OfflineHey everyone, I have been meaning to type this up for a week or so, but just got busy house hunting.
I wanted to take a few moments to tell you about another deal I am signing at the title company in two days.
I was going thru the Craigslist postings and saw one that caught my eye about four weeks ago. The house, a 3/1 about 1000 sq ft, was posted for 17k, only a street name given and there were some pictures. The pictures were very small, but I saw some things I love to see. First, the exterior looked good, but the trees on the property totally covered the house, it was virtually invisible. Next the interior pictures showed three feet of "stuff" thru out the house. I am not exaggerating, I mean three feet throughout the entire home, all floors. The home was also listed as an inheritance with a motivated seller. My curiosity got the best of me and I sent an email to the seller to get more information. I was in the middle of looking at two other deals and realized a few days later that I had not heard back from the seller.
I got more curious and used google earth's street view to scan the entire street and I was able to find the house number. I did some Zillowing and such and also took a look at the County Auditors site to learn more about the property. The current owner held the deed free and clear.
Friends, now I was EXCITED !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
The 17k house was worth at 75k everyplace I looked. The comps in the area upheld the numbers. Now I wanted to know more, but I had to travel out of town for my real job. Fate took care of me, While I was sitting in the middle of Texas nowhere (long story) with no bars on my cell phone, it rang. It was an assigner who had the contract for the home. Because of poor cell reception, I could only set up a date to look at the house and not much more. When I got back to town, I went to give it a once over.
Now friends, listening to Dean was critical here, when I got to the house I actually met the owner and before I even went in, we had talked over 45 minutes about everything, BUT the house. I knew he wanted to move fast, I knew that he wanted to leave Ohio and go to Florida, I knew he had no family in Ohio, I knew he wanted nothing to do with the house, and I knew that only one other person had even looked at it in 3 weeks.
Finally I ventured into the house and had the experience of a life time. Friends, I have been a construction inspector for 20 years, I have climbed up sanitary sewers, been in the worst of the worst, with this house my standards changed, it was the worst of the worst!!
The first two things that I saw were first the "stuff" every square inch of every foot of the house was filled with useless junk, old clothes, mattresses, everything you could think of. There were paths thru the house to walk about. Second, NICOTINE, it was literally dripping from the ceiling in big brown drops. I actually told the seller I decided to take a good look at the outside first, just to give myself a chance to clear my head and think. I had driven the neighborhood an new it was very nice and also that the outside of the house was nice (thank you google earth for giving me a head start on the looking) so my walk around on the outside was only to think. I got my head on straight and went back in, looking at the mess from an investors standpoint.
After looking around I decided that the stuff was just that, and about 500 to a company would get the house cleared out just fine. The nicotine could be sealed, primed and painted for about 1k at most. The only thing left was the bathroom, just a wreck and needed to be gutted, about 2k or so. With other things I figured a rehab budget of about 6k by the time I was done.
So now I had a 17k house plus 6k rehab in front of me. 23k that would sell for 75k. A great deal in itself, but I was hoping for a better deal. I called the assigner and told him about problems I saw and that I could never invest 17k in the home. I gave him a detailed list of every single item I saw. Granted some of it was petty, but it was accurate and verifiable. He indicated that he had never heard these things were wrong and that his local bird dog had never said anything like this. I simply said that he could verify the entire list himself. He also asked what I would pay for the house, again I told him I really did not want to get into the project, and he continued to press, taking the gamble I said, I might consider half of the 17k. Talk about silence on the phone. Well he thanked me and hung up.
I figured the deal was dead, but two days later I got an email, short and to the point. "How about 12k?" Now the wording of it caught my eye "how about" not bottom line, not lowest, just "how about". I decided to go for it and emailed back 9k bottom line, cash, close anytime the seller wants. BUT I need an answer in two days. Well a few hours later I got my answer, "sold".
So now I have a 75k home for 9k plus about 6k in rehab. Yes I am grinning, because I and thinking about the profit form this one. Even if I sell it for 50-60k who could ever complain about this one.
