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July 01, 2023, 02:38:03 PM |
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Let's go back to 2019. Pre-covid.
Apr was around 3.8 FHA required 580 credit score.
And you could pretty easily get approved for 80-120k for your first home, and there where options! Cash buyers where only grabbing 1 out of 5 houses on the market.
Well, I didn't have my shit together ,didn't have long enough credit/work history (Ive always been a cash on kind of guy and have worked for myself in various kinds of employment.
Carpentry ,crypto, computer repair/sales ,carpet shampooing random hustles to make bills and ends meet.) So we had stipulation approvals that didn't really make sense , double interest rates, 10+% down and everytime we applied they wanted 20-40 credit points better each time! So even when we would get approved the terms where fuckin trash and a deterrent. Now I know the whole nations been dealing with this but I reside in Waco TX area. Home of magnolia.
So these issues propagated here, now we had a bunch of Californians selling there 800sqft shacks in Cali and upgrading to 4,000 mansions in Tx. So the inflation here propagated , we realized we where on the front lines of this battle here in Waco.
So I started approaching it different .
Looking for owner financing houses.
One of my clients I fix on his tractors every season(we also tried purchasing a RV he had once) caught wind of our goals and told us about a place he was building simply to have a better address for his grandkids to go to school. Said hed entertain selling it, we go check it out, it's a cabin sitting on 14 acres brand new (incomplete build)
This wasn't any ole cabin though, it was a steel built shop/barndominium, it had water , electric , the basic build was done , it lacked weird essentials such as lights, sockets, register covers , a kitchen, bathrooms.
A bit out of our scope at the time due to price and work needed .
Fast forward to 2023 , I'm still looking and half my heads gray or bald at this point. I never forgot about this place so I call the owner of it back up.
That house had still been sitting without a front door , weathering away.
I tell him I need a rope. And your the only one holding enough rope to pull me out.
I tell him I have 5K down will fix the house up and live on site in the RV he had untill it's habitable, and explain I want a 10 year loan on it. 6 months reprieve after down payment
I pitch a shit show of a plan (good plan but hard work and a lot to do but a feasible one!)
This place needs aerobic septic installed
Outdoor ac compressor,
Waterheater
A full kitchen, 1.5 bathrooms
A water heater
And the trim/fixens
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It has rooms, been taped bed and mud/textured/primed.
Plumbing is in and electrical pulled to all locations. Indoor ac coil and ducts installed
It's a vaulted build that very well insulated!
The cool thing is this guy really heard us out and helped cater a growth plan into it. He also did it at about half the market value (since its incomplete and has a few small issue that pertain to it being unoccupied without a front door!)
I currently pay ~2800 a month in rent at my current house and warehouse. I can build a shop out there for about the same price as 2 years of rent at my current shop.
Anyways, this has been a adventure.
If I can scratch up about 40k to finish this place out in the next 5 months I'll be in good standing ! I'll upload pics as it progresses and keep y'all up to date if wanted.
We are going to try to take advantage of the inflation reduction act to get a lot of this done ,so many incentives and rebates, it makes sense to buy the qualifying appliances.
Welp ..that's my story of how we bought our first house!
Ps.we only get 1 acre of the 14, but we get to use the other 13 untill it's sold!
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