Comments on: Increase Cash Flow on Probate Real Estate Investments

By: Ian Jones

Ian Jones — Fri, 01 Jul 2011 14:36:51 +0000

Jean, I have to agree with your comment ‘we must learn how to invest’. Considering the current instability of the economy, when there is potential for a deal such as this, it should be made with no hesitation. As long as the cost of maintenance is not too great, investment in property gives the owner the option of selling or letting; a decision which can be made in accordance with market fluctuations. How many other investments yield such scope for flexibility and healthy profit?
Cheers, Ian

By: Augie

Augie — Thu, 30 Jun 2011 22:47:18 +0000

I certainly understand your question and it is a fair one. The bottom line is motivation. He saw the investor/buyer as the solution to his biggest headache, a vacant house he’d been trying to sell without success. The seller felt relief in being rid of the responsibility for a property he neither wanted or wanted to care for until sold. For him it was the release of a stressor in his life. We can’t speak for what goes on in the mind of another person. To him, having his problem solved was far more valuable than the price he got for the property.

By: Sue Ellen

Sue Ellen — Wed, 15 Jun 2011 23:36:50 +0000

I don’t get it. Why would someone sell a house worth $250k for $200, & then agree to finance it with no payments for 90 days?

Either he was well off already & was just giving her a break, or there was some other part of the deal that hasn’t been mentioned .

~ Sue Ellen

By: Jason M

Jason M — Tue, 14 Jun 2011 17:52:40 +0000

What a nice story. Good for that student. And Auggie is very right when he says “Sometimes having your problem solved is worth more than money”. Very true my friend

By: Augie

Augie — Wed, 08 Jun 2011 19:12:05 +0000

Many brokers would have been happy to list it but getting it sold for what the seller was asking but his concern was getting it sold. I think he had it listed previously with no results. His primary concern was eliminating his need to deal with the property any longer. He’s been collecting payments for a few years already and so if he took the property back, he’d have another bite at the apple but since the buyer is earning significant equity every month there is a real incentive not to miss any payments.

As for the quick hit versus the installment sale, I think he saw greater personal benefit to a long term income stream rather than his adult children hitting him up for a loan on his windfall had he cashed out. Thanks for a well though out comment!\\To your success…

Augie

By: Brett Twente

Brett Twente — Wed, 08 Jun 2011 18:23:17 +0000

Assuming a rise in the property value and assuming qualification for a 40 year fixed loan it looks like a good transaction. As with anything finding the property for sale was the key component to the transaction. I’m very surprised he did not take the property to market where he could have received a potential one time pop (as opposed to accepting terms on a seller financing). Many brokers would have happily taken care of the listing and paperwork and negotiated a sale. Furthermore, if there is any difficulty in receiving payment from the buyer in the future it will have cost him more than a headache.

By: Augie

Augie — Mon, 11 Apr 2011 01:35:39 +0000

Many times an investor can solve problems for heirs who either don’t want to manage an out of state property or deal with issues like property taxes and insurance on a vacant property. Thanks for your response.

By: Washington DC Lawyer

Washington DC Lawyer — Tue, 22 Mar 2011 18:29:09 +0000

Generally, heirs and legatees (those who are not related to the deceased, but “take” under the Will) are more than happy to unload estate property at below market rate.

However, what is “below market rate” may actually be a fair price given today’s economy.

Great write-up, thanks for sharing!

By: Augie

Augie — Tue, 08 Mar 2011 15:03:19 +0000

I think the key is to understand you personal risk threshold. Additionally, managing the monthly payment below market rent and expenses prior t acquisition or purchasing properties for resale with adequate margin should lower the risk significantly.

By: Connie Lee

Connie Lee — Thu, 17 Feb 2011 06:42:51 +0000

High risk investment will always provide the potential for high returns. However, the strategy although sound, will leave the investor open to significant failure in the first few years. Bankers will always advise that in order to weather changes, a reasonable equity is necessary.

