BOOM BABY! $9,000 Assignment Fee on My FIRST APPOINTMENT & DEAL

BOOM BABY! $9,000 Assignment Fee on My FIRST APPOINTMENT & DEAL

So, I put up about 40-50 bandit signs out during the weekends and take them down Monday morning. I did this for about a month.

One month.
I know I've been a member for a while now but I finally made the decision to stop contemplating to evaluate to consider to decide and conjure and..whatever.

SHOOT FIRE AIM READY!!!

I got about 8 calls from this. The first call was from a local real estate investor looking to buy the houses I'm looking to wholesale. GREAT! I didn't know this at the time but we had met before at the local monthly real estate meetups. He is the host. A couple other phone calls were unmotivated, a few were over indebted and referred to a Short Sale Realtor. One week, a guy calls on a weekday from the ONE SINGLE SIGN I left up by accident.

After talking with him over the phone I found out that his wife passed away and it was their dream to fix the place up but now he just wants to be done with the home and move out of state by the 5th of next month. The details are a blur but I could tell he was motivated so I decided to meet with him to look at the home.

I was really nervous because this was my FIRST EVER appointment. I had my lowest of the low comparible sales, two copies of a purchase contract, note pad, and my highest price jotted down on my folder so I knew my highest price.

The home owner had a crew working on the house. The carpets were ripped up, the kitchen cabinets were taken off, junk laying everywhere in the backyard. It's quite the story this guy had about the home and the plans he had for it. They had done A LOT of renovation. They added a new deck, they replaced all the electrical with a new panel (his wife was an electrician), they added a bath downstairs...The list goes on and on...And they had ZERO permits. I was a bit concerned.

Homes in that area were selling for around $100+ with comps in similar condition at $42,000. I had two similar to that price ready to show him.

So, after looking through the house and finishing up, I estimated the repairs at $14,000. Tax assessment is $81,000. I asked what he was looking to get for the property and he said $55,000, $50,000 if I do the carpeting.
I said that for me to come in and finish all the repairs, I mean, that's a lot of work, is $50,000 the best you can do?He paused, thought about it, and said that he guessed he could do..$45,000. I said well, for what needs to be done, I mean, it makes me nervous, just on this street there's 5 houses for sale. That one on the corner has been listed since 2007 for $70,000! I mean, bear in mind, my offer is going to be your net number. You wont have to deal with closing costs, Realtor fees, concessions, having people trample through the house. We can close and we can close quick. I need to be at $30,500...I raised my eyebrows, kind of sad actually, I felt bad...I shut up. I didn't say another word...He broke eye contact, shuffled his feet, nodded his head, and said "well, let's meet in the middle, you're at 30, im at 45..$37,000."

"Honestly, Mr. Seller, that makes me uncomfortable. I'd be willing to go up a few thousand. I could work with $34,000."

"Okay."

Okay?!

I had factored in $7,500 for an assignment fee. It just went to $9,000 at my estimated sell price of the taxed value.

It was raining out and we were outside under the small, painted copper awning for the front door. I was so excited I pulled out the purchase contract to start filling in information and got it wet.

We signed two copies of the contract, I put the home on a lock box, I immediately opened up escrow and told them to start a title search.

I marketed the property for $42,700.
My buyers list was pretty small. The first guy I called was the guy that called off my bandit signs. He met with me the next day. Told me he JUST SOLD A HOUSE 3 HOUSES OVER. Lol. Yup. Sure enough, I only saw 4 for sale signs up.

He pointed out things that I didn't notice in my repairs. The stairs had to be brought up to code ($2,500), the attic needed insulation ($1,000), on and on... He told me the repairs were going to be over $30,000!

But here's the kicker. The house is in the tax records as a 1 bedroom 1 bath 820 livable sq. ft.
The basement has 2 bonus rooms that can potentially be converted to bedrooms if you add egress windows.

So there was tons of potential. Much more than the $81,000 tax assessed value I had run my comps on. The house he sold right nearby sold for $150,000.

After exhausting my buyers list, running an ad through postlets for a few days (I must be impatient). I take the listing down and decide to partner with him. He does an email blast of THIS:

http://wahomesolutions.com/listings/handyman-special-bremerton-cash-chea...

to his buyers and several people want to see the home ASAP.

