CALIFORNIA - $63,599.76 Profit
SAN DIEGO, CA People in high priced real estate areas like California can oftentimes be concerned about whether or not real estate investing works where they live. Furthermore, they are also usually extremely concerned about where the money is going to come from to fund good deals. Erick had done his homework before joining Freedom Mentor's Apprentice Program and he knew that we had invented techniques for creatively financing real estate deals that no other investors knew about. After a few months in the program, this was his first really good deal to come along. The seller had just moved out-of-state and wanted $250,000 for her house. Erick had researched what this house could sell for and didn't haggle on price and got it under contract for what the seller wanted. He then put the property on the MLS and generated a multiple offer situation. The highest bidder offered $330,000. Using one of our creative financing strategies, (without a down payment, or qualifying for a loan), Erick purchased the property for $250,000, and only had to come up with about $500 for closing costs. He then resold the property for $330,000. Start to finish, it took 7 weeks. Except for adding 4 smoke detectors and a carbon monoxide detector, no work was done to the property. The total out-of-pocket cash Erick put into the deal was about $621. In the end, the net profit was $63,599.76.
Deal at a Glance
- Purchase Price: $250,000
- Funding Source: None. Creative Financing.
- Repairs Costs: $121
- Funding Costs: None
- Sales Price: $330,000
- Length: 7 Weeks
- Net Profit: $63,599.76
Below is the actual closing statement from this deal (with certain information erased for privacy purposes):
Closing Statement
COLORADO - $36,637.55 Profit
COMMERCE CITY, CO - Max was a busy man even before he joined Freedom Mentor. Running his own small business took up seemingly all of his time. But he wanted to transition out of the business he was in and into creative real estate investing, which he determined would be more profitable and far less time consuming than the business he had been in for the past 5 years. Automating the many facets of this business was crucial to him because he didn't have any extra time to waste. One of the techniques we introduced to Max was the art of negotiating a creatively financed deal with the seller by taking over the 1st mortgage Subject To, creating a seller held 2nd mortgage and then giving the seller a small amount up front to be able to move out. Then, by simply cleaning it up and doing a few other odds and ends, listing it on the market at a low price in order to sell quickly. Max followed this method exactly as we instructed and this is just one of 9 deals Max has done just like this one over the past several months. He is able to avoid expensive hard money costs while also being able to pay more for a house than other investors can so he is able to do more deals with less risk and make bigger prfoits, all while doing this on the side while he winds down his existing business. (Note: There is only one closing statement because the creative financing closing with the original seller was done without the use of a closing company.)
Deal at a Glance
- Purchase Price: $270,000
- Funding Source: Creative Financing ($220,000 1st Mtg Subject To, $35,000 Owner Financed 2nd mtg, $15,000 Down)
- Repairs Costs: $4,000
- Carry Costs: $2,000
- Sales Price: $335,000
- Length: 2 Months
- Buy-Sell Net Profit: $36,637.55
Below are the actual final closing statements from this deal:
Closing Statement
FLORIDA - $91,806.94 Profit
FORT MYERS, FL - Noel saw the opportunity to apply Freedom Mentor's methods of creative real estate investing to his own backyard in southwest Florida. He had bought and sold a few homes in his day, owned a rental property or two, but he had never made any real money from it. He joined this program because he wanted to learn from the best. In short order, we taught Noel how to find the best deals and this one was a bonafide home run. The house was vacant and needed a whole lot of work to bring it up to move-in condition. The seller had inherited it and just wanted it gone. Originally, the purchase price Noel and the seller agreed upon was $25,000. But after the home inspection, he was able to get $11,000 off and the final purchase price was $14,000. He then used his own money to purchase the property and then he hired his contractor friend to fully renovate the house. After $24,980 in total rehab costs, the house was ready to be listed. Noel didn't listen to Phil's advice on choosing the most qualified Buyer, rather than the highest paying, and his first Buyer strung him out for nearly 60 days without ever qualifying for a loan. Eventually, Noel smartened up and locked in a much better, qualified, Buyer who paid $142,000. From the day he got the deal under contract all the way to when he closed with the new buyer spanned 7 months, although it could have been about 2 months faster had he locked in the most qualified buyer the first time. In the end though, it earned a net profit of $91,806.84. Noel joined this program to learn how to make the big money in this business and that's exactly what we showed him how to do.
