Here’s a real rental property deal that went down with an Indianapolis property Empowered Investor Network recommended to one of our clients at the end of 2008. The house was a 3 bedroom, 2 bathroom structure built in 2004. As a foreclosure, there was a certain amount of repair and rehab to be done but the bank agreed to sell it for $57,000.
The down payment of 20% plus closing costs came to a grand total of $12,000, so that was ALL the buyer had to bring to the table at closing. This is also the point at which his association with Empowered Investor Network began to pay off in a big way.
Our Indianapolis area specialist put the buyer in contact with trustworthy local contractors for the rehab and repair. This cost another $12,000 but ended up to be money well spent when the house rented out for $1,050 per month on a 12 month lease. Since the owner’s monthly mortgage only came to $461 per month, this rental property investment made great financial sense the day he bought it.
In keeping with Jason Hartman’s “Refi ‘til ya’ die!” strategy, this investor can wait for the property value to predictably double over the next seven years, at which point he can refinance the property and put the resulting money into even more investments.
This is how you get rich in real estate.
The Platinum Team