By: Augie

Augie — Tue, 18 Jan 2011 14:53:09 +0000

There are many ways to get into real estate with little or no money for those willing to take the time to learn the correct methods and techniques. You could partner with another investor and provide your time and talent in exchange for part of a deal. You could learn to put good deals under contract and then sell your contracts to other parties who have cash. You could even lease a house with the right to sub-lease and thereby earn a spread. These are but a few of the many ways to get started without a lot of capital. It doesn’t take money to make money, it takes Intellectual Capital.

By: Augie

Augie — Thu, 13 Jan 2011 23:38:15 +0000

Sometimes having your problem solved is worth more than money. That was the case in this transaction. Different people have different needs and wants, the key is in learning them and dealing with them effectively. The buyer took the time to learn different ways to buy property, solve problems and thereby she created a win/win situation. Everyone’s needs were met.

Thanks for your post.

Augie

By: Augie

Augie — Thu, 13 Jan 2011 23:27:12 +0000

She did an excellent job learning the sellers situation and finding a way to solve his problem. Even if the value isn’t there she’s paying down $12,000 in principle every year and in 17 years she’ll have a free and clear house paid for by her tenants.

By: Discovery Bay real estate

Discovery Bay real estate — Thu, 23 Dec 2010 16:07:33 +0000

I hope to get into the real estate business for wealth building. The only problem is, It takes money to make money!

By: Matt Andrews

Matt Andrews — Wed, 22 Dec 2010 18:04:48 +0000

Great ideas. Thanks for the info. If you want to see what we are doing with high cashflow rentals in Tampa, FL., check us out at http://www.ZMAinvestments.com . We are the number one source for wholesale properties in Tampa. Hope to hear from you soon!

By: Tom Detelich

Tom Detelich — Mon, 13 Dec 2010 20:45:10 +0000

Looks like your student got into the right deal at the right time. That’s a heck of a negotiation and it’s nice to see that he’ll be cash flowing for the next 10 years or so. Hopefully by then, the house will be able to sell for $350K as hoped!

By: Mathieu

Mathieu — Wed, 01 Dec 2010 04:23:37 +0000

Is the owner nuts, or does he or she have too much money? Gee this is great news for the new buyer, but for the seller someone needs to have a long talk with him or her.

By: Augie

Augie — Wed, 27 Oct 2010 06:07:00 +0000

How did your sister in law make out?

By: The Cottages on Government Way

The Cottages on Government Way — Wed, 20 Oct 2010 14:49:53 +0000

This particular scenario happened to my sister-in-law. I sure wish that I stumbled upon your blog earlier so I could have shared some sensible tips with her. You always seem to have such strong, sensible tips.

By: Nick

Nick — Sat, 02 Oct 2010 19:04:31 +0000

Unbelievable! Not only did the buyer get a good deal, but 3 months after closing until payments begin is unheard of!

By: Jean@commercial property investment

Jean@commercial property investment — Thu, 23 Sep 2010 03:02:54 +0000

Wow. That student must have made lots of money. Nowadays, we have to learn how to invest. It’s really nice to see if we are getting more income with our investments. That was a good start for the student. Apparently not all the tactics are being taught inside the school. They are being taught about the definitions and terminology. It would rely on how a person plays wtth the market to get some good investment. Kudos!

By: Augie

Augie — Tue, 31 Aug 2010 12:00:04 +0000

Interesting point. I was recently a guest speaker at the Dr. Phillips School of Real Estate at the University of Central Florida. It was very interesting because a few of the students approached me after class and asked if this were really possible because it sounded too goo to be true. Ironic, they had so much education within the walls of academia yet so little knowledge of the financial world outside. Financial literacy should be art of the global curriculum. Thanks for your comment,

To your success…

By: Park Homes

Park Homes — Tue, 31 Aug 2010 08:15:35 +0000

It is a very clever plan. This kind of stuff should be taught in business schools, in courses designed specifically catering to real estate.

By: Augie

Augie — Tue, 31 Aug 2010 04:22:44 +0000

Thanks Zaya, while there is obviously a business purpose for blogs, they are mostly a labor of love. That’s what builds community. I try to deliver quality content for our tribe. If you are trying to manage multiple blogs, that is a heavy commitment. I wish you luck. Find the ones you love the most and give them your best.

