Lots of big money out there trying to compete. Every owner of multi-family who we have approached with a seller-financing offer, would just find someone willing to buy with bank financing which entices the owner(s) more than continuing to get monthly drips. Seems in most cases the owner (or the owner's kids who inherited the property) doesn't care about the tax implications of a sale, they want lump sum and they want it now regardless of the benefits that are explained to them about seller financing. Many are original / long time owners who are 80-90 yrs old, they don't even understand or even know how to read a seller financing contract. They understand one thing and one thing only.....the price you are giving them and how quickly they can have that money in their hands. And if they passed and it's a handful of kids squabbling over an inheritance, all it takes is 1 who wants lump sum and forces the sale and no one wants monthly drips they want all of the money now.
We actually completely disagree with this. We have found most owners (even in their 70's or 80's are externally sharp and experienced ms which is how they acquired and payed off massive portfolios. We have found more than half have not received a realistic seller financed offer and more than half of them prefer to avoid a lump sum. These findings have been consistent in every corner of the USA.
@@MultifamilystrategyMaybe the discrepancy in the experience that you describe is because of the type of seller that you approach? The typical seller that you approach, how many units or how big their apartment complexes are?
@@vm.x 12-30 doors. mom and pop. these aren't financially sophisticated people, they simply bought a small apartment complex back when it was easy to do, and did the bare minimum to keep things chugging along. their rents are all jokingly below market, and the units are all dated. many times original owners, in their 70's-90's, sometimes we are dealing directly with their kids who inherited the property. No one had a single interest in a complicated seller financing contract. Most reply with "I thought you wanted to buy the property"....these people want to wash their hands of everything. Everything. Having to deal with a seller financing contract and make sure they are receiving their monthly drips, is not washing hands to these people. They want their money, they want to cash out, and they want to move on so they can go buy shore houses or mountain homes etc. They don't even care about the tax implications of the sale.
Great interview by couple of my good friends! Both Christian and Cody are high integrity fantastic investors! Anyone would be lucky to call them friend. I can't wait to see what they do over the next 10 years going to be monumental!
How do we know the home price is well negotiated? I see homes at lower price point. Also how is the guarantee for rent rate long term calculated? Did not see vacancy % accounted in performa
@@jacobyatako I haven't yet. First is to get out there and start meeting owners and getting to know them. I'll be starting that pretty soon. I'm going to start with my local market in Raleigh, NC.
2:25 Not true I listen to Cody and Christian all the time on their own RUclips channel as well as the RUclips channels Dion talk financial freedom, the Lumberjack landlord, and one rental at a time.
Is anyone in Dubai (UAE) willing to teach me how to negotiate like a pro in terms of seller financing? I am desperately willing to start real estate here but I lack execution. Would love to have a mentor in the process!
The kids can blow through through it. Yep they do that and not have to wait. Come on guys. Companies out there pay them off and keep 25%. You know what that’s called.
I went with 5 year balloons and of course in retrospect it wasn't a great idea. However, I bought well and the properties will still perform well, or be sellable at FMV due to GRM being really good.
Meet 50 owners in your market, in two weeks. That's up to 5 koffee klatches per day... that's a LOT of caffeine. Best to separate your appointments a bit, so no one gets jealous that you're cheating on them 😅
Look. These guys are the Bitcoin kids. Just in real estate. You’re all going to kill the market. It’s guys like you. Generation after generation these people come along. Is there a way.. is there a way. Basically leveraging the buyer. The seller. The property. Everything. You all are the new 2007/8.
Wow. Most of they people we are buying from built their portfolio the same way 50 years ago. They now have hundreds of payed off rentals. Banks might kill the market but not seller financing
DON’T be less of a “dork”! Knowing movies and movies and every single phrase does not make you an “American”. Some of us don’t care to memorize movie content - just saying 🤪
You ain't seen nothing yet. I well remember mortgage rates at 18.5% when Carter was in office. The American Dream was DOA, until a Republican fixed the economy. Let's go Brandon.
