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DS02 | Danny Randazzo | $1M on his 1st deal and how mindset played a role

Dan has work hard to create a lifestyle that allows him and his fiancée to have more control over their time.

Dan started with a property in East Bay area of California (Livermore) during the time when the market was recovering. He bought his first property, which he house hacked, for $475K in 2013 and sold the property 2 years later for $585k. He leased the rooms to two other people, so that allowed him to cover most of the expenses of the condo (mortgage, taxes, insurance, condo association fees, cable, electric, and internet), resulting in Danny paying about $400 out of pocket. This property was a great way for Danny to get started in Real Estate. Danny held the property for 2 years to avoid the Capital Gains tax.

Danny loves Triple Net Leases because the tenants, who are on commercial leases, are typically responsible for the expenses within the walls of the property while the owner is responsible for any expenses relating to the exterior of the building. His first commercial deal, two buildings with 3 units each (5 out of the 6 units leased), was purchased for $1,000,000. For this deal, Danny got a seller lease back, which means the seller paid Danny market rate rents in addition to covering the tax, insurance, and utilities for the one vacant space. Consequently when Danny bought the buildings, the assets were technically fully occupied. The Seller Lease Back lasted for 3 months covering Danny's basis to secure a new commercial tenant for the space.

Danny secured a 80% LTV loan, which means that the bank provided the mortgage of $800k while the remaining $200k is provided by the buyer. Danny was happy with the returns (Cash on Cash Return) in year one, which was more than 30%. This phenomenal deal was found on the MLS, and Danny gave an offer that was $400k under the asking price.

Contact Danny: You can reach out to Danny on his website http://www.randazzocapital.com/

Content mentioned: *Rich Dad Poor Dad - https://www.amazon.com/Rich-Dad-Poor-Teach-Middle/dp/1612680194/ref=sr_1_2?ie=UTF8&qid=1501452639&sr=8-2&keywords=rich+dad+poor+dad

*Cash Flow Quadrant - https://www.amazon.com/Rich-Dads-CASHFLOW-Quadrant-Financial/dp/1612680054/ref=sr_1_1?s=books&ie=UTF8&qid=1501452660&sr=1-1&keywords=cashflow+quadrant

*The Millionaire Real Estate Investor - https://www.amazon.com/The-Millionaire-Real-Estate-Investor/dp/B000YHH1S8/ref=sr_1_2?s=books&ie=UTF8&qid=1501452679&sr=1-2&keywords=The+Real+Estate+Millionaire

*Tony Robbins books: https://www.tonyrobbins.com/

*Donald Trump's books: https://www.amazon.com/Donald-J.-Trump/e/B001H6O8M2

*Dolf De Roos books: https://www.amazon.co.uk/s/ref=nb_sb_noss_1/257-7437466-6165549?url=node%3D268210&field-keywords=dolf+de+roos&rh=n%3A268210%2Ck%3Adolf+de+roos

Loopnet: www.loopnet.com