Real Estate Investing Success Stories

What’s A Case Study?  (And Why Does It Matter?)

A good success story is one of the things that motivated me to keep going in real estate investing.  When things seemed too tough to overcome, I was able to feed off of the fact that other people were succeeding in this business.

Therefore, we’ve created the ‘Success Stories’ page to inspire you.  The stories listed here are from real people who had success in a real estate investing opportunity.  You can read about the fears they had, the obstacles they had to overcome, and the rewards they reaped for their efforts.

Even as a seasoned investor, I am still inspired and get recharged by reading about the successes of others.  It helps me remember what it was like when I got started.  If you have benefited from the success stories, please feel free to share a story or two about your real estate investing experiences so that others may learn and be inspired by you.

Have A Case Study You Want To Share?

We’re always looking for great new stories to share with the FlippingHomes.community.

• A special success story
• Your first deal
• A truly unique deal
• An important lesson learned (through success or failure)

If you would like to share a case study and have it considered for posting here, please send it to us at

Finally… DEBT FREE!

By: Nate Andree

About 2.5 years ago when I started full time in REI I had about 110K in what I call “bad” debt.  Debt like credit cards, business, 2nd mortgage on my personal home, and debt that I accumulated through my own stupidity.  The bottom line was this debt was not making me a cent and I really wanted to get this paid off as quickly as possible.  It was drowning us, we were getting by (barely) on our mortgage, etc.

So here was my plan………Instead of being mad that I couldn’t pay this debt off in full right away I set a monthly plan.  I started paying 3.5K each month towards my debt and if I could afford to pay more each month then I would, but 3.5K was my minimum.  I wrote down this goal, started with my smallest debt, and worked my way through each card, credit line, and my 2nd mortgage.  An amazing thing started to happen once I made a clear goal and actually put it to paper.

The debt started shrinking fast!  It made me focus each month on what I had done and kept me on track.  Before I was beating myself up because I couldn’t get to the big goal of 110K.  Now….as each month passed with the goal attained I would take out my wife for dinner to celebrate the small goal of 3.5K paid for that month.  The 3.5K was definitely within reach each month and it made me appreciate the work that I was doing to get to this goal.

Well…….as of yesterday that 110K is gone.  My goal was to have this amount paid off by August.  Folks………I just can’t tell how good this feels to have this monkey off our backs.  Yesterday we wholesaled a house for 11K (to an investor no less, lol) and were able to pay off the rest of the debt that we owed.  I was driving to my bank after closing thinking that I couldn’t believe that it was actually coming to fruition.  When I came home Jen was so excited, happy, and I think relieved that we can finally move on with other things.

I really want to thank this board for giving the education, tools, resources, and most importantly a place that I could come and ask anything and everything and get real answers.  One thing about the FH community that I love is that you get straight shooting and honest answers.  Answers that you don’t like or want to hear but you know is the truth.  The FlipVip group that I’m involved with has been an incredible experience and I hold those 10 people in the highest regard and want to thank them for their help and support.  A special thanks to Steve Cook who as my mentor and friend who has pushed me to become a better investor and a better husband.  I can’t thank you enough Steve.

Now its on to set some goals on how to pay off our house mortgage by the summer of 2011.

Thanks everyone,

Nate-WI

Can’t make money in a slow market?

By: Matt Kearney

Matt Kearney, owner of Hampden Homebuyers in Springfield, Massachusetts, purchased a three-bedroom, one-bath ranch home in January.  The loan balance on the home was $120K, but Matt was able to negotiate a short sale price of just $45,000!

The home, built in 1992, was in decent shape but needed major cosmetic upgrades throughout.  Matt spent about $14,000 on the following:

New roof

New shutters

Exterior powerwash

Yard clean up

New carpet in living room and bedrooms

Wood floors in kitchen

Ceramic tile in bath

New countertop and stainless appliances in the kitchen

New vanity and mirror in bath

Tile entryway

Modern light fixtures throughout

Six-panel doors throughout

Complete repainting throughout

Once the upgrades were completed, Matt did some light staging in the house and put it on the market.  In just ONE day, he had an offer for slightly above the asking price!  He will close on April 30th, selling the home for $116,000!

For before-and-after pics of Matt’s rehab, go here.

Check out Matt’s company website here.

Finally! A Success Story – $12.5k Wholesale Deal

By: Dennis R

I’ve been working hard at this for a while now and I’m thrilled to share my FIRST success story with all of you!  Here are all the details on this wholesale deal that I found on the MLS.

Comps: $89k (conservative)

Repair: $6600  (the house smelled REALLY BAD and had some masonite damage that one investor really loves to work with which i think discouraged a lot of people)

1st Offer: $29.9k

Counter: $35k

2nd Offer: $31.9k – Accepted!

Already assigned the contract to an investor for $44k

Payday: $12.1k !

I didnt do a double close on this, and I was really worried that the investor would look at my assignment fee and be like, Heck no! But he is really cool, he’s a guy that took me under his wing a few months ago.. he said as long as he know’s he can make money from the deal he doesnt care what my payday is, and to go find him some more houses to buy! So he was really cool about it.

I’ve submitted about 20 SOLID offers.  I had 1 accepted and have 3 more counters that I’m battling out.  Not to mention, I’ve visited several properties this week that I’m going to submit offers on.

Yes, this is the first.. but I know it won’t be the last.

There are so many people here to thank! Everyone who has received private messages from me, you know who you are.. Steve! Shaun M! Tampa Steph, your blog is very encouraging! And everyone else who dedicates unselfishly of their time on this forum.

Thanks!

Dennis

Stay at Home Mom Makes Full Time Income

In Less Than 10 Hours Per Week

By: Alicia Corson- with Matt Clark

Stay-At-Home Mom Finds a Safe & Secure Way 

to Make a Full-Time Income Working Ten Hours

a Week as a Real Estate Investor

  “Once Joe and I settled down together, I set about to make our life ‘safe and secure,’ which for me meant getting rid of those part-time businesses and properties, so we could focus on putting away savings from Joe’s full-time job, which we did,” Alicia recalls.

From 15 Hour Days – To Taking Wednesdays Off

By: Nate Andree

15-Hour-A-Day Investor Channels Passion For Real Estate Into A Balanced Lifestyle As A Dad And Husband

Appleton, Wisconsin. “We’re going to have to reschedule.” Nate Andree and I had scheduled to record this interview at 3 PM on a Friday. “Otherwise, my two sons will be in the background, making noise. It could make things difficult.”

Father Survives Loss of Job:  

Earns Record Amount

And Wipes Out Debt – While Unemployed?

By: Craig Fuhr

Columbia , MD\\ Craig Fuhr first “got bit” by the real estate investing “bug” in early 2004. He convinced his father-in-law to partner with him on a deal. Thanks to buying right and with the wind of rapid appreciation at his back, Fuhr’s partnership pocketed a $98,000 payday upon the sale of this, its first property.

 “That was it. I was a believer, ” remembers Fuhr. “All I could think about was finding my next deal. But, no matter how many deals I brought my partner (he had the cash), and no matter how good they looked, he took a ‘pass’ on every one.”

Fortunately, during that first deal, Fuhr had found a mentor in Steve Cook, another Baltimore investor who was having success that Fuhr wanted to emulate. When at last a deal came along that Fuhr knew was “a slam dunk,” his partner stalled.

So Fuhr reached out to Cook and got the nod of confidence he needed. “If you can buy that property in the $50,000 range,” said Cook, “you can make money. But do no work to it and put it up for auction.” This, Fuhr’s second real estate deal, and his first time investing “solo,” netted him $29,000, and gave Fuhr the confidence to invest on his own.

From Cook, he learned how to do the “business” of real estate – including learning how to lock in his profits by buying right, making market appreciation just “gravy.” Over the next two years, Fuhr worked part-time in real estate, completing another 10 deals.

Understanding the fundamentals served him well when the market turned south. In 2006, a year that the media has described as “when the real estate bubble popped,” Fuhr’s real estate profits continued to increase.

During this time, his mentoring relationship with Cook moved from one of learning the real estate fundamentals to one of tackling “life issues,” including creating a vision and making real estate one part of a well-rounded lifestyle.

When he saw that Steve Cook was launching a new group of local, advanced real estate investors, known as “The Club,” Fuhr hopped on board.

“Even with the success I’d already had, humility teaches us that there’s always more to learn,” explains Fuhr. “Of course, at the time, I had no idea what ‘life lessons’ were in store for me, where a real estate coach and mentor would be needed… and appreciated.”

The lessons came fast and furiously, about three months later. Without advance notice, Fuhr was summarily fired from his job in IT Security. That was when his intuition on joining the Club paid off.

“In my worst nightmares, I couldn’t have imagined what a blow getting fired would be. Regardless of how I felt about the job, it feels rotten to be let go.”

Fuhr turned to the 3 people he knew could help him most. “When I walked out of the building, potted plants, pictures, and pens in hand, tears streaming down my face, I made three phone calls. The first was to my wife. And the next two were to my real estate mentors from The Club, Steve Cook and Peter Giardini.”

What could have been a free fall or a rapid retreat into yet another “safe” job turned into a celebration. Rather than consoling him, Fuhr’s mentors congratulated him. On the next day, he launched his career as a full-time real estate investor.

“When one door closes, another opens,” says Fuhr. Now that his lunchtimes were his own, Fuhr found himself face-to-face with Steve Cook a few months later, and the Club showed him the keys to unlock “the vault” – the biggest deal he’d closed yet – and the deal that would ) explode his business to another level.

The deal was three, four-unit apartment buildings in West Baltimore . The deal required the confidence and knowledge to tackle a 12-unit simultaneous renovation – and a $300,000 check. 

    “Six months before (prior to The Club), I had looked at one of the same apartment houses on that block, and had passed, thinking it was beyond my capacity. But now, with Steve again giving me the nod of confidence I needed – solidifying my feelings and reinforcing the value of the deal, I took the plunge. If it weren’t for Steve’s support, I might have taken longer to think about the deal …and I might have missed it completely.”

Through his association with The Club, Fuhr was able to get the funds and close on the deal in less than 24 hours. 

At the recent Rehabbers Lab, Club members and guests took a tour of these buildings. Peter Giardini explained to the group, “This deal is the kind the launches an entire business.  When you buy a deal with $300,000 in potential equity, you can now get a line of credit to do MANY other deals. It gives your business the transfusion of cash that it needs to grow exponentially – to do almost any residential deal, at any time.”

“So,” says Fuhr, “what could have been a downer or doubtful year for me turned into, literally, my best ever.”The apartment deal, along with many others, made 2007 Fuhr’s highest-paid year (from April to December, no less) of his life (so far to date). He even became debt-free months ahead of schedule.

“Not bad for a six-figure a year computer consultant who got “dumped” by his company, right?” asks Fuhr. “Real estate investing gave me a “golden parachute” to use when I was ejected from the corporate world. And being a member of the Club helped make this a soft, even cushy landing.” 

Fuhr’s advice to already successful investors is: “If you think you’re too sophisticated or experienced to join an ethical mastermind group like The Club – think again. My experience this past year shows that you must never underestimate how far you can get with the right help. To get to the top of your game, you still need a coach to give you a nudge at the right time, so you can achieve more than you thought possible for yourself. For me, The Club helped me to gain access to that cornerstone deal that the rest of my business will be built upon.”

Simple Letter Makes $34,500

By: Larry and Tina T

We recently found a house through our probate letter campaign and put it under contract. It was an older home in a great neighborhood and we knew it would need significant repairs.

Since this was an older property and we had never done a home of this age or style, we contacted Steve Cook for guidance on what type of rehab to perform. Meeting with Steve (fortunately Steve is local to us) and looking at the property together we discussed various options to move forward. We told him our rehab plans and he thought the repair estimates were too high and should do less to the property as it would change the “feel” of the home.

We were fully engaged in other rehab projects and cash was tight. Steve asked what we had it under contract for and after telling him he chuckled “You bought it right. Why don’t you try to wholesale it?” We had never wholesaled a property since we usually rehab for resale. We kept going back and forth if we should keep it as a rehab or look to wholesale it.

Following Steve’s direction, we placed an ad on our local REIA message board as a wholesale deal and several other investors showed interest in the property. A smaller group came to see it and one investor did buy the property. After settlement we walked away from this wholesale deal with a net profit of $34,500 on our very first wholesale deal!

Thank you Steve for all your help. We are hooked on wholesaling and realize we can take on several deals and utilize the different real estate investing tools/strategies.

Larry and Tina

4 Recent Wholesale Deals

By: Nate Andree

I stumbled upon a great little post in the forum today.  We get a lot of success stories in there regularly, most of which never find their way to the “success stories” section, but really probablay should.

This one’s from Nate Andree, or Nate (WI) in the forum.

You may remember Nate from his “Ignorant Wisconsin Man” case study a little over a year ago.  Since then he’s been blowing and going, and it’s a pleasure to be along for the ride.

---

Hi gang,

I wanted to share with you what we have been up to the last month or so. Its been busy to say the least!  I’ll try and give you some solid details.

Deal #1: The quick numbers….

