How I turned $500 into $30,000

How I turned $500 into $30,000

Last November I bought a house that was in foreclosure for $43,000. It was listed for $46,000. At first glance that doesn't seem like that great of a deal. I locked it up within a few days of it being listed. Here is why. It was listed as a two bedroom. Most people want 3 or more bedrooms. Also, it was located in a nice up and coming location. When I got there I found out there were 2 more bedrooms upstairs that they weren't counting. When I asked the listing agent why they weren't counting the 2 bedrooms upstairs she said "we can't count the upstairs as livable space because there are no heating or cooling ducts running upstairs." My banks appraisal showed the same thing. I was thinking in my mind "YES!!!" After I closed on the house I called a guy that installs heating and cooling ductwork and he ran the new ductwork for $500. Now I just added 600 square feet of "livable" space to a house for $500. I asked my realtor how much more money I would be able to get for 2 added bedrooms per square foot over and above non-livable square feet and she said about $50 more per square foot. 600 times $50 is $30,000! That is just one way to "THINK A LITTLE DIFFERENT."

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You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!


Yup

Mr. K30.... Cbrpower is Matt Larson in the flesh. Good man to have around for general advice and questions pertaining to the 25:1 strategy's he talks about in Deans new book.

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John 14:6


I Have A Ready Buyer For A Lease Option!

I have a ready buyer for a lease option home and I spoke to an agent who said his seller is motivated and would consider selling on a lease option. I am going to look at the home today.
All the numbers looks good.
Rents for 1,500, and I will re-rent for 2,000. Give 500-1,000 down but will ask for 5,000 down from new rent to own buyer. That's 4,500-5,000 cash and a cash flow of at least 500 per month.

I will ask for a 24-36 month term and a 500 per month credit towards the purchase.
Taxes and Insurances paid one year in advance.

Am I missing any other terms I should be asking for.
Let me know.

SEE YOU AT THE TOP!
Mr. Godfrey
www.godfreyestatesllc.com

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Mr. Godfrey


Great Tip on increasing the value

CBR,
I want to thank you for sharing this way of increasing the value of a property. I will remember it to use if I come across a situation like that. Again thank you for sharing how you did it.

Tim

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Tim
Keep on Keeping On !!! Expect it, God has already given it to you. You just need to get out there and grab it!
If you want to follow my journal:
http://www.deangraziosi.com/real-estate-forums/investing-journals/33874

Do not fear, for I am with you; do not be dismayed, for I am your God.I will strengthen you and help you; I will uphold you with my righteous right hand. Isaiah 41:10


amazing thinking mate i

amazing thinking mate Smiling

i havnt been here for so long because i was skeptic about this but i hope you guys can prove me wrong because i am interested in doing real estate.


sounds good but if you cant

sounds good but if you cant actually sell it for 30K more then it really doesnt mean much. Banks will only lend on comps, and chances are if you paid a certain price for it, and 2 days later want to flip it for an extra 30K...I doubt anyone will get a mortgage for it unless they put up a big chunk of change as down payment


I don't understand how the

I don't understand how the duct work for heating and cooling was so cheap, or is it that it was only duct work, and used and already exiting heating unit???

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www.tw4homes.com website
http://www.rehabvaluator.com/f FREE SOFTWARE FOR WHOLESALERS, REHABBERS AND AGENTS! Present professional looking deals to buyers and lenders as well as run your numbers and get the ROI.


Loving the information

loving the information and congrats on a great deal. I can't wait to get started in real estate.


Love it!

What a great example of looking for buried diamonds. Great post CBR!

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Chris

"Faith is the eternal elixir which gives life, power, and action to the impulse of thought.

"Faith is the starting point of all accumulation of riches!"

- Napoleon Hill, Think and Grow Rich


Awesome

Matt,

Thanks for throwing this thread in. I often wonder about the deals you guys(successful/inner circle) guys do. I can see now that you DON'T have to get it at 40% below asking price to make it a great deal. Thank you that goes a long to easing my mind about some deals/offers. That and that you are ok with cashflow that is $300.

Rina,

Thank you for your post too. I have been looking at 2/1+ as well. I have been looking to add new bds to houses that have the sq/ft to accomodate them. I'm glad I am normal.

Thanks again for everyone's helpful and insiteful posts and threads. Keep them coming.

Jason

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You can never fail if you keep trying.
If you do something everyday that puts you closer to your goals it will never be a wasted day.


Very Interesting

I am beginning to see how lucrative real estate investing can be..

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Joel


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