OfflineWe are sooooo excited tonight! We just learned that the offer we have been in negotiations over for the last 2 weeks has been accepted!
The Fair Market Value is $180,000 and we got it under contract for $97,000. We have already advertised it out to all our buyers and we are asking for a $3500 Assignment Fee. We also posted an ad on CL so that we can get the word out to as many buyers as possible, plus we may be able to build up our buyers list at the same time.
This offer has been an exercise in patience, something we are in short supply of! Our original offer was $90K to their asking price of $150K. At the time, they accepted another offer. Then about 3 weeks later, they called to ask if we were still interested, as the offer fell through. We said that we were, and a few days later, they countered at $135K. We then re-countered at $92K, with a deadline of 5 days.
The deadline was a MISTAKE! They changed their MLS listing to say, "Only taking offers until Wednesday! Another offer on the table." Our realtor said she couldn't believe the amount of interest that stirred in the property. Sure enough, another offer came in to compete with us. The listing agent said the offer was $97K, but contingent on financing and that they would rather take our cash offer. Would we be willing to come up $5000? We agreed, but said we wanted to hear by Friday (that gave them 2 days).
They completely ignored our deadline!! 
Friday came and went and NO WORD! We were so frustrated by this point that we decided to pull the offer, but our realtor said that she had worked with this bank before and they are notoriously slow. She recommended that we be patient and wait it out, because if we pulled our offer they might lower the asking price, thus generating more competition. We took her advice.
Then, this morning the listing agent called our realtor to ask us to continue being patient, and that HE was frustrated with the bank, too! At this point, we weren't holding our breath!!
Then, tonight at 4:30 we got word that our offer was accepted!! We now have a 10 day inspection period to get it assigned. WOW!!!
Let's just pray that we don't blow it NOW!! Thank you everyone for your support and words of encouragement!! We will keep you all updated!
Dominic and Kim
Go confidently in the direction of your dreams. -- Henry David Thoreau
Congratulations on your first offer. Not to sound too greedy but you probably could sell it for $126,000 (which would be 30% off FMV) and make a profit of almost $30,000. Still you did good by being persistent and you ended up acomplishing a goal. My hat is off to you. Great job and good luck on your future deals.
Thats so exciting to hear. Please keep us posted. It keeps us newbies motivated.
I'm sure that you are right that we could have asked for more money. However, the property needs work and we don't have the money to fix it up ourselves, so we are stuck trying to assign it. Our buyers are looking for 60% FMV, and with the amount of work required we didn't want to seem like we were gouging our buyers. We wanted to keep the numbers low enough to fit into our buyers needs and we want to establish a good working relationship with them, so we thought $3,500 sounded fair.
It's our first (possible) deal and I'm sure we will learn a lot from it!! Thanks for your kind words!!!
I am very glad to hear this news. I just thought about you guys today and wondered about your deal. I think you have your fee at the right amount, considering how high you had to raise your offer.
Jason S.
San Diego, CA.
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Now that you explained it makes more sense. What you did was admirable and that is a good way to build a long term relationship with your buyers. You had the opportunity to truly make it a win-win for everyone and you did a fantastic job. Thanks for hearing me out though.
-Nate
If you are interested in the bigger profit remember that you could have a hard money lender finance it for you. (In fact, with those numbers, you might run an ad on craigslist for a private lender... Just a thought...) Assigning is the best way to get started, though. There's little risk that way. I'm still waiting for my first offer to come through!
Amber
http://www.180-PropertySolutions.com
"The greatest enemy of great is good."
Hey Guys,
I have read your posts in so many threads since you joined the site, asking questions and giving advice and this latest development in your RE journey is so exciting. I wish you all the luck in the world. I truly hope that this pans out!
Angela
Hi All.
I just finished college and also finished reading Dean's book.
My goal is to buy 1 or 2 homes and then rent them out.
However, I only found techniques mainly for assigning and selling equity.
