Build a Portfolio of Seller Financing Cash Flow with Nick Disney

 

Build a Portfolio of Seller Financing Cash Flow with Nick Disney

 

Guest: Nick Disney is the founder of Sell My San Antonio House. His company specializes in flipping houses to owner occupants using seller financing.

 

Big Idea: Instead of selling conventionally-using bank financing and real estate agents, Nick sells directly to his owner occupant buyers and provides seller financing. These 10%+ interest bearing notes are then sold off to investors who enjoy 30 years of payments receiving 3.4 times their original investment.

 

 

    

Nick Disney: Perfect. I’m a single family real estate investor in San Antonio, Texas. So that’s 99% of our business, you know, started buying wholesaling. Some flips started with building the rental portfolio. Now, it’s really transitioned into buying, rehabbing, and selling with owner finance. And so we want to sell the property create a promissory note, which is our preferred method to produce long term cash flow. And so now we create notes. We keep some of them, and we sell some of those notes to other folks who just want to buy the payment stream on the back end.

Dan Breslin: Yeah, so I have. I have a friend. Actually, he was a guest on the show, like 5 years ago, maybe before he even started doing this. Dan Zatowski. He’s out of Delaware. A lot of listeners, local in Philly probably know the name.

 

This Episode of The REI Diamonds Show is Sponsored by the Deal Machine. This Software Enables Real Estate Investors to Develop a Reliable & Low Cost Source of Off Market Deals. For a Limited Time, You Get Free Access at http://REIDealMachine.com/

 

This Episode is Also Sponsored by the Lending Home. Lending Home Offers Reliable & Low Cost Fix & Flip Loans with Interest Rates as Low as 9.25%.  Buy & Hold Loans Offered Even Lower.  Get a FREE IPad when you Close Your First Deal by Registering Now at  http://REILineOfCredit.com

 

Resources mentioned in this episode:

https://www.SellMySanAntonioHouse.com/

 

For Access to Real Estate Deals You Can Buy & Sell for Profit:

https://AccessOffMarketDeals.com/podcast/

 

Nick & I Discuss Seller Finacing:

  • Creating a Legal Seller Financed Transaction

  • Underwriting the Borrower

  • How to “Refi” your note after purchase

  • Long Term Cashflow without Tenant & Repair Headaches

 

    

Relevant Episodes: (200+ Content Packed Interviews in Total)

 

The transcript of this episode can be found here.
Transcripts of all episodes can be found here.

Fast & Easy Multifamily Lending with StackSource Founder Tim Milazzo

 

Fast & Easy Multifamily Lending with StackSource Founder Tim Milazzo

 

Guest: Tim Milazzo is the co-founder of StackSource, a technology driven engine for funding commercial real estate deals of all types. 

 

Big Idea: Having access to fast & easy multifamily lending, or any other commercial funding, is the first step to scaling a multi-million dollar real estate portfolio.  The commercial loan landscape is extremely fragmented, with many lenders focused on only certain asset types, loan sizes, or other niche spaces at any given time.  StackSource is a national high volume aggregator of lenders, loan types & contacts, providing borrowers the faster method for finding the correct lender for your particular asset type.

Tim & I discuss how this volume of lenders will put you in a position of strength when you’re funding a deal.  Obtaining multiple, competing loan term sheets can be difficult when you’re buying a commercial deal because of the short timeline to closing.

The StackSource platform allows you to provide details of your project-whether multi family, industrial, commercial, etc- and then matches your loan type with those lending institutions currently lending in your local market and funding your specific deal type.  The end result is multiple term sheets allowing you to select the best option for your deal.

This is a contrast to how I’ve bought my last half dozen multi family projects:  calling around asking people I know who is funding this type of deal-then submitting my deal details to that single lender and obtaining one term sheet.  My way is a position of weakness-I am stuck riding with that single lender on that deal.  It’s worked out for me because I’m lucky to have found the right lender for my type of loan.  Shall we begin?

