The Queen of Rehab
Robyn Thompson got involved in real estate twenty years ago not by choice but out of desperation. She went to work one day thinking it was going to be another average day at the office, but NO! A mandatory meeting was called for the afternoon. Around 2:00 PM, all of the corporate accounting team piled into the auditorium wondering what computer the company would be releasing to the market place.
A stranger walked out onto the stage and took the microphone. No one knew him and they would soon find out that his nick name was “The Hatchet Man”. He was brought in to eliminate the fat out of corporate accounting. He informed the 503 people in the auditorium that only 275 people would be left at the end of the month.
Robyn’s whole life was sent into a downward spiral in a matter of a few seconds. “How could they do this?” She had dedicated her heart and soul to IBM for the last 9 years and with no warning they were letting hundreds of good employees go? She was scared to death!! She was living like many people do today, surviving paycheck to paycheck. She had a big mortgage payment on her new condo, a car payment, student loans, credit card debt, no savings, only $4000 in her IRA and a few shares of IBM stock.
She panicked and did what most Americans do when they get into a the financial bind. She went and got a part-time job, waiting tables from 5:00 PM to 2:30 AM at a local diner to try and start saving some money to get a few car payments or a few mortgage payments ahead. The goal was to make $125 per night. At least it would be some kind of income if she was forced out the door at IBM.
A few week passed and she made it through the down sizing, but the fear would not go away. Her loyalty to the corporation was gone. She kept my waitress job because reality set in. She was a financial disaster with no extra money and no savings. She knew it was time to work smarter not harder. Some how, some way, she was going to find financial freedom.
One night after finishing a long night at the diner, Robyn came home to find a moving van in my neighbor’s driveway. Being the nosy neighbor, the next morning she phoned the condo association president to find out what was going on with unit No. 6. She told her that her neighbors inherited a big farmhouse in Tennessee from their grandmother that was free and clear. They were moving because they could not sell the condo for what they paid for it and they did not have enough money to pay a Realtor six percent commission to liquidate the property.
She stood there completely envious. A life with no mortgage payments, what a fantasy after all she still owed 29 years on my mortgage. It became Robyn’s dream to have a home free and clear with no payments, now that’s financial freedom.
Unit No. 6 went into foreclosure. Six months later it was listed for $79,000 which was the original purchase prices for the units. Over the next several months, Robyn watched the prices drop from $79,000 to $69,000 to $59,000 to $49,000 to $39,000 to $34,900 and still no one bought it.
Now fear and doubt rush back in because if IBM decided to make another round of cutbacks, she would not be able to sell my unit for my mortgage balance of $63,500.
Robyn knew the condo was a steal at $34,900. She ran the numbers and determined that the monthly payment on Unit No. 6 would be $365 per month and should rent for $650 per month, giving it a positive cash flow of $ 285 per month. The Cash flow of $285 per month was just enough to cover Robyn’s car payment. If she could buy the unit, it would make her car payment for life!!
After some calls to mortgage companies, she found out that she only needed 10 percent down and could ask the seller to pay all the closing costs. With just $3500 (thirty-five nights at the diner) and she could drive a nice car for life and let unit No. 6 make the payments. She bought the unit at an auction for $27,500.
The wheels started turning, She thought what if she could buy nine more units just like unit No. 6. She would have approximately $3000 per month positive cash flow and that would match her take-home pay from IBM and she would never have to worry if we went to downswing again. Heck, she would not even have to work if all ten were rented.
That’s when she started pursuing this dream with passion. She began waiting tables five nights a week in addition to my full-time job to get down payment money plus looking at condos every extra minute available anad she survived on very little sleep for many months.
Within six months she had saved enough money to buy my third unit. Robyn recalls the Saturday morning she set up an appointment with a Realtor from Re/Max. He jumped out of an old Blue Cadillac with dark tinted windows wearing an expensive pinstripe suit. He shook her hand and very arrogantly introduced himself as “THE KING OF FORECLOSURES”. She just stared at him with this smerk on my face, asking herself, ” how can a 23-year-old kid with the old Cadillac be the King of anything”?
