life goes by too damn fast for you guys to hesitate and have analysis paralysis and what I want to talk about today is I'm going to talk about options the number one thing I'm going to talk about are additional options I'm not a mindset person that's Ed melet's job he's gangster at that I'm the options guy I'm the guy that's going to give you some additional options to make some money what I'm going to talk about today are options that people gave me and how I've built my real estate portfolio my business portfolio all of those types of things I'm going to give you guys a couple of e extra options but I want you guys to think about when I'm buying real estate or I'm buying businesses or even if I'm buying an airplane cars whatever it is I never use my own money I never used my credit and I've never used a W2 tax history nobody's even asked for my bank balance when I buy these things I'm going to give you guys some really cool options I'm going to go through acquisition strategies and as I go through the acquisition strategies you guys can take photos of this feel free to I'm going to give you the fact that I didn't know what any of these things were and a lot of you guys have no idea idea what these things are and we're not going to be able to go through all of them in 35 minutes but I'm going to go through a couple of them I want to tell you guys that I was a contractor for 10 years 10 years I was a contractor where did that option of becoming a contractor come from where did it come from where did that option come from did I just read in a book one day that I want to be a contractor what's that family business how many people here have made decisions because of people in your church people in your family people in your environment you literally are in the place you are today because of your environment and decisions that were made for you and you didn't even know that you needed to go find other options I was that guy I didn't know I didn't I didn't have options I thought I was killing as a contractor I had a lady come to me this is when I had about 200 employees I was a contractor and I had a lady come up to me and she said Pace you should be in real estate and I was like well I am in real estate look at all these houses I'm flipping and she says you're not flipping those houses you're flipping those houses for people like me I was a contractor flipping houses for other people I was their contractor to hire me me okay and she said Pace you are a slave to their business you're not a business owner you are a slave to my business and I was like how dare you say that to me then she went further and she said you are a simple Google search away from being replaced oh my God I felt like she this lady punched me in the gut but what she did is she went a step further she actually grabbed my shoulder and she dug her Talons in I can still fill it to this day and she said sit on the back of this truck we were on a job site and she says I want to show you how to go and find real estate she says all these excuses all this analysis paralysis I'm going to take you by the hand and I'm going to take you through your first deal well here's what's cool I don't have time to tell you about my first deal it is a great story anybody heard the bur bunny story before we're not going to talk about that story today sadly but I got my first deal okay she taught me how to send out postcards I don't send out postcards anymore because I have better options but she taught me to send out postcards I spent money I don't do that now but that was the options that I had at the time I got my first deal I made $25,000 assigning it to a a fix and flipper I got the contract I assigned it I made 25,000 bucks then I had a lady that I was doing my escrow with I was doing my paperwork the title company she had been in the business for 41 years she said who the heck are you I've never seen you before you're you seem like a new investor I go I am I finally made money in real estate I'd been telling myself for seven years that I was going to get in real estate I was going to do it I was going to do it you know what it took for me somebody caring enough to give me an option and I was able to get that option I learned how to find real estate which was great but this lady at the title company says look I've been in this business for 41 years can I tell you the number one thing that you're going to need in this real estate business I go yeah I'd love to you're going to tell me to work hard have good mindset and she goes no I'm going to tell you that the best leads that you will get in this business are going to be everybody else's worst leads that was the most important thing anybody had ever told me in business because it stopped me and made me think for a moment I said hold on a second what do you mean cuz I'm chasing deals where sellers are hoarding stuff and their house is halfway burned down and they're going through probate they're going through foreclosure and I'm trying to get houses 50 cents on the dollar with cash and she goes well what are you doing with the rest of your leads I go well I'm just basic those are dead leads like the seller wants way too much money anybody in here have a seller that's wants