Episode 401

Current Real Estate Market Conditions and the Possible Crash with Zachary Beach

Zachary Beach is an Amazon Best-Selling Author of The New Rules of Real Estate Investing and co-host of the Smart Real Estate Coach Podcast. He is a Partner, COO, and Coach at Smart Real Estate Coach. In September 2020, they released a revised edition of Real Estate On Your Terms, which Zach co-authored.

At the age of 25, Zach decided to leave the world of bartending and personally training and jump into the family business. It was one of the first big risks that he took in his life, as nothing was guaranteed. Plus, he knew absolutely nothing about real estate. Through hard work, in-house training, and implementation, Zach has now completed over 100 deals and growing. On top of that, he coaches students around the country on how to buy and sell property just like his family still does. Now, as a group, they buy and sell 20-30 properties a month with a predictable and scalable system, controlling between $60 million+ of real estate at any one time with little to no money in the deal and no banks involved.

Zach has been in the business for over 4 years and now runs all operations of Smart Real Estate Coach, on top continuing to coach his students and Associates.

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"You can invest 10,000 hours and become an expert or learn from those who have already made that investment." - Jack

Transcript
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Welcome to the REI Mastermind Network, where host Jack Hoss gathers amazing stories from leaders in real estate investing.

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In each episode, our guests will tell you what they're doing that works, what they've tried, that failed, and best of all, you'll learn actionable steps to take your real estate investing.

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To the next level.

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Now here's Jack with another value packed episode.

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We have Zach Beach.

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With us here today and Zach is with Chris Prefontaine.

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So, we we've had Chris on the show as well.

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Zach, I really appreciate both of you.

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Your time and they've got a great offer for everybody, so head over to wickedsmartbooks.com/reimastermind and they're going to give you a copy of the book I'm holding in my hand right now.

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Real estate on your terms, yeah.

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I'm sure everybody is going to really appreciate that, Zach.

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So, I appreciate your time, but.

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You've also written another book too, called the new rules of Real Estate.

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Testing, and I'm going to make sure to have that link in the show notes as well, so head over to REI mastermind.net for that.

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Zach, I appreciate your time here today.

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Yeah, I'm excited to be here, Jack.

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I'm, not gonna lie, I'm welcome back.

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Me and you.

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We're talking offline here and we're going to make this an extremely exciting podcast today.

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Just it's we're just to have some fun here on this Thursday and I'm excited to be here.

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We're actually coming out with another book that we're hoping to go Amazon bestseller.

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Soon enough here that we can be released in April on cell with authority and real estate, so that'll be another fun project that will be released here soon enough as well.

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Well, I'm sure it's going to be a success like your other two, so that that's great to hear.

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So, you know, you and I were chatting about it, we thought we'd spend some time talking about the current market and the turbulence that we're seeing right now.

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So, you know, I'm, I'm, we're not going to spend the time we would typically spend on going through your background.

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I'm going to put a link to the previous.

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Appearance, where we cover all of the.

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But with you and and Chris background and experience in the market, I mean have you seen?

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Anything like this before?

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I'm glad you brought that up, 'cause.

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First of all, my background is boring.

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Anyways, let's talk about the fun stuff, what people actually care about, which is what's going on right now.

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It's interesting.

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It's an interesting dynamic right now and we're thinking of it as more of a perfect storm especially for get involved in the type of real estate that we do, which is creative financing, so.

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That's with buying real estate without cash, without credit, without.

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Banks leveraging people current mortgages that are on their property and then really creating long term wealth with our three-payday system where we create cash now, cash monthly and back-end profits.

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And because we're in this creative financing space right now is the perfect time in a perfect storm for us to continue to ramp up and for.

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The students that we partner with around the country to help them continue to grow and scale their business, not only for now, but for the next 10 to 20 years.

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And here's why.

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Right now, you have 4 balances that are coming to coming to a head right now, where people need to be able to catch up that forbearance if there was a mortgage company or a bank.

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That was going to forgive that into a loan modification.

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They would have already done it already.

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Let's be serious.

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So, you now have people 'cause we're buying real estate right now with people that have rears for 10,020 thousand 30,000.

