Is it REALLY this easy? (possibly my first deal... sort of!)
I could have also used the title: "My deal that fell from the sky", or something to that effect! LOL!
Here's the story: About a year ago, when my brother and I got Dean's books, I was poking around the 'net just to see what was out there. I came across an ad for a 46-unit apartment building in need of repair (no tenants) located in Detroit. The asking price was extremely low (I don't remember the specific price) and I was interested to see what information I could dig up and "practice" my evaluation techniques.
I wasn't really interested in making a real deal for a couple of reasons: I am in Florida and the property is in Detroit, the building didn't have any tenants, the building was in need of serious repair, and the Detroit area has been extremely hard-hit by the economy. All of these factors put any kind of a deal WAY in to the uncomfortable zone for an amateur like me.
But, I contacted the seller anyway. I tracked the owner down to a holding corporation. I told the owner/seller that I wasn't all that interested in structuring a deal on the apartment building, but learned he was interested in buying a property in Florida and would use me if I help get the apartment building sold - PLUS, he would throw a commission my way (from the sale of the apartments).
Well, I really didn't know what I was doing and I think I threw up an ad on craigslist and pretty much forgot about it. I never even found out if the apartments sold and, needless to say, I never earned a commission or sold any property to him. BUT! He apparently put my email address on a list...
About a month ago, I get an email from the company which was trying to sell an entire city block in a Detroit suburb. It was priced at $225k, includes several buildings and several addresses (parcels) - RIPE for a smart investor!
It was perfect timing, as my brother and I have re-started our "seriousness" about this whole real estate thing. So, doing more research on attracting buyers and sellers, I put up another ad on craigslist (and a few other spots) and lo-and-behold, I get a response!
Now, I never entered into any sort of structured arrangement/deal or anything of the sort with either the seller - or this potential buyer. But, the "buyer" said they are VERY interested, would like more information, and stated very clearly that they are an "all CASH buyer". WHOAH!
I sent emails in both directions, explaining that I'm basically re-marketing the ad and not trying to work a deal, as it's a bit out of my league. BUT.... I'm connecting a seller with a buyer, on a (potentially) LARGE cash deal, that may...MAY...end up with a few bones thrown in my direction in the form of a small commission.
I may be dreaming, but think about it: I didn't do ANYTHING, except write my own "for sale" ad. I'm not doing any paperwork (commercial property is still out of my league!), and I may earn a few coins by simply connecting the buyer and seller. ADDITIONALLY - I may have just picked up a new buyer for my buyers list! (Hey, if someone is a cash buyer for a quarter-million dollar piece of commercial property, you know they're doing something right and have a few coins to spend, right?).
So, yeah, I am breaking every "rule" of an investor - working a deal into the mix. But, having this basically fall into my lap for about ten minutes worth of work? Is it REALLY this easy? Even if I don't earn a penny as a "finder" or whatever, the value of having a cash buyer on my list is worth WAY more!
I'll let you know what happens in the upcoming weeks... (I'm rambling because I'm just too excited right now... LOL!)
Rock on!
Chris
__________________
Quotes about me from other users:
"...high and mighty ... I have to bring the hammer down on them"
- My response: "The view from OUTSIDE THE BOX is a lot better than from INSIDE."
I could have also used the title: "My deal that fell from the sky", or something to that effect! LOL!
Here's the story: About a year ago, when my brother and I got Dean's books, I was poking around the 'net just to see what was out there. I came across an ad for a 46-unit apartment building in need of repair (no tenants) located in Detroit. The asking price was extremely low (I don't remember the specific price) and I was interested to see what information I could dig up and "practice" my evaluation techniques.
I wasn't really interested in making a real deal for a couple of reasons: I am in Florida and the property is in Detroit, the building didn't have any tenants, the building was in need of serious repair, and the Detroit area has been extremely hard-hit by the economy. All of these factors put any kind of a deal WAY in to the uncomfortable zone for an amateur like me.
But, I contacted the seller anyway. I tracked the owner down to a holding corporation. I told the owner/seller that I wasn't all that interested in structuring a deal on the apartment building, but learned he was interested in buying a property in Florida and would use me if I help get the apartment building sold - PLUS, he would throw a commission my way (from the sale of the apartments).
Well, I really didn't know what I was doing and I think I threw up an ad on craigslist and pretty much forgot about it. I never even found out if the apartments sold and, needless to say, I never earned a commission or sold any property to him. BUT! He apparently put my email address on a list...
About a month ago, I get an email from the company which was trying to sell an entire city block in a Detroit suburb. It was priced at $225k, includes several buildings and several addresses (parcels) - RIPE for a smart investor!
It was perfect timing, as my brother and I have re-started our "seriousness" about this whole real estate thing. So, doing more research on attracting buyers and sellers, I put up another ad on craigslist (and a few other spots) and lo-and-behold, I get a response!
Now, I never entered into any sort of structured arrangement/deal or anything of the sort with either the seller - or this potential buyer. But, the "buyer" said they are VERY interested, would like more information, and stated very clearly that they are an "all CASH buyer". WHOAH!
I sent emails in both directions, explaining that I'm basically re-marketing the ad and not trying to work a deal, as it's a bit out of my league. BUT.... I'm connecting a seller with a buyer, on a (potentially) LARGE cash deal, that may...MAY...end up with a few bones thrown in my direction in the form of a small commission.
I may be dreaming, but think about it: I didn't do ANYTHING, except write my own "for sale" ad. I'm not doing any paperwork (commercial property is still out of my league!), and I may earn a few coins by simply connecting the buyer and seller. ADDITIONALLY - I may have just picked up a new buyer for my buyers list! (Hey, if someone is a cash buyer for a quarter-million dollar piece of commercial property, you know they're doing something right and have a few coins to spend, right?).
So, yeah, I am breaking every "rule" of an investor - working a deal into the mix. But, having this basically fall into my lap for about ten minutes worth of work? Is it REALLY this easy? Even if I don't earn a penny as a "finder" or whatever, the value of having a cash buyer on my list is worth WAY more!
I'll let you know what happens in the upcoming weeks... (I'm rambling because I'm just too excited right now... LOL!)
Rock on!
Chris
Quotes about me from other users:
"...high and mighty ... I have to bring the hammer down on them"
- My response: "The view from OUTSIDE THE BOX is a lot better than from INSIDE."