The Stacking Benjamins Show: "Build Wealth AND Community Using This Real Estate Strategy" (with Mel Dorman) SB1745 – Oct 8, 2025

Episode Overview

In this episode, hosts Joe Saul-Sehy and OG welcome real estate innovator Mel Dorman to discuss how you can simultaneously build wealth and foster community using creative seller financing strategies in real estate. With a focus on Mel’s unique journey—from dumpster diving student to accomplished real estate investor—listeners learn how alternative financing models can empower more people to participate in real estate, create win-win situations, and support broader financial stability in their communities.

Key Discussion Points & Insights

Mel Dorman's Journey: From Scarcity to Community Wealth

• Dumpster Diving Days (05:42–07:08)
  • Mel recounts graduating during the 2009 recession, struggling financially, and “dumpster diving” for fresh food at Trader Joe’s. She describes transforming “debris into charcuterie,” demonstrating resourcefulness and community with fellow students.
    "At that time, it was about going around one or two in the morning… get in and out as fast as you can." – Mel (06:16)
• International Development Lessons (07:27–08:50)
  • Mel’s work in Uganda and India exposed her to the devastating effects of debt and economic exploitation. Personal stories of seeing others controlled by debt inspired her eventual approach in real estate. "That was the first time I really saw how debt could control people's lives." – Mel (08:03)
• The Kiyosaki Book and Changing Mindsets (09:24–10:02)
  • Initial skepticism of wealth-building literature faded over time.
    "I flip over the cover… 'Rich Dad, Poor Dad'. I'm like, oh, this is another American book about making money. Those selfish Americans…" – Mel (09:29)

Real Estate as an Accessible Wealth Builder

• Family Crisis Sparks Action (10:10–12:17)
  • Mel faced her own financial hardship when her father was diagnosed with Alzheimer’s, and her family lacked savings. This spurred her to learn everything about real estate investing through resources like BiggerPockets podcast. "I realized real estate was such an accessible way to build wealth…" – Mel (12:30)
• Getting Creative: First Deals & the Power of Seller Financing (13:37–16:17)
  • By saving $50K as a social worker and utilizing FHA loans, Mel bought her first property. She quickly realized she’d need to move faster and think creatively to help her family.
  • Decision to focus on off-market deals and seller financing was pivotal. "I knew it was a way that I could build relationships in my community to build wealth." – Mel (15:55)
  • The “nobody’s coming for you” lesson: Mel underscores individual responsibility in wealth-building. "There is nobody coming to help. You have to do it yourself." – Joe (16:37)

Seller Financing Deep Dive: People-First, Win-Win Real Estate

• Meeting Kelly: The Triplex Deal (17:32–20:43)
  • Through relationship-building and direct mail, Mel finds Kelly—a bankruptcy attorney with a triplex to sell. She negotiates creative terms, including a low down payment and delayed first payment. "I said, great, that's all you need then, right? If I don't pay you, you can just use $15,000 of my money and foreclose on me. And he saw the logic, and he agreed." – Mel (19:09)
  • Mel further leverages her community, borrowing from friends to meet the down payment.
• Structuring the Deal—Why Seller Financing Works (21:47–23:34)
  • Mel explains how seller financing can be more profitable for the seller than a traditional sale, especially after taxes, and provides more flexibility to both parties. "He's not making $725,000. He's making a million dollars on that property… He gets to move from being the landlord to the lender…” – Mel (22:25)
• Building Trust and Community (23:14–24:31)
  • Seller financing requires high trust, transparency, and shared values. Mel stresses that being trustworthy and responsible is vital, as it’s “your neighbors” you’re working with.
• Finding Seller Financing Opportunities (24:31–25:40)
  • Mel shares her “love letter” direct mail strategy:
    • Hand-addressed, sincere letters focused on relationships, not transactions.
    • Build lists through relationships with escrow companies or available software. "All it is is introducing yourself as a neighbor… it's really just a building of a relationship. It's not very much about the property, it's more about the person." – Mel (24:00)
• Tenant Relationships & Social Capital (25:53–27:01)
  • Mel believes in personal connections with tenants, which helps navigate issues humanely and ensures smooth transitions when problems arise.

