Right About Now - Legendary Business Advice - Ditch The Banks: How To Buy Real estate Without Traditional Financing with Chris Prefontaine

Starting point is 00:00:00 Your biggest challenge is not finding a buyer. Your biggest challenge is sifting through all the people that are really renters and they think they want to buy someday. That's not who we want. This is Right About Now with Ryan Alford, a Radcast Network production. We are the number one business show on the planet with over one million downloads a month. Taking the BS out of business for over six years and over 400 episodes. You ready to start snapping next and cash and checks? Well, it starts right a business.

Starting point is 00:00:30 About Now. What's up guys? Welcome to Write About Now. I'm Ryan Alford, your host. We're always getting right. And it's always right fucking now. What's up, Chris Prefontein? Hey, how you doing, buddy?

Starting point is 00:00:42 Super speaking with you. I know. Chairman, founder, smart real estate coach. I mean, I didn't do it right, Chris. I didn't start something where I'm automatically called smart every day. Wicked smart. Wicked smart. Yeah.

Starting point is 00:00:58 Oh, even that now. I mean, you're adding it on, like. Layers, layers. You know, I don't claim to be wicked smart, so it's like, maybe I just needed to have a title that said I was. I'm going to gear you up so you are from now on. I know, I need the gear. We're going to exchange merch after this for sure.

Starting point is 00:01:15 Yeah, coming your way. Yeah, Chris. So real estate's an interesting topic these days. It's like, depending on where you get your news from, it's all doom, all gloom, or I don't know, something of the above, But something tells me it's not doom and gloom on your end of the rainbow. Yeah, I mean, I can say it's two decades ago, too, but even more so lately, if you go back and you pull, I did this for the community once, you pull the headlines from the media. It's amazing.

Starting point is 00:01:42 They did this right like through the COVID and then after COVID. And all of the headlines were wrong, 100% wrong. They kept saying we're going to go into a crash and all this stuff. It started pre-COVID. So now's a great time. I was telling you off air. in my 33 years, I have not seen this type of demand, well, two things, this type of demand for creative real estate, which is what we do, real estate on your terms, and just in general, a great time to

Starting point is 00:02:08 accumulate unbeknownst to so many people listen to the crap going on in the media. I think for those that want to get aggressive, and I don't know the listeners, I'm not going to promise, but I'm going to say generally speaking, you have a chance to accumulate like a decade, let's say, of income by getting after this for two or three years. And that's pretty cool. or even 18 months, if you want to get super aggressive, the way we do our deals. Well, that's an interesting time. So people won't say to yesterday, oh, you know, I should have done that.

Starting point is 00:02:33 I want them to say, like, I crushed it. I get out to the market. That's some fortunes are created. So, yeah, it's a good market right now. We're going to get into this. Look, sometimes I selfishly, you know, like have guests on. Like, Amy told me one of our senior executives here about Chris and what he was doing. I'm like, well, I like what I kind of like what I hear already, but, but this has always been a

Starting point is 00:03:00 fascinating area for me, because I own a couple real rental properties. I've dabbled in this space, but I like to learn. So I'm here. I got my digital note taker. I'm like, I'm, I'm, I'm, I'm want to learn this stuff because I'll say this, Chris, every market's different. And here in Greenville, South Carolina, lovely, beautiful place. Please come visit. Don't come live. Joking, joking. I love you. Yeah, that Greenville, the city of Greenville hates me because I say that a lot. But it's just, I live downtown and there's a crane on every corner. Everybody's moving here.

Starting point is 00:03:37 But let me say this, Chris. But what I don't quite understand is like in our market, I sold a house here. And I'm talking, I know we're going to talk about the business side of it. But like, I sold a house for 500 grand nine years ago in Greenville that is now listed for 1.3 with no improvements. Believe it. Number one, I'm kicking myself because I would have sat. I mean, it was a lot.

Starting point is 00:04:05 I mean, 500K for me 10 years ago, you know, I could have swung it, hung on to it, rented it, probably done something. But if I knew it was going to be 300% higher, you know, in nine years. It's like, so I'm building to a point here, Chris. The point is even with your stuff, markets, these little niches even like Greenville, that are kind of like the top three fastest-growth, small cities in the area. Does this system work anywhere? It works anyway.

Starting point is 00:04:34 This is a really good topic to go on. It works anywhere, Ryan, but the caveat is if I'm in your market right now, you plot me in your market. I'm going to look at, I don't care how hot the market is. There are always expired listings, not as many in a hot market, but there are because of functionality or price or whatever. And then there are always people that are financially, beat up and need relief tomorrow, but they don't want to raise their hand or they can't afford

Starting point is 00:04:59 a realtor because they're upside down. Like those exist and that's where we tend to live. There are also people in your market that are free and clear. Like a third of the properties in the United States are free and clear. That's a big pool. And I love dealing with them. I bought my office building that way. I've since sold it, but I bought an 18 from a gentleman who was quite savvy, but he not only was open to owner financing and not selling conventionally with a realtor, he was seeking it. And that's what we do. So all that to say. you can do it still. Yeah, you're just going to be very careful what pool you fish in, so to speak. All right. I got excited because I want to know. I want to pick Chris Brain.

