Phill Grove Short Sale Example

Short Sale Example | Deal Acquisition

Hi, I’m Phill Grove and I’m here standing in front of a house that I bought for $361,820.76, and it’s a pretty exciting project.  It’s a big house, over 5,000 square feet sitting on an acre of land, so I got a really good deal on it. The way that I got such a good deal on the house is that I used a combination of strategies.  We bought this thing through a short sale, but we also had to go through a bankruptcy (a coordinated bankruptcy), and clean up a bunch of other liens and tax liens on the property before we were able to buy this property.  We did some renovation work and some addition work, finishing out some unfinished space.  By using this combination of strategies we were able to get a really good deal on it and I hope to make a bunch of money on it.

Short Sale Example | After Closing

Hi, I’m Phill Grove and I’m sitting here with my closing statement.  It turns out I bought it for $370,000 but I got some concessions back, so my actual purchase price was a little bit less.  We sold the property for $712,500 and the total profit was right in the neighborhood of $291,000.

Short Sale Example | Key Points

What was really the most interesting thing about this particular project is that I was actually the eighth investor to get this lead. In other words, my marketing got this homeowner to call about selling this home, but unfortunately he had called seven other people before he called me.  It’s pretty common that when someone needs to sell a house they call multiple investors, as they did in this case.  What was kind of surprising was that seven other guys walked into this house and looked up and down and under the curtains and behind the doors and for whatever reason they all passed on the deal.

How could that be? How could seven people walk away and not take advantage of an opportunity to make up to $300,000 on a house. Well, when I thought about this and I talked to the homeowner a little bit, after the fact, what I learned was that one guy after the next would walk into that house and say ‘well gosh I do renovations but with all these tax liens I can’t buy this house.’ The next guy says ‘well, you know, I do short sales, I can help you, you know, with your loan, but I don’t know what to do about these other liens and then there’s a renovation. It looks like a complicated mess.’  Another guy walks in and says ‘well I can help you out with the tax liens, but I don’t know what to tell you about your lender and I’m not a renovation guy.’

The point of the matter was, this was a complicated transaction.  There were a lot of problems to solve, and none of the people that came into the property were able to solve all of the problems.  They couldn’t see a way through the maze, so they all passed on the deal.  Now to me, you know, it was a really, really good deal!

When I go about real estate, when I buy and sell properties, and when I teach real estate I teach a lot of different strategies. I’d say I teach all the different strategies, because what I learned somewhere along the line is this: You can try to become an expert on short sales, or you can be a lease option expert, or you can be an equity holding trust expert, or you can be a house swapping expert, or an options expert, or a foreclosures expert, there’s a lot of different things you can try to be. And you can go and put together your marketing plan and go find people that are selling houses and try to find what you’re looking for, but the point I’m trying to make is that no matter what marketing you do you’re going to get people that are motivated sellers that call you.  And some of those people are going to be needing solutions over here and some of those people are going to be needing solutions over here.  In other words, no matter what you’re looking for, you’re going to find all kinds of different opportunities.

So the more tools that you have in your tool belt, the more strategies that you know, the more problems that you’re able to solve, the more money you are going to be able to make in this game.  Because at the end of the day, this is a numbers game.  You know, you’re generating marketing, your marketing is generating leads, you’re translating those leads into deals that are going to make you dollars.  And once you figure out how to do that over and over again you’ve got a business. Your opportunity to make more money is directly proportional to how many leads you can turn into deals, that you can turn into dollars, and that’s going to be affected by how many strategies you know.

When I do real estate, I use every strategy under the sun.  When I teach real estate I teach all of the 12 popular strategies to do real estate. And I employ all of these different strategies, because you never know when you’re going to find a deal that requires a lot of different strategies that if you can find your way through the maze, like this deal, you too might just walk away with $291,000. Which is, by most accounts, a pretty good deal.  So, I’m Phill Grove, thanks for listening!

Short Sale Example

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