What's your MOST Creative Finance Story?

72 Replies

I want to know the most creative way you've ever financed a real estate purchase.

Mortgage? Pish, I've done that.

You sold plasma? Tell me more.

Seller Financing? I'm all ears!

Brandon Turner told us in  How We Bought a 24-Unit Apartment Building for (Almost) No Money Down the story of seller financing mixed with HELOCs and Partnerships. That's awesome, but I want to know how YOU did it!

I'm going to wrap the best of these stories into a book about Creative Financing. I'd love to include your story! Bonus points for before/after pictures, too!

Build good credit over several years.  Don't run your debts up.  Borrow the down payment money and let it season for 3 months in your bank account before applying for a mortgage.

We bought our first home that way and recently borrowed an entire year's salary, UNSECURED, for more down payments.

Originally posted by @James H. :

Build good credit over several years.  Don't run your debts up.  Borrow the down payment money and let it season for 3 months in your bank account before applying for a mortgage.

We bought our first home that way and recently borrowed an entire year's salary, UNSECURED, for more down payments.

 I think you left out the creative part.

This was a wholesale pre-foreclosure with BK, a pre-hab, and we did it with double closing. 

I tracked down a person who was behind on his mortgage and was going to foreclosure. Here in Texas we have a short fuse for foreclosures, 21 days. I knew I had to find him fast. I sent a letter to 5 people with his last name(Prinz). I got their names from the phone book (2003). I said if you are a relative of his or know him, there is a $500 reward for you if I buy his house. His cousin that he was staying with called me the next morning and handed him the phone to talk with me. She got the $500.

By the time I thought to send a letter out, made contact with him and he decided he needed to do something, it was the day before the auction. I told him that the only way to stop the foreclosure now would be to file BK. He said OK. He had lots of bills and bill collectors calling anyway. BK stopped the foreclosure. Now we could take a breath. We took the contract to the title company to get closed. In the meantime, I got a 40yd dumpster to the house and got some of the junk out, cut the grass, cut the vines and weeds that were all over. Now it looked half way decent.

Title company said that we could not close on the property because you can not sell a house when someone is in BK. Called the atttorney and he took him out of BK. We double closed. I brought $10 earnest money a couple months earlier and walked away with $12,500. That was my first of many deals.

There was actually no financing on my part, but my buyer got a loan from a private lender. He borrowed the purchase price plus the rehab. He then wrapped the loan at 40k more and 2% higher than what he owed his private lender after he rehabbed it. He did it with no money out of pocket either.

I bought a house for $30,000 in San Diego County using creative financing this summer (2017)

Quick Financials

Purchase - $286,000 ($30,000 cash to take over mortgage subject to)

Mortgage - VA Loan @ 4.25% on year 3 of 30

Mortgage Balance - $255,XXX

Repairs - $10,000

Total cash invested - $41,000

Current Value - $390,000 ($100k equity picked up)

Payment - $1752

Rented - $2250

Here’s the Story…

The lead hit via my website, the seller wanted out of his property, I hadn’t taken the lead seriously in February. I remember telling the seller to have an agent list the place as it sounded really nice. He called me back in May, telling me he was ready to accept the offer I’d given over the phone. This is what I call a "hot lead".

Personally, I had been having what I’d like to call a “growth year” and this particular day was a very emotional days for me personally. I chose to meet the seller regardless, I actually remember crying in my car during the drive and coaching myself. Looking back it’s a moment I’m very proud of, and I believe this deal is the fruits of my labors in working on myself and my relationships.

When I sat down with the seller, I realized he was ready. There was no need to pitch, he expected a contract and that’s it. Suddenly I had the desire to see if I could buy the house subject to. I knew he only had around $30k in equity, I could afford that. What if I just took over the loan? So I proposed it, he agreed within seconds. It was wild.

The home had a rodent infestation and was in poor shape for a rental. I took over the house with almost all its belongings (including two sweet bikes I took to burning man).

I then invested $10k into repairs to make the place rental ready, which involved keeping a garage that had been converted to a master bedroom. My goal being to collect a higher rent with more rooms. Which worked, I pushed my 2/1 which would collect $1800 a month into a budget 3/2 collecting $2250 a month.

