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11 "No Money Down" Deals in 1 Month

by Happy in Florida   

I did eleven "no money down" deals in January. I have bought just about every course and read almost every Success Story. Finally, I decided to share a little of my success with everyone as well. I would like to remain anonymous however. We'll just call me Happy in Florida.

I have been investing for about 2 1/2 years now. In January, I was able to buy nine town homes with a private lender, using a credit line for the down payment.

I had to evict a few tenants who were not paying. The owner had responded to one of the solicitations I send to people who have recently evicted someone and who own multiple properties. The evictions were a breeze, and they allowed me to raise the rents to market value ($100-$150 more). My plan is to refinance them in a few months.

The sweet side is even though they are all 100% financed (with most of it at 15% interest), I still receive around $900 per month cash flow. After I refinance, the cash flow will jump to a little over $2,000.

I also bought a preforeclosure town home for $49,000, by taking it subject to and bringing the seller current off of a credit line. I have it on the market as a lease option for $65,000. It should provide $100 per month cash flow.

Finally, a fellow investor called me with a lead that he did not think was worthwhile. Here are the numbers:

1st mortgage = $36k @ $432/month
2nd mortgage = $14.5k @ $319.94/month
3rd mortgage = $4k balance @ $174/month

Market value after repaired = $88,000

I explained to the seller that I could take over her financing, but that there was no way I could get involved unless she agreed to keep the 3rd mortgage until paid off. She said "Okay."

I then said that I would have to fix up the place before I could market it, and that I was not prepared to get stuck making the large monthly payment.

She offered to make the payment until it was fixed up! I countered by asking, "Why don't we just put a number on the payments that you would be willing to make?"

She agreed to make the next three payments. The seller had just recently had new windows and tile put in. She also had all of the plumbing upgraded. Her son was living in the house and had started many projects, but never finished them. I estimated $5,000 in repairs.

I marketed the home:

AS IS--RENT TO OWN--NO MONEY DOWN

I got a buyer one month into the deal. I have done no repairs. She is bringing $2,700 to the table and has agreed to do repairs before moving in. I will receive two more monthly payments of $900 each for a total of $4,500. The sales price is $88,500. Minus the 1st and 2nd mortgages leaves a back end of $38,000.

Well, That's all for now. I would like to say this to all the newbies though, I am in a county that is VERY DIFFICULT TO WORK. I personally know three other investors who have left and done great in other counties.

DO NOT LET ANYTHING STOP YOU! Look at the last deal...an investor gave it to me because he thought it was no good.

Just open your mind to become a solution finder. Sometimes in some areas it IS a little harder to make this work, BUT IT DOES WORK! Just try a different approach! Read the success stories regularly; you will find a wealth of creative ideas that work.

 
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