Free Corvette With Purchase!!
I used ‘U-Haul’ money to purchase a really great house ‘Subject To’. It was 4bd, 3ba, 3 car garage, 2 fireplaces, tile roof, 1/3 acre lot house and only one year new. I guess the buzzword is it was a ‘Pretty House’.
However as with any house I only give the seller a small sum for their equity, then it is ‘Gorgeous’ to me forget about ‘Pretty’.
The time period was December a few years ago. Those that remember it was very slow for home sales. It was the 15th of the month close to Christmas and I had only bought and sold 4 or 5 properties. The home was advertised for $15K down in the local paper. No calls were coming in; the Grinch was staring me right in the face and laughing. It looked like Santa wasn't coming this year.
I called a friend of mine in the used car business and asked him if he had any "sexy" used cars for a good price. He said he had an ’84’ Corvette in super condition. This was a bad year for Corvettes so it kept the price down, but fit right in to my plans. It was a decent car but not in super condition. You know how those used car salesman are even if they are friends. I purchased the ‘vette’ for $3,400.00.
My new ad read:
$20K down – No Qualifying
4bd, 3ba, 2800sq.ft., 3 car gar.
1 year new, close to shopping ,
etc.
FREE CORVETTE W/Purchase
Call owner 555-1212
You noticed I added $5K to the down payment to cover the cost of the car plus a little extra for Christmas shopping. When the ad broke in the newspaper the phone did not stop ringing, one call after the other.
I sold the home the same day the ad came out and probably could have sold a dozen more, if I had them.
Every house we buy has a personality of its own, much like you and I. This home looked like it was built for a Corvette owner. If the buyer did not own one he would when he bought the home.
There are basic amenities plus copy I place in my ads. However, I use marketing techniques using the personality of the house to match the personality of my potential buyer.
You can get top dollar for the home you have advertised if you use the proper ad copy. Be creative in your marketing efforts. I am not saying to go out and buy a car for every home you sell. But, I am a firm believer that the home sells itself. Just envision who would buy the home, then be creative in your ad so that it fits the person or family reading the ad.
Is it to early to wish everyone at TCI a Merry Christmas and a Happy and prosperous real estate investing New Year. I don’t think so.
John $Cash$ Locke
I was thinking of it in a different light. You made it sound like you arranged the buyer for your property before you even purchased it yourself. I figured you sold it to that person as soon as you bought it. I didn't realize you made that much on the property in that little time.
You gave them 1k in cash for their asking price of 15k? Therefore the 14k becomes your equity.
You sold the house to the new buyer for 20k . Where does the $39k come in?
Sorry to break this down into minutia, but I just don't follow the math.
Beacon,
I purchased the house from the seller for $1K. I gave them this money for their 'equity', it did not matter what they thought their equity was it is what I thought it was worth.
So I sold the house, this was my ad. The real payments were (rounded off) $1.400 my payment to the buyer was $1,600 mo thereby giving me $200 a month cash flow for 24 months until my buyer refinanced. I added $20K above the actual mortgage loan to the price of the property when I sold it figuring the house would appreciate this much in two years.
$14K profit on the down payment to me.
$4.8K profit from monthly payments to me.
$20K profit from the selling price to me.
Around $39K gross profit total to me. Does this help you understand?
John $Cash$ Locke
J,
I'm surprised no one has posted a comment on something that reads .."free corvette."
Frankly, that was the only reason I read the comment.
I was wondering, how long was the title of the house in your name, and what benefits are there for onoly owning the house for such a short time. It seems you made only a very small amount of money for the time invested.
Beacon,
I gave the sellers $1,000 for their equity in the house so I grossed about $14K in a couple of weeks when the house sold, then I added $200 a month above the actual payment, plus added $20K above the actually mortgage balance. My buyer re-financed in two years at which time I took all my profit.
Total gross profit was about $39K, you are probably right when I think about it I should have made more for the time invested, worked out to about $4K an hour for the total time expended in the deal.
John $Cash$ Locke
I was thinking of it in a different light. You made it sound like you arranged the buyer for your property before you even purchased it yourself. I figured you sold it to that person as soon as you bought it. I didn't realize you made that much on the property in that little time.
You gave them 1k in cash for their asking price of 15k? Therefore the 14k becomes your equity.
You sold the house to the new buyer for 20k . Where does the $39k come in?
Sorry to break this down into minutia, but I just don't follow the math.
Absolutely, it's very clear now. Thanks.
Was it held in trust?
Beacon,
Yes use a Land Trust.
$Cash$