And, sometimes, they are easy.....

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