Owner Financing - Single family fortunes

Report
The Art Of
Owner Financing
Volatility in The Stock Market
(If you were NOT in & Out )
Current CD Rates
(The Reverse Affect of Low CD Rates)
The Failure of Great Institutions
(Enron, Goldman Sacks, GM)
The Coming Inflation
(Where Do YOU Want Your Money?)
…How to create immediate income while creating monthly cash flow?
…How to create huge wealth without using any of your own money?
…How to quit your job and retire in 5-8 years?
…How to get paid five times on every deal?
…How to keep the cash flow on your rentals but drop the hassles?
Mitch Stephen
Experience: 18 Years
1200 Houses
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In 1996, I had 25 rentals and they were killing me
I was about to quit real estate for good
It got so bad, I was forced to get some help
They showed me what I was doing wrong
…CASE IN POINT…..
I am a High School Graduate
I didn’t Find Myself Until I was 36 Years Old
I made Very Little Money
I Did NOT Have Money
I DID Work Hard…Still Do.
I DID Value Integrity…Still Do
Think & Grow Rich
Napoleon Hill
Self-Made In America
John McCormick
Nothing Down
Robert Allen
Richest Man In Babylon
George S. Clason
The Greatest Salesman In The World
Og Mandino
Happens when your wants and your needs are
exceeded by your cash-flow
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Mathematical
I Controlled the Bar
Not Rich
Wealth Would Come After Financial Freedom
My Immediate Goals Shrank
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The Average American Spends 32% on Taxes
The Average American Spends 34% on Interest
This Leaves Us 33% of Our Income
--------------------------------------------------Learn To Mitigate Your Taxes
(IRAs – Solo 401K – Live on PreTax $ - Own Your Own Biz)
Learn To Minimize Your Bad Debt
(Kiosaki)
Learn To Maximize Your Investments
(Take Control Of Your Own Finances)
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W-2 employee Grosses $100,000
Pays tax on $100,000 and is left with $80,000
Buys a truck for $50,000 and has $30,000 left over
Company Grosses $100,000
Company Buys truck for $50,000 has $50,000 left over
Pay taxes on $50,000... Gets to drive company truck
Gets to deduct $0.69 per mile
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Apps and Websites
Landlording vs. Owner
Finance
Assessing Value
My Formula
Finding Houses
Structuring Offers
Case Studies
Contractors
Selling Houses
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Acquisition Methods
Building an IRA
Student Case Studies
Selling Notes
Protecting Note Buyers
Safe Act - Dodd/Frank
Accountability
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Trulia
Zillow
Flashlight
Level
Tracker (GPS Coordinates)
iTranslate
Loan Shark
Area Codes
Home Snap
RentOMeter.com
County Appraisal District (CAD.org)
USPS.com (Zip Codes)
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Square.com
Laser
RehabValuator.com
FAVORITES:
Audible.com
Service Bell
LANDLORD
BE THE BANK
Landlording vs. Owner Finance
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PROs
Appreciation
Depreciation
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Landlording vs. Owner Finance
CONs
Liability & Lawsuits
Taxes
Insurance
Low Commitment
Phone Calls
Wear & Tear
Turnover
Who’s $ Is It?
Non-Liquid?
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PROs
Less Liability
Improvements
No Phone Calls
No Tax Increases
No Insurance
Less Turnover
Large Commitment
It’s YOUR $$$$
Liquid Asset
(Sell The Note)
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CONs
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No Depreciation
(Write-Offs)
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*No Appreciation???
(Double $ When You Buy)
Landlording vs. Owner Finance
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Our Sellers
Our Buyers
Investors
The Neighbors
The School District
Contractors
You
Safe Act / Dodd-Frank
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Scott Horne – Attorney
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(972) 271-1700
Grant Kemp - Compliance Assistant
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(972) 804-9385 - cell
[email protected]
Dallas, TX
Safe Act / Dodd-Frank
Assessing Value
Back into your local rents to establish a finance amount
Subtract the Property Taxes and estimated Insurance
$1,075 …………………Rent
-$ 100 …………………Taxes
-$ 75 …………………Insurance
$ 900 …………………For P&I
$900/mo. @ 10.5% for 240 months = $90,000
$90,146.05 (to be Exact)
Assessing Value
Add your down payment + finance amount
$90,000 + $9,000 = $99,000 Owner Financed Price
Choose Your Words Carefully
“OWNER FINANCED VALUE”
NOT……….MAI Appraiser Value
NOT ………………CMA Value
NOT……………….BPO Value
“OWNER FINANCED VALUE”
Assessing Value
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House and Apartment Rental Comparisons
Estimating too much for rent?
Estimating too little?
RentoMeter is the easy way to compare your
rent with other local properties
Assessing Value
Establish your Owner Fin Sale Price
Acq Price + $2,000 x 2 + 10% Dn Pmt
= Own. Fin. Value
Maximum Allowable Offer (MAO)
Own Fin Price x 50% - Cost of Repairs
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RealAcquisitions.com
MyHouseDeals.com
Wholesalers
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NewWestern Acquisitions
NetWorth Realty
Letters
Signs: “We Buy Houses”
Delinquent Taxes
Pre-Foreclosures
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Foreclosures
Abandoned Houses
Mailman / Ice Cream
Truck
Bird Dogs
Nuisance and Abatement
Finding Houses
BANDIT SIGNS
FIND VACANT HOUSES
Nuisance & Abatement - Driving For Dollars (Nexus-Lexus)
ESTATES / DIVORCE
NETWORKING WITH REALTORS (Auto-responders / Funnels)
NETWORKING WITH WHOLESALERS (Signs w/ Google Voice numbers)
BANDIT SIGNS
#1 Way to Economically Generate Leads – PERIOD!
(Out Sourcing)
I wrote 12 Pages on Using Plastic Signs
(1000Houses.com/ODWresources)
How to Keep People From Messing with Your Signs
Sign Police
ESTATES / DIVORCE
Attorneys – Public Filings – Obits
Estate Sales – Estate Auctions
(Good excuse to show Attorney’s what you do – PRIVATE LENDERS?)
The Best Estates are Old Estates
That Never Got Closed out
Finding Houses
NETWORKING w/ REATLORS
You Only Need 10
Never Sign an Exclusive Agreement
Run From negative realtors!
Do Not Get them Involved in Selling Owner Financed
How Many Realtors in This County?
Board of Realtors? List? Website?
Distribution List – Slow Drip – 10 a Day
Don’t always be Selling - Talk About Your Success
Make Friends…Lunch w/ 1 per Week
Don’t Chisel Them – BONUS THEM!
Networking w/ Wholesalers
Know Them all!
Never Sign an Exclusive Agreement
Beware of those that are Consistently High on Values and Low on Expenses
Real Estate Clubs – Email List
Bandit Signs - Distribution List – Slow Drip
Don’t always be Selling - Talk About Your Success
Make Friends…Lunch w/ 1 per Week
If They Can Find Deals – YOU Can Find Deals
Finding Houses
VACANT HOUSES
Nuisance & Abatement
Get off the beaten Path…Letters vs. Personal Visit
Does Your County Have a List? Can You Get One?
Driving For Dollars
Sub This Out if Your Working Full-Time
100 in 1 Day….$1.20/per House
Photo – Email – w/Address & Zip
Pay someone to mail them
DO NOT Throw Away Those Return Letters/Cards!
Finding Houses
FINDING the OWNERS of
VACANT HOUSES
(Lexus-Nexus / RealAcquistions.com)
FOR SALE
Your Phone #
(1000Houses.com/Finding OwnersOfAbandonHouses)
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Cash offer
 $30k (including repairs)
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Large Dn Pmt w/ Subordinated 2nd
 $25k Dn
 $35k in the 2nd position (seller financing)
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Small Dn Pmt (seller financing)
 Interest-free loan
EXAMPLE:
$50K - $5K = $55K divided by 120 mo. = $458/mo
 (This is an interest free loan) 137/mo = $400/mo
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All Cash Offer
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Owner Finance w/ 2nd Lien
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Lowest Price
Large dn pmt / subordinate to 2nd position
Owner Finance w/ Small Dn Pmt / Own Fin
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Example: No interest loan (next slide)
Structuring Offers
REMEMBER…
You Make Your Money
When You Buy!
