Women Invest in Real Estate WIIRE 043: 3.625% for 26 years with Creative Financing: Deal Deep Dive with Amelia & Grace
Hey everyone, welcome back to the Women Invest In Real Estate podcast. We are so excited because, in this episode, we're going to talk about a creative finance deal that Grace just did and is probably one of the best creative finance deals she has done lately. We have both been so busy doing our own thing and keeping our businesses in line that Grace has not even shared these deets with Amelia so it’s going to be a good conversation! Let’s get started!
But first, you haven’t already (especially if you’re new to creative financing), we highly recommend listening to the episodes in our Creative Financing mini-series with Jenn & Joe Delle Fave. Find them all here:
How She Found The Deal
This particular house/deal was found through one of our favorite sourcing methods, referrals! A friend of Grace’s told her about this person who was looking to sell their home only a few years after they originally purchased it due to some major life changes. She reached out to the seller and the seller was super responsive to her offer, and they had already built that know, like, and trust factor in play here which immediately set them up for a successful deal, especially since it needed to move quickly.
Grace bought the house via a wrap mortgage, taking over the owner's debt, buying the house, and owing what the house was worth. She really did not have any equity, basically owing what the house was worth (about $77,000 owed on the house). Grace offered the seller $91k, less the newly surfaced issues from the sewer repairs, which were estimated to cost roughly $12k bringing it to about $79k. The seller jumped at the offer and it was a done deal.
Here is an approximate breakdown of what Grace paid for the deal:
- $270 at closing
- $10k sewer repair
- $1k referral fee
- $1k attorney fees
Some of the most common questions Grace will answer in this episode are:
- How do you make her mortgage payment?
- What about insurance?
- Did you buy the house in a trust?
- What are the risks of creative financing?
- Where did you learn everything you know about creative financing?
Thank you for tuning in, friends! We hope you’ll join us on May 17 & 18 for our Virtual Summit where we’re bringing together top real estate investors from across the country to share their insights, strategies, and success stories!
We’ll catch you in the next episode!
Resources:
- Listen to the Creative Finance series: Ep 35, Ep 36, Ep 37, Ep 38
- Use the code WIIRE to get $250 off the Creative Financing Playbook
- Leave us a review on Apple Podcasts
- Leave us a review on Spotify
- Join our private WIIRE Facebook Community
- Connect with us on Instagram