI will have to "be the asset" as I'm starting from less than nothing financially.
Have been reading and roaming around here ever since a reference by Greg Habstritt sent me investigating. Watched through almost the entire RBBP webcast; did have to shut down for a massive thunderstorm!
Aside from being 56, with no financial float, a pile of medical bills from a car wreck and an unpaid vehicle, caretaking elderly mom on SS, and a part-time college teaching assistant job which may or may not be in the budget for Fall semester ... I guess I'm in a pretty good position to do this!
Looking at my plus column:
Just finished Associates' Degree in Advertising & Graphic Design, highest honors, Phi Theta Kappa. Doesn't seem to do much toward "a job" yet, but didn't really want one anyway.
Have gotten good at living on almost nothing, recycling, trading, etc. from years of being a not-quite-starving artist/weaver/designer --- practical, flexible, creative.
Have lived and traveled many places, so very adaptable to people, situations, and change in general.
Have taken NC Rural Entrepreneurship certificate program and maintained connections with SBDC people in 2 counties here in WNC.
Brother in Charleson, SC, area does some high-end historical home renovations and rehabs along with his protoyping and museum displays, so I can probably interest him in working on properties with me there and work with some of his connections once I prove myself locally.
I have cleaned and repaired many rental houses, and worked with a couple of investors on refinishing furniture and home staging my year in SC.
Have started making a list of those and other potentially useful connections where I used to live in the San Antonio and Santa Fe areas.
BTW, what is the difference between a Journal and a Blog on DG? Journal being more individual record and blog being more professional suggestions once one gets to that stage?
Had a full day today with eldercare and errands plus hanging my solo art show at the college. Definitely summer out on the asphalt! Back to back jobs booked tomorrow for the first time in weeks.
Not much time to read or research; kept passing For Sale signs on the highway wishing I had time to go explore.
So, have been using my evening walks around the monster RV sales and campground nearby to work on the major poverty mindset I got from my mother. Keep realizing that I'm so used to living under poverty level that it seems really farfetched to be able to make $5K on one deal; some years that's practically been my entire annual income! So, walking around the RV lot, I'm thinking about all the people out there who are able buy all these $9-$200K units, and I've been watching how fast they get the sold signs, disappear, and get replaced. Even the used golf-carts for sale here and there run around $5K. Helps me put things in perspective and get out of my own limited frame of reference.
Worked all day, 2 different jobs, part of the on again, off again, patchwork that's been barely keeping me afloat. Had several interactions with one of the guests at the eco-resort, discussing our dogs and having similar art backgrounds, gave her some info on a homeopathic remedy, and so on. She asked about getting my brochure after seeing some of my artwork and weavings which have been reproduced as blank cards in a display in the office. When I mentioned it to the owner later, he told me that she's been staying there for almost 2 months, is an heiress of sorts, and normally hangs around with certain well known socialites and celebrity types at home in California. Another reminder that you never know whose path you will cross in any situation, and that every connection may lead to something else...
After getting my lightning-fried printer back up, I now have downloaded and printed the PDF from RB Blueprint Vid 2 along with The Dean's List. Between those and all the bits and pieces I pick up in my necessarily limited visits to this community, my head is buzzing. Have also been checking out news stories today about stock market drops and mortgage rates going down again. Don't think I've gotten to sleep before 3 AM any night in the past week with writing things out, reorganizing my home office space, and considering all this information overload...
Just saved Jeff Jensen's list of 85 ways to find investors plus a paragraph about attending RE auctions to meet people.
Thinking about ways to use or trade skills learned in college --- research, logo design, copywriting --- for myself and for people I might network with; tend to do everything for free for everyone else and then always be struggling to stay afloat myself.
Need to remember to put my own oxygen mask on first.
Finally got a couple half-days of work, took care of my mom's list, put 3/4 tank of gas in the car, and ordered the Be a Real Estate Millionaire & Profit from Real Estate Right Now package. Considered the current Edge offer, but decided I'm pretty much on electronic overload already and will be even more so shortly IF my college job clears the budget hurdles next week; will do better reading and rereading bits and pieces and being able to underline, make notes, and look things up.