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And the truth is they're unable to now catch up that forbearance.

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So now we have the ability to go in and really help people be able to help sellers really be able to not come out of this fullys caved in and really with bumps and bruises because we can go, and we can go ahead and catch up that arrears and then take over the property through one.

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Of our options.

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Also, you have moratoriums being lifted now as well.

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I can tell you we've been affected just like everyone else.

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But I know that there's some large-scale real estate investors out there or even some small mom and pop rail stay investors out there that have had rentals and now have gone from the happy real estate investor to the tired landlord and a significantly short period of time.

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So, I'm seeing portfolios now come on the market as well and those.

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Investors are still looking to get the get the cash flow or to still be involved in real estate.

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They just don't want to be the.

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Landlords anymore?

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If you go ahead and you go into any type of database and you try to search a list of landlords when you look up tier landlords.

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It's about 15.

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Years I can tell you that the mindset from these landlords right now is significantly shorter now to becoming tired.

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So, we have the ability to structure our deals with owner financing or with one of our other options where we can still provide cash flow to the to the current seller and be able to make some money from ourselves.

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As well, so that way they can.

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Get the benefits?

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Of being a landlord without the hassle.

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Of the tenants' toilets or trash?

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So that whole just that's just one piece that whole situation of look COVID starting we're hoping crossing fingers come into.

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And so now the banks and everybody else are saying, all right, well, let's try to shift back into some sort of normalcy, which means that now they're going to start come collecting.

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So that's one piece.

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The second piece is now you have the interest rates that are supposed to increase at least three times.

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That's what the government has openly said they're committing to.

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So, the buying power of your traditional buyer right now is going to significantly shrink over the next 12?

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Months, which causes a couple things.

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Number one, it causes buyers that want to become homeowners to now potentially go back in rent.

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So now they may need our type of program which is for our rent to own.

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We work with buyers anytime, no to qualify for their loans and that usually comes out do they need to increase down payment or increase credit.

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And then you also now have the flip side, which is more houses going to stay on the market.

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So that means that they need more creative solutions, and the expectation of that seller is still going to be, I'm going to get this high price and it's going to sell in less and.

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It is.

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But the market is going to show them that that's not the case anymore.

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So now our creative solutions are going to become more.

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And more prevalent.

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Easier to acquire, less amount of phone calls, less amount of prospects.

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Those model leads in order to acquire those deals.

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So those are just a couple, couple pieces there that are now forming into what the market is kind of.

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Doing in a re correction.

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And so, and.

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And something I've never seen these things before.

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My partner, farm law got crushed in.

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Eight, we don't believe.

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It's going to be that extreme.

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But what we do believe in is being in a risk averse environment where we are not personally guaranteeing debt.

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So, if the market shifts were not, you know, scrambling and then looking at 30 plus mortgages, 60 plus mortgages and we're all personally guaranteeing it or not, we leveraged ourselves in the position with using these creative methods.

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But also, what we're seeing is the opportunity to now acquire long term creative financing deals through the means of subject to existing financing, which means you're leveraging the current financing on the on the House.

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In owner financing to create long term wealth and to start building out these terms that are that are not three to five years, they're ten, 20-30 years.

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So, as you know Jay, if you bought a type of property now and you got 20 years to make a decision and exit, then you're going to go through multiple cycles anyways and the and the truth is what?

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Happening is the top of the market now and then the top of the market in 10 years from now will still be higher than the top of the market now.

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So, you're still going to make out, plus you're getting the benefit of principal paydown and cash flow.

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So, it's really an amazing time to get involved because you're going to start to see the psychology of the seller and the psychology of the buyers start to shift, which means that.

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Now they're going to really need a creative solution.

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During this market.

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So, let's start back with that individual on the you know we talked about you talked about the individuals that are probably going to go through forbearance and and they're having some problems they're unable to.

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Renegotiate a new mortgage with the bank.

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So, in those situations, what are you doing there?

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How are you structuring those in a creative method?

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Because in a lot of those situations if they weren't able to refinance now, they maybe they don't have the wherewithal to be able to sell it to you in the.

