I’m currently working on my longest deal ever. So far it’s been about eight months in the making. Let me show you how this deal evolved so you can learn how to make $70,000…with only a few hours worth of work.
About eight months ago one of my partners got a lead from a guy who owns a beachfront condo in Virginia Beach, VA. It’s a gorgeous condo in perfect condition. The owner is an “eccentric” individual who travels a lot and didn’t want to have to deal with the property anymore.
I met with this owner twice in person to negotiate the deal. At first I thought it was going to be an awesome lease option deal. The mortgage balance was relatively low and the place could be rented out for $3,000 a week during the peak season. My partner and I were looking at over a thousand dollars a month in cash flow.
These people almost killed the deal!
However, lawyers got involved, there was a mix up with the condo association and the seller got “scared” and changed his mind about the lease option (if there are two deal killers in this business it’s lawyers and Realtors…but that rant is for another time).
Anyway, I thought the deal was about to blow up for good when the seller agreed to let us wholesale the property. We currently have the property under contract for $495,000.
Now, over the last eight months I have not done a thing and my partner has been a Saint. She has taken care of marketing the property and most importantly dealing with the seller. Apparently this guy calls her on a weekly basis which would have driven me crazy.
A Secret of Success: Find a Balance to your Weaknesses
By the way, that’s one of the “secrets” about becoming successful. Surround yourself with people who balance out your weaknesses. I’m good at negotiating which is why I handled all of the negotiating and meeting with the seller on this deal. Then I turned it over to my partner who is good with details and handling people.
Because if I would have had that guy calling me once a week I would have told him to buzz off and would have probably killed the deal.
So… my partner called me earlier this week and said she has a cash buyer (the best kind and only kind you want to deal with when wholesaling). We’re in the negotiating stage but it looks like we’ll settle for around $670,000 on the sale price. That’s a great deal for the buyer since many of the condos are selling for more than one million dollars.
And, when the dust settles and closing costs and other costs are taken into account my partner and I should make around $70,000 each, give or take a couple grand.
How to Purchase Real Estate With No (or Low) Money!
One of the biggest struggles that many new investors have is in coming up with the money to purchase their first real estate properties. Well, BiggerPockets can help with that too. The Book on Investing in Real Estate with No (and Low) Money Down can give you the tools you need to get started in real estate, even if you don’t have tons of cash lying around.
Why we all Need Partners
Best of all, after the first negotiations I have done very little. Which is why I highly recommend partnering with people.
You see, if you’re a broke investor, partner with someone who has money and split things 50-50 and if you have money, partner with someone who will find deals, but doesn’t have the cash.
This is how I do a lot of my deals these days. I have a very small group of people whom I trust. They bring the deals, I put up the cash and I make money from deals I would have never come across myself.
I’ll keep you updated and let you know when this deal closes. I won’t be surprised if something else pops up; because this has been one of the most unique deals I’ve ever worked on.
Photo Credit: Beadmobile