Thanks Everybody! First Deal Done!!! - Posted by Big Harold
Posted by Big Harold on December 02, 2000 at 17:55:03:
I just wanted to thank everybody here on this site for helping the newbie out - I just closed my first deal yesterday!! For all those naysayers that don’t believe, I’m proof - terrible credit, and no cash, I still was able to buy a rental property, and I’m closing on a house as my personal property in 2 weeks!!!
The house I closed on yesterday was a 5 bedroom, 1.5 bath row house in center city Harrisburg, PA. The selling price was $29,900. I put an ad online for this when I put the contract on it, and someone answered to lease/option it from me for $2000 down, $500 security deposit, and $650/mo rent, with $50/mo credit for a 1 year term, with a sale price of $50,000! Well, I showed the house to them and they gave me the $3150 cash, which I promptly used to close the deal! Since my credit is bad, I used a hard money lender, who loaned me most of the money and closing costs, since the house appraised for $52,000. I ended up closing the house for a total of $2100 out-of-pocket(the renters’ pockets!), and I literally went directly from the close to the house to give the renters the keys! Doesn’t get any better than that!
Once they buy it for the $50K, after all the hard-money fees and all, I should still net out another $8K to $10K, plus the $1K I made at the beginning, plus the positive cash flow each month for 12 months. This is awesome, and I couldn’t have done it without the great people who post on this site. I owe you all so much.
Sorry for the length, but I’m just so happy! My house is another miracle - the sellers are paying all our fees, like inspections and all, 6% of the sale price to cover closing, and they’re raising the price to allow it to net what I want, while refunding the difference! What’s more, I took a class in the summer to allow me a $3500 credit to apply to closing costs. All in all, we’ll be walking away with a great house at a great price, and $2500 to boot! Just awesome.
I know this is only the beginning. When I’m making as much here as I am from my full time computer analyst job(which won’t be long, believe me!) I’ll quit and my J.O.B.!!! I couldn’t imagine a better life. All you people waiting, just go for it! It really works!