Success Stories
Gerald C. Seegars
By
May 9, 2005, 10:56

On November 1, 2003, I got a referral for a property in a nice area near Capitol Hill in DC. After contacting seller, I arranged an appointment to see property on Nov. 5. I drove by the property prior to our appt and got a good idea of the neighborhood and comps. Met with seller and one of my contractors on the 5th. After inspecting the property with my contractor, I told the seller I would get back in contact with him shortly.



I determined that the property should sell for about $359,000 or so fixed up, estimated repairs to be $40K. The seller's wife had mentioned $250,000 as the desired sales price, but I knew there was no way I would buy it for that price and still be able to wholesale it.

Anyway, after some negotiations with the seller, we agreed on a price of 172K which I thought was a fine price and left room for a nice wholesale spread. Signed contract on Nov.7.

I decided to wholesale the property for 199K. I distributed flyers at a local investment club and got some interest although one joker there told me to my face that I was out of my mind and challenged me to justify my numbers. I not so politely declined as I knew he wasn't going to buy it and I know people like him just drain the joy from your life.

In any event, I marketed the property by calling some guys on my buyer's list, newspaper advertising and so forth. Got a ton of interest but no contracts. 

Then I made a mistake that I will try to avoid in the future. Another investor had called me about the property and said he was interested and I gave him the combo to get in. Lo and behold, this guy and his partner started calling guys on their buyer's list and telling them that they had the property under contract. Next thing I know, the investor and his partner are calling me with all types of crazy and probably illegal offers like charging one of their buyers 230K for the property and have me cut them a check for 25K after the closing. I didn't feet too comfortable with that and didn't like the idea of having these guys in picture. I detest double flips. I want to control everything as much as possible. (Steve Cook taught me that).

The final straw came when I was at the property going over the repairs again in case I ended up purchasing it when three gentlemen just walked through the door. Long story short, major drama ensued when the guys demanded to know who I was because their guy was the owner and I had no business being there. Let's just say, they left in a huff.

Anyway, I decided to list the property on the MLS at a slightly higher fee to cover brokerage and got three offers on it. One offer came at 214K but the buyer had too many contingencies. Imagine that, I'm wholesaling a contract and the buyer wanted to add contingency clauses to the assignment agreement. Next (reluctantly I might add).

Next offer was low but in the ballpark. It also came from a Realtor I have worked with before and know to work with serious investors. Unfortunately, we could not agree on a price.

Now its Thanksgiving and I ain't got no contract. I know I can get a buyer if I reduce the price, but I am very confident in my numbers. (This made me rethink this buyer's list business as I don't have a very extensive list).

On the day after Thanksgiving, I called an investor who had called me about the property earlier but I was literally on my way to meet the 214K investor who had agreed to my terms over the phone but later tried to change the terms. This investor claimed to be a cash buyer and agreed to my terms. I told him I needed proof of funds and a deposit check for 3K that was totally non-refundable unless good title could not be produced.

We met the Monday following Thanksgiving, took care of the paper work and closed on December 10. My wholesale profit was $26,500.00. So in just over 30 days I made $26,500 and didn't spend one dime in repairs. NICE!!!

It seems that every deal presents its own special fact pattern, challenges and problems but thanks in large part to Steve Cook's course, and his website Fippinghomes.com, I am quite confident in my ability to wholesale properties. Obviously, I still have a quite a bit to learn and finding good deals is not easy. I also want to refine my system of doing business to make things go smoother. 

I am very thankful to God for bestowing to me the knowledge and ability to successfully complete this and the other deals that I have completed and pray for His continued blessings and guidance as I go forward.

Steve Cook is a real estate investor from Baltimore, Maryland. He is the owner of flippinghomes.com. For more information on Steve or his materials, click here