A Pactrust ™ Deal Part (2 of 5)
I then have Mr. Brown sign a 15-Day Option to give me 15 days before I have to make my final commitment (I try for 30, but he’s afraid of having to make another payment…I know, bad logic…he was never going to make a payment anyway). Upon handing him the Option to sign (with a dollar bill stapled to the front), I also give him an unsigned copy of the Purchase Offer (Appendix #1 of the 10-Step Process of Documentation Manual), explaining that the dollar is just legal consideration (‘stops them from asking for an option fee).
March 16:
I beat it to the county court house and recorded the Memorandum of Option, then over to the newspaper office to run my ad:
NO BANK QUAL
NO DOWN
NO CRED. APP
3 Pmts and Clos Costs
Moves you in. Nice $165K 3+2
Home. Needs TLC. xxx xxx xxxx
March 18:
I have my friend “Bob” put a coat of gray paint on the front of the house and have him frame all the window and door openings with 1 X 6 boards. He then paints all the trim a nice bright white. We then take all the trash that is in the front yard…and throw it all in the back yard. Next, we Roto-Till the front yard and plant some flowering bushes along the front of the house and along the walk. After two or three hundred dollars at most, the house looks quite “cute and cozy (as they say)” FROM THE STREET (‘called “Curb Appeal”). The plan is to THEN (and only then) begin work on the rest of the house, in hopes that someone might just drop by and offer to do the rest of the work for a reduction in price, before I’ve had to spend much more money.
March 20:
Bob dismantles the “things” that will eventually have to be repaired (e.g., ‘pulls the tub away from the wall where the dry rot is, removes the window sills that don’t meet the wall, takes the doors off the kitchen cabinets that are to be resurfaced, etc. (no work, just partial dismantling…creating the illusion of “work in process,” so to speak). Note that even though I haven’t exercised the Option, I’ve spent about $400 at this point for everything.
Find out next week what I say to the seller.
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