30 + Resilient Stories is a collection of powerful stories of resilience written by inspirational contributors from all walks of life. Venture through these pages and get ready to feel enlightened as each co-author pours their heart(s) into expressing the greatest depths of their journey(s):
From trauma to triumph
Feeling hopeless to becoming uplifted
Being stuck to finding peace Feeling lost to finding one’s path
From going almost bankrupt to become a millionaire
From tears of pain to tears of joy
Processing grief to celebrating and honouring the lives of the ones we love
From low-self esteem to confidence in our authentic selves
Avoidance to acceptance
And stagnancy to resiliency
These stories were written to uplift and inspire. Take a journey with our authors as they share the most vulnerable aspects of themselves and hone in on how they have learned to become resilient on their path.
Sierra Melcher is an international speaker and author. She has worked with clients globally, empowering them to reshape their lives through the interplay of thought and action.
As a sought-after thought leader, she uses humor and empathy as essential tools to guide people to trust their inner authority.
A creative entrepreneur and a Certified Life Coach. She is a Fine Arts graduate from the University of Santo Tomas, Philippines, she majored in Advertising Arts.
Her advocacies are Women Empowerment and Freedom ( Time, location, financial independence). For most of us who silently wish that somehow we can make a difference in someone’s life or make an impact in our community. It is very important to focus on what we want to achieve and figure out how to align it to our purpose!
Welcome to a book series for the 21st century. I call it a continuum book series because when the book ends, the story doesn’t. In between their adventures in virtual reality, The Writer and Victoria live and interact with the real world. Get to know them in real time as the story continues and fiction becomes reality!
But now, it’s time to introduce you to an unlikely hero and a beautiful alien. She’s on a mission to understand the human species. He’s a handicapped writer who understands the human species all too well. They have nothing in common, but they may be civilization’s only hope as they set out to save the human species from extinction.
It’s not as easy as it sounds. Along the way, they mustsolve a mysterious murder and stop a terrorist plot to pull America’s power plug. Then things really get interesting!
Tim Knox is the author of numerous fiction and nonfiction books, as well as over 300 newspaper columns on the topic of small business success.
He is also a successful serial entrepreneur, corporate speaker, former standup comedian, talk radio host, syndicated business columnist, and self-professed Mama’s Boy. Tim’s unique perspective is enjoyed by thousands who listen to his radio show, read his books and columns, and hear him speak every year.
Author of: “Everything I Know About Business I Learned from my Mama: A Down-Home Approach to Business and Personal Success”
A lot of real estate investors want to make a living for themselves. But one of the things Lou Brown has discovered in his lengthy career is that not only can he help solve the problems sellers may have, he can actually help buyers as well.
Over 70% of Americans cannot qualify for traditional loans. This provided him with an opportunity to make a difference in the lives of people in the community. He was able to teach them to create a business similar to what he does in order to provide homeownership and act as the bank themselves.
Now, Lou can teach you the same thing through his new Wealth Builders Workshop. This is a one-day event specifically created to help others learn about building wealth and helping others.
Watch the video for more details or visit the link below:
Get your FREE digital version of the printed Book now… You will also receive weekly tips and advice from Lou Brown directly to your inbox. We promise not to share your email address with anyone, ever!
Hi! It’s Lou Brown. I wanted to let you know that many real estate investors of course are out for themselves. They’re out for their family. They want to make a living. And one of the things I’ve discovered is that by building my business a certain way, not only could we help sellers to solve problems that they have, but we could also help buyers to solve problems they have. And what I’ve discovered is over 70% of America cannot qualify for a traditional loan. So what I discovered is in my local community, I could make a difference in many people’s lives.
And what I discovered is once we dive that in, in our business, then I was able to help other people learn how to build a business, just like mine in their local communities as well. Helping people to attain home ownership and be able to be the bank for those clients because the bank doesn’t love them, but we can certainly help them. We can support them. We can help them have a better life than the one they’ve got.
And I even wrote a book. It’s called the, Doing Good While Doing Well. Isn’t that remarkable? Doing Good While Doing Well. And it says, how real estate investors provide a service and make a difference. And it’s so true. Now this is my amazon.com bestseller. And one of the great things about that is that we have licensees all across America that are helping people in their local communities. And they’re getting the great feeling of making a difference in other people’s lives. Seeing how it’s changing other people’s lives. You haven’t lived until you’ve been to one of our closings and the tears of joy. When people are moving on with their lives, they are realizing they’re taking steps. And what we’ve done is designed a plan to help support them in taking those steps. So that they do end up with better credit. So that they do end up with a higher score. So they do end up with lower costs with their housing and everything else in their life as well.
