How I "made" 15K with a phone call
I'm not a big time REI with a huge system and team I bought my first house in '07(guess what the ROI on that one is haha) that I still own along with a few others.
This is really partially a response to a few posts I've seen in the last week by people bemoaning the fact that they're about to lose out on their first deal, and sounding whiney in the process. This is the success story of how I lost one deal and got a better one within the same day!
Last week I got an email from a wholesaler in FL where I invest with a 3/2 under contract for 35K, needed a new roof and some drywall(from the roof leak), new vanities in baths, and an enclosed carport that needed some straightening out(or demo) so probably 12-15K or so for about $800/mo with no A/C unless I put in window units or was to add one(not happening) comps were about 60K-65K. Not bad, but not great either, but I had some money and been looking for something for awhile so I didn't want to keep having my cash sit idle so I was really considering it and decided to think over the weekend.
The day I finally decided I was going to pull the trigger, he already has a contract. That same morning while sitting with my coffee I had been goofing around on zillow looking at street view of the area, when I saw a 3/1 listed for 29K. Of course this listing is going to be 267 days old and sold already and zillow just sucks right? No it was less than a 2 weeks old, so I give the listing agent a call, it's a SS that is under contract but the inspection contingency is up today, and he'll let me know if something comes up.
6 hrs later I get his email blast to all the cash buyers he knows, I pick up the phone and give him a call. The property was under contract bank approved at 19.5K so my mom goes by the place to check the condition and phone walk me through the house, it's in a nicer better kept street than the first one so we already started well. Turns out it is actually a 2/1 with a large extra room(no big deal it's not a 3/1) this one has new roof and electric in '04 a new A/C system that is maybe 4 years old, and has recently refinished hardwood floors. It needs maybe 2 new windows, ,a new front door, the laundry room and kitchen need new tile and the laundry room needs new drywall so maybe 5-7K total for about $700/mo comps in the area were about 50K.
I say yes, she cuts him a check from my account for the EMD and he emails me the contract to sign and send back.
Oh and an added bonus it's zoned Restricted Commercial with non conforming residential use, so I'll have to find out what could go there, but there is a potential for future development upside, if not oh well it will still CF nicely.
I know that is a pretty long post but I say that for all the people starting out, don't worry about the deal that got away, or try to make something that's not turn into a deal just focus on the next one and they will come eventually.