Lecture Notes on Case Studies and Creative Financing

Introduction

• Discussion of previous deals and case studies.
• Mention of Dave's future book, "How to Have Your Cake and Eat It Too."
• Quick conversation on the meaning and humor of the phrase "have your cake and eat it too".
• Introduction to the Zoom presentation.

Overview of Presentation

• Presentation previously done with Supergroup and 500K group.
• Focus on creative financing, deal structuring, and relationship money.
• Introduction to Dave Day - multifaceted persona (investor, entrepreneur, etc.).

Types of Deals Covered

• Multifamily and bulk transactions.
• Land deals: buying as parts and selling as a whole or vice versa.
• Example scenario: Bought 18 deals from a student in one month.

Case Study 1: Buying a House for $1,000

• Property in Tampa Bay, specifically Brandon, Florida.
• Divorce situation with the property owned 50-50.
• Challenges: Property had code enforcement, tax liens, and fire damage.
• Initial acquisition strategy: Buy half of the house from the husband for $1,000.
• Analysis of scenarios where doing nothing still results in profit.
• Solution: Obtained full ownership after wife’s exclusive use clause was misinterpreted.
• Sale of the property: $95,000, with further profit sharing on renovation and resale.

Case Study 2: Buying as Whole, Selling as Parts

• 8 Quadraplexes in Jacksonville, bought for $800,000.
• Strategy: Survey and split into 8 parcels, sold for $200,000 each, resulting in $1.6 million total.

Case Study 3: Buying Parts, Selling as Whole

• 24-unit condo complex in Tampa.
• Issues: Property acquired by tax-deed sales, with unresolved blanket mortgage issues.
• Solution: Found FDIC as a principal in the mortgage holding entity, resulting in mortgage issues being resolved.
• Sale price: $884,000, net profit after deducting expenses.

Strategies for Reducing Code Enforcement and Tax Liens

• Code enforcement primarily aims to solve property issues, not just collect fines.
• Strategy for reduction: Show ability to resolve the underlying issues.
• Use of nonprofit status and partnerships to achieve lien reductions.

Bulk Transactions and System Building

• Building systems around buyers, sellers, or financing.
• Example of a system built around institutional buyers during the housing market peak years.
• Strategy: Identify smaller funds unable to compete with major hedge funds, supply them with tailored deals.

Conclusion

• The presentation emphasized the creativity and structured approach in real estate deals.
• Mention of potential second part due to time constraints.

Additional Opportunities

• Availability of real estate opportunities through public records.
• Partnership and networking opportunities with other investors and funds.