Is there an invisible target on your back?
There is an entire industry made up of “professional takers.” Lawyers who build a practice on getting a cut of the settlements they win for ridiculous reasons.
In many cases, these lawyers win without even going to court, as their “victims” just settle because they know in the long run, defending themselves (even against insanely stupid claims) will cost them more than just paying up.
You may have a target on your back now, or in the future and not even know it!
It doesn’t have to be this way. In fact, you can set yourself up so a lawyer will take one look at you and realize they don’t have an ice cube’s chance in Arizona of getting your money or property.
Unfortunately, most people don’t do anything at all and they’re walking around with big, fat, bullseyes on their backs!
Here’s a few examples of the stupid stuff people sue over:
• Man sues NASA for not investigating alien life.
• A fitness club member sues for getting injured after stepping on a moving treadmill.
• Homeowners sue claiming their views are ruined by the dunes that saved their home from Superstorm Sandy.
• After eviction for nonpayment, a tenant sued in small claims court for her deposit back plus damages because she had rats in her apartment…but she also had months’ worth of garbage that was never taken out and slept with the back door open so the dog could come in and out.
Real estate investors are leading targets to those who want something for nothing. But there is an easy way to protect yourself and your family from these “criminals.”
Well, that is the topic of this Tuesday’s LIVE STREAM with Lou Brown. Lou has been an investor and mentor for over 40 years. Thousands and thousands of people have come to Lou to learn his unique approach to real estate investing.
Tune in and participate in this LIVE discussion as Lou shares the powerful secrets of how to PROPERLY protect your asset.
There will also be an exciting FREE give-away of Lou’s book, “TRUSTS Create Privacy, Avoid Probate, Protect Everything” which outlines the unique approach used by Lou and his devotee investors!
Timestamps:
0:01 – Introduction – “Are you a Landlord? Let me help you with your collections!”
6:00 – Massive Passive Income Event – June 24 – 27, 2021 https://www.StreetSmartMPI.com or call 1-800-578-8580
11:30 – Street Smart Work For Equity Program
15:22 – Option to Buy the Property
17:11 – What is Owner-Financing?
22:35 – Equal Opportunities of Home Ownership for Latino Community
24:39 – We are improving communities that want to provide homeownership.
26:15 – Lou’s most important training: https://www.StreetSmartMPI.com
If you are JUST getting started in real estate investing, you NEED to attend my ONE-DAY virtual training. I teach it LIVE over ZOOM, and it’s only $1 (yes, one dollar) for SIX HOURS of solid how-to training! https://www.wealthbuilderworkshop.online
If you’re ready for a more in-depth experience, then you owe it to yourself to investigate my THREE- DAY Millionaire Jumpstart Event. I host it four times a year in various locations, and you can attend LIVE and in person. I’m your coach all three days. Find out more at https://millionairejumpstart.com/
Need help deciding which power-packed “one-of-a-kind” training on making money in real estate investing is best for you!
Call 1-800-578-8580 or visit us online at https://www.streetsmartinvestor.com
Visit our YouTube Channel: https://www.youtube.com/user/StreetSmartInvestor
Listen to our Podcast:
https://streetsmart.mypodcastworld.com/11174/cover-your-assets-street-smart-investor
Here is How to Thrive As A Landlord
Lou Brown
00:00:02
I’m going to have some great information that’ll transform and help your business today. I was planning to talk about trusts and a question came up this morning that really caused me to pause for a second and say, “I will talk about trust next week because there is such a powerful and important thing going on right now.” And if you’re like a lot of landlords, you are struggling with certain collections, yes? Maybe all of your people are paying and maybe you’re not having any issues at all. Well, let me tell you what I’ve been able to do to help a lot of people with their businesses. It is a game-changer. It is something different. It is something unique.
