Thanks Everybody! First Deal Done!!! - Posted by Big Harold

Real Estate Investing
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Posted by Big Harold on December 04, 2000 at 06:05:46:

Stew,
What I meant by that was that Dauphin County, where the house is located, has a seminar it hosts to educate first time home buyers in the buying process, and has income requirements for the program. You have to sit through 2 nights of classes, but at the end they give you contacts to a lot of people you need to know in the home buying process, and a $3500 credit to apply to your closing costs. The credit comes from the county, and is actually a second mortgage on the house, which just sits with no interest and no payments due, and is not due until the sale of the house, so if you keep the house, you never have to pay it back. This is a great program. If you live or are going to buy a house in Dauphin County here in Central Pennsylvania, I’ll get you through to them. Thanks.

Harold Wilson
Real Estate Investor

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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!

Harold Wilson

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Re: Thanks Everybody! First Deal Done!!! - Posted by Stew(NE)

Posted by Stew(NE) on December 02, 2000 at 19:13:24:

Great Job!!! And many more to come. I do have a question. What do you mean by “What’s more, I took a class in the summer to allow me a $3500 credit to apply to closing costs”???

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Congrats Harold!!! - Posted by IB (NJ)

Posted by IB (NJ) on December 02, 2000 at 18:23:13:

You’re on your way man. The best way to prove naysayers wrong is through action!