 

 

    

 

Dan Breslin: Welcome to the REI Diamond Show. I’m your host, Dan Breslin, and this is episode 206 on fast and easy multifamily lending with StackSource founder, Tim Milazzo. If you’re into building wealth through real estate investing, you are in the right place. My goal is to identify high-caliber real estate investors and other industry service providers, invite them on the show, and then draw out the jewels of wisdom. Those tactics, mindsets, methods used to create millions of dollars more in the business of real estate. Having access to fast and easy multifamily lending or any other commercial funding is the first step to scaling a multimillion-dollar commercial real estate portfolio. The commercial loan landscape is extremely fragmented with many lenders focused only on certain asset types, or certain loan sizes, or other niche spaces at any given time. StackSource is a national, high-volume, aggregator of those lenders, loan types, contacts, etcetara, providing you, the borrower, with the faster method for finding the correct lender for your particular asset type.

On today’s episode, Tim and I discuss how this volume of lenders that StackSource has aggregated will put you in a position of strength when you are funding a deal. Obtaining multiple competing loan term sheets can be difficult when you’re buying a commercial deal because of the short timeline to closing. It’s multiple calls to the lenders that you’re googling and they don’t do this kind of asset type, etcetara. Whereas the StackSource platform allows you to provide the details of your project, whether multifamily, industrial. commercial, etcetera, and then matches your loan type with those lending institutions currently lending in that local market and funding your specific deal type. So, the end result is a multiple term sheets allowing you to select the best option for your deal, and then proceed with a complete loan package. And this is in contrast to how I bought my last half dozen multifamily projects which was going around, asking people I know who is funding this type of deal, and then submitting my deal details to that single lender, and obtaining a single term sheet. So, I kind of had no other options if that lender did not work out, and I didn’t really have the ability to shop the deal due to lack of time and lack of contacts. Whereas I didn’t have access to this platform.

So, my way was a position of weakness and I’m stuck riding with that single lender on that deal. Now, luckily, it worked out for me because I found just the right lender for just the right loan type who lends in my market but that’s not always the case, and the challenge can be even greater if you’re investing all over the US.

 

This Episode of The REI Diamonds Show is Sponsored by the Deal Machine. This Software Enables Real Estate Investors to Develop a Reliable & Low Cost Source of Off Market Deals. For a Limited Time, You Get Free Access at http://REIDealMachine.com/

 

This Episode is Also Sponsored by the Lending Home. Lending Home Offers Reliable & Low Cost Fix & Flip Loans with Interest Rates as Low as 6.99%.  Buy & Hold Loans Offered Even Lower.  Get a FREE IPad when you Close Your First Deal by Registering Now at  http://REILineOfCredit.com

 

Resources mentioned in this episode:

www.StackSource.com

 

For Access to Real Estate Deals You Can Buy & Sell for Profit:

https://AccessOffMarketDeals.com/podcast/

 

Tim & I Discuss StackSource & Multifamily Lending:

  • Hottest Sectors in Commercial Real Estate

  • How to Finance Multifamily Investments

  • Obtaining Fastest Rate & Term Quotes

  • Finding Commercial Funding Anywhere in the U.S.

    

Relevant Episodes: (There are 206 Content Packed Interviews in Total)

 

The transcript of this episode can be found here.
Transcripts of all episodes can be found here.

How to Release Home Equity WITHOUT a Refi, Monthly Payments, or Mortgage with Matthew Sullivan

 

Episode: How to Release Home Equity WITHOUT a Refi or Payments-a conversation with Matthew Sullivan

Guest: Matthew Sullivan is the Founder & CEO of QuantumRE as well as the host of his own podcast, “Hooked on Startups”. He is originally from London and has a background working with Richard Branson’s corporate finance team and was a director of the Virgin-sponsored London Air Ambulance.  Matthew has created a new method allowing homeowners to release home equity without a refi.

Big Idea: How to Cash Out Home Equity while making NO monthly payments.  Add in blockchain technology to provide a secondary market for real estate investors to participate in hot real estate markets around the world in a truly passive manner.

 

 

    

Dan Breslin: Matthew joins us today sharing his unique business model of providing cash to homeowners without a refi mortgage or monthly payments. The conversation includes tokenization of real estate through blockchain technology, the underwriting process to obtain this cash, and a brief history of Matthew’s background as a helicopter pilot and how that applies to running a business. Let us begin.

