To stay ahead of the
competition and adjust to changes in real estate markets, it was necessary for
me to change my MO ("method of operation" ) every couple of years - sometimes more
often than that.
Initially, I wholesaled
properties in Dallas Texas. The cash was
great but there was no cash flow. It was
basically a job. If I was not out
finding houses to wholesale I didn't make any money.
Wholesalers were everywhere so I knew I needed to change my MO.
Wholesalers were everywhere so I knew I needed to change my MO.
I did some rehabs. But after getting spoiled with fast paydays
from wholesaling, it took way too long to get paid with a rehab. Plus I had to have a lot of money tied up in
the property and I didn't like that risk.
So I switched to buying houses with seller financing or subject to the mortgage. I targeted properties that needed no or minimum cosmetic repairs. Sometimes I'd keep the property as a rental. Sometimes I'd re-sell with seller financing and wrap the underlying loan. Either way, I got cash flow!
So I switched to buying houses with seller financing or subject to the mortgage. I targeted properties that needed no or minimum cosmetic repairs. Sometimes I'd keep the property as a rental. Sometimes I'd re-sell with seller financing and wrap the underlying loan. Either way, I got cash flow!
When there was too much
competition to find good subject to or seller finance opportunities, I changed
techniques again.
If everyone else was running in TO a particular technique, I ran in the other direction. This helped me avoid competition, get the best deals, and achieve my financial objectives much faster.
If everyone else was running in TO a particular technique, I ran in the other direction. This helped me avoid competition, get the best deals, and achieve my financial objectives much faster.
Along the way, I ran in to
situations where the seller had 10, 15,20,50, 100+ houses to sell all at once. I called these package deals.These were quick cash
opportunities.
I paid a small option fee to control all properties. Then I created several creative ways to sell a lot of houses fast. Sometimes I'd sell them all to one person/company. Other times I'd create smaller bundles of 3 to 10 houses to sell.
I paid a small option fee to control all properties. Then I created several creative ways to sell a lot of houses fast. Sometimes I'd sell them all to one person/company. Other times I'd create smaller bundles of 3 to 10 houses to sell.
In the almost 20 years I've
been doing creative real estate, the package deals were always my biggest money
makers.
Instead of making $3,000 -
$5,000 for one wholesale deal, I could make 10 times that for a small package AND get paid in less than a month. Or I could make more than $100,000 with the
larger packages.
There is NO competition for package deals. EVER!
There is NO competition for package deals. EVER!
These package deals are out
there now. In fact, there are even more
package deals now.
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