After posting my first real estate success story: $60,500 Profit on a Short Sale Foreclosure, I started working on my first wholesale deal.
My partner, Rick, had met with the seller of a piece of property about two miles from my home because I was too sick to go. Well after Rick came home he told me she was ready to sign a contract for an all cash closing for $67,500.
The home was on 3/4 of an acre on a fully stocked trout stream. It had two bedrooms and one bath. It needed some work because the woman’s husband died a few years back, and she did not put much money into the home.
Her sister was a Realtor in town, but she did not want to list the home because she was ashamed of how it looked. The home as it stands was worth about $125,000. She accepted the all cash offer for $67,500 because she wanted to leave on August 1. We met her on June 15.
I borrowed money from my mother and sisters and put a few thousand dollars in to close the deal on August 1, as she requested. We had big plans to rehab the home and to put about $50,000 into it. Then we would have been able to sell it for about $225,000.
I did not have the money to fix it, and my partner Rick does all the rehab work. At the time I needed Rick to begin building my own new residence on a parcel of land I owned because I was selling my own home.
We just decided to dump this one for an all cash deal that closed two months later for $105,000. I only had to pay my family back $1,500 total in interest for their money in the deal.
I made $37,500 for just writing up a contract. I set foot in the house twice and did nothing other than meet the owner and close the deal. Not bad for a few hours work.
I am a mother of four and this is my only job. If I need to pay my bills I just go out and find another home to buy. Got to love this business! Thank you Terry Vaughan and CRE Online for making this all happen. You guys are the best. See you all at the Creative Real Estate Online Convention in March.