I just got word from one of my students that they have made another incredible profit in a “bad” market. This student from Southern California , Ryan Rude and his team, used a program I teach call the “Equity Builder” Program to find some great tenants to put in houses they are working on. This program specializes in turning tenants into buyers.
Ryan used this program to locate some tenants that could qualify for a home right now and didn’t know it. The sale helped a Grandmother, Mother and Granddaughter to purchase a home after many years of renting. Ryan simply located a house that would have a lower monthly payment than these ladies were already paying for rent and sold it to them.
Ryan and his team located a distressed 3 bedroom 2 bath home they bought for $167,000. They put $30,000 in the rehab and then sold the property to these women for $290,000. Their mortgage payment on a fixed 30-year mortgage was lower by over $100 per month than their rent! They were so grateful and excited.
One difficulty they had in obtaining the mortgage was the debt service caused by about $12,000 in personal debt. Ryan had enough profit in the deal to pay for his work, pay his investors, pay off these ladies’ $12,000 in personal debt so that they qualifed and still made $55,000! From the time Ryan closed on the purchase of his investment to the time he sold it was a total of 90 short days. $55,000 in 90 days!
Ryan has learned some valuable lessons about investing in today’s market. The first one is housing that offers lower fixed mortgage payments than rents always sells in any market. The second lesson is that there are a lot of way to help people get mortgages that others aren’t aware of. One of my favorites is seller financing.
Anyone that thinks that this is a bad market just has a bad attitude! Keep up the good work team. You can do it!
{ 2 comments… read them below or add one }
That’s a great success story. Did Ryan pay the debt prior to closing to help with the debt ratio? Or was it paid through escrow?
Ryan you are such an inspiration and a great example to us all!
Thanks for the success sharing Mike and Ryan!
Jared