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The deal that kept growing......

Discussion in 'Success Stories' started by trevismcconaghy, Oct 3, 2017.

  1. trevismcconaghy
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    trevismcconaghy Trevis McConaghy, REIA REIN Member

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    It has taken alot of digging, alot of ups and downs, but one of my latest opportunities is like a Madroshka doll- you dig a little deeper and keep getting more. Let's explain....

    In 2010, a developer came into my City and put in 10 modular homes. Of those, 7 were sold. The remaining 3 were listed for sale but never moved. and the years went by......
    By 2016, they were still sitting. What had gone wrong? Essentially, there was a dispute between the developer and the City. The City would not issue occupancy permits as the infrastructure 'apparently' was done wrong. To me, this was opportunity.
    This spring, I did an agreement for sale for all 3 homes (Thanks to learning from Barry McGuire), and they are all being moved to another municipality. I had to figure out who the owner was and make a deal. The owner was more interested in removing a problem and creating a win for the party interested in solving a problem. HE called it 'a reward.'
    I will end up creating $40,000 per home once I place a mortage in the new town. Not bad so far, but don't forget to look behind the curtain, or in this case down the street....
    Down the street was a mobile home from 1980 that was renovated with a good roof and new windows. I had to inquire about that.... I ended up paying the back taxes and picking up the home as well, for next to nothing. That home will follow the other 3 to the same town.
    Could this get better? In discussing his Picasso collection with the 'successful' owner of the homes, I started learning his story. I found out he had more property. I took possession of an acreage as well... for back taxes. The acreage (14.53 acres) has a 26 x 36 bungalow, a double garage, and a mobile home on it. I got the house approved to move to the same town as the other four. The mobile home isn't in good repair but the deal is exceptional....
    As I went a layer deeper and walked around the acreage, I discovered a tandem axle construction trailer, and 2-2008 camper trailers. Ok, its not a boat like Jared Hope, but 2 campers are not so bad.
    The original deal, where I have an agreement for sale with NO MONEY IN, has landed me 5 homes to move, and a mobile home. The rents once these assets are set up will be $4,300/ mo. Created equity will be over $200k.... I won't have any money in, and I will have excellent cash flow. To top it off, I set up a Joint venture and truly won't have ever had any money in.
    The icing on the cake will be selling the acreage. ....
    And as I said, don't forget to peel back another layer and look further behind the curtain. The municipality has a municipal incentive, and I will get $25,000 back for doing these homes. All the sweeter. And if I want 54 undeveloped lots, I can get them as well....
    What the other 6000 people in my town saw as an eyesore with 4 empty homes, I saw as my golden hen. She just keeps laying eggs. :) What's your story?
     
  2. Carla Reis
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    Carla Reis Inspired Forum Member REIN Member

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    Wow amazing story ! Loved it

    I heard once that an entrepreneur (or perhaps a real estate investor) is someone that looks at the same problem like everyone else but.... from a different angle or perspective.
     
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  3. Tina Myrvang
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    Tina Myrvang Client Care Specialist Staff Member REIN Member

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    You are a rock star!
     
  4. Wayne Hillier
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    Wayne Hillier Wayne Hillier REIN Member

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    That's amazing. Congrats!
     
  5. DonnaMcGuire
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    DonnaMcGuire Inspired Forum Member REIN Member

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    Agreements For Sale can be an amazing tool, once you learn to see the potential value like you did here, Trevis. Congratulations :)

    We are planning on holding another Agreements For Sale Focus Workshop in the spring - would love to share your story if we could.
     
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  6. trevismcconaghy
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    trevismcconaghy Trevis McConaghy, REIA REIN Member

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    The golden hen laid another egg today. I sold the acreage I talked about. I love when the wins keep appearing.
    Six weeks ago, I went to the town of Nipawin to find a lot for the 'free' house on the acreage. As it turns out, I discovered a private lot for sale. I took the advice of waiting for the vendor to tell me a price. He said $6000. Sold. It is a large pie shaped lot which will look awesome when my house is placed. After the municipal incentive, I will have paid net $1000 for a lot for my 'free' house.
    but that's NOT the win....
    As I looked a layer deeper, on the drive I happened to notice a couple pieces of paper taped to front door of a 1970's bungalow. Those papers were labeled Veranova property management. Experience told me that they deal with foreclosures. Ten days ago, I took possession of the bungalow. It went in to a JV where my partner paid cash. When we had it appraised we will have basically nothing in. Another solid win. Boom!
    Can it get any better? I found 2 other private homes for sale with signs, as well as 2 more private lots. These I will take action on in the dead of winter..... If you keep following the story, I think I am just getting started.
     
  7. Tina Myrvang
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    Tina Myrvang Client Care Specialist Staff Member REIN Member

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    You rock! I love hearing your win's. They are so inspiring.

    Have a great day!
     
  8. jay1214u
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    jay1214u New Forum Member Registered

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    @Tina
    I would appreciate if there was a discussion for "failures" or lessons learned along with the success stories

    Jay
     
  9. Tina Myrvang
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    Tina Myrvang Client Care Specialist Staff Member REIN Member

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    Hello Jay,
    I would pick up the book by Thomas Beyers:

    Thomas Beyer - 80 Lessons Learned

    Ordered from Amazon.

    Have a great day.
     
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  10. jay1214u
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    jay1214u New Forum Member Registered

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    @Tina
    I would still appreciate if there was a discussion for "failures" or lessons learned along with the success stories.

    Thanks
    Jay
     
  11. Marnie
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    Marnie Administrator Staff Member REIN Member

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    Jay, you could also start your own post in the Public Discussion section possibly sharing one of yours lessons learned and inviting other forum members to share theirs.

    For more "real-life" stories, challenges faced and strategies for success I would also highly recommend The Everyday Millionaire Podcast. I have found nuggets of wisdom and inspiration in every episode, and Patrick's guests share lessons learned, real challenges, adversity and how they have and are still are working on overcoming them to be the successful entrepreneurs they are.
     
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