@@Multifamilystrategy the talk at the front. The background questions. Get to the meat or put out a second video that gets to the meat. They always draw it out. I’m here for information not heart warming.
@@Multifamilystrategy Couple of ideas: 1) You should redefine the formats of the video, e.g. 2-3 minutes as quicky statement regarding one question, 15-20 minutes as compact format and 30-45 minutes for guest with a story plus topic experts 2) You should better structure the interviews and stick to the plan 3) Shorten the introduction of the guest, e.g. by reading out an intro card with the personal background, and the current assets portfolio. Then, start with the real topic. I do not care to which kindergarden Tiffany went 25 years ago. 4) Make a short outline of the video below in the note, e.g. 02:00 intro; 04:00 portfolio 08:00 portfolio 12.00 intro strategy and 15: 00 financing. This would allow to jump directly to relevant parts of the video.
@@clarkozanne758we are always down for a 2 part episode. We'll have to get bigger pockets to sign off on that idea but we can hop right back on a plane and fly down if we want to record again!!!
When you need financing for the purchase of multifamily real estate property, the banks looks at the rental income, Net Operating income, the DCR and the market value. Your personal income doesn’t need to enter the qualification criterias. @gilbertchecoury
Thanks for having us!!!
Thanks for sharing your story!!
You guys are great! Always an awesome time meeting and listening to you guys.
Our pleasure!
@@davidrpriestalways a blast to get to hang with David and Rob live in studio. Thanks for watching!
You guys crushed it once again! 🤘
Sandlot reference was PERFECT! David Greene is the man!
Your killin me Smalls
@@Multifamilystrategy - You bob for apples in the toilet, and you LIKE IT!
Always good to hear from Cody and Christian. Thanks for sharing.
Thank you for watching
Lots of big money out there trying to compete. Every owner of multi-family who we have approached with a seller-financing offer, would just find someone willing to buy with bank financing which entices the owner(s) more than continuing to get monthly drips. Seems in most cases the owner (or the owner's kids who inherited the property) doesn't care about the tax implications of a sale, they want lump sum and they want it now regardless of the benefits that are explained to them about seller financing. Many are original / long time owners who are 80-90 yrs old, they don't even understand or even know how to read a seller financing contract. They understand one thing and one thing only.....the price you are giving them and how quickly they can have that money in their hands. And if they passed and it's a handful of kids squabbling over an inheritance, all it takes is 1 who wants lump sum and forces the sale and no one wants monthly drips they want all of the money now.
We actually completely disagree with this. We have found most owners (even in their 70's or 80's are externally sharp and experienced ms which is how they acquired and payed off massive portfolios. We have found more than half have not received a realistic seller financed offer and more than half of them prefer to avoid a lump sum.
These findings have been consistent in every corner of the USA.
@@MultifamilystrategyMaybe the discrepancy in the experience that you describe is because of the type of seller that you approach? The typical seller that you approach, how many units or how big their apartment complexes are?
@jgg204 the seller that you approach, how big are the deals? Units and price per door or total value? Are they mom and pop or very big deals?
@@vm.x 12-30 doors. mom and pop. these aren't financially sophisticated people, they simply bought a small apartment complex back when it was easy to do, and did the bare minimum to keep things chugging along. their rents are all jokingly below market, and the units are all dated. many times original owners, in their 70's-90's, sometimes we are dealing directly with their kids who inherited the property. No one had a single interest in a complicated seller financing contract. Most reply with "I thought you wanted to buy the property"....these people want to wash their hands of everything. Everything. Having to deal with a seller financing contract and make sure they are receiving their monthly drips, is not washing hands to these people. They want their money, they want to cash out, and they want to move on so they can go buy shore houses or mountain homes etc. They don't even care about the tax implications of the sale.
Going through this exact thing right now with an older seller on a 7 unit apartment in Maine
Fantastic, I like the simplicity part as well as the coffee meeting. Keep it up
Will do!!! Keeping caffeinated!!
These guys know their stuff.
