How to get paid three different ways on one deal

0:02you've had a lot of success obviously since 2008 I think it's tempting for somebody who is just starting off to look at a guy like you and say you know I want to have that type of success and they get frustrated if they're not achieving that really quickly but I think people don't recognize their stages of growth and so for from your experience what would your advice be for that sort of first stage or first milestone for somebody to get to if they're just starting off in real estate investing yeah huge this is good well here I'll say it this way there three things and this is for anyone like it didn't have to be real estate but but to your question let's talk about real estate the number one you well before you give the three things you are going to be frustrated like

0:51That's called normal you are going to grow through it I call it stacking like it's going to take time and so before I get the three things I was going to say is I'll say this you there's there's a certain like we teach three things we teach mindset skill set and and systems well skill set you can go to my YouTube channel and learn how to do a deal technically and go okay I got it okay systems pretty simple we have some Automation and nothing crazy it's the mindset piece and why do I say that because people go oh come on because to move from a W2 to entrepreneurship or to scale as an entrepreneur if you're just a solo preneur is a different ball game so you got to grow to be that person so with that as a back that's why you'll be frustrated that's why some people do a deal in 30 days and some people we had an event two weeks ago Kirby and someone stood up John is his name and he's not far from here in Boston

1:4015 months to get to his first deal why stuff going on like life going on and kids and you know mental stuff and baggage but then that week he broke through because mentally that's what happens after a deal and he did three Deals right right away so the three steps is this are these one find a niche in real estate there's so many great ones I'm not so naive I'm biased to creative but I'm not so naive to think it's only Niche there some great niches and I've got plenty of people on my podcast who make millions do other things so find that you can get behind because some niches when I say get behind you know some people like to sit behind the computer and do a lot with that or flip playing behind a computer if you like helping people you'll probably do great and creative so there's just different different Avenues second find someone in that Niche cuz they're out there you don't have to recreate the wheel that

2:28has gone through what you want to go through and has had great success but when you pick that person or Community please please please do yourself a favor and pick someone that you can relate to in every other way too here's an example I know plenty of people without calling them out who had great success in our industry in others that trash their family life or trash their relationship with their kids or got to like that to me that's not worth it but you pick so find the nich pick the personal community in that nich who's done it already don't try to recreate the will and here's the biggie to your to your question a little bit more direct put the blinders on for 3 to 7 years because it doesn't take you 3 years to do a deal but if you commit to that I know the first curveball that you alluded to is going to happen like you're going to have frustration I know you won't quit if you're committed for three years now I say 3 to S you might be too young to remember Brian

3:17Tra yeah Brian Tracy but Brian was on my podcast at age 82 during Co and I said My Philosophy of 3 years sprinting blind is on don't let anything else distract you and he said no no no I don't agree and it was the first person out of 400 episodes that said they don't agree with that so I said why and he said look Chris I've been broke several times I've a huge success several times I'm 80 something years old I will tell you that when anyone Ventures into real estate or any Venture they're going to suck for two or three years then they're going to be kind of adequate and then they're going to have a breakthrough success and that takes seven years he told me so now I say three to seven but it's going to be at least great so that was a long answer good question no that's that's great and kind of as a follow up to that I'm curious I know you've worked with so many people is there a a time frame that

4:05People can expect if if their goal is to leave their W2 which I think a lot of people that is the goal and and get to a place where they can support themselves do you have sort of a ballpark that that you see most people get there is it the 3 to seven for that a good one no actually shorter I so I'll give you a few examples I always think better than Theory the last few I can think of Rick left a government job after 30 years I think it took him with us a couple years he he was another example of he hadn't done any deals in like N9 or 10 months and then he got four deals boom boom boom right in a row when he started working with me personally actually coincidentally and they were all six figure deals so Game Changer boom he left his job but I think the whole process might have been 15 or 20 or 24 more whatever it is Mike

4:54In California worked for a produce company like 6 and a half days a week obnoxious and then was Kid was coming he said Chris I can't do this anymore he set a goal for 2 years and I think we hit it in like 27 months so it just depends on the person Brian O'Neal crushed it in in Illinois after elevator salesman literally for 17 years and he said look my goal is like a year I think he said he did it in nine months that was super aggressive and and the reason was he was super aggressive so everybody's different Kirby right you know that so it just depends how coachable they are and everybody says I'm coachable it's me I can do all this but then when life happens and you know the reality of in the trenches with us happen happens everybody's different so that was a very gray answer but I'd say 12 to 12 to 25 months is adequate if approachable yeah and to

