My favorite real estate Curmudgeon and Alter Cocker Johnny t. reed is in the NYT this Sunday along with Carlton Sheets. Birds of a feather.......................
Saturday, April 18, 2009
Wednesday, April 01, 2009
One of my mentoring students called me last night about a home in his neighborhood near the beaches in San Diego. We arranged an appointment early this morning (yuch) with the son of the owner who had power of attorney. It was a rent to own for 18 months. The price was good but the terms were great. Owner would carry the entire mortgage after 6 months rental at 5%mortgage for interest only for 5 years. This was a great deal for any tenant/buyer who wanted to get into a home without a bank or 30% down or for an investor who wanted control of a premium beach home.
The home was in pristine condition and the seller was hot to do something today before he left California for a business trip. I love showboat properties and this one fit the Claude Diamond bill.
We used my new copyrighted Lease Purchase agreements and had them witnessed and notorized for verification . In addition a copy of the power of attorney was attached.
I started working the phones calling from my database of investors. I wanted between 30K to 50K for this deal. I just wanted to sell the contract in what we call an arbitrage assignment.
*That is where we find and negotiate the deal*
*Place it in a specialized contract*
*Arbitrage or sell the agreement to another buyer in a short time frame*
My assistant and I made about 40 phone calls and a few were interested and wanted to fly out tomorrow but I wanted to sell this gem today.
Finally a regular investor from Nevada bought the deal for $34,500.00 this afternoon . Now that’s Arbitrage Lease Purchase Investing.
Oh Yes, the student that provided the deal received 25% of the net profits; not bad for referring a lead.