OfflineThere’s a guy (let’s call him Steve) who found a house for sale by owner that seemed like a good deal. The owner (let’s call him Rick) was selling his house for $80,000. Steve felt like the house was worth considerably more; however, he did not want to tie up all of his funds with this one deal--so he executed a lease option with Rick. The basics of the deal were as follows:
• Steve’s IRA gave Rick $10 for the option to buy Rick’s house for $80,000, full price, if he would lease it to Steve’s IRA for a year at $700 a month, about the actual rent value.
• Steve’s IRA decided he would put a tenant buyer in there to rent the place out for $700 a month.
• The buyer wanted to be a homeowner but he had some recent dings on his credit and he needed time to get those repaired.
• After a year passed, Steve’s IRA exercised his option from Rick, the homeowner, to purchase the house for $80,000 and immediately sold it to his tenant buyer for $100,000.
It was a win-win-win. Rick got rid of a house that he no longer wanted, Steve’s IRA made a $19,990 return (199,900 %!) on his $10 (all TAX FREE because it was a Roth IRA), and the tenant got his dream house because he had found someone to work with his situation.
Steve is currently searching for his next $10 house to buy with his IRA.
-- TIME IS A TERRIBLE THING TO WASTE, SO STOP WASTING IT --
Is this your recent deal you're referring to?
"I will NOT BE BROKE! ANYMORE!"
In the name of Allah, the Beneficent,
the Merciful.
22.He is Allah besides Whom there is no God: The Knower of the unseen and the seen; He is the Beneficent, the Merciful.
23. He is Allah besides Whom there is no God: the King, the Holy, the Author of Peace,the Granter of Security, Guardian over all, the Mighty, the Supreme, the Possessor of greatness. Glory be to Allah from that which they set up (with Him)!
24. He is Allah: the Creator, the Maker, the Fashioner: His are the most beautiful names. Whatever is in the heavens and the earth declares His glory: and He is the Mighty, the Wise.
Now that is awesome turning $10 into 20k. And is this your deal, your partners? Details????
Jeremy
This train, Dreams will not be thwarted
This train, Faith will be rewarded
Big wheel roll through fields where sunlight streams
Meet me in the Land Of Hope And Dreams
Bruce Springsteen
I'm not fully sure I understand how this works but you can bet I'm going to do my reading and research to KNOW how it works! Thank you for sharing!
Nancy D.
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This is true for RE..."The best way to learn this business is to do this business." - John Addision, co-chief executive officer, Primerica
Aerialist's Journal - Because Life Is a Circus
http://www.deangraziosi.com/real-estate-forums/investing-journals/18857/...
Where can I find info on this subject. (Dean's Academy)
"Understand the Plan, Understand the Power, and Understand the Prize" (Pastor J. Grice)
“Formal education will make you a living; self-education will make you a fortune.” – Jim Rohn
Matthew 5:16
16 In the same way, let your light shine before others, that they may see your good deeds and glorify your Father in heaven.
Make it Happen!
What is IRA? The retirement account?
Thanks,
hillvalley
An IRA is an Individual Retirement Account.
Yuri...that's an amazing story.
"The entrepreneur always searches for change, responds to it, and exploits it as an opportunity." — Peter F. Drucker
This is amazing Yuri. Congrats to all concerned in the contract negotiations.
Sandra
"You can never get to the top, if you are not willing to climb. Do not look at the difficulty of the climb, only anticipate the view from the top."
"Can't even walk without you holding my hand." (Song)
"Is anything too hard for the Lord ..." Genesis 19:14
"In all things, wait on the Lord."
"Think not of your own deliverance, but trust in God who will give in abundance."
"When you are down to nothing, God is up to something." Unknown
"Our lives begin to end, the day we become silent about those things that really matters." Dr. Martin Luther King Jr.
That's great you have an IRA. (No retirement fund, yet.) Great $$ Work, Yuri.
(I'm on my way out of being in a small 2Br for 10yrs @ $1,000 a month.)
Contact info: juicyg52@**** for comments, questions, and details of joint venture using my TWO NEVER used veterans GI Home Guarantee Bills (94% of properties require no money down) Serious inquiries, good fico score helps with some verified income!
That's great you have an IRA. (No retirement fund, yet.) Great $$ Work, Yuri.
(I'm on my way out of being in a small 2Br for 10yrs @ $1,000 a month.)
Contact info: juicyg52@**** for comments, questions, and details of joint venture using my TWO NEVER used veterans GI Home Guarantee Bills (94% of properties require no money down) Serious inquiries, good fico score helps with some verified income!
Hello,
Yuri great example of,A DEAL, And the ways (loop holes)to make our actions...Count!
If i am wrong about looping,Please share./Loop hole-My meaning:What you can think of...They forgot to mention!
Invest in yourself!
Thanks for sharing this example. It is a great example of a creative deal and a great way to think outside the box. Good luck on all your deals. Believe and Achieve!
- Joe
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Could you explain this a little bit more. I am confused.
Thanks for sharing on this creative deal with only using $10 from an IRA....
fantastic!
Thanks,
Jim
BELIEVE IN YOURSELF!
I wish. It is something I read that was posted on one of the real estate forums. I contacted the person who wrote it and getting all the details on how it works.
Yuri
-- TIME IS A TERRIBLE THING TO WASTE, SO STOP WASTING IT --
Not my deal. I have heard on many occasions that you can use your IRA to buy a house. However, from what I know, the profit goes right back into your IRA (which I don't mind, as long as I can go back and use it again and again)
Yuri
-- TIME IS A TERRIBLE THING TO WASTE, SO STOP WASTING IT --
What would you like to know about the academy? I am a student. Ask and I will answer.
Yuri
-- TIME IS A TERRIBLE THING TO WASTE, SO STOP WASTING IT --
Do let me know what you find out about that, ok
Yuri
"I will NOT BE BROKE! ANYMORE!"
In the name of Allah, the Beneficent,
the Merciful.
22.He is Allah besides Whom there is no God: The Knower of the unseen and the seen; He is the Beneficent, the Merciful.
23. He is Allah besides Whom there is no God: the King, the Holy, the Author of Peace,the Granter of Security, Guardian over all, the Mighty, the Supreme, the Possessor of greatness. Glory be to Allah from that which they set up (with Him)!
24. He is Allah: the Creator, the Maker, the Fashioner: His are the most beautiful names. Whatever is in the heavens and the earth declares His glory: and He is the Mighty, the Wise.
Of course. As soon as I find out the details, I will post them here.
-- TIME IS A TERRIBLE THING TO WASTE, SO STOP WASTING IT --
Yuri how is the academy? Do you find it to be helpful to you or not worth it? I hope it is serving you well though.
I got my mind made up.....
www.Kingjussinvestors.com
www.jussinvestors.com (buyers site)
Great example of what some cleaver thinking and a good attitude can do. Cant beat a return on that investment with the Roth IRA and rent covered at the 700/month.
John 14:6