Waiting for books, trying to keep juggling to stay afloat, and working on assimilating bits and pieces of all this RE info meanwhile. Decided to go back to the beginning of Dean's vid blogs and gradually work my way up to the current ones, making notes on anything I might want to go back to or be able to use now.
Notes to self on video #1:
Assignment: Go on "news diet" this week.
Find "hungry" RE agent willing to work.
Tell them "I want to make offers on 25 houses."
Ask about price range for houses selling best and what
areas they are in within within 15 - 20 miles of here.
Ask RE agent to find 25 houses fitting that description with 90
DOM or more, and then make verbal or email offers on each one at
25-50% off the asking price and see what happens.
Fair enough --- to begin with, I don't usually do TV or news anyway unless I'm looking for something in particular because I agree that it mostly brings you down. I'm holding off on talking with local RE agents until I get the books and find out more out about what to look for, or what to look out for, since I'm in a relatively rural area with fewer agents and everybody knows everybody else (if they're not outright family). However, I have started making notes and lists regarding potential agents, investors, property managers, and so on.
Discussing "childlike enthusiasm" for learning and problem-solving vs. getting worn down by life and/or other people's opinions. Change may be difficult, but worth it to keep on until you succeed. Stop wasting time yourself, and don't waste time trying to convince other people, working with the wrong realtor, etc. Consider the source.
Also watched the Joe Polish interview video (bonus for buying books) with Richard Branson. Found myself thinking of some specific ways to give back or contribute to the larger community beyond the ways that I usually volunteer and donate.
Got the email link to the PDF for the first 3 chapters of the book and read them straight through after work, with pauses to watch the videos. 1 AM again; going to sleep on it.
Sounds like the college job is going to be good for at least another semester, so I'm planning to scout around the next county coming and going to work --- seems to be more happening in that area as far as housing turnover and new job creation.
Getting the J.O.B. back for fall, upgraded a level, with additional hours. Have been on DG several times today, even with 72-mile round-trip commute, list of errands, and eldercare. Will have to schedule in reading and research and make use of trips across 2 counties to check out homes along the way. Busyness!
They're already discussing moving me into a part-time adjunct position for 2012, though, which would mean double the pay and potentially fewer hours --- more freedom!
Reread chapters 1-3 while waiting on books to arrive.
Staff work day tomorrow, so I can't do my usual up 'til 2 AM thing; about to shut down for tonight. Have been on and off the site all day in-between work and school projects. Watched a few more videos; read forum posts until my head was spinning. Looked through 2 local papers; have been reading RE ads ever since I moved here anyway, hoping to find a place I could manage. Seems to me like fewer ads with asking prices inching back up overall; however, I see more FSBO and RE signs driving around, so I'm thinking a lot of them may have just decided the newspaper ads aren't producing results. Clipped a couple ads to do drive-bys on the commute to/from college, and added some RE names and numbers to a Word.doc listing I had started.
Sounds like you are off to a good start! Just keep up the reading, reading, reading. I cannot say that enough. There is so much to learn but it is so much fun!
You definitely will have overload and when that happens and you are just feeling overwhelmed, take a couple of days off and just go zen...
Then you will be ready to jump on it again.
Good luck! Go get 'em!
Karen
"You're never too old to be what you were meant to be!"
www.deangraziosi.com/real-estate-forums/investing-journals/59128/day-for...
"Shining Like a Star & Dancing on Sunshine"
"Shoot for the moon! Even if you fall short, you'll still land among the stars!"
Yay --- Just got my books!
Boo --- Headed out the door to work!
OK; I have to admit to multi-tasking, rather than single-tasking, through most of this book bonus audio. However, I was working on clearing workspace and organizing project piles in the dining room office so that I don't feel totally overwhelmed before I even get started --- better Feng Shui, to be Santa Fe about it. Also, I just got my DG books, and I've played the video that came with that, looked through the intro package, and made a game plan for what to read in which order (going with chronological, because even though the new stuff may be most current, latest and greatest, figure I need to work my way into it with no serious RE background). But I'm not allowing myself to go there yet because I know I won't get to what I absolutely have to accomplish this weekend in time for college/work on Monday.
