The DealMachine Real Estate Investing Podcast

586: How To Become the Bank On Cheap Houses

Episode Summary

Philip Louden explains starter wraps, the beginner way to buy cheap livable houses and resell them on seller financing.

Episode Notes

Philip Louden calls it becoming the bank: you buy a cheap livable house in a small market, then resell it on seller financing to a family that wants to own instead of rent. He explains why this arbitrage works, how he finds and structures these deals, and where the financing comes from when you do not have cash. If you have been chasing assignment fees and want something that pays you every month, this is the model to study.

 

KEY TALKING POINTS:

0:00 - What Are Starter Wraps

1:46 - How Starter Wraps Work

3:37 - The Power of Financial Arbitrage

5:46 - A Deal In Marion, Indiana

8:26 - Financing These Deals

11:33 - The BRRRR Jacket Strategy

13:28 - Best Markets & Serving Buyers

14:33 - Final Goal & Wrap-Up

15:13 - Outro

 

LINKS:

Instagram: Philip Louden

https://www.instagram.com/phil_louden

 

Website: Seller Finance Freedom Academy

https://www.skool.com/sellerfinancefree/about

 

Instagram: David Lecko

https://www.instagram.com/dlecko

 

Website: DealMachine

https://www.dealmachine.com/pod

 

Instagram: Ryan Haywood

https://www.instagram.com/heritage_home_investments

 

Website: Heritage Home Investments

https://www.heritagehomeinvestments.com/