gathers no moss so the saying goes. It is my new personal goal to put a house a week into escrow. So far so good! The end always looks so easy to achieve from the starting point. Just closed on another wholesale deal and locked up an REO that we will be dropping into our Equipty Partnership Program. I created a nice tag line for that program: We Find It, You Fund It, We Collect The Rents, Deduct Expenses and Pass The Cash Flow On To You. It's That Easy! I wonder if I can modify the Staples' "That was easy!" botton to use as a marketing piece?
After my last post I realize how much work I have ahead. I am also thinking "if things are this good now, it is going to be awesome finding properties once interest rates start to rise". A nice long drawn out down cycle will be really great too! It certainly would put an end to the objection "I am going to wait for the market to turn around". Once the idea of owning investment real estate puts a scowl on the faces of the general public, as I have heard happened in the past, things will get even easier. Of course, past performance doesn't necessarily predict future results. I have heard from the investors who worked through the last down cycle that they generally cannot believe the government intervention happening today.
We currently have one property being rehabbed, one almost ready for it's first tenant, five houses and one piece of land in escrow. Four of the houses are already assigned to wholesale buyers. We're keeping the land and, as I mentioned above, dropping the other house into the EPP.
I am working a deal that is kind of interesting and affords an opportunity to practice creative finance strategies. The seller has a condo worth $135,000. She wants $140,000 with $30,000 down. She will carry the $110,000 at 4.5%, 30 years. The condo is currently rented below market for $1,000. Market rent is about $1,400. She needs the $30K because her roof is leaking on her primary residence and she has a lot of water damage down the walls and under the mohagany floor. She is liquidating this asset to repair her primary residence. She tried to sell the property to the tenants, but she said they coundn't come up with the down payment.
I know what I want to do. If you have an idea, email it to me and we are going to give away a few Happy Hour calls to the most feasible and creative idea. Maybe we will post them and let you vote on them?