I finally got my first deal after six months of studying Real Estate. It's definitely been tough, but I encourage all newbies to PLEASE stick with it. Once it pays off, it will most certainly be worth it!

I found the house when I was out driving one day, even though I had passed it a thousand times before. It was vacant, in need of repairs and certainly the ugliest house on a nice block. After finding the owner in the county courthouse records, I looked him up in the phone book and saw that he lived about 15 minutes away from the property. I gave him a call and asked if he was willing to sell it. He replied, "Well, the house needs some repairs. Are you sure you want it?" I explained that I fix up houses and he proceeded to tell me that the house has been vacant for about nine years because his son was supposed to fix it up but his job relocated him out of state. 

We then set up a time to meet so I could get keys and look around to see what was needed. Once inside, I estimated that repairs would cost between $30,000 and $40,000. I went back to him and offered $10,000. I knew that was a safe bet, but he said he wouldn't sell for less than $30,000. Being desperate (NEVER DO THIS) for my first deal, I took it. We signed the deal giving me two months to close and I put up a $50.00 deposit check telling him it would be held in escrow at the title company. (Nice little tip I picked up from Steve's course). Homes on the block go for $85,000 - $90,000 fixed up and I figured I could wholesale it to someone since it would still be far below market value. 

However, I got my lender to look at the house just in case I couldn't find a buyer and they didn't approve the deal because the margins were too tight. I was starting to get down on myself. It was depressing having such high hopes completely blown away in seconds. But I didn't give up. It was my original goal to wholesale the house, so I continued to bring in buyer after buyer to look at it. Some liked it but said the same thing the lender did. Others were just flat out rude with how they carried themselves while telling me they didn't like my deal. (My opinion, if you don't like a deal be humble enough to not turn into a complete jerk and just simply let the buyer know you’re not interested. Enough said on that.)

Next, I decided to ask Steve for some advice on what to do. He suggested that I go back to the seller to tell him my lender likes the deal but not the price and ask if he would be willing come down some. He did since his wife had been pressuring him to sell it because it was only eating up taxes every year. He came down to $20,000 and said that was as low as he could go. Originally, he told me $30,000 was the lowest but time has a way of motivating people. I explained to him that would check if my lender would approve the amount and that I would get back to him. Next, I informed some of the previously interested buyers of the new price, as well as a realtor friend of mine. The realtor called up a buyer who was looking for a project similar to mine in that area. The next day he came out, loved the place and we made the deal right there.

I informed the seller that we had a deal at $20,000 and set up closing for next month. Today I met my buyer at the title company and received a deposit for $2,500 being held in escrow until closing. This was my suggestion and he loved it. He said it was the first time someone didn't want the money now and was willing to be this fair about it. We're most likely going to close sooner than expected but he's waiting for his lender to process the loan. As soon as he does, it'll be a $5,000 PAYDAY FOR ME!!! (I already had the title work done because I got that started as soon as I signed up the deal.)

I owe it all to the newsgroup, Steve and Hal for never loosing faith in me and prayer. Steve’s course (Wholesaling for Quick Cash) was VERY instrumental in how I approached things with this deal. If you’re on the fence about the money for the course, get over it and get it. It set a fire under me that didn't let me give up on getting my first deal. For the past two months all I've been doing is reading his course and listening to the Boot Camp CDs. It's paid off. 

The lessons I learned from this are, first, that you’re never too old to pray. It's funny how once prayer is added, things come together. Second, no matter how successful you become or how much you achieve always stay humble. When I forget this, life has a way of reminding me. Third, if you do get into a contract at a price too high, it's not over yet. That's what negotiating is for. Just make sure you have clauses that protect you but also be fair with the seller. Don't jerk them around by not making up your mind on the price by constantly trying to get them to lower it again and again. Fourth, having a million contingencies is unnecessary. A financing contingency is all you need. Fifth, keep track of EVERYONE that contacts you about your property. Get business cards if you can because this definitely builds your buyers list. The guy buying this house was able to put up a big deposit and move fast. He didn't mess around. Who do you think I'm calling first when I have my next deal? Last, NEVER give up! There were times when it seemed dark during this deal and it looked like I may have to hold off on my real estate goals for now. Never giving up, overcoming hurdles, getting good advice (thanks Steve and Hal) and having my faith saw me through it. 

I can't thank the people who run the newsgroup and make this community enough for being here. Without them I may have just been another victim of the phony seminars and dishonest boot camps out there. So please all you newbies out there, take what lessons you can from this and never give up. PLEASE. Your financial independence is too great a price to pay. Just pacify any nay sayers you may come across. 

Thank you for reading about my first deal. 

- Derick(Pa.)
Dadams831@yahoo.com

For more information on Steve or his materials, click here

 

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