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"Subject to" Deal Gets Me $10,000 Cash in Hand

by Jerome Campbell   

I had purchased a course on buying real estate "subject to." I had it for three months before I decided to do something with it. After I stopped procrastinating and decided to take action, I was rejected twice before I found a deal.

The home owners were from India and needed to go home for personal issues, so they called me on a postcard I sent out. After about an hour of negotiations starting at $150K, we got down to $128K with no real agreement.

Finally I left thinking this deal was dead. Well a couple of days, later they called me back and asked If I could do better on the offer. Now I sensed they were motivated but still not enough so I could actually purchase the house, so I made a ridiculous offer of $2,500 which they thought was outrageous

I mentioned to them that I was working on a couple other houses and the winter months are the most difficult times to sell a house. I guess this set in because another week passed, and they called back asking me to come over.

To make a long story, short they accepted my $2,500 "subject to," and I agreed to give them another $3K after my buyers refinance the property. The balance is $118K; the property appraised for $165K; my buyer gave me $10K down with a balance of $150K.

I now have a cash flow of $234 per month with another $30K due in two years or less based on a two-year balloon payment from the buyer. The home owner has a brother who is willing to sell his home for $4K. His balance is $110K, it also appraised for $165K. Why did I wait so long? Thanks CRE Online for inspirational topics and courses.

 
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