00:00You can buy this $1.5 million fourplex for just $35,000. An investor on BiggerPockets just did
00:06this deal a couple of months ago. I'll show you how. This property is a four-unit building in
00:10the Wicker Park neighborhood of Chicago, which is an A-class neighborhood. There are two structures
00:15on the property, a three-unit front building, and then a brick coach house in the back. And
00:19this was found off-market. So how on earth do you buy this for just $35,000 down? This investor
00:24actually used four different strategies, but you can use them too. First, he used a low down payment
00:29loan of 5%, but that would be about 75 grand. So how do you get it down to 35? Next, he
00:34was able to get some seller credits that brought down how much money he had to bring to the
00:38closing table. Third, in Illinois, you pay taxes in arrears, which means he got money from the
00:44seller to pay his future taxes. And of course, he'll have to pay that eventually, but it does
00:48bring down how much money he needs to actually go and buy this deal. And then lastly, and
00:52I love this one, he closed on the first of the month to maximize cash flow. You can do
00:57this too. If you, for example, close on a property on August 1st, your first mortgage payment
01:03isn't September 1st. It's actually October 1st, which basically means that you get two
01:08full months to collect cash flow that you're not going to have to pay out for a little while.
01:12Although that doesn't change how much you need at the closing table, it's almost a built
01:16in way for you to build up your cash reserves. So you don't have to set that aside before
01:20you close. Overall, this is an awesome deal with tons of upside and can be the foundation
01:25of someone's portfolio for years to come.
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