So I want to share that with you. I’ve got an event coming up. It’s called Wealth Builder Workshop. I definitely want you to be there. And you’ve got the information right here. Dates coming up. And when we are together, I can really spell this out for you. I’ve got a book it’s called, Buy Hold Sell. I use that as the foundation for what I’m going to be teaching you on that one day workshop. And when we together, be prepared to take notes. Now you’re going to have the comfort of your own home to be able to learn this from. And I’m going to make this irresistible because I’m going to make it absolutely free.
Now here’s the thing I want you to commit to be there for the full day. Here’s why, because one thing builds upon the other builds upon the other builds upon the other. I don’t want you to miss any of this powerful information. I’m going to be sharing with you exactly how I built my business over 40 years of being in the business of buying, holding, and selling property. So definitely join me for the upcoming Wealth Builder Workshop. And I look forward to seeing you there. Yeah, baby!
Lou Brown discusses how he can let you know about his $10 Million retirement fund.
The first thing to understand is that this doesn’t happen overnight. Lou started 40 years ago and learned several things that allowed him to provide homeownership while maintaining the position of being the bank for his clients. This produces Massive Passive Income.
Lou Brown has a one-day event called the Wealth Builder Workshop that is designed to teach you this and more. Watch the video and visit the link to find out more details.
Get your FREE digital version of the printed Book now… You will also receive weekly tips and advice from Lou Brown directly to your inbox. We promise not to share your email address with anyone, ever!
Hi! It’s Lou Brown. I wanted to let you know about my $10 million retirement plan. Now how in the world could that be possible? Well, it doesn’t happen overnight. I want to teach you that. When I got involved in this business, I was 18 years old. Now that’s over 40 years ago. And one of the things I learned is that I could buy properties, taking over existing financing on the property. I could put a client into that property. They would pay me rent. And then I gave them an opportunity to step up to home ownership. And I was in a position to be the bank for my client. And that produces Massive Passive Income on an ongoing basis. And it transfers the responsibility of repairs and replacements and remodeling and things like that onto an owner. Just like you do at your house, you’re responsible for your water heater or your roof. Well, they are too.
And this is what’s so great. You are the bank. You receive that income. It’s a fabulous retirement plan. And that’s what can happen over a period of time. When you are taking that client, you’re nurturing them. You’re helping them to grow in their life, having an asset that they can pass on to generations to come and have the ability to have a home of their own. So that’s what you’re providing in your local community.
I want to teach you how to do that, my $10 million retirement plan. We’re going to cover that in my upcoming Wealth Builder Workshop. Now this wealth builder workshop is designed to take you soup to nuts through our business plan and business model. And what I teach you is that you can purchase properties without having the risk that most investors take. And the reason is because we start with having a customer first and then we custom buy a property for that customer. We buy it right. We buy it cheap. We become the opportunity for them to have home ownership. That’s what I teach you and what we’re going to be covering during that wealth builder workshop.
So this is a one day event. I want you to absolutely be there. I will support you in having what you need in order to be able to build an amazing future. I’ve helped many people throughout the country, throughout the world, in fact. Build great businesses and I can help you too. And you have a business that helps others as well. We call it doing good while doing well. I want to teach you that. The foundation of that is my book. It’s called Buy Hold Sell. Definitely Amazon bestseller. It’s something that you should absolutely get your hands on. And I’m going to be teaching you that book during this one day workshop. So do join me. The dates are right here on the page and I look forward to seeing you soon. Yeah, baby!
Lou Brown announces that he will be having the Wealth-Builder Workshop which covers what he has learned for over 40 YEARS of buying, holding, and selling properties. And one of these lessons is learning why you don’t have to go to banks and qualify for loans.
Wealth Builder is going to be a virtual workshop that provides you the opportunity to participate and learn.
Watch the video for more details or go to the link below.
Get your FREE digital version of the printed Book now… You will also receive weekly tips and advice from Lou Brown directly to your inbox. We promise not to share your email address with anyone, ever!
Hi! It’s Lou Brown. I wanted to let you know, I’ve got an upcoming Wealth Builder Workshop. This is the culmination of what I’ve learned over 40 years of buying, holding, and selling property. And one of the great things I learned is I don’t have to go to banks. I don’t have to qualify for loans. There’s some very unique things. Really. This has taken my new book, Buy Sell Hold, is really that one day workshop in writings. We’re going to be doing it virtually. And you’re going to have an opportunity to participate, to be able to have me teach you and train you, because I’m going to start with finding the buyer before you even buy. Then we’re going to be talking about purchasing the properties, buying right, buying cheap, not going to banks, not qualifying for loans.
