Watch the free List Machine Pro webinar. There is nothing better to use for lead generation or to Build a List of buyers or sellers, it’s like nothing you have ever seen before, attend the free webinar.
This is a fantastic article from coach Mary Kay teaching you the 7 main points when you need to assign a deal to an investor who is into investment property buying. Mary Kay explains exactly what you should be doing.
What You Need to Assign a Deal to an Investor
By Coach Mary Kay
When I first started out in the foreclosure investing arena, I assigned the majority of my deals for quick finder’s fees. Now, as a seasoned investor, I selectively accept contract assignments. Yesterday one of my Coaching Clients asked me to review the details on what is needed to assign a deal to an investor.
As covered in Alexis’ 3- Day Lab, and based on my experience on both sides of a contract assignment, we dove right into the particulars. As much as this punch list cannot replace your live 3- Day Lab or Personal Coaching experience… this should help you get going in the interim. Enjoy!
1. Use the Right Math. During declining economic times make sure your purchase price is at 60% of current market value less repairs. When the market is appreciating you can use 70% less repairs (Foreclosure Training). This insures your investor that even if the market slips a bit their investment will be secure.
2. Location, Location, Location! Investors don’t buy in rough neighborhoods or where the future value won’t increase when the market starts to improve. Each and every investor has specific areas where they buy property, as well as areas they avoid. You need to ask each investor where they will accept contract assignments, and keep good records so you don’t have to scramble finding one when you need them.
3. Comparables – including sold (within the last 30-60 days), pending sales and active listings. Use a ¼ mile radius to start and stretch out from there. Make sure you stay within 10% of the living square footage, 25% of the lot size and 10 years of when the house was built. Be prepared to share the comparables with your investor and talk about them with confidence.
4. Competition – how many active listings are there in a ¼ mile radius? How many are REO listings? If an investor is going to buy a contract assignment they don’t want a lot of competition when they go to resell that property after repairs. Plus if the value of the nearby REO’s is far less than your comparables that will drive down your resale value, which will drive down your offer price. Make sure you determine your market value properly – this is why Alexis takes you out in the field on Day 2 of Lab – so you get it right!
5. Estimate Repairs Accurately. To begin, you have to do the right amount of repairs. Don’t cut corners. But don’t go overboard either. Again, just like you did in Day 2 of the Lab — make sure you have driven your comparables before you complete your repair analysis so you know how to make your assignment equal or better than the competition. When your investor asks you about the repairs, you can explain how you came up with the repair list and costs and let them know their profit margin is secure.
6. Practice Makes Perfect. If you haven’t presented an assignment to an investor, take the time to practice first. Present it to yourself, to your family, to your friends, and of course to your *Coach. By the time you approach the investor your language will be polished and appreciated.
7. Final Thoughts. After completing an assignment with your investor, ask them if they need any additional data or information for the next time. Believe me; they will truly appreciate you taking the time to find out what THEY want.
Mary Kay
Coach, Lab Instructor, Investor
Copyright © 2009 Foreclosures.com. This article is available for free distribution under the following terms: a) You may not edit, delete or add any content to this article. b) You must maintain all links to Foreclosures.com. c) This article must be distributed free of charge. d) This Resource Box must stay intact.
John Assaraf , his incredible story and revolutionary Brain Training System!!
Kick Start Your Foreclosure Investing
Copyright © 2009 Foreclosures.com.
This article is available for free distribution under the following terms:
a) You may not edit, delete or add any content to this article.
b) You must maintain all links to Foreclosures.com.
c) This article must be distributed free of charge.
d) This Resource Box must stay intact.
Subscribe in a reader
Tags: assign, deal, investor, learn, need, to, what, you
June 24th, 2009 at 12:47 pm
[...] story here Hans Anderson Paperwork Is Required When You Start An Investment Club | Real [...]
July 6th, 2009 at 7:07 pm
Hi Everyone
I just wanted to start by saying that the presence here is simply amazing. I think everyone does a fine job here and just wanted to make that known.
With that being said, I wanted to take a moment to note a site that I found to be helpful during the decision making process while purchasing Angels Eyes. AngelsEyesReview.com has been a wonderful help in the process and hope you can benefit in the same way.
July 22nd, 2009 at 9:17 pm
tks for the effort you put in here I appreciate it!
July 22nd, 2009 at 9:45 pm
Thank you, I hope it helps you.
Hans Anderson
August 5th, 2009 at 2:16 pm
Not having a budget can destroy your plans to get out of debt. If you’re not already in debt, the lack of a budget will get you there. In the basic sense, a budget is just a plan for saving and spending your money.
Why is budgeting so important for managing debt?
Imagine taking a roadtrip across the country without a map or compass. Sure, you might get there after many detours, turn-arounds, and delays. Or you could get a roadmap, map out your trip, and get there with a lot less trouble.
It’s the same way with managing debt. You could successfully get out of debt without a budget, but how long would it take and how much would it cost you. Instead, living out a budget will make getting out of debt much easier.
A budget will help you figure out exactly how much you can afford to spend to get out of debt. Not only that, it helps you figure out where to squeeze more money from your debt.
Once your debt is paid off, a budget can help you to keep your finances on track to keep you from getting back into debt. A budget will help keep your spending under control so you don’t have to rely on debt to make ends meet.
You can learn more about how to manage your debt at Debt Advice
August 7th, 2009 at 11:19 pm
I just wanted to stop in and say hello to everyone. I needed to acquaint me, my name is Sam. Hello all, my name is Eric.how-do-you-do to all, I am new here and my name is Simon.
I decided to post now because I think community as a whole is very useful and friendly. I love reading all of the issues and posts here and taking into consideration that I am not much of a poster, I decided to make my very initial post.
To return back to the community, I have made up my mind that I wanted to leave a new good experience that I have had with another site I had help me. This site is up front and extremely professional.
That company is OnlineComputerHelpers.com and they offer online help http://www.onlinecomputerhelpers.com – online computer repair
August 23rd, 2009 at 7:11 pm
Hi everybody,
I’m glad to provide here an interesting
type of earning. Can you imagine that one
can earn up to 3% a day through by investing without limitations in sums ?
I mean that even if one has US$1.000,00 one can make the same money in a monthly!
If someone is interested welcome to visit my web site http://www.theinvestblog.com.
August 31st, 2009 at 11:11 am
Thanks! I haven?t seen such helpful post for a long time!
August 31st, 2009 at 10:14 pm
I’m happy you enjoyed it.
Hans Anderson
September 4th, 2009 at 7:37 pm
Hello. My name is Chris. I’m from USA. I’m new to this forum, i was hoping you could maybe teach me some stuff.
This is me-> http://lmageshack.us/img/chrisP.jpg – Just so you know who i am! feel free to post your own photos. Allways best to know who you talk to!
September 7th, 2009 at 12:07 am
Wanted to say hello
Thanks!
Interlock Roofing
Interlock Industries
July 15th, 2010 at 1:16 pm
Sweet site, I hadn’t noticed realestateinvestingfacts.com before in my searches!
Laundromat For Sale Same Day Dry CleaningPlastic Recycling Codes Laundry Attendant