04 Dec Cash at Closing
How would your Real Estate investing business change if:
1. You could do deals with Zero Money out of pocket?
2. You didn’t have to make payments on Flip Deals?
Think about it? Limitless possibilities…
This happens all of the time, everyday. The real question is, will you create these results into your real estate business?
Please post comments below!
Okay guys, so check this out. I am buying a house today with some of my students that we’re doing a group flip on and so to clarify, that’s not a groupon – a group flip. (smile)
Anyways, one of the things with buying houses, I operate my Real Estate Investing with the belief that real estate should put money into my pocket and not take money out of my pocket because I know a lot of guys out there think like you’ll have to put money down in every deal.
I am here with Bianca, from All American Title in Houston Texas. You have a very lovely office by the way. She’s going to verify a few things for me. One is Cash at Closing. I’ve got the hud here that shows that we’re going to get about $20,000.00 cash, right now when the wire goes out to perform the repairs. So, we’re not bringing any money to closing. So, if you don’t mind. Just verify that.
Bianca: Sure! No problem. Cash to the borrower when we fund will be $20,187.98. So, no funds to close. Money back at closing table.
Brant: Cash at Closing to be able to buy houses without pulling money out of pocket and actually get money at closing? Just think about how many deals you can do. It’s literally infinite. So, the other thing cool about this particular lender that I’ve been working with for years and have a really good relationship with. One is, he’ll ask me to get the repair money funded at closing so I don’t have to come out of pocket to do the repairs and I can get moving really quick and we’re not worried about that. We’re moving things out really quickly. And the other thing that he does is he differs interest. So we’re actually won’t make any payments on this house until April and right now it’s December.
So you can see, I’ll show you Bianca. You can see, it shows that interest is collected upfront.
Bianca. Yup. Upfront from 12-30-2014 to 4-01-2015. So, not bad.
Brant: Yes. So we don’t have to make any payments and we don’t have to bring any money to closing on this deal. Theoretically it’s a flip deal. So, the house will be sold and closed out by April. That’s the plan. Very cookie-cutter. Bread and butter type of rehab.
Bianca: Don’t worry about it. We’ll get it straight for you.
Brant: Anyways, just think about those two things. How your real estate investing business could improve with private lenders if:
- You DON’T need to bring any money to closing
- You DON’T have to make payments for 3-6 months
Brant: So, just think about that and some of the advantages are really limitless. The possibilities that are out there are really cool. And once again, I want to say thank you to Bianca for helping me provide this social proof.
Bianca: Thank you!