2023 Real Estate Investing Secrets With Pace Morby

hey what's up guys hey it's clint jones here with anderson business advisors and i promised you that i was going to bring back pace and we were going to do episode 2 on the phenomenal methods he has put together to buy real estate you know he's got a new show out on a e called triple digit flip and if you haven't watched it i mean i don't know what the hell you're doing at night but you ought to be watching that show because it's it's really interesting and it's not like a lot of the other ones that are out there where it's all flat or glam and people walk around acting stupid i mean this is real deals that people are putting together and what you look at when you're analyzing a property and and going through the numbers and and how that works so him and jamil are going through these deals and hey i'm a real estate investor that's interesting to me so pace thanks for coming back on i know that it's hard to get you because you're a big tv star now but i we appreciate the time bro i would do anything for anybody at anderson business advisors you guys for a very long time have been uh people i've been following and you guys are my idols i love all all of you guys there your whole entire team is amazing thank you thank you thank you for having me we just had a baby and we were actually scheduled i think like a week maybe two weeks ago and i had to reschedule because my wife was going into labor and so thank you for accommodating me and being super patient thank you so much that's your second one this is number three well three well you've been through two i mean i don't understand oh bro we were we were done within an hour and a half it was no big deal yeah right honey i'm going golfing i already did two of these right basically yeah yeah see where that gets you um all right so here's the deal in the first one we were talking about you know buying on terms and you're going through some examples and what we're really of our reasons i want to get you back on here is because in this market i mean it's just kind of crazy you're trying to find deals and sellers know that it's all in their favor right now i mean i just closed on a piece of property locally next to my house because i need somewhere to park my my boat and rv and it was you know submit your highest and best offer we're going to review the offers on this date and get your offer in order won't even be considered and when you're up against something like that it makes it really tough to figure out how much am i willing to pay for this because there's really no negotiation but you're still doing this and i know that's got to be a lot of interest to people so maybe you could touch on that for this episode i think it'd be awesome yeah you know i think that most people trying to jump into real estate are thinking wholesale is probably the easiest lowest hanging fruit because i don't have to have any money i just have to go find a distressed seller get them into a contract and essentially sell that at you know a ten thousand dollar finders fee or a wholesale commission or an assignment fee whatever you want to call it and what i see is that it is really incredibly competitive in the cash world right the cash world is oversaturated and it is a lot like that in fact us on our retail deals we're doing the same thing clint we're putting our house on the market on thursday and we're not even looking at any offers until monday we don't even look at them and when that happens here's what is going on the buyer's agents which you know there could be 40 50 offers on a house that we're flipping they all are just hammering my agent my my wife is my agent and they just calling calling calling 10 o'clock 11 o'clock 12 o'clock you know they're submitting letters about their buyer and they're telling all these sob stories and all that kind of stuff and we as the seller in that position have all the power we go we're not even looking at anything until monday at noon so submit your highest and best now i love the position and i feel the power like you can feel the power rolling through your veins when you're in that position like i'm some superhero yeah but i'm also the buyer half the day right i'm going out and looking for deals just like anybody else and my team is looking for deals and we feel on our cash side it is really really challenging and you feel the pinch with every seller in fact we had a seller a couple days ago i like the offer you know my team one of my team members name is mark so mark says this is where we need to be the seller says i like it let's move forward okay well we send over the paperwork and what happens we don't hear anything from the seller and so we have to follow up and then they come back and they go well i said i got an offer 20 grand higher okay well if we raise our price 20 grand can we get the deal done well this went on three times until finally we just go oh my gosh we're walking away the seller is just playing games with us yeah so even the distressed market right the people who are going through foreclosure the people who are going through bankruptcy probate etc they're playing games they're they're savvy to the fact that this is a seller's market and so with terms right you either gonna work with cash or you're gonna work with terms i am just sweeping the floor up on deals with terms and i'll give you a couple of examples i've got an 18-plex in alabama that i'm currently paying full retail for and i'm giving i'm getting the seller about 200 grand more than anybody else was willing to offer her and she's sitting here this is what's so funny about this she goes i don't believe you're you're real you're offering way more than anybody else and literally clint i want to pull this up she says this just happened she sends me a text message her name is morgan and she says we are hesitant we feel like you're offering too much and we don't know you can we put a clause in this contract where uh uh people where we have not we need to meet you in person can we put a clause in here that states that we will not close the contract until we meet you physically in person to make sure you are real so the seller of this 18 plex right now but doesn't believe that i'm even a human they feel like i'm a robot because i can offer so much more now it's not that i'm even paying more