The Really SWEET Condo Deal

I’ve done enough deals now and encountered enough adversity, problems, unforeseen expenses, contractors disappearing, liens from subcontractors and the sale that I thought would never close.  I’ve had ovens stolen, multiple break-ins, the pool with 100 leaks, water heaters stolen, ceilings collapse due to water leaks, deals fall out of escrow, permit hassles and the occasional termite.

So when I got this last deal, a condo in Bakersfield at $42k, needing $9k in rehab and a sale under contract within 10 days with an all cash offer of $95k, my response?  I deserve this one.

So what was my trick this time?  What was my secret?  How did I get this SWEET deal?  If I knew I would do it again and again and again.  Maybe it’s karma?

I think this time the lesson learned is persistence.  Or it could be what my friend, Doug Reid says, “cahones”.  He observed that I experience a road block, retweak my approach, and go after it again.  And that is so true.

Persistence.  Not giving up. Find other ways to accomplish your goals.  Think outside of the box.  That’s what it takes to be a real estate investor.  It’s OK if you encounter problems and decide a different path for your life.  Sometimes I think how simple a 9-5 job would be right now…just show up, be kind to your co-workers and associates, go home, get a paycheck.  Real Estate Investing is not for everyone.

Now about the deal itself…I made an offer on this condominium for $42,000, they counter offered at their asking price and I rejected it.  The next week I offered $42,000, they counter offered at their asking price and this time I just ignored the offer.  After a week or so (and I believe it was the end of a month), suddenly they retracted their counter offer and accepted my offer of $42,000!

This must be too good to be true…so I ordered an inspection, got people to check the property out for me and was pleasantly surprised how ever little was wrong with the property.  I made sure the condo association was solvent so I could resell easily.  This was a sweet deal and it fell in my lap.  I installed granite countertops, painted the cabinets replaced the carpet and repainted the inside.  I put it up for sale at $99k.  Other similar properties were asking $110k and more – but this one had granite, new fixtures and freshly rehabbed.  So when I got an all cash offer for $95k – Hey, I won’t look a gift horse in the mouth!  Deal!

We close in a few days.  If all goes well, this property will be remembered as my easiest rehab with the widest profit margin.

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