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March 22, 2018

Real Estate Purchase Offer and Receipt for Deposit - 1979

In May of 1979, at age 30, I put together a real estate partnership with two of my high school friends and my real estate sales partner. Together we purchased the Adams Avenue Car Wash in San Diego.

Life was simple then, look at the simplicity of the purchase contract two pages total. We had to fill it with our content. We used a residential form for a commercial purchase :-)

Our little group put $50,000 down ($12,500 each) and the owner of the property carried the $130,000 balance in the form of an AITD (All Inclusive Trust Deed/Wrap Around), secured by the property, at 10% interest per annum, Interest Only payments.

Escrows were a little skittish about doing "wraps" so one of my partners, Dwain Knapp and I, both fairly new brokers, bought an AITD form at a stationery store, filled it out, and submitted it to escrow.

We still own the carwash after all these years. Yes, it is a "cash cow." The secret to success in real estate is first, buying it, and second keeping it.
(John Reilly and I have decided we are going to bring back some course material on how to go about putting together real estate investment groups and partnerships - it is called syndication).

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