All Forum Posts by: Jerry Zhang

@Jonathan Greene

I appreciate the response back. I have some experience doing this and I reacted when I heard that 99% of agents don't know what seller financing is. 

I was talking about multifamily closer to 10+ units like you said than just 5 units, so there might have been some miscommunication there.

I appreciate and respect you, just wanted to make sure the facts were straight. I do tend to be someone who ask questions and only wants to hear what they want to hear, but at the same time if it's a bad idea. I'll review any feedback and try to improve as a real estate investor.

@Jonathan Greene

Hey Jonathan.

1. It's not true that 99% of Commercial real estate agents don't know what owner financing is. In fact it's the exact opposite, 1% of commercial agents don't know what owner financing is after doing this model daily and speaking to 100's of commercial agents. I doesn't sound like you have a lot of experience doing creative finance deals, and your overblowing numbers crazily.

2. Why do you want to work with agents who don't understand simple things like owner financing in real estate, it's really simple. It's like going to a restaurant and asking the waiter do you have any vegetarian options? Your telling me something as simple as this 99 out 100 agents can't do this? This is not accurate at all. 

3. I have done agent outreach, just last month got a 25 unit under contract for 6% down.

4. Again 1/10th of the pocket listings out there? That's not true if there was only 1/10th the amount of pocket listings from 3-4 years ago. The entire agent model would perish because most of the time off-market listings are new leads that need to be prepared before hitting the market. No pocket listings = agents aren't even calling for new leads anymore, rising interest rate has nothing to do with an agent's ability to generate leads.

I have a goal of getting 12 owner financing deals for 2025.

I'm currently building a list of 1,000 multifamily agents to do monthly agent outreach to get off-market pocket listings with good creative financing terms. The plan is to have 25-50 conversations per day with agents, make 3 offers a day. And wholesale about 80% of these multifamily deals.

Does anyone have experience doing agent outreach for pocket listings similar to my plan here for multifamily? How successful is this in getting you deals?

Hi,

I'm trying to improve my close rate as a multifamily investor and wanted to gather some insight on what others have for their closing process from start to finish. 

From your first call (off market) to a signed PSA how many calls do you take. What do you focus on for calls 1-4, how soon are you locking up a signed PSA?

Hi,

I spoke with a multifamily seller recently, and he told me that he was involved in a class action lawsuit with Pace Morby with the nature of it seemingly around the Sub-to deals he structures. I wonder if anyone else has heard about this lawsuit. are Sub To creative finance deals highly illegal or litigable in the multifamily space? 

Hi,

I just hopped of a call with a seller for a property where the terms were fine. However they requested a 5 figure EMD and we usually try to close with one in the 4 figures. What are strategies you use to convivence sellers to close with your EMD offered?

 I'm just going to tell him to rent for the first 2 years.

He doesn't have any documents, so we are the only ones that can close with them. We only buy seller financing deals because their easy to do. He tried listing with a broker and couldn't sell it before. My goal is a win-win situation, and it's basically for him to do owner financing and rent. 

He wants to move to Florida, Avg house price is $350k there. If he get's 500k cash, he's paying 50k in taxes at close. Buying a new house 20% down payment. He's out 70k. Monthly debt service at 7% interest. He's paying $22k per year for mortgage alone, beside the mortgage he and his wife need 30k a year to live on. They can retire for 7 years before they are ****ed. Need to get it through to him and get him to sign.

Hi,

I'm currently working on a deal with a seller who's looking to retire without substantial savings and buying his mobile home park with creative financing. We're giving them about $90k down but after he sent the paperwork to the attorney he has cold feet and wants to back out of selling. Because he's worried if the park defaults he will be screwed. Wondering how to build trust in him to do seller financing with us after this.

For reference we have 100% close rate, my thoughts approaching this is to counter back and say the risk of default is very rare, if he's worried about the park defaulting he just needs to save up $20k in reserves and he'll get paid $70k in income for the park for the next 5 years while he waits for balloon. If we default he's actually getting paid more as well as the park back.

Thoughts?

 Not super dangerous, seller is netting 80% of purchase price at close. They only have 20% of purchase price they're risking. Just trying to find out how to secure remaining 20% for seller

Hi,

I'm wondering what the official term for this type of deal. Say we buy a property for $1 million, but we structure it so it's 0% down but a bank/note buyer is in place at closing to buy the note from the seller at 80% value so they walk away with 800k in cash. 

What's the official term for this kind of deal?