Lou Brown
00:00:58
It is something that most landlords are not doing. And it is something that I introduced to my team and my licensees several years ago, maybe five, six years ago. And it has transformed a lot of people’s businesses. And that is collections. Now we all know that collections are a part of our business. And certainly if one of our residents does not have the money to pay, well, that’s a problem for us, isn’t it? Because we use their money, of course, to pay our mortgage payments, to pay property taxes, to pay insurance. We use that money to be able to forward the business and sustain the business. And hopefully there’s enough leftover for you to buy some groceries with it, some other great things. Well, one of the things that I came up with is the fact that we actually put our residents in a challenging position.
Lou Brown
00:01:57
Think about it this way. Every month the rent is due, right? It’s a chunk of money. And for some of our residents, it’s their whole paycheck. They talk about Whole Foods being a whole paycheck. No, the rent is the whole paycheck. Now, imagine that there was a solution for that. So I started looking and I’m always looking at my residents. I’m always looking at how I can help them. I’m always looking at how I can support them. I’m always looking at how I can make their life better. And one of the unique things I developed was a way to actually get direct deposit from their job. So what that means is if your residents are paid weekly or biweekly, well, they’ve got that income coming in. Now imagine this, that every pay period, a certain amount is taken out of their pay and directly deposited into your bank account.
Lou Brown
00:02:59
And this is one of the big solutions. I’m looking at your paycheck, I’m looking at your income and thinking about how we can create a distinction in your world that will cause your world to be safer and better. And here’s what can happen. Now, we see what the government does, right? On W-2 income? They take their portion before you even see your pay. Well, that’s a pretty good project. That’s a pretty good program. Why not do the same thing where you propose to your residents, “Hey, every pay period, there’s an amount coming out that’s directly deposited into our account and we’re giving you credit for that.” Now, think of it this way. What if your rent is a thousand dollars a month? What if every pay period, $500 is paid directly to you? Well, what does that do?
Lou Brown
00:03:58
In 12 months, you’ve collected your whole paycheck. In fact, you’ve collected 13 months when you’ve collected it at $500, every pay period, if they’re paid every two weeks, which a whole lot of people are. Now, we think of it this way, that you got 26 paychecks coming in, instead of 12 checks coming in, you got 26. What does that do for your resident? Well, we tell our resident, we’re actually over-collecting by doing it this way. And here’s what’s good for you. By the end of the year, we’ve actually got an extra month on hand. Now we can use that extra month as a lifesaver account. And what that does for you is, if you ever hit a bump in the road, if you hit a job loss, you hit a snag where you just can’t make the payment that month. It’s not a problem because we already have a month on hand.
Lou Brown
00:04:53
And after two years, you got two months on hand. And after three years, you got three months on hand. Well, what can they do with that money? That now becomes money that they can use if you want to sell the property to them. So that’s another thing we do on our Path To Home Ownership Plan, right? We want our residents to have the opportunity to buy your house or a different house. We’re helping them to build up their credit. We’re helping them to build up their down payment. We’re helping them to build up a future. So if you’ve helped them to now accumulate that extra month per year, that’s money that can be used for down payment. And we tell them, “This is your money. We can gift this to you, give this to you, whatever the case may be.” But they’ve got money on hand to protect their future. And you’ve got money on hand to protect your future as well. So hopefully you love that idea. And there’s many more actually that I share with you at our trainings.
Lou Brown
00:05:57
And, remarkably, we’ve got an event coming up this week. It’s called Massive Passive Income. That’s one of the ideas with the paperwork for you to be able to do that payroll deduction/direct deposit. Now, once you get this into your world, like so many of my clients that have learned from me, this will actually become the way you do business. Many of my clients have all of their residents on direct deposit. How cool is that? Direct deposit right into your account, every pay period, so you’re not putting the burden on them to come up with that big, fat, whole paycheck that sometimes stresses them out. You now have the ability to split up their payment. Now, what else have you got? You’ve got cash flow throughout the month, instead of just waiting for that one time a month, when all the money comes in, it’s actually coming in throughout the month.
