All Forum Posts by: Brian Bagdasarian

Proforma isn't a specific number or calculation. A Proforma is a forward looking financial model. Its basically cashflow projections.

@Alexis Terry we have, but its part of a larger strategy. It also takes some time to get your creatives and copy dialed in - just be prepared. Effective FB advertising has a bit of trial and error in it. We do quite a bit of retargeting using Facebook, too.

On Facebook you'll need to ensure that you're compliant with the "Housing" special ad category. There are a number of restrictions that come along with that. You can't use lookalike audiences, targeting is limited, etc. 

Here's where to learn more: https://www.facebook.com/business/help/298000447747885

Which rules and regulations are you referring to?

Having used both, I would go with propstream if you're looking for a solid data platform, and are investing significant money into other systems as part of your business and its growth model. If you're only really working your local market, and mostly driving for dollars, and want essentially a 1 stop shop that can do most things pretty well, then Deal Machine should work for you. 

To build on what @Dan Milinazzo and @Anson Young have said - I always have a clean list of upgrades and updates that have been done, including systems and "in the wall" items that otherwise would not be apparent. This can become especially important when it comes to older homes that have been rehabbed. I provide it to them, and usually frame it as "here's a list of what we've recently done, and what it cost..." 

If they have questions, I answer them, but to the point of the others, I never try to be authoritative, just humble and helpful. It can get you a few thousand extra in a value bump (not always, but sometimes).

Off-market sellers are rarely motivated. 

They often are backed into a corner due to an unfortunate or unforeseen situation. If they were truly motivated, they would be listing their house on the MLS. If they haven't, but they choose to sell off-market, its not because they were motivated, but rather because they wanted or needed an exit, but didn't know what to do.

Why am I bringing this up? A single word - empathy. Most of the people that we purchase from off-market have found themselves in a situation, while not always truly bad, where selling their home to us makes the most financial sense. We regularly tell people selling to us isn't their best move. We do that because we're empathetic to their situation, and actually care about their outcome. If they can make more selling it on the open market, we tell them that. If they want to believe that they can, but the reality is that the home needs more work than they realize, we tell them that too. Those are the ones we buy.

We believe that when we buy a home off-market, and then either rehab it ourselves or pass it along to one of our partners that we're doing right by all involved - the seller, ourselves, our partners, and the community where the home is located.In this crazy world we're living in compassion and empathy are in short supply. Instead of looking for "motivated sellers", look for people that you can help out of a less than ideal situation.

I believe that doing this makes the world a little better.

What do you think?

@Jonathan Lane you'll need the POF at time of offer.

@David Kuhlke lets assume the following scenario:

• - You have two companies (you own/control both)
  • - Company A: This is the purchasing LLC that will hold title to the property
  • - Company B: This is the lending LLC that will hold the mortgage, and fund the purchase of the property

You, on behalf of company A will sign the P&S, indicating that you are making an offer with no financing contingency. You instruct the banker for company B to write a letter, on bank letterhead, confirming a DOLLAR AMOUNT of funds available (it doesn't have to be everything, just enough to comfortably cover the deal), and deliver it, along with the offer, to the listing agent or seller.

As soon as the deal is agreed to, contact your title company and explain that company B will be holding the note, and that you in fact control both (if this is the case). Provide them whatever terms, etc the note will be held to. From there is pretty straight forward. At closing the deal will be funded, the mortgage will be subsequently recorded in 1st position, and you'e off and running. 

DM me if you have any questions.
 

To be clear - what your realtor told you is incorrect. A cash offer is simply an offer that has no financing contingency. This means, as other stated, that if, for some reason, you cannot get a loan or other funds to close, that it wouldn't allow you to exit the contract. That also means that if you had to break contract because of it, you would be in breach, and would forfeit your earnest money.

We, as an example, have letters from both our banker and one of our HML (that we use depending on deal size) that states that we do in fact have immediate access to "x" dollars. We've never had an issue this way.