Seminar Waiting to be Taken - Posted by Rick W.
Posted by Rick W. on February 24, 2000 at 04:47:04:
Trust us on this one. Paying all cash for a deal that exceeds the maximum offer is just a disaster waiting to happen. In fact, your $47k offer is $5,000 more than I would offer if I was planning to Retail the house, $10,000 more if I was planning to Wholesale it.
Murphy DOES live where you are, and the Rehab environment is one of his favorite places to hang out.
Try another strategy: Buy the property “SUBJECT TO THE EXISTING MORTGAGE”. You then only have to come up with Closing Costs & Commissions, can save your capital for the repairs, and can offer the property to a potential Buyer with “NO QUALIFYING FINANCING”.
I have done nearly forty of these in the last two years (most recent one last Friday). It works GREAT!!! I am hoping to get a contract today from a Buyer offering me $92,000 on a house I bought two weeks ago for $77,000, and have a total of $3,000 in repairs. I should net $10,000 after Closing Costs, and will have had the property for less than a month.
Let’s see - $10,000 return on $3,000 invested in less than a month, that’s a 333% return on my money isn’t it? (Actually, it’s nearly 4000% annualized, or "GOOD ENOUGH!!!)
Try Owner Financing, you’ll love it!.