Lou Brown
00:07:19
And I promise you, that’s going to be a big game-changer for you. Now at Massive Passive Income, that’s not all I’m going to cover. I’m actually going to cover the entire process of managing these properties long-term because I’m the buy-hold-sell guy, right? So, in between the buying and the selling is the holding and there’s massive, passive income that can come in as a result of that. And one of the things we do in the distinctions that we make is we actually give our residents the opportunity to someday purchase that home or a different home. Now I’m going to be going through that entire process while we’re together. In fact, I’m going to be going through all the paperwork. And I’m going to tell you some profit centers, we’ve got 25 different profit centers over and above what a typical landlord makes.
Lou Brown
00:08:10
So, that’s one of the things that you need, the distinction in your business. If you are a holder of property, I promise you there’s a whole lot more money on the table that you could be capturing. Your residents are actually spending this money with other people. They could be spending it with you. And this is a beautiful income stream to go with the residual income model, that I’m a big believer in, in the buy-hold-sell strategy.
Lou Brown
00:09:03
Learn more at StreetSmartMPI.com. Or you can call our office +1-800-578-8580. Now again, I’ve got 25 different profit centers that I’m going to be laying out there. And one of the most special things is I’ve got a bonus for you. This bonus is an auto-fill of all of our documentation. So basically you can fill out one page and boom, it automatically fills out the entire packet. So whether you’re just renting or you’re renting with the option to buy, or you’re selling the property to them on an agreement for deed with in-house owner financing, or you’re selling it for cash, we’ve got it all set up on an autofill where you can just easily fill it in and boom, it auto-populates all your documents so it makes your closing so easy with your residents. They absolutely love you, but there’s a number of things in terms of collections, notifications, disclosures, all those things are included in the package.
Lou Brown
00:10:08
Scott, I know that you’ve got some questions for me today. I know that there’s a bunch of stuff coming in, and by the way, you guys, this is what I’m doing for you. So any questions that you have about real estate, about buying properties, holding properties, selling properties about renovations, lease options, owner financing. About borrowing money at the right price, low cost from private money sources, not from banks. That’s another thing I specialize in. Scott, what do you have for me today?
Scott Paton
00:11:29
One of the things I wanted to ask you about was if we could get you to talk a little bit about the Street Smart Work for Equity Program because oftentimes when people are looking to get into a house, first of all, if they’re renters and they think all they can do is rent. There’s a lot more options than they know. And this is one of the really cool ones that you’ve put together.
Lou Brown
00:11:51
You know, Scott, it’s a topic in and of itself, really because there is so much to say about it. It was an absolute game-changer when I came up with the idea that people are struggling, they have a challenge. Sometimes they don’t have all the down payment money necessary. They want to lease the property with the option to buy. And I’ll tell you a quick story about that. They want to buy the property using owner-financing because they can’t qualify for a loan at the bank, but they just don’t have enough down payment money. So I came up with this idea, look, they’ve got some cash. That’s a great thing. And that’s why most people are just renters because all they have is just enough for a security deposit, but they really don’t have enough to move themselves ahead in the game of life, in the game of ownership of property.
Lou Brown
00:12:45
So I said, what can we do to assist these people? I came up with the idea of allowing them the opportunity to do some or all of the repairs on the home. Now, sometimes that’s as little as painting the walls or doing landscaping around the property. Sometimes it’s cleaning the carpets and just trashing out the property, cleaning up the property. And sometimes it’s something much more significant than that, where we’re talking drywall, electrical, plumbing, roofing, heating, and air-conditioning and so on. Well for professionals that’s what they do and tied in with other people that do those things, it’s no big deal for them. In fact, they’re very attracted to it. So I came up with the idea that people could look at our home and they could determine, “Look, I don’t want to do any repairs.” Fine. We’ll do all the repairs, not a problem.
