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No Money Down - Cash Crank

by John Reynolds   

I found a single-family home appraised at $149,000. The seller had $62,000 in equity. I offered $105,000 all cash, which was accepted. I found a partner to front the $105,000. Refinanced the property at 80% of market value for $119,200.

I pulled the $105,000 out and split $14,200.00 with partner. I lease optioned the home to new buyer at 10% down with same payments as $119,200 refinance. I pulled another $14,900 cash on down payment and financed the balance of sales price of $134,100 at 6 13/16 percent.

At the end of thirty years, the lessee can purchase house for $10.00. Because I have already pulled $29,100 out of house and have not used a dime of my money, If lessee ever walks, I can do the same thing all over again.

 
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