New Ad, Better Days?

My new ad seems to be working much better. 6 hours into the first day I have gotten 7 calls already, 3 of which sounded very serious. Maybe the lackluster performance of my first ad run had to do with both timing and content. Lesson learned, and not too expensively at that.

I have one guy asking me if I will drop the price if he buys in one year instead of two. I told him we would see about that. I am flexible, making any profit on this first deal would just be awesome, a dream finally realized.

Once I do it once, I will know how to do it over and over. There will be no stopping me. No limit to what I can make. The harder I work the more I make. I like that idea, don't you?

First Ad Not Working

My first ad has produced only 6 calls over two days. I asked a few people in an REI forum I frequent if there was something wrong with the ad I am using. Seems the most people really don't understand what Lease/Option means, and I was told to change that to Rent To Own / No Qualifying.

The first ad ran three days (including today), I'll get the new ad submitted before 3pm so it will go in tomorrows paper.

Let The Calls Begin

I have an ad in the paper the next three days for my first lease option deal. So far, in the first few hours of the first day, I have received three calls, one was interested enough to get the address and do a drive by, the other two thought the house was too far away.

The one that seemed interested said that $1750 a month was as high as they could go, when I mentioned the option deposit she acted suprised, the asked if I owned the house. I told her no I didn't, I was just managing it, which was stupid now that I think about it.

We'll see what happens over the next few days. Good news is I have three week to get someone into it, bad news is three weeks of newspaper ads can really add up in price... got to spend money to make money.

My First Lease Option Deal!

I signed my first lease option contract today. What a rush! I am pretty nervous too, however I am sure I covered all my basis, so this should be a pretty profitable deal.

Specifics:
3 bed / 3 bath / brick construction
2450 square feet - built in 2004
Total Debt: $195,000 ($1,550 monthly)
Estimated ARV: $235,000

Stragtegy: Lease it from the seller, find a tenant buyer who needs some help getting their credit cleaned up, and sell the house in 2 to 5 years. Option Deposit of $10,000 or more will be required (contigency money), monthly payment of $2,000 ($450 spread), end sale price of $235,000.

Total Profit: $40,000 plus monthly spread total (depends on how long the tenant buyer leases before they buy). My profit will be less because I will most likely help the seller with their closings costs when the time to close comes. I am doing this because the seller is in the military, and it's my way of saying thank you to him for serving our great country. I am guessing closing costs will be around $7,000.

Now I need to find a tenant buyer! I am so stoked right now, all the money and training I have put in over the last 9 years looks like it is going to pay off!