Have Your Cake and Eat it Too

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  • Anonymous

    How to have a short term and a long term option play with Highest Bidder Sale… more details this weekend….



    It’s great to get a big fat check when you close on a deal.

    But, your ultimate objective needs to be to create CASHFLOW that you can count in later and especially cashflow that comes in each month.
    Otherwise, you’re real estate business will be just like a JOB — if you’re not working, you’re not making any money.

    Here’s an example of a deal I recently did using the strategies I talked about on the SUPER Tuesday conference call.

    I get Money now and money later…. I could have structured it for monthly cashflow too – but I did not want to get stuck making payments on a $350k house so I passed on that aspect. Can you see how that could have been incorporated in to the deal too?

    Let me show you how you can have your cake now and get to eat some more later….

    The house is 3500sf retail value $385 – $390k

    The seller is the builder. He built it in 2004.2005
    and lived in it until 2007 ( he is on the live there and move every 2 years plan)

    He owes $200,000. Payments are current. Fixed mortgage. House is in great condition.

    It has been for sale since January when they moved out of state.

    I negotiated a strike price of $249,000.
    They will accept seller financing ( or even a master lease – they don’t care anymore)

    I’m going to do a highest bidder sale for the highest down payment.

    we will split what ever I get for a down payment ( my cake now)
    The purchase price will be $350,000
    So, I anticipate getting $20,000 – $30,000 down

    And… I negotiated that I’ll get 50% of the sales price over $249,000 with it cashes out.( get to eat more cake later)

    We’re going to put a 3 year balloon on the note with the right to renew with an additional fee..

    How many more deals just like this are out there right now?

    You just need to go find them.

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