Dean Graziosi - Deal Of The Month #5

Hey, welcome to deal of the month again, where I just. Every single month I go over properties that I bought over the last 10, 20 years and made money with. Some I still own, some I don't. Just kind of outlining exactly what I did to think outside the box, to use the resources I had when I had none and had a little or whatever. I had to show you that by putting the ingredients together that I share with you in my book and my courses and tapes and through things like this, combined with you taking action, that anything is possible. The property I'm standing on right now is one of my most favorite of all time. This property that I'm standing on, it's 21 acres on the Hudson River. You can see that behind me, you know, one of the most gorgeous places in the upstate New York area, the Hudson Valley. This is called not so pretty right now because it's the first day of spring and things aren't green yet. But we when the river is full of boats and the property's green all around, it's one of the most gorgeous places on earth. I filmed something a minute ago, which we'll put on B roll, meaning it's running right now. While I'm talking. You see that old gate or fence that is in the picture right now? There was literally a for sale sign on it, maybe 6 inches by 10. The little black for sale sign with the orange writing, and it was hanging on that gate. I called the people and realized that they had this property for sale for a long time. But the problem was that this is good. I like problems. You know, problems are what make you money. If you can be a problem solver, you get to cash big checks. So the problem with this property was that two brothers had owned it maybe 60, 70 years ago, and it's since passed and left it to wives and then kids and some even grandchildren. And there were so many people that owned it that they couldn't agree to sell it and for how much. And some of the people who owned it had loans and they were afraid if they got some money that they'd lose their money and all this crazy stuff. So when everybody else just ran from that problem, I took a year and I worked a deal out where I got the majority of the people who owned this property to agree to sell it. And was it worth the years, time and effort? Now I say a year's worth of work, what did I spend maybe four hours a month just talking to people, going to lunches, emails, phone calls, whatever I had to do. But with in motion part time but just aggressively searching for a solution totally solution based. I didn't care about when people said it couldn't be done or other people who tried to buy it and couldn't. My whole goal was I kept my eye on the finish line. I kept my eye on the prize. At the end of the day, I bought this property for $80,000. At the time I didn't have all the $80,000. I remember hitting some credit cards up and borrowing a little money. So I paid cash for it. But it was credit card cash advance and some borrowed money. But I bought it for 80,000. And a year ago, well, nine months ago, I opted out of a contract where I had this parcel along with a couple others. I'll explain that in a minute. Sold for $2.3 million. To date. This will be. This would have been if I sold it my biggest income producer of all my properties. 80,000 to well over $2 million, which is an insane amount of profit. But I opted out of the contract because now I sold it to a developer who was going to put condominiums. And now you're probably looking at B roll of this property and you could see how gorgeous it would be to have condominium over the Hudson River. But I decided to do it myself. I'm in a financial situation now that I can. I have some good people working for me that can handle the project. So instead of making a couple million, I expect to make that times four or five. I think I'll make, you know, four to $10 million off of this property and supply the town with an incredible project that will help the economy. You know, it's just a win win for everybody. So you know, me putting condos in there may be so far advanced from where you are right now. But the lesson to learn here is that I bought this property because the people selling it didn't have a big bright for sale sign on it. They didn't have a realtor. So no one really knew about it. When I did find the property and made the phone call, there was instant problems. I don't like to look at problems. There's always a solution to every problem. So I focused on the bigger picture. I focused on buying this incredible property because I knew its potential. The other thing which we're going to go up the hill in a second is that this property only had a narrow access to it, only about 25ft wide. Well, I went to the town building department and realized to put a 137 which I'm trying to do right now, condominiums on this parcel. You need more than 25ft. So what I did, I spent a couple of years, actually three years in fact, and I slowly bought up property around this. So I bought this and then four other parcels that are up on the hill. And now I basically own from a main highway, pretty main, the biggest highway going through this town that this is in, all the way to the river. And it took me a few years, a couple of them up there I bought with no money down. I'll go up there and explain those to you in a minute. But again, I hope today just shows you once again that the only thing that can stop you from making money in real estate is your own restrictions. Or the restrictions friends, families or family members, or maybe the media is