$0 Down, Zero Risk Deal. Here’s the Breakdown

[Michael Carbonare]

This one was right in my neighborhood.  I knew the house.  I knew the owners.  What I didn’t know?  They were selling.  It was rundown. Unkempt.
Two brothers picked it up for $530K. About $200K below ARV. They gutted the interior, cleaned up the outside, and within two months, listed it FSBO for $900K.
I told my wife:  "There’s not a chance in hell that house sells at that price, even in perfect condition."
Then I watched and waited. . .
Six weeks later: $880K. . .
One month after that: $860K. . .
Another month. . .listed with a Realtor at $849K. . .
Then quickly reduced again:  $825K.  Still no movement.
Next move?  They tried to rent it.  Asking $6,300/mo! . .in a $4K neighborhood.  Nothing.  Stop the insanity!
The price kept dropping:  $825K. . .$795K. . .$780K. . .$760K
Crickets.
I went old-school and sent them a letter in the mail.  Three days later, one of the brothers called me.  I told him:
"I know the house.  I know the area.  And I know what you’ve been going through."
I pitched a 𝐂𝐨𝐨𝐩𝐞𝐫𝐚𝐭𝐢𝐯𝐞 𝐀𝐬𝐬𝐢𝐠𝐧𝐦𝐞𝐧𝐭.  "Let’s offer it with a lease option.  It’s already been listed for sale and for rent .  Why not both?"
Here’s what we agreed on:
Option price: $775K
Rent: $3,900/mo for 24 months
Option money: $25K (split 50/50)
They had been sitting on this property for 9 months without any interest.
It took me 3 weeks to find a tenant-buyer.  I made $12,500.
They started this deal planning a fix & flip.  But they misjudged the market.  And like many in that situation, they became motivated sellers.
The lease option wasn’t their first choice. But it was a lot more profitable than chasing price cuts, covering holding costs, and waiting for a buyer who never appeared.
This isn’t a one-off. These kinds of deals are 𝑒𝑣𝑒𝑟𝑦𝑤ℎ𝑒𝑟𝑒 right now as the once hot sellers market shifts into a cool buyers market. If you’re serious about getting into real estate but feel stuck waiting for the “right time”, that time is now. You don’t need another podcast, seminar, or TikTok videos. There’s a wealth of information right here on BP to help you get started.