Help on 1st deal! - Posted by Paul Maynard
Posted by Paul Maynard on September 04, 2003 at 15:46:09:
I had a very interesting first meeting with a potential client. So, I’m emailing everyone I know who can possibly help me put this deal together.
Looking for help on my first deal. Last week I started using the email marketing campaign, and I have found someone who seems pretty motivated.
Just to let you know my only experience, besides being a Broker, has been reading a couple of REI books.
I went over to this persons house with one intention, and that was to just get in front of someone. We’ll here’s where I’m at;
He has to get out of this because his company is moving him back east in May (that’s when his kids finish school.) He just wants to get out of his mortgage, and have a place to live until May.
He has a totally remodeled 4 bedroom, 3 bathroom house in a nice place in Denver. He had the house appraised in February 2003 at $460K.
His mortgage payment is $2,700 a month, and Insurance & Taxes are paid up through next year. He also has a balance of $409K.
I first approached him with a L/O, but that’s not going to solve his problem. So, here’s what he wants.
He would like to get his mortgage cashed out of $409K, and live in the house until May paying rent of $2,100K. He started at $1,700, but I talked him up to $2,100 (that’s as high as he would go.) He said that since he would be giving up any possible equity that he would like to pay a little less a month than what he is currently paying.
He doesn’t have the time or wants to put the effort into trying to L/O him self. I asked why doesn’t he just sell it through a Realtor (which I am), and he doesn’t want to pay any commissions and just wants to get out as fast as possible.
The rents in the area run from $2,000-$2,500. I believe we could possibly get around $2,500-$2,700 for a L/O.
Now here is the most amazing part (at least to me for my very first face to face.) He told me that if I could help him cash out, and rent back from me for $2,100 a month he would be utterly grateful. Then he got on his hands & knees and started bowing down to me, got up and gave me a big huge, and shook my hand in the most friendly way. I just met this stranger 45 minutes prior. I told him that I wasn’t sure that I could do this at all, but I would look into it. That was it, so if this is a indication of what this business is going to be like…I’M IN!!!
Now, down to business. CAN ANYONE HELP ME HELP HIM? Advice, Partner…whatever. He will sign a contract as soon as I bring one to him. I’m not completely sure how to fill out the contracts on a deal like this but I can probably figure it out with someone’s help. I don’t have the good credit to get a loan, but willing to do all of the paper work going, and if L/O was the option then I would do all the work to put that in place. Just let me know how anyone can help.
So, someone please contact me ASAP. I didn’t get anything in writing, but he shook my hand and promised he wouldn’t talk to anyone for about 5 days. I believe him. I know I’m new at this but I can read people very well. Anyway, I promised him I would contact everyone I knew through this group and see if I could put a partner together to help him. So, here I am. Someone please help me put together my first deal with me, and let’s help someone…and make some money.
P.S. I work a night job starting at 5 p.m. MST so either contact me before that or in the morning.