it's just that my terms are so favorable to me that really the purchase price is insignificant so the deal is it's two million dollars for an 18 unit multi-family in alabama and the deal is i'm giving her four percent down so i'm giving her 80 000 down and she's giving me zero percent seller financing on the remaining 1.92 million dollars the thing that got her excited is i'm paying 200 grand more than anybody else and so she said look i'm down all i care about is the seller is that i got my two million dollars i was shooting for the highest and best was 1.8 million dollars and i know one of the other cash buyers that's trying to offer 1.8 million dollars he says you're overpaying for the property pace you're crazy i go okay well let's do the math if you buy it at 1.8 million dollars and you go secure financing let's say at four and a half percent over the term of your loan you will end up paying close to four million dollars on this asset however over the course of mine i will only pay exactly what my purchase price was because i structured it the right way so in this market when you're having a hard time buying deals even fix and flip so we can buy fix and flips with creative finance we can buy multi-family mobile home parks single family i just bought a car if you guys are following me on instagram i just bought a car subject to seller was going through leukemia couldn't afford his car payments i just took them over you can take over so many things with terms and pay the appropriate price to the seller but also structure terms that are in favor for you so for me the property will cash flow yes but the most significant thing for me is that every month when i make a payment to that seller i am paying down principal 100 from day one whereas in an amortization schedule clint you know this better than anybody else my first 10 years of my 30-year loan is primarily interest only and here i am in a in a 30-year term with this lady at interest no interest just principal only my payment is paying down 100 principal every single month it is i am under paying for the property because of the way i structured the deal so why would she accept your deal rather than take cash for the property from from another buyer who's going to go and finance it and then pay her off and she walks away with 2 million bucks or 1.8 okay so this is why couple of things why number one is if she pays it right out of the gate right so you know this if i sell if she sells the house to me right now does she have a taxable event for that full 1.8 million dollars whereas if i buy it at two million dollars she has a taxable event but it is spread out over a much longer period of time she only gets taxed on money she actually receives is that correct correct because the irs is not going to tax her in the future and say hey you sold this property for two million you essentially have all these gains pay us right now because what if i default on my loan do she got to go back to the irs and say give me my money back this guy actually never performed so for her she sees this as a way to spread out her tax liability and then also she sees it as a way to lock in her gains okay so she looks at a two million dollar purchase she goes or sale she goes i don't need the money right now but if i can lock in two million dollars with this guy i know for sure that i squeezed out every drop of juice out of this deal and i'm happy her only thing she cared about was two million dollars two million dollars two million dollars when they bought the property her and her husband the number one thing they had on on their board was to sell that property to somebody at two million dollars that was it it wasn't about interest rate or seller financing it was just two million dollars two million dollars two million dollars now if i was her financial advisor i would probably tell her don't sell any asset the rest of your life why are you selling any asset that's what i would tell her but i'm not her financial advisor i'm a businessman working at a deal with another business person the other reason why eighty thousand dollars as a down payment was very significant to her is that she has another deal she's working on where she needs eighty thousand dollars in capital so she says if i can get that eighty thousand dollars i can go put it into another deal she's building uh 48 units and she needs 48 grand to release some sort of loan to her so for her i found the pain that she was going through and i said i can solve and fix that pain with 80 000 now if i'm brand new and i'm listening to this podcast i would be scared shitless because i gotta come up with eighty thousand dollars for an 18 plex right but the reality is i'm actually not even coming up with the 80 000 i'm bringing in a private money lender that's going to bring the 80 000 plus my closing cost so i have structured a deal to own 18 units already rented already renovated cash flowing right now zero percent interest by using somebody else's money and somebody else's asset i win all day long in that scenario now how do i pay my private money lender back i could either refinance in five years and pay them out i could pay them out with my cash flow right or you could even technically bring them on as an actual partner in the deal if you don't want them to be a quote unquote lender so there's a dozen different ways to skin that cat i just chose to say you guys bring the 80 000 to the table i'm bringing the deal i'll pay you interest only for five years and i'll refinance you out in five years as the property appreciates and as i pay my mortgage down 100 principle over the next five years yeah what's interesting about that and i think it's a psychological fact factor that you tapped into which i think some people don't realize is that when you approach a seller and you give them that number that's far beyond what they the next guy is they just get fixated on that and then you throw in there hey they hear the tax savings as well the way we're going to structure this and then they're all right i'm all in right and so that that is important and i hope that people that are watching this right now are picking up on that that that's a negotiating tactic that you're using to you know it's psychological you know figure out like you said what their what their concerns are and then solve those issues for them