Farrar Mesa Subdivision ; Case Study (Lubbock, TX)
When I sat with Tina, she asked, “So are you a real estate agent, or a real estate investor?” My response? “Whichever nets you the most money”.
That’s the beauty of having many tools in my tool belt: I’m not here trying to cram a square peg in a round hole. If buying your house isn’t the best option, I’m not going to try to force that to happen. And on the flip side, if your house won’t sell on the open market without a discount AND paying realtor fees, why not just cut out the middle man and net you more?
(I’m looking for the best outcome for my clients, and most of the time, the best way to improve their life is to net the the most money possible.)
When I showed up to Tina’s house, she was ready to move — but had neither the time or patience to deal with updating her house and contractors. Who could blame her? She worked a full time job and knew putting the house in listing condition would’ve cost her around $15–20k. Not to mention shady handymen entering her house with her pets while she was away.
But Tina wasn’t distressed with her property. She wasn’t ready to accept low ball offers from the dozens of cash investors.
After listening to her concerns, Tina just wanted a new house that was turnkey, move in ready — and she didn’t want to spend a dime updating her current house. In order to put her house in top selling condition, she would have to tear down all the already peeling wallpaper, update both bathrooms, paint or remove the wood paneling, replace the already removed carpet, redo the kitchen cabinets and counter tops, and much more. She wasn’t ready for that workload, nor the money required for it.
Tina needed to net enough from the sell of her house to use as a down payment on her next house — the reason why she was so apprehensive to call up any of other investors that might low ball her and keep her from doing so.
And here is why I love my job. Instead of wearing either my “investor” or “Realtor” cap, I used my resources to wear both hats to help Tina.
We had Tina pre-qualified with a local lender to see what type of house she could afford according to her income. We then calculated the down payment and closing costs required for her new desired house. She needed to net at least so much from the sell of her current house in order to make the down payment and closing costs for her new house.
I could tell Tina was nervous and insecure about showing her house to other people. It wasn’t in terrible shape, but it did need work and updating. Plus, she worked a full time job at Covenant, and was not really looking forward to putting up her pets every time there was a showing.
After showing Tina the numbers, I asked, “What do you want for your house?”
Tina told me her number. I went to the office, and ran net sheets.
I called her and asked if she would be okay selling the house on the first day — without even having to show it to anyone else, without any repairs or updates, without finance contingencies (since it was a cash offer), and for full asking price. She laughed, “Yea, I’d also like a million bucks in small bills too, but that’s not going to happen”.
Well, I couldn’t deliver on the million bucks, but I did end up investing in her property.
I can’t tell you how happy Tina was. All the potential pain of listing her house, showing it over and over to let it potentially sit on the market for months was gone. She was going to net more than enough to use for her new house — plus, since I was going to be helping her find her new house, I was flexible on closing date.
We found Tina her new dream home, without her having to spend a dime on her old one. She net enough cash from her sale to cover her closing costs and down payment for her new home — so essentially she moved into a new house without using any of her own cash.
If you haven’t read Simon Sinek’s book, “Start With Why”, I encourage you to do so. Nothing is about “What” I do, or “How” I do it, but it all starts with “WHY” I do it.
And Tina’s case study is a prime example why I do what I do: To improve houses AND lives. If I can’t improve someone else’s life in my business, there simply is not a good “WHY” for me to even operate.
It was awesome opportunity to improve Tina’s life!
Edit: I was asked by a few people to show a few pictures of the house improvement, so upon request, here they are: