Foreclosure Deals Coach Podcast

Overcoming Foreclosure Investment Fears | Step-by-Step Guide

October 26, 2023 Chris Lawler Season 15 Episode 9
Foreclosure Deals Coach Podcast
Overcoming Foreclosure Investment Fears | Step-by-Step Guide
Show Notes Transcript

Has the thought of investing in foreclosures intimidated you? You're not alone. Dive into this video where we demystify foreclosure investing and guide you step-by-step on how to overcome common fears. With the right knowledge and mindset, you'll be ready to grab those golden opportunities in no time. Don't let fear dictate your financial future. Subscribe for more real estate insights!

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Are you afraid to start investing in foreclosures? Maybe it should be. Maybe it shouldn't be, but we're gonna find out on this episode. Stay tuned. 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 full closure deals. Don't buy a house you need. Get into this right now and now your host, the foreclosure deals coach, Donnie Coram hello, and welcome back to the foreclosure deals coach podcast. I am your host and foreclosure deals coach, Donnie Coram. And on today's episode, we are going to jump in and discuss whether or not you should be afraid to invest in foreclosures before we get going. And as always, we got to get your mind a little bit of mindset shift today. We've got Nelson Mandela, the former president of South Africa, letting us know that he learned. The quote here is I learned that courage was not the absence of fear, but the triumph over it. The brave man is not he was not feel afraid, but he who conquers that fear. Listen guys, being afraid of any investment vehicle is perfectly normal. I can think back to years ago when a buddy of mine encouraged me to open an E Trade account and said, throw a couple of grand in the account to invest in stocks and all of my Biological synapses. We're saying you're just going to lose this money, right? This is 2, 000. You're better just flushing it down the drain. Nothing about this process. It'd be easier just to give it to the market. Was I right? Or was I wrong? Listen at the time, based on my knowledge set, the market makes a ton of money on taking advantage of people who are not in the know. There's a bunch of head fakes, the moves the market makes. And I'll be frank with you and tell you it's not completely different. In the real estate investing world. It's just much slower and much more expensive. So on this show, we're going to talk about whether or not foreclosure investing is the right fit for you starting out of the gate. If you're afraid to do this, you shouldn't be doing it alone. Okay, the reality of any investment vehicle is any sort of experience or background or help is going to make you feel more comfortable with the trade. I can't tell you how many people come to me as new investors who are terrified of doing the deal and I say, Until you are not afraid of doing this, you are bringing in a negative energy into this deal, which will almost certainly ensure that you're going to lose money. I have met countless investors who started their first deal without coaching, without mentorship, without background, who lost money. And more statistics show that up to 85 percent of people who do their first investment deal lose money on the deal. I can't make these stats up. I'm just telling you what's out there, but why? And if it is so many people are losing money and it's so likely they're going to lose money, why would anybody risk their capital to do this? We got to start by talking about the upside before we go into all the things that could go wrong with foreclosure investing, and the upside is with consistency, you can buy deals from motivated sellers. In this case, banks, lending institutions who want to sell the property at a significant discount. Because they want to offload it. If you buy the property effectively, remodel it to market, you are going to make a profit on the deal. As long as you've done the analysis, this is the obvious upside of foreclosure flipping. You're buying below market from a seller. Who's motivated to sell it below market because they want it off their books. You understand your numbers because you've done your homework and know how to properly analyze the deal. And if you're combining that knowledge with the seller's motivation, you really can't lose money in this. formula. I'm not saying it never happens. I'm saying proper analysis has kept me to a loss ratio of below 2%. Okay. In the amount of deals I do, I can count on just over one hand, how many deals I've lost money on. Because once you understand how to properly do an evaluation on a deal, you don't have a ton to worry about. Okay. That income. If properly invested turns into other passive income. I can tell you right now that what I teach is that flipping anything consistently day trading the market, whether it's foreclosure investment, real estate stocks is not a long term strategy for getting wealthy. It produces an income. And if you take that income and you invest it into other wealth building strategies, you can rapidly accelerate your ability to build wealth and passive income by taking the. Active approach to real estate investing. A lot of people buy a deal or even not a deal. They keep it as a rental over 20 years. And unquestionably, when you combine what they made in the little amount of rental income and what they've made in appreciation and mortgage pay down, they have definitely gotten wealthy over the longterm, but we're talking rental portfolios 10. 