Millionaire in the Making – Cindy & Phil Salazar – #2

In August we sent you the testimonial about how we sold our own home on a lease/option with Ron LeGrand’s techniques, even though it’s approximately $60,000 upside down.

At that time we got a $6,000 non-refundable deposit from the buyers and are presently cash flowing $288 a month.  The buyers notified us a few days ago that because of a family crisis they will need to move out after Thanksgiving and will be unable to buy our house, thus losing the $6,000 non-refundable deposit they put down in September.

Because we used the correct paperwork stating the deposit was non-refundable in the event the buyer didn’t buy the house, we were able to keep that $6,000 and we are now able to sell house again and collect another non-refundable deposit from a buyer!

When we marketed to sell our house the first time in August, we had a huge buyers list who wanted a home like ours.  In the last few days, we re-contacted all the buyers who had been disappointed when we sold our house, and we have several that want it!  One of the buyers called us yesterday, and has offered to put a $20,000 non-refundable deposit down because they want to ensure that we sell it only to them – they want it because they need to keep their teenagers in the same high school.   They will also pay $200 a month more in rent than the current buyers are paying.

This deal looks like this:
Profit the first time we sold it:

September – November – 3 months cash flow:      $864.00
Non-refundable deposit:                                         $6,000.00
Total:                                                                            $6,864.00

Projected profit the second time we sell it:
December 1 Cash flow:                                                $488.00
Non-refundable deposit:                                      $20,000.00
Cash flow per year:                                                  $5,820.00
If it goes for the full ten year term: Total:         $78,100.00

Grand Total: $84,964 on a beautiful house that’s over-leveraged $60,000!

Thank you to our mentors and the excellent contracts and paperwork that Ron LeGrand has designed to protect our interests.  We wanted to point out that on our mentorship calls, they emphasized to us the importance of staying in contact with and following up on motivated buyers and sellers.  They shared their own experiences that took sometimes up to a year or more to do a deal.

The new buyers of our home are people that we have been in contact with for months, since last Spring.  They originally called us because they found out that the owner of the beautiful home they are renting has not paid the mortgage payments and it will be sold on a short sale.  They have very good income and excellent jobs, but since they do not have good credit, they could not buy it even though they wanted to.  We promised we would find them a beautiful home but their parameters were very narrow because of the school district.

When our home became available again, they drove by it and jumped at the opportunity to buy it!    Oh and I forgot to tell you, we are also helping our tenants who are moving out to find a place to buy on a lease/option because their credit is bad also, but they have great income!  It’s a win… win… win… win deal! We are Transaction Engineers!