Ronald Larkin Victory

 

Ronald Larkin Victory

New Life Enterprises, LLC in Lake Geneva, Wisconsin
Ronald Larkin with Brenda Larkin

Type(s) of Victory: Reached a personal goal, Reached a business goal, Helped a great cause I believe in, Closed on my first deal, It was just awesome


Through our local home owners association monthly email, we found out that they had requested that the local township condemned and tear down a property just down the street from us. The house was built in 2006-2007. It was over 13,000 SF with about 10,300 SF of living space, which included over 22 rooms including an entertainment/theater room and a billiards room. It had six bedrooms, 4 full baths and 3 half baths. After only two weeks in the house with a temporary occupancy permit, they experienced a fire. The community security was driving by when they saw the fire and got the residents out of the house. Although they had a company do fire and water remediation, and stabilize the house, through various circumstances and financial difficulties, they were not able to fix it back up and lost the house. It sat since 2007 until now, while litigation and insurance investigations were conducted. In the meantime, the garage and rooms above it were torn down, leaving the main part of the house intact. Last fall, when I found out about the situation, I begin talking to the bank. At first, we were talking about an agreement to buy the house at the upcoming sheriff's sale. However, with a couple of my coaching sessions, one of our coaches suggested I ask about purchasing the note. After some negotiation involving my attorney and theirs, we came to an agreement. The day before the sheriff's sale, I purchased the note and foreclosure judgement for $70,000. In this process I had a full appraisal of the house to determine the completed rehabbed value of the house. The appraisal came in at over 1.1 million, with a possibility of as high as 1.4 million, depending on how it was finished. We hit some bumps along the way however, We did have a successful bidder at the sheriff's sale, whose winning bid was $100,000, which would give us a profit of $25,000 less some expenses. Not a bad wholesale deal. However, the successful bidder had trouble with his private lender and was not able to go through with the deal. Instead of starting all over with another sheriff's sale, we forfeited some of his deposit back to him for which he assigned his winning bid to us. As the lender, we were able to take possession of the property with no additional purchase price, and gain the property with no liens other than some back taxes amount to about $25,000. If we had foreclosed normally as the lender, we would have also been subject to some other liens. However, as of two weeks ago, as a result of the courts confirmation, we are now the proud owners of this house. We have had estimates for the repairs at about 550,000 and about 4-6 months to complete. Based upon the deal analyzer, and upon the final selling price, and after carrying costs (estimated for one year) we could realize a profit between $200,000 to almost $500,000. We will be having an pre-construction open house for the community (since there has been a lot of interest in this property and what was happening to it). We will be marketing this property right away. We have also pledged 10% of our gross profit on this house to our church to support the building program there. The attached picture is of the house as it stand today.


Shout Outs & Testimonials

Over the course of several months as we worked through this process, the different coaches that we talked with helped us tremendously. They gave us the ideas to pursue, and encouragement as we faced the various obstacles along the way. The local fortune builder group were also a great encouragement, and have been a great support in this process.



* These examples depicting income or earnings are NOT to be interpreted as common, typical, expected, or normal for an average student. Although we have numerous documented successful deals from our coaching students, we cannot track all of our students’ results, and therefore cannot provide a typical result. You should assume that the average person makes little to no money or could lose money as there is work and risk associated with investing in real estate. The students depicted have participated in advanced FortuneBuilders’ training and coaching. The participants shown are not paid for their stories; however, some of the students depicted may also be a FortuneBuilders' coach, and our coaches are compensated for their services. We believe in full transparency, so please read our Earnings and Income Disclaimers and Terms of Use.