Transcription
We have a petition prepared for an order to sell the property. So, you know, it's our intent to do that.
So, so how would you like me to proceed? I can obviously get you an offer.
Take those pictures and send me copies of it. So, among other things, I can show them to my client. It would make your offer more meaningful if they saw what it looked like, you know, cuz I'm sure it doesn't look too good.
Okay. Well, I will definitely do that.
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Hey YouTube, for the longest time you've been wanting me to document a deal from beginning to end, all the conversations, all the interactions, what went into finding that deal all the way to getting it closed. Well, I just had an acquisition guy run by this house. He happened to talk to a neighbor, get the phone of an attorney. I actually just got off the phone with the attorney, and he's given me permission to take a look at this house. He wanted me to send pictures over. So, I'm going to document this from taking a look at the house, negotiating with the attorney, hopefully getting this thing under contract and see if we can get this from beginning to end. Let's go take a look and hopefully we can get this thing under contract. Let's go.
This house is vacant. How do we know? One, you got really tall grass, but two, you've got some uh stickers from the asset management company. This is a a prime indicator that the house is vacant because the lender has found that it was vacant. They came in, winterized it, wanted to secure their asset uh to so that there's not any further damage. So, I'm guessing this is lock. Oh, well, let's see if we can go in. I was told that there was a lock box on the back. Yep, that's locked. So, let's go to the back. Hopefully we won't draw the eyes of the neighbors and freak people out.
Let's give it a try in here. I don't know. Ah, got it. All right. I don't know what we're in for, but hopefully it's prime. So, this is a a prime vacant special right here. Uh hoarding situation. Obviously, this seller before they passed away, I'm guessing that's the situation here. Um, they probably were going through some mental health. A lot of times people at the very end of their life, they they're going through a lot. And that's why we do this to try to help people out that can't help themselves. So, let's take a look. Obviously, we've got uh mail for days here. So, let's just kind of go through this house. I'm going to take some pictures while I'm here so that we can go ahead and start shopping this deal out and hopefully back our way into a deal. But this house, it it looks really dirty, but uh in the grand scheme of things, there's a lot of really good things. Like, we got a a really good fireplace here. We got some really nice paneling back from the 50s and 60s. I don't think that's the cheap stuff. That's like a solid wood. Yeah, that's solid wood. So, you got some nice paneling. You could actually paint that. Make it look really, really nice pretty quick. So, surprisingly doesn't stink too bad in here. I figured it would smell a lot worse. Ooh, spiderwe. So, it looks like the house kind of extends this way. Check out this oven. got that like green color that was popular back in the day. I actually like that. I think it looks cool.
It's coming back.
Yes, it is back. We do have a newer furnace. Austin, you want to check this out? So, these are the things that you need to look for in a house. We do have a newer unit. It looks like some of the the components are missing. Uh but hopefully we could salvage that if we end up flipping this. I don't know what we'll do. Maybe we'll assign it or something. But so nice living room. We got this sign. Danger 70-year-old on premises. Nice. But again, we're really messy in here. And it almost looks like a time capsule. We got like the '9s desktop and all this old furniture. But I love this feature. Come look at this rock wall. Austin. That's pretty cool. That could look pretty slick if you if you redid this house. I love the midcentury thing. And another tip, let's say that we took this property down. We bought it. instead of having an investor open and just have everyone come. Now, it would be smart to spend 3 or 4,000 bucks, completely clear this out, maybe even do a light clean, which sounds counterintuitive, like the house is gross, but if you make it present well, smell as good as it can, um you'll get a higher offer. So, we might do that. I'm not exactly sure at this point, but you can just see how much of a hoarder this person was. Like, look at all these letters. Like all these are are bank statements, hospital statements from what I can tell. And it's just like sometimes people cannot get out of their own way. They keep all this stuff. They just can't address the issue. And this is why I'm so keen on on reminding you guys, you have to go after these people. Not just so you can make money, but so that you can help them. Like look at this. This person isn't able to take care of their finances. I mean, you just have every financial statement known to man. There's probably a a mortgage statement in here somewhere that we could find that would probably help out knowing what's owed on it and stuff, but
scavenger hunt.
