Transaction #11 of 52 in 2011- Another House

When we purchased our first sub-$40,000 property we were really happy and surprised that we could purchase a house so inexpensively and with so little repairs needed. (This was in November 2010 when we purchased a house for $23,900 put $4,000 in repairs into it and rented it immediately for $695/month.)

Now buying houses for under 50% LTV is common and we are purchasing duplexes for under $50,000! So #11 was the purchase of a single family home for $49,500. It needs about $7,000 in repairs. When we are done it will be worth about $99,000 and we will rent it for about $950 per month.

We are now talking to several investors interested in loaning us money for 5-10 years as a first position mortgage holder. They'll earn 8-10% on their money, maybe more!

Transaction #10 of 52 in 2011

We closed transaction #10 of 52 on the 16th of March. It was a simple cash purchase of a duplex which was already rented and completely rehabilitated about 4 years ago.

We are selling it this week to an investor who likes the terms we can offer. We take our equity over time, he gets cash flow, tax benefits, growth, and amortization.

This was a quick transaction. The keys were our cash and our purchasers ability to use his credit for partial take-out financing. He will give us our cash back in about 2-3 months and then we'll use it to buy another and do this all over again! Let me know if you want to learn more about how we do this.

Transaction #9 of 52 in 2011

We just completed our 9th transaction of the year. Fairly strait-forward: a single family home in Ogden. Why did we buy it? Cash flow.

The house is a solid, no-frills property in a good neighborhood. It will cash flow:

$900 Rent

- 90 Management

- 45 Vacancy Reserve

- 45 Repair Reserve

- 38 Insurance

- 33 Taxes

$649 Cash Before Mortgage

We will find a private mortgage and pay 7-8% to someone for 10 years or more. They will get a first position lien against the property and a payment of $500 - $550 per month.

Everyone wins! Obviously we win. So does:

• The City of Ogden: A rehabbed property
• The Tenant: They have a great place to live
• The Private Mortgage Holder: Secured, reliable income for a long, long time
• The Local Economy: $7,500 in repair costs for materials and labor and $1,000 in closing fees

Would you like to be a part of one of our transactions this year? Let me know at 801.510.3566. We are always looking for people to participate in our projects. There are lots of ways to win and we enjoy working with new people.

Look for transaction #10 by next week!