Epic Real Estate Investing - The Owner Financing Real Estate Strategy | 626

Episode Date: April 8, 2019

Today, we are giving you the 3 key points of the owner financing real estate strategy. If you get them right, you'll find better opportunities, make more money, and more importantly, they’ll give you a tremendous edge over your competition. Stay tuned to learn how this strategy functions, what its 3 forms look like, and where to find the deals that you can obtain employing the owner financing. Learn more about your ad choices. Visit megaphone.fm/adchoices

From coast to coast, epic investors are doing the most. It's time for another epic field report. So on the phone, I'm joined by RIA's client, Abbas. Glad to have you here, buddy. So I noticed in Follow Through Crew Friday, let's see, that was two weeks ago now. First deal closed for $8,000 assignment, two others under contract. Thanks to Matt Miguel, for your help and shout out to Parker as well. So perfect.

You got the first one closed. You were at the RIA summit, what, four or five months ago, I guess, right? October. Okay. And it took a little bit for us to get here. So we'll talk about that. But let's talk about this specific deal, $8,000 assignment. How did you find this deal?

So this came from a PPC lead. Miguel helped me with the PPC setup. So we're managing your PPC for you or did you do that yourself? You're managing it for it. We're managing it. Okay. Got it. And, man, we turned it on.

And I got a lead almost immediately. Was a tired landlord. He had owned it for something like, 12 years and had recently been vacated, needed work, and he was just tired of dealing with it, didn't want to fix it up, got the call, went and met him like the next day and got him under contract the following day. He said he needed to, you know, get the okay from his wife. There was some back and forth, but we got him under contract. And so your extra strategy was an assignment so that we were wholesaling the property.

Correct. My next question is, how much money did you make? So you put that in here. So you made eight grand, so good. How did we celebrate on this one? How do we celebrate? So I got to tell you, paid down some debt, to be perfect, for honest. And took the wife out to a little dinner.

I had two little girls. So, you know, we had a little family dinner celebrated that way. And honestly, nothing big. Yeah, it's not enough to retire on is what you're saying. Okay, good. All right. So that was then, so that was what two weeks ago. And then just last week, I saw something posted here.

That happened this week. So we haven't posted it yet. Oh, Parker posted that he had it under contract. And then you guys have closed it. since then. Yes, sir. Got it. I wanted to read that one real quick.

Eight contracts currently pending. One deal was a referral from Avis, from the epic community, and we stand to make about 40 grand on that. And so that's the one that you actually did close this week. Yes, sir. Let me elaborate on that. Please. I was leaving for vacation to Disney World.

And the day before we were leaving, I got a good lead in that I could tell had some potential. I didn't have the time to really lock it up. And Parker is in my market here in Atlanta. And I have become pretty good friends. So I reached out to Parker. I said, hey, Parker, man, while I'm away, can you handle some of these leads for me? So this one, I got from a Craigslist ad, which I kept telling you wasn't working.

Got it from a Craigslist ad. Kid inherited the home. It's a little outside of Metro Atlanta, but it was surrounded by commercial property. That's where the money was. residential property surrounded by commercial. So we saw some potential there. Locked it up pretty cheap. Found a commercial buyer.

It was a team effort because there was a lot of, there were a lot of issues with the seller. He was a little difficult to deal with. Parker and I really tag teamed on that. And 39K spread. We just closed it this week. Congrats, dude. So you made $39,000 from a free Craigslist ad

is what you're telling me. That's what I'm telling you. And just what? A month before that, you're like, these Craigslist ads aren't working. We got that one from beginning to the closing table in three weeks. It would have probably been two weeks if the guy wasn't so difficult to deal with. Good. Okay. And then just before we started recording, you said you had a few more things coming up. Some other opportunities you're working on.

