OfflineHi 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?"
WoW!!! Good first deal!!! Congratulations!!!!
Shirley
Everything works out in the end. If it hasn't worked out, it's not the end.
You have not lived a perfect day, unless you have done something for someone who will never be able to repay you. Ruth Smeltzer
It is what it is 'til you change it.
This is wonderful I do hope MY VILLIANS will disappear fast have a new realtor today she is sending me a nice house hope the figure pan out and I have a little cash investor sooooo this is my day 5
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
I am determined dedicated and will make it in real estate thanks Dean
MY BLOG ENTRIES DAILY:
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That Villian is definetly one hell of a challenge to beat!!
Now if more people getting involved in real estate can beat that villian as many of us had, there would be a lot more successful and happy people out there.
So people get in the game, beat that villian by taking action and never giving up. You only live once so what do you really have to lose?
Once you beat that villian you can beat him everytime he appears because you soon realize he is not much of a challenge!
You Can Have and Be Anything you Want!!
Jason Bly (The RE_Situation)
Visit Me at http://www.facebook.com/JasonBly23
Blog- http://wholesalesuperstar.blogspot.com/
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My how to take Discount Vacations Blog- http://www.advisorytravel.net
Stan,
Thanks so much for posting your deal! Way to kill the villian within!!
-Teresa
College Station, TX
Teresa
College Station, TX
**********************************************************************************
"Declare that you will prosper despite every difficulty that may come your way. Don't just survive; thrive!"
-Joel Osteen
Thank you for sharing the details and how you overcame and just did it!
www.tw4homes.com website
congratulations! what an awesome deal. here's to many more.
Linda, Army EOD Mom
you can follow my journal at http://www.deangraziosi.com/real-estate-forums/investing-journals/45351/...
IT'S ALL GOOD AND EVERYTHING IS WORKING OUT PERFECTLY FOR ME!
Fear equals:
False
Evidence
Appearing
Real
this is a perfect example of a sandwich lease option. Everybody take note as you simply need to open your eyes.
Always Looking to Acquire Houses | Always Looking to Amaze Investors
Thanks for sharing the details with us. Great job!!!
Grace
Thanks for sharing the details with us. Great job!!!
Grace
Great job thanks for sharing
Thanks for sharing your story. It is so encouraging to hear about successful newbies!!
--Walter
If it is to be, it is up to me. -unk
I love those kind...Nice job putting the deal all together and making it a win,win,win...Next
Not having a goal is worse than not setting one..
http://www.deangraziosi.com/real-estate-forums/investing-journals/92139/... -
http://www.deansmedia.com/play.php?vid=266
You are a great inspiration to me, I've been having the same kind of issues with the villain in me. Your post is very teachable. Thanks and keep up with the good work.
"I bought her house on an agreement for sale contract. I paid $189,000"
You filled out this form? http://www.deangraziosi.com/documents/Agreement-to-Purchase.pdf
and added that:
1. you pay her monthly mortgage payment, taxes ,insurance. and 2. You're responsible for all of the maintenance and repair?
Then went straight to marketing the property?
It may be no money down, but if you owe $189K after three years, who is going to pay that?
"A man who has never lost himself in a cause bigger than himself has missed one of life's mountaintop experiences." Richard Nixon
Thanks Shirley! :0)
"If you don't do it...Who will?"
Stan, you are the man.Thank you for sharing.
All the best
chuck
Sometimes people wonder why things don't change. If YOU change your way of thinking with a little imagination and creativity, sky's the limit. I hope this encourages others to get their 1st deal as well. What did you do different today that you didn't do yesterday?...Way to go! Best wishes.
To get something you've NEVER HAD
DO something you've NEVER DONE.
Great job Stan! Quick question. Can you post a link to your buyer and seller sites so we can review them.
Brian Carter
Proverbs 13:20
BirdDogBot
As Bill points out above, once you learn HOW to structure the deals, you can put deals together like this still creating the WIN WIN WIN for all!
Mike
Mike
DG site INSTRUCTIONS to help you navigate this site:
http://www.deangraziosi.com/real-estate-forums/everything-else/98369/dg-...
