Reat to Own Deal Closed 2/5/14 = $3760

Since my last post
- Put out bandit signs
- Mailed post cards to pre-forclosure list
- Viewed one bandit sign callers property
- Discussed one property with my mentor.
- Added several buyers to my buyers list

Update my buyer on my most recent wholesale deal is back in town and ask to close this coming Thursday. I called the attorney and Title is in and we are set to close.
I discussed closing with seller and he agree to take $7,800 instead of $8,000. So I will net $1700 on a $$7,800 dollar deal. Not a lot but its quick little deal and the buyer wants me to sell him more. I have already located one property that I will be looking at tomorrow.

*keep taking action, study, ask questions and make offers.

Hope that motivates someone to continue to take action.

1 hour before closing buyer called and wanted his attorney to review the contract. He pushed closing back from a Thursday to the following Monday. The following Monday he called and postponed it 1 week. One week later he said his partner did not want to move forward on the deal. He said keep the $500 earnest money. He asked me to find him a different home for more money and less work.

New deal #2 closed.
Details are
- I have a friend that's dad had a vacant investment home. (also a townhome that is vacant).
His father is out of the country and the son had no time to market the home.
He did not want to list the properties. He said he would do owner financing.
I told he could give me a contract and I would sell the home on a lease purchase or lease option.
I put the home on craigslist and got it under contract within 5 days.
Owner wanted 7k down and 70k purchase price.
After negotiating I got a contract for 10k down. 3k to me 7k to the seller and turned the deal over to the seller.
I could have probably done a sandwich lease option but I wanted 3k and to move on to the next deal. I was not interested in managing this client home, happy to take my fee and on to the next one. I am also marketing his vacant townhome.

Bandit signs still generating calls in my area (metro Atlanta)and check out those vacant homes.

Hope this helps someone to move forward and take action.

Seller called wanting to terminate the contract and sell to a family member.

This happens so I have to say focused and move on to the next deal. Just glad I has another one in the pipeline to close quickly.

Getting with seller tomorrow to get termination agreement signed and perhaps keep him as a future client.

Not sure what else I can do about a seller wanting to terminate.?

Any thoughts from more experienced investors is more than welcome and appreciated.

The buyer backed out, then the seller wants to sell to a family member. They both are fine with me keeping the $500 non-refundable earnest money. OR, should I split it with the seller and try to build a relationship for the next deal? Any thoughts from experienced investors?

This is a wholesale deal I closed this Friday (AUG. 23/2013.

Here is how I did it.

- I put out bandit signs (I buy houses - Any Condition - Phone #).
- I received a call. - The seller had a dilapidated home in Atlanta.The home had a roof falling in in the back of the home.
- I got the home under contract. I used the contract found on this site. The contract was for 8k.
- I put out bandit signs (House for sale - 12K - Phone #)
I put on code lock box on the house so I did not have to drive to the property top show (Cost $28 at Lowes)
- I blasted it to my buyers list. My buyers either did not like the area or thought it was a tear down and not interested.
After many calls I had a guy give me $500 NONREFUNDABLE CASH with a signed contract assigning the home to him. After Title was done on the way to closing buyer backed out. He did not ask for money back. He knew he lost me time a maybe other buyers.
- I put out more bandit signs (House for sale - 12K - Phone #) and put ads on craigslist.
- I got a buyer from my ad and he bought the house, I had to renegotiate the deal down to $5,800 and selling it for 7k. The buyer is selleing the home to Habitat for Humanity.
I received $500 from 1st buyer that backed out. Then $1200 from buyer that actually closed.

Hope this helps someone to get started.

This deal was super basic.
- Put out I buy houses BANDIT signs.
- Got the house under contract using this sites contract.
- Put out House for sale BANDIT signs- Put a few ads on craigslist.
- Assigned the contract (twice).

*Get non-refundable earnest money. If I had not I would have lost time and energy without any money.

I di

Hi Dan

You have broken down each step so nicely, it helps a newbie like me.
Thanks for sharing your deal.

In my area there is a house on sale, needs complete rework, except the walls everything needs to be reconstructed. The asking price is 45k and after looking at this house I cannot give more than 3k, but there is tax lien on the house and the person who purchased it has ben paying the tax for last two years , so I think if nobody buys the house the lien holder gets the house anyways.
PTax paid is $381/pm.. I will try putting the offer and may do the same like you did, if only I can out it under contract.

Bimal

Things may not always go as planned but if we stick to it somehow it always works out. Great job!

Good luck on that one.

Best wishes.

I agree.

thank you.

Nice job Dan that's how it's done !!!!

Unfortunately it took me a few years to hear you tell me that lol.

Well I will have more to come. I still am grateful for your encouragement over the last few years.

Thank you Jay.

FORTUNATELY you stayed the course and stayed persistent !!!
You deserve all the success that awaits you !! Keep the momentum going as your in " the zone ". Don't stop for a minute Dan.
Nice job !!!
Jay

Thanks for the inspiration and keep up the good work. It does help!! So do you not use a realtor? How did you build your buyers list, and did you do that first or found the seller first?

Thanks in advance for your help!

Here is how I did it.
- Found a seller that would also consider Rent to Own.
- Got her to sign a contract allowing me to buy the home for 216k or to rent it at $1500 a month. (I was 100% honest up front & told her I was assigning the contract to another buyer).
- The contract allows me to assign the contract to another buyer and have them pay my fee. Hard for the owner to say no to a full price offer without them paying a fee or any commissions.
- The contract allows me to put a sign in the yard.
- I put the home on Craigslist and bandit signs at most intersection near the home.
- I put a code box on the home (with owners permission and the home was vacant).
Took a lot of calls showed the home and got the home under contract with the new Rent t o Own buyer.
- This buyer is in law school and wanted to buy but could not qualify for 3 years until he gets out of law school.
- He wanted to do a wrap around mtg. but that could have triggered a "due on sale" clause". So they agreed to do a "contract for deed sale".
- The attorney put together a contract for deed, prepared a note HUD1 and we closed.
- I received $3,760 at closing.
- No money down deal. Only cost was for some bandit signs and gas back and forth. Maybe $200 total and about 30 hours in the deal.

Hope this helps someone else to do their next deal.

Thanks for sharing the details on your real estate deals. If you don't mind could you explain the details of a contract for deed sale?

This was a contract drawn up by the attorney were the once the buyer completes the terms of the contract they then get the deed to the property. In this case they have 4 years to get a loan. They have to meet all conditions of the contract during the contract period. the seller can sell, or get lender financing at any time during the 4 year period.

Hope that helps.

You have momentum bro keep at it ! DONT LET UP !!!! Go for it !!
nice job Dan !!! EXCITED to hear man
Jay

Way to go! I saw somewhere where you mentioned me in your post, but I couldn't find it. Look how far you've come, tho... great work!