(How Many People Go Over Budget on heir Rehabs?)
ALSO REMEMBER…
You Lose It In The REHAB!
Finding Houses
Case Study #4
Buy - NO FIX UP - Owner Finance
$15,000 ………………….. Acquisition Price
$ 2,000 …………………...ME
$17,000 ………………... Borrowed…8% Interest Only. $114 /mo
Case Study #1
Sold
$38,000 ………………….. Sales Price
$ 3,000 …………………... Down Pmt
$35,000 ……Owner Finance @12% for 12 years
$420 / mo
Case Study #1
Buy
NO FIX UP
Owner Finance
$15,000 ………………….. Acquisition Price
$ 2,000 …………………...ME
$17,000 ………………... Borrowed…8% Interest Only. $114 /mo
Sold
$38,000 ………………….. Sales Price
$ 3,000 …………………... Down Pmt
$35,000 ……Owner Finance @12% for 12 years ….. $420 / mo
TOTAL CASH FLOW ………………… $306/mo
I’ve collected 6 payments on time… 6 x $306 = $1,836
N. San Felipe (AFTER)
I FOUND A NOTE BUYER
Case Study #4
SOLD THE NOTE FOR $30,570 !!!
WHY WOULD A NOTE BUYER PAY FULL
PRICE FOR THIS NOTE?
Investment secured by Collateral w/ a Huge Spread
They make 12%
INCOME
$2,000 …….. upon acquisition (Borrowed money)
$3,000 ……………………………………… Down Payment
$1,836 ………………………….…………………..Cash Flow
$30,570 ………………………………………………Note Sale
$37,836 …………………………..TOTAL INCOME
-$17,000……………………………..BORREWD MONEY
$20,836 ………………………………NET PROFIT !!!
$20,836
NET PROFIT !!!
On A Property Purchased For
$17,000
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PROs
Less Liability
Improvements
No Phone Calls
No Tax Increases
No Insurance
Less Turnover
Large Commitment
It’s YOUR $$$$
Liquid Asset
(Sell The Note)
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CONs
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No Depreciation
(Write-Offs)
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*No Appreciation???
(Double $ When You Buy)
Case Study #1
How Much
APPRECIATION
do you want?
Case Study #1
Let’s Talk APPRECIATION!
$15,000 ………………….. Acquisition Price
$38,000 ……………….………………Sale Price
Case Study #4
What Caused This Massive Overnight APPRECIATION?
Mowing the Yard? Paint the House? Remove the Dog Poop? New Carpet?
Nope – Nope – Nope – Nope – Nope!!!!
Case Study #4
OWNER FINANCING
Causes
MASSIVE APPRECIATION
Immediately!
ACQUISITION ……………….... $23,000
ME……... ………………….…...... $ 2,000
Rehab ……………………………. $ 5,000
TOTAL INVESTMENT……...... $30,000
@ 8% Interest Only, 5 years……………….. $200/mo.
SOLD in 30 Days…………………$67,000
Down Payment……………………$ 5,000
Balance …………………………….$62,000
@10.5% for 22 Years (264 mo.)……..……………. $603/mo.
Positive Cash Flow……………………………...…$403/mo
Case Study #2
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Pocketed…………….. $7,000
Borrowed “Non-Recourse Money”
Got paid $7K to create $403/mo.
POSITIVE CASH FLOW w/ no Liabilities
Case Study #2
$0 of YOUR
Money…
100% OPM
Case Study #3
$31,000 ………………….. Acquisition Price
$ 2,000 ………………….. Bird Dog
$ 2,000 ………………….. ME
$35,000 ………….. Borrowed …8% Interest Only…... $233 /mo
NEGOTIATING DOWN PAYMENT
Price was at $74,000 w/ $7,000 down
Got offered $10,000 down How do you negotiate for more down?
