First Deal In NJ *Done and Done* Profit $25k

[GoodShowDave]

Hey everyone, just wanted to thank everyone for all the help and let you know that I got my first deal done last week.

Committed to putting out one sign a day for thirty days.
Got a bunch of calls, but one that was great.
Followed all the formulas and got a 3 family for 1/3 ARV Value.
Did all the marketing to sell it.
CONTACTED A MENTOR for HELP!
Closed for a profit.

Details:
Bought from Seller - 3 Family for $105k     After negotiating down from $250k
Sold to Buyer(Investor) - $130k "AS IS"
Profit  -  $25k
115 days from putting out the first sign.  90 days from the first conversation with the seller. about 20 hours of work. (Including doing my own 6 hour Open House)

I think the biggest part of this was COMMITING to TAKE ACTION!
After that, everything started to happen.
Do something on Mon. to get a Deal. I was lucky enough to find a Mentor who agreed to help me for a predetermined percentage of the deal, if it closed.  Nothing if it didn't.

Good Luck everyone in 2010.                    DAVE

[WeSellHomes2Fix]

Good stuff

[jmd_forest]

Great job!

I'm in SJ and am in the middle of rehabbing my latest deal. I bought it at about 40% ARV and I'm on schedule and budget for a 4 month/$25K rehab.  This is my first property in 2 years. Despite everything you hear about how its a buyer's market, I couldn't find any actual good deals in my area although I watched several properties I bid low on get bought up and sit for over a year after rehab was complete. Anyone can pay too much for a property and lose money but its something I try to avoid.

I plan to keep and rent it long term with an initial COC return of around 10% and about $100K of equity.

I guess I need to step up my marketing to locate more good deals. You prove they are out there.

jmd_forest

[louisianawholesaler]

how were u able to negotiate the seller down so much?

[GoodShowDave]

I asked him what he wanted and he said $250k. I told him that there was no way we could pay that and told him about the forclosure rate in his city, about 75% of the city was Bank Owned.  I told him that I could only pay about $85K because I could probably find a Bank Owned 3 family for that much.   Then he said that he hoped to get at least $125k for the house, but if I met him in the middle at $105k he'd take it.               That's it, just telling the truth and walking him down the road to giving it to me for what I could pay.            Good Luck down in LA.

[christopher w]

Dave,

Did you have any rehab on the property? Did you have to pay a realtor on the buyers side? Did you option the contract or did you purchase using Conventional/HM/Private Money to purchase the property and then flip it to your investor?  Congratulations on your first deal. It sounds like you picked a winner!

[GoodShowDave]

When I found someone to help me out with the deal (mentor) he had his lawyer set it up so my LLC would buy the house and sell it to the end buyer about 5 min. later right in her office.  The end buyer funded the deal and it passed right through to the seller.               That's it.