Meet Jason, a successful real estate wholesaler and flipper based in Dallas-Fort Worth (DFW). A year and a half ago, he quit his job at a forklift dealership to pursue his passion for real estate full-time. Today, Jason shares his journey and the strategies he used to overcome one of his toughest deals: a four-plex filled with problematic tenants.
From Forklifts to Real Estate
Before diving into real estate, Jason worked at a forklift dealership in Fort Worth for ten years. His role involved selling forklifts, which helped him develop valuable sales skills. Despite his secure job, Jason always dreamed of getting into real estate. In 2009, he made his first attempt with little success and significant setbacks, like a hefty $600 fine for placing bandit signs. However, a turning point in his job motivated him to take the leap from the corporate world to real estate wholesaling and flipping.
The Deal That Tested Persistence
Jason received a call about a four-plex in Fort Worth. The owner, fed up with maintenance issues and code violations, was eager to sell. But there was a big catch: the property was occupied by drug addicts, including a prostitution ring run by the owner’s son. These tenants weren’t paying rent and had no intention of leaving.
Securing the Contract
Jason saw the potential for a profitable deal—$12,000 in profit to be exact—but only if he could get the tenants out. The buyer, a keen investor, made it clear they’d only proceed if the property was vacated. Jason had to navigate through a series of obstacles to make this deal work.
Facing the Obstacles
The four-plex had four units, each with its own set of challenges:
- One tenant left voluntarily: This was the easiest part of the process, as one tenant decided to leave without much hassle.
- Another tenant agreed to leave at closing: This gave Jason hope that the deal might go through smoothly.
- The Owner’s Son Refused to Leave: The owner’s son, deeply entrenched in illegal activities, refused to move. He saw the property as his headquarters for his illicit activities.
- A Hoarding Tenant: Another tenant, also on drugs, refused to leave despite being offered $2,000 in cash.
Persistence Pays Off
Jason’s challenge was not just about negotiating but also navigating a tricky legal and emotional landscape. He visited the property multiple times a week, trying to reason with the tenants. Despite his persistent offers of cash for keys, the tenants initially refused to budge.
Things started to change when the owner’s son got arrested. This caused a temporary shift, making the remaining tenant reconsider his stay. However, the son was bailed out and returned, setting Jason back to square one. Luckily, the son got arrested again for a more serious crime and went to prison. This removed a major hurdle.
Resolution
The final tenant, facing eviction, eventually moved his belongings to a carport in the backyard before leaving completely. Jason’s relentless persistence eventually paid off, allowing the sale to go through.
Lessons Learned
Cash for Keys
Jason tried the cash for keys approach, offering monetary incentives for tenants to leave. While it didn’t work initially due to the complicated nature of the tenants’ issues, it’s a strategy that has proven useful in other situations.
Treat Tenants with Respect
Despite the difficult conditions, Jason treated the tenants with respect. He stayed calm, communicated openly, and tried to understand their situation. This approach can often yield better results than aggressive tactics.
Persistence and Patience
This deal underscored the importance of persistence. Jason’s repeated efforts and his willingness to put in the hard work, even when facing resistance, were crucial in closing the deal.
Have Backup Plans
While luck played a part, having a backup plan is essential. Jason was ready to offer money and look for alternative solutions, which kept him prepared for various scenarios.
Summary
Jason’s journey from forklifts to real estate is a testament to the power of persistence and adaptability. By embracing the challenges of his toughest deal, he demonstrated that success in real estate requires more than just market knowledge—it demands resilience, strategic thinking, and a respectful approach to all parties involved.
His story is an inspiration to aspiring real estate investors, showcasing that with determination and the right strategies, even the most daunting obstacles can be overcome. Jason’s experience reinforces that patience, respect, and a willingness to persevere can turn seemingly impossible situations into profitable opportunities.
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