In September 2012, I officially moved from Australia to the United States and pursued my dream of becoming a full-time real estate investor.
I landed in Missouri and was very busy exploring the various opportunities that the Kansas City market had to offer over the next six months. This was the same time I fell in love with a particular block on College Avenue.
The block I wanted to buy
The block consisted of 25 two-bedroom, one-bathroom homes. These simple properties were clearly built by the same builder, and the only thing that distinguishes them from each other was the exterior paint. Houses on the west side of College Avenue.
The back of the site faced a park with a bike path and a basketball court. The street wasn’t in the best part of Kansas City, but I still thought it was very manageable and rated it as a C-class neighborhood.
I imagined buying and holding an entire block of these cookie cutter homes and making a door-to-door visit on the first day of every month to collect rent, all in one clean sweep.
Although I was very busy working on other projects and most of my personal money was tied up elsewhere. The opportunity to buy my first property on College Avenue came when a local wholesaler offered me a deal.
My first house there
I decided it was worth the blow and contacted my best friend and fellow investor from Europe. I offered him a joint venture because he always wanted to enter the US real estate market.
The wholesale property was very exhausted and required a complete internal and external overhaul. The only two things in a decent condition in this house with a roof and a base.
This property was offered for $ 15,000. This was a reasonable price for the area and its condition, but I wanted to make sure I had a good safety margin so I decided to test the waters with a low ball. $ 5,000 offer. As you can imagine, the offer was not accepted.
A few weeks later, the wholesaler’s deadline was approaching and he was pressured to execute the transaction and offload. I exchanged the phone twice and advised him that the best thing I could do was throw an additional $ 500 into the property.
To my surprise, he came back and said, “If we can close tomorrow, we have a deal.”
I was closed the next day and intended to complete the refurbishment within a few weeks. Unfortunately, this didn’t happen because I had a high priority commitment to other partner projects. We also found it unfair and selfish to take the remodeling crew from these transactions and engage in private investment. ..
After a long three months, the “ugly house” was still vacant and unrenovated. A friend of mine and a joint venture partner have another potential deal at work and asked if I could sell the property.
Things changed and I agreed because I had a big dream other than owning a block on College Avenue. We have mutually determined that the best way to move forward is to sell the property wherever possible. It was above the price we paid.
I have never tried to sell an unrefurbished property in the real estate industry, but this was definitely the first time.
At the same time, we wanted to sell this property, but all the marketing activities we did were aimed only at investors who were interested in buying a refurbished turnkey rental. Listing properties through our regular marketing channels and offering them to existing investors will be inconsistent with our brand and company values.
In my opinion, real estate is a number game, and I strongly believe that manipulating those numbers every day will open the door and ultimately get what you want. My personal assistant and I had no choice but to relentlessly post this “ugly house” on Craigslist, Postlets, Facebook groups, LinkedIn, and more. I also sold it to my mom (laughs).
Related: Real Estate Investment: Number Games
Six weeks after being ridiculed and ridiculed by other investors for promoting such an “ugly house,” and after lowering the initial listing price of $ 12,000. A gentleman responding to one of Craigslist’s ads called me to know the area well and saw a price cut. He called us when he was standing right in front of the house and wanted to know if anyone could see him at the property right away.
Initially very skeptical, as it was 10 days ago, he had a gentlemen’s agreement with an individual who would guarantee that the property would be closed soon, but unfortunately he turned out to be unreal. , The transaction was unsuccessful.
I decided to ask prospective buyers if he was really real and how fast he could do it. He grew up on a street around the corner, and told me that his mother’s long-term wish was for him to become a full-time real estate investor.
Do you think you can’t go against your mother?
After walking for about two minutes, I drove to the property and put him in … he said, “I’ll bring it!”
As the saying goes, “one person’s trash is another person’s money.”
I tried to reply, but I couldn’t understand the words. Reliable Title It took me 10 seconds to remember the company name and contact details. After providing the buyer with details, he immediately called the title company and arranged for a time to close at 10 am the next day. Surprisingly, the investor appeared closed with a $ 10,000 certified check and the transaction was closed. Within 10 minutes.
This was the rarest buyer / transaction I’ve ever been involved with. But conversely, it has become one of my smoothest and fastest deals.
Bow down and don’t pay too much attention to the negativeness that others throw your way. When you commit to numbers, work hard, work wisely, and work tenaciously.
Your time will come.