Expected Air Date: 03/26/18
David Kraus has bought over 40 properties for no money down and no credit check. He has accomplished this by using a combination of Land Trust, Wraparound Mortgages, Lease Options and Contract for Deeds.
The favorite tool in his arsenal are land trust and his story on how he started using land trust is one to hear. With an investor, David went out and found a very discounted deal in Joliet, Illinois. It was a two unit in need of cosmetic repairs for only $28,000.
Once the property was closed it only took 10 days to do the entire rehab. An appraiser then went out and it appraised for $75,000. Running an ad in the paper, a nice couple wanted to purchase the property and put in a contract for $71,000.
The bank they were using gathered all the paperwork and the banks appraiser appraised the property for $71,000, the agreed upon asking price. Then the deal started to self destruct. When the lender pulled title and saw the property originally sold less than a month before for only $28,000, they said it was a scam. After presenting the bank with all the paperwork from the rehab, the bank still wouldn’t make the loan. Instead they said they wanted the property to season for a year before they would make a loan.
So while David and the investor were stuck holding the property, David went out and sought ways to avoid this problem in the future. When he came across land trust it seemed like it could be used to solve the problem but unfortantly there was little information available. So he did the next best thing and took the Vice President of Northern Trust to lunch and picked her brain. The result of lunch and a few more phone calls; the land trust flip was created.
Not only could he flip the property but over time David developed ways to eliminate down payments, flip deals without owning them and acquire properties with no money out of his pocket.
He is now expanding his investment business by implementing national marketing for both discounted properties and investors using the same techniques he has used for years.
How to Reach us
Twitter and Instagram @FlippingAmerica
Call our National Comment Line: 404-369-1018, ext 1. Leave your message or your question.
- My upcoming speaking engagements:
- April 5, Chattanooga REIA
- April 7, FlipStarter, Chattanooga
- April 9, Savannah REIA
- April 14, FlipStarter Savannah
- April 21, FlipStarter Atlanta
- Details on the website and at FlipStarterEvent.com
Motivational Thoughts for the day
- “What you lack in talent can be made up with desire, hustle and giving 110% all the time.” – Don Zimmer.
Questions@flippingamericaradio.com Tell us where you’re from!
- Faith from Omaha, NE “Can you explain a mortgage wrap and when I would use it? I’m a new investor and excited to get started.”
- Sandy from McDonough, GA “Would you rather buy one flip where you could make $30,000 or two rentals where you could make $800 per month together?”
Kimberly, West Miffin, PA “We have a rental house that will come vacant at the end of March. We are thinking of selling it. Should we wait to list it in June or go ahead and list it? We are thinking in might sell for more during the peak buying season.”
- Frieda, Ocala, FL, “Thanks for the show about mobile home parks. We live in one and love it. We retired to Florida to enjoy doing things with our friends, not take care of a house and yard. This is perfect for us and for everyone in our community. We are saddened to hear that cities and towns are no longer allowing new mobile home communities. Given the need for affordable housing in our nation right now, you’d think that lawmakers would be open to a wider range of possibilities. Stanley and I were able to sell our home, buy our current place with cash, invest the difference safely and lead comfortable lives doing what we want to do. I hope you’ll share this letter with your listeners and encourage leaders to allow more new mobile home communities across the country.”
- Jason, Harrisburg, PA, “is there one best source for deal flow? If there is, what is it?”