• Purchase Price: 46.5K
• Repairs: 10K
• Sold for: 55K
• ARV (after repair value): 80-85K
• Profit: 7K

Deal #1: The story…

This was an offer I had accepted offer on a HUD property. I started the marketing machine the VERY next day (don’t wait folks).

Within 2 weeks we had it sold to owner occupants. We did a double close with them and their local bank. I bought it at 1pm and sold it at 2pm.

Homeowners were super happy. 1st time homebuyers. The buyers tried to get me down to 52.5K. I told them that this was a deal at 55K and I had other buyers who wanted but I was giving them first crack (which is true).

From this home I got 2 more buyers who want me to find them something. My buyers agreed to the 55K. Good choice

Deal #2: The quick numbers….

• Purchase Price: 42K
• Repairs: 1K to make “rent ready”
• Sold for: 46K
• ARV: 75K
• Rents in the 650-675 range a month
• Profit: 2.7K

Deal #2: The story…

While deal #1 was working towards closing I got an accepted offer on a REO. Started to market the house and……oh-oh…….no buyers! Had to close and then was going to put a rent to own in there.

But wait……A lady from my REIA called me to talk about one of her houses when I simply mentioned out of the blue about this home. She said that her brother would probably want to buy something like that and he was a cash buyer. Sure enough he came in and closed in 10 days.

For a landlord this was an ideal property. For me I really disliked this property. Some basement movement was evident but I didn’t like the city nor really the house.

Then why buy it, right?  Well….I got over confident and thought it would be an easy sell and it took me a bit longer to sell it. I was EXTREMELY happy to sell this one. Bought and sold within 3 weeks. Quick numbers.

Deal #3: The quick numbers…

 

• Purchase Price: 43.5K
• Repairs: 10K
• Sold for: 56K
• ARV: 90K
• Profit: 10.5K

Deal #3: The story…

During deal #2 I saw a very big ranch REO that took a 30K price drop. It went from 79.9K to 49.9K.

Now this was in a city that I had never bought anything in and really had no idea what the market was like nor what was moving in that city.

Here is what I knew…….that no where could you buy this kinda ranch, in this good of shape (just looking to the pics on the listing), for the price they were asking. The price drop hit in the early am and my agent and I were out there right away. Literally dropped everything and took off. We liked what we saw and decided to go after it.

We started marketing right away and had quite a bit of interest. We found a couple who had ZERO credit but absolutely loved the house and our price (heard this one before guys and gals? . They wanted to do a rent to own and I said we had too much interest in the property and that we were looking to sell only.

Then…….good ol’ Mom stepped in. She decided to buy the home for them. Gotta love Mom’s

When the price hit 49.9K we offered them 43.5K with a 1.5K deposit. They didn’t even counter us! They just took it. My kinda bank

Mom used a local bank for financing. We bought it and sold it within 10 days.

Deal #4: The quick numbers…

• Purchase Price: 51K
• Repairs: 20K
• Sold for: 60K
• ARV: 90-96K
• Profit: 6K

Deal #4: The story…

Very interesting story on this one.

I worked with these buyers on a Short Sale about a year ago. Wells Fargo wouldn’t budge on their price. I was offering 60K for it and they told me no can do with their balance of 79K.

So I watched for it as an REO and it came out at 79.9K. Then it went down to 73.9K. Then it went to 51.8K. We put an offer in of 51K and it was immediately accepted.

Go figure! Got a better deal with it as a REO than a short sale!

We bought this home at the end of December. We had a TON of interest but the repairs were pretty extensive, nothing structural wise but LOTS of cosmetics.

We found a lady who had a Mr. Fix It type boyfriend who really liked the area and the home itself.  We are closing tomorrow at 4:30pm.

I have the preliminary HUD-1 and it looks like I will net (after all my expenses) about 6K. Not a homerun its 6K that I didn’t have

Quick Summary…

So all together over the past 5 weeks or so were in the 26K range for profit.

I know there are many others on this board making way more than us and doing much better profit for deal margins.  My point of the post is for folks who try and hit the home run all the time whether they are just starting out or even a seasoned investor.

Wer’e just a small Ma and Pa shop with Jenni and I. And these little deals will add up folks.  So if you have the chance to make some quick money take and live to fight another day.

Out of all these deals my best deal was #2. I got out of a house I didn’t like, a city that I really don’t like, and I didn’t LOSE any money.  If you have any questions fire away and I will try and answer them as best as possible. Hope this helps some others on this board to stay motivated and focused that real estate does really work if you apply yourself, take action, and reap the rewards,

Nate-WI

Ignorant Wisconsin Man Captures 3 REO Flips…

Success Stories and Testimonials

By: Nate Andree
Go Back

Wisconsin Nate (hence the “W” on his hat) Running Time: 32:10    or right-click here to download mp3…

 

Ignorant Wisconsin Man Captures
Three REO Flips…

No, I promise I’m not insulting our buddy, Nate.  Here’s what I mean…

Here’s the “pre-story” in a nutshell…

Nate and his wife had developed a budding interest in the quick flip, wholesale arena of real estate investing. 

But like many he was in a “holding pattern” of sorts at first.  Just sort of “soaking” in the FH/REIP community forum discussions, he listened to the stories, asked questions, analyzed others’ deals from afar…

But as you listen to Nate’s story, you’ll discover that he and his wife had just recently made the decision to go ahead and move boldly forward into wholesale flipping.  Time to formalize thier education — so they ordered a copy of Steve’s “Wholesaling for Quick Cash” home study course. 

But before the UPS driver had even finished his morning java, Nate was out there mixing it up on the streets, making things happen.  Armed mostly with what he’d learned here and there in the forums (so I guess he wasn’t totally ignorant he inked three quality wholesale deals before he even really knew which end was up.

Never let it be said that Nate is afraid to act.  Listen to his story above and get the whole scoop.

We applaud you, Nate, for being aggressive, strategic and fearless in your approach – and most of all for taking massive action.

Deal #1: Duplex REO Net: $5,500 (Not too shabby for a first deal)

Deal #2: Sold in 12 hrs
Net: $9,000

 

 

Talk about this case study in the FH forum…

Nate’s Original Forum Post…

 

Three Flips and a Baby

By: Lawrence Roberts

Turn up your speakers and press “play” to hear Lawrence chat about these three deals…

Ok, there’s really not a baby involved.  But in this quick interview, Lawrence does, in fact, share the details of three very different deals

(Hey, he does have kind of a baby face, right?  And the catchy title was just too good to pass up

But listen in as our our friend lays down the “law” on how these deals really went down, how much he made (or didn’t), and what his biggest lessons were from each…

 

Anders Street : The “So So” Deal

• Purchased froma bandit sign for $39k
• Made ~ $8,000 profit in the end
• Comps actually dropped during renovation
• Big Lessons: Did buy cheap enough and ignored his “fudge” factor

 

Anders St – Before	Anders St – After
Anders St – Living Room After	Anders St – Kitchen After
Anders St – Bathroom After	Anders St – Carport After

 

Alex Court : The “Home Run” Deal

• Another bandit sign deal
• Purchased for $60,000, then sold for $115,900
• Made about $28,000 – woohoo, home run!
• Could have made even more if he’d been smart enough to use private hard money instead of institutional hard money
• Had to fire his contractor midway
• Big Lessons: Contractor management and private money vs. hard money

 

Alex Ct – Before	Alex Ct – After
Alex Ct – Kitchen After	Alex Ct – Master After
Alex Ct – Backyard After

 

McAdams Drive : The Short Term “Sub2″

• Came from yellow pages ad
• Purchased “subject to” existing mortgage + $15,000 of his own money for rehab, holding costs, etc.
• Using the short term sub2 method saved him $6k-$7k in Hard Money fees
• Comps on this one actually went up during rehab
• Took 4-5 months to turn around
• Big Lessons: More on contractor management, and short-term Sub2 is a good deal!

 

McAdams – Before	McAdams – After
McAdams – Kitchen After	McAdams – Den After
McAdams – Bathroom After

Tub Repair Guy Earns $1,800/Hour – NOT buying a house

By: Bruce Tauber

The house he didn’t flip…

I put this great house under contract – Then something interesting happened.

2 days later the brother of the seller calls me all upset because his brother never told him he was selling the house. He said his kids are devastated that Grandpa’s house will no longer be in the family and they loved living there before.

So I called my assignee and explained. He said I will walk for 4 grand. He said just take both our fees add together onto the contract of 159 and tell him that is the price.

I rounded to 190 and said cash in 2 days. After 3 days he could only come up with a mortgage broker who said close in 2 weeks.

I said no way. Okay how about this. Take the price I gave you 190 and subtract the price of the contract 159 which is 31,000. Come up with that and we will cancel the contract. He says I think I can do that.

Next day he gives me 5,000 down and last night he gave me the rest. Then I signed a cancel of contract with seller.

So my fee to walk was 27,000 and 4,000 to my assignee (he was happy). Contract date 10/9/06, conclusion was today 10/28/06.

That is the most money I have ever made in one place in my life.  It is almost half of the gross in my tub repair business of which I bust my butt everyday. So you could say I am grateful, blessed and mindful of all of the work I have put in.

Also I now have numerous cash buyers waiting for my next property. My assignee will also lend me money to do rehabs or buyers that need money (Can you say full service wholesaler?  Thanks Steve,Eddie.)

At this point it is kinda hard to believe I pulled this off but it is real. The brothers had a lot of bad blood but I was able to bring them together and that feels good. The money is great but also helping people is important and God was there through it all.

Thanks to all for this great board and support and inspiration. Buy Steve’s materials and go to bootcamps it has helped me greatly. I have to rest now and take a deep breath.

Thanks,

Bruce

Conservatively, I made $90,000 on this deal

By: Florence Olamigoke

Bought for 78k – put 5.6k in – Sold Quick for 138k

By: Kenny Butler

A young woman I worked whose mother recently passed away told me she and her sister didn’t want their mother’s house because they each had their own homes and just wanted to get rid of it.  I found out it was in a nice part of town, so. I met the sister at the house to look at it. The house only needed paint, a new kitchen, some updates and that was it. We settled on a price of $78,000 and settled 45 days later. My brother-in-law and I began to paint, gut the kitchen, redo the hardwood floors, and update the electricity and central air.  I held the property for 3 months due to the anti-flipping law with FHA financing.  As it would be, my buyer had FHA financing.  I spent a total of $5,600 dollars getting the property ready and it was appraised at $141,000.  I listed it on the market for $138,000 for a fast sale and wouldn’t you know it the second day I had six contract offers!

Smells Like… MONEY!

By: Tim (ME)

This was a house I put under contract from a pre-foreclosure in October 2005.  The owner really wanted out, hadn’t lived there in 6 months, and was about to face auction.  We offered what worked for us, and they accepted.  Then it was up to the bank to meet our offer.  The loan balance was about $113,000, and our offer was $100,000.  The bank had a policy with its short sales to wait 25 days before even reviewing our offer.  We submitted all the paperwork, then waited…..and waited…..

I finally gave up and called the owner and told her I couldn’t buy it because the bank didn’t seem to want to talk to me, even after repeated calls.  Finally, out of the blue on December 23rd, 2005, the bank called and accepted my offer, providing I could close within 7 days!  So I put it into high gear, lined up the money and title search, and we closed 7 days later.

This place didn’t look too bad from the outside, but the inside was pretty ugly.  And it stunk…..BAD!!.  The people had 7 dogs, and I don’t think the dogs ever went outside.  We started rehabbing in January 2006 – getting the heat running, checking and repairing the frozen, burst pipes, and figuring out how to empty the 18 inches of standing water in the basement.  This house was empty for about 6 months with that water.  Green mold was everywhere in the house, and it was damp.

We gutted what we could, painted, repaired plumbing, updated the bathroom fixtures, light fixtures, electrical outlets, refinished the hardwood floors, added laminate floors and tile elsewhere, and painted the exterior in March when it got warmer.  We finally fixed the sump pump problem since there were a number of things wrong there.  The basement is dry now!

We put about $25,000 total into the property, and will list it for around $175,000.  It should net a pretty good profit.

This site is the best one out there.  Real people giving real advice, which nets real profit. Thanks Steve Cook for being a great inspiration to me and many others.

Tim (ME)

Brian’s $22,000 Wholesale Deal

By: Brian Jones

I must say it really is a feeling of empowerment, taking a deal from the first phone call, to sitting at the closing table knowing that you are a few signatures away from thousands of dollars; knowing that all the time and energy you have spent learning the nuances of REI have finally paid off.  Here’s is my story.

Funny thing is that I almost lost this opportunity when I answered the call.  I received the call from the seller while I was standing in line at the bank.  It was a multi-family in fair shape in a fair neighborhood, not something I cared to rehab or hold at the time.  Not interested, but I sensed motivation in the sellers voice so I asked him, “What’s the least amount you will sell for if I pay you cash and close quickly?”  Well, the number he mentioned was about 58% of ARV…that got me interested.

Finally, I found a “motivated seller”.  I negotiated a lower price and wrote an offer in ONE day. The seller didn’t want to sign my contract because he was getting calls from investors while I was sitting in his living room.  I told him either we do the deal now or I walk away…he signed and I gave him a hundred dollar bill.

