Foreclosure Deals Coach Podcast

Unbelievable Investing Trick: How to Skip the Learning Curve for Foreclosures!

July 06, 2023 Chris Lawler Season 14 Episode 37
Foreclosure Deals Coach Podcast
Unbelievable Investing Trick: How to Skip the Learning Curve for Foreclosures!
Show Notes Transcript

On todays episode Donny talks about getting started in Foreclosure investing and how more education is not the solution.

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Welcome to the Foreclosure Deals Coach Podcast. The real estate market is shifting. The time is now. The Foreclosure Deals Coach Podcast is your home for the mindset, tactics and tools needed to break through your limiting beliefs and find freedom by investing in foreclosure deals. Don't buy a house, buy a deal. You need to get into this right now. And now your host, the Foreclosure Deals coach, Donny Corum. Hello, hello, hello and welcome back the Foreclosure Deals Coach Podcast. I am your host and foreclosure deals coach, Donny Corum. And I wanna thank you as I do every week for tuning into the Foreclosure Deals Coach Podcast to learn more about the mindset. Tactics and tools required to become a successful foreclosure investor. Guys, I wanna, again, thanks for being here. Please take a moment, subscribe to this channel. Just just slam that subscribe button here for me so you can stay informed at the Foreclosure deals market. Adapts and changes in real time right around us. And then if you wanna become part of the conversation, and I would love to have you, please go to my Facebook group fd com, join me there. You can do deal analysis in there with me. We can discuss finding deals in your local market, and every week I do a live q and a session where you can join in and talk with me, your foreclosure deals coach, to determine if you are ready to do your first deal as a foreclosure investor. Let's get right into it. Today's show, we're gonna be talking about a lot of what's happening in the market, but one of the things is people come to me thinking they need to get to learn more about foreclosure investing before they get started. Okay, and here's the thing about it. There's certain things you definitely need to know to be effective at anything. Am I right? There's certain baseline education you need to understand. Foreclosure investing is one of those things, and like most things that you were just way more suited to learn by doing it. Rather than trying to figure it out, there are so many gurus out there, so many YouTube channels just like this one aiming to educate you on the process of foreclosure investing. But guys, you get, get your mind right on this. Okay? Our mindset piece today comes from Richard Branson and he says, you don't learn to walk by following the rules. You learn by doing and by falling over. Do you remember when you learned to walk? Probably not, right? You were a little young at that point. You probably can't recall that process, but here's what I know about it. To be certain, you didn't just hop up on two feet and started running the 30 yard dash in your parents' living room, I promise that's not what happened. Okay? You got up, you wobbled a little bit, you fell back down. You got up again. You probably had some hard knocks along the way. You almost certainly injured yourself. I've got three beautiful daughters who I adore and I remember all of them as kids trying that, that wobble walk they do as babies and it's so cute to watch. Right? But we all did it. The same is completely true of any sort of investing practice. But particularly foreclosure investing. The best way to get into this is to start doing stuff. Take massive action. Okay, so just a little bit of backstory. The thing about that massive action is all of my clients come to me kind of in that wobble walk of investment, right? They don't know where to turn. They only get started and they leave. Hopefully running a marathon sprint in real estate investing. One of my recent clients pocketed a$72,000 backend spread. Now, did she have some basic skill sets before? Sure. She was a sophisticated real estate agent, great negotiator, but she hadn't done a real estate investment deal till I helped her proper up to do a deal. Cindy, I'm so proud of you. She pocketed$72,000 at our first deal. But if we go back in time before I started investing, I'll never forget meeting a guy at a real estate investment meetup so many years ago who'd been attending the real estate group for a very long time. So I'm sitting there chatting with him before. We're waiting for the speaker to come on. Like how long you been coming to this meeting? Oh, about five years. That's great. You've probably done a lot of deals by now. Well, no. I've never actually done a deal, but I'm certain this is my year. Okay. See, the the problem is, is uh, you get people who are just focused on the education. You have people in that in your life who are like degree horse, right? They get master's degrees, they get multiple college degrees, they're getting certifications. I was that for a while. My wife professionally called me a affectionately called me a certification or, because all I wanted