Some of the very unique things I’ve learned in doing this business. Bought my first house when I was 18 years old. I’ve learned a lot over those years of always staying out of the banks. Being able to purchase properties in unique ways. Having the seller be the bank. I want to share that with you. And I want to teach you about holding properties long term for Massive Passive Income coming in on an ongoing basis. When do your bills come due? Every month! I want to show you how to build a Massive Passive Income so that you can get freedom. And that’s really what it’s all about. Not working for someone else, working for yourself. If you have a goal of someday being able to have dependable, predictable, monthly income and not have to work for someone else, then this is the workshop for you.
I’m also going to be covering trusts and how to hold title to your properties so that other people can’t get your stuff and you can pass it onto your heirs without probate. Amazing information given in this one day workshop. It’s going to be online and I’m going to make this available to you. What?! Absolutely free! Why would I do it free? So I can really give you all my best secrets and you can see who we are, what we do and how we can help you, because this is really a great opportunity for you to get connected, learn, and be able to have actionable steps when you leave the workshop. So that’s what it’s all about. I’m looking forward to seeing you soon. Yeah, baby!
Bob is the author of Mind Matters: Applying Emotional Intelligence for Personal and Professional Success and the founder of Success Dynamics International, the provider of the EIQ-2™ emotional intelligence learning and performance development systems and emotional intelligence certification.
He is a frequent speaker at public and private engagements. Bob has taught business, psychology and adult development at various universities. He has worked as a counselor in marriage and family therapy. As a consultant, coach and trainer, he has worked with Fortune 500 Organizations and aspiring entrepreneurs.
For speaking, training, coaching, certification, CEU’s and all your performance needs, email RJerus@Success-Dynamics.Org. or call 863 353 8070. We are dedicated to creating engagement and drive for individuals, teams, organizations and customer experience….
Emotional intelligence is good sense, good value and real development.
Certification Accredited by: HRCI (Human Resource Certification Institute) {for GPHR, SPHR & PHR); SHRM (Society of Human Resource Management) (for SHRM-CP; SHRM-SCP); ATD (Association for Talent Development) (for CPLP); and ICF (International Coaching Federation) (for ACC, PCC and MCC certifications).
After many years of coaching and constantly doing deals himself independently, Chris Prefontaine founded Smart Real Estate Coach in 2014, bringing in his son Nick, daughter Kayla, and son-in-law Zachary as the company began to grow.
The family team coaches investors on how to properly scale and automate their businesses throughout North America — all without using their own cash, credit, or taking out bank loans to buy property. His team buys and sells homes in his own market every month.
Join our new Private Money Academy with a free 30 day trial,
Jay Conner (00:01): Well, hello there! And welcome to another episode of Real Estate Investing with Jay Conner. I’m Jay Conner, The Private Money Authority and your host. And let me give you a special welcome, particularly if this is your first time to tuning in. Here on the show at Real Estate Investing with Jay Conner, we talk about all things that relate to real estate investing from single family houses to commercial deals, to self storage, to land, to anything that you can imagine. Even note investing. Anything that you can imagine that relates to real estate investing. This show is for you, whether you are a seasoned real estate investor, or a brand new real estate investor.
Jay Conner (00:51): Here’s why. First of all, we talk about private money a lot on this show. How to get funding for your deals, regardless of your experience or your credit or your verification of income. You know, whether you’re seasoned or you’re brand new, everybody is always looking for new funding for your deals. As a matter of fact, on today’s show, my special guest, we will be talking about creative ways to get funding for your deals regardless as to whether you have private money lined up or not. In addition to that, people are always looking for ways to find really, really hot deals. We talk about that on the show here, we talk about how to automate your business, how to sell properties very quickly in order to reduce your carrying costs.
Jay Conner (01:36): But before I introduce to you my guest today, I want to give a special gift to you. You see, I mentioned a moment ago, I’m known as the private money authority. So if you are seasoned or brand new and you want more funding for your deals, I’ve got a free gift for you. And that is, I just recently launched my brand new membership, which is titled The Private Money Academy. It’s a monthly membership where I am live at least two times a month for the entire Academy where we do a hot seat. We analyze your business, help put a plan together to expand your business and scale it and grow it very quickly. I answer Q and A every time live twice a month for Academy members. We’ve got a closed Facebook group where you can ask questions at any time. It’s a very, very expensive and live forum. And we also have brand new training content for the Academy members every month. Well, I’ve got a brand new offer here. Brand new, and it’s free. You can have free access to the Academy for four weeks, and I’m going to give you the URL right now. To where you can go take advantage of this free gift after we finished the show and that’s www.JayConner.com/Trial That’s JayConner.com/Trial
Jay Conner (03:05): So you may be tuning in on YouTube, or you may be on Facebook, or you may be listening to iTunes or Google play or one of our platforms. And so no matter where you’re tuning in from, we need your help. Please subscribe, rate and review. If you’re watching on YouTube, be sure and subscribe and hit that little bell. So you can be notified every time that we go live with a new guest and new training. And speaking of guest and training today is no exception to the past where I’ve got a fantastic expert guests to join me. And so I’m so excited to have him on before I bring him out of the green room and bring him on here, live on the show. Let me tell you just a little bit about my friend.
