OfflineWe are closing either today or tomorrow on our first deal. We have a couple minor hiccups in the way that we are trying to get ironed out, but our first stab at real estate was after studying the Edge 2011 and the 30 day Quick Cash Formula. We have no other training. It's not time to celebrate, the deal is not complete, but it's very close. We locked up a duplex for $32,500 that has been abandoned for 7 or 8 years. The roof is new and the foundation is solid and it is brick, so we went for it. IT needs about $20K in rehab and each side can rent for about $550. The ARV is estimated at $80K.
We contacted all our buyers by email and we got nothing back. So, I called them all. They all then went to take a look and we asked them to all give us feedback on our estimates with the pro forma. They all said that the numbers were in line, but none of them were interested for various reasons (no cash right now, don't want 1 bed units, wrong part of town, ect.) It was still good rapport with them and they now see that we are scoring real deals. We posted it on Craigs List, and added a few more buyers to the list and showed the property 5 or 6 times. Low and behold, we found ourselves a buyer for $36,000. We are walking away with $3500.
The buyer then did the title research on his own because he is a title attorney (very convenient) and found a couple liens on the property. The seller has settled those liens for $1400, but is now saying that we owe her that money even though it is clearly stated in our contract that she is responsible for the clean title. So, as soon as we resolve that minor $1400 issue we will be closing hopefully tomorrow or Friday.
Bottom line, for all of you doing the program, the best education you can get is to JUST PULL THE TRIGGER! We balked on several deals and let them slip by because we didn't act fast enough, couldn't judge rehab well enough, were scared, felt insecure, ect.ect.ect. We ran off our REA, they don't like working with us, so we will go without a REA for now. We have a couple contractors who gave us estimates and we learned a ton from them. We referred them to our potential buyers too. Anyway, please send good vibes our way that the closing goes smoothly tomorrow or Friday, if anyone comments on this, then I will update you on how the closing goes. Have a great night!
-Susan and Steve
The first deal is always the hardest, congratulations!
RENinja
"Remember, success is a journey, not a destination.
Have faith in your ability."
Bruce Lee
I know you two are excited. Keep it rolling!!! CONGRATS!!!
Congratulations on your first deal! Good to hear you've used and learned time management. That definitely helps and something we have to focus on. Best wishes on your next deal.
It is funny how the closer deals get to closing, some people make a final grab for 'just a little bit more' and threaten not to close.
How you described splitting the fee's and she was ok, is not uncommon.
People may make a last minute grab for 'a little bit more' but they are also generally the same people who absolutely don't want to lose the entire deal.
Glad you got your deal closed.
On to the next one.
Happy Investing!
Think Less ~ Do More
Take Action = Results!
If it is to be, it is up to me.
So happy for you!!! I'm new in REI, stil reading and doing my best to have a deal...praying for it
Way to go you two, this is inspiring. Thank you!