Allen’s $82,000 Paycheck Deal

By: Allen

My adventure into real estate investing has been a long road to success.  I have endured the ups and downs that come with this business.  This is in no way an easy business if you don’t have the proper education or resources.  On my journey, I have purchased a lot of real estate investing material, but it was only when I started talking to Steve and purchased his courses on wholesaling and rehabbing that I felt like I had gotten the correct road map for success.  Buying books and tapes is not going to make you successful.  You have to find a technique that fits you and stay with it.  Like Steve says, you have to get around people who are doing the business and not talking about the business.  I also have to give my team credit – my great real estate agent, hard money lender, and private investors.  Now onto my story…

 My real estate agent called me about a VA property she wanted me to look at in Oxon Hill, Maryland where a couple of contracts that had fallen through.  I looked at the property and saw that it needed a lot of work, so I decided to offer $134,440 which was  $13,000 less than the listed price.  To my surprise the VA accepted the offer and we closed in December 2004. We started work in late December/early January and the rehab took a little longer than I would have liked due to some unforeseen problems.  Our $30,000 rehab had now grown to $45,000, but luckily, I had a private money partner who put up $20,000 at 12% return.  Once the property was finished, we had a contract for $265,000 in a few days but it fell through.  My real estate agent put it back on the market for $280,000 and several offers came in over four days.  I accepted an offer for $285,000which is what the property appraised for.  I walked away from closing September 5, 2005 with a check for $82,000, my largest paid day in this business.  There are going to be bumps in the road, but don’t let that stop you!  Keep pressing on and your dreams can come true.

Profits of $22,200…  $17,900…  $30,100…

…and I’m Flippin’ Retired

By: Larry

LARRY’S REHABS AND FLIP

After retiring a few years ago, I decided in 2003 that I wanted to give real estate investing a try since I always enjoyed working with my hands and fixing things around my own house.  I purchased and read Steve’s course on Rehabbing for Big Cash and then started looking for my first deal.  It came in July of that year when I purchased a 1935 brick Cape Code home for $84,400 (including closing costs) through a bank foreclosure realtor. The house had a critical structural problem with the two story brick porch in the rear of the home.  I believe the structural problem was the reason that other rehabbers bid down their offers and made the property available for me.  Additionally, the roof had several large holes resulting in interior water damage especially to the living room ceiling.  The roof was replaced; new drywall installed; the kitchen and two bathrooms were gutted and completely redone; and a new hot water heater, new furnace and central air system were installed.  It took 7 months to rehab and my soft costs were $43,400.  In February 2004 I sold the house for $150,000 and made a profit of $22,200.

After attending Steve’s Boot Camp, I left prepared to try my first flip.  This past February I bought a 1920 concrete block duplex from a motivated seller who originally bought the property to rehab but later decided he was too busy with his primary business to tackle the rehab.  So I attended a real estate club meeting and struck up a conversation with another rehabber who was interested in possibly buying it to fix as a rental property.  The next morning we toured the duplex, signed a sales contract two days later and closed two weeks after that.  I purchased and closed on the house for $25,200, had $500 in carrying costs and sold for $43,600 with closing costs deducted.  It took one month to make $17,900 – not too shabby at all!

My most recent project was a rehab that I purchased from another rehabber who needed fast cash to pay back taxes.  The dining room ceiling had collapsed from roof leakage necessitating a roof replacement including new vinyl soffits, rain gutters and down spouts. A poor condition back deck metal awning and window awnings around the home were removed mainly to increase natural light into the home.  All the major items inside, kitchen, bathroom, furnace, air conditioning, etc, were all replaced.  When all was said and done, I spent $31,300 in rehab and other soft costs over six months.  The house was bought for $75,500 and sold for $136,700. My profit was $30,100.

Currently, I am pursuing a short sale on a home next to the rehab I just finished.  It has the potential to reap the same, if not better, numbers.  Thanks to Steve for writing his courses and teaching at the Boot Camp – all very helpful with my real estate ventures!

Larry

You’d do that!?

By: Bob Norton

BOB’S SUCCESS STORY

The Pocket Listing Deals

I consistently call over 30 REO Realtors every 10-15 days asking them if they have anything in the works in the areas where I like to invest. The Realtors call them pre-listings. In December, a realtor said he had a house that was way overpriced at $25,000 and was going on the market in 8-9 days. I said I’d go look at it anyways. Well, it was perfectly priced at $25,000 and I asked the realtor if he would ask the bank if they would accept a cash offer right now at full price. A couple days later he said the bank would. So, I started calling my buyers and, at the end of the day, had a signed assignment form and earnest money for $32,000. Closing went smoothly and I walked away with $7,000!

Having tasted success using this approach, I made a new contact with a different REO realtor and he said that he had to de-trash a house in my favorite area before it goes on the market. I asked him what that entailed and he explained that he had to put up his own money of $1,500 to have the work done and after the house was listed and sold, the bank would reimburse him up to 90 days later. I asked him, “So you could potentially not get your $1,500 back for up to six months or longer?” He said, “Yes!” After thinking about his dilemma, I then asked, “What if you made an offer to the bank and I would be willing to de-trash it myself.” “You’d do that?”, he asked. I answered, “Sure, for the right price.”

I offered $19,000 and the bank accepted my offer. I then wholesaled the house for $28,000 to a landlord and repeat customer the day after our contract was signed.

Bob Norton

There had to be a better way…

By: Johnny Voyle

JOHNNY’S SUCCESS STORY

After finishing college with a major in accounting, I packed up my briefcase, put on my tie and assumed position at my cubicle. Accounting is a great profession, but it just wasn’t for me. I knew there had to be a better way. I wanted to do something that I loved and would provide the lifestyle that I desired.

I quit working for the accounting firm and got a sales job to keep the lights on. Although I enjoyed it more than accounting, it still wasn’t everything I was looking for. One day I was searching the Internet and found www.flippinghomes.com and the rest is history. I devoured the website and read many books. I quickly signed up for the next boot camp and received some awesome information. Shortly after the boot camp, I wholesaled my first house and put $5,300 in my pocket.  This business quickly became real and I immediately became a full-time wholesaler.

Two years later, I have flipped over 30 properties (ranging from $3,000 to $15,000); bought, fixed and sold several properties; have several rentals (creating great passive income); and have partnered with a private investor lending hard money. I plan to continue to do all of these, with an emphasis on creating more passive income.

I have certainly made some mistakes and have a lot to learn, but real estate investing has given me a flexible schedule. I also don’t have to worry about money and wake up looking forward to my day. It is not a get-rich-quick vehicle, yet it can be lucrative and sure is fun!

Johnny Voyle

I made $107,000…  And lost 20 lbs! (True)

By: Chris Smith

Chris’ Success Story

Hi Folks:

I was quite fortunate on my first rehab deal – here’s MY success story…

After many months of learning, marketing/searching, bird-dogging and offering, I got my first house to rehab. Fairly “ugly” with its wet, moldy basement, this 1972, 3/1/1, 1300 square foot modular rancher was actually found on the MLS within days of the initial listing. I relied a lot on Steve’s materials to estimate repairs and to plan the schedule (by now though, after 14 of my own offers and 40-some referrals to others, I had run deal numbers enough to be fairly confident). He was even kind enough to review my (first “real”) repair estimates via email.

Inside, the work involved gutting the moldy basement and main level (new kitchen, baths, drywall, HVAC, WH, waterproofing, etc.). Outside, the yard needed cleaning/clearing and the house a new skin as well as concrete work. I found getting contractors to be much harder and time-consuming than the 2-3 weeks I’d planned (more like 6 weeks). I tried for multiple estimates and traded off going with a GC or managing myself. All the while *I* was doing a good deal of the work already, so I went with myself and hired several subs for what I couldn’t do. I paid more for some subs than I could have, but it was worth it to me to keep moving and use those able to get to me quickly. I enjoyed a lot of control piecing the work out and being there most of the time, so I avoided many contractor issues. Despite a later than planned contracting effort, I was able to get it all done and back on the market in just 3 ½ months. My own time investment was about 725 hours, but I enjoyed the work and even managed to lose 20 lbs. (“fat equity”?).

The numbers were originally geared for a “good” profit, but after all was said and done I managed a homerun. I didn’t overdo the rehab, but I was overly conservative on the ARV and able to sell without an agent. I bought the house at $205,000, put $74,000 into it and sold it for $408,000. My profit was an amazing $107,000!

I don’t know how I could have done this without Steve’s materials and boot camp. I know I was blessed with a good deal, funding/credit, tool supply and prior home repair knowledge, but the depth and detail of his material really enabled me to plan and carry out the process – start to finish.

Chris Smith
chris@chrisbuyshomes.net

Ericka’s First Wholesale Deal

By: Ericka

Hello Fellow REI,

I must say it took me seven years to get to this point and the one thing that held me back was putting all of the textbook studies, seminars, meeting, and “talking” a good game in to action!! It took seven years because I didn’t read “Rich Dad, Poor Dad” when it was recommended. That hit the fan for me and I’ve never look at my future with a 9 to 5 the same since.

First, I must thank My Father in heaven for sending His son Jesus who is ever merciful to a wretch like me, continues to sustain me daily with the air I breath, my health, and putting one leg in front of the other. A blessing it is to reside in Him.

Okay, here we go. I just closed my first wholesale deal this week. The process was easy as 1-2-3, but as usual with everything, I made it surgery. I have “fearitis.”

I came upon this lead riding through a neighborhood looking for vacant/abandoned properties. I saw a FSBO sign, wrote down the number and called the owner. I left several messages with him, but got no response. A week later this guy called me back only to tell me the property for sale was already under contract. I was okay with that but I always try to establish a rapport with anybody I come in contact with even if they aren’t selling me their property. After chatting with him for a bit, telling him what I do and what I’m looking for, we exchange numbers and disconnected.

A few weeks later this same guy calls me back and says he knows of a property for sale that I may be interested in. At this point, I was so excited (as always) I jumped into my car and went over to the property. I fell in love immediately! This was my first BIG mistake. I was love sick because I got a good lead on a property in a “hot” area. This house was a 3 story, 6bedroom, 3 bath, in a hot up and upcoming area. The owners wanted $50,000, but comps ranged from $220,000-330,000. Repair cost was approximately $90,000-120,000, depending on what the rehabber wanted to do with it. It is a huge bricked brownstones.

The guy took me to meet the owners and we immediately hit it off. They were motivated. The owners were an older couple, retired and living in a different home. They had no need for this property and it was actually a headache for them because somebody set the front room on fire and vandalized the place. However, it was still in pretty good shape. Anyways, I was sooooo excited that I wrote a check for $1,000 paid to the owners to hold this house. No contract. OK, second big mistake. As soon as I wrote the check I got on the phone with one of my buyers. I was scolded and needed to be for giving strangers a check without a contract. Besides the $1,000 was all of my savings. After the “swift kick”, I called the owners up and arranged to meet with them again to sign a contract and deposit money on escrow. They were okay with that. (Phew! What if they cashed the check and I couldn’t find them :-0)

To make a long story short, we signed the contract, I called my buyer two hours later, we met the next day to sign the assignment to settle in 30 days. We settle and I was paid a $10,000 assignment fee.

I made this deal so much harder than what it had to be. But the lessons learned were:

1.) Don’t fall in love with the properties you’re looking at. Look at them as “stock” or taking inventory. You’ll move a lot faster and land more deals instead of mulling over one house for weeks.

2.) Never give a seller any money to buy any house. Put it on escrow with title. That leaves out confusion down the road.

3.) Tell everybody you know “I buy houses.” Even the people who aren’t interested right now may know somebody who is or may call you down the road.

4.) Know your comps and don’t speculate or “gamble” with properties in real estate. Make smart, sound decisions on facts presented now not on what you “think” would be good down the road. I know this may depend on some investor’s strategy, but I don’t like to gamble or guess what I might make.

5.) Last and final lesson, stop stressing and have fun out there! You get out of this what you put in. Be patient and persistent.

Steve Cook, thank you for the website which is my core source of information, help in time of need, and guidance. You are the best!! Wholesaling for Quick Cash is one of the best “how to” books I’ve read and did since in real estate. Steve, you rock!! Eddie K., you are the man. Thanks for your “straight to the point” mentorship. Lui H., you’re my RE agent for life buddy.

A big thanks to all you guys on this website. I surf around this newsgroup a lot and chime in when I can if what I have to offer will help someone else. I don’t like to talk about deals until they’re done. As I’ve said before, I talked for years and did nothing. I just got tired of hearing and seeing everybody else do deals while I was sitting like a bump on a log helping everybody else get over. Not anymore. I am truly enjoying real estate investing now and will for many years to come.

Ericka-Baltimore

That makes my hourly rate – $500/Hr!

By: Carol Heausler

This is a testimonial to both Hal Roark and Steve Cook. I read Steve’s wholesaling book and decided to give it a try. With help from Hal and my tacky photocopied “We Buy Property” signs taped to my car, I turned 10 hours total “work” (getting contract signed, showing property twice and showing up at the closing, if you want to call that work) into $5000 without much risk. That makes my hourly rate $500. I sure don’t get that kind of pay at a job. Thanks, again, guys.

Carol Heausler
New Orleans

jheausler@bwwonline.com

To learn how to do what Carol did to make $5,000 or even more you should consider purchasing “Wholesaling for Quick Cash”. Click here for more information!

