Hello all,
Since it is now 2008 and we have many factors that now influence our Real Estate market which some of the factors have not been seen in years.
I wanted to know if there were any good success stories on deals you have put together in 2008.
Share and tell our community how you structured the deal to make it work for you!
As for me, I only have one deal in the works, so I would rather not comment until the deals end.
So who’s first?
Gosh, Wallace. It’s still January. Most deals put together in 2008 aren’t completed yet.
My only “deal” so far this year is a tenant who gave notice, still isn’t out almost 2 weeks past their “last” day, but already put the electric and gas back into my name.
Other than that things are pretty quiet.
There isn’t too much happening in my area. Everyone is still waiting to see what happens to prices. This spring should be interesting.
I have 2 deals in the works right now…both 2 family properties…One renovation then rent and the other paint and rent…No banks…About %16 ROI after beating up the rent roll with expenses…
Will let you know once we are more into 2008! lol
Closed last Wednesday on a triplex for $117,000. Appraisal was $214,000. Good way to start 2008. Have 2 other sellers each selling multi units but I can’t seem to make up my mind which deal to pursue. Hopefully close one of those by end of february.
Congrats, jbaldwin would you be so kind as to give us the steps you took to make this happen to help the new and old investors alike?
Sure, this wasn’t that complex of a deal at all though so I hope not to induce you into boardom. The property was listed for $163,000. I offered $113k I think they replied with $117k, I accepted. Once someone has come down that much on their sticker price I don’t see the need to nickel and dime them and upset a seller to the point they don’t want to do business with me. After the deal was papered I found out an appraisal had been done recently when they decided to list the property. Now why they listed it for $163,000 knowing that it had just appraised for $214,000 is beyond me, but hey. So basically I went to the bank and told them I wanted 70% of the $214k, which was right at $151k. I wanted the approx $30k (151k - 117k) to make upgrades to the property and to just put cash in my pocket. They said they would do it if I would offer a lien against a $30k CD I had in the bank. The lien is for 6 months until my upgrades are complete and then it will be released. Didn’t matter to me because this is a 9 month CD, can’t touch it anyways. I was in a hurry because another lender 4 days before closing went out of business and was not honoring their loans in the pipeline. Went to my local bank and told them I needed to close in less than 2 weeks. It was done in 10 days. I hope I have put noone to sleep with my vanilla deal. :sleep
I’ve got a success story.
My short sale with Countrywide was started late November and got accepted this month!
I marketed it to my buyer’s list and got it sold. It is now closing next week.
I put in 10 hours worth of work (more than usual for my wholesale deals, I might add), meeting BPO agent, doing paperwork, making calls, emailing, etc.
But it paid off…it’ll turn out to be about $500 an hour!
Short sales work. Wholesaling works!
Why?
Because I (you) work it!
Robert
Robert,
Wow, Congratulations.
Thanks for your motivating success story.
I love it! :banana
Not doing any buying, but thanks to tax returns sold 2 houses and 3rd has extremely interested buyer (lets see if he will close). One more house to go and I am back in the buying game.
[[[[…I hope I have put noone to sleep with my vanilla deal…]]]]]
That’s not a vanilla deal, jbaldwin. That is a bread and butter deal.
A good price for a good property that involves less work because it has all gone smoothly is my idea of a good purchase.
Will be closing on a 6 unit mixed use for 22K. Will close on one of my rehabs by month’s end. First deal I hd been pursuing a year but it paid of. The just completed appraisal was 208K, how’s that for a discount? Second deal I closed Spet 18th for $17,500 and have it contracted for 87K. Project home so I do have about 65K in it with carrying costs but I should still walk away with about 12K. Have 1 on the market and 2 more to hit the market within two weeks so my activity has been very good.
May I ask what do you mean by “Thanks to Tax Returns, Sold 2 houses”
What are the details on the 2 you sold with the market being down in some many areas of the country I mean? :huh
Market is slow in San Antonio, but not as impacted as the rest of the country. I sell on owner financing, so the tax return provides my buyers with money down.
Here how it ended up working out:
I got back a house, had to foreclose on a buyer - had to do some fix up work and re-sold it. I had to workout down payment installment plan $500/month for 10 months plus the regular PITI. This puts $900/month in my pocket based on the selling terms, but the rehab did cost me upfront cost. So will take me 5 months to recover my costs. Sold it that way because I had 3 other houses
I got back a second house on foreclose as well, sold it right away to a contractor I work with with $1k down, $2k in labor on another house, and he fixes up the house in case I get it back within six months. I make about $150/month cash flow on it
Sold a 3 year old house that needed no repairs at $4k down, no monthly cash flow but will make about $6k to $7k when they refinance. This was a bad purchase, I was testing the idea and had to get rid of it.
Currently rehabing my last house. I need to remodel the bathrooms and kitchen and change the flooring, should be on the market in a month or so. this is a home run for me that will give me enough cash flow to buy 2+ houses once it sells.
sold a house 6 months ago w/balance on down payment due when they get their tax return which they just got.
Moving forward, my buying criteria will more tighter where I want to see better discounts.
Well lets see, so far I have three deals (all rehabs) right now. I purchased one in Oct. 07, one in Nov. 07 and picked one up sub2 in Nov. 07.
The first one I bought for $54,500, put 24k into it and it’s listed right now (two weeks so far) for $152,500. I believe I’m getting an offer tomorrow, if all goes well.
The second one I bought for $61,900 and I’m currently rehabbing it right now and I ALREADY have it under contract and sold for 140k. I have put about 15k in it so far, I will be finished next week.
The third one I picked up sub2, the payoff is 47k, I have to give the seller 5k when I close with my buyer. Carpeting is going in tomorrow and I’ll list it for around 85-87k. I have only put about 5k in this one.
This year is going to rock for me, I’m busy as busy can get. I love this business.
There’s my success story so FAR for 2008. :biggrin
This may not be what you’re expecting, but I have recently been working on my taxes. This is the first year that I will be filing from a business perspective. The current estimation is that I will be paying $0 in taxes and getting a refund check somewhere around $10,000. Not bad for about 2 months of reading the irs.gov website. People always complain about having to pay tax accountants large sums for doing their taxes, but from what I’ve been thru recently, I can say that they earn their pay.
Unfortunately, my real-estate investing has dropped to nil, so I’ll have to ramp it back up again sometime around late March.
Dean
You now need to figure out how not to overpay $10K in taxes…that’s over $800 a month that you should have working for you instead of making a tax free loan to “Uncle Sugar” to dole out on useless programs…
Keith
I must admit, I too lend uncle sam, but I sometimes feel much better lending him rather than him coming asking for money I may not have. Managing the financial aspect of investing is still work in progress for me.
The first deal that I picked up in 2008 was a home for $12,000 and I put around $2,000 in then sold for $30,000. Not a bad way to start the year for about 3 hours of work, in a really, really bad market.
Well, your “Bush Bucks” (or “Pelosi Pennies” if you’re of the Demo persuasion) should be on the way this summer - that should fix it all!
Keith