hello and welcome today i'm gonna walk you through a real estate investment deal
step by step we'll analyze the deal together and share the process end to end in a simplified
manner for you but in this video i also want to share a very important moral story with you folks
this story is about a mother who had bad credit and she had lost her child
and she ended up staying in my property the same property that we're analyzing together
and so it's a sad story with a happy ending and i'd like to really share with you guys
a lot of knowledge but with a twist so if that interests you stick around for more
so this all happened at a time when i didn't have a full-time job i was out of a contract
no income coming in and i only had five months of savings just five months needless to say i was in
a precarious situation so the way the deal started is one fine evening i came back from the outside
and i got a call from my friend realtor frank and frank said to me that this person greg has a
great deal would you be interested in so i said to myself wow i don't have any money how am i going
to chase this deal but i said wait a second let me just find out if this deal is even worth looking
into so i can then go and figure out how to get money for this deal so i don't have a job five
months of saving and here i'm looking for a real estate deal that's pretty policy i would say so
frank showed me an email that came from greg this was a three bedroom one and a half bathroom town
home in a beautiful community great location so immediately i asked him for comparisons
comparative analysis of the property to see what other properties are selling for the same price
are similar most of the properties in that area of that size were selling for about 320 or 325k
i checked the schooling i checked the hoa fees i checked the taxes i checked the crime rate
i checked the walk store i checked if there's buses around i checked it was close to the metro
everything check check check check check let me also tell you i did some more market research
to find out what other properties in the area despite of my realtor submitting his comparisons i
want to do my own due diligence which is something you should also do what i found out to my surprise
every property was in the 325 330 range but there was one property there was one property
that was selling for over 400 000 right across the street so i said to myself what is going on here
why is this property so expensive so i went across the streets and i found out this property was
just stunning well the only difference this property had compared to mine is
this property had one extra bathroom that was the only difference so i was like bingo
if i can add one more bathroom to my property that i'm trying to get across the street
i could sell it for the same price a hundred thousand dollars different almost and i'm
surprised other investors were not able to see that fine point but i did so that was the
trigger that got me interested in this deal and those are the triggers you should also look for
in a deal like that is there something that you can leverage to increase the value of the property
that's really what we're trying to do folks in any investment property so long story short
my realtor friend frank asked greg would you be able to give us this property for 240k
of course 240k was a bit higher than 230k and he said sure if your client agrees let's do it
so all of a sudden we had a deal well we have the deal but we have no money so the question now was
how do we fund the deal well there's some options you can go to the bank you can ask for private
money and so on so forth i don't have time for any of that what i wanted to do is the following
i wanted to chase down a hard money lender who can give me the money as quickly as possible
you know with minimal credit check you know maybe some bank account statements
and so on so forth so i chased down a hard money lender she was kind enough to ask me for my credit
score which was really good i had accumulated a really good credit score and also a credit amount
okay so that really helped me get that deal but the numbers of the deal you know the
rehab costs and all those numbers which i'll talk about in detail now were really stellar
the lender didn't have any issue giving me the deal thinking that i could easily flip that
property for a much healthier profit especially with the strategy i had in mind of adding another
bathroom now the bathroom is the key of the story folks so let's look at some of the numbers okay
uh cost of acquisition of the property is 240 000 the duration to fix the property is 2.5 months
roughly 2.5 to 3 months the cost of acquiring the loan the hard money loan is about six to
seven thousand dollars for two to three months right it was two thousand dollars a month payment
i also checked the properties in that area were renting for about nineteen hundred dollars roughly
but if i could add the bathroom to this property i could rent it for even higher price or i could
flip this property right many different options so the net cost of acquiring the property was 240 000
for the property price 25 000 for repairs plus six or seven thousand dollars for the hard money loan
that i was getting plus a few thousand dollars closing costs so let's say we were averaging about
270 or so thousand dollars all in and the property is mine so after a few calls after giving her the
credit report after doing all the diligence and a lot of paperwork and back and forth phone calls
i was able to get the loan verified well now i have the loan the seller is ready the price is
locked okay so we close on the deal but we close on the deal but how do i come up with the money
for repairs or contractors so i had a challenge on how to pay the contractors and the materials
right keep in mind i only have five months of savings so i can't use my personal money until
i find a new job or a new contract so guess what i did guess where i found the money from
you guessed it right credit cards i use my credit card for all of it for all of it folks i had
worked over past six or seven years to improve my credit and also leverage my credit limit okay
so credit card after credit card after credit card is what i had accumulated if you don't
have at least seven to eight credit cards the top tier ones that have thirty thousand forty thousand
i had hundred fifty thousand dollar limit on my credit card store so i could have maxed it