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In a in a creative structure way.

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Yeah, see, that's the unfortunate part, right?

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You have so many people out there that are either too embarrassed to raise their hand or to even look for help, which is extremely unfortunate.

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So, I hope that maybe some of those people are listening to this podcast.

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Or maybe entrepreneurs out there or want to be real estate entrepreneurs.

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Or listen this podcast and realizing that.

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Hey, if you.

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Can get involved in that type of space and start screaming it from the rooftops and start working your business that you can start helping more and more people 'cause that's really what this creative financing space does.

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It gives you more levers to pull on.

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And gives you the ability to really do.

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Any type of deal out there?

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There, as long as it makes financial sense for you, the investor.

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So, the unfortunate part again is, is that we have to go look for people and we're starting to do our best with some outbound marketing to say, hey, I know that this isn't always the best situation right now, but if you could reach out to us, we'd love to help you.

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So as soon as we do get ahold of somebody, though, it's not.

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Very hard for us to strategically put this together because we have so many levers and so when I look at just a common deal.

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If it's.

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Like the house?

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Is just in arrears.

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Uh, But the house is still worth uh.

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You know what the market value is and there's still some equity involved.

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It's really easy for us to be able to, you know, structured deal with the seller where we catch up the arrears, we transfer title, we take ownership.

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And then if there's still equity in it for the seller and it still makes financial sense for us, we could postpone that equity and give it to him later down the road or in like an installment sale where they're getting a portion over time if there's no equity in the deal.

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We really have to make sure that we're buying it correctly and that we're going to hold on to this for a long time to let the principle go down and.

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The appreciation of the market.

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But at the end of the day, if there's a solution that we can provide, then we'll certainly do our best to provide it.

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Yeah, and then.

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Let's talk a little bit about the frustrated investors out there, which I frankly I have to admit I'm one of those.

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At a certain point you go through what we have over the past two years, people taking serious advantage of the moratoriums and stuff that we're going on.

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How can you not be frustrated?

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Yeah, it's unfortunate.

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Uhm just like any other government law, right?

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It or any government rule, they're doing it for the right reasons most of the time.

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But then there's an after effect, and I'm glad that they put in place for the people that needed it.

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It's unfortunate for the people that didn't necessarily.

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Need it, and we're choosing to use it.

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Uh, at the at the root of the effect of the landlord who is providing housing 'cause at the end.

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Of the day as it.

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Is an investment that we're making here by having long term rentals.

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But we are also providing a lifestyle and housing for people that that need a place to live, so it's unfortunate that some people take advantage of that.

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It happens.

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So, what we're?

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Really presenting as far as an opportunity here is depending on the financial structure of the of the property.

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Meaning does it have a mortgage on it or is it yeah, or is it debt free?

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Depending on that, we could potentially structure a type of transaction where we can either close on it or take control over it.

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Through a lease purchase or lease option and then if there's enough cash flow spread, we could potentially split the cash flow in spread because we're looking at as a long-term play and saying, hey, we can handle some of this frustration.

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Patient for you short term because we see the long term and then in the meantime you as being the landlord are collecting a maybe a smaller check than you're used to, but it is a check and you're not dealing with tenants.

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So that's another way for us to come in and structure some of these deals and really especially these free and clear portfolios or you know.

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Big or small portfolios or onesie twosie houses.

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Those are really easy for us to structure because now the landlord can become the bank.

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But she doesn't want to become the bank.

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You now, you now don't have to worry about maintenance, repairs, taxes, insurance.

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We're really going to create a structure of a mortgage with you, the landlord, so.

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That way you can.

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Go ahead and collect monthly mailbox money while we handle and control the asset.

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So that way we're benefit for again for the long-term play and.

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You're benefiting from that, that cash?

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Flow on the day-to-day.

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Yeah, that that was a little nugget that you just kind of skimmed past there regarding.

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You split the essentially whatever the balance, whatever is above and beyond what your underlying debt is.

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Is that how I understand or is or do you typically set a uh?

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A specific payment to that to that original owner.

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Yeah, good.

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Yeah, good question.