Starting point is 00:05:35 But let's back up a little bit. Let's set the table, Chris. Who is Chris Prefontein for our audience? Who are you? So I won't do 33 years. I'll put them asleep. But we want the cliffs notes here. We want to keep it interesting, Chris. We need wicked smart, Chris. I'll give you the high points. Yeah, so I've been kicking around real estate since 91. That included building homes, rehabs, all the conventional things you'll see on HDTV and other things, right? In 2008, the crash hit it. And I got my teeth kicked in financially, mentally, and otherwise. And so that literally took me four years to get my head out of the sand.

Starting point is 00:06:11 February of 08, I remember like the date. I remember where I was. Like a light switch went up. And then February of 12, I started going, all right, I got to get out of my own way. I got to get back on the mentor trail. I got to seek this stuff out. And I kind of came up with a bunch of rules. And the rules were I'm not dealing with banks again.

Starting point is 00:06:27 I'm not signing personally on bank loans because that got me in trouble. When the market dies, you're getting called and your notes are getting called and you're on the table. So I said, that's not happening. I'm not borrowing any money. I'm going to buy everything on terms. I want to financing, lease purchase, never using a bank. Because that's the only thing I could do and no credit, no money. That was 12-ish.

Starting point is 00:06:45 13. I started doing more deals. 14 organically 10 years ago, people started seeking out me and saying, can you teach me this stuff? That morphed into smart real estate coach that year. And now we do deal still locally. My son and I, my son-in-law, small team, but we also teach that all with North America now. And it's fun because we don't just like sell people stuff, Ryan, you appreciate this in the education world. A lot of people like, they're really good marketers so they can sell you. And social media is full of it. Instead, we go, okay, come in the

Starting point is 00:07:14 program and we're going to lock arms with you, we're going to do deals with you, and we're going to profit with you and revenue share with you or not if the deal is a sucky deal. It's our fault. We're helping you. So we're in the deal together with the student. And that's different. There's not many of those things out there. Most people just like sell a product, move on.

Starting point is 00:07:29 So that's kind of what we do and where that came from after the crash. That's interesting because that is different than what I, you know, a lot of people teach things. Yeah. But put skin in the game, so to speak. Yep. With being in the deal with them. That's definitely a rare nuance, isn't it? I don't know many people doing that.

Starting point is 00:07:48 No, I don't. There's someone that has chinkered with it. but not at our level. In fact, there's one guy out there training people in one of the methods we buy, but he doesn't train them on how to close it. So it's like a referral source for us. So I applaud them. And he's doing millions because he markets well,

Starting point is 00:08:03 but keep doing it. Well, a personal friend of mine is Pace Morby. You know, trains. Yep, trains on that stuff really well. Sub two.

Starting point is 00:08:12 I mean, is that a, you know, creative real estate sub two, subject to? Yeah. I mean, is that similar, similar?

Starting point is 00:08:21 I mean, are we talking the same language here? Yeah, that's one of the three ways you buy. Sub two, owner financing and lease purchase. Yeah, he teaches that one of the three that we do. Yep. Yeah. Talk to me. Then let's educate, if you want.

Starting point is 00:08:33 Let's educate those three. You know, how we creatively buy real estate. And let's get nitty-gritty. What is then how we make money on this? Yeah, let's talk. I think a fun one to talk about beyond financing. Okay. Because that's that niche, I said, prefer.

Starting point is 00:08:51 there's other ways to do owner financing, but preferably free and clear property. So again, a third of the homes in the United States, plenty of people to talk to, and why would they sell to us? And then what does that look like profitability-wise? Well, they typically don't want to pay a realtor. They typically don't need their cash right away or presumably they were to refinanced and pulled it out, right? They're free and clear.

Starting point is 00:09:10 So they want the best price. We can do that if we have a term. So my office building, for example, I set up a 20-year term. That's what he wanted. He wanted up a trust in the state planning reasons and tax reasons. That's why they do it, these free and clear people. Now, here's the point of selling Ryan. When we buy these 99% of the time on residential, especially, not necessarily commercial,

Starting point is 00:09:30 we buy these properties. You're the owner. You're selling me the property. You're going to be the bank. I'm mailing you checks every month. But those checks are principal only, no interest. So now we're in a climate now with what, 7, 8% interest? We're doing 0% interest, principal pay down every single month to that owner.

