Posted by rayrick on May 19, 1999 at 14:06:10:
Was it a short time? That’s funny, it didn’t FEEL very short! lol Thanks Mark :^)
-Ray
A signed contract! Hallelujiah! - Posted by rayrick
Posted by rayrick on May 19, 1999 at 13:27:21:
Just wanted to share my excitement with my CREOL pals. FINALLY got my first contract signed up.
The deal:
Giving the sellers $1K at close and buying the house “subject to” via a land trust. Remaining loan balance: $72K.
I pay closing costs. FMV, high 80’s to low 90’s. Monthly payments $870. Probable rent on a L/O, $1000/mo. I agreed to make the June payment, but it’s only $655 since the taxes and insurance are not rolled into the mortgage.
Now, I just need to sell this thing somehow. I’m debating between a L/O or a retail sale involving me taking back a second, since there is a decent amount of equity there. Any thoughts? My upfront expenses will probably be slightly north of $2K when all is said and done, but that would still be nicely covered by option consideration, should I decide to go that route. The house is a spacious 2/1 in an attractive area.
Yeehaw! Many thanks to all the CREOL community for your invaluable help and encouragement.
-Ray
Ray ray ray - Posted by Redline
Posted by Redline on May 20, 1999 at 15:34:17:
Congrats Ray!
Now wipe that HUGE SMILE off your face and get to the next one!! 
RL
PS - I know, you were smiling BEFORE you had this deal, but anyway …
Good job Ray! - Posted by Rob FL
Posted by Rob FL on May 20, 1999 at 14:56:18:
I thought they couldn’t do that where you live ? LOL
Look within for thou art the BMF. (nt) - Posted by karp
Posted by karp on May 20, 1999 at 11:43:33:
(nt)
WAY TO GO!!! now…on to the next FEW!! - Posted by Jim IL
Posted by Jim IL on May 20, 1999 at 24:03:36:
Ray,
The good news is that this high will last a while. Use it! Go get more!!
Once you know the feeling, you are surely hooked!!
They become easier with time!!!
Again,
Congrats!!!and nice job!
Jim IL
Re: A signed contract! Hallelujiah! - Posted by SCook85
Posted by SCook85 on May 19, 1999 at 22:33:39:
Congratulations Ray!!!
This is what I would do. I would advertise the home as Rent to Own or Owner financing. Advertise “No Credit Check with 10% down” This has really cut down the number of calls that I get but they all have cash when they do call. Sell the home for at least $90k and if you find someone with $9k down, wrap the underlying mortgage at 10% or so. You will more then cover your $2k outlay, and get a nice positive cash flow on the payments, plus you will still get a backend profit.
If you find someone with less money down then you can go the L/O route.
Good luck with it!!!
SCook85
Attaboy!! - Posted by SandyFL
Posted by SandyFL on May 19, 1999 at 19:56:13:
Now go get another one.
Yahoooo, Ray! - Posted by J.P. Vaughan
Posted by J.P. Vaughan on May 19, 1999 at 17:01:01:
Congratulations, Ray. We’re proud of you!
JP
Re: A signed contract! Hallelujiah! - Posted by Reif
Posted by Reif on May 19, 1999 at 15:01:10:
Another option is a low down wrap. True, it does have the same foreclosure implications as carrying a second, but I think the spread might be better and the payoff larger on the back end.
Just another thought.
Reif
Re: A signed contract! Hallelujiah! - Posted by phil fernandez
Posted by phil fernandez on May 19, 1999 at 14:27:04:
Yee Haw Ray,
Nice going. Wondering if it wasn’t your new used Volvo that did the trick.
Anyhow it seems you could go a couple of routes here that you mentioned above.
I like the lease option route. Get some upfront option money from your tenant/ buyer to offset your $2,000. Then try like a madman to get your tenant/ buyer qualified through a mortgage broker to get financing. You get a nice payday if you can get them a mortgage.
I also like the lease option more than you taking a second because if your tenant/buyer on the lease option defaults it will be easier to get rid of them. If you hold a second and they default you will have to foreclose. And that will take time and money.
Also in favor of the lease option is the fact that you know them inside and out.
Congratulations Ray! - Posted by Mark R in KCMO
Posted by Mark R in KCMO on May 19, 1999 at 13:59:22:
Ray,
You have come a long way in a short time, congratulations are in order!
YOU have taken the time and the $$$ to invest in yourself and learn the skills that you needed.
Now go find another 10 or 20 more this week!
Mark R in KCMO
Re: Tenacity pays off! - Posted by Stacy (AZ)
Posted by Stacy (AZ) on May 19, 1999 at 13:39:02:
Congrats, Ray! The first one is a natural high, isn’t it! Now you’re hooked. Get right back in the saddle.
Stacy