Deal at a Glance
- Purchase Price: $14,000
- Funding Source: Apprentice's Money
- Repairs Costs: $25,000
- Funding Costs: $5,500 interest paid to the Apprentice for using his own money
- Sales Price: $142,000
- Length: 7 Months
- Net Profit: $91,806.94
Below are the actual closing statements from this deal (with certain information erased for privacy purposes):
Closing Statement (Buying)
Closing Statement (Selling)
GEORGIA - $76,097.13 Profit
ROSWELL, GA - Bryce and Julianne were newly weds as well as graduate students, looking to make extra money on the side and earn enough to be strong financially when it came time to have children. They started off slow but made steady progress and finally began closing some smaller deals after several months into the program. Each deal seemed to get a little bigger in size and finally, after over a year into it, they finally landed upon their first really big deal. Like they had many times before, they took over the 1st mortgage Subject To; this one being $220,400 and only had to pay the sellers $5,000 to become the owners. They only had to do a couple of little things to the house as well as get it professionally cleaned before putting it up for sale. Within days, they had a multiple offer situation and the highest priced buyer was willing to pay $330,000. Because of the ingenious way in which we have developed for taking over properties Subject To, Bryce and Julianne did not have an issue with reselling so quickly for such a large differential between the purchase price and the new sales price with the new Buyer. They now have their first baby and that precious little girl is extremely well cared for. (Note: There is only one closing statement because the creative financing closing with the original seller was done without the use of a closing company.)
Deal at a Glance
- Purchase Price: $225,400
- Funding Source: Creative Financing ($225,400 1st Mtg Subject To + $5,000 Down Payment)
- Repair Costs: $1,500
- Holding Costs: $2,500
- Sales Price: $330,000
- Length: 2 Months
- Buy-Sell Net Profit: $76,097.13
Below is the actual final closing statement for this deal:
Closing Statement
IOWA - $20,000+ Profit
WATERLOO, IA - The Subject To deal makes money in three places. This investor took over an existing mortgage of $87,000 which had payments of $503 per month. Then, the investor found a Rent to Own Tenant Buyer willing to pay $3,000 upfront and $900 per month. So the first place money was made was from the upfront payment the Tenant Buyer made. Since the seller wanted $500 and the payment was one month behind, out of the $3,000 provided, the investor kept $2,000. Next, the monthly cashflow is $400 per month. Finally, the tenant buyer is agreeing to buy the property for $110,000 so the back end profit will be $20,000, which usually comes about 2 years later.
Deal at a Glance
- Funding Source: Subject To
- Upfront Costs: $1,003
- Upfront Income: $3,000
- Monthly Costs: $503
- Monthly Income: $900
- Purchase Price: $87,000
- Sales Price: $110,000
- Length: Ongoing
- Upfront Profit: $2,000
- Monthly Cashflow: $400
- Est. Backend Profit: $20,000
This deal did not have an official closing statement because there was not a traditional closing. The investor ordered a title report which came back clean and simply had a Deed drawn up by his closing agent and the seller signed the Deed, the investor recorded it, and now this investor is the owner of a property that has an instant $20,000 in equity and cashflows positive $400 per month.
