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Personal Guarantee – No Way

TRANSCRIPTION

This is Terry Hale, I want to shoot this quick little segment. I just had a telephone call, was speaking with this financier who said that he wanted a loan money, he had an attractive rates. At the end of the call, once I talked to him about non-recourse financing, everything changed. I said there’s no such thing as non-recourse financing, that you have to personally guarantee they want you to do something called 1003, which means that you personally signed you give, you know, your bank statements, tax returns everything. And I told him, I said, Look, I get non-recourse money all the time. And the fact is, I’m always searching for more money because I’m always placing capital moving on to the next deal. That conversation ended quickly. So I’m shooting this video to give you the upper hand when you’re speaking with Banks And here’s the key guys avoid banks at all costs, you don’t need them. There’s no need for banks, there’s no need to personally guarantee loans. Everything that we do is seller-financed or we buy all cash. If we buy all cash, we raise the capital to buy it, and someone gets an equity position or returns on their money. All right, everything we do is always going to be non-recourse. So keep in mind, when you’re pursuing projects, don’t worry about your personal credit, your TransUnion, Equifax, Experian, that three-digit number, don’t worry about that three-digit number because that’s for your personal life. That’s for personal business that has nothing to do with pursuing commercial real estate. So I hope you dig this segment. If you do, go ahead and click the link below. And better yet, just go to Terryhale.com. And look forward to engaging again with you here real soon. So remember, avoid banks. All right. Let’s get some business going. Take care.

Increase Your Chances of Success by 95%

TRANSCRIPTION

Hey, this is Terry Hale, I wanted to do this little segment
Talking about how to increase your chances 95%.
Imagine if you could increase your chances of success by 95%.
What would that do for you? And how is that possible?
I mean, is it BS or is it real?
Why are some people highly successful
When other people are struggling along?
And some people just sitting on the sidelines,
Never having any success.
Well, I read this study, and it talked all about accountability.
To be held accountable for something
Means that you commit to it,
And then somebody follows through
And makes sure that you are held 100% responsible
For your actions, not just one time.
I’m talking about over and over again through a set of goals.
So I have six steps.
My six steps are from finding, to pre-screening, to evaluating,
To structuring, to negotiating, and then facilitating the deal.
You see, if I fail to go and try to find something,
Then the next reaction is never going to happen.
See, action causes reaction. I hold myself accountable.
When I do my acquisition mode,
I’m 100% held accountable for my actions,
And I make sure that I stay on my goals.
When I coach folks and mentor people, I do the same thing.
I hold them accountable for their actions, as well.
This increases their chances of success 95%,
That’s how deals come to fruition. I mean, you can go it alone.
You can try to go do it yourself. And chances are,
You’re going to be on the sideline like the rest of them.
Sitting there wondering what step did you not do?
What connection did you not make?
And for that reason, I can show you exactly
How to take it to the next level.
I have a systematic approach
That actually takes people from start to finish.
And that’s what my whole challenge is all about.
Taking people from one step to the next, to the next,
Producing results every step of the way.
I can’t work with everybody,
But the folks that I do choose to work with
And those that choose to work with me,
We have a 95% acceleration.
A 95% chance of success more than the rest.
So I highly encourage you to take action.
Maybe this is not for you.
If you’re having a hard time making ends meet,
If you don’t have capital to invest in yourself,
Then please don’t even bother clicking the link.
But if you do, and you really desire to have success,
You really have the relentlessness for success
And you want to be held accountable.
And you know that having a coach, a mentor,
Somebody on your side, and investing in yourself to get that
Is what you need, what you desire for true success
And you want to build wealth with commercial real estate,
Passive monthly income, generational wealth,
And you want real results.
If this is you, then go ahead and click the link
And I look forward to engaging real soon. Take care.
To learn more strategies and techniques,
Visit https://terryhale.com/
Or go ahead and click the link in this video description
And I look forward to engaging with you, real soon.

