We mainly fix and flip homes, but when you can buy an apartment for $16,000 you pretty much have to do it. Find out how we did it!
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My sales team was cold calling sellers for single family homes. This seller said they didn’t want to sell their home but had a 10 unit apartment that they were interested in selling. At the time we had never bought an apartment. We let them know we were interested anyways.
We didn’t know how to work the deal. We didn’t know what it was worth. We thought that we could figure it out along the way. There are too many people that are scared of the unknown. You have to experience new things to learn!
The seller said they hadn’t received rent in over three years. They had no idea of the condition. It’s in a rough part of town. They were willing to part with it for $400,000. I let them know that we would look into it and get back to them.
We drove down and checked it out. It was even worse than expected. People were selling drugs, guns, and anything you could think of. On top of that one of the units was burnt down. We reported our findings back to the seller and he was very upset.
We still didn’t know what exactly it was worth because there weren’t many 10 unit sales. We did see one that sold for 700k so that was all we had to go off of. We offered him 200k for the property. We knew it would be a headache to evict everyone and we had no idea how much the repairs would be.
He wasn’t willing to take 200k. Eventually we came to an agreement of seller financing. We would pay him $16,000 as a down payment. This would pay off all his back due taxes. He would then hold a note for 300k on the property. The first three years of that note, we wouldn’t have to make any payments. The next seven years we would have interest only payments of only $1250 a month.
We ended up buying the building at those terms. After six months we finally evicted everyone and got in the units. Thankfully they weren’t as bad as we thought.
We spent about 200k to fix everything up and now they are rented for about $7000 a month. We will get that cash flow for three years with no payments. Then we will only have to pay $1250 a month after that. On top of that, the apartment is now worth around $1,000,000.
It’s been our best deal to date in both cashflow and profit whenever we do sell. And it’s all because of creative financing. I wouldn’t have bought the apartment without that even at 300k. I just didn’t know enough about the apartment’s value and I didn’t want to get a traditional loan.
Thankfully the seller was willing to do the deal this way! Now we have a great asset that cashflows and has 700k of equity in it.
To see the video on giving the missionaries a home click here:
34 comments
Many people asking about the math for the payment. There is a balloon payment after 10 years for 300k. The $1250 is interest only. 5% of 300k.
The 200k for renovation was my own cash. I had plenty of people who would’ve lent the money in exchange for equity, but I would rather own the whole thing.
I freaking love deals where everybody wins the whole way around!!!! Good stuff
Not bad
7k months vs 12.5 k months after 3 years??? I lost
i seen this place in las Vegas i did not see any AC
Really you got to get the city's approval to build a little tiny wall? God the system is broken.
DONT SELL IT
Bro stop involving your family with business…. Full stop. Keep them apart….
clickbait? we'll see
Great
we need an update on this apartment
Always on point. Making wealth is not by muscle
no way thats worth a million, your nuts, its worth 450K at best, your lucky to break even on it, your positive rental income is your only upside there and your horrible location ruins that too
Great investment! Well played.
Great video lol
where do you check this kind of deals
Gotta be getting good money there now since all Vegas rent went up
Do not just seat and do nothing when an investment opportunity comes. Most millionaire investors you see and admire today, didn’t make it by wasting time or waiting on others before investing
Great job.. I am working with funding investors but I will be working with owner financing commercial properties too.
Quick question where did you get the money to renovate
I got to prove my income with the paystub I got from Credible cyber
They on IG
WOW! You are a genius ! I love it and I love you :))
I just came across an opportunity similar to this.
For $0 down, $1891/month for 25 years I can get a seller financed 8 unit building, all units rented. It currently revenues $2300/month. I can raise rents at least $75 each at the end of the current tenants agreement in the current condition and $500 after renovations.
It is listed for $325,000 CAD. The interest however is a concern. $242,064. I feel it will be worth close to a million after renovations but it just seems really high.
The current owner is offering to continue to manage the property for $250/month which I think is a good idea. If I do this, I'll only be getting about $300/month after expenses and the monthly payment until I can get the current tenants out or get them to stay with the rent increase. And then maybe $900/month after that until I can realistically afford to renovate. I can get $5000/month after renovations most likely. I don't know the best way to go about this. The 3 year no payment kind of thing would be great although I'm hesitant about asking for that. I'd really like the monthly payment down to $1500/month.
What are your thoughts or suggestions on this deal ?
Wow that’s dope
The previous owner is in his 70s and is running out of life to live. . . Signs a deal where he gets essentially nothing for 10 years.
Bro, how do you find these deals? Tax Lien Sells?
Hello Ryan please if you can make more video content with seller financing Very detailed video
Why not do a Rehab loan/commerical loan
Hey Ryan? lol do I need a real estate license to be a real estate investor? I know a broker, but I'm not sure if I trust him. Also I'm into many other different income streams. I am just starting out and right now just relaxing before it all starts! Allright. Thank you.
I wonder if you can still get a deal this good. When opportunity strikes, don't say no lol
How much are you re ting the units for?
Ryan is there a way I can email you? I want to ask a few questions. My brother and I are looking into becoming real estate investors in Illinois. But we want to know if you could it will be our first time buying. And we found a place but I want to know if you could teach us how to do the deal you made. Or how you the initial contact goes. Let me know, great content man keep it up.
1250×12=15000 15000×7=105000 ????