OfflineMy bird dog Richard from a nearby small town recently spent $100 on gas and a few days’ time driving for dollars and sent me addresses of more than 200 junky houses. I sent addresses by email to my Title Company and soon had the names and mailing addresses of the owners. I immediately sent out yellow letters.
One of my calls was from a lady named Martha, and she said she was indeed willing to sell her house. She tells me the roof had collapsed and she had been forced to move into a nearby apartment. Richard went back and took some exterior photos. The exterior was really bad, front porch was rotted, the exterior wood siding had holes in it and all the paint was peeling.
I offered Martha $17,000. It was only a small 2/1 & the after repair value was somewhere around $90 - $120K. She then tells me she talked to a Realtor and he told her the lot alone was worth at least $40K and that is the price she would accept. I contacted my buyer and to my surprise he says he will pay $45K for it.
A few days later Richard and I met Martha at the house to sign the agreement and seal the deal for the agreed upon price. We stood outside in the back yard for a while chatting and I took a few photos and then asked to see the inside.
She looked nervous and says I don’t think I brought the key, is it important for you to see the inside? I said yes of course, we need to know what we’re buying. She was really hesitant but went to her car and brought back a key ring and says, I really don’t want to show you the inside because it’s a mess. I told her, oh, don’t worry, we have seen much worse, believe me.
Little did I know what we were in for! I was also a little confused because from the outside the roof looked good and I didn’t understand why she said the roof had collapsed. Richard and I then walked into the HOUSE from HELL.
junky nasty house wholesale deal real estate investing success storyI have been in some nasty structures - from hoarders, homeless, burnt out - but nothing prepared me for this. It seems pigeons had been living in her attic for years; I’m talking maybe decades of accumulated pigeon droppings that eventually got so heavy the sheet rock ceilings had collapsed into the house.
She must have moved out in a hurry because none of her furniture had been removed and all of it was covered in huge amounts of poop. The TV, living room furniture, kitchen table, I mean everything wich was covered in 2 feet high mounds of bird poop.
Now the birds were not just living in the attic anymore, they were all inside the house living happy as can be. The birds were startled when we entered and their wings were flapping and the thick disgusting pigeon poop dust started rising. The sight and stench was indescribable.
Richard and I had to hold our breaths as we walked thru and I snapped a few photos. Martha and her niece stayed outside & wouldn’t come in - who could blame them! After a quick walk thru we had to rush outside to gasp for air. I wondered what kind of toxic disgusting fecal dust I had all over me including in my lungs. The thought of a deadly disease called Hantavirus from rat droppings came to mind.
I was in disbelief. All 4 of us stood on the old rotting front porch speechless for a short time.
After my initial shock my brain finally started to function again. I told Martha, “Wow, I didn’t expect anything that bad”. Can you give us some kind of price break? She asked what price are you thinking.
I told her $30,000 and I don’t know if I can make a profit on it at that price. I was wondering, once the buyer seen this horrific situation would he run for the hills. We soon settled on $36,500. Martha even had her Grandsons clean out the property, and our buyer was happy to get it at 45K.
That means Richard and I split $8,500 We both picked up checks for $4,250 each. House took longer than expected to close and sellers were getting agitated and so were we, but it did close and we both picked up some healthy profit.
reo rehab flip deal real estate investing success story
Richard and I used some of our profits & teamed up on a direct mail project and split costs & did several other deals also.
Later Richard actually flipped a small apartment complex on his own and made $11,000
Let’s make some MONEY….
Rando
Rando
it's amazing the amount of sh$$t that you can find in some houses! In your case, literally!
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...
Interesting wholesale deal LOL.. Nice job
Reynold Orozco
First I want to know how and where did you find your bird dog friend? It takes the right kind of person in my mind to be open to whatever they may encounter doing this. This guy is a friend to stand by you like that. Awesome. Also the communication and negotiation skills were great. Kindly dealing with the lady and what she had to be feeling takes great skill. Do unto others as we would have others do unto you and then you knew you were building your profit into the deal so you worked thru the twists and turns as it all unfolded. Great job.