to help them get to yes yeah and i've got so i've got another seller right now his name is caesar okay this is an interesting structure and i actually have some good questions for you on this one okay i haven't seen anybody do it this way so i'm calling it the morby method and if you guys go on my youtube channel that i have a little bit more of a breakdown because this will melt some people's brains um is i've done deals clinton i know you guys have done deals this way as well on owner finance where seller will just sell or finance the whole property to you okay easy simple well that's great but what happens when a seller says you know what pace i have a wedding coming up for my daughter i have a you know my my wife needs a surgery i'm buying another deal we're trying to pay off this other thing and they're demanding if i sell our finance to you i really need a large down payment in order for me to create a seller finance note and i go okay well you know what that's not going to work for me and either a i get better at negotiating or b i created another solution and the solution i created was i go to there's a couple of companies that do this like myinvestorloan.com is a really good one there's a couple of other lenders there's lenders everywhere guys you guys can find lenders but myinvestorloan.com is who we use and i go to them i get a non-recourse loan which means it doesn't go against my credit if i default on the thing they don't come after me they don't take my assets or anything like that very simple type of loan to get and my investor loan will bring 75 percent of the purchase down to the table to the closing table and then the seller will sell or finance the other 25 so essentially let's say i have a 500 000 purchase price with the seller i can go to a company like my investor loan and say you guys bring the money to the table the seller is going to sell or finance my down payment so i'm essentially into the deal no money so the seller gets a massive down payment and i get what i want where i get into the deal with very little money out of pocket not using really any credit not anything else well that is amazing and that happens all the time people do this in multi-family quite often especially big big purchases of 20 30 40 million dollars you'll you'll go to a big company like marcus milichap or one of these big lenders they'll bring 70 or 75 percent of the money to the table and then the seller because they know that the purchase is a big one they'll say hey i'll sell or finance the last you know five million dollars to you for the next three or five years so you can raise rents and refinance me out guys this happens all the time okay all the time it's been happening for a long time i didn't invent that nobody who knows who invented that but what's happening now more and more is that these lenders are starting to say i don't want to have the seller create a second note behind our first note now that might be confusing and why they wouldn't want that well what that does is that gives the seller the position of strength and if you default that seller can actually go and foreclose on everybody forcing the first position to foreclose on you as well and that might not be the strategy that your lender wants to take so these lenders are saying we don't want any more sellers seller financing in second position so what we've done recently we've we've got a deal with a gentleman named caesar caesar is now doing big projects he's another big investor and he's bigger than me doing bigger projects i mean he's doing deals for like the pentagon and he's looking at like the air his airbnbs and he's looking all his single family stuff and he goes you know it's time for me to trade up but i'm a really smart investor so i want to sell at full retail i don't want to leave anything on the table and i'm going to take my proceeds and then i'm going to go and roll those into some other deals okay let's go to cesar and go caesar i'm an investor you're an investor here's my goal i want to give you full retail literally this is my conversation with caesar cesar i want to go give you full retail on your six airbnbs that are already furnished already cash flowed in florida and i will bring your down payment it's about a two and a half million dollar purchase for these six properties he goes i want five hundred thousand dollars down i go well cesar how about i bring a loan to the table and my lender will bring 75 percent down so they actually give like 1.5 million dollars down and he says i would love that that would be amazing i could actually do more with that and then i don't have to sell her finance as much to you so he's going to sell her finance about 700 000 to me however he can't do it in second position because my lender will not allow it so what i'm doing instead is i'm bringing caesar into my llc which will own the property and my buyout agreement for my quote unquote partner will be the same terms of what my original seller financed transaction would have been so i'm calling that the moreby method i've got a bunch of deals in the pipeline now it's like unlocked another level where now i'm going back to all my leads that wanted way too much money down and i'm like i can make that deal work i can make that deal work i can make that deal work and now i'm all of a sudden overwhelmed with deals because i unlocked another strategy that nobody was telling me about i just figured this out so the this morby method um you know i'll break it down i'll even give you guys paperwork i'll give it to clint i'll give you guys the paperwork in which i'm structuring and clint can decide to share it or not share it on the channel to whatever yeah sell it whatever i'll give it away i always give everything away so clint my question is if i structure a seller let's say the seller is seller financing the back end seller finance note to me and i can't have a second position so what i do is i bring the seller into my llc and what he does is he has a contribution to my my llc and then i have a buyout agreement essentially for that contribution at whatever terms that that is is there a specific way that that seller gets taxed on those gains differently or is it still going to be the exact same because essentially it pertained to the real estate transaction well interesting huh yeah so in that scenario what you'd