What People Are Saying
"A.D. Kessler has helped more people make more money than anyone I know... you can learn and use his ideas through his book, "A Fortune At Your Feet."
-Robert G. Allen, author of Nothing Down.
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Dear A.D.,
I enjoyed meeting you. You have been a great motivator in helping me move my real estate business off home plate. Thanks for your help! Copies of the final signed documents for the two duplexes I bought finally arrived. The deal ended up priced at the appraised values of each property with a down payment of $2000 on each property. The owner financed the difference between my down payment and his existing mortgage. We did a Contract for Deed that has the Warranty Deed in escrow for two years. The total price for one duplex was $62K and $73K for the other. The current rents on the units are: $425, $425, $475 for 2 bedrooms, and $575 for 3 bedrooms.
Now for the story. You gave me an assignment to check out rents for one or two areas I was interested in. I found a house that I thought would be a good rental and I looked for information on rents in that area. I checked the newspaper, apartment guides, a Realtor® friend, and a property management friend. The property management friend told me that the owner of these duplexes was talking about selling the properties. He was living in Utah and no longer had an interest because he was too far away to handle the repairs, etc., by himself. The property manager gave me a phone number for the owner and I called him. We talked different possibilities and established the general framework for going forward. I sent him my offer and then negotiations started in earnest. I drew up a purchase agreement that he didn't like. After further discussions, we used an attorney in Texas to draw up the appropriate agreements and related documents. The entire package was nothing down with my money. I financed the total of $135K. The owner kept the original mortgage and accepted notes for the difference up to the down payment of $4K. My down payment came from credit cards. My total monthly payments to the owner were approximately $1,400. That leaves me $500/month if all four units are rented. That should leave me enough to pay the cards off and make a little profit for investment or to pay bills.
I mentioned that I was involved in another property where the owners were in the midst of a divorce. We are making progress on making something happen on this property. Right now the plan is for me to take over the existing mortgage payments and pay about $3K to bring the mortgage current and pay one years' back taxes. That will put me at about $52K for the investment. The last appraisal on the property two years ago had a value of $65K.
Thanks for all your help!
Sincerely,
- Lane A.
Dear A.D.,
Below I have included two of my lease/purchases that I learned the most from.
15 year old farm house, beautiful setting on10 acres of fenced pasture land. The lady that owned the property just wanted out due to a recent divorce. She could no longer make payments of $1300/month. The property was appraised last year at $195,000. She owed on a 1 st and 2 nd mortgage $187,000. Not much equity involved in this and she didn't want to deal with a Realtor®. The appraised values in the area are increasing each year approximately 6-8%. I asked her if she would deed the property to me and I would pursue a tenant-buyer. She did and I advertised for three days in the local paper.
Tenant-Buyer was obtained and contracted to lease/purchase the property for 36 months and purchase the property at $230,000. Terms are as follows: 36 month L/P, 5% down = $11,500 which decreases the price to $218,500, $1350/month. At closing I would receive $31,500 which would place me back at the $187,000 that the seller owned on the property. In addition the seller was more than happy to be receiving the difference between $187,000 and approximately $164,000 which is where her mortgages would be including amortization when the tenant/buyer cashes out in 36 months.
Total earnings for myself: $43,000 plus $50/month cash flow from lease=$1800
I'm very excited about this transaction! This one deal propelled my confidence to a new level as will be described in the next lease/purchase below.
-
2300 Sq. foot home in new subdivision that had been for sale for one year. The property was under contract with a local Realtor® to sell at $149,000. I talked to the Realtor® and asked him the story on this property. The seller had moved to a neighboring state and purchased another home. Now, the seller had two mortgages and was getting anxious because the property here had not sold in a reasonable time. I told the Realtor® what I did as a real estate investor and asked him to let me know if the family was interested in getting a tenant/buyer in the property to help pay down the seller's mortgage and then cash the seller out after 4 years. The Realtor® called me the next day and told me that the seller's were very interested in getting someone in for a lease/purchase. So, I advertised the property as a L/P. In one week I received seven calls and I got the Realtor® to show the house to 4 of these individuals. Fifteen days out I had contracted with a tenant/buyer.
Terms:
3 year L/P with the Tenant-Buyer to purchase at $180,000
5% non-refundable option payment=$9000
Seller's mortgage payment/month=$910
The Tenant-Buyer agreed to pay $1100/month. This is cash flow of $190/month. 50% of $95/month is credited to purchase price. This will total $3420.
Seller agreed to discount sale price 5%=$141,550
I agreed to split the amount of profit about $175,000 50/50 between seller and Realtor®= $5000
My earnings= 5% option $9000
Monthly cash flow $95 X 36 months $3420
$21030
Total profit: $33,450
Thanks,
- Derrick W.
Please be advised that the real estate investing course offered by Dr. A. D. Kessler and his associates is an extremely effective and powerful asset for beginning real estate investors. Dr. Kessler's extensive texts, combined with personal coaching have been very instructive and helpful in introducing myself and my partner to the career of Creative Real Estate.