New Commercial Concept

TRANSCRIPTION

Hey, this is Terry Hale, I just want to take a few minutes
And talk about something that’s happening
Right here, right now in the office.
Just got off the phone with a broker the other day
In regards to a project that’s a mixed use.
It’s got both retail and 27,000 square feet.
And then, it also has 1.8 acres, total land.
Most people would want to avoid land,
Unless you’re wholesaling it. That’s a technique that
One of these guru guys out there is teaching how to
Take small tracts of land and wholesale it.
That’s small money, that’s pennies.
I’m talking about the big money.
I’m talking about real money, generational wealth.
And when we’re talking generational wealth,
It’s not going to be monthly passive income,
Unless you take the land and you do something to it.
But why most people don’t want to play with land
Is because of the permitting process.
Because then, it’s going to take time to go through permitting.
That means you’re going to incur debt service.
That’s not a good thing when you’re incurring debt service
Because you got to borrow way more capital to make sure
That you can pay the seller finance note.
So instead of doing that technique,
What I’ve come up with,
And this is something that I did not create,
This has been happening. It’s done and done again.
But I’m adapting to this concept, thinking out of the box,
Challenging myself with my techniques and strategies,
Instead of just going and buying a tract of land
Like most people do, and then taking it and permitting it
And going through that process. I’m doing something different.
I’m using my strategies and techniques of seller financing.
Time this property up, follow the numbers here,
I’m following this deal along with a 1.5 million purchase,
Okay, I’m putting down a half a million dollars,
Raised from private capital. I also need an additional 350,000.
That 350 is also going to be added to my purchase price
Because I’m going to be using that capital
As part of the expense to get the property to its highest and best
So I can generate money, all right.
So where does that additional 350?
Where’s that going to be allocated to?
What I’m going to be doing is taking that 27,000 square feet
And demoing out the inside. That’s not me doing demo,
I’m not going to pick up a hammer and go out there
And start slugging away. I hire professionals.
Let them do what they do best. I focus on what I do best.
That’s the phone, that’s the computer.
That’s how I do my business in-office.
Okay, I don’t get dirt under the fingernails.
What I do from there is I’m going to take that empty vanilla box
And I’m going to have a company come in
And for $9 and 50 cents per square feet.
So if you follow the math here, hundred thousand for demo 250,000
To put it to its highest and best use. Voila!
Snap the fingers, several months later, I now have converted
This mixed-use commercial 27,000 square foot box into self-storage.
The numbers, at the end of the day, once it’s rented out,
And I add additional exterior mobile boxes
To the outside of the property, it will be trading
And it will be worth closer to $10 million.
That’s how you go ahead and make money.
Turning something from what it is today
To what it truly could be in the future.
So, I hope you dig this segment,
Thinking out of the box using creative strategies.
All this is going to be done with non-conventional methodology,
No personal credit check and I’m using other people’s money.
So, I hope you dig the segment. I enjoyed talking about it.
And stay tuned for more.
If you like what you heard, go ahead and click the link below or
Just visit my website at https://terryhale.com/
Take care, talk soon.
To learn more strategies and techniques,
Visit https://terryhale.com/
Or go ahead and click the link in this video description.
And I look forward to engaging with you real soon.