All right, Matthew Sullivan, welcome to the REI Diamond Show. How are you doing today?

Matthew Sullivan: Very well, Dan. Thanks for having me on.

Dan: Nice. So you have a bit of a history, which, I mean, maybe people already recognize the accent. But do you want to kind of talk about where you came from in your career and kind of how it evolved to what you are doing today?

Matthew: Yes, of course. So I am originally from England and I moved to Southern California about seven years ago. And before that, I had spent about the last previous twenty-something years and really running my own businesses in finance, telecommunications, and technology. I think back in the late 90’s I had the amazing privilege of working closely with Sir Richard Branson as well for a few years and it was involved with a number of companies like Virgin Cosmetics, Virgin Clothing.

I was a trustee of the London Air Ambulance that was sponsored by Virgin, so that was a fantastic time. I moved here with a big changed in circumstances back in England, so fresh start over here. And the first thing I did was just launch myself into real estate, which is something that I always wanted to do when I was in the UK, but I got distracted by the internet and other sorts of platforms. So, it was really a great opportunity to explore this fantastic universe of real estate.

Dan: Nice. Okay, so a couple of things before we dive into some of our big topics here. But I am curious, I do not know a lot about UK real estate. I have heard that it operates a little bit differently, it is more constrained, there is not the type of supply of real estate that we have in almost all the markets in the US. Would you mind shedding some light on that assumption for me?

Matthew: Yes. Well again, I did not have any great exposure to the real estate markets in the UK, so all of my real operating experience comes from the US. But I can tell you from my experiences as an investor, as a business person in the UK, property there, obviously it is a much smaller country, so you have got far fewer people and the number of opportunities is nowhere near as numerous as they are in the US.

Real estate in the US is a multi-layered industry, which comprises everything from huge public company investments down to individuals that are fixing and flipping. There is a large private money universe. One of the things that you do not have so much in the UK, so you do not have that same depth to the private capital. And also there is just nowhere near the scale of real estate opportunities that you see over here. If you look at just California for example, the size of the Californian economy is not far off the size of the UK economy and so that just puts it into perspective. It is much bigger over here, much faster-moving, and is much more the bedrock of the economy as a whole.

 

Episode Sponsored by the Deal Machine:

Driving for Dollars Software to Build a Team of Drivers, Manage Routes, & Even Automate Marketing.  Free Access at  http://REIDealMachine.com/

 

Resources mentioned in this episode:

www.QuantumRE.com

 

Matthew & I Discuss How to Release Home Equity

  • What is a “Home Equity Contract”?

  • Own a Piece of Appreciation in Hot Markets

  • Tokenizing Residential Real Estate

  • Using Option Contracts instead of Mortgages

  • Cash Out Home Equity WITHOUT a Refi

    

Relevant Episodes: (There are 189 Content Packed Interviews in Total)

 

The transcript of this episode can be found here.
Transcripts of all episodes can be found here.

How to Buy a House with No Money Down with Tim Padavic

 

Episode: How to Buy a House with No Money Down with Tim Padavic

Guest: Tim Padavic is the Vice President of The Federal Savings Bank. He’s licensed to lend in all 50 states.

Big Idea: Offering Your Retail Buyer “No Money Down” Wins More Deals (for Agents) & Keeps More Money in YOUR Pocket (for Flippers). Buying a house with no money down allows more buyers to participate in the red-hot real estate market. Recent surveys show the reason many buyers remain on the sideline is a limited savings for the down payment.
Agents & buyers obviously benefit by knowing how to buy house with no money down. Fix & Flip investors also benefit because they can offer buyers of their projects the option of no-or certainly very low money down.
If you’re flipping houses and use a real estate agent to sell your flips-you can share this episode & Tim’s contact info as a resource they might use in selling your house at a higher price. Think about it-if a buyer doesn’t need any money down-or any seller credits for down payment assistance, that money stays in YOUR pocket. Worth noting-this no money down strategy is only applicable on Owner Occupied residential property.

 

    

Dan Breslin: This episode was created for you. Agents and buyers obviously benefit by knowing how to buy a house with no money down and fix-and-flip investors also benefit because they can offer the buyers of their projects—the houses they’ve fixed to flip—the option of no money down or certainly very low money down financing. That’s the topic today.

