This episode will be about a property that I am currently working on and should be closing on in the next day or 2. The property is a 6 bed/ 3 bath on 5 acres with a pond in Middleton, TN. It was a foreclosure and I purchased it from a mortgage company. The asking price was $64,900 and I got it for $55,500. It is tax assessed at over $138,000 and it needed a little work. Since I now have a relaitionship with the local bank, I asked them to give me a construction loan to buy the house and fix it up. I ended up borrowing $70,000 from the bank to purchase the home. At closing I got a check back for $13,600 after closing costs and such. I spent $2500 for a contractor to fix the vinyl siding and clean up the property. Which left me over $11,100. I had to buy an insurance policy for 6 months which cost about $550 and I had to make 6 monthly mortgage payments of $475.
I have the property sold for $94,900 and should walk away from the table with over $23,000.
__
This is a complete and true no money down deal for me. I have absolutely no money out of my pocket. I would like for you to keep in mind that if I hadn't built up my relationship with the bank, that it probably would not have been possible for me to do the deal using no money down but since I have completed several transactions like this and the bank is familiar with my methods, that they regularly do loans for me like this. After all they are in the business of loaning money and I surely need to borrow some, so as long as you stay in good standings and do what you say you are going to do, then the bank will have no problem loaning you the money!!!
If you would like to learn some of my techniques and strategies, then
Posts
No comments:
Post a Comment