Cody had $3,000 saved up, a mix of working as a gymnastics coach but stopped when he got into real estate. He graduated high school in 2018, jumped straight into Tacoma Community College, and didn't want a bunch of student loans or any debts. He got his real estate license shortly and posted on a Facebook real estate group that he was looking for a mentor. Someone invited him to the real estate brokerage; all he needed was a license. After nine months of trying, he got his first seller finance through an old gymnastics buddy. Fast forward three years, he had bought his first 12 plex, and today he has 108 rental units in a resort without a bank loan.
Cody worked as a real estate agent in Seattle, Washington, and became interested in investing in real estate after a deal fell through. Using the multiple listing service, he found a 12-unit apartment complex that had been on the market for a long time and negotiated a purchase with seller financing. However, the purchase required a down payment of approximately $125,000, which proved to be a challenge for Davis as a young person with little income or assets. To obtain the necessary funds, he had to consider options such as seeking a partner or investors, taking out a loan, using credit, or negotiating a longer term for the seller financing. He ultimately had to choose the best approach based on his specific financial situation and the terms of the deal.
Due to his age and financial history, Cody had limited options when it came to financial products that he could qualify for. He could not secure financing through FHA loans, and many traditional funding sources were unwilling to lend to him due to his limited financial resources. In light of these challenges, he decided to explore the option of seller financing as a way to fund his real estate purchases. Despite his lack of financial resources and real estate experience, he successfully used this kind of financing to fund all eight of his real estate purchases.
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Cody says that trust is everything. When you get a takeaway from somebody, you apply it, and then you let them know that you applied it, and it worked. That is how you build trust at the highest level. He learned from his dad that your reputation is worth more than anything. However, it is worth considering how he was able to secure seller financing in the first place, given that sellers typically want to be sure they will be paid back just as a bank would. Lending to an inexperienced and financially limited investor may seem risky.
