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How To Become the “CIA” of Real Estate

by Engelo Rumora on July 12, 2014 · 6 comments

  
How To Become a

Over the years, I have been involved in many real estate transactions involving genuine and non-genuine real estate professionals.

On an average day of prospecting I will correspond via phone or email with over 100 hundred people. Unfortunately 99% of my correspondence tends to be with individuals that are incompetent and time wasters.

To become a CIA of Real Estate, one must have the following:

- CASH

– INFLUENCE

– AUTHORITY

In order to successfully make a deal happen you need to have the CASH- if you want to purchase yourself. INFLUENCE- so you can influence others to purchase. Or AUTHORITY- to make decisions on behalf of other investors/groups.

After getting burnt in the past on a few deals that didn’t go through, I decided to develop precautionary measures that help in distinguishing a time waster from a CIA.

Related: How NOT to Flip a House: An Embarrassing Story of Wasted Time, Money, and Opportunity

When you come across a potential buyer that poses to purchase “numerous” properties on a “regular” basis, and they guarantee to have the financial capacity to do so. Once they have viewed your marketing materials, be it a brochure on an individual property or a spread sheet on a bulk package.

There should be no reason for them to take longer than 48 hours to submit an offer through a LOI (Letter of Intent) and with the offer, show a POF (Proof of Funds). Once the LOI and POF are submitted within the accepted time frame- the next step would be to evaluate the letter of intent.

What a CIA Can Do

A CIA with a team and systems in place that purchases numerous properties on a regular basis, should not take longer than 10 days to conduct all due diligence (up to fifteen single family homes), especially if the seller has all lease agreements and title work on hand and ready to send at any moment. They should also have access to a reputable title company which should not take more than 5 days to do the title search.

Related: The 5 Key Players Every House Flipper Needs On Their Team

By having a genuine interest in the property(s), this CIA should also be willing to put down a minimum deposit of $1,000 per house (if the asking price per property is up to $50,000) and be able to execute the entire purchase on or within a 14 day time frame, once the 10 day due diligence has been accepted.

To often I’ve come across big time “investors” who promise everything but deliver nothing as they submit an offer requesting unnecessarily long due diligence ,extended close and other stupid clauses in the LOI that clearly show their inability to perform.

When our group is in the acquisition stage- and has the CASH, INFLUENCE, or AUTHORITY. As well as the knowledge on the particular property or market. From that moment on, all that is needed moving forward is for a purchase price to be agreed on, a general inspection to be carried out, and the title to be in clear standing.

If all of this is in order and sorted, If need be, I will happily strap the check to my speedos, swim across the ocean, and deliver it to the buyers closing company— first hand and in person. (Please excuse the visual of me in a Speedo lol)

Don’t forget that a serious and genuine buyer ls always willing to put their skin in the game with a down payment and go out of their way to make it a smooth and quick transaction.

As the saying goes “Money Speaks Every Language”

Be sure to leave your comments below!

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{ 6 comments… read them below or add one }

Brandon July 15, 2014 at 5:18 pm

“When you come across a potential buyer that poses to purchase “numerous” properties on a “regular” basis, and they guarantee to have the financial capacity to do so. Once they have viewed your marketing materials, be it a brochure on an individual property or a spread sheet on a bulk package.”

“When our group is in the acquisition stage- and has the CASH, INFLUENCE, or AUTHORITY. As well as the knowledge on the particular property or market. From that moment on, all that is needed moving forward is for a purchase price to be agreed on, a general inspection to be carried out, and the title to be in clear standing.”

The lack of full sentence structure (editor?) makes it hard to comprehend these paragraphs.

Reply

Engelo Rumora July 23, 2014 at 5:30 am

Hi Brandon,

Thanks for taking the time to read the blog.

Feel free to give me a call on 816 372 5334 and I would be more than happy to assist you with better understanding the above paragraphs.

Thanks and have a great day.

Reply

James September 3, 2014 at 2:53 pm

I would never have imagined that as many as 99% of “investors” are so unprepared (or incompetents)! I was sure this number was within 60%. It must be very difficult to have to deal with such people on a regular basis. I agree that the buyer should be willing to do anything so that the transaction is a smooth as possible.

Reply

Engelo Rumora September 4, 2014 at 5:06 am

Hi James,

Thanks for your comment.

It sure is amazing to see how many non genuine investors are out there. I am yet to understand why so many pose to be serious when they are not.

Yes, it should be in the buyers interest to make it as quick and smooth as possible.

Thanks and have a great day.

Reply

Will September 4, 2014 at 1:32 am

Thank you for detailing the procedures that have to take place; this was a very educative read! I am still pretty young but would like to become an investor some day: hopefully among the 1% of serious investors! It’s good to know how you can spot a fake investor and stop wasting time with him/her and only do business with professionals.

Reply

Engelo Rumora October 5, 2014 at 7:08 pm

Hi Will,

Thanks for your comment.

I am glad you find the blog educational.

Time is everything in business. The more free time you have the better as it helps you focus more on the bigger picture.

Have a great day.

Reply

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