to do was get additional education. It was when I realized, That the education nor the certification were very valuable without taking actual action. Now, I don't wanna bash other coaching groups or mentorship groups out there. I'm not in that business. But I do wanna discuss the actual money that goes into some of these groups. Like one of them I've heard of is like the, is like a woman's investing group, right? And the actual money required to get into it is like$20,000. Okay. People are literally, they've signed up over 20,000 students in their membership, and a surprisingly low percentage of them are actually getting deals. Is it because the education is bad? No. Okay. I'm gonna tell you that I've heard feedback. I think they're educating just fine. The reality is it doesn't matter how educated you are if you don't. Take massive action. Another great example is Fan Merrill of a and e. Flipped this house and I'm a huge fan of Fan and I'm a huge fan of Flip This House. Okay. But Fan now has a thing where he blows into town. He does his real estate investing seminar, he's booking out arenas. We have a spot called World Arena here in Colorado Springs, and it was packed. I went to one of his things and it was. Absolutely packed. Okay. The fee to get into fan's elite coaching is like$40,000. And I cannot tell you how many people I encountered when I was a real estate agent and then as an investor, now as a coach who spent all this money with fan and never did a deal. Okay? And finally, you know, you, you meet some coaches who are out there trying to help people and giving advice when people just don't want to do a deal cuz they feel like they need. More education. One of my recent success stories as a client, very good businessman. He knows how to conduct a business, owns a chain of gyms here in town, but he turned down the first couple of deals because he is nervous and he feels like he needs more education to do a deal well, at least he did. By working with me for a little bit of time, I understood. I understand that this is, this is a tough thing to make a big check purchase. And get this kind of thing done. But I know for absolute certain if you take that leap of faith, you're gonna do fine. And Richard was no exception. He took that first initial leap of faith. We are now under contract to buy a duplex deal that we're gonna analyze on this very show. So stay tuned. You're gonna love this one. We are affectionately calling this the Teenage Mutant Ninja Turtle House. You're gonna see why in just a minute. The the bottom line guys here on the mindset side of this, it's no good to compare yourself. Okay. I'm a man. I'm faith. I'm a believer, and I believe that people end up where they're supposed to be when you're ready and when God is ready for you to get there. Okay? But it's hard not to notice the major players out there crushing the game. I know I'm no slouch. I know after 300 flips I paid my dues. Right. I'm definitely a player, but I look out there at the heavy hitters like Aaron Bevins, who I look up to in the wholesaling space. Pace Morby, who is crushing game in the subject two world. Right. And then even some of the local people, like young people. Right. And Gabrielle Simmons, who I've had on the show, you know, maybe late twenties at at this point out there crushing it in wholesale and I'm like, Man, it's hard not to compare myself when I have a conversation with one of my good friends, Derek Medina, who owns True Invests. He's also been on this show, right? And I, I'm like, how did you get so far ahead? Well, what I'm doing is I'm comparing myself to other people there, right? The reality is, is comparison isn't gonna work. I ran into a wholesaler guy here in town, Antoine, good friend of mine, we hang out all the time. Antoine Austin. If you're watching the show, man, holler at your boy. Good. Good to see you, man. I appreciate it. This guy is out there crushing. We did some check flaunting, hang out a bar, and he's showing me some photos of some recent deals, and I was blown away. And what this, this guy is bringing down. Okay. And then you have the agents, the agents in the marketplace, uh, like Tom Lozaro, a huge r e o agent who's been on the show, Steve Pruit, who I work with to acquire deals and is helping me out to sell some of the deals we're working with right now. Now, these are great people. But they also bring me deals and I work with them so I know their level of experience. I know who they are and what they are. And it's so important that you don't let your mindset get in the way that you need to learn more to do this, right? And one of my favorite testimonial stories has got to be my little brother, Brian Corrum. He's an agent here in town, Brian, love you bro. He is out there. Crushing it. He's got this whole hometown heroes thing. I'm gonna put all the hashtags in there, but check out at Brian Corum to see his Hometown Heroes program and, and you know, people need to understand that you do need to get some education, like people going to the R E I groups and trying to figure that out. But your entire process cannot be just the education. I have spent comfortably