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The path to success in real estate investing is paved with strategic thinking, creativity, and a deep understanding of the market. Jenn and Joe DelleFave, seasoned real estate investors, exemplify how leveraging unique strategies can help grow a profitable real estate portfolio. Their journey offers invaluable insights into finding motivated seller leads, implementing creative financing, and achieving balance in work and family life.
Starting Small, Dreaming Big: Jenn & Joe’s Journey
Joe’s real estate journey began in 2000 with a Ron LeGrand course he borrowed from a friend. With no money or credit, Joe followed the instructions on VHS tapes and audio cassettes, closing his first deal within a month and earning $15,000. This initial success sparked a passion for real estate investing, which Jenn joined shortly after they married.
Their real estate approach evolved in the early 2000s as they capitalized on foreclosures and affordable single-family homes in upstate New York. By refining their processes and embracing the BRRRR (Buy, Rehab, Rent, Refinance, Repeat) strategy, they built a sustainable system. In 2016, they transitioned to creative financing methods, discovering the benefits of wraparound mortgages and seller financing to acquire properties with minimal upfront costs.
Key Strategies for Success in Real Estate
1. Target Motivated Sellers
Jenn and Joe emphasize the importance of focusing on motivated sellers to maximize efficiency and minimize frustration. A motivated seller, often driven by financial hardship, relocation, or other urgent needs, is more likely to negotiate favorable terms. They highlight how unmotivated sellers can waste hours with no deal, making proper lead qualification essential.
2. Master Creative Financing
Creative financing methods, such as wraparound mortgages and seller financing, allow investors to acquire properties with minimal cash investment. By taking over the seller’s mortgage or structuring deals with low-interest payments, Jenn and Joe have successfully closed deals with as little as $100 down.
What Is a Wraparound Mortgage?
A wraparound mortgage enables investors to take ownership of a property while the original mortgage remains in the seller’s name. Unlike assuming the loan (which requires qualification), this method allows the buyer to make payments on behalf of the seller, bypassing traditional lending requirements. Jenn and Joe use this method when properties have favorable mortgage terms.
3. Diversify Lead Generation
To find the best deals, the couple uses multiple lead generation channels, including:
- Facebook Ads: A cost-effective way to attract motivated sellers who reach out directly.
- Direct Mail Campaigns: Personalized yellow letters help establish trust.
- Driving for Dollars: Physically identifying distressed properties.
- Cold Calling and MLS Searches: Direct outreach to property owners and exploring market listings.
Qualifying Leads with Facebook Messenger
Jenn and Joe developed a 10-question script for Facebook Messenger to identify seller motivation efficiently. Questions focus on the property’s condition, reason for selling, and desired timeline. This process reduces wasted time on unmotivated leads, allowing them to focus on actionable opportunities.
4. Real-Life Deal Examples
Their strategies have led to numerous success stories:
- A turnkey property purchased for $360,000 with an existing $170,000 mortgage. With monthly payments under $2,000 and rental income exceeding $2,800, the deal generates significant cash flow.
- A free-and-clear property purchased for $100 down with a 0% interest rate. The $500 monthly payment created a win-win situation for both the seller and the DelleFaves.
5. Understand the Value of Collaboration
Building relationships with local experts, such as attorneys, title companies, and coaches, ensures that creative financing deals are structured correctly. For Jenn and Joe, hiring a mentor early on clarified the nuances of complex transactions, setting them up for long-term success.
Work-Life Harmony as Partners in Real Estate
Jenn and Joe demonstrate how a strong partnership can thrive in the high-stakes world of real estate. They balance their roles based on strengths—Joe excels in negotiations and analyzing deals, while Jenn manages operations and marketing. They also prioritize quality family time, homeschool their children, and travel while running their business virtually.
Key advice from the DelleFaves for couples working together:
- Clearly define roles based on individual strengths.
- Maintain open communication to avoid conflicts.
- Focus on preserving the relationship above all else.
Virtual Real Estate Investing
One of the standout elements of Jenn and Joe’s business model is their ability to work virtually. They rarely visit properties, even those located just minutes away. Instead, they leverage digital tools to manage deals, communicate with sellers, and close transactions from anywhere in the world. This approach gives them the freedom to homeschool their children and travel while maintaining a thriving business.
Navigating Today’s Market Challenges
The DelleFaves highlight the challenges of today’s market, including rising interest rates and inflated home prices. Creative financing strategies, like taking over existing low-interest mortgages, have enabled them to continue acquiring cash-flow-positive properties. Their advice: always evaluate deals based on motivation, property condition, and financial feasibility.
Coaching and Mentorship
Beyond their investing success, Jenn and Joe are passionate about helping others achieve similar results. They offer guidance on structuring deals, understanding creative financing, and connecting with reliable professionals like attorneys or title companies. Jenn and Joe also host live sessions every Tuesday, sharing actionable tips and insights from their ongoing deals.
Key Takeaways
- Focus on Motivated Sellers:
Prioritize working with sellers who have a clear reason to sell quickly, such as financial hardship or relocation. This saves time and increases the likelihood of closing deals. - Master Creative Financing:
Techniques like wraparound mortgages and seller financing enable investors to acquire properties with minimal upfront costs, even as low as $100 down. - Leverage Diverse Lead Generation Strategies:
Use platforms like Facebook ads, direct mail, and MLS searches to attract potential sellers. Jenn and Joe’s 10-question script in Facebook Messenger helps filter out unmotivated leads. - Understand Wraparound Mortgages:
This financing tool allows buyers to take ownership of a property while the seller’s existing mortgage remains in place, creating opportunities to secure properties with favorable terms. - Learn from Real-Life Examples:
Deals such as a turnkey house purchased with a low-interest mortgage or a free-and-clear property acquired with a 0% interest rate demonstrate the potential of creative financing. - Work Virtually for Flexibility:
Jenn and Joe run their real estate business entirely virtually, allowing them to homeschool their children and travel without compromising their operations. - Collaborate with Experts:
Building relationships with local attorneys, title companies, and mentors ensures deals are structured correctly and legally. - Value Work-Life Balance:
Define roles based on strengths, maintain clear communication, and focus on preserving personal relationships alongside business success. - Coaching and Mentorship Are Vital:
Jenn and Joe offer guidance to help other investors analyze deals, structure creative financing, and connect with professionals to streamline transactions. - Adapt to Market Challenges:
Despite rising interest rates and higher home prices, creative financing methods help secure profitable deals in today’s market.
Build Your Real Estate Empire
Are you ready to take your real estate investing journey to the next level? Whether you’re just starting or looking to expand your portfolio, focusing on motivated seller leads and mastering creative financing can be a game-changer. Take a page from Jenn and Joe DelleFave’s playbook—embrace innovation, refine your strategies, and grow your business.
Get started today by exploring opportunities in your local market and connecting with experts who can guide you through the process. With the right tools and mindset, you too can achieve financial freedom and create a thriving real estate business.