The main reason I kept this deal was that the house was just the biggest turd on the nicest street. Its a 2/1 875 sq ft home with a huge lot. All the other homes in the area are 3/2's in the 1300 sq ft range. My plan being one day to do a master suite ad on to the house, then 1031 exchange the proceeds into multi units out of state. I should have around $150k liquid from this deal at that point, putting me in a great position for a down payment on a larger multi-unit. 

This was the most amazing deal I've ever taken down, it was so easy. I was so humbled to realize that I was the only barrier in my way of making this deal happen. After coaching myself in the moment I took what was going to be a simple flip at best and turned it into my second rental property with a massive amount of equity.

And on a personal note, the issues that were causing me so much distress that day have been worked out in a wonderful way. I am really proud of my growth this year. 

Property I purchased about 90 days ago. Gap funder disappeared last minute right before closing. I had cash to cover but like to keep a certain amount of reserve funds. One of my credit cards allows me to convert the entire available limit into a cash deposit (no cash advance fee) at 4.9% APR. So I used that to cover the additional cost without hurting my reserve funds. And the project is about 2 weeks from completion so I'll have it sold long before the low interest rate is over.

@Mindy Jensen

I feel like when I didn’t have any money, all of my deals were creative!

They had to be. But this one is one of my favorites:

The story starts back when I was working for a builder in my contracting days. We were working on houses with an average price of about $750,000 (which was a lot back then, this would probably be the equivalent of a couple million dollars today).

A guy was interested in purchasing one of the builder’s houses. The deal for them was that my builder would build him a house, but the interested party would only buy it on the contingency that he sold his then-current residence. So the builder goes and designs this custom house. Building it, never thinking this guy wouldn’t be able to sell his old property in a nice area. So one day, the custom house is finished and the guy can’t buy it! For whatever reason, the old house wouldn’t sell! So, out of desperation to sell his custom house, the builder took ownership of the buyer’s older property, partially in trade. He wanted to get out the larger construction loan, so it was the lesser of two evils to take the older house in trade.

Then you’ll never guess what happens…the builder couldn’t sell it! He then tried renting it out. Each time a tenant would come in, not stay for very long, and then he’d have to renovate. He did this three different times and finally he was fed up. The only reason I knew about all this was because he hired me and my company to paint this house each and every time.

So he lists it on the market again. And again. And again. Continuously dropping the price from $299K, to $249K, and then $229K.

I knew the price kept dropping in what was then a stagnant market, and one day while I was in his office I jokingly said 'Hey, if you get rid of the Realtor, I'll buy it.'

He says, “Done!”

I said that because I was a Realtor myself as well as an Investor/Contractor, always looking to get a better deal that could utilize all of my skillsets. Coincidentally, at the same time my wife and I were looking at moving to a new house. Back then, we didn’t have much money and we were looking at small townhouses. This place was a 4 bedroom, in good shape, on a large plot of land (large for us anyway). Plus, the school district was one of the best in the country, which definitely made it more enticing.

The builder finally lowered the price again in the process of all this, and dropped it to $199K. Then I made an offer for $190,000. On top of that, I purchased it with a 6% assist. I got it for the equivalent for about $178K with owner occupied financing. So basically I got what was essentially a $300,000 house for only $178,000! Way above my pay grade. Plus I saved the money I would have had to spend on parochial schools in the other areas we were looking to buy.

It’s funny, for awhile I wondered why he didn’t mind selling me the property at such a good price. Then I realized it when I got to closing, I learned my builder friend was paying $250K/QUARTERLY in taxes. So he simply took a loss on the house he sold me, and that was that. He always did jokingly call me "Robin Hood" after that though haha. I think our relationship also had a lot to do with it too. Sometimes it pays to know your motivated sellers.

But it gets better than that…

At the same time, I had refinanced my very first property - a duplex that I renovated and had added garages to. This refi money provided the down payment for my $178,000 house.

So all in all, it literally cost me $300 to move into this $300,000 house. And that was just for the mortgage application.

But wait….it gets better….

Because he had dropped the price so much, I thought I'd get it reappraised. I refinanced a few months later, and it was worth more even than my purchase price! Eventually it even appraised for $550,000 – which is quite a bit of appreciation in a short amount of time in our area of Pennsylvania.

BUT WAIT…THERE’S MORE….

I lived in the house for years as my children finished grade school. We renovated the property, added an addition (it’s now a 6 bedroom today). Then I put a 2nd mortgage on it right before the 2008 crash when it appraised for it's highest value. The property fell in value soon after of course but since I took the 2nd mortgage already, they couldn’t take it back because I had already maximized the line. That money actually went towards purchasing some very profitable notes. So basically this house has given me an infinite rate of return. In fact it may be my most profitable rental property.

