I want to post this deal because it really shows that endurance pays off. About December 2010 I found this house vacant and with some code violation on it. I did my research and found that it belonged to an out of state owner. I pulled the information from the tax records and sent them a letter advising the owner that I would be interested in purchasing this home. I was just starting out and I really didn’t know what I was doing but I bought Deans book “ Be a real-estate millionaire” and less that 30 days from that I had purchase a house and sold it in 16 days making $12,500.00 so I was pumped, I was looking for my next deal.
A couple of months went by and no answer. I didn’t receive the letter back so I knew that someone got it. So I sent another letter. About 2 months after I received an email from the owner telling me that they (her and her brother) had inherited the house from their grandmother. The only problem was that one of their uncles was contesting it and had it all tied up in knots. I responded a few days later letting them know that I may be able to help them. (I spoke to the attorney at the real-estate club about it and he gave me some suggestions). They told me that they had an attorney on it but he was not doing anything to really help them and that it seemed that all he was interested was in the money. A few weeks later I was looking through the county web site looking for tax sales and found this very house that was going to go to tax sale because taxes had not been paid in 3 years. The attorney had actually told them not to worry about paying the taxes that they would be all right. I called the tax office and found out that it was actually going to be foreclosed on for back taxes. The attorney had set up an entity to pay the taxes and he was going to foreclose for non-payment of taxes. I called them immediately and let them know what was going on and they called the tax office and arranged to pay all the back taxes and saved their house from going to foreclosure. Not being able to prove it was him, they fired him and they hired my attorney and he resolved their issues in less than 2 weeks.
After some negotiation for the next 6 months or so, I finally offered them 77,000.00 if they were to take 5% down and finance the balance for 15 yrs. at 5%. 1st payment to start 90 days after closing. I didn’t think they would even entertain that offer but much to my surprise they took it. We closed on Feb. 8, 2012 and I started to do the work that it needed on the 9th. On or about the 20th of that month a couple in their mid 30’s came by and saw the house and they fell in love with it. We agreed on the work that I was going to do and the sale price of $109,000.00. Her father paid for the house out of his self directed IRA account and we closed on the 20th of March.
After all expenses were paid I netted just over $22,000.00, not bad for a second deal. It’s true it took all that time but I say it was more endurance and patience. I new they were going to sell but I just had to wait to finally see what they were willing to take.
Everyone came out very happy, so happy that the buyers bought me a bottle of Crown Royal whiskey and the sellers sent me a very nice thank you card and email.
I’m looking for the next one!!
__________________
"It's not what happens to you that determines how far you will go in life,
it is how you handle what happens to you.
Zig Zigler
I want to post this deal because it really shows that endurance pays off. About December 2010 I found this house vacant and with some code violation on it. I did my research and found that it belonged to an out of state owner. I pulled the information from the tax records and sent them a letter advising the owner that I would be interested in purchasing this home. I was just starting out and I really didn’t know what I was doing but I bought Deans book “ Be a real-estate millionaire” and less that 30 days from that I had purchase a house and sold it in 16 days making $12,500.00 so I was pumped, I was looking for my next deal.
A couple of months went by and no answer. I didn’t receive the letter back so I knew that someone got it. So I sent another letter. About 2 months after I received an email from the owner telling me that they (her and her brother) had inherited the house from their grandmother. The only problem was that one of their uncles was contesting it and had it all tied up in knots. I responded a few days later letting them know that I may be able to help them. (I spoke to the attorney at the real-estate club about it and he gave me some suggestions). They told me that they had an attorney on it but he was not doing anything to really help them and that it seemed that all he was interested was in the money. A few weeks later I was looking through the county web site looking for tax sales and found this very house that was going to go to tax sale because taxes had not been paid in 3 years. The attorney had actually told them not to worry about paying the taxes that they would be all right. I called the tax office and found out that it was actually going to be foreclosed on for back taxes. The attorney had set up an entity to pay the taxes and he was going to foreclose for non-payment of taxes. I called them immediately and let them know what was going on and they called the tax office and arranged to pay all the back taxes and saved their house from going to foreclosure. Not being able to prove it was him, they fired him and they hired my attorney and he resolved their issues in less than 2 weeks.
After some negotiation for the next 6 months or so, I finally offered them 77,000.00 if they were to take 5% down and finance the balance for 15 yrs. at 5%. 1st payment to start 90 days after closing. I didn’t think they would even entertain that offer but much to my surprise they took it. We closed on Feb. 8, 2012 and I started to do the work that it needed on the 9th. On or about the 20th of that month a couple in their mid 30’s came by and saw the house and they fell in love with it. We agreed on the work that I was going to do and the sale price of $109,000.00. Her father paid for the house out of his self directed IRA account and we closed on the 20th of March.
After all expenses were paid I netted just over $22,000.00, not bad for a second deal. It’s true it took all that time but I say it was more endurance and patience. I new they were going to sell but I just had to wait to finally see what they were willing to take.
Everyone came out very happy, so happy that the buyers bought me a bottle of Crown Royal whiskey and the sellers sent me a very nice thank you card and email.
I’m looking for the next one!!
"It's not what happens to you that determines how far you will go in life,
it is how you handle what happens to you.
Zig Zigler