The Lazy Investor - Just got a call from a Seller that saw my ad, heard my message and left their number. Sounded excited to have me call back, so, (of course), I did...
The husband had left the message to speak with either of them, and as his wife answered the phone, I began to discuss what we could do with her.
All was going great - she understood the fact that buying their house was not an option in today's market in Las Vegas - payments don't meet rental rates and therefore we would get into a negative cash flow situation, which would not be a winner for me.
I explained that we could do some creative stuff, leaving their loan in place, taking their payments, etc.... She was interested in that idea.
As they didn't want Realtors shuttling through dozens of 'lookers' and also since they could not set an exact move-out date ("moving to Tennessee 'sometime in the summer' - June or July" was all they know right now), they were looking for a more calm solution.
She told me a bit about the property (I explained why it didn't really matter to me what it looked like if the numbers were right - she understood...) and we got to the particulars of how the deal would come together - that's when she put her husband on the phone...
Now, I had to go through the whole 'pitch' again - although he, too, was open to the idea and interested in putting something together quickly.
So, here's how the deal came out...
Value - $335,000 (appraisal 2 months ago, when they did a re-fi to an interest-only loan)
Owe - $210,000 (re-fi)
Payments - $1285/m
Area - Silverado Ranch and Las Vegas Blvd (newer subdivision)
House - 3 bed + loft, 2048 sq. ft.
Lot - .12 A (kinda small...)
The deal...
We'll take over their payments, as-is. Do a LP for $10 down (the legal minimum in Nevada) and give them their $335,000 at the end of 5 years.
That allows for about $150/m cashflow.
It also allows me to pick up $10,000 or so up-front when a new tenant/buyer moves in.
And, when it is sold in a few years (not likely to happen until I've picked up at least another $10,000 from a 2nd tenant/buyer - maybe more...), I'll pick up another $20,000 minimum.
Not bad for running an ad in the paper....
Happy Investing,
Steve
To learn more about the methods used in this deal, be sure to visit www.TheLazyInvestor.com. Everything used to make this deal, including the contracts, ads, even the recording that makes Sellers anticipate your call is available in The Lazy Investor's Guide to REAL ESTATE and The Lazy Investor's Guide to LEASE PURCHASE, both availabe now at www.CashFlowProducts.com
Monday, January 31, 2005
Thursday, January 13, 2005
Screamin' hot deals - they don't last long...
The Lazy Investor
Well, today was a perfect example...
A hot deal came across my desk at 10:40 AM - something that one of my Deal Finders sent to me - a 1000+ sq. ft. house in a 'less than perfect' neighborhood for $62,000.
The comps they pulled were showing around $112,000 value, and as is common with these deals, the house would likely need some work.
We were told that the place had a renter in it - nothing more on the deal at all....
Now, this deal alert went out to others on the list of this Deal Finder. To be sure, they have put together their list of buyers to make short work of such deals - that's just good business.
I sent the message out to the Club Members of LVREIC (Members get priority notifications of all such deals) as soon as I read the message, which, today, was just after lunch (I was at the bank cashing a $124,630.85 check from another deal I did recently - you can read more about that in another story...).
Members of LVREIC received the DEAL ALERT at 1:57 PM
One of the members contacted me around 3:45 PM and I followed up on the deal...
It was GONE already!
You see, deals like this are out there. Oh, not everyday, but they are there.
And, when they come along, you have to be READY. Not only ready to "look at it", but ready to BUY it.
People that get deals like this are those that are "decisive in nature" - they say "I'll take it, and then work out the details", not the other way around.
Now, would this be a screamin' deal if it needs tons of repairs? Well, it could take $20,000 and still be a good one - if you wanted to do that much work (that's actually one of the main reasons I didn't take it, BTW...)
Looking into the deal further, we found that the 'renter' was someone that wasn't paying anything to the owner of the property (maybe even a dead-beat family member) and they didn't want to go through the hassle of eviction (and the trouble of family issues, no doubt...) - that is one of the reasons they were selling so quickly and cheaply.
So, the deal isn't 'clean'... It will take some work to get the property into shape after going through an eviction (about 30 days in this state). But, there is still a good amount of equity sitting there and a deal is to be had - - -
IF you are READY!
Are you ready? What can you do, right now, that will put you in a position to get such deals like this one? Who do you need on your team to make things like this a reality in your life?
Or, maybe you just aren't interested in getting screamin' hot deals like this...
If you'd like to get these DEAL ALERTS quickly, get on the LVREIC Member's list. You can do that at www.LVREIC.com.
Happy Investing,
Steve
Well, today was a perfect example...
A hot deal came across my desk at 10:40 AM - something that one of my Deal Finders sent to me - a 1000+ sq. ft. house in a 'less than perfect' neighborhood for $62,000.
The comps they pulled were showing around $112,000 value, and as is common with these deals, the house would likely need some work.
We were told that the place had a renter in it - nothing more on the deal at all....
Now, this deal alert went out to others on the list of this Deal Finder. To be sure, they have put together their list of buyers to make short work of such deals - that's just good business.
I sent the message out to the Club Members of LVREIC (Members get priority notifications of all such deals) as soon as I read the message, which, today, was just after lunch (I was at the bank cashing a $124,630.85 check from another deal I did recently - you can read more about that in another story...).
Members of LVREIC received the DEAL ALERT at 1:57 PM
One of the members contacted me around 3:45 PM and I followed up on the deal...
It was GONE already!
You see, deals like this are out there. Oh, not everyday, but they are there.
And, when they come along, you have to be READY. Not only ready to "look at it", but ready to BUY it.
People that get deals like this are those that are "decisive in nature" - they say "I'll take it, and then work out the details", not the other way around.
Now, would this be a screamin' deal if it needs tons of repairs? Well, it could take $20,000 and still be a good one - if you wanted to do that much work (that's actually one of the main reasons I didn't take it, BTW...)
Looking into the deal further, we found that the 'renter' was someone that wasn't paying anything to the owner of the property (maybe even a dead-beat family member) and they didn't want to go through the hassle of eviction (and the trouble of family issues, no doubt...) - that is one of the reasons they were selling so quickly and cheaply.
So, the deal isn't 'clean'... It will take some work to get the property into shape after going through an eviction (about 30 days in this state). But, there is still a good amount of equity sitting there and a deal is to be had - - -
IF you are READY!
Are you ready? What can you do, right now, that will put you in a position to get such deals like this one? Who do you need on your team to make things like this a reality in your life?
Or, maybe you just aren't interested in getting screamin' hot deals like this...
If you'd like to get these DEAL ALERTS quickly, get on the LVREIC Member's list. You can do that at www.LVREIC.com.
Happy Investing,
Steve
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