At any rate, that leads into what I found most enticing about this 4 hour work week discussion: freeing up time. With a fluctuating patchwork of part-time jobs and art commissions, college classes, eldercare, and a 1 1/2 hour round-trip commute, my idea of a good time has become sleep. On the flip side, they also discussed retirement and boredom, neither of which I ever expect to face; I don't understand people who have time to be bored. Even if I were suddenly unencumbered by jobs and/or financial problems, I would still have to live to be 300 to get everything done --- maybe. So, meanwhile, back to clearing out, reorganizing, and finishing up projects so that I can move on without total overload. However, while I'm working on my To Do list, I'm definitely giving some thought to that Not To Do list!
While running errands today, assisted local animal shelter ladies with packing down a benefit yard sale, and picked up a flyer for RE buyer's agent who's advertising residential and commercial/investment services and is working with the group to find a location for new animal shelter.
In between Algebra and college syllabus setup for tomorrow morning, but took time out to check in and watch the next up plus the latest vid blogs. Would definitely be open to partnering with someone (Blog #144), but haven't found any DG people in this area yet. Also, just got my books, so feel like it's too early for me to bring much to the table. I do have a couple of people in mind, but need to find out more about how a partner set-up would work. First thoughts on renaming the video blogs would be REOpportunities or REInspirations, since these are laced with specific suggestions, but the common theme so far seems to be keeping the fires lit.
Video Blog #3 opened with a similar theme --- dispelling negativity and sharing successes. Then Dean builds on the first two videos' base of finding an agent and making offers. He suggests actually going to look at the properties when it's narrowed down to some possibilities --- "walking on the porch" --- to really make the connection.
No problem; I've been looking at properties for years. The problem is I most of them, and I can see the potentials and the fast fixes right off. People are usually amazed at how quickly I can turn a rental house around working with little or nothing; a lot of times it's more a matter of cleaning up, clearing out, and removing (old carpet, tacky "improvements," an interior wall, whatever) and giving it some curb appeal.
He discusses getting a purchase agreement with Your Name and/or Assignee and arranging an escrow payment (1% - $1K max.)to be made in 30 days for "due diligence," and then "working your butt off" to do what needs to be done and find a buyer. I think when I get to the point where I've got my first property locked up, I probably won't sleep until it's sold!
Short on time and sleep right now, but it should settle out after we get things reorganized for this semester.
Still managed to catch up on the threads I'm following here, respond to some private messages, and watched the video for Your Town, Your RE Profits.
Short version of my notes:
1)Google REI -clubs or groups - your town or county.
GO.
Listen - especially to the people who stand up and ask for something specific. Introduce yourself to each one; find out what they are looking for; get contact information (remember, they have cash to invest, probably not time).
2) Local Auctions - Foreclosure, Bank, etc. --- same as above.
3) Talk to REI Professionals - Attorneys, Property Mgrs, Agents, Mortgage Brokers, etc. Ask questions; get contacts.
4) my note to self: If suggested script/questions not in the books, write one out and practice the questions until they seem natural. Also, rather than trying to talk with someone and make copious notes, create a contact checksheet to carry around as a reminder for the pertinent questions and a way to quickly record the responses.
5) not mentioned on this video - probably best to have business card of some kind ready before going.
Since I'm full-time at college at the moment, plus hanging a solo art show, the eldercare, and drive time, I decided to keep myself going by doing my version of the "chicken entrepreneur" thing until I can get more RE study time in.
So, rather than getting ahead of myself by posting ads or talking to local RE people (small town, limited options, everybody knows everybody) right away, I decided I would look at this as a building from a solid base project and start at the bottom of the pyramid.
I was already beginning to collect info, flyers, cards, for local RE agents, attorneys, auctions, etc., and organize computer listings for them so I'll have a database ready to draw on.
