Christian Osgood breaks down a mentee's real estate deal where they assigned a contract to themselves, collected an assignment fee at closing, and structured a delayed mortgage that doesn't start for six months. That gap lets them renovate and raise rents before any mortgage payments kick in, generating immediate cash and strong early cash flow with zero out-of-pocket capital.
Chapters
One of my mentees just closed on the craziest deal structure I've ever seen. It is a HOMEL hack and a wholesale to themselves. Yes, they got paid to close the deal. They spent forever on this relationship. They put together an amazing opportunity and they charged a little fee to assign from themselves to the end entity with their other partners. They also totally earned that money. It took a long time to structure. Number 2, there's some renovation on this property. To save cash flow the first 6 months while they are renovating and doing some rent bumps, there are absolutely no mortgage payments. They do a down payment, the mortgage doesn't kick in until month 6, which means massive cash flow for the first 6 months. They get to their project and they got a check at closing for lining up that deal in that structure. That is an ultimate creative finance deal. Absolutely love it. $0 out of their pocket. Their investors are happy. They got paid cash flowing right out of the gates.