Starting point is 00:09:48 So the owner's getting a premium, but they're also getting principal payments. every month. Now, how do we make money? So when I came out of the car. Can I ask a question about that? Yeah, if I have it, I think our audience might have it. How do we get just principal payments? I mean, how, how, why would someone that owns something free and clear allow you to only make principal payments, uh, and not be making interest on you borrowing their property, so to speak? Yeah. It's typically because their ego, I'm going to say that nicely, says, I want my price. Like the financially did some things well.

Starting point is 00:10:23 They're free and clear. They want their price. And the market's not giving it to them because they want to. So we'll go. So you're giving the price, just not paying any interest on it. Correct. Yep. And frankly, especially when their rates were lower,

Starting point is 00:10:35 they don't want to report small interest income to Uncle Sam. That's another headache. Instead, they just have principal paydown every month and they're dealing with capital gains only. So we do it that way. After the crash, one of the other rules that I mentioned that will play into the own financing here. is when we do a deal, how about we don't do a deal just to get a check? Like, flip a house, get a check, a wholesale house get a check.

Starting point is 00:10:58 Great. But that's a treadmill. And I realize that after the first 18 years, I'm like, this is stupid. Every January, I'm restarting the cycle, right? So we trademark the three paydays. So when I buy a house, like I just said, owner financing, how am I exiting that? I'm exiting that by putting a buyer in there that can't get financing today, but we know we have a plan to get them financing over the next two, three, four, five years.

Starting point is 00:11:19 We've got to get a mortgage ready. while they're getting mortgage ready, they're going to do a rent-to-home program with us. So how do we get paid? One is their buyer. So you're a buyer, you're not bankable yet, you're self-employed, you need two years of seasoning. That's typical.

Starting point is 00:11:33 So you come in, you have a down payment, and your credit's good. You just need time. So you give us the down payment. It's non-refundable. That's our payday one. I'll give you some metrics and averages in a second. Pay day two is I'm paying the seller something,

Starting point is 00:11:45 let's call it $1,500 a month. I'm now collecting from my buyer who's going to do a rent-to-own to get to the finish. sign called 1800 or 2000 small spread small delta that's payday two every month though payday three is really cool all of the principal pay down on that payment i'm making is obviously helping me when i cash out so payday three is all the principal pay down and any markup i did on the property all three paydays our deals range anywhere from 45 grand to 350 grand our family team here's kind on the lower and it's like 80 grand 75 80 grand because we're in the wengland area so that's how

Starting point is 00:12:18 that's who we deal with. That's how we exit. And those three pay days are quite lucrative. So like for the listeners, most of them don't have to do 20 of these deals a year to make those, those are big numbers. You know, they've got to do a handful. Like an attorney who's in our community, he says, yeah, if I do one or two a year, because I got a law firm running, but I like doing one or two a year and they're quite profitable. So everybody has a different pace they run at. But that's what we do in the own financing front. But we exit them all the same way, Ryan. They're all the same. So if that didn't make sense, let's peel that back a bit. Yeah. So I think it makes sense. but we find a property free and clear. It's owned by someone that maybe is ready to cash out of it, but doesn't, you know, wants to get their price, right? They'd love to get some payments, some cash coming from it. Want to get what they think it's worth. So far, so good. Yep, and they might even not want to pay Uncle Sam up front.

Starting point is 00:13:10 So they want to spread that out over time. Yep. And so want to spread the payments out over time instead of, you know, a big, lump sum hit to Uncle Sam at a price that they did want to sell it at. Right. Because you're giving them the price. Right. Then we're finding,

Starting point is 00:13:28 uh, qualified, you know, like look good, but just aren't ready to buy the home. They're close. Correct. And they're renting to own.

Starting point is 00:13:41 And are, at that point, are they paying more than what you paid for the house? Yeah. Typically, way of paying premium. Even though we know we have a built-in principal paydown, we're still going to usually get a premium on that. Because, again, we're giving them terms that they can't get a loan today. Yep.

Starting point is 00:13:56 And by the way, that pool, Ryan, roughly speaking, you got about, if you stop right now and took a picture of all the buyers out there through Canvas over them, about 80% of potential buyers right now, it's a big number. Can't get financing today. They need some work. Now, they don't all need two or three, four years, but there's a big pool in there that deserve it buyers that need that much. time. And that's a big pool to fish in the relatives of fish in the 20% pond, right? Yep. Big difference. Yeah, it is. Helping a lot of people. Okay. Okay. If I'm listening, my head spinning a little bit on how do I find that semi-qualified person and now suddenly I'm in finance? I'm having to rent to own to them. I'm feeling like the banker. Okay, first, how do you

Starting point is 00:14:48 find them. Believe it or not, the toughest part is getting the seller, finding the deal, getting that on the contract. Yeah. Right. Yeah. Once you have it on a contract, I'll tell you that when you put a sign or put an ad out and we syndicate to 20, 30 different portals automatically, when you put that out and say, no bank qualifying, you know, rent-owned, your biggest challenge is not finding a buyer. Your biggest challenge is sifting through all the people that are really renters and they think they want to buy someday maybe in their life's a mess. That's not who we want. Yeah, I guess I should have raised that. I kind of saw that coming.