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Uh, so every deal is structured differently.

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When you're, when you're working with tier landlords, they're used to collecting cash flow, so making an assumption.

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In here, but what tends to be most important to them is the cash flow.

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It's not the purchase price of the asset.

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It's typically not even the term of the asset, meaning when we when we structure deals with sellers, there's typically three major pieces.

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One is what's the purchase price or the amount of equity we're locking in?

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What's the monthly payment and?

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If there is any?

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And how long of a timeframe do I have before I need?

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To pay off the seller.

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So, so what tends to be the biggest challenge or the biggest, the most important thing for a seller is how do I still get cash flow on this?

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So, depending upon what the if there's a mortgage or there's.

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No mortgage, we'll.

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Be able to determine whether or not and or how much we can give to the seller on a month-to-month basis.

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Because it needs to make financial sense.

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For us.

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To want to continue to maintain that property.

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That makes a lot of sense.

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I really wanted to point the fact out that you and you, you and Chris are really great at this.

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You know when you say creative financing.

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It does really boil down to on an individual level and you really take the moment to not to understand the seller and their end goals, I mean, and then and then cater that, that offer if you will, to what they're looking for it.

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It's just a far better chance of getting accepted, right?

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Jackie, you nailed it.

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Uh, I'm glad you pointed that out.

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You really nailed it.

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Because this is something that we continuously teach our students and that is you have to dig past surface level motivation and spend time on deep level motivation.

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Meaning you really have to understand, take the time, have the patience to.

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No, all of the moving parts, that's how you structure deals.

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You know, you hear it consistently on the media, on TV, on every single podcast, the markets so hot nobody can do deals.

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And then they look at.

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Us and say.

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And then you expect the seller to finance the property for you or to not take a down payment, wait for their cash?

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Uhm, it and?

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Then do something creative with you guys.

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There's no way people just they just everybody buying these properties cash.

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And at the end of the day, that may be the fact in some cases.

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But in any single market out there, there are sellers that need challenges solved that the traditional market can't solve.

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And the only way that you can know that is if you spend the time to understand all the key dynamics of the deal structure or of the seller's motivation.

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We look for a couple different things.

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But it primarily boils down to.

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So, what's the motivation or the current challenge the seller is facing and really understand that not I'm relocating, no.

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Why are you relocating?

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What is that going to do for you?

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How is that going to?

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Affect your family.

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Because when somebody relocating, you could look at surface level and say, yeah, they're going to put on the market, they're good, they're just going to leave.

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Or you could say, why are they relocating?

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Oh, they're moving for this job.

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Oh, they already have another house?

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Oh, that means that they're going to have to pay 2 mortgages.

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Oh, is that OK with them?

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Can they afford that two mortgage payments?

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Do they, are they moving across the country now they have to deal with long-term selling on this property where a creative structure could come in and we could eliminate 99% of those other challenges?

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But until you understand that deep level motivation, then you're never going.

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To be able.

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To do a deal, it's all about creating clarity with the seller.

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Of how you can help and how it really bridges the gap between where they are and where they want to be.

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And that's how you do deals in any market doesn't matter. Hot, cold, $1,000,000 price range, $100,000 price ranges.

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It's all about truly understanding that and then knowing the levers you can pull on to create a successful transaction.

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For everyone involved.

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This is kind of a mindset thing on 2 aspects, right?

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You have the your student.

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That has to have a mindset change, right?

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To make sure that they understand that this is even possible.

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But you have to have, let's start with the mindset that you have to change or educate the seller of how this actually works.

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So, talk a little bit about that type of conversation around what you have to do there.

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You don't want too necessarily.

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Convince them, but you have to help them come to the realization that this is an option.

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Yeah, I have a vision that there's this big picture down the road that there's the ability to one day.

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Change how real estate is completed.

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Like, meaning completely take banks out of the.

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And it's not that I want to take Realtors out the picture that may evolve.

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Into a different position.

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But if you think about the way things are trending up and the way disruptive companies have come in before, like, what did Airbnb do?

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They took away the power from hotels.

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What did social media do?

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It took away the power from the media.

