And something interesting about Brian is this: While investors all over the map feel like their clock’s being cleaned by the current real estate recession, Brian’s happily doing deals, making bank every month, and having a blast doing it.
No, he’s not a guru – just a local, hometown boy. And it’s not that his business has been entirely untouched by the recession per se… He just knows how to flow with it. Brian’s a “Move With the Cheese” kind of guy.
Let’s all raise a glass to my good friend Brian Meidam.
Not Quite Business as Usual…
Brian and I both have the good fortune of being in a private mastermind with about 10 other dealmakers called the “Flip VIPs“. We conference call together monthly, rabble-rouse in person a few times a year (this month in NOLA), and share lots of awesome stuff together through a private email group in the meantime.
So recently Brian emailed us all about a deal in which he was trying something flavored a little differently from his normal cup of tea. And actually, was getting some really impressive results from it. He did a lesser rehab than typical, but ended up with multiple showings in only a couple of days, quickly followed by multiple offers. Yay, Brian!
We all bantered back and forth via email with him a couple of days before I finally just asked him if we could record a quick case study for everyone. And that’s just what we did.
So here you go — enjoy! Merry Christmas! And I hope some insight into Brian’s latest deal will sharpen your own deal-getting. And if you have any more questions of your own for Brian, just ask ’em in the comments below. I’m sure I can get him over here to answer you.
Listen, Learn and Enjoy…[audio:http://reitips-audio.s3.amazonaws.com/interviews/12-10_brian_meidam.mp3]
Wanna Ask The Flip VIPs?
The Quick and Dirty:
- JV deal
- Purchased for $75k
- $16k-ish “light rehab”
- Listed for $150k
- Feeding Frenzy: 12 showings, multiples offers within 2 days
- Cash offer…fell through
- Backup offer…$155k ($5k over list price)
Some Questions I Asked:
- How did this sweet deal come your way in the first place?
- When you JV a deal like this, how do you structure it?
- What terms did you strike with the seller?
- How were you able to get such a buyer feeding frenzy? What’s your secret?
- Why did your first (cash) offer fall through?
- You 2nd offer was higher than list price…expecting FHA appraisal issues?
- How do you handle staging? And how much?
- What’s next? Planning any more deals like this one?
Among the Takeaways:
- Believe it or not, “old school” tactics still work (Go figure!)
- Don’t be afraid to renegotiate until you’re really comfortable
- “Wholetaling” is an extremely viable option for certain neighborhoods
- Staging: Why it works so well (especially now)
- How much to budget for staging a rehab like this
- Ball park number to budget for post-inspection expenses
- Why this deal rocks…but he definitely wouldn’t do every deal this way