Millionaires in the Making – Todd Foster & Alecia Phillips

Hi Ron, Brian, & Lynette,

So we have our first deal officially closed!!!

The Tenant/Buyers closed last Friday with the Attorney, and we got a check for $12,000 (non-refundable deposit) and another for $1,500 (1st months rent). The total non-refundable deposit was $15,000 (we collected $1,000 after application approval, and they are paying an additional $2,000 towards the deposit at tax time in a few months).

We just wanted to say THANK YOU, THANK YOU, THANK YOU! We spun our wheels in real estate for awhile before meeting you two at Ron LeGrand’s event. Your “What to say” system is quite honestly the coolest thing ever invented. Knowing what to say and how to respond made our lives so much easier and gave us so much more confidence.

We are almost embarrassed to admit the number of Real Estate Investing systems and manuals that that we’ve purchased in the last couple of years. Don’t get me wrong, there are a lot of good ones out there, but nothing quite like your ‘What to Say’ system. We can’t thank you enough for teaching us what to do, what to say, & exactly how to say it. It was exactly what we were searching for and needed to get us going. We’re also so very grateful for Ron LeGrand and his 6 month mentoring program. Having the two of you as mentors made this process so much simpler, we couldn’t have done it without you! (I can’t believe we were actually debating whether to sign up for mentoring when we were at Ron’s event, looking back now it seems like such a no-brainer.)

In case you were wondering, here were the details of the deal:

It was a sandwich lease/option deal.

Purchase Side:
Monthly Rent = Sellers monthly payment of $1,402.62
Option to Purchase = Loan balance at time of option exercise (Current loan balance is approx. $181,250.)
Option Deposit = $0

Sale Side
Monthly Rent = $1,500
Purchase Price = $219,900
Option Deposit = $15,000 Total ($13,000 of which has been received – 1K collected at time of application, 12K was collected at close, and an additional 2K to be collected prior to April 30, 2014)
1st Payment due in 3 months

Profit:
Option Deposit = $15,000
Additional Equity = $23,650 ($204,900 – $181,250)
Monthly Cash Flow = $97.38 / month
Plus since it only took 1 month to get the Tenant/Buyer, their first two rent payments off $1,500 all go in our pocket since we don’t make a payment to the seller for 3 months!
Principal Loan Paydown = unknown, but it’s icing on the cake
So if you add an additional $400/month estimated profit from the principle paydown over the next year and they cash us out, we figure the total profit will be a little over $47,600!!!!

We are excited for many more deals, a future of success and being able to design our lives using Real Estate as a vehicle. We absolutely couldn’t have done this without you!

We attached a copy of the deposit check & a picture of us with our daughter holding the check (well, a copy of it anyway!)

Best Regards,
Todd Foster & Alecia Phillips