Buying another one / $5K
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Buying another one / $5K (by Roy [AL]) Jun 5, 2018 3:16 AM
       Buying another one / $5K (by GKARL [PA]) Jun 5, 2018 3:20 AM
       Buying another one / $5K (by gevans [SC]) Jun 5, 2018 3:25 AM
       Buying another one / $5K (by LeePookie [IN]) Jun 5, 2018 3:26 AM
       Buying another one / $5K (by J [IN]) Jun 5, 2018 3:38 AM
       Buying another one / $5K (by Roy [AL]) Jun 5, 2018 4:04 AM
       Buying another one / $5K (by NE [PA]) Jun 5, 2018 4:13 AM
       Buying another one / $5K (by Mickie [OH]) Jun 5, 2018 4:42 AM
       Buying another one / $5K (by NE [PA]) Jun 5, 2018 4:45 AM
       Buying another one / $5K (by Roy [AL]) Jun 5, 2018 5:00 AM
       Buying another one / $5K (by myob [GA]) Jun 5, 2018 5:10 AM
       Buying another one / $5K (by NE [PA]) Jun 5, 2018 5:15 AM
       Buying another one / $5K (by myob [GA]) Jun 5, 2018 5:32 AM
       Buying another one / $5K (by RB [MI]) Jun 5, 2018 5:43 AM
       Buying another one / $5K (by Andrew, Canada [ON]) Jun 5, 2018 6:08 AM
       Buying another one / $5K (by Deanna [TX]) Jun 5, 2018 6:13 AM
       Buying another one / $5K (by S i d [MO]) Jun 5, 2018 6:14 AM
       Buying another one / $5K (by Dave [MO]) Jun 5, 2018 6:17 AM
       Buying another one / $5K (by Roy [AL]) Jun 5, 2018 6:45 AM
       Buying another one / $5K (by NE [PA]) Jun 5, 2018 6:52 AM
       Buying another one / $5K (by Jeffrey [VA]) Jun 5, 2018 7:07 AM
       Buying another one / $5K (by JB [OR]) Jun 5, 2018 8:28 AM
       Buying another one / $5K (by Roy [AL]) Jun 5, 2018 9:04 AM
       Buying another one / $5K (by Vee [OH]) Jun 5, 2018 10:36 AM
       Buying another one / $5K (by cjo'h [CT]) Jun 5, 2018 11:53 AM
       Buying another one / $5K (by DJ [VA]) Jun 5, 2018 2:29 PM
       Buying another one / $5K (by Roy [AL]) Jun 5, 2018 2:33 PM
       Buying another one / $5K (by Many Names [TX]) Jun 5, 2018 2:51 PM
       Buying another one / $5K (by Sandy [O]) Jun 5, 2018 4:05 PM
       Buying another one / $5K (by Busy [WI]) Jun 5, 2018 6:00 PM
       Buying another one / $5K (by Livethedream [AZ]) Jun 5, 2018 11:48 PM
       Buying another one / $5K (by elliot [RI]) Jun 6, 2018 2:06 AM
       Buying another one / $5K (by Roy [AL]) Jun 6, 2018 3:22 AM
       Buying another one / $5K (by Vee [OH]) Jun 6, 2018 5:45 AM
       Buying another one / $5K (by PF 11 [KY]) Jun 6, 2018 11:26 PM
       Buying another one / $5K (by Roy [AL]) Jun 7, 2018 2:42 AM

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Buying another one / $5K (by Roy [AL]) Posted on: Jun 5, 2018 3:16 AM
Message:

Last week, via my Handyman Ad, I got a call from a burned-out landlord. This is a classic example of where a newbie investor got into this business 5 years ago and has had nothing but trouble ever since. The school of hard knocks was his only education. His last tenants trashed the house, stole his kitchen appliances and even unbolted the toilet and took it too.

After seeing the inside of this house, I told the investor "I really don't want this house, however, if you really want me to take it off your hands and relieve you of this burden, this is my low-ball offer to do that,...$3,500.00. After some hesitation, he accepted my offer but with one contingency,...I pay the RE commission for his agent. He had this property listed on the MLS for 5 months and got no offers. I agreed to pay his agent's commission of $1,500.00 which brings my out of pocket total to $5K.

