OfflineHello DG family,
Well, do I have another story to tell you! 
Guess what, this one is also riddled with twists, turns, ups, downs and craziness too! 
I tell you; I attract these complicated deals! One of these days I'll post you an extremely boring deal. But, NOT THIS TIME!
My deal funded yesterday, recorded today, and is finalized on Monday. That is because this deal occurred in Los Angeles County, which has the 24 hour wait period between funding, recording and re-recording.
Now, we all know REOs aren't assignable, so I didn't assign this one. But I also didn't double close and I didn't sell an LLC or a land trust. I added my buyer to the contract, we closed together, me with 1% interest, them with 99% interest. 
It funded completely with their money. I will quit claim deed it over to them completely on Monday and then my funds are released to me for distribution. Both the quit claim deed and the money are held in a holding account.
To get this deal I used NONE OF MY OWN MONEY. I found the deal, got it under contract and needed $10K EMD. Have a buyer I work with and he'll get a really nice return on it. Here are the numbers on this deal:
PP: $975,000
ACTUAL APPRAISED ARV VALUE: $2,200,000
REHAB and UPDATING: $300,000-$450,000 depending upon finishes.
Closing costs: $10,000
Holding costs: $1500/mo
Project should take 6-9 months through sale
Profit to end buyer: $500,000-$650,000 if sold for the appraised value; but with this house, he could make it very grandiose and go for the high $2M-low $3M sales price EASILY, so he could make MUCH more. 
.
Fees to me: $110,000 (included EMD reimbursement), $10,000 goes to the gal that brought the buyer, $20,000 goes to the partner who lent me the $10,000 EMD, plus the return of his EMD; so he makes 200% on his money, I get $70,0000, and I’m giving my intern who picked up all my work while I dedicated myself to this project 100% $3500.
Now, this deal was not straight cut and dry. This property has some foundation issues and is a 3 story house. I had all the contractor bids done and a structural engineer come out for this one. I also provided my buyer with trusted contractors, and the foundation repair guy who has an amazing technique he uses to fix foundations which saves the buyer over $150,000 in the foundation repair.
I actually had this property completed in ONE day, but then had a partner fall out after widdling down 2 1/2 weeks of my contract. Good thing is he had the appraisal done on it. Then, I went through NINE of my own high end buyers on my list who 'absolutely wanted it 100%’ and fell through, claiming the foundation issue was too much. Had a few other wholesalers go through 4 or 5 other buyers the same way, even my partner who fronted the $10,000 EMD went through 2 of them and the initial first one. The foundation problem was always supposedly KILLING this deal. 
But here’s the KICKER. I have the absolute best agent in the world 
, and she would let me know ALL the names of the people who would call her up and go behind me to let her know when I fall out of escrow, they'll buy it and attempted to put in a backup offer. I was upfront with her and told her everything that was going on, the name of all people I was dealing with, and she saw how many of these people tried to circumvent (go around and cut me out) me. Its disgusting how many sharks are out there and how things are so CUTTHROAT! I will add pics of my wire transfer and sanitized HUD once I get them. Won't be until Monday.
BUT, I also wanted to share ANOTHER great thing about this. I was actually able to raise FULL CAPITAL for this project, both the purchase price and up to $450K for the rehab/upgrade. NONE of my own money. 50/50 profit split. As a backup, I made it so I was able to close on this. I not only did THAT, but I also had a hard money lender I’ve worked with before coming to me BEGGING to do the project 50/50 with a profit share and of course all their fees, points and interest, AND all the payments FRONTED upfront.
The sky is the limit. ANYTHING is possible. When you get a GREAT deal, money comes out of the woodwork. You do NOT ever need to worry about finding money to close deals, EVEN million dollar deals like this. The more and more I do this, the more I realize how true that is, and the EASIER it gets for me to do the longer I do this!
wanted to let you know; THIS DOES WORK, and yes, in SOUTHERN CALIFORNIA where everyone swears you CAN’T do it!!!! And, yeah, I added a few extra 0s to the equation, and it STILL works. I have about 100 hours into this deal because I worked my TAIL off showing it, getting estimates and working with the agent, buyers, and ultimately screening all the buyers.
My agent didn’t have to go through 20 contracts of buyers who would possibly have fallen out of escrow because I was able to screen out the ones who weren’t truly serious. My AGENT is a star and was able to let me know who I can’t trust. Ultimately what got this done was my absolutely kick butt TEAM. And an incredible foundation contractor, who gave the buyer references to call to put him at ease.