5:42To to spend 12 to 25 months to free yourself for the rest of your life it seems like a drop in the bucket you know yeah no brainer here's some ammo Farm to think about the The Listener our deals average across the community 45,000 low 250,000 up as a high those are obviously the outliers but everything in between average all what we call three pay days our family business about 75 we're in the low Rend because of where we are New England but when you start talking about that big sorry to inter sorry to interrupt but when you when you say those is that like profit or are you talking about like the purchase price or what what do you no thanks for clarifying that's the what we call the three payday profit okay no you have overhead expense expens things like that but yeah B basic gross profit on a deal because we get paid three different

6:30Ways and we can talk about that later but the fact is you take a guy like Rick when I said he did four deals at six figures each that's not off front disclosure he gets the street pay he gets some now he gets some monthly and then he gets some when it cashes out two three four five years so you know just a disclosure on that you don't get it all today that'd be very cool but you don't yeah yeah and all three of those guys that you mentioned that's they're all using the creative Finance Niche yeah they're not Community the wicked smart Community yeah yeah okay yeah and I always thought so I always thought of creative Finance or buying on terms as just is not like a niche itself is is like a a niche of real estate investing but just like a a version of of financing that you can tap into regardless of your Niche but you're you

7:19Kind of look at it as a niche to focus on can you kind of explain because there's a lot of questions of what is creative Finance what is buying on terms mean and so can you kind of the way you you look at it yeah this is good cuz you're right it is Broad and you could be a I don't know as though a wholesal but you certainly could be like a a flipper you could do a lot of the other niches and go hey I learned this this technique and that would be Creative Real Estate but for us it's three ways we buy we buy owner financing but we Niche that down Kirby even more we buy owner financing typically we like them on Free and Clear properties and and we'll get into a while later super profitable this building I'm standing in was bought no Bank it's a mixed use too which would be underwriting Galore no Bank owner financing heavy heavy principal pay down I'll

8:07Talk about that later and and we just sold it like 10 days ago but I had a 20-year deal I could have stayed in the deal if I wanted to so free and clear properties second subject to existing loans so that's more unlike the free and clear owner right who's debt free the subject to is usually someone who's needs Financial relief tomorrow they're willing to sell you their house but keep the loan in their name that's subject to existing financing for The Listener and then third is lease purchase lease purchase tends to be where newer people gravitate to like I know a lot of people scream oh wholesaling if you're brand new I disagree if you do lease purchase you get the same check that one check that you get as a wholesaler but you also have payday twos and threes coming out so those are three ways that I Define Creative Real Estate but to your point there's a whole bunch of all of things you can do in Creative Real Estate yeah

8:56Got it okay and I think the next question that a lot of people would probably have then is how do you find these particular types of deals because a lot of people are just you know they don't they're looking at Zillow or whatever and maybe not seeing deals that that they think might work for this so what's the what's the main Avenue that you guys find these deals it's actually pretty simple we have they can do it themselves but i' prefer they have a virtual assistant and that virtual assistant or them are going to have a lead source that feeds them every day and for sale by owner for rent by owner and expired listings meaning they didn't sell with the realtive those three sources are usually enough to accomplish someone's goals in a given area but there are outliers you know I have someone in Arizona that it's very spread out so she's like Chris I get like 10 leads in

9:44A month it's not enough to accomplish my goals okay so then we start talking about Niche lists I love out ofate owners for example especially postco I love out ofate owners and free and clear a third of the properties Kirby ballpark every Community is different but about a third of the properties in United States are free and clear well that's a great Pon to fici because they are typically very open to owner financing very open as long as you can get them to their price to getting to your term I said earlier that I'd mentioned why I'm so high on Free and Clear we structur 99% of the time or principal only monthly payments principal only so picture that if getting a loan and having most of it going to interest when I bought this building we mostly do single families when I bought this building the owner said he was into real estate he owned like most of the land in this area third largest land owner I think he said

10:32I wanted x amount interest I think it was 5 and a half back in 18 I said well we usually do principal only you know he nearly fell off his chair cuz he was a conventional real estate guy and he's like what do you mean principal so what we did was a kind of a hybrid I did principal only for like 18 months took the balance remaining and then amortised it over I think it was 5.2% but the point is you can do most of the time on single families you can do principal only in this massive pay down I mean just picture the math on that it's crazy so principal only basically means 0% financing Y correct okay on a house it's like if you put no money down or little and you get 0% financing you got you got almost a free house and then if you exit properly the way we do it's getting paid for you're not coming out of pocket