Epic Real Estate Investing - Creative Real Estate Financing Case Study | 1190

Episode Date: March 31, 2022

Today, Matt is joined by Christina Lopez, a newer REI Ace private client who already closed a couple of deals using creative real estate financing! Tune and find out how Christina made so much success (including quitting her day job) in little as 90 days! But before that you will learn: How to create a big boost to your business and build your portfolio by using creative real estate financing methods How you can use Facebook to advertise a real estate property and generate leads   Let’s go! Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. Creative real estate financing methods can provide a huge boost to running your business and building your portfolio. If you only knew what they were. Well, I'm going to let you in on some right now. You ready? Let's go. Welcome to the all-new, epic real estate investing show. The longest running real estate investing podcast on the interwebs. Your source for housing market updates, creative investing strategies, and everything else you need to retire early.

Some audio may be pulled from our weekly videos and may require visual support. To get the full premium experience, check out Epic Real Estate's YouTube channel, EpicR-E-I.TV. If you want to make money in real estate, sit tight and stay tuned. If you want to go far, share this with a friend. If you want to go fast, go to rei-Ase.com. Here's Matt. So do you need some money for your next investment deal? Maybe you are just starting in real estate or perhaps you have been investing for a while, but

your portfolio is now at a standstill. Regardless of your situation, there are several creative real estate financing methods that can jumpstart your real estate career or expand your existing one if you know where to look. And I've got several creative ideas to share with you. For starters, as the name says, creative financing, you're limited only by your own creativity. But these 10, or a combination of any of them, will get you start. And by the way, if you're still looking to get that first deal under your belt, I put together a free training just for you to help you get that first deal done and then earn

$5,000 a month flipping contracts and properties working in as little as one hour a day. And you can access it at matsfreetraining.com. In real estate, the term creative financing is used to describe any type of financing arrangement that doesn't involve a conventional mortgage. Now, the most basic definition of creative financing is an unused. or innovative way of structuring a loan to buy real estate. And what most people don't realize is that anything goes. I mean, a seller has the right to sell their property for whatever they want for it.

If they'd trade their house for a bucket of hot wings, they can do that. And that would certainly be creative. Creative financing has been around for as long as people have been buying and selling real estate. But it became more common during the late 70s and early 80s when the 1973 oil embargo crisis plunged the economy into a period of hyperinflation, and the Federal Reserve attempted to counter the hyperinflation by raising interest rates. Prior to the oil embargo,

mortgage interest rates hovered right around 7%, but they jumped up to 17%, pricing most homebuyers out of the market. I mean, a payment on a $200,000 mortgage at 17% would be right around $2,800. On that same mortgage at 4%, you're looking at just under $1,000. Big difference.

And because it was more difficult to qualify for and even afford a loan, the need for creative financing was born. And if you're ready to buy that next investment property, but traditional banks are accusing you of being a less than perfect candidate, whether it be because your credit score is low or you don't have enough in the savings account to afford a 20% down payment, the following 10 creative financing methods could be exactly what you're looking for. And these are only a starting point because the sky is the limit when it comes to creative

financing. The first one, a cash out refinance. A cash-out refi for real estate is a transaction in which you tap into the equity of your home. You borrow enough to pay off the mortgage of your home and then pocket the difference, which frees up your funds to invest elsewhere. What's more, a cash-out refi happens to be one of the best real estate financing options out there if the numbers work. A real estate cash-out refi is different from an equity line of credit in which you add a second

mortgage to your home to take out cash. The interest terms on a cash out refi are much more favorable than a traditional home equity loan. And unlike borrowing money from a hard money lender, the interest on a cash out refi is tax deductible. The risks with the cash out refite are that your mortgage term gets reset. The 30-year clock starts over again. And if something unforeseen happens, such as an illness or job loss, those new monthly payments can be challenging. But if you have a great opportunity and needs some money to make that opportunity happen, it can be a great source of investment dollars.

And second, the home equity line of credit, or commonly referred to as a helock. Unlike a cash-out refi, with a helock, you don't pay off the original mortgage. Instead, you borrow against the value of your home, up to 80% of the home value minus the amount of the mortgage. He-locks generally have a draw period, typically lasting 10 years or so,

and a repayment period, often lasting no more than 15 years. So, when would you use a he-lock and not use a cash-out refi? Well, a HELOC is perfect for doing repairs, either to your primary home or a rental property. Also situations where you don't need huge sums of cash for an entire property purchase. Maybe you just need $10,000 to improve a bathroom in your income property. If you need more, and for a longer term, option one, the refi would probably be the better option. Number three, a personal loan. Though a personal loan doesn't offer the same great tax benefits as a refi or a HELOC, there are some compelling reasons to consider it.

