prosper-inc’s posterous

$70K PROFIT FROM TWO DEALS with what we learned from Prosper Inc

So, these are the houses that we have bid on: The first house we got is close to a popular University.  Listing price is $212,900 we put in the bid for $215,000.  In the contract we put in the seller pays $6,450 for the buyers closing costs and to pay for the one year AHS warranty.  We put down $500 for earnest money.  The appraisal comes in today that was done on Monday.  The CMAs on that is $275,000 and $289,000 and it was just appraised at $237,000.  We think we will be able to sell it for just under $300,000.  As I mentioned before this house closes the first week of January.  

 

The second house we bid for is in an upper middle class neighborhood.  The listing price was $399,000 we put the bid in for $410,000.  In the contract we put down the seller pays $12,300 towards buyers closing costs.  Seller to provide one year AHS Home Warranty to buyers.  Again, we put down $500 for earnest money.  The comps in the area range from $525,000 to $600,000.  The unfortunate part for us is that we lost the bid to a soldier that just came back from Iraq.  He wrote the owners a "sympathy letter" which was fortunate for him that the owners picked him over us (the heartless investors just trying to make a buck).  

 

As that door closed another opened up.  Our third bid in another upper middle class neighborhood.  This neighborhood it is hard to get comps for because NO ONE leaves.  However, a smaller house in the same neighborhood with a smaller lot without the extra amenities is on the market for $475,000.  It is behind the best school in Virginia beach, everyone who lives there is retired military and once in no one sells.  So, we found this house on 1/2 an acre, with an in ground pool, koi pond, 4 season room with a Jacuzzi, lots of open space.  The selling price is $390,000, our bid is for $438,000.  In the contract we put down the seller pays $13,000 towards buyers closing costs and to provide a one year AHS with an addendum and contingencies.

The last thing I wanted to mention is networking how it really works.  Lisa and I went to this place called Home-A-Rama which is a new development that is open to the public for a fee.  There are about 20 different houses that you can look thru.  Most people go thru the homes to get ideas on decorating and some actually buy the house.  This year the homes ranged from $250,000 to $600,000.  Vendors who worked on the homes have a kiosk or a spot for people who wish to purchase their product or ask questions.  For us it was to look at the homes and network with loan officers and get information on hard money lending.  

A few weeks later we get a call from the same company but a different guy.  Jason is not only a loan broker but an investor as well.  I briefly talk to him and tell him that I need to speak to my partners.  Well, I am excited at this point.  We finally found someone who will take us by the hand and tell us what we are doing wrong and will help us.  I talk to Lisa (Ayanna was away on business) and we make an appointment with him.  Ayanna's first day back and I go and see him and have Lisa on conference call.  So, he physically shows us his most recent transactions and tells us how he does it.  Both Ayanna and my eyes lit up--to see $30,000 on one deal and $40,000 on another.  

So, we have a few more meetings with him.  It is a win-win situation for all of us.  He gets our business and we get the help that we need.  So, one of us was able to get not only one loan but two thru his creative financing while the other 2 are working to get our credit scores up for another loan or 2, 3, or 4.  Jason has also introduced us to his realtor Holly who has been phenomenal in finding these great deals for us.  As a business we have $653,000 of contracts on the line.  This has only been in the last month or month in a half since we met Jason and Holly and it has only been 3 weeks since we have started putting these offers in.

 

Jeanine, Lisa, & Ayanna B.

Norfolk, VA