Around and ticking - Posted by Brad (CA)

Posted by Brad (CA) on October 22, 2003 at 01:01:43:

Agreed. Its not the worst thing to have to think about.

Thanks for the support.

Brad Pennington

Around and ticking - Posted by Brad (CA)

Posted by Brad (CA) on October 20, 2003 at 24:05:08:

I dont frequent this site as much as I once did, but I thought I’d post my first success here since I spent a lot of time here in the beginning.

Long story short, I made $92,500 as an assignment fee on a deal I just got buttoned up. I always figured my first deal would be 2k or so, definitely not anywhere near this size.

I wanted to post this for two reasons. The first is entirely selfish and egotistical. I didnt want those of you who dedicate substantial amounts of time helping people to think I never got past being a noob. The second reason is to provide some fuel to the fires of those who really think they can do it but are losing momentum…just keep going and you’ll be fine.

Thats pretty much it, so here’s the best to you all!

Brad Pennington

Re: Around and ticking - Posted by Kristine-CA

Posted by Kristine-CA on October 21, 2003 at 09:45:59:

Brad: Congrats on your deal! As someone who rarely assigns and almost always double closes, I’m curious about the payment of your assignment fee. Were you able to get it at the time of the assignment? Or were you paid through escrow at closing? Did you have an investor buyer or a retail buyer?

Again, congrats, and hope the next one is just as good. Sincerely, Kristine

Re: Around and ticking - Posted by CL2

Posted by CL2 on October 20, 2003 at 09:54:08:

Care to share your story?

Re: Around and ticking - Posted by Brad (CA)

Posted by Brad (CA) on October 21, 2003 at 23:33:41:

Hello Kristine,
Its good to chat with you. I didnt receive the assignment fee until closing. I got a reference for this buyer from someone I trust very much and it turned out to be pure gold. We negotiated the price and the closing. I already had escrow open and pre-lim title had been drawn as if I were doing a double-close(my preference). Due to the nature of the referal and my relative inexperience, when he suggested that we preserve some money by holding one escrow I was open to that. Once we verbally agreed on the price I told him that my contract was for 95k less than what he had agreed to pay for the property! Like I said, it was a strong referal, and he actually got a real kick out of me making that much on my first deal. So when I brought the seller to escrow to sign her estimated HUD-1 and deed, the vesting was simply changed from my name to his entity, and my estimated HUD-1 showed 95k as a consulting fee.

Pretty straight forward for CRE! Nothing too fancy, just a solid buyer who didnt flinch or BS.

The thing you never, or at least I never thought about, was what I would do with money once I was off the shoe-string. I mean if it was millions I’d be done and off enjoying the rest of my life. But this is just enough to make me thing REAL hard about what I want and how I will deal with success. I just hope that having money will eventually become less stressful as I figure the bigger questions out, because in the last week I went from a broke kid fresh out of college to an executive level income earner and am working on the ulcer to suit.

I almost forgot, this buyer was all cash…the real all cash kind! Man I learned a lot in the last few weeks! :slight_smile:


Re: Around and ticking - Posted by Kristine-CA

Posted by Kristine-CA on October 21, 2003 at 23:56:03:

Brad: thanks for your reply. Cash buyers are the only way to go. Especially with an assignment and/or the HUD-1 “consulting fee.” But I’m glad to hear everything went A-ok. Also, I’m assuming on a property in that price range, you saved quite a bit on escrow fees and not having to buy an additional title binder policy.

Yep, having/getting money will definitely make you think real hard instead of wishing real hard. Really messes with your head. Nice challenge to have.

Again, congrats. Sincerely, Kristine