Hey Team - 

I'm sitting in the "grille" at Ice Line in West Chester, PA waiting for Alex's Quinnipiac club hockey team play it's first game of the AAU national championships. Just like I was excited for Andrew last week .. I'm equally excited for Alex. Let's to Bobcats!

I need to share with you a cool turn of events regarding my deal on Catalfa.

Last Friday, I visited the seller because I needed to get an addendum signed moving our closing to March 15 .. on account that I'll be in West Chester for the rest of the week.

I had a second reason for talking with the seller. While taking care of the settlement change addendum, I asked the seller if he'd consider another change - a change that was fleshed out during one of our daily Partner calls. The change was would he be willing to sell me his property "Subject To". I offered him $5,000 more than we originally agreed if he accepted the change.

If you're not familiar with Subject To .. it basically means that I'll be taking over his current mortgage payments ($1,800/mo) and payoff his mortgage ($140,000) when I sell the property after completing my renovations.

I was pleasantly surprised when he agreed to the new terms.

As a refresher .. we had agreed to a purchase price of $280,000 ... now $285,000

Originally, he was expecting about $135,000 ($280k - $140k - $5k closing costs) at closing.

Now I'm going to give him $20,000 at closing and when I sell the property, I'll pay off his mortgage AND give him another $120,000 .. netting him $140,000

The benefit to me is two-fold:

1. My Cash-To-Close on the purchase drops from roughly $60,000 down to roughly $27,000

2. I don't have to get a hard money loan saving me roughly $15,000 in financing points and interest.

I may be a bit biased, but that sounds like a Win-Win scenario.

To really wrap up this deal in a bow, I'm working on an exit strategy that will end up paying me 2 or 3 ways. The details aren't finalized yet, but should be in the next few days.

Stay tuned ...