Actually, my mother-in-law, it sounds better to say mom. My mother-in-law approached me in May to invest $ 100,000. He had the money on a CD and he uses it to pay his monthly health insurance premium. CD rates had dropped dramatically, and if you renewed, you wouldn’t be earning enough to pay the premium. She has a steady income and has to earn at least 3% of those funds to have enough to pay the bill. She asked me what to do. How bad is it when you have to struggle to find an investment that pays 3%?
I explained to him what we did and how he could earn at least 8.5% of the money or he could use the money to do wholesale business. She was initially excited that she would more than double what she won last year. Then the inevitable happened. He started asking family and friends. They acted predictably, as did the media. They told him it was too good to be true. They told him it was too risky. They told him there was no money in Real Estate and that he was making a big mistake. He ended up investing half the money in a CD and the other half as a 6% unsecured personal loan for, of all people, one of the family members who said the Real Estate (which, by the way, is an investment guaranteed). The option was too risky. Amazing!! You will most likely never see that money again. I pray that when that time comes, I will be compassionate enough not to gloat and say “I told you so.”
Back to the deal he had found for her. I found two brick ranches in the greater Atlanta area. One was a 3 bed / 1 bath, the other a 3 bed / 2 bath. We found another investor who decided it was an amazing deal. He bought the houses for $ 14,300 and $ 14,742. He chose to have us test and wholesale the deals instead of rehabbing and renting them. We ended up selling both houses to you in less than 30 days. The sale prices were $ 24,000, the other $ 24,375. That would be a gross profit of $ 19,333. I admit it, it sounds too good to be true. But is not. We find deals like this every day. We were a bit lucky, being able to sell both in such a short time, but it is not that uncommon. Most of our investors choose to rehabilitate and rent the houses. Those houses would each rent for at least $ 900 a month. One of the houses had around $ 15,000 in rehab, the other around $ 9,000. If the investor chose that route, they would have invested a total of $ 53,042 in the two houses, generating about $ 1800 / month of cash flow. It’s not bad at all. Considering that the houses will probably be worth $ 90,000 in 3-5 years, I would say that it is a very smart investment.
Moral of the story, DON’T BELIEVE THE HIPE! These offers are real and available. Those who take advantage will be reaping the benefits, while everyone else will fight to earn their measly 3% on a CD. I hope you are one of the few to jump into the game and take advantage of these amazing offers.
