I sometimes give this homeless guy $5-$20 when I see him. He said his name is William but to call him Bill. He hangs out near the Walmart parking lot entrance near Shaw & Peach but he's not your typical druggie alcoholic transient. This guy is crippled and seems reasonably clean cut. One day I asked Bill if he'd like to make some money, he looked surprised and asked “What can I do”?
I gave him my card and told him to find me vacant boarded up houses. In the last few months he's sent probably about 20 addresses of potential deals. Well, wouldn’t you know it – I actually got one of his houses on contract for $25,000.
I wholesale quit a bit and I've built up a index of “go-to” investors. I checked my buyers list and found an investor in mind that this deal would fit perfectlyinto his investing plan. I ran it past my buyer and he wanted it.
I wondered how the $2,000 bird dogging fee/commission I'm going to give Bill will change his life.
After waiting a few weeks my buyer never returned the signed Assignment of contract – so I moved on to “Plan B”. I then ran some ads on Craigslist. Because the property was in such bad shape and in such a bad area I made a few price adjustments. In less than a week I found a good cash buyer investor and still at a good profit margin.
The deal came out as $25,000 purchase price. I wholesaled it to my buyer for $31,000 and he pays closing costs.
The ARV on this house is estimated at $70K sits on a ¼ acre. The garage was converted into a bedroom and also a back room was built onto the house and probably not permitted. The buyer will probably spend $10-15K and will rent it out at $800 per month.
What Happend Next?
I had explained to Bill the process can take weeks for us to get paid commission. He tells me that when we get our money he’s going to buy a scooter to find me more houses. Well, I started looking online and found a nice 50CC 4 stroke Scooter with suspension and disk brakes and I went ahead and ordered it.
It arrived by UPS in a big box, I removed the Styrofoam and bubble wrap and pulled out a gorgeous red and black scooter. I attached the handle bars, gas tank and seat, I added some oil and gas and after a few pulls it started right up with a quiet purr.
I rode the scooter a few blocks to where I knew Bill would be sitting, as I rounded the corner Bill looked surprised and puzzled and said “nice Bike”. I said,, “You like it? It’s yours”.
I handed over the scooter to Bill and the look of surprise and joy was priceless. Bill was smiling while thanking me and I told him, “Hey, you earned it and you got a bunch more money coming”.
It sure made me feel good. I even got a few photos. Bill has already been sending me leads and he seems very motivated. Of course you got to be thinking, if a homeless crippled guy can find deals then I sure as hell can.
Let’s make some MONEY…..