I Bought your course a few months back

and THOROUGHLY enjoyed it…

By: Walt Carey 

I bought your course a few months back and THOROUGHLY enjoyed it. Your ability to put in words the sometimes hard facts of life was a breath of fresh air to me. Say what you will about the fancy L/O’s and subject to’s, ultimately it all boils down to having the good ol’ cashola yourself or helping someone else get it like you’ve done.

Walt Carey, North Carolina

No More Rehabs on the North Side…

(well maybe one more)

By: Rick Paddock

Hi Steve,

I had just vowed not to buy anymore rehabs on the “north side” because they took too much travel and marketing time to make it profitable. Then I get this call about a “north side” duplex that needs major work, and is in an area I dreaded driving through. But when I heard they wanted only $17,000, I thought I’d at least look into it.

I had purchased a rehab house last December and seemed to make a connection with the selling realtor, Fred. I asked him to keep me in mind should he come across any profitable deals. Well, in June he called me about a property he thought I may be interested in.

A long time family friend had a duplex in need of rehab, and was looking to sell. He said it’s a 3BR/3BR duplex for $17000, in an area I thought was pretty bad, and it needed a lot of work.

I drove by and found an all-brick duplex surrounded by many larger, older homes that had been recently rehabbed. My comps confirmed what my drive around hinted at – this area is coming around and values are rising. There was a listing up the street at $149,000 and a few had sold in the $110,000 -$130,000 range. Suddenly, the north side is not looking so bad!

A walk through of the property found the following, among other things: a sewer / drain pipe leak bubbling out of the concrete basement floor; a roof with daylight (and rain, birds, etc ) coming through into the attic; lots of drywall damage, hundreds of roaches, mice and bird droppings, and much more.

After initially looking at this as a wholesale deal, I decided to rehab it after I got a $12,000 quote to do all the labor. I figured materials at another $5,000 -$8,000, plus I figured we’d find more plumbing & electrical problems once we got into it. Even though Fred was off on the selling price, as the sellers wouldn’t sell below $25,000, I decided to take it anyway. With these figures, I got a $60,000 hard money loan.

The rehab took about 2.5 months and, looking back, went pretty well. The basement plumbing repair wasn’t that bad, and we just had a few “unexpected” repairs. Total repair costs ended up at about $19,000.

I originally planned to list with a realtor for $129,900, but decided to go to $119,900 to sell quickly, because the market has really softened here. I ended up selling for $110,500 to another investor “as is” after about 2 weeks on the market.

I’ve been doing rehabbing, wholesaling & renting for about 3 years now, full-time since Jan. ’05, and I’m constantly learning. In many ways, I feel like I’m starting new everyday. There is so much to learn, and the market changes so much between neighborhoods and over time. I still struggle with establishing after-repaired-values. I tend to be too optimistic with what I think I can get for something, so when I do comps, I’m now plan on selling at the lower end of the market, for a quicker sale.

As frustrating as this “uncertainty” can be, I think it’s one of the reasons I like this business. There is always something to learn, something new to try, or a new opinion to be heard. This variety and risk keeps me on my toes and keeps me asking questions, seeking new information.

Looking back, I can see I would have never been where I’m at now, without the help of three people, or three groups of people. My friend and fellow investor Melanie, helped me get into my first rentals, by holding my hand through the process. Then Steve Cook’s Rehabbing & Wholesaling courses helped me step out into the rehabbing field. His web site and courses answered nearly every question I had, and was confirmed in my experiences in investing the past couple of years. And lastly, fellow investors and hard
money lenders Jeanne & Bob have allowed me to take what Melanie & Steve have
taught me, and invest in that knowledge. Finally, I know that all of my blessings are gifts from God, including and especially, all the people who’ve touched my life.

It’s been a great challenge, lots of fun, and just the beginning of much more, God willing.

Rick Paddock

Rick Paddock
www.WiHomeBuy.com
414-745-7544

Went 15k Over Budget… Whoops!     Still Made Ten Grand.

By: Rodney Walker (NC)

Rodney’s Success Story

I bought “Rehabbing for Huge Profits” and Wholesaling for Quick Cash” in the Summer of 2003 after being “teased” with Carleton Sheet’s materials many years before. I had an interest in REI for seven or eight years, but never felt comfortable to take action until I had Steve’s materials.

I read Steve’s books in one day and started networking with another his students (the same one that told me about his books and Boot Camp). This “student” took me under his wing and I watched him do a rehab from the ground up just to learn the ropes. I partnered with him as a “money backer” on an additional house and participated on it from the ground up as well. Subsequently, I attended Steve’s Boot Camp in October which gave me the motivation to do a solo deal. I knew from the beginning that I wanted to rehab since I had some money in reserves and it seemed like a rewarding, but challenging way to make some good money.

I have participated in several transactions since attending the Boot Camp and reading the materials, but this is the first rehab I have completed on my own. Additionally, I have another house in Maryland that has been pre-sold and is due to be completed before closing. It too has been a major under-taking. Today I bought another house here in NC that is more of a “pre-hab.” After doing 2 full “gut jobs” I wanted to do more of a cosmetic renovation as a breather until the next major one. Each of these homes has been bought with the methods and formulas that I learned at the Boot Camp and from Steve’s books. Not to mention that I got a line of credit using your business plan – a plan that I still use today. Without the information and knowledge Steve teaches, I would probably still be on the sidelines. Before it’s over, I expect that the money I invested in Steve’s materials will pay for itself at least a million times over.

I originally purchased the house pictured, 418 Davidson Street, Thomasville, NC for $15,000 and put nearly $60,000 into it. It has an ARV of $89,000 so I should net about $10,000 after the sale and subtracting out all of my costs. No, not that great by any standards but I learned a lot and will continue to get better. There are decisions I could’ve made that would have made this deal more profitable, but I am proud of the final result.

Overall, we went about $15,000 over budget in labor and materials. My contractor and I came up with nearly the exact same repair figure estimate before construction commenced, but we ran into some things that just killed us. For example, we re-did the entire flooring structure from the crawlspace up, along with other structural fixes. In the end, we only used the outer walls, foundation, and roof slats of the old house. It just had to be done that way for it to be done the right way…….no corners cut here. I can’t stress enough for all newbies to factor in that 20% (or more) fudge factor in determining their cost for MAJOR renovations and stick to their numbers. Yes, I would do this house again, but I would buy it for about $5,000 instead of $15,000. I also want to mention that it felt good to get a letter from the city mayor thanking us for turning “that old eye sore” into something nice and useable again. That in itself is rewarding, knowing you did something to improve the community in an honest and ethical way.

Sure, I have taken some “hard knocks” in the early stages of my business (and on this house), but no matter how hard it gets, making money in REI beats the 9 to 5 grind any day. Lord willing, I plan on being “in the game” for years to come. I thank the Lord for his blessings on my life and the fact that I was led to take action in this business through the teachings of Steve Cook. Thank you, Steve, for your materials and support through your website.

Blessings,
Rodney Walker (NC)
ramawalk@rtmc.net

Michelle’s First Deal:

I walked away with $28,000.

(Note I currently earn $45,000 at the j.o.b.)

By: Michelle 

Michelle’s First Deal – A Short Sale

I read several books and attended seminars by real estate investors. I then drove around neighborhoods in my area writing down the addresses of distressed or vacant properties. Here in NY records are available online. I located the addresses of owners by searches where the property tax bills are mailed.

Next I hand wrote out letters that said “My name is . I would like to buy your home at (address). Please contact me at (my cell phone number). I mailed out about 30 of these letters and got two responses. One was from a man that left a weird message about buying his house and hung up. The other was from a man whose property was in pre-foreclosure. He did not live in the house and did not know if there were tenants. He had a property manager that disappeared and he never followed up with taking care of the house.

I met with him, eventually signed a contract. The home’s mortgage was to Country Wide for $380,000 – he practically owed all of it, but the house was in extreme disrepair. I did a short sale with Country Wide. When the bank was reviewing, I put an ad on craigslist for the property with the amount I wanted ($250,000 cash) and got several responses. When the bank finally agreed to $215,000, I started to contact the investors who had responded to the ad. I had two weeks to close, so I told the first investor I contacted that I needed a yes or no a.s.a.p.

When the first investor I had contacted was slow to respond (I gave him a full business day), I called the number on a “We Buy Houses” bandit sign that was up in the neighborhood of the property. This person was a full time investor and he agreed to my price of $255,000 all cash.

There were tenants in the building – an elderly couple that was pretty much living in squalor. They had lived there as renters for over twenty years, but had not paid rent in at least two years. As I negotiated with the bank the owner and I went over to property and explained to them what was happening with the house. We explained they would have to move as soon as possible. They were also sent a 30 days to quit notice. I made some calls and passed on the information to the couple on where to find housing. Now these people did not readily seem like they did not have their wits about them. Both were quite feisty and able to explain their situation. The wife was downright ornery. However, when I gave them the final move-out date (almost 3 months after my initial conversation with them), they acted as if having to move was a surprise. The move out date was in two weeks at that point. I contacted a family member and explained the situation and started making calls to elderly assistant agencies to find housing/help for the couple.

Sadly the couple’s family was willing to let them live like that and did very little to help resolve the issue. One of the family members called an agency here in NY that services adults in need. She then proceeded to do nothing else (and this individual worked with an agency that helped the elderly!). The agency was more concerned about filling out the correct paperwork than filing immediate housing for the couple.

The house was supposed to be delivered tenant free.

After the bank gave the yes and the closing date, I contacted a lawyer and began the title process for closing. I did call some title companies to check if I could do the title check and closing stuff on my own, but decided not to and used a lawyer. I missed the bank’s closing date and had to pay the per diem fee of $93 per day. We closed about two weeks after the intended closing date. The buyer split the cost of the per diem rate with me and I negotiated for the end-buyer to take care of the issue with the tenants.

After paying for the seller’s fees and my fees, I walked away with $28,000. (Note I currently earn $45,000 at the j.o.b.) My buyer flipped to someone else, and that person flipped again to a final buyer. My buyer is now my unofficial mentor.

I had researched the ARV of the home via a real estate agent, free comps (like domainia), and also queried thru an agent what investors will be willing to pay.

My newbie mistakes:

At the first meeting with the home owner, get all contracts signed then and there. No exceptions. Because I did not do this, this process dragged on for months.

Start the title process asap. I had to wait because I just did not have the money to do it before I knew for sure that the bank would agree to the short sale. Some issues came up and were resolved but these dragged out the closing date.

Get a referral for an attorney asap. My attorney was OK but I would have preferred her to be a bit more experienced, aggressive, and have fierce negotiating skills. Looking back she did some things I thought were a tad unprofessional (like sitting down with my buyer to talk about real estate investing before the deal was done), plus I had to negotiate some fine points during closing, and she had to ask the other two attorneys present on how to write up some paperwork. At the time I liked her as a person, but that is different from business

Don’t get attached to a deal. I was so stressed I got sick and missed 2 days of work (at the j.o.b.). Two weeks later my body is still recovering.

Get a reliable source for comps even if you have to pay for it. I may have received a bigger check if my research had been more reliable.

Don’t stop farming for new deals. During this process I started to question myself and lose faith this can work. Now that the deal is over, I must start from scratch.

At the first SIGN a tenant is not going to move out on time start eviction proceedings. Here in NYC the process can take months – 2 to 6.

Best,
Michelle

Sold in less than 2 minutes!

By: Craig Fuhr
 

Craig’s Success Story

After netting about $95,000 on my first rehab deal in June 2004, I figured, “Man…this real estate thing is easy, right?” Wrong. It’s all about facts, figures, and financing. The first two I understood; no sweat. The third, and perhaps most important, I did not. Until recently, I was working with a money-partner who quite simply, didn’t share the same risk tolerance as me. After evaluating and passing on more sweet deals than I can count, we parted ways and remain very close to this day.

Confident in my ability to find and write good deals, I decided to strike out on my own and established a $90,000 HELOC with a local bank.

On to the success story…a few months ago, while traveling through my old stomping grounds, I came upon a cute little vacant brick bungalow in Baltimore City. It’s a 2/1 SFR with an unfinished basement, detached garage, off-street parking and a nice sized lot. The house is admittedly tiny, but with some upgrades it could be a nice 3BR / 2BA house. I was reluctant to get it under contract because I just couldn’t find solid comps. Then I contacted Steve. In seconds, he was able to set my mind at ease by giving me a target price to shoot for. With great confidence he said, “Get it under contract for somewhere in the mid-50’s and you’ll do well.”

Armed with that information, I shot an immediate email to the owner and put the house under contract that day for $57,000.

Finally, Steve advised me to put the house up for auction immediately following closing rather than performing the $25,000 -$30,000 rehab. Baltimore is a scorching-hot market where auction buyers are paying close to retail for properties in need of rehab. While experienced investors would never go to auction and bid so carelessly….why argue? Per Steve’s advice, I met with an auctioneer the day after closing, and set the auction date for the 1st week of July. In that time, I spruced the place up a bit by removing all debris from the house and garage, taking out several overgrown bushes and painting the cement walls in the basement. All told, I worked about five hours on the place.

Auction day arrived and about 15 people attended. In less than two minutes the house sold for $97,000!