want to do is definitely enter into execute that purchase and sale of his interest immediately so he doesn't become a full-fledged member for the for even a year more than one day because then he'd be entitled to cash flow and he'd be entitled to depreciation off that property so yeah i mean you could probably get there a different way and the way you might consider it so it would be cleaner so that he never shows up on an operating agreement would be and especially at 20 i know you already have the lender there one of the concerns that comes up a lot is in financing is that if there's a member with 20 or greater interest i've seen some banks go down to 15 and you're trying to get a loan they're going to run him his credit look at that person in order to to get the docs complete right so that's why we're complete we're creating is two separate transactions so yeah completing the first transaction escrow's closed deed is transferred into my llc we then create a second leg of the transaction and we structure the llc in the operating agreement that way in the second leg so that he's not party to the first lender you could accomplish the same thing if you gave him a security interest against your limited liability company unit so what you do is you would pledge them as collateral okay and that 20 piece that you still own uh in that deal and you can even held in an escrow account if he was concerned about it but their pledge now is collateral so you're still the member if you don't make the payments then he can step in um to that llc at that point in time and this way you keep them uh completely out of the deal and so so there's you can do that under the ucc commercial code under article eight you just you would just structure your llc so it's a certified security so it is classified as such so that if he takes ownership of that interest then he owns the llc i love this yeah it's a different way of doing it but i mean you still get to the same point i i just would you know say that if you looked at it from that standpoint i think that's probably an easier sell hey you can't have security in the property but you have i'm going to give you all my llc interest as collateral for this deal therefore if you don't get paid you can take over my llc and you get you get the property indirectly uh by going after well you wouldn't get the whole thing you would get you know what's owed because then um they would do a liquidation on that or could you write it in a way that he could take over the whole llc and just take over the existing loan subject to uh well but see here's the thing if that property went up in value let's say we're three years into the deal okay you bought it for two now it's worth 2.9 all right uh you have a lender on there that loaned you 1.5 you have 1.5 of equity you don't want to give up all that equity because he's only owed half a million dollars plus interest at that point in time so you still want to be able to serve to get your equity out of the deal but what if it's a bad deal right what if i mismanaged the deal right i'm brand new i mismanaged the deal i'm not paying my my bill to the to the lender or whatever or to the job yep just walk away he would take over the he would take over the llc um at that point in time you walk away since it's a non-recourse no he takes it over subject to that that loan and then it's between him and the lender because depending on how you're structuring or what the lender requires when i see what happens when i get into commercial deals depending on the lender they may ask for copies of my tax return on an annual basis some do some you know this i mean they do the same thing to you uh and if they saw that that now that tax return that 10 that 1065 partnership return assume that that's how it was structured um that llc return is no longer listing you on there or your 1040 shows your that property on your 1040 because it was disregarded llc they're probably going to want to then run him but it sounds like he can qualify anyway so so the clean the cleanest way to do it i like that i really like that so you give them essentially you give them shares of your llc as collateral correct not actually giving them shares you're not giving them ownership you're giving them collateral therefore they have no ownership they don't have to worry about the depreciation appreciation none of that stuff after a year and one day and you structure in a way if let's say that i default would the seller be able to come in and take over my llc through like like a an amendment of sorts to the state they just go down the state and say here we're amending the articles well correct that he would take over that interest because you pledged them as collateral so they so they could do one of two ways i mean you could fight them on it but then they would move through a foreclosure action essentially right to take title to your limited liability company then the court would award him the llc and then you just be working out there what is the difference in value of what he's receiving versus what is owed they could bring an equal i don't know if you get a special master point at that time and sell it but this strategy what you're talking about the way i've commonly seen it done uh on big deals is i mean you're on to it that's what they do but they take they they pledge their interest as the collateral back to the seller yeah i i think it's just cleaner and easier that way if we pledge our interest as collateral it's an easier way to do it and all he would have to do then in order to securitize that is file a ucc filing with the state saying listen i've got an interest in this uh asset and so now he's protected because you say hey look and i can't i couldn't sell my llc people are gonna you're going to people are going to be put on notice that you have this interest so that's why uh i would probably run it because if you brought him into your llc even he's there for two days or ten days or however it is now you have an obligation to this guy is there no way you can structure an operating agreement to keep him away from having any sort of rights benefits etc of the llc well you figured that out you let me know uh because it's the problem that you have i mean you can write it you can write anything you want in the llc just sit in the corner and keep your nose in it and shut