a hundred thousand dollars on professional development and coaching in my lifetime. I am always into some kind of coaching program, okay, without exception, because I understand that by continuing to learn, I'm gonna get better. But I also encourage my clients to take massive action, like Cindy, who crushed it on that deal and made$72,000 on one deal. Okay. So that really tells you what my program can do, but it also tells me the lives I can change, the results I can get through the network that I have created. So your mindset of the week is really learn by doing. Fall over, get back up, do it again. Keep the ball moving. Do not rely on education to make decisions for you. Let experience make decisions for you. I promise you it's gonna pay off in the long term if you're really focused on taking action. All right, so that's kinda a tactic for today. It's a little bit of it. I do wanna go get some meat and potatoes in this show here. So if you're gonna take action, what you wanna do is first off, join the Foreclosure Deals Coach Group at www fd. Come, let's talk deal analysis. Let's, let's analyze some deals. Let's find some deals in your local market. Every week I go live in that Facebook group with potential clients and active clients. We discuss deals, join the group, become part of the conversation. With that, I have got to show you, I have got to show you. Our deal of the week. This deal we picked up on market was brought to me by an agent. Actually, Steve. Steve and I have been working this deal for a little bit. Okay. It's a duplex deal in kind of the eastern southeast corridor, Colorado Springs, if you will. Um, uh, you know, not that far from downtown actually. So I guess I would describe it as central. East, if you will. Um, a duplex property needs a pretty good amount of work. Let's hop on over and stream this one. I want you to see this. We are calling this the Teenage Mutant Ninja Turtle House because this, this is the lower level of the duplex. And check this out. The estimate is that this guy has 5,000 Teenage Mutant Ninja Turtle figurines. Look at, look at how far this collection goes. Right? And it's just everywhere. This, this is, I mean, I love the turtles as a kid, right? So I'm, I'm not even knocking this. I mean, it's in a logical amount of money spent on turtles. But if you're passionate about something, be passionate about it, right? More to the meet and gravy. The house needs some work. Check this out back here. It's got a bunch of, uh, you know, the kitchen's dated blue cabinets. The, the figurine collection continues, but obviously we can remove that, right? We've already run our bids and quotes on this. We have the property under contract closed at the time that you're seeing this, and by the time you see it, uh, it'll probably be closed and we'll own this. This is the second unit on a duplex, and I really wanted to see it because it's just kind of cool to see all these figurines that. Have to be pulled out of this house, but let's get into the meat and potatoes of it and talk about analyzing the actual deal here. Alright, so we're gonna hop into deal check on this particular property. Deal check. I'm an affiliate of, it's the tool I use to analyze deals in my marketplace so I can determine whether it's worth doing the deal. We are picking up this property for 270,000. And it is a little bit rough shooting straight with you, right? Generally, maybe a little bit rougher than I would normally want a first time client to do a deal on. But Richard's in good hands. I got a solid contractor that I've used for years on it, so our numbers are solid. So I believe that this is, he's gonna be okay. I normally looking for more of a lipstick on a peg remodel. Uh, but in this case, we're spending a little bit more, the rehab budget is actually 60,000, but we put a1 percent buffer. In on that in case something gotchas us right from there, we need to go look at the sales comps to determine the ARV or after repaired value of the property. So check helps us to see that. Right here by looking at 24 25 Dale. This is a single family residence. Ours is actually a duplex, so the duplex should carry a little bit more value, obviously, cuz you've got two units rather than one. But a house nearby sold for three 80, another one for 3 82. Uh, I now we get into a duplex or a little harder to find in this neighborhood, but there's a multi-family that went for 4 35, 1 that went for 4 0 5. Et cetera, et cetera. Based on that analysis, we've selected our A R V at four 20, and again, I'm being super, super conservative on this, okay? When you start talking about going to income properties, there's a whole different segment of the market that needs to move. Capital hedge funds that want to store their money. In duplexes, cash flowing properties, et cetera. So you've opened up an entirely different market when you're selling a duplex. So I'm being conservative, but our profit projections are exactly where I want them to be. Assuming we hit my conservative estimate on this property and are holding time again, we predict four months of total holding time, 30 to 44 to six weeks in rehab, another 