Reduced Price $5,000 for an additional $5,000 down
$74 ,000 ………………….. Sales Price
$15,000 …………………… CASH Down Pmt
$ 5,000 …………………… Discount for the extra $5K Dn
$54,000 …Owner Finance @ 10.5% for 20 years… $539 /MO
TOTAL CASH FLOW ……………..………………………….. $306/mo
Case Study #3
NEGOTIATING DOWN PAYMENT
• Price was at $74,000 w/ $7,000 down
• Got offered $10,000 down
• Reduced Price $5,000 for an additional
$5,000 down
Case Study #3
$31,000 ………………….. Acquisition Price
$ 2,000 ………………….. Bird Dog
$ 2,000 ………………….. ME
$35,000 ………….. Borrowed …8% Interest Only…... $233 /mo
SOLD
$74,000 ………………….. Sales Price
$15,000 ………………...… CASH Down Pmt
$ 5,000 …………………… Discount
$54,000 ……………………………………………..…Own Fin@ 10.5% for 20 years… $539 /MO
TOTAL CASH FLOW …………………………………………………………….………..…….. $306/mo
Case Study #3
Sell The NOTE
$74,000 Owner Financed Value
$54,000 SOLD THE NOTE (no discount) Balance @ 10.5% for 20 years
Do the Math
+$ 2,000………………….Borrowed Equity
+$15,000………………….CASH Down Payment
+$ 918………………… Positive cash-flow for 3 months
+$ 54,000…………………Note Sale
$71,918 …………………TOTAL INCOME!
- $35,000………………...Less the amount I borrowed
$36,918……………………...Net Profit in 3 mo
Case Study #3
Case Study #4
Unwinding Conventional
Wisdom
• Realtor rejected the listing
• I took my sign to the yard and sold the
house as I planted the sign
• I SOLD it to a neighbor across the street
Case Study #4
$38,000 ………………….. Acquisition Price
$ 1,000 ………………….. Bird Dog
$ 2,000 ………………….. ME
$41,000 ……….. Borrowed …8% Interest Only…………... $273 /mo
SOLD
$65,000 ………………….. Sales Price
$ 6,000 ………………..... Down Pmt
$59,000 ……………….…. Owner Finance @11% for 15 years ….. $670 / mo
TOTAL CASH FLOW……………. $437/mo
+$ 2,000……………………..Borrowed Equity
+$ 6,000……………………..Down Payment
+$ 2,622 …………………....6 months of Cash Flow
+$59,000 ……………………Note Sale
-$41,000 …………………….Private Lender
$28,622 ………NET PROFIT IN 6 Months
Contracts – Drop Dead Date
Advances
Buying Materials - Discounts
CraigsList
Cheaper isn’t Always Better
Permits
Releases
Contractors Have EXPIRATION DATES
“I Do It All”
“OWNER FINANCING”
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GET BUYERS TO QUALIFY THEMSELVES
Perimeter signs to recording
Yard Sign to recording
CREATING A BUYER DIST. LIST
Google Voice – Capture PH# -Recording
OPTIMIZE YOUR SHOWINGS
Regular Showings Become Open Houses
Monthly Subscription
Save the Ph# of anyone that calls
Text all of them at will
FREE
Get your Google Voice #(s)
Create a list
Assign your Google Voice # to the list
Capture the ph# of anyone who calls
Text the list at will
LiveComm.com
It’s all ABOUT the LIST
Chit List
It’s all ABOUT the LIST
CREATE A “CASH
BUYER” DIST. LIST
Bandit Signs - Google Voice
LiveComm.com
#1 Way to Build an Email List of Wholesalers ?????
(Get On a Newbie’s Email List)
These signs you see around town
Free recorded message
CraigsList.Org
Find Creative Ways
to Build Lists
#1 Reason
People Fail at This Business
THEY THINK THEY
NEED $$$$$
LEAVE IT IN
THE BANK!