way too much freaking money and what do we call them we call them crazy Sellers and I love the those leads now because I have way more options which are on the screen and we'll get into that and I didn't understand what she told me so she wrote it out to me on a whiteboard and it took her about two hours to teach me what I'm going to teach you guys in about four minutes okay she told me what subject two and seller finance was and I kind of understood what seller finance was who does not understand what seller finance means there's got to be somebody in here perfect thank you brother what's your name Luke my God give it up for Luke for being honest cuz I know some of Y all were lying and kept your damn hands down thank you Luke I appreciate it so if you don't understand seller finance you definitely do not understand subject two is that correct that would be really weird if you knew subject two but you didn't know you know what I'm saying okay so let me talk to you guys about what subject two and seller finance are which are the only ways that I buy businesses real estate and vehicles the only way all right who has an iPhone in here that you're getting ready to switch out you're getting ready to like maybe you got an iPhone 14 or 13 that you're getting ready to upgrade to like a 15 who has one you're like I don't want to get picked on what's your name Gabriel stand up brother this is what happens when you're honest and when I'm speaking what do you have what kind of phone do you have you have a 14 okay cool Gabriel do you have a payment on that phone his wife says yes okay so you have a payment on that phone perfect thank you who's the payment with like AT&T T-Mobile Verizon okay Gabriel I'm going to come right back to you okay so you have a payment that payment is probably like 40 50 bucks a month 22 bucks damn y'all are gangsters okay Gabriel I'm going to come back to you who has a similar situation but you don't have a payment on your phone okay what's your name so Jackie you have an iPhone is it paid off at some point are you planning on upgrading it is it a 14 or 13 12 it's a 12 it's time to upgrade guys you basically have an Android is the way I look at it when somebody says oh you know they got an Android okay so Luke do you see the difference between these two we got Jackie who has an iPhone you have an eight do you have to crank it to keep it going like oh damn okay so Luke you've got Jackie right here who has an iPhone she's getting ready to upgrade and she has her phone paid off free and clear you've got Gabriel over here who has a similar iPhone that he does doesn't have paid off ring clear he has a payment on it does Gabriel own his phone yes he does my friends I'm GNA have to teach you guys something very valuable right now take a take a I'm going to come back to you guys this might be the only thing we I tell you today Jackie Gabriel take a seat I'm GNA come back to you because now I got to fix something that people people just said Gabriel doesn't own his phone you think Gabriel doesn't own his phone because he has a payment oh my friends I'm going to teach you so many great things right now okay let's say do you have a credit card yes okay we're friends right I need to go down to the grocery store can I borrow your credit card to go buy some groceries real quick how much like a hundred bucks okay okay cool can I have that credit card real fast she forgot okay okay but you have you'll give me your credit card to go buy some groceries okay cool check this out so I go down to the grocery store and I buy $100 at the grocery store I check out those groceries are now in my possession I have a receipt and I have the groceries who owns the groceries hold on a second but I used a credit card in somebody else's name how am I the owner of those groceries write this down I promise you this is a big deal for you if you can understand these types of things in real estate it'll open up your mind the way I can prove ownership is because I have the receipt pretty simple right what is the receipt of real estate the receipt of real estate is called a deed the person who controls the deed is the owner of the property the person who controls the deed is the owner of the property write this stuff down I promise you if you're a kinesthetic learner and you need to write stuff down to remember this stuff it will help okay so we all know that just because I have payments on the credit card I own those groceries do I not okay so Gabriel who has a payment on his phone who is the owner of the phone Gabriel is the owner of the phone he not only possesses it okay the lender loaned him money to buy it for himself he is the owner okay so let's work let's work out a deal I want to buy I want to buy both of these phones one I'm going to buy subject two and the other one I'm going to buy on seller finance okay Jackie can you stand up for me how much do you think that phone is worth if we put on Craigslist today okay she says maybe 700 so if we put the phone on Craigslist for $700 am I going to get $700 if if I put on Craigslist but it's worth that right if I put something that's worth $700 on Craigslist am I going to get 700 bucks sounds like people have been on Craigslist okay so what do