Posts tagged as:
renters
Another Quick “Bad” Market Profit
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!
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Another Success Story
I was excited to hear about a couple of students of mine, Andy and Warren Langsford, and their amazing success. So many investors today are so focused on the bad market, bad lending situation, falling prices and other things that they can’t see the positive opportunities that exist.
The sad reality in life is that we get more of what we focus on. If we focus on negative things, we get more negative in our life. If we focus on positive things, we get more positive results in our life.
Andy, Warren and their team and Venture Real Estate Group in Seattle Washington have chosen to focus on the great things that our market affords us. They have found great success using seller financing principles in property purchases and the powerful “Highest and Best Use” tactics that I so strongly espouse in my best selling book.
The opportunities are out there for those that choose to be successful investors. The market is ripe with eager sellers, great terms, lower construction costs and captive tenants. One of VREG’s investments was purchased with 91% seller financing from the seller for interest only payments for a 3% interest rate. They have a 3 year term with an option for a fourth year. What a smoking deal!
Time for others to follow this fantastic example!
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