Did This Real Estate Investment Deal Really Happen???

Sometimes in real estate investing you will lose deals that you should have gotten. On the other hand, you will make deals that are practically impossible to make. Real Estate Investing can be unpredictable. Just when you think you got it all figured out, something crazy happens… Just like what happened to me this month.

I purchased this house on a Subject -To deal (a subject-to  is when you buy the house and leave the existing mortgage note in place. You will continue to make payments until it is purchased by someone with the intent of them getting refinanced sometime in the future.)

Well, I purchased this house a couple of years ago when the market was really doing good. I got a sizable down-payment and the people that purchased it from me could no longer make the payment .

So we worked out a deal and they move out. The house was upside down (meaning there was more owed on it than what it was worth). The house was in one of the most desired neighborhoods in the community. The house needed a lot of repairs. So what was I to do?

The payments was behind because the people I had sold it to in the beginning had left a few months earlier. So at the suggestion of another real estate investor friend, I placed a sign in the yard. For a month I had calls on the house almost every day. People had money to pay down but not enough to cover the payments that was behind.

I knew the house would go into foreclosure at some point. But then I got a call one day and the person on the other end of the phone wanted the house very badly. He had a down payment but not all that was needed to catch up the payments. I thought on it for a few days .

I decide to tell him the payments were behind and the house was upside down. If he wanted it then he would have to take it with those condition. He said let me think about and I will call you in the morning.

The next morning I got a call from him telling me he wanted the house and that he will take over the payments.

He paid me a down-payment. We fixed up a contract stating all of the concerns I had with the house and he would be taking over it.

This was a deal I never thought would have happened — real estate investing is unpredictable.

You just have to get started