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- Feb 15, 2019
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I had a fun story I thought I'd share on how I got my first lambo for free, well sort of. I invest in real estate and one strategy I love to do is sell houses owner financed. Why? Because I get the monthly cash flow that a rental provides (usually more) and I don't have to deal with maintenance or tenant problems. I'm simply the bank.
About a year back, I was cold-calling looking for off-market houses to buy and found this older guy that wanted to sell his portfolio. He had a portfolio of 22 mobile homes. (these were not in a mobile home park. They had their own parcels of land and were scattered around town). He wanted 600k for the portfolio. A mix of about 9 double wides, and 13 single wides. I knew it was a great deal.
Only problem.... Well, I didn't have 600k. So I called up this guy that had partnered with me before, Jim, long story short he said he would do the deal. Only one more problem.... I didn't really want to do the work that was involved. All 22 houses were tenant occupied, needed to get them out/owner finance to them, clean the houses up a little bit, transfer management over to our company etc. So I called up this guy that was a mentor of mine, Travis, and who taught me how to owner finance houses. He agreed to get in the deal.
We agreed to buy the portfolio. Travis, Jim, and I would all be 1/3rd owners. Jim puts up the money, Travis does all of the work, and I get 1/3rd because I happened to find the deal and get the contract signed. Easy enough. We close, sell all of the homes owner financed. We created over 1.8m worth of notes. For those that don't know:
A note is what the bank holds when you buy a property using a traditional loan. The note says Joe blow agrees to pay $1,000/mo for 30 years and after that time his property is paid off.
These notes were producing around 15k/mo in net cash flow to us. Then one day, I was at a real estate exchange meeting. For those that don't know: a lot of really savvy real estate guys will get together and trade properties, cash, notes, cars, etc in exchange for someone else property, note, car, etc. There's many benefits to this but I won't get into them here. A guy I know, Philip, stands up at this meeting and says he has a lamborghini he wants to sell or trade. He took it as a down payment when he sold a house owner financed and didn't want it.
I offered to trade him one of our mobile home notes that paid 1k/mo in exchange for the car. He took my offer. I go back to Jim and Travis, tell them about the deal, and they agreed to do it, under one condition, the 1k/mo that I'm trading would come out of my monthly split. Done.
So I give the note to Philip and Philip gives me the sexy Gallardo. Mind you, I have no money in that note. I now have a free and clear lambo that I traded a mobile home for (that we paid 27k for..... LOL). My only cost was I no longer collect that 1k/mo that the tenant was paying me. Philip collects that. I've attached a picture of the car below so you guys can check her out.
About a year back, I was cold-calling looking for off-market houses to buy and found this older guy that wanted to sell his portfolio. He had a portfolio of 22 mobile homes. (these were not in a mobile home park. They had their own parcels of land and were scattered around town). He wanted 600k for the portfolio. A mix of about 9 double wides, and 13 single wides. I knew it was a great deal.
Only problem.... Well, I didn't have 600k. So I called up this guy that had partnered with me before, Jim, long story short he said he would do the deal. Only one more problem.... I didn't really want to do the work that was involved. All 22 houses were tenant occupied, needed to get them out/owner finance to them, clean the houses up a little bit, transfer management over to our company etc. So I called up this guy that was a mentor of mine, Travis, and who taught me how to owner finance houses. He agreed to get in the deal.
We agreed to buy the portfolio. Travis, Jim, and I would all be 1/3rd owners. Jim puts up the money, Travis does all of the work, and I get 1/3rd because I happened to find the deal and get the contract signed. Easy enough. We close, sell all of the homes owner financed. We created over 1.8m worth of notes. For those that don't know:
A note is what the bank holds when you buy a property using a traditional loan. The note says Joe blow agrees to pay $1,000/mo for 30 years and after that time his property is paid off.
These notes were producing around 15k/mo in net cash flow to us. Then one day, I was at a real estate exchange meeting. For those that don't know: a lot of really savvy real estate guys will get together and trade properties, cash, notes, cars, etc in exchange for someone else property, note, car, etc. There's many benefits to this but I won't get into them here. A guy I know, Philip, stands up at this meeting and says he has a lamborghini he wants to sell or trade. He took it as a down payment when he sold a house owner financed and didn't want it.
I offered to trade him one of our mobile home notes that paid 1k/mo in exchange for the car. He took my offer. I go back to Jim and Travis, tell them about the deal, and they agreed to do it, under one condition, the 1k/mo that I'm trading would come out of my monthly split. Done.
So I give the note to Philip and Philip gives me the sexy Gallardo. Mind you, I have no money in that note. I now have a free and clear lambo that I traded a mobile home for (that we paid 27k for..... LOL). My only cost was I no longer collect that 1k/mo that the tenant was paying me. Philip collects that. I've attached a picture of the car below so you guys can check her out.
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