Step By Step Guide to Buying Real Estate II

I just realized that I never did finish my Real Estate example with Bob.

I told Bob to go to the recorder office and look up all the defaulted properties (properties where people are not making their loan payments)

Then go out and knock on the doors of these houses and ask the people if they were interested in selling their house.

I went to maybe 20 houses with Bob and kind of showed him how to talk to the people.

Bob was working a full time job at the time so he went out on weekends and after work.

I think it took him around 3 weeks, when he found a woman who wanted to sell her house, she just wanted to move and get out.

I went down and talked to the lady and everything she said seemed to fit…

She had a good reason to want to move, she had a place to go, and she didn’t want to hassle with selling her house.

Bob was offering her a very easy way to get what she wanted which was out of her house.

Bob opened an escrow and on Monday the lady signed to sell the house to him, then Bob started advertising the property and on Friday he had someone who purchased the property and Bob got a check for just over $24,000 the next week.

Bob got a little lucky on this deal, closing it so fast and not putting up the money for the loan, the person he sold the house to paid off the loan, so Bob didn’t have to.

But during those weeks he was looking he also got very close to buying a house that had a profit potential of $150,000.00

I was thinking about going in as a partner with him on that deal, and then we would each make $75,000.00

But the person selling the house ended up getting taken by someone who offered them more money and they ended up losing their house and getting nothing. Sometimes I feel like I am really doing these people who get ripped off a disservice by not trying harder to buy their houses, since I know I will pay them what we agree too.