Free Houses - Posted by ScottS
Posted by ScottS on June 11, 2000 at 22:04:08:
L/O’s and Subject to’s are pretty much my bread and butter deals. Since I started out having no money and living paycheck to paycheck on military pay I had to find ways to be able to buy real estate.
One day I met my good friend Joe Kaiser in person. At that time he had been working full time in REI for over 14 years. He told me the following words that to this day ring in my ears and I have seen him post to other “newbies” time and time again on his website.
“If I was to start all over again, and sometimes it might be fun, I would start by building a strong month to month cashflow with Lease Options. Lease Options are the ultimate investment for the beginner because they can be done with little or no money and very little risk.”
With Joe’s untireing help I was able to learn how to do Lease Options. It took me a while because I was not spending my time looking for sellers, I was looking for houses. I guess in a sense I still look for houses but I have found ways to find the motivated seller in the houses I feel comfortable dealing with.
My typical, if I dare use that word, seller is a homeowner who has owned their home less then 3 years and has little equity. Most of these homes are in average neighborhoods. Both the Lease Option and the Subject to work very well with low equity homes.
The home I just got for free is a $190K home where the seller has owned it for just over a year (13 months to be exact. They called me on a ad I run in the paper. This seller was born and raised in a small 300 person villiage in the interior of Alaska, and now works on the Northern Slope where he is on a schedule that requires him to be away for 4 weeks and back home for two. This schedule has worn on the family with the wife being stuck in the “big city” with no family around to keep her company during the husbands long stays away.
All they wanted was for someone to cover the payment on the home so they would not have to be landlords from far away while the wife moves back to the villiage and he continues his working up North.
We had them sign the deed to an entity we control. Just because that’s how we do business with properties that have no equity. We agreed to cash out at loan balance in 10 years if not before. Now I will turn around and sell the property on a long term contract.
Also the seller has agreed to wait until we find a buyer or until September for me to start making payments.
Another AWESOME article that Joe Kaiser recently posted was titled “Getting On The Same Page As The Seller”. In it he explains the importance of finding out what is the seller’s REAL motivation for wanting to sell and find a way to satisfy that motivation and still make money. I’ve found that by just getting on the same page you CAN and WILL make a lot of money.
I have also witten a couple success stories which JP has listed on the site in that section. If you want to see a couple more numbers stories go there and look for a couple one called “Perseverance Payoff $8,000” and another called “6 deals net $42K CASH in 58 days” those are both mine. All done with techniques I learned from getting my first deal done, spending some money on education, and then working hard to do deals.
I owe a LOT to my friend Joe who graciously helped me get started. Sometimes I wonder where I would be if it wasn’t for his help, but at the same time (without getting arrogant) I have to look in the mirror and say “Good job so far” realizing I have a LONGGGGGGGGG ways to go to get to the level of many of the people I have learned from.
Another thing Joe says that I like to reflect on a lot is “The journey is half the fun”. So don’t forget to take time to look back and reflect on the “journey”.
I hope this hasn’t rambled to far off course and I have given proper tribute to the one person who helped me get started.
In case you haven’t noticed…you can learn a lot just by watching Joe Kaiser. If you read this…Thanks Joe!