out but in this deal i only needed thirty but the beauty of this is this folks that not only that i
was able to use credit cards but i was able to also accrue points on those credit cards which
means for me that i can also travel for free once i'm done with this property you see the point now
i won't get into too much detail on how we were able to obtain a contractor i have many contacts
i can get contractors but if you want to find a contractor you can go on craigslist you can go on
many different online platforms and go you can go to angie's list to find a contractor but
needless to say in this case you were able to find a fantastic contractor okay so let me show you how
we created a bathroom in this property what you're seeing on the screen is a picture of a closet
i masterminded this plan to put a brand new stand-up shower and a beautiful bathroom a
gorgeous bathroom in that closet space so now we turn this house from three bedroom one and
a half bath to two and a half bath and the value just went up and that's beautiful folks when you
acquire a property you must look for these kind of opportunities because these opportunities are just
gold coins for you it's free money okay also let me also show you some other parts of the project
that you can learn from if you see this old kitchen that we had we renovated the kitchen
with beautiful granite countertops nice backsplash but also we opened up the area between the kitchen
and the living room just opened everything up we cleaned up the stairs we stacked up the washer
and dryer on top of each other instead of the way it was before which was next to each other so we
saved a lot of space by stacking up the washer and dryer and the closet and the wall between
the kitchen and the living room so that's how you create the illusion of space in a small property
i will tell you this that every single person by the time you were finished with the property
who walked across the street said this is the most beautiful kitchen because they could see it across
these beautiful glass doors we had put in this is the most beautiful kitchen they've ever seen
in that community and that's the standard i was thriving for because i had seen the house
on the opposite side of the street and i wanted to make sure i can do everything possible to
make my house sell at that price so now we're sitting at 400 plus thousand dollars possible
sale price so i put the house on sale now and i got five offers in a matter of a week
just like that and this is a few years ago but the market wasn't hot so i said to myself okay
what are you gonna do so here's what i did folks i rejected all the offers and i wanted the best of
both worlds which is to get my money out of the property but also not sell the property because
i knew the property was gonna keep going up and i will show you in the end of the video
what that what is the price of the properties now so here's what i did i took i refinanced
the property and took my money out and i rented the property and guess how much it rented for
it rented for twenty one fifty two thousand one hundred fifty dollars almost a thousand one fifty
over the price of any other house in that neighborhood now why would somebody pay that
much money because this property was pristine it had space it had an illusion of space
and had everything new everything brand new appliances you know countertops and tiles
and brand new hardwood floors it's a you know beautiful backyard beautiful front yard you know
newly painted house this was a turnkey property so who wouldn't pay another 100 a month extra
so here's where the story of the lady starts folks that i was telling you about the sad story
i rented this property not to everybody else who had money but to a mother okay who didn't have
good credit she had bankruptcy on her credit didn't have good credit had good income had a
good job she had two kids and two dogs and i gave her the property because i took a chance on her
i wanted to help her out and that's what this channel is about folks everybody can make money
everybody can be an entrepreneur but to be an extraordinary entrepreneur is someone who also
uses their morals and values to help people and that's exactly what i wanted to do is help this
lady so i took a chance on her guess what happened a year later covet hit she could not pay the rent
for many many many months and what happened after that is even worse she lost her daughter
she lost her daughter her daughter was sick she suicided suicidal the same property suicide can
you imagine what this person went through now all the people that i know the businessman they
told me like you know if this person doesn't pay the rent for the next few months you need
to find a new tenant and i said no i can't do that i can't throw this woman out on the street
because she had bad credit she won't be able to find any other place to stay and this woman was
devastated so i helped around folks and by doing that i fulfilled myself not only financially
but also emotionally and how did i do that i was able to find other venues local county cities
organization church donations that helped her pay some of the rent so i could pay the mortgage
and the months that she was not able to pay i just essentially took the hit the reason
this story is also special to me folks and i'm sharing with you is i lost my dad two days ago
i lost my dad and it made me realize made me realize what life is about
i want you guys to learn from this video i want you guys to make money
but also do the right thing where you can try to help people try to help each other
try to help a woman like her and maybe even more more people and that's what i want this
channel to be about but if you like this cause and if you like this kind of cause this purpose
please subscribe to this channel please like this channel please show your support so i can
help more people god has given me a lot of money i don't need any more money to be happy i have all
this wealth it's nice houses and everything else but i want to turn the corner now and i want to
make it about people i want to make it about you people who are the outsiders people who never get
a chance people who have bad credit people who don't get asked their opinion of that's what i
want to dedicate these videos and this channel to and helping people who don't have resources
who don't have the means with that i thank you very much i hope i'll see you in my next video
i love you all and i'll see you next time thank you so much live an amazing life