Closed last Wednesday on a triplex for $117,000. Appraisal was $214,000. Good way to start 2008. Have 2 other sellers each selling multi units but I can’t seem to make up my mind which deal to pursue. Hopefully close one of those by end of february.
Sure, this wasn’t that complex of a deal at all though so I hope not to induce you into boardom. The property was listed for $163,000. I offered $113k I think they replied with $117k, I accepted. Once someone has come down that much on their sticker price I don’t see the need to nickel and dime them and upset a seller to the point they don’t want to do business with me. After the deal was papered I found out an appraisal had been done recently when they decided to list the property. Now why they listed it for $163,000 knowing that it had just appraised for $214,000 is beyond me, but hey. So basically I went to the bank and told them I wanted 70% of the $214k, which was right at $151k. I wanted the approx $30k (151k - 117k) to make upgrades to the property and to just put cash in my pocket. They said they would do it if I would offer a lien against a $30k CD I had in the bank. The lien is for 6 months until my upgrades are complete and then it will be released. Didn’t matter to me because this is a 9 month CD, can’t touch it anyways. I was in a hurry because another lender 4 days before closing went out of business and was not honoring their loans in the pipeline. Went to my local bank and told them I needed to close in less than 2 weeks. It was done in 10 days. I hope I have put noone to sleep with my vanilla deal. :sleep
Will be closing on a 6 unit mixed use for 22K. Will close on one of my rehabs by month’s end. First deal I hd been pursuing a year but it paid of. The just completed appraisal was 208K, how’s that for a discount? Second deal I closed Spet 18th for $17,500 and have it contracted for 87K. Project home so I do have about 65K in it with carrying costs but I should still walk away with about 12K. Have 1 on the market and 2 more to hit the market within two weeks so my activity has been very good.
Market is slow in San Antonio, but not as impacted as the rest of the country. I sell on owner financing, so the tax return provides my buyers with money down.
Here how it ended up working out:
I got back a house, had to foreclose on a buyer - had to do some fix up work and re-sold it. I had to workout down payment installment plan $500/month for 10 months plus the regular PITI. This puts $900/month in my pocket based on the selling terms, but the rehab did cost me upfront cost. So will take me 5 months to recover my costs. Sold it that way because I had 3 other houses
I got back a second house on foreclose as well, sold it right away to a contractor I work with with $1k down, $2k in labor on another house, and he fixes up the house in case I get it back within six months. I make about $150/month cash flow on it
Sold a 3 year old house that needed no repairs at $4k down, no monthly cash flow but will make about $6k to $7k when they refinance. This was a bad purchase, I was testing the idea and had to get rid of it.
Currently rehabing my last house. I need to remodel the bathrooms and kitchen and change the flooring, should be on the market in a month or so. this is a home run for me that will give me enough cash flow to buy 2+ houses once it sells.
sold a house 6 months ago w/balance on down payment due when they get their tax return which they just got.
Moving forward, my buying criteria will more tighter where I want to see better discounts.
Well lets see, so far I have three deals (all rehabs) right now. I purchased one in Oct. 07, one in Nov. 07 and picked one up sub2 in Nov. 07.
The first one I bought for $54,500, put 24k into it and it’s listed right now (two weeks so far) for $152,500. I believe I’m getting an offer tomorrow, if all goes well.
The second one I bought for $61,900 and I’m currently rehabbing it right now and I ALREADY have it under contract and sold for 140k. I have put about 15k in it so far, I will be finished next week.
The third one I picked up sub2, the payoff is 47k, I have to give the seller 5k when I close with my buyer. Carpeting is going in tomorrow and I’ll list it for around 85-87k. I have only put about 5k in this one.
This year is going to rock for me, I’m busy as busy can get. I love this business.
There’s my success story so FAR for 2008. :biggrin
This may not be what you’re expecting, but I have recently been working on my taxes. This is the first year that I will be filing from a business perspective. The current estimation is that I will be paying $0 in taxes and getting a refund check somewhere around $10,000. Not bad for about 2 months of reading the irs.gov website. People always complain about having to pay tax accountants large sums for doing their taxes, but from what I’ve been thru recently, I can say that they earn their pay.
Unfortunately, my real-estate investing has dropped to nil, so I’ll have to ramp it back up again sometime around late March.
You now need to figure out how not to overpay $10K in taxes…that’s over $800 a month that you should have working for you instead of making a tax free loan to “Uncle Sugar” to dole out on useless programs…
I must admit, I too lend uncle sam, but I sometimes feel much better lending him rather than him coming asking for money I may not have. Managing the financial aspect of investing is still work in progress for me.
The first deal that I picked up in 2008 was a home for $12,000 and I put around $2,000 in then sold for $30,000. Not a bad way to start the year for about 3 hours of work, in a really, really bad market.