putting on you thinking you can't do it. You know, when I bought this, I probably have owned this property for 10 years, maybe more. I don't even remember now. And when I was buying it, I remember so much negativity of people saying, you can't buy it. Is it really worth it? What are you going to do with it? You know, at the end of the day, if I flipped it right now, I could make a couple million. And who can say that in a lifetime? I mean, how long, think about it right now. How long would it take you to save $2 million? You know, I know prior to real estate, if real estate wasn't in my life and I was working in auto sales or whatever I could be doing, there's nothing in my life that I know that I could do to be able to save $2 million. It'd be impossible, but I'm going to be able to put $2 million minimum in my pocket on this one deal. And again, is this deal common? Are they all over the place? No, but when your eyes are open and you're ready to go, they're there. You'll notice that I was standing right down here looking out over the river, talking about this parcel, this whole parcel, it kind of encompasses, it wraps around here, goes all along the river here, actually goes up this hill, comes all the way around here. This is the parcel that I bought for $80,000 because there was a problem. Too many people owned it, they couldn't agree to sell it. And it took me a couple years to convince the majority of the people to sell it to me. They sold it to me for $80,000, this whole piece of 20 something acres on the Hudson river. And I've been offered over $2 million for it, but I've actually backed out of the contract because I think I can make a lot more. The reason I'm standing on top of the hill with the video camera on my eye, which I'm not so great at, is because what I mentioned previously is it didn't have the greatest access. It's another reason I got this property at such a discount. But I spent the next couple years and I'm going to turn the camera, go this way, turn the camera totally around. And I had to buy some other parcels so I could have access. Now I bought this house here, this is on a five acre parcel right here. And I'm using my finger here, but if you follow this road up, it goes to a main highway that's up in here. So now buying this property here allowed me a closer piece to the main highway to go from the main highway all the way down to where I was standing, down to the Hudson River. Alright, now I'm in front of the camera. Like I said, I bought this little house behind me. Not the greatest house in the world, but it wasn't the house that I bought. It was the property that gave me another step closer to the main highway so I could have this access for all these condos. And let me tell you about this property. There's a little problem here. When I first wanted to buy it, of course I bought this piece and people already assumed that I needed it, right? They needed this piece in between, the price automatically went up. But the biggest problem was emotions. The woman who lived in that house was over 100 years old and she had lived there for like 70 years. Her kids, grandchildren, great grandchildren all grew up there. Some of her grandchildren were actually living in the home. And. And when I first wanted to buy it, it wasn't even a question, it wasn't for sale. But then the lady passed away and her daughter, her oldest daughter and her oldest granddaughter were kind of in charge of the trust of what they were going to do with this property. And they just were so scared to sell their grandmother's property, this family legacy that it took me almost two years to buy it. Let me tell you, I ended up being friends with them and I had to be. And it wasn't something I forced, it wasn't something I conned him out of it. What I really had to do was let them know my intentions. I was transparent, let them know what my future purpose was for the property. And I ended up going to lunch and dinner with them probably six times over a two year period to let Them be comfortable with selling me the property. I know it sounds a little crazy, but was it full time? Did it happen every day? Did I have to worry about it? No. Maybe over two years. I put 20 hours into buying this, and at the last minute, they just didn't want to sell. And it was because the granddaughter had lived here her entire life, was so emotionally attached to her grandma that she didn't want to be off the property. So here's the deal we made. I said, sell me the property and I'll cut you back a little sliver. You can't really see it from here, but it's up past there. I cut a little sliver out of the way big enough for her to put a house on. So once I did that, the deal was concreted and I was able to buy this property at a price I could afford. A price that made sense. A price that made that worth 20 times more than I paid for it. The property behind me, I'm referencing right now that I talked about last month, and that's how it was. It was a problem that I focused on a solution. You know, I could have said, ah, I gotta go to lunch with these people and talk to them. And at the end of the day, I made a great friend. I still talk to the family. They're happy that I bought the place. I got a great deal on it. They get to live here, and I have a property that's worth a great deal of money. So again, don't shy away from certain problems. Be the person that focuses on the solution. When everybody runs away, that's short and sweet, but that's what we have for this month. And I'll see you next month on deal of the month.