One other point I wanted to mention, I said at the beginning that this home was an assignment deal. I found out after the deal was set that the assigner got 3k for the deal. (the 3k was paid out of the 9k I offered) Even doing just the assignment a quick 3k is a sweet deal for them also. You can make money doing assignments!
Friends, I think there were a few key factors to this deal that made it happen for me.
1) DOING IT!! not sitting back and thinking about it
2) Google Earth was a major asset to let me find the property and get some research done. So many people are only listing the street name in order for you to be forced to call them.
3) TALKING to the owner, and I mean just talking.
4) Keeping a clear head when I walked in, taking the time to see thru the mess and look at the house.
5) Not being afraid to go low on the offer, the worst case is they counter or say no, there is always another deal to be made.
Sorry for the long post, but I wanted to set forward the whole deal for you. I am happy with it to say the least and I do not think it is unique at all. I have another property right now I looked at weeks ago and decided against because the price was high, but I noticed the house is now being listed four times a day and the seller called me last night and asked me to make an offer. I will post that one if it comes to be.
Don't be afraid to act !!!
David
thanks for a great success story and sharing so many details of the deal. When people post like you are in actually gives a feeling of experiencing it ourselves which adds to the confidence level in going out a doing our own deals. Keep it coming and thanks again!
www.adeptpropertiesllc.com
my story:
http://www.deangraziosi.com/node/10404
good job david! thats great to hear! Keep us updated!
Success and Nothing Less!
Keep up the good work. Keep us posted on your progress.
Dedicated & Motivated
Great deal and great post with all the details and thought processes !
Good for you, for getting off the couch and onto the deals - NOW you are all fired up !
The rest of us need to go... and just do it ... just like Dean said, go thru the process of offering (at least), even locking up an accepted offer - so then you know what you are facing. Even if you pull back at the last minute and tell them this deal isn't for you - you will know what you have to look forward to. But the momentum will begin and like David you won't want to stop once you get it going ......
All the best to you and the rest of the DG family - NOW everyone else, lets get OFF the couch !!
In His strength and time -
d
I have strength for all things in Christ Who empowers ME [I am ready for anything and equal to anything through Him Who infuses inner strength into ME; I am self-sufficient in Christ's sufficiency]. Phil 4:13 AMP
Sorry i am late looking at your post, but you don't make money sitting at a computer while you could be looking at deals. i am very impressed at the fact the condition of the house did not deter you from making an offer. Great way to jump in to see if you swim or sink. I wish you a ton of luck with the rehab and a ton of $$ after. All my best...Jan
It was long but I like it. It was written in detail from start to almost finish. Hope every team will write the same...not only telling the scenario and nothing happened at the end....
It was written in detail...and that is what we newbies are so inspired when reading it..dom
Good for you !!
Paul
Thanks, David, for sharing your fantastic story. This is a great example of how we can all make it happen in Real Estate. With all of the houses coming up for grabs on the market these days, it's only a matter of time before we all cash in - if we get off the couch. I'm new to Real Estate, but I'm pumped to start making it happen. David's example is a real boost to our DG family of success stories. David, please keep us updating on your progess.
Cheers,
Reed from Texas
Awesome results...just for asking for what you want. Sounds like a win-win and a great example of "just doing it"
Robbie
Joshua 1: 8-9
"Study this Book of Instruction continually. Meditate on it day and night so you will be sure to obey everything written in it. Only then will you prosper and succeed in all you do. This is my command—be strong and courageous! Do not be afraid or discouraged. For the Lord your God is with you wherever you go.”
Been working getting started.Made one offer.rejected.Figured it would be. Not giving up by no means. Just a little discouraged. Meeting tomorrow with an investor consultant about short sales. He says that he would like to work with me, and would pay finders fees.As we are about to lose our home as well need some incouragement.Haven't had a job over a year and used up all my savings. got Deans book and spent the last dollar just about to join his school. I know I will be successful and wont quit. I'll fight to make this work! One way or another!
