Bank-Owned Foreclosure Nets $8,000

First I would like to thank everyone who shares their secrets and ideas on this incredible site. I have found a wealth of info almost every day.

A Realtor who laughed at me when I was first getting going in real estate investing (and told me I’d never, never make it) phoned me about a bank-owned foreclosure he had. The bank was very hurried to sell. After going in circles with offers for three days by fax, we settled on $15,000.

This was a little single-family rental partially turned into two apartments and had five acres and town utilities. As soon as I got it under contract, I ran an ad in the paper: “Owner finance, $28,000, $2,500 down, payments $275 per month for fifteen years.” I got fourteen calls and had the $2,500 in my hands eight days after I ran the ad.

I used her money to close with a hard money lender I know. I am now in the process of selling the $25,500 note discounted for $23,500, and they will pay all my closing costs. This is before paying one mortgage payment. Every thought of this deal came from reading this site of yours faithfully and putting the ideas to work.

It cost me 10% down ($1,500) and $686 for closing for a total of $2,186. I pocketed a little over $300 of the down payment she gave me and will make another $8,000 after I sell the note. We didn’t even cut the grass or anything on this one!

I quit my job (network tech. for local communications company). It feels GREAT. We have several rehabs we are working on and will sell these for a good profit. My wife, Melanie, will work for a while, maybe until spring, and then we will be working together on OUR future. Thanks again for all the great info.

By CREOnline Contributor

A content contributor to the original CREOnline.com.