I teach people interested in pre-foreclosures to go in and offer cash. Frans Calderon answered a call I put out on social media to find people doing lease options who might want to appear on my show.
When I learned what Frans does in the pre-foreclosure space, I jumped at the opportunity to interview him. His approach is so totally contrary to my thinking that I had to have him explain.
Frans is originally from Colombia, and now lives in Charleston, SC, which he loves. He was a police officer in his home country… a dangerous job. In 2003, he read Rich Dad, Poor Dad and got the message that it was time to make a change.
The message was financial freedom. At one point, the book suggested making a list of assets. Frans made a list of his and realized he had no financial assets, only his belongings like clothes and furniture.
He purchased his first property in 2009. The process was a bit strange, but you’ll hear how the strangeness benefited Frans. He rented the house out for 2 years; then moved into it himself.
He got a HELOC on that house and used the proceeds to buy more. He also continued learning about real estate and started practicing new strategies like subject to, lease options and wholesaling.
Frans spent 10 years working at Boeing in Charleston area while he continued to buy properties to rehab and rent. Two years ago, when his passive income equaled his salary, he quit his job.
He estimates his strategy is 60% flips, some holds and some lease options. Frans has found that networking pays off… so much so that he is now president of a new Charleston REIA.
Frans recently met a seller who was very near foreclosure. She was a single mother and sick; a woman that had hit a real rough patch. Frans wanted to keep her from ruining her credit.
It took $20,000 to reinstate her loan. Frans had a retail buyer who wanted to buy from him, but had a credit issue because he was a self-employed house painter. This is the model tenant buyer for a sandwich lease option.
That buyer met Frans to see the house. He wanted to buy the house before Frans put it on the market. Even though he had no credit, the buyer was able to put $40,000 down on the house.
Since the buyer knows people in construction, the home has been remodeled and looks great. He and his family are very happy there. Frans made a good profit while doing good for the seller and the buyer.
Watch and Learn:
- Frans and Joe agree that the best way to learn real estate strategies is to use them yourself.
- Presidency of the area REIA gives Frans leads and a chance to help others that are getting started.
- Frans is a fan of the sandwich lease option because it’s a win for all involved.
- It took Frans 10 years of being a part-time investor to gain the freedom to quit a good-paying job.
Mentioned in this episode:
- Joe’s podcasts on iTunes: Real Estate Investing Mastery Podcast
- Joe’s lease option book: WLOBook
- Joe’s podcasts on YouTube: Joe McCall
- Joe’s podcasts on Facebook: Joe McCall
- Podcast recommendations: Wholesaling Inc.
- On Internet, Facebook, Meetup: CharlestonREIA.com, CharlestonREIA.com on Facebook, CharlestonREIA.com on Meetup
- Book recommendations: Buy, Rehab, Rent, Refinance, Repeat by David Green / Expert Secrets by Russell Brunson
- Reach Frans Calderon on Facebook: Frans Calderon
- Find Frans on Instagram: FransCalderonBuysHouses
- Frans on YouTube
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