Off-Market Deals by Dave Clabeaux

Let me share a story with you:

It's 3:48 pm on a Thursday.

The phone rings.  It's a woman who lives in a nearby town who needs to sell her house quickly.

The taxes haven't been paid in 3 years and the County is going to foreclose in less than a week.

She owes $40k in back taxes and her house is worth $140k.

If the county takes the house, it will be sold at auction and the county keeps ALL the money.

Some counties keep the "overages" made at auction.  In other words, when a property sells for more than the taxes owed, the county keeps the extra money.  

The previous owner gets nothing.

Given the speed that our team would have to close on this deal, we offered her $90k.

She had two options:

1. Let it go to foreclosure and get nothing.

OR

2. Sell it for $90k and walk away with some cash.

Here are how the numbers work out:

As-is property value = $140k

Offer price = $90k

Projected profit before closing costs = $50k

These deals are called "off-market" deals.  Time is of the essence and the owners have no time

to list their house with a broker.  

As a result, you have little to no competition and you can find properties for pennies on the dollar.

Here a few other examples of off-market deals:

Dave Clabeaux

Dave Clabeaux

Finding off-market deals is smart.  You get a house with enormous amounts of automatic equity.

You can find off-market deals on classified listings, FSBO sites, by posting bandit signs, online marketing campaigns, and networking connections.

If you're looking to do your first deal, an off-market deal may be a good option. Because there is so much built in equity, lending is typically not an obstacle.

Plus, you have plenty of room for any surprises or mistakes.

Kitchen Rehab Checklist – Dave Clabeaux

Because a kitchen is a primary selling point of a home, it makes sense to allocate the budget necessary to make the kitchen amazing.

The first step is to look at the kitchens of the houses that have recently sold in the neighborhood.

This gives you an idea for what you'll need to do in order to get top dollar for the home.

Use Zillow to see the photos. That way you can do this research right from your laptop or computer.

Once you do that, use this simple checklist for your kitchen rehab:

1. Cabinets - Inspect the cabinets and figure out if they need to be replaced or can be refinished.

Old laminate cabinets will likely need to be replaced. They become discolored.

Install new handles and knobs on the cabinets. Satin nickel is a good choice for the finish.


2. Counter tops - Install granite counter tops. There are three grades of granite: low, medium,
and high.

Unless you are rehabbing a luxury home, go with low or medium grade.

Choose a slab with neutral tones and subtle patterns.

3. Replace the sink. In most cases, a stainless steel sink will look great.

Sometimes, in older homes for example, buyers are attracted to a fireclay farmhouse style sink.

Replace the faucet with a modern, attractive faucet.

4. Appliances. Install new modern stainless steel appliances.

5. Flooring. In most flips you will need to replace the flooring.  If you're lucky, you
will have a kitchen with hardwood that you can sand and stain.

Otherwise, laminate gives you lots of flexibility in terms of color and patterns.

6. Lighting. Recessed lights are great for ambient and general kitchen lighting.

Hanging light fixtures over an island cost about $200-$300 and are modern and stylish.

7. Finishing touches.  Install decorative outlet and light switch plates that go with the new paint.

The standard white plastic plates look tacky. Don't use them.

Decorative plates are definitely worth the extra $2-$3 dollars.

Installing a wine cooler may be worth the investment. While not necessary, it suggests to a buyer they
are getting a luxury home.


Use this simple checklist on your next flip and you're certain to create incredible kitchen spaces
every time.