We had to buy the place. But how? We had just gone $100,000 over budget on our home, which was a luxury item, not an investment – even with the $600,000 in equity, it’s not like we were making money on it. What could we do?
As always with a listed property, we proposed to sit down with the agent and her client. The client, a farmer, was a grouchy old farmer, who promptly grumbled “I want a good ol’ fashioned country contract. No funny business.”
“That’s wonderful,” I answered. “I can’t stand these 40 page Realtor contracts.”
Agent Bush Whack shot me a look.
We negotiated price, and when we arrived close enough, I said this: “I hate these banks and how they make you put money down and try to hold you over a barrel. Let’s keep things simple instead, neighbor. How about this – You give me your deed, and I’ll refinance and pay your price in 60 days. If we can do that, it’ll save me from putting a bunch of money down” I said, “and you’ll get your number.” (The number we had just negotiated.) Of course, the agent went to open her mouth, so I continued…“And to protect you, I’ll sign a deed back to you that the title company will hold, in case I don’t keep my word.”
I presented them with a one-page contract, and I was sure to plug Agent Bush Whack in for the full 6% commission this time, to motivate her not to queer the deal.
So, now my wife and I have an even larger farm, more privacy, and a guest house with lots of equity. But the best part, I think, that came from all of it is this great creative financing technique I now call “The Good Ol’ Fashioned Country Contract”, which I’ve used many times now to acquire residential and commercial property without putting any money down.
If any of you have questions about either no money down techniques or to acquire all 52 methods, feel free to send me a PM.
Ian Parrish, President Investors United Baltimore