Navigating the Real Estate Market and Closing Deals Using Creative Financing - a podcast by Inspiring interviews with todays most successful real estate investors!
from 2020-11-26T08:30
In this episode, I welcome 3-time best-selling author Chris Prefontaine to the show. Chris is the founder and CEO of SmartRealEstateCoach.com, the host of the popular show “Smart Real Estate Coach Podcast,” and has been in real estate for almost 30 years.
We first bring Chris’ experience into context by going way back to the early 90s. Chris initially went to college and worked for his father full-time as a purchasing agent, at which time he read Trump’s first book, The Art of the Deal, and he felt the itch to get into the real estate business, but he didn’t quite know yet how to get started.
Eventually, after watching his father purchase, engineer, and flip land, Chris made his first deal - a split level home on a golf course, bought conventionally with a mortgage. He subsequently subdivided the land, built a duplex on it, and then sold the duplex as 2 condos. Within a year, Chris made the transition to go into real estate full-time, although not entirely by choice. His dad had sold the company Chris was still working for and he got fired from it after only 4 weeks by the new owners. This left him unemployed with 2 young kids. Then, Chris listened to an old Earl Nightingale cassette tape and that sparked an idea. He subsequently did over 100 deals with absolutely no cash down!
We then dove deeper into his business model and Chris explains what it means to buy a house on terms. Chris explains how the ‘08 crash left him struggling, without any credit, and how he had to make some firm choices about his business model that led him to creative financing. We then go further into detail, explaining the terms of a lease-purchase, what it means if a property is owner-financed, how everyone involved benefits from the agreement for a variety of reasons, such as for example tax and estate planning.
Chris then shares his personal philosophy for transitioning from a full-time job to real estate investing. His most important advice is to have a game plan and then execute it, which is the hardest part. His top strategy has 3 simple steps: pick a niche, find someone to show you the path, and put the blinders on for 36 months to focus.
Today, Chris’ business is almost entirely based on lease purchasing and they currently purchase between two and five homes a month. After transitioning to his 3 payday model, Chris admits that he just doesn’t feel inspired to chase after one-time deals and this focus is what has contributed largely to his level of success.
After this, we discussed the ever-popular topic of finding deals. Chris reveals exactly how he finds his deals and then converts them, and what he pays particular attention to. We then dive into the most common objections that Chris experiences and he shares the exact replies that he gives in these circumstances.
Lastly, we talk about contingency plans and how Chris protects the business in case of a buyer defaulting or the economy taking a hit, which are two major concerns with the type of investing that he does. This episode is chock full of actionable advice and so you will not want to miss this version of the Just Start Real Estate Podcast with guest, Chris Prefontaine!
Notable Quotes:
“Don’t get scattered. If you have a plan, stick to the plan. Stop looking for answers once you find them.”
- Mike Simmons
“A lot of people just get into that asking mode where they want more information, but they’re afraid to pull the trigger.”
- Mike Simmons
“Here’s a formula I tell everyone: pick a niche you can get behind, something you can get passionate about. Find the person that can show you the path, someone that already did it. Then put the blinders on for 36 months.”
- Chris Prefontaine
“Stay focused on what you know works. Focus is really, really important in real estate.”
- Mike Simmons
“If we’re getting back into real estate, what are going to be the rules here? No signing personally, no bank loans, no soliciting of assets. All the things we did wrong, we just decided never to do again.”
- Chris Prefontaine
“The takeaway is powerful - it’s that push-pull tension. When you have something taken away, the human instinct is to get it back.”
- Mike Simmons
Links:
Real Estate on Your Own Terms - Free Book
Level Jumping: How I Grew My Business to Over $1 Million in Profits in 12 Months
Further episodes of Just Start Real Estate with Mike Simmons
Further podcasts by Inspiring interviews with today's most successful real estate investors!
Website of Inspiring interviews with today's most successful real estate investors!