Results:

Purchase Price: $57,000
Closing Costs 2,077
Total Repairs 1618
Holding and Utilities 240

Acquisition & Expenses $60,935

Auction Price $97,000
Auction Fee 6,650
Net Profit 29,415

I need not tell you (but I will) that this deal came as a direct result of the step-by-step success model gained from Steve’s Wholesaling for Quick Cash course, and the personal advice Steve so kindly offered. I would have never pulled the trigger on this $29,000 dollar beauty of it hadn’t been for Steve.

Craig Fuhr

Yes, this business works! Don’t give up!

By: Florence Olamigoke  

Florence’s Boot Camp Success Story

Dear Steve,

THANK YOU, THANK YOU, THANK YOU!!!

You may remember me from your Boot Camps – I’ve been twice. I had been praying for an REI Mentor and late last year, I came across your Website and have been an avid reader since. I also bought your Boot Camp CDs, listened and listened, (and I still refer to them) before coming to the Boot Camps. I must mention that I learned as much if not more from the 2nd Camp as I did the 1st time. I had previously thought that I did not need to attend the 2nd time, but was I wrong!

Anyway, to cut a very long story short, I received approval on my 1st deal yesterday! It’s a short sale that I’ve been working with a lender on. I stand to make at least 70K on this deal at the end of the day. I shall not only keep you posted, but I am willing to send you documentation as proof. To think that all this happened to a newbie as a 1st deal! I realize this is not or may not be the norm, but it still happened, and to me, a newbie! I am saying this because I know people say this REI does not work or that it does not work in their part of town, etc. I am happy to say that it is for REAL! I’ve been there myself thinking that I’ve run this ad for two months and not a single call. I was even going to cancel the ad, then the next day a call came from a very motivated seller. Needless to say, I am keeping my ad running!

I am also writing to encourage anyone that is at the doubting stage. YES, this business works! Don’t give up! If I can do it , you can too.

Once again, thanks a lot Steve. God Bless!

Sincerely,
Florence Olamigoke.

My First Rental

By: Derick(Pa.)

Done Deal: My First Rental

I don’t like to talk about things as they’re unfolding, but like to wait and give you the whole story from start to finish. So here’s the follow-up to my post on the newsgroup title “Thinking of keeping my Wholesale Deal”.

I closed on the place and am already in the process of getting a tenant. It doesn’t need any repairs except for the wall that I have to seal off to make it a 4 bedroom. I’m also converting it from oil to gas heat. I’m relocating the heat from underneath the crawl space (HVAC guys hate to deal with crawl spaces and I can understand why) and putting it in the closet where the hatch is for the crawl space. The hot water heater, thank goodness, is located upstairs. It should be no problem tapping into the gas lines and also into the chimney from where the hatch closet is.

The heater I discussed getting with my contractor is a 90 PVC (I think I have that right?) heater that, according to him, is better for the chimney because it won’t leave a residue like oil. He said we should check the lining of the chimney just to make sure it’s not caked up from the years of oil use. Even though the inspector is most likely not going to check that, it’s better for the tenants safety just to make sure. For those that don’t understand the relevance, the way it was explained to me is that it’s basically a fire hazard. Not good.

As far as paint goes, I’m doing that myself and getting a great price as my investor/agent friend is an ex-painter and still gets good discounts. Why not do it myself and save around a $1,000? It actually doesn’t need paint but it’s a light blue through out with white borders and I’d like an off-white to go with the navy blue carpets. Yep, already has dark carpets so I don’t have to worry about that.

The sellers fixed the place up nice with new windows, new kitchen, and new carpets. The only hassle that I can see is going to be the heater. After that’s installed I’m going to have to chop up the oil tank. I’m hearing that costs around $200. I’m also doing some light landscaping to give it some curb appeal. Nothing major – my dad and I are just pulling a few bushes, trimming, etc. Forgot to mention that the front step is a little chipped so I’ll go to home depot and get some quick crete for that. But that’s about it for the house it self.

The rents I’m finding out are about $1050-$1,100 a month. Not the $1,200 I originally thought. My taxes are also a little over $1,900 a year and not $1,600 I estimated. Now I know better. But it doesn’t kill the deal. I’ll still net $316 profit a month after PITI, vacancy and repairs.

In my newsgroup post, I mentioned that I had a guy that was willing to loan me the money. That’s the route I went because I was having a hard time getting conventional financing. I don’t have 2 years of W2′s and I don’t have the seasoning in my account that banks would like to see. But at 64% LTV he was willing to do it. I have 20k in equity as the house is worth 55k and I bought it for 35k. I paid closing cost which came to $1,827.

Now the race begins. Gotta hurry and get that heater squared away and get a tenant in there. Four bedrooms are in demand in my area so I should have no problem getting what I’m looking for.

So that’s the latest folks. Hope I’ve inspired some reading this to take action in whatever it is you’re planning on doing. It wasn’t that long ago I had nothing and now I’m loving my life. I’m so excited to be making progress and having the best still yet to come. Golf has become my new favorite hobby. How sweet it is that I have the time to practice at it. Good Luck!!!

Derick(Pa.)

Derick’s First Deal

By: Derick(Pa.)

Derick(Pa.)’s First Deal

I finally got my first deal after six months of studying Real Estate. It’s definitely been tough, but I encourage all newbies to PLEASE stick with it. Once it pays off, it will most certainly be worth it!

I found the house when I was out driving one day, even though I had passed it a thousand times before. It was vacant, in need of repairs and certainly the ugliest house on a nice block. After finding the owner in the county courthouse records, I looked him up in the phone book and saw that he lived about 15 minutes away from the property. I gave him a call and asked if he was willing to sell it. He replied, “Well, the house needs some repairs. Are you sure you want it?” I explained that I fix up houses and he proceeded to tell me that the house has been vacant for about nine years because his son was supposed to fix it up but his job relocated him out of state.

We then set up a time to meet so I could get keys and look around to see what was needed. Once inside, I estimated that repairs would cost between $30,000 and $40,000. I went back to him and offered $10,000. I knew that was a safe bet, but he said he wouldn’t sell for less than $30,000. Being desperate (NEVER DO THIS) for my first deal, I took it. We signed the deal giving me two months to close and I put up a $50.00 deposit check telling him it would be held in escrow at the title company. (Nice little tip I picked up from Steve’s course). Homes on the block go for $85,000 – $90,000 fixed up and I figured I could wholesale it to someone since it would still be far below market value.

However, I got my lender to look at the house just in case I couldn’t find a buyer and they didn’t approve the deal because the margins were too tight. I was starting to get down on myself. It was depressing having such high hopes completely blown away in seconds. But I didn’t give up. It was my original goal to wholesale the house, so I continued to bring in buyer after buyer to look at it. Some liked it but said the same thing the lender did. Others were just flat out rude with how they carried themselves while telling me they didn’t like my deal. (My opinion, if you don’t like a deal be humble enough to not turn into a complete jerk and just simply let the buyer know you’re not interested. Enough said on that.)

Next, I decided to ask Steve for some advice on what to do. He suggested that I go back to the seller to tell him my lender likes the deal but not the price and ask if he would be willing come down some. He did since his wife had been pressuring him to sell it because it was only eating up taxes every year. He came down to $20,000 and said that was as low as he could go. Originally, he told me $30,000 was the lowest but time has a way of motivating people. I explained to him that would check if my lender would approve the amount and that I would get back to him. Next, I informed some of the previously interested buyers of the new price, as well as a realtor friend of mine. The realtor called up a buyer who was looking for a project similar to mine in that area. The next day he came out, loved the place and we made the deal right there.

I informed the seller that we had a deal at $20,000 and set up closing for next month. Today I met my buyer at the title company and received a deposit for $2,500 being held in escrow until closing. This was my suggestion and he loved it. He said it was the first time someone didn’t want the money now and was willing to be this fair about it. We’re most likely going to close sooner than expected but he’s waiting for his lender to process the loan. As soon as he does, it’ll be a $5,000 PAYDAY FOR ME!!! (I already had the title work done because I got that started as soon as I signed up the deal.)

I owe it all to the newsgroup, Steve and Hal for never loosing faith in me and prayer. Steve’s course (Wholesaling for Quick Cash) was VERY instrumental in how I approached things with this deal. If you’re on the fence about the money for the course, get over it and get it. It set a fire under me that didn’t let me give up on getting my first deal. For the past two months all I’ve been doing is reading his course and listening to the Boot Camp CDs. It’s paid off.

The lessons I learned from this are, first, that you’re never too old to pray. It’s funny how once prayer is added, things come together. Second, no matter how successful you become or how much you achieve always stay humble. When I forget this, life has a way of reminding me. Third, if you do get into a contract at a price too high, it’s not over yet. That’s what negotiating is for. Just make sure you have clauses that protect you but also be fair with the seller. Don’t jerk them around by not making up your mind on the price by constantly trying to get them to lower it again and again. Fourth, having a million contingencies is unnecessary. A financing contingency is all you need. Fifth, keep track of EVERYONE that contacts you about your property. Get business cards if you can because this definitely builds your buyers list. The guy buying this house was able to put up a big deposit and move fast. He didn’t mess around. Who do you think I’m calling first when I have my next deal? Last, NEVER give up! There were times when it seemed dark during this deal and it looked like I may have to hold off on my real estate goals for now. Never giving up, overcoming hurdles, getting good advice (thanks Steve and Hal) and having my faith saw me through it.

I can’t thank the people who run the newsgroup and make this community enough for being here. Without them I may have just been another victim of the phony seminars and dishonest boot camps out there. So please all you newbies out there, take what lessons you can from this and never give up. PLEASE. Your financial independence is too great a price to pay. Just pacify any nay sayers you may come across.

Thank you for reading about my first deal.

- Derick(Pa.)
Dadams831@yahoo.com

……

Just Finished my 5th House – Largest Profit Yet!

By: Laura

I just completed and sold my fifth rehab in January. I spent just under 6 months from start to finish. I netted my largest profit yet. Here are the details:

Purchase price: $62,000
Repairs: $33,800
Sell Price: $186,000
Net Profit: $70,000

I bought the 3-family from an individual who was in foreclosure and who had received one of my letters. I was able to close quickly (within 10 days) – all cash and no contingencies. The seller liked the fact that my offer was clean and that I could act fast. I bought and rehabbed the property with very little money out of my pocket. My private lender funded both the purchase price and repairs.

Repairs included vinyl siding, replacement windows, structural reinforcement, professional removal of asbestos and an in-ground oil tank (this I paid for prior to buying the property to confirm that no major oil contamination had occurred), all new decking and interior improvements including new flooring, carpeting, minor plumbing, some sheet rocking, lots of painting and other minor cosmetic work. We contracted out the labor-intensive jobs and took care of the cosmetics.

My next purchase will be another 3-family scheduled to close at the end of February, and then possibly a 5-family towards the end of April. The seller of the 3-family responded to my classified ad; the seller of the 5-family replied to a mailing. The numbers for the 3-family are:

Contract price: $175,000
Repairs: Not a rehab, just minor cosmetics totaling less than $4,000
ARV: $240,000-250,000
Monthly net cash flow: $750.00
Purchasing via traditional bank loan – 80%LTV, remainder coming from a line of credit against another property.

I plan on holding this and either refinancing in one year or placing a line of credit against it to help fund other investment opportunities. I’m working out the numbers for the 5-family right now.

Real estate investing certainly has its ups and downs, and is in no way an easy, get-rich-quick profession. But, I’ve remained persistent and committed, and am reaping the rewards of my hard work.

I again thank you and the loyal following at flippinghomes.com for your continued support and confidence. Your newsgroup offers a wealth of information to all levels of investors.

Sincerely,
Laura

The Big Profits Will Come…  (Just made 92k)

By: Chuck and Amy

I had a call from an elderly couple who owned a home free and clear in a nice area of Carroll County, Maryland. The house had become too much to keep up and the owners needed to down size. The problem was that they smoked heavily and lived like pack rats. Every room in the house had junk saved from the 30 years they lived there. I don’t know how they got around the house! They also had a 100+ pound dog living in their laundry room.

The house was a 1950 square feet, four bedroom, three bath, two story (with basement, unfinished), half brick and half aluminum siding and was built in the early 1970′s. The comps in the area ranged from $325,000 to $400,000. The house needed about $40,000 in repairs and upgrading. The kitchen, bathrooms, roof, windows, and siding were as old as the house.

In October, we agreed on $205,000 for the purchase price and settled in November. I ask them to clean out the house of all their belongings (junk). After settlement I started to work on the house and used four 30-yard dumpsters to clean out what was left behind. Originally I did not think the house was that big because of the junk the sellers lived with. After cleaning out all the leftover junk the house became huge.

I could have flipped the house at this time and made about $50,000 without doing anything – it appraised for $295,000. I chose to keep working on it because I needed to get more experience rehabbing. This was my fourth rehab in 14 months and the best opportunity to make a large profit. I liked the challenge.