We've since turned the property into a drug and alcohol recovery house rental that we still own today. But that's a whole other story...

P.S.

I'd have to dig into my records, but I should be able to find some old photos for the "before/after" pictures.

Not much of a story, but I purchased an $18k condo using a plain old unsecured loan like banks and lenders advertise for debt consolidation or major purchase/renovation. Quick loan with 9% interest but very little paperwork and no other fees. I later "refinanced" it so to speak by rolling the balance onto my HELOC at 5% to increase cash flow.

While technically not creative financing, I got a $21k mortgage from a local credit union earlier this year for another property.

I've been creative almost every time. I've used lines of credit, credit card advances, credit cards for materials, personal loans, big seller credits, and combinations thereof.... and equity partners when the deals were too big for the other methods. 

I found a mobile home park deal that I worked for several months.  It was 440k purchase price 34 lots with upside.

The seller was willing to finance it with 200k down  ( thats a high % down but with upside the deal made sense :)   ) 


I was working a couple other deals at the time so was looking to assign or partner up on it as my capital base couldn't get it done.

I had a chance to get around a 20k assignment fee on it.  Instead of taking a 20k assignment on it, sourced half the capital for the deal ( and the deal) and then partnered up on it!  

I think the passive income on that in the first 16 months had to have been close to that assignment fee!  

Partner is in the process of exiting that park and I'm  looking to pay back my capital partner with a good chunk of profit ( and they got some good passive income that same time - we agreed to a 50/50 split) for them and id imagine around 50k on my side. 

So hopefully by foregoing that 20k, ill end up with say 60-80k on the term with distributions .  No money in that deal. 

I also learned a ton of stuff by being a part of that one and am grateful that I had the opportunity to be able to partner up on it!

@Mindy Jensen   Doesn't every deal take some creativity? Here's a few of mine.

1. Not that creative, but for those that are agents it may help. There was a parcel of land that had been on the market for several months. It was on a hillside, but directly across from Mercy Hospital in Redding, meaning it would always be in demand as far as locations. We tied the parcel up for basically nothing, and used our commission as a down payment The seller had some terrible concept drawings,that we knew we could rework and did. I immediately had a sign made up and put on the property, and did a mailout to prospective tenants with the new rendering, which was well received. Seeing the interest from prospects, the lender loaned us the construction money. We sold it while it was under construction.

2. We were developing an 8 lot office park with buildings from 4-8000 sq. ft. I joined a bartering website, and pre-sold one of the buildings at market value to a member, taking back the equity in barter credit, and giving us a presold building, cementing the viability of the project. We used that credit for buying carpet, several large decorative water fountains, and some other things for the buildings. It worked out great, as all the things we purchased on barter were at wholesale pricing. We developed the office park, put in tenants in some, and sold it out. We also picked up a great investor that bought other projects from us.

3. On the recent jobs in southern CA I had an investor from BP (who shall remain nameless, but is one of the nicest people I've ever met) contact me wanting to get in on a deal, as he was in a 1031 exchange. He decided not to do the exchange, but ended up buying a parcel that we'd been looking at for a duplex project. He paid cash for the land, and subordinated to a construction loan (Which was put together by another BP member that happens to be a loan broker in San Diego), with a lender (that also happens to be a BP member) Once the deal was built and sold, the investor was paid off. Currently that same investor is in on another deal here in Oregon, doing the same thing on the land.

Borrowed $750k unsecured from an SDIRA where they were earning about 7% up and down (mostly down) for years. I paid (paying) them 10% simple interest (IO PMTS) for 20 years. I used part of the "cash like substance" as a DP on a 10 CAP NNN where the NOI covered both the Debt service on the NNN and the interest payment on the NLD.

The rest of the money (now free seed money) I reused multiple times over for flipping, adding the profits to the original seed money...expanding it to twice the original amount.

Then, taking the profits and buying NNN for cash flow, while repeatedly reinvesting the same "original seed" money to infinity...generating a continuous flow of profit to buy Cash Flow properties.

Through all of this, I never spend a dime

Hello @Mindy Jensen ,

Completed a BRRRR with 0$ out of pocket. (HELOC/Hard Money Combo) A year later I walked away with $26,663 tax free and was able to keep the property as my primary with 37k in equity. 

