I want to start with a crazy one because it highlights the potential of real estate.
Let me give a disclaimer right here at the beginning.
Most deals among our students are not this big. Most students average deal size would be somewhere between $5,000-$20,000 (which is still really good, especially if you do one or a few each month). Several students have had six figure deals like the one I’m highlighting today, but it’s more uncommon. Still, it’s fun to hear the stories when they happen.
This student joined the Flip Hacking Course & Mastermind when he was overseas as a missionary. He was wanting to generate extra income to eventually replace the money he had raised to go overseas.
Here are the details:
Profit
He made $140,874 on this deal! Wow!
The whole Flip Hacking Community was cheering for him when he shared with us the details!
Usually profits of this size are found in areas of the country where the median home price is quite high.
He contracted the property for $165,126 (didn’t have to use his own money or debt), listed it for $181,000 and he sold it for $311,000.
The seller wanted the service this student was offering, which was speed & convenience in selling her home. She didn't want to list it or try to find a buyer herself. She was willing to sell at a discount to have an investor purchase it who would take it off her hands quickly in as-is condition without requiring repairs, which is exactly what this student did. Usually this is the case when the seller has owned the property for a long time, it has deferred maintenance, and even at the discounted price, they are still making quite a bit of money over what they paid for it years before.
When he contracted this property, you can tell by his list price that he had no idea that buyers would pay as much as they did for the property. He had over 70 people contact him about the property. He didn’t sell it to the first person that offered him his list price. Wisely, he waited & took offers from everyone & then chose the best offer.
Commenting on this, the student said, “When dealing with buyers, having clear terms and a clear understanding of why you have those terms is really important. And from what I can tell, it seems that the terms Chris offers in the course are really solid and will help us build strong businesses for the long haul!”
List
He found this deal by marketing to a vacant homes list. This is just like it sounds. You find a list of vacant homes in your community and reach out to them.
A vacant list is a good list to market to because, if the home is vacant, it could mean the owner would like to sell. Perhaps they had a tenant wreck the place & it’s sitting vacant while they figure out what to do with it. Perhaps the house is in disrepair from years of deferred maintenance piling up & they’re thinking about selling it. Perhaps the house has been inherited by heirs who live out of state & they’re trying to figure out how to sell it remotely.
Whatever the situation might be, the vacant list will often put you in touch with owners who would be interested in selling.
Channel
Texting.
The student contacted the seller with a text asking if she’d be interested in selling the property.
Timeline
The student made the first contact with the owner of this particular house in May 2021. He followed up consistently after that (a big key to success in this business). Later that year, in December 2021, the seller was ready to sell & they went under contract & closed 2 weeks later. Reflecting back on this, the student told our community, “Follow up, love on people, and make offers. I think I have over complicated this business but it really is pretty simple.”
Cost
The only costs the student would’ve had to get this deal are his software & his lists, both of which are fairly cheap. He didn’t have to come up with $165,126 to buy the house.
Takeaway
As one of his takeaways after this deal, the student wrote, “You don’t have to know a lot about real estate to get a great deal. I knew I had a good deal on this house based on my basic comps of the area. But the buyers and builders who know a lot more than me, knew that it was an even better deal and their offers reflected that.”
This student sent the seller additional money after the deal was closed just to let her share even more in the blessing! How cool!
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Like I said at the beginning, this kind of deal doesn’t happen every day. But it’s an example of the potential of real estate to provide extra income for a family in ministry. I’ll share more student deal highlights in the days to come. If you’re interested in learning more about the Flip Hacking Course & Mastermind, click here & I’ve recorded a video to tell you more about it along with testimonials from our students.
