[Halfcan]

Originally Posted by Hog's Gone Fishin

Thought I'd share my productive day today.

So I bought a property 5 years ago for $118,000. Bank financed 80%. seller financed 20%.

I rented the property out on a Lease/option 5 year contract. This means at the end of 5 years the tenant has the option to buy the property on the agreed price which was $148,000.

During this 5 years the tenant is responsible for all maintenance and repairs so basically all I had to do was acquire the property ,clean it up and rent it out. I spent less than $1000 initially on a few things to get it ready.

Over the contract I gave the tenant $300/month credit toward the purchase price. They executed the contract a few months early so the credit ended up being $16,800. They had not so good credit initially but used the 5 years to get it cleaned up. Around 700 score now.

So for some stupid reason the bank demanded a 20% down payment from them which was bullshit and left them short.

Anyway to make a long story a little shorter, I financed $12,300 of their down payment as a second mortgage at 7% interest over 5 years with an annual payment of $3121 due every May 28th. I got a check for $43,000 and some change and never put a dime into the property other than the initial cleanup. Less than $1k.

Real Estate has always been good to me. I really need to just pull my money from any stocks and just put it all there.

I have a property I bought 12 years ago for $40K as a bank repo also. I did the 5 year with another family for the price of $84k. They remodeled the house, installed new CH&A ,roof , got divorced and left the property.

I went in and replaced the windows, garage doors and painted .Did a new 2 year contract due to execute for 120K next May . That property is already paid off so capital gains are my only worry then.

**** stocks!

You are Chiefs Planet's version of Carlton Sheets!