Hey, Jon and Steph!
We wanted to get you info on our latest deal and make sure we give credit where credit is due!
John was able to get an agreement on a nice little house in a suburb. He got it on a lease/option because the payment was so low… we were pretty sure we could get a spread, so we’re staying in the middle on this deal.
Our agreement to buy:
Lease/Option for 3 years, with 2 automatic extensions for 1 year each (giving us a total of 5 years if we decide to keep it that long). Current mortgage balance is roughly $120k, with PITI payment of $837. Value of the house is $130k or so. John negotiated the purchase price to be the mortgage balance at time of close, so we want to keep it for a while if we can. No cash due to the sellers, and it is current. We can probably even take the deed if we decide to later on (the owners retired and left in a motor home, so we doubt they’ll want it back).
Our agreement to sell:
We sold on a lease/option to a young couple for $7k down, $1100 a month, $144,900 option price. They weren’t able to put all the cash down up front, but we got $3k at close. The other $4k will be paid over the next 3 years (the term of their lease) at $125 a month.
Cash flow will be pretty nice. $388/month. If they stay for the full 3 year lease, we will have collected almost $17k. Not too bad for a property we got for free. We typically ACTS our deals, but the cash flow on this one was too good to pass up.
In an effort to automate our business as much as possible, we put in the agreement that they will deposit the rent at our bank, with deposit slips we gave them (rather than mailing checks and we have to deposit them). Not a huge deal, but this is just one less thing we have to deal with. Of course, they’re responsible for maintenance and repairs.
So, sincerely, THANK YOU for all your help learning this system. We owe you guys a TON, and really appreciate your help.
We still have 2 other properties we’re working on selling (one of them is a brand new, $435k spec home!) so hopefully we’ll have more to report shortly.
Thanks again! We love you guys and appreciate everything you’ve taught us…
Chris Laymon & John Berry
Green Country Home Buyers
Way to go!!
Not sure where Green Country is, but if you could send some of it to still white covered country Michigan, we’d appreciate it….the winter that never ends. Congratulations Chris and John!!
Hello Chris & John, thanks for the success story! It is very inspiring and well worth reading. $17,000 collected is a good start! Your determination, focus and dedication is really something else! Keep on trucking!