Read at your own risk … - Posted by Merle E Woolley
Posted by Merle E Woolley on June 18, 2001 at 18:10:07:
Not sure if you will learn anything from this ? but at least you might find it interesting.
The story actually begins several years ago. Can?t say exactly when as those records are in storage. We had six houses on hand and didn?t seem to be getting any calls at all.
One of the houses was on one of the busiest streets in town. We were wanting $2,000 down on each house, but reaching the point of ?must get someone in them.?
We bought a sheet of plywood and painted it with the brightest yellow paint we could find. Using black paint, we painted something like ?$500 Down, By Owner and our phone number.? We mounted the sign on the fence facing this busy street.
The phone literally rang and rang and rang. We had contracts on all six houses by the end of the 2nd day. (to clarify, these were L/O?s)
One of our buyers, a truck driver, called 5 years later to tell us he was paying us off and buying another house. He was making about $8,000 profit which would get him into the next house. We congratulated him and waited for the closing date.
Two days before closing, he called again. Turned down for his loan. Would we buy the house and do our contract with him? Discussed and agreed to the terms. He told his Realtor to go ahead with everything.
During the conversation with him, we learned that this was a ?4-sales? closing. His buyer was selling their house (#1) and buying his(#2). He was buying #3 and the people selling to him were moving to Georgia(#4).
Two hours before closing, the buyers of #1 were turned down on their loan. Mass panic set in. Phones were hot, people getting mad.
Our truck driver called to let us know about the problem.
We knew a possible answer. We went to look at house #1 ? would work for us. Called the seller, explained our formula for buying houses. Would it work for them?
We bought houses #1 and #3 in the chain.
Our truck driver called in July 1998. He is retiring for medical reasons, Has a friend to take over his contract (we let them do that). He needs a smaller, less expensive house ? which we didn?t have.
He moves, new buyer moves in. He found a house which we could buy for him in early 1999 and is still there. (That transaction led to our meeting a Realtor who specializes in HUD foreclosures and we have bought several of those thru him.)
Completely unrelated to all that is another story. We assumed an FHA loan on a house. Took a nice pickup truck for a down and our buyer assumed the loan. She later lost it in foreclosure. We bought it on the courthouse steps.
Sold it again. Our buyer got a loan, we carried a second(don?t often do that).
This buyer sold and paid us off. They moved to Florida and bought a house. Nine months later decided they were coming back to Missouri. The have been calling for several months waiting for us to buy the ?right? house.
Last week, the folks who took over the contract from our truck driver called to let us know they had bought another house and wondered if we wanted the house back or should they list with a Realtor.
I called the people who moved back from Florida and sent them by the house. Perfect for them!!
So, we ?bought? the house (using our standard purchase formula) and sold (L/O) to these people at market value. By the way, we have been the legal titleholder all along. Our purchase was really a formality. We simply bought their equity in their option to purchase.
Hope there is something educational for you in all this ? not sure what it would be ? but, it seemed like such an unusual sequence of events.
Have a GREAT day ? TODAY!
P. S. If the doctor would tell me my knee is OK for golf, I wouldn’t have time to write of this foolishness.