And if you’re flipping houses and you use a real estate agent to sell those flips, I suggest that you share this episode and Tim Padavic’s contact info at the end as a resource that they might use in selling your house at a higher price. Think about it. If a buyer doesn’t need any money down or any seller credits to cover closing costs or down payment assistance, the money stays in your pocket. I’m not getting paid for this. Tim’s not kicking me anything back. I just know Tim from my network. He’s a valuable resource for me on my flips and he is licensed in all 50 states so I invited him to come on the show as a value-add to you, the valued member of my network.

Worth noting here before we get into the interview, this no money down strategy is only applicable on owner-occupied residential property. So, this is for owner-occupied properties. Tim, this episode, we do not discuss investor financing on this episode. Tim does not even get into investor financing. He specializes in homeowners looking to buy houses in which to live and that’s where the no money down financing mechanism that we’re going to discuss here today works. Ready to get started? Tim Padavic, welcome to the REI Diamond Show.

Tim: In regards to how I get started, in ’98, I got started brokering loans. We actually did most of our business in the refinance and remodel business. We helped rehabbers remodel homes for the homebuyer or the homeowner and we would lower their payment and get them their home improvement, all the way until about 2008 when the collapse happened and then I’ve been doing purchases ever since.

And most of my purchases, if not all of them, my specialty is people getting into their home either for the first time or maybe a move. They don’t really work with investors or second homes or anything like that. It’s not that I wouldn’t it, it’s just not my specialty. My specialty’s getting people into homes. People who are looking for a possibly a rehabbed home or upgrading to a rehabbed home. Something that is real nice for them to move into and the south side of Chicago has been a key focus of those rehabbed homes and the price points are right and some of the programs that we have available tie in really nicely.

 

Episode Sponsored by the Deal Machine:

Driving for Dollars Software to Build a Team of Drivers, Manage Routes, & Even Automate Marketing.  Free Access at  http://REIDealMachine.com/

 

Resources mentioned in this episode:

www.TheFederalSavingsBank.com

 

Tim & I Discuss Buying a House with Low Down Payment:

  • How to Access Grant Money for Down Payment

  • Income & Debt Levels to Qualify

  • How to Get Offers Accepted in this HOT Real Estate Market

  • Importance of Beginning the Mortgage Process Now

    

Relevant Episodes: (There are 188 Content Packed Interviews in Total)

 

The transcript of this episode can be found here.
Transcripts of all episodes can be found here.

Buying Mortgage Notes Generates 15% + Returns with Brian Lauchner

Are you earning 15% on your passive investments? Would you consider buying mortgage notes if you could generate those returns?

Many investors in the real estate business routinely earn these type of returns through buying mortgage notes. Even 20%-30% or more.  During this investing podcast, Brian Lauchner and I discuss two main topics. First, how to close more deals as a real estate investor using creative financing methods powered by the use of purchase notes. Second, we discuss how to sell those performing notes and generate quick cash.

Guest: Brian Lauchner-In Just a Few Short Years, Brian Graduated from Wholesaling & Flipping Houses to Designing a Lifestyle of Freedom through Buying & Selling Mortgage Notes.  
Episode: Buying Mortgage Notes Generates 15% Returns & More with Brian Lauchner
Big Idea: “Any Cash I Put in a Deal, I Quickly Extract” The Note business is essentially originating, buying, selling, or holding mortgage notes.  Brian describes his strategy for pulling his cash out of every Note deal as soon as possible-ideally within the first week or two.  An even better scenario often occurs where a note deal is constructed and a large chunk of cash is pulled out day 1.

 

  

Episode Sponsored by the Deal Machine:

Driving for Dollars Software to Build a Team of Drivers, Manage Routes, & Even Automate Marketing.  Free Access at  http://REIDealMachine.com/

 

How to Buy Mortgage Notes

The first logical step in generating large returns on investment capital is to figure out how to buy mortgage notes. It begins with understanding the risk & return of buying the note. Think about it this way, if you were to buy a stock, you’d first like to do some due diligence on the company. Maybe find out if they’re profitable, whether they have a good business model, or even if you trust the team running the company. In the same way, you can evaluate the risk of a real estate note by determining probability that the borrow will actually repay the note. You’d then figure out your potential return by calculating the unpaid balance (UPB) and considering the interest rate.

