Dan,
Again your advice and Ron’s training paid off! We have another sandwich lease-purchase.
This success was from another yellow letter response through Pat Live. When we first contacted the seller, the price was $50,000. The house needed around $5,000.00 in work, but was certainly habitable. The ARV was $65,000.00. After a discussion with you, we knew our exit strategy would be a work for equity. Using Ron’s technique, if I pay all cash and can close immediately, what’s the least you would take and the follow up, best you can do? She finally agreed to $40,000.00.
When we went to sign the paperwork, she began to have doubts. Again using Ron’s training, I told her and I meant it, if this is going to keep you up at night, I would prefer you not do the deal and then I shut up. She thought about it for at least 2 minutes or longer, while nothing was said. She then turned and said, hand me the pen.
We signed the deal for $40,000.00 with a 5 year balloon note at $450.00 per month with nothing down at 0% interest on a lease-purchase. Three weeks later we had an agreement with a tenant buyer for $50,000.00 purchase price. We got $5,000.00 option deposit and $700.00 per month.
At the end of 5 years we will owe $13,000.00 and tenant buyer will owe $33,000.00.
Profit if it goes 5 years is $5,000.00 + 20,000.00 + $3,000.00 = $28,000.00.
Tim Howard and Greg Howard
Shouldn’t the total payoff be $5000 deposit +$20000 backend at payoff +$3000 a year for 5 years ($15000 total rent spread) for a total payoff of $40000?
P.S. I haven’t even been to boot camp yet, let alone done any deals like they have, but this seems like simple math to me. Can someone please tell me what I am doing wrong?
MARK, I believe they are giving $200 a month as rent credit. This equals $12000 in 5 years + $5000 they gave already, $17000. That’s why balance is $33000.
Thanks for the help, Fernando. I just got my cash flow systems course. I guess I am going to have to really start studying it so I can start figuring this stuff out for myself. Anyway, thanks again for the help. Have a great holiday.
Hello Tim & Greg,
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 investors. 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
That is how it is done! Great job and great job with the negotiating. It seems that the training came back to you when it was needed! Blessings to you!
Hello again Tim & Greg,
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 Tim & Greg,
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 Tim & Greg,
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.