OfflineI dont typically post until the deal is actually closed. During the edge, we mentioned a little about a deal we were closing this week! well... it finally closed today and still made about $9K! We bought this property for $43K and sold for $112K, and after repairs and closing cost, commissions, etc, etc, we still came out with $9K in our pocket. With this property, we did some massive repairs! from structural, french drain, framing, you name it! The lot was worth pretty much the price we paid for, but the property had so much potential that we took our chances here. It even had a Basement which is not typical in our area and over 0.75 acres lot size. We had to do some electrical work to bring this property to code in addition to plumbing, drain and others.
Here's how everything started, the property was listed for $125K in MLS. In few days, we received multiple offers and locked on the "best" retail FHA buyer. WELL..... The deal took forever to close. The buyer was approved but at the last minute the bank cancelled the buyer's file for no reason. We think this bank is going through some financial issues. The file transferred to another bank and did close today after 3 months!!!
During this entire holding time, we had some major flooding in our area (3 days raining non stop), our basement flooded one evening!!! well since we were still under contract and had a first time buyer, we had to disclose what happened that evening. We did not want the first time buyer going through a flooded basement if we get more rain, which sometimes it's very typical in our area. We felt we could not sell this house knowing we had this significant problem, so we decided to add a french drain system to the entire house and seal holes in order to minimize this problem. We could have made over $25K profit but it felt good to be honest and play right, so got this fixed! We still made money and learned a lot about extensive rehab. We would have not known about the flooding basement if it would have not rained like the rain we had. Sometimes nature will play its card in real estate, and we are glad we found out about this potential problem ontime.
Hope this helps anyone going through similar situation. Thanks, Tom and Jeri
Tom and Jeri
www.TuCasaInvestors.com
www.TuCasaRealtyllc.com
Excellent job Tom and Jeri! I love how honest you guys have been in the entire deal - it's not easy to do. Many people say they are but when rubber meets the road, it's a different story.
How long did the entire deal take from beginning to end?
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Ken Siew
wow, if it was some people i know, they would have stayed quite and let the new home owner take responsibly.
Great job and shows your character, u took a 16k hit on your profits... wow great GREAT job, they were lucky that they came to you.
I'm sure the new owner feels really good about having bought the house from you, and I'll bet that you'll be the first person he calls if anyone he knows needs a new home. I'm sure you guys are also sleeping better because of it
Good things come to good people, you'll have more deals coming up. CONGRATS!!
Jean Maestre
The Maestre Property Group, LLC
"Our deepest fear is NOT that we are inadequate, Our deepest fear is that we are powerful beyond measure"
"Do or do not, there is no try"
"Every adversity, every failure, every heartache, carries with it the seeds of an equal or greater benefit"
Well done guys. Your ethics over money should be applauded. I would have done the same in your situation. A $9K profit isnt chopped liver. I'm working on my buyers list and find the right realtor to do REO'S Wish me luck.
MUCH SUCCESS TO YOU!
Tim
Yea it kinda stunk that this happened and it cut into your profit but you had integrity and did the right thing. I'm it helped that you did your numbers right so that still had a enough cushion even after the incident. Like you said you still made money and you can sleep at night. Keep up the good work.
Jason
You can never fail if you keep trying.
If you do something everyday that puts you closer to your goals it will never be a wasted day.
of your character....Honesty breeds Integrity.
Way to go!
Linda
"...be; not greedy for money....but eager to serve"
1 Peter 5:2
Way to go!
Linda
Its ALL about doing the right thing- ALWAYS!
Mike
https://tvallc.isrefer.com/go/RehabLite/renvestr/ Free tools
Great job guys. What you did for the buyer far outweighs the loss in profit. Remember we're in this to change lives, "the money is just a by-product"
All the best
Brett
We originally closed this property in Mid November '11 when we first bought it for rehab, but repairs took some time. Every activity was scheduled according to the availability of our contractors, winter weather, etc. It really felt good to add this french drain to the house. We can now sleep better and believe me the Buyer was very very happy with the outcome! they really love the house and we are happy bc they are happy. God is always there; at closing, I came to find out the wife of our buyer went to Mid School with Jeri (several years ago). You never know who you will be in your deals, especially in smaller towns. They were happy we did all this work for them, so I am sure this would turn into future referrals. Let's do the right thing as I believe that it will pay off.
Tom and Jeri
www.TuCasaInvestors.com
www.TuCasaRealtyllc.com
glad to see you! hope everything is going well with you. Let's chat sometime. Tomas
Tom and Jeri
www.TuCasaInvestors.com
www.TuCasaRealtyllc.com
nice deal... as you say, it's such a good feeling to do the right thing...you both set such great standards for the rest of us...
French drains are not difficult to install, and what a difference they can make!
I didn't know it rained so much in OK! hope it's over now...
