All Forum Posts by: David Flores

@Benjamin Hurwitz

Do you still require 20-25% down payments for this alternative lending?

@Rahul Deshpande

Yeah for sure! DM me if you have any questions

@Donald Kelley

Interesting deal. Was this your first no money down investment?

@Michael James Rutter

As long as the numbers work yeah you can do this through private money or through the seller (seller financing). I wouldn’t worry about people saying your going to be over leveraged because it already sounds like you will be a 10k loan will barely move the needle on anything. But if it helps get the deal done and the numbers are still solid go for it. When taking out 2 loans like this always try to aim for at least a 10 cap. You will need the extra cushion.

@John F. Hebert

Yeah good luck! Having someone in the loop there will definitely help. The best way to get a deal done in that area would be a pocket listing (off-market) to avoid all the comp.

Keep me posted man! Let me know when you get one of these deals done and I would love to have you as a guest on my podcast.

@Robert Carlson

Hi Robert, i am sure you got the information you need by now with all the posts. But this is the capital you will USUALLY need to save.

But, you can set up a deal any which way you want if there are agreements. You can ask the seller to to pay for these. Let them know that would be the only way the deal can get done as you don’t have the capital to fully complete the deal. You can increase the purchase price a little to get them to accept this. You can also ask your partner for the money. Give them a little more equity or let them know you will pay them back once cash flow starts coming in.

You have to think creatively. On one of my deals I increased the purchase price by 20k to make the seller comfortable with seller financing. I ended up putting no money down and my numbers still worked great! That property is cash flowing about 600 dollars a month right now. Get creative but make sure the numbers still work and you can figure out any situation.

@John F. Hebert

Yeah that deal worked out well for the both of us. Sometimes you cant let it become a bigger ego game. I gave him 20k extra on the price but i walked away with barely putting any money down and I got an income producing property. Creative financing is the way to go.

I don’t want to strip your hope from nj/ny area but it is hard to play with the sharks. Not saying its impossible, I dont think anything is impossible. But, it will take a lot of time and effort to finally land on something you will like and the numbers agree. I have put in about 20 offers in hudson county and was outbid on every one, usually from all cash offers.

Totally against the real estate worlds advice but we ended up settling on a single family condo in weehawken for my personal living place. Through appreciation over the next couple years its not a bad move but getting a house hack situation would have been way better. We plan on living in this condo for 1-2 years and then renting it out and moving onto the next one. Hopefully by then the market will drop, but i think hudson county will never be cheap. Too much demand. I noticed a lot of people from NYC are moving here, cough cough lol

@Austin Carlisle

@Austin Carlisle

I just started a podcast on this subject, now on Spotify called “No Money Down Real Estate Investing”. You should check it out, I do a deep dive into my deals and will have other guests on every week to talk about no money down investing.

Anyway, to answer your questions.

1. I found my deals through pocket listings from listing agents I created a relationship with. 1 of them was straight off the MLS so dont exclude this either. Remember people who list their homes on the MLS are actual motivated sellers usually. Cold calling and direct mail is harder to find motivated sellers.

2. My negotiation strategy was simply asking the seller/listing agent if they would be interested in a seller financing deal. You will never know unless you ask. If they are curious as to what it is I usually send them a letter outlining the deal and then ask them to hop on a call with me so I can explain how it works.

3. Structure of my deals are usually 5.5% interest for 25 year amortized with a ballon at 5 7 or 10 years. This will range depending on area/seller. One of my deals is a straight 5 year loan at 5%, if the numbers work this is my favorite.

@Andrew Postell

Ask the seller or listing agent if seller financing is an option. Say you can only put down 10%, ask the seller/listing agent if they can put down another 10%. You would be holding 2 loans at the point so make sure the numbers still work but ask to do a 10% loan of the dp from the seller at 6% interest for 10 years. See what they say, you never know unless you ask. Seller financing is how I got my first 3 deals done. Its a powerful tool that can help you scale quickly.

@John F. Hebert

House hacking is definitely your best option. It will take time to get a deal as the market is saturated in Nj/NY. You are truly up against sharks. When/if you see a good deal people will pounce and out bid you with all cash offers. Check out the deals I have gotten done and that may inspire you to look in other areas. You can also check out my “No Money Down Real Estate Investing” podcast on Spotify. I am from north jersey and understand the struggle.