you think you'll actually receive cuz somebody's going to come along and go I'm going to give you an all cash offer I'll come and meet you with cash they all talk like that on Craigslist what do you think I get 600 bucks 550 600 bucks okay so if you sell it for cash you know you're getting $600 okay Luke check this out is anybody in here work or H anybody in here own a company that if I had a cell phone and I came and worked for you and I used that cell phone I could make 105 $20,000 a month anybody in here insurance sales people what do you do okay High ticket sales how much does an average guy U make with you 12 15 grand a month so if I had nothing but a cell phone I could make 12 15 grand a month Co can we agree that an iPhone is an asset that I can make more money than what the phone is worth okay cool Jackie I will pay you $700 for your iPhone I know you're only going to get like 550 for it maybe 600 bucks but I'll pay you 700 but the way I want to pay you 700 is I want to give you $50 payments for the next 35 months would you be open to something like that actually no that's not 35 it's what is that that's that's only 14 months okay 14 months so for 14 months I'll pay you $50 a month to get you to your 700 are you good with that deal it's okay to say no okay perfect she's not she's probably not a good fit for me then she can go sell that for 550 bucks right right what would make you feel comfortable if I can't pay you you can take the phone back how about that okay so she's not a good fit for me Jackie take a seat I want to cut in here while we're making this video and let you know that we have the squad upsummit coming up go to squadup summit.com to join I'm going to tell you why you should be coming you should be coming in and learning creative Finance creative deal structure creative lending creative paperwork all the things that creative Finance is changing the game with my community is coming out sub2 Astro Gator Vena Jet's community top tier transaction coordinators are coming out all the people that do the the creative Finance paperwork yeah you're going to meet them there so if you feel like you're an island out there like maybe you've read this book right you've read wealth without cash you're like okay what next cool well now you know what you can do you know what's possible but who's going to help you get through it you've got to meet some of my leaders in the community and the best place to meet them is at the squadup Summits April 23rd 24th and 25th in Orlando I want to see you there I'll be out there hanging out some of the best speak I'm going to be the main real estate speaker Jam is going to be the main real estate speaker we have Vina Jetty and some other people but it's actually going to have a lot less speakers than most events while everybody else is trying to cram speakers and give you way too much information we're going to be building your business live we're going to be giving you homework right there live we're going to be guiding you through it so when you walk away you've actually built something you've done something and you've squat up with powerful leaders in my community that we've been building for years go to Squad upsummit tocom I can't wait to see you April 23rd 24th and 25th in Orlando get back to the video who else has an iPhone okay I will never buy an Android to save my life what's your name do you have an iPhone okay stand up what's your iPhone by the way guys this that's how real estate works and a lot of you guys quit right after that I immediately go Oh you're not a good fit for me I can't help you and you don't want to be helped I'm moving on what's your name BBY bulby hell yeah bro that's a dope name you've got a phone how much you think it's worth okay I'll pay you $300 if you let me pay you $30 a month for 10 months would you do that deal yes or no okay yes okay so what terms did I just work out Luke he says $300 is what he he thinks his phone's worth 200 I said I'll pay you 300 but you just got to let me pay you $30 a month for 10 months what do we call that terms now I'm gonna I'm gonna teach you what are terms okay when you guys hear people say oh it's a terms deal what does that mean it means four things write this down if you don't know what terms means it means purchase price down payment interest rate and length of time that is what terms mean purchase price down payment interest rate and length of time now did I work all four of those out with him yes I did I'm just really good at it what's my what's my purchase price 300 what's my down payment zero what's my interest rate zero what's my length of time 10 months we just worked out Luke do you now understand what seller finance is did I need did I need to go to a bank did I need to come up with money could I not go get B's phone and go work for his the other guy's company and make 12 $15,000 a month off that phone so even though I paid a little bit over what the value of that phone was I gave him what he wanted so that I could get into something without credit credentials tax history or anything else okay I do this with single family houses I do this with multif Family Properties I do this with RV parks I do this with businesses cars all sorts of stuff okay