All Forum Posts by: Matthew Von Dwingelo

@Asad Ali

I agree 100% with @John Collins. The great thing about Real Estate is that you are able to leverage your funds with the bank/other investors. 

I would also like to add, You could always explore the option of purchasing with Creative Financing. Creative Financing will allow you to leverage that $40,000 to buy more properties or to use it as a singular downpayment for one property. By Creative financing I am referring to purchasing Subject to, using owner financing, lease purchase etc. 

You don't HAVE to purchase the home cash. 

Here is a link to a BP Podcast on Youtube about Creative Financing, Give it a listen my friend! 

https://www.youtube.com/watch?v=55bWFzPO9wI

Best of Luck, let me know if there is anything I can do to help! 

@Marko Balac

Hey My friend, I'd say the right marketing strategy likely depends on your marketing budget. 

Best Cheap options (In my opinion): cold call FSBOs / Expireds / D4$ leads; you can just use Zillow directly to find the For Sale By Owner homes, or a 3rd party service like the Red X or Mojo to get FSBO / Expired data. Then you can use a dialer & just cold call away! I see you say you're a bit busy, so I'd recommend maybe try and leverage other people's time. Maybe use a V.A. for the cold calling & get you some bird dogs to drive around and shoot you pics/addresses of run down homes. 

But if you have the ability to employ a marketing budget I recommend doing some PPC Digital marketing; Digital marketing will allow you to leverage your time to the max as it will be generating motivated seller leads on autopilot. I'm the founder of a full service Digital Marketing agency and if you wanted to explore that avenue let me know (Whether you want to do it yourself or want me to help you, I'd love to help any way possible!). My #1 recommendation would be to focus on Google ads. If you’re wanting to do some Digital marketing on your own & you want the highest performing strategy, I recommend running Google ads to a blog style landing page. You can use a website like ClickFunnels.com to build out landing pages. Right now they are running a christmas special, so I attached the link directly to the sale! They also have a cheaper monthly service as well. Let me know if you are wanting to do it on your own, I’d love to give any help in any way possible!

I know this is almost more of relationship advice than RE investing advice... lol but I'm asking for my brother... he is really wanting to get into investing in RE, but his Girlfriend is just not a fan of it to say the least. 

To give some background on her situation she didn't really grow up in a world where there was "An Abundance of Money" So my opinion is she doesn't really believe it's possible for her to be successful in RE. And that is what is keeping my brother from taking a step forward and beginning to invest in RE. 

Any advice would be appreciated, I am just going to forward it all to him, lol! 

Thanks! 

Hey Ryan, Thanks my friend! I really appreciate it. 

See in our position we are not by any means the most cash heavy, so creativity was really the only way to structure this deal and get our feet wet with buy & Hold real estate. Not an expert by any means, but Subject to is an amazing strategy to be able to acquire deals while keeping costs low, it is definitely working out for us (As of now) lol. 

I would absolutely love to network with you a bit and see if there is any value I can pass on to you that may help you do a Sub-to deal! 

Investment Info:

Small multi-family (2-4 units) buy & hold investment.

Purchase price: $379,900
Cash invested: $43,000

Triplex in Downtown Decatur that we purchased Subject to the existing mortgage.
Total investment is about $43,000, that is consisting of $13,000 down + $30,000 in repairs.
It's now a $650k Property!

What made you interested in investing in this type of deal?

It is all about the pursuit of financial freedom!

How did you find this deal and how did you negotiate it?

Cold calling, and my partners and I stopped by the place to meet with him, sat down, and negotiated wed purchase it subject to the existing mortgage.

How did you finance this deal?

We purchased it Subject to the existing VA loan, then raised private funds to cover the rest of the expenses (All in all, we invested $0 of our own money)

How did you add value to the deal?

Remodeled every unit

What was the outcome?

We are keeping it, and just cashflowing.
We are doing AirBNB in one unit, and rented long term for the other two units.

That right there depends on your marketing budget! 

Cheap option: cold call FSBOs; you can just use Zillow directly to find the For Sale By Owner homes, or a 3rd party service like the Red X or Mojo to get FSBO data. Then you can use a dialer & just cold call away!

Higher financial investment: Digital marketing; I am the owner of a full service Digital Marketing agency and if you wanted to explore digital marketing let me know, I’d love to talk more about it! My #1 recommendation is focus on Google ads. If you’re wanting to do some Digital marketing on your own & you want the highest performing strategy, I recommend running Google ads to a blog style landing page. You can use a website like ClickFunnels.com to build out landing pages. Let me know if you are wanting to do it on your own, I’d love to give any help in any way possible! 

Hey William! 

I actually closed on my first subject to deal about 5 months ago. It is an amazing avenue to keep your financial investment on the low end. But you definitely need to familiarize yourself with the Due on Sale clause. Due on Sale gives the bank/lender the right to call the loan balance due upon the sale of the property. So if you purchase subject to, you are likely running the risk of having the bank call the loan due and if you don't pay off the loan they can foreclose on the house. 

I am not an attorney, however it is typically unlikely for the bank to call the loan due as long as you continue making payments. 

Here is a link to an awesome YT video that will break down Sub to investing! 

https://www.youtube.com/watch?v=qVv7a8npk6E

Best of luck my friend, let me know if there is anything I can do to help!

Hey my friend, I'm an expert by no means, but I have wholesaled a good bit of deals. 

My recommendation is just to get a mold expert to come and bid the job for you. That will give you peace of mind while also hopefully giving you confidence that it is still a good deal even with the mold remediation. 

Best of Luck my friend! 

Hey All, 

I am looking to connect with Multifamily/SFH investors here in Atlanta, GA. (Not trying to sell a deal etc, just looking to connect!)

Shoot me a connection request, I look forward to talking with yall!  

Are any of you purchasing RE subject to an existing mortgage? What're your thoughts on it? We are highly debating the idea of going full focus on just purchasing subject to because of the ability to purchase with so little cash investment up front. 

Would love to hear any tips from those of you who are more experienced/ just have some good input!