My First Assinment of Contract

14 Replies

I researched several properties in the Palm Bay Florida Area. I picked out the 10 that I was interested in by looking over the local Lis Pendens list for the county. I physically drove to each and every one of these properties and knocked on the door. The first door I knocked on was answered by a 6 feet 3 inch tall man that looked like he weighed about 215 pounds. Intimidated I was to say the least. I am in the Army and I am about 6 feet 1 inches tall and 180 pounds and in great shape, but here is a man going through foreclosure and some stranger is knocking on his door. Long story short the man wasn't interested in what I had to say. Several other houses were already vacant or no one was home. (Thank God) However that same night I received a phone call from one of the letters wanting to set up a meeting. I met with this guy and found out he was 6 months behind on the mortgage and wanted to be out of the house. I called the law firm that worked for the bank and found out after all fees it would take $96,000 to pay off this 4 bed 2 bath house in Palm Bay FL. The house was worth $135,000 ARV. It only needed Paint, Carpet, and a good cleaning. I posted a craigslist ad and it was answered by a lady who works at a title company who had a guy that buys 4 bedroom houses. This guy paid $5,000 for the contract and I split it 50/50 with the lady at the title company. This deal took about 5 hours and I made $2,500. I then did another similar deal with the same lady at the title company, but this time she bought the house. I made $4,500 on this one and I never even went to the house with about 3 hours of work. I have only done 5 total deals and I have 3 rentals. I am just getting started in this business, but I plan to build an empire with it soon.

Good stuff man! I admire the work you're putting in to make it happen. I'm looking for buy and hold deals on the MLS but in this market, it's getting very hard to find them. Its looking like your method is the way to go.

I personally Prefer the buy and hold method. I like getting the cash and helping someone out of their burden, but at the end of the day after the deal is done it's time to start over. However, it was very nice to give this guy a envelope full of cash that he was not expecting. This was to help him get his affairs in order and it made me feel great! His face and handshake after leaving the closing table was probably the most satisfying. Always remember to leave some money on the table for others.

Good job Brent, you are becoming a wholesaler, let me know if you are getting more deals, I have been looking for a wholesaler in Brevard County, I am in Melbourne too, but no luck so far. I finally found a good deal in an auction, that's another good way to find them without knocking on any door.

Nice job @Brent Bowers !!  What was your response rate for your letters (how many calls you received vs. how many you sent out)?  Also, did you write your own letters or hire a service to do the job for you?

@Wendy Vaidic, I did not really track my response rate. But, for the driving around Palm Bay I went to 10 properties and the ones that had no one home I left hand written letters on notebook paper. 1 out of the 10 were answered so in this rare case it was 10%. I prefer the hand written note because it's different and most people will read it.

Really the key to finding deals is treating it like a business. Do Income producing activities every day. I try to do that for at least 30-40 minutes a day. Some weeks more, and some weeks less. 

@Brent Bowers ,

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Raymond

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