Creative Deal Structuring — Need Cash Fast


You must be logged in to reply to this topic.

Viewing 9 posts - 1 through 9 (of 9 total)
  • Posts
  • For this week’s Creative Deal Structure Game, I want to do something a little different – it’s a two-part question:

    YOUR BEST FRIEND lost their job 7 months ago and you have almost gone through all your savings. What can they do to replace the $5,000 a month income from your job FAST? (without getting a job) And, what creative real estate deal(s) could you do to make $20,000 FAST so they can replace the money they have taken out of savings?

    If you’re new to creative real estate, or just need some inspiration, a good course to study to learn the answers to this question is Jack Miller’s Generating CashFlow. This recorded seminar is included with your Premium CashFlowDepot membership

    Generating Cash Flow Recorded Seminar

    • This topic was modified 3 weeks, 5 days ago by Jackie Lange.
    • This topic was modified 3 weeks, 4 days ago by Jackie Lange.
    • This topic was modified 3 weeks, 4 days ago by Jackie Lange.

    Wow What an interesting creative deal Jackie! I was in this position not too long ago!

    First thing I would do to make $5,000 lost of income per month is flip land deals.

    Also, easier to get land at 20-30% market value and flip to 50-60% market value.

    Example 1:
    For Quick Flip, Land Cost $35,000 I put under contract for $5,000 option for 30 days sell for $10,000-15,000.
    Make $5,000-$10,000 profit.

    That How I would get my $5,000-$10,000 month first.

    Now, To Replace my $5,000 income!!! Here’s the Good Stuff!!

    Example 2:
    CashFlow
    Worth $35,000
    I can buy land the for $10,000 seller financed with $2k down and $250 payments per month. (32 Months)
    Sell Seller Financed:
    Sell for $40,000/ $10K down and 500/mth. (60mths)

    Cashflows:
    $8K upfront
    $250 for 32 months = $8,000
    $500 for 28mths= $14,000

    Now I made $8K upfront and $250 cashflow. Rinse and Repeat for 20 deals just making $250/mth

    Use the $8k for down payment on the next land flips and keep going until $5,000/mth in cashflow

    Land is a great investment flip as you can get really good deals from them and you don’t have be in your same location!!

    -Manny

    Interesting problem.
    First, if I were able to generate $5 a month and $20,000 lump sum in 30 days, I would have not been employed at all, so no need to save W2 income.

    And, I’ve never been so poor that I didn’t have at least a years worth of a liquidity that I could live off of for a year. And I have always argued to live well below ones means regardless of what the income is.

    It would be a real challenge to meet those goals in this time, but could be done, perhaps will a little luck. In my neighborhood, there are no really good deals, but it’s so easy to sell something that one could get a house under contract and just sell their position retail. Or do a highest bidder sail to get the job done.

    And, one can get into property management with the “Master Leasing” program that Dave Tilney teaches, but pretty hard to get a substantial income in a few months…. but does work.

    You can do some flips, but in this market, the numbers just don’t work and you end up working for a “wage” and not much of an investment…. and hard to make it work. But you can make a few bucks, but you can also loose some bucks, and you’ll need some cash to do this.

    Larry, I did not say it needed to be done within 30 days – it just needs to happen fast.

    It’s great that you have a year’s savings but unfortunately, not everyone is in that situation.

    If your friend called you with a similar scenario, what advice would you give them.

    Great ideas Manny.

    I know others who are doing land flips with similar numbers. There are very few people doing this so there is a lot of opportunities.
    In some cases, you can buy land so cheap you can just pay cash, then sell with seller financing to get all your cash back plus a nice cashflow every month.

    No surprise here but I’d do a Wobbly box flip then hypothecate the note to replace my investment capital and collect immediate cash. Quickest way I know to generate cash and cashflow

    Andy Teasley
    Wizard of Wobbly Boxes
    760-343-2404

    Okay Andy, I’ll bite. What is a wobbly box?

    Mobile homes. cashflowdepot has some great resources including Deals on Wheels by Lonnie Scruggs

    I’d start with an option on something to get an infusion of cash. If you could find a PACKAGE DEAL of rentals or mobile homes, it would be much faster than one at a time.

    Then I’d work on the cash flow part. Master leasing would be an ideal way to replay a $5,000 a month income. And if you got an option, you’d be building equity too. Master lease a mobile home park or an RV park would be a faster way to get to $5k than one deal at a time.

    Think volume!

Viewing 9 posts - 1 through 9 (of 9 total)

You must be logged in to reply to this topic.