All Forum Posts by: Jeff Filali

@Rohan J. Mainly cash, yes. I buy them cheap (Motivated Sellers or Foreclosures), usually 50-60% of ARV minus repairs. I wholesale flip some that I purchase to other investors or rehabbers, if they don't sell within the first few weeks, I rehab them and list them FSBO the next month at full value but always mention in my ads that I may consider seller financing with 20% down. When I wholesale them or sell for cash, I roll that money right back in to purchasing another property. But yes, its going pretty good so far and as you run the numbers, it makes a lot more sense to me then dealing with landlord issues.

@Jay Hinrichs Yes.  I learned a lot in 2016.  I'm all in now!!

Most of mine are typically around half those example numbers, but the returns are the same or better. I primarily deal in homes around $50K or less. Purchase for $30K, sell for $55K but I do try to get 20% down, and 10% APR. I'm only carrying my notes for 10 years for now, but in the future as my business grows, I will be a lot more open to 30 year notes. Have to be to extend far enough into retirement.

I started off planning to do rentals or RTOs, but once I discovered all the benefits of seller financing, it made a lot more sense for my investment plans. 

I always offer Seller Financing on most the properties I sell. The reasons I do: A) I can sell for full premium price; B) I can sell the property fast if others in the area are moving slow; C) I get a nice return on my investment, usually better then most other investments (I typically charge 20% Down and carry the Note for 10 years at 10% APR); D) better cash flow without being a landlord or dealing with landlord hassles (NO Repairs, NO Calls, NO Reserves needed, NO Property Taxes, NO Property Insurance payments; The payments come in and if I don't have a mortgage, the funds are 100% cash flow.)

When buying a fixer-upper property and rehabbing it, you can average well over 20% APR return on the net cash invested when offering seller financing!! Even if you only charge 10% APR, you get to ask for full premium price, which has to be figured into the returns.

EXAMPLE DEAL-

ARV: $110,000 Purchase Price: $45,000 Repairs: $15,000.00 Total Invested: $60,000

Sold for: $109,900  Down Payment Collected: $20,000   Net-Cash Invested: $40,000

Balance Receivable: $89,900 Financed with Seller Carrying the Note at 10.0% APR for 120 Months

Monthly Payments: $1,188.04  Total Principal + Interest Return: $142,564.21

Total Profit: $102,564.21 or 25.6% APR (If seller carried it for 30 years, its still over 20% APR)

Plus none of the hassles of being a landlord!! 

A Single Member LLC is a pass through entity as far as your taxes go, so will make no difference. Speak to a good CPA about your situation, but in some instances, a CPA will recommend setting up LLC to be taxed as an S-Corp and pay yourself a salary to off-set some self-employment taxes. This is different with every situation, depending on type of income and amounts and definitely need to speak to a good CPA to know which way makes more sense for your individual situation.

From my experience your paid ads have nothing to do with your non-paid SEO ranking.  Making sure your site has the proper content to maximize SEO will get you free leads.  I do both paid ads and our sites are all set up with the best content for SEO.  Paid ads will not necessarily make your page rank higher in general non-paid ads search.  There's ways to set up your SEO and content to get your page ranking in the top few spots below paid ads based on specifics that fit your business, which will generate a lot of free leads.

If doing paid ads, be sure to create dynamic ads and also block keywords that do not apply.  At first I was getting a lot more hits, but 2/3rds were not good quality and were not turning into lead conversions.  Made some changes to get less clicks but better quality.  I'm willing to pay max bid for certain search terms that I know typically generate quality leads.  But on others I leave them set lower.  Its all about "Quality" of Clicks over "Quantity" of Clicks.

5 OFF-MARKET PROPERTIES AVAILABLE IN TEXAS & OKLAHOMA

(2) Owned by my company

I own these first two myself. Open to all Cash Offers from other Investors. Prices in my ads are if I’m offering Seller Financing. Would take less from another Investor for sure.

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1. Breckenridge, Texas. (89 miles west of Fort Worth Metro)

LARGE 4 BEDROOM / HUGE CORNER LOT / MANY UPDATES!!