However, right now I am just popping in to one small business or another, or stiking up conversations with people around me, and telling them that I'm working with an investment group that's considering this area and providing information for services which will be needed. So --- talking with property managers, electrical and plumbing repair groups, roofers, landscapers, architectural salvage, whatever, and collecting business cards, making notes, asking for local information and contacts. It's something I can do in bite-sized pieces while running errands or on the job; the people are friendly and eager to be informative; I'm not intimidated at all, and it is making me really think through issues which might arise later. Baby steps...
As I get time around all my current responsibilities and deadlines, I'm putting together a filing system with the contact info and any notes on each contact; I think this will save me time down the road, and having all this information will make me more of a resource person to potential end-buyers as well.
Another crazy catch-up and deadlines day at the college; have to finish hanging art show over the weekend in preparation for VIP trustees group coming through on Monday and college putting out press blitz.
But, checked in long enough to get caught up here, and saw Sarah Mary's journal entry about finding herself an RE agent and getting a huge batch of listings. Think I'm about as excited for her as I would be if it were my own progress report!
Have to keep at it on my art show all weekend, but have been checking in with friends and family.
We moved here to get my mom out of the hurricane evacuation zone in SC because it was so stressful for my brother to try and get his house and business all battened down, collect kids, pets, supplies, whatever, caravan 45 minutes up the coast, start all over with mom and her cats, and end up marooned on the highway somewhere with thousands of other people. I don't miss it; I sure feel for anyone who is dealing with it. So far, so good around Charleston. Too early to have heard back from friends on NC and VA coast or NY area.
We'll all have to deal with the fallout, and now that I'm studying it, I have to wonder how something like this will affect RE investing long-term aside from damage to individual homes and insurance companies so stretched.
Also thinking about my notes on giving back : http://www.deangraziosi.com/real-estate-forums/everything-else/88566/giv...
Always amazed at how much stuff people leave in houses, especially foreclosures. There's often a lot of trash, but usable items as well. Have watched people dumpster perfectly good items without a second thought. I always clean things up and donate them to a thrift shop if I can't find them a good home myself. I know it takes up time and effort, but I won't put anything someone else might need in a landfill, and there are We Buy Junk services as well as We Buy Houses. Thinking disaster survivors, thrift shops, and shelters could constructively recycle these items back out into the communities, and the home buyer could probably take a tax write-off in addition to the satisfaction of helping someone who has lost everything.
Have been on-site a couple of times a day reading whenever I can; back to school kicked in, and the college suddenly decided to shift some of my hours from Teaching Assistant to Adjunct Instructor, which required a lot of administrative hoohah and personal reorganization.
Anyway, since I'm looping around trying to follow so many threads, I decided to bookmark fewer threads and keep track of individual posts that I want to refer back to later.
Part of my focus has been trying to get a handle on how to defuse potential problems or objections getting started. Michael in 30 Days said his RE agent thought it was too much work making offers, and got this response, which I love for its straightforward simplicity and cooperative attitude:
Chip & Andrea Weule
AC Investment Group, Inc.
"...First sit down with your agent and go through a contract once. Show them that you are interested in their knowledge as a Realtor. Then once you have their contract - add in your contingencies. ie Inspection Clause and Partner's Approval. Review the contract now....
Okay, so then say "let's make a template out of this."
1. Remove the Seller's name
2. Remove the address
3. Remove the puchase price
4. Remove the dates
Okay now you've got a template so for each property you want to offer on they have to enter in those 4 items. If they are set up with eSignature you can sign online.
Now the only thing you need to give them is a earnest money check. Leave the "to" line blank to put the title company's name in and the "memo" line blank to put the address. Make lots of copies and now they just need to fill this out for each offer.
Finally, proof of funds. Visit insiderscash.com or coastal-funding.com print out multiple copies for varying $ amounts. Give these to your agent to match up with each offer.
Now what do they do...
1. Keep sending you listings (5-10 minutes a day or a week based on how fast you want to go)
2. Fill out the contract template based on your offer, your proff of funds, and your earnest money check copy (5-10 minutes per offer)
How much time is that...not to shabby!
Best of luck. Get out there an make those "agressive offers."
