Subscribe to my YouTube Channel right here.
How many of these deals do you have to have individually to quit your job, I never have to work again. Now I can do whatever I want. However I want for the rest of my life. We’re going to talk about a deal breakdown a deal that I’m currently in the middle of right now, I’ve got a sub two deal in Atlanta, Georgia subject to, I’m going to tell you the majority of the people that are selling to and subject to are either a they’re lacking equity be they are in a painful situation, they need to let go of the property and hightail it to another location. But they don’t have equity. They don’t have time, or they are behind on payments.
I want to talk about how I’m funding the deal, the numbers behind the deal, what I’m going to do with the deal, and any other question you guys might have along the way, in a magical world, the world that I magically live in, we manifested a deal with a gentleman out of Atlanta, his name is Jamario and we’re gonna end up having Jamario on Sunday service here probably in 30 days once we close escrow and I get things up and going Jabari sends me a DM on Instagram. So if you guys need help on Instagram, please DM me, I gave him my email address.
He then sends me all the details I told Jumari in the text message I said get me on the phone with the seller so I can actually get the seller under contract. I recorded that seller call and I gave it to my students to 45 minute call Jumari ends up following up with the seller every single week. The only person that actually called previous longer than two weeks was Jumari. So the seller is getting foreclosed on by February 2 Gorgeous, gorgeous house. It’s a five bed five bath house, this seller is a realtor herself. She said I don’t have time I don’t have the energy for it. I know what subject to is. I totally understand what you’re doing. Take over my property.
Want to learn my creative finance hacks? Download this Creative Finance Guide.
The numbers on the deals the seller is currently behind $41,000 I’m going to catch up those mortgage payments before I close escrow and people that are learning subject to and seller finance. They worry about that right? Because I’m brand new, how am I going to do that? I don’t have $41,000 to catch up the rear. What are my options? How can I actually take care of those arrears if it is a property that has no equity? It doesn’t cash flow. There’s no actual strategy that will help you make money and typically a short sale is the right answer. The next thing is a loan modification inside of sub two mentorship guys, we are currently doing a loan modification mini course with Kiki shrugs. She is currently teaching all of this up to students on Saturday mornings how to actively run and operate a loan modification business.
So you can go out and help sellers that are in foreclosure so that you can loan modify and get that amount of money that they owe $41,000 put onto the back of their mortgage, we want to make sure that we go after somebody’s house and try and get a loan modification before we go to option three raising private capital, I actually am planning on raising private capital to get this deal done. Worst case scenario.
So I’ve got $41,000 That’s going to go to a rears $10,000 That’s going to go to the seller give the seller $10,000 To walk away, and then I’m giving $10,000 to Jumari for bringing a deal to me what’s cool about this is Jumari didn’t even have to close the seller Jumari followed up with the seller mostly through text message Jamario got paid about $1,100 Every time he followed up with a seller every week, he followed up with the seller for about eight to nine weeks. Every Friday, he sent her a text message and was consistent.
And then finally everybody else stopped calling her because they just thought she wasn’t going to do a deal. And then two weeks before she’s getting foreclosed on, she finally talks to Jamario and says let’s do the deal. And that we get her into a contract we open escrow a few days ago. In order for me to actually turn this into an Airbnb, I’ve got multiple things I have to take into consideration and I call these things the entry fee.
There are seven parts to an entry fee. So number one is the sellers cash. So we already know what the sellers cash is the sellers cash is $10,000, the sellers getting $10,000 to let me purchase their property subject to the second thing is going to be arrears. Okay, so in this situation, it’s $41,000 in arrears. Don’t be scared by these numbers, they’re going to get bigger and I’m going to give you guys some good information for you to understand then Jumari is getting an assignment fee of $10,000.
Guys, I’m already at $61,000 before I even pay for closing costs now closing costs probably $5,000 Next thing that I’ve got is I’ve got renovation I’m going to put $20,000 in renovation there and then what I’ve got is I’ve got another $6,000 in payments along the way while I have a vacant property and it gets up and going and then I have $10,000 in furniture for the air b&b. So my total cost is pretty heavy $122,000.