30 days or so on the market. And then we have to work concern ourselves with the time, uh, to underwrite and close the loan for the new buyer. So usually another 30 days on that. So if we go the projected period of four months of ownership, the net profit on this is projected to be$54,000. Okay? And again, we did everything conservative on that. We overestimated on the rehab, we underestimated on the sales price. I wanna be fair, but if we only hit the fair numbers, We're gonna do extremely well on this property. Okay, so the takeaway from this is by taking action despite being afraid. Despite being worried about doing a deal. I had a client who signed up for coaching and then overnight slept on in a little bit, got a little bit nervous. Right, and decided this wasn't for them. Listen, I don't want anybody in my program who's not happy to do their first deal with a minimum profit of$25,000. If you sign up and it doesn't feel like right for you, I don't need you as a client. We'll figure something out. And we did in this case, and I will in every case. But guys, this was just fear in the end. If you don't do a deal right now, when you've got guidance, you've got deals, you've got access to capital and contractors. And agents to sell it. The only thing that's stopping you right now is you're in that wobbly walk, right? You, you are looking to learn more before you actually do and do actual activity. And although I understand it, cause I felt that way when I was first getting started, I can tell you that what I found out is by actually taking action, you're gonna get the best results that you can. That's why clients are walking out a buy program. With profits of a minimum of 25,000, but I've got recent clients who had$30,000 spreads recently, 52,000 on a deal we just got done, and the biggest deal I've done in a while was Cindy, who just blew it outta the water with a$72,000 spread. Stay tuned. We're gonna have her on the show. She's gonna discuss how it went doing a deal with me to make that kind of profit. It is possible, you just need the handholding. Right, just like the little baby learning to walk, I can help you with the hand holding, but you've gotta take the massive action. You've gotta take the first steps to get going. If you are waiting to learn more, you're in the wrong spot. You do not need to learn any more about foreclosure investing. I promise you. You know all the basics. Buy low, sell high. It ain't rocket science. Okay. What you're missing is the pieces in between that buying and selling thing, and that's the gap that I fill in for my students each and every single day. So if you wanna get started, go on out to fd coach Okay. Log in there, join my Facebook group. Let's get acclimated. Let's talk about your limiting beliefs. What's stopping you from doing your first deal? Once you feel a little bit better about that, you are gonna decide on your own. I promise to join the coaching program, and we are gonna work together to find, figure, fund, fix, and flip. Your first foreclosure deal. I guarantee the results because I know my process works, and I also know one of my very basic rules of this coaching is that I will simply not put you into a deal that I would not have done myself. So it keeps it very simple. All we're really changing is the person on title. So why do I do it? Cause I love this job. I love helping people, and I know that if you follow my process to doing deals, you're going to make money. You're gonna get addicted to flipping, you're gonna wanna do more real estate fix and flip deals. You just gotta take the first step of tightening up for coaching. Let's hop on a call if you feel like you're ready and I wanna see if you're in the right frame of mind and the right financial status to get your first deal done. I'm pretty sure you are. You know, most people who really want to do this can, it just comes down to if you're mentally ready to take those first steps literally and figuratively with that, That's kind our show up for today. We analyze the deal. We saw the Teenage Mutant Ninja, your turtle house, right? We've discussed your mindset beliefs, and I'm so happy with the rock stars that I have partnered with to start doing deals. I hope you be my next business partner. My next success story for real estate investment coaching. I'm certain I can help you to do your. With that, this is Donny Corum, your Foreclosure Deals coach. Please subscribe to the channel so you can stay updated with what's happening in the foreclosure investing market. Join the Facebook and remember now and always don't buy a house. Buy a deal. Thank you for tuning in to the Foreclosure Deals Coach Podcast. If you like what you heard here today, remember, new episodes are uploaded weekly. Subscribe wherever you listen to your podcast. Do you want more of the foreclosure deals? Coach, are you ready to learn the mindset, tactics, and tools required to be a successful real estate investor? If so, click the link below to. Schedule a one-on-one coaching Call today with Donnie Corm, the Foreclosure Deals Coach to determine if coaching is right for you. And remember, don't buy a house, buy a deal.