Signed up for Carol's national Wholesale Team yesterday, too; don't know that anything will come up for WNC, but it seems like it would be a great way to help out and get started. I figured I didn't have enough training to be useful yet, but after going to her website and reading the description, I'm probably actually "overqualified." Sure it would be a learning experience and some good connections either way, so I'll keep my fingers crossed and keep on studying and collecting information meanwhile.
Also just checked out the link for new HUD REO portal and took a look at this area. Not sure what the FNC tracts are all about; more to learn...
This is another post I'm going to need. I have been "conversing" with Erik a bit and following his posts. I know this is going to be one of my most likely hurdles here --- WNC can be very traditional --- and one of the personal fears I'll have to get past. So, from just_plan_E:
"What If I Don't Have The Deposit $$$ ??? (musselman)
The best way it was explained to me was with a question "Why make a deposit on a house that you haven't even inspected?" This is how you get your free inspection period. To buy time to find an End-Buyer.
Can't find a buyer? Then you couldn't get a buyer approved inspection,right?
No buyer. No buyer approved inspection. No buyer approved inspection. No deposit. No Deposit... and you didn't even have to write a $3000 post-dated check that you can't cover.
This part had me confused for a long time too. Its a little tricky.
I think Agents and Banks use the Deposit as a scare-tactic to fend off buyers who aren't "serious" aka Broke Wholesalers Like Us . So avoid the banks/REO's if you're broke and find an agent that will work with you even though you're broke. (There's broke RE agents out there!) Chances are, the banks have offers from "real" cash buyers on the same property and won't consider your offer with your free Transactional Funding POF Letter anyway. Stick to the private seller listed properties and FSBO's.
How To Make An Offer With A Deposit You Don't Have:
1. Make your offer with EM Deposit due at Buyers approved inspection.
2. Get the longest Inspection Period that the Seller will agree to. (Buys you more time to find an End-Buyer.)
3. NEVER give your Deposit to the Seller. Give them a photocopy of the check and give the check to your escrow co. or RE attorney. Then tell the Seller that your attorney is holding the check. It doesn't matter that you don't have the money in your bank account to cover the amount of the check because it says in the contract that the deposit isn't DUE to the Seller yet, so nobody should be trying to cash that check anyway.
4. Find your end-buyer and get them to deliver a deposit check to your attorney.
5. Open the escrow and put in both your EMD check and your end-buyers EMD check. The purpose of the escrow account is to make sure that everybody who is supposed to put money into the deal ACTUALLY puts the money IN before anybody can get paid OUT. Your end-buyers check covers your check. No money ever comes out of your bank account.
6. Close escrow.
7. Get PAID!
It really doesn't matter when the EM Deposit is due because the Seller doesn't get the money until close of escrow. Your Deposit goes toward the Purchase Price so there is no chance of the Seller taking it from you as long as you write a contingency or two into your offer so you can back out of the deal.
I'm not a lawyer and this is not legal advice. Ask a lawyer about this."
This also tells me to concentrate on FSBOs to begin with, which is a starting point, since there are so many games and angles going on out there, it's rather dizzying to begin with, and finding a field of focus seems necessary.
Started on the free website design. Currently have only emergency cellphone with limited minutes and generic personal email, so did not get as far as contact info (much less properties!) yet. But I do remember a thread I'll have to backtrack on as far as creating something more professional for those through Google, and I thought I should get started now and get familiar with customizing the pages, so it will not be a last minute crunch when I start putting the bigger pieces together!
Sounds like you are moving ahead. I need to find out about free website design
... Here's the information on the website and some links to a variety of free business card and sign graphics from another generous DG member:
http://www.deangraziosi.com/real-estate-forums/everything-else/90296/dea...
I'll post it in your Guestbook also, to make sure you see it.
Best of Luck,
Jennifer E
Right now, I'm thinking I will have to start with bird-dogging, assignments, or possibly lease options. But I was following Dean's post on finding "secret" foreclosures, now often referrred to as shadow inventory. He was explaining having found unlisted foreclosures by using Bing and Google Earth to find homes with drained pools and overgrown yards and then researching them.
