Or – The House That Nobody Else Wanted Tweet
Here’s the story. I wanted to get into real estate. I had been studying and learning about real estate investing for several years. my wife and I had purchased a triplex in out area – South Florida but had paid way too much for it. Bought it at the top of the market. Now I was looking for another investment that might actually cash flow. I had made a contact with a lady in North Carolina that bought problem properties at rock bottom prices from sellers that could not sell them to anyone else. She had a list of hungry for an actual deal that made sense buyers and I was on her list. I made contact with her when I called about one of her other wholesale deals but that house was already long gone by the time I heard about it. She apologized for that and quizzed me about what I was looking for. I knew that she specialized in finding houses that needed a little or a lot of work but would cash flow when rented out. This was in 2008, when everyone was looking for a “profitable deal” but hardly ever finding one. I was looking for a “just paint and carpet” type deal that would cash flow with conventional financing in place. I know – that seemed like a hard thing to find, but she told me that she finds them fairly regularly. She took my number and promised to call me when she found another one that did not need too much work. A month or six weeks later she called and said she had just what I said I was looking for. It was a 2 bedroom 1 bath house for $27,000 and needed about $3,000 to $4,000 of mostly just paint and carpet. Here’s a picture of the property that i was seeing of what she was offering.
It was bank owned property that had been partly to mostly rehabbed by another investor. If you want to see what the inside looked like, I have before and after shots in the video, as well as more of the story.. She said she thought this was as close to what I had asked her for. Wow! I thought – now it’s decision time. She wanted to sell for all cash and close quickly. I wanted to buy with conventional financing with as little down as possible. She let me know that the banks would probably not finance until after it had the rehab completed. My win-win suggestion was that she complete the repairs and add the $3,00 to $4,000 to the price. She agreed to do it all if we made it $4,000. That would make the conventional financing work. We had a deal. Mind you, I had never seen this property before we agreed to buy it – just the pictures I show in the video. And I had spoken to this woman before, but never actually met her in person, but when I first talked to her she was working for Larry Goins and was using what she had learned while working for him to find this house when she went on her own. Her long term work for Larry Goins told me I was probably in excellent hands.
This was exactly the type of property Larry’s Filthy Riches program teaches about. A little dirty, needing a little work, but someone could have moved into that property in the condition they offered it.We have owned it as a rental property for six years now. The property paid us back our out of pocket down payment and closing costs completely in 4 and a half years. I have done the “cash on cash” return on out investment and this house has provided us with an average 31 per cent cash on cash return each year. That’s what most people would call a “lucrative” investment. The property will be completely debt free in 9 more years.
Here’s the video with more of the pictures and the story:
So does Larry’s Filthy Riches program work? I know it does, because we bought one of those houses from someone using his system. And it has done extremely well for us.
Would you like to know the details of how these properties can be found and profitably marketed to individual s as homes or as investments? Larry is doing a webinar to give you the details of how you can can make it work for you just like it worked for the lady that found it and sold it to us. Here’s the link to register for the webinar: http://www.larrygoins.com/kurt
Join us for the webinar, and if you have a question or comment leave a comment or use the voice mail button to the right. Tweet