It took us just twenty-one days to take this seller from the lead stage to the closing table. How would you like to have a $20,813 wire hit your account? I’m going to show you not only HOW but WHERE to find these in your market. Let’s go foks!
This property was a C-Class SFR owned free and clear by an absentee owner. Her mother had passed away leaving her the property in REALLY outdated shape. She wasn’t sure what the property was worth however a realtor had told her she couldn’t really list it in its current condition.
Read that last line again. a REALTOR told her she couldn’t sell it as-is on the MLS. 🤦♂️
The home was built back in 1915, it had 3 bedrooms, 1 bath, and was right at 1,600 Sqft. The seller wasn’t kidding when she said the property wasn’t really updated. The last sale date on this was the 1970’s and I would put good money on the fact that it was the last time it was renovated. It featured lovely green carpet, wood paneling, dark wood trim, and wallpaper galore.
Can we take a second to appreciate the fact that green carpet is no longer a thing?
All in all, we estimated that the property needed roughly $35,000 to make it bougie.
How We Found It
The property came from our Carrot site via organic SEO and was Instant Called by Call Porter who booked an appointment on the initial call and converted the lead to an appointment for my acquisitions manager. SEO is definitely a long-term strategy but it’s been worth every penny I spend on it. Our Seo gets us 1-2 deals a month on average.
Sorry fellas, my SEO guy only works on my stuff. He is not for hire. 🤑
So how can you find deals like this in your market? Let’s take a look at the seller. The property was absentee-owned by an individual and they had 100% equity. This deal could have EASILY been found with a direct mail campaign to absentee owners with equity.
Here are some demographics on the zip code so you can hunt for a similar farm area in your market!
*note: I would ignore the price point as this will not translate well to higher-priced markets. I would look at things like income, education, crime, and price relative to the average.
Competition on the deal
After our analysis of the property, we ended up with a max allowable offer of 53k. We made an initial offer of $50,000 and stuck with it.
The seller told us that she had another investor coming out and wanted to get his offer before deciding. Typically when we have competition we like to be first and lock it up… or last.
We asked her if there was a $ amount she would sign now for and she insisted on waiting. We built value in the fact that we own a few rentals in the same zip code, were paying cash, and could close fast.
There were also two siblings she had to sell on taking our offer who were also heirs.
I would also like to celebrate the fact that wood toilet seats are no longer a thing. 🤢
I’m not sure what happened with the other offer but the seller ended up deciding to sell the property to us.
Finding the buyer
We emailed the deal out to realtors who’d done deals in the zip code using my auto emailer software. We had dozens of folks interested and fifteen plus requested a showing. We took a cash offer of 75k – a 3% BAC for a net to us of $20,000+. Exporting agents on sold deals out of the MLS is my FAVORITE way to find buyers.
My last year as a W2 employee I made roughly this same amount pre-tax. Real Estate investing is life-changing. We pay our acquisitions manager a sliding fee of 8-12% based on the gross profit and our dispositions manager 4-6%. Our REAL take home NET profit on this deal was $16, 150.14.