Cover article continued ... want to to use carpet, laminate, or tile. Of course, Murphy lives at every house, so the formula you use needs to budget for unexpected surprises. But by developing this skill for estimating repairs, you can determine your offer on the house before leaving the property. Lesson #5 You MUST have your funding lined up before making your offer. When I made my offer on Quailwood Court, I told Chris my offer came with no loan contingencies and that I could close within seven days of the offer being accepted. The likelihood of any other real estate investor making that same offer is very slim. Of course, I was able to make this offer thanks to private money. I know that over the last 15 years, many of my offers were accepted despite the fact they were lower than competing offers because I had the private money lined up. There was no going to the bank and waiting to get approved for a mortgage or harassing with loan contingencies — just cash between individuals doing business. Thanks to private money, I am able to make offers and close deals quickly, because the money is already pledged and ready to go.
Lesson #6 Have your Realtor monitor the property.
Even when you act fast and have the funds lined up, your deal might not be a home run right away. When I had Chris make my offer of $195,000, the sellers came back and said, “Submit your highest and best offer, because we have multiple offers.” Here’s a bonus lesson: Don’t get sucked into the trap of realtors saying “give your highest and best offer.” I had already decided $195,000 was as high as I would go. Sometimes this means another offer will be accepted, which is what happened to me on Quailwood Court with the first offere. But just because another offer was accepted doesn’t mean you’re out of the deal just yet. When you don’t get a deal, have your Realtor monitor the property, watching to see if the deal falls through and it ends up back on the market. One week later, Quailwood Court was back on the market, which brings me to my final lesson … Lesson #7 Sometimes you have a second chance to make even more profit. When Chris told me Quailwood Court was back on the market, I had him make another offer. This time, I offered $190,000 and close in seven days with no loan contingency. Less than two hours later, the seller accepted my offer. When all was said and done, with an offer of $190,000; repairs estimated at $20,000; and an after-repair value of $290,000; I’m looking to make a profit of $70,000 on Quailwood Court, after carrying costs. Making this deal on Quailwood Court was a great experience, and I knew right away I wanted to share these lessons with you. If you’re ready to dive in deeper and learn more about estimating repair costs and everything private money, then you need to make plans to be at my next live event! The Real Estate Investing Cash Flow Conference is coming up soon, March 6–8. I will be there in person to teach everyone about private money, my foreclosure system, and how to automate your business. We’ll also be on the rehab bus tour to get a behind-the-scenes look at my team and properties we are currently working on. Don’t forget, at this event, you will also have the opportunity to network with private money lenders and learn how to get funding lined up so you never miss out on a deal.
Have You Heard the Good News … As it Relates to "Learning Lessons"?
Proverbs 9:9 "Give instruction to a wise man and he will be still wiser, teach a righteous man and he will increase his learning." Philippians 4:9 "The things you have learned and received and heard and seen in Me, practice these things, and the God of peace will be with you." Psalm 143:10 "Teach me to do Your will, For You are my God; Let Your good Spirit lead me on level ground."
If you haven’t registered yet, you still have some time. Visit JaysLiveEvent.com today to register for this event!
I look forward to seeing everyone in person in just a couple of weeks!
–Jay Conner
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