For one, you likely won't be required to put up your property as collateral. In many cases, you aren't even required to put up any collateral at all. And with the repayment term, much shorter than a mortgage loan, five to seven years is a good benchmark. You're going to end up paying a lot less interest over the long term. However, with that shorter repayment term comes a much larger monthly payment. You most likely have to have excellent or, at the very least, good credit to qualify for a personal loan. And don't ignore this if it sounds like, no, duh, because it can be an effective real estate method that's needed to get that particular deal done.

Number four, seller financing. So if you ever hear an investor talk about buying something on terms, they're referring to seller financing. As any seasoned investor will tell you, the ultimate goal is to use as little of your own money as possible and instead rely on other people's money. Seller financing or seller carryback is an excellent example of this philosophy. In this method of real estate creative financing, the seller of a property agrees to hold on to the note of purchase. You then pay them a monthly payment until the note is paid off.

I mean, think of it as an I owe you to the seller. Now, this is easiest with sellers who own their homes free and clear and don't mind foregoing a bit of short-term cash for some long-term streams of passive income. Motivated sellers who are underwater with their mortgage and or payments, probably not going to work here. Cellar financing happens to be my favorite creative strategy in the toolbox, by the way. Happens to be most of my private RIEIA's client's favorite strategy, as many of them are building cash-flowing portfolios using almost exclusively seller financing. Number five, the lease option. A common school of thought among real estate investors is that it is always better to buy than rent. The problem with the sentiment is the word always, because it ignores

the fact that lease option contracts are a very viable route to buying property. Real estate investors of all experience levels may occasionally encounter a property that they're not ready or sometimes able to purchase, which is where lease option contracts can make for a perfect fit. A lease option property allows investors to work with property owners so that they can purchase the property at the end of the lease agreement. This allows investors to build equity through monthly payments and provides landlords with the opportunity to generate some passive income. Depending on the specifics of the contract, a portion of the rent payments will then count towards the down payment on the property. The most prominent challenge investors face when

searching for a lease option contract is finding the right landlord. to work with. This setup, it's most commonly introduced when an owner has difficulty selling a rental property. But that's not to say it can't happen under other circumstances as well. Investors hoping for a lease option scenario should be prepared to shop around and know how to approach the conversation when they find a potential property. When involving the seller in your creative financing, whether it be seller financing, a lease option subject to or a rack, it's all about the presentation. And this is something I work extensively on with my private REIACE group. If you'd like some more information on what it would look like to work together one-on-one on your presentation and overall business,

go to REIASE.com, answer a few questions, and then you can pick a time for us to hop on the phone and just brainstorm some ideas about you and your goals and specifically how to achieve them. Number six, self-directed IRA. Investors with existing retirement savings can consider yet another creative way to buy real estate through a self-directed IRA. This technique allows investors more control compared to other retirement options and several tax benefits. It is worth noting that all returns must flow directly to the IRA instead of straight to the investor. Depending on your preference, this can either be a pro or a con. What is important to remember is that a self-directed IRA can allow investors to amp up their retirement savings,

one property at a time. While a self-directed IRA is largely beneficial, there are always risks involved when it comes to investing. If you don't already have an IRA, the setup process, It's relatively straightforward. Research different options and closely examine the fee structures involved, though. You want to make sure your cash flow covers your accounts required costs and with enough returns left over to be lucrative for you. Number seven, private money. Private money is what I like to refer to as relationship money due to the relationship between the lender and the lendee. A private money loan can come from your friend, a family member, your neighbor, a coworker,

or essentially anyone else you feel comfortable asking for money from. Here, you'll be able to negotiate more flexible loan terms with your private money lender because the entire transaction is less business-oriented. And here's a tip for you, though, especially if asking someone for a loan sounds a little daunting. Rather than asking them for a loan, offer them an opportunity, an opportunity to make more money with you than what they're likely doing with their money at the moment. Number eight, hard money. A hard money investor frequently was at one time a private money investor.

