Sunday, October 25, 2015

My Most Profitable Deal

Back in 2008, while the housing market was crashing all around the country, I managed to do my fastest and most profitable fix-and-flip deal. The deal began as part of a mail campaign I was doing in my neighborhood. Here is the letter that I sent out:

I am writing this letter to you today because I am interested in buying your house located at XXXX Yesler Way in Seattle. I live in the neighborhood and run by it almost every morning. I would love to work on a property like this. Would you consider selling it?

I spent 25 years working in the arts, and recognize that there is much more to life than making a profit! My real estate involvement provides not only a means of support, but a way to improve the neighborhood and the community, while offering affordable housing options to individuals, couples and families. This has given me great satisfaction and reward in pursuing real estate, in that I can often buy houses and properties in “as is” condition that other realtors would not want to list. I am willing to fix up and improve properties, thereby improving the neighborhood and offering new buyers or residents the chance to live in a nicer community.

I promise you that I am a serious buyer. I bring in partners to help on properties that require additional funds to purchase or restore, when needed. I won’t waste your time. I hold a Washington real estate license, so you understand that I am serious professional. I pay fair prices for properties based on current condition —with no commissions whatsoever.

If now is not the right time to sell, please keep my information and feel free to contact me at 206-355-1706 any time. Our conversation will be kept completely confidential. Financial, professional and personal references are available upon request.

I look forward to hearing from you!

After the second letter, the Sellers responded and agreed to meet. I followed all of the creative finance training I had been given, and structured my offer as follows:

$245,000   Purchase Price, with a private lender providing the $35,000 down payment, and the Seller providing a $210,000 note at 6.4% interest. I could not get the Sellers to agree to a Substitution of Collateral clause, but I tried. So there was no money down from me to purchase.

$   1,700   Buying Costs

$ 16, 663  Fix-up costs for roof, gutters, exterior paint and carpet

$ 14,867   Holding and sales costs

$364,000   Final sales price, after 44 days of ownership and multiple offers to purchase. Advertising was all on Craigslist, and showing appointments occurred while we were working on the improvements.

$ 92,733   Net profits

So it is possible to get great deals, by following the techniques and training that we have blogged about here.

For more information or consultation on your real estate investment strategies, please message me privately at or call our 24/7 real estate investment hotline at 888-621-4999.

Happy Investing!

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