Simple Ways to Find Your Next No Money Down Deal - Part 2

Editors Note: This is a continuation of a Facebook Live I did. You can find the replay here on my Youtube Channel

 

If you remember from Part 1 (which you can read here) that With the Tired and Frustrated Landlords, we're not finding them because of their advertising. We're finding them because we're going out there and looking for them.

 

About a year into my doing my first rent-to-own deal. I did four more that following year, all, no money down. I had had other investors invest with me and friends of friends as well as some family. At that point, I was looking for my next deal and I was hunting and found an opportunity, I think it was on Kijiji, maybe it was Craigslist. I can't remember. The opportunity was a house that was in really rough shape and the person involved with it was looking for a creative way out of the deal. (that's where I came in)

 

 

And so I reached out, I did a little bit of research and I found out who owned the property, and this is a guy I've never met, but I knew of him. Most people, most investors in my circles knew of this guy because he had a ton of properties. So I reached out to him and said, Hey, I'd be interested in having a  look at your property. Would you be interested in me renting it for three years and then buy it off of you at the end of that. It obviously was a little bit longer conversation, but he said, yes, we sat down and went over the paperwork, we talked through it and we signed it. And so that was my first TFL that I worked with. Five days later, he shoots me a text and goes, Hey, I've got three more properties. (relationships are everything)

 

 

Would you be interested, in doing these with me? Same as what we did on that first one. And I was like, yeah, I would be very interested in that! So I did, I did, those next properties. And with that one individual, I think I've done 22 properties taking them off his hands and I've done, Oh man, I would venture to say over 50 properties like this, where there was a tired and frustrated landlord where they already owned the property. And I came in and took over the property on their behalf. I still paid them what they needed each month to cover their mortgage taxes and insurance. But then I looked after the property. My exit strategy with that was any number of things, whether it was putting a rental client into it or wholesaling the deal, or adding it to my portfolio as a straight rental.

 

 

I've also done flips this way, where I'm taking the house from a tired and frustrated landlord put in rental work and some sweat equity on the projects, others fully hired out and then turned around and sold it on the open market and made a profit. And so these are all ways that I have found to work with our Tired and Frustrated Landlords.

The thing is, that they're everywhere and you've just got to go in and find them. Like I've said, I've done North of 50 of those in the last 10+ years with, tired and frustrated landlords, and I've been doing other real estate projects as well, development and multi-family builds. I haven't just been focusing on rent to own all these years, but it's my favorite because there's so much opportunity out there. It's about finding them. If you have specific questions on TFL's remember to go over and join our free Rent To Own Facebook Group 

 

 

Now, let's talk about a third way, and I don't know if this is more advanced, or not or if it's just different, but I've had properties where I found a tired and frustrated landlord, and they didn't want to do any financing with me. They didn't want to do any vendor takeback mortgages, (BTPs) they didn't want to hold any financing, all that sort of stuff. What I did was I fully funded a hundred percent with other people's money. ( OPM)

 

Let's just say, I picked up a group of homes, three homes, and I'll just use round numbers for this scenario. You know, pick them up for a hundred grand, each, some of you go, uh, that's really cheap, or some will go It sounds about right. And others of you go, that's a bit high, depending on where you're located. Numbers are just numbers there, they're only relative to their own markets. So don't compare yourself with other people in other markets. What I did with that is I needed to come up with $300,000 cash, to buy this property. Typically when you're doing, flips on vacant properties, traditional banks will not lend to you. Now, if you've got a massive line of credit and you can just use that line of credit, that's different, but you get a mortgage right. Typically when you're doing deals like this, you've got to come up with cash. So we were able to negotiate, my partner and I, on this one, we were able to negotiate a smoking price on these three properties.

 

 

Let's say that the guy was asking $140k and they were probably worth about $140k, but we've got them for $100k each,  and we were able to close this deal in two weeks from the time that we first met him, which was awesome! When we actually took possession was two weeks! And we borrowed cash from, a couple of different people that lend and are very comfortable with lending to me and my partner and we were able to structure the deal that way. The big thing is knowing exactly what your lender is looking for and I knew exactly what this lender was looking for, for security and what sort of parameters he's looking for, timeline, money back all of that sort of stuff. It's like in your day job, if you know your boss well enough, you know what questions to ask and what your boss is looking for which goes a long way.

 

 

This is one important lesson if you want to be successful in Real Estate Investing or any business really. - If you can answer ALL of the questions and concerns upfront, whether it's for a client or someone lending you money, you significantly increase your odds of them working with you. Now they may come back with some questions that's fine or a phone call, but oftentimes these get approved via text. Long story short on that the whole thing, this was a no money down deal where I raised $300k cash, plus the closing costs to buy it with none of my own funds and then, turn around and sell them in a period of time where I made a profit.

 

 

With these ones we did not do a lot to them, we simply turned around and sold them to people who flip properties, And we were all able to win from the transaction. The point is that there are many different ways that you can do a no-money-down deal, which is just fantastic!