Jay Conner (03:50): First of all, he is a three time best selling author. One of his books, Real Estate On Your Terms, we’ll be talking about that. Secondly, the new rules of real estate investing and also he is co-author with Moneeka Sawyer’s, Real Estate Investing For Women. He’s also the founder and CEO of SmartRealEstateCoach.com. And he’s the host of the Smart Real Estate Coach Podcast. In addition to that, he’s been in real estate for almost 30 years now. His experience ranges from constructing new homes back in the 1990s and owning a Realty executive franchise to running his own investments, commercial and residential. Well today he runs his own buying and selling businesses where this family thing, which purchases about two to five properties every month. So this guy is still in the trenches today and knows exactly what’s going on. He’s an expert in the realm of terms, he’s also an expert on how to take your business from part time to full time. And he has this very, very special strategy and formula that he employs and also educates his students on which is called, The Three Pay Days. With that, I’m excited to have on and introduce to you my special guest today, Mr. Chris Prefontaine. Chris, welcome to the show!
Chris Prefontaine (05:16): Hey Jay! Good to be back, buddy. Good to see you as always.
Jay Conner (05:19): Good to see you too. And I’ll tell you folks, one special reason I love having Chris here on the show is because Chris and I have got the same exact core values and ethics when it comes to doing business. It’s all about putting the other person first. Whether you’re talking to a buyer or you’re talking to a seller, or you’re talking to a private lender, Chris believes exactly the same thing that I do. And that is, put other people first and you don’t have to worry about yourself. Just sort of like Zig Ziglar said. So Chris, I had you on the show. I guess it’s been coming up on a year ago. I lost track of time, but since that time we’ve had this crazy thing called COVID-19 come along. Corona virus. So first of all, if you would Chris share with the audience how have you been dealing with the Corona COVID-19. How’s it affected your business? And what have you done to adapt? And as your business increased, decreased or stayed the same?
Chris Prefontaine (06:25): Yeah. Thanks, Jay! It’s interesting because when this happened, so I’m going to go back to March when it started to happen. I said to my son, Nick and my son, Zach, I said, okay, I’m hoping what we built post-crash was built to what our expectations were, which was to weather all storms. It really was built to do that. And so our business has tripled and the amount of properties we’re doing as has all the students, so super happy with it, super pleased with it. It’s still, as you know, nobody knows the answer, right? The billionaires don’t know the economists don’t know. So the jury is still out, but so far, we’re just, we’re not getting by with driving. And I love to see that for the students, cause it’s almost like they had an, it’s not even, not official. It’s just a massive pump up in business.
Chris Prefontaine (07:07): I think a lot of that’s because the banks are making it very difficult for your conventional buyers, which makes it difficult for the sellers. I see that, especially in the higher end, you know, the jumbo loans over and over and over again. So I love, and I think you do too, dealing with those buyers that are truly great buyers. They just need a little bit of time. So that’s the kind of path we took since April. What do we change? Only thing we change as a team is virtual meetings every morning, cause we’re virtual, except for one day a week now. And then the, from the, from the standpoint of sellers, we started about a year and a half, probably about the time I was on your show or early, we started pivoting to virtual. Anyway, it just, now that’s overwhelmingly accepted by the sellers, whereas before it was a bit of a sell to let them know how we’re going to do things virtually. So I I’ll end that question or that answer with my son-in-law said to me the other night, we’re at dinner privately. The family. And he said, I gotta tell you, I think COVID coincidentally is one of the best things that ever happened to our company in our portfolio. So probably a little bit different answer than most people give. But that’s been, it’s been a disguised blessing for us so far.
Jay Conner (08:17): Well, when you say your son said, dad, coincidentally, I think this is a, been a blessing for us. You may or may not have heard of my definition of coincidence, but my definition of coincidence is God’s way of staying anonymous.
Chris Prefontaine (08:35): I love it!
Jay Conner (08:36): Well, your story, Chris, and your results and your experience since COVID-19 is exactly the same as mine. My business has tripled both my coaching business and my buying and selling house business. Year to date since January, of course, you know, COVID came in strong in March. I have bought and sold more houses this year than any year since I went full time back in 2003. My coaching business has skyrocketed. And I think another reason for that is because what you just said, virtual. And I really cannot tell you, I wish I could tell you. Well, I can give you part of the reason, part of the reason our real estate investing business at sky rocket is because I was, and you were prepared for the increase in business.
