Barbara and mentors,
Thank you for all your help, expertise, and motivation. I closed on the property Friday morning.
This is a 2/2 1250 sq ft condo, on the water, in a 55+ community in Florida, made up of 18 buildings. I heard about it when a neighbor of the owner told me she was thinking of selling. (I had posted on FaceBook that I was looking for property in Gulfport, Florida). I had an appointment with her an hour later. As I was sitting in her living room, what ran through my mind was Barbara saying that I needed to get three numbers: price, down payment, terms.
The conversation was surprisingly easy going because I remembered my coaching- don’t talk too much, let her make the offer, focus on getting the answers I need. And I knew I could call Barbara (which makes a significant difference). One of my fears is of being left hanging, unable to answer questions, and having to walk away feeling foolish.
The value was $225,000, price to me of $162,000, nothing down, owner financing at 3%, 5 year balloon, first payment due in October. Barbara reviewed the contract and made some changes. And the seller agreed with the contract until she met with her lawyer/ financial advisor. He insisted she get 10% down and 4% interest. Because I could, I agreed to that.
She was also concerned about getting rid of her furniture, etc as she was downsizing. Whatever she talked about, I said: “Oh, don’t be stressed about that, I can take care of it for you.” I ended up getting a fully furnished condo right down to the coffee pot and silverware!
My instant equity is $63,000 plus my $16,000 down for $79,000. The total payment and HOA comes to $1,100. It will rent for $1,900 leaving me with $800/month income. I will recover more than my down payment when I sell it with a Lease/Option deposit. And my equity will continue to increase monthly. There will be a big payoff when it actually sells.
If it wasn’t for the mentoring by Barbara, I would still be sitting at home thinking about it, afraid to pick up the phone and call the owner. It also makes such a difference knowing I can have my mentor on the phone with me when I visit the property.
Thank you, Barbara Cockrell! You are the best!
Yes, like her also, and may want her to be mine also.
Most of the deals I’ve come across you have to cover the down payment and closing costs before you start earning an income. So it’s not, “something for nothing”.
Great deal and thank you for sharing!
Great post Winnie!!! I’m still working on getting my first deal and your sharing this post keeps me encouraged. Thanks!!
Hello Winnie,
Great job on the property. I am glad for you. I hope one day to have a nice piece of property like that somewhere out there. For now, I am looking for my first deal. Best of luck to you and keep on investing.
Bye for now,
Robert
This is a great story. Thanks for all the detail. It helps to hear more examples of deal structuring.
Also, great to have a “phone a friend” situation with your mentor. Keep pushing and congrats!
Hello Winnie,
Congratulations and good job on the seminar! 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 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
Hello,
How many other deals have you done since this one? We would all like to know. Please post more of them so we can read about your success, and hopefully motivate more people to be successful like you.
Hello Winnie,
I am working on my first 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.