Deals From Hard Money Lender’s

TRANSCRIPTION

This is Terry Hale. I want to talk to base real quick
And tell you about this call that I just had five minutes ago.
I was driving down the street, got my headset right here.
I was talking with this guy, turns out he’s a hard money lender.
Now I’ve been teaching this stuff for a long time and
I’ve been telling people that you need to speak with
Hard money lenders. Hard money lenders are people
That are super motivated. They get it.
They’re in the business of loaning money.
They’re not in the business of owning real estate,
Just like a bank. No difference, some hard money lender
That’s sitting in some state somewhere and they loan money
To somebody on a commercial real estate deal.
And a high interest maybe points on the front end,
Points on the back end. And then, at the end of the day
The people default they don’t want the property back.
They’re not property managers. They’re not going to sit there
And want to fly out and and sit on the property or
Deal with hiring management and find a manager
In that particular area. A lot of times these projects
Are even out of their wheelhouse, especially with self storage.
It’s out of most people’s wheelhouse. They don’t even get it.
They don’t even understand how you operate and
Run a self storage facility. Okay, now here it is. Here it is.
A couple different places that you can find these
Hard money lenders one is https://scotsmanguide.com/
That’s S-C-O-T-S-M-A-N-G-U-I-D-E dot com
https://scotsmanguide.com/ There’s a little matrix on there.
When you go to that matrix that will give you a state specific,
It’ll give you property specific. It will give you price points specific.
These hard money lenders loan in these particular areas,
Maybe where you’re interested in picking up a storage facility
Or multifamily. You can contact these people
On a simple pitch, “I reposition property.”
I look for property that’s underperforming,
Property that doesn’t qualify for bank financing.
Would you send me what you guys have in receivership
That you’ve got back, that you don’t want to manage,
That you don’t want to own, that you want to sell?
What do you have for sale? And then at that point,
Ask them to carry the paper. They’re in the business of loaning,
Of course, they’re going to do seller financing for you.
And most hard money is all non-recourse,
Which means there’s no personal guarantee.
So a lot of times, you can factor in any additional offset
For deferred maintenance or any additional repair costs,
And they’ll give you money to move forward and get it done.
One of my clients, Kevin, he bought a multi family for 315,000.
They gave him $60,000 cash back at closing, it had to be.
The proceeds had to be spent solely on the project
Or any part thereof. And he put that money
Into marketing collections. He did deferred maintenance,
And that thing’s kicking off over $4,000 a month cash flow.
Where are you at? Are you making 4000 a month?
How about 40,000 a month? You know, sky’s the limit.
You can do this business. It all comes down to the size
Of the deal that you’re going to be doing.
Locating hard money lenders is not a difficult task.
That’s a great tip go to http://scotsmanguide.com/
Look up the matrix. Check it out. Let me know your thoughts.
Go ahead and click the link below.
To learn more or better yet, go to my website
At https://terryhale.com/
And I look forward to having you my next success story.
Take care. Have a fabulous day.

