Cody Davis
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 he 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.
How he Bought his First Apartment Complex
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.
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.
