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$45,000 Student Case Study Using Virtual Wholesaling

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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:

The $45,000 Case Study

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!!!

IMPORTANT - just because Chris made money on a deal using my strategies does not meant that you' ll also make money (as stated in our Income Disclaimer here)

Lessons learned:

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

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  1. All I can say is “WOW”. I am impressed, especially since this was your first deal.
    I think it was remarkable the support you got from Cris in helping you to partner with another investor student.

    Reply

  2. Hello folks,

    I am the student Chris Brindamour partnered with to get this deal done. It tooks some work but I knew it was a slam dunk $$$$$$ from day one! Love those ‘little yellow postcards’. It’s only August and I have made more money wholesaling properties than what I used to make working a whole year at my former computer job. I keep telling you Cris Chico is the man!!

    Reply

  3. Hi, Cris. I just got your email. I read the above case study on yesterday…and it was very inspiring. I’m not ready to start your implementation program just yet…but I [am] preparing (have been preparing) for months now…And I hope that your offer still stands…when I am ready to do so…Oh and [Yes!>please do keep posting the success stories of your students…This valuable information will give all *newbies* a winning edge and confidence…that they are not alone…in virtual real estate investing. Thanks so much! And continued success to ALL of us!

    –Stephanie Whitehead

    Reply

  4. I’ve been BSed so much that I believe I’ve lost faith,ambition whatever you want to call it.Damn I’am far from being a quiter and what you’re doing and the way you are doing it I honestly feel I’am getting ready to try again-But only with YOU!! Thanks Scott

    Reply

  5. That was a great deal considering all the last minute changes. I really want to work with someone that knows the business when it comes to snap decisions.

    Eileen

    Reply

  6. This was a great read. I’ve never done a wholesale deal yet, but hope to in the very near future. Thanks so much for the helpful inspiration!!!!!
    Yours,
    Annie G.

    Reply

  7. Here’s the thing people and don’t take this personally Emilio but I am SICK AND TIRED of ‘people’ inferring how bad this market is. I spoke with an investor over the weekend and he was really down, really upset that he sent out a large mailing and he didn’t get the results he was looking for. Yes, some markets have declined ‘for now’. But those of us having success is not by chance or ‘luck’……most people really don’t know the true definition of luck anyway = “preparation meeting opportunity”. I don’t care what anyone says, now is the best time to be in real estate…….especially WHOLESALING!! If you are not having the results I am getting or my partner Chris Brindamour then you need to reevaluate the strategy and mindset you are using. It’s not enough to just examine your strategies and market. You have to examine yourself! Stop thinking like the media and everyone else and then you can begin to change your income so it doesn’t equal some broke newscaster’s or anyone else who is broke. There will never be a better time in history to seize upon the mess that people made years ago. If you believe the market is so bad……will then for you it will be. PS. I have been duplicating my results all year long and then will continue.

    Reply

  8. Miles, I am having great success wholesaling. I love wholesaling. It’s totally something that can be done over and over again. My comment was intended to encourage more than anything. My approach to real estate is a little different. Only about 10% of my leads have equity. I take any lead, whether it has equity or not, and monetize it via short sales, owner finance deals and wholesale deals. I love this business!!!

    Reply

  9. Well said Miles!

    One thing I have read and been advised on, is “turn off the news”. They have no idea what they are talking about, right now is probably the best time to be in real estate (at least in my life time).

    I think it was Henry Ford that said “if you thing you can do it, your right” and “if you think you can’t do it, you are right”. Your attitude determines your altitude.

    Get started with Cris’s system and don’t let up on the gas!

    Reply

  10. I haven’t even gotten into RE Wholesaling yet but I am excited…and already, it feels like Cris Chico has mentored me…I read [every] email that he sends to me, watch every video…and if I’m unable to attend one of his webinars…I at least try to watch all of his re-plays…Cris’s approach is so simple…I love it! I appreciate his compassion and willingness to want to see others succeed in this business…No one breaks it down and gives it to us truthfully like he does…And we are blessed to have him! Cris, I’m still in preparation mode…Looking forward to implementing all that you have to teach us…And I would be so proud to be one of your students!

    Kindest Regards,

    Stephanie Whitehead

    Reply

  11. Stephanie, don’t let paralysis by analysis hold you back. You have the guidance with Cris’s system. Get it going. Get your voice mail. Get your post cards out there and start talking to sellers and buyers. Good luck. Paralysis by analysis will kill your momentum!!!!

    Reply

  12. @ Miles and Emillo: Thanks for the encouragement…But when I say that I’m still in preparation mode (what I mean is…is that I’m getting my finances together)…But one word though…soon! Keep praying! Lol

    Stephanie Whitehead

    Reply

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