What You Missed July 2016 General Meeting
by Rob Earhart
House Monster: Selling Houses as Fast as You Can Buy Them
July 5, 2016
“Yeah, Baby!!” was Lou’s introduction. “I want to teach you how to make money tonight.”
Lou introduced an extensive list of real estate gurus: Ron LeGrand, Preston Ely, Lou Castillo, Bob Diamond. “All of them started in seats like you and invested in my system." He explained, “they teach the different aspects of the business and have left the business development to me.”
A lot of folks are in the hobby of real estate, just dabbling in it.
Lou continued, “My wife and I just got back from a three-week cruise around Europe. Houses were bought and sold without me getting a call or text. When I got back, my system collected a $50.000 check for a deposit on a house.”
They call me the nation’s leading expert on buying and holding profitable investments. I’ve had 14 different courses for sale and shared the stage with the likes of Donald Trump.
We are going to have a class on Friday that teaches you how to hold your properties in Trusts. Tonight we’ll cover selling properties profitably and Friday how to buy profitably.
I was a founder of National REIA and the president emeritus of Georgia REIA. I have done a lot as a volunteer for non-profit organizations and found that each one of those organizations do business with for-profit organizations.
We are a for-profit business and will be renting to a non-profit for $2,500 when the normal rent would be $1,200. They will draw in a lot of money due to their use of our property, and they fix it up also. We give credit for their repairs so we don’t have to do all the work.
Lou reminisced, “My Mom came over on the Queen Mary as a war bride. Her new husband was not a good fit, so she let him go and remarried to my Dad. Then, he left and it was just she and myself. We were poor all the time and that was my life. Our dining table was bought with S & H green stamps and it was my job to lick and stick.”
That gives you a little history and there was no money. I was lucky enough to learn at eight years old from Aunt Mable. She said, “we bought the duplex we live in and the people next door were paying for the duplex.” She then bought another where the one side paid the mortgage and they got to keep the other half.
Mable was then buying new Cadillacs every year. She said, “you can get ahead by accumulating property” and at 18 she told me, “You need to buy a house.” I then bought my first house with a non-qualifying loan before the government did away with them. After that I was able to take over the existing loans by having the seller put the house in a trust and selling me the beneficial interest. That way, I bought the house and never had to go to a bank.
My mother owed a lot of money, so I rented her a house for $100 and she put the $500 balance of the normal rent to pay off her debts. When she retired, she was debt free.
“The seller is the bank,” exclaimed Lou, “that’s the way we structure our marketing, and our scripts lead them down that path.” On Friday I’ll show you how to structure the marketing and the contract to buy them “subject to”.
Now I’ll show you how to sell the properties to align yourself with the things you want. Make a list of everything you want, Google it and find out how much those things cost, then add them up and find out your “big number.”
I have a formula. Business is a formula. Once you learn it, you can duplicate it. We have designed a way to attack your number and show how you can have it. Lou exclaimed, “we wanted to travel and visit all the countries of the world and all the national parks.”
“I thank God for Real Estate allowing us to do what we want,” proclaimed Lou.
When you look at a property, decide if it would make more money if you hold it rather than flip it. You cannot get wealthy by flipping and you need a plan to get what you want.
“I like to play Monopoly. You have to roll the dice and take a chance.” “How many people are afraid to invest?” Lou asked. Several people raised their hands and Lou said that that is normal.
Do you have a proven money-making model? Flipping houses is a job. You have to do it over and over. Checks are sporadic and unpredictable. With my system, I already know how much I’ll make because we have several hundred tenants that pay monthly. Some even pay through payroll deduction. We even take in rents every two weeks, giving us an extra month’s rent. We call that the “Life-Support Payment.”
There are 133 million housing units available to buy, and only 66% are owned. There are over 104 million people who don’t own a home and we are increasing by 3,600 people every day. In addition, we also allow another million people to legally come into the country.
Buy right and buy cheap. Cash now and cash flow later. How would you like a cash flow that brings you money every month? Our system is the “Street Smart System” because “Everybody needs a house.”
Real estate is just a commodity. Financing is where the money is and that’s where you want to be.
In order to get what you want, you will need a paradigm shift. How many people cobble things from everywhere: a class here and a seminar there?
With our system you can make money now before you even purchase a property.
Do real estate investors have a good name? Ever heard the terms; Shyster, opportunist, lying, cheating, money grubbing, etc.?
What do we do? We buy vacant properties, buy materials, repair the homes and improve the neighborhood and we don’t get the credit we deserve.
Are you and your business just about the money? Doing Good While Doing Well is my book. Become an “affordable housing provider.” “Affordable housing is what the people can afford,” explained Lou. We’ll find out how much they make and divide by 3 so they are not spending more than one-third of their income on housing.
Path to Home Ownership is our program with steps that give the opportunity to buy an affordable property. We open the market up so they can get into their home today.
In most cases, the new owners cannot qualify immediately, so we put them into credit restoration so they can repair their credit. Instead of building an inventory of properties, you are building an inventory of customers. Once they can qualify, we can go to the MLS and find the house that fits their situation. 80% of America cannot qualify for a traditional loan, so they need our services.
Does credibility matter to Sellers? Buyers? Lenders? Street Smart gives you membership in an association. You will get a certificate to use in your presentation: one for buyers, one for sellers, and one for lenders. You receive national certification for you and your business. It provides “National Branding” with signs, brochures, magnets, etc.
We even have a mission: “Our mission is to transform lives through affordable housing to empower families and individuals to enjoy the American dream of home ownership.”
In franchises, everything is done for you so you can be a success. Our Affordable Housing program does all that for you, just like a franchise.
You can face your fears because you will know where your customers are before you buy a house. They get to choose their colors, appliances, etc. They even help with the repairs.
Most investors are chasing the “qualified buyers” even though they are only 20% of the market.
Major paradigm shift #2: Find your customer first, then find your market. We have a preliminary application where we charge a $50 analysis fee for each individual.
Within the target market, we put out flyers in that area so you are not driving all over the area.
Lou then described a few of the examples of how his students have followed the program.
Where do we find the properties for our buyers? The Tampa MLS showed 271 houses under $80,000 with 3+ bedrooms and 2+ bathrooms.
Lou then went on to describe the Friday event and the House Monster program.
“You don’t have to create anything; you just have to implement,” exclaimed Lou. “Yeah, Baby!!”