Jeanne and Michele,
With your mentoring help and Ron’s system, we will be completing our first “full circle” Work For Equity deal this week. We’ve already received the down payment check of $500 and will be receiving the remaining $4,500 at closing. In total, we will receive $3,500 ($5,000 buyer’s down payment minus $1,500 for seller’s down payment). That’s $3,500 in shut-up checks.
Here’s the deal in summary:
We owner financed the property for $90,000 for 36 months with a $1,500 down payment. The owner originally wanted $2,500. Monthly payments are $425 with $400 going toward principle each month, and the owner originally wanted $525. We then sold the property for $110,000 on a 36 months lease-option with a $5,000 down payment. The buyer’s monthly payment is $1,000 ($800 rent + $200 down payment assistant program). Our monthly cash flow is $382 ($1000 minus $618 PITI). Buyer will make all repairs that will total around $15,000. ARV is $140-$150K. Our total profit received in this deal will be $24,679.
Detail numbers are:
| Our Purchase Price | $90,000.00 |
| Down Payment to Seller | $1,500.00 |
| Mortgage Balance | $88,500.00 |
| Buyer Purchase Price | $110,000.00 |
| Buyer Down Payment | $5,000.00 |
| Lease Purchase Price Balance | $105,000.00 |
| Buyer Down Payment | $5,000.00 |
| Seller Down Payment | $1,500.00 |
| Upfront Cash Received | $3,500.00 |
| Mortgage Payment | $425.00 |
| County Taxes | $87.75 |
| City Taxes | $40.25 |
| Insurance | $65.42 |
| Monthly Outlay | $618.42 |
| Buyer Lease Payment | $800.00 |
| Buyers Down Payment Program | $200.00 |
| Total Monthly Income | $1,000.00 |
| Monthly Outlay | $618.42 |
| Monthly Cash Flow | $381.58 |
| Yearly Cash Flow | $4,579.00 |
| Cash Received at Closing in 36 months | $20,100.00 |
| Total Cash Received in the Deal | $24,679.00 |
We could not have completed this deal without your knowledge and coaching abilities and Ron’s real estate investing system. You were always there when I needed your assistance, whether by phone, text or email. Even with all the mistakes I made, you were always understanding, positive and ready to help me. You always have encouraging words. Thanks so much for being such great mentors.
Attached is a copy of the down payment check. Once we close, I will send you the other check and the documentation associated with the deal.
My buyers are so happy! Every time I see them, they thank me for helping them. This makes it all worthwhile.
Sincerely,
Benjamin Mayo
BMNC Home Buyers, LLC
INSPIRING! Congrats!
How long did it take you to sell? How did you find your buyer?
It took me about 80 days to find the buyer and close. The buyer saw the “Handyman Special” sign in front of the house.
Excellent story…Thanks Benjamin
Hi Benjamin, I myself being from Tarboro was wondering if you were still doing deals?
Hello Terry, thanks for the great success story! It is very inspiring and well worth reading. Your $3,500 shut up checks and other profits is great and the dedication you have is amazing! Keep on investing, moving forward and make us all proud of you and your investing experiences. Take care.