OfflineHere's the specs on our first deal. If anyone wants a great investment prop in Oklahoma City, we got you right here! Youtube video coming soon.
This is a duplex in the trendy historic district of OKC. The sales price is $40,000 which includes the assignment fee. Rehab is estimated at $16-18K. Rent factors in the area are $600-700 per month. So, on the low end, you could count on $1200 a month on a $60,000 investment. (pretty good eh!) and the quick flip value is supposed to be around $80K according to our REA.
The address is 2828 NW 17th street. If you want more details, pics, or whatnot, PM me.
Ok, ok, so I'm not really counting on DG to move this property for me. We are blasting this one out to our investors right as we speak. We have had a few of them just hound us, so the pressure was on to find a great deal for them. Onwards and upwards to our first deal! Oh, and we have 3 people looking at the property already tomorrow.
We did have one minor hang up in our contract. The seller signed it, but then went home and read it further and didn't like our assignment clause. We did tell her that we might assign this deal and she was good with that, but she didn't like the fact that she was not protected or able to keep the escrow if we ended up backing out for any other reason than an inspection clause.
I have called her back and sent her an email with our intentions and I also agreed to change the wording if it would make her feel better. I think we can work through this, but if anyone has words of wisdom on how to deal with this, I would love your input. My response to her was that our intention was to buy the property, or wholesale it. I outlined my math above and told her how much profit I was looking to make (she is already making out with $18K from buying it at a tax sale). I told her that if after my contractor came in to inspect it, along with an official house inspector, if the estimates didn't add up, then we would need to either renegotiate, or take an out on the deal. I think this woman is reasonable, so I firmly believe she is going to understand our side too. Ok, I'm going to bed now. Good night DG fam. -Susan
Ok, we have the property off to our buyers list. It was over 24 hours after we sent the properties and posted it on Craig's List, but we heard nothing. So, I picked up the phone and started calling the investors one by one. None of them had even looked at the property yet. But, after my call, they all did. I got some great feedback from my buyers and I was able to tell that one of my buyers was not quite the money man he first said he was. No big deal though, he's still a nice guy and fun to talk RE with. One of our investors, I found him when I was touring houses with my REA. His crew was doing a rehab at a house in the neighborhood that we were looking in, so I went in and asked his crew who owned the house and how I could contact him. They gave me his number and I rang him up. He was not very friendly when I spoke with him the first time. I kind of felt like he thought I was wasting his time. I called him about this property and he practically hung up on me because he was busy. He just said "call back later", click. But, since he said "call back", I did. I finally got him on the phone and he pulled up the specs on this property and then all of a sudden, he was interested in talking to me. He threw out the fact that someone can really only get up to 4 mortgages on properties with bank financing now and he had just bought a house. I then told him that I learned of a new "portfolio" lender in the area that could do up to 10 mortgages for investors. He was then like "Oh, so you know about that." Yeah, I've done my homework. Now this guy wants me to continue calling him on every deal. We are buds now.
So, no takers on the deal right now, but I've got some more solid buyers who say we got this house at a great price and for various reasons, they just can't bite right now. We may end up financing this deal ourselves if nobody else buys. We are OK with that. I'm just ready to get the ball rolling in our REI career. Oh, if you haven't gone to your local REI club, YOU HAVE TO GO!!! Our meeting was FANTASTIC! Lots and lots of great information! More education and the deeper we get into this, the more we realize that investors are not scary people. They LOVE talking about their craft with other people. I'm loving this business. I can't wait to post my first deal in a couple weeks!