My 1st driving for $ deal, $40k assignment fee

[Yu L.]

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)

Lesson learned:

The median price in that neighborhood is around $1.1M

I never thought I could find a d4$ deal in that area.

[Brian Moore]

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).