Investing Strategy

[Christopher Andujar]

Hello everyone! 

I really want to invest in buy and hold. The problem is I do not have a W-2 job. I work for a family member and I bring home decent money ($800-$1500 weekly) 

I was wondering what are some good strategies I can use to start investing?

[Dev Horn]

LET'S LOOK AT HOW SUBJECT TO CAN GIVE YOU BETTER ROI & MORE OPTIONS...

I'm doing a full rehab flip right now via Subject To on a property that had equity but was (a) too expensive (ARV), most cash buyers want cheap rental units, so this project would have tied up a lot of capital if it was a cash purchase, and (b) it needed a lot of work - foundation, HVAC, all new flooring, new bathrooms, etc. This project would have consumed $170,000 of capital to get it to the finish line.

The sellers were 6 months behind on payments and facing foreclosure, so they were about to lose the equity they had with very few options. We bought it Sub To, reinstated the loan, and used their $126,000 loan, so we only needed to put about $45,000 of capital at risk. When we sell, we expect to net about $20,000. Think about the ROI comparison of a full cash deal vs this Sub To.

CASH >> $170,000 invested, $20K net = 11.7% ROI
SUBJECT TO >> $45,000 invested, $20K net = 44% ROI

Due on Sale is not an issue; we deed the houses to a Land Trust that we control, and we will be done and out of this project in ~60 days total.  And why would the bank complain?  we just paid 6 months of back payments and brought the loan current.

Last point about creative financing is we now have the option to sell this place owner finance and wrap the existing loan with about $500 a month positive cash flow, so we have more options available to us because of using the Subject To strategy.

"The reward to a thing well done, is to have done it." ~ Ralph Waldo Emerson