In the course of rehabbing, a major problem came up with the basement. It seemed that the sump pump worked continuously. I found that the house was built on a winter spring. (A winter spring is when the water table is up as the Spring season develops. This can create a wet basement if the home is constructed in the spring zone.) In late fall and early winter, the winter spring flows wherever it wants to go and, this time, namely into my basement! I called many experts and they told me I can redirect the flow around the house. Throughout November and December the water flowed and the sump pump worked and worked and worked, but it finally failed one day. Yes, I had three to four inches of water in the basement. I quickly replaced the pump even though the one that failed was only a year old. It must have been tired.

Here is where the power of prayer comes in. In January 2004 I had the septic/well contractor come in to do the redirecting of water from the spring. When the back hoe operator got down to the footer and continued two feet below the footer, he could not find any water. It had dried up. On the side, I didn’t know that my wife had been praying a specific prayer of “God, please dry up this spring.” I thought the answer would be that He would dry it up by redirecting the water around the house. He did one better. He dried up the spring. God is good! I did not have any more water problems at all during the rehab process.

The exteriors – windows, siding and roof – were in by March. The roof contractor had to shovel snow off the roof to start working on it. I have never seen a roof put on in 20 degree weather with wind blowing 20+ mph. They were dedicated and did a great job. The interior – all three bathrooms were redone; the kitchen fully replaced and looked great. As I mentioned earlier, the sellers smoked heavily. All the walls and ceilings were tinted in yellow, but were originally white. Nicotine stains. We tried to paint with water based primer but the yellow tint came through. We tried again with a second coat, but again the same problem. We also still had the smell of smoke, so we switched to oil base primer after a little research. This was the answer. I suggest oil base primer for all primer jobs and then switch over to the water base to finish the job. The laundry room (just off the kitchen where the large dog lived) was gutted. I found dog hair up until the last day of completing the rehab.

The rehab was finally completed by June 2004 and placed on the market for $400,000. It finally sold for $390,000 in August.

Here are the numbers:

Purchase price $205,000
Holding cost 15,000
Rehab cost (over budget) 58,000
Realtor fees 20,000

Sale price $390,000

Profit $92,000

Not a bad profit for working about nine months part-time.

My first 3 rehabs:
#1 – Have a tenant/buyer in it waiting for the sale. Profit should be about $8,000.
#2 – Sold with $8,000 profit. My wholesaler made more money than me.
#3 – Sold with $9,000 profit.

It took me four houses to make any meaningful profit. I was green and it showed. I didn’t have any true guidance before the first three houses, but after Steve’s boot camp in October  I had the knowledge to make better deals and buy at the right price.

So for the newbies, don’t get discouraged. The big profits will come.

God Bless,

Chuck and Amy

I Always Learn Something New…

By: Dave Fleming

I enjoyed myself tremendously and learned ways to fine tune my program at Steve’s boot camp. I always learn something new when I attend a seminar and this one was crammed full of gems and nuggets of valuable information I’ve already implemented. Knowledge and education when properly implemented and utilized benefit everyone. Thanks again for a wonderful experience.

Dave Fleming

Fantastic Experience

By: Molly

I wanted to let you know how much I appreciated all of the time and dedication you all put into the boot camp! It was a fantastic experience. I’ve read so much about getting into real estate but until this seminar, the more I read, the more confused I got. I also felt as if much of what I read, if it was technically not illegal, it was at the very least unethical and perhaps geared toward taking advantage of another naive or uneducated person. As for me, I cannot do business that way.

Your boot camp showed me that it is possible to get into this business and really do something positive to help other people, feel good about what you do, and still make a great living. What a revelation!!!!!

Steve, I promised you that you would hear back from me and I intend to make real estate investing succeed for me. When we left the boot camp I made a commitment to myself that I would not let this opportunity pass me by. I am sure that God led me and many others who were there for different reasons, but to the same end of helping others and ourselves, our families, and those that we love. THANK YOU!!!!

Although I had to go back to my j-o-b this week (bills are still due and I haven’t made my million yet), wanted to let you know I have made some progress….Got in touch will a hard money lender and have most of the information together for the credit application and have talked to a person about bird-dogging for her – I found two pre-foreclosures to investigate this week and forward to her. My business plan is well underway. I also got in touch with a real estate agent who tells me he is familiar with working with investors in my area and was willing to work with me. I need to get up there and really do some serious driving around to get to know neighborhoods well. Have also looked at another neighborhood since it’s closer to home and I am just a little more familiar with them already but a lot of in-person time there is in order.

I plan to call an attorney this week to schedule an appointment to help me set up my LLC so I can ensure that I protect what few personal assets my husband and I have accumulated. Also going inquire about title company referrals. Business card design is underway. So – - no deals yet, but I am moving forward.

Again, my deepest thanks to all of you – I wish you all only the best in all that you do!!

Best regards,

Molly

This Doesn’t Work Where I Live…  ;-)

By: Bob in Michigan

I’ve had Steve’s materials for over 2 years now and have never done exactly what he told me to do. I would give it a try (i.e. make about 15-20 offers) and nothing would happen. So, I tried something else. My thoughts were always, “This doesn’t work where I live and my market is different than Steve’s.”

When I was at the Boot Camp last month, I actually envisioned myself doing the things that Steve was instructing. I could mentally see myself collecting earnest money, negotiating with a seller and collecting a $10,000 check at closing. The light bulb turned on and I have faith that my investing career will follow that of the success stories on this website and newsgroup.

Everything I have done has been exactly from doing what I was taught. It wasn’t my own idea. Now having had a few successes, I am even more committed to simply DOING what I have been taught to do.

All I have to do is EXECUTE what is in Steve’s books. I never knew that before even though I had read the book 10 times.

Bob in Michigan

Marine goes back to “BootCamp”

By: Doug Williams

Let me begin by saying that if you are considering attending Steve’s Boot Camp, but are wondering if it is worth it, please keep reading!

I have been investing in Real Estate for the past three years. A year ago I became a full time investor after 7 motivating years in the United States Marine Corps. A few weeks prior to leaving the Marines, I attended Steve’s October boot camp. It seemed oddly appropriate for a Marine to be attending a real estate “boot camp” prior to embarking on a full-time career in Real Estate.

The most memorable aspect of the event was the fact that Steve put everyone at ease from the start. The room was full of investors, each of them at a different point in their Real Estate career. When Steve stood up to speak, it was immediately apparent that he was 100% genuine and 100% real. He had been in the same shoes as everyone in the room; he had rejoiced in success, and learned through failure. The real world lessons that he shared during the event have influenced every real estate decision I have made over the past year.

If you’re contemplating going to Steve’s boot camp, you’re probably asking yourself, “Is it worth what he is charging me to attend?” Let me help you answer that question. Since I left the boot camp last October, I have purchased 9 single-family houses here locally. I’ve renovated and sold some of them, torn down others and built new homes, and on one, sold it to the guy behind me in line at Home Depot for a $40,000 profit three days after I bought it. I also recently purchased a 65-unit apartment building.

Each of these projects was executed using techniques and tactics that I learned from Steve at his boot camp.

I am going to attend the boot camp again this year. You’ll be able to pick me out…I’m the guy with the big smile on my face!

Go. Listen. Interact. Succeed.

Doug Williams

The Project Could Have Been Disastrous…

By: Zoe Kivio

With Steve’s rehab course as my guide, I was starting my first rehab and was actually not that terrified. Somehow I felt that with a purchase price of $13,000 I would be okay if any unexpected repairs came up. And yes, they DID come up. That is one thing I have learned through rehab – EXPECT ADDITIONAL REPAIRS.

The owner called me up on my ‘trading post’ ad, desperate to sell his house.  I was a beginner and wanted to take things slow.

He, on the other hand, wanted to sell the thing yesterday. Thus, the calls from him were relentless! He REALLY wanted me to take this nightmare off his hands. So, I did.

I negotiated a short sale with the bank, therefore discounting a $50,000 existing mortgage down to $10,000. Throw in $3,000 for overdue taxes and the purchase price was $13,000. It was a three-bedroom, one bath, 1,300 square foot old frame house built in 1920 – with potential to be very charming (if only someone had painted it a nice color!). It had been vacant for five years and looked terrible. The after-repaired value was about $75,000.

I originally thought I would spend about $28,000 rehabbing the house (it needed EVERYTHING practically), but ended up spending $42,000. The sewer/water line, roof and structure needed help, which I did not count on. Thankfully, since I bought the house at the right price, the extra repairs were not a complete disaster. Upon finishing it, the house appraised for $84,000 and looked wonderful! The neighbors were very happy, since this eyesore had been transformed into the cutest house on the block.

Having studied Steve’s course, things went very well. Without it, the project could have been disastrous. What helped me the most was the section on estimating repair costs. I had bids that were completely outrageous and, thankfully, knew so because of his course. It is amazing how a contractor will meet with you to bid a job, initially ask $8,000 for a roof job and, within three minutes, is down to $4,000 – just because I knew better and told him so. The power of knowledge!

- Zoe Kivio, Virginia

10 wholesale deals in the last year – $46,380.00 in profit.

By: Ed Kowalski 

I am writing this success story to encourage all the Flipping Home students out there. Since I posted my success story about 7 months ago, I have completed a total of 10 wholesale deals in the last year and have made over $46,380.00 in profit.

Why is this significant? Because more often than not, a person will do a few deals then stop and not consistently get into the habit of looking for other deals and making offers. It is almost like we convince ourselves that it worked once but we cannot go ahead and keep doing it. But that is exactly what we can do. Once it is done a few times it really becomes easier and easier. So this is to encourage everyone who has never completed a deal and everyone who has completed a few but they have gotten comfortable and have stopped working towards their financial freedom.

After my first few deals, I actually went back to working full-time in my old line of work. Granted that lasted about 2 weeks, but the point of the matter is that I got comfortable with a few extra thousand in the bank and just wanted to remain in that comfort zone. But then Steve pointed out that fact to me and I got back out there. The reason I pointed out the total income of $46,380.00 is not to brag or puff myself up but it is to point out that at my old job I was making about $35,000 and getting taxed to the max. Now I know next year I can make at least $46K and get all the benefits of business ownership.

Along with this I am completing another wholesale deal that will net me about $5,000 in a few more weeks and I am going to utilize another technique I have learned from Steve by trying a “Rehab for Big Cash” in a few more weeks. I believe I will net about $20,000 on that first deal. Not too bad for a guy without a college degree in his mid-twenties.

Above all I give God the thanks and glory for helping me to support my family doing what I love to do. A close second is Steve who I thank for always being my mentor and friend. He always reminds me when I am getting too comfortable and helps me stretch and strive for new levels in this business.

It is sad when people tell me that they are working day to day, paycheck to paycheck just because there is not any other way to live. BUT THERE ARE WAYS. No one has to settle for a mediocre life or being unhappy in a 9 to 5 job. My suggestion to anyone who is unhappy is to pick up Steve’s materials, “Wholesaling for Quick Cash” or “Rehabbing for Big Cash”, depending on your financial capability. Start out by just trying to do one deal. Don’t focus on becoming a real estate tycoon like so many others teach. Just do one deal. See if you like it better than your job. If so, do a few more until your income is matched. But just try to do one deal. So many people are convinced they love real estate and are going to be rich from it but have not completed one deal. That is why I loved being taught the way I have been taught by Steve. It is realistic and it is something I can do tomorrow. It is not a pie in the sky fantasy of your mailbox turning into an ATM. It is about real people, learning, stepping out on faith and starting their real estate journey one deal at a time. Thanks Steve for not giving up on helping others. God bless you and your family.

I found a decent paying job again,but I was hooked on the idea of getting a home to rehab.

By: Dan Voegeli

Dan Voegeli’s First Rehab Story 

The 2003 year was very rough for me and my family. I was laid off from a good paying job in manufacturing with no chance of being called back. I had found a couple of temp jobs to help keep us a float. I desperately started searching within myself for ideas that would interest me to turn the corner on our financial distress. One day I’m looking through the paper and saw an ad by one of the big real estate guru’s on a free seminar. I knew it was some sort of sales gimmick, but I went anyway. I didn’t pay the excessive price for the three day seminar, but it did get my juices going on ways to make money. 

About one week later I found a real estate investment club in Milwaukee, and started attending. I listened and learned as much as I could. One particular meeting, Steve Cook happened to be a guest speaker. He totally impressed me with his knowledge and ideas, as well as his laid back personality. Nothing like the ‘other guy’ seminar. I bought a couple of his books and started reading immediately.

It wasn’t too long after that that I found a decent paying job again, but I was hooked on the idea of getting a home to rehab. I started interviewing Realtor’s, and was amazed by the bad attitude of some, but eventually found a good one. He found a VA foreclosure for me within two weeks of our first meeting. Realizing I didn’t have to find hard money for this project, I took a home equity loan on my own house. I put in an offer of $44,000 on the three bedroom, one and one half bath cape cod. I happened to love cap cods as it were, so I was excited about this one. 

I was quickly able to round up a good crew of workers to help me get this house back on the market. Neighbors came out in droves to see what was going on, and I hired a couple of them for jobs here and there. People were actually asking me to buy the house before I was even done. I did sink more money into it then I needed to, but I liked Steve’s thought on putting in quality repairs. I didn’t want it to look like it was just slapped together to get back on the market. I repainted the exterior, put in new concrete along with a new patio and sidewalk, brought the lawn back to life, put in new entrance doors and put in ceramic tile in the entrance halls front and back, patched all the holes and repainted the interior completely, put in new light fixtures and switch plates, put in new carpet throughout, refinished the kitchen and floor…….You get the idea. With some help, I did a lot to this place. Hardly anything was left untouched. It’s a home I would have been proud to live in myself. I sunk roughly $16,000 into it. 

