Read about the first deal a CashFlowDepot.com member did 3 years ago. It's a deal that paid him $35,000 in cash PLUS he makes about $200 per month in cash flow PLUS he still has a lot of equity. Do a search for Deal Stories in this blog to read about other deals CashFlowDepot.com members have done.
Continue reading “First Real Estate Deal $77,300 Profit. Yes! This Really Works”
Learn how you can use real estate you already own to help you acquire more properties without refinancing and without going to the bank.
Continue reading “Unlock Your Real Estate Equities Without Going To The Bank”
There is a story behind every real estate deal and a valuable real estate lesson too. So, I created a new section called DEAL STORIES. I'll share some of my deal stories but I'd like for you to share some of yours too. To submit your deal stories, email the details to [email protected] See details below about the information to submit.
There is a story behind every real estate deals. The sellers circumstance which caused then to want to sell quickly, usually for a deep discount. The buyers strategy for buying then reselling. Every house tells a story and there's a valuable lesson to learn with each story. We'd like to hear your deal stories. Monday will be the "DEAL STORY" day. To share your favorite real estate deals, email to [email protected]
Somewhere along the line I stopped being a real estate agent and started being a principal. As an agent, I’d have had a fiduciary with the homeowner to get the best price and terms. As a principal, I had no such fiduciary and was able to use any skills I might have had to get the lowest price and terms. My fiduciary with the buyer was to deliver the house at my contracted price, which earning $30,000 made me quite happy to do. But when the buyer turned the house down, I could buy it myself and do with it what I wanted.
Sometimes it's impossible to try to gulp down two deals in a single transaction, so a sequential structure provided by a split real estate option is required. Tim needed $10,000 to buy into a special stock deal. George only had $5,000 and he was holding on to it. Tim offers George a $10,000 cottage plus an Option on a lot he values at $13,000 in return for $5,000 cash plus George's promise of an additional $5,000 within 30 days to close the Option on the bargain lot. Tim then OPTIONS the stock with his $5,000 to hold it for 90 days.
What one can do with houses, one can sometimes also do with privately held seller financing. Suppose in the foregoing example in the last post about Buyback Options that the transaction had all been done with seller financing. Now the seller has a promissory Note secured by his former property that is paying 10% interest only, or $25,000 per year, for ten years. He’ll or his assigns receive $250,000 at that time.
Continue reading “Discount Buy-back Real Estate Options Continued”
Leases and Options resemble interest-only Notes and mortgages with balloon payments when you come to think of it. A properly drafted Lease incorporates a promise to pay with security for the promise in the form of some sort of collateral in the same way that a Note and mortgage do. The Option requires a lump sum payoff - or another promise of payment - just like a balloon note. Oddly enough, when people see a Lease and an Option, they don't perceive the possibilities for wrapping either - or both - of them. Read on.
How can real estate Options secure loans?
I was recently approached by someone who had a quick deal that promised to make him $50,000 in just a few months. He already had a potential buyer lined up to lease the house on a five year lease. At the last minute, his lender had dropped a bomb on him at the last moment, and refused to lend him the wherewithal to buy the house. Now he needed a quick loan to finance the house or he’d lose it. The problem was that there wasn’t enough time round up another loan, nor was there enough time for me to do all the credit checks of him and his buyer to see whether or not he was creditworthy. (Unfortunately, this seems to always be the case when people need money.)
Continue reading “Lending Money Secured By An Option To Buy”
The five most important words in any real estate transactions are WHAT'S IN IT FOR ME?
What are some of the advantages to using real estate Options? Of course specific benefits will vary according to the individual needs of the parties, but we can make some general statements with regard to Options that might apply to everyone at one time or another. Let's start with LEVERAGE.
