#13, 14 & 15….What A Close Out for 2013!….My Biggest Month Yet!!!

Yeah, I know; it’s been a minute since I last posted. Think it was sometime in June, after my 8th deal. I closed 1 more that month, with 1 each in July, August & September. Two were co-wholesale deals and the others were bandit sign leads....one of those a JV. Fees were split on all but the last in September.

I know that I should be more active in posting, and sharing my experiences. Think it would help keep me motivated so I that might not let up. Seems I took my foot off the pedal and had a drought of 2 ½ months!

#13 – This was another bandit sign lead….A tired landlord with a pretty solid 3/1.5 that was beginning to show signs of neglect. It was occupied with a 3 yr tenant just waiting on the house to sale so they could move to their new place. He started at $20K and we settled on $11.5K. It only needed about $6-$8K in rehab. Only had one of my buyers look at it and was waiting on his offer. A young couple called very interested, as an owner-occupant. They saw it posted on Zillow (from my Postlets ad). I arranged a walk-thru and the lady said she had cash and wanted to know when she could move in! From contract to close took a total of 8 days! I let her have it for $15,250; making my fee $3.75K.

#14 – This was tornado damaged home from the 4/27/11 tornadoes. It was also a bandit sign lead. The guy told me that a city councilman actually gave him my number. It was in a community that I keep putting signs up in, and they keep taking them down. Looks like my persistence is making an impact, huh?

This guy and his wife had lived in this house for 42 yrs and lost nearly everything. Said he had to finally sue the insurance company to get $50K. The ARV was about $120K and it took him nearly 2 yrs get that!! He was asking $15K and we agreed on $10K. The structure was still solid, but needed about $50K-$55K in rehab. I was up front about wholesaling and put in under an Option To Purchase contract.

I blasted to my buyers list and had one of my landlord buyers VERY interested! He was anxious to do a Fix & Flip. We settled on $14.5K, making my fee $4.5K.

Learned 2 VERY important lessons on this deal:

The first one…I screwed up and did not write a PA after finding my buyer which, I was supposed to do. In essence; I “assigned” the Option contract with NO terms. Thankfully it all worked out and made it to the HUD-1!

The second one…Too long a story for now. Let’s just say that thorough communication is essential and to never think that you “know” your buyer. Even though this one is buying heavy right now; he’s pretty much off my list!

#15 – This was a lead I got off of one of my FB groups from another investor in FL. He has captured several local leads and sent them to me. He only ask for a $500 referral fee.

Another motivated tired/absentee landlord. My guy had already done some negotiations and had the seller at about $9K…started at $13K. This was a small 2/1 that only needed $2K-$4K in rehab…previously rented at $550/mo. However, it was located in an area that very few investors buy…mostly only the “old school” guys.

After many conversations, I worked up a good relationship with the seller, seemingly earning her trust. Again; I was up front about the wholesaling/assignment process. This lady was actually a former agent and seemed to “get it”. I told her my final offer was $5K (knowing I might be able to get $10K for it) and ended up sending her a BLANK Option To Purchase contract for her to review and “let her think about it”.

About 5 days passed and she returned it filled out and signed at $6K!! I blasted it out at $13.5K and got a lot of responses. Only 2 buyers actually looked at it. Finally sold to a new buyer (his 1st rental property) for $10.5K. I netted $4.5K on this one.

Total earned for December was $12.25K! Not too shabby and just in the nick of time b/c I was running on empty! It was great to be able to enjoy Christmas...last year was the absolute WORST! This gives me a ton of momentum and I can’t wait to KICK IT in 2014! BRING IT ON BABY!!!!

Just remember to “get in the game” (take action) and things will happen for you. Most importantly; “stay in the game” and be aggressive and consistent. Then the “magic” begins!!!

I hope everyone has a Happy New Year and may it be a prosperous one!!

