OfflineI just closed my very first deal today (Tue) for $5,706.70 net profit!!! It took me 2.5 months, since I bought RBBP on August 1st. And I had a few last-minute surprises but everything worked out in the end. Man, this stuff works! Only if you work though 
Just to let you know what happened, my realtor listed this 2-br/2-ba townhouse in a nice neighborhood for $89,900. The ARV is about $125k, so I made an offer for $66,300 with EM of $500 and got it accepted and approved by the bank (it's a short sale). While pending the approval, we stumbled upon a cash buyer who's a contractor, who was also very interested in this property. So I decided to flip it to him through double closing. We had some back and forth and we ended up with $77,500!
A mistake I made during the negotiation was that I forgot to ask him to pay his own agent's commission. If I remembered I had to pay that, I would've negotiated with a higher number. This mistake caused me more than $2k! It's definitely a very valuable lesson.
As for the transactional funding for the first closing, I got the cash from my buddy who's in the hedge fund business -- I paid him 2% fee. I also put in a little bit of my own money to save on the money costs (since it's sitting in the bank anyway). The funny thing is, I actually sent him a message in Facebook one night thinking that he probably wouldn't want to invest his money, but he replied the next morning with some questions and we talked over the phone and made a deal in less than an hour! This reminds me: don't be afraid to ask, the worst somebody can do is say no.
The last thing that caused a 1-day delay of the closing was that the title search returned an open mortgage on the property by a contractor. The mortgage was paid off 20 years ago, but the company already went out of business and we couldn't find the owner. Luckily, the seller dug through her documents and managed to find the release papers at 1 am last night! She was really motivated as she's been trying to sell the property for 1.5 years!
All said and done, the closing took less than an hour and I walked away from the table with about $5,700 net profit, and I've never even seen the property myself!!! How cool is that?!
But, the best thing that happened today is to see the big smile on the seller's face -- she was literally dancing and hugging people! It's just so wonderful to be able to help take a burden off someone, give business to the title company, the attorney, 2 realtors, bring a great deal to the end-buyer, and make some money myself (plus the county and state take a good chunk of taxes too...). Everybody wins!
Bottom line, just go out there and keep making progress every single day. Never ever give up because that's when you actually fail! I didn't know a lot of the things that happened, and I still probably don't. I had many obstacles, most of them psychological -- What if they try to scam me? What if I look stupid? What if it doesn't work out? Too many what ifs...but I definitely had a wonderful real world education, not just theoretical stuff. I'm moving on to my 2nd deal, and I hope your next deal is right the corner! Hope this helps, good luck!
Real Estate Investor, if you would like the chance to work with me in the US East Coast, send me a PM (Private Message) anytime to see if we are a good fit for each other.
Wishing you abundance,
Ken Siew
Cheers.
"Stop getting ready to get ready...ignorance on fire is far more powerful, and profitable, than knowledge on ice."
I love that Carl!
Again, thanks for all the wonderful comments, they do keep me going every day!
To quote Dean: Knowledge + Action = Results!
Real Estate Investor, if you would like the chance to work with me in the US East Coast, send me a PM (Private Message) anytime to see if we are a good fit for each other.
Wishing you abundance,
Ken Siew
Congrats Ken! Well Done!
Make it happen!
Jen
Wow Ken you sure showed how easy it is just by taking action. Congrats and can't wait to hear about the next one.
SEMPER FI
GET SOME!
what is the difference between offer and contract? and how is that work? when I send offer to potential seller?
thanks.
Ken,
Congratulations on keeping your focus and getting the deal done.
You have made a homeowner happy and that is what a short sale is all about.
The rewards will come as we all will see.
On to your next deal!!
Thanks for sharing.
Laura Bullock
BMW Investment Properties LLC
www.bmwinvestproperties.com
The Short Sale Sisters Journal
Hey Ive been reading you post in the 30day quick cash formula thread. And I have to say your success with your first deal is my motivation!!! I've been trying to get my first deal to fall thru since I purchase the RBBP Aug 7. But now Im starting to realize that it dosent matter how long you take to get your first deal done. So with that being said, I'm never going to stop until I reach success!!!
Congrats on your deal!!!
Reynold Orozco
I like your math...'knowledge plus action = $5700.' Congrats!
Way to to go, Ken. Chase that second one
Dennis
- Truly believe in yourself! -
Dennis
It gives me hope!
Linda
"...be; not greedy for money....but eager to serve"
1 Peter 5:2
Great job, Ken... you are the real example of the saying ''success is when you feel the fear and do it anyway'' and so you did it and were not afraid to embrace the unknown, that is what we all need to learn to do!!!
I am happy for you. Your story gives motivation and to never give up.
Take care.
Success is when you feel the fear and do it anyway...
