All Forum Posts by: Account Closed

@Mojid Salawu I see owners willing to "owner finance" not -rent to own- everyday. Owner financing is where the owner is acting as the bank they are holding your mortgage. With owner financing you close on the property just as you would if you received a mortgage from a bank. It is a numbers game, I send out about 30 offers before I get one owner willing to finance.     

@Fred Johnson the building was being used as a storage facility. I knew from speaking with the agent and the owner that they were not going to provide financials. For the items being stored they had to pay $500 a month until the items were removed. They left the items there for about two months and paid a $500 clean up fee for the items left behind. How this property paid for itself. Since it was 1.5 acres in the city, I used it as a storage lot as well and companies that needed to store something I charged them $500 a month for a portion of the lot.     

@Aurelien Bonin I'm located in Charleston, SC.  

I purchased my commercial property out of necessity. I have several businesses so when I purchased my first commercial property it was because I needed a warehouse and space for those businesses. I had and currently have a towing company and a car dealership. When I first started out I didn't need much space however as I grew (i.e. buying more cars to sell at a time) I needed more space. At first I used a small space that I rented however I soon outgrew that space. So I just rode around in commercial areas and I stumbled on a warehouse in the city sitting on 1.5 acres. I saw an old sign so I took down the number. At this time I was still a full time agent as well. So I called a few commercial agents and asked them about the property and the owner. All of the answers that I received, was don't call the owner he won't sell the property. Several of them had tried to purchase the property and were unsuccessful. I figured because the building was a little run down they may have lowballed the owner. Which I'm sure upset him and they were rejected. I learned years ago if you need or want something like a property never upset the owner. I also knew the value that the building would bring to me would far out weigh the cost that the owner wanted. I called and made him an offer. Which was full price by the way. And I closed in 30 days. There is a little side note. I didn't use bank financing. I never do. Important piece of info: I offered him full price which was $58k I put $1,000 down and had him hold a mortgage for 7 years at 5% for the balance of $57k with monthly payments of $500 a month. And a balloon payment of remaining balance after 7 years if property isn't paid off. I paid him $500 a month for 3 years and I paid off the property. Just so you know when I say I closed. My attorney closed on the property my corporation was placed on the deed and the owner held the first mortgage position. when I owner finance properties my corporations name always goes on the deed if the property was owned free and clear.  

Have you tried contacting expired listings. How I used to pick up bigger listing is I would contact other brokers at other companies and ask them about their current listings. Then I would throw a question about hard listings that they have missed out on. Sometimes they will tell you about all of the available properties that you did not know about. Like where I am located there was a $26,000,000 oil refinery and I contacted the broker and asked have they had any hard leads and I got all of the specifics. He said no so I started contacting oil companies who were either looking for or just purchased that same type of refinery. I found a broker at Exxon and we started to do the deal to purchase this facility. But a Russian company came and purchased it cash after our initial meeting. So you never know what you may come across 

I always went big because you will go down a worm hole looking for information and you end up stumbling on leads or listings. 

@Ashley Hamilton Keep making the moves you are making. Any time there is criticism means you are doing something right. More power to you. Success on top of Success.   

@Darius Kellar My question to you is should she have focused on growth instead of cheap rentals. You have to understand or listen to what she said. She came from poverty and she was only making $22k a year. If you don't know and no one has ever taught you about owning real estate. You must first start where you understand. I know to seasoned investors 10 houses valued at 469k isn't a lot but when you come from nothing or very little that is worth millions. Also she had to start where she understood and master it. I know we all want to think BIG and grow RICH. But sometimes we have to be able to manage a dollar before we can manage a million. Also owning 10 properties and managing 35 additional properties isn't a small feat. To me that is a very big deal because she's building her business on a solid foundation. With that foundation she can potentially put her plan into over drive and go for higher equity and higher rents in the near future. We should never despise small beginnings.

@Joey Allison Buy as many units that you can for cash. The complex or units should be able to cover your $40k income and payoff your debt at the same time. You kill two birds with one stone. You may have to buy units in another city but you can get bigger bang for your buck 

@Mouhamad Rahal in todays market there are so many apps that give you cash directly into your account like cash app, venmo, with these company's the customer cant get the cash back i.e. like if it was a credit or debit card transaction they could dispute the charge and potentially get their cash back. How do I know I had a lady pay with a debit card and stated that it was a illegal transaction and tried to get the payment back. I had all of her info so they realized she was trying to commit fraud.     

@Jason D. cool