LandInvestors.com Forums +Success Stories+ My First Terms Deal!

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  • #1726

    Luke Smith
    Moderator
    Post count: 1263

    Bought a 5 acre parcel for $629.10 all in. Sold it on terms for $100 down $100 a month for 28 months. Was offering it at $1,400 cash.

    That is 460% when it is all said and done.
    Profit $2,270
    Craigslist buyer too.

    This is fun!

Viewing 15 replies - 1 through 15 (of 17 total)
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  • George Dean
    Participant
    Post count: 76

    Rock on!

    Are you posting the CL ad in the SAME area as the property?

    Just curious

    George

    James Skinner
    Participant
    Post count: 14

    Nice job, Luke!

    Jill DeWit
    Participant
    Post count: 439
    ProAdvancedStaffPrincipal

    Congratulations!

    Chris
    Participant
    Post count: 252
    Pro

    @luketsmith

    Isn’t it surprising how people are so interested in that terms deal, even when it’s double the price?

    S. Jack Butala
    Participant
    Post count: 101
    ProAdvancedStaffPrincipal

    @diego79

    Payments rule this environment. You can charge any reasonable price for property as long as the payments are around $100.00 in most places.

    Its all about getting control of the property as inexpensively as possible.

    Great job, @luketsmith

    Luke Smith
    Moderator
    Post count: 1263
    ProAdvanced

    @george
    Yes, same area as the property.

    Got a reply asking if I want to buy 10 parcels off my ad to sell one. They seem interested in the $100 an acre I proposed but I am guessing they are shopping around for the best buyer. I am probably in a stack of other replies they are looking at. Should of tried $75 an acre.

    @diego79
    The terms were priced to point to the cash price. Figured I would price it where I would be happy to accept.

    Does anyone have a terms agreement I could start with? This guy started paying already but wants an agreement.

    Since selling this one I got two other buyers saying they want it even though I marked it sold everywhere. My buyers list is growing.

    Thank you

    mike dugan
    Participant
    Post count: 65

    Great job Luke!

    Luke Smith
    Moderator
    Post count: 1263
    ProAdvanced

    Got two more terms deals today!
    Bought 2 X 2.5 acres for <$700 all in each. Listed for $1,500 each or 100 down 100 a month for 30 months each. Buyer took both on terms and is so happy to get them! He called me while standing in line at the post office to buy me money orders. Trying to post up more deals as fast as I can go. 14 sold, 3 currently listed, 16 to be listed. More still in some form of closing.

    Ben H
    Participant
    Post count: 77
    Pro

    @luketsmith,

    Congratulations and thanks for continuing to post your successes! I’m interested in doing mostly terms deals once I flip a few (we’re in the process of buying the first two from our first mailer in New Mexico but got our first call on our second mailer which is in California). The caller left a voicemail saying he has an additional (7) parcels he wants to sell – I almost fell over. Anyway, great job and thanks for sharing!

    Luke Smith
    Moderator
    Post count: 1263
    ProAdvanced

    @bhughes
    A seven pack! Sweet. You know that is a lot less recording fees and ppwk right?

    Maybe you can do some kind of deal to buy one at a time over a while. You will probably buy them faster when you get into it.

    The terms deals are not what I was planning hence the crazy pricing but if someone wants to pay double to get terms I am willing to oblige.

    Double the asking price is 4 times my cost! The two today basically add 5K to my net worth. I can get used to doing that a couple times a day.

    Claire
    Participant
    Post count: 138
    Pro

    Luke you’re absolutely killing this! Also, way to go, @bhughes, sounds like you are well on your way.

    So, Luke, I’m also getting interest in terms deals, but since I haven’t done one yet, can you tell me how exactly you are accepting payments? Is it their credit cards over Stripe, or are you doing some sort of autowithdrawal from their bank account or do you just have them send you a check each month or something else?

    Claire

    Aaron
    Participant
    Post count: 96
    Pro

    I am also interested in how you are tracking your incoming payments Luke. What are the customers wanting to do?

    My preference will be to have a check mailed because I am already set up to accept rent payments each month so that will be easiest for me

    Luke Smith
    Moderator
    Post count: 1263
    ProAdvanced

    @lake17
    @astewartconst
    I like buildium.com. it is property management software that bills, collects, records ect.

    It is my operating system for this and other rental properties.

    I highly recommend it after researching lots of them.

    Type the terms in and let the software do the rest. It is also on my phone so I can book money in when opening my mail. Or book stuff out and to do list task stuff etc. Contacts too.

    When you set the new “tennent” up in there they get their own account. Log in and everything. They can see their late fees, they get automated notices with a pay here button.

    Luke Smith
    Moderator
    Post count: 1263
    ProAdvanced

    It also notices you when the terms are about to end and ended to go record the transfer.

    Brandon C. Heath
    Participant
    Post count: 1

    Congrats @luketsmith

    @astewartconst
    @lake17

    Also since I saw that some of you asked about ways to track and collect payments. I use a site called Wave App (no affiliation) for my photography business. This will be my 3rd year with them and they are pretty amazing. You are able to set up recurring bills and end estimates as well as invoices.

    Take a look and see if its something that might help you.
    https://www.waveapps.com/

Viewing 15 replies - 1 through 15 (of 17 total)

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