Question: can one lead be worth $45K?

Question: can one lead be worth $45K?

I sent out a batch of owners in my local market.

I spent about $1,000 in postcard marketing.

This seller left me a message saying the property was not for sale but he just inherited a property out of town that he was selling (timing is everything).

So I called the seller to get some information on the property. It turned out it was a 3 family property with two tenants in Philadelphia, and there was a $140k mortgage.

He didn’t know a lot about the property, but he did tell me that he was talking to someone else who was also interested in the property. I told him I would do some research and get back to him.

I tried to do some research using some of the free sites, but for some reason there was no data on this property. So I started thinking that I needed to partner with someone who knew that area and could help me get some comps. I ended up contacting a fellow investor in the area who might want to partner with me.

I ended up contacting the investor and e-mail them the little information that I had, they called me immediately and told me that this was a very desirable area in Philly and was going to take a quick ride by the property and see what he could see. Again, he called me right away and said that this was a great property and we had to lock it up as soon as possible.

We contacted the seller and were told that that he was going to be in town the next week and we could get a look at the property along with the other interested party.

We then started pulling comps, we had a hard time finding a similar property in the area.

Working together we estimate that the after repair value is $435,000 and there is approximately $50k in repairs. We decided we needed to move quick and we prepared an offer that I would present to the buyer the next day, before anyone had a chance to see the property. This would let the seller know we were serious and hopefully give us an edge in the deal.

We decided to present and offer for $150K, unfortunately they did not accept so I asked them what they had in mind and they said not less the $170K. So I called my partner to give him the news and we agree to make another offer when he sees the property. My partner was the first to see the property and the inside was nicer than what we had anticipated. We agree to up the offer to $170K, but told the seller we would like the opportunity to adjust our offer if it was not acceptable.

Now the fun begins. My partner [the other investor whom is helping him on the deal] called me and said he was going to wait around the corner to see what happens with the other interested buyer [there was another buyer that contacted the seller about the deal and we were in competition with them].

He is on the phone with me giving me the play by play, a car pulls up and 3 people get out and go into the property. We exchanged several phone calls, my partner speaks with the owner and he is not sure what to do, this other buyer wants to pay cash on the spot. We go back and forth a few times and finally end up at $205K, which the seller accepted. So our original offer of $150k went up by $55k to $205k.

Now we have work to do, we first decide to list the property at $249k.

My partner immediately blasts the deal out to his buyers list and I send out to a few contacts that I had.

In addition we posted a few ads on Craigslist, Postlets, & V-Flyer.

A week goes by and there are not bites, what to do now.

We decide to resend it out and post it to other sites. We again post it on Craigslist, Postlets, V-Flyer, in addition I blasted it out using ping.fm which sent it to multiple sites as well as posting in on several yahoo groups and Google groups.

All of a sudden the calls start coming in.

We had several parties interested and by the end of the week we have 3 offers. We have a low offer with a quick close, a solid offer with a $5k deposit and a 3rd offer with an escalation clause, a $1k deposit and a 6 page agreement.

We decide to go with the 2nd offer for $250K, since it included a strong deposit and they were willing to sign our agreement, however they wanted 30 days to close (keep in mind it was now 2 weeks since our offer was accepted), we were quickly approaching our deadline of 45 days to close. In addition, this buyer was using a realtor acting as a buyer’s agent and we had a referral fee that we would owe the realtor. Part of the agreement was that the buyer needed to provide “proof of funds” which the buyer did immediately. We’re excited; we are looking at splitting a $45K fee!!!!

The fun begins again, the buyer asks for access for an appraiser. Appraiser, why does he need an appraiser??? This is a cash deal “as-is”. We find out that the buyer is pursuing a mortgage for the property.

My partner and the buyer get into a little argument and he calls me up upset saying that he was not speaking the buyer and that I would have to talk to him.

We agree to draft a letter stating that the contract was in default since the buyer was pursuing a mortgage and to remedy the situation we wanted the entire purchase price escrowed and the closing moved up.

I get a hold of the buyer and we agree that he would pursue the mortgage for a few more days and if that didn’t pan out he would close with his cash. The buyer also states that he will be responding to our letter.