up right but uh the courts if you were to to litigate it they're they're not going to typically respect those terms and you've seen some actually movement in certain jurisdictions for minority rights meaning that you have a small interest in a company so you're a minority owner in that company and the managers and the majority owners are oppressing you through financial means to to get something out of you i mean if we went into an llc agreement together with um let's say non-pro rata distributions which means i can distribute the cash anywhere i want you own 45 percent i own 55 percent i have all the control and all the votes we could essentially do this i can make a million bucks in income yeah give you zero and i'll take the rest out as a loan to myself and you'll pay tax on thousand dollars in income even though you didn't receive it yeah and so there's been cases situations where people have done that to other individuals and that's why if i was coming into that i'd be really leery so whenever i'm looking at an operating agreement that a client sends in and they're going to come into a joint venture with someone you know i'm looking for how distributions are going to be made are they guaranteed tax payments because i've had a few clients that have had the screws put to them where they were just saying how do i get the hell out of this deal because it's killing me just on the taxes because i have no income coming interesting this is that was so helpful there you go you're helping guys this is how you work out deals this is what's so fun about anderson is being able to listen to their youtube and like all the stories of their clients and what they've gone through and also when you run into something you never stop and just go it's impossible i can't do this deal sit down and figure it out this is why you have people like anderson business advisors to actually have a conversation with and go hey i'm running into this situation right like toby does um he does what is it tax tuesdays i believe it is tuesdays yeah and my bookkeeper goes on there frequently and asks questions she's like hey this is what's going on right because we have i have a charity with you guys and i have my iul with you guys and it's been a good experience you guys have been great so my bookkeeper is going in there frequently and asking questions going hey i hit a block wall i know that there's an answer here i just got to get the answer from the right person so it's the same thing here it's like i know that there's another level to unlock a whole bunch of deals that i'm not touching because the seller wants too much of a down payment but i don't want to be so cash cash heavy into all of these deals i know what everybody says like not everybody but the dave ramsey crowd says pay everything off in cash the robert kiyosaki crowd says pay nothing off like literally just keep going out and getting new loans on your on your houses and take debt and go take that debt and go live life and buy new assets and do all that kind of stuff i'm a lot more towards the robert kiyosaki side especially if i can create terms that are non-recourse and those types of things so when you run into something like this where a seller says i want 500 000 and you're just brand new and you're trying to get your first deal most of the time you would just run away from that deal and go seller wants too much money however there's probably 50 000 deals to be had right now in the country that people are throwing away every single month that they're just saying that's not a good lead that's not a good lead that seller wants too much money so you just got to have the right conversations with the right people and figure things out by being creative simple where are you finding your deals right now uh three different places so we have um one uh our we're direct to seller so we have cold callers we use a company called startvirtual.com for anybody that wants to get virtual assistants that's who we use there's a hundred different companies that do that so we use starvirtual.com to do our uh phone calls our cold calling and our texting that's our direct mail or that's our direct to seller model we it's more automated that way and it's nice to be able to turn that on i know a lot of people do direct mail and things of that nature but it's the cost per contract on direct mail and ppc and seo and billboards and tv and radio and all that kind of stuff to get a seller's attention it is incredibly expensive the cost per contract is probably ten thousand dollars which means i got to spend 10 grand in marketing to get one house under contract yeah so for us on the cold calling and texting it's closer to three thousand dollars per contract so i go spend three grand i get a contract which is great that's one avenue second avenue is probate attorneys we get so many deals from probate attorneys people that you know they inherited a property with a mortgage and the family doesn't know what to do because they now have an expensive mortgage that doesn't have a lot of equity or maybe mon mom and dad recently took out a reverse mortgage maybe there's something tricky that a typical cash transaction can't solve and so we go and solve those issues the third way we get them is honestly just by instagram facebook youtube all of these things people reach out i've got a deal right now two million dollar deal in macon georgia commercial property this guy inherits a commercial property it's basically like a hardware store split up into four or five different units and it's all rented out and he inherited it from his father who recently passed away there's an existing loan on the property and he goes hey i saw one of your podcasts i have no idea what to do with this property it's cash flowing but i'm stressed out if i could just get 10 grand and walk away from this thing i'm like that thing's cash flowing like 8 000 a month it's got 16 000 in rents and it's got a 6 000 mortgage with some maintenance and other things you know allocated to the side you're cash flowing like 8 grand a month and you just want to you want me to pay you 10 grand to walk away so i'm in the middle of those types of transactions from primarily just building good brand and helping people along the way through instagram facebook and youtube what do you think of a prop stream or those types of services