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Home » Resources » Millionaire in the Making – Jeffrey Weiller

Millionaire in the Making – Jeffrey Weiller

YEAH BABY!!! Three cheers for Ron LeGrand & Eagle VAs’, Christine Nash. I would never have done this without them….

I just closed a $25k profit deal with no skin in the game. Today’s $15k up-front check is attached plus $10k on cash-out financing that a wholesaler threw away because it wasn’t cheap enough.

I insisted the owner put the property in a trust at closing to avoid probate and messing up the deal if owner died; memorandums and affidavits of trust deed into trust note mortgage purchase option and lease all recorded today…

We closed with an attorney over a 2.5 hour dinner because older owner wouldn’t travel 1 hour to his office.

Here’s the Deal…

Fact Pattern: Yellow Letter Mailing Out of town owners, but collided with a young wholesaler friend of mine who could not sell this to a rehabber due to mortgage — he also refers these types of deals to me.

Probate property – 74 year old woman inherited the property from her brother and had cosigned a $140,000 mortgage with a payment of $1245 per month PITI.
Town: Tough urban CT town in a C minus neighborhood. Owners of CTREIA won’t go near it.

As-Is Value: $150,000

Cost To Sell Valuation: $120,000

Owner Motivation: Payoff principal outstanding balance on note of $100K and recover the $50K sunk into the property. She needs to net $150K and not evict anymore bad tenants. She’d previously failed selling via 2 traditional brokers.

Property is a 3 bedroom, 1 bath, 1957 ranch-style with hardwood floors and walk-out basement converted into a full 1 bedroom in-law apartment that rents for $800 per month. Has 1970’s finishes throughout.

Solution: Purchase Option $150,000 with 5 years for $10 note and lease the property for 5 years at mortgage payment of $1245 per month with no payments due until I found a renter for the house.

I put it under contract 4-21-2015, and turned down a lot of dirt bags and hunted for the right people.

Closed today.

Found a lease option buyer who makes $5K per month on the books. He’s been with a Fortune 10 company for 22 years.
His first wife died of cancer and caused financial problems from death, but remarried and got back on his feet. His new wife makes $2K per month off books.

They Lease Option the house for $15,000 option fee (the couple only had $11,000, but went and borrowed from mother-in-law another $5K and ultimately put together $19,000. Of which, we got $15,000 and $1,600 first month’s rent leaving them with a $2,400 cushion.

Terms are $1,600 per month and $175,000 purchase price for 3 years, and after year 1, rent goes up 10% per year and price goes up 1% per month pursuant to attorney docs.

The couple put $1,600 first month’s rent to take the property off the market while we credit checked and verified income.

Today, I allowed the deal to be made directly with owner in consideration for surrendering my purchase option for 5 years at $150k and my lease for 5 years at $1,245 monthly.

I was paid $15,000 at closing and also received a note and mortgage on the property for $10,000 which in total covers the difference between my purchase option of $150k and the PTHO purchase option of $175k…plus any increases in the price paid pursuant to the option are added to my note if the buyer has not gotten a mortgage and cashed out within 12 months.

The in-law apartment which rents for $800 per month will bring in $9,600 per year in income allowing time for prep for renting and leasing. Two and a half years of rent is $24,000/15,000 down payment is a 160% return or 64% per year, so they win even if they don’t finance out.

When they do finance out which we anticipate within 12 months, their payment will drop to about $1,200 PITI less $800 per month from the apartment and is a $400 monthly housing cost.

Check for 55 Bradley

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8 Responses to Millionaire in the Making – Jeffrey Weiller

  1. Shay Lance says:

    SWEET!!!! Congrats. Way to work it.

  2. Dean Lemont says:

    Congrats! Very interesting – thanks for sharing your thought process. It’s like you found an outside the box way to wholesale it! Nice!

  3. Kevin Plocher Jr says:

    Awesome Congratulations!!! Keep up the momentum!!!

  4. A. Darnell Marion says:

    Way to go!!!!!

  5. Robert Straker says:

    Hello Jeffery,

    Congratulations and good job on the deal! I am proud of you and your efforts. Glad to read that you made some good money and are becoming a successful real estate investor. I am new to Planet Ron, and am working on my first deal. One day I too will be able to post a success story like yours. Take care, keep up the good work, and keep on investing.

    Bye for now,
    Robert

    Reply

  6. Tony and Angie Stewart says:

    How cool is it that we make money helping people? Great job in using the resources of Planet Ron to do a deal! Be Blessed!

  7. Robert Straker says:

    Hello Jeffery,

    Congratulations and good job on the real estate deal! I am proud of you and your efforts. Glad to read that you made some good investing decisions and are becoming a successful real estate investor. I am new to Planet Ron, and am still working on my first deal. One day I too will be able to post a success story like yours. Take care, keep up the good work, and keep on investing.

    Bye for now,
    Robert

  8. Robert Straker says:

    Oh by the way Jeffery,
    How many other deals have you done since this one? It would be interesting to find out what other deals you have so we can all learn from you experience and perhaps use that knowledge to help ourselves make us successful. Thank you and take care.

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