OfflineHey DG family I wanted to share my 2nd deal I got done, it took a little longer than I expected but I didn't give up.
Ok, this is was a single family house I got a call from one of my bandit signs back in Jan 2014. The seller inherited the property from a friend that pasted away and didn't want to keep up with the maintenance on the property so she wanted to sell. She had a 2nd mortgage on the property for $49,000 and wanted to sell to me for $60,000. The house was worth $70K in the as is condition. The property needed some updating and could be valued at $80k-$85k if updated. So I knew the spread was a little too tight so I explained to her bout the lease option and she said yes. I offered her $50K which covers her mortgage and offered her $750 a month to cover her monthly payment on mortgage, taxes and insurance. We signed the contract were I have 3 years to buy with extensions on the contract if needed. I started to market the property on craigslist for $5,000 down and $1,100 a month with a $85,000 purchase. Took a couple of months showing the property and finding the right person that was willing to take the house as is with the needed repairs which weren't nothing big. I found someone That gave me the Option consideration fee and monthly rent of $1,100 a month and locked into the contract for 18 months to purchase.
Heres the numbers
I got the house for $50K
Rent at $750
Option fee to sell $200
Tenant buyer rent and security deposit $2,200. $350 for me
Option fee from tenant buyer $5,000. $4,800 to me
Purchase price to tenant $85K. $30K goes to me.
I love lease options!!!! I might have another lease option in the pipe line. Also have another wholesale deal closing in the next couple of weeks and have 2 properties under contract right now that i'm looking for a buyer for. I will keep you guys posted with the details.
My confidence is building more and more after my past 2 deals and it seems as more opportunity seems to be coming my way now.
Reynold Orozco
I'm so proud of you and I admireyour persistence of not giving up. Thank God you are starting to see your dreams come true. Its just the beginning, more blessings are coming your way..
TC
Miami Florida
"If you are not doing something that help the universe or God or your family, or YOU, is that something you should still be doing?"-Dean Graziosi
"Each day do one thing to get you closer to your dreams because if you do today what others are not willing to do, then tomorrow you can do those things that others are only dreaming about doing!"- Joe Jurek
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Way to go!
www.tw4homes.com website
https://tvallc.isrefer.com/go/RehabLite/reigirl/ FREE SOFTWARE FOR WHOLESALERS, REHABBERS AND AGENTS! Present professional looking deals to buyers and lenders as well as run your numbers and get the ROI.
Thank you. You will began to start seeing the same as long as you don't give up. I read all your post and see you are active and soon will be landing your first deal trust me. We learn from trial and error so do not get discourage. As Ali said, if you want to double your success rate, double your failure rate.
Reynold Orozco
Ray that is awesome.......and the way you negotiated is what I liked most....... You get a perk on both ways right? Monthly cash flow and on the end
Watch your thoughts, for they become words.
Watch your words, for they become actions.
Watch your actions, for they become habits.
Watch your habits, for they become character.
Watch your character, for it becomes your destiny.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Our Heart's Desire must be nurtured by our mind,to give birth to common sense, that will enable us to seek out the path less traveled, with the greatest Personal Growth. -J.R.-
it's so nice to hear about a deal where you had to think creatively! Nicely done!!
Wishing you continued success,
Valerie
“And will you succeed? Yes indeed, yes indeed! Ninety-eight and three-quarters percent guaranteed!” ― Dr. Seuss
"I believe in angels, the kind that heaven sends; I am surrounded by angels, but I call them friends" - Unknown
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Thanks J.R. And yes I get a monthly cash-flow of $350 and a $30,000 profit when the tenant buyer buys.
Reynold Orozco
Congrads. Look forward to hearing your next deals.
Congrats on your deal!
Lenee
www.allstarhouses.com
~Act successful! And you'll draw it to you.~
~Every achievement, big or small, begins in your mind. It starts as a thought.~
I bet the feeling which you have right now is priceless and I know you have gained more momentum off the ceiling:)
I'm never going to GIVE UP. I have lot of courage to push me forward.
Like Carol always says "Your WHY should make you wanna cry" and that exactly what has been pushing me forward.
Also I have toiled hard day & night to get to the level I am righ now. I feel blessed and QUITTING is not my dictionary! !
TC
Miami Florida
"If you are not doing something that help the universe or God or your family, or YOU, is that something you should still be doing?"-Dean Graziosi
"Each day do one thing to get you closer to your dreams because if you do today what others are not willing to do, then tomorrow you can do those things that others are only dreaming about doing!"- Joe Jurek
Follow me on my road to being a BILLIONAIRE http://bit.ly/1q7aOFX
Go LIKE my official facebook page http://on.fb.me/1qQGO6i
Ray seems like you have Connecticut working for you any counties your working or you have a broad range ?
