Take Action

Here’s a true story for you.  One were we put the work into the deal and another investor put up the cash.

A while ago we found a couple of duplexes on an REO list.  We took action by driving 2.5 hours to quickly check the property’s out.  The duplexes needed work however they were in pretty good condition.  We immediately put in an offer that was quickly accepted.

We purchased the two duplexes with two exit strategies.  We would either fix them up, rent them out, and then sell them or just sell them to another investor.  Since the properties were 2.5 hours away and our investors wanted quicker cash we put an ad on Craig’s List to sell them.

We immediately had a lot of interest however most people who called wanted us to hold the note and finance them because they didn’t have enough money to pay cash.  Cash was necessary because banks don’t generally loan money on a property unless it is fully functional, i.e. livable.

After a few days we got a call from and investor with access to cash.  He made us an offer lower than what we wanted which we accepted since our exit strategy was to sell them as quick as possible.  Contracts were prepared and sent to this investor.

The problem was he didn’t take action and sign them right away and return them with his earnest money.  He continued to let us know he was interested in the property however without signed papers and earnest money we became concerned.  After a couple of weeks of being patient I talked to him and let him know that while I wanted him to have these properties we had to put them back on the market until he took action.

Over the next couple of weeks I tried to contact investor one with no success.  Well as luck would have it another investor contacted me, went to see the duplexes, and made an offer on the properties.  We accepted his offer and sent him the paperwork.

I liked investor one, he seemed like a very pleasant person and since I couldn’t get him on the phone I implemented one of my new skills and texted (yeah I was just learning this skill at the time) him that we had another offer.

Now investor one wanted to communicate.  It wasn’t an hour before investor one called me indicating he was still interested and wanted to know how he could save this deal.  (He knew he was losing out on a great deal.)

Unfortunately we had a signed and accepted offer from investor two.  So now, investor one was in the backup position because investor two had taken action, signed the contracts with a quick close date and he had sent in his earnest money.

Investor one was distraught, he became very communicative calling me telling me he really wanted the properties and asking was there anything he could do to save the deal.

The point of this story is that both investors recognized we were offering a great deal, however only one decided to take action to secure the opportunity.  Investor two secured himself a potentially very lucrative deal.  I estimated he would make as much as $100,000 once the properties were rehabbed, rented out, and refinanced or sold.  A great pay day for him!

Investing always involves some level of risk which must be weighed against the potential gains.  All Successful people take action, not reckless action, educated action.  Sometimes we lose more often we win.

By the way, our investor partner and my team each made about $8,000 on this deal.  That’s $16,000 total profit.  They had the money and about 4 hours of work in the deal and we had about 20 hours in the deal.  Life is good for those who apply knowledge and take action.

Remember this:  People say knowledge is power.  They are wrong!  Applied knowledge is power.  Nobody ever hit a home run unless they swung the bat, no one ever struck oil unless they drilled a well, and no one ever made a basket unless they took the shot.

Everyone in this story who took action made money.  Take action or stand still, which do you think serves you best?

Investing in yourself is the safest investing you can do and it also offers the highest potential return on investment.  The only risk is you don’t apply the knowledge you’ve learned.

Having the right mindset and a great coach can make all the difference so invest in yourself and check out this opportunity to get both by clicking here.

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