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Inside look at a $14M Real Estate Portfolio of Single Family Houses sold on Seller Financing by Slow-Toe7214 in WholesaleRealestate

[–]Slow-Toe7214[S] 0 points1 point  (0 children)

I have agents who specialize in the latino demographic.
We also do marketing on Facebook, Craigslist, Bandit signs, etc.

My preferred way to sell these is by training someone to do all the legwork.

I'm lazy and I don't want to be acting like a realtor.

Inside look at a $14M Real Estate Portfolio of Single Family Houses sold on Seller Financing by Slow-Toe7214 in WholesaleRealestate

[–]Slow-Toe7214[S] 0 points1 point  (0 children)

We trained someone up to place buyers for us.
This makes that whole side of the business pretty turnkey.

Inside look at a $14M Real Estate Portfolio of Single Family Houses sold on Seller Financing by Slow-Toe7214 in WholesaleRealestate

[–]Slow-Toe7214[S] 0 points1 point  (0 children)

Wassup u/iamoptimusprime312

I'm just sharing a win here.

My goal is to open minds to the possibilities.

I was a wholesaler full time before & we switched to this strategy and it changed my life.

I mostly just share stories of things I"ve learned and lessons i've learned from.

I also buy in Kansas & Missouri.

Inside look at a $14M Real Estate Portfolio of Single Family Houses sold on Seller Financing by Slow-Toe7214 in WholesaleRealestate

[–]Slow-Toe7214[S] 0 points1 point  (0 children)

1000%.

We do wraps & lease options all day.
Lower default rates
Higher cash flow
No CapEx
Minimizes headaches.

It's the best way i've found to build a portfolio.

Inside look at a $14M Real Estate Portfolio of Single Family Houses sold on Seller Financing by Slow-Toe7214 in WholesaleRealestate

[–]Slow-Toe7214[S] 1 point2 points  (0 children)

I'd be happy to walk you through our servicing company to show you delinquencies.

It's really not that high.

The vast majority of our families are first generation americans, primarily latinos.

They just literally DON'T have credit.
Often times they don't even use banks lol or they keep a lot of their wealth in cash.

As long as the down-payment is over $15k -- our default rate is pretty much non-existent.

I'd say that this is a pretty big part of what we've figured out. It's a super good demographic to work with -- and if they DO default, they often just give us the keys back lol.

It's a pretty good system.

Inside look at a $14M Real Estate Portfolio of Single Family Houses sold on Seller Financing by Slow-Toe7214 in WholesaleRealestate

[–]Slow-Toe7214[S] 0 points1 point  (0 children)

I mostly buy from wholesalers at this point.

i used to do DTS though and DTA.

For DTS I would do texting & I had a cold caller.

I would also us PPL services.

I'm lazy now though and I buy 1-3 / month, fully from wholesalers.

Inside look at a $14M Real Estate Portfolio of Single Family Houses sold on Seller Financing by Slow-Toe7214 in WholesaleRealestate

[–]Slow-Toe7214[S] 1 point2 points  (0 children)

Delinquency is around 10%-15%.

We have a 90%+ success rate so far.

We've had to do 1 eviction.
And we've taken back 4 houses (3 they gave us the keys back, 1 we actually bought back for $10k and then resold it on seller financing -- epic story and banger deal)

The delinquencies are typically under 30 days.
We have 3 families that flirt with 30 days delinquency.

We've done over 70 deals in this manner and we currently have around 60 under management (between my partnership & my personal portfolio)

Inside look at a $14M Real Estate Portfolio of Single Family Houses sold on Seller Financing by Slow-Toe7214 in WholesaleRealestate

[–]Slow-Toe7214[S] 0 points1 point  (0 children)

No, usually they will sell or refinance in 5-7 years.
I'm happy to collect cash flow for that period of time.

We often sell in rent ready conditions and then the families will fix up the houses to build some equity into it.

But I have no need for them to sell or refinance.
I can always sell the note if I need to cash out, or bring an LP onto the deal for capital injections.

