Nobody wanted this deal, I tried to get 170K for it.
My seller is walking away from this property, She’s a tired landlord, inherited property from her late husband, She’s down in San Marino Ca, she’s elderly and can not manage property.
Imagine this, 3 Income properties on one lot, currently bringing in $1,850 in rents each month and they are all rented way below fair market rents. The mortgage payment is $1,200 and that includes taxes and Insurance PITI. Principle, Interest, taxes and insurance.These units are already producing a $650 cash flow. Spend a few hundred to paint the exterior and trim maybe some landscaping, and bring those rent payments closer where they cud be.
It’s difficult to find comps, but I estimate this property is worth 180K-200K The mortgage balance is approx. 150K
OK here’s the deal, I need a 20K down payment and you own this 3 unit cash cow by just taking over the mortgage subject to the existing loan. Mortgage payments current, property taxes current. 2 units rented for 600 each and one for $675
This is a sweet deal, a house and Duplex on one lot with Cash Flow. All in great shape and rented.
Address is 436 & 438 Elm St and 905 Park St . Corner Lot.
It appears to have once been a store front and converted into a single fam home. The duplex and house are well cared for and may not need any work or very little.
Hurry before I decide to keep them for myself.
Holy son of an Infadel, I am too excited to take my nap, put it on Craig’s List, then sent it out to 20 buyers on my list and 20 minutes later I got 2 calls both wanting it. Its too early to count my chickens but I’m really frikin excited.
I tried to sell this for a week traditionally and got nobody.
Then suddenly using my subconscious, it kicked in and this flash came to me, and I wondered if my seller just wanted to get rid of it, maybe I cud sell it “sub to” the existing loan. My seller was disapointed when told I cant buy it.
But seemed to perk up when I explained I cud take it off her hands by taking over her debt and giving her a few thou.
The seller is elderly, no email, she has to go to the corner copy store to get faxes and send, I just mailed her the contract and quit claim deed this morning. I included instructions to get it notarized and sent back to me and I wud send her $2,000
I’ve had crazier deals come together.
My buyer Hector wants it, my buyer John wants it, both buyers are legit and have purchased my deals befor.
I got 5 Investors fighting over this deal now. It’s amazing how I can turn a non deal into a smoking hot deal with the financing in place. Now waiting for the seller to sign and send back the contract, she may want more than $2,000, I can bump it up some to get this deal sealed.
What cud go wrong? Haha, everything, I’m not holding my breath, but it cud happen. My buddy Rich who found it wants 4K and that will take care of the $1,200 for his bird dog.
My buddy Rich is a big lovable guy, but has the worst attitude. I explained that in 5 yrs we wud have made $35,000 from the cash flow alone, and that is not considering the rent increases and the equity, in 5 yrs cud be 100K, he wants his 4K now and I can’t convince him how this is not a liability but an asset. But he says nobody wanted this deal and I dont want my name on anything and the headaches, I tried to explain that ther is no risk, the loan stays in the sellers deceased husbands name and we cud walk away at any time. What can u do when your real estate buddy is dumber than dirt? leave him in the dust.
When I first started real estate I had a Phil Grove course, cost $997, this guru claimed to have done over 400 sub to deals in Texas. I actually did 4 deals back then and made a heck of a lot more money than what the course cost.
But then I stumbled into wholesaling which was easier because deals were more abundant.
But I luv Sub To deals and am always looking for them.
I just did another Sub To deal last week and made a $30,000 profit, sounds good I know, but I only made 10K and owner got 20K
My seller is a 75 year old woman, she expressed interest in doing the sub to deal so I sent her the contract, then she calls yesterday saying she wanted to sell to someone with a new loan to get her name off of it. Who can blame her for that?
These sub to deals are for distressed sellers, and it seems she aint distressed enuf.
She tells me that a realtor had this property listed 3 yrs ago and cudnt sell it, but now this same realtor convinced her she can sell this property for 199K
My partner threw in the towel and called her and cancelled the contract, it was for 160K, I asked him why he cancelled cuz we only had the deal for a few weeks. Because u told me you cudnt sell it for 160 and nobody wanted it. I told him I wasn’t used to giving up so early and easily & quickly cuz otherwise I wud be back to doing construction, he’s a contractor and didnt reply.
I might not hav been able to sell it but hell, many of the properties I’ve sold took extra time cuz they were a mediocre deal.
But my plan was to start marketing to the larger cities.
