The Quick and the Deal

by Dave Miller

Ever wholesale a property in three days without leaving the office?

Last week I got a call from my Realtor. “Beaver St is back”, was his message.

Last November I placed an offer on this same property and got a signed agreement. It was a complicated short sale and the seller was not going to be able to give a clear title by the settlement date. I did have a sales agreement signed and could have forced the sale. But that would have been a costly hassle not worth the time and stress. I asked to retract the agreement and he consented.

I did take note, a few months ago, that this property was going to the foreclose auction. I was not able to attend the auction. The bank bought the property back at the auction and put it back on the market.

Monday, 4:08 pm. That’s when I get the call, only a few hours after it hit the MLS. Mmy sharp eyed Realtor spots it and forwards the information. After a brief discussion, I hang up, pull the file (from a year ago), and run the numbers.

A property like this not going to be on the market long, this I know. So I need to move fast. All my paperwork is done and I only have to review it.

When I buy a home to wholesale, I buy it with the intent to own it. If it does not work for me to own it I refuse to buy it. I won’t flip something I wouldn’t work on myself. This makes the selling easy since I can sell it honestly and sincerely, because I believe it will work.

So do not buy a home to wholesale, I buy a home to rehab with the possibility of wholesaling it.

I do not have the money to buy this with cash so I need an alternative. I find it. My self-directed IRA LLC is the solution. My IRA does not have the capital to make a full price offer, so I move fast to avoid a competing offer.

I have the edge because I know the property and already have the work done to estimate the cost of rehabbing it.

Monday, 8:20 pm.  I email the agreement with a copy of the deposit check to the Realtor. He forwards it to the bank’s Realtor. We wait. But not for long.

Tuesday, 11:39 am. “We have a deal” the email reads. I send the deposit check.

Tuesday, 3:32 pm. I send out an email to my network of buyers. In the email is a brief description of the property with two links. Link number one is to my blog with a better description and link number two is to a postlet with additional information and more pictures. I also post an ad on craigslist.

Wednesday. I receive multiple calls and emails expressing interest. We have multiple showings.

 My Realtor offered to show it for me to potential customers so I don’t need to run in each time. He does not charge me for this. I am putting him in contact with prime customers and he may (I have given him the okay) freely solicit other business from them. By doing so I do not need to use my time to show it and he may gain a client. It’s a win-win situation.

Thursday. We come to terms on a verbal agreement with a buyer. He only wants to do another walk through with his wife through and then sign the agreement. This has me a little nervous, women with their emotions can bring a deal down real fast. But I consent. I have no other choice.

Friday 10:30. Sold! It’s a done deal.

Recap of the week:

  • I bought a property.
  • I utilized my network.
  • I marketed a property
  • I sold a property
  • I have more money in my checking account
  • I never left the house

How can you replicate this method of making money?

  • Action! Get off mental duff. Make a cognitive change.
  • Action! Get off your physical duff. Like Wyatt Earp said, “Are you gonna do something, or just stand there and bleed?” Get out there and look at properties. Put offers (low offers) on properties.
  • Build relationships; Bankers, private money investors, buyers, sellers, realtors
  • Start a network; email lists, social networks, investor clubs
  • Buy a buyable home.
  • Hit your network
  • Sell the home to your buyer
  • Cash the check

If that is too many steps, then start with the first two. These are the most crucial.

Quotable Quote: Wherever you see a successful business, someone once made a courageous decision. – Peter Drucker


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2 CommentsLeave a comment

  1. […] I had settlement on 502 Beaver St. This was a wholesale that I flipped in a few days. (More on that here) […]

  2. […] dollar tomorrow. Here is a example of a property I could have made more money on but chose not to (Click Here). Get the fast buck not the last […]

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