Manny Ventura
Active 2 years, 7 months agoForum Replies Created
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Hi Jackie!
I’ll take a crack a this:
If it was me I would just to a Highest Bidder sale for highest down payment or HBS for CASH to a local handyman that wants a deal.
Current Situation: Bought for $25,000, plus $40k for fix up. Total $65K Can Sell for $150,000.
Do a Highest Bidder Sale starting at $65,000 (“Handy Man Special”). Say you sell at $80,000 at HBS.
Can Do $30,000K Down finance $50,000 at 6%. say $325 payments. When the person does sell you get $50,000.
Or Just Do Highest Bidder Sale for Cash.. Sell for $70k Make$45K and be Done!
Pro for HBS CASH:
Big Cash payday upfront
No headaches just sell for cash, don’t have to fix anything
Can do quick $5,000 clean up and get more at HBS
No more back and forth checking on housePro for HBS Down payment:
Not have to deal with property 3 hrs total back and forth away
Can Get Your Money back upfront and get back end money and cash flow in betweenCons for HBS Cash:
Can’t Keep cashflow
Maybe Missing good opportunity to keep
No one buys the propertyCon for Down payment HBS
Risk of Handy Man not making payments and selling house
Risk of Handy Man wanting to keep if he wants to move in…then you only make cashflow
Still have to deal with house if nothing got done and handyman can’t make paymentsHope that helps!
Manny
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= $14,000Now 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
Jackie-
The market here is super hot!! The house had abut 15 people see it during open house this weekend and here market is that people are over bidding on certain properties.
Buyer would take 1-2mth tops in my neighborhood. It was once on the “bad side” of the Good side of the neighborhood but has slowly changed where three properties in front of me were purchased by people outside the state with bigger pockets.
Foreclosures have not arrived yet…but they will! Banks are giving loans that are way over DTI.
If I did not have section 8 tenants…Units would rent like hotcakes!! People love this area although a nice update is must to keep up with the properties that are commanding $2,000. House across the streets rents for $2,000 for a 2 bedroom. I am 3 bedrooms each floor.
Yes- Would love to move to warmer place and find cash flow opportunities there! Thank you Jackie for your insight!!
If you hear of any HBS on higher priced properties like the one you mentioned on the discussion I am all for it to flip it!!
-Manny
If I did the HBS, What Would I do To Attract Deep-pocket Cash Buyers?
1) SEND PRESS RELEASE TO INTERNATIONAL Buyers!!! Have Them bid up the price!! See International cash buyers in FL and let them know you have the best deal of 2021!
2) Send letter to surrounding property owners that paid more than $2M and tell them its an exclusive sale to neighbors first before hitting everyone else.
3) Get A List of Cash Buyers over $1M in that recently bought in that area and let them know you have a deal starting at $1.7M and have them bid against themselves.
4) “Cheapest Mansion of the New Year!” sign on the weekend day of HBS.
“Worth $4.5M ON SALE FOR $1.5M. OWNER WANTS OUT!”5) Contact 1031 exchanges in case someone wealthy need to use for primary home until market improves so they can get the gains tax exempt after 2 years living.
Would love to know what you did Jackie!!!
-Manny
Hi Jackie!
Would love to have a take on this!
This would be great to get an option on it $2M and do a Highest Bidder Sale that allows you to get anything over $2M.
Start bit Low maybe $1.7M, tell close neighbors and get traction for people to be interested.
Highest Bidder sale on Highest Down payment too could work!
-Manny
Hi Jackie!
Would love to break this one down:
1st question- How Much is the mobile home park currently bringing in every month? (say $5,000/mth – 10 occupied)
2nd question- How Much money do they need to just leave the and have someone else take over the headaches ( They say $400,000 but really only need $100,000 today)
3rd Question- Are They open to owner finance? ( They say they need to think about it)
4th Question- If someone could still give them their monthly cash flow and they have no headaches and they got their $100k would they be open to owner finance?My Offer: $100k Down, $5k/mth no interest until paid off, Owner finance $300k (no interest)
Using Jackie’s Favorite line of course: “Is that the best you can do?” to get to their lowest number.
