There’s a guy (let’s call him Steve) who found a house for sale by owner that seemed like a good deal. The owner (let’s call him Rick) was selling his house for $80,000. Steve felt like the house was worth considerably more; however, he did not want to tie up all of his funds with this one deal--so he executed a lease option with Rick. The basics of the deal were as follows:

• Steve’s IRA gave Rick $10 for the option to buy Rick’s house for $80,000, full price, if he would lease it to Steve’s IRA for a year at $700 a month, about the actual rent value.

I stumbled upon a set of 3 condos the other day. They have been listed for about 45 days and the price has been reduced a little over 100k.

Monthly Rent in is 4500
Expenses are 1400

He said he would carryback 20% which would be about 700 a month and the other mortgage would be 1450 a month

so total expenses would be 3550, positive cashflow of $950

(Thats if I don't talk the price down)

The other 3 similar units like this sold for 550k 2 years ago.

I'd been trying to Email realtors/agents my version of the letter Matt Larson used (DG book)used to find his 'Star' and wasn't getting any results. So I went back to Dean's book on finding sellers, copied the sample ads he had, took his suggestion to Google search for "free classified ads", put thewm on 2 sites & now I have 68 listings over 120 DOM from one realtor & just got an email from another that will send me listings this weekend.

I'm finding that some things in the book don't work in southern California, but the basics in DG's book do!

Jan

I found a house that could be a possible rental b/c of the way the previous owner split up the house. So I could have 2 tenants instead of just one, which is a great bonus. They are listing it way below FMV and it has been on the MLS more than 100 days. The listing says that the buyer needs to get rid of the house FAST! The only catch is the location. It is located in an area that has crime and is an all around not so great neighborhood.