Close

$30,000 Cash Plus More in Equity in 3 Months

by Terry (Houston)   

In December 2000, I purchased Bill Bronchick's How to Create a Real Estate Cash Cow course and had listened to the tapes, and then attended his Business Organization seminar.

On 2-16-01, I purchased a house and 10 acres of land, subject to the existing loan, for $125,000. I paid the seller $2,500 and will make up backup payments of $2,800.

The house and one acre have an appraisal for $180,000! Six bedrooms including a mother-in-law suite, one game, room and three full baths. It needed work to get there, but I felt this was a sure thing.

I used the "subject to" paper work in Bill's Cash Cow course, with the Letter to the Lender, Authorization to Release Information, CYA, POA and Letter to the insurance company to complete the deal. I did my due diligence and created the Warranty Deed and had my "closing" with my bank notary.

The contract was Bill's purchase contract with the addendum explaining subject to and that the back payments would not be made until a buyer is found. They did not care as I was taking a great burden off of them.

We started work on the house and had one room painted when a husband and wife drove by, saw the sign and asked my contractor to see the house. He (my brother-in-law) said of course.

We "closed" using Bill's contract for deed and promissory note on 2-25-01. The house had been in a flood in 1994, and I emailed Bill for advice on how to word the disclosure. He emailed me back in no time, and the contract was signed.

Sale price: $154,900
Down Payment: $20,000
PITI for March: $1,598.51
Int.: 11%
30 years with a two-year balloon.

The buyer has said when his house closes, he will be paying this off.

I paid for an ad in the paper, $20, the paint and the labor for the room. My brother-in-law wants a finder's fee; what do you think?

Not a bad few days. My mind was at ease using Bill's contracts and having him answer my questions. Do you think I have a good return on investment for educating myself with Bill's courses, seminar, and mentoring?

This was the 4th deal I have completed since attending the seminar. On the others, I have a profit of $25,000, $11,000 and $17,000. Two of those were sold on a lease option using Bill's materials and the other was sold on a contract for deed.

I have put $30,000 in my pocket since the boot camp with the rest coming in equity. I have done other deals before, but not like this. I have also restructured my business entities to reflect strong asset protection and maximum tax reduction using the advice from the material I received from Bill's programs.

How To Form Your Own Limited Liability Companies
How To Create A Bulletproof Corporation
Your Step-By-Step Guide To Land Trusts

I have received great feedback from the CRE Online Forums on so many questions. I thought I would add my story. It is possible, and when I go full time and quit my JOB, I may just be dangerous.

 
Loading subscribe form...