My free website from Dean http://pmdproperties.usapropertywholesale.com/
Great post. Thanks for sharing the specifics, we can all learn something from this. Keep working it!
Jean Maestre
The Maestre Property Group, LLC
"Our deepest fear is NOT that we are inadequate, Our deepest fear is that we are powerful beyond measure"
"Do or do not, there is no try"
"Every adversity, every failure, every heartache, carries with it the seeds of an equal or greater benefit"
"1. you pay her monthly mortgage payment, taxes ,insurance. and 2. You're responsible for all of the maintenance and repair?
Then went straight to marketing the property?
It may be no money down, but if you owe $189K after three years, who is going to pay that?"
In our agreement - I agree to pay her mortgage payments, property taxes and insurance, however, that does not mean that I pay them. My tenant buyer (rent to own person) is actually the one paying those costs, and...there is positive cash flow left over for me every month. When the term is due...my Tenant buyer cashes me out at $235,000 and I cash out the originally owner from that money. So , literally....Not one penny from me. That is not the form I used but pretty similar. Because I'm in Canada, it needed to be tweaked. Basically I use the exact same form that a real estate agent would use and then I add a finance agreement as an appendix stating that the owner has agreed to "wait" for there money while I pay the costs in the mean time. Hope this helps! Have a great day. Stan
"If you don't do it...Who will?"
Thanks everyone for the positive feedback and nice comments. What did I do different...All I did was ask myself..."What is the worst case scenario? If I call a FSBO and they say no, not interested...what have I lost?" NOTHING. But what if I call 20 FSBO'S and ONE says yes?" And that was it! I had about three FSBO'S say yes actually, unfortunately the numbers didn't work so I couldn't do the deals. That is what started me off. After that I got into the momentum of doing something everyday that put me closer to my goal. It might have been Posting a few ads, or tweaking my website or making calls. Now that the first deal is done...I KNOW IT CAN BE DONE. My motivation to do the next one is very high!
My websites are:
1) this one is to attract sellers www.ibuywinnipeghouses.com
2) This one is to attract buyers (rent to own buyers) www.wearethebank.ca
Hope this helps everyone realize that the only thing stopping all of us from doing better is...US! Have a great day, Stan
"If you don't do it...Who will?"
Thanks so much for sharing with us.Great job.Keep it up.
David,
Corpus Christi,Texas,USA
David L. ****erson
Job well done Stan, I enjoyed the post you are an inspiration to others like myself looking for our first deal.
Hi Stan what a different makes when we really take action and kill the past, job well done, nect one,huh!!!!!!!!!, Jim
jbischoff
Great deal you made! Keep up the good work! (Like I even have to say THAT after a payday like you just had!)
Lease options are great! Congrats for stepping out and making it happen. The first one is always the hardest, because then we see that it actually is much easier than we imagined.
Karen
"You're never too old to be what you were meant to be!"
www.deangraziosi.com/real-estate-forums/investing-journals/59128/day-for...
"Shining Like a Star & Dancing on Sunshine"
"Shoot for the moon! Even if you fall short, you'll still land among the stars!"
Hey Karen, Thanks. You are right. Once I did this deal, they handed me the keys...I walked into the house after they left, stood there for a second and said..."That was it? That was easy!" lol I felt like I just pushed the Staples Easy button. It really isn't that hard at all. The hardest thing , as everyone is experiencing, is to put your right foot forward and take that first step. The best thing about the initial negotiating is, for the most part, it's all done over the phone. For those people that are self conscious or shy...This is perfect for you. You can be anyone you want to on the phone. They can't see you, they can't judge what you look like or if you are shaking in your boots...Go into acting mode and be confident. You'll get most of the negotiating done prior to meeting them, and at that point...you are home free! Good Luck! Stan
"If you don't do it...Who will?"
This gives me the confidence to go out and do a deal like this one. Can i ask what steps did you take to screen your tenant buyer? I don't have a website to send them to but i want to get an idea.
Thanks for sharing your experience... Can wait to get started myself.. Keep up the great work.
Way to go Stan! Congratulations on your first deal. The first one is always the hardest. Now go out and get the rest! Not a bad pay day for you! whoot whoot! :0)