Jay Conner (09:34): For the all cash deals, we have plenty of private money on the shelf ready to take advantage of serving all those people and et cetera. But the, but the demand itself, I must say, I can’t, I cannot give you a definitive answer, but I’m thankful for it on both the buying and selling side. And we were prepared to take care of it. Now, your popular business model that you talk about, your strategy is a strategy that’s called the three pay day strategy. And we talked about it. Last time you were on the show, but we got a whole lot more additional new viewers and audience members since then. So from scratch, how about explaining your three day strategy or three payday strategy and what that means?
Chris Prefontaine (10:22): Yeah, so the three payday is this is on the exit. So we buy them on lease purchase or owner financing sometimes subject to, but all of our exits, almost all of our exits are going to be rent to own. And when we do that, we create the three paydays. That I know you’re familiar with, but the first payday is a nonrefundable down payment. And the second pay day is the difference between what I’m paying the underlying mortgage on that’s in the seller’s name or the seller directly, if it’s owner financing and what I’m collecting from my buyer, my buyer who needs time to get financing. That’s payday two. Payday three is the, is pretty cool because not only the cash out the mark-up and the price that we were able to achieve, but it’s also all of the principal pay down. When you start looking at principal, pay down on some of these deals, of course, the longer the term, the better, right? But when you’re talking about on financing deals, Jay, we only do on a financing deals when we buy, when they’re free and clear property. So we’re doing always principal only pay downs. And so over the course of three, four, five, seven, 10, my building 20 years, you got some massive principal pay down. So I love the three paydays. I also love the longer terms, especially during Covid.
Jay Conner (11:29): So let’s just make sure our audience understood what you just said. So you said the majority of these deals that you’re doing, the three payday strategy and those three paydays again are on the selling side when you’re selling the home they are, you’re getting the nonrefundable option fee or down payment. You’re getting positive cash flow between what you got coming in, what you got going out per month. And the third one, what’d you say the third one was?
Chris Prefontaine (12:02): Principal Pay down. And if there’s any mark-up from what we purchased to what we’re selling.
Jay Conner (12:07): Yeah. It’s just so that principal pay down means you, and then this is what I want everybody to not miss. You’re buying homes from sellers and the way you’re funding those deals, the way this third pay they have is you’re buying those houses with the seller, being your lender. The seller is your bank. The seller is taking a note back and selling to you as seller financing, or you bought it subject to the existing note. Is that right?
Chris Prefontaine (12:39): That’s correct. When they’re free and clear the seller financing, we prefer so that we can structure whatever we want for principal pay down. And the third way buying them would be lease purchase. So more of a sandwich, sandwich lease.
Jay Conner (12:51): Gotcha. So, what are the reasons, what are the benefits, why have you decided to exit with the rent to own strategy versus putting it in the MLS and cashing out?
Chris Prefontaine (13:06): Yeah, mainly it’s the three paydays Jay, but I’ll tell you a pre COVID, but certainly more so now to our earlier comments, both of us. The amount of buyers, the buyer pool for people that can’t walk in a bank today and get financing. And then especially when you get to jumbo and above is crazy. We had a guy, give you a direct example. I think it’s always easier to understand. $1.3 million house. One of our students had a buyer saw that same home had an under agreement. COVID hit, he has a 760 credit, but he didn’t have enough down at the bank. Wanted to see some ungodly amount, like two and a half year reserves, 25% down. He had like 10% down. So he, he thought he lost that house. My student picked it up. We did together. We partnered on it and this guy came out again for the same house and did a rent to own on it because we’re going to give him the two year ramp. He needs to save more money than satisfy the bank. Well, those are everywhere right now. Like the buyer pool is enormous. Prior to COVID I use the percentage of like 60% to 80% of the buyers couldn’t get financing. If you took a snapshot in time, I don’t know what the number is today, but it’s bigger. And so they need our help. And that’s the cool thing about a very healthy relationship. So to what you said earlier, if we put their interests for us, it’s a win-win. Big win-win right now, helping these people.
Jay Conner (14:24): So I’m going to ask you a question that you could actually take three days live seminar to answer. We don’t have three days. So let me just ask you to let your consciousness just flow and just answer it the best that you can from the 30,000 foot view. Here’s the question. When you and your students are talking to a potential seller, of course, all these sellers were talking about where you buy creatively on terms are off market. Clearly you’re not buying these properties in the multiple listing service they’re off market. When you are beginning a conversation and establishing rapport and getting information on the property, we know that the seller of that property in most cases, either has not considered or even thought about the possibility of selling their property on terms. They are thinking somebody just going to buy this house. So my three day seminar question is, what is your talk off? How do you convince someone to agree to sell their house on terms? Before you answer this question, Chris, I want you to explain to everybody and unpack what does it actually mean. The sell on terms. Let’s get that clear you, after you clear up black and white, easy peasy, really, what does it mean to sell on terms? How do you convince somebody to do that when they never consider doing that? And when the conversation started with them, they’re anticipating, you know, getting a check and getting all their money.