In the mean time we had contacted a back-up buyer in case this deal blew up. Days go by and no word, finally we hear back that the buyer will be closing with cash and no mortgage will be pursued. In the mean time he drafts up a “escrow agreement “for us to sign. The title work was already completed, so we just needed to finalize the documents.

Documents are overnighted to the seller and the closing is set up for the end of the week.

Everything went through fine, and after fees and transfer taxes my share of the fee is $19,750!!! Not bad for my first Wholesale deal!!!

Lessons learned:

If you come across a property outside of your normal area, partner with another investor.
If you come across a great deal, get it under contract quick.
If you have a great deal, you will find a buyer even if they are not on your buyers list.

Another offer accepted yesterday, so next deal around the corner!

__________________

... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...


Awesome!!!!

Congrats, cbrindamour, a very wonderful job indeed! Does this investor partner of yours know of anyone looking to buy property in Bristol, PA?


Chris,

great play by play narrative.

__________________

Always Looking to Acquire Houses | Always Looking to Amaze Investors


Bristol, PA

I will check with him and get back to you if I hear anything.

narmond wrote:
Congrats, cbrindamour, a very wonderful job indeed! Does this investor partner of yours know of anyone looking to buy property in Bristol, PA?

__________________

... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...


Thanks Bill

Thanks Bill...i had to get it down, I am sure it is a story that I will be repeating often.

TrustPoint wrote:
great play by play narrative.

__________________

... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...


Chris

That was so interesting! I agree with Bill on the play by play.

One thing I miss about you not doing your journal anymore is, just like here, you always give us names of new sites to get info or advertise.

I was hoping you were still in the game. You knocked it out of the park!

Karen

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Hi, cbrindamour Congratulation!!

Hi, my name is Wening. I would like to take this opportunity to Invite you and welcome you and your Business to our film and hope that we have a successful business relationship.

I have a question for you.
Were does the contact information that your sites gathers goes to? and what you do with it? to keep it organize and in place so when you need it is available.

Thank you,

Wening
(Fort Lee, NJ)
Success and Nothing Less!

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Positive mind + Positive thinking!= Positive Success! Wening Eye-wink


Great Story!

Awesome deal how it all came together. What a nail biter for a couple of weeks though huh. Nicely done; and on to the next!!!

__________________

Ross


Thanks Karen!

Yes, I am still in the game, changed the game plan a little when the deals I was working on dried up! I am focused on wholesaling, using all the systems I already had set up from DG.com (800# and Set For Life). I changed my marketing to postcards and I hired a virtual assistant to do all the grunt work, while I work my day job (for now). Things are finally starting to click!

Currently I have 8 pending offers that contracts are going out for that I only need them to come back. Looks like a busy month! If this keeps up may have to quit the day job! LOL

Thanks for stopping by!

kareng wrote:
That was so interesting! I agree with Bill on the play by play.

One thing I miss about you not doing your journal anymore is, just like here, you always give us names of new sites to get info or advertise.

I was hoping you were still in the game. You knocked it out of the park!

Karen

__________________

... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...


Thank you Wening!

Thanks for you comments!

The sites I have are from the "Set for Life System", it goes into the built in database which keeps everything in one place. There are lots of bells and whistles to it!

Wening C. wrote:
Hi, my name is Wening. I would like to take this opportunity to Invite you and welcome you and your Business to our film and hope that we have a successful business relationship.

I have a question for you.
Were does the contact information that your sites gathers goes to? and what you do with it? to keep it organize and in place so when you need it is available.

Thank you,

Wening
(Fort Lee, NJ)
Success and Nothing Less!

__________________

... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...


Thanks Ross!

yes it was a bit of a roller coaster ride, but in the end it was a great ride!

rresnick2112 wrote:
Awesome deal how it all came together. What a nail biter for a couple of weeks though huh. Nicely done; and on to the next!!!

__________________

... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...


Chris the superstar !

Now that's what we are talking about. Going over, under or around - whatever to make it work. Sounds like it kept you and the partner on the edge of your seat for a bit and just could not let your guard down. You were on it like a cat after its prey. That was terrific.


Thank you Esteeanna!

Thanks, it was a fun ride! You have a very interesting name!

Esteeanna wrote:
Now that's what we are talking about. Going over, under or around - whatever to make it work. Sounds like it kept you and the partner on the edge of your seat for a bit and just could not let your guard down. You were on it like a cat after its prey. That was terrific.

