Mark Evans walks through a five-acre Florida lot deal: $5,000 purchase price, listed at $20,000 with $500 down and $250/month terms. He breaks down active investing (buy, finance, sell the note) versus passive investing (buy someone else's note for $15,000 and collect double-digit returns).
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Foreign. Are you an active or passive investor? Hey, this is Mark Evans Dam. And thank you very much for coming to this video. I'm going to share with you a private call I did recently with a guy about seven minutes long, sharing with you how to create income in real estate and. Or how to buy income in real estate. My next question to you is, do you even know the difference on what I just shared with you? Because it's a massive difference. So in the seven minute call after we get done, I'm going to break it down for you, showing you both pieces on how to create income and how to buy income. So with that said, let's get started. Hey, Branson, what's up, buddy?
Nothing much. How are you?
Good, man. Hey. Just touching base with you. I got like five minutes or so. You got a couple minutes?
Yeah. All I was. What I wanted to know the best way to do it because how you were talking about potentially selling it to one of your people so we could cash out and they could earn a return on their money.
Yep.
Would it be, I guess I'm asking like the best way could be almost like already sell it to someone and get that person paying. Get them paying payments for a little while, I guess, and then work and then sell it off.
Yeah, possibly. Tell me what the. So what the situation is. We have a lot and the guy wants to buy for 20,000. Right. And he wants to put how much down?
$500 down and wants to pay 250 bucks a month.
So how did you come up to the 250amonth?
It's just an imaginary number. I mean it's just half of the down payment kind of thing.
Okay, cool. So we have that, but we have. So he has 14,500 left. Right. 10% interest over what, 10 years?
You said 10 and a half years. Yeah, it's like $10,000. Just about 11,000.
It's. It's. What do you mean 11,000. I'm sorry?
I'm saying if we sold the piece of property at $20,000 with $500 down, 250amonth at 10% over 10 and a half years, it's like it completely equivalent out to like 31,000 something.
Yeah. 250. So you're talking $250 a month times how many. So it's like 10 years times 12. 120 payments and then another what, 126 payments.
Yeah.
Comes out to 31 five.
Okay. Yeah.
So they give us. Okay, cool. So the guy is paying total cost of Mortgage? Yeah, it's going to be a little bit different. 10% interest. Actually, it's a little higher. I think it's like 250 is going to be like 12%.
I said 10 and a half years. That's what I.
10 and a half years.
Yeah.
Yeah. I just don't have anything. It's that low. That's my problem. Let me see here. Give me a second. I'm just on a bank, just on a site real quick. So $14,500, you know, 10.5 years, 126 payments at 10%. Right. Calculate. It's calculating. Yeah. It actually comes up to $187 a month. Oh, you. I'm so sorry. You're right, my man.
No, you're fine.
That's why they pay you the big bucks. All right, let me recalculate this. Yep, you're right, buddy. Two. $250 and 56 cents. Yeah. That's awesome. Smart man. Okay, cool. How. How serious is this buyer?
I have, like, probably like 15 buyers, but I'm meeting. I already set up a few point. She's like, probably about 30 minutes from my house. So I set up, like a bunch of meetings on Wednesday to meet people over there, and I'm gonna meet him over there with a contract and say, hey, yeah, would you like to do this today? Then here's 500 bucks down. The thing is, too. What I'm gonna. What. How we do this, too, is it's like a lease option kind of deal. So they pay 13 months worth of payments to make sure they're legit, because we couldn't. We wouldn't be able to foreclose on someone with just 500 if they didn't make the next month's payment or any payment after that. So they had to pay 13 months worth of payments. And then we'll put the property in their name.
Why. Why ever. Why put them. Ever put it in their name until they pay off?
Yeah, we don't have to. That's just.
Yeah. Like what you just said. I've been doing this 20 years, and you just confused me, so. Okay, if you're confusing me, you're going to confuse them. Right. Keep it simple. Just say, hey, you don't get the. You don't get your deed at your house until you pay the thing off, you know?
Yeah. You don't get your title, so you pay off. Yeah. That's fair.
Absolutely. So why would we give these guys their deed until they pay off? Okay.
Yeah, for sure.
And just so I'm on the same page here. So we're going to do 20,000. Here's what I would do. You want me to tell you what I would do?
Yeah.
All right. So you have a lot of interest in the property, right? Why don't we say give us the highest and biggest amount you can put down?
Okay. Yeah.
So someone might say, I can do. Max I can do is 500 down, 1500 down. You know, 750 down. Like, you're getting all kinds of numbers. Why not go with the person that can put the most down and then make sure they're capable of making the 250 month payment?
Okay. Yeah.
Does that make sense?
Yeah, that's. I kind of thought that over, like, because the guy I had, the other guy that had called or whatever, Dad, I didn't talk to him. I was at a town this weekend, but dad said he'd kind of talk to him, and the guy said, well, would there be any penalty if I paid off early or anything? What? That said that. He was kind of. Look, that said it. He said that he was kind of, like, waiting on some money to come in, but he wanted to go ahead and, like, get into it. And it sounded also like he had more than 500 down.
I love it, don't you?
Yeah, of course.
So he might be your guy.
Yeah. And I guess I didn't. I just wanted to, like. I wanted to talk to him and stuff like that, but I also didn't want to jump the gun or anything. I just kind of.
I don't know.
I was just kind of looking forward to talking to you, I think.