There are quite a few types of mortgage notes. One way to categorize them would be sorting them into performing notes & non-performing notes. Performing notes would be situations where the borrower is current on their payments. Non performing notes are situations where the borrower has stopped making payments or violated the terms of the note in some other way. The other way could be an expired balloon payment.

Both performing & non-performing notes trade at a discount to UPB. The discount you can expect as a note buyer on a performing notes is smaller than you might expect on a non-performing note. The reason being that the non-performing notes require more work to realize a return. You must either work out a new payment plan with the borrower or foreclosure to recover your investment. The bigger the discount, the larger the return. Assuming you an actually get paid.

Brian and I discuss the process of buying mortgage notes in detail during the episode. Perhaps a better question: “How are these mortgage notes created? What is the source?”

Creative Financing Real Estate Methods-the Key to No Money Down Deals

Find the source, cut out the middleman, and you put yourself in the most powerful position for profit, right? So the source of mortgage notes is to be the money lender yourself. You could lend hard money to rehabbers short term and easily earn 10%-15% returns on your money. However, unless you have a contact with a rehabber who is doing volume, the returns might be inconsistent. Instead you might consider creative financing real estate deals.

Here’s how it works. You purchase the property at a lower price, then resell the property at a higher price. You collect a large down payment and arrange terms of payment for he remainder-creating a note & mortgage in the process. Of course this is a very oversimplified version of events-I suggest attending the upcoming REI Note School masterclass mentioned below for a full training.

Many note investors begin investing in real estate through the conventional route. Maybe buy a rental property or flip a few houses. Then the drag of owning rental property wears down returns. Note investing removes the investor from the day to day responsibility of owning property, such as maintenance, evictions, vacancy, you name it. Note investing allows you to set the terms, set up the payment processing and just check monthly to see that the payments are being made.

 

Interested in Attending a Live, Full Day Masterclass in Creative Financing & Trading Mortgage Notes FOR FREE?

Note School trainer, high volume note trader, & REI Diamonds Show guest, Brian Lauchner, offers a full day “Gold in Notes” training coming up. You can attend FREE, and attend virtually if you sign up through www.REINoteSchool.com

Normally $97, You Can Attend FREE by Signing up at www.REINoteSchool.com

 

Brian & I Discuss Creative Financing & Buying Mortgage Notes

  • Originating Mortgage Notes Creates More Deals

  • Paying Higher Prices Still Generates Profitable Deals

  • Transition 100% to Buying, Selling, & Holding Notes

  • How to Do No Money Down Note Deals

  

Relevant Episodes: (There are 180 Content Packed Interviews in Total)

 

The transcript of this episode can be found here.
Transcripts of all episodes can be found here.

How to Make $300K/Year Investing in Mobile Homes with No Money Down

Investing in mobile homes with no money down is possible if you execute the correct strategy. Jay Samera joins me on the show to discuss this strategy in detail. Investing in mobile homes can generate quick chunks of cash. Brand new investors often do their first deal and net anywhere from a few thousand dollars to $10,000 or more. Many real estate investors avoid this strategy because of they don’t know the strategy. They would rather do a wholesale deal or a flip because it’s more mainstream.

 

 

  

Episode Sponsored by the Deal Machine:

Driving for Dollars Software to Build a Team of Drivers, Manage Routes, & Even Automate Marketing.  Free Access at  http://REIDealMachine.com/

 

The Mobile Home Market is Prime for Making Quick Cash

There is nearly no competition in the mobile home investing market. This is because the real estate investing community largely ignores the mobile home market. This lack of competition refers to the buy side-dealing with a motivated seller.

On the other side of the deal is the buyer who will occupy the property. Normally these buyers would be in the market to rent a home, but leap at the opportunity to buy rental property instead. This “buyer” is actually only buying the manufactured home, not the land beneath. Considering that fact, the purchase price paid for the house and the monthly rent payments still provide that buyer with a home they own. These buyers now have pride of ownership. They can maintain, paint, or change their home without asking any landlord. It feels good to own a home.

