I’ve been pretty quiet lately, really hustling at building my business. I just thought I would drop a line about a recent success I had.
I was out driving through neighborhoods as I do on a frequent basis. I stumbled across a vacant property that looked liked it needed some work. I tracked the owners down through my county tax rolls and mailed them a signed contract.
They live in New York and had bought the place about 10 years ago with the intent to move into it. They never did but instead rented it out. The last tenants trashed the place, and it had been sitting vacant for several months. Needless to say, they were more than thrilled to see my contract.
Fixed up, the house is worth about $80,000 after about $12,000 in repairs including a new roof, installing central air & heat, painting inside and out, carpet, kitchen appliances, and some other odds and ends. After a little negotiation, I got it under contract for $40,000. I immediately began calling my list of real estate investors who buy fixer-uppers. [How to Build Your List of Buyers]
(Note to newbies: Get as long a list as possible of investors to flip to. I have about 80 on my list right now–with that many, you never run out of people to flip to.)
By the next afternoon I had assigned the contract to an investor-friend for $6000. $1000 due at closing and $5000 as a second mortgage. (10% interest only payments with a balloon in 12 months.) I had no money in this deal (not even an earnest money deposit) and created an asset worth $6,000. We just closed on it a few days ago.
I appreciate all the support I get from the CRE Online family. Thanks.