How To Start A SAAS

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 Cody Davis
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 Let me take you through one more real-life example of a 22-year-old boy named Cody Davis, who started his journey at the age of 19, and how made 81 units in just the next 3 years of his real estate career. At 19, Cody Davis bought his first rental property. Before he turned 22, his portfolio consisted of 81 units. Cody and his partner were able to grow their portfolio to 81 units, all seller-funded and all found in the marketplace. These arrangements are not only about cash flow, which, once paid, will allow Cody to retire not only himself but also his mother.
 
 
 
 
 Davis describes the steps he took as a pushy 19- year-old Realtor with little to no income and no W-2 forms to own 81 units in 8 transactions over 3 years.
 
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 How he Bought his First Apartment Complex
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 After turning 19, Cody Davis began working as a real estate agent in the Seattle, Washington, area. He was unsuccessful as an agent and rarely made sales.
 
 
 
 However, he was good at keeping in touch with other brokerage agents. One morning, a deal for a 22-unit apartment complex, funded by a seller, came to his desk after negotiations with another buyer fell through. His brokerage president urged him to pursue it despite his lack of funding experience and know-how. He assured him that another agent in the office would fund the transaction if it were possible for him to get the seller to leave happily.
 
 
 
 
 When Davis approached the seller, he was flatly rejected. He felt that the seller had dragged on for too long and withdrew his offer altogether. He was devastated and frustrated. However, he got stuck with a virus: The Investment Virus.
 
 
 
 As a broker, Davis had access to the Multiple Listing Services (MLS). After being kept away from his last deal, he filtered the offers on "Seller Financing" and found several properties. One was a $1.2 million, 12-unit apartment complex that had been on the market for 560 days.
 
 
 Davis contacted the listing agent, craftily explained that he wanted to buy after another futile transaction, asked how to write a contract, and started the purchase. The original request was 20% lower and required 80% seller financing. Davis went back and forth; he joined at 15% and eventually signed.
 
 
 However, he was good at keeping in touch with other brokerage agents. One morning, a deal for a 22-unit apartment complex, funded by a seller, came to his desk after negotiations with another buyer fell through. His brokerage president urged him to pursue it despite his lack of funding experience and know-how. He assured him that another agent in the office would fund the transaction if it were possible for him to get the seller to leave happily.
 
 
 
 
 During the contract negotiations, Davis negotiated a 10% down payment. The down payment now totals about $125,000.
 
 
 
 He has had some great performances so far, but the biggest test is yet to come. How does a 19- year-old with little income, fortune, or experience negotiate a 12-unit seller-funded complex and fund it at the end of the deal?
 
 
 For him, it's all about the mindset.
 
 
 "I went here and there and asked people in the office for help," Cody Davis explains. I asked, "Who has a customer with a cash balance of $125,000?" He replied, "I don't need to be a one-man show, so I asked for help." I got a lot of help, not just communicating with people. "I logged in with a lot of people, but I missed the meeting.
 
 
 
 However, the meeting failure did not deter Davis. He needed to raise $125,000 by the time he was certified and determined to do it. Eventually, after collecting a few dollars from other agents in his office, his mentor helped seal the deal.
 
 
 Ultimately, Davis secured the property with 12% interest debentures from the seller, covering 90% of approximately $1.2 million, raising $125,000 in equity, and generating over $1,000 in net cash flow. All when he was 19 years old.
 
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 A Seller-Financed Investing Strategy
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 Due to his age and financial background, Davis lacked significant leverage in terms of the financial products for which he might be eligible. He was not eligible for a loan from the FHA, and most mainstream financial sources would mock his dire financial situation.
 
 
 He soon realizes that seller financing is his best option for securing loans. Seller financing is a nifty trick that allows buyers to acquire property without going through a bank. Instead, the seller funds the transaction, which you repay in the note.
 
 
 This allows for more flexibility in financial terms and can significantly lower the barrier to entry. Cody leveraged seller financing to finance eight of his property purchases.
 
 
 But it still begs the question of how he was able to succeed the first time given his lack of finance and general lack of experience in the real estate sector. After all, sellers want their money like a bank. Lending to an inexperienced investor short on cash may seem like a big risk.
 
 
 "Instead of selling or trying to sell an idea to someone, I wanted people to believe in who I am today." And today, what I've discovered about myself and how I run my business is that I do everything first. I had to have a story that was easy to understand for people. I had to be somewhat relatable to walk into the room and get people to talk to me. Then those people, whether it's a seller, a buyer, if I'm a broker, or even if it's just [another] investor, will work with me if I have a goal. Davis said.
 
 
 The whole strategy is based on relationships. He fully accepts the idea that real estate is about relationships. The most successful investors are those who build their networks, come to the table with a win-win mindset, and sell people stories and possibilities, not numbers and egos.
 
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 The True Cost of Debt
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 Davis took another seller-financed property in the second transaction, which included 12% interest. At this point, the profit alone was close to half a million dollars. As Davis admits, that may seem like a lot for a young investor looking for a second property.
 
 
 However, he notes that not starting is more expensive than starting with high-interest rates.
 
 
 "So basically, at 12% interest, I'm paying 1% of everything I borrow every month." And so, in my first two transactions, I borrowed a quarter of a million dollars and paid $2500 a month in interest. Most people would say that's ridiculous; it costs too much. I'd say if you don't start, it costs even more. And your cash-flowing properties have dropped $1,000 a month or more since the first day.
 
 
 Davis argues that cash flow speaks for itself. He went from having no property to having one with high-interest rates and an extra $1,000 a month in his pocket, all paid for by his tenants. He also reminds us that, at his age, much more awaits him in the years to come. Especially as his financial background matures, his experience and reputation increase and he may qualify for low-interest financial products from traditional lenders and look for hot offers in their network.
 
 
 After all, real estate is a long-term game with massive potential for the future.
 
 
 Cody is a shining example that age doesn't matter when you're determined to make it happen. For many, entry into the real estate arena is protected by a tall barrier that seems impossible to stop or step over.
 
 
 It takes hard work, bold movement, and creativity, but anything is possible. If someone like Cody Davis, a struggling 19-year-old real estate agent, can achieve the impossible, so can you.
 
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How To Start A SAAS

Chapter-1

Chapter-2

Chapter-3

Chapter-4

Chapter-5

Chapter-6

Chapter-7

Chapter-8

Chapter-1

Chapter-2

Chapter-3

Chapter-4

Chapter-5

Dan Lesniak

Cody Davis

Samuel Zell