Congratulations, you’ve made it! MLS Houses For Sale
This is the third and final chapter of our Writing Multiple Offers to Flip MLS Houses series.
Thank you for all the emails, comments and shares…I’m really excited this stuff is helping you out.
I’ve already received testimonials from 4 of you who have taken immediate action and you have either flipped your first MLS deal or are very close to it…CONGRATS!
Keep them coming!
Now, before we get started, here’s a quick refresher:
In Part One, I broke down my initial system for finding, securing and closing MLS properties. At that time I was simply an agent looking for a better way to find great deals for my rehab investors.
In Part Two, I showed you exactly how I (now as the buyer) use an almost completely automated and slightly revised version of that original process today…using Virtual Assistants and modern technology.
And here in Part three I’m sharing:
- how my VA handles negotiations and processes the deal,
- how I decide whether a property is worth moving forward on or not,
- how I determine what my exit strategy will be
- and finally, how I get paid on these deals
So let’s get started!
We left off talking about how my assistant contacts the agent just before sending my offer.
You want to start building rapport.
This step is so important for two reasons.
#1, the agent is the gate keeper…the rep, the sellers confidant per say.
If the agent doesn’t like you, the seller won’t like you.
And if the seller doesn’t like you or your offer…it will have a negative impact on the overall success of your objective.
#2, if the agent’s experience with you is positive, even if they don’t like your offer, you’ll open the door to doing business in the future…perhaps the very near future.
Maybe this agent has another listing where the seller is more motivated.
Maybe this agent has a short-sale that’s about to fall apart.
You get the picture.
Let’s move on…
If and when the agent sends us a counter-offer, my assistant will note that price in our ledger under the ’1st Counter’ column.
And just like I discussed in part one, we automatically send a counter back to the seller at our target price.
If the seller counters again, that price goes under the column ’2nd Counter’ in our ledger.
At this point, my assistant will then send a final counter at $1,000 higher than our target price.
She will also note on the addendum that this is our “Highest and Best” price.
If the seller accepts I go to the property, assess it and either move forward or I don’t…but we’ll come back to this part.
If the seller either rejects or counters us again and they have come down significantly from their original list price…my assistant will then present this property to me for a manual review.
It’s not uncommon that I accept an offer on a property that didn’t reach my target price.
Sometimes, when a property is presented to me for a manual review after my assistant has negotiated it significantly…it just works.
And if it doesn’t work for me, I may know someone who it does work for so I’ll pass the deal along, perhaps for a smaller spread than I was originally after.
Now let’s talk about how I determine if a property is worth moving forward on or not.
Generally, on MLS Houses I’m looking for a 10% wholesale fee or $10,000…whichever is higher.
If I’m considering it as a rehab, then it has to have at least 20% profit (of ARV) or $25,000 minimum, again…whichever is higher.
Naturally these numbers may fluctuate based on price range, but this is my rule of thumb in most cases.
In the beginning, I used to have a contractor go to the house with me. This way I had a pretty good idea of what it would cost to get the house into shape.
However, I’ve done this so much now…I can pretty much walk through a property and know within a couple thousand dollars how much the rehab cost will be.
And once I know what my rehab costs are going to be, determining whether or not a deal is a go or not is easy.
Next, how do I determine what my exit strategy will be? Well, honestly…
I looove wholesaling.
Nothing like selling a contract for thousands and sometimes tens of thousands of dollars within days.
With that said, a deal has to be pretty dang sweet…
It’s got to hit me upside the head with a Big Fat Money Bat for me to decide to close and rehab it.
Or, if the property doesn’t need a lot of work and I think I can sell it to an owner occupant, ‘as-is’…I will close and just put it right back on the market.
Usually, I’ll list it For Sale by Owner and if things don’t move as quickly as I like…then I’ll put it in the MLS (paying a buyer agent’s commission would have already been pre-budgeted when I bought it)
And finally, How do I get paid on these deals?
I accept cash, direct wire, certified check, Mastercard, Visa, American Express, whatever.
OK, in all seriousness…here’s where I make money.
If I am wholesaling the property to another investor, I will get signatures on an assignment addendum…which outlines in detail what my fee is and how I expect to receive it.
In most cases, my fee will show on the HUD 1 Settlement Statement, and it will be wired to my account after closing.
Or I will collect a check/wire from my buyer prior to closing but it will still show on his/her closing documents.
Either way, I get paid…and that’s what matters.
When I close on the property to wholetail or rehab & retail, naturally my profit comes from the buyers proceeds at closing when it sells.
And that’s that!
Wow, what a journey it’s been over the last few weeks.
Well, for me anyways…I’m the one with carpel tunnel over here after writing this novel.
I will admit though, I love this stuff.
And it’s more rewarding when I see your likes, comments, shares and now even testimonials!
So once again, thank you!
Now check this out…
I’ve had at least a dozen of you ask if I would consider doing a Course or Boot Camp on this topic.
I’m thinking, something along the lines of a 4-week program with Step-by-Step instructions, Support and Accountability. A “no man/woman left behind” type environment with a private forum where successes can be celebrated and obstacles overcome.
Not just weekly video tutorials but live Q & A with “volunteer-in-front-of-the-class” student coaching so everyone learns type of set up.
Anyways, I’m not committing to anything just yet…
If enough of you show interest within the next week or so, I’ll do it.
If you would be interested in a program that would help you get your own MLS flipping system set up and automated in your market, then let me know by clicking the yellow button below and then submitting the form.
And as usual, If you think this post was helpful, please share it on Facebook and use the buttons below if you’ve got a Twitter, LinkedIn, Google Plus, Pinterest etc.
I notice all your interaction…and thanks in advance.