“$3,500 IN FOUR HOURS” (Despite Bad Credit and No Cash)
CASE STUDY ONE
I believe the best way to learn any system or process is to study the success of those who have gone before you. Over the next few weeks, I am going to send you “Case Studies” like these, of Joe Crump students who have found success as real estate investors.
Some of these successes will be modest and some will be absolutely amazing. All of them are true, documented letters from folks who have taken my ideas, techniques, strategies and step-by-step systems and made money.
There are at least three things that I want you to learn from these stories.
Learn Exactly How It’s Done
• One, I’d like you to discover the many different ways that you can make money in real estate and learn some of the very powerful techniques that I teach my students.
• Two, I’d like you to understand what a powerful, life changing, mind altering, heart expanding experience people have when they take a chance and stretch their limits.
• Three, I hope you come to realize that you don’t have to reinvent the wheel. I’ve already been there and experienced all of these things. You can get the knowledge that I’ve gained from my own extensive experiences in real estate PLUS the added bonus of the experiences that all of my students have had across the United States, Canada, the UK, Australia, New Zealand and in many, many other parts of the free world.
The very first letter is from a young fellow named Dave Franklin. I remember when he came on the coaching teleconference call and told the group what he had done. I loved hearing that excitement in his voice and I knew right then that this kid was hooked and he was going to make it happen!
Let’s hear what he has to say:
I would like to share my first deal with you and hopefully it will assist someone else in a similar situation succeed.
After receiving your course material in July I was determined to do ‘something’ with the material – though I had no idea on where to start, no money to start and lacked the self-esteem to really and truly pursue my investing career.
But then it happened… I closed my very first deal August 30 and netted $3,500.00
In your material you suggest running various classified advertisements to reach investors and sellers. Well, on a very tight budget, running classifieds that were getting very little response (1-3 phone calls a week) can become expensive and discouraging.
I had run ads for nearly a month proclaiming that ‘I Bought Houses’… so did eighteen other investors. I began to question my motives, myself, your investing program and the possibility of doing anything relating to real estate investing.
At this point in my short investing tenure, I had experienced two foreclosures so my credit was shot and traditional financing was just not an option. I had entrusted another ‘mentor’ to lead me into the right direction and shortly found out that my interest was not any where on his priority list.
We had an agreement where I had to purchase 4 homes from him and he would show me ‘everything about the business’… not the case.
My first successful transaction took a total of roughly four hours. Since my classified advertising had been unsuccessful, I decided to ‘farm’ the areas that I desired to invest in.
On August 20 I entered into the Kensington neighborhood at 10:40am where there were 3 properties for sale by owner on the same street, all of which were owned by the same company. I immediately parked my VW and began inquiring with the labormen about the properties and to my surprise, the owner was 3 houses down at another of his properties.
I then introduced myself to him. I told him that I was a real estate investor and that I may be interested in his property.
Everything was going great at this point.
“He gave me a tour of all three homes – 2 were in need of renovation and the other was nearly completed, 95% of the way.”
The owner agreed to meet me at his office so that I could gather more information about the properties. We met at his office at 11:30am and I assessed all necessary repairs with the profile sheet that you supplied (he had no problems answering any of my questions).
I am a part of the local real estate investing trade association and decided that I would try something a bit different. I typed out the profile forms and the information from the four homes (took about 40 minutes) and e-mailed the secretary to send a broadcast e-mail to all association members.
The following morning, I received a phone call at 9:12am from a gentleman who wanted to view the properties. I told him that I would call him back in 15 minutes to confirm a time, which I did. We met at the properties at 10:00am.
I was really nervous because I didn’t know if the guy was legit, I had never met him before and did not know if he was even qualified to buy… but he *was* qualified indeed.
Once he arrived, we toured the properties for 47 minutes and he wanted to take them immediately. He agreed to pay CASH for all three properties for the sum of $116,926.00. On my profile forms, I had indicated separate prices for the properties but that the owner was willing to sell them together for 116,000.