-----PRICED TO SELL----- (Valued at $96K+ before foreclosure agent started listing at $56K)

>>>>>$45,000 CASH<<<<<

-or- >>>>>$64,900 w/Seller Financing ($10K Down & 10 Yr at 10.0%APR)<<<<<

MORE DETAILS: Details: 4 Bedroom/2 Bathroom/1,768 sq ft

Address: 1115 East Lindsey, Breckenridge, TX 76424

Comps: $65K-75K  Est Repairs: (Minimal Cosmetic)   Rent Estimates: $800-$1000

Ad with photos:

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2. Muskogee, Okla. (35 miles southeast of Tulsa Metro)

HANDYMAN/INVESTOR's SPECIAL

-----PRICED TO SELL----->>>>>$22,000 CASH<<<<<

-or- >>>>>$29,900 w/Seller Financing ($5K Down & 5 Yr at 10.0%APR)<<<<<

MORE INFO: Details: 2 or 3 Bedroom/1 Bathroom/792 sq ft

Address: 1613 South Aberdeen St, Muskogee, OK 74403

Comps: $36K-48K  Est Repairs: $3K-$8K (depending on rental or flip)  Rent Estimates: $600-700

Ad with photos:

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(3) Under Contract by JV Acquisitions, LLC (My Acquisitions Guy’s Company)

Here's three more Wholesale deals that my Acquisitions guy has under contract and is looking to move them.  All of them are priced way under value. He has these all priced to sell fast. For More Info on any of these: Call Chris with JV Acquisitions at 254-205-0392

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1. Marshall, Texas.-

DUPLEX Available Wholesale Off-Market

-----PRICED TO SELL----->>>>> $45,000 CASH only <<<<<

*****RENTAL INCOME ESTIMATES***** $1,800-2,000 ($900-1,000 per unit)

MORE DETAILS: Details: 4 beds/2 baths/3,600 sq ft    Both Units: 2 Bed/1 Bath/1,800 sq ft

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2. Odessa, Texas.-

HANDYMAN/INVESTOR's SPECIAL Available Wholesale Off-Market

-----PRICED TO SELL----->>>>>$50,000 CASH only <<<<<

MORE INFO: Details: 3 Bed/1 Bath/1 Car Attached/2,000sq ft

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3. Blackwell, Okla.- (I-35 between OKC & Wichita, near Enid & Ponca City)

HANDYMAN/INVESTOR's SPECIAL Available Wholesale Off-Market

-----PRICED TO SELL----->>>>>$17,500 CASH only <<<<<

MORE INFO: Details: 4 Bed/1 Bath/1,766 sq ft

@Jonathan MacMillan You could easily find two SFRs in our area that fit your needs. 

Median Home Price in Oklahoma is $113K, but in the better markets its more in the $150K-$190K range and you can find good deals in the $125K-$150K range.  Rent rates in these top markets tend to be in the $1100-1500 range and are in high demand.   The best markets in the state for rentals are: Jenks, Bixby, Broken Arrow, Owasso, Norman, Moore and Edmond.  Some areas of Tulsa and OKC also have good pockets.

I found an occupied duplex a few weeks ago that's renting for $600 per side ($1,200) and was for sale for under $90K.  There's lots of deals like that in the area.  Good luck!!

My understanding is as long as I don't have controlling interest or majority equity in that new business venture, that this would comply and not effect my solo 401K

@Dmitriy Fomichenko It provides an active trade or business where I conduct business, but will never need employees. I also have a other businesses separated in other LLC subsidiaries under the holding company for asset & liability protection. I could see possibly starting new business venture in the future that would need employees or investing in such a business.

@Justin Windham My holding company would never need employees, its passive and only owns equity in the subsidiaries and owns some other assets.  If I ever needed employees, it would not be the holding company. I don't see myself or any of my entities needing employees anytime soon, but as I diversify and grow, I could see starting new entities in other businesses that could need employees. Just trying to plan ahead just in case.