It’s not unusual to find a serious gap in posts from me, but I’ve always been faithful to report back. I’m thrilled that this time the update comes after 3 different closings in the last 5 months!
Closing #1: 3/2/2 in OKC, acquired using creative financing
This lead I got from my absentee owners marketing. The ARV was somewhere between $95 – 100K and the seller agreed to a price of $61k (what she owed on her mortgage). The place needed work, though, and had a squatting tenant, so rather than put it under contract when I wasn’t totally sure, she agreed to let me lease/option the place at a monthly rate that was just above what her monthly mortgage payment was. My exit strategy was to sell the house before I needed to make that first payment (although I was prepared to do so if needed).
I immediately negotiated with the tenant (sooo much easier said than done) and gave him cash for keys. I then marketed the property and sold it to another local investor, getting a check for about $7k. The whole process (from first phone call to closing) was about 5 weeks.
Biggest lessons learned:
-Negotiations (well, successful ones anyway) are really about relationships, respect and kindness, enforcing boundaries, being willing to walk away (without anger), and lots of listening.
-I discovered a secret strategy for finding buyers (ha! gimmicky sounding but so true)
-Motivated sellers are willing to be more flexible with you, if your ideas make sense and you have established credibility.
-You push into a whole different level of client satisfaction if your offer includes solutions to every single problem they have related to this property – not just selling it.
-Creative financing (rather than outright buying or straight wholesaling) made a deal for me when there might not have been otherwise.
Closing #2: 3/2/2 in Broken Arrow, OK, a turn-key rental property we’re keeping
Again, this lead came from absentee owners marketing I am doing in the OKC area. She wasn’t interested in selling that property but did want to sell this one. In our first exchange I couldn’t offer her high enough, but she contacted me a month later to discuss it more. Eventually, she accepted my owner finance offer and we closed this past Monday. This is our very first rental!
The highlights of this deal:
-The property already comes with long-term tenants locked into a lease.
-The neighborhood is great and we’re getting about 1% of property value for rent.
-The owner financing allows us to cash flow right away and build enough equity to refinance later and not pay more each month for the mortgage.
Closing #3: 3/1.5/2 in Del City – A straight wholesale deal
This deal also came from my absentee owners marketing. This is the Big One I’ve been waiting for. I got the property under contract for $20k and immediately flipped it for $33,500. I had my first double-closing (called a “slip” by the closing agent) and walked away with a check for $12,607! Definitely warranted another happy dance. 🙂 I can’t wait to pay off some debt and surprise my family with some special gifts!
A few more lessons learned:
-Confirmed the awesomeness of my buyer-finding strategy: it’s the second time in a row I’ve found a buyer in 7 days or less and added more than a few people to my buyer’s list.
-Realized that my buyer-finding strategy comes from something I took to heart from Steph Davis over at Flip This Wholesaler: when looking for a buyer, make sure you stand out! (I actually used that ad to sell a house in 2010 in 2 days.)
-Fell in love all over again with Dropbox for being able to quickly share over 100 photos to potential buyers.
I am so grateful and excited to be able to celebrate these closings. It’s an assurance that if your path is a good one, all you have to do is keep running, walking or crawling and you will get there. 🙂