Watch your thoughts, for they become words.
Watch your words, for they become actions.
Watch your actions, for they become habits.
Watch your habits, for they become character.
Watch your character, for it becomes your destiny.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Our Heart's Desire must be nurtured by our mind,to give birth to common sense, that will enable us to seek out the path less traveled, with the greatest Personal Growth. -J.R.-
You have the right mindset and on the right path. Keep pushing, the more you hear no, just know your getting closer to hearing that yes.
Reynold Orozco
Yes Connecticut is working for me because we have a lot of foreclosures over here and to tell you the truth all my deals are coming from me working my bandit signs. Not too many people are working the strategies that Dean teaches in Connecticut. I plan on investing in other markets and Florida is looking like thats my next market I would start building a team there.
Reynold Orozco
That's great Ray here in New York we have a lot of Reo's I took a tour for Brooklyn, and this tour had a destination in Connecticut I do not remember where and they had one for Pennsylvania when I take another tour I will try to figure out what area they went in Connecticut it was an expensive tour but well worth it for investors
Watch your thoughts, for they become words.
Watch your words, for they become actions.
Watch your actions, for they become habits.
Watch your habits, for they become character.
Watch your character, for it becomes your destiny.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Our Heart's Desire must be nurtured by our mind,to give birth to common sense, that will enable us to seek out the path less traveled, with the greatest Personal Growth. -J.R.-
I want to say thanks to everyone who commented on this post, the DG family is what kept me pushing because of all the success I read every time I came on this site.
Reynold Orozco
Way to hang in there and persevere!
I've nearly landed a couple of L/Os, but not quite. I'm sure I'll have the opportunity eventually.
Your momentum is building and it just gets easier from here!
John
Quitters NEVER win - Winners NEVER quit!
"P.U.S.H. = Persevere Until Something Happens" Dean
“Opportunity is missed by most people because it is dressed in overalls and looks like work.” Thomas A. Edison
Check out my Road to Redemption journal: http://www.deangraziosi.com/real-estate-forums/investing-journals/88171/...
www.windfall-properties.com
Woop Woop!! Awesome .... now do it again!
"Don't tell me I can't, Tell me how I can."
now go get another....and another
whether you think you can or you think you can't, you're right.- Henry Ford
keep moving forward, rob
I love lease options. Haven't had one in a while. Time to get another ! Much success.
To get something you've NEVER HAD
DO something you've NEVER DONE.
Way to go Rey, It's great to hear how another deal happened and thanks for sharing the numbers...Daniel
Dan in Seattle..
congratulations man... way to go..
Way 2 Go Reynold-!!
Ronda Love
Singing Out,
AKA
Romaluv22
I have finally made up my mind to take control of my own Mind and Destiny. I am confident with the Faith in My Higher Power, I will Achieve what I Believe., In His Mighty Name, AMEN!
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Awesome congrats you are gaining momentum now cant wait to see deal #3
Tony
Go faster do more! GFDM!
Right on Ray. Thanks for sharing. BTW, out of the monthly rent, how much is going to the down payment if a purchase happens at the end of the lease -- for you as well as your buyer/renter?
Appreciate your response.
Dan
Super, I do love to hear about these L/O's, will have to do one myself one of these days.
Tony
Go faster do more! GFDM!
Thanks Ray, I have one question how do you know if the deal is good for a lease option.Do I need to have a person in line to lease prior to doing the deal.Any help would be appreciated.
If for some reason or another, the renter buyer backed out of the deal say after 6 months, what happens to the down payment (initial and part of the monthly). Will it be returned since there was no sale. Is it is a non refundable down?
Thanks,
Dan
I really enjoyed reading your post ... Lease options are a very powerful money making tool in real estate.. It's good to see it being utilized and paying off for you ..
I am going to pursue lease options to go along with wholesaling... I have been focusing on wholesaling but am expanding for new avenues to grow my investing business..
Keep us posted of future deals that you complete..
Great read ..
Randy Sherman
Elkton Maryland
Hi Iam looking into doing lease options they certainly create value with less fuss, way to go, Jim
jbischoff
I was side track from real estate but now I'm back full speed ahead educating myself all over again. Hopefully I will posting my first deal soon.
Thanks for the encouragement.
The option fee we require for any tent buyer to put down is non refundable and if the buyer fails to exercise on the option they can get an extension for another option fee or have to leave the property.
Reynold Orozco