Chris Prefontaine (16:22): Yeah, absolutely. So terms to us, cause it does mean different things to different people, as you and I said off air. Terms to us is simply lease purchase, owner financing and or subject to because we combined some of these strategies. That’s what terms is to us. Those are the three areas we live in. The conversation, this, the question you asked with the convincing is by far the biggest thing we get in live trainings. So it’s not convincing. So just to clarify that, so it’s like the same reason you would go to an autobody or an attorney or an accountant because you have something you’re trying to either fix, improve or accomplish, because not always negative, especially with debt free properties, it’s not negative. They just wanted the most. So that’s, so first and foremost, I have a simple question at the beginning of the conversation. Jay, if you were to get your price, I haven’t seen your home yet, but if you were to get your price, are you open to doing that on a lease purchase or owner financing?
Chris Prefontaine (17:15): Now most say, well, I just want to sell it out. Right? And my answer is I get it. 99% of the sales I deal will say that. Of course I would want to sell tomorrow of a full price cash, and have no issues. Right. But the reality is this. Mr. Seller, you have a significant part of the buyer pool right now that can’t do that. They can’t, they can’t do, they can’t buy your home because of financing. Now that has made, it’s made even easier for me to explain with Covid. It’s even, it’s even worse for them. So that’s the conversation. And then back to the convincing, there is no convincing if they can, A. Wait for their cash, if they have any in the house, any equity left. And B. I can solve whatever issue they have. Give you some off the top of my head.
Chris Prefontaine (17:57): I’m moving to Texas. My family is already there. I want to be there for the holiday. I have two homes. I can’t keep them both during COVID. I owe about what it’s worth. I can’t afford a realtor. If there’s any motivation for selling, that makes sense for me to solve. I can solve it. As long as one of two things are in the mix. One, I need my cash right away. Two. I’m a year behind and has no equity in my house. Like those are the two things that I just can’t do anything with typically. But every other scenario, if they can wait, we can solve it with a lease purchase or owner financing or subject to. So is that, was that a condensed enough or too condensed?
Jay Conner (18:34): Yeah. Yeah. You took three days and put it in three minutes. Which is what I wanted you to do. So what would you say is a realistic percentage of people that you’re talking to. And this is putting aside those that you can’t help. Like, you know, those scenarios, you just, I mean, you know, they’re a year behind and they have no equity. You know, those do have equity. Those that, you know, the math would work if they get it and they can wait, what percentage of those people that you talk to actually end up being, you know, agreeable to selling on terms in some kind of structure?
Chris Prefontaine (19:17): Yeah. About a third. But let me clarify where the third came from. The third have already been weeded out by virtual assistants who spoke to them and they said, yeah, I’m somewhat open. Have someone call me. You know, they weren’t shutting it down totally. They could wait for their equity. So out of those that we get about a third are open to terms. Now I can’t tell you in accurate metric from April 1 to now segregated. I can just tell you ongoing. We’re about a third. So it’s a significant amount. Look, here’s a stat. This is a cool thing. I, some of us, our company and some of our students are niching down just to do owner financing, just at target free and clear properties. Well, if you look at this different stats, but if you look at the stats about a third of the property, the United States are debt free or close to it.
Chris Prefontaine (20:02): That’s a lot of properties! You don’t need to talk to many of those. These street paydays, those free and clear properties. If you get four year terms, you’re talking about six figure deals right across the board. If you get a house that’s 200 grand or higher and you get four years of more, and the principal payments, you’re talking six figures, three paydays, you don’t need to do, you know, 50 of those a year. You can go out and try and do that, but you don’t need to do that for most people. So super, super, super lucrative for both parties. If, if that’s the criteria. So probably a longer answer to your good question.
Jay Conner (20:36): That’s good. Would you say most of these sellers, you’re able to negotiate, that you do negotiate terms, they are willing to take payments or whatever. Would you say most of those are principal only payments or do some people you have to pay interest?
Chris Prefontaine (20:55): Okay, good question. So in the mix of what we do about 20% of the properties we take on our contract offering clear, and yes, we do those with principal only payments. Now there’s been a hybrid or two. I’ll give you two real examples. We did our office building and the owner is very sophisticated investor owns probably not the largest landowner, but one of the largest on Island here where we live. And so he sold me the building and he said, I want five and a half percent interest. This is a year and a half, two years ago. I said, well, you should pay principal. So here’s what we did. We both loved it from when I closed on it in November of 18, all my payments. And there were teared up payments were principal all the way until about September of 19. So as long as the shorter that is, I took that principle five 50 and had it paid down to four 90 without a penny of interest, then he advertised it at 5%. And he got his way. And I got my way. There was no way I would’ve got a 60 grand pay down in principal by doing a conventional mortgage. He knew that. And I knew that. So we both got our way. That’s one example.
