Today’s guest is Shaneka Shipman and we’re talking about a hybrid deal involving a lease option and a subject-to that she did very early in her investing career.
The show is brought to you by my book, Wholesaling Lease Options. It’s a great book that takes only a few hours to read and contains lots of helpful info.
Shaneka is a full-time mother and wife, and a full-time investor living in North Carolina. In reality, she only has 3 hours a day to give her business. Her husband also works full-time but hopes to quit soon.
This deal came from Shaneka’s first round of bandit signs. She got the deal by 1) answering the phone, 2) meeting seller on time and 3) following up with seller the day after she met him.
She sent the deal to her escrow attorney and found out the property had liens on it. At this point, Shaneka is just getting started and learning new strategies. She’s a little thrown by the situation.
There were 3 liens, 2 of which were for credit card debt and one for the mortgage. The liens totaled $67,000. The home’s ARV was $89,000 and she bought it for $28,000.
In fact, the mortgage had been paid, so that lien was cleared up with the bank’s cooperation. Shaneka bought the house subject to the remaining liens ($17,000) being cleared and began marketing it.
The contract was written so that the amount of the lien after the lease option period ended would be deducted from the $28,000 purchase price. The seller had 3 years to pay down the debt.
She marketed the house on Facebook Marketplace. It was listed simply as a house for sale. The tenant buyers didn’t care how they bought the house; they just wanted the house.
Shaneka sold the house as-is. The tenant buyers agreed to clean up the house, which was full of the seller’s belongings. Shaneka gave the tenant buyers a deal because of that.
This deal was a win-win-win. The tenant buyer, the seller, and Shaneka all got what they needed and they all got good deals. The seller walked away with no work involved, which is not easy to arrange.
Shaneka found her ‘creative deal’ attorney at the local REIA. The ‘straight wholesale’ attorney she found in a Facebook wholesale group. Both of these are great resources.
Listen and Learn:
- Numerous ways to find real estate attorneys… Facebook groups, local REIA or Bigger Pockets.
- Shaneka found a way to create a win for herself, for the tenant buyers and the seller.
- Joe and Shaneka answer LOTS of questions from viewers; Joe says “I’ve never gotten so many.”
- Shaneka’s deal inspires… the tactics were a little ‘above her paygrade’ at the time, but she persisted.
Mentioned in this episode:
- Joe’s podcasts on iTunes: RealEstateInvestingMasteryPodcast
- Joe’s Lease Options book: WLObook
- Shaneka’s CRM: REIBlackbook.com
- App for tracking driving for dollar leads: DealMachine.com
- Antoine Campbell on training VAs: How to Utilize Virtual Assistants
- App for tracking driving for dollar leads: DriveBuyREI.io
- Public info on properties: PropStreamJoe.com
- Joe’s CRM: REI Simple (Send email to firstname.lastname@example.org to get it.)
- ‘Blind’ phone numbers for marketing: Vumber or CallRail
- For monthly rent payments: MoonClerk.com
- Shaneka’s Facebook page: SisterShaneka
- Shaneka’s Facebook group: Real Estate Investing A-Z
- Online real estate hub: BiggerPockets
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