I meet with them there, one investor says he'll take it. The other says he will pay $2,000 more. I decided NOT to accept any higher bids. I could tell this first guy that's gung hoe about the deal is a serious buyer. He told me he wouldn't have come if he knew there would be a bidding war. I ask him do the assignment for an additional $300 to make it an even $43,000. I pulled out a contract right there and he wrote a non-refundable earnest money deposit for $2,000 with us standing on the sidewalk.

BOOM BABY! My partner and I meetup afterwards to decompress and talk about the Escrow process. He asked how I negotiated.
"You're like a negotiating ninja." he says.
"Haha, I listen to a lot of podcasts. I think I'm starting to talk like him."..

"Would you feel comfortable getting on stage at the next Real Estate Meeting?"

I did that about a week ago. I'm now seeing about 3 different YELLOW WE BUY HOUSES SIGNS, lol.

Funny thing? I get home that day, open my mail box to find my W-2. $9,400 from Lowe's.

One lonely bandit sign in the middle of a work week was left out and this guy calls from it. The one single cash buyer that calls from my bandit sign is the one that helps me the most out of everyone. My FIRST motivated seller, My FIRST appointment and my first OFFER! and I get an assignment fee that nearly matches the equivalent of what I made working part time all year at Lowes.

Hah. Wow... This is awesome.

I made the mistake of not listening to my partner and offering the property for much more. I made the assumption that a postlets listing that is blasted out to zillow, redfin, etc. would remain forever in the listing history. I had already listed it at 42,700 and didn't want it to be marketed at a higher price when investors went to look at it.

Though I did do this also for the seller because he wanted to leave on a particular day coming soon and I was able to make that possible. Knowing what I know now it really didn't matter much because we could have fedExed everything.

The $300 that was negotiated for a higher price I wanted to go towards the seller for hotel costs because he was staying there during construction.

We'll each be earning $4,350 - some escrow fees. I also learned that title companies here charge a higher rate for transactions that are not facilitated by a realtor. I now have a realtor in place that will be involved simply to offset the premium escrow fees.

__________________

"A man who has never lost himself in a cause bigger than himself has missed one of life's mountaintop experiences." Richard Nixon


Wow a bunch of first

and you are a partner with him now it seems. So am I correct that you made 18K on this deal and split the profits 50/50? Anyways great deal!

__________________

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http://www.rehabvaluator.com/f FREE SOFTWARE FOR WHOLESALERS, REHABBERS AND AGENTS! Present professional looking deals to buyers and lenders as well as run your numbers and get the ROI.


Awesome Job!!

Thats awesome! Keep up the work man!

__________________

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Jason Bly (The RE_Situation)

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Anomic

Good well done.

You should be proud of yourself.

__________________

Dan

www.danbuyshomesfast.weebly.com


Jon

I know you have been here for a while, so I am so glad that your hanging in and not giving up has paid off for you!

Are you going to maybe be able to team up with this buyer in the future and maybe get him to mentor you? Sounds like it worked out well for you both, so maybe he will be open to it.

You gave us a GREAT step by step on this deal! Very interesting! I am sure this will help a lot of people on this site.

You also did an amazing job with your negotiating. I would never have thought this was your first appointment. You must be a natural. Just think what you will do when you have done a dozen of these!

Awesome, awesome job!

Karen

__________________

"You're never too old to be what you were meant to be!"

www.deangraziosi.com/real-estate-forums/investing-journals/59128/day-for...

"Shining Like a Star & Dancing on Sunshine"

"Shoot for the moon! Even if you fall short, you'll still land among the stars!"


I'm new to the site, just

I'm new to the site, just began dean's "30 days to real estate cash". I'm 24, a year and a half out of college, and very ready to get my real estate investment business going. posts like this are very encouraging.


Whoa!

Talk about negotiating! lol

Awesome!

Tons of experience for a first deal!
and a pretty nice payout!!!

Way to go Anomic!

Laughing out loud


Re:

Great work...sweet deal! Congrats...and I also appreciate your "step by step" detailing, it helps us other newbies better understand!

__________________

"The American Dream REI"
Michael Woolley


Fantastic

You put in the effort and got results. Thanks for sharing all the details.


Love your Deal!

Jon,

you sounded just like Matt negotiating the deal... 'is that the best you can do? I mean, the houses right down the street are selling for a lot less... it's not me, it's those darn foreclosures' etc, etc.

What a great deal! so happy for you!!!

__________________

Valerie

“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss

"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown

My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...


CONGRATULATIONS!!!

Your story truly makes my heart sing!!! Thank you! I appreciate you sharing your story!

