OfflineThis is my first deal and how it all happened.
After learning about this great opportunity from Deans books, some of his training material, and a wealth of information from this site I took action on just what I learned and here is what happened.
I was driving around in this neighborhood close to where we live going to look at a fixer house REO and just happened to notice a big blue tarp sign on the side of this duplex in white tape it said fore sale and gave the phone number. So just following the example we were given at the Insiders Edge conference I called the number and talked to the owner. He was asking $235,000 for this duplex it is a 3bed 1.5 bath pr side in great neighborhood. I asked him on the phone if he would take $175,000 he told me no so I asked him what the absolute least he could take for it was and he said $210,000 I asked him if he had a high mortgage on it like the rest of us and he said no he only owed $115,000. I then asked him if he would consider carrying a contract on the balance and he said yes. I then set up a time to go look at it with him and found out he lived in Boise Idaho, this house is in Springfield Or. After looking at it with him and finding out how nice it was inside and that it had long term tenants in it at $800 pr month per side I was very interested. I knew I could not wholesale it or get financed on it because of my poor credit, so I asked him to consider the idea of doing a lease option on it. To my surprise he agreed and here are the details of our deal.
3year L/O sale price of $214,000 leased at $1400 pr month $2,100 down credited towards purchase with $250 pr month credited towards purchase, owner carry $99,000 @%6.5 simple interest over 15 years. Monthly cash flowing $1,600 pr month with a total profit of $200 pr month.
All of this was done with no credit checks. This is my first deal and we did this deal thirty days after getting the information from Dean. Thank you for all of this Dean Graziosi it is all due to your dedication to giving your time, efforts, knowledge, and positive encouragement to make it happen.
For more info on this deal and my journey in REI check out my journal here called Jim,s REI Journey
CHP Investments Inc.
Power Packed Investments
James Cook & Tawnya Pete We are creating a future one deal at a time in the footprint of those who have gone before us by learning daily and taking bold action on what we know works by there example and success.
[favorite quote] The execution of an idea is always more important than the brilliance of a thought; transforming learning into behavior. author unknown.
This is excellent work. You mentioned on your other thread that there seemed to be a problem with both tenants, who were moving out thinking their last payment was already covered. How did that go? Also, on the $2100 down, did you pay cash or did you work it into the deal over the three years?
Your journal is very informative and depicts how deals are supposed to be done.
Congrats on your first deal of many.
Steve
We seldom get what we want, but we will always get what we expect.
The owner is working on getting his documentation for those issues and also i asked the tenants to get all of there docs in order so they can work this out with him.
The $2,100 is a strange part when listening to tho owners needs he needed $500 for the deductible on an insurance claim for damage that had just happened to the fence I agreed to give him this as a deposit towards the purchase price. Also one of the tenants was behind on her rent with a balance of $1,600 which he needed to pay his mortgage I agreed to pay that with the agreement that I will try to collect it from her. If I am unable to for any reason he will pursue the collection at his expense and credit the $1,600 to the purchase price. When I talked to the tenant about this she agreed that she owed this and she will sign a note for that amount. She has a great job as a nurse at a hospital here and she is being garnished for a debt from an Ex husband and she will pay the full amount owed in our agreement. We will work with her on the payment within her ability now and as that changes.
Yes we did pay that amount in cash upfront.
CHP Investments Inc.
Power Packed Investments
James Cook & Tawnya Pete We are creating a future one deal at a time in the footprint of those who have gone before us by learning daily and taking bold action on what we know works by there example and success.
[favorite quote] The execution of an idea is always more important than the brilliance of a thought; transforming learning into behavior. author unknown.
That is GREAT! I am so happy you got your first deal under your belt. WONDERFUL! Congrats!
Thanks I appreciate that. It has been a real learning eyeopener. I love the challenge of it all.
CHP Investments Inc.
Power Packed Investments
James Cook & Tawnya Pete We are creating a future one deal at a time in the footprint of those who have gone before us by learning daily and taking bold action on what we know works by there example and success.
[favorite quote] The execution of an idea is always more important than the brilliance of a thought; transforming learning into behavior. author unknown.
Good job on this deal. It sounds like there are a few bumps in the road but keep going foreward. We are happy for you.
Steve.