They liked the results, and they just decided to make a business business. out of it. While the terms of hard money can vary greatly from loan to loan and lender to lender, there are several traits that almost all hard money loans possess. Firstly, the approval requirements for a hard money loan are much less stringent than that of a traditional lender. The lendee's income does not have to be verified, nor does really their credit score. Secondly, hard money loan stipulations can vary. Term lengths are typically shorter, interest rates are typically higher, and hard money can often fund a deal in just a few days. Lastly, hard money money lenders understand the process of investing in real estate better than traditional lenders

since their specialty is real estate. Instead of analyzing your credit score and asking for references, hard money lenders will review your rehab blueprint, your scope of work, and the ARV to determine loan terms. Basically, they look at your deal to determine whether or not it's worthy of a loan. Nine, FHA loans. These are backed by the Federal Housing Administration, and FHA loans are perfect for first-time homebuyers who don't qualify for a traditional loan. you are still technically borrowing from a conventional lender, this loan allows those with credit scores of 580 or above to pay as little as 3.5% for a down payment. Now, keep in mind, you'll initially have to live in this property to qualify, but when you're ready to move, it can become

a super income property for you. And number 10, crowdfunding. This financing strategy is relatively new and allows investors to use money from the public. You know, several well-known crowdfunding platforms like GoFundMe and Kickstarter authorized users to raise money for anything that they want. However, a website light feathered the nest is a crowdfunding platform designed specifically for real estate investors and homebuyers. Create an account, make your case to the public, and just wait for the funds to roll in. A traditional mortgage can be a great way to purchase real estate, but a creative way could be and often is much better.

If you'd like to take that first step and dive deeper into creative financing, I've got a series of free lessons that break each one of these methods I mentioned into greater detail. You can get them all for free at creative financing.us. We'll be back with more right after this. Boarding for flight 246 to Toronto is delayed 50 minutes. What? Sounds like Ojo time. Play Ojo, great idea.

Feel the fun with all the latest slots in live casino games and with no wagering requirements. What you win is yours to keep groovy. Hey, I won! Beal the fun Where you go Boating will begin When Passenger Fisher is done celebrating 19 plus Ontario only

Please play responsibly concerned by your gambling Or that if someone close you call 18665331-260 or visit Connexonterio.ca Hope is not a financial strategy Let's get back to work How to generate leaves from Facebook for real estate This is a common question because

most people, they get it wrong But those that get it right It's a gold mine for them because they do a few things consistently that attracts motivated sellers like moths to a flame. And I'll let you in on what those things are. Okay, you're looking for sellers, right? And you may want to consider creating real estate seller leads with Facebook ads or meta ads, as the website is called now.

But I'm going to stick with using the name Facebook. I'm just not comfortable saying meta yet. All right? So what does that mean? Facebook ads. Well, it's like this. Back in the day, Facebook. launched a product called fan pages. And these were essentially micro websites for brands and

personalities and products and stuff. And they were hosted on Facebook. And the goal here was simple. Get as many fans as you can because anyone that liked your page or became a fan would seek content that your business posted on its fan page. It was free advertising and it worked beautifully until Facebook decided to no longer show your posts to your fans. At the time of this recording, it's only about 1% of your fans that will see your posts. And by the time you watch this, I'm sure it's going to be even less than that. So was all that work that you did to attract your fans to your fan page worthless?

Well, it depends. I mean, you can still reach them with your marketing if you pay to play. But even then, there are no guarantees, as many real estate investors have learned, this is an expensive lesson. So I'm going to help you avoid the costly mistakes because I already made them for you. Now, when it comes to Facebook,

as the goal is to produce a lead, the name and contact information of a potential customer, so you can follow up and eventually deliver your pitch. So to do this, to generate a lead that would want to sell their house to us at a discount entails a potential seller filling on a form with information like their name, phone number, or email address, and maybe more, depending on how much information that you want to grab from them. Now, most investors will convert a very small percentage of these leads into deals. And one of the biggest reasons for this lack of efficiency is do in large part to the process and forms that they use to gather information for these leads.

When you set up a Facebook ad to generate motivated seller leads, you have the choice of using Facebook forms or sending potential leads to your website's landing page with a custom form. Facebook's lead forms, they may produce a higher number of leads because it's easier for the potential customer, and it may be more cost effective. However, in the end, this may be costing you real estate investors valuable ad spend due to producing low quality leads. So let's first talk about lead forms. When you choose lead forms, basically what happens is Facebook users scroll until they see your ad in the form of an image or video. The only information they see is the ad text and image, which to say is not a ton of information.

However, a lead form is created to produce one result only, filled out lead form. It's called a lead form because the user's generic information surrounding their Facebook account, surrounding their profile, it automatically populates the lead form and it's set over to you, the real estate investor. While this initially sounds like an efficient and productive way to produce a high number of motivated seller leads, this is only partially true. It'll produce a high number of leads, but the levels of motivation are going to vary greatly. And many more times than not, it's not going to be the motivation that you're looking.

