A Real Estate Agent called me one afternoon at the behest of a homeowner that had a listing with them. The reason behind the owner suggesting for the agent to call me was because I had sent him one of my yellow marketing letters.
I wasn’t too excited about dealing with an agent because their properties are usually overpriced, and what a hassle it is to fill out the 40 Page contract that agents usually require, and let's not forget the $1,000 earnest deposit they ask you to cough up just to make an offer.
This property was of course listed on the MLS, and my experience is if it’s a half way decent deal the Investor sharks are swarming in a feeding frenzy making offers and driving up the price even more. I really wasn’t interested. But this Agent was persistent.
The old farm house was a 4/1, 1100 SF 2 Story on a ¼ acre that was totally trashed, it was 45 miles out in the country in this small tumbleweed one horse town, and someone had even stolen the front door. It had an ARV of $140K and was listed for $59,900.
It had been on the MLS for several months. It seemed like it could be a great deal. Why hadn’t anybody else seen it?
Raul (real estate agent) wanted me to go the normal route of filling out the purchase contract and making a formal offer. I actually wasn’t expecting much and told him to just call the sellers and offer them – $45K CASH – with a fast closing.
If they accept then I would fill out your contract. I figured that would be the last time I heard from him.
Imagine my shock and surprise when Raul calls the very next day and tells me they accepted my offer – Crap! Perhaps I should have offered $40K because I didn’t even get a counter offer.
Raul emails me the 40-page contract, I loaded some ink in my printer and printed every stinking page, and initialed and signed, then scanned and emailed them back to him. This ordeal took 45 minutes and I remember I was getting a bit agitated while doing it. In hindsight, it was a lot easier than driving the 45 minutes to his office for a deal I never thought would happen.
I then emailed my buyer. I remember thinking to myself – he’s never going to want this near the listed price. After all, he’s a Realtor/Broker. But then I thought, hell, it was worth a try.
I sent it to him at $58K and again was shocked when he said he had a friend that wanted it. I actually screwed up & sent the buyer the assignment for 12K. Can you say math lessons?
I was surprised that Raul never asked for any earnest deposit.
The deal took only a few weeks. I have never seen this house, I never met Raul or the sellers, and I still haven’t met my buyer even though we’ve done 15 deals at the time thus far.
Heck, I never left my house except to pick up my check. I had no risk, no money in this deal and nothing to lose.
Apart from getting an assignment fee check for $12K out of this deal, Raul, who is an older Spanish guy, became one of my new best friends. He’s promised to bring me many more deals.
Here is the bad ass Harley I just purchased using my wholesale profit check. Something I’ve wanted since I was in diapers.
Let’s make some MONEY.