3rd wholesale this year in SOUTHERN CA. REO. ***100,000 made!!!*** :) None of my own money !

Hello DG family,
Well, do I have another story to tell you! Guess what, this one is also riddled with twists, turns, ups, downs and craziness too! I tell you; I attract these complicated deals! One of these days I'll post you an extremely boring deal. But, NOT THIS TIME!

My deal funded yesterday, recorded today, and is finalized on Monday. That is because this deal occurred in Los Angeles County, which has the 24 hour wait period between funding, recording and re-recording.

Now, we all know REOs aren't assignable, so I didn't assign this one. But I also didn't double close and I didn't sell an LLC or a land trust. I added my buyer to the contract, we closed together, me with 1% interest, them with 99% interest. It funded completely with their money. I will quit claim deed it over to them completely on Monday and then my funds are released to me for distribution. Both the quit claim deed and the money are held in a holding account.

To get this deal I used NONE OF MY OWN MONEY. I found the deal, got it under contract and needed $10K EMD. Have a buyer I work with and he'll get a really nice return on it. Here are the numbers on this deal:

PP: $975,000
ACTUAL APPRAISED ARV VALUE: $2,200,000
REHAB and UPDATING: $300,000-$450,000 depending upon finishes.
Closing costs: $10,000
Holding costs: $1500/mo
Project should take 6-9 months through sale
Profit to end buyer: $500,000-$650,000 if sold for the appraised value; but with this house, he could make it very grandiose and go for the high $2M-low $3M sales price EASILY, so he could make MUCH more. .

Fees to me: $110,000 (included EMD reimbursement), $10,000 goes to the gal that brought the buyer, $20,000 goes to the partner who lent me the $10,000 EMD, plus the return of his EMD; so he makes 200% on his money, I get $70,0000, and I’m giving my intern who picked up all my work while I dedicated myself to this project 100% $3500.

Now, this deal was not straight cut and dry. This property has some foundation issues and is a 3 story house. I had all the contractor bids done and a structural engineer come out for this one. I also provided my buyer with trusted contractors, and the foundation repair guy who has an amazing technique he uses to fix foundations which saves the buyer over $150,000 in the foundation repair.

I actually had this property completed in ONE day, but then had a partner fall out after widdling down 2 1/2 weeks of my contract. Good thing is he had the appraisal done on it. Then, I went through NINE of my own high end buyers on my list who 'absolutely wanted it 100%’ and fell through, claiming the foundation issue was too much. Had a few other wholesalers go through 4 or 5 other buyers the same way, even my partner who fronted the $10,000 EMD went through 2 of them and the initial first one. The foundation problem was always supposedly KILLING this deal.

But here’s the KICKER. I have the absolute best agent in the world , and she would let me know ALL the names of the people who would call her up and go behind me to let her know when I fall out of escrow, they'll buy it and attempted to put in a backup offer. I was upfront with her and told her everything that was going on, the name of all people I was dealing with, and she saw how many of these people tried to circumvent (go around and cut me out) me. Its disgusting how many sharks are out there and how things are so CUTTHROAT! I will add pics of my wire transfer and sanitized HUD once I get them. Won't be until Monday.

BUT, I also wanted to share ANOTHER great thing about this. I was actually able to raise FULL CAPITAL for this project, both the purchase price and up to $450K for the rehab/upgrade. NONE of my own money. 50/50 profit split. As a backup, I made it so I was able to close on this. I not only did THAT, but I also had a hard money lender I’ve worked with before coming to me BEGGING to do the project 50/50 with a profit share and of course all their fees, points and interest, AND all the payments FRONTED upfront.

The sky is the limit. ANYTHING is possible. When you get a GREAT deal, money comes out of the woodwork. You do NOT ever need to worry about finding money to close deals, EVEN million dollar deals like this. The more and more I do this, the more I realize how true that is, and the EASIER it gets for me to do the longer I do this!

wanted to let you know; THIS DOES WORK, and yes, in SOUTHERN CALIFORNIA where everyone swears you CAN’T do it!!!! And, yeah, I added a few extra 0s to the equation, and it STILL works. I have about 100 hours into this deal because I worked my TAIL off showing it, getting estimates and working with the agent, buyers, and ultimately screening all the buyers.

My agent didn’t have to go through 20 contracts of buyers who would possibly have fallen out of escrow because I was able to screen out the ones who weren’t truly serious. My AGENT is a star and was able to let me know who I can’t trust. Ultimately what got this done was my absolutely kick butt TEAM. And an incredible foundation contractor, who gave the buyer references to call to put him at ease.

I thank Dean for his awesome teaching and influence, my partner, my buyer, my birddog, my intern and most of all GOD who is my savior and becomes more and more prevalent in my life every day! 10% of my profits go to God.

I have 2 more closing this month Yes, right here in .... SOUTHERN CA!!! ...

GOD IS SO GOOD!

It is CERTAIN I WILL SUCCEED!! !YYYYYYEEEEEEE HAAAWWWW!