Rafael Chavez, Kris, and Stanly got a monster deal under contract the other day! Wahoo.
Because they love seller financing and find it easy to do, they submitted the seller a 4-offer spreadsheet. This is a tool that allows the seller to see the financial benefits of seller financing. The seller was given four offers to consider:
- An all-cash offer
- A large cash, small portion seller financing offer
- A smaller cash and large seller finance offer
- An all seller financing offer.
When we sat down to write the offer, the seller pulled out the four-offer sheet and pointed to number 3, without us even asking and said, “With the extra income I get from this offer, I can help offset my capital gains tax.” No pushing. No selling.
Rafael Chavez and team will be superstars in this business, in part, because of the willingness to just do things the easy way. We teach how to do it, then they do it. You don’t have to make it harder than that superstars.
They are also very talented, diligent, fervent, aggressive and “ALL IN.” It makes such a difference.
The property is 1.03 acres and is under contract for $400,000. We are putting $120,000 down and getting $280,000 seller financing for 12 months with NO payments. Rockstars. We can get up to about 29 units to the acre, like past projects close by, but expect to get closer to 23-25 due to some odd angles on the property. It is profitable at about 15 units.
And, this property is in an area where people are getting close to 30 units to the acre. In our “5 Profit Points” calculations that they did before writing the offer, we can profit with almost half of the units that we expect to get and will profit MASSIVELY with all the units we can get.
Rafael and team, found this deal taking textbook steps:
- Getting committed.
- Getting educated.
- Finding where the city is looking for urban renewal, infill, and redevelopment.
- Setting up a full area of expertise operation like so few have.
- Meeting with the city and finding out that they have an amazing set of density bonuses for those that help realize their plan in specific areas.
- Aggressively contacting sellers by phone, email and door knocking.
- Setting appointments and writing offers.
Textbook. We do deals here at Mike Watson Investing and so does Rafael and team. Give him a big shout out!