LandInvestors.com Forums +Success Stories+ First Term Deal

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  • #1243

    mike dugan
    Participant
    Post count: 65

    Just got the signed contract/downpayment in the mail for my first terms deal. This is breakdown:

    Total all in cost on property (1.15 acre, great Colorado views/area): 1450.00
    Sold for 9,995.00, 1,500.00 down
    Financed balance of 8495.00 at 12%, or 127 per month for 9 years and 2 months

    If he takes full term to pay off loan, I will have received 1500.00 down, plus 127 * 110 months (13,970) for a total of 15,470.00
    This is about 116% compounded annual interest (used Excel PMT function to calculate).

    Buyer gets bonuses each year, so he will probably pay off early. This would lower total amount of money received, but will bring my rate of return up.

    Another way to look at it: I have recovered all upfront cost with downpayment, so basically this property is giving me free and clear around 1525.00 a year for up to 9 years!

    Keep at it everyone – this stuff can really happen if you take time to buy right.

    Mike

Viewing 8 replies - 1 through 8 (of 8 total)
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  • Justin Holm
    Participant
    Post count: 15
    Pro

    Great Job! What is the guy paying you every month? Get enough of these under you belt and you will have a nice monthly cash flow coming in. It is awesome. It will be nice to have a few extra thousand dollars coming in every month that you do not have to really doing anything for other than deposit a check and record the transaction.

    Luke Smith
    Moderator
    Post count: 1263
    ProAdvanced

    Sweet one Mike!

    What paperwork did you use?

    Where did you find the buyer? Craigslist?

    mike dugan
    Participant
    Post count: 65

    Yes, craigslist for buyer. contract I got from another land seller that looked pretty solid.

    Aaron
    Participant
    Post count: 96
    Pro

    Awesome Mike!! Congrats

    George Dean
    Participant
    Post count: 76

    @rdiienno1

    Did you mail specifically for 1 acre parcels?

    Or was this a “Do you have more land you’d consider selling?”

    George

    mike dugan
    Participant
    Post count: 65

    @george Dean
    was a ‘hey, I have another if you would like to buy’ situation. I had mailed him on a 5 acre parcel initially.

    George Dean
    Participant
    Post count: 76

    Makes sense!

    Thanks
    GEorge

    Chris C
    Participant
    Post count: 50

    Very inspiring. Thank you Mike! And thank you for the numbers break down!

Viewing 8 replies - 1 through 8 (of 8 total)

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