Chris Prefontaine (22:01): The other way we do things is let’s say I’m three years into a four year on a financing term. This was an exact deal. And every holiday season, I send them a note or an email. And I say, look, I know you got three years left or two years left, as we click along. If I was to prepay 6,000 was in this case, it was 6,200 prepay. So take it for another day, like prepay some principal when you extend it a year. So I get another year principal pay down that’s of course, if my buyer’s not ready to cash out, it works even better. We did that two years in a row at a particular property. The third year, last Christmas, they called us and said, will you do that thing again? And I said, well, instead of that, why don’t we do this? If you guys don’t need the cash, why don’t we change your note? That’s going to be coming up next year. Why don’t we change that to an interest rate of 4.2? And why don’t we put that out 15 years for balloon? So a four year deal on a financing principal only became a five, then became a six, then became a 21 year deal. So that’s why I said earlier, you can mix and match some of these strategies depending on what the motivation is of the seller. In this case, they didn’t need the money and their account and loved it, that they were going to stack it in some interest. So we do sometimes that was another long answer, but I hope that helps.
Jay Conner (23:12): Oh, it did help because what you just explained was a real life example of the deal after the deal, after deal, after the deal.
Chris Prefontaine (23:21): Exactly.
Jay Conner (23:23): So that’s a great example of, I mean, you know, when I first heard years ago that sellers of homes of houses, of single family houses, would be willing to take a note out 15 years, I thought to myself who in the world would wait 15 years? I mean, they might be dead by then, who would wait 15 years to get their money? And I, and the light bulb finally came on to me years ago. Well, the same answer is to the site to a different question. Who in the world would be willing to sell their property and agree to leave the mortgage in their name and trust me to make the payments? The answer is the same. And the answer is, I can’t make a decision and have the same motivation as somebody else for the seller. They do things for their own reasons. I do things for my reasons and I need, and we need to let them make their choice. Right? One of the biggest mistakes I made when I started in real estate investing was making decisions for other people or deciding in my mind what I thought they would do, or they would not do. And I don’t have a clue what somebody else is going to do until I give them the choice. So my lands! Give them the choice! Right?
Chris Prefontaine (24:44): Yeah. To your last point there about making the decisions pre COVID too many of our students and us, when we first started, we’d say, if they asked us how long a term we may have come out with a term back then, like four years. Now, simply by changing how we answer that we’re getting five, seven, 10, and 20, just as easy as we were getting three to five in the simple question, when they say, how long is, if you got your number, I don’t know if you’ve got your number, what’s the longest you could see yourself going in terms? And I am pleasantly surprised. I won’t say shocked at how many sellers are programmed to say things like, well, I wouldn’t go up 30, like a regular mortgage, but I might go up 20 or might go upto 10, like automatically they do. And so it took us four or five years to figure that one out, but all the students, new students now. So you think we would have had to pick it out first. New students, as soon as we told them that technique thought that was normal. And they’re getting those longterm,
Jay Conner (25:38): Chris, you’re the expert on terms. I’m the expert on private money. But I got a question for you and your students to play with, and I want to hear how it goes. So the question that you just said was, well, what’s the longest you could go? I would love to play with this question. And that question would be, well when they say, well, you know, how long have I got to go? I might ask them, well, how many years would you like to continue receiving monthly income?
Chris Prefontaine (26:15): I love it! in to the point!
Jay Conner (26:15): Well, I don’t, whatever. I don’t want to ever stop getting monthly income.
Chris Prefontaine (26:20): No, I love that one. Thank you for the share.
Jay Conner (26:23): So anyway, it just came. It may be a stupid idea, but I don’t know sometimes what I think stupid works and vice versa. So, so the next question. You talk about operating. In the midst of this current chaos, you talk about operating in the perfect triangle. What does that mean? What is the perfect triangle that you talk about?
Chris Prefontaine (26:50): Yeah. I thought of this right when Covid hit and literally I moved home to the home office here. And that was, we’ve got a really cool community, like really a family environment in the office and amongst our community. So I said this, if we can all attach ourselves to one side of triangle, a cause, just a cause. Like a major mission, like right now, because of the chaos, sellers and buyers are some of them afraid, but all of them need a guide. They’re like screaming for help. And in some cases, literally don’t know, should I sell, can I sell? Does this work? So find a cause that can, then the second piece of the triangle actually affect lives, like affect them, generationally affect them. That’s what we’re doing.
