View Single Post
Old 03-26-2006, 08:26 PM  
HighRoller
Confirmed User
 
Join Date: Feb 2003
Location: MN
Posts: 1,037
My market is 7% appreciation, it feels like a huge slow down
I can buy $30k-$40k discount on $200k houses all day long

I can get $100k discounts on $500k houses all day long

I can get $400k discounts on $1.5mil houses all day long


When you learn really creative real estate how the market is doesn't matter that much, I have known of people who have made millions rehabbing houses in a market that didn't appreciate at all in 10 years

I know of another guru that saw almost no appreciation for a long long time.


Let me give you 1 example of a deal in 3 minutes
by the way, when you learn this business what I am telling you is really not hard at all, it's like throwing up a paysite, just takes a little longer.

Let's try a medium appreciating market


$200k advertisement

Buy for $185k no work needed
sell on a lease option to someone with average credit
for $225k on a 2 year lease option (rent to own)
get $5k non refundable option money

Seller owes $150k on the house, you get them to deed you the house, and they take back a $35,000 2nd mortgage for 3-5 years.

1 week before you close let's say 12+ months from now, with the tenant you call up the seller tell them you are coming into some money if you pay off the 2nd mortgage this week can you get a discount on the $35k
you may be suprised to only have to pay them $20k for money now.


let's recap
you got the place at $185 sold for $225k
that's 40k, + 5k option money you credit you can to use for awhile
and also you get a $15k discount on the 2nd mortgage

That's $55k

believe it or not their are experts out there with more than enough of these deals they can do, not enough time to do them all, and also some can do this with 6-8 hours total invested over 12+ months
hard to believe but true, the tenant keeps the house in good shape.


Lease options aren't legal in Texas FYI


so let's recap
HighRoller is offline   Share thread on Digg Share thread on Twitter Share thread on Reddit Share thread on Facebook Reply With Quote