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All Forum Posts by: Dashon Jones

Dashon Jones has started 9 posts and replied 78 times.

Post: How I use creative financing to get my first 6 units.

Dashon JonesPosted
  • Residential Real Estate Agent
  • Paterson, NJ
  • Posts 78
  • Votes 42

@John Kim both of my deals actually came off of the mls, this week I will start my own marketing to find deals

Post: How I use creative financing to get my first 6 units.

Dashon JonesPosted
  • Residential Real Estate Agent
  • Paterson, NJ
  • Posts 78
  • Votes 42

@Nick G. 

The only draw back to the cards is not being able to predict the future. When I first came up with the plan, I was already planning on holding the property for a year before being able to do the cash out refinance. What I did not predict was the deal taking 10 months to actually close. I had a 15 month 0% interest promotion and knew that I needed at least 3 months of seasoning before even applying for the mortgage so that no questions or red flags would be raised. Technically you are not suppose to use debt to borrow debt (the mortgage), being that the money was in my account for 3 months already, they just considered it mine. The problem is when they see the huge deposit.  ( out of site, out of mind)

I only planned on paying the actual interest rate of card for a few months, but being that the deal took so long and my clock on the money was going the whole time. By time I closed, I was only at 0% interest for 2 out of the 12 months I planned. I was able to rectify this by rolling most of that over to another card at 0% interest for another 12 months which bought me more time to do the cash out refi which I am actually having the appraisal done for tomorrow. 

Post: How I use creative financing to get my first 6 units.

Dashon JonesPosted
  • Residential Real Estate Agent
  • Paterson, NJ
  • Posts 78
  • Votes 42

@Nick G. 

I was aware of the seasoning period prior to me getting the idea because I had called so many bank and asked so many questions, With that being said, I did not go to the bank to apply for the mortgage until the 3 months were up because I knew they would question it. Technically you, aren't suppose to use debt to borrow debt (mortgage). 

The back fire to what I did which I also found a way to smooth out is that it took me 10 months to actually close on the property which was 7 months later then I anticipated and my 0% interest was only set at 15 months. So 10 months plus the 3 month seasoning period didn't give me much time to breather interest free. But I ended up rolling most of that into another 0% interest promotion to buy me more time to do the refinance; which I'm am actually getting the appraisal for that tomorrow morning. 

Post: How I use creative financing to get my first 6 units.

Dashon JonesPosted
  • Residential Real Estate Agent
  • Paterson, NJ
  • Posts 78
  • Votes 42

@Shane Kalepp 

Congrats on graduating. To me it is the smartest thing to do. I say sacrifice the a year to save up instead of jumping into a rental to pay someone else's mortgage. I look forward to hearing your success story.

Post: What was your "AHA!" Moment with BiggerPockets?

Dashon JonesPosted
  • Residential Real Estate Agent
  • Paterson, NJ
  • Posts 78
  • Votes 42

I haven't been very active up here, but I just got my "AHA" moment today after sharing my first post yesterday looking to inspire beginning real estate investors to get started and post was belittled by a veteran and others came to my defense. It truly showed me how powerful of a platform this is and what we post in or stories are experiences really matter. I plan to be a more active user from now on. 

Post: How I use creative financing to get my first 6 units.

Dashon JonesPosted
  • Residential Real Estate Agent
  • Paterson, NJ
  • Posts 78
  • Votes 42

@Mhamed Channaj 

No problem. Im really loving the how active this site is. 

Post: How I use creative financing to get my first 6 units.

Dashon JonesPosted
  • Residential Real Estate Agent
  • Paterson, NJ
  • Posts 78
  • Votes 42

@Wilson Churchill 

Yea I agree, I thought I was being quite savvy when I discovered this as a way to do the deal and it actually worked. And as you said, its so easy to get another promotional period or balance transfer at 0%, I thought the risk were well worth taking. I'm actually in the process of my end game which is doing a cash out refinance to pay the cards off, which essentially wraps all the debt up into a mortgage and my payments only increase like $150. 

Post: How I use creative financing to get my first 6 units.

Dashon JonesPosted
  • Residential Real Estate Agent
  • Paterson, NJ
  • Posts 78
  • Votes 42

@John Kim  & @Marcus Kennedy 

Thank you for coming to my defense. I too thought the comment was a bit over the top coming from a mentor in the industry, however, I do not fault @Brian Gibbons for his feelings. I just think the delivery could have been more pleasant in the first comment. 

As I already mentioned, I do understand that this is not a long term investment strategy but it did provide me the means I needed to get rolling in real-estate. I'm glad that you gentlemen saw the post for what it was. It was really encouraging to read your comments because this was my first time posting my story and to have that as my initial feedback was really a blow to the gut. I was really considering never posting again, but you guys showed me that my experience is worth sharing. From what I hear, it  is really difficult to obtain mortgages these days, and if our bank accounts are not flush with cash, then we need to be as creative as possible until it is. 

Also @Brian Gibbons I did say that deal was $1,000 a month cash flow positive even after paying all expenses and the credit card payments with a 0% interest rate (cheaper then any other lender I've spoken to, hard money, private money or any money lol). At that rate what would the numbers have to look like to actually be a deal in your eyes?

Post: How I use creative financing to get my first 6 units.

Dashon JonesPosted
  • Residential Real Estate Agent
  • Paterson, NJ
  • Posts 78
  • Votes 42

@Brian Gibbons Thank you for your feedback. In your 30 years of experience I am sure you have a solid system or foundation to run your business, which I am sure I will have as well when get there. As I said in my post I am still new and I got started as I could. This is not something that is considered to be a long term strategy. Maybe these were not the "best"ways to obtain the properties but they worked for me and I am pleased with the results. I considered it be creative because I was able to make the deal happen. Just because it is not one of the traditional ones that you named doesn't make me wrong, you are entitled to your opinion. The purpose of this post was for people to not limit them selves and to inspire them to get started. Once again, I never said do what I did, I said get started and thats the message I am looking to send. 

Post: How I use creative financing to get my first 6 units.

Dashon JonesPosted
  • Residential Real Estate Agent
  • Paterson, NJ
  • Posts 78
  • Votes 42

@Joshua Dorkin  I took your advice from the podcast to share my story. Hopefully it helps someone.