How I Made $12,000 In 9 Days… Using A Real Estate Option

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Topics: Options, Wholesaling

by Jackie Lange

Last week when I wrote about my daughter’s deal I got an email from several people asking “how did she find it”  

Well, it’s not rocket science folks, she just rode around town looking for vacant or run down looking houses then looked up the owner’s name and address in the tax records.  She sent a simple letter or postcard to the owner asking if they want to sell (no investor lingo) then just waited for the phone to ring.  That’s about all there is too it.  She increases her chances of getting a deal if she mails 2-3 times to the same address. 

I also got a “not so nice” email from a struggling investor who said all the investors he knows are bankrupt and losing money and he thought I was not telling the truth to say that real estate investing is easy. 

I explained that they must be getting their real estate education from the WRONG places if he’s struggling or bankrupt. 

At CashFlowDepot.com we teach people how to find deals, how to remove the risks, and how to make cash and cash flow the “right way”!

But, it’s not going to just happen without considerable effort on your part.  You can’t find deals when you’re sitting in front of the TV watching football or the newest reality tv.

You can’t learn how to make money with real estate and create financial security unless you’re willing to devote time every week to studying the online seminars and lessons at CashFlowDepot – THEN IMPLEMENTING THE THINGS YOU LEARN.   That means you’ll have to give up other things in your weekly routine to make time to learn, time to talk to sellers, and time to do deals. 

The good news is, you can’t lose money if you don’t put any money up!  Read that again and let it sink in.  You can’t lose money if you don’t put any money up!

If you DON’T BUY the property or get bank financing you will avoid risks.

Using options, you can control real estate ( and cash and cash flow) with no risks.  We teach you all about getting options in the online seminars which come with your membership at CashFlowDepot.com

Here’s an example of a deal I just did:

Just 9 days ago, I got a call from a lady who inherited a property.  She was ready to just give it back to the bank because the property needed repairs and she had two sales fall through.  She was frustrated and at her wits end!  Did I mention that she lives 4 hours away from the property!

I explained that I was not interested in buying the house but I had several ways I could help get it sold quickly.  Because I’m not a real estate agent ( and would not take a license if they were giving them away) I needed to get a contract to buy the house to be able to sell it and still make a profit.  The contract gave me an equitable interest in the property.  It also stated that my plan was to resell the house within 7 days and if I couldn’t I would cancel the contract.

How much money did I put up to get the option?  Not a penny! Zero!  Zip! Nada!

My option price was $53,500 which was the underlying loan balance.  There are only 15 years left on the mortgage.  The house is worth $120,000 fixed up.  It needs about $7,000 in repairs to be in top-top shape.  This is a two story house.  It’s a 4 bedroom + office, 2 bath, 2 car oversized garage house on about 1 acre.  It also includes a separate 2000sf metal building with an office.  It even has a view of a lake from the 2nd floor.

The seller and I agreed that ideally I’d find a cash buyer so the underlying loan would be paid off.  She didn’t want to deal with making payments any more.    So I arranged for some private lenders to finance the purchase. 

But I also explained to her that we’d get a better sales price if we offered seller financing.  The seller agreed that for the right buyer with a good down payment, it would be ok to sell with seller financing that wraps the underlying loan.

I ran ads on craigslist that I was having a 1 day open house and the property would be sold to the HIGHEST BIDDER.   I also sent out an email to everyone on my buyers list to let them know about the open house.

The offers started coming in right away.  I got 7 offers for the property.

The best offer was for $66,000 with $12,500 down. 

This is an owner occupant who is thrilled to get the opportunity to buy a house without getting bank financing. 

The attorney charged $500 to close which left a $12,000 profit on a house I did now own and did not have any money invested in.

That’s how you make money without risks!

Oh, and did I mention that there will be a nice CASH FLOW every month between the difference in the monthly payment I collect and the monthly payment I make to the underlying lender. 

What’s the worst that can happen?  The buyer fixes up the house, stops paying me, then I get to sell the house AGAIN for even more. 

If you think these kinds of deals don’t exist in your town, think again!  Do people die in your town?  Sure they do.  And I assure you that the last thing the heirs want is to deal with a property they don’t want… especially a house that is far away. 

Other things that cause sellers to be motivated – they lose jobs, get sick, get divorced, legal issues, outgrow the house, etc…

Does any of that happen in your town?  You bet it does?  That’s why I can say these kinds of deals are all around you!

Some of the best deals are when the house just needs a lot of repairs.  But guess what, you won’t find many of these in the “nice” neighborhoods.  That means that you’ll have to get out of your comfort zone and drive around neighborhoods on the other side of town or in areas where you would not normally go if you want to find opportunity.

Like I said before, you can’t be successful at a real estate business if you’re just sitting at home in front of the TV or the computer.  You need to get out there and drive neighborhoods.  Knock on doors.  Talk to people.  You need to learn to do marketing which will get a steady flow of leads coming in to you too.  You need to “get the word out” that you’re looking for motivated sellers.  The more you do, the more deals you’ll do!

This really can be easy, if you’re willing to devote the time to learn and implement what you learn at CashFlowDepot.com

To Your Success,

Jackie Lange

P.S.  Compare my profit on the $66,000 sale with what a real estate agent would make with their 6% commission split up in multiple ways… not to mention that the typical agent would not secure a buyer and a closing in 9 days.  If they were lucky, they’d make 3% of $1,900.  But more likely, they’d make just $800 commission. 

See why OPTIONS are better!   Jack Miller often said when he stopped charging commissions and started using options his business and his profits when through the roof!  

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1 Comment on “How I Made $12,000 In 9 Days… Using A Real Estate Option”

  1. This is amazing information!!!

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