When it went on the market I had lots of offers between $72,000 and $77,000, but found that getting someone qualified to buy it was starting to be a problem. Then I remembered how Steve had said that you should be the bank too. I started thinking about that and wondered if I should just sell it by land contract. I eventually found a mortgage broker who had a lot of success in the B/C market. They helped me get licensed in origination and I started referring people to them. Next thing I knew I had a qualified buyer and also other commission checks coming in for referrals I had sent them. 

To make a long story short, I had the house for about four and a half months, start to finish. I sold it for $77,000 and gave some seller concessions to get it moved. With other costs(taxes, utilities, etc), I figured my profit at just over $10,000. This doesn’t include the commission checks I received in the amount of $2,450. Wanting to be in charge of my job, I left manufacturing recently and became a full time originator. I am currently looking for my next house to do. Steve’s knowledge helped me tremendously. Good luck to all, and God Bless.

Dan Voegeli

8 Flips – And A New Home…

By: Dave (bal’mer)

A thank you note from dave (bal’mer)

I wanted to say thank you very much to Steve, Hal, John and William. They have all been a great influence on my current success. I want to especially thank Steve, for I can say if not for him I probably would not have met Hal, William and John and even if I had it would have not been in the same capacity.

I write this now because last week I closed on my first house that was purchased to live in. I did not want to write it prior to closing as I try not to “count my chickens…”. The house is a four bedroom, 2 bath home in the area that I most wanted to live in.

I asked Steve where to go for financing and after following his direction I have a rehab construction loan on this house where I did not put any money down at settlement. After the repairs I proposed are made additional money is released to me because the lender based the financing on the value not the purchase price.

The investor that I purchased the house from I probably would not have met or at least not in the same capacity if not for Steve’s influence. Also my financial picture has changed dramatically as I have completed about 8 flips in the past six months and own a rental property and own another property that I am lightly rehabbing to resell shortly. I also have about 5 flips I am working on that have not gone to settlement yet. I also completed my first flip where I never even set foot in the house (I drove by the exterior and an associate shot images of the interior but i myself never even went inside) and I completed my first flip where I was not even present at settlement, the assignment fee check was just sent to me after the closing.

Although I have read many books I consider Steve’s material the foundation and an essential element.

I am always impressed with his perspective on different investment problems I encounter when I ask for advice. I am also happy that I have learned some of his command, calmness and positive outlook about investing. I am not sure how to convey what I am trying to say, but it is similar to sailing with an expert how handles the maneuvers without thought or worry, and when you learn from that person it makes it seem natural and you don’t stress over every jibe and tack.

I used to rent a 1 bedroom apartment prior to my move, I will now have an office area, a workout room, painting studio etc –It is a nice change. So I just wanted to write and say thank you so much for all your help, I am glad this REIplace community is growing with such great people, I love reading everyone’s posts. I am happy that my life has changed and I am really excited to continue investing.

All the best,
Dave (bal’mer)

From Victim to Victor

By: Ehab

Ehab’s story – From Victim to Victor

Like most first-time homebuyers, I really had no clue about what I was really getting myself into by buying a brand new home. Acronyms like PITI and APR were foreign terms to me. With the little knowledge I had, it was no surprise that after a year of living in my new house my mortgage company informed me that they had not escrowed enough money for taxes for the past year and I owed $6,000.

Since I nearly lost consciousness after hearing the news, I was given the option of dividing the amount over my next year’s mortgage payments. In addition, so that I wouldn’t run into the same problem next year, they would need to increase my payments an additional $500 a month to cover the coming year’s taxes. For those mathematically challenged, that was an additional $1000 increase to my current monthly payment. Needless to say, I quickly understood the term “motivated seller.”

Fortunately, my curse also became my success story, as I was forced to search for solutions to my real estate problem.

Immediately I learned about Real Estate Investing and was able to lease my house before it was put on the foreclosure market. I stumbled onto Steve’s site and discovered the world of wholesaling and retailing. My mind wandered back to my childhood days of taking apart toasters and fixing them again and I knew rehabbing would be my Real Estate weapon of choice.

After a month of religiously reading the newsgroup, articles and various courses, I felt prepared to take my first steps toward doing a deal. I interviewed a few REALTORS and found one who seemed to understand my investment needs. With a little training and a lot of work, my REALTOR brought me a house that was priced right and had only been listed on the MLS for one hour.

We made an offer and were able to buy it that day. He even referred me to a great handyman who did all the repairs on the house within five weeks of closing. I used the same REALTOR to sell the house, and after two months on the market it sold for an $11,000 profit. I didn’t believe the check when I saw it and thought for sure I would get mugged or lose it on the way to the bank, but fortunately, it went through okay and put a smile on a young teller’s face.

Of course, I had fears throughout every stage of the deal, but Steve and the gang were all extremely supportive and helped me to overcome every challenge I faced. Thanks to everyone at flippinghomes.com who helped me launch my REI career.

I walked with a check – a few dollars short of $13,000.

By: Dave (bal’mer)

Education allows you to pick up money laying on the sidewalk -

On a cold January day I was out looking at a property. I received a list of first mortgages in default. One property was in a hot area–Federal Hill. I was not familiar with comps there but did my research and realized that this property, for the back mortgage of 50k, was a good deal.

After going back to the guy who gave me the list telling him I was interested in it, he said that he thought there was a mistake on the list, but was not sure. I asked if I could contact the owner and speak directly to him to find out, and he agreed.

I contacted the owner through a bit of research and found out he owns many properties down there and chuckled when he heard that it might be in default – I later found out that it was a mistake. After wasted time I was slightly upset, but at least I learned about the area.

I continue down the list., I went to another house with a first in default on the other side of town a few days later. I saw a neighbor’s house with a screen window and a hole cut and all these cats jumping in and out of it. (It was probably about 30 degrees outside). I knocked on the door to ask if her neighbor’s house was vacant (the one with the first in default). A very skeptical lady answered the door and told me it was occupied. I spoke to her for a minute or two, thanked her and started walking off. She called back “Do you buy houses?” (incidentally, I was wearing old jeans, a skater’s hoodie jacket and carrying a big flashlight, the way I dress so as not to attract too much attention in various neighborhoods).

I reluctantly turned around and said, “yeh, sort of”. I was a little taken back, I did not present myself as someone who bought houses.  So she called me back, invited me in and told me about a house. She said she wanted 45k, no negotiating before she would tell me the address. I assured her that I would not make an offer unless full price after the property address was received.

Well, ironically (or coincidentally – I always mistake the two) the property she wanted to sell was only four blocks from the one I had been chasing earlier in the hot area of Federal Hill. It was an EOG shell on a one-way street. I could not find comps at the time on the small, one-way street, but the houses on every block around it were going for approximately $240K – after being rehabbed. I went back and signed a contract and gave her a $20.00 deposit.

I immediately went to work, had the contractors replace the bad locks on the front and back doors and gave her a set of keys. I hired a consultant to go down, tie up wires, sweep the floor in basement and knock down some of the sheets of plywood onto the support beams and take pictures to show prospective buyers. I went to work on selling it. I tried to get 78k, but only people who wanted to use their financing were willing to go that high. I lowered my price a bit and started getting offers. Most of the offers were right around 60k by people who had the funds to close and were willing to give the 4k earnest money that I wanted and Proof of funds statement. I ended up accepting an offer of 58k. I was more concerned with getting my 4k non refundable in case I was forced to close the deal if the end buyer did not come through.

So we went to close. I walked with a check a few dollars short of 13K. My seller was happy–she got rid of an old rental that she hated and had been sitting vacant for many years. She had it gutted years ago because the condition was so bad after the tenants. She now had money to fix her personal residence up, I had my contractors go by to bid the work for her and had them deliver 16 bags of cement from the other target property to her personal residence. I was happy–I made a few dollars. My buyer is  happy; he is currently selling the house and stands to make a very nice profit.

I titled this story “Education allows you to pick up money laying on the sidewalk”, and the education that I speak of primarily came from Steve Cook. On this deal I asked him for advice on determining the value On the back streets, on selecting which offer to accept and I spoke to Him about the area because it is in Baltimore where he lives. His advice was a nice reassurance, but it was my original study of his materials, attending his bootcamp, lunch meetings and conversations that I have had with him that gave me much of the education to do this and my other deals. 

dave (bal’mer)

Anatomy of a Rehab on Long Island

By: Christian 

It was just several days after I attended Steve Cook’s One Day Rehab Workshop on Long Island, NY that I finally jumped off the fence, went full time into Real Estate and located a great rehab opportunity.

Even finding the property was serendipitous. I initially called a Realtor regarding a house for sale that looked promising. When they told me the asking price I knew right away that there was no motivation behind the seller. However I did tell the broker that I was looking for investment properties that I could rehab and sell. She invited me to her office to look at another property. By the time I arrived at her office, the house she intended on showing me had an accepted offer. Also that day another property her office had listed had the deal fall through, so off I went to inspect the house with her agent.

The house is an expanded split-level about 30 years old and had been occupied by rental tenants for several years. The owner actually had several deals fall through on the property and was becoming increasingly desperate to sell. He had built a dormer over the garage with the intention of adding more rental units to the house (it is just a one family house) but could no longer afford to continue with the construction and no longer had a tenant in the house to help pay the bills. 

The original part of the house was in fair condition and needed to be freshened up and slightly updated. The dormer was nearly complete, but not finished enough for the Town to issue a Certificate of Occupancy. Without the C.O. no bank was willing to mortgage the property for a traditional buyer. After viewing the property I went back to the Realtor’s office to comp the property and was pleased with the potential of this house.

I was able to make an all cash offer with a quick close. We wrote up an offer to the Seller and before I arrived home my cell phone rang with the Seller’s counteroffer. We split the difference and a deal was born.

Original asking price: 325,000
Deal that fell apart: 298,000
My purchase price: 270,000
Comps: 340,000 to 370,000
Repairs: 15,000 to 20,000

I was ready to close in 30 days; however, my attorney included in the contract and insisted on me to not close on the property until a C.O. was in place for the dormer. The result is that the seller was required to complete a significant amount more of finishing the dormer interior, work that I was budgeting to do myself.

Further by waiting for the C.O. I avoided the worry of the possibility that the local town’s building department could condemn the dormer work done and order it removed or require me to re-file and pay for building permits and inspections.

Closing didn’t take place until mid September but I was ready to get going on the rehab right away.

My first day in the house I surveyed the whole house and listed all the work needed to be done. I then prioritized, matched my original budget with each item and scheduled the work to be done. I had some contractors in place already and just needed to finalize contracts with them.

I wanted to be hands on with this rehab to fully learn the time and process of the rehab (yes I now know that I can do more by having others do work for me).

Flooring:

Carpeting was virtually new in the original part of the house; the dormer needed carpet and a mudroom tiled (I love the tile, it’s a heavy vinyl tile with the look of ceramic but not the cost). Work finished in two days close to my budget

Plumbing & Heating:

I replaced two bathroom vanities and two toilets. The upgrade to the kitchen was minimal – new dishwasher, new sink and fixture. Also had the Boiler serviced and finished work required to connect the hot water pump for the dormer thermostat. All plumbing work went smoothly another two day job and again within my budget.

Electrical:

Planned on replacing all outlets, switches and ceiling lights, and completing wiring of the dormer. First surprise… electric service from the electric company was in serious need of an upgrade and years of amateur wiring made the electric circuit breaker panel a dangerous hazard. If one thing is done with extreme caution, to me it is a safe electrical system installed by an electrician I trust. I didn’t think twice about doing the right thing and upgraded the entire electrical system. It was the best $2,500.00 cost overrun and lesson I ever learned.

Landscaping:

Landscaping was a big part of the curb appeal this house needed. Primarily it needed some overgrown shrubs removed and some trees trimmed or removed. I had the tree service mulch all the branches and spread them throughout the yard and the former shrubbery in front of the house. Throw in a couple of lawn cuttings and things looked great and again within my budget.

Kitchen:

As previously mentioned I replaced little in the kitchen. A new dishwasher, new sink and fixture, a new stove. I pulled out a very ugly microwave cabinet above the stove and replaced it with a new cabinet and stove hood exhaust/light. The refrigerator was in good conditioned so it stayed. Made my budget again.

Painting:

My initial budget for painting was actually pretty good, so I thought. My first lesson was that painting over existing paint that is gloss or semi gloss requires more work and therefore money to do right, not a big mistake but it did add to my costs. Also I decided to remove some old paneling in the family room, which also added to my painting costs. Then some old wallpaper slipped past me, again adding to my cost.

Roofing and Siding:

The roof was brand new, but after investigating a leak I thought was due to some missing siding and driving rain storms turned out to be due to the previous owner not installing a cap on the roof. I missed it but it was a minor cost addition. The siding was also new but incomplete, mostly fascias and soffits, as well as shutters (amazing what a few pairs of $40.00 shutters can do for a house). My handyman did all this work. Except for the roof cap, completion was within my budget.