What are the techniques used to buy a property and then keep it and rent it for the long term?
Thanks for any help!
MayJean
The techniques you are talking about are in the book "Be A Real Estate Millionaire" a.k.a. "BARM." "Profit From Real Estate Right Now" is the one you have that has the "No Money Down" Techniques. If you don't have money to invest (like me) it's best to use the book you have and when you start making money on deals then do what's in "BARM" because I think you have to have some money to do those strategies. I hope this was helpful.
-Nate
You may have this posted elsewhere so I apologize if so as it seems others are aware of this deal. Was this a REO or short sale? and you had the and/or assigns on contract?
Congratulations and look forward to reading the outcome and how long it took to assign!
MayJean...To buy and hold long term, you can basically do the same thing as assigning as you still want a good deal. The positive is you keep the equity in the property for yourself. The additional work for the equity is YOU have to finance property (somehow), You are the landlord, i.e. you fix up the property to make it ready to occupy (or hire it out), advertise and find tenant and handle on-going relations or hire a property manager to do that. Find out what the going rent is for the area and type of home you think you can afford so you know the highest amount you can pay in order to receive your desired cash flow, (or at the very least have it pay for itself)
Kate
"Whether you think you can or can't, you are probably right" Henry Ford
You guys that is awesome! I have a few offers pending and a bunch of rejects. I know i'd be over the moon if one got accepted. Your first you will always remember!
One question...you were posting and advertising the deal BEFORE you got accepted? How did that work? and what if it didn't get accepted? You just say , sorry i'll keep you in mind for next time?
Great news Dom & Kim !! I can't wait to hear you closed the deal. good things happen when you never give up.
good luck.
Richie.
Very nice...That is great!!!Congrats on that, and for learning patience as you said...Sometimes, patience is so hard, especially when you are excited, and nervous, and everything else that comes along with it...Good job, and look forward to hearing more.
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Thank you everyone for your congrats!!
HisChosen, we considered going the HML way, but we really want to focus on Assignments at first so that we can get some capital and pay off some debt. Thanks for the suggestion, though! Always trying to think outside the box!
Yes, it was an REO on the market since December.
Our offer was written with and/or assigns, which is great! Our realtor kept telling us that banks don't like and/or assigns, but we decided to try it and see if they said anything and they didn't. This was only the 5th offer we ever submitted! We shouldn't have too much trouble assigning it, so I'm grateful that our first deal should be pretty smooth!
We'll keep you updated!
Congrats and good luck .... but we need to know how you did this deal.
Was it reo, short sale, foreclosure, etc?
How did you present the offer? (what did you show are buyer name, earnest money, payment method and what were the contingencies you added as addendum to contract?
Where are you marketing and advertising the property now?
Send us a link so that we can see the photos of the property, description, etc.
This is great .... good job guys!
Mati
Live life today, because you never know what tomorrow can bring!
Congrats!!!!
Finally!!! It seems like you were trying to get this property for ages! I am excited for you guys!
Good luck to you!
YURI
-- TIME IS A TERRIBLE THING TO WASTE, SO STOP WASTING IT --
Dominic and Kim,
Congratulations on the first deal. The first deal is usually the hardest. I am sure everything will work out for you. I am so happy to hear more good news from persistent investors. Believe and Achieve
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Hi Mati! Sorry, I guess I left some stuff out! The property was an REO. We calculated the FMV using 8 comps from the MLS that our realtor sent us. Then, we just offered half ( $90K ).
We submitted the offer in my husband's name (makes it easier if just he has to go in to sign, since we have 3 little kids!), AND/OR ASSIGNS. Yes, that's correct -- we used AND/OR ASSIGNS and the bank never said a word about it. It seemed their bottome line was the money.
