Date of Initial Contact by Seller: October 16, 2013
Where This Lead Came From: Website – he filled out the seller information form, AND went ahead and scheduled his own appointment for me to come out and look at the house using ScheduleOnce (which I have enabled on the seller website). I immediately sent the seller my credibility kit via email and confirmed the appointment.
Here’s the screen shot of what that appointment looks like when it comes through to email:
What Was The Seller’s Situation: The seller inherited the house many years ago from his parents. He bought the interest from his siblings, and the house has been rented for 15 years to the same person. The tenant died 2 months ago, and he just found out (no, they didn’t die in the house). This seller lives in Maryland, and just wanted to sell the house quickly.
Initial Offer: October 18, 2013 – Before I went to see the house, I called the seller on the phone just to feel him out a little more. I asked him “if I paid you all cash and could close whenever you wanted what is the least you’d accept for the house?” He said “$170k. I asked him “what do you think it would appraise for if I had it appraised right now”? He answered “$230k. I confirmed that with some quick research on comps, and immediately I knew that this seller was willing to give up alot of equity. It’s time to talk to him in person.
The house is in a very nice, gated golf course community. It’s one of the more modest homes in this subdivision. but still very desirable. I knew it would be a quick sale if I could get it for the right price. Upon walking in, my first reaction was that the house was completely outdated, with original carpet ,original cabinets, original bathrooms, etc. It needs about $25k – $30k in rehab. I already can’t pay $170k for this. Time to get out my negotiating stick.
Negotiating: There wasn’t a whole lot of negotiating that went on. I made the seller 2 offers:
1. All Cash, close in 30 days for $120k. (Exit strategy – wholesale)
2. All Cash, close in 120 days. (Exit strategy – wholetail)
*The house was in good enough condition to qualify for financing, although it was outdated, and in a great location. So I could sell the house either way.
Without blinking an eye, he said “I’ll take the $120,000 – lets sign the contract”.
The contract: (Signed on October 18, 2013) I got the contract ready using my iPadMini. The seller signed. I asked him for a key to the house. He gave it to me. then off he went to catch a plane to head back to Maryland.
And the House is SOLD to an investor within 2 hours for $140,000.00. We’re closing on Nov 1, 2013.
The Nibbling Technique: Just for shits and giggles, I contacted the seller and asked him if we closed earlier than planned, would he sell the house to me for $115,000 He said yes. He signed my amendment via HelloSign. Bam! Another $5k just for asking. By the way, this Negotiating Technique is talked about in detail in Issue 2 of the Property MOB Magazine!
When this closes (Check back Nov 2, 2013) – I’ll post up the check. We’re doing a double HUD closing on this one (which will cost us a little bit). One of the fastest $23k ever made.
November 1, 2013 – The Deal Closed without a hitch in sight. It was a double HUD closing, and I walked off with a check today for $23,050.00. Bought it for $115,000 – sold it for $140,000 – had to pay for a double closing and. Here’s a copy of the check:
They’re not ALL this easy, but when they are…..it makes you wanna drink a very large bottle of wine to celebrate!! So that’s what I’m going to do tonight. (and yes, I still celebrate after 15 years of closing deals) CHEERS!
November 3, 2013 : Testimonial Came in From Seller via HelloSign. This email automatically goes out to the seller after closing using my Godfather CRM “post closing” workflow. Its a request for them to fill out a testimonial form via HelloSign. I’ll then put it on the seller website and in my credibility kit. Here’s the testimonial that came in today from this seller.