I was in one of my fix-n-flip homes when I recieved a phone call from another investor. He was wanting to assign me a lease option contract he had on a 2-plex in a low appreciating part of town that had one vacancy. The other tenant had just moved in and had no payment history. Kind of risky, so I said, “Sure, I'll buy the contract off of ya.”
I met my fellow investor at the property and saw all the for rent signs in all the other duplexes in that area. Risky. I toured the property, signed the assignment contract and paid off the investor. There is about $10,000 in equity in it now and there will be even more after the three year option is up because of principle buy down and some appreciation.
On my way back to the fix-n-flip property a lady followed me and got out of her car when I got out of mine. She said she saw my car magnets and needed a place to rent ASAP. I showed her the 2-plex, did a back round check and filled the unit! It's now cash flowing $238 a month and I also have the equity coming to me as well. The best part is that the loan is in the sellers name for 3 more years!
The lessons I was reminded of was to always cultivate relations with other investors, take the risk & have car magnets!
Colorado Springs, CO
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