Courage is being scared to death, but saddleing up anyway!
I recently purchased Deans course,and am working hard with it.The advisors and consultants have been really helpful. However I find myself stumped sometimes and have to remember that I can do this. I've been out of a job now for a year, and have used up my savings and have no monies to work with. I'm meeting tomorrow with a investor,consultant who buys pre-foreclosures and is willing to work with me.He pays for bird dogging.So hopefully I can work out something. I wont give up, I know this will work! I really believe in Dean.Well thanks for listening!
Courage is being scared to death but saddling up anyway!
Thanks for sharing the details on this fantastic deal. Way to go, keep up the good work! Good luck on all your future deals. Believe and Achieve!
- Joe
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Joe Jurek CPA
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Congratulations! And, like others have said, thank you for being so thorough in writing about your experience. It was terrific how you paid attention to the details in this deal, both with how you dealt with the other people involved, and with how you made a conscious decision of what your own perception would be and then reminded yourself to stay the course. Can't wait to hear "the rest of the story".
God bless,
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
Great job, David. You are also inspiring me to get moving along this path! The first deal must be the biggest hurdle to get past! Can't wait to get the EDGE kit while I work on my buyers list, etc. Thanks for the inspiration and I'll look forward to your upcoming posts on this venture for you!
Barb
Just a quick update,
I went to the tile company this morning, signed and closed. You have to love a good title company, total time:
4 minutes !!
The seller asked to transfer the keys on Friday, which I agreed to, he has been very cooperative thru the whole process so I said no problem.
A small side note regarding the assignment of the contract. My title company, who is noted for being detail conscience, had no problem with the paperwork side of doing the assignment. He states it is legal and fine from his side. He did state though that where people get in trouble is crossing the fine line between assigner and realtor. He did not really want to get to deep into it, since he was busy (I will try for more info later) but its good to know that once an assignment deal hits his desk, either me taking one, or doing one, he will handle it with no problem.
David
Keep up the good work.
"If you cannot do great things, do small things in a great way.”
Napoleon Hill quote
Keep up the good work.
"If you cannot do great things, do small things in a great way.”
Napoleon Hill quote
Keep up the good work.
"If you cannot do great things, do small things in a great way.”
Napoleon Hill quote
Awesome,thanks for sharing your experience with us. All the best.
Sandra
"You can never get to the top, if you are not willing to climb. Do not look at the difficulty of the climb, only anticipate the view from the top."
"Can't even walk without you holding my hand." (Song)
"Is anything too hard for the Lord ..." Genesis 19:14
"In all things, wait on the Lord."
"Think not of your own deliverance, but trust in God who will give in abundance."
"When you are down to nothing, God is up to something." Unknown
"Our lives begin to end, the day we become silent about those things that really matters." Dr. Martin Luther King Jr.
You all motivate us. Joined the academy last month - listen to CBRpower - he's right! (and now paying highly motivating payments on our charge card!).
We are seeing an RE attorney Friday to learn what we can and cannot do as investors here in our area. Went to our local title company and had a talk with them. Also joined our local real estate investing club a couple of weeks ago. Now I am looking for a broker recommendation since I have someone else who wants us to get them in a house!
Testing the water in our area on Assignment of contracts, Back to Back Closings, and Sandwich Leases.
We have had an ad in the paper and on CraigsList for 3 weeks now. Each week we have made improvements. Last week got a few calls. This week calls have really picked up and we are building our buyers list.
Have been looking at properties, listening to the conference calls, reading Deans site, studying the books, and lessons. Just ingesting everything we can as fast as possible. My job sucks and I want out of it. We are finally doing something constructive? keep up the good work everybody.
DFand3Kids
GREAT JOB DAVID your right can do enything doing nothing words i am learning to live by.
