Thanks to all who have contributed positive and thought-provoking information to this site. I did a deal about two months ago (and was content), but my continued visits to CRE Online pretty much forced me to go beyond my comfort zone and scrounge around for another deal!
About 10 days ago, a Realtor called me with a listing she had gotten that day. I did a drive by and then met with her to go inside. I put in an offer at 8:00 p.m. that day. It was accepted the next day! I know some of you don’t care about the details of someone else’s deals, but maybe if I share them it will motivate someone else to go do it!
My valuation of property: $42K – 50K
Asking price: $32K
Repairs: $3K (plus my labor)
My original offer was for $20K. We did some verbal counters over the phone and agreed on $24K, all cash, to close the 29th. It is my intention to flip this house. Not a great money-maker after taxes, but good enough!
Had a “Drive by Appraisal” done: $45K Market Value. Had a potential listing agent go through and suggest a fairly quick sale at $47K – $49K. Started looking for a hard money lender this past Tuesday. (I can’t afford to pay 24K cash.)
Thanks to this wonderful computer, I found a few note buyers and lenders on the net. Note buyers all wanted about a $3K discount to do a simultaneous close, plus a down payment, about $3K down and write a $24K note, but only fund $21K.
One note buyer offered to do a first mortgage with $3K down, $2K fee, 13% interest only, amortized over 30 years, with a balloon for the balance due in 2 years. Found a local real estate agent with contacts to private money who feels he can fund the entire $24K plus his fee ($1,500 – $2,000) at 15 – 18%, NO MONEY DOWN! I’ll have an answer from him Monday or Tuesday.
Per the standard real estate purchase contract used here, I have until next Friday to find something wrong with the house I don’t like and back out of the deal. Until then there is nothing to lose but time.
The point to all this is it can be done. If you don’t have the money, find a good deal and start asking for the money! Ask everyone, mortgage brokers, real estate agents, friends, etc.
On this deal, the owner was willing to carry with about 25% down, but then I would have had to pay a lot more. I try to BUY my profit, which means all cash offers.This may not be the BEST deal, but at least it’s the NEXT deal!
This site is an inspiration! Thanks!