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This was yet another deal I
found through cold calling. The owner was a woman who had moved to another
part of the state, about a three hour car drive away. Prior to her move she
leased the property to a family who turned out to be nothing but trouble.
She was exasperated with the time and effort this situation was causing her.
The tenants were finally moving out, but the owner wanted no part of leasing
any longer.
Her ad was buried in the local Pennysaver and gave no indication of just how
motivated she truly was. When we met at the property a few days after I had
called her she tried to put up a brave front but gradually let her guard
down. She told me she wanted a deal done now! She did not want to drive home
three hours without a done deal.
She was asking $99,000 and her monthly payments were about $825.00
Before I had the chance to make an offer, she dropped her price to $92,000.
I offered $72,000 and we agreed to $78,000. I also agreed to take over her
monthly payments for the next twenty four months, and gave her one month’s
rent, ($825), as option consideration.
I immediately went to work
marketing for a tenant/buyer. The property was run down so I advertised it
as a handyman rent to own with a 75% rent credit. By Sunday afternoon, the
first day the ad was placed, I had received 65 phone calls on this property!
I easily doubled that during the next few days.
I quickly accepted a young couple who had just relocated from Michigan. They
gave me $2,500 option money, $840 per month for twelve months, and we agreed
to a purchase price of $105,000. They also accepted the house in “as-is”
condition and agreed to do all the necessary clean up and repairs.
They were ideal tenant/buyers who did just as they said and who paid the
rent on time each and every month. When they went to exercise their option
to purchase, the house appraised at $140,000 because of the work they had
put into it! They actually walked away from the close with cash in their
pockets.
Me? I received a check for a little more than $17,000 at closing.
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