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A True Nothing Down Deal to Help a Friend

by Todd Toback, San Diego   

I have an awesome success story here in San Diego. I have submitted four success stories, but this one is probably the most gratifying.

I was making calls out of the paper when I found a gentlemen who received a condo in a trade. He owned it free and clear and told me he would carry all the financing with 0% down at 7% interest. Total price: $260,000.

Market price for the condo is around $260,000. ($280,000 at the peak of the market.) After some negotiations trying to get price and rate down, he would not budge at all. After some more prying, he said he really wanted to sell the property to an owner occupant. Then the lights went on.

I have a very close friend who has spent the last two years in the Peace Corps and is now a teacher. He was looking for a place to live, but with 100% financing. He has a strong but relatively short credit history, and his payments would be too high with a conventional loan.

Anyway, we submitted an offer for the following with my friend as the new owner occupant.

  • Price: $260,000

  • Financing: $0 Down/Owner Carry. Interest only at 5% for two years, 6% interest only for five years with a balloon due at end of term.

  • $500 Lowes Gift Card to the buyer at closing

The seller accepted, and they are closing today. No banks, no credit check, no hassle. A true nothing down deal. Even better, he is renting out a room for $600 per month, and with the tax deduction, he is paying less then he was paying for his mediocre apartment.

What do I get out of the deal? Well, my buddy fixes computers, so he is going to give me free computer service for life. But most importantly, we got a teacher into his first house.

Editor's Note: This is Todd's fourth Success Story! Read the others here:

 
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