This is NOT about Buying Mobile Home Parks-You do NOT own the land here…

You don’t actually “buy the property”. Park owners actually own the lot and the mobile home owner pays rent. I normally pass on these deals myself because of this fact. It’s also a reason many gravitate toward wholesaling houses instead-as you’re doing deals on fee simple (fully owned) property which most real estate investors understand. Essentially you are buying & selling the mobile home itself. It might make more sense to think of this strategy like buying & selling cars for profit. There is a title, but no deed. The Park Owner (sometimes a real estate investment trust) holds the deed to the land. Here’s why that’s important:

5 Risks that Lead to BIG Losses & How to Avoid Them

Jay and I discuss 5 big risks which could cost you big during the show. One of the biggest risks to understand is that you’re at the mercy of the land owner. That park I mentioned above? They have the ability to write the rules for their park. Every mobile home park has it’s own set of rules. Some of these rules included approving any resident. Those approval processes could take months-while you’re responsible for paying the lot rent. Check out the episode to discover the other 4 risks.

Structure of a No Money Down Mobile Home Deal

No money down real estate investing is always accomplished through creative financing. You’re simply putting together sellers and buyers. Find a motivated seller and lock in a purchase price-often by arranging to make payments. Then find a buyer, set a purchase price, collect a down payment, and hold a note (or loan) for the balance.

Be sure to collect a larger down payment than is required to pay the seller, so there is some profit left right up front in the deal. Congrats-you’re just bought & sold real estate with no money. Well, I guess in this case, it’s actually a mobile home. Along these same lines, creative financing applies to various types of real estate-land, apartment buildings, houses, and of course, mobile homes (not actually real estate).

 

You also set the terms and the interest rate for the payments you’re collecting. Even though you don’t own the land, you’re still collecting cash flow just like an investment property. Many would agree this is even better since you’re not responsible for any maintenance or upkeep on the deal.

 

Resources Mentioned in this Episode:

www.TrailerCashAcademy.com

 

Jay  & I Discuss Investing in Mobile Homes

  • Structure of a No Money Down Mobile Home Deal

  • 5 Risks that Lead to BIG Losses & How to Avoid Them

  • Most Valuable Asset-Even if You Have No Money

  • Best States for Mobile Home Investing

  

Relevant Episodes: (There are 180 Content Packed Interviews in Total)

 

The transcript of this episode can be found here.
Transcripts of all episodes can be found here.

Investing in Real Estate with No Money Down with Chris Prefontaine

real estate investing Chris Prefontaine

$75,000 Profit Per Deal-No Money Down RE Investing

You might have heard people say that investing in real estate with no money down is impossible. The first thing to understand is that investing with “no money down” does NOT mean “no money at all”. My guest, Chris Prefontaine, has developed an entire system to consistently buy property with no money down. We are NOT talking about house hacking or buying a primary residence. These no money down deals generate cash flow over the long term.

There are a few financing options to invest in real estate with no money down. The first way is by using seller financing. You find a seller willing to accept payments on the purchase price. In other words, the seller is the money lender in the deal, not a bank. For example, you agree to pay $400,000 for a house by making monthly installments of $2,000 per month.

The second way is to use a lease option where you pay the owner a certain monthly payment. Additionally, you lock in a purchase price for a certain period of time. Let’s continue using the $400,000 example. First, you lock in a monthly payment of $2,000 with the seller. Second, you lock in the purchase price of $4,000. Third, you agree to pay that $400,000 price within 36 months.

You make your profit by finding a buyer willing to pay $2,400 per month and $440,000 within that same 36 month period. Of course, this is an oversimplified set of examples. Every no money down real estate deal is unique. You can negotiate monthly payments, credits, the purchase price, & the term of the deal. Your options are endless!

Has Covid Improved the No Money Down Real Estate Market?

Covid has affected many real estate markets throughout the U.S. I’m a real estate investor and I personally buy rental property in Atlanta, Chicago, & Philadelphia. These markets have become superheated through 2020 which caused inventory levels to drop. The lack of houses for sale has caused purchase prices to rise. I imagine your market is similar.

