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My guest grew up in St. Louis on The Hill, the Italian neighborhood of the city. He now lives in the Dallas area and does some really creative deals. He started doing this in 2011 when the market was emerging from the big recession.\\n Nick\\u2019s company buys, fixes and sells. No big deal, right? However, sales are not retail. They finance the home for the seller. They underwrite the buyers, which translates to them becoming the bank.\\n There\\u2019s a big need for that because there are more self-employed workers now that have a hard time getting bank financing. Nick estimates that 50% of home buyers need seller financing at this time.\\n That means that there\\u2019s a glut of houses listed by retail realtors because 50% of the market\\u2019s not even looking at those homes. Why look when you know you can\\u2019t get traditional financing?\\n Nick rehabs houses to move-in-ready condition while keeping the homes affordable. A $100,000 house is his sweet spot with a cost basis of 75%. He asks for a down payment of 10% and 9.9% interest.\\n That interest rate sounds high, but it\\u2019s allowable. At the $100,000 price point, the monthly payment is approximately the same as the owner would pay for rent.\\n But homeownership gives the buyer tax benefits, the ability to sell the asset and pride of ownership. Nick holds the buyer\\u2019s note for a while and then sells them to investors. His personal note on this transaction is at 7 or 8% on $75,000, so there\\u2019s the profit.\\n Nick once did a deal in which the seller insisted on getting $100,000 for the house, which was a retail price. Nick paid it, with $10,000 down and $800 a month\\u2026 no interest.\\n The seller got his asking price, and Nick wrapped the underlying debt into the 30-year note when he resold the house. The buyer paid $975 a month, which more than covered Nick\\u2019s $800 monthly note.\\n So Nick paid off the note sooner than its due date. He owes no money on the house himself but is still receiving $975 a month on it. If the owner were to default (which he hasn\\u2019t), it\\u2019s less of a headache to Nick because he no longer owes on it.\\n Nick\\u2019s notes do not vary much from the mortgage paper that a major bank writes. His Dodd-Frank requirement is to prove the buyer has the financial capacity to make the monthly payment.\\n Nick\\u2019s willing to loan to people who have an ITIN (International Tax Identification Number) instead of a Social Security Number are self-employed or who don\\u2019t have a great credit score.\\n Often a low credit score simply means the borrower operates in a cash economy. The key is to keep the mortgage payment and the rent payment the borrower is used to paying very close to the same amount.\\n Nick finds his deals from sellers pretty easily because he can afford to pay more for the house since he\\u2019s financing the deal, which brings in the bulk of his earnings. He buys from the MLS and wholesalers.\\n

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What\\u2019s inside:\\n \\u2014Nick\\u2019s model adds speed to the sales process, and he profits by that speed (not by gouging).\\n \\u2014The model fully complies with Dodd-Frank based on disclosures and buyer qualifications.\\n \\u2014In real estate, hitting lots of singles is more profitable and less stressful than searching for home runs.\\n \\u2014In 2018, $26 billion dollars was used for seller financing; that\\u2019s retail, land, and commercial.

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