Lou Brown
00:13:40
Hopefully you have enough money. If they don’t and they’re willing to do some of the repairs, not a problem. They go through the property and choose what they want to do and can do and are capable of doing. Now, we’re looking for professionals. We’re looking for people that can do that work and are pros at doing that work. If there’s something higher level such as heating and air conditioning, electrical, plumbing, roofing, we want professionals that are going to be able to do that. Here’s what’s interesting. We’ll allow our people to do work on someone else’s home for credit on their own home. So let’s say that another house needs a roof. We’ll let them do the roof on the other house for that client over there. That client does get any credit for it because they couldn’t do the roof, but my client gets credit on their own home for doing that roof over there.
Lou Brown
00:14:33
So that’s another way that we can parlay their talents and their skills and their licensing to be able to help them build up their downpayment, as well. So the Work for Equity Program has been a phenomenal game-changer. That is one of the big things that we do cover at MPI, Massive Passive Income because it was huge. Most of the houses I do now, people choose to do some or all of the repairs on. We don’t require it. Like I said, it’s not a requirement. People can choose to have us do a hundred percent of the repairs. We just did one for a client. They didn’t want to do anything. She works two jobs. She didn’t have any time left over to be able to do anything. Not a problem. We went in, did everything. Good news, she had enough money for us to be able to do that.
Lou Brown
00:15:22
But you know, it’s a real gift that we’re giving people. When we give them the opportunity at home ownership, it’s a real gift when we can give them the option to buy the property. Because one of the things that just happened to us yesterday, one of our clients was asking us to move up on the Path To Home Ownership. And we looked, he’s been in the property almost three years now. Now his strike price on the option to buy is $118,000. In looking at what the property is worth right now, the property is worth about $160,000. So my client is really making out big time. And he’s so excited because what did he do? He took action in his life. Now we’re happy. We’re happy that this client has made the commitment years ago for the option to purchase this property and now is stepping up to the next level on the Path To Home Ownership.
Lou Brown
00:16:21
We’re so proud of him and we’ll definitely have a video of that, but just look at what you are doing to impact someone else’s life and help them build equity. Now, this is someone that otherwise would not have had the chance to do it. So Work for Equity is a great thing. A lease with the option to buy is a great thing. Learn about these tools, learn about these techniques because this is something that is a game-changer for landlords. You know, I’m the anti-landlord, right? I say that there are so many other ways we can make money in this business without just landlording. So that’s been my focus and that’s our focus this week for sure, too.
Scott Paton
00:17:03
Lou, one of our viewers was excited about the owner-financing information. Can you explain what owner financing is? Because in my mind, it’s when I’m an owner, I need financing. I go to the bank because that’s the only thing I’ve ever been taught. If you want money in a mortgage, where do you go? You go to the bank. And, of course, that is the only way to get your money, right, Lou?
Lou Brown
00:17:40
You know, Scott, that’s a great point. I was at a charity function on Saturday night and it was for autism and the spectrum, where participants in terms of being donors, and what have you, were in there. And we were invited there. And one of the people there, her son, three years old, is on the spectrum. She works for, let’s say, one of the largest banks. She’s been with them for 12 years. And she said, one of the things I was talking to her about as well, we take all your leftovers. So everybody that you can’t qualify, I said, “Does it ever happen? You, as a banker, does it ever happen where you can’t qualify for?” She says, “All the time!” And I said, “So they’ve got you in a box, right?” And she said, “That’s exactly right.”
Lou Brown
00:18:34
She said, “We cannot go outside the box. They give us scripts. They tell us, never go out of this box right here.” And she said, “There’s so many people that we turned down”. I said, “Well, all we’re interested in is your leftovers, everybody that you cannot help, we can possibly help.” And with our programs, she was so thrilled with what I was sharing with her. In fact, she’s going to be coming to my Wealth Builder Workshop on the 10th of July and her mother, as well, was there and she’s coming, as well. But one of the things she told me is that she is absolutely in the box and can’t do anything else. So Scott, the question is, what about owner-financing? So many people are kicked out of the box and they’re told we can’t help you because you’re not inside the box.
