I believed there was opportunity in the real estate market, but I was not sure what the best next steps would be. Then late at night I was watching TV and saw Dean’s program. I agreed with everything Dean was saying and the strategy discussed through-out the program. Matt Larson made an impression on me as well and I began to look for a good deal. I was motivated and I agreed with the theory of offering 50% or less for a property because there were so many new properties coming and staying on the market.
I found the REO that changed my life thanks to Dean’s strategies and techniques. I looked at a rough 3 bedroom property that had great potential. It was a 3 bedroom with an eat in kitchen, laundry room , etc. It also featured a very large 2 and ½ car garage. I know that people in the Midwest love garages because of the snow in the winter it is so nice to have your vehicle in a garage.
The property is on a double lot in a mixed residential and commercial area. Thus, there could be potential for future commercial zoning which may increase the value of the property. The property was listed at $69,900 and I decided to offer low at $20,000. The offer was turned down and not countered by the REO Bank Asset Manager. A few weeks passed and the property went “contingent. ” Thus, I lost all hope for this property and felt I would look for another deal.
Then, I could not believe it. The property reappeared on-line (boomerranged)for sale at $49,900. I contacted the listing broker to inquire about the REO property. The listing broker stated the bank was rather upset that it was contingent and believed to be sold when, the buyer decided he no longer wanted the property. I informed the listing broker that I wanted to offer $10,000! Thanks to Dean and Matt, I had the courage to offer low and then I was quiet. The listing broker stated “did you say $10,000?” I stated yes. The broker then stated….uh…uh…ok I will present it!
The listing broker called me and stated they rejected the offer. I kept this property on my radar and then in a few weeks saw it dropped to under $40k. I could not believe it. I contacted the listing broker and stated I wanted to make an offer. He stated last time we were at $10k what was my offer. I stated $10,000 best and final. He stated "I will present it". Two long days went by and I received a voicemail call from the listing broker. It stated....I do not believe it, but they accepted your $10,000 offer!
I could not believe it, so I quickly saved the voicemail message (as proof) and then called my wife. We could not believe we were able to purchase a home with a 2.5 car garage on a double lot for $10,000. Well, it got better. At closing we received credit for unpaid property taxes that I believe are due toward the end of the year. I had provided an earnest money check of $1,000 with the executed contract and then based on the credit we received for taxes, we only had to come to closing with less than $7,000! I could not believe it! There was the answer were we looking for to help us get out of debt and that answer was real estate. We realized that proeprties such as this could help us get out of debt and on a path to financial freedom!
We closed on this deal in April 2009 and I want to sincerely thank Dean and Matt for their inspiration and direction that I received from the tv program and Dean’s Book “Profit From Real Estate Right Now”. The information and techniques made it possible for us to find and close this deal. I would have never attempted this if it was not for Dean and his program. This was my Deal # 1 that has started me “to think a little different” in “today’s down market.”
During the past few weeks I posted information that I was doing cosmetic work on this deal. I got the idea from Dean and I invited some friends to come over on weekends and help with the project. We cut back and trimmed trees, fertilized the lawn, recoated the drive-way, painted and made other minor improvements like new carpeting and handles and hinges for cabinets, etc. I contacted my insurance agent when we purchased the property and he stated the size and construction of the property for that area should be insured for around $100,000. My insurance agent is not an appraiser, but I was extremely excited by his estimate of value. I was shaking with nerves of excitement. My first thought was I want to find another property. This was fun and rewarding. As Dean often says, anyone can do this and this proves he is absolutely correct! We probably were just a little lucky to be in the right place at the right time. However, this is the deal that propelled us to start looking at more properties. My wife and I then committed to go to Dean’s live event the Gain the E.D.G.E. event. As we stated before, the event exceeded all our expectations and changed our lives forever!
Thanks to Dean, his wonderful staff members and students! I hope this recap summary of our Deal #1 will inspire you to take action because you can do this too! I considered this home an unpolished gem that we were lucky enough to find. This "gem of a deal" inspired us to look for more gems in our area and that lead us to our Deal #2 and Deal #3. All in a matter of a few months.
The take away here is to Believe and Achieve! Just use all the information in Dean’s books and you will be armed with the knowledge that will propel you to new heights. Dean has not only changed my life but my entire family's life. Good luck on all your deals! Believe and Achieve! Indiana-Joe
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