for. So that means we must optimize the form conversion to deliver us the best motivated seller leads. And the best way I've experienced to do that is to set up your Facebook ad with a link to your own website's landing page to capture the lead there. Now, this method requires each potential seller to first click your ad on Facebook, then navigate away from Facebook to your website, and then fill out the lead generation form once they arrive. Now, this sounds simple, but in the world of online marketing in this method compared to the previous is kind of like comparing a 40-yard dash to a cross-country relay race. With every step added to the lead generation process, achieving the intended result becomes exponentially more difficult. However, while this may

drastically lower the number of leads overall, the end result is normally the production of more genuinely motivated sellers, a better lead. So what makes this method more effective at producing sales than the former? Shouldn't more leads produce more sales? Well, not necessarily. And sometimes, or in this case, oftentimes, less is more. And while it's true that having traffic navigate to a landing page and fill out a lead generation form will produce lower numbers of leads, the leads are typically higher quality. This is because the person actually saw your website. They saw what you offer, and they still decided to fill out the fore. You see, less leads translates to less time following up. And better quality leads translates to more deals for the time you do spend following

up. Essentially, nope, literally, you're earning more money per hour this way, much more. So that's how the lead converts and you end up with their contact information. But getting motivated sellers attention in the first place can be another skill entirely. And I'll go over some best practices in just a second. All right. So here are five things that you should incorporate into your Facebook marketing strategy for motivated sellers. One, create your Facebook, business page. You know, the first step in any successful Facebook lead generation strategy for real estate investors is to create a business page.

This is going to serve as your home base on Facebook. And it's here that you can establish your brand presence, share vital information about yourself and your real estate business, where you can add videos and photos and interesting content to build an audience. Now, although the organic reach of your page will be almost zero, people will look you up. So you want to have a presence on the platform. There are also things that you can do to increase your likelihood of your business page being stumbled upon, as well as being informative. Your content should be search friendly.

So to make your profile more findable, use keywords in your profile's descriptive sections. This includes referencing the city or region where you buy and sell houses and any specific niche audiences that you serve, such as military or veterans or frustrated landlords or people behind on their mortgages or family law attorneys, stuff like that. And number two, post-engaging content. Now now that your business page is up, start using its many features to establish your brand and increase your reach. One of the primary ways to grow your audience on Facebook is by posting content that engages your target audience. This is likely to cover a wide range of potential topics and types of posts including text, as well as images and as well as videos. And be mindful of playing your ideal client's favorite radio station, W-I-I-F-M, what's in it for me? meaning what is your ideal client looking for?

Motivated sellers are typically looking for someone that will make selling their house fast and easy. So your content should show how you do that or how you help family law attorneys liquidate their client's property so they can pay their attorney fees as an example. Your content should be focused on appealing to your target audience. And what's in it for them is what they'll find appealing. They couldn't care less what's in it for you. So make your content all about them.

Now, when creating and planning your Facebook content, consider the tone of voice in everything that you share. All of your content, it should be memorable, friendly, and approachable in tone, and ideally will make readers feel something, whether it's laughing, learning something new, or provoking their thoughts. Ultimately, content that evokes emotions like these increases familiarity with and trust in you. So make them laugh, too, if you can't.

Meaning, if you're not naturally funny, be careful. But anyone can be playful and upbeat. People often come to social media to unwind, so sharing light-hearted content can earn more engagement. In fact, laughter biologically creates trust because you don't normally laugh with someone you're uncomfortable with. If you can make your intended audience laugh or even just smile due to your Facebook posts, they'll naturally be more comfortable with you.

Also, teach them something. People love feeling like they have insider information. Instead of stroking your ego, give them a tip or a trick. Let them in on some news that impacts the housing, market, maybe something that they can share that will make them look smart to their friends and family. People may believe you when you say you're a real estate expert, but they won't necessarily remember or want to work with you. On the other hand, if you share examples of how your expertise can help them sell their houses fast without having to make a bunch of repairs, they'll reach out

to you at the first opportunity. And here's a pro tip. Including questions in your posts encourages engagement. For example, if moving were quick and easy, where would you move next? A question like that is very productive. Or, I'd move right away if it weren't for fill in the blank. These types of posts build curiosity. They spark engagement. They identify problems and they give you an opportunity to create solutions. At the very least, the responses will give you outstanding ideas for new content. Number three, joined Facebook groups. Facebook groups should be a vital element of any real estate investor's social media plan. Groups are the most powerful free tool for the Facebook algorithm, and they are often

and full of highly targeted groups of people, such as people who live in specific neighborhoods or work in a certain city or region. There are most likely many fantastic and irrelevant Facebook groups in your area. Look for local groups tied to specific cities or neighborhoods or niche interests such as pets or parenting, business owners, and other local groups. If you really want to connect with your audience, choose groups with common interests of your own. This will enable you to be your authentic self. and authenticity is attractive to potential clients. And if you're feeling really ambitious with this, consider starting your own group about something of interest to you.

