$137/ month or $1644/year - Posted by Dave Swett
Posted by Dave Swett on February 03, 2001 at 14:48:09:
This is one of the most exciting posts that I have seen for quite a while. You have a great deal in your hand. Only caveat is that you should have or need to tie up the deal with the seller ASAP. Get a sales agreement or option from that seller. I have had a buyer go around me (happened once, you learn quickly) after gaining the knowledge of the address and then sign up a deal directly with the seller. You don’t have any control (just a coffee shop story) until you get the written contract with the seller.
Your relative’s loan is easy. After you close the deal with the buyer, you will be poorer by $14,000, but richer by a $25,000 IOU or note. then you turn around to your relative and give him the note as collateral for the $14k loan. This transaction is called hypothecation and it is done all of the time. No big deal except it should be done right. Perhaps you should borrow $15k and hire an attorney to write up both the $25k sale note and the $14k hypothecation note. Give a grand to the attorney and you will get great legal protection for treating your relative right.
It’s all legal-eze boiler plate and you can use the forms over and over for future deals.
Quick, today, go sign up the deal and get ready to take home $1644 per year. On a monthly basis of $137 that will pay for half the cost of leasing a brand new car. I like that kind of logic. Pretty soon, you will be giving seminars on TV–how to get rich in real estate.