LOUISIANA - $247,591 Profit
NEW ORLEANS, LA - Every so often, you run into a really, really good deal. This property had tremendous potential but was in serious disrepair. It was in a historic district of a very nice part of New Orleans but it needed hundreds of thousands in repair to bring it to its full potential of a $1M home. The investor negotiated a good deal with the sellers (purchase price of $330,000) and included 6% commissions ($21,420), he was also a licensed real estate agent. He marketed for a retail buyer, as opposed to an investor buyer, and an attorney's wife saw the potential and fell in love with the property. The new buyers put a contract in for all cash $650,000. Once the contract was signed, the investor closed on the deal with the original sellers using transactional funding. Several weeks later, the deal closed and here is how the profits shook out. First, $206,671 was the net profit after all closing costs and expenses. Plus, the investor collected a total of $40,920 in real estate commissions. Had he not been a real estate agent, he would have simply paid less for the property and then paid less in commissions on the sell side, so even a non-licensed real estate investor would have still profited a total of $247,591. When you are taking action and doing deals, these bigger ones come along and they are a pleasant addition to your other money makers.
Deal at a Glance
- Purchase Price: $330,000
- Funding Source: Transactional Funding
- Repairs Costs: $0
- Carry Costs: $0
- Sales Price: $650,000
- Length: 2 Months
- Buy-Sell Net Profit: $206,671
- Extra Commissions: $40,920
Below are the actual final closing statements from this deal:
Closing Statement (Buying)
Closing Statement (Selling)
MASSACHUSETTS - $45,899 Profit
WORCESTER, MA - Would you rather have a quick nickel or a slow dime? That was the choice the investor had to make on this deal. If he quickly flipped it to a retail buyer, the total profit would have been in the $18,000 range. However, his mortgage broker had determined that a buyer who had made a full price offer but couldn't qualify for the loan immediately, would be able to get a mortgage within a few months after doing some credit clean up. So the decision was either to get the deal done and make a quick nickel or wait several months and make a slow dime. In this investor's case, he could be patient and wait several months to realize a much bigger profit. In order to make the deal work, some short term funding was required. Certainly the investor could have tapped into our funding resources but since he had a sizable self directed retirement account, he saw an opportunity to invest in himself by funding his own deal and collecting the interest that otherwise would have gone to one of our funding resources. Since the time frame was several months, the funding type was Hard Money so the investor received an overall return on his money commensurate with what a Hard Money lender would have charged for the same money. The total net profit after all expenses was $36,208 plus the investor collected an additional $9.691 for funding the deal himself.
Deal at a Glance
- Purchase Price: $103,000
- Funding Source: Hard Money
- Repairs Costs: $3,604.24
- Carry Costs: $0
- Sales Price: $149,900
- Length: 4 Months
- Buy-Sell Net Profit: $36,208
- Funding the Deal Himself: $9,691
Below are the actual final closing statements from this deal:
Closing Statement (Buying)
Closing Statement (Selling)
MICHIGAN - $36,143.58 Profit
VICKSBURG, MI - Lester was enthusiastic about being a part of the Freedom Mentor Apprentice Program but concerned over how Phil and his team could help him since he was in a rural part of Michigan. He was concerned that there were no deals around where he lived. Thankfully, Lester's concerns soon disappeared after following advice from our team because he landed a great deal. The homeowner was in foreclosure and was begging to get $1,000 so she could move out rather than get nothing and be kicked out of her house. After carefully analyzing the deal with the help of our team, Lester gave the seller $1,000 and became the owner of the property Subject To the existing $82,288.20 loan that was in foreclosure. He had to negotiate reduced payoffs on some junior liens but once he finished (and the seller moved out), he listed it and immediately got a retail buyer at $138,000. After closing costs and commissions, the total net profit was $36,143.58. And Lester discovered that the diamonds were in his own backyard!
