This last week we were able to close on two deals that likely would have never consumated and closed. This market is fabulous for creating win win transactions with creative techniques that benefit all parties. In addition, it makes deals close in a market where they would likely sit and never sell at all. That is why we are selling properties and our deals are closing.
Examples from THIS Week:
1. Our fixer upper property was under contract for $158,000. After all evaluations were complete and the day of closing arrived, we found that the buyers partner did not have his half of the money. Therefore, IT WAS DEAD. So rather than take the buyers earnest money and put it back on the market with 8,600 other homes I asked the question. "How much money was promised by your partner?" "What if I could provide you the money you need to make up for your partners lack of funds, would you still close?" Therefore, he came in with 30% down as required by the bank and we did a 10% carry back for 3 years. He was happy to save the additional 10% and my seller was ecstatic to earn a higher percent on her money than the bank would or money market would yield her.
2. We had a buyer that had $40,000 cash down but no credit. Also, they did not want their payments to exceed $2000 AND wanted a $500,000 home. Is this reality or fantasy land? Well...this is what we did. We searched the MLS and found a builder/agent wanting to sell. I proposed a few options and our goals, in the end we closed at $470,000 at a 5% rate for 5 years!!! No mortgage insurance and $40,000 down. Not only is that a good deal, the TERMS are powerful!
3. I am currently negotiating on an income producing duplex for myself. The term would be for 4 years at 8%. Sounds a little high but in reality by the time I am saving the cost of no mortgage insurance, no closing costs, and the ability to raise low rents to market rates, it really is the deal of the decade.
My point is this. This market has some deals that people really think would never happen or are simply over looked. So, just remember there is sunlight through the clouds and there are deals everywhere. Just think about it a little longer and be creative and ask, "how could I make this happen?"
