I’m sexy and I know it. Thank you LMFAO, a techno rock music group, for teaching my 9-year old daughter this catchy little tune:
When I walk in the spot, this is what I see
Everybody stops and they staring at me
I got a passion in my pants and I ain’t afraid to show it,
I’m sexy and I know it
LMFAO (the band) is not an urban acronym for laughing your backside off. According to their Wikipedia page, it stands for loving my friends and others. Regardless, I miss the days my little girl would beg me to play the Wiggles’ popular hit Toot Toot Chugga Chugga Big Red Car.
I’ve often said that fixing and flipping houses is sexy. TV networks and real estate gurus make it sound so cool.
In baseball terms, flipping is like a home run. It’s an 80-yard touchdown pass in football or a slam-dunk in basketball. Conversely, buying and holding and seller financing, both more long-term investment strategies, are baseball’s version of the weak bunt back to the pitcher, or a 1-yard football run. Yawn.
The truth is I’d abandon my fix and flip business tomorrow if I could raise enough capital and create enough cash flow to focus solely on seller carry backs.
Because with fixing and flipping I have no control over THE most important part of the equation – having a qualified buyer ready to pay my price for the home. And unlike a rental property, all I have to do with a seller carry back deal is collect the check every month. I needn’t worry about property management, running toilets or leaky roofs.
Last year, I sold a house in Peoria, AZ for $140,000 and carried back a note of $124,000 at 10% interest. The buyer made 10 payments and then defaulted. I got the house back two months later and sold it again this weekend for $155,000 to a well-qualified buyer.
I have two other performing carry back deals that generate $1,400 a month in positive cash flow. In four years when these notes mature I’ll be able to purchase 3 more properties and start the party all over again.
That’s sexy and I know it.Bringing Sexy Back to Seller Carry Backs by Marty Boardman