SE Idaho was enjoying a huge building boom. One day I decided that I was going to build a home. I had a builder who promised me that I would get a good deal. When he was done building the home, my cost just to cash him out was $162,000.I was a little distraught since I would probably have to hire a realtor to sell my home. The home only appraised for $182,000. When you are making payments on a home, it doesn't take very long for that profit to be eaten up.
So I was trying to sell the home. I reluctantly offered a 2.5% commission to a buyers' agent. By the time I paid a realtor, got my own financing, and paid all the interest on this home, my commission was going to be about zero.
My home just sat there.
I was really starting to stress. Why would I borrow about $165,000 to maybe make $3000--that is-- if I was lucky after all my costs?
A guy from Utah came and said that he was trying to workout some of his business debt, but he would pay me the first 6 months rent of $1300 per month up front and put $5000 down on the home.
This gave me $12,800 right up front. I remember thinking to myself, "What a great human being to bail me out of my situation."
I was excited. He said that he would pay be $185,000 for it in 12 months which was $3000 more than I had it listed for.
Holy cow! I was pumped.
As a realtor, I was used to seeing $3000 commissions, but not $12,800 in one pop.
So 6 months went by and then he started paying me $1300 per month on rent.
I thought to myself, "Good heck this is easy money!" My payment was only $1140, and he is paying me $1300.
I never had to beg for this money. He paid it promptly.
As the 12 month mark rolled around, I started to get cocky and said that he either needed to buy the home, or I was raising the rent to $1800 per month.
After all, no one would walk away from $5000. Plus this guy had put in a lawn and partially finished the basement.
This story is to be continued.
burkebennett@hotmail.com
http://www.seidahohomes.com/
1 comment:
Hi Burke, we are glad to see you were truthful, except you did say your father in law was financing the home, yes we did have to walk away from our HOME and all the money we had put into it because the rent was going to 1800 and the sale price was going up, We could not afford that especially having five children, we would have never done the improvements had we known this was going to happen, think you were distraut, you have no idea. we were only a few months from being able to buy the home. the rent to own market is a horrible option, it is not good for anyone, maybe burke. we drive by that house often its been empty a lot, empty again now isnt it? When we asked burke for some reimbursement for the improvemnts it was a absolute no.
Our $5,000.00 deposit was more than enough to replace the carpet and paint the other money for the yard and Basement was MORE PROFITS FOR HIM, WE GOT NOTHING good out of this.
To be continued
Dave and Danielle
Post a Comment