Starting point is 00:15:21 That's what I meant, like finding the, not needle in a haystack, but, you know, sifting. The right one, the deserved one, I'll say. My son says that. So my son, Nick specializes with the buyers, and he's got the system down pat and he puts it all out for our community. And that is, they'll come into an automated voicemail system. They'll be directed to videos. The videos educate them. That'll flush out with the renters.

Starting point is 00:15:40 It basically tells them point blank. If you're looking at rent, it's not for you. Here's what's needed, down payment, et cetera, et cetera. So we flush out that and the cream rises and we deal with like the top 20%. Got it. And then is it easier that I think it is to set up all of this, you know, paperwork and all these things, getting them into these loans, you know, rent to own? Because you're not, you'll do the rent to own, but you're necessarily, you're not necessarily becoming the mortgage once they're ready to own, right? No, correct.

Starting point is 00:16:13 They go and apply conventionally. our plan through a third party gets their mortgage ready. So you're a buyer, you come in and you go, hey, I got 50 grand. I've just started my new business. Bank won't give me a loan for two years. Okay. So we're going to put you with our third party company that helps you with a mortgage ready plan.

Starting point is 00:16:29 Okay, Ryan, make sure you do this for your documentation. Make sure you do this for your credit. And then in the two year point or three year point, whatever that mortgage readiness plan is, you're going to a conventional bank and cash note. On the rear occasion, we get people like in their own business that cashed out cashed out. but most of the time they're going to get a loan. Yep. And you guys are helping them with get that loan.

Starting point is 00:16:49 We help them with the mortgage ready plan and we direct them to our mortgage offices that we know how to get these done, what we call the payday threes, but they don't have to. They can go to the local bank. We've had plenty of those. Go, hey, good news. They got my loan early, you know, and they cash us out. Got it.

Starting point is 00:17:03 What's your average, I don't know. What's your average home value price? And I got a road island might be different than other markets. I guess we can make it relative. I'll give you. And the average profit. Yeah, I'll give you some ranges. So like California, we've got some of our coaches and students out in California,

Starting point is 00:17:21 for them to do anything under a million is odd. Like that millions like start at home, right? Yeah. In our area, we're in the like the, our sweet spot here in New England, Rhode Island, Mass, Connecticut is like that 300 to 700 rain. You know, that's our sweet spot. So our average three pay days is like 75 grand. Rusty in California, for him to not see six figures on all three paydays would be really

Starting point is 00:17:43 strange. Like all of his six-fig. So Chris, talk to me about like, okay, you've got every market's a little different. And what's like average price points for the homes, profit margins, etc., depending on the market? Yeah, because our three paydays are tied to price clearly when we talk to percentages. That's a good question. All right. So I'll talk about our market and then some students. So our market in New England, which comprises Massachusetts, Rhode Island, Connecticut, 300 to 700 ish and our average three paydays that we talked about are going to be around 75 to 80 ballpark i mean there's outliers but ballpark now california right um we have two coaches in california one of them rusty um if he does a home under million is odd you know that's like entry level there so all

Starting point is 00:18:30 his three paydays are over six figures all of them um so we kid around in the community because you know he's from california so he's pretty low key and uh not easily excitable so for him to get a hundred Yeah, he's like, yeah, you know, $125, $150 on a deal. It's just normal for him. And then everything on the outside. So Arizona, we've got someone in a really low end. That's where that $45,000, when I said average is 45 to 350. 45 grand is moving down in Arizona, out in Arizona that's low end.

Starting point is 00:18:57 So it runs the gamut. I want to make a comment too, you said the market, right? And you said it right. You said it's different markets. I love because immediately will go, the market is doing this. So the market is down or the market's going to crash. There's no market. They're all segments like you alluded to.

Starting point is 00:19:12 Yes. I would argue the same thing with like states. When we talk about the nation doing a certain way, well, let's talk about the states, maybe. Because you can lock down the whole country, but South Carolina ain't locked down. Anyway, I digress. Side note. All right.

Starting point is 00:19:33 Let's go to the hard part. Like you said, finding the properties. Yeah. You know, and look, we're talking with Chris Prefontein, wicked smart, real estate coaching, and we'll have all his links at the end. Because ultimately, we're listening to all this, but you know you're going to hire Chris. I'm already thinking about it. So we'll just get there.

