- Texting Strategy – MLS 100 Days or Older
- Texted them on Thursday, February 25, 2021 12:49 PM
- Text Transcription: (Buyer) I could possibly have a problem solving solution for you Terry about your proprty at Johnsburg. I believe in paying it forward and Im only where I am today thanks to the generosity of others. It would be awesome if we can jump on a call today to see if you would be a good fit for this opportunity
4) Phone conversation got started by Frank calling the seller to meet at the property the same day
5) The seller gave Frank a tour of the house. The main house is a 5 bedroom 5 bath 3,600 sqft estate that sits on 2.2 acres of land and 200 linear feet of water frontage. The second house, the coach house, is a 2 bedroom 1 bath with full kitchen and livingroom/dining room. The estate also has a 2 car garage / boat garage.
6) We discussed purchase price and the seller was sticking to full price since it is a lot lower than the comps in the area. Frank explained what a terms sale was and the seller was very knowledgeable on sales like this since he was also in real estate.
7) We ended the initial visit with a promise to follow up the next day with an offer.
8) Day 2. We met at the sellers house and presented the offer.
THE OFFER:
| Cash Offer: I can give you a cash but it comands a cash discount. And if I told you the price we pro wont be friends |
| Or an offer on Terms? 90% of people say whats Terms?!? I go though a terms sales pitch and explain to them what the major up sides to doing so |
| Why would they sell on “Terms” “Agreement for Deed” |
| 1) We can offer them top dollar at $130,000! Most investors will low ball them at 50-100k |
| 2) AS-IS Sale with NO Inspections. Seller just has to clean the interior and exterior of the property. |
| 3) We will remodel to a safe and clean condition and use it as a rental |
| 4) They will make an additional $$$$ on the interest! Its like they are selling the property for $160,000!!! |
| 5) Buyer makes all future repairs and maintenance |
| 6) It s a win win or seller and buyer |
DEAL BREAKDOWN
Purchase Price $779,000.00
5 Year term at an annual interest rate of 3% with a balloon payment after 5 years of the initial closing.
Monthly Payment to include principal, interest, insurance and taxes in the amount of $5,297.81
Down payment of $100,000.00
First payment starts 09-01-2021 or 90 days after initial closing, whichever comes first Attached is an Amortization Schedule.
REMODEL
For the remodel we wanted to update the house to make it safe and clean. We concentrated on all the big expenses first. New roof, bathroom remodels and flooring first. We also went back and forth with updating the existing tennis courts or making them a basket ball court. Ultimately we choose the bball court for cost effectiveness and usability. We ended up finishing up the remodel in 4 weeks right up the the same day our first AirBNB guests showed up!
AirBNB
We started renting this property short term at $1,250 per night on July 1 2021 and have booked out solid for 2 months now in the peek season.
Utilizing automation tools for marketing we are able to over deliver on our initial projections for vacancy rates and amount we are charging.
