OfflineThis house was a rental, the old lady was not in any hurry to sell. She was holding out for 30K, I tried for weeks to convince her the house was only worth 20K on a good day.
During this time My buyer had called and asked if I had anything for him. I told him about this condemned house with a bad foundation, bad roof, rotted front porch and needing a total rehab. But, the lady wants 30K and I dont think anybody will want it.
Well, lo and behold, he looks it over and tells me to get it on contract becuz he will buy it for 35K
The pre lim report showed $1800 in liens. I finally got Martha (the seller) to sign my contract. Before signing she asks, are you going to pay these liens?
I laughed and said, Hell No, those are your fines, not mine. She says well then I will only get 28K and the IRS will get a big chunk. I should of said, Welcome to America.
Instead I said, yea but you will have these fines off your back, they will continue to grow with penalties and interest.
She looks off in the distance and says,I wonder what my deceased husband would do? Her daughter was with us and says, I'm sure Dad would want you to get rid of this problem.
She then asks me, you know what I'm going to do with this money, I said what?
I'm going to rehab my 2 bathrooms. I tell her, alright. That will be nice.
I'm only making 5 Grand, but I only have a few hours of looking over the property, a few phone calls and some negotiations.
And, it was fun.
Rando
Rando
A seller called this week responding to my Craig's List ad that I buy houses cash any area, any condition and any situation.
He tells me he has had surgery on his leg and cant work and needs to sell his house.
He owes $137,000 and the comparables come back at just about that or a little less.
He tells me he contacted a Realtor and found out that it would cost 8 Grand to use them, which would probably have to come out of his pocket that he didn't have.
I looked over the house, it's a nice 3/2 1600 SF in a good working class area.
I tell him I can buy it for the amount you owe and give you $2,000 Hes asks if I can do $3,000 I say OK if your payments are current I can.
He then tells me he's a month behind and he needs to stay 2 more months. I explain to him if I have to make up 3 months in payments and give you 3K I cant do it, there just no profit left for me.
I then tell him, you can stay the next 2 months and I will bring the payments current and you can walk away and I will take over your debt. He agreed.
I just got me a buy and hold rental, the payments are only $908 including PITI,
This house will rent for $1100-$1200
It's amazing to me how with a little bit of knowledge I can work out deals like this.
This seller is facing eventual foreclosure, he would lose his house and his credit, if I didn't know how to help him. Whats really interesting is this house is 2 hrs away in a nearby city. I will buy it and rent it out and maybe never see it. I can hire a handyman, painter, Gardner etc from my cozy little office.
I want about 200 more deals like this.
Rando
Rando