Shawn & Lorena Simpson Victory

 

Shawn & Lorena Simpson Victory

Styl Properties, Inc. in Omaha, NE

Type(s) of Victory: Reached a personal goal, Helped someone else achieve a goal, Helped a great cause I believe in, Paid it forward somehow, Found a great team member, Closed on another deal, Sold another deal, It was just awesome


This property was the most challenging but we also learned the most and got to give back as well. The end result of this property was that we wholesaled to a family who needed bank financing and still profited $12,500. The Story: The seller called me off of my bandit signs because he wanted to sell his house which was in Louisville, Ne, a town 20 minutes outside of Omaha, Ne. He mentioned he owned it free & clear and wanted to move back to Georgia to be with his mom. Eventually the story would change and they ended moving down the street into a trailer but that is besides the point. From speaking with the gentleman I learned that even though the property was built in the 1890's he had done a lot of updating. The roof, hvac, siding, kitchen were all fairly new and in decent condition. He mentioned he wanted $70k for the house. I did some research on the property while we were speaking and found out that the properties were going for around $120k-$130k so I made an appt with him. To make a long story shorter, we put it under contract for $52K with a closing date of 45 days. It roughly needed about $10k in work so I decided to put it on Postlets for $69,500 CASH BUYERS only just to see what would happen and see if I could wholesale it for that. I had no interest except for 1 lady that kept insisting that she should buy the house for her family and that she was pre approved for a loan for the $69.5k. I tried to shy her away because we wanted a cash buyer but she was pretty persistent. Through the process we noticed quickly that Quicken Loans sends out pre approval letters with out doing much homework on the client. So that ended up being a dead end. She found a different lender that ended up being a blessing not only to her but to us as well. Long story shorter, the seller gave us access to the house so that we could fix the repairs needed so that the the appraiser would go through without any red flags. All in all the between the buyer, lender and us spent about $4000 out of pocket to fix the major repairs so that we could close and get the buyers in right before Christmas. We all donated to the family because after the repairs they had no money to provide a Christmas for their kids. How did we make $12,500 on a bank financing wholesale? After putting this under contract for the $52k I went back to the seller and explained to them that we would like to buy this property and rehab it and make $30k on the back end but there is this family that really would like to move into this house. I told the seller in order to do that we need to redo a P&S Agreement in the new buyers name and that since they need bank financing this will take longer than expected. In order to compensate you for the time, if they would agree to pay us $12,500 out of there proceedings of the sale then we would rewrite the P&S Agreement in the seller and the new buyers name for $69,500 which will leave the seller with $57K instead of $52K. They were more than happy to do that since they were getting an extra $5K on the deal. I then had them sign an addendum to the contract so that we could get our $12.5k and the title company wrote us a check for $12,500 out of the proceeds of the sale. W learned a lot from this deal. Most of all we learned to keep an open mind. There is always one buyer. CRUSH IT!


Shout Outs & Testimonials

I have to give a shout out to our new Lender/Friend because she knew all the ins and outs of the mortgage business. She also was willing to pitch in and give this family a Christmas. Without her this deal probably wouldn't have been done.



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