Starting point is 00:19:55 But Chris, let's keep down telling the secrets track. How do we find these people? Yeah, so the cool thing is most of the stuff, I'm not going to say done for you because you've got to do it. But most of the resources we provide. So one of them, for example, when you're brand new, is a lead service that feeds you. you every day, the expired listings, those that didn't sell in the conventional market, the for sale by owners, selling on their own, and the for rent by owner. Now, those three are good for most people, Ryan. You know, you go, okay, my goal is I get enough leads out of that

Starting point is 00:20:22 batch. If you're more aggressive where your market's not kicking out enough leads there, there's all kinds of sort of niche lists below that, like the free and clear that we're talking about. Yeah, that's where I was kind of like, you know, because that sounds like the most attractive in a way, right? Well, it's one of the more lucrative because of the principal payout. Yes. There are all kinds of other ones. Like tire lane loads is a list now. COVID produced a list for people that were selling because of COVID. Now I don't know how they get this list, but you can buy a list of anything these days, as you know.

Starting point is 00:20:51 And the other one we're dealing with recently, tinkering with is, believe it or not, on market, because we never do this, on market with the rail to more than 60 days with little equity. You can actually pull that. Little equity, been on the market for 60 days because they're probably still on because they can't lower the price because they can't pay a commission. And so there's all kinds of creative things we can do there. So there's no limit to the niche list. Property owners with multiple properties. That's a cool one. So I call someone, they get at least three properties.

Starting point is 00:21:17 I'm talking about, you know, doing something on one of them. Sometimes they have a whole portfolio. So it's pretty cool. Yeah, especially probably the, I don't know, like imagine, I mean, I'm stereotyping or I don't know if it's stereotyping, but sort of lumping together. You know, an older, you know, 60 plus maybe they own, you know, through their own efforts or inheritance or whatever. three, four, five properties that they own free and clear.

Starting point is 00:21:43 And you sort of start to get a, you do one and then snowballs from there, right? Do one good deal. They get happy. You move. I'm sure it snowballs, right? It does. And plus, you know, people like to hang out and people like them, right? So if you find some of the free and club property, what are the odds of them knowing

Starting point is 00:21:59 some people with free and club property and their center of influence? It's high. And they're going to refer you. So that's pretty cool. Because these deals, I should have said this, are super a win, win, win, buyer, seller, and us. super win-win-win-win. And that's not always the case in some real estate deals, right?

Starting point is 00:22:12 Some niches. It's just not. You know, some people don't win in these transactions. Like, if you're going out to someone's house at 60 cents on the dollar because you're a wholesale, I don't think that's a win for them. That's like you might have built them out, but it's not a huge win. Whereas we're typically paying them a really good price if they give us their terms. And then the buyers tickled pink because they thought they couldn't buy a house. So what's the biggest?

Starting point is 00:22:32 I guess two questions. I mean, like we talked about the three. Like, what's the most common of the three? I think we talked about it just a second ago. I have a feeling. But what's the most common of three? And what are like, you know, nothing is easy. Nothing is free.

Starting point is 00:22:51 Nothing is like, what are the hurdles like people have to get over like to make this successful? Most common would be sort of the owner financing because it's been around since whatever, 1800s. You know what I mean? It's been around a long time. So they also understand it. Most sellers won't say, well, I never heard of that. They might say that about sub two or least purchase. Okay.

Starting point is 00:23:11 But they almost never say about owner financing. They get it, at least on the surface. And then your second question was headaches? Or what was you said? I'm sorry. You know, just overall. Like people would come into this. You know, like, you know, we all like to promote things.

Starting point is 00:23:28 Oh, you know, make millions. No headaches. Like, there's obviously you got to hustle here. Yeah. I did a whole chat in my book called What Can Go, wrong and I've actually been criticized to all the educators and they go, you're scaring people away. I said, no, I'm telling me I can go wrong.

Starting point is 00:23:43 Yeah. Yeah. So believe it or not, the biggest, one of the biggest challenges that come to mind when you said that is not real estate related. It's mental. As you know, entrepreneurship is not hard. I'm not easy. It's freaking hard.

Starting point is 00:23:57 So too many people get marketed to online that you just alluded to going, yeah, make millions tomorrow, get rich. My rented Lamborghini, all the stuff they show. And then they come in and they go, oh, wow, like this challenge is and the stuff that goes on in the entrepreneur world and it's different than having a job, that's the biggest challenge along with managing expectations, believe it or not,

Starting point is 00:24:14 because of all the marketing that's out there. Like, if I don't do a deal in 60 days, this must not work, or this must not work in my area. It's a bunch of garbage. Some people come with so much luggage, like I did after the crash, that it takes us months and sometimes a couple of years

Starting point is 00:24:29 to peel that back. It's not me teaching them the skill set to do a deal. I posted, I don't know, four or five hundred deals on YouTube. You go see them. And you go, oh, I know how to do it. it said when you get into the mental game of entrepreneurship. That's, in my opinion, the biggest challenge. Do we have a success rate for people that get into your program?

