I thought you guys would like to read some real life examples of deals that I’m working on and/or closed. So I’ve created a category called “REAL DEALS” and I’m going to put it out there for MOB exploitation. Hopefully you can read these examples of real deals and find some motivation to get some of your own deals done, or to come up with a creative solution for your sellers that you may not have otherwise thought of. I’ll do all of the updating on each individual post, so you’ll need to come back to the specific deal pages to get updates. Not all of these will have a happy ending……. since I’m updating these in real time, I don’t even know the outcome of them until it happens.
Where This Lead Came From:
This seller came from a ZIP CODE Mailing List. He received a postcard in the mail and then went to the website and filled out the Seller Lead Information sheet. He lives in another city – about an hour and a half from the property.
What was the Seller’s Situation:
The seller has rented this property for $1025, and he’s just tired of renting it. He also owns 2 other houses. He said he just painted the inside of the house in March 2013, but it still needs a little bit of cosmetic work. The house is currently vacant.It’s a 6 bedroom 3 bath house. (has a mother in law suite). I checked the MLS and the property listing expired on August 4, 2013 after being listed for 4 months at $150,000.00
Initial Offer: August 12, 2013 at 2:35 PM EST
I didn’t visit the property in person. Instead, I looked on Google Maps to see what the house looked like. Also, I was able to see some photos of the house on Zillow where the property was previously listed on the MLS. I think this would be a pretty easy sale using one of many strategies. The ARV is $169,000. I called him on the phone and reviewed 3 different offers with him. Then he asked me to send it to him in an email so he could review it with his wife. Here is the email I sent to him.
Hi! It was nice talking to you. Please use the link below to find attached information about our company Real Results Unlimited, Inc. There are also some nice letters from sellers who we’ve helped. Please review this information to understand our company. Click to View Credibility Kit
Per our discussion, here are the offers that I’d like to present:
OFFER #1 — $89,000 Cash 30 Day closing. Buyer pays all closing costs
OFFER #2 — $110,000 Cash – 120 Day closing Buyer pays all closing costs
OFFER $3 — $900 Per Month with 3 year Option at $130,000 – Seller and Buyer Split Closing Costs at the time of closing.
Please review these with your wife, and let me know as soon as you can which one works the best for you. Thank you so much.
Thank You ,
Tracy Caywood – Acquisition Manager
The seller said that he would talk to his wife and get back with me ASAP. So I’m now waiting.
1st Follow Up: August 13, 2013 at 11:30 am – I called the seller to follow up on the offer. Had to leave him a message.
2nd Follow Up: August 14, 2013 10:13 am – I called the seller and talked to him. I asked him if he had talked to his wife about the offers that I made. He said yes, he did. He has “another company” that is coming out to look at the house on August 20, 2013. So he wanted to see what they had to say first. I told him that I would follow up with him on August 20. Looks like I have competition. Doesn’t scare me.
2nd Follow Up: October 7, 2013 (Im a little late on this one). I called to follow up. They were happy to hear from me. They lost my phone number and didnt know how to find me. The husband got on the phone and said that they preferred my second offer (the one for $110,000 NET to the seller / close in 120 days). Ok COOL!
This has suddenly turned into a wholetail deal. I explained to the seller what they could expect from me, and that I would need a key to show the property to people. He told me to email him the contract for review, and that they would be in town October 16 for some doctor appointments (they live about 1.5 hr away). he said we would meet in person then to sign the contract. I agreed.
My VA prepared the contract and emailed it to the sellers on October 7, 2013. He called me to confirm that he got it, and confirmed our appointment for the 16th.
Contract Signing Appointment: I met the sellers at the house, as this was the first time I’ve ever seen the property. I was pleasantly surprised. The only repairs that it really needs is carpet. It’s a 2600 Square foot 4 BR house with a 2 BR mother in-law suite/garage apartment. They asked me a few questions about how the process works, and they signed my contract for $110,000 NET. Now It’s time for me to get busy.
That’s my seller signing the contract ————————————————->
Marketing Plan: October 17, 2013 – we begin the marketing plan for this property. I’ve determined that the ARV is about $180k, but for a really quick sale, I’m pricing his at $144,900. I’m turning this listing over to our Realtor (he gets it), and he’s going to stick it int he MLS. We’ll also do our own efforts to get the property sold. I’ll make a trip downtown on Monday, Oct 21 to record my affidavit and memorandum.
Affidavit and Memorandum: Recorded on October 23, 2013
Offer to Purchase from New Buyer: October 24, 2013 Our Realtor presented us with an offer on the house. We have the house listed at $144,900. The VA buyers offered $138,000. We countered at $141,000. We’re paying $3k of the buyers closing costs. We all accepted. So what I have to do now is get the seller to sign this NEW contract. This is a wholetail deal, so the contract will be between my seller and the new buyer.
Sellers Signed New Contract: October 28, 2013 After sweating all weekend, I received the signed contract back from the sellers this morning. I also learned something over the weekend when I got a call from Alex Joungblood (THANKS, ALEX!) VA loans don’t have any title seasoning issues, so I didn’t HAVE to get the signatures from the seller on this contract. I could’ve done a double closing, using transactional funding, and the sellers would’ve never seen the contract with the buyer. I’m relatively new to the wholetail deals, so I’m pretty excited to learn this! I didn’t have any problems from the seller, but I could see where (even though I explained everything to them) they could have a problem with me making that much money and refuse to sign.
So in the future, if the buyer is conventional or VA funding, I’ll do a double closing. If they’re FHA, well, then I think I’ll have to take the same approach as I did on this deal.
November 1, 2013 : Buyers asked for a Seller’s Disclosure to be completed. I emailed it to the sellers. They’ll have it back to me on Saturday, Nov 2. Buyers want to do inspection before they go out of town on Nov 8.
November 10, 2013: The buyers backed out of the deal. They said that the house needed $40,000 in rehab, and that was more than they were willing to put into the property. The buyer is active military, and may only be here for 3 years. No big deal. It happens. We put the house back into ACTIVE status, and will make a price reduction soon.
February 21, 2014 – Yes, my friends. It has been 3 months since I made an update on this real deal. But now I have to , since this deal closed yesterday. I’ll fill you in on what’s been going on. After the home inspection that the buyers had done, the sellers agreed to accept $80,000 NET for the house. I thought that was fair, considering the work that the house needed.
So I continued to market this property. I had SO MANY people claiming that they wanted to make an offer, but noone ever came through. Our contract with the seller EXPIRED on February 17, 2014, and I had written it off as a loss. However, a buyer contacted Dan ON FEB 17th!! and made an offer of $70,000.00. He’d seen it on our website, and was interested in buying another one of our properties. I told Dan to counter at $85,000.00 – with the buyer paying all of the closing costs. The buyer agreed, and he met Dan at Starbucks to sign the contract and give the $1000 Non Refundable Binder Deposit. He closed 2 days later.
MORAL OF THE REAL DEAL: Don’t give up on your deal OR on your seller. Work that shit till the bitter end. You never know when the buyer is going to come along and be ready to pull the trigger. Theres a buyer for every property, at the right price, and at the right time.