All Forum Posts by: Sharad M.

We purchased one of my craziest deals yesterday. The seller had won a lottery this year and bought a house cash for $225,000 with his winnings in June 2018. 

The seller had run into some other financial troubles and needed to sell the house right away.

We received a call from the seller on Friday, Sept 14th asking us if we wanted to purchase. The house is in great condition. We offered $150,000 and the seller said he would take $160,000 but he would need to lease the house back from us for at least a year and we said we couldn't do that. We can offer him $160,000 cash but we will need possession to he house right away. We made our final offer on Friday, Sept 14th. He called us back on Monday, Sept 17th and said he would accept our offer but asked if we could have a month to move out. We said it's fine but we will put $30,000 in escrow to protect ourselves against any damages. He agreed and we signed the purchase agreement on Tuesday, Sept 18th. 

He needed to sell the house right away so we rushed the purchase agreement to our title company and closed it in 4 days yesterday. We are holding $30,000 in escrow against any damages and have a hard 30 days deadline for him.

Our exit strategy would be to put new appliances and clean up and put it right back on the market for $235-$240k.

The seller found out about us through referral from another seller we had marketed to.

You never know where your deal would come from. 

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Postcards as low as 40 cents yellow-letters and business letters as low as 50 cents. The prices include printing, stuffing envelope, packing, mailing (including postage). NO hidden fees.

Why choose reSimpli.com for your direct mail?

REsmpli -> Simplify Real Estate Investing Through Technology

You're only a few clicks away from a professional and well run direct mail marketing campaign.

Sample designs:

https://resimpli.com/ourdesigns

Additional Pricing info:

https://resimpli.com/pricing

Postcards:

$0.60 for less than 200

$0.45 for 200-1,000

$0.40 for more than 1,000

Letters:

$0.70 for less than 200

$0.55 for 200-1,000

$0.50 for more than 1,000

Hi,

We put a property under contract today. The seller called us on Thursday, Aug 30 and we scheduled an appointment for the same day to go look at the house. After some negotiating we agreed on a price and told the seller we can close by Friday, Sept 7th. He said he wanted 60-90 days to find a new place and we wrote a contract for Nov 30 closing to be on the safe side. 

The seller called us back later that day to say he wasn't sure that he wanted to sell anymore because the process seemed too good to be true. We showed him couple of video testimonials from our other sellers (very important to do that) and we also connected him with our Escrow Officer who sometimes helps us close some last minute hesitations from the seller. The seller called the Escrow Officer and confirmed that we help out a lot of other sellers in similar situation and that we can infact close when the seller is ready. 

It's always important to have every person on your team working towards the same goal to help you close more deals. Some of these sellers we work with are going through a lot of difficult personal situations so it is very important to be understanding of their situation and not always be pushing for a sale. We run into some situations where the seller has lost a family member and wants to sell and in those cases we present how we can help them and in cases where we sense some hesitation, we give them a day or two to think about what we have to offer. It has helped build a great relationship with the sellers we work with.

Just thought I share some of our experiences dealing with sellers.

You guys run into some challenges? Would love to hear more and learn how you handle those.

Sharad

 Melanie, agreed with Jay here. We are sending out around 20,000 mailers per month but it took us couple of months before the deals started coming in. You will have some up and down months but the key is to stick with the marketing plan.

You will have months where you will get some incredible deals and couple of deals will cover marketing budget for your entire year and rest of the deals are just gravy but don't stop.

 Jay, thank you for the kind words. I have been extremely blessed to be at the right place at the right time and have right people like you around me to guide me. We had a bumpy road in 2016 and part of 2017 but we cleaned up a lot since last year and this year has been a game changer for us.

I just want to grow up to be like you :)

The numbers for the 3 deals we wholesaled were:

Purchase $80,000 - Sale $141,500

Purchase $100,000 - Sale $140,000

Purchase $52,000 - Sale $82,500

We picked up another one last week for $125,000 and we will put around $50,000 into it and ARV is around $250-$275,000

 Hi Manav, I live in Carlsbad. The best areas around San Diego to purchase $50-$70k rental properties will be Kansas City, Ohio, Indiana. Now, some of these areas are not exactly driving distance but there are good deals there :)

 I will tell you what benefit is to me. Real example. Friday, Aug 24 seller called and said they want to get rid of the house right away because of bad tenant situation. Seller was wanting $70k. We go meet the seller on Friday, Aug 24 and look at the house and agree on a price of $60k because we have cash available and can close on the house in one week. Thursday, Aug 30 the seller walked away from the house and we own the house as of today.

Everyone has different goals so you need to determine what's important for you. Either way I would suggest to always have small amount of liquid funds available for a deal that you may come across or emergency.

 Buy from YL.com if they can provide you cheaper. YL.com will provide you the exact same list as ListSource so go with cheaper source. I would be surprised if YL.com can't beat the price from ListSource. If not, there are tons of other companies that can get you ListSource data for lot cheaper than ListSource.com. Please feel free to let me know if you have any more questions.