The contingencies were:
10-day inspection period
21-day escrow
$1500 Earnest money
all CASH offer
and/or assigns
We thought those contingencies would sweeten the pot! I think they did, because we had at least one other offer competing with us. Of course, now I'm nervous about the shortened inspection period. The shorter escrow doesn't matter because all our buyers are cash buyers and can close "today" as they keep saying!!!
We just emailed each of our buyers and told them the address, the price, the contingencies, the estimated repairs, our fee, and we encouraged them to drive by the property and if they were interested we could have our realtor show it to them. We also posted an ad on Craigslist with most of the information, too. We left the address off so that any interested parties would have to contact us. That way, we can grow our buyers list.
We aren't very sophisticated yet, I'm afraid!!!
We don't have a web page and I don't know how to upload pix to CraigsList!! I really need to do all that stuff, but for now, no pictures...sorry!
Hope I answered all your questions!! We'll keep you updated. Today should be a big day, as 3 of our buyers are looking at the property today. Wish us luck!!!
Way to go Dominic & Kim, CONGRATULATIONS! Keep us posted, can't wait to hear about your first closing. How exciting! I can see you jumping up & down!
Dawn
Life's a Dance you learn as you go...GET HAPPY FEET!
"Most of the important things in the world have been accomplished by people who have kept on trying when there seemed no hope at all." ~Dale Carnegie
Way to go guys! I hope everything goes smoothly with the rest of this deal! I'm really happy for you. Keep us posted as usual!
Lenny
Wow, that is so awesome... your first deal! Let us know how it works out with your buyers. Make sure you advertise the deal on CL, backpage, etc.
-
Live life today, because you never know what tomorrow can bring!
That is great news. I know how you feel so I am doing the accepted offer dance with you. Keep on TRUCKING and keep us posted, all info is good info,it helps the next guy.
Mike
That sounds great! I will PM you to get some info on the website. I could use any advice you have! We are totally new to this stuff. I do think a website would lend credibility to our business and could increase our visibility. Eventually we want to buy & rent houses so that we can have passive income. I've always thought flipping sounded fun! The only TV we watch is HGTV (although we rarely have the time to watch anything!) and Dom is very handy and good with repairs. We love working on projects together, and with Yuri's Rental Agreement, we are anxious to get to the point where we can do that! We are hoping to use the Fast Cash methods only until we get some debt paid.
Keep us updated on your offers. That's amazing to already have 3 counters. We will keep our fingers crossed for you!!
Hi, I'm new to this and i want to do assignments also to get some cash to pay off some bills, i just loved reading both of dean;s books.
Hey guys, thanks for the info. I, too want to do assignments to get some cash to pay off some bills, real estate is the way to go, i just finish reading both books 2 days ago.
Good job. I have put in 5 offers so far have waiting on realtor to get back to me. I already have buyers out there following deans book so that is not the problem. Just waiting for the ok by the bank, But Iam putting 5 offers in every week till I can get up to ten a week. I love all the inspirational talk here it is motivating
Thanks All!!!
___________________________________________________________________________
REFUSE TO LOSE 1993 Umass
I just watched Deans blog #23 where Matt is talking about bidding on houses other people werent going after.
How did he find those? One more question, I am having a hard time finding a Realtor that wants to put in alot of low offers. They say its a waste of THEIR time.
I am very new to REI and would put the offers in myself but I am still not clear how. I read BARM and Profit NOW. I am reading chapters 3-9 in Profit NOW again.
If someone can shed a little light on this it is much appreciated.
Thanks,
Carl
knard3000, that's exactly how we started. Actually, I think we put in 2 offers the first week, then 3 the next. The offer that was just accepted was in that 2nd batch! Since then, we've really stepped it up and we have over 50 offers out there now. Our original offer on this house was March 24th and it was accepted last night. We are definitely learning to be patient with the banks, as nothing seems to go too fast with them!! Good luck with your offers and keep us updated.
success60, that's what we're doing, too! Trying to get Fast Cash to pay off some of our debt. Good luck to you!!!