And when Tim bras was coming into town to do a podcast on Steve Trang show we’ll put a link down there below if you want to get to know who Tim Brown says Tim brought sends me a text message he goes hey man, respect everything you’re doing. I want to collab I want to see you when I’m in Phoenix and I go bro, stay at my house, drive my car, do all the things. So timber often I get to spend some time together. He takes my car around, he doesn’t have to spend money and guess what else timber rots now drives my car that I bought subject to further and forcing all of my friends that I’m the creative finance guy.
So for me buying this car has a tremendous benefit for marketing promoting and collaborating with other influencers that I want them to know like this is what I specialize in. This is what I do. So Tim brought tonight over the weekend that he came Tim says man let’s do a deal together. I’ve got an $18 million multifamily deal I’ve already got it under contract I already know exactly what the game plan is we’re going to you know add some value to it sell it for $25 million.
Well you know what a car payment that I took over on this car allowed me to have a conversation piece with Tim and spend some more time together with him and he drove my car the whole time. He’s got his hands on my car and he’s driving around town who do you think he’s thinking about he’s thinking man pace let me use this car pace creative finance pace bought this sub two. In fact, here’s what happened Tim takes the car from my house out to Carlos Reyes his podcast and Tim says Hey man, how do I return the car back to you I go do just leave it wherever and he goes okay, do you mind if I just leave it at Carlos his office?
I go no, no problem. So a couple of days later Tim has already left this car this key of the sub two Kia at Carlos his office. All right, I got a couple of minutes. Let me Uber out there I’ll go pick up the car and bring it back home. Well I get out to Carlos his office another friend of mine and Carlos goes Oh, you’re here to pick up your sub two car so what does that do it further enforces to my friends in town and other real estate investors that not only can I buy houses subject to but I can buy cars subject to I want to be known as the subject to guy and so for me, the value of this car is everything I just said.
It’s the ability to market it’s the ability to collaborate. It’s the ability to remind people of the power of creative finance and that I’m the guy that can get all those things done what somebody else could do by buying this cars. Let’s say that I’m a young kid 1617 1820 Whatever. And I go, man, somebody’s willing to let me take over their payments like this Kia owner was what can I do with that car? Right? I can’t afford a car payment right now. Okay, well, you couldn’t Uber Eats you couldn’t drive Lyft you couldn’t you know, do one of these other services where you drive around and do delivery, this car is a moneymaker.
Even though it has a car payment on it. This car is a moneymaker. It didn’t require any cash. For me, it didn’t require any credit, I literally just start making payments to the bank, the bank is Ally financial, and I take over the payments, then I get the registration in my name, the insurance is in my name. And when the car is completely paid off, guess who gets the title I now if I want to right now I could sell the car, I could go and even let somebody else drive it if I really wanted to. I don’t. But most people don’t recognize that when you don’t have a car that shouldn’t hold you back.
You should be able to go out go on Craigslist, Facebook marketplace, go to places where people are selling cars and simply ask them Hey, will you allow me to just make payments on this if I pay you an elevated dollar amount and my first foray into creative finance with vehicles was actually on an f1 50 of mine. I had a 1998 Ford f150 quad cab it hit like 320,000 miles on it got to a point where I was having more issues than I really wanted to deal with. And so I decided I was going to throw it up on Craigslist. So I go to Kelley Blue Book, Kelley Blue Book says, Hey, man, this truck is worth five grand.
And I’m like, I’m not gonna sell this truck for five grand. I’m gonna sell this truck for 10 grand, so I belligerently put my truck up on Craigslist for $10,000.03 months later, nobody called texted, reached out, nobody’s trying to bang down my door for something I’m trying to sell for double the value. So my wife comes in. She says, Hey, aren’t you like the creative finance guy? Like, why don’t you try and sell your truck on payments? And I’m like, Oh, my gosh, you’re so right. So I go back to my Craigslist ad, I change one thing, and the thing I changed was F 150. We’ll take payments. So I didn’t just sell that truck for $10,000.
I sold that truck for $12,500 Because I was willing to accept payments instead of one lump sum of cash. Now, you might ask yourself, why would the buyer of that truck pay two and a half times what Kelley Blue book.com says it was worth Well, it’s because the gentleman who bought it for me was a painter, he needed a truck, but he didn’t have a large downpayment. He didn’t have credit, none of that stuff. In fact, he might have been illegal I don’t even know and I really don’t even care.
So he buys my truck gives me $1,000 as a down payment, and I financed the remaining $11,250 to him with interest over the course of a couple of years. He made a $350 payment to me every single month. Now did he overpay for that truck? Well, it depends on how you use that truck, isn’t it? You could technically say I overpaid for anything if you’re not going to use it even a $1 shirt or a $10 hat like if you’re not going to wear the hat or the shirt, you overpaid.
You didn’t use it but he paid 12,500 so he could take that $350 payment he was paying to me every month and turn that into 678 $1,000 a month in income through his painting business by using the truck so it’s the same thing with this car. Yes, I have a car payment Yes, I get that yes, I don’t have a car paid off. I get that I totally get that but what I get out of it is far more value than what the car payment actually is. So it all depends on how you utilize anything you buy subject to what I do with cars.
What I do with houses is I take the payment that I’m taking over and I elevate my ability to make money by doing something with it a value whether it’s an air b&b, a corporate rental something along those lines use the debt to leverage into some other form of income so this is just video one guys if you guys are interested in video number two, I will go down and show you how we found the car I’ll go through the conversation with the seller how we negotiated with the seller on taking over this car subject to I’ll even break down and give you guys the paperwork that my attorney Sean St. Clair drafted to tell you exactly how to buy a car like this with no credit no credentials and no cash and you can turn around and do whatever the hell you want with it.
Okay, I could do this with a fleet of cars any other part of the country so if you guys are interested in that please make a comment down below and we’ll make a part two if we get enough comments and we see that people actually see the value we’ll make another video all about where we found the car how we structured it how I convinced the seller that this was good and a benefit to them and I’ll give you guys the whole behind the scenes what my car payment is all that kind of stuff but you got to make a comment down below and I hope to see you in part two of how we bought a car was subject to this my wife calling See you later.