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6 Deals in 58 Days Yields $42,250 CASH

by Scott Smith, AKA Scott (AK)   

After seeing a recent post on the Main Real Estate Forum, I thought it may be nice to share what I have been able to accomplish as a new investor working the real estate investing arena part time while holding a full-time job in the military. The six deals I will outline all took place in a 58-day span working part-time hours.

Before getting into the details I would like to first say, I have found the key to success is in the marketing. I often play monkey see, monkey do with Joe Kaiser. I learned the basics of lease options from Joe and his course, The Ultimate Lease Option Strategy.

After doing a deal, I supplemented that education with Bill Bronchick's Big Profits with Lease Options. With the education I gained from the two of them, I have been able to go far beyond what I could have imagined being able to do in one year.

In the interest of space, I will first say that I got my deals using a combination of a few different marketing techniques. Two of my deals came directly off my ad I run every day in our local paper (unless I am out of town on military obligations).

Another deal came from the ad but in a strange way. These folks called my ad from out of state after seeing the ad on the Internet. When you place an ad in the paper, it is also put on the online version of the paper.

Two other deals came from a postcard campaign I did to out-of-state owners after watching Joe Kaiser go crazy with the technique. Finally, another deal fell into place after sending letters to military transfers, a technique I outlined in the Success Story of my first lease option deal, Perseverance Payoff: $8,000. Now onto the numbers and the exit plans I used for each deal:

Deal # 1:

FMV= $225,000, no money down up front, buy at $195,000 within four years, $1,550/month payment.

I assigned this deal with the sellers approval for $15,000. I got $12,000 in cash and held a note for the remaining $3,000. The terms of the note are $500 per month with 0% interest for six months. If the assignee is late, we put a 10% penalty on the balance of the note.

Deal # 2:

FMV= $125,000, nothing down up front, buy at $121,500, four years' control, $992/month.

I did a sandwich lease option on this one. $5,500 up front, $1,295/month, buy at $129,900 in twenty-four months.

Deal # 3:

FMV= $126,000, nothing down up front, buy at loan balance at the time of purchase ($119,000 now) plus $5,000, $1,042/month, four years' control.

I did a sandwich lease option with this one, also. I got $5,500 up front, $1,300/month, buy at $136,000 in twenty-four months.

Deal # 4:

FMV= $177,000 nothing down up front, $1,323/month, buy at $173,000, four years control.

I assigned this deal with my sellers approval for $7,000 CASH!

Deal # 5:

FMV = $122,000, nothing up front, $980/month buy at loan balance (now $118,500), four years' control.

I assigned this one with sellers approval for $6,500 CASH!

Deal # 6:

FMV= $154,000, nothing down up front, $1,264/month, buy at $151,500, four years' control.

I did a sandwich lease option with this one. $5,750 up front, $1,450/ month, buy at $161,950 in twenty-four months.

The total profits from my efforts during this fifty-eight days:

$42,250 in up front cash or assignment fees.

$1,247 each month in cash flow ($500 from the note I will lose after six months).

$14,100 in possible back end profits on the sandwich lease options IF the tenant/ buyers exercise.

Let's dream just a bit and say they ALL actually exercise, that is roughly $78,272 profit within twenty-four months off just six deals.

So hopefully folks will see the power of investing in real estate even if it is part time. It takes effort; but with the effort placed in the right areas, you WILL come out a winner.

I asked around my work to see if anyone was making that type of money at the part time jobs they have. I couldn't find one. I think I can make believers out of them when I decide to roll up in my new vehicle that my part-time job has for us "workers" to drive around. Even on our full time jobs!

As a side note, I took three weeks' "vacation" from my part time job, at the request of Uncle Sam to go to a training exercise, came home, and ended up with another deal in the works from another out of state owner. Just place your efforts in the right place and get out there, if even part time.

 
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