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s where it can go back to the:

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And if that's not capable, how do you then go ahead and grab assets like crowdfunding or private equity and get into a space where now you can go ahead and finance?

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Your neighbors which.

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Could be a very interesting dynamic as the next years come, especially with cryptocurrency and things like that.

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But I'll digress there, and we'll save that for another show.

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So, you're right, the biggest challenge after creating and sustaining belief with your with the associate to know that, hey, I can leave my current job and become a real estate investor and create creative and utilize creative strategies in order to build that business and create a fantastic lifestyle for myself.

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But as soon as you can do that now, it's how do I now show and change the perspective of how real estate is done to the seller and the.

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Both of them.

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Because so first, when you go to a seller, the whole approach is, hey, I understand you've been taught this way.

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I'm going to show you that there's a completely different way that we can get this done and in a majority of the time can actually give you additional benefits that you probably didn't know existed.

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Like, let's look at the traditional means.

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The selling we're all taught that if you're going to sell a house, you go to a real estate agent.

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You then, which typically isn't always the best real estate agent.

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It's the one that you you're friends with, or your cousin, or, you know, your neighbor.

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And then you ask them, you say, hey, can you list my house?

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And then they.

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Go out and they put it on the market.

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And then typically what happens, you're going to pay a realtor fee or Commission of anywhere from 5 to 6% on average.

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I know we've been in a crazy market right now. On average, you're going to sit on the market about 90 days, 90 to 180 days.

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Is and during that time frame you and your realtor going to have multiple conversations on why you should lower your price in order to get in line with the market now?

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So that's your typical process and then we have showings every week.

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It's always has to be show ready to see.

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I got a two and a four-year-old.

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It's impossible to get my house show ready.

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Especially every single weekend.

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Adults house, it's just that's reality, so.

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See, now we all work at home and everybody you know and everything going on schools at.

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Home there at home it's great.

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So then, so you.

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Have this, this model that has been created and now we now we now approach the seller, and we say, look, there's a different way this model can be created, but the only way this doesn't work for you, and I want to really keep all the listeners in this disqualification model.

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It's on a qualification.

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Well, it's a disqualification model.

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When we look at this model, we say alright, the only way this doesn't work for you Mr.

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Seller is if.

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You need all of your money today.

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And you want full price?

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If you anything other than that we could try to, we could potentially create.

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I think if you.

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Don't need all your money and you're already in a position where you're in a good financial situation and you can already move without going, without needing to access this loan or without pulling capital out. Well then, we can help you create more profit in this House than the traditional market cap. It's guaranteed it's happened over and over again, 5 to 15%.

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Or on a consistent basis, then the other piece is alright.

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Just go in the complete opposite extreme and we can help all in between.

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Hey, look, Mr Seller, you're in forbearance right now, or you're in a position where you need debt relief.

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You can't pay your mortgage right now, or it is killing you to pay your mortgage.

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Right now, now if that's the case, if we can come in and take over any responsibilities, take over this property and we can still make sure you get equity in.

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This deal.

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Without the wholesaler coming in.

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And and I'm just, I know I'm hitting on different real state niche aspects.

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Right.

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That's not that I disagree with them.

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We all fit in an ecosystem, but then you also have the other.

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They come in, they say, well, the only way my business model works is if I pay $0.60 on the dollar.

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Alright, well I'm telling you that we can avoid both of those and you can still get a good price on your property.

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We can structure something as long as you're in a position to potentially wait for that equity, so we can solve challenges on between.

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But as you can see, that's the, that's the major thing.

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It's about creating clarity.

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So that way the seller understands that there are other options out there and there's not just this.

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One model that you've been taught your whole life, but.

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But you have all these others and that's the game that we live in, the nurture process of really spoon-feeding sellers so that way they can start to see there's a.

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Different way of doing things.

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So, you know, and then on the flip side, you also have this mindset shift for your students.

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You know a lot of people and it's almost, it's probably fun in your world to actually see somebody get that house under contract for the first time under a creative financing solution that benefits both.

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30S and the light bulb.

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Probably you see a lot of light bulbs going off that this is actually possible.

