Crazy Option Deals.. The Magic Bus

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Topics: Buying & Selling, Highest Bidder Sales, Wholesaling

The first year I started my real estate business, I wholesaled 40 properties. There was an average profit of $5,000.  Sometimes I’d only make a couple thousand dollars (for a few hours of work) but sometimes I’d make $20,000 or $30,000 for the same couple of hours.  That’s a lot more than most people make working at a J.O.B they hate.  Plus, I got to work when I wanted to, not work when I didn’t want to, and most importantly be home when my kids got home from school

In year two I really cranked up the volume and did a lot more wholesale deals.  I knew I needed to come up with a more efficient way to sell my wholesale properties.

Getting wholesale deals was easy!  Sometimes I’d get one house at a time then wholesale it to another investor who wanted to do the rehab work.    Sometimes I’d get 4, 5, 10 or more from one investor who wanted to liquidate their entire portfolio.  (hint, hint)

When wholesale deals started piling up, I’d schedule a MAGIC BUS!  This is how it works…

I’d get an option on 10-20 wholesale properties.  Sometimes this would be from one seller.  Sometimes I’d assemble a package from several different sellers.

Then I’d schedule a date when all the properties would be sold.  This was usually a Saturday.

I’d advertise that I have 20 wholesale properties for sale and that they would be sold to the Highest Bidder.  There’s room for 50 investors on the big greyhound style Magic Bus.  I’d sell seats for $500 each.  If they purchased a property, their $500 would be applied towards the earnest money deposit.  If they did not buy a property, I’d refund $400 of their money. So worst case scenario, they got the opportunity to buy 20 properties at 1/2 price or better, lunch, and cocktails after the Magic Bus

For each Magic Bus, I’d arrange for 1-2 private lenders to be on the bus too.  So financing was instantly available for any purchases.

It didn’t take long to sell all 50 seats on the Magic Bus.  Buyers came in from all over the world!

On sale day, we would drive to the first property. I’d hand out a one page bid sheet to each person as we drove up to the house.  We spent about 20-30 minutes at each property and I’d explain what repairs needed, the estimated costs, and what I would do to the property if I were going to rehab it.  (No chance I wanted to rehab anything)

The one page bid sheet stated the minimum acceptable bid, had a place for notes, and it also included the full contract to purchase the property.

Everyone had to turn in a bid sheet when they got back on the bus…. even if their bid was $0.00.  The reason I did this was so no one knew how many bids there actually were for each property.

While we were driving to the next property, I’d go through the bid sheets to determine who the highest bidder was.  The winner was announced.

By the end of the day I’d sell all properties then we’d celebrate with dinner and some adult beverages.

Sometimes I’d do a 2-day Magic Bus because I had options on so many properties.  My best Magic Bus weekend was $190,000 selling 39 houses.   But usually I’d only make $30,000 to $50,000 for a one day Magic Bus.  That’s still a very nice payday!

Keep in mind that an Option is just a contract with a contingency clause.  This means you have the option to buy but you do not HAVE to buy.   I rarely put up more than $10 to get the option so I had very little money at risk.  If the property sold, I made money.  If the property did not sell, I did not lose more than $10 and a little time.

Contrast this with buying a house, getting a loan, personal liability, putting up a lot of cash for fix up costs, hidden defects that could cost more than you thought, months of taking up your time to supervise the rehab, dealing with contractors and city inspectors, holding costs, monthly payments to a lender, … then the long process of selling a house and hoping/praying that you sell for what you thought it would sell for.

Options have a LOT less risks and stress!

With Options I’d make a lot more money than the rehabbers/flippers and with a whole lot less risks!  A Magic Bus was a fun way to liquidate a lot of properties fast and make a lot of money fast.

I’ve taught hundreds of people how to do a Magic Bus.  This techniques works in all markets.

You can get more details, including all paperwork to do a Magic Bus when you are a member of CashFlowDepot.com

JOIN HERE

Best of Success… and Freedom,

Jackie

P.S. For CashFlowDepot Members, I am posting my MAGIC BUS STEP-BY-STEP GUIDE, including Bid sheets the SPECIAL REPORT SECTION.  This is not for sale.  It is only available to current CashFlowDepot Premium Members.

 

 

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