Nate
TAKE ACTION
I love what you have shared on this. you have done a greatjob and yes we all have to just get out there and try. I wanted to share that we just closed our first assignment deal on Monday this week and It was wonderful!!!! The couple wanted out of the home (personal) and they only wanted $90,000.00 for the 3-2 home with full basement 2 car detached garage. Sits on 2 lots.
Anyway the comps where for 117,000 to 121000.00 I just sold this bad boy for 15,500 profit and all I did was fill out the contracts. This is soooo amazing to me.
Some people dont make that in months of work. I love that I learned to do this from a BOOK or should I say the BOOK!!!! I love America where else could we pull this off and help the people in the same?
I would like to find out about bird dogging. I do not know who to contact or how I could sell my deals or buy them any suggestions?
thanks again for sharing.....
Donna Lynn
dndgrayhomes@****
Anyone from New Jersey let me know if you guys would like to bring ideas to the table..
Anita posted a really great thread that tells all you need to know - its called --- How To Be A Bird-Dogger and GET PAID FOR IT! Good luck - remember - just do it !
In His strength and time -
d
I have strength for all things in Christ Who empowers ME [I am ready for anything and equal to anything through Him Who infuses inner strength into ME; I am self-sufficient in Christ's sufficiency]. Phil 4:13 AMP
Congrats on your first deal, I totally agree that is months of pay for many people. Isn't it a great feeling knowing how easy it can be to have that "golden parachute" from being employed by others, knowing that real estate can provide for us quite nicely.
A wonderful profit for signing paper, I could not be more thrilled for you !!!!
David
Congratulations! That was an awesome deal!!
You should start a new thread so your story doesn't get missed by others. With many people trying to start their RE career with assignments, it is inspiring to hear from those that have success stories with that technique! (And you're right, America truly is the "Land of Opportunity" and Dean's BOOK rocks!!)
Thanks again for sharing!
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
Hi David - great job - my husband and I are investors in Ohio also.
I am recently new to this site and appreciate so much all the
stories and involvement - what a blessing this is!
Getting ready to close on a deal on Tues. it is a lease purchase
with right to assign - appr. value 79,000 - purchasing for 45,000
no money down, $450.00 per month - will rent for $700.00 per month.
My rehab cost will be under $6000.00 so I can rent and hold or
turn and sale.
Great job everyone - you can do it - be in this to win this!
Fear is False Evidence Appearing Real - Fear is the opposite
of Faith - Only Believe!
Candace Shoultz (Shoultzie)
Hello all,
I wanted to take a few moments to update you and the progress of this project and to emphasize the importance of multiple estimates.
There are two major items that needed done to start the rehab in earnest, one is getting the junk taken from the house, the other is tree removal on the outside. The lot is so ever grown one can barely see the house.
For the clean out of the house I received two estimates, one was 2k the other 600, a shocking difference.
For the tree work, again I got two estimates, one for 2050 and the other for 1035. Again a huge difference for the same work.
Numbers like these can destroy a rehab budget and ultimately mean the difference between profit and loss on a project. Be careful and be diligent, with work in many areas scarce, people are hungry to work. If you have been using the same contractor over and over, maybe its time to bring another in for an estimate to see if your "regular" is still in line.
For people just starting, NEVER work based on one estimate, NEVER.
Invest wisely, BUT DO IT !!!
David
did you get both of those written in guarantee that that was the actual price the companies would be willing to do the work for? Congratulations on closing your first of many deals.
"I will NOT BE BROKE! ANYMORE!"
In the name of Allah, the Beneficent,
the Merciful.
22.He is Allah besides Whom there is no God: The Knower of the unseen and the seen; He is the Beneficent, the Merciful.
23. He is Allah besides Whom there is no God: the King, the Holy, the Author of Peace,the Granter of Security, Guardian over all, the Mighty, the Supreme, the Possessor of greatness. Glory be to Allah from that which they set up (with Him)!
24. He is Allah: the Creator, the Maker, the Fashioner: His are the most beautiful names. Whatever is in the heavens and the earth declares His glory: and He is the Mighty, the Wise.