Last week I did something that I never before imagined was possible. I made more money with a few phone calls than I did in my entire first year as a blogger.
$7,500 Just Like That
My real estate partner, Shauwn, and I started an investment company called Passive Equity, LLC. Last week, we were given a $7,500 check for assigning a contract on a house from one investor to another.
The crazy thing is that we didn’t spend time looking for the house, we didn’t need to look at the house (I drove by just to prove to myself it was real)… We didn’t do anything except make a few phone calls.
Ever since I found a whole new gear of making money, It amazes me how much easier and faster it has become than in my early days as an entrepreneur. I used to work my tail off for what ended up being a minimal result. Now it’s just the opposite. At each step along the way, I learned something revolutionary that made my life easier.
I thought that working for myself was the way to go, no matter how hard I worked. It turned out that owning your own job was harder, more stress, and sometimes less profitable than working for someone else!
E 2.0 started when I read Rich Dad, Poor Dad. I got smart about passive income and learned how to create businesses that didn’t require me to be there. I got into bulk candy vending, blogging, an automated eBay business, etc.
That was pretty cool, but it soon dawned on me that passive income was great, but only after my bills were taken care of. I was trying to live on passive income alone and it wasn’t enough.
The problem was speed. I wasn’t building it fast enough.
E 3.0 Over the last year, I started seeking out people who had made lots of money at the rate that I wanted to make it for myself. I let go of trying to reinvent the wheel and just listened to the guys who knew how to do it.
As I was networking, I ran into a guy who assigned contracts for a living. Commonly known as a wholesaler, he specialized in finding property a deep discounts and assigning the contracts to investors for an assignment fee.
He was expanding his business to include Central Texas, so he asked if I could help him find buyers for his contracts in exchange for half of the assignment fee.
No problem, I said, but it really seemed to good to be true.
A week later, he called me with a property that he had under contract. It was a large home with a pool on the outskirts of San Antonio.
Comparable homes in the neighborhood had been selling for $220k – $250k. He had it under contract for $105k.
I first thought about buying the house to flip. I talked it over with Shauwn and we agreed that it was a little bit too “outside the box” for our comfort because it was out of town in a slow-moving real estate market.
But, at that price, I was sure someone would want it!
My plan was to get an estimate on the repairs and then start working my real estate investor contacts. I sent over my rehab guy and he discovered that it was pretty clean except for some plumbing issues and a little updating. His estimate was around $20k, mainly because it was a big house in an upper-end neighborhood.
To my surprise, he told me that he wanted to buy it!
Sweet, I thought. That meant I didn’t even have to touch my contact list!
We went into price negotiations and settled on $120k.
That’s $15k more than we had it under contract for.
An Amazing Way to Make Money
The closing date was set for a few weeks after the deal was signed… and to be honest, I wasn’t going to believe it until we got a check.
Would you know… We got the check!
At closing, the investor bought the property for $120k with a $7,500 assignment fee for us and a $7,500 assignment fee for my wholesaling friend.
It was truly a win-win deal. The investor got a great deal that he will rehab and make a ton of money on. We made some quick cash for showing him a deal that he couldn’t find elsewhere. The owner got rid of a plumbing headache and moved on with her life.
When I look back on how hard I’ve worked over the years for varying degrees of pay, making money like this simply blows my mind. All I did, literally, was make a few phone calls. I drove by the thing just so I could see that it was real, but I didn’t have to. My wholesaling friend never even saw the thing.
Well, you better believe that Shauwn and I will be doing a lot more of this kind of thing in the future. I’ll be sure to keep you updated.