All Forum Posts by: Jason James

I will most likely use his money for the full term but this is real estate and you never know what other deals may come your way. I may need to use these properties as leverage or something like that but as of now I will use his money.

Yes I have full control of the properties. He is basically the bank in this deal. I pay taxes, insurance and all that jazz. I also get the deductions as well.

No he owns the properties free and clear. This is one reason he is able to be flexible. If he did owe on the properties we could still work the deal with a wrap or other options.

Also I have a contract per property. I like doing it that way in case something goes wrong on a particular property I don't lose all the properties. In my opinion it’s just better to keep the deals separate. Plus this allows me to be more flexible if I did need to pull cash out of a property or if I wanted to sell one... Never know.

The most beautiful thing about real estate is that you have so many options...  

Thanks Kyle. Looking forward to closing the deal and finding more. 

I just locked in a deal from the same type of seller. I agree that you need to find out his motive. The seller I was working with absolutely no longer wanted to be a landlord and was ready to make a deal happen. He wasn't "thinking' of selling he was ready and motivated. Also I wasn't wholesaling I was there to buy the properties. My goal was to buy the properties with owner financing because in my phone conversation with the seller he indicated that the properties were paid off. The point is to get as much info as possible before you meet so that you can develop a plan of action ahead of time. Then if you verify he is truly motivated you can meet with a clear plan. This also helps you to stay true to your plan. It’s easy to meet the seller and then get excited and agree to something you really didn't plan on.

Don't get too pumped up. Take it slow follow your plan and hold your ground. If there is no deal to be had don't force it. Move on to the next one.....

Good luck 

Yes those are the numbers. That said these properties are in a high rental area with lower income families. This area is purely an investment (rental) play, not really good properties to try a resale for profit. Could I sell all the properties for $279,000 no but I sure could use them later to leverage and buy more.

I agree the greatest thing about this deal is the no money down. Hope more just like this come my way... 

I am a big fan of SOI (sphere of influence).

I am always reaching out to people I know telling them what I do. I like to keep it fresh in their mind so that if they hear of a deal in real estate they rememeber to reach out to me. 

In this case that was how the deal was sent to me. One of the people in my SOI heard about a landlord that was ready to get out of the game and passed that information along to me. 

Networking and really telling everyone you know what you do is key. Also ask them to share your info with anyone they know that may be interested in real estate as well. Good old word of mouth. :) 

Thanks...

Tenants are responsible for general maintenance such as grass cutting and all utilities. I self manage all my properties so I do not have a property manager fee to pay either. Other than general repairs that will be required from time to time there shouldn't be any other expenses.

I agree the key to deals like this is a motivated seller. As always if you don't ask you'll never know. I always ask for seller financing or attempt to use any other creative tool to avoid using my own cash.

I hope that others looking to get started really embrace the BP forums and learn to use all the tools available. So many people I talk to always ask "Where am I going to get the money to buy real estate". And I always say you don't need money if you don’t have a deal, find the deals first.....

Just thought I would share the deal I landed yesterday. Mainly to show others that if you don't have cash you can still be creative and work a deal. These properties were owned by a landlord that wanted out of the business but still wanted to make a little return on his money. The properties are in a so so area that isn't really appreciating but is a very good rental area. Very little vacancy in this area as the rent rates are affordable.

The Deal:

5 properties that are fully rented = $2,800.00

Package deal property value as is = $279,000.00

Properties are in good condition with some updates but will need minor repairs over the coming years.

Purchase price = $150,000.00

Owner financed with 0 down for 10 years (no early payoff penalty) at 6% = $899.33 per month P&I only.

Taxes & Ins = $442.91 (roughly)

Cash flow = $1,457.76

Of course there are all the other things like vacancy, maintenance and all that jazz but I just wanted to post high level info. I really just wanted to let others know that you can work deals with little to no cash of your own. 

Welcome. I never worked probate but I have purchased a few properties from folks in that emotional situation. It's a little tricky and you have to walk a fine line. All the deals I have done like this have been great for myself and the seller. In all cases I was doing them a huge service by taking the property off of their hands. They were super excited to get rid of the property and I was delighted to buy them.

I don’t have a script and again I don't work those leads intentionally but by being in this business you’re almost always going to run across this type of deal. I would say if you have the correct intentions that you will know what to say to the seller. For the right people what to say comes naturally. That said if you had a script I am sure it would help.

Again welcome and feel free to add me to your buyers list as well. I am always looking for deals.

Thanks 

Thank you. I will reach out to them. 

Welcome.... 

Sounds like you have a solid foundation. Since your pops owns rental property and you have had some exposure already you should be fine. 

I always wanted to be an aircraft mechanic, sounds like a cool job.

Again welcome.