I'm excited to announce I was able to land my 1st deal to fix and flip. The network marketing strategy worked as a broker called me and said "I have your 1st house". She was providing me with a pocket listing. They wanted $80,000
I walked through the house and determined the very max I could pay (with a $5,000 cushion in the figure) would be $73,000. I remembered a podcast for a guest who bought storage units. He said the sellers wanted $600,000 and he offered $200,000 and got for $180,000. I figured if I didn't ask I wouldn't get it.
So I offered $64,000 they countered with $73,000 and I countered back at $69,500 and got it done.
The house will sell between $125,000 and $135,000 with me putting $32,000 - $35,000 in it. The broker is even suggesting she will help me sell it on my own and cut her commission to 2% if I'd like to use her to sell it with no closing costs on the purchase.
My profit should be $14,250 at the very least and the high end $27,450. I've heard so many say " if you break even or even lose a little on your 1st deal you're doing great." That's why I stuck to my criteria and waited patiently.
There was definitely some fear offering $16k less than than their asking price. But as all podcast guests say is get out and get your first deal. Thanks @Joshua Dorkin and @Brandon Turner. Your podcasts are a wealth of information and inspiration. The Famous 4 with the book recommendations and what separates the great from the ones who do nothing are excellent!
