Work For Equity by Ron Legrand
DESCRIPTION
Description
It was 1989, and I bought and sold houses for more than seven years and made several hundred deals. All of them were either wholesale or paraphrases, which I did and sold to the owners.
This was three years after the 1986 tax law change, which turned the real estate world up and creating chaos in business. The economy was not very good, interest rates were high, and real estate information appeared on the news.
I just closed the question of buying a house on Prospect Street in the western Jacksonville, Florida area of my hometown.
The cost after the repair was about $ 80,000, and the repair was $ 10,000. I lent $ 40,000 from one of my private lenders to cover my purchase price of $ 20,000, repair and closing costs, and brought home about $ 9,000 for other use … i.e. my personal account.
My intention was to restore the house in the same way as I did a couple of hundred times before.
I had teams, I knew the business, and it was just another deal. You never know, that this ugly house will soon change the rules of the game and create a completely new exit strategy, which I would use many times.
That day, I asked someone to put a sign in the yard …
Sold by owner, under repair
The next day we got a call from a guy who insisted on talking with the owner, so I took it and found out that he works in a construction company.
He told me that he could do the work himself and buy his own materials, and asked how much I would depreciate the house if he did.
Since he took me by surprise, the only thing I could say was: “I do not know. What would you pay? His answer is … 75,000 dollars.
I immediately realized that we were doing something here and ultimately curtailed the lease, choosing him a house for $ 600 per month and a non-refundable deposit of $ 1,000.
Seven months later, after he finished his work and resolved some problems with loans, we got it through an FHA loan, and my new program “Work for Justice” was born. What you said?
Well, let’s look at the facts that slowly came to my mind, and you will see what is the matter.
He repaired the house with his money, so I set aside $ 10,000 for repairs.
He was responsible for all repairs before, during and after. This means that I did not hire a contractor, had no costly repair delays, and after the sale they did not call me to fix something that I thought was fixed.
I sold the house 95% after repair, without touching it.
I did not have to deal with the search and attraction of demanding customers who are eligible for a loan.
I collected the rent for a house that needed renovation, enough to cover my interest, taxes, and insurance.
I knew that if he leaves, it will not be worse for me than when I put him in the house, even if he does not make repairs.
Then I sat down and made a comparison of what I did in this Work for Equity deal with a standard rehabilitation agreement. It looked so …
Rehab Deal Jobs for Equity
Sale price $ 80,000 $ 75,000
Rent raised $ 0 $ 4200
Buy $ 20,000 $ 20,000
Repair $ 10,000 $ 0
Sales cost $ 8,000 $ 4,000
Interest (12%) $ 2400 (6 months) $ 2800 (7 months)
Cost of ownership (taxes, fees, maintenance – about $ 300) $ 1,800 (6 months) $ 2,100 (7 months)
Net $ 37,800 $ 50,300
The tenant, the buyer, made all repairs with his own money.
I didn’t have any marketing costs for the sale, and my concession to the seller on the closing costs was much less than you would pay to close the buyer new financing, and the buyer has time to save some money to cover the costs.
Ok, which is better? Do you need a minute? It is right; I earned 50% more money without doing rehabilitation. Amazing huh? I know that I was in shock. But I discovered a completely new exit strategy that no guru told me about and continued to dozens of these deals.
And still do today, 30 years later.
Recently, for the first time, I taped the one-day Work on Justice seminar and included everything I learned in the 30 years that have passed since my first work on Justice.
Now you have the opportunity to gain my 30 years of experience in the smallest details for a small amount, and all of them will be returned with the first monthly payment, which you will not make on a vacant rehabilitation pending completion by the contractor and the buyer. to qualify.
Here is what I reviewed:
Which houses are the best candidates and who are the best buyers. Get it wrong, and working for justice will not work.
Why your profit after taxes can add another 20% to your network for Work on capital, which you will always lose on rehabilitation.
How to lend personal money in order to make sure that you do not have outgoing monthly payments, have excess casha minimum of $ 10,000 per day of purchase and how to avoid the deadly traps that many investors fall into due to lack of experience. You have mine.
Why work for justice is an ideal solution for all transactions that, in your opinion, require work, and you do not have money to fix it.
What you should always do during the first 30 days to have a second
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Course Features
- Lectures 0
- Quizzes 0
- Duration Lifetime access
- Skill level All levels
- Language English
- Students 154
- Assessments Yes
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