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Friday, March 13, 2009

Good Deal, Bad Timing

I am sitting in SLC airport. I missed my flight. I was stuck in inspection and then I decided to waste time getting a Starbucks. I don’t know why I did that. I could be on a plane sleeping, but instead I am sitting in an airport very tired. I will use this time to my advantage and get my credit card statements entered into Quick Books.

I had a great trip here. I am in escrow on a 4 unit building. It has a garage that is rented out @ $165 a month as well. The units are currently rented at $300-$395 each. I believe they should be about $600 each and will immediately implement my beliefs on the wills of the existing tenants. Based on my projections I should be able to get about $1000 a month cash flow out of this bldg. I am very excited about this. I purchased the property for $162,000 with 10% down. Seller to carry back financing at 6.5% amortized over 30 years due in 10. I have the option of extending for another 5 years if I pay 10% of remaining principal balance which is to be applied to principal balance. Essentially, I get 90% LTV for 10 years and 80% LTV for the last 5. I think this may be the best deal I have ever done as far as negotiating a purchase for long term hold.

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