Learned from some of the best
Thank you Dion!!
The way they describe their conversations are so different from what I do. It's weird because it's foreign, but sounds powerful.
Thank you! Lots of ways to play the game
Cody and Christian work so well together. Makes me wish I had an REI BFF!
We are very fortunate that our partnership works as well as it does. Very grateful for our entire team!
@lordhelpthegirl what state are you in?
I need more Rob doing Dave Ramsey impressions in my life.
IKR I thought Dave had walked in and was about to start calling us all morons!
Rob is great on the show. Gets his name out there and brings more entertainment to the show
Absolutely!
Great interview by couple of my good friends! Both Christian and Cody are high integrity fantastic investors! Anyone would be lucky to call them friend. I can't wait to see what they do over the next 10 years going to be monumental!
Thank you Mike!! Much appreciated
How do we know the home price is well negotiated? I see homes at lower price point. Also how is the guarantee for rent rate long term calculated? Did not see vacancy % accounted in performa
What on earth are you talking about?
That’s phenomenal
How can i get advice on this ??
Had to watch this several times, and counting lol
Thanks!!
Cody and Christian always dropping bombs. Great dudes.
Boom!!! 💣
This is amazing interview
David and Rob are fantastic!
Phenomenal episode! 👏
I just finished their course and am about to sign up for the mentorship. I highly recommend their *newly updated* course! 🤘
Thank you 😊
Have you started making any offers yet? Or feel comfortable to make offers?
@@jacobyatako I haven't yet. First is to get out there and start meeting owners and getting to know them. I'll be starting that pretty soon. I'm going to start with my local market in Raleigh, NC.
@@brykit1972Good for you! Keep grinding
@brykit1972 how’s it going so far? I’m considering their course but it’s not cheap!
Just a great episode!!!🤩
🎉🎉🎉
2 from socal would go , just need that date
Good stuff!
Thank you!
Where are you finding "owners"?
What happens if the owner passes away in a Seller Financed situation?
Note passes to their heirs (or whatever their will stipulates) . Unless specifically stipulates the note is not callable upon death
If they can't refi... they can just sell. Most experienced buyers will qualify for agency debt. Right?
Yes but we like to pay it off prior to refi!
And Christian great And Cody great job and David Green and Rhonda Russell
Thank you :)
When he said "buying a house in 2010 was like marrying a woman you don't like" I felt that lol
Harsh analogy
@@Multifamilystrategyharsh but accurate. I had to short sale 2 years later.
2:25
Not true I listen to Cody and Christian all the time on their own RUclips channel as well as the RUclips channels Dion talk financial freedom, the Lumberjack landlord, and one rental at a time.
Thanks for the support!! :)
same
Yo Cody is awesome you can really learn a lot from him
Better days with the nights 🌙
Nice to here someone talking about a strategy to actually pay off the investment and create a Next Level of Wealth where debt becomes obsolete.
Is anyone in Dubai (UAE) willing to teach me how to negotiate like a pro in terms of seller financing? I am desperately willing to start real estate here but I lack execution. Would love to have a mentor in the process!
So far I have had not much luck getting through the listing agent to the owners.
Never go around an agent to the owners. This strategy is only to meet owners. Not to network with of market sellers.
sandlot joke killed me 😂 kicking and screaming in a close second
Sandlot joke was gold
Every time i hear Cody and Christian they are dropping gems 💎 great episode 👏🏿
Thank you!!! I don't usually listen to our own podcast but I really liked this one. David and Rob are amazing at guiding the conversation - christian
Damn, i need s partner. Definitely the hardest part. Finding a solid fit.
Partnering is insanely hard. Make sure you line up your goals and work with someone with similar work ethic!
Ok. Do you need a lawyer to create the financing contract? How do you build equity if it’s technically not yours?
Yes and it is yours. Do you not own a house that has a bank loan? That's all you are creating... a loan against an asset
I actually do not I rent. 😢. I see. I guess because it’s not conventional I was thinking maybe there would be additional hoops to jump through.
