Chris Prefontaine's team bought a Fort Myers condo for $265,000 with seller financing at 0% interest, then resold it for $299,000 at $1,500 monthly with a $105,000down payment. The $1,325 monthly HOA fee cuts cash flow to roughly $100 per unit, but they see the model working across post-hurricane rehab properties.
Chapters
All right, welcome back to the Fun Room. All right, April ITTB. We make this live call with this seller. I believe the guy originally said he wanted all cash too, and he wanted to move to what did he say France or Paris or something? We'll have to ask Jeff again tomorrow.
Okay.
He was another one of those like I just want all cash. He's like I just want to like move away. This property was affected. I believe it's the condo, right? That like they had to rehab the entire thing. The entire condo. Association was being completely rehabbed from the hurricane that hit. So there's— I think there's like 10 or 15 of these all sitting in that market. So we came up with something. We originally— I was looking at Nick's notes too. We originally agreed on $305,000. It looks like Jeff went and renegotiated this deal to $265,000. Got that down. $300 payment every month at 0% interest, seller financing for 84 months. Pretty solid little deal. If I remember, we were going back and forth because I think I had to do a secondary call after it with Jeff, and Jeff was so worried about like the monthly payment. So I was like, you got nothing to lose. Offer him what you think you can make money off of, like make like $300. We got on the call, the guy's like, yeah, that should be fine.
And since he closed that, the guy has Volunteered to send a newsletter out to the HOA to recommend Jeff. And Jeff's gotten some leads in the same development.
The challenge with this is there is a hot— there's an HOA payment. It's a $1,325 HOA payment that Jeff was out $1,325 a month HOA payment.
Remember, everybody has to pay it though. It's not the new—
That Jeff was all worried about. Well, here's the thing with that. We couldn't, we couldn't be advertising for $350,000 and then add that HOA on to the buyers, meaning that there'd be no way it would sell. So that's why we got an estimated amount for the taxes and we're at $1,500 a month.
Yep.
Adding in, adding that in. And Jeff was all concerned about it. He was like in a tizzy about it that, well, I don't want to do this because the buyer is going to have to pay that HOA. And what am I going to tell them about that? I told Jeff that, that, that's not coming out until the screening. That comes out in the screening with my credit team and screen the tenant.
Any buyers that pay that down, it's just part of the cost.
So, so he's going to find out. And the funny thing is because of this buyer's strength and his down payment, when push comes to shove, when he goes to get his own loan, he's only going to be getting a loan on less than $200,000. So It actually is gonna equal out, be close to what he was paying.
Awesome.
So just before we finish up, so then he asked me to tell you what Derek is on Zoom.
Oh, hey Derek.
Hey, hey.
So that happened on April, right? And now we're at the November ITT Bay with a buyer that we're selling at $299,000, $1,500 a month in 36 months, I believe. So, well, it's located in Florida, Fort Myers. Yep. And the estimated potentially $105,000 nonrefundable deposit. Of course, we're taking a majority of our money upfront. So we'll talk about the payday 3 and all that tomorrow and how that would work out. But that's some potential cash flow, $105,000 down. All on a $265,000 purchase price. Just wanted to show you guys where this comes from. So full circle, right? April to November.
Cool.
Yeah.
When you looked at the sheet, I just walked out for 2 seconds. Did you say all 3 paydays or what?
No, I haven't said all 3 paydays. I said we can wait till tomorrow. Okay.
My point was, however many months that is, you guys, Some of you can do the exact same thing and some of you will do a lot quicker by cranking out some deals here today. And then you'll see the—
What's the— and then we're going to add this back in. What's the cash flow, Nick, potentially on that? I just didn't have the numbers. That's why.
All said and done.
And the cash flow is— all right.
So you got $305 plus—
it's only like $100, $125, a little over $125.
$125 he didn't have per month. Because remember, there's no additional expenses on any of this stuff, right? Because you're working with a buyer that is acting like a street legal homeowner. Do this one 25 times.
I feel pretty confident about this guy because he's a— like, he's a contractor and he does maintenance and everything like that, which is a lot of the buyers that you're going to attract with your advertising.
Because they're not showing all their income.
Yep. All right. Because I know you want me to do it a specific way. So tell us tomorrow. Okay. Do we know about the 883 yet, son?
Not sure where to get started? Go to smartrealestatecoach.com/getgoing for free books, strategy calls, and a whole bunch more. We're going to help you get going the wicked smart way. We've been after this for over a decade doing exactly that.
Not a bad little deal. The majority upfront. So all of our money's coming from that. It's like a $60,000 deal.
So there is a, there is a, there's a great—
Only on 24 months. So let's— this is what I mean.
There's a great potential here to, like, at the end of 24 months, if he does in fact get his down payment in, to kind of get a better deal.
Yeah. Because If it goes the full term, it's $30,000 in principal paydown. If it goes the full term, it's $10,000 in cash flow.
