Something Strange Has Happened....

Comments(16)

• 
  arytkatz26th April, 2004

  James:
  Congrats on the deal (I'm a fellow $Cash sub2'er)!
  
  I was waiting for a post like this, because I thought of the same possibility.
  
  My opinion: depends on your investment strategy and your current financial situation. If you're looking to increase your working capital to do more sub2's with higher equity, you could take the $15K now, unless there's a tax reason you don't want that income this year.
  
  If you don't need it now and think there are CFD'ers out there, hang in there. If you think the market's softening and you may get stuck with it--let it go!
  
  So much for a definitive answer, huh?
  
  I think this is a really personal question with as many answers out there as there are investors with opinions.
  
  Will watch with anticipation...
  
  Andy

• 
  Birddog126th April, 2004

  I am kinda in the same situation. Folkes are moving to FL from Ma. Selling FSBO. Asking 330's for it. I want to try and do subject to, but I can't afford a mortgage of that much. Any ideas?
  [addsig]

• 
  results_one26th April, 2004

  James Street:
  Great question. I have always wanted to know if it made sense to take over a house subject to and just sell it for what's owed on the property. If you get in for 1,000 moving costs, then you could make a serious profit. I know it all depends, and most times people owe what the house is worth, but I am sure there are many cases like yours that are exceptions to the rule.
  John Locke: What are your thoughts?

• 
  JamesStreet26th April, 2004

  Thanks for the imput so far. This place is a great study because the carrying cost are low. Plus I got in very low part of a package deal. Just unsure. The town it is in must not be used to C/D. In the other town I do sub to in I get calls all the time. Oh well..... Any thoughts?

• 
  JohnLocke26th April, 2004

  results_one,
  
  You are correct you will run into houses where a profit can be made immediately selling conventionally meaning your buyer finances the property.
  
  I will never be accused of being a buy and hold person the majority of the time, so if I am in the deal for $1K and stand to make a quick $15K I will go for the immediate money and never look back, could have, would have, does not apply.
  
  The $15K today lets you grow your business faster for tomorrow.
  
  John $Cash$ Locke

• 
  JohnLocke26th April, 2004

  James,
  
  You are welcome and nice job, you do not have a problem you have an $opportunity$.
  
  John $Cash$ Locke

• 
  InActive_Account26th April, 2004

  John Locke,Good advice never walk away from cash. How much of your profit will it eat up if you wait 3 months for a CFD buyer. Take the money(cash) and run.

• 
  jpchapboy26th April, 2004

  Try signs/ads for Rent To Own. I think it would still be about the same situation for you as owner financing. You just structure a lease option and get cash up front and monthly cash flow. I get tons of calls on my rent to own signs.
  just a thought.
  Josh
  [addsig]

• 
  InActive_Account26th April, 2004

  Great post, thamks

• 
  JamesStreet27th April, 2004

  Thanks John and I think you are right take cash and build my business. Will let you know my decision.
  
  James

• 
  loon27th April, 2004

  Such an admirable "problem!" I agree that cash is king, but opportunity costs are what they are, so...
  
  Since you don't want to lose your 2nd year balloon 'bonus,' why not simply explain to cash buyers that the cash price is higher. Tell them you face substantially more expenses to sell that way as opposed to selling on terms; not much of a stretch when you consider the extra paperwork and closing expenses involved with Realtors (buyer's agents may be involved), lenders, etc. Tell them you prefer to pass those savings on to your buyers, which is why you can offer a lower price if they buy on terms.
  
  Maybe add an extra $5000 for cash buyers; if they have the bank $$ in place, that isn't unbearable. If you present it strategically and diplomatically, you might work this into an even more advantageous result than a plain old cash sale. Keep us posted.

• 
  JamesStreet27th April, 2004

  Here is an update:
  
  Just had a call. Lady has $5000 and will make extra payments on a note for another $5000. So down would be 10,000. Will have a payment with an extra $100 pad. Will refi in 2 years for 171,000. Man I love having choices. Any ideas?
  James

• 
  OnTheWater30th April, 2004

  Hello!
  
  IMHO, 15K in my hand is better than 26k in two years.
  
  Thanks :-D ,
  
  OTW

• 
  JamesStreet6th May, 2004

  Well here is the update I promised.
  
  Sold it on a contract. $10,000 down cash, 100+ pad on payment 2 year to refi will get a check at that close for $21,000.
  
  Let me tell you it pays to know the area. This was my first purchase in this area but will not be my last everyone wants to live in that area.
  
  Thank you for the input.......

• 
  jfmlv19506th May, 2004

  Great Job.
  
  Love those success stories
  
  John (LV)

• 
  jeremy10317th May, 2004

  James
  
  Great job I love to here these Stories of success.
  
  
  Happy Investing!