Most of you know that, in order to get a deal looked at by a real estate agent, you need something called a VOD (verification of deposit) or POF (proof of funds) letter.
On top of that, real estate agents will even want to see a bank preapproval letter to ensure that you have qualified for a mortgage which, if you've been in the commercial real estate game even for 5 minutes, you'd know that no commercial-lending bank will give anyone a "blanket" preapproval letter that can be applied to ANY property. It will be designated for THAT property only...and how are you supposed to get a preapproval without getting the actual profit/loss or income/expenses, which most listing agents won't give to you without a preapproval?
Classic Catch-22 situation.
The good news is that by having a VOD to show that you are putting in an all-cash offer (which doesn't need a mortgage because it's...well, ALL CASH), you not only will have your offer looked at by the seller's agent but it'll be streamlined on the top of the pile over any and all other offers that may be on the table.
Okay, so say you put in your offer with a VOD. How will you get the ACTUAL CASH needed to close the deal?
It will depend on the type of deal you're dealing with. If the deal is a traditional sale, meaning that the occupancy level is above 85% and can qualify for conventional mortgage terms, then you can put a little tiny disclosure in your offer stating that if you change your mind and would like to get a loan instead of paying all cash, you have that option.
Otherwise, if the property is a rehab job and needs you to cure occupancy issues because the tenancy is low, you will have to offer all cash and pay all cash for the property.
The types of deals left to do this will be your multifamily properties between 2 and 4 units (and up to 6 units if you are brazen).
This allows you to buy these properties for $100,000 or less in many cash flowing areas of the country AND you can even fund your rehab AND you can knock out your rehab and lease-up within just a couple of months.
So...we've established that you'll be getting smaller properties and show proof of funds that you have the cash to close.
But...again, where do you get all that cash?
I have a new source that will give my students up to $100,000 in unsecured cash without having to have an established business. Yes, this is for "start-up" businesses. Even if you have had some credit problems, this company can still offer this cash.
So, that's where you get the cash from.
But will that be enough?
Yes, it'll be enough. Again, you're going for SMALLER PROPERTIES that you can effectively turn around VERY QUICKLY. You'll have enough for both acquisition of the property AND rehab of the property.
Then what?
You turn around and sell it for a profit, pay your loan back, and start over.
Because...
ALL INVESTORS ARE LOOKING FOR TURN-KEY DEALS NOW!
What is a "turn-key" deal?
It's a deal that's already rehabbed, leased up, and making a cash flow. They don't want to mess around with rehab or finding tenants. They just want to swoop right in, buy it, and put a property manager on the job.
And they'll pay TOP DOLLAR to acquire a property like this.
So, you put in $100,000 on a property TOTAL (between acquisition and rehab) and you can realistically turn around and sell it anywhere from $250,000 to $350,000...depending on WHERE the property is located!
But you need these tools to make it work:
1) VOD letter
2) $100,000 in unsecured cash
3) Tutorial on HOW to do it!
I'm offering ALL of this to you now.
Click on this link for see what I'm just about giving away to my students: http://www.monicamain.com/reo_deal
Remember, real estate investing is fairly easy but you need some basic tools and know-how to start. Just think, within only an hour of your life, you can become a multi-million-dollar investor by getting these tools.
See you at the top!
Your mentor,
Monica Main
www.MonicaMain.com
http://www.monicamain.com/reo_deal
