Simple Ways to Find Your Next No Money Down Deal - Q & AJul 25, 2021
Editors note: This is a continuation of a Facebook Live I did. You can catch the full replay on my Youtube Channel.
Q & A
Kenny asks, anytime I bring this up to potential sellers, I feel like they have no idea what I'm talking about or act like they're going to get burned. Do you have any suggestions on how to introduce this concept and in some way to less savvy owners? Awesome question, Kenny.
Yes, absolutely. What you need to be able to do is you need to be able to explain what you're doing to a five-year-old and that really just comes through practice. It means that you know, even though you're nervous, maybe you're not nervous, but, a little apprehensive about going out there and knocking on doors and talking to people based on what they're going to say, that's really the stuff you've got to go through, to gain that experience. One of the best things you can do is practice, role play. Roleplay with someone in your life who does not get it, maybe a significant other, friend, mother, father, etc. Pitch yourself in the shower, on the way to work. That way you'll have the ability to speak more confidently with others in public or door knocking. (PRO TIP RIGHT THERE) What I've done also is I've, I've asked people who are business-minded and get them to sit down with me.
"Pro Tip - Roleplay until you can confidently go through your pitch or talking points backward and forwards."
I ask them to role-play with me and I go through my whole pitch and they can ask whatever questions they want and any objections they want, again it's a safer environment to do that. And you'll get really good feedback from that and a good response but I find the best is by taking real-life action and finding owners of properties, responding to ads, calling fisbos, (for sale by owner) calling for rent by owners as well, but just TAKE ACTION.
"taking consistent daily action is the one way you will win for sure."
One key thing I always tell my students is, don't fake it till you make it. Don't go out there and when someone asks you a question, you come up with some sort of, BS answer. As humans we tend to have a pretty high BS radar and pretending you have all the answers will only turn people off and make them not want to work with you.
"Do not fake it until you make it."
my wife really pushed me on this early on, don't fake it till you make it. "Be real she would say." To this day when I get questions, if I don't know the answer, instead of faking it till I make it, I'll say, "that's a really good question. I don't know the answer to that. Let me find out and I'll get back to you." That does two or three things right there. One, it builds some sincerity, some honesty, which turns into rapport. You want to be building rapport with anybody that you're selling to or that you want to buy from or work with.
"Be real she would say."
Secondly, it gives you another automatic touchpoint with them, in the future where you go back and you find out the answers to their questions, you can come back, now they know you're being legit and working for them. All because you have said, Oh, let me go find out the answer. because nine times out of 10 people don't follow up. And they never do. This is a huge opportunity for you. You're doing what others won't, and that ups your trust factor with them. Here you're creating touchpoints and building rapport. Kenny, that's something that again is best by going out there and do it.
"Being honest, following up, and answering questions will put you ahead of your competition."
I can remember one of the first investors that I found off of Kijiji, where I made my pitch, I made a pitch over the phone and it got them to the point where they said, yeah, let's talk man. We then met at the property. I brought my contracts, walked through them and it was pretty good. But in the end I made one comment that totally blew it. And I knew as soon as I said it (you ever done that?), I was like, that did not sound good. It did not, not what I intended. And it didn't sound good. And so long story short, they didn't work with me, because of that one comment. The lesson I learned from actually doing that was invaluable. I've gone on to close deals like that since, of course, if it was not for that learning experience I would not know what to do differently next time. Hopefully that's helpful, Kenny.
A BIG NOTE ON THAT LAST LITTLE BIT - ROLEPLAYING AND LEARNING FROM OTHERS SO YOU DON'T HAVE TO PUT DEALS IN JEOPARDY IS ONE OF THE BIG REASONS I STARTED CREATIVE INVESTOR. YOU CAN LEARN FROM MY MISTAKES AND OTHERS IN OUR PRIVATE GROUP - Check out my case study here
Kenny says, adding more value besides solving their main issue, getting out of the, to get out of the asset right?
That's good. Yeah. I mean, that's one of the biggest things I'd say when you're trying to buy off of someone and they've got a problem it is really taking the time to listen to what their problems are. And nine times out of 10, they won't be able to articulate very well what their actual problem is. But if you're listening, you'll be able to pull up key points. Key points of what they're talking about and know that those are their pain points. That way you can repack, and repeat back to them. "If I understand you right, Bob, what I hear, what you're saying is that you're just tired of dealing with tenants, is that right?" Or
"You're not so concerned about selling your house right now, because you don't really need the cash flow. You don't really need the money from it, but you would still really like to keep the property, but still, some cash flow from it is that fair?" They say yes or no and that's leading into an awesome partnership where they hold the property but you become their tenant and then you rent it out to somebody else and you make a profit from that deal. (awesome right?)
"You need to hear what people are REALLY saying, are you truly listening?"
Jacques says you took a mortgage after three years. You said you could not do the banks, can you explain?
Okay. Great question. Keep in mind, there are so many different ways that you can structure these deals. I've had a duplex that I rented to own to another investor.
So I owned it, I had the investor, I had someone that I knew who wasn't an investor, who couldn't get any more properties right now. And so, we did up the paperwork and they became my tenant-buyer, but I knew they weren't living it. They were going to rent it out. That's the two sides of the duplex, and he's going to pay me to rent every month. And in three years, he was in a much better position. He could then qualify for a mortgage. That's one way to build your portfolio, where you qualify for the mortgage after three years. A lot of times what I do when I acquire these homes is I will put a qualified rent to own client.
"You don't have to qualify for a mortgage, there is so many ways to structure these deals."
A tenant buyer is a whole other subject but what I'm doing is, is I'm helping those families get into home ownership, but I'm doing it with houses that I don't technically own. I'm not on the mortgage and I didn't have to come up with a down payment. For me, that's a great strategy because I can make anywhere from $30,000 to $60,000 on that deal over the three years without having to qualify for the mortgage or the down payment. And I've got someone else who owns a property for me. So that means I'm able to scale very quickly. Right now when you go to a bank and it's taking weeks, sometimes months to get approved by a bank, depending on your bank, that can suck if you've got deals on your hands and want to take action. But in this scenario, you can do one a week.
"You can scale quickly because you don't have to qualify for a mortgage, you don't have to find the down payment and you can use other peoples money (OPM)"
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Cam Rowland is a business owner and real estate investor from Winnipeg Canada. He purchased his first investment property in 2006 after reading Rich Dad, Poor Dad by Robert Kiyosaki. In 2010 he shifted focus to Rent to Own. As a result, he was able to grow his real estate portfolio, grow his cash flow and quit his day job! After 100's of successful deals, Cam started coaching others to do the same and now offers a 6-week coaching program. If you're an action taker and want results like Cam, check out this Free Case Study. (click the button below)