__________________

I AM THAT I AM

Follow My Awesome Journey Here:
http://www.deangraziosi.com/real-estate-forums/investing-journals/130178...


Great Job!

Way To Go!

Keep up the momentum! WOO, HOO:o)

Romaluv22
Signing Out,

__________________

Hello, and thanks for having me. I have finally made up my mind to take control of my own destiny, with a little nudge, I think I will do well, again, thanks for having me aboard.

Romaluv22


Ok

Something I must point out here. Do your banit signs have a google number on them? If they do...leave them up!! You go a deal on the one you forgot so what is the worst that could happen if you leave them up? They call your google number and tell you to take them down or they will try and figure out who you are with a computer number and give you a ticket...Been there done that....Leave them up and congrads...NOW GO GET SOME


Momentum is on!

What a beautiful and inspiring story! Congratulations my man! As I was reading your story, all that runs through my mind (as I just got on board with Success Academy)is it is not only possible, it is becoming the norm!
I headr one person say that success leaves trail. Dean and his marvelous team are pulling us by the hand and putting us on the exact trail that we need to follow.
This being said, Anomic you are my hero. Many talk, a few do. You are a doer and I applaud you my friend!

__________________

When the going gets tough, the tough gets going.


Nice

Congrats, man! Way to go ~ rinse & repeat!

Anomic wrote:
So I put up about 40-50 bandit signs out during the weekends and take them down Monday morning. I did this for about a month. I got about 8 calls from this. The first call was from a local real estate investor looking to buy the houses I'm looking to wholesale. GREAT! I didn't know this at the time but we had met before at the local monthly real estate meetups. He is the host. A couple other phone calls were unmotivated, a few were over indebted and referred to a Short Sale Realtor. One week, a guy calls on a weekday from the ONE SINGLE SIGN I left up by accident.

After talking with him over the phone I found out that his wife passed away and it was their dream to fix the place up but now he just wants to be done with the home and move out of state by the 5th of next month. The details are a blur but I could tell he was motivated so I decided to meet with him to look at the home.

I was really nervous because this was my FIRST EVER appointment. I had my lowest of the low comparible sales, two copies of a purchase contract, note pad, and my highest price jotted down on my folder so I knew my highest price.

The home owner had a crew working on the house. The carpets were ripped up, the kitchen cabinets were taken off, junk laying everywhere in the backyard. It's quite the story this guy had about the home and the plans he had for it. They had done A LOT of renovation. They added a new deck, they replaced all the electrical with a new panel (his wife was an electrician), they added a bath downstairs...The list goes on and on...And they had ZERO permits. I was a bit concerned.

Homes in that area were selling for around $100+ with comps in similar condition at $42,000. I had two similar to that price ready to show him.

So, after looking through the house and finishing up, I estimated the repairs at $14,000. Tax assessment is $81,000. I asked what he was looking to get for the property and he said $55,000, $50,000 if I do the carpeting.
I said that for me to come in and finish all the repairs, I mean, that's a lot of work, is $50,000 the best you can do?He paused, thought about it, and said that he guessed he could do..$45,000. I said well, for what needs to be done, I mean, it makes me nervous, just on this street there's 5 houses for sale. That one on the corner has been listed since 2007 for $70,000! I mean, bear in mind, my offer is going to be your net number. You wont have to deal with closing costs, Realtor fees, concessions, having people trample through the house. We can close and we can close quick. I need to be at $30,500...I raised my eyebrows, kind of sad actually, I felt bad...I shut up. I didn't say another word...He broke eye contact, shuffled his feet, nodded his head, and said "well, let's meet in the middle, you're at 30, im at 45..$37,000."

"Honestly, Mr. Seller, that makes me uncomfortable. I'd be willing to go up a few thousand. I could work with $34,000."

"Okay."

Okay?!

I had factored in $7,500 for an assignment fee. It just went to $9,000 at the estimated sell price.

It was raining out and we were outside under the small, painted copper awning for the front door. I was so excited I pulled out the purchase contract to start filling in information and got it wet.

We signed two copies of the contract, I put the home on a lock box, I immediately opened up escrow and told them to start a title search.

I marketed the property for $42,700.
My buyers list was pretty small. The first guy I called was the guy that called off my bandit signs. He met with me the next day. Told me he JUST SOLD A HOUSE 3 HOUSES OVER. Lol. Yup. Sure enough, I only saw 4 for sale signs up.

