Ron,
First deal was sooo smooth and I hope they all are like this one. As soon as I got through your system I called a realtor I have known for years and ask her if she had any deals she was struggling to get sold and she told me about this one.
It was listed but it was about to expire and she just wasn’t having any luck moving the house so I asked her about me stepping in and talking to the seller and she agreed.
The seller liked the idea since he had already moved and was paying 2 mortgages. I got it under contract with the seller for $169,000 (but actually balance of the mortgage at close not to exceed $169,000) and since it did not need any work I went right into marketing it. I found a Tenant/Buyer with $4,000 cash now for an option fee with more to come shortly. Here are details:
Under contract from Seller on December 15th $169,000
Monthly payments to seller to start March 1 $1,445
Under contract with Tenant Buyer on Jan. 19th for $199,900
Monthly payments to start Feb 1 $1,495
Not much monthly spread but nice equity!! And I get to keep the Feb payment!!
I signed up the seller right before Christmas so even with Holidays etc I still had it sold to tenant buyer in about a month! Got some more on the hook now and my VA is now calling FSBO’s everyday.
Thanks and I look forward to many more deals using this system.
Thanks again,
Ron Biggs
Great Job Ron. How long is the term? When will you get the difference between the balance owed and the $199,900?
Also, How did you pay the realtor? Did she wait for her money?
Good question Mark..
That’s what I would like to know as well, how was the realtor compensated? Please share
Now thats action Jackson!!Big Action “Biggs”..
Good questions and after I read this last week I noticed that the Realtor compensation wasn’t mentioned and should have been! I have done a few of these and when I do I always pay the Realtor a little when I get a tenant/buyer in the property ($500 to $1,000) and then pay them more when and if the tenant/buyer goes through with the purchasing of the home. On this one I paid my Realtor $500 when tenant/buyer paid me the option fee and will pay an additional $2,500 at closing. So instead of her losing a listing and getting nothing she will get up to $3,000 now thats a win win!
The term of this deal with the seller is up to 4 years. Since I do not have much monthly cash flow I will be assisting the tenant/buyer in getting a mortgage so i can get the big pay day. But not in a big hurry as the mortgage is being paid down every month so I am still earning close to $300 every month in pay down.
I gave the tenant/buyer 1 year with a right to renew for another year if all terms of agreement are adhered to.
Any other questions please let me know!
Awesome…thanks for sharing!
Hello Ron, thanks for the success story! It is very inspiring and well worth reading about. The $4,000 cash and the one $1,495 check is pretty good, and the deal works for you! Yeah! Your determination, focus and dedication is really something else! Keep up the good work.