This was also contributed, and I think it may be a good reference list:
On 3:11am, December 1st, 2009 dallinn said:
"7 tips for buying foreclosures found on Money.com
NEW YORK (CNNMoney.com) -- Foreclosures are dominating the housing market. Right now, there are 1.5 million such homes for sale, and more are expected to be available soon. That provides both opportunities and pitfalls for bargain hunters.
Just because prices are low doesn't mean you should make snap decisions or buy something that isn't right. Here are 7 tips for making sure you don't get taken for a ride.
1. Don't get caught up in a feeding frenzy
"Everybody and their grandmas are trying to buy foreclosures," said Glenn Kelman, CEO of Redfin, an online, discount broker. But that doesn't mean you should lose your head.
Banks put repossessed homes back on the market at cut-rate prices because quick sales help avoid the expense of upkeep, such as property taxes, insurance, heat and electricity.
Those lowball prices represent golden opportunities, but they also attract dozens of buyers who may bid until homes are no longer bargains.
Don't get caught up in a bidding war. Instead, carefully calculate what you want to spend and do not exceed that price.
2. Contact lenders directly
Smart buyers establish relations with asset managers at banks. This may reward them with inside information or first crack at new foreclosures hitting the market.
In the case of a short sale, for example, it can give the inside edge. If a buyer is pursuing a short sale -- buying a home for less than what the current owner owes on the mortgage -- she should talk directly to the property's asset manager. That way, if the short sale falls through and the bank repossesses the house, the asset manager knows she is still interested. It could lead to a quick sale without other bidders.
3. Get pre-approved from the lender you want to buy from
If you're trying to buy a property from, say Bank of America, it can help to get a pre-approved mortgage from Bank of America. Doing so may cause lenders to look more favorably on your bid if it's similar to others.
Plus, you're not locked in if other lenders offer you better terms. You can always change your mind and get your mortgage from another source.
4. Consider fix-ups
Most REOs, the industry term for bank owned properties, are sold as is. "The conventional wisdom is that banks will do nothing to the houses before the sale," said Kelman.
That can be problematic today because so many foreclosed homes are in less-than-mint conditions. Often, the former owners were struggling to pay their bills and may have neglected routine maintenance. Or, they may have trashed the properties before leaving
In 25% of cases, homebuyers persuade lenders to fix some of the problems before the sale closes. Most of the time, banks would rather sell the house to the next available bidder -- one who doesn't ask the bank to pay for repairs.
So be willing to consider a home that needs some work -- but budget accordingly.
5. Hire a real estate attorney
Once banks agree to sales, they often want to move fast and load contracts up with legal mumbo jumbo. As a result, buyers often do not have the time or expertise to figure all the angles.
The solution is to hire a real estate attorney -- even in states where home sales are usually completed without one. Considering you're making a six-figure investment, the legal fees are cheap insurance against the risks.
6. Wait to make an offer
Homebuyers may be well served to wait before making an offer. Let the house sit on the market for a few days, giving others a chance to set the bidding tone. Then jump in.
"Talk to the agent selling the property," said Kelman. "The agent may tip his hand. Call up and ask, 'Should I make an offer? What should I come in at?'"
The agent may tell you he has offers at, say $300,000 and you should bid a bit higher, giving you an advantage over earlier bidders.
7. Tour properties with contractors
With so many REOs in seriously deficient shape, it's essential to go over every inch with someone who can spot problems and tell you how much it will cost to remedy them.
A foundation crack can be a minor problem or a deal breaker, and most ordinary homebuyers have no way of telling the difference. Like an attorney, a contractor can be very worthwhile insurance."
For website info and also the the above posting. Where dco you teach? I havfen'e had any luck getting an adjunct teaching position. Guess I will have to work hard on this program and make it pay.
You are welcome.
I started out taking classes in Advertising & Graphic design when I had to relocate to W NC to take care of my mom; needed to start over somehow, learn a completely new market from the one I was used to in Santa Fe, and begin making connections here. I graduated in December, but had been asked to work as the graphics computer lab assistant while I was still in the program, which was continued. This semester, I was supposed to be moved up a level to Teaching Assistant since I now have my degree and have been working beyond my job description anyway. That got scotched last minute due to pay freezes, since they considered it too close to what I was already doing. So the Dean and the Dept. Head arranged to go ahead and move me into an Adjunct position which was already under consideration for Spring.