We set initial goals of acquiring one new investment property per month. In our first three months we have acquired three such properties. These were secured with a minimal down payment, and were almost immediately occupied by renters. We have enjoyed the positive cash flow, but view our progress as only "a drop in the bucket" when compared with the possibilities that exist. We have since revised our goals to acquiring 30-40 properties in our first year, focusing on the communities in California, MD, Virginia Beach, VA and Grand Island, NE. Since we have yet to implement the "no money down" techniques learned from the course, it is likely that our goals will soon be revised upward in the near future. Will Rogers may have said about real estate that "they ain't makin any more of it", but there seems to be no shortage of opportunity for Creative Real Estate practitioners.
We are grateful to both Dr. Kessler and my coach
for this explosive upturn in our income and lifestyle,
and we wholeheartedly recommend the Creative Real
Estate course to all those courageous enough to
want to escape the illusory security
of a J-O-B.
Sincerely,
- George C. PHD
Prior to becoming students/protégés of Dr. Kessler, we had successfully built (using our limited knowledge over a period of two and a half years) a portfolio of properties, acquired as fixer-uppers, and valued at approximately $1M. However, last fall we arrived at a quandary. The question was how could we use our real estate portfolio to our best advantage? And, how could we take our real estate investing to the next level with diminished funds? To further complicate our dilemma, we had also recently started our own fulltime real estate investment firm (The BRI Group, Inc.). We knew that a new start-up company would not be a positive qualifying factor when seeking mortgages. Therefore, in December of last year we decided to become students of Dr. Kessler to enhance our knowledge in the real estate investing arena. We were certainly cognizant of the fact that "we didn't know what we didn't know!"
Today, after having been enlightened through Dr. Kessler's course and yourcoaching, we are much more familiar with many aspects of real estate that we had no clue about. As a matter of fact, the questions identified in the previous paragraph have been resolved. Here's how! Our recently acquired knowledge regarding the existence of investor specific loans have enabled us to refinance/cash-out one of our properties at 85% LTV. We have found that this could not have been possible using the lending institutions we've been using heretofore. Nonetheless, this transaction has replenished our coffers, and aided us in seeking mortgage pre-approvals. Our questions regarding hot to use our real estate portfolio to our best advantage has started to be answered. We are again on the hunt for additional investment property! Finally, remember our question regarding how we might also be able to take our real estate investing to the next level with diminished funds? Well, irrespective of the refinance mentioned earlier, we have been introduced to what we feel is at least one other answer to the question. It is "Lease Purchase!" Following Dr. Kessler's course instructions and your coaching, we've put together a transaction that will ultimately earn us $15K to $20K, depending upon the ultimate outcome of the transaction. Our costs were approximately $1,425. What a return on investment! And, we may have another transaction in the wings.
In closing, we would also like to say that our experience with Dr. Kessler and you has positively impacted our real estate investing activities since the beginning of the year, and has opened our minds, and perhaps doors to profitable real estate investing in the future.
Sincerely
- W.C. Batchler & P.A. Batchler
When my wife and I started investing in real estate, we were renting from someone else, our net worth was negative $25,000.00. We had no liquid cash assets or equity.
In 11 months we have purchased nearly $750,000 worth of real estate, no money down. We received checks at closing on almost every deal. One check for $19,940 on our first transaction. Another for $35,132 three months ago.
We now own our own home. We have nine rental units that have a $1,450 monthly positive cash flow. We zeroed out our tax liability last year and we have about $130,000 worth of equity.
We've never felt better about our future. As a matter of fact for the first time in our lives we feel like we have a future!!
Many thanks to A.D., Fred and the whole staff.
- Clark S.
I have to admit that purchasing the course is probably the toughest part of getting started with A.D. Kessler, but the coaching aspect was what attracted me to the program. Working with somebody that gives you a little push once in a while is what I need. So keep pushing!
My first deal was done over Christmas. I went through the ads as usual and came across an ad for a property right in my town. I looked it over and discussed the deal briefly with the owner, who lived out of town and was desperate to sell. With your help, I structured a lease purchase deal and made the offer which was accepted with no hesitation after we agreed on the price of the house which was about 15% under value for the location. I put an ad in the paper advertising a 'rent to own' deal and I had over 15 inquiries on the property and 2 solid offers. Both were in the house at the same time too! I made a deal and flipped the property for a fast $12,000 in profit. Not bad for six weeks of work! Hope I can do this a few more times this year!
Keep in touch. Thanks for being a great coach.
- Doug S.
Dear A.D.,
Thank you for all your insight. I have been a member of LA Reic for 2 1/2 years. I believe I have heard you speak 3 times and have read and re-read "A Fortune At Your Feet." The insight and knowledge I have gained from your teachings, books and CRE Magazine have helped me immensely in my real estate career.Thank you, Thank you, Thank you.
- David B.
"Author A.D. Kessler is a real estate legend."
- Robert B., attorney, author, nationally syndicated columnist.
Creative Real Estate® Magazine helped me put together a real estate transaction that resulted in $557,500.00 in real estate which enabled me to secure $71,000.00 in bank loans for business expansion, creating equity and refinancing.
I now own businesses worth $300,000.00, a house worth $150,000, a five acre lot worth $42,500.00, a one and a half acre lot worth $15,000.00 and a soon to open second location worth $50,000.00. That's a total of $557,500.00 in assets in just under three years. Not bad for a guy who came into town less than three years ago with only $500.00 to his name and a $430.00 a month car payment.
I'd like to thank A.D. Kessler and all the writers for the articles they write each month in Creative Real Estate® Magazine. They have been very helpful in giving me the knowledge to help me get started with real estate investing.
- John C.
