Deal Case Study #1 ($11,000 Assignment Fee)
I wanted to start off a new case study series where I walk you through most of my deals. I do wholesale transactions, fix and flips, creative financing and more!
This will hopefully encourage all of those that haven’t done a deal yet or those who are still struggling to find consistency.
A little back story…
This was a deal that my partner and I were suppose to make around $16,000 on, but we gave $2,000 back to the seller (to get the tenants out in time for closing) and around $3,000 back to the buyer as a discount since he has bought multiple properties from us.
When it was all said and done, we made $11,000 ($5,500 each since it was a JV deal).
My JV partner was also in Jamils Astro flipping mentorship #squadup **
This deal came from an SMS campaign when I first started them back in February of this year (2020). It was also done 100% virtual from my home office in Austin, Texas.
Reached out to the seller about another property initially but he had already sold it. But after talking about that one, he had mentioned that he had an additional one he was going to sell next.
It took 4 months of follow up to get an appointment set and to get the purchase agreement signed by him and his ex wife.
The property was still tenant occupied so I had to negotiate to have the property vacant at closing (based on the buyers requirements).
We had issues with his wife and her providing a photo ID due to her just getting her license revoked because of a DWI.
After we cleared up all the above issues, we set a closing date for August 19th, 2020.
The day before closing, the seller, pissed off his ex wife because he was dating a new girl and bringing her around his kids within a short period of time of knowing her.
Due to the above fact, the ex-wife wanted half of the $82,000 the seller was supposed to receive in full since he was getting the house in the divorce (which he also had papers showing).
The deal almost didn’t get done because of this mishap the day before closing but the seller was able to talk her down to $4,000 at closing (only after I had to talk him out of backing out of the deal).
Things I learned from this deal:
Don’t count your money until Title clears, all issues are resolved and Title issues your check/wire. Remember, a deal isn’t a deal until you get paid!!
Always make sure you’re communicating frequently with your buyer and seller. Never take that communication for granted. Rapport and customer service starts from that first phone call but doesn’t end until you get paid.
Continue to stack your deals and no matter how many deals you have in you pipeline, keep grinding as if your pipeline was empty!
Attached you will see my HUD statement (yes I really do deals) from this deal and the raving review from the seller on his experience throughout the whole process.
He may actually have another property to sell me next due to this experience.
Happy to answer any questions I left out in the comments below!
PS: The Title company messed up at closing and sent him the property tax payoff that they were suppose to send to the county. The seller was so happy with the whole transaction, that he volunteered to deliver it for us instead of the Title company voiding the check