Just Got Paid.
Hello,
Just wanted to let you know that I just got a check for $17,600. I was expecting 20k, but I paid for a few of my buyer's costs.
Took the property Subject To. We had written out a contract on a moving box; then I walked out with the deed in hand!
No money. I mean not one cent in any way went to the seller. She was kind enough to take a promisary note with no percentage or monthly payment! The note was due on the sale of the home.
Thanks, John $Cash$ Locke! Were you here, I'd take you out for a day on the boat!
Does it work? Yes. Can YOU do it? Yes.
Thanks,
OnTheWater :-D
PS I currently have the flu, and it's horrible, but knowing that I just deposited that chunk of chain in the bank seems to make all the aches and pains trivial:-D
Mega CONGRATS!
PS - hope your flu flies away quickly
AWESOME DUDE! A moving box? That's hilarious. Kudos to myself, I just got a check for $45k yesterday! Keep up the good work and the stories.
Way to go.
Love those success stories and I know you'll have a lot of them.
John (LV)
May sound dumb...but how's you get a check at closing? Just interested to know how this deal went down? Oh yeah: Congrats and get well soon!!!
Hello,
How did I get a check at closing?
When the buyer purchased the home from me, the difference between what I owed and what I sold it for was what I got at closing.
Deal:
My seller held a note for the $ I owed them. The deed was put into my name. The buyer purchased the home from me. I also set the buyer up with my mortgage broker who got them the loan. At closing a check was sent to the person from which I bought the propety, and a check was cut to me. I got the check sent to me overnight, and I deposited it the next day.
Well, Wisconsin is playing Northwestern right now; being I'm from WI, I'm going to go watch the rest of the game.
After the game, I'm gonna get on the blower and call all the FSBOs that I had got from driving our neighborhood. If I gotta make 100 calls to earn 20k, so be it. "Gotta keep on keepin' on."
Thanks,
OTW :-D
Congrats gys that's awesome-
I am also interested in the mechanics of both deals, how it went down, etc...
Suntzu18
I got the 45k at closing as well, and I was the buyer! House was appraised at $250k, I already was approved for $245k. So I had the seller sign 2 contracts; One for $200k and one for $245(which I presented the latter to the bank). I then had them sign a $45k mortgage note to a friend of mine, hence at closing it was like paying off a 2nd mortgage so everyone got paid, and the sellers don't get taxed on it. It's a beautiful thing!
OKI don't fully understand. You borrowed 245k on a house that 200k was owed on. Now, you have to eventually pay back the extra 45k, so you actually didn't make it. If I am wrong here, please explain this to me.
I think DaShow was very creative there. but, yes, that money is still owed. I think we're dealing with two different stories here. If I'm understanding correctly, DaShow's deal is more of a NMD technique, though he actually got the cash for the 2nd and can use that for other purchases, so technically it's cash back (it's just "borrowed" cash back).
Yes, That is what I thought. Not trying to be negative, but if it isn't cash money that I never have to pay back, I don't want it. I understand the scenario of takinge heard that money to make more money, and paying that off, etc...- but if you have to keep borrrowing money to make money- it never ends. I have heard many people preach about doing this, but no matter what, it is still borrowed money.
OnTheWater,
Mucho Congrats!!!
Just wanted to clarify something: There would have been three checks, right? One to you, one to the seller for the note, and one to the underlying mortgagor, right?
JohnCl
Depends on the seller's base, marital status, and time in residence (2/5 rule) if they are going to pay taxes on it.
Also, the 45K second is going to be interesting to account for if the original 2nd note was created b/w the seller and your friend w/o any cash changing hands. You're friend will also have an interesting time accounting for the $45k income (payoff of the note from the new lender) when he has no base on it.
This is an easy way to trick a lender into financing more than the purchase price to get the money up front. The same thing can be accomplished by finding a lender that will finance based on appraisal value or finance 125% of purchase price (but you'll pay on the rate). If you don't need the money up front, you can always wait the 6-12 mos and pull a HELOC to get the equity out.
Creative accounting can get people in trouble as well!
# of checks?
Let's see.
Check one: from my buyer.
Check two: to my seller.
Check three: to me.
Thanks,
OTW :-D