I am going to rewatch the the episode 😂it will probably answer my questions lol
Use a regular Purchase and Sale Agreement. Lawyer draws up the mortgage and note.
It feels like they are talking at a level that is beyond my expertise
Totally ok. Take it one day at a time
Invest like C^2
Do it!!
The kids can blow through through it. Yep they do that and not have to wait. Come on guys. Companies out there pay them off and keep 25%. You know what that’s called.
Wat?
Tiny piece? Interests rates are the biggest piece. it's the biggest piece of the entire economy in a debt economy.
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😎
I went with 5 year balloons and of course in retrospect it wasn't a great idea. However, I bought well and the properties will still perform well, or be sellable at FMV due to GRM being really good.
We also do 5 year on occasion but only as meant to secure longer term debt
Meet 50 owners in your market, in two weeks. That's up to 5 koffee klatches per day... that's a LOT of caffeine. Best to separate your appointments a bit, so no one gets jealous that you're cheating on them 😅
These guys have no idea what they’re talking about
Lol, thanks Caleb!!! For those who don't know this guy is 20 with 28 multifamily units all seller financed. Caleb is a titan
And Caleb was also the one who picked us up from the airport for this podcast!!!
iknowrite? Total posers! 😂
Total posers who are crushing it.
Look. These guys are the Bitcoin kids. Just in real estate. You’re all going to kill the market. It’s guys like you. Generation after generation these people come along. Is there a way.. is there a way.
Basically leveraging the buyer. The seller. The property. Everything.
You all are the new 2007/8.
Wow. Most of they people we are buying from built their portfolio the same way 50 years ago. They now have hundreds of payed off rentals.
Banks might kill the market but not seller financing
Also we maintain 55% ltv. Don't leverage everything. We buy and pay off the debt. You don't own it until you OWN IT.
Not going to lie i hated the new intro
I kinda liked it
DON’T be less of a “dork”! Knowing movies and movies and every single phrase does not make you an “American”. Some of us don’t care to memorize movie content - just saying 🤪
You ain't seen nothing yet. I well remember mortgage rates at 18.5% when Carter was in office. The American Dream was DOA, until a Republican fixed the economy. Let's go Brandon.
Lol, avoiding the temptation to be political in the chat.... LETS GO BRANDON!!!!
Hahaha you guys are in Washington, that's funny 😂😅 🤣 I'll team up to help you spread to other states, I'm interested in the South.
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😎😎
Why are the podcast always was so long? 30-45 minutes would be better.
What parts would you cut? This would actually help for future podcasts!
@@Multifamilystrategy the talk at the front. The background questions. Get to the meat or put out a second video that gets to the meat. They always draw it out. I’m here for information not heart warming.
@@Multifamilystrategy Couple of ideas: 1) You should redefine the formats of the video, e.g. 2-3 minutes as quicky statement regarding one question, 15-20 minutes as compact format and 30-45 minutes for guest with a story plus topic experts 2) You should better structure the interviews and stick to the plan 3) Shorten the introduction of the guest, e.g. by reading out an intro card with the personal background, and the current assets portfolio. Then, start with the real topic. I do not care to which kindergarden Tiffany went 25 years ago. 4) Make a short outline of the video below in the note, e.g. 02:00 intro; 04:00 portfolio 08:00 portfolio 12.00 intro strategy and 15: 00 financing. This would allow to jump directly to relevant parts of the video.
@@udokiesslich1352appreciate the structured advice😄
@@clarkozanne758we are always down for a 2 part episode. We'll have to get bigger pockets to sign off on that idea but we can hop right back on a plane and fly down if we want to record again!!!
😂😂😂😂😂
Lol
When you need financing for the purchase of multifamily real estate property, the banks looks at the rental income, Net Operating income, the DCR and the market value. Your personal income doesn’t need to enter the qualification criterias. @gilbertchecoury
While seller financing requires none of these qualifications, you as the buyer should pay very close attention to them. Especially DSCR.
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