Ep 31: Using Creative Financing to Build a Syndication Empire with Mel and Dave Dupuis
Updated: Feb 11, 2020
The idea of seller-financing is generally met with skepticism. From people saying that it’s impossible to find owners who are willing to go into deals to not understanding how these strategies work, the syndication space is rife with naysayers. Mel and Dave Dupuis, AKA Investor Mel and Dave, chose to ignore the negativity and forged ahead on their syndication journey using other people's money. They have not only proven critics wrong, but they have also shown that opportunities exist if you look in the right places. After doing research, they realized that the seller-financing model was mutually beneficial.
On the one hand, owners would earn interest and defer their capital gains while on the other Mel and Dave would have a high level of flexibility in case unexpected challenges arose that they needed to pay out of pocket for. In this episode, we learn more about the creative financing strategies that they use and the advantages of each of them. They also shed light on how they have won over owners and other investors to work with them on this unconventional model. Mel and Dave don’t want to portray a false idea of what it takes to make this model work. They have heard far more no’s than yes’s, yet they have preserved and pushed through the hardships. They certainly inspired us, and we know they will do the same for you. Tune in today!
Key Points From This Episode:
An intro to Mel and Dave, how they started partnering, and why they chose real estate.
How they bought their initial properties and subsequently discovered creative financing.
Learn how Mel and Dave find people who are on-board with seller-financing.
The number of deals that Mel and Dave generally look at: It’s a lot!
Don’t fall in love with the deal. Focus only on the numbers.
Find out more about Mel and Dave’s buying criteria, from markets to types of properties.
What the operational side of Mel and Dave’s business looks like
Mel and Dave’s goals and how they are working toward them.
Other creative financing techniques, aside from seller financing, that Mel and Dave are using.
Don't just buy it because it looks cheap. Understand the market in and out.
The diverse strategies that Mel and Dave use to increase their appreciation.
How deals with seller finance are structured with forced appreciation.
Find out how Mel and Dave get investors comfortable being in the second position on a deal.
The importance of a track record to prove your credibility and anticipating investor needs.
Take away the fear and give investors no reason to say no!
“As soon as we realized that the seller is now part of the equation when purchasing buildings, that’s when we did the 12 in 12.” — @InvestorMelDave [0:05:28]
“We don’t get yesses every time. We just look at a lot of deals.” — @InvestorMelDave [0:09:23]
“Owner financing is everywhere. You’re maybe just not talking to the right people.” — @InvestorMelDave [0:16:35]
“Real estate now is a national, international game. But real estate is still a local business. — @InvestorMelDave [0:30:33]
“After we got the first owner financing, it just snowballed.” — @InvestorMelDave [0:40:07]
Links Mentioned in Today’s Episode:
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