so I do the same exact thing now let's talk about what subject two is Luke did you just learn what seller finance is then I flew here to Vegas just for you my friend okay all right did that help anybody else ALS understand seller finance okay cool let's talk about what subject two is Gabriel my my buddy stand up I love how your wife ratted you out that was so great okay so you've got an iPhone and you have a $22 monthly payment on it okay when are you planning on upgrading that phone in three months okay would you let me take over those $22 monthly payments hand the phone to me and once those payments are paid off I'll continue continue to make $22 payments to you guys or whatever you guys want for maybe six months and I'll give you guys a little bit of money on top of it are you good with a deal like that I'm looking at you because you're obviously the boss okay what do you think the phone is worth right now 750 okay how much do we owe on the payment do we know most people don't have a clue by the way this is the same in real estate 200 okay you owe about 200 so here's what I'll do I'll make your payments for $22 a month and once those payments are paid off I'll make the remaining P payments to you guys directly are you okay with something like that okay so I just worked out $750 $22 a a month what's my interest rate zero what's my down payment okay we just worked out a terms deal we call that subject two Luke why is that different it's because they have a debt they have a $22 debt on that phone and I'm simply going to make the payments on their behalf that's called subject to okay is that helpful for some people in here did you have a little breakthrough I'm telling you it took me maybe four weeks to truly understand that from somebody else okay so let's go into let's go into these strategies so here's what I do so subject two is my number one strategy what's up bro good to see you have you guys ever done a sub two deal I've done deals with you guys good to see you guys how many people in here have done a subject two deal raise your hand okay so what you're what you guys are witnessing is a group of people in here 30 40 people have done deals where they just take over somebody else's debt why the hell what I want to take over is somebody's debt write this down this is so important to you telling you this is the most important thing ever the value of something is never the purchase price the value of something is always what you can do with it now look at those iPhones I take a $30 monthly payment on an iPhone I come work for this gentleman I make $122,000 so it's the same thing with real estate just because I took over a piece of real estate with a $1,000 monthly payment doesn't that mean I should be able to go and rent it out at a higher dollar amount usually okay the average interest rate that we are taking over right now on houses apartment complexes RV parks is 3% 30% of my deals that I'm doing right now are 0% seller finance and while everybody else is out there talking about what the FED is doing and what the banking Situation's doing I have not cared about the banks I have not cared about I have not had my credit checked in over eight years let's do a couple of examples how with that you guys cool with that all right here's a piece of land you guys can take a photo of of the the stuff take a photo of the slide I've got 15 minutes this is perfect has it already been valuable have you guys already walked away with some value today okay oh my gosh I wish somebody told me this 15 years ago all right so I've got 50 Lots right here here's the address 50 Lots I pulled the list now I'm a deal finder how many people in here are deal finders that I could buy a deal from keep your hand raised please everybody look around at the people with their hand raised if you don't want to find a deal I'm going to go to you and say can I just buy a deal from you because you'll find it will you find a deal and assign it to me and I can buy it from you hell yeah I love that so one more time people go out and find deals I call you guys the scouts the people go out and find deals hell yeah hell yeah you got your hand hell yeah hell yeah that's freaking awesome okay so my Scouts this is helpful for you for the people that are like I don't want to scout I don't want to call sellers I don't want to negotiate great let the scouts do that and they can bring the deals to you after the events's over go and talk to them okay for me I pulled a list of vacant properties where the owner owned the property for over 10 years what does that tell you in terms of motivation it's a piece of dirt it's 50 Lots somebody's owned 10 50 pieces of dirt for 10 years what do you think they got got some motivation maybe they have Equity o i I like that that's a good one I like that so here's what I did the seller says we want $115,000 per lot my answer to him was I actually it wasn't hell no I do like that what I said to him was how about I give you 16,000 crazy huh CU I think differently than everybody else everybody else is trying to rob the seller of their Equity I'm trying to partner with the seller so what I did on this particular deal is I told the seller I give you 16 Grand but I want you to carry the dirt