My 1st driving for $ deal, $40k assignment fee

18 Replies

I have been on an off with my d4$ campaign without any success at all.

However, that method is mentioned by several guests on the podcast, so I decided to work on that again.

Here is the details of the deal.

Contract price: $530k

ARV: $800k (my conservative estimate, eventually it was sold for $832k)

repair cost: $80k (the guy who bought it said it is $130k, I think it should be closer to $100k)

rehabber bought it from me at $570k, there is still a $230k spread (based on my estimate,

the real spread is $262k)

Lesson learned:

The median price in that neighborhood is around $1.1M

I never thought I could find a d4$ deal in that area.

Wow! That is awesome! Congrats!

Congrats on a great deal! Can you tell us how you made contact with the owner and negotiated the deal?

I sent a letter and the owner called me back, not immediately though, it was about 3-4 months after I sent out the letter.

Congratulations, Yu!

@Yu L.  - your profile says you are in the Bay Area. Can I ask what city this deal was in? And congrats!!

I was on the other side of a similar transaction. I was contacted by an agent who saw that I was a serious buyer in the neighborhood. He had found a willing seller via a letter campaign. Seller was ready to deal, but to seal it he agreed to take his commission from the buyer. 

I agreed to pay a 2.5% commission as long as the deal worked for me economically, since I was looking forward to an off-market deal (most deals in the market are listed and have tons of competing buyers). As it goes all will parties will get what they want. I will get my off-market deal at a good price, the Seller made over $200k from when he purchased at the market bottom (2010), and the agent will make over $30,000 on this deal (sales price north of $1.2M). 

Congrats man that is great to hear!

helluva first d4$ deal! Don't expect them all to be that good but keep up the hard work!

40k on a d4$ deal is awesome!!!!  Congrats!  Persistence paid off!

@Yu L.  That is suuuper inspiring! I keep meaning to get really active on this strategy and haven't quite made the time. Now I will, and I'll do it knowing that I will likely do it for a long time without getting anything, but I'll keep in mind that you never know when you just might make 40k from sending a letter. Thanks for the inspiration.

congrats! It is exciting to see that the direct mail pay off

@Yu L.  undefined Congratulations on your much deserved success. Can you provide additional insight into your d4$ campaign? How did you identify a potential house while d4$? How did you introduce yourself to the seller/got in contact with the seller? Some additional insight would be great.

Thanks again 

HOLY COW! You hit the JACKPOT!

Here is what the house looked like before.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here