All Forum Posts by: Ray A Delfi

Here my idea, please share your take on this strategy and it may have been already be a thing, but I literally just thought of it at the dinner table and abruptly left the table to draw it out on my dry erase board.

Someone comes to me with deal and they need cash to finance it. It’s their first deal and may not be as knowledgeable and don’t have any cash to make an offer. I offer them 100% financing with the following terms:

- provide a detailed deal analysis

- Schedule for rehab (timeline for each phase, cost for each phase, list of contractors and repairs needed)

- Payments processed through an escrow agent to pay contractors that meet the said schedule

- Right to title with improvements if any one the terms are not met

- 10% points on the loan or 20% of profits for payment which ever is greater

Being that the project is 100% financed and they won’t have any “skin in the game” I don’t think it would be completely unreasonable to have right to title with such strict terms. Yes, it may be micromanaging but would act as a good teaching tool and low risk for someone that has cold feet and is scared to jump in. They would do all the heavy lifting and research on the front end we’re you would just do your due diligence and confirm the numbers and ensure they meet their milestones. I think it’s a win win as long as the deal makes sense and you have an exit strategy to be able to sell or continue to project and still make a profit.

While serving in the military this book as provided me such an insight on the human mind, motivation, and leadership. At any point in your investing journey this book will help you find the motivation within, fix what’s wrong with your leadership style and really find out what motivates people. This discussion is meant to have you read the book (does not need to be from cover to cover) and share how this book could help improve your Realestate investment journey, business or lifestyle. Think of all aspects of Realestate, tenants, brokers, property managers, etc.

@Jared Vidales What I’m about to say is not in a tone of disrespect just having fun while trying to make a valid point: Is it legal? Depends on if you want your money back, and how would you explain to the judge that “I handed over 5K in cash to two strangers while, ‘giving them an offer they can’t refuse’ (in a Chicago 1950’s Gangster accent) “. But, sure it’s legal to donate 5k. Is it ethical? No, doing something like this will make us look like criminals not professionals. Who would trust a guy with a suite case full of money? Do airlines accept cash? Better yet, how about we just walk into houses and make it rain 5K in singles and have them pick it all up. Are you that guy that would evict your tenants, baseball bat and a can of gasoline??? Again? I mean no disrespect, just having fun sharing how crazy my imagination could be. However I’ve heard someone offering cash to squatters to move out the property they just brought, to avoid months of litigation and processes. Now that’s ethical, smart and and tasteful.