Dan Kennedy talks about a great deal about the joys of living in a business with bad math – meaning the odds are tilted in your favor so much that you can screw up significantly and still come out smiling.
I always thought that his concept works phenomenally well with our kind of business – you know like buying really low, fixing it and selling it at full market value – if you have $30,000 to $50,000 in equity after repairs – you have enough room to underestimate repair costs, give generous seller concessions, help with down payment assistance, buy appliances, pay bird dog fees and still makes tons of dough at the end of the day.
That is bad math at its best.
How hard it is to find deals like that – one of my appraiser friends, who I have been dogging for three years now to do real estate finally got tired of his yo-yo income due to the drying up of the mortgage refinance market and bought his first single family house for deal.
Six months ago.
Now he has sold two houses, one is under a lease and he is about to deal two more.
Net profit to date is around – realized and about to be booked – is around $77,000.
Not bad for a rookie!
Nora found a house yesterday that has around $50,000 in equity – after completion of repairs.
One of my Gold Plus students just closed on his first deal on Friday – I am going to ask him to stop by and do an audio recording with me so everybody can listen and learn a very important thing from Mike – leveraging your time to maximum profits. Our net was around $40,000.
Got a call this morning about the impossibility of finding deals – good deals – I can pretty much close my eyes and find two good deals in my sleep. No kidding.
Do you know where the good deals in your area are? And more importantly have you laid down a path for these good deals to find you? Instead of you finding them!
I had an interesting talk with new Apprentice member Jeff Herbel from West Virginia this morning – we are going to try and get everybody on tape before we start this whole program – so we can look back 120 days from and have a good laugh – and the conversation was pretty amazing. We both agreed that making $400,000 in your first 12 months in real estate is a challenge but all you need is 10 good deals. That is pretty much the number. 10 good deals in 12 months.
More about it later on how to find those 10 deals or better still how to make sure that 10 good deals find you!
