Once I stopped making excuses and picked up the phone to start the process I landed a 3 bedroom 1 bathroom SFH in need of cosmetic repairs for only $5,000!
I was already sold but I still needed to do my due diligence. I requested the lock box code and scheduled a time to view the property. I brought a friend as the neighborhood is a little sketchy and we drove to the house to inspect it.
When we arrived the grass was 2 ft high but the interior was exactly as described. It just needed cosmetic repairs!
BAM! THIS IS A WINNER!
I contacted the agent from the property and asked him to email me a purchase agreement. This house was mine!
After I hung up the phone my buddy turned to me and expressed interest in owning this house.
Could I have this house sold within minutes??
My friend wanted the ability to purchase the property when it was move in ready on “seller financing” terms. I started to think creatively on how to continue winning with this deal.
Rather then funding this tiny deal myself I contacted one of my private lenders and requested a loan of $15,000. My plan with the money was to use $10,000.00 to purchase and clean up the property and the balance $5,000 was going to me for an upfront instant profit.
My lender agreed to the terms for 2 reasons:
1) I have a flawless track record with him
2) The property (once cleaned up) would sell fast for $25,000 so he was safe with his position in the deal.
Now I had a contract on the deal, funding in place and a buyer ready to move in under the right financing terms. I structured a “triple net lease” with my buyer where he would pay me 60 equal payments and at the end of the term he could purchase the property for a dollar. These terms fit exactly what he needed and he now was a proud home owner.
Under these terms I will profit an additional $5400.00 on the back end bringing my total profits to $10,400.00
Here is a recap:
I picked up the phone and made a few calls on craigslist to land a great deal
I visited the property with a friend and locked up this great deal with a purchase agreement
I did get a little lucky with my friend wanting to buy it off of me right away under seller financing terms
I got creative with the financing part, brought in some private money enabling myself to be paid a small profit upfront then a small profit on the back end.
The most important takeaway from this is that I took action by picking up the phone and making calls! That’s is the most important step in any business.
TAKE THE FIRST STEP!
Get out there, Take Action and share your results with me! I’d love to hear about your journey to financial freedom!