I used a HELOC as the down payment for hard money, they covered 85% of purchase price and 100% of the rehab costs. Purchase Price: 101k. ARV: 185k

In order to avoid paying the interest on the hard money ($945 month) I was able to complete the rehab quickly and get it rented before the first interest payment became due. The tenants moved out after year 1 so I could obtain owner financing pulling out 80% LTV ($26,663.00 tax free)

All because of the online forums and our local BP meetups!

 

My fiance and I pooled our money into a joint account. Then proceeded to use the same account to each buy rental properties me with VA, her with FHA. We will be using the same fund again to purchase another FHA for me, and conventional for her.

The pooled money gives the illusion that we have a lot more money than we would individually. We use separate banks to finance, and the lenders are none the wiser. If we were married this of course would not work, so we are trying to pick up as many properties as we can prior to marriage. Keeps us from having to gift eachother money too which is nice. 

And of course we just bounce back and forth on whichever 4plex we are staying in that night. Works out well for us.

End of the day we spent 20k to buy 8 units worth 1 million that cash flow about 1k/month after expenses with us living there. Can't wait to move out and do it again!

Updated 7 months ago

Sorry if I didn't word it well. When I said we bounce back and forth,I meant we each both still have units in both places and just sleep at eachother place all the time. We aren't renting out those units.

@Mindy Jensen Hey Colorado girl!  Hows Longmont doin?? 

This deal wasn't nearly as complicated as some of the others on here but its creative. 

It had been a year or so since I had bought any real estate.  Its an addictive sport and I was getting bored.  I started putting money together in October, with the PFD check we get every year from the state for surviving a year in Alaska.  That year the check was $1800 dollars.  I put it in the bank.  As we all do I live below my means, and every time I had extra money I poked it away in the bank with that $1800.  I had a good tax year and a fair refund so it went in there too.  

In the mean time I started looking in another town (Montrose) as well.  my properties in Pueblo were doing okay but in those days you couldn't raise rent much (one tenant moved out when I raised the rent $25)  I found a PM and a realtor in Montrose.  My goal was a duplex, or some sort of MF. and I told the realtor I wanted an owner carry as well. 

 I saved for 6-8 months or so and had a good start.  This wasn't moving fast enough for me though and when a good MF came up I didn't have enough down payment saved up.  Im thinkin I had around $20,000 saved up, and needed at least 3 times that. 

I own a 2013 jeep in Anchorage.  The Jeep gets less than 1,000 miles a year on it and we keep it in inside storage all year, driving it when we go to Anchorage shopping etc.  It was financed at 2.5% interest for 5 years.  The mileage at the time was less than 3000 miles and it was about 1/2 paid for.  Payment $550 a month

I was in the bank one day and saw a sign advertising low interest car loans.  That gave me an idea.  I asked how much cash I could get if I re-financed that Jeep, and what was the current "low" interest rate?  after all it was 2.5% already how could it be lower?  The bank lady knows me pretty well and did her magic.  She told me the interest with my credit would be 2%, and she thought if I financed it back to full loan value I would get around $18,000 cash back.  Payment for the same 5 year term would be $500 a month down 50 dollars a month.  That after noon I had $38000 in my savings account.

A couple months later I got a call and the realtor said she had a guy that wanted to sell his duplex (duplexes are almost non existent in Montrose much less owner carry) but he wanted to do an owner carry.  He's in his 80's and wants to sell his rentals but is trying to spread out his tax burden.  He doesn't want a 1031 exchange.  How much says I?  $160K.  I been watching the market and I think that's pretty cheap.  Realtors in colorado cant help with the owner carry part so I call him up, negotiate a deal at $160,000 and we are off to the races. 

There's more.

couple weeks before closing I get worried.  I order an appraisal.  did I over pay?  rents work out good, inspections are ok.  looks good from here looked ok when I inspected it but im not sure I didn't over pay.  I order an appraisal for my own curiosity.  it comes back at $210,000!!

Not done with the car yet.

A year or so goes by, and ive purchased another rental using private money.  We want to move to Montrose, and now the market has exploded!  I don't think there is a rental open any where there.  I know we won't be able to find a rental to live in before we buy, and we have stuff to ship down there before we move.  Gonna need to buy a second home so we have a place to land.  Wow in this market?? That's not gonna be fun. 

