Okay I haven't posted in a while

[-Tony- 0]

Just signed a deal with a twist....

 

sandwich l/o

 

Townhome in a very desirable area 5 year lease for mtg + hoa fee's with option to buy at 133k it was thought to be worth 130-140k. Well there was one in the fsbo magazine under contract for 146k good for me 13k equity, nope. Here is the twist they will rent it to a friend for 2 years, then my lease starts. average appreciation for the area is 6.5% more like 8% since interest rates went down. So even at 5% in 2 years I est. it at 160-162k.

 

Rents in the area are already $350 above all her payments in 2 yrs it should cash flow $450-500. exit strategy well I have many here but will probably straight rent it for at lest 4 years (did I mention it still has the builders warranty for 6 more years). then

a) l/o it for say 225k (92k profit plus the cash flow).

buy it as a keeper.

c) at anytime we could discount it for a quick sale

d) rent for a couple than sell conventional.

 

 

is spose to be a lower case b

 

 

P.S. if anyone needs a notary try your bank or credit union "mine was free"

[Gary (MO) 0]

Talk about planting today and harvesting later! Sounds like a really sweet deal Tony! Congrats!

 

Gary

[Doug Pretorius (ON) 9]

Tony, very nice indeed! This deal sounds a lot like my first sandwich, except that I got it well below market value upfront. Of course, like a moron, my partner insisted on selling it a couple of years later ... right before the boom. It's worth about 50% more now than when we sold it, and it had be cashflowing $300 as a rental (on a $90k home.)

[MichaelC 160]

Very nice, Tony. Shows us all there is no limit to the ways we can put a deal together, satisfy a homeowner, and still create a profitable transaction for ourselves in the process. And it sounds like you're talking about a pretty home in a good area, using none of your own money to take control of it, all the while in a strong seller's market, too!

P.S. if anyone needs a notary try your bank or credit union "mine was free"

"mine was free".....that's my boy, FrugalTony !

[-Tony- 0]

And it sounds like you're talking about a pretty home in a good area,

Yes it is, they thought I would pay more rent because we first talked about a CA. So I explained to them what they were wanting from me would be a different offer.

 

They were going to replace the carpet; I explained they didn't need to do that because it would be too much expense for them with moving. This is why we set aside the money over the payment and in twelve month the carpet will be paid for saving you the aggravation. Oh, Where do I sign...?

 

using none of your own money to take control of it

No, I did put money down on this one like the all that I do.... $1.00. Ops forgot to give it to them; I will see her at work.

 

all the while in a strong seller's market, too!

Very strong

 

Doug & Gary,

 

would have been nice if it was right away but I can wait.

thanks

[MichaelC 160]

No, I did put money down on this one like the all that I do.... $1.00.

Knowing you, it was probably borrowed funds . Or, you got Andrew Ikeda to assist you with the financing

[-Tony- 0]

snagged it from my sons piggy bank.

 

oh yeah, My attorney would only give me a hard copy of the POA coupled with an intrest. So, my Aunt typed it up for me, it would have taken me 3 hrs (she did it in five min). Now I just plug in the name and address of prop's.

 

P.S. if the bank wasn't free my aunt brought her notary stamp (although it is for Alabama).

[-Tony- 0]

Saw another unit over there in sat's paper with less sqft but a garage for 56k I hope they get it

 

Tony

[-Tony- 0]

Well I just got an update on this deal. My realtor said she just had a customer get his TH which is exactly the same and in the same division appraised for 191k (I have a l/p for 133k WOW)

[Adam King (MI) 1]

Tony,

Yes....I'm taking notes to these "$30K Plus" deals you're pulling off..

Regards,

Adam

[option8 0]

Tony,

 

All I can say is WOW! Great job following up and making it happen!

 

option8

[MichaelC 160]

That's a nice chunk of equity, Tony! What say you and I meet in Vegas for some bad behavior until the cash runs out?? Tell your wife I'm giving a seminar .

[-Tony- 0]

2 points

 

1. the appraisal was for a heloc (which I thought they were a little more leanient), which she said that didn't matter.

 

2. I still have to wait 2 years before I see anything from it. Well that is when my lease starts but, TONY'S GOT A POA WITH INTEREST that he COULD use anytime.

[-Tony- 0]

Oh it took a while to find this post. Have I got an update for you.

 

I got a call from the owner tonight while I was at work. The friends (3) she has in the house are fighting, the couple broke up, they have missed one payment and shorted 2 others. The ex-couple will be moving out 15 nov and the owner will tell the other to get out at the same time.

 

So, anyway she calls me, Tony I need your services sooner than expected, PLEASE help me.

 

So, right now the townhome is worth 158k (12-15% appreciation) I will l/p it for 183.4k

looking for 5k or better option $$

1400 rent with 50%

cash flow of 500 a month

back end of 37k

 

total 48k oh I love my job

 

but on the other hand can I keep the sale price from the owner?

[MichaelC 160]

but on the other hand can I keep the sale price from the owner?

Do you mean the sale price between you and the t/b? Sure. Why not?