Real Estate Investing School Podcast: Episode 87 – REAL DEAL: How To Find, Force and Fund Game Changing RE Deals

Guest: Ty Jordan
Host: Brody Fossen
Air Date: September 7, 2023

Episode Overview

This “Real Deal” episode brings on Ty Jordan, a videographer for the Real Estate Investing School, who shares the detailed story of his first house hack using a creative seller finance deal. The conversation focuses on actionable insights around finding, funding, and forcing returns on real estate deals, with a transparent look at mindset hurdles, negotiation wins, and practical house-hacking strategies.

Key Discussion Points & Insights

1. The Importance of Mindset & Community (00:00–03:00)

• Exposure to Real Estate Networks: Ty credits much of his progress to surrounding himself with the right community and content, absorbing strategies and motivation through Real Estate Investing School and other investors.

• Mindset Over Market Conditions: Despite high rates and home prices, Ty debunks the myth that "there are no deals out there" and emphasizes the importance of believing that deals do exist if you look hard enough.

  "There's deals out there. Like in the real estate investing school, you know, you hear all the coaches and you hear Brody talk about, if you look, you'll find a deal."
  — Ty (04:17)

2. How to Find a Game-Changing Deal (03:00–08:00)

• Zillow Hack & Creative Search: Ty used older Real Estate Investing School video content (the “Zillow hack”) to filter for seller-financed listings — a resource many overlook.

• Persistence Pays: Ty was diligent, searching Zillow multiple times a week, eventually finding a four-bedroom, three-and-a-half bath townhome in a prime area (Desert Color, St George, Utah) with strong house-hack potential.

  "The deal I found was on Zillow for like 160 days... the agent didn't put good pictures of the house up. And so I think it sat because there weren't good pictures. But yeah, if you go seek them out, dude, there's tons of deals on Zillow right now."
  — Ty (08:20)

3. Funding the Deal – Negotiation & Seller Financing (08:00–14:15)

• Seller Financing Basics: Ty breaks down how seller finance works: the seller acts as the bank, offering flexible terms not available with traditional mortgages — especially vital for self-employed buyers without lengthy W-2 histories.

• Negotiation Success: Although the seller initially demanded a 20% down payment, Ty negotiated it down to 12% ($60,000 down on $475,000 purchase at 5.5% interest).

• Creative Bargaining: An unusual twist included the seller’s willingness to accept an RV as part of the down payment.

  "You can get super creative... if you went out and bought an RV that he liked, he would probably take that as a down payment. And so that was an actual thing that happened in this deal."
  — Ty (11:13)

• Seller's Motivation: Both host and guest highlight that seller finance can be a win-win; sellers get consistent monthly income and reduce landlord hassle, while buyers access terms they couldn't get from banks.

  "You can't look at it as, hey, I have to find a seller that's willing to do me a favor. You did this guy a solid. He's collecting money every single month... For you, you're able to maximize the opportunity, rent it out by the room... everybody's winning."
  — Brody (13:00)

4. Forcing the Deal: Maximizing Value & Overcoming Fear (14:15–19:49)

• House Hacking by the Room: Ty rents out bedrooms, neutralizing his mortgage payment, and expects an $850 positive cash flow once he moves out.

• Self-Doubt and “Doing it Scared”: Ty confronted significant fear and “what-if” scenarios before closing, nearly talking himself out of the deal.

  "There was a lot of times... during the buying process that I tried to talk myself out of the deal for some reason. My brain was essentially, like, talking me out of the deal... and then I'd come back to reality."
  — Ty (15:06)

• Perspective on Renting vs. Owning: Transitioning from paying $1,800/month for rent to essentially $0 on mortgage transformed his financial outlook, equating the savings to a raise.

  "It's essentially like an eighteen hundred dollar raise. I have an extra eighteen hundred dollars to go and deploy."
  — Ty (16:30)

5. Action and Implementation Is Everything (19:49–21:27)

• The Power of Action: Both Brody and Ty emphasize that taking intentional steps—consistent searching, learning, and relationship building—are the only way to make deals materialize.

  "The biggest thing in anything is action. Like, unless you take intentional time to go after something, you're not going to get it."
  — Ty (19:49)

• Momentum After the First Deal: The mental barriers to buying fall away after succeeding on a first project, shifting perspective from “can I ever buy a house?” to “I’m about to hit five doors.”

• Advice for New Investors:

  "If you want to get into a house, there's no reason you can't do it. You can go find partners, you can go find seller finance deals... 100% possible if you put in the time and the effort."
  — Ty (21:04)

Notable Quotes & Memorable Moments

• On the power of proximity:

  "If you put yourself around other real estate investors, you'll probably have opportunities and deals presented to you that you wouldn't have before."
  — Ty (08:19)

• On seller’s creative flexibility:

  "You listen to enough real estate stuff and you hear about these crazy, like, seller finance deals, and you're like, yeah, it's not really true. And then you go out and they're like, yeah, we'll take an RV on seller finance."
  — Ty (11:13)

• On doing deals despite fear:

  "There's a difference in doing it stupid and doing it scared, right? You shouldn't do it stupid, but you should do it scared."
  — Brody (18:45)

Important Timestamps & Segments

• [00:00–03:00] | Ty’s background, why adding properties matters, mindset discussion
• [04:00–07:00] | Navigating challenges as a business owner, why house hacking first makes sense
• [07:00–10:00] | Finding the deal on Zillow, the impact of persistence, and exposure to the right ideas
• [10:39–14:15] | Deep dive on seller financing terms, negotiation strategies, and creativity in funding
• [14:15–16:30] | Forcing cash flow with room rentals, the necessity to push past fear
• [16:30–19:49] | The mental journey of closing your first deal, importance of taking action
• [19:49–21:27] | Reflection on progress, encouragement for aspiring investors

Practical Takeaways

• Be Consistently Active: Deals (even creative or off-market) appear for those who are purposeful in their search, leverage networks, and revisit old resources.
• Creative Financing is Real: Seller financing can open doors, especially for those with non-traditional incomes or limited W-2 history.
• Negotiate Everything: You can often improve your deal's terms just by asking—down payments and other structures can be flexible.
• Overcome Fear by Acting: Expect to be nervous on your first deal. Action—done thoughtfully and with due diligence—gets you to the next level.
• House Hacking Works: Renting by the room, especially in a multi-bed home in a desirable neighborhood, can eliminate your housing expense and produce solid cash flow.

Final Message: Your next level in real estate investing is just one deal away. Don’t wait for the “perfect” conditions, and don’t let fear stop you. Seek out education, surround yourself with like-minded peers, take action, and opportunities will follow.