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That is a major focus that we have inside.

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Our community, we.

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Have what we call time to 1st deal, something we focus on because we know that in the real estate industry there is a huge crevice, a huge gap.

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That happens because what happens in real say or in any type of coaching.

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Or any type of new industry, especially real estate, though, is they go to a seminar, they take a.

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Course, and then they do nothing, and they get no results.

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Or they do things, but they get no results.

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We know that if we can get them to a point where they can do deals and do deals more quickly, they become real estate investors.

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Like you said, a light bulb goes off and all of a sudden now they can start helping.

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Their neighborhoods, their towns, their cities, their States and really change this mindset and start helping more and more sellers that are in in a challenging situation or in a great situation that they want to maximize their.

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Off and on and really help buyers that now need time in order to qualify for loans and they just need an alternative route to get there.

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The guy was one of those buyers. I was self-employed. I just had my son. He was just under one years old. Me and my wife were trying to move out of our city and.

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Into the suburbs and.

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I couldn't go qualify for a loan because I was self-employed. I need 24 months of seizing the show.

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So, I know the other side, I see the other side as well and that's really when the students.

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Lightbulb goes off.

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It's when they get a property under agreement, they write check one.

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Great, I know I can.

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Buy houses this.

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Way then when they place a buyer in the house and they collect a check, but also, they see the emotion that comes in with your now giving somebody the opportunity to become a homeowner or the American dream and they need a different pathway and most people.

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Shut them out now.

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We already provide that pathway.

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That's what gets him motivated.

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That's where the flywheel starts going.

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Like, OK, now I gotta go out and get to get more homes.

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So, I can help.

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More people and build this up and of course.

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While you're doing this, you're creating or utilizing our three-payday system.

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You're getting paid well, so now the bank accounts going up, so burnout is less likely to happen, and you're continuing to grow and evolve as a real sound spinner.

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Yeah, no, that that's just great to have that situation where you can.

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It's got to be very rewarding.

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But you know, one of the things that I wanted to point out is, is a couple things.

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Well first of all is I find it really refreshing and interesting that you use the words helping people their towns in their states.

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And that is a mindset and mentality that as investors we really have to get into because I think you start in real estate investing feeling almost a little guilty about doing what you're doing as if you're taking advantage of some of these people.

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But really, what you are if you're if.

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You don't help them.

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What is the end result could be in?

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A lot of these situations, so it can be get pretty nasty for them.

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You are truly helping them.

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Their neighborhood, their community and everybody involved.

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Yeah, I couldn't agree more.

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Or, uh, a commonality of our associates, the people we partner by real estate with a commonality is that they want to help people.

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They want to be able to make a difference and and that's what creative realistic can really do.

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You know you can choose to do that.

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It can really make a major impact because.

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The sellers that you're looking, that you're working with, even if they could sell traditionally, have a challenge in that you're solving and that's rewarding itself.

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You're able to show somebody a totally different perspective.

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I was working with, and we just purchased a property up here in Connecticut. I I'm located in Rhode Island. Our family's been doing real estate in southern.

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New England for a long time and then we help people go national as well.

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But so, we're up here in Connecticut now speaking with this, the seller and his real choices were to either short sell the property and come out of pocket damages credit or to basically pay a Commission that was going to come out of pocket as well.

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So, there was a difference of about 25 to $30,000 that he was going to give up.

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In some way former fashion.

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And he was a banker, too.

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He had he had banking experience for 20 years and had no idea that these creative methods existed.

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So, when we approached him, he was moving across the country to be closer to his grandchildren in in Washington.

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And so, when we approached him, we were able to save this guy roughly 20 to $25,000, plus he was able to move more quickly.

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To Washington because of the way we come in and structure and then take over the properties we're not waiting for.

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Or:

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So just one of the examples of even the people that are in the financing world, in the real estate world, look my father-in-law was a broker owner for 18 years. Had no idea.

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These sets of transactions existed.

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Until we got.

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Involved and so we're really able to make a giant impact and then we're able to place a fantastic self-employed buyer in that property who's been making all those payments on time as non-refundable deposits on time.