Yeah, scavenger hunt. You guys' be surprised how many times I've dug through things like this to find find statements and know who the lender is. You can tell this bathroom's had some some uh moisture issues. And just come in here and look at how these sellers live and why it's important to help them. Look at the ceiling and how how disgusting it is. Look at the the the tiles failed a long time ago. Like people live in these conditions, guys. This is why we need to get there early. Help these people transition to a more healthy living environment. This is just sad. No matter how many times I see it, it it's just shocking because you just don't know what other people are going through. Nothing special in there. And then I'm guessing this is where the seller hung out. They actually got certificate of appreciation to the seller here. I don't know what it's for. Probably not cleanliness.
Bro's got jokes. But just look at this. Like no matter where you go, we've got just stacks on stacks of mail. It's just interesting. Like even got all kinds of notes on here. Like this guy's been fighting this battle for a long time and just couldn't find a way out. hopefully a niche someday soon. We'll have a predictive foreclosure data to where we can find these people way before notice of default. Start looking at, you know, when credit dips happen, when there are some anomalies that might suggest someone's in foreclosure. This guy needed help three, four, five years ago. Um, and we just got to find a way to do that. So, if you're looking for a community that teaches you not only how to get the data to find these people, how to speak to them, how to overcome their objections, how to get these deals to the finish line, the niche community is the best training in the world. I'm not biased about it either. Um, we're really really focused on this type of seller, these types of situations to where you get to the point where you can sharpen your axe enough to where you can be a pro at this and you can end up not only helping so many sellers just like this, but help your own family with your income. So, if you want to check out that community, Austin will put the the link in the description there. But, so we've checked it out. Um, I would guess this thing needs every bit of an $80,000 remodel. Um, I I would guess I haven't looked at the comps, but I would say they're probably 250ish. Um, and I looked online, the the opening bid for this house is 17 grand. I don't know if that includes uh any second mortgages or or leans or anything like that, but it seems like there's going to be some opportunity to to make a deal. So, Austin, let's get out of here and uh I need to get these pictures uploaded to Dropbox, send them over to the attorney, and see if we can get something going with the family.
All right, we are back. Um, I actually uh briefly talked to Mark a couple days ago. He said he was going to be in court uh and would get back to me. Well, I wanted to report back on um what has transpired. Obviously, last time I I sent this email with the pictures. I was hoping to hear back from him. That was Friday the 18th of July. Today is Wednesday, uh, July 23rd, 3:13 p.m. I got a email back from Mark. Um, and I'm just copy pasting this from from Gmail. Says, I have talked to my clients. They are interested in selling the ALSA property to your company. They would also sell the automobile that is located in the garage if you can obtain an offer for it. Uh, they want to abandon the furniture and effects that are located in the house. Do you want to make us an offer uh for the house and car? Uh, so I will go and and make an offer for or put together an offer for the house. I I really don't like sending off offers um mostly because we become a commodity at that point. Um, and and I hope he doesn't shop this, but I mean it seems based on this comment, I have talked to my clients, they're interested in selling the Alsa property to your company that maybe we've built some trust by going and getting the photos. I I don't know. Um, so I'm going to spend some time here in the next couple of hours um sending Well, I might do this shortly. I might put this together now, actually. Um, I want I want to get this one while I can. So, uh, let's let's let's in the next couple hours put together an offer. Uh, maybe shortly and see what we can put together.
All right. I went ahead and put together an offer. It's been hour and a half or so. Um, and I want to kind of share with you what I wrote back to to Mark. Um, so here's my email I wrote back to Mark. Again, this is on the the 23rd of July. Says, "Hey, Mark. Uh, thanks for getting back to me and helping coordinate everything with the family. Uh, given that the foreclosure date is coming up on August 14th, notice I'm leveraging when the sale is because I think it was yesterday or the day before it actually went on the foreclosure list. So, this is going to be important. Uh, given the foreclosure date is coming up on August 14th, my main goal is to keep this simple and stress fee free. Here's what I can do. I'll pay 61,200 for the property as it sits. Family won't need to move anything out. Just leave it how it is. That is I'll include the car in this as long as there's a title and little info about it. I'll cover all closing cost, usual fees. What your client gets is what they keep. Um, we can close as quickly as you need. Uh, if this works, let me know and I'll send over an agreement. Or if there's something that's more important to the family than just the price, let me know and I'm happy to work with you on special requests. Um, I want to work with you through this process. So, kind of sent over a purchase agreement. Um, hoping that they will agree to this. Like I said, um, I didn't actually attach the agreement to this email on purpose. I said, "If this works, let me know and I'll send over an agreement." So hopefully I'll hear back from them shortly um and we can get this deal under contract. I'll let you know uh when I have an update.