__________________

... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...


Congratulations

What an exciting story. Thanks for sharing the play-by-play action. I'm ready for the next one ... so keep them coming now that you're on a roll! You are definitely proof that the hard work pays off. I hope you get to quit your day job soon!


Great Job

Great Job Chris!
I just realized that reading about a real estate deal had all of the suspense of an "action thriller" to me..... lol..... that's an eye opener for sure!
Thanks for the play-by-play.... really... I mean that.
Your story just put a lot of things into perspective for me and I too hope to quit my "day job" very soon. INVESTING is ~my passion~ and you just helped me see that very clearly.... So, THANK YOU.... THANK YOU VERY MUCH Chris.

B


A Fun Read..

Great post.. You seemed to be on the edge of your seat throughout your deal and
stayed positive which is a challenge. Looking forward to reading more of your coming deals..

Let others lead small lives, but not you. let others argue over small things,
but not you. Let others cry over small hurts, but not you. let others leave
their future in someone else's hands, but not you.

Jim Rohn


RE: Question: can one lead be worth $45K?

Hi Chris,

Absolutely...
one of the best defining moments I've ever read about, here, at DG's site...
Great Job Chris!

Theo T.Cool
CogniWorld-LV

__________________

The problem with not having a goal is
that you spend all of your time running
up and down the field but you never score.

-Bill Copeland


wow I am now very jealous. I

wow I am now very jealous. I need money like that!!!!

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Thanks Ronnie!

Your welcome, I hope that my story can inspire others!

I have 8 pending offers that people have tentatively accepted, just waiting for their signature. If I keep having months like this it may not take long!

RonnieB wrote:
What an exciting story. Thanks for sharing the play-by-play action. I'm ready for the next one ... so keep them coming now that you're on a roll! You are definitely proof that the hard work pays off. I hope you get to quit your day job soon!

__________________

... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...


Thanks BA!

Glad you enjoyed the story, it was quite the drama!

I will say thing, put the car in gear, put the pedal to the metal and don't let up!

Some days it may seem like you are just spinning wheels, but as long as you keep your eye on the goal and keep moving forward, you will get there!

BA wrote:
Great Job Chris!
I just realized that reading about a real estate deal had all of the suspense of an "action thriller" to me..... lol..... that's an eye opener for sure!
Thanks for the play-by-play.... really... I mean that.
Your story just put a lot of things into perspective for me and I too hope to quit my "day job" very soon. INVESTING is ~my passion~ and you just helped me see that very clearly.... So, THANK YOU.... THANK YOU VERY MUCH Chris.

B

__________________

... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...


Thanks Maurice!

I will keep em coming, not sure they will all be as exciting as this one.

maurice moore wrote:
Great post.. You seemed to be on the edge of your seat throughout your deal and
stayed positive which is a challenge. Looking forward to reading more of your coming deals..

Let others lead small lives, but not you. let others argue over small things,
but not you. Let others cry over small hurts, but not you. let others leave
their future in someone else's hands, but not you.

Jim Rohn

__________________

... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...


Thanks Theo

Glad you enjoyed it, it was not intended to be drama, trust me.

CogniWorld-LV wrote:

Hi Chris,

Absolutely...
one of the best defining moments I've ever read about, here, at DG's site...
Great Job Chris!

Theo T.Cool
CogniWorld-LV

__________________

... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...


Thanks Freedom

No need to be jealous, just follow the path of your fellow DGers and go out there and get it. It is waiting for you.

freedom2011 wrote:
wow I am now very jealous. I need money like that!!!!

__________________

... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...


Wow!

Nice work! What an awesome deal! Persistence works and I must say even though it's your first deal you handled like a pro. I could not have done better myself!

__________________

You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!


Thanks Matt!

Not exactly my first deal, but it was my first wholesale deal! Lots more in the works!

Someday I will grow up to be just like Matt Larson! Smiling

cbrpower wrote:
Nice work! What an awesome deal! Persistence works and I must say even though it's your first deal you handled like a pro. I could not have done better myself!

__________________

... Verses: 35 "but those who hope in the Lord will renew their strength. They will soar on wings like eagles; They will run and not grow weary, They will walk and not be faint." Isaiah 40:31 ...