Synopsis:
Chris is a real estate investor and mentor that focuses on purchasing properties on terms only! In this episode, you’ll learn how to properly structure deals to protect your downside and will learn how to set up systems to build your real estate investing machine!
Key Points:
If you only buy on terms, you don’t need to personally guarantee the loans.
You’re able to offer the seller any amount that they want as long as they agree to let you make principle only payments over 30 years. You get paid out in three ways. The difference in the down payment, the difference in the monthly payment, and the difference in the total purchase and sales price that you have with your buyer.
Hire callers and virtual assistants to help you with your efforts so that you can spend time talking to people who have already agreed to sell their house to you.
Show Notes:
About Chris
Chris and his partner started building homes since 1991. In 1995, he bought a realty executives franchise and put his broker hat on. In 2000, he did his own investments and coach people throughout North America. That led him to the lovely real estate debacle but has thought him what to do exactly what he's doing now buying and selling on terms only.
How Chris Started Going About Getting Different Kinds Of Loans
Chris mainly does type properties with either lease purchase or owner financing. The lease-purchase is better for a new person because they literally have $10 built into their agreements per deposit. On the other side owner financing, has no money down and the principal has chopped down. Because of that, they can expect the sellers and most states to pay their transferred tax but they're not giving any money to do the deal. So for the new person, Chris would stick with lease purchase as you rent your way to get some cash flow going. And then as you get some cash flow going, he loves the owner financing even better.
Team Structure
Chris's son in law does all the acquisitions and now on the property side of things. His son handles all the buyers whether it's owner financing or rent to own. Both have an admin assistant that handles everything for them. They don't work full time because they coach well and actually do revenue sharing with students around the country and their deals.
Buying Criteria
Chris goes by motivation. First and foremost is what's the seller going through, good or bad, that they want to fix or get to fix. The numbers are secondary. Motivation than math.
Top Mistakes That New Investors Are Making
Signing personally is a big one. Second is miss managing expectations. The late-night TV shows and some of the seminars will tell them they can do it, but they need to act as if it's going to take them a good 6 months ramp-up period and have enough cash flow to handle that. They better off get a job stabilizing the cash flow, then coming in.
Tips To Chris If He Can Go Back Time
Find a niche, find a mentor, then do it for 3 years. And then the other thing would be just don't sign personally on your loans. There's no reason to. There's a lot of niches in the industry that you don't have to do that, don't get yourself in that position.
Resources:
Website: https://www.smartrealestatecoach.com/
Youtube: https://www.youtube.com/user/smartrealestatecoach
Free Book: https://hugewhy-045226.pages.infusionsoft.net/
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