Deal at a Glance
- Purchase Price: $95,000
- Funding Source: Creative Financing
- Repairs Costs: None
- Funding Costs: $1,000 Cash to Seller, Subject To Existing Liens
- Sales Price: $138,000
- Length: 2 Months
- Net Profit: $36,143.58
Below is the actual closing statement from this deal:
Closing Statement
NEW YORK - $24,568.02 Profit
POUGHKEEPSIE, NY The sellers of this property were out-of-state heirs and after 3 years on the market with no buyers, they were fed up with working real estate agents. They executor of the estate reached out to Apprentice David with the intent to sell the property once and for all. Freedom Mentor suggested an initial offer price and much to David's surprise, the sellers agreed to a price far below what he imagined they would accept. He was thrilled! Since it was in such good condition, all he did was add a few smoke detectors and then he marketed for a Buyer immediately. With our guidance, he was able to structure short term creative financing so that he could resell to a retail buyer that was getting a conventional loan. Due to some delays with the new buyer's loan, it ended up taking more time than he hoped to close. From the date of the signing of the contract with the seller until the day of closing with the new buyer, it took about 4 months. David only had a few hundred dollars out of pocket, did basically nothing to the house except add a few smoke detectors and yet the deal made a total net profit of $24,568.02.
Deal at a Glance
- Purchase Price: $60,000
- Funding Source: None. Creative Financing.
- Repairs Costs: $150.52
- Funding Costs: None
- Sales Price: $90,000
- Length: 4 Months
- Net Profit: $24,568.02
Below is the actual closing statement from this deal (with certain information erased for privacy purposes):
Closing Statement
NORTH CAROLINA - $49,029 Profit
CHARLOTTE, NC - Sue had joined our program so that one day she could quit her engineering job and invest in real estate full time. Just two months after getting started with us, her dream came true, but not by her own doing. She was laid off unexpectedly and forced into real estate to make ends meet. Soon thereafter, her first deal closed but it only put a few thousand dollars in her pocket. Discouraged, she reached out to Phil for advice since she knew he had "been there before". She took his advice and within a few weeks, she landed the deal of her life. The seller was getting older and had lived in the property for decades. Her son was handling her affairs and wanted to sell to an investor to make it easy on his mother. The property was located in a very desirable neighborhood where old homes were being torn down and mansions were being built. The sellers were happy to get $110,000. After Sue got it under contract, she immediately contacted those builders that had built those mansions in that neighborhood. Within a day, she had an all cash, quick closing, $160,000 offer from a local builder. The closing was structured in such a way whereby Sue did not use any cash or credit; or funding at all for that matter. This was a true blue assignment and the total net profit was $49,029. It closed just two weeks after receiving the offer. Sue could now breath a sigh of relief because she now had plenty of money in the bank and had the confidence that our program and the business of creative real estate investing was the real deal.
Deal at a Glance
- Purchase Price: $110,000
- Funding Source: None, Assignment
- Repairs Costs: None
- Funding Costs: None
- Sales Price: $160,000
- Length: 3 Weeks
- Net Profit: $49,029
Below are the actual final closing statements from this deal:
Closing Statement (Buying)
Closing Statement (Selling)
PENNSYLVANIA - $43,924.53 Profit
MANHEIM, PA Eldon had always wanted to be an real estate investor. After watching a few of Phil's videos, he knew that with Freedom Mentor at his side, he could achieve his dream. This was his first really good deal to come along and once he had the seller under contract for $35,000, he wanted to close on it and renovate rather than wholesale to another Buyer. It was an ambitious plan since this was his first rehab and it was going to be a big one. But Eldon was excited about the challenge. Rather using Freedom Mentor Funding, Eldon chose to use his own money and collect the interest himself, along with structuring $20,000 in owner financing. And Eldon followed our advice and used excellent contractors (rather than the cheapest priced ones). It took about two months to close with the sellers because they were slow in getting their stuff out of the property. The $41,000 in renovations took about 3 months to complete, which was right on schedule. Finding the Buyer was extremely easy because it was in an affordable price point and was in perfect condition. The new Buyers paid with cash so they only took about 3 weeks to close. Altogether, this deal was a little less than 6 months from start to finish.