Lou Brown
00:19:28
You don’t fit these four corners, these parameters. Well, what we can do in our world is we can lend our equity. So when we lend our equity, that is owner-financing. That’s the owner of the property, given the opportunity, the person that’s moved in to pay principal, interest, taxes, and insurance, very similar to a mortgage. And we give something called an “agreement for deed.” Now, agreement for deed works similar to a car. Whenever you buy a car and you get it financed, they let you drive the car. They let you use the car. They let you insure the car, but they keep the title to the vehicle until you pay them off. Well, this works exactly the same way. We allow people to move into the property. They make their payments. As long as they make their payments, when they finish making their payments or they refinance and get a new loan from the bank, they pay us off.
Lou Brown
00:20:29
At that time, we give them the deed to the property and that works out magnificently well for all parties involved. It’s just been a great process that we’ve been able to help people to end up with home ownership. One of the folks I was looking at just this week, he bought his property from us last year and we gave him exactly what he agreed to on his option. We gave him that option. He exercised his option to buy. We gave him owner-financing and now that property is worth $50,000 more than what we sold it to him for. So that’s another example. I’ve given you another example in this same session, but, basically, it’s a great opportunity for people to advance themselves. And it’s a great opportunity for you as an investor, as well, because now that client that’s living in the home is taking on all the responsibilities of repairs, just like every homeowner does, right?
Lou Brown
00:21:32
Every homeowner has the responsibility, if their air-conditioning goes out, they have to call a repairman and get their air-conditioning fixed. If the roof leaks, they have to get a roofer in there to repair the roof. Well, that’s what we’re doing with these folks. We’re giving them the opportunity at home ownership. We’re providing our equity as their funding for the purchase of the home, and they’re paying us instead of paying the bank. And anytime in that process, they can use their newfound credit and their built-up credit and their improved credit to now qualify for a loan at the bank. And that now they can get a new loan, hopefully at a lower interest rate, now that they’ve built up their credit. So it’s a real opportunity for people. Owner financing is a really great thing. And it’s a really great thing for an investor. It’s a really great thing for the customer that might use that financing, as well.
Scott Paton
00:22:32
Literally, we have a question from a real estate investor who does not speak Spanish, but he says, “You know, I’ve been thinking about the Latino market. And can you talk a little bit about the challenges and opportunities that are there?”
Lou Brown
00:22:48
You’re talking about a community that’s very near and dear to my heart. You know, folks say that they want homeownership and things like that, but sometimes it’s ingrained in your blood. Sometimes it’s cultural that homeownership is what’s expected in your family. And certainly, the Latino community is one example of that. And so in their world, they’re always working towards homeownership. And one of the great things in offering our Work for Equity Program, for example, is that they can come in and do some or all of the repairs. They absolutely love that. And then the opportunity for us to be the bank for them without having to go to banks and qualify for loans. That’s another thing that I absolutely love. And so it’s a market to actually expose yourself to. Now what we’ve done is we’ve taken our tri-fold brochure and we’ve converted that into Spanish. We have all of our house monster marketing in Spanish. We have our websites in Spanish, converted to Spanish. So it’s definitely a community that we want to serve. And we do serve, we have many of our folks that are from that community and absolutely love and share with their friends, too, about what we do and bring us customers that way, as well.
Lou Brown
00:24:31
I hope you guys are enjoying this. Do let us know if this has been valuable to you. We would love to be able to help you and advance your business, advance what you’re doing in your communities. We see ourselves as changing and improving communities. And we are looking for folks that want to do the same thing. We are part of a nationwide network and a movement to cause home ownership in this country. Something that’s disappearing because of the cost of housing and because of the cost of rent and things like that. It’s more and more difficult for people to be able to qualify to purchase properties. And we want to be that difference. We know we can be, we know we are that. We are in many communities across the country, making a difference, and we’d love to invite you into our world so that you can make a difference in your community as well.
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