Starting point is 00:24:46 Not a success rate. I'll give you some metrics. So in what we call the associate program, which is the higher level of people doing deals with us, about 83% are active. Now, active could be that attorney that I mentioned, who just wants to do one and two deals a year. He's not breaking any speed records,

Starting point is 00:25:01 but he's active because he comes to the calls. He's the only supposed to do and he's hitting his goals. So from a metric, the best one I can give you is the 83%. Now, why does 17% drop off, which slays me? Like, I can't imagine that even 1% were, but they do. And it's because of what I said, mismanaged expectations, some life events, but that's in any business. But mostly, believe it or not, it's mismanaged expectations. And are crazy.

Starting point is 00:25:25 You guys promote this as sort of like, like you mentioned, like the lawyer, you know, a bolt on to, you know, something you're already doing. or how many people come into this and this becomes the thing? Yeah, good question. Both. There are some people, God love them that love their job and they just want to keep their job. Okay. And they'll do one or two, three deals, four deals a year. Most that come from corporate or not a corporate.

Starting point is 00:25:51 So we have helped so many people we call it escaping the W-2. All of our coaches, for example, they've come in their program, no experience, work their way up, left their job, all of them, and now coach. So that was their goal. If that's their goal, we kind of have a. a route now, a path, a clear path for them to do that. We've done so many times. But we'll support either one, supplemental or replacement income. It doesn't matter.

Starting point is 00:26:14 I think, you know, a key distinction. I just kind of thought of this is like if I'm coming into this, it might be owner financing, you know, a lot of the deals. But I would assume that we still need to have good credit to do this well or not. because I would think the owner financing, if it's a smart owner, they're going to run the credit on you, right? This is good. No, we don't.

Starting point is 00:26:39 Okay, so when I came out of the crash, my credit was in the toilet. That's why I went to this route and I had no cash. So no, I've never, ever, ever had an owner run credit on us because my, if they ask it, maybe two or three people have asked me over the ears. Like, literally, I don't ask. Because a couple things. We set the students up with some credibility. One, if you're part of the community and you go through our course,

Starting point is 00:27:02 you're accredited with the creative financing real estate association. That's how you get accredited. You go through our course, take the quiz, and you're accredited. So they got that emblem, you know, that logo. They then can access and reference the national community. We've done, I don't know what it is now, several hundred, maybe over a thousand deals as a community. All that puts that to bed because if they say they want to check all that, they just

Starting point is 00:27:23 there's lack of confidence in you. That's all it is. And frankly, if they have a push, I go, then this isn't for you. It's going to keep you up. And your property should be enough security for you. You live in it. Are you not confident in your property having a first mortgage on it? So that's their security for us.

Starting point is 00:27:38 Yeah. I mean, at the end of the day, they're holding the, especially if they own the property, they've got the title right. I mean, so. Yep. Because what's, you know, I would even say this. You never know. We've got executives.

Starting point is 00:27:54 We've got startup people listening to our show. We might have people that have properties that might be looking to sell them. and, you know, they, they don't only hold the title, but what other protections do the sellers, you know, the people that are holding the title have with the deal? Yeah. Don't know what I think? Yeah. So in addition to their mortgage security, like a bank would have, if a seller, and a lot of them ask this,

Starting point is 00:28:24 if a seller says to us, hey, okay, great, I trust you, I wouldn't be doing this deal. But what if you take off? What if you go bankrupt? I'm like, what, I got a full closing? the property. If they bring that up in all about a couple states, you can put a default agreement in place that says, Ryan's my seller on the buyer. It says basically, if I miss a payment, you can pick the term 45 days late, then a deed is already signed sitting in Ryan's attorney's escrow that Ryan go down and record and owns his house again. I'm gone. He didn't have to go through

Starting point is 00:28:53 $10,000 worth of foreclosure proceedings. How often do you have to do that? I've done a handful just to make them feel better and at ease and their attorney's law. But less than 10%? Yeah. Oh, yeah. Way less than 10%. I literally could tell you the ones I've done, like this small handle. And that's a, it surprises me that more wouldn't want that. You know, I guess the credit, ultimately they held the title, you know, I could understand maybe that that made sense when you described it.

