OfflineI can't begin to tell you how excited I am to say that I have had my 1st offer accepted. I know when I read other's posts about their first deal I wanted details so here they are with a little background.
I'm in Southern California and was having a hard time competing with the cash offers out here. Also the market is not what I would consider strong and we have a high unemployment rate. So I began to "Think a little different" and decided to find out where the jobs are. A family member mentioned a couple of areas so I started doing research. A lot of research. I looked at websites advertising jobs, went to Craig’s list in those towns and was able to get a good picture of the real estate and job market there; what was for sale, who was looking for rentals, etc.
I took out a HELOC (Home Equity Line Of Credit) on my home for the money and after doing more homework decided on a property. I talked to the realtor. But before I could move forward the home had sold to a contractor. I told the realtor that if it should fall out of escrow for any reason to please call me. It did and I didn't waste any time finding a contractor to give me a bid on repairs to either make it a rental or to rehab and sell.
I found the contractor by calling a church and asking the Bishop directly for a referral. Since I will probably never step through the front door of the house I bought (hard concept for me to grasp) I am having the inspector come back at intervals to confirm that the work is being done by the contractor as it should be. (Thank you advisors for that idea)
So here is how it looks:
Listed as a 2/1 but will be a 3/2 when the work is complete.
Asking price $71,900 reduced to $55,000. It was sold for cash at $42,000. I offered $38,000 cash and it was accepted.
Estimated repairs and rehab $20,000
ARFMV (After repair fair market value) $120,000
Purchase price $38k
Repairs $20k
Other cost est. $5k
Estimated profit
if sold at $110k $47,000!!!!!
I could also market it wholesale or rent it for $750 to $800 a month. But since my HELOC is adjustable I would rather make the cash and use it for another purchase. I will be getting my buyers list for that town ready tomorrow.
I started learning about real estate in March of this year. To think that I could earn this much was - I repeat - WAS outside of my thought of possibilities.
Even though I am excited I am also feeling calm about this. I know from my hard work that this is a good deal. The numbers work. That's the bottom line.
Merry Christmas to you all!
"Faith is taking the first step even when you can't see the whole staircase."
~ Martin Luther King, Jr. (1929-1968)
Way to go, Willow! Keep us updated on what happens next1
Happy Holidays,
Serena
That was brave of you to go ouside your area !! You go lady !!!
Thats a VERY MERRY CHRISTMAS PRESENT TO YOU.
God Bless
Congrats on your first deal being accepted!!
Willow, you have surely taken "the bull by it's horns," by thinking a little different. It paid off and I am very happy for you. Congrats on a job well done. What a Christmas gift. Happy Holiday, and God Bless.
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.
I thank you all for your kind words and encouragement. I remember hearing the saying that God never says "no". He may say, not right now, or I have something else in mind. Even though that not right now part seemed to last forever, I kept working...learning. I know that if my "now" happened early on, there is a good chance that I wouldn't have been ready for it. I'm ready now.
"Faith is taking the first step even when you can't see the whole staircase."
~ Martin Luther King, Jr. (1929-1968)
www.beaconinvestorsgroup.com
Willow,
Congrats on your first deal
Way to go!
Whether You Think You Can or Can't, You Are Right
~ Henry Ford ~
Congratulations on getting your first deal. This is a great Christmas gift. Merry Christmas!!!!
Great job, keep rolling.
MERRY CHRISTMAS TO YOO!
Bob
Way to go!! Great deal and great profit.What a Christmas gift, couldn't get any better....Merry Christmas....Jan
Great job, Willow. Now you know that no matter where you are you can close a great deal where the property is located. Keep up the good work and Merry Christmas.
Congrats on your Deal i live in So cal and it is pretty tuff competing with all cash buyers. Congrats on your deal.
rick
Nice work. I know that first deal feels great??
"If you cannot do great things, do small things in a great way.”
Napoleon Hill quote
Merry Christmas to you and yours and Good job
"Don't tell me I can't, Tell me how I can."
Way to go Willow! The ball is rolling now! Dont stop. I think it was awesome that you stayed after it even when the property had been sold. I know I would have stopped at that point. Thanks for the inspiration. Keep going! Keep us posted.
Build Assets, yes it feels wonderful. I have worked so very hard for this and I know that this is just the beginning.
House1, there have been times that I was burning the candle at both ends and got burnt out. I would allow myself to take a little break then get back to it again. I've never been a project manager before so this too will be new. But I like the fact that because the house is so far away, I am doing the managerial thing and delegating. I've been a mom for almost 25 years so I know I have good training at doing what needs to be done when it needs to be done and dealing with the unexpected. Well actually I expect the unexpected.
Rick, Don't give up. And realize that the "wall" of CA real estate is something that we need to find a way around...or over...or under. I have been so frustrated. But with each failure I was learning. That knowledge is something I will have forever and take into each new deal.
Regina, You veterans out there have been such an inspiration. I know you have other things to do with your time and want you all to know that we appreciate the knowledge and time you all gift us with. Thank you. I was recently thinking about what some great man said when someone said that if they took away all his money he would be ruined. His response was that he would earn it all back and more in a short time. The knowledge we gain from Dean and each other is giving each of us this ability.
Thank you all for the comments. Keep moving forward and you WILL reach your dreams!
"Faith is taking the first step even when you can't see the whole staircase."
~ Martin Luther King, Jr. (1929-1968)
www.beaconinvestorsgroup.com
It is wonderful to hear you got your first accepted offer.
I am about to close on my first deal next week and can only imagine , how awesome you must feel inside ..