For example, be a resource for wine tasting, or nature hikes, or car clubs, and be of service within the group. Here's another pro tip. Give before you expect to get. And actually, don't expect to get at all. Just let it be known that you buy houses for cash in any condition and then have fun in the group being of service.

And it's these first three ideas that indirectly increase the effectiveness of your paid advertising. In marketing, it's called pre-framing or top of funnel, meaning the relationship that you build with your audience prior to them ever seeing your pitch. And that brings us to number four, promoted posts and paid advertisements. When you've created a presence on and relationships within Facebook, it's time to start paying for promoted posts and posting real estate ads on Facebook. And there are two different ways to do this, boosting your posts and running paid advertisements. So boosting your Facebook posts is the more affordable and simpler option. You can pay as little as $1 per day to boost a post and increase its views to a highly targeted audience. While it's inexpensive, Facebook ads and boosted posts can produce a massive return on investment, ROI,

although it may require some time and trial and error to do so. One of the golden rules of marketing is to always be testing, and it may take a lot of testing before you find something that works and something that works really well. Now, unlike boosting an existing post, when you run a Facebook lead ad, you'll usually create it from scratch. You'll also need to follow some time to find your footing. Successful Facebook advertising requires that you determine a strategy, identify an objective, and optimize your target audience by location, interests, behaviors, age, job types, and other demographics. Facebook lead ads have proven to be revolutionary in real estate marketing.

However, the effectiveness of your advertising, will be limited by your budget, your expertise, and your available time to learn and use the advertising platform. Since so many real estate investors are using Facebook ads, it's a competitive market that requires extensive testing and financial investment. If you like the idea of running your own ads, by all means, there are plenty of places to learn how to do it, but your time creating and running Facebook ads doesn't pay nearly as much money as talking to motivated sellers and negotiating contracts. So consider outsourcing your Facebook marketing. All right, number five, track your leads with a CRF, a customer relationship management system. And here's why. Unfortunately,

even the best Facebook marketing strategies don't equate to instant real estate business success. While Facebook can be an incredible tool to generate highly qualified and targeted leads, you need to know how to connect with these motivated seller leads and ultimately convert them into deals. The fortune is in the follow-up. This is a cliche. It's a cliche for a reason, because it's true. If you don't have a follow-up plan to connect with each new lead that comes, through Facebook, leads may, no, they will fall through the cracks. So don't leave that money on the table. Stay organized and on top of all of your leads using a customer relationship management system,

a CRM. Now, there are many real estate-specific CRMs designed to make it extremely easy for you to track and engage potential sellers to make the most of your opportunities. And here at Epic, we use REI Blackbook, and you get free access for 14 days, so you can take it for a test drive before you commit by going to, epic blackbook.com. That's where you get the 14 days for free. This CRM, it enables you to track all of your communications with sellers and view a visual history of your conversations with each one. It's got a phone capture system integrated within an unlimited number of landing pages

that you can use, and it will also automate your email and text follow-up campaigns to stay engaged with your motivated sellers. Say what you want about Facebook. It's still where all the people are. I mean, more than 200 million active users per day. And a lot of them, have houses to sell. You just got to get your message in front of them so they know who to call when they're ready. Thanks for sitting tight while we pay our light bill. We'll be back right after this.

At Desjardin, we speak business. We speak startup funding and comprehensive game plans. We've mastered made-to-measure growth and expansion advice, and we can talk your ear off about transferring your business when the time comes. Because at Desjardin business, we speak the same language you do. Business. So join the more than 400,000 Canadian entrepreneurs who already count on us and contact Desjardin today. We'd love to talk, business.

Ever hear someone say, I have too much money? Me neither. Let's get you some more. Back to the show. Today we're going to talk about some creative closings with a newer RIA student. who I've been working with this year, just a few months. She's really put her head down. She's worked hard. She's already closed deals.

And Rooner has it. She's already quit her job. And I just want to catch up to see what she's up to now and just kind of let you in on what she's doing to have created so much nice success here, all in less than 90 days working together. So without further ado, please help me welcome Ms. Christina Lopez to the show. Christina, welcome. Thank you.

pleasure to be here. Yeah, I know. I'm glad we're able to coordinate this. So super. Thanks for taking time out of your days. I know you're busy, right? I know you're doing deals and I can't wait to talk all about it. But before we start, what specific challenge or maybe problem that you're trying to overcome

or solve when you, before you came to us and decided to work with Epic? Well, I think really what I was trying to decide is after 26 years in the corporate world, what did I want to do when I grow up? And I think also what could I do to create that passive income stream? And so after moving back to the U.S., because I had been living abroad for 16 years, I was doing a lot of research. And I think the model that you have put together was brilliant, and it really set me on a path. I was introduced to real estate last year in July when I was helping my then boyfriend with his development business.