Miscellaneous:

I decided early on to do most of the light carpentry work myself, some sheetrock patching, mouldings, doorframes, hardware replacement, spackling, etc. Also, some light demo work. This afforded me the opportunity to become very familiar with the rehab process working as my own G.C. and laborer, but it also cost me time and therefore money. Still a lesson I was willing to pay and learn. I did however find a very good handyman whom can handle all types of work including my roof and siding repairs, hanging doors, replacing windows, etc. Budget for miscellaneous work ran higher than I allowed, due in part to my inefficiency and more work required due to other changes such as removing family room paneling and therefore needing to install more moulding, Also discovering short cuts taken by the previous owner that I would not tolerate as part of my finished project or even consider trying to pass on to one of my buyers.

The end game:

When my work was nearly complete I listed the house with my Real Estate office (As a side note during the buying of this house I became a licensed Real Estate Sales Person.). Timing wasn’t great here. I should have been back on the market weeks sooner, but ended up listing the week before Thanksgiving. Well the phone did not ring Thanksgiving week. Then the following weekend was a blizzard and 20” of snow followed by another snow storm a week later leaving 8” of snow. Now Christmas is getting very close and I am sure not expecting any calls until after New Years, when much to my delight I get 6 calls within a week of Christmas. 

Most of the calls were people just kicking tires, one family drove by and even called me while I was out of state as they stood in front of the house and asked questions about the interior. I thought certainly they would be strong contenders, so I made an appointment with them to see the house a couple days later. Surprisingly they canceled and I have not heard back from them.

However, later that day, one woman did look at the house, inside and out and was very interested. A few days later she then took a second look with her fiancé and parents (Parents, like attorneys, can be the kiss of death to a real estate deal). And, just a couple more days later I had an offer that met my goals and parameters for selling the house. 

They were pre approved for a mortgage by a mortgage banker I hold in high regard and, I have been assured of a fast closing.

The bottom line:

Sale Price: $345,000
Purchase Price: $270,000
Rehab Costs: $22,000
Holding Costs: $3,500

Gross Profit: $49,500

Some Lessons Learned:

Don’t pay all cash when not necessary. I tied up too much of my capital by paying cash. Since I was getting a C.O. for the house from the seller I should have gotten a mortgage and kept my cash liquid.

Keep a deal moving. Push to close. Time is money.

Mistakes take twice the time and money to fix. Other people’s mistakes take even more time and money to fix. 

People buy and sell houses all times of the year.

Don’t overpay for a house. I probably could have bought this house for $10,000 to $15,000 less. Not a whine, just an observation.

Don’t over rehab a house. Keep the rehab work performed to what will help bring in the best return for the investment being made. Some things I planned on doing to the house but cut out, did not even matter when my buyer looked at the house. Certainly other things that gave the house curb appeal and a sense of being new inside and out made the biggest difference.

Get the job done, and plan accordingly. Avoid seat of your pants type decisions.

Know a good deal when it comes by.

I am sure there are other lessons to be learned and I look forward to each one of them.

Finally the lesson I kept trying to learn but couldn’t until this rehab…
“Do this now!” , means exactly what it says.

Sincerely,
Christian

Collected a $5,000 check for 5-6 hours work…

By: Eric and Heather Zaal 

As you know Heather and I have done 2 rehabs, but we have recently completed our first flip. Just before Christmas we had received a call on one of our signs from a lady that was wanting to sell off one of her rental homes. While talking with her on the phone she told me that she wanted 30k for the home. We did our homework and if the property were rehabbed it would be worth 58-60k. 

Heather posted online looking for investors looking for rental properties and got several responses that were interested before we even had a contract on the property. The following morning we went out to meet the sellers brother, who showed us the property.

We were happily surprised that was in rent-able condition. I wrote up a contract and faxed it to the seller, and we also let the seller know that we were considering wholesaling the property to an investor that was looking for a buy and hold property for a small fee. So everything was out in the open and she had no problem with that. She did call us a couple of days later saying that she decided she was going to put a renter into the property incase the deal somehow fell through and did I think the seller would mind honoring the lease. Well Heather was on the phone in a shot. She explained what was going on with our potential buyer and he had no problem with that. I was shocked that the title commitment came back in 3 days since it just before the holidays. We realized that it was probably not going to close until after the first of the year considering the time of year and we were correct. 

On the 12th of January, the deal was funded and Heather and I collected a 5k check for roughly 5 to 6 hours worth of work… I haven’t done the math but I don’t think anyone in corporate America would be willing to pay me that per hours… If you cannot guess, we are out beating the streets for our next flip. We would like to thank you for hosting flippinghomes.com, which gives us a place to post our questions and receive support. We would also like to thank you for responding personally to the questions that we have posted. 

Eric & Heather Zaal
Houston Tx

We have now rehabbed 5 homes in one year,

for a total NET income of $94,000

By: Casey Moffett-Chaney 

This is just a follow-up to let you know that we have now rehabbed 5 homes in one year, for a total NET income of $94,000. We have done this primarily by purchasing HUD homes (which can be obtained for quite a bit less than their asking price). Most of them were in need of no more than upgrading appliances, paint and flooring. The average price we paid for each home was $98,000, the average remodel amount was $4,800, and the average sale price $130,000. The average time spent on each house was 3 weeks, the average time each house took to sell was 2 weeks, the average time to find a new house and close was 2 months.

When people ask us how we got started, and I tell them we used cash from our credit cards, they shudder and exclaim, “Too much of a risk! You guys are sure courageous!” There’s a great statement in the Alcoholics Anonymous Big Book–”All men of faith have courage.” We have already paid off $42,000 of the original loan amount of $120,000 (which bought our first home and supported us the first 3 months of the endeavor). The rest of the loan amount has been transferred to lower interest cards and to an equity line account at 3.75%. We expect to have it all paid off within the next year.

I would say one thing to anyone thinking of going into this business—we had to have a passion for every aspect of it, including finding, fixing and selling. Creating good relationships with contractors, realtors, inspectors and neighbors is paramount. Give lots of gift cards, gift baskets and such to the people who help you along the way.

Hope your holidays were terrific, and that your New Year is Healthy, Happy and Prosperous.
With much gratitude,
Casey Moffett-Chaney

In just over 30 days  - I made $26,500

And didn’t spend one dime in repairs… NICE!!!

By: Gerald C. Seegars

On November 1, 2003, I got a referral for a property in a nice area near Capitol Hill in DC. After contacting seller, I arranged an appointment to see property on Nov. 5. I drove by the property prior to our appt and got a good idea of the neighborhood and comps. Met with seller and one of my contractors on the 5th. After inspecting the property with my contractor, I told the seller I would get back in contact with him shortly.

I determined that the property should sell for about $359,000 or so fixed up, estimated repairs to be $40K. The seller’s wife had mentioned $250,000 as the desired sales price, but I knew there was no way I would buy it for that price and still be able to wholesale it.

Anyway, after some negotiations with the seller, we agreed on a price of 172K which I thought was a fine price and left room for a nice wholesale spread. Signed contract on Nov.7.

I decided to wholesale the property for 199K. I distributed flyers at a local investment club and got some interest although one joker there told me to my face that I was out of my mind and challenged me to justify my numbers. I not so politely declined as I knew he wasn’t going to buy it and I know people like him just drain the joy from your life.

In any event, I marketed the property by calling some guys on my buyer’s list, newspaper advertising and so forth. Got a ton of interest but no contracts.

Then I made a mistake that I will try to avoid in the future. Another investor had called me about the property and said he was interested and I gave him the combo to get in. Lo and behold, this guy and his partner started calling guys on their buyer’s list and telling them that they had the property under contract. Next thing I know, the investor and his partner are calling me with all types of crazy and probably illegal offers like charging one of their buyers 230K for the property and have me cut them a check for 25K after the closing. I didn’t feet too comfortable with that and didn’t like the idea of having these guys in picture. I detest double flips. I want to control everything as much as possible. (Steve Cook taught me that).

The final straw came when I was at the property going over the repairs again in case I ended up purchasing it when three gentlemen just walked through the door. Long story short, major drama ensued when the guys demanded to know who I was because their guy was the owner and I had no business being there. Let’s just say, they left in a huff.

Anyway, I decided to list the property on the MLS at a slightly higher fee to cover brokerage and got three offers on it. One offer came at 214K but the buyer had too many contingencies. Imagine that, I’m wholesaling a contract and the buyer wanted to add contingency clauses to the assignment agreement. Next (reluctantly I might add).

Next offer was low but in the ballpark. It also came from a Realtor I have worked with before and know to work with serious investors. Unfortunately, we could not agree on a price.

Now its Thanksgiving and I ain’t got no contract. I know I can get a buyer if I reduce the price, but I am very confident in my numbers. (This made me rethink this buyer’s list business as I don’t have a very extensive list).

On the day after Thanksgiving, I called an investor who had called me about the property earlier but I was literally on my way to meet the 214K investor who had agreed to my terms over the phone but later tried to change the terms. This investor claimed to be a cash buyer and agreed to my terms. I told him I needed proof of funds and a deposit check for 3K that was totally non-refundable unless good title could not be produced.

We met the Monday following Thanksgiving, took care of the paper work and closed on December 10. My wholesale profit was $26,500.00. So in just over 30 days I made $26,500 and didn’t spend one dime in repairs. NICE!!!

It seems that every deal presents its own special fact pattern, challenges and problems but thanks in large part to Steve Cook’s course, and his website Fippinghomes.com, I am quite confident in my ability to wholesale properties. Obviously, I still have a quite a bit to learn and finding good deals is not easy. I also want to refine my system of doing business to make things go smoother.

I am very thankful to God for bestowing to me the knowledge and ability to successfully complete this and the other deals that I have completed and pray for His continued blessings and guidance as I go forward.

Gerald C. Seegars
Urbane Realty, LLC
INTEGRITY IS OUR TRADEMARK ™
(301) 649-6029

I can’t describe how good it feels to make over $100,000

my first year out of college…

By: Brad Pennington

So here goes, the first deal!

During the last 6 months I started seriously considering what I was going to do with the rest of my life. I was due to graduate from San Diego State University and I knew further education wasn’t my best move and didn’t want to work the long job ladder to success. During my search for direction, I took a weekend vacation at one point which, by a round-a-bout way, led me to real estate. I searched everywhere for every tid-bit of real estate investing information and stumbled upon the “creative real estate” world. I simply decided that I would give it a go and see what happened.

I decided that I wanted to learn to flip homes and make quick cash! After many months and many many hours of pestering everyone on every website that I could find and by taking some solid action it finally led me to where I wanted to go, or at least started me down the path. I must make special mention of the role Steve Cook played in this process because of his extreme availability and honesty to anyone who asks a question. Steve, thank you.

I was called by someone who had received a postcard of mine and needed an expedited solution to her problem. The post card was a fairly standard card which explained the services I provide and why those services can be especially important to certain people. In this particular case, there had been a death in the family which the owner was having a terrible time coping with, and on top of that the city was in the process of condemning the property. It was just too much for her to deal with, so I dealt with it.

Before meeting the owner, I performed my due diligence and comped the property in the range of $410k-$475k. I knew this spread was far to large but it gave me an idea of where I was and what type of offer to construct. I had driven by the property and determined that it was a complete rehab, unfortunately I didn’t have my repair numbers solid and so came up with a number that was significantly larger than the actual cost to cure.

As it turns out, price wasn’t the main focus of negotiations and I got the house for such a good price that my overly large repair estimate didn’t factor in.

The sellers main need was flexibility and I was happy to provide that. I put the house under contract for $200,000. For 2 and a half weeks I had a crew hauling personal property out of the house into a storage space that I agreed to pay for.

I ended up assigning my contract to an investor who was referred to me by another guy I know here in town. I had gone to see this gentleman to review my title and escrow documents and to get some general advice from him. He gave me the name and number of this investor who liked to buy these types of complete rehabs.

I called him up and told him about the house and he was ready to go. He wanted to do it that night, all cash as-is! I held off in order to show the house over the weekend to some other folks, but we ended up doing the deal on Tuesday. In good spirit he did attempt to negotiate my price down from $295,000, but I told him I couldn’t go lower than that number and he accepted.

I think he knew that he was getting a good deal and he didn’t want to negotiate himself out of it. I assigned my contract to this investor for $95,000 dollars and he wired in funds and we closed! Total time from the first phone call to the check in the bank was 3 weeks & 3 days. Now this investor will repair the home (for around $60,000) and resell, or keep it as a rental. Win’s all the way around.

It’s impossible to gauge the personal growth that one undergoes when doing their first deal and all I can say is that it was a very intense experience. With even this very limited experience I believe that future deals will come and be completed more easily because now I have personal proof that it can be done. I don’t know if I have any single piece of advice to give those of you who are still seeking. But one thing that did motivate me to excel was the idea that no one else in the entire world was going to live my life for me and that it was up to me to make my life what I wanted it to be.

I love the positive atmosphere of this web site and it continues to be an indispensable asset to me and my success. If you make this work it will. If you ask for help here, you will get it. If you heed the advice given, you will prosper. Very simple really.

I can’t describe how good it feels to make over $100,000 my first year out
of college! Absolutely incredible!

Here’s to your success story!

Brad Pennington