This low inventory can make finding a deal more challenging. However, your opportunity to make money is better because the prices are rising. Any deal you make has a higher chance of selling at a profit since the market is moving up. In other words, deals are more valuable now than they have ever been. So how do you find no money down real estate deals?

Which Sellers Will Accept a No Money Down Offer?

The real estate investing business is based on making offers. Newbie investors often avoid making offers for a variety of made up reasons. They blame their credit score or interest rates. There are two reasons newbies don’t buy real estate. First, they don’t ever make offers to buy investment property. The second reason is usually the cause of the first reason. They don’t know how to make the offer. The price, the terms, the closing date. These are confusing.

To make things worse, newbies often make their offers to the wrong seller. Banks selling REO property will NOT accept a no money down offer. They expect cash. A seller who needs the cash to move to their next house cannot accept a no money down offer. They need cash.

On the other hand, a seller who is seeking to avoid paying taxes on the sale of a house is the perfect seller to offer a no money down deal. Those sellers are the perfect candidate for a no money down deal. The next challenge is finding those sellers. The best method for attracting deal flow is through marketing. All volume investors know this secret. Get good at advertising and you’ll never be without a deal. How much advertising budget is needed to succeed? Much less than you think. You’ll have to check out the episode for full details.

 

This Episode of The REI Diamonds Show is Sponsored by the Deal Machine. This Software Enables Real Estate Investors to Develop a Reliable & Low Cost Source of Off Market Deals. For a Limited Time, You Get Free Access at http://REIDealMachine.com/

For a Masterclass on Doing No Money Down Terms Deals, go to:  www.REITerms.com

Chris & I Discuss:

  • Has Covid Improved the No Money Down Market?

  • Which Sellers Will Accept a No Money Down Offer?

  • Can this Business Run on $2,000/Month Marketing?

  • 3 Steps to Dominating Any Niche

  

Relevant Episodes: (There are 177 Content Packed Interviews in Total)

The transcript of this episode can be found here.
Transcripts of all episodes can be found here.

How to Buy Land with No Money Down with Mark Podolsky

How to Invest in Land in with No Money Down-Podcast Episode Highlights

Mark Podolsky, aka, The Land Geek, has been buying and selling land for more than 20 years. On this episode Mark & I discuss how to buy land with no money down. His specialty is buying vacant land very cheap-in the $5,000-$20,000 range, closing using quit claim deeds, and then reselling to buyers on terms at nice profit spreads and strong interest rates.

In other words, buy a parcel of land for $5,000, close, then resell immediately for $20,000. The trick is the terms-to that same buyer, Mark would collect $5,000 down and accept payments of around $200 until paid in full. Oh, he also charges interest on the $15,000 balance, so there is some additional profit in the deal long term as the payments roll in.

Mark uses direct mail & software to fire off automatic offers in bulk, allowing the seller to simply sign the agreement should they accept the offer. Using his system, which he shares with his students, he’s been able to build a substantial passive income while systematizing the business to run on near automation. Mark’s goal is to do a deal per day-or somewhere around 200-300 deals per year.

Buying Raw Land is Only a Good Real Estate Investment Strategy When

The way I see it, there are really only two ways that land investors make money. The first would be to buy land at a low price and then sell at a higher price at some point in the future. This is Mark’s strategy as we discuss in depth during the episode. The second way to profit from raw land is to buy the plot of land and then develop the land to increase value-build a house, rezone, or maybe construct a commercial property. This podcast does NOT focus on development, however we have had many commercial real estate developers on the show.

How To Profit from the Current Land Bubble

Covid has superheated the land market. People have been racing to buy land as outdoor recreation, safely away from any virus danger, has become very popular in 2020. What better place to camp, ride dirtbikes, or have an RV than on your own land. There is something seductive about owning land, it always has been.

Mark’s buying and selling of land, the strategy of leaving no money in the deal long term-is the perfect way to profit from the current land market. It’s all about velocity: buy & sell as quickly as you can. In my own experience flipping houses, the good deals are those that profit. The best deals are those that profit and close quickly! The less time you actually own the land in between the purchase and sale, the lower your risk of losing money or other liability.

