Picking Up Deals In The City Of Angels-Part 5
Day Four of Four
Friday and day four was a very busy and productive day. We started with me arriving at Jeremy's office and us discussing the previous day's activity and what we had scheduled for the day. After discussing some questions that Jeremy had, we headed out the door to meet Vicki at one of the REO's that we had selected for her to show us.
We arrived at a 2/2 condo/townhome that had been on the market for almost a year. The property was in a nice location and had some great curb appeal. We entered the condo and was suprised at the bright orange granite tile. The condo also had laminate flooring throughout the second floor and on the stairs. The condo had large rooms, tall ceilings and a nice sized and decorated kitchen.Comps on the condo were around the $350K range with it currently being listed at $299,900. We submitted an offer in at $183,000. We'll see where it goes! Check out photos below and the Craigslist (www.Craigslist.com) ad that we went ahead and posted to attract buyers!
The second property we went to was a 3/2 single family residence. The home needed a lot of work and so we were in and out in less than five minutes. The reason we chose not to run with this property was the fact that there are plenty of pretty or cosmetic REO's on the market right now and are much easier to flip or have an exit strategy instead of a major rehab, let alone Jeremy not having the time or resources to handle a large rehab!
The third property was another 2/2 condo. This condo had some nice curb appeal but when we walked around to the stairwell to get up to the unit, we found the metal hand rail laying in the stairs. We entered the unit which was in pretty good shape, except we found a large hole in the ceiling from where there was an obvious hole in the roof. Upon further inspection, we found the property's HOA fee was $0 which made us believe that the HOA was no longer active or bankrupt and unable to maintain common area maintenance. We later found out the property wasn't able for traditional FHA financing due to the lack of the HOA. We passed on that one and moved on to the fourth property.
The fourth property was the one property that I was the most interested in due to the fact that it was the cheapest REO. The property had been on the market for a year and had dropped in price from $150K down to $75K. The 1/1 Encino condo was just around the corner from the previous condo, but was in much better condition. The property was on the 2nd floor in a decent condo development. It was a quaint 480 square foot unit that had in door laundry (stackable), a nice small patio, along with ceramic tile floors and a large, full bathroom with nice closet space, and a well kept pool and common area on sight. Along with that, the rental comps showed that we could potentially rent the unit for around $850-950 a month. This would allow the property to almost cashflow at the current listing price. We chose to offer a quick close, all cash offer of $37,500 and take the propery as is. The property only needed some new paint, general cleaning, applicances and just some TLC, but nothing more than around $5-6K in repairs. We all liked the property.
After grabbing lunch at Whole Foods, we met Vicke's business partner, Jennifer, at the office and had her pull comps one more time and we filled out the two contracts on the chosen condos and discussed having the ladies show Jeremy some more properties the next week. She stated that she would get with Vicke on Saturday and pull more properties for Jeremy to look at off the list that we had pulled. She suprised me by asking where I was from and it turned out that she had a condo in Corpus Christi that she owned that she was looking to get rid of as she had trouble keeping it rented. We discussed several ways, including offering owner financing, and she was intrigued. She stated that she would send the details to Jeremy and me to help her out with selling it. We then headed back to the office.
We arrived back at the office and spent the rest of the afternoon putting together Jeremy's marketing and action plan. We focused first on the items that Jeremy needed to focus on. These items included him:
Following up on private investors with newsletter
Look at more properties the following week
Follow up with the code enforcement officers/investors
Call back serveral of the Craigslist Birddogs for deals
After discussing the hot points, we put together and discussed the weekly and monthly marketing plan that Jeremy would follow to ensure that the momentum that we had started would continue and allow him to stay successful. We also made sure that Jeremy had plenty of private investing tools along with understanding what he could delegate to his assistants and what events that he should attend on a regular basis. Jeremy was extemely excited about having momentum in place and the likelihood that he would close one or both of the REO offers that we had submitted.
After ensuring that Jeremy was comfortable with the marketing and action plan, we wrapped up the week with him completing the Mentor Evaluation Form and we spent the next few minutes discussing follow up on both of our parts along with what he could expect when he attends the next Path to Profits Workshop in Las Vegas in two weeks. After that, I thanked him for his hospitality and headed back to the hotel.
Jeremy will continue to be successful as long as he continues to follow up and make consistent offers on REO's and code violation properties, along with creating a drip marketing campaign and following up with his database to raise private money. With every student, I am here to help assist him in succeeding by being just a phonecall, email, fax, or short blog away! We've found him a way to make money, now its just up to him to rake it in!