which means don't make me make a payment or pay the dirt off until I build the houses on the dirt and sell them to my buyer okay so I I tell the seller go if you want 16 the this dude's already waited 10 years for freaking dirt what's happened nothing so I go how about this I'll give you $1,000 more per lot so that's $50,000 total he's got 50 Lots what I want you to do is I want you to wait until I build on them now this is something Jerome does too okay this for you developers out there this is a really good example so this is what I did I got the seller to sell the 50 Lots to me no payments no interest until I sell the houses that I had not built yet so I then went and got two more Partners I got a developer kind of like Jerome and I said will you carry the construction costs on your line of credit and let's get these things built and I partnered with a manufactured home developer and he brought in all the homes I'm 30% owner of this property I make $1.8 million net in my pocket in 18 months by putting this deal together did I have to use any money did I have to use any credit did I have to use any of my own cash do we have a money problem do we have a credit problem we have a creativity problem and a lack of networking problem do we not okay let's do another one oh this one's a good one this is another really really great place I get my deals can I can I are you guys okay if I bash real estate agents and brokers in here anybody in here okay with that you don't learn real estate as a real estate agent I'm so sorry you learn how to put a sign in a yard and do be a therapist to Sellers and if you're an agent you're like damn this boy knows me okay most agents don't know how to comp their own property so this seller puts two RV parks up this is these are the two addresses puts these two RV parks up with a broker broker goes 5 months not being able to sell them why well because we don't have an inventory problem in the country guys right now don't let people lie to you we do not have an inventory problem we if we had an inventory problem why are there houses on the MLS we don't have an inventory problem write this down we have an affordability problem the problem is the buyers can't afford to buy the properties there are on inventory and so this broker and the seller selling these two RV parks this is up in Montana nobody comes along and buys them not because these RV parks aren't great it's because if they went and got a loan today how much are there how much are there a loan terms 8 and a half % anybody super motivated to buy something at 8 and a half %. Okay cool so I called the agent I said hey Will the seller do terms you think the agent even has a freaking clue what terms are been a broker for 15 years there's a reason why they call them Brokers cuz they're Broker Than You So I had to teach this broker what creative Finance was and I said I can pay your seller's number of $6.3 million but I need to be able to give him payments so can we do this with RV parks this deal I ended up getting into I actually needed some money the seller wanted 8% down $6.3 million so what I did is I put two people together and I brought them in as my partners this is a deal I closed a week ago okay easy okay so this is a little over a lot of people's head let's go let's let's go to some easier stuff how about this this is one of the best deals ever I will wrap it up with this I've got 8 minutes I'm going to try and beat this I'm going to try and get off stage with a minute to spare because I want to give Ed mlet an extra minute that guy is about as good as it gets okay check this out so sellers trying to sell the property Zillow says that the property is worth a 100 Grand it's a little Mobile Home Three bed two bath mobile home what do you think the seller wants if Zillow says it's worth 100 grand oh you're close bro you're so close 110 Grand seller wants 110 Grand welcome to real estate okay so I get this lead from a wholesaler anybody in here a wholesaler okay y'all give me all your dead leads because this is what I do with your dead leads all the leads you don't touch become the best deals of my life wholesaler calls me up his name is Tim Tim uh Hey Pace this is Tim I I I saw you at a local real estate Meetup I saw you doing the thing would you come on this appointment with me like you said you would hell yeah dude I freaking love going on appointments let's go we go meet Dale and Susan the owners of the property they would not let us in the property because there's tenants inside the property so we're hanging out in the carport I'm talking to you you're a wholesaler I'm going to look into your soul right now I'm going to make you go back to all your dead leads and rethink the way you're doing business okay so I asked Dale and Susan I said all right so you guys want 110 Grand I'm sure you're probably getting offers at probably 4 $50,000 because that's what a wholeseller would have to pay for it in order to put money into it flip it put it on the market and make some money right and S Susan goes yeah how did you know how did you know we were getting 4050 Grand I said because if I was going to give you cash that's what I would offer you she like well hold on I don't understand you're