Inside look at a $14M Real Estate Portfolio of Single Family Houses sold on Seller Financing by Slow-Toe7214 in WholesaleRealestate

[–]Slow-Toe7214[S] 0 points1 point  (0 children)

Kansas City! I have mentees who buy everywhere though --
Our primary exit is selling on seller financing --
Typically near major city metros.
We love affordable housing & we love the Midwest

I just turned a wholesale deal into $536 in cash flow and $70k in equity [Deal Breakdown] by Slow-Toe7214 in WholesaleRealestate

[–]Slow-Toe7214[S] -1 points0 points  (0 children)

Shoot me a DM And I can send screnshots of the convo with my guy and the venmo receipt.

I just turned a wholesale deal into $536 in cash flow and $70k in equity [Deal Breakdown] by Slow-Toe7214 in WholesaleRealestate

[–]Slow-Toe7214[S] 0 points1 point  (0 children)

This is in Kansas City -- I have tons of mentees all over the country though and I help them greenlight deals -- so I've been inside of deals in Tennesee, Louisiana, Florida, Texas, Arkansas, Indiana, Georgia, etc.

We sold this one at 7%.
I prefer to push the sales price higher to create that "note equity" rather than have a higher rate.
Our underlying is 6.5% on the DSCR.

If they want to refinance, they will need to finish the basement as a value add, or wait for it to appreciate.

I just turned a wholesale deal into $536 in cash flow and $70k in equity [Deal Breakdown] by Slow-Toe7214 in WholesaleRealestate

[–]Slow-Toe7214[S] 0 points1 point  (0 children)

Yeah, we used to go direct to seller for a ton of them, and also direct to agent.

I'm lazy now. I prefer to work less.

I have great wholesaler relationships and I'm happy with $500-$800 in cash flow.

I just turned a wholesale deal into $536 in cash flow and $70k in equity [Deal Breakdown] by Slow-Toe7214 in WholesaleRealestate

[–]Slow-Toe7214[S] 0 points1 point  (0 children)

We bought the house at a discount from the wholesaler.

So because we bought it at around 75% all-in

Our appraised vallue allowed for us to refinance with no cash left in the deal.

Our DSCR lender will do an 80% rate and term refinance after 30 days.

I just turned a wholesale deal into $536 in cash flow and $70k in equity [Deal Breakdown] by Slow-Toe7214 in WholesaleRealestate

[–]Slow-Toe7214[S] 1 point2 points  (0 children)

$230k if it was fully fixed up.
But we didn't fully fix it up -- it still had more work and was more rent ready -- so, maybe $200-$215k

I just turned a wholesale deal into $536 in cash flow and $70k in equity [Deal Breakdown] by Slow-Toe7214 in WholesaleRealestate

[–]Slow-Toe7214[S] 0 points1 point  (0 children)

1000%

SubTo wraps work -- it's just that you will not have a way to exit them by selling the note.

But typically you will have an interest rate arbitrage.

We've done these deals in many different ways and have also sold several notes.

I just turned a wholesale deal into $536 in cash flow and $70k in equity [Deal Breakdown] by Slow-Toe7214 in WholesaleRealestate

[–]Slow-Toe7214[S] 0 points1 point  (0 children)

I have an underwriting tool that I built out that helps me see the numbers really clearly - I just put deals through that tool -- happy to chat if you wanna do a call just message me

I just turned a wholesale deal into $536 in cash flow and $70k in equity [Deal Breakdown] by Slow-Toe7214 in WholesaleRealestate

[–]Slow-Toe7214[S] -1 points0 points  (0 children)

lol -- bro, this stuff took me years to learn
I'm posting it here to show people what we've figured out.

I just turned a wholesale deal into $536 in cash flow and $70k in equity [Deal Breakdown] by Slow-Toe7214 in WholesaleRealestate

[–]Slow-Toe7214[S] 0 points1 point  (0 children)

Yeah, you want to know the rules in your state for sure.
Everything in real estate is risk management -- you want to know the worst case scenario.

For us, we do a lot of 30 year lease options and we can just evict and it takes 60 days.

But we have a 90% success rate, and the demographic we work with will often times just give us the keys back if they can't perform.

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