No to Yes with Seller Financing

TRANSCRIPTION

Hey, this is Terry Hale. Hope you’re doing well.
Just wanted to take a quick few minutes here
And tell you about this project where I absolutely just crushed it.
I was on the phone with this broker that put the seller on.
And at first he was a little hesitant to put me on the line
With the seller because he was thinking maybe
There could be some circumvention, where I’m going to go
Around them and get the deal closed
Without paying his commission or something ridiculous like that.
And it took a little bit of convincing on the front end
To get the broker to put the seller on the phone.
But once I actually had control of the conversation,
I was able to explain all about seller financing.
And originally the seller did not want to finance the deal.
He absolutely 100% said, “No, I don’t want to finance.”
I turned that conversation around within five minutes
And here’s how I did it. All right.
So to make sure, you should take some notes on this
Turning around, when they say ‘No’ about seller financing,
How to turn that around to a ‘Yes.’ First thing I did was
That I explained that the property was an actual liability
Not an asset, meaning it’s not income producing
Enough money to qualify for bank financing, no bank financing.
So at that point, there was only actually two ways to buy it.
One was a lowball, all cash offer, quick, close, no contingency,
Everything that the brokers want is all cash sale,
Except they didn’t like my price point.
Because my price point, it was quite considerably less
Than what they were asking. They were starting out asking 1.695
And I told them, “Hey, if I’m going to be a cash player,
I’m going to be on a 10 cap formula.”
That property was producing exactly $93,000.
I was a $930,000 player. Obviously, we were pretty far off
On the price point. So how did I make it all come together
And really make sense so we can make dollars, pun intended.
This is the way I did it. I explained that
Because it does not qualify for bank financing.
The only other way for me to go move forward
And purchase the deal is if the seller carry paper,
And the seller said, “Look, I don’t want to carry paper.
That’s not something I’m interested in.”
And I said, “Look, if I were to come in and even cash you out
At your asking price, you’re going to have to pay
Massive amounts in capital gains tax.”
The guy started nudging on his ear a little bit
And he was interested to hear more.
I explained that the deposit I put down, he will have to pay
Taxes on that but he’s going to also be receiving
Monthly passive income for seven years
Because that was the timeline that I negotiated.
Of course, I came up on my purchase price, I paid that premium.
I locked it down at a 1.395 offer, so he took a $300,000 haircut.
But in order to get that deal done, that’s exactly what it took.
It took for me to come up off of my actual 10 cap,
Normal acquisition methodology to pay a little bit more
For the premium to have him carry the paper for seven years.
But here’s the fact I get appreciation, I get depreciation
Plus, I get cash flow on that deal after I get it operating
At its highest and best use, close to market occupancy.
So if you dig everything that I’m saying
And you understand the true value of these properties,
By the way, that thing is sitting currently today
At 30% economic occupancy, it’s a self storage deal, 360 units.
When that thing comes from 30% of the market occupancy
At 95 to 98%, that property will be worth
A heck of a lot more than 1.695.
And that’s how we make money in this business.
Plus, I have a few other tricks that I do like canceling management,
Automating gate systems and things of that nature,
Which adds an additional $35,000 in income yearly
Without adding additional expense. So if you dig it,
Go ahead and click the link below. Come and check it out.
Check out more. Take advantage of my training
That I have available and my upcoming event
That will be happening shortly too.
All right, or you can go to my website https://terryhale.com/
And I look forward to engaging with you again here real soon.
Take care.
To learn more strategies and techniques,
Visit Terry https://terryhale.com/
Or go ahead and click the link in this video description.
And I look forward to engaging with you real soon.

Deferment Payment

TRANSCRIPTION

Hey, this is Terry Hale, I want to take a quick minute here and
Chat with you about a strategy that’s used to make
A no payment, no interest structure. So now if you were
To just ask the seller straight out,
“Hey, Mr. seller, would you do no payment, no interest?”
Chances are he’s gonna laugh at you and
Maybe hang up on you.
But here’s how we orchestrate the right negotiation
To get no payment, no infrastructure.
What we do is we call it a deferment of payment.
So when we come in with a down payment,
What we’re doing is we’re creating a seller finance note and
Second position, that seller financing will have a timeline on it,
That’s the length of the time they’re willing to carry along
With an interest rate, that interest rate could be
A couple points about prime, maybe you’re sitting at
Four or 5% interest, or it could be high interest
More like hard money at 10% 12%.
Okay, it all comes down to your negotiation technique
On how you can persuade them to do it.
What are you working towards as far as a mutual benefit?
What’s the motivation of the seller, all these things
Truly come into play. But one of the techniques
That I like to use is a deferment of payment.
So I can explain to them clearly. And of course,
If the property that meets the exact criteria that I’m speaking of,
Which is being highly vacant, if the property is highly vacant,
Then you can say to them, “Look, it does not qualify
For bank financing. The only way we can do the deal
Is either an all cash offer”, which they’re not going to want to
Accept your cash offer 90% of the time. They’re going to
Want more money for it. If there’s a broker involved.
They’re incentivized with more money, a higher price point,
Meaning a sales point because they’re working on commission
And they get paid on what the property sells for.
So everybody wants a higher price. It makes sense.
You probably want a lower price but there’s an old saying,
And my mentor told it to me a long time ago.
He said, “Look, I’ll gladly go ahead and pay your price.
If you give me my terms.” If we buy on the ‘as is’ value,
Where is as is in its current state and its current condition.
And we’re buying for say 30 to 50 cents on the dollar,
We’re able to increase the value 50%. We’re going to
Double our money or even triple our money.
So what comes down to the deferment of payment and
How that actually orchestrates is this,
We let them know, ‘Look, we need some time to get in,
We’re willing to put our skin in the game.
We’re willing to put down 10 or 20% or whatever
You negotiate your down payment.
But we cannot also incur negative debt service.
If the property is not break even after we have our debt stack.
We have debt stack. We have senior debt that we’re wrapping.
We have a seller finance note. We, maybe, borrow capital.
We have to pay money. All this is debt stack.
If property is not going to be producing enough money
To take care of its debt. The only way to make the deal work
Is to have the seller continue to service the debt
On the property for a period of time while we turn it around.
We’re not talking about two years of deferment.
We’re talking 6-9-12 months that will give you
The opportunity to get in super …, not create debt service,
Be able to take the property, start to reposition it.
Make it cash flow. And that way you can create
Monthly passive income, financial security,
Create generational wealth and get the deal done.
So guys, obviously I have 20 years experience.
I know this business. I’ve been an active investor for 20 years,
And I’ve been teaching for 15 years. If you dig it.
You like what you’re watching. You like what you’re hearing.
Go ahead and click the link and learn more or better yet,
Just go to https://terryhale.com/ and check it out.
All right, I look forward to engaging with you guys real soon
And have a fabulous day. Take care.
Learn more strategies and techniques, visit https://terryhale.com/
Or go ahead and click the link in this video description.
And I look forward to engaging with you real soon.