If you learn How to Do This Business w/o Your
own money…
You Won’t Loose your money When You Finally
Put it Into the Business
Financing
Acquisition Methods
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Use your own money
Buy with retirement money
Borrow from an Institution (personal guarantee)
Borrow from a private lender (non-recourse)
Buy with a partner
Sell your contract (wholesale)
Acquisition Methods
PRIVATE MONEY IS THE KEY
How many houses can you buy w/ your Money?
How many houses can you buy w/ OPM?
LISTENING WITH NEW EARS
UPS Driver / $400,000 401k
ELEVATOR PITCH
EXAMPLE: How to Get People to Ask What YOU Do?
……………1 person a day.
Acquisition Methods
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I teach people alternatives to traditional
investing (such as the stock market)
I teach them how to take control of their
personal finances, calculate risk, and
effectively use real estate as collateral.
They Think It’s All About THEM!
- I have bad Credit
- I Don’t Know People With Money
- - I’m Too Young - I’m Too Old
- I Can’t Sell
You Want to Find Private Lenders?
Go Find a Killer DEAL!
STOP BEGGING FOR MONEY
START OFFERING TO HELP PEOPLE
They Will Plug Themselves In
(Role Play)
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Never promise rates of return
One house, one loan, one lender
If you plan on advertising, I would recommend
you talk to a securities attorney
Roth vs. Traditional
Buy Property – Buy Notes – Buy Mobiles
How to Build a Retirement Plan from Dollars to Hundreds of
Thousand
I Paid $3,000 for this !!!
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Direct your IRA to offer $25,000 on a house that’s
worth $60,000
Put up $100 earnest money
Get the contract signed by the seller
Direct your IRA to sell it’s contract to an investor
for $5,000
IRA goes from $500 to $5,500 in it’s 1st move…
STARTING WITH NOTHING !!!
…. You Can Potentially Do This Too!!!
Student opens a 401K or IRA
Student learns how to Find Some Deals
He Wholesales 7 deals
And Then This Great Deal Shows Up
ACQUISITION …………….. $30,000
REHAB…………………….… $ 5,000
TOTAL INVESTMENT ……. $35,000
RENTED / 5 months
DEPOSIT ……………………. $ 1,150
(non-Refundable)
RENT COLLECTED………… $ 5,750
PROPERTY TAXES …………. $
389
TOAL COLLECTED ………...
$ 8,511
SALE PRICE ……………………….$69,000
Down Payment …………………... $ 2,000
Balance ……………………………. $67,000
@ 11.5% for 240 month
Monthly P&I Income………………. $ 715/mo.
Invested Funds ……………………. $35,000 (IRA)
COLLECTED / PUT BACK:
Rent Deposit…………………….…… $1,150
Down Payment …...………………… $2,000
TOTAL COLLECTED………………. $ 3,150
COST to the IRA................................ $31,850
Positive CASH FLOW …………… $715/mo.
ROI FORMULA
ANNUAL INCOME
DIVIDED by INVESTMENT (%)
=
CASH–on–CASH ROI
Annual Income = $715 x 12 ………… $8,580
$8,580 Divided by $31,850% = 26.93% ROI
Student Case Studies
2510 Tinechester
$38,000 Remodel
Student Case Studies
2510 Tinechester, Kingwood, Tx
ACQUITSITION PRICE ………………………………………. $33,000
RENOVATION COST …………………………………………. $38,000
TOTAL INVESTMENT………………………………………… $71,000
SOLD FOR CASH ………………………………….……….…. $99,000
TOTAL PROFIT ………………………………………..………. $28,000
Student Case Studies
7734 Avenue C (EAST END)
Acquisition Price…………………………$45,000
ARV…………………………………………… $85,000
Needs minimal work; Some flooring and AC.
Our intention is to renovate and resell with owner financing.
SALE PRICE ………………………………… $99,900 w/ $9,900 down
Student Case Studies
Seller was in his 90s and needed out of a none performing rental house
Paid Off the owner’s note balance ……………………. $17,000.
SET OUT TO FORECLOSE ON THE PROPERTY
PROPERTY WAS OCCUPIED BY A TENENAT
SOLD THE PROPERTY TO THE TENANT
SOLD w/ OWNER FINANCING …………………………. $69,000
DOWN PAYMENT ……………………………………………. $ 9,000
BALANCE ………………………………………………………… $60,000
@ 11% for 20 yrs
……………………………………………………………………. $620/mo.