Yeah. Yeah. So I've got... Well, let's just pause there for seconds. I want to go back because in the last two weeks, we've got two deals closed. You've got some other opportunities that you're looking at right this very moment. So obviously something has happened because we went four or five months with some frustration, kind of walk me through that process and now in your hindsight, how do you see that experience? It takes a little while for the marketing to kick in. You know, the seed you plant today, they bloom later on, right, if you will. So there's a lot of that. And it varies, right? Some people get lucky to get a deal right away. It took me a little longer, but I think you know this from the questions I've been asking. I stayed with it and I really worked hard. You know, any downtime I've had,

I've been trying my best to devote to this and my learning. I really acknowledge you for that, that you stuck with it. And it's because it's the consistency that is going to snowball and produce results. And you're starting to benefit from that right now. You're starting to see it all happen. And, you know, I was at the RIA summit. We did a fulfillment summit two weeks ago. The subject of Tony Jardu came up.

You know, and I've been working with him for almost a year. And not a whole lot happened for him for a whole year. And all of a sudden, month 13, 14, 15, he's got 39 properties in his rental portfolio. Wow. I don't have enough Tony Jardue stories because people quit too soon. That's why I'm coming around the long way just to acknowledge you for not quitting and just sticking with it and trust in the process. Thank you for your help during that process. Absolutely.

That's what we're here for. I just, you know, I always say that I'll match the commitment, the commitment that you give. You've got it all from me. And you're just one of those stories. You're the Tony Jardoo, right? It didn't take you a whole year. It took you, what, four or five months. But it is kind of the same conversations that we were having.

You sent me a boxer. So I just wanted to see if you could speak on this. You said, I made 35K this month. By the way, my day job as an IT consultant and two wholesale deals, my first IT job out of college in 2005 paid $41,000 per year. It took me five years to get my degree. I trained with you five months ago. What was going through your head when you're typing this?

What were you thinking? Honestly, I wish I had started this sooner. Like, I'm 36, man. You know, it takes you a little while to see the light, per se. Some people see it later than other. Some people never see it, right? I did what the world told me to do. I went to college.

I got good grades, got a corporate job, worked my way up, got into independent consulting. And that's been fruitful for me. I'm not going to lie. But I knew there was more out there in different ways. I started my real estate journey on my own, buying wholesale rentals, right? And that was just three years ago. But I learned pretty quickly that that's not the way to do it as I researched. and read and et cetera, et cetera.

I stumbled upon you because my cousin did Facebook ads for you at one point. So he recommended me to you. Through you, I met Parker. So over the last three years, I saw Parker's success. And that's really what motivated me to look into the REIAs program. You know, it's been a progression, right? I know there's more out there. How do I get there?

You make mistakes. I bought those retail properties. It's been a progression. So I'm getting there. Yes, you are. Thanks for sharing that. I appreciate it. because I think there's people that are listening can really resonate with that story, right?

We do what we're supposed to do. We end up midlife somewhere between 35, 45 years old. And, you know, you've got on the surface what appears on paper to be, quote, unquote, successful. You know, everything has worked out okay. But then you have that void in there that you're feeling like, okay, there's something more out there, not getting any younger. And let's go and take a shot. So congrats. You're exactly the type of person I love to work with.

I love to help people that are out there to help themselves. And so it's been a joy. It's been a pleasure. Thank you. You bet. Keep doing what you're doing. We'll do this all over again. Sound good? Awesome. Awesome. Thank you so much. Okay, Abbas. Take care, buddy. Good talking to you. Bye-bye. Bye-bye. This is Terio Media. I just bought my first property with a bank loan. The rest of my portfolio has been acquired with a strategy called owner financing real estate. And a good chunk of those were even sold with owner financing. Today, I'm going to show you how I did it because I showed Josh. I showed Nathan. I showed corporate. I showed them all how to do it. And I'm going to show you right now how to do it too.