i love prop stream i think they're great we we stopped using prop stream to comp and the reason being is because prop stream removed their mls data and so it makes it really hard for you to be able to comp and do comparables on there we use batch leads as our primary comping source and then prop stream is amazing because if i want to get a foreclosure list or i want to get a probate list or i want to get a divorce list pro prop stream is like one of the best to get those lists from so if i'm in the audience and i'm listening for the first time guys where we get our off-market deals i don't really do on-market deals right there's so many different ways to do this business and i think clint you would agree with this the most challenging part of real estate is that there are too many ways to succeed and you could go get a deal a thousand different ways and every time you ask somebody where does your deal where do your deals come from how do you do marketing nobody answers the exact same way so when you're brand new in this business and you go i just want to follow one path my suggestion guys is go find somebody you resonate with that is doing the business and follow their path because every path actually works as long as you actually apply apply the teachings and you take action but um for us we realized a long time ago that we don't want to work with on market deals because we're now battling with real estate agents and the primary thing real estate agents care about is their commission they don't they're not caring about me getting a deal they're not caring about whether their seller is getting the most money for them it's how many deals can i crank through my commission and my broker so i can get a paycheck yep so we prefer to go direct to the seller and the way to go direct to sellers find sellers who are in distressed foreclosure bankruptcy divorce those types of things our favorite list right now is foreclosures because foreclosures are back they're not people are now getting foreclosed again and so they need our help to come in there and structure deals that that keep them out of foreclosure and help them move on to the next chapter of their life so what are you seeing then um just as you know being who you are in the industry now that the coveted restrictions have lifted as far as the moratoriums are you starting to then see more opportunities on the foreclosure side short sales are those coming up yet or is it still that the market's so hot that they don't need to go down that road there's a guy named matthew potter and i you should have him on your show he's done 17 000 short sales he is phenomenal he's one of the few people i know that are still doing short sales in volume but i think that the reason why is because he branded himself so well and he can do short sales in any market so he does really really well but for the most part short sales are not they don't happen that often per state so you kind of have to cast a wider net and go nationwide if you're doing short sales but foreclosures right now maricopa county where i live which is in phoenix and the surrounding area maricopa county we have about 40 people every day that are getting foreclosed on at the county courthouse so 40 people times 20 working days there's 800 people getting foreclosed on every single month in just maricopa county those are people that you can call and get a cash deal with save them from foreclosure you can get sub two deals from these people you can even partner with them on like a novation agreement so we've got a couple of these going on right now where if i bought a house um from somebody on foreclosure a lot of times it means that their margin after you sell the after you renovate the property is very small and so most investors come in and they go okay well seller you owe 220 on this house and the house probably is only worth 300 and it needs a 40 000 renovation this thing's skinny especially if i have lending costs up front i have points i have to pay i have closing costs up front i also now have hard money payments along the way for the two or three months i'm renovating it so what we do is we just come in and go how can we just leverage your existing mortgage and we go renovate so i don't have to close escrow upfront i have no escrow fees no title policy i don't have to get a lender no funding fees none of that stuff and i go save 10 or 12 000 on my fix and flip by doing a novation agreement and then i go and i sell it on the retail market and i get the seller 10 grand to walk away when all is said and done we're doing a lot of that creatively on the fix and flips where people's foreclosures still don't quite have enough equity and to answer this question a lot of people go man covid gave people a ton of equity tons of people are making money on and they're they're primarily right but what about the people that have been refinancing their homes in the last 18 months and the last 24 months in the last 12 months that lose their job because of kovid now those people have had a house less than a year and it hasn't appreciated to a point high enough that a cash buyer can come in and buy it so you've got to understand there are tremendous opportunities and foreclosures if somebody focused only on foreclosures your acquisition business could probably generate two to three hundred thousand dollars a month in wholesale fees and if you add fix and flip to that you probably are somewhere around half a million dollars in profits just focusing on foreclosures only yeah and it's in your market because so many people you know think that well my market's tapped out or it's too expensive here to make that deal work but what you've been talking about is that getting into properties for zero down five thousand ten thousand dollars down so it doesn't matter if the property's worth a million dollars or two hundred thousand dollars because when that debt's on there it really doesn't make it worth that much and so they're happy to get out of it so it gives you opportunities so that's what i hope people get out of this you know that want to get started that watch my channel and you know are starting out in real estate investing is that you don't need to you know like you were talking i'm buying in alabama i'm buying in georgia you'll get there but it's a process you go through you know start local uh for