Give up now - REI does not work - Posted by Darin
Posted by Darin on January 26, 1999 at 22:40:15:
4 years ago I was shopping for a home. Always heard you could buy a house with no money down. Familar with real estate but not creative deals I was shopping the paper and came across an ad that read “House for sale, will consider Land Contract…” bla bla bla. I then became interested and contacted the owner who lives out of state. Being the professional I am, I told the guy I had no money and bad credit but I like the house and wanted to buy it. Simply enough he said ok. The purchase price was 3 times more than I was looking to spend. My Grandfather thought I lost my mind, my father thought I was an idiot, My boss told me I just bit off more than I can chew and on and on with the negative comments.
I signed a contract for 180k with fair market value being around 160k. But hay, I moved in with out a dime. How, well my paymentw were going to be 1,500 per month so I got 2 roomates @ 400 per month with 1,200 each to move them in.
I did a few repairs and sold it for 220k, Thats 40k profit. During the time I was there, my payments were the same as rent or less, I got help on the house and in the mean time paid the land contract down 20k more.
I walked away from the closing with over 50k.
I then rolled that into a house in a hot area that nobody wanted to buy because of overgrown trees, a tar driveway that has never seen a coat of tar and a house painted in puke green.
I paid 155k for that house that appraised @ 175k and after a few repairs,185k.
Those two little deals have put me on the map.
If I would have for one second listened to a nevative remark and acted on it, things would be differnt now. Its that one deal that will get you going. Even though the first are the very hardest. We make mistakes, say stupid stuff, over spend when we could have gotten by cheaper, got less when we could have gotten more, get beat out by cometors,…
You learn by doing and doing more and more you learn more and more. Mix that with all the knowledge with the people on this site and read all the books you can get your hands on and we will be dangerious.
Just a thought