I estimate rehab to be around $12K. House should rent for $550.00. Closing will be next week sometime.

--68.63.xxx.xx




Buying another one / $5K (by GKARL [PA]) Posted on: Jun 5, 2018 3:20 AM
Message:

I need to try this. There's no downside here. --172.58.xxx.xxx




Buying another one / $5K (by gevans [SC]) Posted on: Jun 5, 2018 3:25 AM
Message:

Sweet deal! --98.122.x.xx




Buying another one / $5K (by LeePookie [IN]) Posted on: Jun 5, 2018 3:26 AM
Message:

Thatta a boy Roy! --216.49.xxx.xxx




Buying another one / $5K (by J [IN]) Posted on: Jun 5, 2018 3:38 AM
Message:

Great, the ad works again! --71.32.xxx.xx




Buying another one / $5K (by Roy [AL]) Posted on: Jun 5, 2018 4:04 AM
Message:

Other investors besides me would have objected to paying the RE agents commission,...saying "she is your agent, you signed her contract, and you should pay her out of your $3,500." I felt this investor had been 'beaten-down' enough at $3,500,...so I agreed to pay the agent's commission. I will also pay closing cost too but with all-cash deals, closing cost are usually less than $500.00 assuming my attorney is used.

When I get this house rehabbed, (end of July), I am considering doing a "Lease/ w Option to Purchase" similar to what John Schaub does. --68.63.xxx.xx




Buying another one / $5K (by NE [PA]) Posted on: Jun 5, 2018 4:13 AM
Message:

He took your first offer? You could've gotten it cheaper.

Rookie! Haha just kidding.

I like to make offers so low, that I can barely muster the courage, to get the words out of my mouth due to embarrassment. --74.47.xxx.xx




Buying another one / $5K (by Mickie [OH]) Posted on: Jun 5, 2018 4:42 AM
Message:

I love hearing about Roy deals. I've got a deal recently for 18K. Total rehab will be about 1500 to 2000. Paint and bathroom floor. It will rent out at 600.00 when I'm done. If I can turn it fast enough I'll put a handyman Ad out and see what kind of deal I can find. --174.232.xx.xx




Buying another one / $5K (by NE [PA]) Posted on: Jun 5, 2018 4:45 AM
Message:

Roy, what was it listed for with the realtor? --74.47.xxx.xx




Buying another one / $5K (by Roy [AL]) Posted on: Jun 5, 2018 5:00 AM
Message:

NE,

Last February, when it was first listed on the MLS, it was $22K. It was $13K yesterday when I made my deal. I did not know this house was even listed until the seller told me about 'his agent'.

--68.63.xxx.xx




Buying another one / $5K (by myob [GA]) Posted on: Jun 5, 2018 5:10 AM
Message:

NE how low can you go. How big a beat down do you give? One change I would make is giving the seller 5K and let him hand out the 1500.00 to the do nothing realtor. Realtor shouldn't be rewarded by an investor for bad service-- it sticks in my throat. --99.103.xxx.xxx




Buying another one / $5K (by NE [PA]) Posted on: Jun 5, 2018 5:15 AM
Message:

Myob, my personal challenge now after talking to a fellow LL on here is to get someone to pay me to take the property.

The rule of thumb is though, if they accept your first offer, it was too high. --74.47.xxx.xx




Buying another one / $5K (by myob [GA]) Posted on: Jun 5, 2018 5:32 AM
Message:

NE I'll bet some here have done it.

I don't know if this qualifies but I did soemthing close. 2 guys I knew thought investing was a piece of cake-- all that money to be made. I sold 6 units (sfh's) with owner financing. 5% down. I'll try to make this short) after a year of upgrading and rehabing they weren't making any money and one of the guys came to my office CRYING how bad it was and broke they were. So with 6 recent rehab homes I took them back with deed in lieu of. All good up to here. Then I find out that one house they gave back (with extensive damage had a payout of 30K of insurance claim to them. When I questioned them-- I found out that 30K check also had the mortage lenders name on it. Low and behold that was me. GEE i told the DA-- I never signed that check-- how did my signature get there? They had brought the check to their buddies bank to cash--- he looked the other way until the DA and cops started checking. Guess who got 30K?

