All Forum Posts by: Shiela R.

Hi @Jackson Rottenberg. Great question. I've done the majority of acquiring property with creative financing - seller financing or buying on terms. I would highly recommend this! Now, if your local market is super hot it is harder to find these types of deals, but not impossible. Really, you are looking for motivated sellers or distressed properties and/or sellers. How do you find them? I was a big fan of the Notice of Defaults or NOD list that a county publishes when I first started. I've heard it called Les Piendes (sp?) and other fancy things, depends on your area. It's the public list of who has missed their mortgage payments. Then market the heck out of them to call you. I had a script that I internalized that would help identify their level of motivation.

You should also identify an area you want to farm. I see you are in Atlanta which I understand to be pretty hot right now. Even so, there is always a sub market that will offer more opportunities.  Drive, walk, and/or bike the area looking for distressed properties - yard dead or overgrown, windows out, general poor condition, for sale and for rent sign posted simultaneously and note the address. Look up the owner on public records and, again, market the heck out of them :)

Oh @Account Closed. Traditional lending much?  :) If you read the thread, yes- I acquired this property for $10.

Two ways to buy properties - cash and terms.  

Cash, well that is what it is.  

Terms - when a buyer uses a downpayment and gets a loan this is also buying on terms but what I would call traditional or retail lending/buying. My deal is more creative and one of the many ways to buy on terms without using your own money or credit. 

@Account Closed thanks, I think?  How are the numbers off?  Check out another thread.

Hi @Dwayne Webb,  Congrats on taking the initiative! There are some proven strategies to farm and market to an area and find those motivated sellers - stale listings (but may not be a lot of those currently), distressed properties, "don't wanters".   Do you know how to get ahold of the notice of default or pre foreclosures aka property owners who are behind in mortgage payments?

One of my dear friends is an investor and agent in Columbus. He is also a GC so likes the BRRRR strategy. He would definitely be interested in in a deal. So as @Scott Allen suggested, familiarize yourself with the Columbus market and what makes a deal an actual deal and why.  

If you have a deal, you will have no problem wholesaling or flipping the contract to an investor with cash and/or credit.

Go get'em!

Might want to consider a joint venture agreement as it is still binding but you don't have to have an EIN/bank account like in an LLC. Definitely spend the money to get clear terms!

Hi @Steve K.! So, this was not what I would call retail, meaning not on the MLS. You can't get these types of terms in the MLS - at least not in 2022 in Boulder County. It reminded me of when I first started in REI and I was wholesaling. But instead of me farming and marketing, these happened to be repeat clients and friends who reached out to me. I felt like they where leaving money on the table so I threw out a sort of partnership with terms that felt fair to both of us.

I hired a trusted real estate attorney who actually started CAREI. He drew up all the paperwork after I told him the details - Sellers keep paying the mortgage, taxes and utilities. And I would use my own money for the remodel. Plus I would manage the project with complete creative control and decision making latitude (as the trustee). I'd then list in the MLS. We agreed on a cap to protect their equity and give me a return on putting my own money on the line. The QC deed was granted to Property Address Trust that's where the $10 comes in - must have legal consideration. This trust agreement named all 3 of us: husband and wife (50%) and my company (50%) as co-beneficiaries. Running concurrently with the Land Trust was the Co-Beneficiary Agreement that defined the equity split.

Easy Peasy :) I simply showed them a resale study in google sheets and the numbers made it a no brainer. In the end, the sellers walked away with about $80k more than if they listed as-is.  Plus they had a tremendous amount of equity as I sold them the house 10 years ago for $290k. I made a return on my investment + a commission. The buyers got a much better, more updated and functional home. Everyone won!

Oh thanks @Richard Phillip Lewis :)  It's one of the many ways to buy with no money down. Pretty much has been impossible in our fast moving, low inventory market here in Boulder County.  

The house was a stones throw away from Waneka Lake and right by Indian Peaks Golf Course.

It was a rare, perfect mix of wants and needs. Past clients wanted to sell and I knew they could get a higher sales price if it was renovated. However, they had relocated to Amsterdam so they didn't want to manage a project from afar. Since, managing a remodel project to make a profit is my jam, I suggested a scenario that worked for all.

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $10
Cash invested: $52,000
Sale price: $800,000

Bought this house using a land trust and JV agreement.

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

I wanted to help the sellers who are out of the country and I saw an opportunity to get a signaificant price increase for simple upgrades loke flooring and paint.

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

Friends and passed clients. They reached out bc they wanted to sell. I knew they could get a significantly higher price if they did simple cosmetic things like flooring and paint. They agreed but had relocated out of the country and didn't want to pay for or manage a remodel. I suggested the following: I'd put my own money in for some updates and they would keep the loan in their name but transfer the property (deed) to a land trust where we were all owners.

How did you finance this deal?

Know how on buying with terms ;)

How did you add value to the deal?

My creativity and experience as an investor and knowledge of the market conditions - not just values but construction.

What was the outcome?

The sellers made more than if we listed "as-is". I made more than a commission and the buyers got a much cleaner, better house.

Lessons learned? Challenges?

Always check if a company has been bought when hiring. Had a horrible experience with a flooring company that I had used in the past but had been bought so new ownership. I pulled the attorney card and made them sign and notarize a lien waiver in exchange for final payment.

I thought you might be interested in seeing a remodel project that I recently completed. It was the first remodel I have taken on in a while and I found it very rewarding from start to finish. One of the coolest things about the project was I bought this house in Lafayette, CO (Boulder County) for $10.

It goes back to my early investing days of buying on terms.  I did a bunch of sandwich lease options but this project involved using a land trust.

I'm considering doing a class or some sort of course. Would any one be interested in that?

I have. At this point in the game, I let my contractor handle all of that.  The city is fairly helpful when dealing directly with home owners but unless you are adding square footage (pop top/back), I don't believe you have to adhere to green points. Although never a bad selling point to have energy efficient everything here in Boulder.