My Hutto, Texas Deal No $ Down & $9000 to Me

Creative Financing / Motivated Sellers
$ The easiest, fastest real estate investment method, for making big money $

Hi! I’m Allen Watkins I’ve been investing in real estate since 1983. I’ve built my career focusing on all the different stages of the foreclosure process, and all the various techniques that apply to that area of investing. I’ve made a lot of deals and money.

I love making deals! I don’t particularly love all the chasing, management, time and effort that is involved and that limits the number of deals I can do at one time by myself. I love doing deals with Apprentice Partners now, making it possible for me to do more deals. While I’m currently still dealing in foreclosures, I also pursue all kinds of motivated sellers, buying pretty houses in nice neighborhoods.

Made over $10,000 on a deal that I never even saw in person. With no remodeling, or contractor headaches. See “Hutto Deal” below. This technique is what I’m sharing with you in this course.

If your brand new to the real estate investment business understand that some of this information, and how it all works together, may not immediately make complete sense to you. Keep reading and then re-read, and follow my simple step by step instructions and I promise it will all come together for you. You will make a lot of money with this little known knowledge! If I can do it, and I have done very well in deed, you can do it!

207 MATTHEW COVE HUTTO, TX  78634
Excellent condition 4 Bed, 2.5 Bath
County: WILLIAMS, Year built: 2002, Two story, 2 car Garage, Central air conditioning, Community swimming pool(s), Family Room Fireplace, Formal Dining room, 2 Car Garage.

Now understand, I live N. W. Indiana, a suburb of the Chicago area and I never even saw this home in person. The sellers were approaching 8 months pregnant. Had the home listed through a Realtor, (A friend who was willing to cancel the listing) starting out at $159,900, now priced at $154,900 The local market was soft for sellers, and no offers were being made. They wanted to down size to reduce their monthly cost, move closer to his work and be closer to her family. They wanted to move prior to her having the baby. At that price if it did sell, they were going to have to go to closing with a couple thousand dollars because of commission and closing cost. They owed $146,000 on their mortgage. It looked like this:
Price              $154,900
1st Mortgage  -146,000   (Monthly payment on this is $1,465, PITI – principle, interest, taxes,
Minus 6%       –    9,294   Realtor Commission                                   and insurance)
Closing Cost   –    2,000   Approximately
(2,394)  Negative
My offer:
Deed ownership of the property over to me. “Subject To” the mortgage. I take over the payments, utilities, and all responsibility for maintenance at the beginning of the 3rd month. Which means they still paid these expenses for the next 2 months after we closed our deal. The reason for this was to allow me time to advertise and acquire a lease option buyer.

Their attorney advised them not to deed the home over to me, felt it was too risky for them.
I gave them a day to consider the lost solution to their problem and then contacted them again with another solution that would not require them to deed over ownership now and help them accomplish their goal. The “Lease Option.”

We agreed to a lease option with the right to sub-lease with no expiration date, so I wouldn’t be under any time pressure. They still took care of the first 2 month’s expenses.
I paid for an Ad in the local paper with my credit card, $237.

Contacted a local Realtor through Realtor.com. Talked with several before I found one who would work with me. The Realtor confirmed the local market information for me. Inspected the home and confirmed excellent condition, and I should be able to get $1,500 for rent. My intent was to ask for $1,600, and give the lease option buyer a credit of $150 toward their purchase.

I offered the Realtor:
1. $1,000 (list side, and 3% to selling agent) to just list the home in the MLS for me, showing lease option and owner financing possible,
2. put a lock box and yard sign on the home, and
3. show it to my pre-screened buyers from my Ad.

The Realtor would not agree to that, we negotiated and finally agreed to:
1. 1.25% list side, if it was sold through the MLS
2. If I sold it on my own without the Realtor showing it, no commission would be due.
Got several calls from my ad, people with a little bit of money, one guy who just wanted me to give him the home with no money up front. (Can you imagine the nerve of that guy! Bless him for trying, and not this time.

The seller to my surprise moved on out, gave me the combination code to open the garage overhead door. I realized that I could give that out to my prospective buyers that I had screened and felt comfortable trusting, to let them show themselves through the home. I got my own buyer from the Ad with $9,000 down. They gave me $1,000 earnest money wired into my account and then off to their attorney with my lease option agreement.

After discussion instead of the lease option they wanted a Land Contract for deed, which is basically owner financing where they give me the down payment, make monthly payments, in this case $1,465 PITI, plus any increase in taxes or insurance, we agreed to a 4 year balloon, (which means the balance of the purchase price due and payable at the end of 4 years).

Now since I’m not the actual owner, I just have an equitable interest via my Lease Option with the right to Sub-Lease, the Land Contract for deed required the seller’s signature also. Which the seller had no problem providing.

Oh the best part, the price is $164,900. So the numbers worked out like this:
$164,900   Price
– 1,000   Earnest Money
– 8,000   Balance of down payment
155,900    Financed over 4 years
So with no Money Down (I did have the cost of an Ad $237 on my credit card), I got $9,000 up front, ($1000 earnest money wired into my account and an $8000 cashiers check, see below) and I get another $10,248.41 plus, when my buyers get their own mortgage within 4 years, and pay off the existing mortgage. It is plus because with every payment that is being made, the principle is being reduced by $137.53.

That is over $19,000! Over $20,000 by the time they pay off the mortgage!
Who says you can’t buy properties with No Money Down, and put money in your pocket?
Or better yet make money on real estate with out actually owning it?

I’ve performed 1000’s of transactions on  properties over the last 30 years using a variety of techniques. Made lots of money. Those who are saying it can’t be done, can just keep saying it, while I keep doing it and showing those who are ambitious enough, how to do it.
I share with my Apprentice Partners a specific detailed game plan for making deals just like the one described above.

September 28, 2017

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