Posted by Matt B on April 13, 1999 at 13:53:18:
My “we buy houses” ad also includes “we take over payments”. This seems to generate the most l/o leads. I have had a couple of buyers calling me on that ad also.
Anyone need inspiration? Here ya go… - Posted by Matt B
Posted by Matt B on April 11, 1999 at 13:24:02:
I beginning to think that there just might be something to this creative real estate thing…
I just came back from signing the papers on a great lease option deal. I had got the call on my ad Friday, looked at it yesterday, and signed the contract today. (Can’t steal in slow motion. Sellers said that they would have just “dumped it” to the first person who gave them a decent offer.)
Here’s the details… 4 bedroom, 1 and a half baths house in a beautiful neighborhood. In “as is” condition, it appraised for $62,000. There is a mortgage balance of $24,700 on it with payments of $331. It had been rented out by a couple who got burned badly by a bad tenant. They had even done a lease option deal with the tenant. (although they did it TERRIBLY wrong. When they had to evict, the magistrate asked them the tenant’s name. They didn’t even know the tenant’s last name. They told me that the tenant had trashed the place, so it needed repairs. They said that they were “willing to work with me” on the price.
Over a 25 minute phone call, the price dropped to $58,000, then $54,000, then $48,000, and finally to $42-43,000. (It really pays to shut up and listen. I did NO negotiating on the price. They dropped on their own!) I thought that this would be a good flip candidate since it needed repairs. So I went to check it out.
When I checked it out, it wasn’t as bad as I thought it would be. They had already put in a new kitchen floor, repainted one bedroom, repaired damage to the bathroom, etc. As I shut up and listened, the husband told me how he intended to paint the other bedroom, put up new paneling, replace ceiling tiles, etc. I began to think that I didn’t need to flip this as a junker if he was repairing all the damage. So I switched to lease option mode.
As I explained a lease option to them, they stopped me and said, “Oh yeah, that’s what we did with the woman who was in here.” I thought for sure that I wouldn’t be able to do the lease option at that point since they had been burned so badly. However, the wife said “Keep talking.” So I did. I gave them the basic overview and ended with an option price of $40,000. I didn’t even mention the repairs. The husband then said, “Well how much work do you want us to do to the place?” I told him that I didn’t want him to have to put a lot of money into the place, (I’m such a nice guy!) but he interrupted and said that he already had planned to do it, and had most of the supplies. He even said that he could pay some buddies from work to come help him finish up!
So we signed today at a McDonald’s. They told me that they were happy that it was me who was buying the house. I don’t have a payment due until July 1st. The husband will fix it up to perfect condition by May 15th. (It’s all in writing) They gave me the payment book and a key to show the house. When we were discussing the repairs, the husband said, “Well, I just want to be sure that you can make a profit.” What a nice guy! I like people who want to help me profit from a deal!
I should be able to rent the place for $700. Nice spread, huh? $369 a month. I will sell for $65,000. I had a friend who lived up the road from this place who was able to sell his house in 7 days! (Good neighborhood!)
I have 1 more l/o deal under contract, and one more that I should get a contract on by Friday. If I do not get a tenant/buyer in this place quickly, I’m thinking of moving there myself. I think I would enjoy bragging to my brother about getting into a beautiful 4 bedroom house with no money, bad credit, and for a $331 monthly payment!! He paid $65,000 for his 2 bedroom house with a 20% down payment that he had been saving for YEARS, and excellent credit.
Anybody know if this creative real estate thing really works? Or should I maybe go beg for my job back as mommy said to?
You’re making it really hard… - Posted by Baltimore BirdDog
Posted by Baltimore BirdDog on April 15, 1999 at 12:28:38:
…for me to come to work every day (for someone else , that is). I’ve made a pact to build up a financial reserve before leaving, and I’m sticking to it, but man do you make it hard!!! Way to go!!!
-Jeremy
Re: You’re on your way! - Posted by Stacy (AZ)
Posted by Stacy (AZ) on April 12, 1999 at 12:30:15:
Matt, nice going! I’m tracking your progress, so keep us posted. Won’t be long until you are making more income than that old J.O.B.
Stacy
Re: You’re on your way! - Posted by Stacy (AZ)
Posted by Stacy (AZ) on April 12, 1999 at 12:26:30:
Matt, nice going! I’m tracking your progress, so keep us posted. Won’t be long until you are making more income than that old J.O.B.
Stacy
Great going Matt! - Posted by HR
Posted by HR on April 11, 1999 at 23:02:06:
Hey pal,
Nice going! Matt, this would be a great home for you to move into. You could live in this home two years and then sell tax free for some future capital for rei deals. Plus, in the meantime, you enjoy a nice home in a nice neighborhood with a small rent. Great going!
HR
Re: Anyone need inspiration? Here ya go… - Posted by Mark Nyman
Posted by Mark Nyman on April 11, 1999 at 21:23:49:
What did your ad say?
Did you find your customer through your ad? If you didn’t how did you find the customer?
Re: Anyone need inspiration? Here ya go… - Posted by Jim IL
Posted by Jim IL on April 11, 1999 at 16:33:18:
Matt,
As always, your posts are VERY inspirational.
It is GREAT to hear of your success.
Especially after meeting you. It is nice to see someone we actually know do deals just the way we are trying to do.
WAY TO GO!!!
Keep it up!
It is funny, deals seem to come from the most unlikely places sometimes, and even after you hear “horror stories” such as the one you got from your seller.
Obviously it was your approach and attitude that won this one for you.
I am proud to know you and call you my friend.
At next years convention we are gonna have a lot to talk about.
We are also moving into the L/O mode, so take care, and keep sharing…I’m off to make some calls.
Jim IL
Re: Anyone need inspiration? Here ya go… - Posted by JohnBoy
Posted by JohnBoy on April 11, 1999 at 14:36:59:
Very nice deal Matt!
But I thought it couldn’t be done where you live??? LOL