I cud try to get another contract to her and lie like the realtors do. Promise the world and then after price drops and wasted time, it may sell.
Issue: I thought the loan wasn’t in the name of the woman? If not, what’s she care if the loan stays in her rotting husband’s name, or not?
Issue: Deals like this need to be presented in person, qualified in person, and closed in person.
Otherwise…
Issue: Sellers will shop your offer, second-guess their decisions, wriggle out of the agreement, and/or seek Uncle Henry’s advice, who’s into real estate.
Issue: 75-year old seller is a liar.
Issue: 75-year old seller is in denial.
Issue: 75-year old seller’s agent is promising her the moon, in return for a listing.
Issue: The seventy-odd-year old seller isn’t gonna sell the property through an agent, because the property needs everything, and she’s actually upside down.
Issue: Old lady’s only exit strategy is to fork up $30,000 in cleanup/repairs/upgrades and physically deal with her hell hole. Won’t happen.
Issue: Have to maintain contact with this lying old biddy, until she decides that getting a couple thousand from you is better than paying out the nose to ‘get her dead husband’s name off the loan.’
Haha, It gets worse, I thought it was in the late husbands name. My buddy Rich that found it txted the old crow and cancelled the contract cuz the sub to deal fell thru. I told him to give me a week or 2 cuz I can sell this. He tells me that I can get it back on contract if I want to. The seller told me she cudnt do the sub to, but she wud take 5K over wats owed at 155K, OK.
I sent it to my old buyers that live nearby and they want it.
I contact Delores our sweet little seller, and tell her I will take it, I had it sold for 165K
I tell her, I will do the 155, all cash, new loan and pay all closing, she says Oh Thank you. I txted back that I will need her to sign the new purchase agreement.
Then this old war horse from hell tells me. Oh Sorry I had just woke up, it was 10 AM, and Because of all the money I spent I’m going to be asking a lot more now.
I txted Rich the finder and told him that he gave up too soon and did a disservice to me to him and his bird dog and he shud stay doing construction, I’m just a little agitated. Every time we try to work together its a big cluster fruk. He’s a big loveable guy, but dumber than dirt.
Then my buddy Larry had come over a few days ago, I had been doing yard work. He came in and talked non stop for almost 4 hrs, the first 2 hrs wasn’t too bad, but the next 2 hrs was horribly painful, finally I tell him, Larry I’m gonna take a shower and I got some offers to make on properties and I got get to it, then it took another 20 minutes and finally I got up and walked out the front door and he followed, I hurridly said OK larry see u later. Lock the door.
So this morning I’m thinking I don’t want to go thru that again or not in this life. I txt Larry, Larry, I’m reading books on self improvement, I’m doing hypnosis and binaural beats and affirmations and making offers on houses. I got a lot of crap going on and I cant be doing the 4 hour visits anymore. I don’t want to be rude, but I got to much stuff I gotta do, luv ya man… Rando
Then he txts me back, Ok do what u gotta do, sorry you don’t like successful black people.
Jesus Frikin Crimany, why does everything have to be a racial thing with them?
So now this sort of disrupted my Universeal vibrations, I’m gonna smoke a big one and chill out.
This morning my partner Rich calls, he claims he can get this deal back in play. I tell him no way, that once a seller talks to a realtor and gives them false hope of cashing in, it’s over. He says, you dont understand, this lady luvs me and I think I can reason with her.
I say OK give it a shot. I’m impressed that Rich is trying and feeling bad cuz I was losing it and coming off the handle.
But seriously, I dont think he can ever get this old biddy to take 5-6 Grand over wats owed, she is much more likely to take door number 2 w the realtors outrageous high projections.
When the seller told me a corner of the house was sinking and asked if I cud just cash her out, I said no, the house needs foundation work and it wont appraise well.
She says Oh my, I’m gonna pray and get back to you later. So now Rich is waiting for Delores to get home from church b4 he calls and tries to talk some sense into the old crow. I mean, sweet old lady
I had warned Rich a week or 2 ago when he told me she was a sweet old lady, that these sweet old ladies can turn on you like a rabid dog. He laughed but I was serious.
My buddy Rich said he talked to the seller for a 1/2 hour yesterday, he told her we cud do 167K
She tells Rich that she has to pray and consider it more and will let him know by Wednesday
I told Rich that if you think she’s going to take 167 over the 199 the realtor promised her, then I got a bridge I’ll sell ya…