Keep it up !! The first one is the hardest , don't stop there !!
Merry Christmas and Happy New Years !
Randy
Wow! Full time mom and now real estate investor! Awesome! I'm a single dad but as hard as that is, there is no way I could ever do what you've done. I feed off of you guys on this site! Every time I read a post like yours I feel like such a coward for even thinking about quitting. The truth is when you guys have success, I feel like I'm a part of it! Keep going Willow. Real estate millionaire before you know it!
Congratulations on your first deal! It sounds like all yoru hard work paid off and you were creative in getting a HELOC and putting those dollars to work for you. This first deal will probably be your path for a lot more deals to come. Keep up the good work and thanks for sharing the deal details with the DG family! Good luck on all your future real estate deals! Believe and Achieve!
- Joe
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God is good all the time and on time.Congrat....
Im brand new and love to hear a story that makes me realise that I can do it.. Your rolling now'' " Merry investing to you"
We can do anything we put our minds to. This was Willow's turn and maybe next week will be House 1's turn, I don't know. There is a time for everyone, and it is up to each of us to make it happen. 2010 is a new year, new beginnings. Who will take the first opportunity to post "deal accepted." Happy Holiday and a Prosperous 2010 to us. We can do this. God Bless.
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.
I received the inspection report and think it wise to have a structural person look at the property. I only have three business days from the date of inspection 12-24 to back out if that is what needs to be done. The inspector isn't recommending anyone in particular but does suggest I get more of an idea as to the cost of possible structural repairs that need to be done. The contractor I have received a bid from and who owns 28 properties himself doesn't think it is an issue but will read the inspection and give me his input.
I have heard of investors not opting for the inspection to give more incentive to the seller to move quickly. But at this point I think the $295 was well spent. I can always go back to the seller and ask for even more of a discount with the documentation for back up. If structural repairs and grading for better drainage are needed and there is 18 inches of snow on the ground, I may not be able to turn it quickly and that may be the deal breaker.
This doesn't scare me. I'm not willing to just run away as my sister advises. I have more work to do to know if this is a deal worth moving forward on. I realized that the profit wasn't just going to fall in my lap. I may not pick up a hammer on this one, but I expect to earn that money by working hard. And this first deal...if I go through with this one...will be such a learning experience. And I feel confident that if this isn't the deal for me I will know it and another one will come along. But no matter what, I locked this one up and followed through with my due diligence. It doesn't stop when your offer is accepted.
If being at this point of a deal is such a rush, I can only imagine what it will feel like to get that nice profit check when it is done. (big grin)
"Faith is taking the first step even when you can't see the whole staircase."
~ Martin Luther King, Jr. (1929-1968)
www.beaconinvestorsgroup.com
great job willow
111 YOU ARE IN THE GAME!! the action you took is the start of something you will build upon for the rest of your life!!just imagine as you said cashing that check that you took action upon one after the other then another!! dont stop willow u r just getting started!! AWESOME JOB!!!!!!
jay
Click Here For homepage www.jaysthilaire.com
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AWESOME JOB! Willow , this gives me hope since i also live in so. cal and knowing that all the best deals were being gobble up by cash investor. i shall continue with my investing and i to shall recieve my first deal. thank you!
I like your spirit. I'm in New York City and houses here are expensive. If you can do it in Southern California, I know I can do it here. If your deal doesn't work out, you've learned a lot to help with your next deal.
I went to look at a property and when the realtor showed up he told me we couldn't go in because he had just been notified that the property went into contract, it was an REO. I didn't get upset, I used the meeting to aquaint myself with the realtor. Good luck to you.
What a way to celebrate the end of one year and bring in another by making your very first deal, this is awesome! Keep up the work and always keep positive!
Bill G.
Never Give Up, Never Surrender!
Congratulations! You certainly ended 09 happily and what a great way to start 2010.
Lea
SPR Property Solutions, LLC
Hi Willow,
Just stopped by to tell you congratulations on your new accomplishments. I am so happy for you and I can feel your energy and motivation through the computer. You are on a definite path to reaching your REI goals and admire the fight and determination in you. Keep up the "Fight for the First!"
Best Regards,
Shane Gore
"People Build People"
Only one day left to back out of the contract if need be. I have a structural inspector coming out to give me a bid. But after talking with my contractor I will most likely be moving forward. He personally owns 38 single family homes, 1 10 plex, 2 3 plexes, and 2 4 plexes. He also manages his property and that of others. Bottom line, this man knows what he is doing. He will be giving me a detailed quote of services and fees associated with the rehab and his time quote sounds excellent. I am scheduled to close on the 8th. WOW!
One of my draw backs for doing business in North Dakota currently is the weather. No outside painting can be done unless the weather is above 40%. In that area you are looking at Mid March. So my question is do I sell the property for less because I won't be able to get those window frames and fascia painted or do I sit on it for a couple of months to get a better profit. I haven't decided yet on that one. My holding costs will be minimal for an extra month or two.
My stomach is a little unsettled. But I'm sure a piece of Christmas fudge will make everything better.
Question for the group: Anyone have a good contract to use with contractors? I want my legal safety net saying he will take responsibility for the property being secured and kept neat and tidy. I also want the best payment schedule and would like some input. How much do I give him to start with? When is the next payment to him made? And one that has the clause that says final payment will be after an independent inspector gives me the thumbs up.
"Faith is taking the first step even when you can't see the whole staircase."
~ Martin Luther King, Jr. (1929-1968)
www.beaconinvestorsgroup.com
Way to go! Im just getting started and since success leaves clues thank you! That is a perfect example of how its done. And I wont forget