Steve and Veronica
Steve and Veronica's Journal.
http://www.deangraziosi.com/real-estate-forums/investing-journals/58073/...
http://www.deangraziosi.com/real-estate-forums/totally-fulfilled/72344/d...
Just wanted to stop by and say Welcome To The Trenches of real estate investing. Looks like from your posts you have had a couple of bumps in the road but weathered them just fine. Much continued success to you and your new life...Jan
I appreciate the vote of confidence and support. I will Keep at this with an aggressive approach and see where it will take me. I already love the ride.
CHP Investments Inc.
Power Packed Investments
James Cook & Tawnya Pete We are creating a future one deal at a time in the footprint of those who have gone before us by learning daily and taking bold action on what we know works by there example and success.
[favorite quote] The execution of an idea is always more important than the brilliance of a thought; transforming learning into behavior. author unknown.
This is terrific! Congratulations to your success on your first deal!
Thank-you for sharing your deal with us.
On to your next one!
To your success!
Laura Bullock
BMW Investment Properties LLC
Laura your welcome. Thanks for checking out my deal. I hope to list many more here. I will only list here deals that are done. I hope this will show someone a way to do a deal for themselves out of one that would not work with another strategy.
CHP Investments Inc.
Power Packed Investments
James Cook & Tawnya Pete We are creating a future one deal at a time in the footprint of those who have gone before us by learning daily and taking bold action on what we know works by there example and success.
[favorite quote] The execution of an idea is always more important than the brilliance of a thought; transforming learning into behavior. author unknown.
One tenant is out now and the other is leaving on the 16th. We have tenants in place to go into both units before the first of next month. We raised the rents to $875.00 raising our profit to $350.00 pr month. The tenant that owed the 1600 has paid down to 750 now and we have a short term note with her for that amount. We feel confident she will have no issues paying that off.
Just put in a cash offer on a REO cant wait to see what that will bring.
CHP Investments Inc.
Power Packed Investments
James Cook & Tawnya Pete We are creating a future one deal at a time in the footprint of those who have gone before us by learning daily and taking bold action on what we know works by there example and success.
[favorite quote] The execution of an idea is always more important than the brilliance of a thought; transforming learning into behavior. author unknown.
That is wonderful! Glad it is all working out for you.
Here is the smoking deal that we just did. Using an online auction I found a 3 bed 1 bath with carport. I got the wining bid for $1,900. Total cost with auction fee and filing fees for the deed was $2,533. The great part of this was that we were able to use the money from our self directed IRA's to purchase this deal.
The ARV is $50,500
I will post more of the details on this deal here as I get the rest of the numbers together.
CHP Investments Inc.
Power Packed Investments
James Cook & Tawnya Pete We are creating a future one deal at a time in the footprint of those who have gone before us by learning daily and taking bold action on what we know works by there example and success.
[favorite quote] The execution of an idea is always more important than the brilliance of a thought; transforming learning into behavior. author unknown.
That is a good deal.
Steve
Steve and Veronica
Steve and Veronica's Journal.
http://www.deangraziosi.com/real-estate-forums/investing-journals/58073/...
http://www.deangraziosi.com/real-estate-forums/totally-fulfilled/72344/d...
This house is a 3 bed two bath with carport. It is a fixer needing about $5000 in rehab work. The latest comps from a real estate agent only show it to be worth about $12000. That neighborhood is a tough one to get good comps on because some of the nearby streets are run down, but this house is on one of the nicer more well maintained streets. I just figure by using them for comps I wont be too far off. I am still geting bids on the work that needs to be done. This may become a hold deal for a rental. The potential rent on this house is about $600 pr month.
CHP Investments Inc.
Power Packed Investments
James Cook & Tawnya Pete We are creating a future one deal at a time in the footprint of those who have gone before us by learning daily and taking bold action on what we know works by there example and success.
[favorite quote] The execution of an idea is always more important than the brilliance of a thought; transforming learning into behavior. author unknown.
congrats on your deals!
$600 per month on a $7,500 investment! not bad at all!
Very cool,
Valerie
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
My journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/59110/...
Congrats! Glad to hear things are rolling on!
Karen
"You're never too old to be what you were meant to be!"
www.deangraziosi.com/real-estate-forums/investing-journals/59128/day-for...
"Shining Like a Star & Dancing on Sunshine"
"Shoot for the moon! Even if you fall short, you'll still land among the stars!"