Mm. No, I mean, listen, I'm ready to do the deal. So what I would personally, what I'd like to see, I have people that will buy that. And again, it's called selling turnkey. Right. Like, we've already found the buyer at 20,000. I have a servicing company, too, that services the note so that the company will collect the payments and do all that stuff for $18 a month. So makes it easy. The home. The person that buys the note doesn't have to deal with anything, you know?
Yeah. That's what I was kind of wondering from you, because I know that's what you. That's your product that you sell.
Yep.
So, yeah, I didn't just. I didn't know if it was gonna be more complicated going through that without you selling it or.
Here's what I would do. Just say, you know, so, like, when you're selling, put the company name and. Or Signs as you as the seller. And then when we sell it, we'll just assign that note over to the new buyer.
Okay. Yeah, Perfect.
Makes sense.
Yeah.
What's the timeline to get this guy in motion on this deal?
Wednesday.
So, so this.
I'm gonna get my contract Wednesday?
Well, I would. Dude, why close the deal on Wednesday? Don't give the contract. Why not? Why not just close it up on Wednesday?
Yeah, that's what I'm.
Yeah.
Yeah.
Okay. So you're gonna go out there, his ex, you know, I'd say, hey, I need you to get a contract. Or, you know our goal when we show up. Down payment contract. I mean, you're looking at a piece of land. That's all it is. So it's not like a house is gonna not pass inspection and everything. Correct?
Yeah, correct.
Okay. You got everything you need to make this happen?
Yes.
All right, cool. So I'm good with that. So get that sucker sold. Soon as it does, text me. And I have, like I said, I have someone that's on the other side ready to buy it and then we're ready to go.
Okay, gotcha. Because. Yeah, that's what we had discussed before.
Yeah, it's a no brainer.
Sounds good.
All right, buddy, I'm around. Let me know. Appreciate it.
Hope you're doing well.
Thank you. Hey, guys, so what I want to show with you, I just got off the phone with this kid named Branson. He's actually in Florida. I invested in a deal with him. We actually bought a deal for $5,000. It's actually a lot. It's a five acre plot in northern Florida. So we bought it for $5,000. We have it on the market for 20k owner financing. An investor would buy this lot. And what the deal structure looks like is we got someone right now, 500 down and 250amonth. Right now again, if you're sitting there, you're like, oh, that's not that much money. I need to make thousands of dollars. Well, you don't understand how money works. The money's in the money. So there's two ways how I look at this deal. One, if I invested five grand and I got 500 bucks back, now I'm only in it for 4500 and I'm getting 250amonth for the next ten and a half years. Right. Makes sense. And or so 5020K owner finance. 500 down, 250amonth. I would only be in it for 4500 and I'd make A decent return on my money. The good news is that this $250, it's a 10% interest rate, which is a decent amazing interest rate. Double digit returns on my money based off of $20,000. So what I want to show with you, what I've done is I've created two opportunities. One, like I said, I bought for 5k, sold for 20k owner financing and what I did is I bought for 5k and then I take this owner financing deal and sell my Note position for $15,000, right? So this is how we were able to make $10,000 literally with little, I would say no risk because I understand we can make money just owner financing and holding it and, or turning 5k and selling it for $10,000 and profiting $10,000. So we'll profit this. What's good about this and what's cool about this and what makes us feel great about it. One, the lot's worth more than $20,000 so the buyer's getting a good deal. And two, the guy that buys it, guy or guy that buys it for $15,000, which you have some people in mind, they're going to get 10.5% on their money doing nothing, absolutely anything. There's no toilets, there's no tenants, there's no problems like no shirts, no shoes, no problems kind of thing. So they're going to get a roi, projected roi. If this person stops paying, they're going to be able to take the property back and redo it again. Not to say it's going to happen. I actually think this buyer, based off the conversation I had with Branson, has some money he's coming up with here shortly on a business deal or transaction deal of some sort of where he'll be able to pay this guy off much quicker. So how cool is it? Like think about this. How cool if it is if you bought it for $15,000 based off of 500 bucks down and 250amonth, how cool if this guy calls you up that paid, you know, paid 20 grand on owner finance called and said, hey, I have my $20,000 now. So this investor could potentially, if this guy buys it off in one year, right, make 20, what is that, 30% on his money in one year, right? So you have 15k and you get paid back 20k within 12 months. I believe my math, right, that's a plus 5,000 off of 15. That's a 30% return, give or take. So again, that, that's an amazing roi. Doing no work. I found the buyer I found the deal, I found the investor buyer. We put it all together. It's called turnkey. It's called packaging a deal for an opportunity. There's many people out there cut their left leg off for 30% returns. There's many, many, many, many people that cut their left leg off as well for 10 and a half percent returns. So I'm an active investor. Active, right. Because I bought it, I found this guy and I found this guy. So I had to do three things. And there's a passive investor, which ideally could be you. If you have money in an IRA, 401k or cash, where you're sitting there, you have, let's say this guy has $15,000 trying to figure out how to grow it. Stock market definitely ain't going to grow for you. So he could take this and make 10.5 to 30% or more per year on his money. And he does one thing, cash the checks. That's it. So if you're looking for passive investments, you have at least $15,000. You should probably hit us up. Yes, we made money on this deal and yes, you will too. Hope this helps. Go make it happen. Talk to you soon. Bye bye.
Sam.