He pointed out things that I didn't notice in my repairs. The stairs had to be brought up to code ($2,500), the attic needed insulation ($1,000), on and on... He told me the repairs were going to be over $30,000!

But here's the kicker. The house is in the tax records as a 1 bedroom 1 bath 820 livable sq. ft.
The basement has 2 bonus rooms that can potentially be converted to bedrooms if you add egress windows.

So there was tons of potential. Much more than the $81,000 tax assessed value I had run my comps on. The house he sold right nearby sold for $150,000.

After exhausting my buyers list, runnign an ad through postlets for a few days (I must be impatient). I take the listing down and decide to partner with him. He does an email blast to his buyers and 2 people wants to see the home ASAP.

I meet with them there, one investor says he'll take it. The other says he will pay $2,000 more. I decided NOT to accept any higher bids. I could tell this first guy that's gung hoe about the deal is a serious buyer. He told me he wouldn't have come if he knew there would be a bidding war.

I have him do the assignment for an additional $300 to make it an even $43,000.

BOOM BABY!

Funny thing? I get home that day, open my mail box to find my W-2. $9,400 from Lowe's.

One lonely bandit sign in the middle of a work week was left out and this guy calls from it. The one single cash buyer that calls from my bandit sign is the one that helps me the most out of everyone. My FIRST motivated seller, My FIRST appointment and my first OFFER! and I get an assignment fee that nearly matches the equivalent of what I made working part time all year at Lowes.

Hah. Wow... This is awesome.


oh so sweet

Hi Jon way to go and quite a bit of on the deal training but isnt that what deals are all about, there all different and thats how we grow in life, get out there and solve problems!!!!!Take your hat off and give your self a humble pat on the shoulder and lets get back out there and get some more, isnt life really fun, great job, Jim

__________________

jbischoff


Amer

Thats awesome!


NICE WORK!

Regardless of it being your 1st, sounds like you were prepared with the knowledge of activities in the area, and you played your position well. Way to score! Clarification: Did you split $9K in the end, the profit spread between the Seller's $34K & End Buyer's $43K? Keep playing hard!

__________________

You can't build a reputation on what you are going to do. - Henry Ford -


Thank you for posting your victory!

I and my husband are brand new to REI.i really appreciate your ability to share your experiences. I just started reading the "30 Days..." book & am extremely excited to get our 1st deal. Continued blessings to you. You have now worked yourself out of a part time job! Congrats!


Way to go! It's great to

Way to go! It's great to hear such detailed stories of your first deal. It helps new people visualize their own success, I know it helped me! Did you end up putting up any earnest money for this deal?


That deal was fantastic

Jon;

Great work and quite an inspiration to us all! Keep up the good work!

__________________

Pauline Timmons


Good Deal

I thought what you done was Very Good and Very Fast.


Follow Up

To everyone:

I made the mistake of not listening to my partner and offering the property for much more. I made the assumption that a postlets listing that is blasted out to zillow, redfin, etc. would remain forever in the listing history. I had already listed it at 42,700 and didn't want it to be marketed at a higher price when investors went to look at it.

I PUT UP NO EARNEST MONEY.

Though I did do this also for the seller because he wanted to leave on a particular day coming soon and I was able to make that possible. Knowing what I know now it really didn't matter much because we could have fedExed everything.

The $300 that was negotiated for a higher price I wanted to go towards the seller for hotel costs because he was staying there during construction.

We'll each be earning $4,350 - some escrow fees. I also learned that title companies here charge a higher rate for transactions that are not facilitated by a realtor. I now have a realtor in place that will be involved simply to offset the premium escrow fees. Laughing out loud

This success story also won me a $1,000 cash prize within the Flip2Freedom Academy! http://flip2freedomchallenge.com/

__________________

"A man who has never lost himself in a cause bigger than himself has missed one of life's mountaintop experiences." Richard Nixon


Awesome....

just awesome. Great story.


I love it!

Great job! Thank you for sharing your success story with us!

__________________

LaLa, NoMore40HourWeeks.com
"You don't have to be great to get started. But you have to get started to be great at anything."-Je'Caryous Johnson


sweet

thanks for sharing. I just read the 3days to real estate cash book this week and excited to get my business going.


Anomic

Great job! Thanks for all the details. It makes the post more understandable as to what went on. I'm still waiting to do my first deal. I have had a couple of motivated sellers, but the deals were not good deals.
Keep up the good work and awesome posting.


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