OfflineI have had the opportunity to buy many houses and multi unit buildings through the years. One of my favorite deals involved a duplex in Provo, Utah. The owner was an officer in the Navy. He was being sent overseas for five years and did not want to own long distance.
His asking proce was $55,000. It had a VA assumable for $53,000. The $2000 difference I paid for with a $2000 cash advance on my credit card.
The payment on the mortgage was $518 per month. The rents totaled $1100. I paid off the credit card in four months.
A little creative financing goes a long way.
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Roy Voeks
Official RE Coach
The 1st was a 3/1.5/carport; the seller wanted 70K; we were building a 250K spec house at the time & didn't have the cash, so I wrote 3 credit card checks(from 3 different accounts) totaling 80K. They 0% interest for 1 year.
Bought the house, did the rehab which was about 10K, so had no money out of pocket...sold the house for 135K!!
We have 2 houses that we are in the process of selling, 1 rehabbed & 1 was a free & clear property that a tenant is buying. Two great deals came up, one was an auction, the other a private sale thru a realtor.
Did the same thing, wrote out the credit card checks, 0% interest for 1 year. Purchased the first at 34,800(including buyer's premium), did the rehab
costing about 10K; selling it for 60K, had to do a lease option to the buyer for 3 months because it was a Fannie Mae. BTW, the buyer paid for the house in full with the 1st months rent!!! The 2nd house paid 35K, put in about 9K in rehab & just signed a contract for 59,900; will close in about 45 days!.
Thanks for sharing these stories. I used to think of doing this, but kind of gave up on the idea. I guess it can be done!
Roy, I don't quite understand your deal though, can you it explain it a little more about the assumable portion. Thanks.
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This particular loan was a VA simple assumption. I could simply take over payments by signing my name. No credit check. No employment verification. No income requirements. Assumables have become rare, but at one time they were all over the market.
Roy Voeks
Official RE Coach