OfflineHi DG family. I wanted to share my latest deal that's in progress; should be closed by the first week in August. I was not allowed to assign this deal, so it makes for a lot of paperwork as I'm simply doing a quick flip on it, but I have to cover my ASSets. 
(Yeah, me, you know, I love to take on new adventures and try different things out. 
)
I'm buying this property in IN for $26,000 (26,775 out the door after closing fees and such). The property needs about $10-15K in work. I'm immediately selling it to the end buyer, but with a twist.
My self directed IRA is purchasing the property. I'm in the process of having the appraisal completed, but the ARV is approximately $85K.
As for repairs, there is no functioning bathroom in the house. All the fixtures have been removed; sinks and commodes gone; everything gone from shower, water heater's gone, but they left the kitchen and cabinets in tact and the house is in good shape otherwise. And, all the plumbing and electrical is run. So, repairs are about $10K.
My end buyer is going to be living in the property and he is a general contractor. He will pay $1500 upfront and repair the property getting proper permits and such, and then $1000 a month for 40 months; at which time I will deed the property over to him.
In the end, what I'm doing is seller financing it to the end buyer; in a way that IN law will allow, but I'm still talking with several people about IN laws and will most likely end up doing a lease option on the other side, but calculate it out with the amount of principal going towards the option each month. My main concern with doing the l/o is the insurance, as usually an out of state owner will pay much more in insurance, so I want to work out a way for the tenant buyer to carry the insurance in his name, but I escrow the payments into the monthly payment and I'm on the insurance as a loss payee. (Not sure how I'm going to do that yet!)
I'm selling it to the end buyer at $31K as is, but will make another 8K in seller financing, so my total profit in this deal will be almost $12K for a couple hours of busy paperwork and lots of phone calling. Not too shabby!
And, worst case, if the buyer should walk away after all is said and done, provisions in the contract make it so he has to surrender it in good condition with all repairs, and I'd pay him $700 to move for leaving the property in tact without removing any items.
Oh, and in the meantime, while I'm trying to refinance my deal # 5 property, I have $1000 more per month in income coming in. I'm GOING to get that house refinanced because of this deal!
It is CERTAIN I will SUCCEED!
Edited to add pics
Its all completely done on both sides now.
The TB is getting an alarm installed this week. 
I gave them until October to make their first payment. 
Like others have said, I learn so much just reading your posts. Tammy, I think you should be required reading for newbies! LOL
Just wanted to tell you the part I liked best about this one, was hiring your own company to manage the property. Woooohoooo, LOVE IT!
When I'm getting discouraged I can always come read your posts and journal and it reminds me that yes, I can do this - anyone can do this!
-KC
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BARM
YTYREP
PFRERN
TF
The turn of events that occur in the course of today can be enough to to put you in a perfect position to greatly improve the events of tomorrow.
WOW!!!!!!! Watch out for the guys in the long white coats because that was CRAZY!!! But the insane part was it worked!! Hats off to you Tammy!!! YOU GO! LOL
Glassrealestateinvesting.com
Yes, I keep a keen eye out for them with the eyes on the back of my head I have grown due to having 4 kids!
Karen, thank you for the encouragement. I have to focus on the deals that do work and go through, because they all don't as you probably saw about reading my deal #10. But, it was a great learning experience, whether the deal goes through or not. This one was sweet. I actually ended up giving them a 4 year term because they wanted to stay at $1000/month. And, the end buyers paid for all the fees and closing costs, title reports, as well as closing on the other side when I can deed over the property to them and removing the 2 other court liens.
Loved this deal, by far the easiest one I've done yet!
Congratulations on a job WELL done!
You have to be commended for what you accomplish with your kids "in tow"...don't know how you do it. I help my wife keep a 2 year old and it is VERY distracting!
Thanks for sharing and showing us all how to "think a little different". You apparently don't know the meaning of the word "no" and inspire us to no end!! Oops! Guess I used a double negative there!lol
If I had an IRA, I would definitely put it to use! Maybe one day...
Keep 'em comin'!!
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
Well, I unburied this deal from page 24.
Because it is ALIVE again.
So, we had the land next door under contract all set to close this month. The 2 brothers got in a huge fight because the one brother has been paying the taxes on the property for over 15 years and wanted to be reimburse and the other brother just wouldn't have it.
The guy who had the house foreclosed on that previously owned the home I bought, the same one who maliciously destroyed everything in the property, and his brother were the owners of the acre next door. Because of the fight, the deal didn't close and they are going to hold onto that lot. The person who foreclosed on the house I bought also has ANOTHER house on the other side of that lot (that is up for foreclosure auction this month). But, this guy is a WACK JOB, and he has been doing everything in his power to bother my occupants because of the whole land ordeal not going through and he's just mad he didn't get his $5K. The shared pond in the back, attached to both the 2 lots I got in the foreclosure sale, is also shared with this one lot. And this ex-owner is doing whatever in his power to make it uncomfortable for them to live there.
Sorry, it was a long story, but the owner occupant wants to sell the property. They have it almost completely fixed up and it is now worth $90K, so we are going to become partners and sell it, both of us making a profit. He did ALL the fixing up with his own skills and money for materials. We're going to sell it, and he has found another house to buy in the same city, and will let me carry the note for him again with the same terms.
So, We're going to aim to sell the property for $76K, I'm going to give him back the money and time he put into the property already plus a profit. He put in about $8K of materials and about $10K of time, so we'll make a $30K profit (due to taxes,holding and closing costs). THEN, he will use his share of the profit and some of the cost of fixup to pay as the downpayment for the Lease Purchase we do on the next property. Smiling He doesn't even care if he makes anything. Shocked But, because of who I am, I will share the profit with him.
I LOVE REAL ESTATE!!!