And I thought there has to be another way to do this much faster to build a portfolio. And that's when I discovered Epic. Got it. And so what would it have meant to you personally if you were able to have solved that problem? Well, you know, honestly, it just meant for me to be able to take care of my family. I've got a daughter who's going into med school. I've got a son, a granddaughter. And I really wanted to be able to enjoy more time.

So more time to travel with them, have the flexibility to come and go and visit the family. Perfect. Yeah, that's what we all kind of want is the freedom that the real estate will give us and indirectly the money that the real estate gives us and how we can put it all together to do the things that are most important to us. So super duper. All right. So I wrote down some notes here because there was something specific that. I wanted to really reach out to you, but I know you've done a lot more, so we'll talk about a lot more than this. But it's a rather creative clothes that you were able to put together, a deal you're

able to put together right away. You came to the summit back in December and came to the accelerator in January, and you were already working on a deal at the time. So just like in less than 30 days, you'd already have the first deal going. But it's a specific one. He gave me up in February, a deal that you're working on in Houston. By the way, is that your market, or are you doing this virtually? I'm doing this virtually. So I live in Texas. I focus predominantly in San Antonio, but now expanding to other parts of Texas, New Mexico, and New York. Okay, perfect. Well, great.

I can't wait to dive into that. But this specific deal, you had under contract with somebody that was selling their property, a father, right? And I have no idea how this ended up, so hopefully it was a good one. But the scenario that you pinged out was a scenario that comes up, not exactly in this manner, but the way that you'd have to close it comes up frequently. And it was where the father wanted the cash or the seller wanted the cash, but there were somebody lined up ready to buy it that would have been willing to purchase it seller financing. And that was actually, just coincidentally, it happened to be the son. But can you kind of explain to me how you found this deal and then how it played out, how we got to that point?

Well, one of the things I started doing right away is when I looked at the pipeline of how deals are made in terms of finding deals and then funding them, the whole process. I realized that the one piece that it's going to take me time is really on the lead generation. So I went out and right away started making friends with wholesalers because I thought if I can start making friends with wholesalers in the short term and start learning about deals and how deals are structured that would help to advance what I was trying to do. So I actually befriended someone in Houston who told me about the situation where someone wanted to sell their house to their son, but the son couldn't afford the financing. So creative minds got together and I agreed to go ahead and buy the house from the father so that

they could, I could get the financing to release the funds that the father needed. The son turned around and actually purchased it from me, seller financing at 30,000 more. So I got a $30,000 down payment, which essentially paid for my down payment. Right. And then I have a 30 year note at 10 points per year and a five year buy down prepaid penalty. Okay. Perfect. So you purchased the property with a form of financing. Correct. So the seller got all of their cash. And then you immediately were able to resell it via seller financing for $30,000 more. That's what I give it? Okay, perfect.

All right. So there was one little challenge that we were kind of, I remember you texting me, like, I can't believe this. Are these numbers okay? It feels too good to be true, which I thought. And we get that a lot. I was like, well, did you want the one that was too bad to be false? Is that what you're really looking for?

It's too good to be true, but there was a little bit of some safety precautions we had to put in there to make sure that we executed this. because the danger there or the potential risk is you go ahead and you buy this property and you take on the loan, you now own the property, and then the son or the buyer, whoever that might have been, changes their mind. And now you're stuck with this property that maybe you don't want. How are you able to secure that and make sure that that didn't happen? I was able to work with the title companies on this and put the down payment right away into earnest money. So we signed the two contracts simultaneously on the same day. The buyer is down money.

Yes, the buyer's down. So as soon as we were able to, because I had to put a down payment and we released the funds from escrow within 24 hours, then they had to put their $30,000 down. So what I did is I just timed the signings of those two to make sure I at least had the down payment and I already had the contract in hand from the new buyer. Okay, perfect. So you basically were able to get the buyer, the down payment from the buyer and have that release to you before you even closed. Very good. Super. So you did that perfectly.

Do you like a champ? So there's a happy ending there, and that one was closed on, well, just a couple weeks ago, right? Yeah, about a week ago. So everything playing out and the son's happy and the seller's happy. The seller's happy, son's happy, everyone's happy. He doesn't have to move. Dad's got the money that he needed. And I've got a long-term tenant.

Perfect. Well, you have a long-term buyer, right? Long-term buyer, really. Yeah. Exactly. Or are you happy then? That was a big question. I was happy because the numbers are good.