After previewing the unit, she determined the cash flow to be close to $300 per month, and she wanted to make an offer. THE KING was pushing her to go to full price. NO WAY, she started at $7000 under the asking price and to the surprise of both Robyn and the King, the desperate seller took it.
The closing took place 45 days later. On the way out of the closing, the King asked a question that would change Robyn’s life for ever. “If I could sell the condo that you are buying and make you $5000 profit would you agree to it.
She asked him if he thought she was nuts, that’s 50 nights at the diner from 5:00 PM to 2:30 AM. Not being emotionally attached to the condo, but not being able to afford the mortgage on it without rental income for more than 2 months, she gave the King 60 days. On the 27th day the listing, the King brought an offer that would net a $4800 profit. This could not be happening. Making money could not be this easy.
To make a long story short, it was that easy!! She had a huge feeling of excitement as she drove to that closing. She was very nervous sitting in the attorney’s office as he handed her a check for more than $10,000. The amount had to be wrong! It wasn’t. Robyn received all of her original down payment back plus the cost of the repairs done plus the $4800 profit. She drove to the bank so fast to deposit the check that she left tread marks in the parking lot.
You have to understand that this was more money than Robyn had ever had seen in her whole life? If IBM0 let her go, she could live off that $10,000 for five months. She thought it was an awesome, once in a lifetime thing. . . The King called two weeks later with two little fixer upper houses.
Robyn didn’t want to spend her once in a lifetime profit of $10,000. But then the King challenged her “What are you afraid?” How dare he. Me, Afraid. I replied, OK Smarty, I will go look.
She was incensed, so she went to take a look. The little voice inside her head said don’t worry you don’t have to buy anything.
Both houses were dumps, but the little white Colonial on Birch Street kept haunting her. She could see the potential but the repairs had to be at least $12,000. The King argued that the repairs were $8,000 so she got two quotes and found out that he was right. With her $10,000 and a few extra nights of working at the diner, she could cover the down payment and repairs and once it was fixed it would cash flow at $375 a month.
Four months later, she was ready to kill the King. The house was still not completely renovated. She was broke and did not have enough money to finish the repairs. She was waiting tables all night to pay a handyman to work on the house all the next day. All the extra materials had to go on my Visa card. Great now she was further in debt, and broke. Not to mention exhausted from doing as much of the work herself to keep the cost down. She had to get the house finished.One afternoon, two of my waitress friends from the diner stopped at the house to see what I was up to. They were curious why was I giving up my best shifts.
One afternoon, two waitress friends from the diner stopped at the house to see what she was up to. They were curious why she was giving up her best shifts. And one of them fell in love with her little house. She explained that the monthly payments would be $675 and she decided to buy instantly because she haad been living in a dump for 17 years at $600 a month.
A month later, Elaine, the waitress friend, and Robyn were at the closing. Elaine sat there with tears in her eyes. When it was over, the attorney handed Robyn a folder with all her closing documents and a check. It was her turn for tears in my eyes because she made $17,235 profit on her second deal. She got her original $10,000 back, plus the profit, for a check over $27,000.
Would you be happy with that from a part-time hobby? It sure beats waiting tables for $125 a night. Robyn made more money on that little house than working for IBM for five months.
Needless to say, her career at IBM was short-lived. Every day for the next year, she went to work hating my job as she now knew there was life after IBM. Fourteen months later she told IBM to stick it.
The rest, as they say, is history. Her life is awesome.. She can do waht she wants when she wants. She is her own boss and now she knows what true financial freedom is because she is a multimillionaire.
Robyn began sharing my knowledge on buying, renovating and selling homes so others could start to take control of their financial situations. Over the years, she has taught hundreds of classes on “‘How to Create Huge Chunks of Cash from Real Estate”, and shared the platform with best selling authors, TV stars, governors, the super wealthy, and some of the best speakers in the world.
She has the absolute pleasure every day of helping people dig out of their financial mess and teach them techniques to obtain financial independence without needing money or credit.
Robyn’s goal in life is to help those individuals who can take action to new financial levels that most people only fantasized about. If this describes you, it is an awesome journey when you implement her techniques and strategies.