Virtual Wholesaling student Tony Zamberlin was kind of enough to write up a quick case study on a recent deal of his …

He’s a successful wholesaler at  http://nationwiderehabdeals.com/

I love these case studies as it gives you a chance to discover what it really takes to put a deal together and get it to closing.

Student spends $600 in marketing via Virtual Wholesaling and makes $22,000

My partner,  Blake Copeland, and I spent 600 bucks in marketing using the Cris Chico absentee seller postcard system back in March of this year and ended up getting a deal that on which we grossed 22k! It didn’t need much work, so instead of wholesaling the property we decided to bring on my local partner to fund the deal and the rehab.

The seller called and was very upset and just wanted out.. His dad had passed away in the house a while back and the seller couldn’t afford the taxes and insurance any longer and didn’t wanna be a landlord due to ex-wife issues and he didn’t wanna show income from the house. (Typical stuff with a good A lead).

The tax value on the house is 113k and he said he could take 60k, but could probably do a lot better since we are investors and have to make a living too.. Went to house and talked it over with him and we settled on 42k

We closed on the house, did minor rehab (hvac unit, gutters, front and back porch). 3 months later we listed for 99k and got multiple showings the 1st day.. We ran into a problem with the 1st buyer that wanted the house because her financing fell through, but then took a backup offer and ended up closing on it. My partner and I split the deal so my half of the deal, once sold and after closing fees from the conventional sale, was $8,367.10

We have also been able to hire a great VA to work with us because of Cris and Alex’s VA course.

I would highly recommend any of Cris’s courses or products..

Cris – you are the man and I look foward to meeting you one day soon!

Post your comments below!!

I asked one of my students, Chris Brindamour, to share the results of a recent deal.

He was kind of enough to write up a little case study of the entire transaction including lessons learned:

$45,000 CASE STUDY

Question: can one lead be worth $45K?

I sent out a batch of Cris Chico postcards to absentee owners in my local market.

I downloaded the first list wrong, and this seller did not call my 800# until the 3rd round of mailings (3rd time’s a charm).

I spent about $1,000 in postcard marketing.

This seller left me a message saying the property was not for sale but he just inherited a property out of town that he was selling (timing is everything).

So I called the seller to get some information on the property.  It turned out it was a 3 family property with two tenants in Philadelphia, and there was a $140k mortgage.

He didn’t know a lot about the property, but he did tell me that he was talking to someone else who was also interested in the property. I told him I would do some research and get back to him.

I tried to do some research using some of the free sites, but for some reason there was no data on this property.  So I started thinking that I needed to partner with someone who knew that area and could help me get some comps.  I ended up contacting Cris Chico to see if he has a student in the area who might want to partner with me.

I ended up contacting another student and e-mail them the little information that I had, they called me immediately and told me that this was a very desirable area in Philly and was going to take a quick ride by the property and see what he could see.  Again, he called me right away and said that this was a great property and we had to lock it up as soon as possible.

We contacted the seller and were told that that he was going to be in town the next week and we could get a look at the property along with the other interested party.

We then started pulling comps, we had a hard time finding a similar property in the area.

Working together we estimate that the after repair value is $435,000 and there is approximately $50k in repairs.  We decided we needed to move quick and we prepared an offer that I would present to the buyer the next day, before anyone had a chance to see the property.  This would let the seller know we were serious and hopefully give us an edge in the deal.

We decided to present and offer for $150K, unfortunately they did not accept so I asked them what they had in mind and they said not less the $170K.  So I called my partner to give him the news and we agree to make another offer when he sees the property.  My partner was the first to see the property and the inside was nicer than what we had anticipated.  We agree to up the offer to $170K, but told the seller we would like the opportunity to adjust our offer if it was not acceptable.

Now the fun begins. My partner [Cris Chico's other student whom is helping him on the deal] called me and said he was going to wait around the corner to see what happens with the other interested buyer [there was another buyer that contacted the seller about the deal and we were in competition with them].

He is on the phone with me giving me the play by play, a car pulls up and 3 people get out and go into the property.  We exchanged several phone calls, my partner speaks with the owner and he is not sure what to do, this other buyer wants to pay cash on the spot.  We go back and forth a few times and finally end up at $205K, which the seller accepted.  So our original offer of $150k went up by $55k to $205k.

Now we have work to do, we first decide to list the property at $249k.

My partner immediately blasts the deal out to his buyers list and I send out to a few contacts that I had.

In addition we posted a few ads on Craigslist, Postlets, & V-Flyer.

A week goes by and there are not bites, what to do now.

We decide to resend it out and post it to other sites.  We again post it on Craigslist, Postlets, V-Flyer, in addition I blasted it out using ping.fm which sent it to multiple sites as well as posting in on several yahoo groups and Google groups.

