Best Deal Ever Show #7: Infinite ROI Through Owner Financing

Best Deal Ever Show #7: Infinite ROI Through Owner Financing

2 min read
Ken Corsini

Ken Corsini is a seasoned real estate investor and business owner based in Woodstock, Georgia. Ken is best known for his role on HGTV’s hit show “Flip or Flop Atlanta,” and has flipped over 800 houses in Metro Atlanta since 2005.

Experience
With over 15 years of experience in the real estate industry, Ken has expanded his original flipping business into multiple independent real estate businesses, including Red Barn Real Estate, with over 180 agents in Metro Atlanta across four offices; Red Barn Construction, a custom home-building company specializing in modern farmhouses across North Atlanta; Red Barn Renovations, a full-service renovation company; Black Oak Mortgage, a direct lending company based in Woodstock, Georgia; and InvestorSumo, a technology company focusing on CRM and data needs for real estate investors.

Having been involved in thousands of transactions and having owned over 800 houses, multiple commercial and multifamily properties, and more, Ken brings a wealth of knowledge and experience to the BiggerPockets community. He has authored over 100 blogs and currently hosts the “Best Deal Ever Show” on the BiggerPockets YouTube channel. He is also the host of the popular Deal Farm Podcast.

Ken is currently writing a book in conjunction with BiggerPockets called “Profit Like the Pros,” scheduled for release in Fall 2020.

He and his wife also run Roc.Star Kids, a non-profit organization focused on the needs of children and families in the fight against childhood cancer. For more information on this very personal cause, check out their story here.

Press
In addition to HGTV and HGTV Magazine, Ken has been featured on The Today Show, People Magazine, The LA Times, Think Realty Magazine (cover), TV Insider, In Touch Weekly, Life and Style Magazine, The Wrap, The Atlanta Journal Constitution, UGA Today, US Chamber of Commerce, PopSugar, Entertainment Magazine, and a number of local periodicals.

Education
Ken has a Business Degree from the University of Georgia and a Masters Degree in Building Construction from Georgia Tech.

Accreditations
Ken is currently licensed as a general contractor (commercial) in the state of Georgia.

Follow
RedBarnHomes.com
Instagram @kencorsini
Twitter @kencorsini
Facebook

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Armed with a marketing budget that would make Coca-Cola blush, Nancy Wallace-Laabs and her team were able to canvas the Dallas-Fort Worth metroplex with tens of thousands of top-notch direct mail marketing pieces to land her best deal ever.

OK, that is not entirely true—actually there isn’t really any truth to that, except for the fact that she did use direct mail and they were sent to zips in the greater Dallas-Fort Worth area.

Direct Mail Marketing Campaign Leads to Best Deal Ever

The truth is that Nancy (like many other investors) purchased a list of out-of-state owners’ addresses and sent a very basic homemade yellowcard to the owners. One of her cards ended up in the hands of the wife of the owner, who let her husband gently know that he received another card and that it was time to do something with their house.

And because he was no stranger to the old adage “happy wife, happy life,” he called Nancy about selling his house.

Related: Best Deal Ever Show #6: Using FHA to House Hack

Well, due to great timing and Nancy’s ability to build rapport, she was able to make a site-unseen offer of $10,000 that the owner accepted. Yep, you read that right—$10,000 in Dallas. Now, this property was in pretty rough shape, but Nancy figured for that amount, she could figure out something to do with it.

Since Nancy has many arrows in her quiver, she eventually decided to get creative and not just wholesale it. Instead, she implemented a couple of investment strategies that make this a sweetheart deal.

Financing the Deal

1. Owner-Financing

Instead of having to make any repairs or having to get the property ready in any significant fashion, all she did was: sweep up, stick a handwritten sign (I’m sensing a theme here) in the front yard, and listed it on the MLS. After three days of being listed, she had a buyer who was willing to pay $50,000 with the following owner-financing terms: 20 percent down or $10,000 and 10 percent interest on a 15-year amortization.

Related: How to Grow Your Income Property Portfolio with Owner-Occupied Financing

2. Purchased Inside a Roth IRA

Ordinarily, Nancy pays around $100,000 for a property. Because she was able to get this property at such a discount, she decided to have her Roth IRA purchase the house. Prior to purchasing this property, Nancy and her husband had a retirement account with a balance of $13,000 that was making very minimal returns. Once the property was purchased, it immediately had a value of $34,000; after 15 years of receiving payments, it will have a value of $90,000!

So if you followed that, Nancy now has no money in the deal, resulting in an infinite ROI. To get the whole scoop, check out episode seven of the Best Deal Ever linked above!

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Do you have any questions for me about the above deal? 

Ask me in the comment section below.