I find my bird dogs by advertising in the Real Estate Help wanted section on Craig's List. It's always been free but lately they just started charging $25 for my ads. I noticed they do this in the larger cities and my town of over a 1/2 million is growing.
I still advertise for free in the smaller surrounding towns.
The problem with bird dogs is 99% of them will flake out on you. It is really interesting when I get calls from prospects telling me that doing Real Estate is something they have always dreamed of and they were at a point in their lives that made it a necessity they make money. And I could count on them and they were motivated and sincere and yada yada yada.
Then guess what? I never would hear from them again.
Sometimes they wud send a few addresses b4 they quit, I try to explain to them it's a numbers game and I try to motivate them with photos of my other bird dogs holding huge wads of cash I paid them, I guess that's human nature.
They want the fast easy way.
Rando
..and I enjoy how you tell the stories. I knew it had to be you, Rando, when I saw 'pigeon poop house!' You just never know what you'll find, right?..sure keeps it interesting. As someone who has not made a deal yet, I'm always amazed at what folks will pay $ for. Is there ever any type of property/ situation to avoid or does it just come down to if you have a buyer for it?
"I can do all things through Christ who strengthens me" Phil 4:13
Hi Heide, That's an interesting question. I have flipped properties that I wudnt have gave a wooden nickel for. I'm really shocked at some of these rat holes I have sold.
Like this latest burned house I just sold, It is beyond belief that this sold. I'm making $6,000
I suggest you get out there and put these junkers on contract and start advertising them. I have 3 in escrow right now, One is an old abandoned ranch house in the worst part of the city. The bird dog, my buddie Bob and I are splitting a $15,000 assignment fee. The house has no doors, no windows, weeds growing up thru the floor, no sheetrock, no kitchen cabinets, a bad roof, and those are the good points.
I have made a ton of money wholesaling these properties that shud probably be leveled.
And I've done a bunch of nicer homes also from 70-125K
Before I thought I wan only worthy of flipping the worst of the worst but since I started flipping some mid income houses I'm starting to think why not try to sell some higher end properties?
If you need some one on one help, I'll walk you thru a few deals and get them sold for 50% of profits, you just gotta find em.
Rando
Rando
Nice way to embrace adversity and reap success through persistence. Awesome work Rando1.
I thought the same thing Rando when I saw pigeon poop house, I wasn't surprised to see it was you. I also love the stories you tell. You are an inspiration to me doing deals on house much worse than some of the ones I have had. Awesome work Rando - keep it up and keep telling us these wonderful stories.
- think about what if? - and what is possible rather what is not
- Kevin
You can Join my Buyers list: http://www.townlineproperties.com
Hey Rando,
Did you mean to say that you actually get your title Company to track down the owners on the properties your Birdogs find you? That's an interesting idea I had not heard before.
- think about what if? - and what is possible rather what is not
- Kevin
You can Join my Buyers list: http://www.townlineproperties.com
for answering my question..I can think of a couple junkers now that I wondered if I should just steer clear of.
"I can do all things through Christ who strengthens me" Phil 4:13
Yea, this house was taking forever to close. The Realtor I was selling to was in dispute with the Realtor he was selling too. From what I heard it was from a deal gone bad.
Finally after repeated excuses from my Realtor buyer I told him he had 48 Hrs to get it done. In desperation I contacted the Title Girl and she gave me the contact info to the second Realtor in this deal. Once I contacted him this deal closed in 3 days. Richard and I sent the Title girl some pre paid visa cards and pre paid dinners at the outback steak house and a $100 bill.
She didn't have any problem accepting this gift and now I get my addresses run for free.
But I have found another Title girl that does them faster and I've been sending all my addresses to her. Sometimes the higher ups send me emails wanting to know who the heck I am. I explain that I have done deals with your company and hope to continue doing so.
I need to send her a Cash gift to keep the good will flowing.
Rando
most interesting guy on dg.com,
upping my game lately btw, & true most bird dogs flake out thts my experience too its all a numbers game
Tony
Go faster do more! GFDM!