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I'm working towards becoming a homeowner. It's got about a 36-month option on the property, but we expect them to cast.

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But even sooner.

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So, it's just amazing to see how it consistently comes to fruition and how you're able to help both sides really become successful in this transit.

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Right.

::

Well, I can share a little bit about, can you give us a like a recent story you talk about you, you measure the success on getting your first deal to give us an example of one of your students that have recently had that first win?

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Yeah, I love a lot of talking about our they're actually our head coaches now, so not as recent.

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They've done about 18 to 20 deals.

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Now, but it's just amazing to watch the growth of them and now they're helping people across the.

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Country do deals.

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So, Greg, Greg is a, he comes from a trucking background, so he deals with logistics, actually drove a truck for a.

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Long time then.

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Brought into management and then controlled logistics and then eventually got burnt out from the corporate world and was.

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Looking for a way to create a lifestyle.

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Uh Caimi, his wife, uh, their partner, are their partners in this.

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She was a nurse.

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There's nurse for a very long time again, an industry that is draining, especially nowadays.

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I was very grateful when she started telling their stories, especially 'cause.

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She was able to get out of it before COVID because that has been something that's been dramatically.

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Crushed, right?

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Now, so they were, so they got involved and they were they're working both their jobs at the exact same time while they were trying to do this first deal.

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And that tends to happen.

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A lot with.

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People, and it took them just over about 120 days to do their first deal. But as soon as that hit, the light bulb went off.

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See, they're out in Ohio, so the.

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The deals that they're doing in probably in like the 200,000 or $300,000 range.

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But that nonrefundable deposit of about 10% down dramatically changed their lives. It's about $20,000. So, for most people getting that in one chunk of change, especially when you're working in a corporate setting changes your perspective on going wow, you tell me if I just do more of these things that I could have 10 times.

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Better lifestyle than what I'm currently living.

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So, it's just always.

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Really great to see those light bulbs go off.

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I'll give you give you one more.

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I was working with a student of ours down at Atlanta.

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He's his major goal is to go ahead and move out to Jamaica.

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Again, 'cause, that's what family is.

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He's in it.

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So, the complete opposite of what you would think of real estate investor is.

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Like personality wise, all of that, never no sales.

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Parents, he comes across and gets his first transaction and it was about a little bit shorter than that. It was ran 100-day range.

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That deal we ended up buying from two brothers that were about to be in the Airbnb business, but for some reason it wasn't able to work for them, so they need that support there, both long term.

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were going in the hole about $:

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We're able to go ahead and structure that place a buyer in the property that buyer actually just cashed out that that house.

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So, this is.

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About two years ago, just cash out that house that buyers at.

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Self-employed was in the one of the industries that got hit by COVID, but now has regained it, recouped it and went out.

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So, I was another about all of our deals. If we mash them all together across the entire country, there's roughly $78,000 all three pay days. So, as you can see.

::

Just doing one of these deals can start to build some.

::

Wealth, if you're.

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Just doing a couple deals a year, you start to really build some well.

::

So, it's just really cool to start watching, watching people grow from a mindset, skillset, system standpoint, because then they really start to morph into real estate.

::

Investors start really making an impact on the world.

::

Yeah, no, that's it's.

::

It's always such a great thing to hear those individual stories just make it far more concrete.

::

Sweet, you know, and and we're kind of running a little longer than I normally would hear, Zach, but I wanted to take a moment, and have you talked to this concept that you continue to bring up is the three big paydays?

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In your in your system, what do you?

::

Mean by that?

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Yeah, it's a system that we trademarked called A3 payday system. So, when you're structuring a deal, when you're buying it creatively based on one of our options and go ahead, download or go ahead and put in, get them.

::

Book read the book cover to cover.

::

We talk about all of our all of our systems here, but in all of our options.

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So, once you either buy or control a piece of real estate, you then, so you're buying it or controlling at a certain price.

::

You're then a certain monthly payment and then a certain term or timeframe.

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Then what you're.

::

Going to do is you're then going to go ahead and sell it to a buyer.

::

Typically, it's a rent to own model or at least purchase model that we do.