My Strategy:
Use the existing 14 spaces to create $7,000/mth extra (say minus $1k/mth expense = Net $6,000mth extra)
*Each Space brings in $500 buck/mth based 10 spaces occupied bringing in $5k/mthRaise $100k offer to private investors at 10% interest ($10k/yr =$833/mth) 10% is high but it allows me to build trust for more deals in the future.
Use the down payment of $100,000 ( My cost $833/mth), for the down payment and give $5k/mth (from hypothetical existing rents) to owner until $300k is paid off no interest ($60k/yr) will paid off in 5 years!
How Did I Add Cash Flow Value:
Increased monthly cashflow from $5,000mth to $11,000 by using making unoccupied spaces occupied and paying rent (maybe some Lonnie Deals on a few or all 🙂*$12,000 extra minus $1k/extra expenses makes $11,000 – $833 (loan service)
=$10,167 month cashflow until 5th year
After 5 Year
$5,000 + $10,167= $15,167/ monthly cash flow!!!!
Oh Yeah… Forgot to Say…This deal is structured with no money out of my pocket!!!
NEVER SELL $15k/month is a beauty!!!
Then do it all over again!!! Maybe Bigger since now investors see you gave them solid returns on their capital!!
What I Missed?
Maybe some extra expenses add another $2,000/mthStill $13K Month Cashflow!!
Wally,
Thank you for your insight. I just recently stopped usuing oncarrot. I loved the program and outlay they had but just like you mentioned. SEO/ and PPC cost to use them was high on the budget. What are some of strategies you will be using for your new website? I listened to the call too but felt like I needed just a bit more information.
Hey Don,
So I went to the Panama retreat last year and could not make it unfortunately this year as I had too many vacancies. That was the main reason i wanted to go was to learn how to correctly have a website up and running. My market is Rhode Island. I live in Providence and have bought houses in the city and surrounding towns and cities. Rhode Island is the smallest state so really I can buy in any city thats a deal. I had used oncarrot website but only had 1 lead in like 6-8 months and just needed a new website to get going on online on my online presence. I have a bunch of youtube videos that I do marketing. What I need is a website guy and SEO/ PPC guy advice and I’m ready to go. After that, is all action on my end. I wont stop until I reach my goals.
Thank you Jackie! I appreciate your help. Im putting a seminar together to show people how to search for vacant houses. Free of charge. Looking to take a page out of your book. Instead of moms helping me I will target Recently graduated college grads. Since im one of them. Will let you know how that goes!
Hi Jackie,
I usually target probate leads and have gotten some success. Slow I might add, but other than searching vacant houses what would you suggest for finding motivated sellers. I market online on social media, sent out letters (stamps are getting expensive now) so slowed down a bit and with a rehab Im doing..really now slowed me down. I also get list of code violations but its not sorted as which are condemned by the city. Just that they are on code violation. What would be your best reccomendation? I did a totol of 7 flips last year and want do to 20 this year. Your totally right about not doing rehabs- they are lot of work and time consuming and because so much money is in the project you can’t just not finish the project. But now i want switxh gears and get more deals but finding it harder to do marketing…any suggestions? -Manny
Hi Jackie!
Hope your doing well! The highest bidder sale I tried to have with the seller a while back did not happen. We ended up buying the house to flip but man do I wish i had done a highest bidder sale. Less headaches, quicker outcome and in and out of the deal faster. All that to say…if any leads in Rhode Island please let me know!! Im all game. I’ve been dying to a highest bidder sale and won’t stop until I do one.
Thank you Jackie. Yes HML charging 12% and couple points. So I do see how the cost can eat from the profit plus holding costs taxes and insurance. I tried convincing seller to do a highest bidder sale but she would rather go with a realtor. When I see her sunday with our agreement I will again push for a highest bidder sale. The deal is a decent one with some potential but I defintely would not want to take on hard money for this project. I will wrap it up to have it under agreement. If she saids no to a highest bidder sale. What would you suggest?