The Coolest Strategy Ever

TRANSCRIPTION

Hey, this is Terry Hale. I want to talk here about a really cool strategy
On a deal that we just completed. This deal was a apartment building
That had some serious vacancy, and the apartment building needed
To be completely repositioned with some light rehab.
We used a technique. It’s a lease option technique. It’s a super slick way
To move forward on these projects. Very, very low risk at all whatsoever.
The difference between doing a lease option and regular seller finance deal
Is in a seller finance deal, you need to put down a deposit.
And that deposit could range anywhere from, I would say,
Typically 10% to 20% of the purchase price. Well, if you’re dealing
With a million dollar project, you’re talking the difference
Between 50,000 $100,000 down for down payment, right?
The way that this strategy works is a lease option
With the right to sublease the vacancies. So what we do is
We get in there with just a simple deposit. Now the difference between
A deposit and a down payment is the secret sauce.
Keep it to yourself, the deposit can be as low as 10,000, or even 5000.
It’s a fraction of what a actual downpayment is.
So with that deposit amount, what we can do is
We can actually get in on these deals with very little out of pocket,
Allocate the capital for repositioning for rehab, or management,
Marketing, tightening up any collections. And obviously, if there’s vacancy,
Then, we would want to continue with our marketing efforts to sell it.
Because that’s where the cash flow is. So with that said, we could get in
On these projects, they’re all non-recourse.
And non-recourse means that you’re not personally signing.
That’s another little secret that I want to teach you about here
Is most folks think that in commercial real estate, you have to get in
On these recourse loans, you have to have perfect credit.
That’s not the case at all. I’ve only personally guaranteed one project
In my entire career. It was very early, very early on in my career.
And I decided never ever would I go ahead and personally guarantee again,
When you personally guarantee a lot of times,
What you’re doing is you’re putting up your your personal credit,
Sometimes even doing something called cross-collateralization,
Where you’re putting up other assets. And it just – you can’t feel good about it,
You don’t sleep good at night, knowing that you’re on the hook
For some million dollar plus project. Let somebody else,
Hold that bag of risk. Why should it be on your shoulders,
That’s not the way you create and build wealth.
We create and build wealth by holding on to our assets,
Not losing them to one risky project.
So, the master lease option technique that I’m discussing with you
Gives us the right to become a master tenant with the right to sell
These – any vacancies. And this gives us the ability to get in,
As I said, really be able to reposition these properties very, very quickly,
And be able to capitalize on the upcoming income.
Alright, meaning the upcoming future value of the deal.
It’s a great technique, this one is going to increase its value
Exactly how to take things to the next level and speak with you real soon.
All right, thanks for listening. Take care. Bye.
To learn more strategies and techniques, visit https://terryhale.com/
Or go ahead and click the link in this video description.
And I look forward to engaging with you real soon.
By more than double more than double the value.
And we got in for 15,000 and we had to allocate 250,000
On a single asset fund for the project.
But it’s in a great location here in California, and wonderful opportunity
For anyone to jump in and get done. And I want to teach you more
About these techniques and strategies. I do have an upcoming event,
You can go ahead and click the link below.
And join me at the next upcoming event where I’ll be speaking about
This strategy plus, a lot of other things that’s going to help you
Move forward to build wealth.
Okay, in commercial real estate, go ahead and click that link.
Join me the date of the event is December 1st, 2nd and 3rd.
And it’s going to be here in Los Angeles not too far away
From where that one project is. So get registered and
I look forward to teaching and training and showing you