So essentially by getting the $30,000 back, there was really no money out of my pocket other than I think $1,000 was the difference between the numbers of financing. So it's $1,000 out of my pocket only. But my profit per month is I'm making over $500 profit on this property. That's fantastic. And since you're not the owner, then they're responsible for all the repairs and the maintenance on the property. Repairs, maintenance, insurance, the whole nine yards. No property manager.

No property manager. You don't need one. It's their property. That's why I love these deals. That's good. All right. So then you send me a little. little boxer. That's how we communicate here. And you said you had two houses done in January and two

deals under contract in February. More these in addition? Or are these including the ones that we just did? Including the one we did. So I closed one more on top of that. I got a cute little house off market property for well below market price, which I had a tenanted already. It was tenanted already. So I have, that's now my fourth rental. And this month, I've got three more under contract. Oh, fantastic. So we're moving at full speed. And we've been working together. What's today the end of? We're here in March.

We started in December. So we're less than really 90 days of actual work. And I actually went from corporate world to consulting for two years. And even though I loved consulting, I was also at the mercy of someone else. I really didn't have the flexibility I wanted. So on February 19, I actually handed over my final consulting client to one of my great peers. And so I've been full on since February 19th doing this. full time.

Fantastic. So we quit the old day job and now we were doing this 100%. So great. All right. So that's a few deals that you've closed and then you've got a few more under contract. I know you had said that when you purchased or you started networking with wholesalers. And here at the Summitway show you and inside of Epic Invested a multitude of ways to out and find deals.

Is this how you're finding all of them or is there is a mix or is there one that you're gravitating towards more than others? It's a mix. I really wanted to hit the ground running, if you will, so I took a bit of what I call a shortcut through wholesalers, but it also got me into the right network of people. I'm actually building my team, so I just hired my first VA. They're based out of the Philippines. So he's helping me now with contracts, creating offers and doing that transaction portion of the deal. I'll have another person starting next month who's willing to do the marketing and help me with the calling. And I've got

three people lined up in three different states who are going to now help me start searching for properties and contacting motivated sellers. Fantastic. Let's look at a wholesalers because this can be a really good source. And a lot of people discount it, I think, of having those relationships. And I keep telling people, it's a people business. I mean, the real estate, you buy ourselves going to be from her to another person and people that place their ads on Craigslist and they say, oh, I get our wholesalers calling me.

It's like, fantastic. I mean, every investor is going to be a buyer and a seller at some point. You need those people in your bed database. So how were you able to start kind of building that network of wholesalers? What was your first step in doing that? The first one was really just going to different websites that you had recommended. I went on to Facebook. I looked at some deals that were quite interesting or numbers that were interesting and just started sparking dialogue and conversations.

And so that's really how it worked. And now I have one, two, six different wholesalers who send me deals within a certain parameter. So I send them, these are the types of deals I'm looking for. These are the types of numbers. And then they send them my way. It's perfect. So that's how you basically initiate the conversation and say, hey, I'm an investor. This is what I'm looking for.

Send them to me. I can close fast. I got cash. We're good to go. And I think what really helped me too is you help me to desens. sensitize the deals, right? Because before when I looked at a house, I look at as a home. And I had to stop looking at the lens of something that I would live in, is it, do the numbers work? And I think that's one of the biggest takeaways I had coming out of your workshops.

That's awesome. No, it's a great distinction. I mean, we all look at houses where we potentially could live. And as investors, we need to look at these things as little cash machines, right? They're little profits. Even if they're ugly, they pay money. I'm all for it. So super. All right. So kind of touching on that, What have been your three favorite things about working with Epic? I think really I am a process-driven person, and I love the fact how you make everything so easy, right? It's logical. The steps are there. I mean, really, if you follow the program, it works.

I think the other thing, too, is the team has been fantastic, whether it's yourself or Tony or Jeremy. I mean, anybody on the team, Mercedes, they've always been there anytime I had a question. And I think really the transparency is the third thing that I appreciate. Because I remember a great conversation I had with Mercedes. And she said, yeah, I can get you some deals right away, but girl, you can do this yourself. And I'm going to show you how. And I think I really appreciated that rather than me buying direct through you guys, she's like, no, here, go out and do and make your own deals and find some great offers. Sweet.

Well, super. Thanks for the feedback. I appreciate that. So on the first deal kit, if you don't mind and if you don't want to disclose this, I'm totally okay with this. But this is what I kind of want to shine a light on you and brag a little bit and give people some real tangible numbers to go with. So on that first deal, we're making, it took essentially $1,000 out of your pocket is what it actually cost you and it's generating $500 a month. Share with me, if you can, what the others that you've closed and what your profits are there.

Sure. I've closed another small house. I was able to use some of my 401 case. I cashed it out. But the return on investment, it'll pay for itself in five years. So that was a really good deal on that one. I managed to get two more rentals using hard money lenders. So on that one, I'm sorry, on that set no one, did you get your 401? Okay, that's a rental.

