Hey DG Family!
My last post on deals done was 3 weeks ago and only caught my deals up to end of April. Still trying to catch up, here is the first deal in May:
Listed at $62,500, I locked it up for $50,000. As you can see, not much of a spread, but note that from last Dec until May (6 months) our inventory shrank from 21,000 houses on the market to just over 4,000; just over 400 that are not shortsales and in our DG range of size & type. Low supply equals high demand and cash buyers are plentiful.
My average purchase to original list was 69% since I started, and I was able to buy at 20-53 cents on the ARV dollar. This all changed in a matter of a month as a frenzy brought all types of investors from all over buying at 10, 20, 30% OVER list! But that's ok.... watch how this one turns out.
Built in 1963, Scarlet had many additions-- it was being used as 3 rental units, plus the main house-- what a mess! This 4 bdrm X 4 bath is approx 1,700 sf. None of my wholesalers wanted it, but I was fortunate enough to meet and help a group from Australia in May and I found a new partner-- with the spread low and the comps not proving salability at a high enough price, I wholesaled half interest in it and decided to do a JV rehab.
My Aussie partner funded the $50K, plus closing costs and reimbursed the EMD, plus gave me $15,000 to do the repairs. The plan is to be complete by end of June.
Close of escrow was May 30th. I made $2,000 for wholesaling my half.
Cash earnings with none of my own money so far, using the 25:1 strategy: $28,270
Projected earnings after 3 JV rehab/flips: $63,270!
Do it again, do it again!
If you are not doing deals, if you think you can't flip REO's, if you think you can't rehab because you have no money and no credit, you can do this if you do it with fear, do it with a headache, think smart, work hard, and stay focused! Combine what Dean teaches us, what Matt has perfected, what so many DG Superstars are doing with finding out what you don't know in your own market and Voila! You're a Real Estate investor!
Never, Never, Never Quit, N3Q
"Nothing happens until you place an offer."
"Skip Deal #1, go straight to Deal #2; it's so much easier."
"There is nothing so useless as doing efficiently that which should not be done at all." — Peter F. Drucker... so, "Don't sweat the small stuff." -R.Carlson. "The greatest mistake you can make in life is to be continually fearing you will make one."~E.Hubbard, The Note Book, 1927...so, Do it for the right reason and "Do it with a headache!" - Dean Graziosi, Weekly Wisdom #176