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2 Deals Net $18K in 4 Days

by William Tingle, William GA   

I still consider myself a "newbie" in the real estate investing world. I often hear the "gurus" say to find a technique and perfect it before moving on to a new one; that will keep you from trying to do too many things at once. It seems like the deals that come my way, though, each require a different approach.

My first two were cash FSBOs that I bought with low cash sales, my third was a pre-foreclosure, my fourth was a sandwich lease option, my next two both came on the same day and were both what is called "subject to."

Deal #1:

Seller calls and says he and wife are divorcing. They have a house that is eight months old with a payment of $900 PITI. Interest rate is 7%. Balance of loan is $104,000 and market value is $112,000. He just wants out.

I drive out and look. House looks like no one has ever lived in it; I mean it still smells new. I look around, we talk for 10 minutes, and write up the agreement. We place it into a land trust and he assigns interest to me. He agrees to be out by the end of the month and will make the next month's payment since interest is paid in arrears.

I place an ad in the paper and put the house on our website. Four days later I have a signed contract with a buyer for $124.9k. $13k down and balance at 9% interest (yes, too low, I know) with payment of $1,070 per month for 30 years on Land Contract.

Deal #2:

Seller calls and says she is tired of living in house alone and wants to sell. She bought one year ago and has since purchased new car, furniture, etc. and wants to reduce debt.

House is 10 years old, in excellent condition, on lake in private community. Loan balance is $73k with payments at $573 per month at 7.25% interest. She is out by the end of the week.

I place ad in paper and on website and sign a lease option agreement with a tenant/buyer in four days for $4k down and payment of $700 per month with no rent credit. I also collect first years association dues from them with first months rent for a total of $5100 at move in.

Both of these sellers called on the same day and both of the buyers signed contracts on the same day. Wish I could have more weeks like this!

 
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