It's a rental. So I bought it. I converted it to a long-term rental. And the cash full on that is. It's fantastic. Yeah, it's about $1,000 a month cash flow. Oh, well, that is fantastic. On the other two rentals that I have, I'm probably cash-filling about a little over $500 each. $500 each. And they're on a, I got them on a loan. So I managed to get them on a long-term rental loan with 10% down.

Fantastic. All right, these are really good deals. If you have leverage there, you've only put 10% down and your cash flowing $500 a month. This is fantastic. And on all of these up to this point have come through your wholesaling network. All but one. One of them was a referral on a real estate client that her neighbor, she knew, wanted to sell. And so we exchanged numbers and I went and knocked on the door. Very good. How did she know you are a real estate investor? I was a real estate agent at the time. I was helping with true real estate agent transaction. And she mentioned, oh, my neighbor eventually. wants to sell. And I said, can you give me her contact information? And then I walked over and introduced myself. Oh, got it. So it was a previous relationship. Yes. Super. Great. Yes, all relationships count past, present and future. Let's go back to this 401K thing. And I would imagine this is probably something that was a sparked in your mind from the summit or maybe the accelerate. I'm not sure. But you withdraw that 401K. I did. I did a rollover. Roll over from a 401k tax free. Okay, you did a rollover until what? Like a self-directed?

Yes. Okay, got it. Got it. All right. So you put that into self-directed, and you have $1 a thousand dollars a month now going back into your self-directed 401K. Perfect. All right.

I thought we were going somewhere else, but that works too. I'm totally happy with that. I did two different rollovers, actually. So I did one rollover prior to Epic, which is what helped me to invest into Epic to begin with, is where I opened up and then I rolled over the funds into a 401K plan with the C-Corp, and then I invested into shares of. the company. So that one is just making investments into the company through real estate transactions.

Gosh, there's another creative little strategy right there. So fantastic. All right, cool. So what do you see for the future? What's looking ahead for you for the rest of this year? Well, I want to acquire personally at least 12 single family rentals or rental units. They can be multifamily. I'm working on two large deals right now. The one I texted you or I wrote to you about unboxing them closed yet because we're still negotiating price, but it's eight duplexes. And so that one will take a bit of time, I think, to negotiate. And then I happened to come upon another one, which was five single family rentals sold as a bundle. So I'm negotiating that one as well.

And some of my friends are really interested in what I'm doing. So I'm investing for other people. So I'm helping them to build their portfolios as well. Fantastic. You are the entrepreneur. Yeah, you didn't need that day job. You got this down. Very good.

So this is this question for me. And this is great feedback for me. And I really appreciate you answering. this. Just finishing this sentence, I almost didn't work with Epic because. Because it was so simple in terms of having the steps there that I thought, why isn't everybody doing this? It really has to be too good to be true. Quite honestly, in being transparent, coming back to the U.S. after living 16 years abroad, a lot of people told me careful. There's a lot of schemes. There's a lot of things that look great and they sound

great, but it's really just a marketing pitch. And what I found was it wasn't a pitch. It was a formula and it was a formula to success and a formula to my financial freedom. And I'm enjoying it. So I haven't nailed it down yet. I'm picking the bits and pieces right now that I can do quickly. But as I grow and scale the team, I think I'll be able to get the whole system down back. Super. Thanks for sharing that. I think your friend, there's some truth in what they share with you as well because this is an industry that we face this challenge all the time of having to address those concerns that customers and clients have when they come to us. And I'm so grateful when they decide to move forward.

And I'm grateful that you did as well because we don't really fancy ourselves as a sales organization, as most people do. And I think we're really an education organization. We build relationships. And we get emotionally attached. Mercedes and I both love you. We love you for sharing what you're doing. And we love you for just following through and doing the work and being a great example,

because I know the community really appreciates it as well. Thank you very much. You bet. You bet. So thank you for being here. Thanks for taking time out of your day. I'll let you get back to work. And then I hope to see you soon.

Talk to you soon. Take care. And that wraps up the epic show. If you found this episode valuable, who else do you know that might too? There's a really good chance you know someone else who would. And when their name comes to mind, please share it with them. And ask them to click the subscribe button when they get here and I'll take great care of them. God loves you and so do I.

Health, peace, blessings, and success to you. I'm Matt Terrio. Living the dream. Okay, only 10 more presents to wrap. You're almost at the finish line. But first? There, the last one. Enjoy a Coca-Cola for a pause that refreshes.

This podcast is a part of the C-Suite Radio Network. For more top business podcasts, visit c-sweetradio.com.