All of a sudden the calls start coming in.

We had several parties interested and by the end of the week we have 3 offers.  We have a low offer with a quick close, a solid offer with a $5k deposit and a 3rd offer with an escalation clause, a $1k deposit and a 6 page agreement.

We decide to go with the 2nd offer for $250K, since it included a strong deposit and they were willing to sign our agreement, however they wanted 30 days to close (keep in mind it was now 2 weeks since our offer was accepted), we were quickly approaching our deadline of 45 days to close.  In addition, this buyer was using a realtor acting as a buyer’s  agent  and we had a referral fee that we would owe the realtor. Part of the agreement was that the buyer needed to provide “proof of funds” which the buyer did immediately.  We’re excited; we are looking at splitting a $45K fee!!!!

The fun begins again, the buyer asks for access for an appraiser.  Appraiser, why does he need an appraiser??? This is a cash deal “as-is”.  We find out that the buyer is pursuing a mortgage for the property.

My partner and the buyer get into a little argument and he calls me up upset saying that he was not speaking the buyer and that I would have to talk to him.

We agree to draft a letter stating that the contract was in default since the buyer was pursuing a mortgage and to remedy the situation we wanted the entire purchase price escrowed and the closing moved up.

I get a hold of the buyer and we agree that he would pursue the mortgage for a few more days and if that didn’t pan out he would close with his cash.  The buyer also states that he will be responding to our letter.

In the mean time we had contacted a back-up buyer in case this deal blew up.  Days go by and no word, finally we hear back that the buyer will be closing with cash and no mortgage will be pursued.  In the mean time he drafts up a “escrow agreement “for us to sign.  The title work was already completed, so we just needed to finalize the documents.

Documents are overnighted to the seller and the closing is set up for the end of the week.

Everything went through fine, and after fees and transfer taxes my share of the fee is $19,750!!! Not bad for my first Cris Chico deal!!!

Lessons learned:

1. If you come across a property outside of your normal area, partner with another investor.
2. If you come across a great deal, get it under contract quick.
3. If you have a great deal, you will find a buyer even if they are not on your buyers list.

Chris Brindamour

Chris’s site is

http://www.wholesalehomesnow.com/

I was thinking about what would be a good way of celebrating today …. july 4th.

We need to be thankful for the opportunities that this great country provides us on a daily basis….

But I have an equally good idea for today

Let today be your reset button….let me explain

I’m sure that in January of this year you set some goals.

Where are you with respect to those goals?

Chances are that you’ve hit some snags (like me)

So why not just simply hit the “reset button” and just start today with a new intention

Take today and write out what you want to accomplish from now till the end of the year.

Write down why you want all that stuff.

Remember it’s not about the money or the car you want.. but how that is going to make you feel.

Perhaps the money will buy you more free time with your family?

Get some ideas for your pefect day by watching this video

http://www.youtube.com/watch?v=M669BF2J9Y8

and get this book at amazon and devour it

http://www.chicolikes.com/mindpower

And just clear the slate today, get rid of the baggage …. make today YOUR independence day.

What if you were able to make offers to sellers WITHOUT them getting mad at you?

I’m talking about making offers that are substantially below their asking price and they won’t get mad at you for doing it?

I recorded this short audio that reveals three ways that you can position your offer so that you’ll never have to worry about this problem ever again

Just “right click” the link below and save it to your computer

How To Make Low Ball Offers

Next, make sure you look at my blog post below on how you can speed up any audio or video file (so you can listen to them in a fraction of the time)

Speed up your learning blog post

Finally, give me your comments and let me know what you think

Did you know that you can get through all of your real estate training materials (videos and audios) in 1/2 the time it’s taking you right now?

Watch this video to see how.

The software that I refer to you can get here

http://www.videolan.org/vlc/

Note: if you are on the Mac OS you hit “COMMAND” and the “+” to listen faster

Download the audio interviews on this page

Student Interviews

Once you download the interviews try and listen to them at 50% faster (or more) and tell me what you think by posting your comment below

.

Are you looking for any of the below?

* A step by step system that will tell you what to do every step of the way

* A real estate system that guides you and gives you ever possible scenario that you’ll encounter and how to overcome it

* Blueprints or other diagrams that lay out all possible scenarios and tell you what to do

* A system that has nothing left out and covers every conceivable thing that could happen in your business

I got bad news for you

It doesn’t exist

You have a better chance of finding the tooth fairy….

Here’s a video from one of my mentors explaining exactly what I mean.

How does this apply to real estate?

The problem is that most investors invest in a system and then the minute something goes wrong… or something does not work 100% as they should… they give up or get frustrated or simply say that “it doesn’t work”.

