1st Syndication Deal - No Money Down

[Huy N.]

Hi Fellow Investors,

As promised, This is my 1st syndication Deal. I actually didn't know that i am doing syndication until i heard one of the podcast that talk about.

This is again back in the golden day where you can pick and choose from the MLS. This one was a short sale and the 1st buyers back out. It came back to the market, hit my radar, mls sent me an email. I took vacation/sick day that afternoon to rush to see the property. It is a beautiful property need minimal to no repair and the bank is asking 105k. ARV is 140k.

I immediately go back to the car, call my gf. She was also a Realtor at that time. and immediately submit an offer to buy at asking price.

I immediately call up 3 family members and show them the number. Ask them to join. Deal structure is simple: We divided the income, equity and expense evening among 4 of us.I received 3 solid yes.

But the problem is that I have no Money! I just recently purchased my Homestead and 2 other SF rentals back then. The solution is simple: one family member offered me a loan for my portion in the deal at 6% a year interest only. Done Deal!

Although we offered cash The short sale process took 9 months to complete and it was a PAIN, BIG PAIN. i won't talk about it here since this is success stories post :)

After purchase, we cleaned it up, wait for Black Friday to get some stainless steel appliance to put it in, list it up on MLS and get good family to rent in as 1600$ a month. They are still with us right now, love the house so far and even want to purchase it . ARV right now is around 160k for this house.

And yes, all expense, income and appreciation are divided evening among family members as agreed until now, no issues...yet.

[Brandon Turner]

Congrats @Huy N. ! Awesome! How much did you end up paying for it, if I can ask?

Also - I love that you used the "Black Friday" trick for appliances. Nice work!

[Huy N.]

Hi @Brandon Turner ,

Yes, I pulled up my spreadsheet here, we ended up spending total of 107,977. This include closing cost, make ready clean up,handy man, garage door opener, appliance, misc Material/supply from Home Depot, and big thank for my gf for reimburse me some of her commission!

[Charmaine M.]

Congrats on the out come!!

I have to say that is one amazing looking house and well done.

[Ervin Taylor]

@Huy N. very nice, great job

[Huy N.]

Thanks @Ervin Taylor and @Charmaine M.

[James P.]

@Huy N.

Congratulations!! I am really happy for you.

[Colin L.]

Originally posted by @Huy N.:

and big thank for my gf for reimburse me some of her commission!

She sounds like a keeper. ;)

[Martin Zawarski]

Originally posted by @Huy N.:

and big thank for my gf for reimburse me some of her commission!

You are one lucky dude. To have a GF like this who supports your dreams to get into this business. I just structured a deal and getting my son ( a lawyer ) to go in 50/50. And I get free labor from his wife who will remove wallpaper and paint. This house doesn't need much either, just a refresh.

[Cuong Le]

@Huy N.

Thanks for sharing and congrats on the deal! Patience paid off very well. Did you have a written agreement that your family signed for the money?

[Huy N.]

Thanks Everyone for the complement! Yes, @Martin Zawarski I'm lucky to have a supportive girlfriend and family. It would be foolish not to take advantage of that!

However, every person has his or her story, I had mine as well. The important is that we must not take it as an excuse and rather use it as an "unfair advantage" to keep pushing it toward our goal.

i try to kick myself every time i start whining or about to say "because" to excuse myself to do something that i should! I would love to encourage people to get rid of the word "because" in the head and stop the habit of whining. It will help not only in investment but every aspect of life!

[Huy N.]

Originally posted by @Cuong Le Le:

@Huy Nguyen
Thanks for sharing and congrats on the deal! Patience paid off very well. Did you have a written agreement that your family signed for the money?

Hi @Cuong Le ,

Unfortunately, not. No written agreement for this deal, although i should. This deal is setup base solely on the trust relationship that i won't take the money and run away one day :d.

the ironic thing is that i just ran into issue with a different family member although we have a signed written agreement, on a different deal! Oh well, that is another story to tell....

[Richard F.]

@Huy N.wow thanks for sharing our amazing story! Whats more inspiring is how your family and gf supported you. Smart families do that; when they see an opportunity like the one you presented them, they move on it. Wishing you all the best in 2014!

[Huy N.]

Originally posted by @Richard F.:

@Huy N. wow thanks for sharing our amazing story! Whats more inspiring is how your family and gf supported you. Smart families do that; when they see an opportunity like the one you presented them, they move on it. Wishing you all the best in 2014!

Thanks @Richard F. ! Same to you. This proved the book concept that it's not necessary to have money to make money. It's action, enthusiastic, and a strong financial education that attract money.

[Frankie Woods]

Congrats @Huy N. , awesome find and even better use of creative financing!

[Mary Ann]

@Huy N. 

So yours is officially my quote for the 2015 new year : "It's action, enthusiastic, and a strong financial education that attract money."

[Michael Germinario]

Hi @Huy N. ,

Congratulations my friend, I'm sincerely happy for you!  This is a very positive and motivating forum post, thank you for sharing and inspiring.

The house looks beautiful, the deal sounds like a win-win for everyone, congrats again on a job well done!

Happy investing,

Mike

[Huy N.]

@Mary Ann I'm glad to be quoted!

@Michael Germinario Thanks for the comment! I'm sure you have awesome stories of your own. Please share with us so that we can all learn and help each other.