This morning I got an email from Mark and he has told me to send over a contract. Sorry, this is kind of formatted weird. You can't see it. Sorry about that. Um, but this is how it's copy pasting over from Gmail, but in a true uh attorney fashion, they're very short short- windended. So, I sent over the email yesterday uh with my offer 61,200. He said, "Send me a pro proposed contract." Um, so I'm going to get with my transaction coordinator. We're going to put together an agreement and uh hopefully we can get this thing under contract. We shall see. Mark in our last email said he wanted us to send over the purchase agreement. Um, so this is an email from Christina couple hours later, Thursday the 24th here. And she said, "Hey, good morning. Uh, please see the attached purchase agreement for the property located at 37th Street. Uh, please know let us know if you have any questions. I want to show you uh what this purchase agreement looks like, but basically it's a it's a just a common purchase agreement. Uh, so you can say contract date July 24th. Uh, here's the seller passed away. There's me, East West Properties. This is the property address. um closing or purchase price 61200, earnest money a,000. Uh, we're going to close here in a couple of weeks before the sale. And here's just some basic information um on the contract. This is a three-page contract. Uh, we have said that the property is vacant. I went ahead and signed this a few minutes ago. Uh, so let's see what we come up with. hope hopefully he will pass this through to um get the deal done.
Okay, evening uh July 24th, uh Mark responded. Uh he said see attached court order to sell. So he's been working with the probate court. Uh, they have approved the heir uh to sell the property. Uh, which is good. Uh, that allows us to buy it. And I want to share what that court order looks like. Okay. So, you can see that this uh is in Howard County probate. Um, basically the there's also you can see that they're just going through and saying, "Hey, these properties of which they have a few. They got a couple of vacant pieces of land and stuff. Um, and this property on 37th, uh, they give the personal representative authorized, uh, to sell the property, um, using the appraised value. I wonder how much it's for. Oh, they have to sell it for three quarters of the appraised value. So, we might have to get some sort of document from a real estate agent or maybe Mark can just draft up uh an appraisal based on on his eye. Uh, but we are going to have to do that. Uh, but that's kind of the next update. We don't have a signed purchase agreement yet, but he's sending this this order to sell uh which is encouraging and hopefully we can take next steps soon.
All right, it's been a few days. uh since messaged or talked what is this like a a diary, right? Uh last I said something uh let me go back in my list here. It was the 24th of July. Um Mark said he was going to see attached court order to sell. I showed you that. Today is Tuesday, July 29th. Um, we finally got a signed purchase agreement which is really great. Um, the heir, her name is Holly, uh signed that purchase agreement, got that over to Christina, which is wonderful. Um, we also got another email from Mark. Um, he since we have the purchase agreement now and the purchase price, I have filed the petition to approve the sale uh with the probate court. I will be preparing the deed and I'll have Holly come sign it. Okay. So um he has gone ahead and submitted our purchase agreement to the court uh 61,200. He has given them an indication that that is a fair price based on the condition and and all that type of stuff. Um, and we will go ahead and uh hope that they approve the sale with the court and um after that we should uh very quickly be able to close on the house and and take the next step. So, here's Let's see uh how it goes and hopefully it'll we'll come out on top on this one.