Advanced Seller Financing Techniques

• Flexible Terms & Deal Engineering (27:31–29:57)
  • Unlike traditional bank loans, seller financing terms are completely negotiable (ex: interest-only payments, remainder beneficiaries, early buybacks, splitting notes across properties). "I put some terms in there that allow me to take a promissory note… and I can move those pieces of debt to other real pieces of my property, and that creates equity..." – Mel (27:53)
• Managing Risk & Learning Curve (30:27–33:05)
  • Mel cautions that real estate is complex and potentially risky, requiring education and mentorship rather than reckless experimentation. "Real estate is something… like flying a plane or becoming a doctor. You are working with massive numbers... take the time to read books and listen to podcasts and learn from experts..." – Mel (30:27)
• Low Closing Costs & Simplicity (31:00–31:52)
  • Closing on a seller-financed deal often costs ~$2,000 versus ~$12,000 for a traditional bank mortgage. "With a real estate attorney, it's about a five-page document... with a bank, it's like a 30-page, really, really crazy document..." – Mel (31:38)

The Bigger Picture: Community Wealth & Banking Skepticism

• Community Wealth-Building (33:05–33:38)
  • Mel argues the standard banking system is less community-minded and more extractive, citing the losses most Americans experienced during the 2009 crisis. "The banking system has let us down… this is a much more practical way to build wealth and to do it in such a way that we keep wealth in our communities..." – Mel (33:05)
• Achieving Scale (33:52–34:27)
  • Mel has gone from dumpster diving to 34 units in 5 years using her model.
• Book Recommendation
  • Mel’s book, Bank on Your Neighbor: People First Real Estate Strategy to Build Wealth Together, was released in September and is available in print and podcast formats.

Notable Quotes & Moments

• On Self-Reliance:
  "There is nobody coming to help. You have to do it yourself." – Joe (16:37)

• On Borrowing from Friends to Close the Deal:
  "I called through about maybe five or six people, and I found some lesbian friends of mine, and they lent me $10,000 in a second position lien for an entire year..." – Mel (19:40)

• On the Power of Seller Financing:
  "He gets to move from being the landlord to the lender which is what's most lucrative." – Mel (22:25)

• On the Heart of the Strategy:
  "At the basis of this is financial literacy. And this is not about taking advantage of folks… but at the end of the day, you have to be responsible because you're working with a community member." – Mel (23:14)

• On Relationship-Driven Prospecting:
  "I want to know my tenants. I want to know everybody that's on my team... It's a team sport." – Mel (25:40)

Financial Headlines Segment: Understanding Fed Rate Cuts (37:30–52:21)

• The Fed recently cut its rate for the first time in almost a year (quarter point cut to 4–4.25%). Joe and OG explain:
  • This is the rate banks pay each other for short-term overnight loans, not directly your mortgage rate.
  • Lower rates impact variable loans (credit cards, car loans, HELOCs) and savings rates first, not existing fixed-rate debt.
  • Use reductions as an opportunity to revisit your debt strategy, not for lifestyle inflation. "If you have a car loan at 7%, not going to change… you can go refinance it maybe." – OG (41:02)
  • Consider both “debt snowball” (smallest balance first) and “debt avalanche” (highest interest first) approaches, but be sure to lock in a plan as rates fall.

Timestamps for Key Segments

• Mel’s Background and Dumpster Diving: 05:42–07:08
• International Development Experiences: 07:27–08:50
• Family Crisis & Learning Real Estate: 10:10–12:17
• First Purchase & Seller Financing Introduction: 13:37–16:17
• Community Relationships & Finding Deals: 17:32–25:40
• Tenant Relationships: 25:53–27:01
• Creative Terms in Seller Financing: 27:31–29:57
• Risk Management and Closing Costs: 30:27–31:52
• Reflection on Banking System & Community: 33:05–33:38
• Fed Rate Cut Explainer & Debt Strategy: 37:30–52:21

Episode Takeaways

• Seller financing can be a transformative approach for both buyers and sellers, allowing for flexible terms, better community outcomes, and sometimes superior economic returns compared to traditional bank loans.
• Community and relationships are foundational for Mel’s strategy; trust and reciprocity make creative real estate deals possible.
• Innovation in real estate is accessible with the right mindset, education, and community support—even if you start from dire circumstances.
• Leverage opportunities from rate cuts to shore up your debt strategy and prioritize long-term wealth over short-term consumption.

For more on Mel’s methodology and personal story, check out her book, Bank on Your Neighbor, and listen to her TEDx talk (both linked in the show notes).

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