I'm lookin all over and my realtor tells me he thinks one of his clients is gonna list a place with him for a pretty good price.  ok so I start getting positioned to buy.  first I do a cash out re-fi on my primary from 15 years back to 30 years. (payment falls from $1500 a month to $820 a month).  Its not a full cash out re-fi, just enough to pay off a credit card only.  I want to buy 2 houses here not just one.  I have also just done a full on cash out re-fi on one of my rentals.  Total cash in the bank is $30,000 and im still saving.  How to make this buy 2 houses, one to live in one to rent??

I hate conventional loans. When you have as many rentals as I do its a horrible experience to explain all the loans, produce promissory notes, rent rolls and on and on. They want reserves, and a good DTI as well. here's what I did.

The house comes up for sale. Its a town home, that really amounts to a duplex that is divided into 2 identical but separate units. I offer full price seller pays 3,000 in closing. The deal is on. This thing rents for about $1,000 a month so it doesn't pencil as any kind of rental for that price but I want to live there, not rent it. purchased as a second home you aren't able to use it as a rental anyhow. I want both halves but am way short of the down payment required to buy both halves. 3 months to close because of the conventional loan, and the length of time for the appraisal. im shoving every extra penny in the bank. I need to show some cash reserves here as well as a good DTI.

Enter the car. Its financed at 5 years and damn near 1/2 paid for again. This time im not looking for money, but lower payments. I ask the bank how long I can finance this current amount for. They allow me to re-finance the car for 8 years. 3.5% interest though so I gotta take a small hit on that. payment goes from $500 a month to $325. (I still make the original $550 a month payment tho) My DTI is very good now and the loan processes fine. I end up after the down payment with $19,000 in the bank and a total payment of $890 a month. I now have 2 houses for a combined payment of $1710 or $210 a month more than the primary was costing me. Oh Yeah I almost forgot the other half of the town house that I bought sold for $165,000. my 1/2 of the townhouse went up $10,000 before I got closed on the deal.

 I kept saving money but couldn't find the other rental. However after about 3 months I did  find a small storage facility in yet another small  town.  I close on that next week.  Its a seller finance as well.  Interestingly enough both times I re-financed the car I ended up with a seller financed deal.     RR 

       

@Mindy Jensen   went into a contract on 160 acres in Metro Portland Oregon for 1.4 million.. Cruised the timber and got a Timber advance from Menasha for 1.6 million  .  IE pre sold the delivered logs this is done through a timber deed.. like you have a warrnety deed or Grant deed.. in the Northwest or west coast you also have Timber deeds.. timber standing is just like a rental house its real property .. When its severed ( harvested it becomes personal property.. )  kind of like buying a home were a freeway is going and moving it to a bare lot using a home moving company.

Now here is the good part.. in those days MId 90s  Timber that was export quality ( J logs )  Japanese grade were in such high demand and Menasha out of Wisconsin at the time was a large West coast exporter of logs.. they would advance on the Timber deed.. terms.. NO points NO interest So we pocketed 200k at close of escrow.  ( nice) I had an investment group I was a rock star to them. 

We delivered the logs... paid off the Timber deed.. now we have made 200k large.. and own the ground free and clear.

Took the top 40 busted it into 4 10's sold those for 125k each to home owners.. then METRO ( quasi government agency ) came in and bough the lower 120 from us for 1.1 million.. its now the Cooper Mtn.. Park in Washington County Oregon.

We did many many deals like this.. but sadly it came to a screeching halt when the Japanese economy crashed.. Timber is still a great play.. but today that timber we sold for 1.6 would not go for much over 600 to 700 as stumpage.. it was crazy times then.. and boy was it fun.. I always say my 30's were basically my retirement years I work much more and harder today than I did then  LOL.. but hey I love it.. 

I also firmly believe all these youngster coming up should include a timber parcel in their portfolios.. no better passive income on the planet.. plus you can camp on them.. ride your quads .. hike.. see nature.. and if its big enough Hunt ..

Purchased both these home with owner carry at 0%.  They were stuck on price so I gave it to them with my terms.  Always present multiple offers when dealing with a distressed seller.

