$36,500!! Did it just how DEAN says to do it!! CLOSED 5/14!!!!!

Can a probie be proud? I am so proud of you. Dean will LOVE this one.

Hi Michael got to get to that success academy and thanks for sharing, isnt life a blast, Jim

Thanks you two, added to the REglossary in my sig.

as we have done over and over and over...

"When a buyer puts down $45,000 non refundable they WILL close. Also this was a rehabber that bought, she will fix them up and sell them to the "end buyer"."
Thats the ticket

DONE DEAL

GOOD JOB Michael

So if I understand this correctly, if you don't provide the earnest money in 48 hours, the deal is dead and you've risked nothing? But if your end buyer provides the earnest money within the time frame, the "7 day inspection" escape clause is irrelevant because it was a non-refundable earnest money deposit required in 48 hours?

Right, if I did not have earnest money in the 48 hours the contract would have been void. Only my reputation was at stake. Had I put the earnest down like I usually do I would have had the inspection period to find a buyer or back out and get my earnest money back. How ever I was not going to put MY $45,000 down OR risk having my buyer back out and kill this deal.
I had my buyer in the properties on Saturday and committed to buying on Sunday. Had an attachment to the original contract drawn up and signed by the seller stating the earnest money would go hard when received, with me waiving my inspection period. I then assigned that contract. Easy as pie.

Michael

Congrats to you! How do you exactly prepare a contract to buy multiple properties at once? I'm facing a situation in which a landlord is seeking to sell me 5 of his rental properties in NE Philly as a package deal.

Anyway that works!
How exciting!!!

Just ask the seller (or the agent) how they would like it written and go for it!

Tina1, thanks darling! I've definitely been beating myself up with creating a "package deal" type of contract. I really seem to complicate the simplest matters - guess anxiety's to blame, lol.

It's very exciting to know that these kinds of deals are out there, just waiting for action takers to move in on them...but even more exciting knowing that I am now being mentored by you!! This is going to be a FUN ride!!!

An amazing job you did on this deal! You are really doing a great job!

Ryan

Get ready to rule Ohio!!

Michael

Talk about a great deal for buying in bulk... Great job, Michael. Thanks for the inspiring words, love reading your posts. I do have one question though, what the FMV on the properties?

You're welcome!

Yep, sometimes we just have to get out of own way!

How did you build that great of a buyers list?

AMAZING Story! How inspiring! Thanks for sharing !

I look for buyers constantly and have a massive marketing plan just like what Dean teaches. With a few variations for my market place. You have to get out there, take action and refine your marketing to find what works in your area.
There is a post on DG somewhere that is something like "100 ways to find buyers".

Have Fun!

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

The FMV as/is was $300,000 to $325,000 each. We really don't care about that number. What we sold the properties on was the potential ARV. After popping the tops the ARV was $600,000 to $625,000 each. With a construction cost of $150,000 each. With just a standard rehab/remodel the ARV is $425,000 to $450,000 each. With a rehab/remodel cost of $60,000 each.

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

Were those the Clayton properties Mike?

Yes, 1901, 1911 and 1921 S. Clayton St.

Michael

Please define when you have a chance

Thanks!!

Scrape = A house that is bulldozed and a new house is built in it's place. Purchased for land value only.

Pop Top = Usually a ranch that a 2nd story is added to gain additional Sq. Ft. and increase ARV.

Michael

WOW !!! Nice job man!!! You are ROCKIN IT !!! It sounds like this just gets easier n easier for you. Way to make it happen over n over ))$$$$$$ NICE !!!!!
Jay

congrats on your deal. I just have one question as I am new to this. Every contract I have ever signed needed a deposit at the time I signed the contract. How do you handle that to not use any money out of your pocket?

So I take it that you new this certain buyer would want to pop the tops so you didn't worry about the SFV (sell fast value) and focuse strictly on the ARV? Two more questions: 1. What is the "standard rehab/remodel?" 2. What are some of the first, basic things you look for to be renovated/remodeled on the first walk through with the owner (before even putting their home under contract) that you know you'll point out to them?

Jay, Thanks! The more we do the more we DO!!

Rich, I have a buyer lined up to cover the earnest money when due. When you make an offer earnest is not required. When the offer is accepted you have a certain time frame before earnest is due. Usually 24 to 48 hours.

Alton, I always focus on ARV when I wholesale or do fix/flips. So do my buyers.
Standard rehab/ remodel is when you use the existing structure and do what ever rehab/remodel is required to bring the ARV you have determined.
Basic areas that are a MUST in my area are kitchens and baths. Fully updated to the neighborhood standards. In houses over $200,000 they need tile, stainless appliances and granite counter tops for example. In a low income areas painted appliances and Formica counter tops are OK.
Other things are furnace condition, water heater, roof, windows, flooring, paint inside and out, landscaping.
I don't point out anything to the home owners. I simply make my offer and explain that it is going to take X amount in rehab to sell the house for X amount so I must offer X amount. They say yes or no and on to the next one for me!

Michael

Okay thank you for the explanation. I learn so many new things from this site daily.

Michelle

what a deal. it just goes to show driving for $ works, but what makes the deal is having qualified buyers in place.
keep moving forward, rob

Thanks Rob! I find it is really a two part deal. Finding and knowing what a real deal really is AND having REAL cash buyers! Every one can do this IF they take REAL action and develop the TEAM and SYSTEMS that allow you to repeat.

Michael Mangham
Mentoring/Team Building Nationwide
MD Home Acquisitions LLC

Hello Michael. I was looking at your post here and I am definitely inspired to do this same thing! A lot! lol Well, I see that you have mentioned that it costed no money out of your pocket... If that's the case, where does the EMD come from in your statement, "With a non refundable earnest money (certified funds) check of $45,000!!"? I'm not exactly sure how to understand the whole EMD thing yet.