I am hoping someone on here saw Matt Larson at the Edge event last month because I have a question about something he taught.
He talked about a "package deal" he made to a seller that had three separate properties. The seller was wanting $175,000 for all three of them sold separately. Matt offered him $101,300 and after a few offers he accepted it.
Matt assigned two of the units for $45,000 - making $5,000 off each for a total of $10,000. He then paid $11,300 cash on the third one and was valued at $60,000. He then said he called his bank and got them to refinance the house and was able to put $50,000 cash into his pocket tax-free.
I am confused as to how the $50,000 is profit since he now has a mortgage to pay on it???? What am I missing???
I am hoping someone on here saw Matt Larson at the Edge event last month because I have a question about something he taught.
He talked about a "package deal" he made to a seller that had three separate properties. The seller was wanting $175,000 for all three of them sold separately. Matt offered him $101,300 and after a few offers he accepted it.
Matt assigned two of the units for $45,000 - making $5,000 off each for a total of $10,000. He then paid $11,300 cash on the third one and was valued at $60,000. He then said he called his bank and got them to refinance the house and was able to put $50,000 cash into his pocket tax-free.
I am confused as to how the $50,000 is profit since he now has a mortgage to pay on it???? What am I missing???
Thanks for your feedback!!
Robin
Robin Pike
R.A.D. Investing