Short version of this long answer, I studied, put it into action, overdelivered whenever I could, and they made a job for me.
I love my boss, most of "my" students, being able to teach and continuing to learn myself, etc. I do not love being at the mercy of state and federal budgets and programs, having my hours and my pay determined by arbitrary rulings and formulas or people who don't work with me, or the 76-mile round-trip commute in all kinds of weather.
So, I plan to study, put it into action, overdeliver whenever I can, and make my own job in RE.
Best of luck with your RE journey!
My take-away for today, posted by dp2 on the 30 Days QCF thread:
"Pay close attention, because your word choice matters a lot here. You want to use an Assignment Agreement--not a Finder's Fee Agreement. In some jurisdictions, only a licensed agent/broker can legally collect a "finder's fee" (aka the commission) for helping someone to find a property. The agent/broker represents a buyer/seller, and isn't a primary (or someone who's directly involved with the deal [ie s/he isn't signing on the line as a buyer/seller]).
OTOH, you are one of the primaries: you're the buyer. You'll also become a seller when you assign/flip/wholesale your rights to that deal to your end-buyer.
Internalize that: get the terminology right.
Some agents/brokers will pounce all over the phrase "finder's fees", with their claws fully extended, intending to crush anyone who'd dare to "practice real-estate without a license" (or collect money from selling real-estate without having a real-estate license). Others (like Don Tepper [in NoVA--incidentally another Rock Star agent]) are more gracious and knowledgeable, and will ask if one meant to do an assignment.
Yes, one could argue that "finder's fee" and "assignment fee" are synonyms. Yet, the use of "finder's fee" might win him/her the first-place door-prize of a visit from a police officer or sheriff.
I prefer to avoid the drama, so I exclusively use "assignment fee" AND I explain that I'm one of the primaries."
Since a lot of things seem to vary regionally, either by law or simply by status quo, I need to start feeling out what is standard operating procedure around here and what is likely to ruffle feathers or meet resistance. Don't know how to research that; sems like it may be the type of thing that would have to be gleaned by talking with other investors and cooperative RE professionals in the area.
... with no experience. Suggestions from elixbrown:
"My name is ______.... and I flip houses.
Very simple and to the point. Once you start with the "well i'm an investor who uses secondary funding/I will need your buyers list/etc, etc. you're going to run the risk of being called out.
Say this and maybe it'll make things easier
"How are you i'm Kimmac and I flip houses. Most of them are from investors I generally work with or i'm the middleman from a direct seller."
That small, basic, to the point sentence answers the initial question that most investors have on their minds. It SHOULD put them at ease and make the conversation more relaxed and calm. The first question immediately out of your mouth should be;
"What have you been buying recently???"
That question will normally have them spill their guts, put you at ease and then you can go with the second question.
"If possible let's meet up. If you can, can you bring a copy of your corporate docs and bank statement/POF so I can verify you have the funds??? I 'm not asking to keep it, but want to make sure we are both not wasting our time"
In two sentences, you've asked for their POF and made them comfortable to show and you not wanting to keep it shows you're flexible.
Keep the convo off the houses directly and instead from a logistics standpoint and you SHOULD be in a better place than previously."
My post-it for the evening, from Michael to Michelle in 30 Days QCF, regarding a property she was considering:
"Michelle
Move on!! But don't feel bad, you got a great education on this one I am sure. Keep it up, you have to evaluate the deal and pull the trigger or move on quickly. Volume is what it is all about. You will look at 25 to 50 deals to find a good one. $100 a month is not worth the risk. Don't waste your time trying to pound a round peg into a square hole! What if you have one months vacancy? The water heater dies? Negative cash flow, thats what! If you are going to buy and hold you should have a least $500 month cash flow AND 6 months of reserve in your account for each property you hold. Just my opinion of course.
Way to take action!!
Michael Mangham
MD Home Acquisitions LLC"