All Forum Posts by: Chibuzor Alumba

Wow, well done @Thien Tran. You are already knee deep into REI.

Keep it up.

Hi Daan Murray, welcome to Winnipeg. I only have a primary residence and like everyone else on BP, I would also like to increase my REI experience. If you would like company as you meet with REIs in Winnipeg, I would like to join you and learn more about the Multifamily market here.

Additionally, if you would like someone to check up on your properties or manage them, I would be happy to do so.

Let me know if you would like to connect. I wish you the best of luck.

Thank you Jim. One thing I am unsure of is this, are we supposed to care heavily about the 1% rule in a Lease Purchase sandwich agreement? 

If the house is free, i get a good sized option assignment fee for it, and I get > $200/month on it, isn't that a good deal? 

I guess I just want my first win so i can get some credibility and experience. And even if its not a super deal, its still free (less my time and ad expenses finding the tenant buyer).

P.S. In my market the 1% rule is a rare sight even for traditional REI opportunities. House prices are overblown and hence unconventional methods like a Lease purchase might just be the way to go right now.

Wow Prince Soriano, the lower suite alone covers the mortgage? WELL DONE on your first deal.

You and your partners are off to a great start. Reach out to me if you're looking for more partners on your next deal.

Hi BP Community, it's so good to be back here.

I have been learning about creating Sandwich Lease Options, and using them to help homeowners create a Rent-To-Own structure with potential buyers. Two home owners have contacted me with their information. 

Help me analyze these deals and figure out what numbers to put into my portion of the Lease contract to help me get 

i) A lease option assignment fee

ii) (Maybe) Some monthly income

Deal 1:

1. Asking Price: $ 389,900

2. House Estimated Value: $ 420k - $440k (Not verified - How can I do this in Canada without being a REA?)

3. Do you have a mortgage: Yes

Some mortgage information

4. Mortgage Amount: $ 280,000

5. Interest Rate (%): 2.24

6. Monthly Payment: $ 517.80 bi-weekly (

7. Does the monthly payment cover your principal, interest, taxes, and insurance?: yes

Deal 2:

1. Asking Price: $ 162,000

2. House Estimated Value: $ 172,000 (Not verified)

3. Do you have a mortgage or own the home free & clear?: with mortagage

Some mortgage information

4. Mortgage Amount: $ 110,000

5. Interest Rate (%): 2.98%

6. Monthly Payment: $ 700/month

7. Does the monthly payment cover your principal, interest, taxes, and insurance?: Yes

Any help, advise, resource, or encouragement you all can provide will be very much appreciated.

There are many techniques to use Steve, most of which I learned by listening to the BP podcasts. e.g.

- Putting your first few properties under your name, then putting the next few properties under your partner's name (wife/girlfriend/etc)

- Talking to small credit unions in your area and convincing them to create a HELOC for you that you will then use to fund your next N number of deals (you can rinse and repeat this, and you will probably need to talk to MANY small credit unions before you find one willing to work with you. That said, it is not impossible to find one)

- Private money/ hard money. If you have a good deal, you can get private lenders to help you fund the entire thing as part of a BRRRR strategy

- When your portfolio is large enough, you can then create a Venture Capital fund (I think that's what it is), where you raise funds from your friends and family, and use those funds to buy real estate outright for flipping, renting, etc. This removes your dependency on banks for funding. I think this is where most people naturally transition to after they have enough deals under their belt to have 1. Credibility, and 2. Be ineligible for more bank funding 

My advice: focus on increasing your portfolio for now. When you become ineligible for bank funding, you can get private/hard money, and or setup your own investment company where your friends can loan you their money for you to use to fund your deals.

Hope this helps

What a wonderful suggestion Al Williamson. Would you happen to have any resources that quickly come to mind on how one can maximize the cashflow potential of a rental property?

Hi Steve, welcome. First of all, congratulations on getting fired up to get into REI, make sure to nurture your fire so you dont lose it.

I agree with Jeremy. There is so much great and practical info here on the BP forums and podcasts that you can learn exactly how real people invest in real estate just by soaking all the info in.

Here are the two steps I think you need to follow next:

1. Soak in as much info as you can on REI from the forums and podcasts

2. Look for a local REI to partner with. Offer to work for them for free while you learn the business. The knowledge from step 1 will help your mentor/partner respect you and easily teach you because you will understand most of the lingo

P.s. if you want to chat about REI in general or you just want to chat, send me a PM with your contact info and we can connect

Hope this helps give you some direction

Awesome suggestion on house hacking Kenneth Barrera. 

One thing I forgot to mention is that you, Trent Owens, can purchase/finance a property, without using ANY of your own money.

One of the ways you can do that is by using Seller Financing (Look it up). Feel free to go through all the podcasts that exist here on BP. There is a world of information on how to finance properties without using your own money.

Wow Irina Belkofer, thanks for the awesome and rich amount of information you provided.

I agree with you completely. I will only consider becoming a real estate agent myself when I start selling a whole lot of properties.

Thanks again for taking the time to provide us all with information.