I had another sit down meeting this past weekend with a prospective private lender. They are interested and want me to present my deals to them as they come up. This is GREAT! I'm not 100% sure they will commit to lending but they did not say no. That is fantastic in my book.
Both of the closings for our HUD properties are set for next week. We hit a snag with the same one that fell through last month. Of course this did not make me happy but we're working through it and I'm hoping and praying it closes successfully. I have all my money out again and am really tight financially until these properties close. I do not like being in that predicament. So far so good and you'll be the first to know if it falls through!
I have been analyzing our business again as I look towards making my early departure next year. As you know I have not had an accepted offer on a wholesale property in months which means I would not have a profit in... a while. I cannot let this happen when my sole earnings will be real estate. So as I thought about the properties I'm going after it occurred to me, "hmmm if my exit strategy on this property was a lease/option I would be able to purchase it, make a nice monthly cash flow and get option money". The more I thought about it the more I liked that idea. If I had, say, 10 houses with $300/mo minimum cash flow I would be come close to replacing my income. I would also have the option money and, finally, if and when the options are completed we would have a big pay day in the end. So, it all sounds great EXCEPT I hate, hate, hate being a landlord. I know this is a bit different in the sense that all the responsibility goes to the tenant but... I don't know. I feel like I keep coming back to the lease/option niche and really feel like this is the direction I need to go in order to make my future happen. Of course I would always wholesale properties between L/O's which would also add to our cash flow but I just don't think I can soley count on wholesale deals.
The property I am looking at is a 3/2 Tudor style house in a great neighborhood, near lakes & golf course, close to the IL border, etc. The house is mostly updated (kitchen, flooring, baths), had a new roof in '04. What is needs is a new well drilled, new windows and major landscaping. It also has a stucco exterior which I've read could cause problems. Right now I could get the house for $59k, I want it for $55k if I'm going to L/O and $45 if I am going to wholesaler. Back in '07 it sold for $200k+... amazing, huh?! There have already been some other bids on the property so I'm pretty sure it's not going to sit much longer. At any rate, I could lock up this property, get a new well drilled for $5k, update the landscaping and then L/O for $125k, I think. I love this house, it is really cool. This is all based on an inspection coming back clean, of course. Soooo, I'm thinking of trying it on this house and see how it all goes?
Received my Insanity workout over the weekend. I started it on Monday and have completed 4 workouts. I'm very, very sore and hate getting up at 4am to do the workouts BUT I am committed. My starting weight is 152 and I'll post my progression.