here at this appointment to buy my house but you're not willing to give me cash I go well if $40 or $50,000 in cash would have worked you would have probably already sold the property to four people that already talked to you she like yeah well what are you going to offer me food stamps I was like no I'm not going to offer you food stamps would you take food stamps Susan says okay well what what do you I don't understand why are you here and I said I would come up to your number if you would give me the terms that I need I say this phrase probably five times a day I would give you your number just like we did over here Bobby I gave you your number did I not and you gave me the terms I needed for that phone so this is what I told Susan I said I would give you the the number you want I would come up to your number you want as long as you gave me terms that made sense and she goes what are terms and I explain terms to her the same way I explain terms to you guys that is how simple this is to explain somebody creative Finance is to explain what we just talked about with the phones so I explain that to her and she goes oh my gosh so I can get $110,000 I go yeah if you give me the number if you give me the terms I need she goes perfect 20% down 8% interest and I want to be paid off in 3 years I was like I am not your buyer and she goes well what terms would you give and I go here's the problem Susan we're trying to balance out a teeter totter and you've already asked for a really high purchase price everybody else is offering you 4050 Grand I'm offering you 110 you can't bake your cake and eat it too she goes well what would you want I go I've already given you your profit got 110 Grand lock in what I want is no down payment I want principal only and I'll take over your tenants you know why they were selling their tenants were family members and the family members were taking advantage of them and paying late every single week anybody ever do a favor for a family member and go oh my gosh no good deed goes unpunished y all know exactly what I'm talking about huh you got family you've done favors for it works out really well doesn't it okay so Susan wanted to get out of this this is what we call a tired landlord right so what happens with Susan is she goes okay well I don't I want a down payment I want to make sure that you have skin in the game I want a down payment so here's how I structured the deal check this out this is actually the promisory note it's recorded on County record does anybody see what day did I close escrow upper right it says I closed escrow on March 31st 2020 I bought the property for 110 and I gave her $5,000 I this is what I said I said I'll give you $10,000 down payment but you got to seller or finance my down payment did I just make you go like this a little bit like huh so not only is she going to sell or Finance the property but she's going to sell or finance my down payment think about that and I'm taking Mone money from the renters you freaking got it so check this out this is a promisory note recorded on County record that all of my 2300 properties are all recorded on County records so you guys can go and look them up this is what I did I said all right I'll give you $10,000 down Susan but I'll give you 5 grand in 6 months and I'll give you another five grand in six months after I've owned the property the payment I make to her is $375 a month the tenant pays me $1,650 a month after my expenses I net $1,000 a month on this property so in6 months how much money do I have to pay that down payment I have six grand I'm paying her five okay so I had the tenants pay the down payment for me now what's great about this property is it's 0% interest and how did I work out the payment with her the $375 how did I come up with the $375 right we work out purchase price down payment interest rate and length of time how did I figure out the payment with her this is how simple this business is a lot of you guys sit there yes there you go you had the answer who said that her needs do you know her needs need was they're retiring and they want to drive around the country in their RV and I said how much does it cost for you to rent an RV spot per month what do you think her answer was $375 a month and that is where my payments come from you guys are overthinking every single aspect of real estate when you have a conversation with people you figure out what their needs are and their desires are you can craft a deal that works for both parties very very easily okay we do this with single family properties we do this with I call it Micro Family anything under like 12 units I usually call Micro Family okay I don't have any of the examples for the big multif family but the biggest deal I've done is 587 units $110 million okay we have about $450 million in our portfolio I have pulled my credit zero times on any of those deals I've shown my bank balance zero times on those deals I've shown my tax history zero times on those deals so do I have a money problem in this room do I have a credit problem in this room do I have oh my gosh I need a really great W2 so I can walk down to the bank and ask their permission to buy a property problem we have a creativity problem do we not