Okay, I'm going to give you three key points when you're considering the owner of financing real estate strategy. Because if you don't understand how to do this, your options will be very limited when you're making offers and you're going to miss out on opportunity. But if you get it right, you'll not only make more money with the opportunities that you already have, you'll have a tremendous edge over your competition. So this guy right here, a client of mine, Josh Miller. He closed 85 transactions last year and half of them were a result.

of what I'm going to share with you right now. So let's go over those three key points. Point number one, owner financing real estate. What is it? Very simply, owner financing is a financing arrangement in which the seller agrees to accept installment payments directly from the buyer rather than having the buyer obtain a loan from a bank. Basically, instead of getting a loan to purchase a property, the seller themselves, they step

into the bank's role, and instead of making payments to a bank, you make those payments directly to the seller. With this owner financing real estate strategy, the seller, the seller. seller is the bank. So now you know what it is. But there are different structures for our purposes here. And that brings us to point number two, the three different types of owner financing structures. One, the free and clear carryback. Now, the seller owns the property outright in this scenario, meaning there's no existing mortgage on the property. They own it outright. And the seller sells their property to you by accepting installment payments directly from you. Very

straightforward, very clean transaction. This is seller financing in its most basic form. Now, number two, the multi-mortgage carryback. Most commonly, in this scenario, the seller is going to own the property, but there's still an unpaid mortgage on the property. And using the multi-mortgage carryback, this is a way of purchasing real estate where you, the real estate investor, would take title to the property, but the existing loan stays in the name of the seller. It stays in place and in the name of the seller, but you own the property.

In other words, you are purchasing the property subject to the existing. financing. Then the seller would give you a second mortgage in the form of what's called secondary financing. In this instance, you would control the property because you're on title, you own it. You'd make payments to the first mortgage, the mortgage that's still in the seller's name, the bank, and then you'd make payments to the second mortgage of which would be directly to the seller. So the multi-mortgage carryback is exactly what it sounds like. There's multiple mortgages in place. There is more than one mortgage on the property. Number three, contract for deed. Now, this is still owner financing, but it differs from the previous two as the terms of

the installment payments is written into a contract. So technically, this is a business transaction as opposed to a real estate transaction. Thus, the seller stays on title until the buyer fulfills the terms of the agreement. The buyer still will have the full rights of ownership and they'll have full use of the property per the contract, but wouldn't officially appear on title until the final payment was made. So if all this is making sense to you so far, do me a favor. Type the word epic down below in the comments section. Do that for me.

That's just really good feedback for me that I know you are getting what you came here for. All righty. So point number three, where? Where do you find deals like these? Well, it's really pretty simple. In short, you can find them in the exact same places you're finding your other deals already. You just have to present owner financing to the seller instead of the traditional all-cash offer that most people do. But I'm going to show you how I found most of mine.

The first way was through direct marketing to landlords. And what I'd do is I'd send them a cover letter introducing myself accompanied by what's called a three-option letter of intent. Now, this letter of intent would present three different types of seller-financed options of how I was prepared to purchase their property. And I'd put my phone number at the bottom, and those that were interested would call me and they'd just tell me which option that they liked best. If you'd like a copy of this letter for your own use, you can now get free access to the Epicpro Academy at Epicproacademy. come. That document, it's inside as well as video lessons on this subject and more. All of my other contracts and paperwork can be found there too. All right. So the second way was through realtors. My favorite question to ask a realtor every time that I met one was, do you know of any listings

that would be willing to carry back financing? And every once in a while, I got a yes, but mostly I got noes. And that was okay, though, because what I would do then is I'd take their business card. Realtors love to hand out their business cards. I'd take their business card. I'd drop it into my CRM and that I'd assign a realtor-specific auto-responder that would stay in touch with the realtor on my behalf, constantly reminding them at least once a week of what I was looking for. And then when one of these seller-financed properties

popped up on their radar, the realtor would then call me. And the third way was through online classified ads, and I still do this, actually. I set up a custom search for owner financing, seller financing, and seller carryback. And I'd do that in the real estate sections of the classified. And then any time a new property was posted that had any of these words

in the title or description, and the custom search would send me an email, and I'd then call the seller and present my owner financing offer. If you want to get more owner financed ideas and other creative strategies like this, get free access to my entire strategy vault at epicpro academy.com. I used to happily and easily sell this education and training for $997 a year, but now I give it away. And all of the documents and all of the paperwork, too. God bless to your success. I'm Matt Terrio. Living good. Yeah, yeah, we got the cash flow. Yeah, yeah, we got the cash flow.

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