Chris Prefontaine (27:32): We’re going to affect generationally. These people that thought they couldn’t buy or sell. And that’s going to forever be in their family. And then third. And in affecting our lives as well. And then third piece of the triangle is to get paid, to do it. So find a cause. Go out and affect lives positively, including your own. And then get paid to do it. I don’t think that triangle has ever been so prevalent because of the chaos right now, because of the need for a guide and someone to like take them by the hand. There was a major survey done, Jay, I’m going to forget the name. One of my mentors told me about it. They do a trust survey every year. It’s not cause of COVID. They happen to do it right around covid. But the number one thing with sellers and buyers was this trust factor. Like they just want a guy that they can trust and that perfect triangle is where we could camp out.
Jay Conner (28:18): So beautiful way to describe win-win-win. Final question, Chris. For this show. And that is given your experience. We’ve had COVID come along both you and I lived through 2008, 2009. I mean, you’ve been doing this real estate investing thing for 30 years, yourself and your family. What’s the best advice you can give today on how to prepare to handle the next recession. When’s the next recession? Well, if we, any of us knew that we could retire today.
Chris Prefontaine (28:56): You wouldn’t be yet.
Jay Conner (28:58): Is there going to be another recession? Of course. Is it going to be another stock market crash? Of course. You know, it’s cycle cycle, cycle cycle. So what do we need to do to prepare?
Chris Prefontaine (29:11): Sure. I mean, I could go a couple different directions here, personal and business, but let’s go business first. I will personally tell you my opinion, never, ever, ever sign personally on a bank piece of paper, pledging your assets. That’s my opinion, except for maybe an exception of your own home. I could see that working, but you could still buy that on terms as my family members have. So that’s number one. Don’t sign personally. Number two. So then you’re not worrying about if,if,if,if,if. That they’re going to come knocking if the market drops. Okay. Number two. Hang out with someone that weather the storms, Jay, you said you and I have gone through ’08. I went through ’08. I went through 9/11, like you did. I went through my son’s accident where he was put in a coma and that was an overnight shot. You know, all these things beat us up, but they also weathered us because unfortunately success without the, those trials and tribulations, their rotten teacher, they really are.
Chris Prefontaine (30:01): So if you’re going to do anything in real estate, just hang out with someone that weathered a few storms, that’s the way to do it. Just don’t deviate. There’s no reason to reinvent the wheel. And then lastly, on a personal note, pre ’08, I know I would have no problem, no problem whatsoever. Having a personal residence that had there was leverage 70, 80, 90% of it. I would have no problem doing it until you said, Oh, that’s normal. I have good rate. And I’m in real estate. I will tell you if you can live on 50% or less of your income and never have to be in that debt or leveraged position, you will also sleep better. So if you could tell all of these are based on my way, crashing, not needing to sleep at night. When I put my head in the pillow, I want to know that everything’s fine. And so that’s a smidgeling of what I would tell people to do.
Jay Conner (30:48): Awesome advice, Chris. Awesome advice. So Chris, I know that the audience wants to stay connected with you. So how can folks further the conversation and stay connected and get plugged into Chris Prefontaine?
Chris Prefontaine (31:03): Sure. Thanks, Jay! They can go to SmartRealEstateCoach.com There’s if they don’t mind listening to me babble for another 45 or so minutes, there’s a free webinar there. It’s content rich. It’s not going to teach how to make a million dollars. It’s going to expose you to some more information on what is possible for you. And then if you want, we can actually, I’ll probably get a, I’ll get a spanking for this one, but I’ll offer a free strategy call for anyone that wants to talk, especially with Covid here. Just go to SmartRealEstateCoach.com/Action. That’s all. They’ll just ask you if you’ve done deals. If you haven’t done deals, no wrong answer. Allows myself or my son, Zach, to help you out with a free strategy call. No ties, no hooks. We’ll get on 15 minutes. We’ll make it well worth your time.
Jay Conner (31:46): That’s awesome. Well, thank you so much, Chris and parting comments.
Chris Prefontaine (31:53): I said some of them in the interview, cause you, your questions were just spot on. I don’t care what niche you’re looking at. You and I have both advocates of exposing all niches. We both do that on our podcast. I love that. So, find an issue and get behind. I’m not so naive to think it’s mine. I’m sure Jay feels the same way. Find one you can get behind. Secondly, find someone in there that has weathered a few storms. And third don’t deviate for three years. Like just don’t. Don’t get the shiny object syndrome. You’ll have a great experience with that simple formula.
Jay Conner (32:19): I love it! Chris, thank you so much for joining me on the show!
Chris Prefontaine (32:22): Thanks for having me, buddy. Good to see you.
Jay Conner (32:24): Absolutely. And, thank you! My audience for tuning in to another episode of Real Estate Investing with Jay Conner. And I’m so glad you were here. Be sure to tune in for the next show. Here’s to taking your real estate investing business to the next level. I’m Jay Conner, The Private Money Authority. And we’ll see you then. Bye for now.
