How I Made $200 Buying My Latest Deal

So let me start by saying there are some perks to being a Realtor, I am one to warn people about getting into the industry because of the hidden things people don't tell you about being an agent.

But that is for another day, today I am going to talk about my latest deal, because I have access to the MLS and can manipulate that software to provide me with the best deals on the market for my clients and myself I have great deals almost every day.

I bought two vacant lots that the bank tore the houses down because the local code inspector would not let them sell the homes in their current condition, so I offered them $100 on a asking price of $1. There is a method for my madness and the main reason why I gave them $99 more is because at least in my state if you pay $1 for any property you will pay the transfer tax on the assessed value of the property.

The bank wanted me to pay both sides transfer tax and that would have been $1400 total on the $1 transaction, because I was able to pay them $99 more then they were asking I paid the transfer tax on $100 and that ended up being $2.

Overall my closing costs are around $1300 and I am making $1500 in commission on the deal, so essentially the bank who is the seller just paid me $200 to add two vacant lots to my portfolio.

It isn't going to make me rich but anytime you can add real property to your portfolio AND get paid to do so that is a small perk.

Even at $1300 buying two lots isn't a bad deal, I will either sell it to the neighbors for a few thousand or maybe build a garage on the lot and rent it out.

Happy holidays!