TURNED $17,000 + some foreclosure expenses into a $9,000 CASH +
$60,000 NOTE
Collecting $620/mo for 20 yrs
$620 X 240 months = $148,000
Balance to Value
Interest Rate
Term
Institutions vs. Private Note Buyers
Offer one ROI for Lending you money
Offer a Higher ROI if they Buy Your Note
Sale Price .. ………………………………………$57,000
Down Payment …………………...………….....$ 5,000
Owner Finance ……………………………….....$52,000
@ 10.50% for 20 Years (240 Months) ……....$
520/Mo.
If the OWNER FINANCED VALUE is truly $57,000
The Lack of Spread May NOT be Enough Comfort for the NOTE BUYER
HOLD SOME OF THE BACK END!
….This is NOT a DISCOUNT
Acquisition ………………………………………… $23,000
Paid Yourself When you Bought………………… $ 2,000
Borrowed @ 8% Interest Only, 5 Years..………… $25,000 …….. $167/mo.
Sold ………………………………………………….$57,000
Down Payment ……………………………………. $ 5,000
Owner Financed @ 11% for 264 months..…………$52,000 ……… $524/mo.
Positive Cash Flow ………………………………...…..... $357/mo.
Paid Yourself When you Bought …………………. $2,000
Picked Up a Down Payment ……….……………... $5,000
Picked up 24 months Positive Cash Flow ……..... $ 8,568
TOTAL ……………………………….. $15,568
After collecting 2 years of payments, Schedule “A” =
You want to Hold 2 years of the back end.
What is the balance to your note buyer?
Figuring Schedule “B”
Original Payment ……..$524
Original Interest Rate………11%
# of Month Being Purchased….216
SOLVE FOR THE BALANCE….$49,199.58
$50,742
$50,742 - $49,199 = $1,543
What Did You Make When you sell the Note?
$49,199 - $25,000 = $24,199
What Did You KEEP?
24 Months x $524 = $12,576
What If You Kept 5 years????
Collected for 24 month + Kept 60 months = 84 Months
Original Term was 264 months - 84 Months = 180 Months
Re-Figure Schedule “B”
Original Payment ……..$524
Original Interest Rate………11%
# of Month Being Purchased….180
SOLVE FOR THE BALANCE…………$46,102.54
$50,742 - $46,102 = $4,640
What Did You Make on Note Sale?
$46,102 - $25,000 = $21,102
What Did You KEEP?
60 Months x $524 = $31,440
NOTICE the DESPARITY
$57,000 vs. $46,102
Acquisition ………………………………………… $23,000
Paid Yourself When you Bought………………… $ 2,000
Borrowed @ 8% Interest Only, 5 Years..………… $25,000 …….. $167/mo.
Sold ………………………………………………….$57,000
Down Payment ……………………………………. $ 5,000
Owner Financed @ 11% for 264 months..…………$52,000 …… $524/mo.
Positive Cash Flow ………………………………...….. $357/mo.
Paid Yourself When you Bought …………………. $2,000….. UP FRONT!
Picked Up a Down Payment ……….……………... $5,000….. UP FRONT!
Picked up 24 months Positive Cash Flow ……..... $ 8,568 …. MIDDLE
TOTAL ……………………..$15,568
+ NOTE SALE ……………….$21,102….24 mo Later
+ BACK END ………………...$31,440…15 Yrs Later
GRAND TOTAL …………..$68,110… !!!!!!!!!!!!!!!!!!!
You BORROWED $25,000 ---- OPM !!!!!!
You CREATED $68,110 ---- INCOME !!!!!
Note Buyer Invested $46,102 @ 11% ROI
He has Collateral w/
“OWNER FINANCE VALUE”
$57,000
COULD YOU BE THE HERO ??????
