For the last couple years, I have been inspired by success stories on CRE Online They have contributed to my motivation to get started in this business. I am thrilled to report my first success story.
I just recently made the life decision to shuck my $30,000 per year job and start into this exciting business. It wasn’t too hard to leave my job as I had only graduated from college in May 2001 and had been there for just over six months. I am 23 years old.
I ordered Ron LeGrand’s Wholesale/Retail Cash Flow System and attended the boot camp with a friend in Tampa, Florida in August, 2002. It was excellent and gave all of the information we needed to get started with this system. Exactly one month to the day after finishing the boot camp, we had a check from our first wholesale deal.
We found the deal by driving around. It was a house that had been used as a rental, and the tenant had started a fire in one of the bedrooms. The owner was collecting an insurance claim on the house and wanted to get rid of it.
I did my calculations and came to $8,500 as my maximum allowable offer (MAO) for wholesale. I offered $8,000, he countered with $10,000 and we settled on $9,000. I didn’t want to pay more than my MAO, but I wanted that first deal, so I accepted and met him as soon as possible with a purchase and sale agreement.
My partner and I decided to sell for $15,000, and we had an offer within a week. Our out of pocket expenses were about $65 in closing costs and the other two parties covered all additional costs. The check came in just shy of $6,000.
This was my first creative real estate deal, and I want to thank Cameron Dunlap for his teaching at the boot camp. There is still a lot more for me to learn, but I’m past the first deal and more excited than ever about this business.