Making Thousands off of a burned up Junk House

I knew it was you Rando...... hahaha LOL........ awesome dude hey squeeze it for all you can get out of it....

WALT

It's very interesting how often my deals go in different directions. Like this burned house. I had it sold to my buyer Michael R. Later he tells me to send the contracts to someone different. I did send them to the email he provided. I started getting worried cuz after 3 days there was no response and no signed contracts. I had already contacted all my other buyers, these are the guys that will buy almost anything, and none of them wanted it.
So, out of desperation I started running ads on Craig's List and was surprised to start getting calls. Because I had some interest I decided to try for a bit more cash.
A young Mexican couple called, I only spoke with Rosa cuz Juan didn't speak much English. I met them at the house and pried off the plywood on the back door. The interior was not half as bad as I thought. All the studs to the top plate was in great condition. But the roof was toast. We agreed on $24,000 and started escrow a few days ago.
They borrowed the cash from their Uncle.
So the first buyer fell thru but it turned out great cuz I'm making 6K instead of 4.
Let's make some money....
Rando

Congrats on the deal but have you thought about buy/fix/sell?

Just a thought

______________

Aaron

The burned out house from hell. After several weeks I called my Title girl and asked what was the progress? She tells me she cant contact the buyers to come in and deposit their funds and sign the paperwork. So I txt the young Mexican girl (my buyer) and she says, "Oh my husband decided not to buy it but thanks it was a pleasure" I asked why didn't you tell me this 3 weeks ago, she says because I never got back to her. I tell her we had a signed contract, it was in escrow, you cud of had the decency to tell me cuz I had other buyers, She then tells me I'm not a professional because of how I'm acting.
After about a half hour of ranting and raving, I cudnt kick the dog, (he was too fast). I txted the original buyer Michael R and tell him the burnt house is available again, he asks how much and I say 24K
I was shocked, he says send over the contract. Just a few weeks ago he told me he didn't want it. But he had been txting me and asking if I had anything. I had another buyer looking it over and wanting it also, maybe I cud have squeezed that tater some more.
So, back on tract to make my 6K assignment. What have I learned? Get at least a $500 non refundable deposit from buyers you don't know.
Rando

Add in contract 'this offer is good for 48hrs'

Add time is of the essence on closing date

I made a habit of following up on everyone and everything...Nobody works like I do so I treat them all like kids!

This deal finally closed, I'm celebrating by cooking a pot of home made chili beans. I also got some sour dough French bread and a case of energy drinks, I know, they are bad for me.
Now I'm getting ready to send out 10,000 post cards, my sister is doing half for 10% of the profits and I pay expenses, and my former bird dog Rich is doing the other half and were splitting profits and expenses.
Rich and I have done a half dozen deals together including the pigeon poop house and we got a sweet deal going now that shud pay about 6-7K each.
He calls for advice & such, but I'm letting him meet with the sellers, negotiate, take photos and do 95% of the work.
2015 I did less work than ever and made more money than I ever did in my life. It's weird how that works.
Let's make some money.
Rando

Are you using the hand written post card for that 10,000 mailer?

I paid $97 buks for this hand written post card system.
It's the coolest thing, it uses a font that looks hand written and pulls individual names & addresses off of your excel spread sheets.
For example I have a list of absentee owners that I paid $120 for. It has 2500 names, it includes the address of the second home they own and their primary residence.
This system imports the mailing addresses and the site addresses on to each post card along with my personal message offering to buy their house.. I can crank out 100 or 2500, all I gotta do is keep the paper tray full of post cards and make sure the ink is full. I save a bunch of money by buying my ink in bulk and refilling my old ink tanks.
Of course ther is a learning curve, any dummy can learn it in a few hours, it took me a few weeks. Haha.
It does look hand written, but I'll have a better idea of how good it works with the response rate and the amount of deals I get.
To mail out 10,000 post cards will cost about $3,700 just in postage and another few hundred in ink and blank post cards, let's say $4,000
That is a scary gamble, But I average over 7K on each deal, what if I got 20 or 50 deals? I'm excited not just because of the potential profit but bcuz I have others doing all the work.
Let's make some money.....
Rando

The investors I know who send out that many average about 1 deal per 2,000 pieces. You may do better in your area.

2,000 post cards to get 1 deal, even that wudnt be too bad, postage wud cost $740 and my smallest deals are $2,500 But I average $7,000 per deal.
And last month I had sent out 100 post cards to get 2 deals that's paying $8,500 but that's very unusual.
Then there are times I've got no deals from my mailings. Being on a limited budget and spending thousands on a mailing campaign that get's no results can be financially devastating.
I'm thinking that over the long run I've double and tripled my investment over all.
What's really interesting is sometimes I get a call from a homeowner that says he got my letter 2 years ago and held onto it.
And I often get calls from people saying they got my letter awhile back and want to know if I'm still interested in buying their house.

Hi Rando, this is Lavern kind of new....but have invested in real estate in the past. Just getting back I the game. Much older and wiser now. I couldn't help myself from having a good laugh at your tenacity that paid off. Way to go.

I would be excited about that for myself...too bad you beat me to it..look out Rando bandit signs are going up. Been out of the biz for years. Been on the hunt.. found some good deals. One of them is a burnt unit SF asking for less than you paid. I am running to buy it. Thanks so much for the EXTRA encouragement.

Hey, it's better to have 1% of 100 (one hundred) people's effort than 100% of your own efforts. Can't remember who said it. I think Paul J.Geddes. please correct me anyone. If you can get sone worker bees that's a great move. Also you're providing an income to your busy 'helper bees.'