Realty411 Magazine Featuring Scott Meyers | Page 14
The 3 Crucial C's
for Success
in Real Estate
By Linda Pliagas, Publisher/Editor
R
eal estate has been a big
part of my life for many
decades. Beginning with
our first nomoneydown deal in
Culver City, Calif., in 1993.
I was a fulltime journalism
student back then and only
worked parttime, so we had a
tough time qualifying for a
$200,000 mortgage.
My mother even had to co
sign, and she was quite nervous
that her 25yearold daughter and
new soninlaw were buying an
outdated 1920's pink fixer upper
with a splotchy green roof and a
leaning front porch.
What a sight it was!
Everyone thought we were
crazy, but I focused on the
original stainedglass windows,
the amazing 20foot living room
beautifully plastered with thick
stucco, and the unique builtin
hutches in the formal dining room
with elongated windows and
classic French doors.
We did not qualify for the
mortgage at first. Luckily, our
savvy agent was wellversed in
creative deal making and asked
the seller to carry a $50,000
14
LINDA'S LETTER
Linda Pliagas, Publisher
second trust deed, thus helping us
qualify for now only a $150,000
loan.
We managed to qualify for
that amount...barely!
The property doubled shortly
thereafter. Fastforward to 2010
and by then it had tripled. Along
the way, we used our primary
home to also pay cash for a
vacation property on 2.5 acres
that we purchased as a HUD
foreclosure, which ended up
tripling in value.
After we cashed out of our
primary home in the city (thus
earning a taxfree profit), we were
able to purchase for cash at half
the price elsewhere.
(TIP: We plan to do this same
type of homeexchange strategy a
few more times, so we can
continue to make substantial tax
free windfalls. The IRS tax code
allows individuals to make up to
$250,000 taxfree and up to
$500,000 per couple, if they have
lived in the home as their primary
residence for two of the last five
years.)