First Creative Deal & No Money Down! Learning New Skills

[Tucker Cummings]

I've finally landed my first creative deal! I started investing in Real Estate in December of 2019 and in that time I have acquired 8 doors. Each step along the way I tried to learn a new skill:

• First Deal - Dec. 2019 | Just buy the deal, understand the process and make it as easy as possible. Bought a house on MLS for 100k, 20% down conventional, rents for $1200/month
• Second Deal - October 2020 |Learn how to BRRRR. Nobody would lend to me with the pandemic so my wife and I bootstrapped and saved every penny we could. We bought a house for 78k, put 15k into it, put a HELOC on it for 80% LTV, appraised for 124k so we got 99k in liquidity out of it. The credit line is not drawn down at all and also rents for $1200. Netting about $950 after taxes, insurance and property management.
• Third, Fourth, Fifth Deal - March to April 2021 | Learn how to borrow private and hard money. I bought these deals from wholesalers, all with BRRRR intentions. I was able to acquire these deals with just closing costs and origination points for borrowing the money. These deals are getting wrapped up now for their rehab and will rent for $1250, $1285 & $1500 each. What I noticed on these deals was how much equity I was giving to wholesalers so my next skill was...
• Sixth & Seventh Deals - June 2021 | Source deals myself. I set up a website, started making content, driving traffic to my site and did outbound prospecting as well. In two months I've bought two more BRRRR properties. One is turnkey and I used a 15% down loan but I'll have 32% equity. I'll plan on refinancing in 6 months or so to get my money back.... or maybe I won't, still deciding and I have options. The other one is a BRRRR deal that I'm buying for 105k, 19k repairs and ARV of 167k - done with a subject to repairs appraisal.
• Eighth Deal - June 2021 | Do a creative finance deal. This is heart of this post and what I'm so excited about. I'm taking over the existing loan with 96.5k left on it and the property is turnkey. I also created a promissory note for 20k, which will be due when I refinance the property 6 months from now. ARV on the property is 160k, so when I refinance at 75% LTV, that will be 120k and I will have more than enough to pay off the note and the existing loan. Even if the property doesn't appraise for 160k, I'll only have to owe a little bit to pay off the note and mortgage.

Been a crazy ride, here's to getting more deals done!!