How I used Facebook for my First Deal

[John Van Uytven]

I joined several Facebook "buy and sell groups" in my local area. Some only target real estate, but I didn't use them for this deal.

I only made 2 phone calls to the original owner all other contact was done through posting on Facebook and Facebook Messenger.

I found this property on one of our local county buy and sell pages.

Where it is located. In a small town of roughly 1,000 people, the town I went to school in for my entire life.

This was a rental house, the tenants caused a fire earlier this year, it also came with 3 additional lots. JJ the owner was asking $10,000 obo.

Why I was interested. Someone made a comment and asked if he would do Contract for Deed. JJ's response was "No"

After seeing this, I messaged the commenter and I asked if I bought it, would he be interested in CFD if I added $4K to the cost to help cover everything. He said "Yes".

As soon as he said "Yes", I messaged JJ and told him I was interested.

I called JJ, we chatted about the house and condition.

I offered him $5,000 cash and I would take care of the closing cost.

JJ's response was he had to talk to his wife and call him in 2 days.

I did that, and they accepted the offer.

After closing, we found out that it wasn't 3 lots extra, but 5 extra lots.

Even better of course.

The original commenter backed out.

My back up strategies were as follows.

1. Sell it.

2. Contract for Deed

3. Sell the lots and house individually

4. Have my brother bull doze it into the ground and then sell the lots

5. Fix it and personally live in it

What I did next.

I had saved the originally pictures and re-posted them to the local Facebook "buy and sell" pages.

Basic ad: selling this house $11,000 and will do CFD.

Within minutes I had people asking about the property. (Since this is a rural area, I am not kidding the first 3 people to message me where: Merl, Virgil, and LeRoy)

A few hours later, my best friend from school, younger brother("Jim") messaged me and said his Mom would probably be interested since I was doing Contract for Deed. (A little back story, this woman is like a 2nd Mom to me. She and my mother were best friends in school as well.) I messaged her, told her I was selling the place for CFD. The price and terms for my CFD, and then the price for her and the terms for her price and interest rate. I know it's an emotional price, but she's family to me.

She said she only wanted the 2 lots neighboring her current property and offered me $4,000 with CFD. I told her I wanted to sell the whole thing. She said she would ask if around and tell people it is for sale for $10,000.

Few hours later, her other son("Sean") messaged me and said he would be interested in buying the house and remaining lots on CFD. I offered it to him for $9K, even though his Mom said $10K. He offered $8K and I accepted.

The deal wraps up like this.

Bought the property for $5,000

House sold $8,000

12% interest

$400 down

$200 a month

Balloon payment after 18 months.

Two Lots

$4,000

10% interest

$200 Down

$200 a month

Balloon payment after 18 months.

I knew before they said it, but they both told me plan to pay off or significantly pay down what they owe with their tax refunds. At the beginning of next year.