How I made $40,000 in 2 weeks as a 17 year old

Andy Rong

9 Aug 202306:04

Summary

TLDRIn this inspiring video, a 17-year-old high school student shares how he made $40,000 through a savvy real estate deal in Tampa, Florida. Without any upfront investment or direct interactions with the property owners, he leveraged market analysis and negotiation skills to secure an initial contract at $275,000. After a surprising counteroffer and a strategic renegotiation based on inspection findings, he ultimately assigned the property to a hedge fund for $305,000. This story highlights the power of determination, creative problem-solving, and effective communication in achieving financial success, even at a young age.

Takeaways

💰 A 17-year-old managed to make $40,000 through a real estate deal without any out-of-pocket expenses.
🏠 The deal involved a two-story home in Tampa that was listed for $325,000 to $350,000.
📈 Rental rates in the area ranged from $3,000 to $4,000, indicating a strong rental market.
📊 A 1% rental rate of the home value is considered a great deal in real estate.
📉 The investor negotiated a cash offer of $325,000, which led to a $330,000 offer from a hedge fund buyer.
💡 Sending a specific yet lower number during negotiations can create a perception of thorough research and effort.
😮 An accidental low offer of $275,000 was made, leading to a potential $60,000 payday.
🔍 After contracting the property, inspections revealed a need for renegotiation, leading to a final contract price of $265,000.
🤝 The investor assigned the contract to the hedge fund for $305,000, netting a $40,000 assignment fee.
🎓 The entire process was conducted while the investor was still in high school, showcasing the potential for young entrepreneurs.

Q & A

How did Andy make $40,000 as a high school student?
-Andy made $40,000 through a real estate deal in Tampa, Florida, by leveraging a cash offer strategy and negotiating effectively without any upfront investment.
What was the initial asking price for the property in Tampa?
-The initial asking price for the property was between $325,000 and $350,000.
What did Andy discover about rental rates in the area?
-Andy found that rental properties in the area were going for $3,000 to $4,000, indicating strong demand and potential for profit.
What negotiation strategy did Andy use when making his offer?
-Andy initially proposed a cash offer of $325,000 but later sent a much lower accidental figure of $221,924, which led to a counteroffer of $275,000 from the seller.
How did the hedge fund respond to Andy's initial offer?
-The hedge fund countered Andy's initial offer with $330,000, which was a higher valuation based on their investment criteria.
What mistake did Andy make during the negotiation process?
-Andy accidentally sent a text with a significantly lower offer of $221,924, which turned out to be beneficial as it led to the seller's counteroffer of $275,000.
How did the inspection report impact the deal?
-The inspection report indicated the property needed repairs and led the hedge fund to lower their valuation to $305,000, allowing Andy to negotiate a lower purchase price.
What final price did Andy negotiate for the property?
-Andy negotiated the final purchase price to $265,000.
How much did Andy make from the assignment fee?
-Andy made a $40,000 assignment fee by assigning the contract to the hedge fund for $305,000.
What key lesson can be learned from Andy's experience?
-A key lesson is that innovative negotiation strategies and market knowledge can lead to significant profits, even for inexperienced investors.