Getting your first deal done

[Will Barnard]

I created this thread from questions and answers via PM from another BP member to me and thought it was good stuff for all to read, so here it goes:

This first question stems from another post which can be found here:
http://www.biggerpockets.com/forums/67/topics/37607

"I'm searching for my 1st deal and I've been reading a lot of your posts and have learned a great deal. I hope to learn more from you as time goes on. You inspire me with all your wisdom, success, willingness to help others, etc. Personally, one day I would like to be in your shoes. "I will do whatever it takes."

If you wouldn't mind, I had a question on one of your post:

Greg -

In some markets this is impossible...the banks are refusing to allow the REO listing agents to provide "pocket deals" (deals that never hit the MLS) to their clients or investors.

Originally posted by Will Barnard:

Not in my market and how can a bank know or prevent a broker from telling me about a property located on 123 xyz st that is currently occupied but will have the eviction process happen soon? How can the bank prevent or know that the broker gave me the lockbox code immediately after the eviction so I can do my walkthrough inspection BEFORE anybody? The fact is, I do this every week, sometimes every day.

"How do you find the right broker or asset manager you are speaking of? How do I find REO listing agents that will work with me when I don't have a license to do all those things for them as J Scott mentioned? How would you advise me to go about networking and getting in touch with these people? What do I need to do for them in order for me to get the same access as you have with your brokers/agents/asset managers?"

[Tony G]

If that is what you mean, what would be a good percentage if I were using my own cash? The reason I ask is because I don't think I can find a whole lot of deals at 70% exit value. I would say more realistically they would be at 75%+ and i like to be conservative with my numbers.

My agent's ARV has about a 20k spread. Is that too broad or does that need to be narrowed down? She hasn't worked with us before so she doesn't know the finish products so I could see that being a cause for the spread. However, she does know the cost of the rehab from my handyman/partner.

Example1: I put in a bid at 84.5k which was asking price and total rehab cost 18k. all-in cost 102.5k and ARV 135k-155k.

Example 2: I put a bid on a twin home for 45k, total rehab cost 15k. all-in cost 60k and ARV 80-95k.

With deals over 100k, would the exiting value change using my own cash?