Sandra made $31,351 by using a contract for deed to maximize profits!
I purchased a house at 38 Sorrellwood Lane, Sharpsburg, GA 30277 from the owner by using a Contract For Deed for a term of 36-48 months for $175,000 and I put $10 down. My monthly payment to the owner is $939.38. I already have an application for a tenant buyer to lease option it from me for a term of 36 months for $1395.00 per month with $5,000.00 option money down for an agreed upon purchase price of $189,000 in 36 months.
$189,000 Sale price in 36 months to tenant buyer
-$167,781.00 Estimated seller payoff in 36 months
-$5,670.00 Estimated closing costs
-$600.00 Rehab costs to date
$14,949.00 Sub total
+16,402.00 Positive cash flow over the 36 months
I originally had made an offer on this property to purchase, fix and flip but the appraisal came back significantly lower so we could not purchase it for cash. So instead of walking away we re-negotiated the deal with the seller and came to an agreement to do a Contract For Deed to get the the most money possible and still make us a good profit as well.