How To Pick The Right Exit Strategy For Creative Finance #Finance

welcome to maricopa city where we buy sub two deals and don’t know what we’re gonna do with them quite yet what we were talking about in the car on the way here is what do you do with a house right how do you make a decision on what your exit strategy is especially if you buy

with creative Finance creative Finance has so

many different options i could re-wholesale this to somebody else if i wanted to i literally could just assign this to for 20 grand and and get all my money back and make 20 000 on this easy maybe 30. i could put a little bit i haven’t been in here so we’re gonna go in there and see

what it looks like but put a little bit of money into it put it back on the market sell it for 370 walk away maybe making like 100 right maybe 80 to 100 000 net in my pocket after all my money’s paid off that’s not bad or i could wrap it i could sell or

href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance it to somebody else for a much higher number with a high interest rate that might be not bad i could do a lease option i could just hold this as a rental i could airbnb it i

could corporate rental this i could traveling nurse this i could sober living this i could do a whole bunch of different exit strategies on this house and it kind of determines who you are where you’re at in your journey and what you really need in the next phase of your journey if i was

brand new i would have just assigned this i would have just been like here’s 20 grand i don’t want to touch it i’ll just do the sub 2 paperwork i’ll do the creative none;">Finance side of things bundle the paperwork sell it to somebody like me make 20 grand walk away but then as you elevate you’re like okay well i want to flip it because i can make a bigger chunk and then as you elevate and you have more money more credentials then

you’re like oh crap i made a lot of money last year in Real Estate and now i got tax obligations i need to hold this property because this will actually prevent me from paying a bunch of Taxes and now the conversation’s no longer about Cash

Flow the conversation’s about saving money on Taxes right so there’s all sorts of things that you’ve got to weigh in your mind of like who you are where you’re at in your journey so i’m not quite sure what we’re going to do here and i

don’t know how to get into the house classic okay okay so this is always a problem okay here we go so like i look at the outside of this it’s in really good shape you can tell he when he moved here he also drove right into the road the house is in good shape lighting’s in good

shape they even got a really fancy doorbell that’s dope all right here we go hello hello eric have you walked in the house with me that had homeless people yet no oh get ready it’s scary yes absolutely because you don’t know like what they’re capable of i’ve had guns

pulled on me i’ve had all sorts of things happen to me here’s a tip can i give you a little tip anytime you do a walk through in a property always open the front and back door immediately it’s the first thing you should be doing before you walk into the rest of the house

i’ve been choked i’ve had guns pulled on me i’ve had knives pulled on me i’ve had all sorts of things pulled on me but more than that i’ve been able to escape by opening the front door as you can see and opening the back door so if somebody comes out of the main house

i can run either way with no like obstruction right so very important what does it smell like what would you tell me it smells like i know what it’s exactly what it smells like just a musty it’s not cat is it it’s a little bit of cat but it’s more a bachelor’s ball

sack it’s the greasiness of a bachelor’s ball sack it’s just disgusting like gross gross girls so the exit strategy determines what you do with the house too right all right so if you end up selling the property you’re definitely going to do carpet not laminate if you end up

renting the property you end up doing laminate because you never want to replace this carpet again you see what people like this is human beings welcome to human being land this is what human beings do to disgusting like just gross i’ll tell you what you do if you sell this house okay you

paint the walls you switch out the hardware so like this is just unacceptable to sell the house this is what human be this is what just gross human beings do look at this so that means your filter so bad that your cigarettes or whatever it is that you’re you’re doing have gotten through

your filter and now coming back into your house like when you ask me like what a distressed property owner is it’s these little signs like this that should show you what a distressed property owner is imagine your bed’s right here right and you’re so disgusting that you create

this mess in your house you just have pistachio nuts flying everywhere and you’re laying in bed watching tv or whatever it is you’re doing and you don’t notice this you know what i’m saying you don’t notice this on your fam that’s distress right that’s

somebody that’s going through depression that’s somebody that is going through a tough time and so i’m not making fun of those people i’m just making sure that you understand that there’s a significant difference between what you think a homeowner is and what i see

homeowners are all the time so there is a big significance between a regular homeowner and as distressed homeowner and when we when people say well where do you find these deals well we find them from distressed property owners and that’s a really ambiguous yet somewhat specific answer the

