OfflineI closed on a house at the beginning of November using private money, then turned around and got a mortgage on it and a check for 15k. Here is the deal. Contacted by a party who had a nice house that they lost in a bankruptcy/foreclosure back in 2010. By some miracle they were able to negotiate with the bank (local bank) to stay in the property and continue making payments. The problem was the bank was charging them 5k a month in payments, putting 3250 on principle/interest and the rest was "rent" He could no longer afford those payments so we struck a deal that I would buy the property from the bank and sell back to them on a contract for deed. House appraised for $365k and they owed 154K they also owed property taxes, and some other stuff in arrears. Our arranged ment, was I would sell it back for the total amount it costs me plus an additional amount in profit. They were all good with that, they just wanted to be done with the extortion from the bank. Closed with the bank using private money, sent it to my banker to get a mortgage, have a ton of equity in the property, so was able to cash back at closing of 15k. I guess I could have taken more, but I also wanted cash flow in the middle while waiting for them to cash me out of the contract for deed. It was my first time using private money, and it wasn't cheap but all my costs were rolled into the price that I am getting from them. Win!
Cathy B
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What a great deal! And even better, helping to get the family relief and to be able to keep their home!
Awesome!
Karen
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and to be able to really help people is just so great!
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I do like the helping part of the deal. Am working on another where family bought house on contract for deed from edlderly woman, she passed away and the sons are not willing to extend the contract because there is so much equity. Family has lived there for over 10 years, and couldn't get financing due to a tax issue that has now been cleared up. I am going to buy the contract again using private money, and re contract to them on a 3 year term with incentives to cash me out early. Plan on taking some money at closing for this one too once I get financing.
Cathy B
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Congratulations on a great deal!
Don't you just love a win-win??
John and Julie Wakefield
JCW Properties, LLC
That's awesome! I use private money all the time for my deals; as you say, it's not cheap, but you get a deal without any of your money!
Very cool! What a great feeling when you help out other people!
Valerie
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I am in a deal where I am trying to help a long time renter own "her" house too. Problem is, I got the house under contract (the seller didn't tell his tenants he was selling) and when we get to the title office, I'm informed he is bankrupt! Now he won't answer the questions the court is asking (like where did he get the money to buy the houses in the first place) so we've been in limbo ever since. Over a month now and I'm ready to walk away from the deal, but hate leaving her without a chance at her dream and sending money to this loser landlord.
Any ideas on how I could get this thing moving forward would be much appreciated. I really wanted to surprise this tenant with a lease option contract for Christmas! (She thinks I am the new property manager for this guy)
Peter & Debbie Klassen
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Very good! It had to feel nice to get a good deal and help people at the same time.
Win Win!
Aaron-n-Suzy
Great job! How does that work with private money? If there is equity in the prop, then they will finance you 100% and you dont have to come in with any of your own money?
Sweet on how you helped them too so nice! Congrats, and on the $ too:)
Tony
Go faster do more! GFDM!
Looks like you've found a niche that you may be using time and time again. Thanks for sharing the details on this deal and the one in the future. Keep moving forward!
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for all the nice comments, it is appreciated.
Tony, the PM did finance 100% of the deal because there
was so much equity. For him it was less than 50% loan to
value, who wouldn't take a risk like that. If I didn't
pay him or cash him out, he gets a house with worth twice
what he loan on it.
Cathy B
Follow my progress at:
http://www.deangraziosi.com/real-estate-forums/investing-journals/44397/...
I LUV these creative deals !! One question... If they had a legal contract and the seller died, how come the " estate " wouldn't honor the contract ? I take it their contract did not state this ??
(. We learn so much in every deal 
) great job and keep CRANKIN the deals !!!!!
Jay
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need to sell ? http://www.jayhousebuyers.com
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They honored the contract until the date that it was up. The old lady was easy to work with but the sons are not. The buyers aren't blame free either, they got themselves into financial trouble and just dug themselves out, but need a little more time to qualify for a mortgage. I think I am going to structure the deal on a sliding scale. Meaning if they cash me out in one year it is X dollars but increases if it takes 2 years with another increase at 3 years, giving them some incentive to get it done.
Cathy B
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http://www.deangraziosi.com/real-estate-forums/investing-journals/44397/...
Great Story, Great Ending, everyone win here. I love to read saga ending like these. There is a saying "IF you help enough people get what they want, you will finally get what you want"
t.taylor
Congratulations on completing a deal . I really enjoyed how you structured the offer . Thanks so much for sharing .
Randy Sherman
Elkton MD
Awesome!!! Way to make it happen!!
Way to go on the deal and even better you got the family out of stressing to keep up with the banks payments and still get to stay in the home. Talk about a Win Win situation.
Reynold Orozco
It makes you feel Great to be able to HELP ppl and make a nice check.
Be the Problem Solver and HELP ppl
Mike
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Gotcha. Way to go !! Nicely done.
Click Here For homepage www.jaysthilaire.com
need to sell ? http://www.jayhousebuyers.com
Need me to FINANCE a home ? http://www.jaysrenttoown.com
CHECK OUT MY JOURNAL http://www.deangraziosi.com/real-estate-forums/investing-journals/20063/...
Cathy, we met at the Edge event last year and It has been great to get to know you. I'm way excited about your deal, it is an amazing feeling when that money hits your bank account and your like wow, i just did that.
Great job, always to see successes here.
I always say Keep Moving Forward! Never Give Up On Your Dreams!
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Way to show us how it's done. It really is possible to do deals with no money out of your own pocket. Great job!
Chris
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