Lesson -- don't forge checks!!!!!! --99.103.xxx.xxx




Buying another one / $5K (by RB [MI]) Posted on: Jun 5, 2018 5:43 AM
Message:

Check the Gas Valve. --47.35.xx.xx




Buying another one / $5K (by Andrew, Canada [ON]) Posted on: Jun 5, 2018 6:08 AM
Message:

In toronto you be very very lucky to even buy 3 foot by 8 foot storage locker for that price. Congratulations. --65.94.xxx.xx




Buying another one / $5K (by Deanna [TX]) Posted on: Jun 5, 2018 6:13 AM
Message:

Happy for you! :)

Interesting that the RE agent had "had the property for five months" and had "never got an offer" but still earned a $1500 commission on a $3500 sale he had nothing to do with.

I can understand getting a commission if the seller ends up privately selling it during the contract period, but if the guy wasn't happy with his agent, it would have been better if he had terminated with the agent before shopping it around privately. Not that it makes a difference to what comes out of his pocket, of course... --96.46.xxx.xx




Buying another one / $5K (by S i d [MO]) Posted on: Jun 5, 2018 6:14 AM
Message:

The empire continues growing! Way to go, Roy! --173.19.x.xxx




Buying another one / $5K (by Dave [MO]) Posted on: Jun 5, 2018 6:17 AM
Message:

Way to go Roy! --159.118.xxx.xx




Buying another one / $5K (by Roy [AL]) Posted on: Jun 5, 2018 6:45 AM
Message:

NE,

First of all, I do have scruples in my business dealings and I try to be as ethical as I can. I do believe in making low-ball offers but I do not believe it is wise to try to beat a seller down to a pulp where they have no more dignity or pride left. There is a 'delicate balance' here between making a low-ball offer and an offer that is so low that it irritates the seller to the point where he tells you to F-off.

The most I would have paid for this house was $7K. I cut that figure in half and low-balled at $3,500. I was expecting a counter-offer. That did not happen. He accepted my first offer as long as I paid his agent's commission. I agreed. All his agent has to do here is fill out the paperwork and submit it to my attorney.

--68.63.xxx.xx




Buying another one / $5K (by NE [PA]) Posted on: Jun 5, 2018 6:52 AM
Message:

I would've gotten my own agreement signed right there. Some sort for sure.

Are you holding these properties in your name or an LLC? The reason I ask is because I was wondering how you explain needing the LLC when you are using the retired old handyman approach with seller. --74.47.xxx.xx




Buying another one / $5K (by Jeffrey [VA]) Posted on: Jun 5, 2018 7:07 AM
Message:

Proud of how you operate Roy. I only have a few friends in Alabama, but I'm glad you are one of them. Congrats on your deal. Tall glass of Sweet Tea will be in your honor today:) --100.4.xx.xxx




Buying another one / $5K (by JB [OR]) Posted on: Jun 5, 2018 8:28 AM
Message:

To NE and Roy, I'm not sure how this isn't considered a counter-offer from the seller. You offered $3500. The seller basically said, "$5000 and sold."

Sounds like a counter-offer to me. --50.45.xxx.xxx




Buying another one / $5K (by Roy [AL]) Posted on: Jun 5, 2018 9:04 AM
Message:

Jeffrey,

Next time you come to AL, we will have a glass of Sweet Tea at the Waffle House. I did receive the 3 John Schaub CD's. Will view them soon and start planning on doing my 1st Lease Option deal.

JB (OR) - I think the Settlement Papers should read that the selling price of this house is $3,500.00. Agent commission and all other misc. costs are on top of that. In other words, my 'cost basis' should be $3,500 instead of $5K.

That is the way I see it.

