Ever Stumbled Upon an Opportunity that Seemed Just Right?
That’s what 230 Mesquite Street in Senguin, TX was for us. The property came from a motivated seller, recently divorced and planning a move overseas. She needed to sell quickly, and that’s where we saw our opening.
Here’s the deal: the house had an ARV (After Repaired Value) of $140,000. We negotiated it down to $91,000.
Can you imagine?
And guess what? It was in great shape, needing only $1,000 in minor cosmetic repairs and landscaping. With closing and carrying costs at $3,000, our total investment needed was just $95,000.
Now This is Where it Gets Interesting
A private lender stepped in with the entire $95,000. Yes, you read that right – the whole amount. We closed the deal, did the minor updates, and within days, the house was market-ready.
We decided to market it as “Owner Financed,” and here’s the kicker: it sold in just five days for $149,500 on wrap financing. This not only ensured a quick sale but also created a fantastic financing structure for everyone involved.
Here’s How the Numbers Played Out for Our Private Money Lender:
They received $675 monthly in interest-only payments for six years. Over 72 months, that’s $48,600 in interest. Plus, they get their $95,000 back at the end of the term.
Talk about a solid return!
This wasn’t just about making a deal; it was about creating a win-win situation. The property required minimal work, the financing benefited all parties, and the house quickly found a new owner eager for the owner-financing terms.
So, What’s the Takeaway Here?
It’s simple. When you leverage private funds and recognize an opportunity, you can turn a motivated seller’s urgency into a profitable venture for everyone. Our private lender walked away with a solid return, and the new homeowners found their perfect house through creative financing. This project at 230 Mesquite St is a prime example of strategic investment and the undeniable value of private lending in real estate.
I had the opportunity to do business with Steve Carlson and he is the most honest business person that I can say that I have done business with. The transaction went very smooth, he was on time and everything he told me that was suppose to happen was as is. He is a real business and professional person. I am very pleased with the transaction. He is an asset to the business.
