Ok, I actually buy a lot of ugly houses, but I realized that I’ve been so focused on my businesses and family life lately that I haven’t been sharing too much about whats going on, so I wanted to share a recent deal that we’re doing.
So I bought the house you see below a little less than 2 months ago and the funny story behind this deal is that I bought this house on the very same street where I bought my first investment property ever over 10 years ago.
The other unique thing about this property, and more so about my business, is I’ve recently made a shift to focus primarily on homes that I can sell with Owner Financing.
If you didn’t know, I’ve been doing owner finance deals on occasion for the last 6 years, but in the last year, I’ve had a somewhat drastic mindset/paradigm shift in my business and it’s starting to play out now.
So that’s another reason I wanted to share this deal with you because if you recall, I’ve been shifting my business to focus more on deals that I can sale with owner financing, and this house definitely fit the mold….I’ll let you be the judge on how this deal shook out:
PURCHASE NUMBERS
- $58,000………..Purchase Price
- $27,000………..Repairs
- $85,000………..Loan Amount (8% Interest / Private Lender)
SALE NUMBERS
- $124,000………..Sales Price
- $20,000………..Down Payment
*Buyer paid all closing costs on their purchase (except 3% realtor fee and a few minor title costs) AND….I received an Owner Finance Note for $107,000 @ 8.5% Interest for 30 Years so this property will cash flow $200 per month for the next 30 years.
And oh btw, if this loan were to go for the full 30 years, that would be an additional $80,000+ in income above my cost of capital.
Or I can just sell the note and cash out….
*Btw, if you want to learn how to execute strategies like this, we have a couple of spots left in my Real Estate Mastermind
