OfflineWell, it has been awhile, but I just closed on my first deal this past Friday. I picked up my $15,000 cashier's check on Saturday morning. I was so excited and just kept looking at the check - saying this stuff really works, this stuff really works and I can do this.
I want to personally thank Jen Gray AKA: Bama Girl for all of her inspiration and support! And who kindly told me to stop organizing and over analying every deal and just jump in with both feet.
The deal:
I received a bandit sign call from a seller who was interested in selling his house. I knew the house and it's value very well as it is located near me. We negotiated a price and met an hour later so I could look at the house, take pictures and sign a contract. I decided to do an Option to Purchase contract.
Later that day, I started to advertise the property and really believed I would sell it to another wholesaler who would rehab and flip the property. The next morning, I received a call from a retail buyer who wanted to meet that day, but I told her I was waiting on a key to enter the property so we agreed to meet later with her husband.
Four days later we met at the house. We agreed at a purchase price and they signed a Purchase Agreement there at the house. Later, I met with the seller and signed a Purchase Agreement with him to lock up the deal.
Since they were retail buyers with a loan, the bank would not accept an assignment contract so Jen discussed the IEE with me and a possible Promissary Note from the Seller. Needless to say, the IEE worked. I was a little nervous about discussing my profit, but both parties had no issue with my profit. I would love to say I was an awesome negotiator in this case, but I allowed both parties to do most of the talking and they basically picked their prices.
The Deal:
ARV: $180,000
Purchase Price: $123,000
Sells Price: $108,000
Assignment Fee: $15,000
The buyers were not concerned about any repair costs - they are completely rehabbing the house to make it fit their families' needs.
This deal was truly a Win, Win, Win for everyone. Everyone walked away very happy.
Thanks to Dean and all of the DG family. I am working on Deal #2 which should close this week.
Congrats! Wow that's a HUGE check for an assignment and first deal, great job!
Dominic
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Congrats on your first of many deals im sure lori. One question im not sure i understand what the promissary note was for could you explain that to me ? Thanks
Frank,
" you make a living with what you get but you make a life with what you give "
Frank,
I only used the promissary note as a back up in case the IEE did not work. I really wanted the deal to work, but the buyer's lender would not accept an assignment contract. I wasn't convinced they would accept an IEE either so I asked the seller to sign a Promissary Note for me just in case the IEE fell through. He agreed.
If anyone else has another suggestion in case an IEE doesn't work, please let me know. I am curious if there is another option out.
Thanks everyone for the congrats and encouragement! I love this website and the DG family.
Lori
www.cthillproperties.com
Very cool and CONGRATULATIONS!!!! I can't wait to see my first $15k check
Have a great week, and keep up the great work!
Renae
The Browley Team
Working Towards Success!!
congratulations on the deal!
go get em'!
Linda
"...be; not greedy for money....but eager to serve"
1 Peter 5:2
Congratulations, Lori! Your story is very encouraging! Great job!
Hard work pays!!!!
Cris
Hi Lori "how sweet it is", for a three pounder starting out your really coming along!!!!Keep that green wagon moving and isnt it so wonderful to do those win- win deals and everyone walks away happy, gee isnt life a blast!!!!!Action, action, action is what makes it happen, cant walk unless we learn to stand and cant stand unless we put forth the energy to try, cant win at this unless we are willing to Learn and Try!!!!!! We all are so very proud of you and it helps the the rest get over whats holding them back, you are an inspiration with your honesty and effort to try ( as well as your husbands support) and look what really happen because you were willing to try. What a realestate family we have here with Dean and our fellow DGers, cant wait to hear about your next deal ( by the way my Mom is from Raleigh, North Carolina)!!!!!!!!!!!Have an awesome day and happy investing, Jim
jbischoff
way to go! great first deal! Great any deal for that matter...
Don't Wish the Past, Create the Future! - DH
Congrats on your first deal!!!
Josh
"The best is yet to come."
"Never let someones opinion become your reality"
If you are going the promissory note route, in the future you may want to consider placing a second deed of trust on the property for the amount of your assignment fee. That way you get paid off like any other mortgage holder at the close of escrow. It is much cleaner.
Way to go on your first deal Lori!
To put that in perspective, that's more money than a lot of people make in 6 months.
What a great mentor you have in bamagirl too, she's a walking encyclopedia of RE knowledge.
Can't wait to see your next deal.
Congrats!
Mark K.
Life Disclaimer: Past Failures are NOT indicative of Future Results.
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You're such a winner Lori! So stinken proud of you girl!! lol
I KNEW you could do it!!
Way to MAKE it happen!! Just rinse and repeat! lol
Great job!
Jen
That's a great deal you created. Bandit signs really do work. Keep making it happen.
Joe
Think less, Do more, Get results. - Dean Graziosi
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Awesome job Lori! You are off to a great start!!!
May I ask where you advertised the property?
Way to go!!! Very encouraging for me since I haven't done my first yet. Keep going
When you trust in yourself, you are trusting in the wisdom that created you.
Awesome deal you made there.
I am just getting started even though I have thought about and over analyzed REI for years. I would like to talk to you more about your deal. Thanks for the inspiration to get moving.
CONGRATS to you ! You are exactly the inspiration I need to turn my hopes and dreams into reality.....Thank GOD for positive people !!!!! I'm looking forward to my 1st deal, and I'm excited just reading about yours ! Thanks for posting and I'm looking forward to reading many, many more !!! KEEP IT UP !!
GOD BLESS
Carrie
Dave,
I advertised it on Craigslist and sent it out to my cash buyers. Craigslist was the answer on this deal.
Lori
www.cthillproperties.com
You have a great story!! Thank you for sharing! I want this to happen to me too! Enjoy your day!
Enjoy your day!
Barb
"I feel alive when I'm being creative." "I want to use my talents in a way that will be fun, fulfilling, and really profitable."
Congrats Lori! Gives me a lot of motivation!
Keep up the good work!
Teresa
College Station, TX
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"Declare that you will prosper despite every difficulty that may come your way. Don't just survive; thrive!"
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Sweet!!!!
Wat a super deal...
- Look Out World, I smell my FIRST Wholesale deal coming...lol...
- "Ether we evolve or dissolve, but change is inevitable". - Davillion T. Royal Ward
- "All men dream but not equally. Those who dream by night in the dusty recesses of their minds wake in the day to find that it was vanity; but the dreamers of the day are dangerous men, for they may act their dream with open eyes to make it possible". - T.E. Lawrence
It puts a smile on my face to know us new investors can make good money in RE.
WOW, Congratulations on such a HUGE profit for your first deal. That's great, please feel free to private message me. I would like to know wat contracts you used & just a lil push towards closing my first deal. I just got off the phone wit a Home Owner from www.forsalebyowner.com... I was a little scared but confident in asking questions. It wasnt bad at all. This is a people business, but my ONLY FEAR IS THE DREADFULL PAPERWORK...lol...
Just need some practice i guess...
- Look Out World, I smell my FIRST Wholesale deal coming...lol...
- "Ether we evolve or dissolve, but change is inevitable". - Davillion T. Royal Ward
- "All men dream but not equally. Those who dream by night in the dusty recesses of their minds wake in the day to find that it was vanity; but the dreamers of the day are dangerous men, for they may act their dream with open eyes to make it possible". - T.E. Lawrence
Great work-on to the next
Mike
https://tvallc.isrefer.com/go/RehabLite/renvestr/ Free tools
Lori's right, newbies need to see that all this does work. (I'm a Newbie) Keep up the good work
Great first deal!
Now go out there an do it again!
... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...