Val
Valerie
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you two should be PROUD OF YOURSELVES !!!! you just showed YOURSELF and others that you have what it takes to administer the GOLDEN RULE!!! and this is what napolean hill considers the key to success !!!! you two are ON IT !!!!! its an honor to be friends with you !!!
jay
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Congratulations Tom & Jeri!
It pays to do the right thing!
It was a pleasure meeting both of you! (And of course everyone at The Edge Event was helpful and friendly and I'm grateful!)
Thanks for sharing this deal, it's motivating and helpful!
Cris
Great job, you set to make the profit regardless of what obstacles came your way at the purchasing price. As they say, you profit is really made when you buy the home. Again, way to go!
Moving forward daily will get you to your goals!
"You become what you study" - RTK Rich Dad Poor Dad
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Congratulations Tom & Jeri!
It pays to do the right thing!
It was a pleasure meeting both of you! (And of course everyone at The Edge Event was helpful and friendly and I'm grateful!)
Thanks for sharing this deal, it's motivating!
Cris
It is all about business ethics my friend and I am glad to see that you hung on to yours even with the drainage problem. Great job hanging in there when it gets a little dicy. Been there and done it, it gets a little nerve wrecking. Great Job...Jan
You guys are great! Your honesty will always pay in the end as of course it is your reputation, but I don't have to tell you guys that. Awesome deal, and glad you help to put in the French Drain.
www.tw4homes.com website
https://tvallc.isrefer.com/go/RehabLite/reigirl/ FREE SOFTWARE FOR WHOLESALERS, REHABBERS AND AGENTS! Present professional looking deals to buyers and lenders as well as run your numbers and get the ROI.
first off it was very nice to meet you at the edge. hope to see you there next year. it' all in how you look at things. you didn't lose profit. you did the right thing learned some lessons and still made money. what would've happened if you'd closed before the rain? we know it wouldn't have been intentional, but the fallout could've been huge. these buyers were first time, they may have been tight on funds. any way you slice it, it would've been detrimental to them and would've made them feel like you took advantage even though you didn't. again you not only didn't lose profit, you have first time buyers that'll be your bird dogs
. you never go wrong by doing the right thing if only in your heart.
keep moving forward, rob
whether you think you can or you think you can't, you're right.- Henry Ford
keep moving forward, rob
Thanks for all the input! We did learned a lot and believe things happen for a reason. This is why we all have to remember that we are here for a reason to help others. Thanks again!
Tom and Jeri
www.TuCasaInvestors.com
www.TuCasaRealtyllc.com
Nice to hear that you did the right thing! and still a nice payday.
Don't Wish the Past, Create the Future! - DH
Thanks for stopping by, yes the result felt good!
Tom and Jeri
www.TuCasaInvestors.com
www.TuCasaRealtyllc.com
it's always nice to know your friends have great integrity. what an awesome way to do the deal and make it win/win for everyone. as everyone has stated, it will come back to you multiplied. i imagine those buyers are telling everyone they know all about you and what you did. congratulations!
Linda, Army EOD Mom
you can follow my journal at http://www.deangraziosi.com/real-estate-forums/investing-journals/45351/...
IT'S ALL GOOD AND EVERYTHING IS WORKING OUT PERFECTLY FOR ME!
Fear equals:
False
Evidence
Appearing
Real
All that work to make only $9K. But $9K the right way TRUMPS any amount of money made the wrong way. Make sure your buyers know everything you went through to supply them their home, and be sure to "tickle" them every once in a while for referrals about other sellers, buyers, and potential deals.
It just goes to show you - Clear conscience and good karma will let you sleep better than any amount of money. Plus if the universe is any indication, you'll get that $16K from another deal later on down the road. Keep up the great ethics!
Paul: "I must not fear. Fear is the mind-killer. Fear is the little-death that brings total obliteration. I will face my fear. I will permit it to pass over me and through me. And when my fear is gone I will turn and face fear's path, and only I will remain."
Duke Leto: "I'll miss the sea, but a person needs new experiences. They jar something deep inside, allowing him to grow. Without change something sleeps inside us, and seldom awakens. The sleeper must awaken." - "Dune."
Thanks for your message, and it's been nice meeting you in person and having the opportunity to work together.
Tom and Jeri
www.TuCasaInvestors.com
www.TuCasaRealtyllc.com
Yes, the Buyer and us were involved when we did all the major repairs. They are aware of, and I do believe in integrity and do what is best. Especially in our small town, your reputation is priceless. We could have made much much more, but we gained more in value rather than money. I kinda understimate our profit, but we ended with a little over $10K after we closed our accounting on this property, not bad and we are happy. Now working on other stuff! Thanks
Tom and Jeri
www.TuCasaInvestors.com
www.TuCasaRealtyllc.com