Why Bringing a Contract is So Importnant

[Mike Flowers]

Hey BPers,

I wanted to write this up to let everyone know why bringing a contract to an appointment is so important. I personally think it is the one thing that you can do in your market that will get you a deal almost 100% of the time over your competition.

A couple of weeks ago, @JPaul Mills and I got a contract on a property in my local area for 11K. Little did we know, the owner of our local REIA had also offered 11K on this property a day before us but, we brought them a contract and left it with them signed by us with the offer price. They called us back on Monday and we got the deal.

We talked to him about it since our monthly meeting was the next Tuesday. He is a great guy and congratulated us on getting the deal and even talked about it in the meeting.

A few days before the meeting, we had gotten a lead on a GREAT deal over in an AMAZING neighborhood that everyone around here will about knock each other over to come buy in. We had to wait on the property because the owners had a tenant that they were at the end of evicting and needed until the following Friday to get the keys and let us in. 

We ended up calling them back on Thursday to see if they had the keys early, and they did. We immediately hopped in the car and drove over to this house (that good of a deal). We get there and whose car do you think was in the driveway? That's right, the REIA owner. He was meeting with the seller right before we got there. (he had gotten the lead 2 weeks before us but, was delayed by the same eviction).

 We see them walking out of the house and talk tot he owner for a few minutes and then we meet with the seller. We go through the house and figure the house will need 60K in repairs but, it will be worth (conservatively) 195K at the end. We ask the guy, what is the lowest you are willing to take. He said 52K. Knowing that this was well within our doable range, we thought about it for a few minutes and then accepted it at his price. Knowing he had another offer, we didn't want to play too much hard ball especially since it was in a neighborhood that is would sell fast. 

But, in our rush to get out to this property. We forgot the most important thing THE CONTRACT!!!! Luckily, I had my Microsoft Surface Pro 3 (greatest investment in a comp ever IMO) and I wrote up the contract, had them sign and emailed them a copy immediately. 

That deal is a net profit of  57.4% as a rehab. Our strategy with it will be wholesale though simply because of the amount of things we have going on. 

We blasted the email out to our buyers list and within 2 hours, we already had multiple offers and the one we are assigning it for today is 65K a net profit of 13K. I am very happy with that. 

This post is to show to all the investors out there that if you bring a contract, even if you are second and have the same price, you will get the contract. 

Good luck with all of your future endeavors my fellow BPers.