Lets recap my first deal:
Investor wanted to assign contract to me on property with ARV of $110,000 for $200.00 earnest money. Contract was to buy all cash at $56,000. Property needed $15,000 in minor cosmetic clean up repairs. After I could not sell to another investor or any other party for an all cash price, I approached seller and ended up taking the property subject to the existing financing at balance owed of $53,000 plus closing costs of approximately $670.00. Seller agreed to make next 2 months mortgage payments of approximately $700 per month.
At closing table seller surprised me by giving me a check for the next 2 months mortgage payments which in essence he paid me to take the property off his hands. By the way I was some what worried about this (needlessly), but the seller was super appreciative of me helping him out.
We advertised the property with ugly signs in front yard, front window, and on each end of main street leading to property. We ran ads on Craigslist and Zillow every week offering an open house for 1 hour each weekend day. Our ads all said no bank qualifying, work for equity, special programs etc.
Today, 63 days after first taking possession, we have sold the property!!!!! Closed this morning!!! Besides advertising, the worst we did to the property was cut the grass, clean one very ugly shower and clean the refrigerator, LOL, previous tenants left plenty of food in Freezer and Refrigerator and the power had been off since early July in Middle Georgia. YUK!!!! My son was not pleased but he did a great job cleaning the fridge and the shower. He’ll be OK, I paid him $350 and he is currently an unemployed teenager who thinks thumb twiddling is a life skill.
So details of closing – We sold using owner financing. We wrapped the existing mortgage. Everything closed by attorney. Selling price $80,000! Buyer paid $6800 down non refundable. We agreed to take $3400 cash up front and to $141 per month for next 24 months to cover down payment. Buyer is paying $850 per month. We expect to see at least $20,000 when the buyer finally cashes us out. So we hit the big 3!!! 1. We have a good size check up front, 2. We have positive cash flow of about $240 per month for first 24 months and then $150 month after that. And 3. We expect a big check on the back end.
Buyers agreed to credit enhancement provided by Screen the Tenant ( Fabulous resource!!!)
Wow! Cannot wait to get more in the inventory!! Thanks Tony for all your help! And thanks Ron LeGrand for your wonderful teachings!!!
Congratulations, John! I knew you could do it!
This is the first of many more to come.
It was truly a pleasure to mentor you.
Keep going,
Tony Pearl
Great job. This is a great example to remember to renegotiate
Glad to see that you Can always renegotiate and find different exit strategies
Hello John,
Congratulations and good job on your real estate deal! I am proud of you and your successful efforts. I was 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
This is great! Great job putting your son to work 🙂 and great job navigating through this deal. Kudos to Tony for taking another mentee over the finish line!
Hello again John,
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
Oh by the way John,
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.
Hello John,
I am working on a deal right now and hope you are reading this comment so as to replying and giving me some words of encouragement, advice, and support. I sure could use it so that I too can be a successful investor! Maybe I’ll hear from you soon? Take care.