Subordination Clause

TRANSCRIPTION

Hey, this is Terry Hale touching base here with you real quick.
I’m here renovating this 45-unit apartment, I wanted to talk about strategy
That was used for this deal. It’s called a subordination clause. Now what is
Subordination clause is when the seller has a seller finance note,
And they drop it to a junior-lien position. Now in this case they own
This property free and clear. So it’s very easy for them to strike one note, right?
That’s the seller finance note. And it drops off the subordination clause
In the second position. This allows us now to negotiate to take out a new first,
Then the new first obviously is kept. We kept that new first at 390,000.
That’ll take care of the renovation for this project.
And it’s very easy to get money in first position. Once we go ahead and finish up
And get the drywall here back up on the walls in.
Place looks great and it’s all rented up and it’s pulling positive cash flow.
We’ll be able to go after a non-recourse meaning, no personal guarantee,
Non-recourse structure on a SBA loan, and be able to get real attractive rates.
And it’s all on the merit of the project because the project at now
Went from rough to finish with people paying money. And that’s the power
Of moving forward on these kind of distressed projects. We purchased this one
With only 5% down and the purchase price on was 2.350
And it got a real attractive interest rate at 4% interest for the seller finance note
That’ll carry us through before we stabilize and refinance.
But the subordination clause is awesome. It gives you an opportunity
To go after money that will be locked in on first position
And motivated seller to get the deal done. They got their asking price and
They picked this thing up at an auction for basically pennies on the dollar.
They’re making money, we’re making money and
When we eventually have it for cash flow or sell it. Regardless, there is
An opportunity to build exponential wealth, I can show you exactly how to do it as well.
So if you liked this segment, go ahead and click the link in the description or better yet,
Let’s go to my website, https://terryhale.com/
That’s T-E-R-Y H-A-L-E https://terryhale.com/
And I look forward to engaging again with you real soon. Take care.
To learn more strategies and techniques,
Visit https://terryhale.com/ or go ahead and
Click the link in this video description
And I look forward to engaging with you real soon.