Deal at a Glance
- Purchase Price: $35,000
- Funding Source: Apprentice's Funds & Creative Financing
- Repairs Costs: $41,000
- Funding Costs: $5,428.18 (paid to Apprentice
- Sales Price: $130,000
- Length: 45 Days
- Net Profit: $43,924.53
Below is the actual closing statement from this deal (with certain information erased for privacy purposes):
Closing Statement (Buying)
Closing Statement (Selling)
TEXAS - $43,924.53 Profit
SAN JACINTO, TX They say everything is bigger in Texas. The real estate profits certainly can be! Apprentice Daniel connected with this seller who was far behind on back taxes and needed to sell fast or was at risk of losing the property to tax foreclosure. Daniel and the seller agreed to a purchase price of $20,000. The house was in very poor condition so Daniel chose to find another investor to buy it, rather than take on a major rehab project. He spent $1,338 on dumpster fees and junk removal labor costs to "pre-hab" it and make it more appealing to investors. Then he followed our techniques to create a multiple offer situation and the highest cash buyer was willing to pay $76,600. Then, using Freedom Mentor's proprietary disclosures, a pass through double closing was structured so no transactional funding was needed. From the day the contract was signed with the seller until the day of the closing with the new Buyer was 45 days and the total net profit after all expenses was $43,924.53. Everything is bigger in Texas!
Deal at a Glance
- Purchase Price: $20,000
- Funding Source: None. Pass through double closing.
- Repairs Costs: $1,338
- Funding Costs: None
- Sales Price: $76,600
- Length: 45 Days
- Net Profit: $43,924.53
Below is the actual closing statement from this deal (with certain information erased for privacy purposes):
Closing Statement (Buying)
Closing Statement (Selling)
VIRGINIA - $51,436.90 Profit
ALEXANDRIA, VA - This was the first deal our apprentice had gotten under contract and he realized quickly that he had a tiger by the tail. The seller wanted at least $35,000 cash in his pocket after all closing costs and didn't care if someone took over his existing mortgage or not; he just needed cash and fast, so he could move. Using our Freedom Funding, the property was purchased for $240,000 and the existing mortgage of $203,646.74 was taken over subject to, along with a 2nd mortgage loan from our company of $40,000. After the first closing, the apprentice did some very minor cleaning and repairs and immediately put the property back on the market. Offers came flying in because it was a very desirable area and the best offer was $320,000. The buyer moved swiftly and the deal closed exactly 2 months from the day our student closed on it. The total net profit after all expenses was $51,436.90.
Deal at a Glance
- Purchase Price: $240,000
- Funding Source: Freedom Mentor Funding
- Repairs/Misc Costs: $7,104.35
- Funding Costs: $3,117.81
- Sales Price: $320,000
- Length: 2 Months
- Buy-Sell Net Profit: $51,436.90
Below are the actual final closing statements from this deal:
Closing Statement (Buying)
Closing Statement (Selling)
CANADA - $33,428.64 Profit
CALGARY, AB - Wade was like so many other Canadians when he first began learning about the subject of creative real estate investing; he was inspired by its potential to change his financial life but he was also very concerned that, "it didn't work around here." He spoke with agents and other local real estate industry insiders and they would tell him that what Phil and Freedom Mentor taught may work in the States but it was very different in Canada. So, at first, it was just a dream. However, Wade kept watching more YouTube videos and discovered that sometimes Phil would mention Canadian deals in the same breath as U.S. deals. So Wade took a leap of faith, applied to be an Apprentice and after a long interview process, was accepted into the Program.
Once he began taking action, Wade realized that he had a huge opportunity with no competition. He discovered that others mistakenly assumed, "it doesn't work around here," and Wade had all the creative deals to himself! His first deal came from a seller who was behind on payments and had a private second mortgage that was threatening to foreclose. He got it under contract for the total amount the seller owed, listed it on the MLS while under contract, locked in a retail buyer at $366,000 and brought the deal to his closing attorney who structured two separate closings without funding and the net profit was $33,428.64. Wade was shocked to see with his own eyes that some creative deals are actually easier to do in Canada than the United States!
Deal at a Glance
- Contract Price: $322,000
- Funding Source: None
- Sales Price: $366,000
- Closing Costs: $10,571.36 (Commissions, etc)
- Net Profit: $33,428.64
Below is the actual closing statement from this deal (with certain information erased for privacy purposes)
Closing Statement
