Hi everyone, I just wanted to share my story about my first deal, and maybe give some people out there a little hope. THIS STUFF WORKS!
I ran an ad on Kijiji stating "I BUY HOUSES". The home owner went to my website and filled out my questionnaire (my pre screening process.) She had a house that she was trying to sell that had a bad tenant in it, also, at the same time, had a dream home that she just moved into and needed to sell the first home to get rid of her head aches and to satisfy her banker. In the questionnaire I asked if she would sell me her home for what she owed. Answer - YES! Long story short, this is how it went down:
She contacted me!
I bought her house on an agreement for sale contract.
I paid $189,000 (today's value - $210,000)
NO MONEY DOWN, NO BANK, NO CREDIT CHECK!
She agreed to allow me to pay out her mortgage when it was due...In three years.
I pay her monthly mortgage payment, taxes and insurance.
I am responsible for all of the maintenance and repair -basically...she just walks away!
Once the contract was signed, I posted it on kijiji as a RENT TO OWN Opportunity.
I had sent everybody to a different website where I gathered their info (another pre screening process).
Once the prime candidate came across my email - (someone who can afford the payments, looks pretty stable in their job etc.) I contacted them.
Bottom line: I sold him the house for $235,000 (aprox. market value in three years based on last ten years of market increases )
He gave me $1500 down (I would have preferred to get more, but, because of his situation...I worked with him). He pays me $1250 per month rent for three years plus an additional $400 per month which goes towards his down payment.
By the time everything is said and done, I will make $50,000 from the sale price (remember...he is paying down the mortgage, so...after three years, I'll owe less than $189,000.)Some of this money I actually get right now...his $400 per month is MINE!
Plus...I'll make $3,800 positive cash flow over the three year term from his rent. He is 100% responsible for all maintenance and repairs. HOW SWEET IS THIS?!! So...can it be done?! YOU BET.
I will tell you though...it took me about three years to get over this "subconscious fear" Fear of the unknown..."The Villain!!! One day I just bit the bullet and said..."If I don't change and do something different...This is what I'll get! What I have right now."
So, $53,800 for a house I bought with no bank, no credit check, no money! NOTHING! All together...4 hrs work. that is equivalent to $13,450.00 an hour! I can't think of any JOB out there that can pay you handsomely like this. Here's my next thought:
If one house nets me $50,000 +, what would TEN net me in three years? $500,000 nest egg at cash out time! So, here I go...My goal is 10 by years end. If I can do this...There is absolutely NO REASON that ANY ONE OF YOU OUT THERE CAN'T DO THIS TOO! Good luck... and KILL THE VILLAIN. Stan
"If you don't do it...Who will?"