BEN'S SUCCESS JOURNAL!- Oregon

By the way, I just thought I'd let you know that the action you have taken has motivated me to step out and make it happen now.

It's great that we can talk on the phone and discuss what we've accomplished and help each other.

Look out Oregon!

The bank accepted another offer before I even signed mine.

On to the next one.

I am ready to move on to another Realtor too.

This one just does not want to do what I ask. He has just ignored my several requests to find cash buyers.

I have MANY sellers awaiting an offer, so I am not at all disappointed to lose that deal.

In fact, I am thinking I would rather work on a traditional assignment with an individual for now anyway, especially due to the incredible results I'm getting from my bandit signs.

Whatever comes my way, I am taking action!

I'm going to drive to Portland to take a look at a potentially KILLER DEAL!

This woman has specifically said that she is motivated, and flexible on price.

I'll update you all when I decide if I will take further action on this property.

Thanks again to the DG family!

I am meeting a seller tomorrow to sign a purchase agreement.

Here are the details of the deal:

Pre-foreclosure

3Bed 2Bath 1441 sq ft in Bend Oregon

I found 5 good comps within 15 years of the same year built, within 20% of the same square footage, all 3Bed 2Bath, and all within 3/4 of a mile

I only found 2 within half a mile, so I looked out to 3/4 of a mile at very similar homes

ARV=$160,800X.85=$136,680

$136,680-$10k repairs=$126,680

The seller owes $87,000, so I made a verbal offer of $89,900, leaving almost 3k for the seller.

$126,680-$89,900= $36,780

$36,780-$10,000 (my profit)=$26,780 profit for investor.

The seller verbally agreed to the price so I will meet him tomorrow.

I am very excited to sign the contract!

I don't know if a generic assignment contract from DG.com will work, or if I need to have one drawn up by an attorney.

Any thoughts are welcome

I apologize, quite a bit has happened since the last post.

I backed out of that offer because it turned out my buyer was already negotiating a deal with that seller.

OK. I have an offer in on a property in another area.

2 EXTREMELY run down houses on 1.74 acres.

Seller is VERY motivated. She inherited the property 7 years ago and just wants to get rid of these houses and the horrible tenants. The offer has to be cash because the properties are not financable due to bad structural damage.

My brother is helping on the buyer end and dealing with the contractor. I got pictures and estimates for bringing them to a rentable state. Making them financable, and remodel. I have an estimate for demo, rebuild, rezone and subdivide.

These two lots COULD be subdivided into 12 lots per acre. Because of the location I don't see that until the development moves in, but even if you split each lot and built 4 houses you would be in for some BIG profit!

Option A:
3Bed 2Bath 2,000 sq ft comps are at about $247,000. You can build a house like this for $100,000 to $120,000 including lanscape. So, subdivide and build 6 houses including my offer price for under $100,000,000. If sold for current FMV, they would sell for about $1.5 million. Or just finance, use the money to continue investing, and sell when prices go up!

Option B:
Bring the old houses to a rentable state for my estimate of about $35,000 for both houses and cashflow them for about $2,500/month until the MAJOR development less than 1/2 a mile away takes off and sell for commercial land or subdivide then and sell for big profit! You could demo, subdivide, build just 2 houses, finance, and cashflow until prices go up also. I think this is the best option.

By the way, bare land in the area seems to be going for almost as much as land with houses on it. All of the lots I could find were listed at over $200k

I am not a developer, but this deal makes me realize that I DEFINITELY want to do some development in the future. I hope this is a deal that a developer will jump on. Still waiting on a response to my offer.

She was asking $185k for one and $137k for the other. She said she would take less in a package offer, but I made the offer of $187K for both based on the numbers, and explained to her agent that my partners will not buy hoping it goes up. They must have an exit strategy and it must be a good deal today.

I am calling the agent tomorrow to tell her I will accept the counter offer!

I did some more research and there has been 20+ permits pulled a month consistently, and this is a town of 13,000 people! The highest Median income in Oregon in this little town.

I also found the names of all the developers and builders that have been buying in that area by looking at the permits that were pulled!

Great way to find buyers.

Get it under contract and frantically find a buyer!

Stay the course bud, you r doing awesome!!! Stay persistent and things will come together like never before!!! Good job! !!!
Jay

I appreciate the encouragement, I'm really excited about this deal!

I think I may have stumbled upon a hot pocket with this little town. I called the agent today and left her a message that I would accept the counter offer, she didn't get back to me. She rarely answers her phone, so hopefully that's all it is.

I will call again tomorrow.

In the meantime, I will continue to research the area because I think I may want to wholesale there.

Ben,

Read your journal with interest as I am new also, starting this month.

Just want to say that I feel your growing pains and I'm pulling for you and your family. Hang in there buddy!

Frank

The day after I called the agent and left her a message, she texted me that the seller's partners didn't like the price and they wanted to go for $210,000

I called her back and said that the growth in the area was good, but not good enough to justify buying at that price, so if the seller changes her mind please do call me because I am still interested in the property. She interrupted me and said that she would let the seller know and maybe she can get the partners on board.

The actual owner of this property saw my bandit sign and called me, so I had the unique opportunity to exercise Greg Murphy's strategy and just listened.

She told me every detail of her situation. The property was inherited from her dad. Her half sister was the other heir and she is ill, so she passed her part to her daughter.

Long story short, The owner told me herself that her partner did not care what the price was and had no interest in keeping it. I think they were bluffing and just trying to push my price up a little.

I expect to get a call back in the next few days that they will take the offer.

I hope they will go for NO earnest money, because I have none.

I guess I will just explain that I am just passing this to my investor/partner and hopefully they will be ok with it.

Ben

I am like you and will follow your story I am getting over the fear of everything and just doing it

Rick

I didn't do much in the way of talking to anyone about my plans to be a real estate investor until my family saw my signs.

Then it kind of broke the ice and now I tell everyone. For me, as soon as I had some good deals in the works I was no longer anxious about people know what I was doing, because now I actually have something that the investors want and that makes me valuable.

The deal I have been talking about will be my first if it works out, and I really feel that once I get one under my belt it will take off. I will have even more confidence and have some experience to share.

Dean doesn't necessarily teach this, but I reccommend that if you are nervous about getting out there. Put up the bandit signs first!

I BUY HOUSES ANY CONDITION and your number.

I got probably 25 calls the first 5 days with 15 of these signs. That's where I found the deal I'm working on. And as I said in an earlier post, this gave me a unique position that other people don't have. Speaking with the owner before even meeting the agent. As tought by many of Dean's students and Dean himself, the motivated seller will give TONS of valuable information if you listen.

Once you get dozens of people calling you with good deals (and some killer deals) you will be confident to talk to investors and agents.

At least that was my experience.