Quick and easy note created!

[Collin Corrington]

Investment Info:

Single-family residence note investment investment.

Purchase price: $15,094
Cash invested: $16,094
Sale price: $35,000

Bought this form an elderly couple that was moving to assisted living. They left pretty much everything. Paid cash for the deal. Paid $1,000 for someone to come clean and haul everything off.

Sold owner finance to another investor for $35,000 at 7.5% interest for 10 years. I'm sure he'll pay it off sooner than maturity as he is attempting to flip it.

Immediate unrealized capital gain - $18,906

Loan maturity capital gain - $33,795.12

What made you interested in investing in this type of deal?

The price was too good to pass up. It's about an hour from where I would normally invest but a deal is a deal.

How did you find this deal and how did you negotiate it?

A friend of a friend told me about it. No real negotiating. They just wanted $15,000 for the property.

How did you finance this deal?

Cash

How did you add value to the deal?

Cleaned it.

What was the outcome?

Created a nice short term note with minimal invested.

Lessons learned? Challenges?

I posted this in the MLS hoping to wholetail it. My friend Erik kept telling me to use bandit signs. I was reluctant since this was way out in the country. I finally relented and it sold in about a week.

Lesson learned - Don't underestimate the power of a bandit sign!

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

N/A