Posted by phil fernandez on November 22, 1998 at 11:45:38:
I second that Jackie.
For any who doubt these methods work, Jim Mullins is a shining example that with knowledge and action anyone can do this.
Congrats again Jim.
Jim Mullins Deal - Posted by Jason
Posted by Jason on November 21, 1998 at 23:56:16:
I need to know a little more info on the L/O deal that Jim put together. I know of two homes that have been sitting for two years that are brand new. I would be very greatful if someone would be so kind to share some details. What did Jim do with the down payment money? Does any of the rents get credited towards the down payment of the house when the lease option is up? I do understand most all the info but I can not arrive at the profit that Jim mentioned. I would be most greatful for any help as I am just getting started. Thank you for this awesome tool!
I hope this helps Jason - Posted by Jim_NC
Posted by Jim_NC on November 22, 1998 at 09:40:18:
Jason,
Here are some answers to some of your questions…I hope.
1st. You asked…“What did I do with the down payment.” I’m not quite sure what you mean by this. I did not pay anything down on any of the homes. I have a lease with an option to purchase these houses. I did not have to give the builder any option money or rent up front.
2nd. No…none of the rent gets credited towards the purchase.
3rd. The profits I estimated are just that…estimates. At the time I posted the article I had not rented any of the homes. The profits I used were based on what I have the homes optioned for v. what I will sell them to my T/B’s. There is over $100,000 total spread.For example…If I have a home optioned for $100,000 and its worth $125,000 I am figuring a $25,000 profit. Understand? I have all these optioned behind the appraised value. Also, I am taking into account what my monthly spread is going to be on the rent. I am figuring around $200-$400 per house/per month. And the last thing I figured in was what I hope to get in non-refundable option money which will be $3000-$5000 per house.
By the way…I rented three of the homes yesterday. Here are the details.
my option sold for option money my rent rented
$116,000 $129,900 $2500 $750 $950
$132,000 $149,900 $4000 $800 $1250
$132,000 $149,000 $3000 $800 $1250
$380,000 $429,700 $9500 $2350 $3450
Total $49700 profit on spread with $9500 option money and $1100 per month positive cash flow.
Re:Jim one more question - Jason - Posted by Jason
Posted by Jason on November 22, 1998 at 15:30:02:
Thank you very much for your help Jim. Your message answered all of my questions, I was callind down payment money what you were calling option money. I am thinking that theese monies just give them the option to purchase and that is all. Would I be correct in saying that there is nothing worded deposit in the contract? Great job I will be calling the developer on Monday to try and set up a deal. Thanks a million I will keep you in formed.
OK OK - Posted by Sandy FL
Posted by Sandy FL on November 22, 1998 at 13:40:34:
I am convinced! About 5 weeks ago, Jim and some others
(myself included) made a friendly wager in the chat room. Jim was a self-described newbie (THEN). We all put our virtual $5 in the virtual kitty, and whoever got a deal under contract first would get the kitty. Well, I was offerring on some REO’s at the time and figured I had a good chanceto win the bet. So I went in on the bet.
Well, Jim waltzes into the chat room about 48 hours later with his first deal (EVER). He won the bet (and has yet to collect). Then, being still confident, I doubled the bet with Jim. Only instead of $10 or nothing, we made it a lobster dinner.
Jeez. Why didn’t anyone warn me?? He not only went out and got another deal, he’s gotten 16 all told ! I am glad I didn’t keep doubling it …
Anyway, I am gonna buy Jim that lobster dinner in Dallas, but more importantly, he’s made me take another look at the idea of LO’s. And today, I went to listen to Ron LeGrand’s presentation in Boca Raton, and he also is talking about LO’s. He had some very compelling examples, and these deals the people are making just as much as a good rehab deal, with far less headache and risk.
I am gonna get busy… I will need the money…I hear Jim likes BIG lobsters !
Sandy FL
Re: I hope this helps Jason - Posted by Redline
Posted by Redline on November 22, 1998 at 13:07:54:
Very Sweet. That’s all I can say.
Perhaps I will look into one of those L/O courses now!
Congrats,
RL
Re: FANTASTIC DEAL! - Posted by Jackie in Dallas
Posted by Jackie in Dallas on November 22, 1998 at 11:38:52:
Congratulations on a great deal Jim - it’s nice to see someone that reads about this real estate stuff on Creative Real Estate then goes out and does something with it!
All things are possible if you just decide to go for it!
Jason . . . you need more answers first - Posted by Joe Kaiser
Posted by Joe Kaiser on November 23, 1998 at 21:21:00:
It’s chess, not checkers.
You can’t go around making offers unless you’ve completely got things figured out. When you indicate you’re not clear about “deposits,” it shows you’ve got a long way yet to go before you jump in.
Slow down!
Joe
Re: OK OK - Posted by Jackie in Dallas
Posted by Jackie in Dallas on November 22, 1998 at 23:24:43:
Sandy
There’s just the place for that lobster dinner right by the hotel where the convention will be held – Landry’s Seafood - YUMMEEE
BIIIIIIIG LOBSTERS!!! - Posted by Jim_NC
Posted by Jim_NC on November 22, 1998 at 16:14:33:
That’s right Sandy! I am going to sign up on one of those $150 per plate lobster dinners! lol
See ya tonight in the chat room.