My First "Cash for Keys"...As A Wholesaler

[Rob Scarborough]

Hello BP Nation!

I'm a fairly new investor (1 flip sold, 3 completed flips currently on the market, and 2 wholesaled properties - all in 2015).  However, I listen to the BP Podcast every week.  I spend more time than I should, although not as much time as I would like, on the BP website.  I've learned a wealth of info over the past 18 months.

I have received most of my best leads through "driving for dollars."  The house on Colorado was no different.  The homeowner called me August, 2015 from a handwritten yellow letter I mailed him in November, 2014 and a postcard in January 2015.  We discussed his house and set the appointment.  I use a lot of language @Michael Quarles suggests, like "I'm coming to your house tomorrow to find out what I don't know, confirm what I think I know, and to sign a contract to buy your house."  (Sorry Michael, I wasn't able to wholetail this, but was able to monetize the lead in the form of wholesaling it).

Long story short, I put the house under contract for $20k.  At the time of the visit, I could tell something seemed off between the seller (in his 60's) and his adult son.  I even asked him if everything was alright.  He told me he has been trying to get his son, his son's 'old lady' and grandson to move out for 7 years.  "They just won't leave," he said.  I believe selling the house was the only way for him to get his son to leave.

Over the next few weeks, I met with the seller to show other investors the property (I ended up assigning it for $26,500).  It was obvious he was moving out.  However, I noticed nothing from the son's room had moved or been boxed up.  When I asked the seller, he said he didn't know what their plans were and that I should contact them.

Since I didn't want the new owner to walk into an eviction situation, I felt I needed to do what I could to get the squatters out.  I offered $300 cash if they would be out by Saturday, October 3rd because we were closing on Monday, October 5th.  You would have thought I was giving them a brick of gold!  They wouldn't stop thanking me for my kindness.  

I met with them Saturday afternoon as they were closing the moving truck's door.  I handed them $300.  They handed me their keys.  I closed on Monday and earned a nice check for my work.

This is not they way I would prefer to do business.  However, thanks to BP I had the "cash for keys" tool at my disposal and allowed me to close the transaction smoothly.  Thank you BP!!!