Ep. 287 Putting Together Real Estate Deals w Creativity, Not Cash

39 Replies


How much money does it take to invest in real estate? Is there really such a thing as “no- or low-money down?” After you hear today’s interview, you’ll know the truth! Today we sit down with Shiloh Lundahl, a real estate investor who specializes in putting together deals using a variety of different no- and low-money strategies in some pretty unique combinations. From utilizing business lines of credit, to bringing in partners, to hard money, to lease options and beyond, this episode will give you tons of ammunition for your own creative finance deals. And don’t miss the incredible strategy that Shiloh uses today to make 300 percent more per deal than if he were to flip the home. It’s pretty darn fantastic!

Listen here or on your favorite podcast app.

I am currently preparing to start my real estate business in my home area and would like to know what would you believe is the most important principal in being creative with your funding (growing your knowledge base, networking, etc)? 

@Tim Cavalier - The most important principle in my opinion is staying focused on your goal. Make small steps everyday towards understanding your new business, reading and obtaining knowledge, networking, finding and closing deals, ect.) Everywhere on Biggerpockets I have read, "you find or have a good deal, the funding will come"...Stay focused and motivated. Good luck! 

This episode was chock-full of actionable ideas and ways to use lease-options. I also like how Shiloh shared his struggles as well as successes. People need to hear the bad as well. When they only hear the positive like on some other books/podcasts, that is where the disappointment comes in when the reality doesn't match expectation. 

Also, @Tim Cavalier , Let everyone you know or come across know that you invest in real estate and try to help them fix their problems. Some people's problem is they have a deal they need to sell, while others problem is they have money they don want collecting .00002% in a savings account. REIs are problem solvers by another name after all! 

how and where do I find my local rei I am in the Philadelphia area

I would love a mentor maybe he can show me the best ways willing to work for free just need answers tired of paying gurus 

This is solid gold.  I think this could work well in my area.

Can't wait to listen to this podcast! @Mindy Jensen would you guys ever consider doing an episode on the pros and cons to long term rentals versus  short term rentals? I would love to hear more about this from some successful investors in both niches. Thanks!

Perfectly timed.  Have been investing for years off and on... finally decided to get back to it only this time I wanted to do it without any money.  Just signed my first contract with 23% equity from the start.  Rent-able from day one but for 10k in updates it could easily get 20k back in equity and 200.00 more a month rent.  So looking forward to listening and learning.  Have a meeting with a banker who is familiar with working with investors to discuss financing options and hope to be able to use this to discuss options.   If others have done this before would love to hear what you have learned.

Originally posted by @Tim Cavalier :

I am currently preparing to start my real estate business in my home area and would like to know what would you believe is the most important principal in being creative with your funding (growing your knowledge base, networking, etc)? 

 Congratulations on your start.  Question.  What is your real estate business?  There are so many to engage this area.   Depending on your goals and the dynamics of your general area can determine which way you should go.  

@Patrick Daniel and @Ben Unger Thanks you both for the advice. 

@Calvin Lipscomb Thanks for the reply. I’m looking to start with buy and hold investing. Specifically smaller multi family properties 2-4 units. I plan to eventually move up in size once I have a bit more experience with managing. But for now I just need to get started. 

Originally posted by @Tim Cavalier :

@Patrick Daniel and @Ben Unger Thanks you both for the advice. 

@Calvin Lipscomb Thanks for the reply. I’m looking to start with buy and hold investing. Specifically smaller multi family properties 2-4 units. I plan to eventually move up in size once I have a bit more experience with managing. But for now I just need to get started. 

Depending on other factors that we do not know, your situation is relatively easy for you to start. You can get a FHA loan with a 3% down payment, look for one of those first time home buyer programs to help with down payment and closing, and find the right house.

@Calvin Lipscomb I thought about that route but I used an FHA loan on my current home. I'll have to find another route. But I've been reading the book on investing with low or no money down and trying to come up with creative ways.

Originally posted by @Robert Walker :

how and where do I find my local rei I am in the Philadelphia area

Download the app Meetup. Put in your local information and preferences and you will find REI in your area. Goodluck!!

@Patrick Daniel Thanks for your comment. I agree that it is important to hear all the good the bad and even the ugly of real estate investing to help people have more realistic expectation as to what they are getting into with real estate investing.

@Ryan Proffit Thanks for your comment. I think at this model would work well in several markets. Especially markets where you’re all In can’t be $140,000 or less.

Shiloh congrats on getting your message out on the 50,000 WATT  BP powerhouse !!! I suspect there are going to be a lot of BP members very interested.

Thanks @Jay Hinrichs . I appreciate your words and I think it’s grear what you are doing with A Hero’s Home.

off subject but I wonder if the kids on this site know what the 50,000 watt  is in reference too !!!

@Jay Hinrichs I didn’t want to sound stupid so I kept my mouth shut on the 50,000 watt comment.

Loved the podcast episode!  Could I lease w/ option to buy on my primary residence when I move out?  Would the Option window need to be 3 years or less to avoid capital gains taxes?

@Eric Schenck yes I believe that would be the case in a primary residence in order to avoid the taxes. It is a little more risky though since it is possible that the tenant might not exercise the option. So you may want to just do a 2-year option so that in case they don’t exercise the option you will still have another year to sell it.

I'll keep that in mind.  Thanks for sharing, Shiloh! :)

Great podcast. I'm currently in the middle of my first flip and it's looking like I'll basically break even unless it sells for more or less than expected. Been thinking about BRRRR instead of a pure flip since building a rental portfolio is the ultimate goal, but the equity just isn't there for that "repeat" part of the BRRRR. And it's not an ideal property to hold long term. A lease option might be just what the doctor ordered.

Question is, how do I find a tenant buyer?

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