I thank Dean for his awesome teaching and influence, my partner, my buyer, my birddog, my intern and most of all GOD who is my savior and becomes more and more prevalent in my life every day! 10% of my profits go to God.
I have 2 more closing this month Yes, right here in .... SOUTHERN CA!!! ...
GOD IS SO GOOD!
It is CERTAIN I WILL SUCCEED!! !YYYYYYEEEEEEE HAAAWWWW!
Thats the Tammy I know and who said this cant be done!!!!!! up up up and way, great job Tammy, on to the next, Jim ( you dont have time to get old in this business and the people you meet are truely awesome)
jbischoff
All I Can Say Is WOW!! Nice One. You are a True Inspiration. Doing deals here in Calif are a little tough but we just have to put in the extra work and Never Give up
Like Dean Says having a Good power Team is so Important. God is always at the top of our Power Team,and Always Takes care Of Us 
Looking Forward To Hearing About Your Other Deals You'll Be Getting Done,
Darren ( Yosemite Guy )
CONGRATS TAMMY! I'm a newbie in this RE Investment Business. I'm right here in So Cal in between San Diego & LA. I'm also a RE Broker trying to learn the Investment way. You just made my day. I'm so happy for you! I pray I'll be able to do this as well real soon...
P.S.- Thanks for sharing how you did the contract. It was not an assignment... Thats one of my scary challenges doing this in California.
Jacqueline Bonaparte
Jacqueline
Way to ROCK !
It's beem fun warching you grow in your rei over the years. You've come a long, long way and inspired us all. Thanks for taking the time to share the complicated details of your deals...it's always enlightening to learn how a deal is actually put together Your $70,000 Profit less your Intern's $3500 at the 100 hrs you said you put in net you $665/hr!! Way to Go, Tammy! Will be looking forward to hearing about your future deals. Semper FL D-LO
Loving what I am reading all the way from the east coast in NYC, NY your post only re enforces that determination, along with working with the tools Dean gives us and staying committed makes it that much possible even in tough markets.... you rock and keeping up the great work!
Watch your thoughts, for they become words.
Watch your words, for they become actions.
Watch your actions, for they become habits.
Watch your habits, for they become character.
Watch your character, for it becomes your destiny.
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Our Heart's Desire must be nurtured by our mind,to give birth to common sense, that will enable us to seek out the path less traveled, with the greatest Personal Growth. -J.R.-
That is a good deal. Thanks for the tip on how to legally assign an REO, I was wondering how to do that without a double close. I haven't really done much by way of wholesaling yet, I have been working mostly on by and hold stuff.
BAM!!!! That is so cool Tammy!!! And they said you couldn't do it!!!!! LOL Oh yes you can! This is a message to us all! Yes cannot and will not be defeated! I'm so proud of you! Just amazing my question is how did you add your buyer to the contract?
"Don't tell me I can't, Tell me how I can."
Wow, this thread was reborn during the web outage. Cool! Donna, on this particular deal, I did an addendum to the contract adding the other buyer. SOMETIMES they will allow you to switch the buyer; this was not the case in this one; so I stayed on title at closing. But, what the bank doesn't care about is the vesting. So I told escrow to vest 99% in the Buyer's name, 1% in my name. (One could also do a land contract as the vesting, but the bank will want to see the documents showing the buyers in the trust.)
After closing the $100K was put in escrow with my signed quit claim deed removing all my interest in the property. Once the deed was recorded, the $100K was released to me.
(If in a land trust, changing the beneficiaries after closing is a simple document as well).
This is just another creative way of doing things that 'are not possible'. I don't even know what those words mean.
I've got another one like this I've been working on for 10 months now (short sale, divorce, city liens, IRS liens, 2 mortgages). I think I'm going to keep it and do the rehab though. I have this one for $680K. ARV is $1.4M. Needs less than $100K cosmetic work, landscaping and pool repair. About a $600K profit. I THINK I may be able to live with that, and it'll be worth the 10 month wait.
~Tammy-jumps out of perfectly good airplanes with Rina.
IT IS CERTAIN I WILL SUCCEED IN THE NEW DIRECTION IN REI I AM TAKING!
Now that's a nice payday! I'd wait 10 months on a deal for that kind of change. CONGRATS!
SEMPER FI
GET SOME!