many of them build up that comfort levels uh i think is the best unless you have a support team that can help you if i was brand new clint so i'm doing this i'm doing this really cool thing in july so i think the number one question guys like you guys like me get um probably top five questions is clint if you were gonna start all over today what would you do to get into real estate or what would you do to go start your practice if you had to start all over today knowing what you know now have you ever heard that question i've heard it i hear it every day especially in real estate like how can i go get a deal pace if you had to press the reset button and you only had 30 days what would you do tell me exactly what you would do so i can go emulate it so i've heard this question so frequently that on july 1st through july or august 1st what i'm going to be doing is i'm going to be selecting somebody that i move my wife my family to their market i drop everything i'm doing it'll be between season 2 and season 3 of triple digit flip i'll have two month break and i'm going to move my family to somebody's random market right they'll get selected and i partner with that person and i document every little thing i do and i give them all the profits of the business that we create together for those 30 days wow i just found the new title for this episode it's going to go viral partner with pace for free yeah partner with me for free so what i'm doing is i'm going to announce it i think sometime in april i'm going to create a free it's completely free i have nothing to sell i am not selling anything if you guys want to buy something buy something from somebody else i'm doing it completely free because i want to do two things with this i one want to create a series that shows people and ultimately answers this question because it is an ongoing five-year question i've been getting ever since my social media started growing it's the question i get the most how do i start what is the first thing i should do pace if you were going to start over today what are the first things you would do and i get it and i answer it and then i answer it and i answer it but there's never been a series that i've created that i go here you go go watch this full series that's one thing i want to do i want to create a series that i give away for free the second thing i want to do is i want to write a book for people who are book readers and go all right so i partnered with this person let's say his name is tim and every morning tim and i got up on day one all the way through day 30 and we both wrote out five things that we believed we needed to accomplish in our business that day that were the most important things and essentially each chapter would compare what does tim think versus what does pace think and you would see the mindset between me and somebody who doesn't have my experience and ultimately over 30 days of the book there would basically be 30 chapters you would see how tim's mindset would start shifting more to a seasoned real estate investor just by having these morning meetings and then immediately going out and just taking action and then i'll what i'll do is i'll accompany the video series i'm going to hire two videographers just follow me around and document everything i'm doing every day for eight hours a day and i'll get a deal i'll get a deal literally in day one and all i'm gonna do on day one very simple i'm gonna go prop stream would be a good one you brought up prop stream um i i would go to prop stream i would find five or ten buyers and i would call those buyers up and i'd say hey buyers i saw that you bought on 123 main street are you guys finding looking for more deals they go yes we're actively buying i go great then i would go online and i would find i would type in cash buyers let's say it's arlington texas cash buyers arlington texas and i would pull up 25 or 30 wholesalers and i would call them and go what deals do you have what deals do you have what deals do you have what deals do you have and in an eight hour time frame i essentially would just be the middleman on a deal and make five grand 10 grand 15 grand on day one and then i would immediately take that money now most people go well that's going to take 30 days or 45 days to let to get that money in your pocket well this is another creative strategy i've done this multiple times i go to my buyer and i go look i'm going to sign this deal to you and the price you're willing to pay is 15 grand above what i contracted it at however if you pay me five grand today i'll let you i'll i'll take my assignment fee from 15 grand to five grand if you pay me five grand today okay i've done this multiple times yes they run the risk of the deal not closing i totally get that and i will immediately take that five grand reinvest it into something else and start doubling down doubling down doubling down doubling down and i'll do that for 30 days not that exact strategy but that's how i get my first check and i'm gonna do that i'm gonna do it live every single day i'm going to be on facebook live youtube live completely doing this for free failing seven hours a day and succeeding one hour a day sounds like another television series yeah we a e is trying to pick it up as like another series the problem with that clint is that a e has to have everything so structured so that the audience can like follow along with the story and they want to release it in episodes on weekdays and you know put commercials around it and it slows down the authenticity of a nitty-gritty zero-to-hero type of 30-day challenge and so i'm like i don't know that i'm gonna go that route and i got a call from elena cardone yesterday and she said pace we heard about your challenge we want to produce this and put it on our stuff and i'm like as long as you let me have full creative control of this and let me do what i want to do and i'm going to fail six hours seven hours a day and be on the phone hearing no all day long and it's gonna be mundane and annoying and you're gonna lose viewership because people are not gonna see a lot of action and then the 300th phone call i make that day i'm gonna get a deal are you okay with documenting all of that she's like absolutely let's let's sit down and talk about this so this is the kind of stuff i want to do with my freaking life i know