Huge profits on the wings of GEESE
If you have not heard Ron LeGrand’s presentation on “Let the Geese Live”, you are leaving huge sums of money on the table each time you do a deal. The point of the presentation is that by selling on terms, you get almost as much up front, payments over time and a back end profit. To make sure that you get the most out of these deals, it is recommended that you have a mentor to guide you thru the process. Our mentor kept us on track and made sure that we did not miss any of the fine points. When I do a deal now, I still can hear her voice in the back of my head.
This deal started in 2012, we purchased and rehabbed the 3 bedroom ranch for $33,574.42. It was a nice house in a solid blue collar neighborhood. Following my mentor’s instructions, we borrowed $40,000 from my long time dentist and friend. So we started with excess funding of $6,425.58. She told us that when we provided seller financing that the buyers would be focused on two things, the monthly payment and the down payment. We sold the house almost immediately and got $10,000 down and $750 a month (principal and interest only). So that brings our upfront cash received to $16,425.58. The sales price was $75,000 and we got 11% interest. Our monthly payments to our private lender (my dentist) were $530. We had an 8 year term on the private money and a 15 year term on the land contract with the buyer. So for 56 months, we made the $220 spread which amounted to $12,320. Now the buyer wants to refinance the land contract. We received a check for $35,406.94 at closing. So in summary the profit on this deal was:
|
Additional funding |
$ 6,425.58 $ 10,000.00 $ 12,320.00 $ 35,406.94 $ 64,152.52 |
So was this a once in a life time deal? Not really, under our mentor’s guidance and since being on our own, we have done 14 of these deals, 12 of which are still producing a positive monthly cash flow of over $4,500.
Deals of a time long ago? No, we did our most recent deal in December of 2015. Purchased for $50,000 cash, no rehab and sold it for $5,000 down, $1,000 a month and a total price of $99,900.
This is such an encouraging story. Thanks for sharing it! I especially appreciate how you show that these are not “once in a lifetime” deals!
Hello Duane & Ron, thanks for the informative success story and the posting. Good job on the deal you made, and the over $64,152 profit. Wow! Never give up and keep on investing, moving forward and make us all proud of you. Take care.