NE - I do not understand your LLC question. Can you re-phrase it? I do have an LLC but it has nothing to do with my Advertising.

--68.63.xxx.xx




Buying another one / $5K (by Vee [OH]) Posted on: Jun 5, 2018 10:36 AM
Message:

Great job Roy, I hope the deed is clear and you get this fixed up nearly on schedule - we all know how complex that can go, but it seldom stops any of the -dream team-. --76.188.xxx.xx




Buying another one / $5K (by cjo'h [CT]) Posted on: Jun 5, 2018 11:53 AM
Message:

Roy,you sure you haven't taken a trip to Blarney in Co Tipperary and kissed that Stone up on top of that there Castle?......................charlie...................................................... --174.199.xx.xx




Buying another one / $5K (by DJ [VA]) Posted on: Jun 5, 2018 2:29 PM
Message:

LOL!!! They took the toilet ?! Do you happen to have one on hand? ; )

Congrats on finding & closing a great deal. --68.10.xxx.xxx




Buying another one / $5K (by Roy [AL]) Posted on: Jun 5, 2018 2:33 PM
Message:

JB (OR)

Your are correct in your reasoning about the 'counter-offer'. Just got off the phone with my closing attorney and he confirmed what you said. Cost of this house is actually $5K because the agent works for the seller and not me. I will be bringing a cashiers check to the closing table for approx. $5,500.00 on June 14th. Then,...the real work begins. I have called my plumber, electrician, handyman and given them a 'heads-up'. --68.63.xxx.xx




Buying another one / $5K (by Many Names [TX]) Posted on: Jun 5, 2018 2:51 PM
Message:

Wow Roy. You are killing it in your town! Always like to hear of your bargains. Now knock this one out with no permits so the tax man doesn’t know about all the upgrades you are about to do. LOL --75.141.xxx.xxx




Buying another one / $5K (by Sandy [O]) Posted on: Jun 5, 2018 4:05 PM
Message:

Wow, that is awesome!

Congratulations, Roy. --107.2.xxx.xx




Buying another one / $5K (by Busy [WI]) Posted on: Jun 5, 2018 6:00 PM
Message:

Awesome! Way to go. I like the don't beat em down too bad policy. Makes for good sleep at night. --172.58.xxx.xx




Buying another one / $5K (by Livethedream [AZ]) Posted on: Jun 5, 2018 11:48 PM
Message:

I'm selling a place - I took my $6 LED bug lights and left them 40 watt incadesents.

I left the toilets though. :) --47.216.xx.xxx




Buying another one / $5K (by elliot [RI]) Posted on: Jun 6, 2018 2:06 AM
Message:

Congratulations, Roy.. It is fun to read those fellow LLs sweet deal stories.. more pls!

--71.232.xxx.xxx




Buying another one / $5K (by Roy [AL]) Posted on: Jun 6, 2018 3:22 AM
Message:

The closing on this house is June 14th. Between now and then, I will be making lists of what needs to be done to get this house rehabbed. Today I will take some photos of the house and try to post them here later on.

Next week, when the official rehab begins, I will try to make a separate post and gives updates on what is going on.

With all rehabs, one of the biggest decisions I have to make is how to heat and cool the house. This house does have a Gas Meter which means it has Natural Gas for heating. Again, the big decision is whether to install Central Heat/Air or just 'go cheap' with window A/C units and ventless gas wall heaters.

--68.63.xxx.xx




Buying another one / $5K (by Vee [OH]) Posted on: Jun 6, 2018 5:45 AM
Message:

Now in late August you can make a low offer on the house next door - very simple sir I spent all my money fixing up next door - that is my best offer.... --76.188.xxx.xx




Buying another one / $5K (by PF 11 [KY]) Posted on: Jun 6, 2018 11:26 PM
Message:

$5,000? Buy it on a credit card. Always wanted to do that. --108.240.xx.xx




Buying another one / $5K (by Roy [AL]) Posted on: Jun 7, 2018 2:42 AM
Message:

PF 11

I will be using a Business Line of Credit which is basically a CC with a lower interest rate. --68.63.xxx.xx



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