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)
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.
@Yu L. - your profile says you are in the Bay Area. Can I ask what city this deal was in? And congrats!!
@Brandon Foken It is in Redwood City, CA
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.
HOLY COW! You hit the JACKPOT!
Here is what the house looked like before.
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