If you can what are some sample deals that you have made that have been very profitable? If you can use figures so that some of us can get an idea of what to look for an future deals
You have to remember that real estate is local. I say that because in Texas $50k fixer upper costs $600k in California. So that same house is a deal in one state and a really bad deal in another.
But the house I bought 2 deals ago was a 3 bed 2 ½ bath 2 car garage 2500 sqft house. It has 2 fireplaces a library and a game room with a wet bar. I bought it for $98k and put about $6k into it. My PITI is $1050. I sold it (owner finance) using a trust. He gave me $6,700 up front, he pays me $1500/month and the contracted strike price after 12 months (the amount he will execute to purchase from me) is $160k. I basically got my fix up money back up front (although it was financed money for the fix up) I will be getting $400/month over my PITI and when he converts after 12 months I will get $56,000. Over the next 2 months I will get a total of $68,500. The 12 months takes me out of the ordinary income tax that plagues flips and puts me into long term capital gains treatment. This guy has really nothing wrong with his credit that we can’t fix.
So this deal work out since the buyer had credit issue
That is the whole idea with my owner finance deal. The buyer has credit issues but strong income. I get him in and work on his credit for those 12 months and help him get financing so that I get my money. If he isn’t able to get financing after the term is up I evict him and do it over again.
I bought a 2unit and fixed it up. It needed some minor cosmetics. Total investment is 39k. I rented it within 2 weeks after the rehab was done. Both apartments combined rent for a total of $1190 per month. I am getting offers to buy it around 55k which is the tax assessed value. I can sell it and make 15k profit minus closing costs or I keep it and enjoy the monthly cashflow. I have no money of my own in the deal. Its all relative to the area you live. You may not be able to find deals like this where you live and if you are willing to invest elsewhere then you can find them. If not then you have to see what works for your market.
You sold it to him using a trust? So how do you evict him? What about a UCC foreclosure? Or can you put a clause in the trust for default payment transfering benefical interest back into your name automaticall (that would be nice)
The trust owns the house, the tenant has a consent to occupy and when the tenant does not pay of buy the property the trustee (me) makes a desision to evict the tenant. Eviction takes 4 week versus 6 months for a forclosure.