::

So, your buyer comes in with a non-refundable deposit that's paid A1, typically around 10% of the overall purchase price.

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You're buying it and you're selling it for a higher price 'cause you're able to sell it for a premium because the buyer needs time.

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So, you collect the non?

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Refundable deposit that nonrefundable deposit does come off the.

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Purchase price it is credited.

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When they go and, exercise and.

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Go get their own law.

::

Then your payday 2 is everybody's favorite word in in real estate cash flow, that's your payday 2. So, it's going to be the difference between what you're collecting from the buyer and what you're either paying the mortgage or the seller.

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Then your payday 3 is when the buyer goes and qualifies for their loan.

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There's a difference in premium, typically leftover.

::

And then there's also you've been benefiting from the principal pay down the equity that's being built in the house.

::

You're then going to benefit from that at the end.

::

That's your payday 3, the principal and the equity added together.

::

And that's what creates your 3 pages.

::

I appreciate you clarifying that.

::

And again, if you want more details and the book that Zach is talking about is the real estate.

::

Your terms.

::

And now I'll hold that up if you're watching it on YouTube, but head over to wickedsmartbooks.com/REI mastermind in order to take advantage of the free offer that Zach was bringing up. Let Zach. This is great. Always a great conversation. I hope you'll consider coming back again.

::

Sometime, but before I let you go, is there a question or a concept you wish we would have covered here today?

::

I'll just end with this.

::

There's a very particular model that we do that I believe separates our students and really separates the success rate of our students compared to most of the real state.

::

Industry, and that is?

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Because we focus on really 3 pillars, it's not just about real estate investing.

::

We talked a lot about mindset today.

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When all of our students come in, our associates that we work with come in.

::

We gotta focus on their mindset.

::

We get a value of what their beliefs are, their habits, their fears 'cause.

::

You'd be surprised when you enter into the world of real estate or entering the world much entrepreneurship.

::

How all of that flood to the top, and now you have to be able to decipher and figure out how you're.

::

Going to best.

::

Move forward.

::

So, we want to work on all of that.

::

Back then, we work on the skill set where we focus on the seller skills and the buyer skills in controlling your portfolio, all the skills.

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Surrounded with that.

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We have this concept called, well, stacking.

::

So, it's not just about doing one deal, but as you build out your portfolio, we have certain skills and techniques that we use in order to continuously.

::

Gain more and more profits from the deals that we already have in.

::

The portfolio.

::

So, this is the reason why.

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Right, people come from the corporate space, create a business and can eventually get off the treadmill.

::

This isn't let's get another job.

::

This is how do we create a sustainable long-term business?

::

So, then the last piece comes in and we're talking about our systems that we create that long term sustainable wealth generating business where we have our lead generation systems.

::

And there are lead, nurture and follow up system.

::

And then of course, we want to bring our Dream team, we offer our Dream team to all those inside our community with your legal in your bookkeeping and all of that in your finance department.

::

That way you have those systems set up, because the idea is that as you continue to.

::

Grow, we continue to.

::

Look at every aspect, each one of those because what it takes.

::

For you to get from zero deals to 10 deals or $1,000,000 let's say is not gonna be the same thing that gets you from a million to 10 million.

::

It's just so we have to consistently go back and reevaluate and help you move the needle forward on each one of those aspects.

::

And that's what we truly believe is going to help you become not only a great transaction engineer or really good at doing creative deals, but for you to make a giant impact by consistently building out a fantastic business that helps buyers and sellers and then many other things as you become wealthy in your own right.

::

So, I want to make sure we hit on that today.

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Just so people have a clear path.

::

Well, this was great again, Zach, you're welcome back anytime.

::

I head over to wickedsmartbooks.com/reimastermind, and take advantage of what Zach and team are offering you there.

::

So, thanks again, Zach.

::

Thank you.

::

Have you learned at least one actionable step to incorporate into your real estate investing?

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If so, please consider returning some of that value.

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By leaving a positive review subscribing to.

::

Our YouTube channel.

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Or joining our growing network on Facebook and Twitter, you can find links to all of our social media accounts.

::

In the show notes, see you next time.