You Gotta Avoid the Land Losers…

Some land is simply worthless. Areas such as Pennsylvania & New Jersey are often laden with environmental clean up sites. Old industrial properties with EPA superfund sites which could place the unsuspecting buyer into a huge financial responsibility. You can do quick due diligence on a potential land deal at EPA.gov

Another issue which could make land worthless is no road access. Think about it-you’ve gotta be able to get to the land you bought without encroaching on someone else’s land. I’ve personally passed on a large number of very cheap land deals because there was no access road.

If you were focused on land that you were going to build, you’d also need to be aware of flood zones, but the deals Mark and I discuss aren’t really affected by flood zones. Most of the buyers are using the land for recreation, not development.

Cash Flow from Land Deals

The big takeaway here for Real Estate Investors is that you can take a small amount of seed capital and build your cashflow up to $100,000 or more per year in a short time. Mark has students who have done this in as little as 18 months. And Mark sees no end to this trend-with 2.43 Billion acres in the U.S., there will be no shortage of land deals anytime soon.

 

Mark & I Discuss:

  • How to Profit from the Current Bubble in Land

  • Where the Best Land Deals are Located

  • Finding the Best Buyer for Any Land Deal

  • Knowing Which Land Deals Have Little Competition

Relevant Episodes: (There are 176 Content Packed Interviews in Total)

Resources Mentioned in this Episode:

www.TheLandGeek.com

 

The transcript of this episode can be found here.
Transcripts of all episodes can be found here.

John Matheson on How to Access Commercial Credit

John & I Discuss

  • System for Approaching the RIGHT Bank for Your Loan

  • Where to Get Financing-Even When Banks Aren’t Lending (2009)

  • John’s Favorite Deal Turns $300K into $3 Million

  • How to Develop Land WITHOUT Building a Single Structure

Listen Now:

Google Play

stitcher

Commercial Developer & Financing Oracle

John is the managing member of J. Healy Development, LLC. The company specializes in developing new projects into sustainable properties. John has been in the property development business for 26 years, and has been involved in transactions for developing, permitting, and/or financing of completed projects totalling over $50 million. Through J. Healy, John focuses on making multifamily, mixed-use, storage, and other commercial development properties more green and sustainable, lessening a property’s footprint while increasing its value.

John Matheson is also the CEO of Commercial Loan Success, a so­ftware and education platform designed to help small business owners and property investors make more informed financing decisions. Using the Commercial Loan Success loan analysis so­ftware platform, commercial borrowers and commercial lenders are able to communicate more e‑effectively, and borrowers are able to approach commercial lenders more confidently, already knowing that their transactions are lendable. Through Commercial Loan Success, John hopes to provide the resources and educational materials that small business owners, entrepreneurs, and real estate investors can use to confidently obtain financing and grow their businesses profitably, all without being at the mercy of the predatory lenders.

Relevant Episodes: (There are 114 Content Packed Interviews in Total)

Resources Mentioned in the Episode:

web.CommercialLoanSuccess.com/diamonds

 

Do You Know Anyone Else Who’s a Real Estate Investor? 

Do You Think they’d Also Enjoy this Episode?

Please Forward this Link & Tell Them to:

 

Sign Up for the REI Diamonds Weekly Podcast Your Copy of “Become a Wholesale Real Estate Master”

Just Go to www.REIDiamonds.com to Download a Copy & Check out Recent Popular Episodes.

REI Diamonds Show with Matthew Lesko on Researching Government Grants

Researching Government Grants

Matthew Lesko & Dan Breslin Discuss:

  • Life in the New Shared Economy
  • How to Find Government Money for Real Estate
  • Asking the “Right” Questions When Searching for Free Money

Listen Now:

More Info About Matthew Lesko at:

www.GrantsAndCrowdFunding.com

www.LeskoVideoEbook.com

Recent Popular Episodes

Do You Know Anyone Else Who’s a Real Estate Investor?  Or Trying to Become a Real Estate Investor? Do You Think they’d Also Enjoy this Episode?

Send them this link and tell them to:

Sign Up for the REI Diamonds Weekly Podcast Your Copy of “7 Sources of Off Market Deals”

Just Go to www.REIDiamonds.com to Download a Copy & Check out Recent Popular Episodes.

Leave a Reply & Remember to Mention Your Geographic Market.