Posted by John Sterling on December 19, 2003 at 15:07:33:
Roughly the details are the home was in tax foreclosure and vacant, the seller’s actual residence was also in tax foreclosure.
I signed the deal with 4 business days before the tax auction, strange part, seller’s mother unknown to the seller makes the back taxes up on both homes 2 days before the auction date!! Seller lives up to the agreement and continues the sale as we had agreed upon in the P&S.
Actual P&S took a grand total of 10 business days, (I must be getting sloppy, my first deal took 8 days)
Terms purchase price $65K…assessed value $143K…repaired market value $165+. repairs needed say roughly $15K.
Terms of purchase. Seller to pay all costs including loan fees, escrow title, etc etc. Cash from buyer, (that’s me!) $100 earnest money. $85 upfront lender fee! and $250 Lender legal review fee. Or out of pocket $435. Cash to Buyer at closing $180 something??
My net cost to purchase was roughly $255?? contractors will be biding repairs tomorrow morning at 8:00 am. I may re-fi and rent out this nice home in Des Moines, upside is so good. A second story addition to the home would possibly have a view of the Sound. The home is rather small 920sq ft 3bd 1bath, high quality hardwood floors, FP and will rent all day long for $975. Maybe I will L/O?
Future plans:
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Develop a strong relationship with this hard money broker. I may actually have more interest in the future for buying bad-1st-position-notes in my market place or La La land (Seattle-Tacoma Area, where if you have equity they will come to your door or auction and over-pay land!)
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I really should finish reading “Flipping Properties” by William Bronchick. This is a very good book and actually the only real estate book I have! ( I am not kidding )
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In the new year I plan on Eating Joe Kaiser’s lunch, that’s right I will have Pierce County once and for all! Every foreclosure with equity in Pierce county will have a 1st lien that I purchased on it, with copywrite too! Just kidding and having fun Joe!
Happy Holidays every one, This site is the best!
John