Starting point is 00:29:18 Why do you think fewer require that? It's just back to the trust factor. I think besides the trust, I think that if they're getting their price to our early conversation, that's usually their goal. Like I had a, I had a seller. once. We ended up doing this deal, but I had a seller who said, this happens often with the attorneys. Oh, my attorney said, I shouldn't do this. Okay, is your attorney going to pay the bill? Like, you want to leave. Okay. So I just let him be, as time passes in real estate, things get better sometimes

Starting point is 00:29:42 for us to wait. So he called me, Chris, I really want to do this. But my attorney, I said, get a new attorney. Like, you pay your attorney. He works for you. Tell me, want to do it, just protect you. So he went to his second attorney. Same thing. A year later, this was like two years. A year later, he called me and said, forget it. I'm just going to do it. And we did the deal. And he's since been cashed out. Like this deal has all gone through the whole thing and cashed him out. And so he's happy as a clam, but attorneys can sometimes get in the way. Here's my line, Ryan.

Starting point is 00:30:08 It's very simple. I say, look, if this is going to keep you up at night, don't do it. I'm not your buyer. I can get you to your goal, but it's going to keep you up and I don't do it. I've literally said that many. You may have said earlier, Chris. Talk to me. Okay, I'm selling the property.

Starting point is 00:30:21 Start to finish before I get all my money, tip the average time on these deals. owner financing, I don't like to write them up term-wise less than four years because it's too much pressure. And in this market, in almost any market, but when the market's uncertain, the longer you go out, the safer you are. Because, look, in 10 years, I don't care what the market does. If I have a 10-year term, I'm fine with all that principal pay down. So typically, we write it up like that, but the buyers will typically cashed out earlier three years. If I want to keep a house and I don't want to get cashed out and I have it. long terms on it with my seller, I'll even turn around, change the rent to own to a

Starting point is 00:31:01 owner financing with the buyer and keep them in it, you know, be a bank myself. So there's all kinds of options. I'm trying to keep it 10,000 for you. Yeah. Yeah, I was hit you. I was kind of wondering if you're going to go there at the end. I'm getting into the, you know, I go quickly, you know, we're in 101 lesson. I wanted to go to 401 quick, Chris. Like, I'm like, my mind's like moving. My mind's moving down the line. I'm with you. Typically, I get accused of that. What do you, well, hey, go back about 10 steps. I have no idea what you just said. No, I'm following it.

Starting point is 00:31:30 I'm just trying to make sure, you know, we keep it like on the level. And so, you know, I'm, audience is listening. This sounds interesting. Chris seems like a really straight of guy. He seems like he's giving me the good, the bad and the awesome. And so I'm trying to think, okay, what's the makeup of the person? And we always like to say, anyone can do this at any time. It will work awesome.

Starting point is 00:31:59 There's my radio voice for you, Chris. Yeah. But like, what's the, who does, what's the, let's get a proxy of who, who this person looks like that does really well with this. Personality type. I get a few of mine. You know, maybe their career, et cetera. Yep. I won't prioritize these, but these are sort of the advertise that we see work.

Starting point is 00:32:19 One, they grew up in or witnessed a family business because we tend to be. very family oriented. So we attract that, right? Because we're a family environment. Two, believe it or not, podcast listeners tend to be radio and podcast shows in a while. They tend to be avid learners. They don't listen to a show for 30 or 40 minutes and not be into self-improvement. So that's typically really good because they put the time in themselves. Three is the six-figure corporate earners that go, you know what, I made great money. some couple come to mind like the medical people they hustle hustle hustle but they're making good money but their lifestyle sucks they're great because they're used to working hard that's not the

Starting point is 00:33:01 issue they have money they're not like oh i need to deal like i need water tomorrow like me after the crash they're great and they come in and they crush it because they used to doing that so those are just kind of some high points for you check check check right right offers you're doing this the other niche i don't know if you've had you mentioned pace but there's a There are a lot of people in the wholesale and fix and flip business that when they hear three paydays instead of like transactional, I got to do it all every time. They love it. Not only that, but wholesaling in a lot of states is getting shut down pretty quickly. So they're starting to come to us by community sizes, not just individuals going, hey, teach our community how to do this.

Starting point is 00:33:40 So that's been a big draw. The wholesales and the flippers that go, creatives where it is, teach me. So that's the last one. Have you done much flipping? I did in my, in my earlier years. Yeah, in the 90s, I was doing condominium conversion. where I'd buy multis, turn them into condos, and then, you know, rehab a little bit. What percent is commercial versus residential that we're talking about here?

Starting point is 00:34:00 Yeah. For us, I teach residential Ryan only because I'm afraid of the shiny object getting in their way. Real estate has a lot of shiny objects. So if I'm on stage, so to speak, for analogy, and I'm teaching 300 people, and I start saying, well, this asset class and this asset, it's going to be shiny object. Now, can you buy any asset class with owner financing sub two in lease purchase? Yes, yes, and yes. That's how I bought me office building. I said earlier.