Could You “Re-Load” the House for
$57,000
(Your Note Buyer only has $46,102 Invested)
Protecting Note Buyers
And Gave Your Note Buyer a
$53,000 Note at 11%
264 mo. (-60 mo. for you) = 204 mo. - $534/Mo.
Remember the Old Terms:
$46,102 Invested - $524/mo -180 months
New Terms
$53,000 for 204 mo. @ $534/mo.
Old Terms
$46,102 Invested - $524/mo -180 months
You increase his income $10 for 180 months = $1,800
You gave him an extra 24 months X $534 = $12,816
SWING…………………………… $14,616
Will He BUY MORE NOTES?
Will He Tell His Family?
Will He Tell His Associates?
You Remain a Principle in the Note
- You Can Protect Your Note Buyer
-You can Service the Note
--You can re-load the House
-(No License required?)
Seek Your Own Council
Protecting Note Buyers
Continuing Education
Finding Trusted Advisors
Getting Insider Knowledge
Establishing a Network
How to Conform With New Rules & Regs
Access to Money
Finding Great Deals
How to Sell for Maximum Profit
Short Cut the LEARNING Curve
Avoid Costly Mistakes
Find Profits Where You Never Knew to Look
BREAK DOWN YOUR LIMITING THOUGHTS
Only Work on the Immediate Obstacle
Accountability
$80,000 - $100,000 in Seminars and Courses
10,000+ Hours in The Field
Wasted Energy Going Full Speed In The Wrong Direction
Stepped Over Money I Couldn’t See
Made Mistakes I Won’t Make Again
Accountability
Start With the Big Picture
Then Back up to Your Starting point
One Fear at a Time
My Job is to help You
Break Through Your Limiting Thoughts
Infrastructure – Supporting Materials – Vocabulary
To Work a Proven System You Can believe in
Most people who take buy courses never actually
go out and do a deal.
My goal is to help every student get into their 1st
deal within 30 days.
If we were having this conversation 5 years from today, what
would your life look like for you to be happy with the results?
How much cash flow? What kind of house would you live in?
Where would you vacation? How many vacations per year?
How would it affect your kids or your relationship with your
spouse? …Your parents? …Your Brothers or Sisters?
Who could you help?
Mitch Stephen
Experience: 18 Years
1200 Houses
Those with a strong work ethic
Those who are willing to do the homework
Those who have the desire to succeed
Accountability
The “Get Rich Quick” crowd
Those Who Are Not Coachable
Those Who Want Everything Done for Them
Avoid costly mistakes
Mine for great deals
Write an effective contract (buying/selling)
Special provisions and when to include them
Sell your deals
Deal with contractors
Use technology to increase your efficiency
Find the money
Sell notes with little to no discount
Talk to buyers and sellers, private money prospects & note buyers
Comply with the rules & regs
Shorten your learning curve
Give you confidence to get over the limited thoughts
Get you past limiting thoughts
Show you the next step
Keep you from getting overwhelmed
Keep you from getting out of order
Show you the easiest path to the money
Help you make crucial decisions
Be your second eyes
Help you avoid conflict
Help you pace yourself so you don’t get burned out
Help you create a plan and stick to it
Help you achieve your goals
Help you develop “the mindset of success”
Help you build your network
Help you tap resources you don’t know exist
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61 years of age now
CPA going blind and thus forced to replace a $60,000/yr job
Started 2 yrs, 3mo ago (11/2012)
Made $10,000 for operation to stabilize his eyes
Doubled his money in his retirement funds
13 Cash Flow properties = $100,000/yr
Recently raised $270,000 in private money
He helps others investors with money qualify their houses and
consults in the rehab to maintain a profitable outcome
= $45,000/yr
His wife is considering retiring from her teaching job and
helping he husband.
