Re: C. SHEETS - Posted by JasonTX
Posted by JasonTX on December 24, 2000 at 11:02:23:
There are many examples of reasons that sellers will “give” you their properties but I have one that hits close to home.
In 1995, I returned from overseas recently released from the military. I had a 1 year old baby boy and my wife of 4 years.
Well, since there really isn’t a market for a submarine hunter in the civilian world, I had to start over at 7$/hr. My wife, who had not worked while we were overseas, took a crappy job making 7.50$/hr.
We didn’t have bad credit, because we had NO credit history whatsoever. Well, I had bought the CS course earlier in the year. I read through it once and that was it.
We looked at a house on a Sunday, called to place an offer for full asking price of 47K (stupid of us!) on Monday but were told that the property was already under contract.
One month later, we see the same address is having an Open House. We go back to see the property (now empty) and find out that the last buyer backed out at the last minute. The owners tell us that they are making double payments(new home and old home) and they will be fall behind unless they can close very quick.
Finally, I wake up and ask them how much they owe on the house. They tell me 21,500. I told them that I would pay off their note and pay for all of the closing costs. I went to a used car lot and had them give me a 3K loan against my car @22% interst. I used 1,800 to pay for the closing, and the rest is history.
Of course I still had a 3k loan. I had to take a 2nd job to pay it off before the interest killed me. But I also had our first home and 55% built in equity.
I’m sorry this is long, but nobody was giving you any real life examples so I thought I would.
The sellers were thankful, we bought a house we could afford, everyone was happy.
This wasn’t quite a no Money down deal, but I thought it would be better to get that fantastic equity. I could have offered them 26K and asked them to pay for the closing. Then it would have been No Money Down. But I had only read the course once, and I got too excited!
By the way, last March we sold that house for 54K. There was a family in the same situation as we had been. We offered to pay for all closing costs (never be too greedy). Our Loan balance was only 8K, 3k in closing costs, = 43K profit in 4 years. We put that money down on our new home so that we don’t have to pay mortgage insurance.
I’m still a newbie, but I know that creative deals are being done every day, in every decent size city in the country.
P.S. Don’t feel bad, I was just as skeptical as you.
Hope this helps,