OfflineThis was an MLS listed Estate sale. We negotiated a buy price of 278,500. I put the deal out to my buyers at $285,000. There was not much margin in this deal but I will take $6500 all day long. WELL, so I thought. No one wanted the deal at that price. I had an offer at $275,000 from one of my very good buyers. A $10,000 price reduction was needed. I asked for it and the seller came back with an $8500 price reduction. So in order to make this deal happen I knocked $1500 off my fee. There was the $10,000 reduction my buyer wanted! We signed the assignment contract with $2500 non refundable earnest this morning. Closing is set for Wednesday Sept 11th.
So, I made $5000 on this one. First deal of September.
I gotta go make some offers!!
Michael
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
Thanks!
Michael
Knowledge is power, but execution trumps knowledge. Tony Robbins
http://www.mdhomeacquisitions.com Seller site
http://www.mdhomeacquisitionsbargainhouses.com Buyer site
http://www.mdhomeacquisitionshousehunter.com Bird Dog Site
http://www.mdlodeals.com Tenant/Buyer site
Congratulations Michael! You are really making the 25/1 work!
We are also in CA, in the greater Bay Area, and we have not been able to do the 25/1. Whether it isn't working because we're in the CA market or because of something we aren't doing -not sure.
We are doing deals. And you were right on the money about how we're doing it. We are in month 8 of a direct mail campaign to 3000 out-of-state owners of CA homes. At this point all 4 of our deals were from this group. (We signed up in Nov 2012, but had a lot of learning to do. Our first 2 deals were in late July/early Aug. Deals 3 & 4 began in Sep but will close in Oct.)
BUT, we are not making many offers. We haven't found many where the numbers work, and knowing how competitive it is out here, has stopped us from trying for the ones we're sure won't go for number where we can make money. Which is not what DG recommends.
I am working on that thinking this week. I read/heard yesterday that we shouldn't be doing our sellers thinking for them! If we don't ask, they can't tell us no - BUT they also can't tell us yes! So it's time for ME to begin figuring out how to do the math, and make an offer that works with our numbers, even if it isn't likely to be accepted. Since there are three of us, each with our own specific skill set, working together on this business, it's been easy for me to avoid the "Danger" zones. That ends this week.
We'd be happy to talk to other CA DG family to see if we can't all learn from one another. Anyone that wants to chat, send me a PM.
Michael, again, congratulations and thanks for being so good about sharing your know-how!