Motivated seller calls me last October, but I had just closed on two other properties and had too much capital tied up to be able to do anything else... But I went ahead and went to look at the property anyway.  Turns out the owner had been burnt by a wholesaler that contracted to purchase his home 6 months earlier and never closed, but after contracting, he had purchased a 2nd home and moved believing the first home was sold.  6 months went by with extended closings, false promises, and the homeowner paying 2 mortgages.  Now he was less then 2 weeks away from not being able to make the payments anymore, and he was willing to let the first home go for the payoff.  House was worth $60K and payoff was just under $30K.  The house also didn't need any repairs. 

I wanted the house but I had too much capital tied up in the other two properties I was flipping.  I knew for sure I could pay cash for the house if it was 60-90 days later.  I had to get creative fast, so I asked what his monthly payment was?  I told him I would be able to buy it for sure within 3-4 months tops once I flip one of the others.  I asked if I could take over his payments until then?  He seemed uneasy about that after being burned by the wholesaler.  So, I said what if I go to your bank with you, meet with them, and I pay the next 4 months payments up front to them, and contract with you to pay it off in full within 120 days, and if I don't, I walk away and you keep your home, but at least worst case I bought you 4 months to figure out another plan.  He went for that, so we met with the bank and told them our plan, so they wouldn't call it due.  Done deal!!  Less then 4 months later, I sold another property, and closed with him.  Plus I had already lined out a new buyer and sold it for $55K.

The homeowner has referred me several more motivated sellers since.  And anytime I've dealt with another potential client in his hometown, he has allowed me to give his name and contact info as reference.

When we moved from CO to WA in 2002, we put a $47k HELOC on that house and 'sold' it on a lease option.

The next year we bought a 10-unit from a small town banker that had it as an REO. He took a $25k 3rd mortgage on our house we still had in CO and we financed the other $25k he required with the HELOC on the same house he just put a 3rd mortgage on . He didn't care about that or that we were living in a trailer park as long as we closed before Q4.

I paid that commercial mortgage off a couple months ago to free up my DTI to BRRR a little rental house we bought seller-financed for $88k with $8800 down in 2015. Our 75% ltv cash-out check on that was $36k, closed last month.

If we wanted to now, we could re-leverage the free and clear 10-unit and pull out $300k+ with a 60% LTV. A before and after of one apt... As a DIYer the complete rehab was done in 17 days :)

Originally posted by @Rocky V. :

Purchased both these home with owner carry at 0%.  They were stuck on price so I gave it to them with my terms.  Always present multiple offers when dealing with a distressed seller.

 Rocky I sold many of my OREO inventory with zero interest financing its a great model.. for certain deals.. great job !!!

This year, with none of my own money (or credit):

-I purchased 3 multifamily apartments, as long term rentals, with none of my own money and have a 16 plex that should be closing next month.

-Bought 6 single family homes, as rentals, with none of my own money.

-Fix and flipped 7 houses & 2 condo units, with none of my own money.

These are all combinations of 1) partnering, 2) seller finance, 3) hard money lenders, 4) private money lenders, 5) lease option, and 6) subject to.

Just get out and start creating win-wins, it's as easy as asking.

Best of luck!

-AAA

Here’s a story of how I got a FREE Cabin.

Lease Option Purchase (172k) 2yrs ago Then Vacation Rental (VRBO) that paid for lease cost, used cabin when not rented or blocked out our own time - sold in March for $187,500. I had contract with “and or assigns”, but ended up connecting seller and buyer and received an assignment fee for the difference.

The end

https://www.zillow.com/homedetails/17135-S-Mescalero-Dr-Munds-Park-AZ--/7379019_zpid

I had a apartment building under contract for 750k on a 60 day escrow, called a agent I knew in Beverly Hills and he brought me a retail buyer for 1.16..... we opened escrow concurrently....I called a hard money lender and they gave me 650k with no appraisal....called a land lord investor I know and told him I’d pay him 165k in 1 week if he gave me 150k....while I was in the last 2 weeks of escrow I took the difference between the 800k and the 750k purchase price plus fees (roughly 30k) and took the family to Miami/ Jamaica for two weeks and came back to a 430k check waiting for me...I paid my landlord investor 165k amd kept the rest and did the whole deal with no money out of pocket.....I thought that was pretty slick

We owned some college property in a gentrifying neighborhood. 4 years ago, our college tenants were causing some vandalism with a run down old house and upsetting the owner (who was absentee). He agreed to sell us the house for 14k on a land contract for 10 years. We took control and rented the house for 3 years and then sold it to another investor for 50k on another land contract 3 years later. THis took no money out of pocket and was a very nice return.

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