True stories are always the greatest teachers, since there is truly a sense of realism, and one can relate better to true stories. It's kinda like watching a movie that in inspired by true events, they just seem to be better movies. They just 'hit home' more than a sci-fi movie. They can make you laugh out loud, feel inspired to take action, or they can make you cry.

Don't worry, I?m not going to make you cry (today), but I am going to tell you a true story. The numbers on this deal weren't the greatest, but that's just reality. The creativeness and swell negotiating is what makes this one worth sharing. So here I go?..

July 2006, just about a week before the tax deed auction was about to take place in the Courthouse, we mailed yellow letters to everyone on the list. We got a couple of calls, but most people pull themselves out before it gets to the sale. This one lady in particular, however, was in a different boat. Her husband was diagnosed with cancer, and was in the hospital at the time. She was struggling to make her bills, and was about to lose her house at the tax deed sale. She called us THE DAY BEFORE the sale. Didn't leave us much time to do any due diligence.

Anyway, she had inherited this property form her father, about 5 years ago, owned it free and clear, and it was currently occupied by a tenant paying $450 a month in rent. There were 3 years of unpaid property taxes, which is why she was about to lose it the next day to the tax deed sale. She had no money to pay the property taxes, so she called us.

We agreed to pay $20,000 for the house , with her Owner Financing the Entire Amount. She agreed to take $450 per month (which the tenant was already paying!!) until the loan was paid in full (which would have taken about 4 years!!). We also had to go down to the tax collector's office and pay the $3500 in property taxes before it went to the sale. So we did. No title search or anything. We didn't have time to. But we took the risk. We had to. It was too good of a deal to pass up. Talk about time crunch. By the way, she called us at about 1:00 p.m., so we had roughly 4 hours to get downtown with a cashiers check and pay the taxes.

ARV $ 100,000

Repairs $20,000

Our purchase price $20,000! Holy moly, I say.

Everything went fine and we closed on the deal with our attorney.

The seller called me about 3 weeks later and asked me if I could pay her off in cash. She said she would take less, but she needed some cash to pay her bills and take care of some of her husband's medical expenses. She was a pretty good negotiator, I must say, because we went back and forth for a couple of hours on the phone. We mutually agreed to pay her $7,000 for a satisfaction of mortgage- as long as I could get her the money THAT DAY, Guess what I did? I got in my BMW, drove to the bank, and got her a check for $7,000.00.

Total acquisition cost = $10,500.00 AND there is a tenant in there paying $450.00 a month.

Think you could have negotiated that kind of deal with a bank or even a private lender? No way. Only a seller, my friend. Now go out there and scoop up as many owner financed deals as you possibly can (preferably with no interest and no payments), and let me know what your bank account looks like in 3 years. WHOO!

More info on your stop foreclosure information search:

Get Free Foreclosure Advice and Free Refinance Quotes
Get your free on-line foreclosure refinance quote and free advice from foreclosure mitigation specialist in minutes. Compare real offers from top national subprime and hard money lenders... more...

Real Estate Investing - What is an REO?
For the novice real estate person, the terminology surrounding real estate and real estate investing can be difficult to understand at best. Real estate agents spend many years studying these terms and words. When trying to better understand real estate, the term REO may come up. An REO refers to a ... more...

There are Three Common Ways To Buy Foreclosures
The most common and profitable ways to begin with real estate foreclosure investing Dealing directly from a homeowner in default, which is known as a pre-foreclosure or a short sale rates number one on the list. These are the good deals that will show the most profit. With adjustable loans ... more...

What to Really Expect When Buying A Bank Owned Property
In recent years, most new buyers wanted to buy a new home from a homebuilder. Today, nearly every buyer I pre-qualify today says the same thing. ?I want to buy a bank-owned property.? In some counties around the country, foreclosures are at all-time highs. As a result, in today's market, the best ... more...

Five Ways to Find Real Estate Deals
Let's look at some of the best ways to find real estate deals. Pre-Foreclosures. These are usually published in a local business publication or at the county recorders office. Most of the homeowners are very motivated to sell their home because they can no longer afford the monthly payments, they ... more...