Starting point is 00:34:23 So, yeah, but I teach single families so they learn the concepts and then they can go ahead and delve out. But do you personally, are you doing other corporate deals? We try to buy, I try to buy everything. My wife and I own a financing. Yeah, like that building was interesting. So the building, he was like a math guy and he owned a lot of land in this area. And I'm saying this story because people think, okay, that must be for like the person doesn't know about earn financing or, you know, it's not educated. know this guy was like the largest landowner on the island here i live on a three-town island and we structured a deal i said principal only he almost fell off his chair he's like what do he wanted six percent or whatever it was so it's what we did we did a hybrid and it was a win-win

Starting point is 00:35:01 we did 18 months of principal only so i hammered down principal then i took the balance and amortized it over 5.2 percent over 20 years whatever it was that and he was thrilled because we both got our way there that's kind of a hybrid deal that's interesting does this work with how's uh boats and uh It does. People buy owner financing, planes, boats, everything. Okay. Interesting. I know a gentleman that actually did a jet on owner financing.

Starting point is 00:35:28 Believe it or not, the higher, like, price ranges of any asset, they get it. I had a neighbor in front of me several years ago who bought a three or four million dollar house. He was going through a divorce, so he worked out with the seller. He didn't want that public. So he worked out at the seller where he would do owner financing. I think it was like two or three years. And then he went and got a loan when the dust sold. This happens.

Starting point is 00:35:48 more so at the higher level than anything else. That's interesting. That makes a lot of sense. Chris, you know, as someone interested in this, you know, I've probably asked, there's been more of the tit for tath than my normal episodes, but I really, I think it's, it's, there's something so, I don't know, clinical in the, I don't know, the business that this is, that's like, there's very, there's structure here. So it's like, it's like, we're going down the ladder.

Starting point is 00:36:10 Talk to me about anything that, you know, if the audience is listening, wanting to learn more about, we could smart, what you do, what your course, are let's get to the nitty gritty of what they can expect from specifically from your team. Yeah, yeah. So once they're in the system, they're going to go through a basic course. That's the one I said most people sell something like we have and then take off. We just say you need this for your foundation. Now, once you go to the Foundation Academy, you can expect some onboarding for like 90 days.

Starting point is 00:36:39 So all the basics are covered, the foundation, the vernacular, you get it. And then after that, you decide what level and how aggressive you're going to be in our programs. but we've got an awesome, awesome community director. We've got four or five awesome coaches. They have to have gone through our system. It's more hands-on again, as I opened the show with, than anything I know of. That's not an ego statement.

Starting point is 00:36:59 That's just the fact that I've seen out there, that I'm aware of. And how do they find everything that we're talking about? Give me some links and that kind of thing. Yeah, so we put a link together for your tribe. Just go to Wicked SmartBooks. WickedsmartBooks.com forward slash radcast, R-A-D-C-I-S-T.

Starting point is 00:37:18 So, by the way, you know, you probably clicked on the links before, get a free book, and then you've got to put your credit account in for shipping. This is free. We'll ship out of here. You're getting high-copy books. You'll get some goodies probably. You can also, if you don't mind listening to my New England accent for almost an hour, you can take my free workshop, and no one's bugging it.

Starting point is 00:37:34 It's a replay. So go take it, enjoy it. I'm big on free, Ryan, because if you go free and you say, okay, this is not for me, no harm. But at least you did a due diligence. said, okay, Chris, I think I can be committed to this. Now let's go. So go to smart real estatecoach.com forward slash masters class with an S master's class.

Starting point is 00:37:53 And then between the books and that, you'll have a gist for what's going on. And then you let me know if you want to chat. We'll have all that in the show notes for everyone. And on my personal social media, I'll be running stories with links to all those giveaways from Chris. So take notes, but just know you can go back to the show notes. If you're listening right now and hit click. you know and get straight to it the uh Chris I mean I think I could pick your brain for like two more

Starting point is 00:38:21 hours but I think we've hit the we we've hit the end of the road I really appreciate you coming on I I'm intrigued I think our audience will be intrigued I think everyone's looking for different ways to make income and I don't know I think you have a very like I sense the family and while being direct approach and I really admire it I appreciate that very much I appreciate that very much I Appreciate being on, buddy. Yeah, man. Hey, guys, you're to find us, Ryanisright.com. You'll find all the links today.

Starting point is 00:38:50 You can go there. We'll have the highlight clips. We'll have links to Chris's masterclass. And, of course, the books, the giveaways that you mentioned, straight from you know who. You know who to find me at Ryan Alford on all the social media platforms. Have that blue check before you can buy it, baby. We'll see you next time. We'll write about now.

Starting point is 00:39:07 This has been right about now with Ryan Alford, a Radcast Network production. Visit Ryaniswright.com for full audio and video version. of the show or to inquire about sponsorship opportunities. Thanks for listening.

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