Is this you?

So how can you change your thought process so that the moment that something goes wrong you are able to make adjustments and eventually succeed?

HINT: You have to realize that nothing is ever going to work 100% as advertised… there are too many variables to account for and you have to make adjustments as you go along.

Leave me your comments below

If you are struggling to generate seller leads because you don’t have any money for marketing then you’ll definitely want to listen to this audio post

I’ll reveal two quick and easy strategies that you can implement immediately to start generating seller leads

This blog post is sponsored by my newest product called Fliptogetrich.com

If you have any questions or need further clarification then post it below.

I just recorded this quick audio

It’s about THE BIGGEST reason why real estate investors fail!

Listen to the audio and give me your thoughts?

Am I right or completely off base?

I’ve gotten a lot of comments and questions about Virtual Wholesaling lately… specifically about the inner workings of the system.

I know that many of you have my Virtual Wholesaling Blueprint but I wanted to lay out the system for everyone.

The simple explanation

• Choose your market (I always recommend staying local in the beginning to keep things simple)
• Go online and find motivated buyers and sellers via (Listsource and Realquest)
• Sift and sort the lists you got to eliminate duplicates (and corporations from sellers list).
• Go to Click2mail.com and upload the the list of buyers and sellers (separately of course).
• Get a 24 hour recorded message hotline and record a buyer and seller message (I give you these in  Virtual Wholesaling.)
• Re-create my postcard in Click2mail (I give you one of my postcards in Virtual Wholesaling )
• Send out your postcards (I would only do no more than 1,000 the first time since you may get inundated with calls)
• Speak to the sellers that left messages to find the good deals.
• Agree with sellers on price and terms and put under contract with inspection period the good deals.
• Mark up the price of the property so that you can make an assignment fee (the assignment fee depends on the value of the property and how much of a good deal you are getting)
• Post your deal on your buyer’s website and then send direct mail campaign to the buyers via click2mail. (The postcard directs the buyers to both the website and your toll free 24 hour recorded message)
• Agree with buyer on price high enough for you to make a profit (and then you’ll get them to fill out an “assignment of contract”)
• Follow up with all parties and make sure the deal closes.

Note: Don’t sign up with either Listsource or Realquest on their website or by calling their 1-800 number. You ARE NOT going to get the best deal. You MUST contact them via my rep there (info is in Virtual Wholesaling

Now if you are not able to sell the property, you’ll simply cancel the contract with the seller

I can’t go over the entire system in a blog post like this.

But I think having this simple checklist will give you a good idea of all the moving pieces.

You’ll learn all of the above in great detail in my Virtual Wholesaling, which is a complete video based training to do the entire marketing PLUS additional training on speaking with buyers and sellers and closing deals.

The system has been proven by many of my students to work BUT you have to take the time to implement it.

The great thing is that once you have all the pieces in place then you can run it with very little work. In fact, once you have it down you can train a Virtual Assistant to do most of the work for you.

But for most people it will take 2-4 weeks to get all of the pieces in place and be ready to start doing marketing.

WHAT’S THE SECRET TO MY SUCCESSFUL STUDENTS?

I can tell you that there is definitely no magic pill here.

#1 – They Work Hard

To be successful in real estate investing, you don’t need a university degree, or even a resume.

But if you’re starting out , you do need to be prepared to work really, really hard.

It can be rewarding, but it is hard work.

The fact is that many people buy real estate courses all the time and never make any money.

They never follow through …. most people don’t realize that there is hard work and so they just give up.

I do have students that appear to work very little and make tons of money … but this is only after putting in the work up front to achieve that.

#2 – They persevere through hardship

Most successful real estate investors have failed several times.

Instead of allowing failure to discourage them, they use it as a learning experience.

The knowledge they gain is valuable, and their ability to persevere through hardship allows them to continue working toward the success they eventually achieve.

#3 – They take action despite not having all the facts.

As a successful entrepreneur and real estate investor you need to be able to work within a framework of ambiguity.

Most people are paralyzed because they are looking to make sure that they have everything 100% covered (to avoid making mistakes)

This is absolutely the worst thing you can do.

You have to be diligent to make sure you do the best possible job of eliminating mistakes and making sure that you are doing things right.

But at some point you have to be willing to pull the trigger and accept that there is likely something that you missed and you’ll just have to deal with correcting it as you go along.

LET’S CHAT

Give me your thoughts or comments here below…I’d love to have a conversation about this post

(you can also check the box that will notify you the next time someone posts something here)

Note: I wrote this post without checking it for spelling errors…. so if there are any then please ignore them

If you want to know what its’ really going to take to succeed as a real estate investor then you have to watch this video!

Let me know what you think of the video by posting your comments below.