I just drove by the house you have for sale on Frost Drive – is it still available? No, I said. We put it under contract a few days ago. The voice on the other end of the line then asked, do you have any others like it for sale? Unfortunately, we don’t I explained.
The caller’s name was Don Price. A semi-retired engineer, he moved into his dream home – located in a 55+ community – about three years ago. Not long after that child protective services showed up at his door with his three grandchildren. Unable to stay in the neighborhood because of the age restriction he was forced to sell.
And here’s where it gets tough – Don was over $150,000 underwater on his mortgage. The only option for him was a short sale.
As you probably know even with a stellar credit score a short sale will keep you from buying another house for at least three years. The FHA, Fannie Mae and Freddie Mac won’t do it. Don Price knew this too. So he called me when he saw our sign in front of the house on Frost Drive that said NO QUALIFYING – FORECLOSURE – BANKRUPTCY OK.
I told Don we didn’t have any others for sale in the area but we could probably find him a similar home. As it turns out I didn’t have to – Don found it for us. He checked on the internet everyday and drove around the neighborhood looking for new for sale signs.
The house he found was owned by Bank of America. It had been flooded, presumably by the prior homeowner. We bought the house by partnering with an investor that had a self-directed IRA, remodeled it and sold it to Don using seller financing. We closed on Christmas Eve.
There are millions of former homeowners just like Don Price. Their only mistake was buying a home at the worst possible time in American history. We recognize that this is a crisis but with crisis comes opportunity.
What I like most about seller financing in this marketplace is that it creates a win-win-win-win. Don wins because he gets a second chance at homeownership. Our management team and investor partners win because we get an above average ROI. Finally, the neighborhoods we buy in win too because we put families into homes that were once an eyesore.
Last month, we posted a video tour of the home we bought for Don Price and his family BEFORE we started the remodel. Check out the amazing transformation in this video we shot after the rehab was complete.
Happy New Year from Free Real Estate Education!