Thank You / Inspiration For Others
Reading books till I was blue in the face with probably just enough knowledge to make me dangerous: This was more luck than anything but as I've read; luck is nothing more than being fully prepared when opportunity knocks...
Started studying comps in the area for 3/2's 1200-1500sqft.
1. Took a HELOC on primary res. interest only. No fees what so ever.
2. Made good friends with realtor (lunch, b-day card, fixed her boat, etc)
3. Received word from same realtor a house came on MLS for 30k under FMV.
4. Looked at house same day (2 hours after being listed) House had no appliances what so ever, needed carpet , paint, nothing structural.
5. Made full price cash offer on spot, 5000 escrow (knew it wasn't going to last), offer accepted.
6. Waited my 30 days till closing , left closing office put sign in yard FSBO
7. Same day had full price offer; closing in another 30 
8. Closed on property to new buyer with same title co (saved a few hundred).
Costs:
90k of the banks money, which cost me $320 to borrow.
Net proceeds:
$ 26,000 and only entered the house once.
Realtor made money on the original sale and knows she has my future business. She calls me each and every day with new prospects. I guess she knows I'm not blowing smoke
I learned a ton from this site and was helped along the way by many of you. I wanted to thank you for your insight. Again THANK YOU !!
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Forgot to add:
I've taken the profit from that deal (paid back HELOC) and put it down on a single family home which I found FSBO 25k under FMV with renters in place and a year lease. Renters have been there for two years. Loan is interest only investor loan w/20% down. Positive cash flow should be $600 a month. I will sell the house after the renters vacate.
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AWESOME job captain!!!
Isn't this fun? Regarding your SF why not try selling it to the renters when their lease is up? Just a thought...
Q
Good Job captain....sounds like you are well on your way. I have yet to do my first deal, but I am very eager to get started. Like you, I read the forums, have read and studied my fair share of courses and books as well.
I do have to ask you about your buyer. Why would they purchase the home at fmv when you bought it at $30k below fmv? Did they not care about the repairs, was it an end user and not an investor you sold to, or did they just not do their homework?
Just curious.
Anyway, good luck to you and your endeavors
Quote:
On 2004-02-09 14:12, sharpREI_PA wrote:
Good Job captain....sounds like you are well on your way. I have yet to do my first deal, but I am very eager to get started. Like you, I read the forums, have read and studied my fair share of courses and books as well.
I do have to ask you about your buyer. Why would they purchase the home at fmv when you bought it at $30k below fmv? Did they not care about the repairs, was it an end user and not an investor you sold to, or did they just not do their homework?
Just curious.
Anyway, good luck to you and your endeavors <IMG SRC="images/forum/smilies/icon_smile.gif">
It was an end user. At the price I sold it to him, it was FMV. It was everything he was looking for; fenced yard, good neighborhood, easy access to major roads which is why I bought it. He even used FHA lender who tacked on his closing costs above and beyond the price I was asking. I'm still waiting for the lender to want their money back because I can't believe they never asked to see the chain of title !! As far someone not doing their homework it was the original listing realtor who did not represent their client very well and listing it so far under comps. I was just waiting in the wings, although I'd be lying if I said I wasn't scared to death to part with that money wondering if I had made the right decision.
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