1/2/2008
Well, what do you know- I got my first deal of the year today! One of my cash buyers called me while I was on vacation asking if I had any properties in the neighborhood where he bought the last one from me back in November. I didn’t, so first thing this morning, I sent out 4 offers on properties in the area he wanted, offering all cash, 7 day close, 3 day inspection. I knew I couldn’t get hurt at the prices I was offering, so I wasn’t worried if one of them got accepted right off the bat.
The offers went out around 9am, and at 9:30 I got a counter from one. This property is an REO, and has only been listed 28 days. The list price was $84,000, I offered $65,500. Their first counter was $74,000, which I was kinda shocked at.
So, I called my buyer and asked him what he would need to get it at. It just so happens that this property is right next door to the last property I wholesaled to him, so he was very familiar with it already.
He said he could pay $72,000 (I was thinking more along the lines of 76k-78k which is what he bought the last one for, and why I offered what I did). I went back and offered $69,000 (I could have offered less, but didn’t want to get greedy and lose it, especially since I knew this buyer was solid).
The bank came back at $70,500, I countered at $70,000, and they accepted. Not a big payday, but I’ll take 2k for doing 15 minutes of work any day! I haven’t even seen the inside of the property.
Since the spread is so small, and would get eaten up with the closing costs involved in a simultaneous close, I am adding my buyer onto my contract, and then once it is closed, quit claiming it back to him for a 2k fee.
Make sense?
I haven’t tried this yet, but know a few people who have. I was a little nervous running it by my buyer, but we have a pretty good rapport, and he was totally fine with it.
I’m SOOOOO happy to get my first REO out of the way! I know there will be many more to come- I plan on going after them with a vengeance.
Not a bad way to start the year off! Not bad at all…..
On January 02, 2008 at 9:36pm, Anonymous said...
Awesome work. You keep it up there…..
Jerry
On January 02, 2008 at 9:49pm, Stephani said...
Hey thanks, Jerry!
I’m following your lead.
Steph
On January 02, 2008 at 10:06pm, Taylor said...
Good Job Steph! What a great way to start off the year!
I’ve got to get on that REO thing you’ve got going. Pre-foreclosures are really challenging right now…
Nice to see the sun again after your vacation?
Have a good one!
~Taylor
On January 03, 2008 at 6:20am, DayByDayFlips.com said...
Damn Girl! Great way to start the year!!!!!
On January 03, 2008 at 6:25am, jasonhh said...
Nice job Steph!
The turn of the calendar has definetly been good to you.
It has started with a bang. I picked up 3 sub2 yesterday and have laid the groundwork for 2 more and it all happened at the flip of the calender.
Maybe it will be a big year for all.
On January 03, 2008 at 6:33am, Boyd (MA) said...
You’re awesome, Steph. What a great way to start the new year!
On January 03, 2008 at 10:28am, Tim C said...
Great job Steph! You don’t wait for deals anymore, you pounce on them! Keep it up, 2008 will be awesome for you.
I just got back from looking at a 3-house package deal. Seller is a rehabber, but has way too many board ups on his hands right now. He told me to bring my screw gun and take the plywood off, and look at these houses. I trudged through 2 feet of snow, but it was worth it. I am formulating my offer now….
Again, good job!!
On January 03, 2008 at 6:08pm, Stephani said...
Thanks guys!!
Taylor- the sun is shining, but it’s cold as sh*t right now!!! brrr….
Jason- AWESOME!!! That’s a great way to start out the new year. Ride that momentum wave as long as you can!
Tim- Keep me posted about that deal, I hope it works out for you. $$$$$
Steph