So, I told you I was going to keep things real and document every step. I'm lisping because I just literally got a root canal an hour ago and my face doesn't work. But we're to the closing table. Um, and I'm going to just be as real as I can be and and show you the closing even though my face uh currently feels like nothing and I can't talk right. Okay. But I'm closing with a service called Qualia. Um, we actually have KC Elite Title um is who we're closing it through. As you can see, we're closing on it for $61,200. We've got uh a credit that goes towards the attorney uh that we're paying for that went through this foreclosure process. Then you have some applicable fees and different uh title fees, stuff like that. So for a total of $62,500. Um, this property has been a journey as you guys have seen what it takes to go step to step to step to step. And what I haven't told you yet is that I have sent this property out to some of the the teams that help me dispo properties and I have this under contract with them to sell and they just found a buyer minutes ago uh for $107,000. So we have a $62,500 purchase price on this property spread of $45,000. I would imagine there would be three or $5,000 and other expenses and things that'll pop up, but this is about a $40,000 profit. So, I wanted to go through and actually sign these documents with you now. So, let's go to the next page. Okay. Obviously, it has appraisal value. This was part of the the probate process. We'll have to redact some of this for the YouTube video. Um, taxes, all that type of stuff. So, we will go ahead and sign. See what else they need for us. A go ahead and click on this to initial it. Couple more signatures and we should be done. We're actually buying this property cash. Um, we're planning on taking it down today and then um we already have the buyer lined up. they should go ahead and close on it here in the next couple of weeks. Uh, so we decided to take it down with our own cash, save on some private money, lending fees, save us probably two or $3,000.
All right, I think we are finished. So this is a first. Um, we obviously closed on the house uh 61,200. Um, just today we got the letter was written from Mark on August 15th. We received it on August 21st. We went ahead and closed on the house uh 61,200. We had it um pre-sold uh to a disposition uh place here in town. They had already sold it uh for 107,000. So, we were going to make what? 45 gross, which is great. But we just got a letter from Mark. And I'm going to read that to you. This has never happened uh to me before, so kind of a little frustrated. So, let me read this to you. Dear Michael, I received a $43,000 check from KC Elite Title uh representing proceeds of East West Properties LLC for the purchase of the property on 37th Street from the estate of Thomas Alup. The trouble is the Alip estate was to receive 61,200 plus the cost of securing the probate court's approval of this sale. It appears that the title company deducted 17,500 from the sale prices uh representing the deed of trust payoff, the c property taxes, and the title company fees. According to the party's agreement, the sales contract, East West Properties, is to pay off all these expenses. So, the estate would net 61,200. Here are copies of both the sales contract. Um, please see that the 17,500 balance due to the estate from this sale plus the $300 probate expenses to be paid. So, I'm really confused on this. In our purchase agreement, uh, it clearly states that we're going to pay off the deed of trust, which we did. They owed like $17,000 on the house. Um, and then in every situation ever, our money to close the sale, um, goes and pays off that deed of trust with the lender, and then they get the remaining balance. But for some reason, he's thinking that we should pay off the 17,000 and still give them 61,200, which is not how the purchase agreement is is read. Um, I just got off the phone with my title company. They agree with me. Um, so these are the things that happen. Real estate's a roller coaster, right? And you can tell that I'm a little frustrated because, you know, through this whole process, we've documented, hey, we're going to go get the purchase or the pictures for this house. Oh, let's get the purchase agreement in place. Hey, let's get the court approved sale. Um, let's go ahead and buy the house. Hey, let's go ahead and close on the house and sell it to someone else. And then things like this pop up that are unexpected. This has never happened to me before to where an attorney is basically saying, "Hey, look, um, you didn't pay us enough money." Even though the funny thing is that this attorney, we we the title company sent them over the documents. Um, and the attorney actually gave the documents to his client, had them signed them. So, it's like if there was a problem, he should have addressed it then, not now. I mean, so anyway, uh, we're going to have to navigate this one. I I don't think that they're owed any money uh at all, but we're going to have to see what happens. Hopefully, this thing doesn't blow up somehow. But either way, we already own the house. Uh, we got it got it uh sold to someone else. We're going to make a good profit on it. But just want to show you in real time that these things happen. uh and and you're going to have to come up against challenges and you're going to have to overcome and learn new things and that's that's part of real estate. Uh Christina, my transaction coordinator and I have this ongoing joke. Uh, we always say if it's a new type of deal, this is one of those that like it's just like a new thing that you have to learn and you know this particular deal with this attorney, this is one of those that you know. So anyway, hopefully you've gotten some value out of this process, just kind of seeing uh the inside look at, you know, all the different messages and the the process of of getting this deal. Uh, and you can apply that to your business. And there will be challenges, there will be frustrations. Uh, but you keep pursuing these, you keep uh persevering, the victory will come later.
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