Posted by John Smith, IV on September 17, 2003 at 12:12:35:
The back (late) payments disappeared when he bought the underlying mortgage and the property owner gave him the deed in lieu of forclosure.
Posted by John Smith, IV on September 17, 2003 at 12:12:35:
The back (late) payments disappeared when he bought the underlying mortgage and the property owner gave him the deed in lieu of forclosure.
help me understand this success story… - Posted by mikeW
Posted by mikeW on September 16, 2003 at 17:39:33:
Obligatory disclaimer: I am a newbie =]
So I read the ‘getting started’ guide in the Money Making section and the first thing it said to do was read the success stories. OK THEN.
http://www.creonline.com/success-stories/ss-245.html
This looks like a great story. Minimal effort on this guys part, he makes $18k and has a renter.
The part I dont understand is actually a fairly large part of the equation here. What has happened to all the money due from late payments? Also, he says he bought the note for $17.5k, and it is worth $23k. My math doesnt add up!
HELP
Re: help me understand this success story… - Posted by Jim FL
Posted by Jim FL on September 17, 2003 at 01:16:23:
Mike,
I think it breaks down like this.
Bought the house, and then refied it for:
$37.8K
So, $37.8 - $19.5k = $18,300
So, maybe he used the $300 to advertise, or some other cost, who knows.
or he just rounded to $18k.
Makes sense to me.
Sure, his “profit” is barrowed money, but really, he spent $19.5, and got back a little over $18k right away.
Not a bad way to buy a property, that cash flows some, and still has equity.
Plus he has the $18k on hand to use elsewhere and make more.
Make sense now?
Take care,
Jim FL