Be creative 🧠 · Distressed Buyers Club

Be creative 🧠

Check out how we are turning this 1 lead into $195k! 💸

First, this was a referral in our market (North GA). $0 marketing dollars. They had a problem: wanted to sell their house, needed land, and an in-law suite in the basement.

They owe about $205k on their current property. They didn’t want to lose all their equity or deal with selling hassles. We offered a creative middle ground with a novation, agreeing on a price of $380k. The house is worth $480k as-is, and we’re only painting the exterior to make a quick $50k net. 🏠

Next problem: they need a new house but the husband is self-employed without 2 years of tax returns. We decided to put them in temporary housing with a rental we have vacant or find them a house.

Today, we found them the perfect house with everything they asked for. Since they can’t qualify now, we’re going to buy this house and sell it as a lease option to our new tenant. This gives them time to fix the tax returns and buy us out within 5 years by exercising their option. Finding the seller a house sooner meant getting the seller additional cash back in their pocket which they agreed to apply towards down payment and 3 months worth of payments.

The best part - we found a house that was 110 days on the market and got a killer deal at $425k, agreed to sell at $525k with my lease option buyer with a commitment of $90k down. 🔥

I’ve seen people saying you can’t get high down payments with this method, but we’ve done it several times.

In five years, we’ll get a nice check, plus did I mention $1k/month passively? 🙂

Recap:

- Buying house: $380k without securing financing, adding $15k worth of work (like a week), plus 2 months holding costs. $400k total. Worth $480k as is, and we list with discounted commissions on the listing side.

- Selling new house: $515k purchase. We pay $425k, turnkey. $90k down. $3500 monthly. Our underlying will be $340k. $85k remaining equity after down payment.

Total return:

- Novation: $50k 🔥

- Lease option: $90k down + $1k/month + $85k equity

No money in the deal. $1k month passive. 🔥

And the buyer is interested in being a PML in the future 🤯

What problems did we solve?

- No showings until the seller is out.

- Quick turnaround: less than 2 weeks for the seller, including finding their new ideal property.

- Secured new and temporary housing, putting money in the seller’s pocket.

- Secured a new deal at a discount of market value.

- Secured financing for this deal, given the terms of our lease as a rental (Passive).

- Provided value that others couldn’t and wouldn’t.