Raising Capital

TRANSCRIPTION

Hey, this is Terry Hale commercial real estate wealth builder.
I want to talk with you here about a topic that came up a couple times
Over this last week with a few clients of mine. And it’s about basically bringing in
Capital on a deal. And they have this kind of misconception in their mind that
It’s going to be difficult to raise money, but you got like this apartment buildingBehind me, you got something that’s got cash flow coming in,
And it’s got more potential even bringing more cash flow. Raising rents,
Adding profit centers, doing some light rehab, cosmetic fix. You can, just as raising rents,
And doing it with a house, it’s the same thing except, apartment buildings,
They’re basically a bunch of houses inside a larger box, more income.
But these properties are based on a different value add,
They’re based on upping the net income. And if you do a rental increase,
You’re not adding any expense by just increasing rent. So what happens is
The NOI goes up just a little bit, but the value of the property goes up a lot.
I mean, you can raise rents, and if you bump just several thousands of dollars,
You know, you’re talking about adding tens of thousands in value. So it’s a real,
Great business to be in and raising capital is not as difficult as it seems.
There’s different types of money. One type of money that
You can go after is private funds. Obviously, they have to be accredited investors,
Accredited investors, you can look that up and see that they have to meet a 3 rule.
And accredited investors, these are people that will go ahead and fund your projects.
Just be careful though, because you want to give up too much equity.
You can give up an equity piece, or you can just give a return on their investment.
And then obviously, that comes with a balloon date when you give them
Their money back, plus all of the earnings. Another way to do it is a syndication.
That’s a different model its for bigger projects. There’s also PPMs,
Which their Private Placement Memorandums. There’s a lot of different ways
That you can raise capital, but make sure that you have the right deal.Make sure that the numbers work. Make sure that there’s upside potential in the project.
Make sure that it’s actually a project that someone would want to invest in.
Stop chasing the deals. Stop trying to make these deals that don’t make sense
Come to fruition because it’s basically be like hitting your head
Against this garage door here. Right? What you want to do is
You want to make sure that the numbers work. You want to make sure that
There’s tremendous upside, you still want to get great terms
And you also want to buy it right. And if you can do that dynamic,
And do those three things, as I just mentioned, buy it right, have creative terms
And have huge upside. I’m telling you, it attracts money like a magnet.
All right, if you did this session, go ahead and click the link below.
And or better yet, just go to https://terryhale.com/
And I look forward to engaging with you here real soon. All right, take care.
To learn more strategies and techniques, visit https://terryhale.com/ or
Go ahead and click the link in this video description.
And I look forward to engaging with you real soon.

Option vs Seller Financing

TRANSCRIPTION

Hey, this is Terry Hale, I just want to take a few minutes and chat with you
About a project, a client of mine, we’re pursuing this – this project is really great.
It’s a 54-unit apartment. And it’s got tremendous upside couple million dollars
And upside on this one. It’s in a key area. And what’s wild is my strategies and techniques
Actually, they work in this scenario but not as we planned.
We originally were going to go in for seller financing, and the guy just didn’t want
To do a seller carry. So what we ended up pursuing was an option.
Now that option, the way it worked is we have a management operating agreement,
And then we executed an option to purchase the property. So we set a price today,
And the price that we set was $2,250,000. You might think to yourself, well,
“Terry, I don’t have $2,250,000 to do this deal.” So, don’t worry about it.
The way the strategy came about, we put down $50,000. The 50,000 down
Is non-refundable, but it gave us that that lock-in. So we control the property.
We have exactly 60 months, five years to pursue the property and close on it
With a formal closing. And we also have that option agreement assignable.
So, we technically don’t have to close on it with our personal names or anything like that,
We can sell the option. There’s a couple million bucks in the table will be worth like
Four and a half and change. When it’s all said and done because the area is so hot.
And we got in, like I said for 50,000. That’s the difference between a deposit
And a down payment. If it would have been a seller finance note, they probably
Would have wanted like anywhere from 10% to 20% down. But we ended up
Getting in really light because it’s not considered a down payment,
It’s a non-refundable deposit. Alright. So for this segment,
Non-refundable deposit option agreement. Management agreement to let us control
And have operations of the property with a $2 million upside.
Congratulations, Leslie. Whoo! I know she’s happy. All right. So if you like this,
Go ahead and click the segment or better yet, just go over to https://terryhale.com/.
That’s T-E-R-R-YH-A-L-E https://terryhale.com/
And I look forward to engaging with you guys here real soon. Take care.