Nice first deal

[Ryan Webber]

So I bought this very nice 3000 sq ft house in a nice area. It would probably sell for 225K-235K fixed up. It needs about 8-10K in updating. I buy it for $150,000 feeling kind of worried about the whole deal because of its size, but it's in a very desired area so I jump on it. Keep in mind you big city guys that the average house in my area is about $130,000 and I normally deal with houses under $50K. Plus my market has really slowed down on houses over 200K.

So after a couple weeks I get a contract for $165,000 on it from a new investor. He's a young ambitious realtor wanting to rehab it. He's going to do the work himself and list it himself so there was still 35K+ profit margin in it for him. He asks if he can put his sign in front of it to start marketing it now, and I tell him that's fine. Its his first deal, and he's all pumped about it.

We're supposed to close on the 16th and I get a call from him tonight, and he tells me that he just got a contract on it to double close for $185,000!!! :shock:

I have to admit my first reaction was a little bitterness. I guess I always like to see the blood, sweat, and tears from the newbies. Either way I congratulated him and walked him through some of the steps of the process. If it all goes through the only thing he'll have invested is a couple hours of researching and a handful of sleepless nights and he'll make almost $20,000 after closing costs on his VERY FIRST DEAL.

Well, he said that he swept up the porch, too. :roll:

Not bad for sweeping.