Great job Ken! ONWARD!
"Al"
Great job - thanks for sharing and best of luck to you for MANY more deals!
Lois Ermatinger
RE/MAX Preferred
Hey Ken,
Good Job! Keep up the good work
"The Thing Always happens that you believe in;
And the belief in a thing makes it happen"
-Frank Lloyd Wright
Ken, I congratulate you from the bottom of my heart !! You have been the engine to move us all forward by incredible motivations !! You made it now and hope we will follow.
Congratulations you again !!!!!!
G
Hey Ken,
Just wanted to say congratulations!!!! That's fantastic!
Samuel
Way to go Ken! Thanks for sharing the details. You give us all hope and motivation.
I love how you used your attorney to find the title company. I'll have to do that.
Question: How did you find out the bank guarantees a 10-day response?
Thanks
That Dean & Matt teach. There are several "maximum offer worksheets" on here somewhere. You have to take every cost into account (Repairs, Holding, Closing, Realtor 6% resale fee, etc.) & your fee before you make any offer. What do the rest of your numbers look like?
It can be done and sounds like you have really accomplished what you set out to do. Thanks so much for sharing it is loads of help. Hang in there for your future deals and much continued success.
Pamela
Very encouraging to read about your successful deal, Congrats.. on pushing past your fears and out of your comfort zone!! Im working up to my 1st deal right now so I know the feelings!!!lol
TDavis
Great job Ken !! Am so excited for you to get your first deal done...You give me encouragement!! Thanks so much for taking the time to let us in on all the details...really helps alot
Peace,Love and $$$
XO
Angie
This is Awesome. Congratulations! You give us more motivation never to give up. Thanks.
Grace
You certainly earned it!
Say no to the good and YES to the BEST!
I had many obstacles, most of them psychological -- What if they try to scam me? What if I look stupid? What if it doesn't work out? Too many what ifs...but I definitely had a wonderful real world education, not just theoretical stuff. I'm moving on to my 2nd deal, and I hope your next deal is right the corner! Hope this helps, good luck!
Awesome, awesome stuff Ken, and thank you so much for sharing this Inspirational and transformational post man!!!! I Love it because like you I am going through all the "what if's..." and your message was just the shot of motivation, inspiration,and reality DG I needed to get back out there and make those offers. Thank Dean and Thank God you overcame the Biggest what if Ken!!..."What if you Never tried...?"
Thanks again Ken, right behind you fellow Newbie...Well technically I guess you have graduated to Bona Fide Investor Status...Congratulations Again and A thought just occurred to me, your income (if we include that $2k mistake) for the last 2.5 months is a "modest" $7.7K!! Wow..............
Prince Adhola
"There is nothing to fear but fear itself..."
"Never Say Die Until a Dead Horse kicks ya!" An Aboriginal Elder
Hahaha...You Gota Love it. Ken you are a Beast Man....LOL!! I think my quote of the Day has got to be this:
"I think I'm gonna focus more on seller/REOs for now. Having said that, my 2nd deal in the work is a short sale (already approved)! Go figure :-)"
2nd Deal ALREADY APPROVED...okay you know what...CLEARLY I thought I was in the game but I have been in the stands for the last two Months with my RBBP....LOL
Congrats Again Ken and Best of Luck with the Second Deal.
"There is nothing to fear but fear itself..."
"Never Say Die Until a Dead Horse kicks ya!" An Aboriginal Elder
Congrats!!! What is em $500?
Thanks
Rich
Wishing everyone the best!
Rich, EM is earnest money -- deposit you put down when you put a deal under contract. So the final purchase price will be $500 lower because you already paid $500 upfront.
Real Estate Investor, if you would like the chance to work with me in the US East Coast, send me a PM (Private Message) anytime to see if we are a good fit for each other.
Wishing you abundance,
Ken Siew
You proved, like many others that REI is possible for the strong at heart and the perseverer. 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.
You're right about being strong at heart, it does take a certain level of courage to push through these deals. All the best to you!
Real Estate Investor, if you would like the chance to work with me in the US East Coast, send me a PM (Private Message) anytime to see if we are a good fit for each other.
Wishing you abundance,
Ken Siew
Hi Ken,
Congratulations on your first deal. I bought my RBBP at about the same time as you on Aug. 5, 2011, but I have NOT closed my first deal yet. Your testimony is soooo inspiring.
You said that you are from the East Coast (I am also),and which state in the East Coast do you live in? I am also looking for an attorney who can do a Double Closing or who can recommend the same Title Co. that you had used. What is the name of your Attorney, his telephone number, and email address? Also, the name & phone no. of the person who did your transactional funding? I will appreciate your assistance on this matter as I really want to close my very first deal too.
Rosepal