What You Missed September 2014 General Meeting
by Rob Earhart
A Better Way to Real Estate Wealth
Presented by: Lou Brown
September 2, 2014
“We buy, sell and hold real estate,” proclaimed Mr. Brown. “How many want to do GOOD while doing WELL”? It’s about helping others as you help yourself; a lot of people.
How many people want to buy a house for $30k and sell it for $60 k? Lou then listed a host of successful real estate gurus that have invested in his system. “That is something I will be covering today and tomorrow,” claimed Lou.
“We are going to talk about profiting in your investing career and we are going to give away two tickets to the Millionaire Jumpstart on Sept 23 to 26.”
One of the things I want to talk to you about is the foreclosure market. In 2013 there were 1.4 million foreclosures and this year it is estimated to be the same. Lou encouraged people that agree to say “YEAH, BABY.”
Tonight I’m going to talk about the selling side. How to sell properties before buying them. Lou talked about buying a home in Atlanta for $24k that was worth $100,000. Lou said, “I am the founding president of national REIA, the president of Georgia Real Estate Investor’s Assn. and I found out that a nonprofit organization needs to make a profit. Non-profit organizations buy services from for-profit businesses.”
A doctor Greyson has 6 units with 70 tenants in a sober housing program that helps people. The doctor collects $600 per tenant per month on 6 properties. Doing good while doing well.
My mom came across the Atlantic as a war bride but her husband did not turn out well. Her second husband was my Dad. Our dining room table was a card table bought with S & H Green Stamps. I got to lick the stamps. This is just a little background as to where we came from and where we made it in real estate.
Aunt Mable told me a story when I was 8. We lived in a duplex and she said we just bought the duplex. We went to the bank and bought the duplex and the people on the other side paid the money for the payment. She lived rent free. “That was the first time I found out about a parallel universe,” exclaimed Lou. That was when I found that knowledge was power. Then they bought another and I saw their lifestyle change. They went to the steak house every night and every year she bought a new Cadillac.
Then she asked me to help them move into a new house. It was a great brick house and I asked her how she did it. She said “accumulate properties.” Then, when I was 18 years old, she said you need to get a house. I told her I could not qualify but she introduced me to her realtor, Sue. We looked at a lot of houses that I could take over the loan without qualifying. In 1982, Congress in its “bought wisdom,” passed a law wiping out those types of loans.
I found out that if you place the house in trusts the banks could not call the loan. “Don’t go to the bank to qualify, just buy real estate,” explained Lou. You can be in this business no matter what your credit looks like. That is why you should take title in a trust.
Even saddled with debt, you can get rid of it quickly. “You deserve what you want if you want it.” One of the things we like to do is to travel. We went to Yosemite and it was great. How many want to travel? We believe in quarterly vacations. Last week we stayed in our condo in Destin, Florida and had a great time.
Make a list of everything you want and google it to see what that costs. Add that up and see what your number is. What does the better life look like and how much does it cost? One of the things I like about Monopoly is that everyone starts at GO. The biggest holdback is the fear of losing what you have. We eliminate the fear.
Do you have a money-making business model? We help you build your business to be a cash machine. Cash now, cash flow later. The “Street Smart” system. I’m not talking about buying a house, but building a business. If you build a business, you can sell your business. We’ll start with the small stuff then work up to the big stuff; forms, formats and formulas.
“You have certain beliefs and we want to give you a paradigm shift. A paradigm shift is a belief shift. We are going to shift our thinking,” said Lou. Stop patchwork quilting and develop a theme. When you think of real estate investor you think of a crook, shyster, dishonest.
We restore houses for people to live in, increase the tax base and we get no credit. We are going to become an ”affordable housing provider.” It sounds non-profity. Are you and your business just about the money? Doing good while doing well…making a difference. What about a path to home ownership?
A national program showing how we can make a difference in other people’s lives. What if we turned on the marketing switch? Some will have a little money and some will have a lot. You will give them an opportunity to change their lives. Are there a lot of people with bad credit? The stats are 80% of the public cannot qualify for a loan. They created a law called DODO FRANKENSTEIN. (Dodd Frank). What if we could work with someone and we start with their credit repair and put them on their path to home ownership. WE could find buyers and start them into a program even before you buy the house.
I didn’t get this for 25 years. I thought it was about buying the house, hiring contractors, finishing the house and putting it on the market. Then I wait and wait and then the buyer starts to give me a hard time and complain but I had to sell it to get rid of it. Then I had to do it all over again.
That was the beginning of the new marketing plan: getting the buyers to come to me in droves. We get a credit report, see how much they have and see how long it will take to get them qualified to buy a house.
Now we are going to place them into a membership program to show them how they can grow from a renter to rent-to-own, to buyer. A Harvard study says that families are stronger if they are in a home instead of an apartment.
Does credibility matter to buyers? Yes, and if you are in a network that gives you credibility and buying power. You will have power in numbers. You will receive a certificate that shows you in a network. Then we will help you build a business and you will become a “certified housing provider.” If you are going to buy their home by taking over their financing or having them finance you, you will need the credibility afforded by a nationwide network.
Our mission is to transform lives and allow families to enjoy affordable housing. Where do you begin? We are going to use a barrage of marketing to attract the buyers.
We are going to help you succeed. All you have to do is follow the instructions. Just like a franchise, you don’t have to think. Just do what we tell you.
We attract customers who can do some of the repairs. What if you did not have to do the fixup? There are over 400 homes in the Tampa bay area that are under 60k that need fixing for you to sell. In Tennessee, they only have 120, so you have a great opportunity.
On September 23, you will receive another millionaire manual to show you how to find the deals, find the buyers, how to buy, etc. We will also show you how to turn your tenants into buyers. A lot of landlords are trapped and lose money cashing out. We show them how to sell at 20% above cash market. This is “House Monster” and it is very successful.
Don’t send your buyers to the bank, be the bank. “My goal is to make sure you have 20 to 25 properties free and clear giving you a comfortable lifestyle getting checks every month with no headaches,” proclaimed Lou.
Lou stayed around to answer questions for quite a while and many signed up for his Wednesday class and his House Monster course.