HOW TO MAKE $72,000 BUYING A HOUSE FOR TOP DOLLAR RICHARD ROOP
collect a good size down payment and finance the
rest. Their loan “wraps” the underling loans that
you continue to pay on -- so you can further reduce
your management and create a spread on the
interest or monthly payment.
How to Make $8,000 on Every Offer You
Make
So to construct offers for a seller you take your
resell price and subtract all your expected
expenses for buying, holding, selling and profit.
As you can see, there is a bunch of numbers to
crunch when using this investing strategy. So I
created
a
software
program
that
calculates
This will determine your “maximum allowable
everything in minutes. I would not do it any other
offer” with terms or Terms MAO.
way. Enter a few numbers and it spits out multiple
offers.
How to Increase Your Income while
Reducing Expenses
9 Year Note Example: Assume a single family
home in Florida needing $5,000 in work valued at
$180,000 after repaired. Market rent is $1,295 and
Normally you’ll occupy each property with a
we offer it with flexible terms to a buyer for
tenant, tenant-buyer or terms buyer. I prefer
$187,500. We’re going to target a total profit of
dealing with “buyers” to avoid landlording hassles
$72,000 including $10,000 now and the rest over
and expenses. But I do not rely on them to close.
time.
If they do, great. If they don’t, great.
After calculating the numbers we buy it “as is” for:
Most of my properties are occupied by tenant-
buyers. They agree to buy the property at a future
1) $214,000 with no money down and $800 a month
date and maintain the property themselves. I give
2) $202,000 with $15,000 down and $700 a month
them different credits toward closing in exchange
3) $182,000 with $40,000 down and $500 a month
for keeping their agreements, paying on time and
-- never calling me.
Each offer gets the seller a quick sale -- well above
what they might net selling through an agent down
You can also offer “no bank qualifying” owner
the road. And we get at least $72,000 from the
financing to a “terms buyer” using an installment
cash now, cash flow and cash later.
land contract, agreement for deed, all-inclusive
deed of trust, or wrap around mortgage. Here you
And if on average we close 1 out of 10 offers it’s