I did not even have a contract on the properties! The owners said that he gave $500 referral fees and I’m thinking to myself “$500, what can I do with that”. We all met at the owner’s office at 11:30am to draw up the contracts. My investor buyer was running a bit late and the owner pulled me to the side to ask “how did I plan to be compensated”.
Not to sound unprofessional, I simply said “that I had it under control”. Once my buyer arrived I told him my fee of $3500.00 and he agreed.
“I truly think that if I had wanted $2k even $3k for *each* property, this guy would have agreed.”
After some oral negotiations, I discovered that an expense had to be covered for $926.00. My investor buyer had no problem with that and offered $116,926.00. He wanted to close in a WEEK.
Here is the interesting part… remember, I do have a contract on the property – I didn’t know how to fill the purchase agreement out… THE OWNER DID IT!
The contract was written with me as the buyer. All I did was supply the forms (all of which are from your course) and listened. Once the purchase agreement was completed, the investor and I filled-out the Assignment of Contract form and made copies of all the paper work. Then we set to close in 7 days.
The moral of this story is… JUST DO IT. If you don’t understand something, there is someone that does. Both the investor and seller were both impressed by my “tender young age of 22″ conducting business. Both of them wanted me to keep in contact and continue our relationship.
By the way, the seller of the properties happened to own a mortgage company, title company and real estate acquisition firm… so yes, I will say $3,500.00 is not that bad for 4 hours.
Thank you so much Joe.
This is the first of many, I’m preparing an offer on two properties today… more on those later.
NOTE FROM JOE: Now, Dave, made a few mistakes here. He left himself open to be cut out of the deal because he didn’t have a signed contract before he brought in an investor and he could have made even more money on the deal than he did.
But it worked out, even though he made mistakes and didn’t really have a firm grasp on the basics. There is magic in boldness. Next time, I expect he won’t make the same mistakes.
This next letter is from Gary O’Neal from Charlotte, North Carolina. He jumped right into the program and made money within 45 days of the time he started.
“I walked away with $6,500 on MY FIRST DEAL!“
CASE STUDY TWO
I wanted to take this opportunity to thank you for your help in getting my real estate investing career off the ground.
As you know, I have been investing in rental property for over 15 years. I decided that this was the year for me to expand my efforts to full time investing and in order to do that, I needed to begin to generate CASH FLOW immediately.
I decided to order your book and sign up for your personal coaching.
“It took only about 1 month for me to find my first deal to work on.”
I found a nice 3 bedroom house that the owners wanted to get out of.
The owners had a second mortgage so the loan balances were right at the retail value of the house. With help from you, I formulated an offer to buy the home “subject to the existing loans.”
I offered to take over the payments if they would pay me $6,500 at closing. They were anxious to move into their new home and they agreed to my offer!
NOTE FROM JOE: This surprised me… usually you don’t get money “up front” from the Seller on a deal like this, you make it on the back end… way to go, my friend. END OF NOTE
I am now in the process of locating a tenant buyer for the property. I am going to lease it with an option to buy. I will charge at least $2,000 as a non-refundable lease option fee and have them pay a monthly rent that will cover my monthly costs.
So I walked away with almost $6,500 on MY FIRST DEAL! And will make another $2,000 when I lease option it out… not to mention the tax benefits (depreciation) and the market appreciation on the property.
If the lease optionees don’t buy the property in 1 year, I’m going to sell it to someone else and make even more money.
It was great to have your help in getting this first deal done all the way to closing.
You have been extremely responsive and helpful in everything that we have worked on together.
“I have already found my second property and purchased it (again with NOTHING DOWN).”
I am meeting with the tenant-buyers tomorrow morning to collect their $5,000 lease option fee… I got this new property lease optioned really fast.
I want to thank you again for all your help.
I wish you much continued personal and professional success,
Charlotte, North Carolina