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$5,000 Quick Cash on an Assignment

by Marie Hutchinson, TX   

Once again, Creative Real Estate Online has provided the knowledge and information to help us make a very nice profit. Here is a copy of the e-mail I sent to Frank Bucholtz yesterday.

Hi Frank, Hope you're doing well in PA. We're all doing great down here in Texas and staying real busy.

You don't know how much we appreciate what you've shared with us from your experience. Thanks for your participation in Creative Real Estate Online Main Real Estate Forum. We've learned so much from that very special forum.

Let me fill you in on our latest deal...

We signed a purchase agreement on a house a week ago. They told us it was 2000 square foot living area. We figured they were asking about $15,000 under market value (based on square footage). It also had an assumable FHA loan with $5,000 down and 28 years left at 8%. Well, we signed a buy/sell and then every thing started to go wrong.

1. The house is only 1578 square feet so the asking price is market value. We have a bank that will work with us to finance 80% of the appraised value, but in this case we would have to come up with $15,000 cash for down payment. That's not our real estate investing strategy! (Little or no money down is our strategy.)

2. We can qualify for FHA Assumption but only as owner occupants. NO INVESTORS ALLOWED!

Well it looks like we're gonna have to back out of this deal because we surely do not want to put 20% down out of pocket on this house. We've got thirty days...

Interesting turn of events...A couple of days after we signed and put up earnest money, a family starts begging the sellers to sell to them. They offered $10,000 down and assume where we had offered $5,000 down. This lady who wants to assume is a real estate agent. You'd think she'd know better. Well, our sellers can't do anything for thirty days because we have a contract.

Well, Frank, to make a long story short--because of what you taught me about assignments and with the form you shared with me, we are assigning our rights to the contract to these people and are making $5,000 profit on a house we don't want to buy anyway!

WIN! WIN! WIN!

The sellers have their house sold and can move immediately.
The assignees can assume and move in immediately.
We make a quick and easy $5,000 and don't have to do anything but sign two pieces of paper!

[Editor's Note: This is the second "Success Story" Marie has shared with us. See $17,000 Profit In Three Months below.]

 
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