Creative real estate with Jacob Weaver
Jacob Weaver from Blink Equity Group is a master of creative real estate investing. Jacob has been a speaker at the Seattle Investors Club, and continually impresses us with his ability to see real estate deals in ways we never imagined.
Julie says – “What’s not going down is the price of real estate in Seattle.”
Jacob is a local real estate investor and real estate broker to maximize his opportunities.
By trade Jacob is an engineer, and continued as an engineer when he got started with real estate. He decided to get his real estate brokers license first, and probably made $15k in his first year ONLY from referral to other brokers.
When you have a few good real estate agents/brokers to refer sellers to, you can make some great commissions.
These brokers can also be a great source of ideas/networking/friends.
Julie highly recommends keeping your day job when you get started in real estate to make sure you have a pay check coming in at the start.
Toolbox tips: Get your real estate license! Even if you’re an investor. It only brings credibility.
Myth: Sellers don’t like real estate agents.
Jacob’s real estate timeline
Fall 2011 working at shipyard
Government employees can get good rates
Wanted to buy a rental property
2012 bought first rental property
* Into the whole thing for $11,000
* Generated some positive cashflow, but not a lot
2013 decided to flip a house or two (side hustle)
* At this time people were getting back into rehabbing after the last real estate dip
End of 2013 started wholesaling, but didn’t make money at wholesaling for 9 months
* It took longer than expected because there was a learning curve
* How to talk to sellers
* How to make offers
* Just learning about real estate
Tip: If you’re new, find the players (aka experienced people) at your local club, and partner with them as soon as you can. See what they need, and fill that need.
Come to Seattle Investors Club to get involved with our speed networking, and make some friends.
JC Disrupt Tip: Dress to the level of the person that you’re meeting on an appointment.
Maybe Jacob’s lane is to wear a suit…
Tip: Be authentic and collaborate!
If you’re working with people that are like you, it doesn’t have to feel hard. And if you’re being authentic with people, you will find other people with the same general mindset.
What is Jacob excited about
As an engineer, you have problems to solve. Jacob’s background is problem solving. He applies this to his business everyday to put together transactions. #nontraditional
Jacob does cash deals, broker deals, and seller problem deals (aka creative real estate). He figures out what people need, and puts together a solution. Which he calls the perfectly tailored solution.
Creative real estate example
Price point $150k – $250k (median)
Problem: Owner was renting it as a room by room rental as a mens transition house. So, prisoners that are making the transition back into the working class.
This place didn’t have a working bathroom.
As it sat, it was probably only worth $135k, but owner owed $145k.
* Could be a short sale, but didn’t seem like the best solution.
* Could rent it out, but not without a bathroom
* Could use a lease option
Winner: Lease option with the right to rehab the property
* Jacob pays the mortgage and utilities, which puts seller in a cashflow neutral state.
* Contract price is $155k, with $500 down
* To secure the property we put a deed of trust behind the bank
* Did a light rehab on the property with private money ($18k)
* Once it was rehabbed, he found a buyer that could get traditional financing.
* He paid all of the closing costs.
* The lean on the property was how he was paid. He never owned the property.
* Problem solved! Win/win/win!
Language for right to rehab was in the lease and contract. Pay an attorney to review your contracts, and do it right.
Tip: Get low risk and high returns! Don’t lose money! Get a very large toolbox that can help you make money.
Julie is a transaction facilitator! 😉
Jacob has wholesaled an owner financed deal, while paying down the owners credit carb bills. The credit card getting paid was what was important to the sellers. #getcreative
Super Tip: You MUST stand by the seller when you are wholesaling. EVEN IF YOU ARE GOING TO MAKE NO MONEY.
One thing people should take away from this show
Work on your mindset. Everyday wake up and think about your life and your current and future state. The foundation is in your mindset!