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Age 49
His credit ruined
Large debt
Had a job/business
Wanted to be home for kids
Started 1yr, 3mo ago (11/2013)
33 Transactions
17 Cash Flow Properties = $11,000 /mo
16 flips/wholesales = $150,000 Cash
Raised $500,000 of private money
but Jerry prefers to let the cash from his flips/wholesales buy
houses FREE & CLEAR
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Age 27
Wanted out of the oil field
Was ready to get married
Started 1yr, 6mo ago. (10/2012)
33 transactions
22 cash flow properties $7,000/mo
11 wholesales = $40,000 Cash
Raised at least $500,000
(He doesn't know how deep the well is)
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25 Years old - Starving – Middle of a Divorce
Estranged From His Family
A Farm Boy Dumped into the Big City
Living without AC
I GAVE him a Book
Taught Scott How to Sell Houses
for the Local Owner Financiers
$1,000 - $3,000 – $5,000 - $8,000
He Got Connected – Learn the Business
He is Now Buying Houses
Never got off his couch
Never bought a house
Never made any money
Got off of his couch
Didn’t listen
Bought the wrong house
Lost money
On everyone’s Chit List
ONE SET OF “SECOND EYES”
CAN KEEP YOU FROM LOSING 1,000s
I Kept Mike Powell From Losing $45,000
On the First Deal He Ever talk to Me About.
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STARTED IN Dec. 2011
Never Bought an Investment Property
Purchased 31 Properties in 1 year +
Raised $500,00 in Private Money
Over Doubled His IRA
Monthly Cash Flow…. $12,000/mo
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In 1996, I had 25 rentals and they were killing me
I was about to quit real estate for good
It got so bad, I was forced to hire a mentor
That was the beginning of a career that has lasted
18 years
Personal Profile Session Call
So you can have a personalized action plan.
Private Money Coaching Call
So you can have a belief system that says, “You CAN find money.”
My Direct Contact Phone/Text and Email
So you can get help in real time.
Live Weekly Q & A Coaching Calls
So you can get your plan for the next week.
(Homework / Accountability)
Q&A Coaching Calls Archive
(400 + hrs)
So you can build confidence by watching the development of other students over time.
BE THE BANK Online Course (25+ Hrs of Content)
Module #1 - The Beginning and Failing Forward
Module #2 - Put Together Your Goals and Your MO
Module #3 - 4 part Video/Audio Series on Equity Resizing – 6 Hours of in‐depth discussion
Module #4 - Entities to Use as you Build your Business/Building your Team
Module #5 - Private Money and How to Find It - Part 1
Module #6 - Private Money and How to Find I -t Part 2
Module #7 - Private Partners, Hard Money, Getting Referrals
Module #8 - Making Offers – 8 Different Types of Offers and How to Use Each One
Module #9 - Closing Your Purchase Deals
Module #10 - Fix Up or Not
Module #11 - Marketing Your Houses
Module #12 - Servicing Notes – All About Selling Notes and Servicing Your Note Buyers
Sample Documents
So you can be prepared to execute
Free consult with Dave Cole
So you can get started on your self directed 401k
I Answer The Phone
Some mentors want 50% of your deals..
Mentorship programs cost $15k, $20k, $50k+
Can you put a price on freedom?
How Much Did It Cost?
$50K? $75K $100K
Did They Teach You How to Borrow
to Make
…with NONE of Your Own Money?
$25,000
$68,110 ?
If you think Education is Expensive
Try Being Stupid…
It’ll Cost You a Fortune
It’ll Cost You a Career
It’ll Keep You in a Job You Hate - Forever
Pay to get educated
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Books, courses, mentorship
Pay the school of hard knocks
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Every time you step over dollars you couldn’t see
Every time you buy and find problem you don’t know how to
handle
Every time you should have walked away but you didn’t
Every time you didn’t ask that question… the one you didn’t
know to ask
Every time you didn’t include that clause in your contract…
you know that clause… the one you don’t know to include
right now
Personal Profile Session Call
Private Money Coaching Call
My Direct Contact Phone/Text and Email
Live Weekly Q&A Coaching Calls
Q&A Coaching Calls Archives (400+ hrs)
BONUS #1 – BE THE BANK Online Course
BONUS #2 – Sample Documents
BONUS #3 – Free Consult with Dave Cole
BONUS #4 – Free Consult about Credit Repair
BONUS #5 –
No renewal for 18 months
PayPal – Bill Me Later – 6mo same as cash
[email protected]

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