All Forum Posts by: Shiloh Lundahl

@Patrick Roberts some states don't like lease options and so the owners have a harder time in court. In Arizona and several other states they do just fine as long as they are done correctly. We have separate lease and option contracts. They both spell out all of the specifics of the agreements. We also can connect our tenant buyers with lenders to help them get ready to buy the properties. Out of about more than 100 that we have done over 7 years, we have had 2 evictions I believe. We didn't have any issues with it in court. One was in Arizona and the other was in North Carolina. 

@James Wise a fool makes judgement without enough context. 

Over the past few weeks I have posted about the lease option strategy that I use and some people have been critical of it (which is fine) especially when compared to turnkey investments. I am open to criticism. Here is my last lease option property that I purchased and an explanation of the deal. 

I advertised it on Facebook Marketplace with the following paragraph: 

Hey everybody. I have an opportunity thet might fit someone. I bought a house that is in bad shape. It needs a lot of work done to it. It’s a 4 bedroom, 2 bathroom manufacture home. It's going to need new floors, new paint, some new doors and some drywall and doorframe repair among other things. If you are handy, and want to take on this project as a rent to own home, then I’ll sell it to you for $165,000 and as you fix it up and if it appraises for higher than that, then you can still buy it for $165,000 even if it appraises for $20,000 or $30,000 more than that. The rent to own program goes for three years during which time you can work on getting your credit where it needs to be in order to buy the house. There is a $2900 option fee to get into the rent to own program and the rent for the house is $1345 a month.Let me know if you are interested.

I got several inquiries and within a week I already had a tenant buyer put down money for the option fee.  They will move in in about 2 weeks. He used to own his own contracting business.  

Purchase price 125k

Closing costs 7k with hard money lender

Cleaning $300

Closing costs 5k with long term loan

rent $1345

My PITI 1095

Monthly Cash Flow $250

Second position lender to cash me out of my 18k left into the deal will get $180 of the cash flow.

Zero left into the deal, $70 a month in cash flow

Sell for $165,000 in 1-3 years

Estimated profit over a 3 year period of time $30,000 - $35,000

Total amount of work 4 hours including writing this post. 

Hey@Steve K. i'm sure we've had this conversation before on BIggerPockets, but remind me, where is your property in Costa Rica? We have three properties out there. One just south of Tamarindo, one near La Fortuna, and one between San Ramon and Esparza up in the mountains.

Hey Pedro, if you want to build equity quicker, then you'll wanna buy properties well in the market value that likely will need to have some work done to them to get them fixed up. I would encourage you to Google "wholesalers in ___________" and then put whatever city you are interested in investing. Connect with other investors in the area that have between 5 and 10 units and see if they might be able to connect you with some wholesalers in the area. You'll also need to find some handyman or contractors that can help you get the work done. You may want to buy some properties that don't need a whole lot of work done. Possibly just some carpet and paint type of properties at the beginning until you get to know more people out there. Doing this will likely help you build equity quick quicker.

Hey Everybody, 

I am hosting an investor Mastermind Retreat for high level investors who have done 50 or more deals or that have a portfolio of 50 properties or more and have built a net worth of 1 million or more through real estate investing.  This retreat will be held out of my properties in Costa Rica from April 27, 2025 to May 3, 2025.  

So if you are a high level investor such as a real estate coach that provides coaching or looked up to at as a real estate mentor, or maybe you just kill it as a real estate investor, and you want to network with other seasoned and experienced investors then this would be a great event for you.  

If you are awesome at short term rentals and you want to see how to run a vacation rentals in a foreign country then you should come join us.  If you are a flipper and you want to get feedback to improve your systems then you should come. If you want to learn more about lease options and see if it would be a good tool to add to your skill set then you should come.  If you are a money lender and you want to improve your systems in lending, then you should come. If you just want to build awesome relationships with experienced investors, then you should come join us. 

Here is a video to give you a sample of the retreat. 

For more details about the retreat, go to https://reiretreats.com/mastermind-retreats/ or let me know if you have any questions.

That is one thing I like and respect about you @Scott Trench, you are willing to try things out and see how they go. I’m interested to see how it all pans out.

One idea: This could go well with Bigger Pockets promoting meet ups again by having the meet up link be more prominent on the website like it used to be. That might be a pretty good resource for people that are wanting to connect with other investors in their area. I know that we used to have upwards of 30 people at our meet ups each month that mostly came from Bigger Pockets and meetup.com. In Arizona, I’ve seen a large decrease in people going to meet ups now. It can could just be due to the economy and interest rates and that it’s harder for the average person to make money in real estate compared to how it used to be. But I also wonder if it might be because of less traffic coming from Bigger Pockets. What are your thoughts?

@Mario Niccolini I am going to help make the decision easier for you. Pick whichever one that a mentor you have access to does. Top performing multifamily investors make money. Top performing single family investors make money. It isn't about the type of real estate you chose. That doesn't really matter. It's about being a top performer in what ever you chose. In order to do that, surround yourself with top performers. 

@Evan Cruz Yes, you can use both strategies. It is not difficult. First decide which type of house hacking you want to do. If you are single then it is even easier. Get on a bunch of wholesaler lists. Find a house that comes up on the wholesale list that has a lot of bedrooms and buy it as an investment property with a hard money loan. Then fix it up and force equity and then refinance it and move in a bunch of people to do a rent by the room model. Or, second option if you are not single, you could find a house on the wholesale list that can be divided into two units or a house that has a guest house and then fix it up and rent out one of the units and stay in the other. Simple. Let me know if you have more questions or would like the steps described in more detail. 

@Tony Pellettieri Interested deferred second position notes at 15% leveraging the properties at no more than 70% of the current value for 24 -36 months on properties you plan to sell during that time. Use the money only to stabilize assets and yourself. Don't buy any more assets until your reserves are filled again. It is possible to go broke by buying good deals. Don't let that happen to you.