To your success…

Augie

By: Zaya S Younan

Zaya S Younan — Tue, 24 Aug 2010 15:39:38 +0000

Thanks for writing about this. There’s a mass of solid tech info on the web. You’ve got a lot of that info here on your internet site. I’m impressed – I try to retain a couple blogs reasonably live, but it’s a struggle at times. You’ve done a large job with this one. How do you do it?

By: san diego homes sale

san diego homes sale — Wed, 16 Jun 2010 04:32:57 +0000

This is a great scenario. It will, of course, vary depending upon the community. There are very few houses in San Diego that sell for as little as $250,000, but rents are a little higher than described. Also, you need to factor for house maintenance over the ten year period. But it is a good way to make money in real estate.

By: jjray

jjray — Sat, 24 Apr 2010 15:28:02 +0000

Thus proving the old adage, it never hurts to ask.

By: Augie

Augie — Fri, 19 Mar 2010 13:27:04 +0000

You’re absolutely right, real estate is been a major component of wealth building for many successful people. It is especially important for the working person who can build a fortune over time by investing in properties and having tenants amortize the mortgages which are held by sellers (one of my favorite strategies). I know you can sometimes finance with a bank, they just aren’t my cup of tea.

By: Sheffield57 apartments for sale in Manhattan

Sheffield57 apartments for sale in Manhattan — Fri, 19 Mar 2010 12:57:59 +0000

I think, the best way of investment is real estate investment. That will bring great benefit. Thanks for this post.

By: keisha

keisha — Fri, 12 Mar 2010 03:39:47 +0000

It’s really important to have commercial property investment especially while you’re still young. I enjoyed reading this because it motivates me to do the same. Now I’m seeing the importance of investing and saving your money into something worthwhile for me and my family’s future benefit.

By: loan mortgage online

loan mortgage online — Tue, 02 Mar 2010 10:32:22 +0000

It’s amazing how she saw this opportunity of this house and worked out a plan so she would make money with starting with nothing. It is great because it’s not an illegal practise and every party involved agrees and are coming out with money at the end. It was a giant leap onto the property market from nothing and hopefully it works out in the end.

By: Marvis Segar

Marvis Segar — Mon, 15 Feb 2010 09:37:58 +0000

Appreciate the informative commentary.

By: Augie

Augie — Tue, 08 Dec 2009 23:42:45 +0000

I’m glad you enjoyed it. Thanks for checking us out.

By: Nik Cornel

Nik Cornel — Tue, 08 Dec 2009 20:37:07 +0000

Excellent technical know how and a very good article about real estate and business.

By: Lamar Seals

Lamar Seals — Fri, 27 Nov 2009 00:19:54 +0000

Good stuff.

By: Real Estate Script

Real Estate Script — Tue, 17 Nov 2009 14:12:18 +0000

Nowadays, when you have extra savings you would plan to invest it into something worthwhile. And one of the common suggestions is to acquire a second home. Purchasing real estate can surely give you a high return of your investment. It is the best move you can ever do in your life because you can do business and work for another company all at the same time. However, this is not as easy as purchasing one and rent it. You need to be knowledgeable of what kind of market you are entering into.

This cash flow gives venture in this matter, consider some of these tips for real estate investing.

By: Augie

Augie — Sat, 05 Sep 2009 21:42:19 +0000

Actually the student had no money, she only put $1,000 and a little clean up money into the deal. She even negotiated deferring her first payment for three months so she could clean up the property and find a tenant. The seller financed the $200,000…that’s what makes it such an awesome deal. Thanks for the comment.

By: Augie

Augie — Sun, 26 Jul 2009 17:57:43 +0000

Actually the student negotiated with the seller who actually provided the financing. The student has no money in the deal other than some minor repair costs. Thanks for your comment!

By: MPH

MPH — Fri, 24 Jul 2009 18:35:57 +0000

Nicely done and that for a student. But of course you have to have 200 000 dollars first to buy the property.