Jeff Dimock has been part of the tribe for a little over a year, and he’s consistently closing 2-3 deals every month. October 2017 was his biggest month yet – four deals for $54,000 – and we’re going to dig into how he’s doing it so that you can do it too.
For Jeff, the difference between closing $5k deals and $10k deals is mindset – if you expect to make $10k from every deal, you’re more likely to do what it takes to make it happen. Remember that all good real estate deals begin with a smart purchase, not how much you sell it for.
Vacant land deals:
- Jeff found this property on the county’s tax delinquent list, which he receives in the form of a Microsoft Access database.
- There were probably 75,000 entries on this list, so Jeff hired someone from Fiverr to make some sense out of it.
- Jeff sent out plain postcards to the remaining properties on the list, and he got called back by the owner of a vacant lot.
- They said they were planning to list the property for $40k, but would sell it to Jeff for $35k if he could do it quickly. They ultimately agreed on $33k.
- Jeff looked at the price of construction (Jeff’s rule of thumb is an average of ~$100/square foot) and the price people are selling newly built houses in the area (~$450k), and this seemed like a great deal.
- Jeff pitched the property to his cash buyers and a lot of people were interested in it. He got all the way to closing, and then the closing attorney tells him that the buyer is backing out of the deal. However, there was so much interest that Jeff reached back out out to his buyers and said he was taking offers until Sunday – one of his buyers offered the full asking price in non-refundable earnest money within 24 hours.
- Jeff sold the property for $50k, earning him a $17,000 assignment fee. Another similar vacant land deal earned Jeff an additional $20,000!
Now Jeff is reinvesting this money into the business – he is planning to hire a regular virtual assistant and acquisitions manager over the next two months so that he can continue generating $50k every month.
- Thou Shall Prosper: Ten Commandments for Making Money by Rabbi Daniel Lapin