Nick Rozenbeck
Nick Rozenbeck has been a guest on Collecting Keys, the real estate investing podcast hosted by Mike DeHaan, Dan Austin and Dylan Koch.
Deal Case Study - Property Damage While Under Contract
Mike DeHaan interviews Instant Investor member Nick Rozenbeck about his first wholesale deal: a 3/2 single family in a small New Mexico town, done virtually from Paris. The deal came from a direct mail lead with a tired out-of-state landlord, then hit complications when storm damage to the roof surfaced after going under contract and the seller asked to be reimbursed for the insurance deductible. Nick ended up assigning the deal for a $2,000 fee after extensive cold outreach and follow-up to build a buyers list from scratch.
Key takeaways
- Acquisition was easy (two phone calls to contract) with a tired, out-of-state accidental landlord who wanted cash and had been pushed over the edge by a storm.
- Roof damage discovered after going under contract led to an insurance claim, and the seller later asked the buyer to cover the deductible. Nick held firm by explaining the agreed price assumed a good roof and that a buyer likely couldn't insure the property otherwise, and the seller dropped it.
- Sellers commonly ask for small concessions late in the deal, and new investors desperate for a first win often say yes. Being willing to push back protects an already thin spread.
- The 'if the deal is good, the money will find you' idea doesn't hold up. Nick's only buyer got wiped out by the storm, so he cold called investors, property managers and realtors, and closed only after repeated follow-up with a buyer who initially said no.