it's weird but i want to do those types of things and be creative and solve problems for people or solve problems for a prior version of me i want to yell so loud and be so loud with my social media that i'm almost going to yell so loud that a five-year version of me five years ago can hear me and say get started do this do that go faster go faster double down so stay tuned for that guys july 1st to august 1st i will be going live yeah maybe i'll call how do they get involved so they want to get selected the people that are watching this where do they need to go i would go on my instagram it's going to be completely free guys so i don't have a website i'm not trying to do a webinar or anything like that that's trying to sell anything i genuinely want to do this for the real estate community and just have you guys watch how a how an experienced real estate investor stripped of all his money only have a cell phone how could i start with nothing in a random market and not just do it myself but show somebody physically so i would have the extra weight and anchor of another human being attached to me having to educate them like they're the audience just follow me on instagram um in the next couple of weeks i will start posting about it and we'll do we'll we're ending we're going to end up doing a random selection process and it's going to be touted and not touted but it's going to be broadcast on probably one of my podcasts maybe wholesale hotline where you've been a guest clint and i'll do a randomizer and select somebody i just hope it's not going to be north dakota i don't want to go to north dakota but if it is north dakota i'll freaking go to north dakota why if you're going in the summertime it won't be bad no it won't be december i don't disagree if it's we're going summertime it's the stupidest time but i have no control over my life right now with the tv show so i would end up i would really hope it's like southern california or somewhere in like a mountain town where it's like 80 degrees or 70 degrees maybe i'll go to colorado who knows you know it's gonna be cool if you end up in a market like a california or something or you're going to go to one of those where you've got different elements where people think hey there's nothing available here it's too pricey then you show them how yeah you can make money in these inflated markets or you're in a market where people think well who would ever want to buy a house in this little town yeah it's tough we did we did this thing clint uh last summer so we did this thing called zero to hero season one it was the first time we did anything like this and we let our audience choose the market that we started in brand new so we hired cold callers we went to you guys and got an llc set up we did all the things like we did literally everything from scratch in this zero to hero process and we showed everybody three hours a day for 30 days and we got so much criticism because the market ended up being random for charlotte north carolina that has a really hot real estate market and so so many people are like you should have chosen somewhere it's impossible to get a deal i'm like man i'm damned if i do and i'm damned if i don't like what do you want from me so it is going to be completely random and i hope it is one of these impossible areas that you know there's nobody around there's no real estate deals and i have to figure out how to do a deal in that market i hope that is the case that'd be interesting well here's what i'm gonna do we're gonna put the links to your instagram in the show notes links to your youtube channel as well because you have so much uh content there um i just want to thank you for coming on and spending the time with us again doing episode two because everyone wanted i've i've spent years of my life with you in my pocket meaning i'll put your guys's youtube channel on my phone i have youtube premium so it'll let me listen while my phone is like turned off and i'll do chores around the house i'll be driving on road trips my wife knows your voice as well as she knows my own and i am so grateful for the opportunity to be on your guys's channel you guys are epic there's nobody that serves higher in the community on youtube and social media in your niche than you guys you're the kings so thank you so much oh i appreciate it i mean the sentiment is is the same going back to you because if you guys if you haven't been to his youtube channel yet you don't know what you're missing it's just like ours it's just all pure content and that's what i like about working with you is that just what you've been sharing today you're not saying well i got some proprietary system if you want access to it it's gonna cost you twenty thousand dollars or ten thousand dollars because there's plenty deals out there for everyone yes the key is that by helping other people become successful it's rewarding in and of itself for you and i i do have something cool i'll i rarely give this out but i have just because i forget not that it costs any money but i have an ebook and the ebook is a unique ebook it's actually a pdf that is five chapters of me talking to sellers and overcoming their seller object the seller objections on creative finance subject to seller finance novation agreements and it's actually you open up the pdf and you click on the link and it opens up a video of me talking to sellers and overcoming the objections on real life deals and then there's like paragraphs breaking down why i said what i said and all that kind of stuff so um i'll give you guys i'll give you guys an e-book that you guys can just give away for free that'll be in the notes as well so awesome all right bud thank you thank you brother appreciate you all right take care

Channel: Clint Coons Esq. | Real Estate Asset Protection

Views: 30,453

Keywords: will the real estate market go down in 2022, real estate market 2022 predictions, pace morby, real estate investing, real estate, real estate mentor, pace morby subject to, real estate wholesaling, pace morby creative financing, real estate advice, subject to real estate, investing in real estate, real estate investing strategies, real estate investing for beginners, clint coons, subject to real estate investing, real estate investing 2022

Id: aqvOkJiwKjg

Length: 48min 44sec (2924 seconds)

Published: Thu Mar 31 2022