Money comes. Money goes.
But if you can at all help it, you should keep it from leaving too often. It’s one of those things you actually miss once it’s gone.
What to know how I made $5k in 7 days?
Well, Preston Ely here and this is what happened…
A lead came in for a mansion in the projects. You’ll know this type of house because it will look like that pics above but like 900,000 times bigger…
Side Note: Be careful with these. They may fall apart on your head. Always wear a construction helmet when entering a this type of mansion. But also (on a serious note), just because 700-square-foot houses average out at $100 per square foot, does NOT mean 4,000-square-foot houses average the same price per square foot. They don’t. The price per square foot generally DROPS the larger the house. I’m referring specifically to property in low-income areas.
Back to what happened…
So, we immediately put the mansion under contract with a right to inspect – and cancel if we don’t like the inspection. (By the way, we write all our contracts so that the inspection period lasts TILL THE DAY OF CLOSING. And it’s written pretty inconspicuously. Bet you wish you had our contract.)
We raised the price of the property $20,000 more than what we contracted on it for and posted the property on a site that lists rehabs. It sold in literally a few hours. Closing was to take place in a few weeks.
So how did we get paid in less than 7 days, and, more importantly… how can YOU?
Well, we told the interested buyer that he was one of MANY people interested in the property and that he could have it if he bolted over to our office with a $5,000 deposit (the deal was that good).
He came over immediately, signed the contract and wrote out a check for $5,000 directly to our corporation (NOT the title company). Non-refundable. (There’s a secret to getting people to do this, but that’s for another lesson.)
If you don’t have a corporation, simply instruct buyers to write deposits out to you personally. Notice I said “instruct” not “ask.” Expect them to comply, and they will comply. Act like a sissy when you “ask” and they will treat you like the sissy that you are and tell you to go pound sand.
But I digress…
Once you deposit this buyer’s money, it is YOURS.
The only thing that could happen requiring you to refund it is if the title ends up being FUBAR. Ask someone what that means if you don’t know. It’s not appropriate for me to write it out here.
You could also run into trouble if your paperwork isn’t correct – so always make sure you have an experienced real estate attorney reviewing your docs to make sure you’re protected. You don’t want some silly mistake in the papers to cost you $5,000.
But, supposing you’ve already cleared the title, you’re gold. Go buy yourself a new pair of jeans. The old ones are embarrassing your spouse in public. She told me.
So that, my friend, is how you make $5,000 in 7 days.
Make it happen.
Say words
Have you done deals with mansions in low-income neighborhoods? Or tell me how you made a quick $5k. Drop it all in the comments below.
Make sure you include in your contract that your inspection period lasts till the day of closing.
Instruct your buyer to write their deposit check to your corporation.
Protect yourself (before you wreck yourself, couldn’t resist) by having an experienced real estate attorney draft or review all of your contracts and paperwork.
Preston Ely
is a real estate investor, serial entrepreneur, life coach, musician and philanthropist. CEO of Real Freedom, Inc, one of the most influential internet-based information publishers in the world, owns the largest Anytime Fitness Gym in the United States, is recording a music album with Atlantic Records, sits on the board of Advocates Of Love Orphanage, and has a non-profit charity assisting the poor and oppressed in Cuba with both their physical and spiritual needs.
With over 200,000 subscribers to his email newsletter, he is rapidly fulfilling his mission on earth, which is to glorify God by setting people physically, mentally, financially, and spiritually free through his music and his message of FREEDOM. Preston is 37 years old, lives in Tampa, FL with his wife Ashley, where he spends most of his time reading, writing, and practicing mixed martial arts.