ambiguity in that is like well where do i find those people right how do i find a disrupt distressed property owner well if you have people have you know their yard looks like this there’s a very important phrase that i learned how you do anything is how you do everything and so you can see

how people make their life decisions by looking at their house unfortunately so this person made bad decisions lost his job wasn’t able to make payments that kind of stuff so if we flip it it’s getting carpet it’s getting paint i think it’s going to get new ceiling fans

because like you can’t flip a house with that ceiling fan right very little drywall repair very little and tile stays i gotta look at the flips in the neighborhood but i think what i’m gonna have to do is i would have to spend money on for sure appliances paint the cabinets maybe and

add new countertops new sink etcetera so i might spend seven thousand dollars in here for the appliances the countertops the sink probably another two thousand dollars for paint and two thousand dollars for flooring miscellaneous two thousand dollars of other things like landscape cleanup et cetera

so i could probably be all into this thing for 13 to 17 000 with some buffer in there and have this thing flipped back on the market and sell this bad boy so i don’t know let’s let’s take a look at this so this is what i was thinking when eric had the camera overheating i kind of

drove drew some hieroglyphics so let’s talk about this for a second so we’ve got the arv so after repair value after we put the 17 dollars into it i think we can sell this house for 370. okay even though there’s six houses on the market right now we got six listings active

that’s not a good thing it’s horrible actually i could sell it for 370. i’m all into it we took over a sub 2 Loan for 180 it took 65 000 in cash that we borrowed from a private money lender so that’s pml private money lender that 65 000 in cash is for the

renovation it’s to catch up the late payments it’s to give the seller some cash we paid an assignment fee to sandy who’s absolutely amazing sandra white she’s great so i’m all into it 245 000 and if i sell it for 370 we would net around 100 000 bucks on this so when

people are like oh where do these deals come from guys this is like middle of 2022 when there’s no deals yeah you make a hundred thousand dollars on a little house like this it’s because you find the sellers who have distress and pain that you can actually offer something to them so i

could net a hundred thousand dollar dollars on the flip or now that i have this sub two Loan it’s 1400 i got a a monthly payment of 1400 i now have a monthly payment with my hard my private money lender at 580. so i’m all into this monthly payment about 2 000 bucks

that’s what it cost me to hold this property is about 2 dollars i thought nah probably not a good airbnb because it’s in god forsaken maricopa it’s not a good assisted living it’s too small it could be a good rental but at a rent rate in this neighborhood it wouldn’t

Cash Flow it’d basically break even if i turn this into a sober living and i had eight to nine people live in here just rent by the bed i could rent this out for about fifty four hundred bucks and at fifty four hundred i would net between two and three thousand dollars a

month on this property over 24 months i could pay back all the money back to my private money lender and after all of that i would own a house for 350 to 450 000 in value depending on what’s going on in the market with zero dollars out of my pocket and have an infinite return of two thousand

dollars a month for the rest of my life and obviously that would go up and up and up as i raised rents and stuff like that so you got two really good options here right option one long haul forever money two thousand dollars a month for the rest of your life or take the hundred thousand dollars

right now or within the next couple of months and maybe roll that hundred thousand dollars into a couple of other deals so you don’t have to use private money there’s the answer let’s go through the garage all right so i don’t think you’re gonna have to do too much in

here i think it’s just carpet paint maybe some outlets little basic stuff but one thing we got to look on is appliances in the laundry room all right these look pretty good if i kept it as a rental these would be pretty good and then hot water heater oh check it out so we got a newer hot

water heater okay cool four years old hot water heaters in arizona usually last about 15 years so we’re good there and then garage door opener and everything is good so overall this is a really easy house really easy project not sure what we’re gonna do yet but we’ll do a

follow-up CashNews.co we’ll do like a part two so you guys can see exactly what the plan is here but the listings on the house in the neighborhood that are active those kind of got me fearful that i won’t make the hundred thousand dollars that i was really hoping to make and if i

can’t make the hundred thousand dollars there’s something mental there where it’s like yeah you made seventy two thousand dollars i almost in a weird way would rather just keep the property put it in the Portfolio let it Cash Flow grow let the

mortgages pay down pay off the private money lender and just hold the property for forever so we’ll follow up with you guys on part two of this when we make the decision when we’re done with it we’ll break down all the numbers so you guys see exactly what we decided to do

we’ll see you guys later