2 Short Sales + 3 Multi-Units = Tons of Cash Flow

Jean Vermillion & Gail Patten are equal partners in VAP, LLC. We started investing in real estate in 2002 by purchasing five single-family homes from one seller all at once with seller financing for the down payment. We went to a bank for a regular loan.

It wasn’t until 2003 that we started doing this MORE creative stuff thanks to short sale experts, Dwan Bent-Twyford and Sharon Restrepo, as well as Wright Thurston who teaches investing in apartments. We would like to share our success stories!

With the help of Dwan Bent-Twyford and Sharon Restrepo:

1st deal: short sale

Seller owed $91,000
We paid the bank $62,000
Appraisal for $83,000

We decided to keep it as a rental, put a tenant in, and now we have positive cash flow of $165/month.

2nd deal: short sale

Seller owed $58,000
We paid the bank $16,500
Sold the same day for $27,500
We made $9,554 after fees!

We also have Wright Thurston’s home study materials, tapes, etc. With his help:

1st deal: multi-unit on a land contract

We bought an 8-unit apartment building for $305,000 with zero funds due at closing. The rents and security deposits credited our down payment. The rest of the down payment is being paid monthly from the rents.

We have a monthly cash flow of $1,250.

2nd deal: multi-unit on a land contract

We did the same thing with the same seller on a 12-unit complex for $363,000.

We have a monthly cash flow of $2,050.

3rd deal: multi-unit

We also have another 4-unit on a lease option with the balance due to the owner in seven years when we refinance. In the meantime, we paid $5,000 to bring him out of arrears.

Our monthly cash flow is approximately $600.

Thank you CRE Online for the Creative Real Estate Conventions that introduced us to these wonderful people, and thank you Sharon, Dwan, and Wright for sharing your knowledge!

By CREOnline Contributor

A content contributor to the original CREOnline.com.