No Money Down Real Estate Investing Course
Learn How To Buy Income Properties Without Risk, Good
Credit, Money Or Tenants!

Click here for more information
 
Welcome, Unregistered.
User Name
Password
Forum Links
Site Navigation
Real Estate Resources
Go Back   Real Estate Investing > Real Estate Investment > Flipping House
Reply
   
 
Thread Tools Search this Thread Display Modes
  #1  
Old 09-29-2005, 10:51 PM
reguru
Guest
 
Posts: n/a
Smile Flipping Homes Case Study

To do any type of purchase successfully, you have to line up your financing. A few years ago, two young men called me, knowing that I buy property. They had entered into a contract to acquire a rundown multiunit property in a very good area of Chicago known as Lincoln Park/Depaul. They know that the property was going into foreclosure (that is, the bank or mortgage company was going to sell because the owner wasn't making his mortgage payments), and they knew that there was value in real estate.

They told me that they has contracted to purchase this piece of property and would be happy to sell it - as long as I could move quickly and close the sale in less than two weeks. Something there didn't seems right to me. In a conventional purchase, the buyer requires more time than that to inspect the property and to get a mortgage loan.

The truth of matter was they these two young men, who just starting a real estate career, hasn't understood how critical it was to have their financing lined up ahead of time. They came to me knowing that if they didn't sell the property or flip the contract, they were going to lose their earnest money (money they give to seller as good faith that they would buy the property). They didn't have the money to close the deal. Fortunately for them, I had immediate financing available and was able to give them a profit for other contract when I stepped in and bought the building, I renovated the property and kept it as rental building for four years. At that point, i made the building a condo.

The economics of the deal were as follows:

http://www.buyincomeproperties.com/...ping_Home.shtml
Reply With Quote
Reply

« - | Cash Properties »

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is On
Forum Jump



All times are GMT -8. The time now is 04:56 AM.


Powered by: vBulletin Version 3.0.8
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
Search Engine Friendly URLs by vBSEO 2.4.0
Copyright 2001 - 2006, Buy Income Properties, Inc. All Rights Reserved. Privacy Policy in Observance.