I’m sorry it has been awhile since I’ve last written. Things have been extremely busy, but I am very happy to report that despite my ‘projected plans’ for investments, etc., a unique opportunity came my way and I now am under contract on another investment property! This property puts my total real estate investments now at 4 single family homes!
This was quite the blessing and (completely out of the blue, to be honest). I think there are a few famous sayings that really apply to what happened with this situation: first, opportunity favors the bold; second, help others get what they want, and you’ll get what you want;and third, you really can buy properties with no money down (albeit, this was a unique opportunity). You’ll see more how these apply in the rest of the post below. They came to mind very quickly as I was reflecting on this experience.
Nonetheless, I’m excited about this investment deal, and I’d love to share the details with you now:
This situation came about when my friend, who frequently listened to me talk about real estate in the past, came to me with a unique problem he was facing: the short story of his problem was that he had a lot of liquid assets that he was ready to invest and wanted to purchase a home. But he was also about to not have any monthly income for the next three years: since he was about to start Law School, he literally would go without a steady paycheck for the next three years. But, he really wanted to buy a house as well, and he had the money to do so. Unfortunately, however, despite his very sizable assets, the banks were unwilling to qualify him for a mortgage, since he would not have any monthly income for quite awhile. Now, I personally could go into detail about how stupid (in my opinion) the banks are for denying someone who has 150% of the home’s purchase price in liquid assets, and an over 800 credit score, etc. for not qualifying him, but I’ll save that for those that would like to hear more in the comments.
Anyway, my friend approached me and asked that if I would cosign with him (as me being the opposite of his problem: someone who has a steady income, but very little liquid assets! :), then in return for my assistance (really just my signature), he would purchase a second property with me as well in which he put up 100% of the downpayment, but we would split the cash flow, the equity, and the appreciation 50/50. I also would be responsible for finding the property and completing most of the legwork to get the deal completed, but note that I didn’t have to put ANY of my own money into the deal! I was more than willing to pursue this partnership, and I invested a considerable amount of time to make this happen. Remember, I would get 50% of all that this investment generated.
After a thorough analysis, this was a win-win for both of us, and so here we are, less than three weeks later, under contract on what I think will be an excellent investment property.
Here is a picture of the kitchen, my favorite part of every home, and showing a picture of the kitchen is something I show to viewers of this site with all of my properties. Without further adieu,