Here is a deal I did that made me a nice bit of pocket change. I went to see a house where the lady had seemed mighty motivated over the phone. But, after sitting with her and explaining the details of how I could help her, we both determined that she was not motivated.
After arriving home, I received a call from a lady who needed out of a house quickly. I asked her how she had heard about me, and she told me that her son had seen my truck at the previous house with the magnetic signs on it, and he called her.
I met her at her home, and we went to the house she needed to sell. After looking at it, I determined that it was WAY too slim for me. But in our conversations, she told me about another house she had. We went to that one, and here are the numbers with the house that was taken “subject to.”
20-year-loan with $44,000 due. (This loan has been paid on since 1994. I like that a lot.)
$677 PITI
$2,400 behind
$1,600 to seller (The house appraised at $79,000)
$1,600 in fix up
I listed it FSBO at $82,900 One month later, I was worried. After networking with another Houston investor, Alan, I found he had a house he had just sold with two buyers. I had flipped that house to him, by the way. He “flipped” one of the buyers to me for a finders fee, “Pay backs, I guess!” and I had it signed up for:
$4,125 Non-refundable option consideration
$925 1st month’s rent and $925 per month for a year on a lease option
Thank goodness for William Bronchick’sReal Estate Cash Cow and Big Profits with Lease Options courses! They helped me through all the way.
This house will probably turn into a Contract for Deed after a year and 5% more down at 11% interest.
I also sent the person who owns the property “free and clear” a letter stating that I was in the process of reorganizing my debts and would be interested in paying off her loan at $25,000. We will see what she says! Don’t ask, don’t get! All this over being in the right place at the right time with magnetic signs costing $79!
My father-in-law passed away this weekend, and it was him, as his mind deteriorated with Alzheimer’s, that gave me the courage to go full-time with real estate investing. I did not want to work my life for someone else, and when they decide I can retire have something like that happen to me.
After losing my wife’s grandmother on Christmas day, we both made the decision that I would not travel every week. I went full-time the day prior to the CRE Online Convention, so we hit that goal! Nine houses this year and two more about to be signed up, so we are doing okay.
Thanks, to all who those here who have helped me out tremendously! You’ll never know the help ya’ll have given, nor how much it is appreciated!