Isn’t it inspiring to hear about deals that have just closed or deals that were just tied up and you’re working on the exit strategy?
If you said, yes, I agree!! Having the confidence to get deals done sometimes comes from seeing others get deals done. So, to help keep you inspired, motivated and driven to succeed, I’ll be sending out periodic “Deal Activity Reports” so you can see what kinds of things we’re doing in our business in hopes that it will encourage you to take giant leaps in your business!!
Today, I want to celebrate two of our Joint Venture Partners Daryl & Zabrina!!
DARYL CLOSED A DEAL:
Daryl comes to us from the great state of Michigan!! Daryl’s seller owned their property free and clear and he was able to negotiate a low interest loan for 20 years to us so that we could wrap the deal to an end buyer for a profit. We opted to close via contract for deed due to Michigan laws and we did a simultaneous close where we closed with the seller and end buyer on the same day.
I’ll be honest, there were a lot of hiccups and obstacles in this deal that will turn into a great case study some day. However, when it was all said and done, it closed with over $7K in net profit and almost $200/mth in cash flow for the first 240 months and over $600 in cash flow for the last 120 months!!
Now that’s a deal I’d do again, again and again!! Marshall was the lead investor assisting Daryl with this deal and these two guys knocked it out of the park! BIG CONGRATS guysl!!!
ZABRINA CLOSED A DEAL:
Zabrina comes to us from the BIG state of Texas! She actually found and tied up this deal in late 2013 but the buyers needed time to save up money for closing so we put them into the property under a temporary lease agreement.
In April we started discussing what needed to happen to get this deal locked up and closed and after a lot of restructuring and a few more negotiations, we just got it knocked out!
In Texas, the easiest way to close these deals is via a subject to/wrap and so just like Daryl’s deal, we did a back to back closing and we bought the property from the seller subject to and then wrapped it to the end buyers!
On this deal, we netted a little over $1200 up front with a 2 year promissory note in place for the remainder of the down payment (approx. $5200) and over $200/mth in cash flow!!
The only cautionary tale I have for this deal is that if you are doing sub 2 / wraps, you typically want to have at least one payment put in escrow on every property in case of buyer default. This deal didn’t net as much up front as we needed but because we close on multiple properties on a monthly basis, this gives us more flexibility to let some deals slide through in order to take advantage of the long term money cash flow and additional promissory notes.
Flip and I acted in the role of lead investor for Zabrina on this one and she did an outstanding job!!! Way to rock it out Zabrina!
Quick highlights from some of the deals we have in The Pipeline:
Killeen Deal – We’ve partnered with an investor in Killeen, TX to help take over a deal where the buyers aren’t performing and the investor was losing more money every month with a total of $8K already lost in the deal. We’re in the process of negotiating repayment terms now and we’ll do a case study in the future about things every investor should know so you don’t get stuck with a deal that is supposed to make you money but instead bleeds you dry!!
Washington Short Sale – We partnered with a Washington financial firm on this short sale and after finally finishing negotiations with the bank, we’ve listed the property on the market with multiple buyer offers already in!! We should be able to lock this one up soon and get it closed!
2 Florida Short Sales – We tied up two Florida properties hoping to find an end buyer for it using a wrap around or lease option but the arrears have limited our ability to get these moved. We’re going to turn these into short sales and hope the banks don’t deter us from getting these two deals negotiated and on the market.
Two Texas Subject To Deals – We have 2 other Texas deals on the market for owner finance buyers. One deal has a lot of arrears that we’re in discussions with the bank to sort out so we can get it sold.
1 Texas Wholetail – We just locked up a property last week that doesn’t have enough margins to wholesale to an investor so instead we’re planning to wholetail it! (If that’s a new term to you – it means we’re going to wholesale it to a retail buyer so we don’t have to worry about our low margins.)
Washington Traditional Deal – We had advertised a property in Washington for owner finance and instead a traditional buyer came to the table and we hope to get it closed here towards the beginning of June!!
North Carolina Deal – We have a buyer who breached their contract on a temporary lease and so we’re working with him to move out so we can get the property back on the market for a new end buyer and close it. We’ve already closed on this deal on the A-B side so we’ve been stuck with handling missed payments, etc.. This deal is going to be another great case study reminding you of what you SHOULD NOT do when closing these deals! 🙂
Chicago Commercial Deal – One of our New Jersey partners was talking to a seller about buying his principle residence and it turns out that this guy has a commercial deal in Chicago that he wants to sell us instead – with financing in place! We’re requesting financials to take a look and see what we can do!
There’s plenty more I could share with you but I gotta get back to doing deals instead of just writing about them!! 🙂
If you enjoyed this first edition of our new “Deals Activity Report” and you’d like to see more of them, shoot me an email and let me know what you liked, what you didn’t and what you’d like to see more of so that we can help you do more deals!!!
Happy Investing & Future Wealth Building!!
Dani Lynn and the entire team at the REI Rockstars