Request to clarify a certain statement in your Income For Life eBook
by Ron
(Toronto)
On page 34 of the book, the second paragraph mentiones: "...Plus at the time of sale to my tenant, I get my down payment of $11,650 back..."
I DO understand the $140,000 less $4,500 less $7,200 less $116,500 = $11,800 profit. However, The closing Cheque of $23,450 is the sum of two amounts: the $11,800 profit and the amount of $11,650.
I would like to undestand who exactly pays you back this $11,650 down payment? Is it the tenant? Is it the lender from whom you initially obtained the mortgage?
If it's from the tenant (who now is buying the house from you) then I can not see where in the details provided about the whole arrangement with the tenant it was mentioned that he/she will pay you $11,650 IN ADDITION to the $140,000.
If it's from the lender then again, I can not see where was it discussed that the lender would pay you back your $11,650 down payment.
Your clarification would be appreciated.
Sincerely,
Ron.
