Finding Wins In The Windy City-Part 2
Day 2 of 4 Wrap Up
Day two (Tuesday) turned out to be a busy day as usual on Andrew's 1:1. I arrived at his condo and we discussed the day at hand. He had almost finished his homework of putting his contacts into a usable form for us to use to find private money along with marketing his wholesale deals. We had a 10 am appointment with a realtor, so we headed out to make our meeting on time.
We arrived at Starbucks and met with Joseph Mei, investor and realtor with Keller Williams Realty. Joseph had been an investor for a long number of years and had just recently gotten his license the last couple of years to benefit his investing. Joseph grilled Andrew with quite a few questions inquiring about his business, history, buying strategy, risk aversion, and exit strategies. Turned out he was somewhat of an IT engineer (hence the many questions) but it was good to see Andrew answer the questions and grow more confident in understanding his business model.
Joseph used his own money and specialized in negotiating short sales and was looking to have 25 free and clear properties by the time that he was finsihed investing. Joseph would prove to be a good asset for Andrew to bounce deals off of and to refer short sales to, but he wasn't the ideal type of realtor that we were looking to have as the team leader for Andrew.
After meeting with Joseph and talking investing, we headed out to review the potential subject to that came from Andrew's website. We arrived at the complex and found the lockbox. It took a few minutes to get it unlocked. After that, we walked up to unit 8 and let ouselves in. The condo was in great shape and needed just a few items to get the property ready for move in (fix a closet door, clean carpet, touch up paint). The property was otherwise pretty nice with a nice sized master suite with lots of storage space, large bathrooms, and a kitchen that included all appliances including a full-size fridge. The unit also had a decent sized patio and was perfect for a working executive, new family or married couple or someone who needed a place but couldn't get financing. We took some pictures of the unit along with a video walk through (below). After that we headed to the office to get some more information.
We found out that there was still 30-40% of the property up for sale with prices ranging from the $150's for 1/1's up to $175,000 for the large 2/2's. Rent for the larger units was somewhere around $1,200 a month. There were quite a few amenities available with a clubhouse, pool, lots of parking, and sport courts, along with it being in a favorable location. We enjoyed finding out what we did and headed out to grab lunch.
After lunch, we arrived back at Andrew's place and we spent the next hour discussing Andrew's five exit strategies that he could use for most properties. Conventional financing, owner finacing, lease optioning, renting and wholesaling strategies were discussed with pros and cons along with what he should be looking for in a deal to allow it to fit into numerous exit strategies. We discussed how he should market for properties immediately.
After discussing exit strategies, Andrew and I spent the next hour discussing how we could market and sell the condo and how Andrew could make money on the property. After spending time putting together a spreadsheet that outlined potential profit for Andrew. We spent some time discussing structuring along with negotiating this deal with the seller. I also had Andrew post several ads to help find investors and potential owner financed buyers. I had Andrew create another Craigslist account and copy and paste his ads so that he could easily repost them to his account later on.
After focusing on marketing for the condo, I had Andrew work on contacting two other realtors along with assigning him the task of completing his homework from the night before. We then discussed how I wanted him to discuss the condo the deal on our weekly conference call with the other 1:1 coaching students of Bob Leonetti's coaching program and website, www.weclosenotes.com. We then did a short video wrap up (below) and I then headed out to prepare for the conference call after calling it a day.
Andrew Teutsch Subject To Deal
Day 2 of 4 Video Wrap Up
Andrew's Subject To Condo Pics
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