20, even 30 years. I don't know about you, but we're not getting any younger. So if you want to accelerate that process, you can take the income you generate from foreclosure flipping and accelerate your wealth building by buying deals below market. Taking that money to either supplement your life so you can invest more of your income from your day job or taking that money and reinvesting in other income strategies or wealth building strategies that will accelerate your ability. If you have a day job or even a small business, your income is to some degree capped as you scale that day job or build that small business. Whereas foreclosure investing is unlimited. You can do as many deals as you can find. Figure fund, fix and flip for most of my clients. That means we're targeting three to four deals per year at an average profit of 25, 000 per deal. That puts a hundred grand a year in your pocket. How more effective would you be investing? If you knew, in addition to your day job income, you were bringing in an extra a hundred grand a year. So why can't people scale this business? What are they afraid of and scaling it? Time foreclosure flipping when done by yourself, remember. Finding the deal alone is a full time job, right? It's not scary per se, but it is a full time job because you've got to be out there looking at deals all the time. My system eliminates that for you by finding the deals for my clientele, but that takes a lot of time. And if you're already investing your time in whatever you do for your normal day job income, that becomes a challenge. Okay. I am not at. All advising. And if you are afraid of investing, you should definitely be afraid of investing full time when you're first getting started out, because now you're going to trade based on that fear. If you've got to pay your mortgage, pay your rent, feed your family that month, you're going to operate from fear. And that's going to prevent you from making the right decision. on that flip, you're going to sell it sooner and for less money because your motivation is too high. And in that situation, you're gonna find yourself making less on those trades while stressing yourself out. So if you're trying to do this full time, right out of the gate, before you've gotten a lot of experience, that is a valid reason to be afraid of foreclosure investing. That being said, if you've got a source of income from your day job, you've got nothing to fear in foreclosure investing, because of what we talked about earlier. Proper analysis, proper acquisition leads to predictable, consistent profit, which is going to put money in your bank account consistently that you can invest in other things that are not quite as active. Okay. So getting back to it here, should you be afraid to invest in foreclosures? It really depends on where you are. Financially, I want to talk to you on a coaching call where we can discuss if foreclosure investing is the right fit for you right now in your current scenario. But for a lot of people, they're just looking for education at this phase. So to help you with that education, I have developed a course, the five F's of foreclosure investment system. I'm not going to turn this into a sales pitch, but I'm letting you know now that for a very limited time and in markets that we're trying to push into right now, we're going to be giving this course away at a. 1, 000 value. I'm going to give you this course for absolutely free. When you do a coaching call with me to determine if Kurt Colopoli investing is right for you. I'm not going to do it forever. It's a limited time opportunity, but if you're just on the quest for information, this might be a great way to determine it. I can promise you this people who come to me who are afraid to invest and are explained how I'm going to hold your hand and work with you through that first deal, what we found is that education was not the problem. Okay. The problem was that people wanted the handholding. They wanted the support. So through myself and my extensive team of foreclosure, investing experts, we walk you through the entire process of finding a deal, analyzing that deal, funding that deal with my heart and private money lenders, fixing that deal using my contractors and flipping the deal, using my agent. For a guaranteed minimum profit of 25, 000. It just doesn't get any simpler than that. And really at that point, as spooked out as you might be, you really have nothing to fear if you're employing the system and strategies that I use. However, if you're out there on your own and you just want the education, that is one option. Guys, the bottom line is anything done from fear is not going to work out as intended. Okay. How do we know that to be fat? Look at how many things have gone wrong in life when we focus on what could go wrong, right? It's amazing where your head goes. I remember one of the things I was learning when I was riding a bike is that you learn pretty early on that you're going to end up going wherever your head is focused on at the moment. So if you're looking at that curb, you don't want to hit, guess what's going to happen. You're going to run into the car, right? Exactly the same thing in real estate investing. If your entire focus on what can go wrong with the deal, you're going to trade with that mindset and you have every reason to be afraid. If you don't have anybody in your corner going, you're going to be okay. We can get through this. Nothing can be truer of being afraid of a deal. Than my very first deal, and I do go over it in great detail on my first podcast episode. But to give you a shortened version of the story I'm afraid of very little. Okay. So when I was working in the tech sector of the world and a business partner there decided we wanted to do a deal together, he had the fear, I had the push, okay, we took that push, we got a deal done, knowing absolutely nothing about the deal, every mistake it could possibly make. Number one, we bought an old style turn of the century, Victorian home in downtown Colorado Springs. That's a mistake, especially when you're getting started, because you should be very fearful of what's behind the walls on a house built in 1900s. Okay. You could have plumbing issues, electrical issues, the long list of. Clay pipes, the list of things that could go wrong on a house built in 1900 is endless. That's a very valid reason to be afraid of buying a deal like that. Okay. But despite that fear, we burst through that, bought the deal. Then we went to the property and after what I thought was a discussion about his expertise in construction, he revealed to me that his father was an expert in construction and he himself knew absolutely nothing about remodeling a house. Man, was I terrified at that point? I thought I was driving myself and now my business partner into bankruptcy. We were standing around arguing about what we were going to fix and then realize we knew nothing about fixing stuff. Now in today's era of YouTube, we can, you just hop on and find out a fix. Anything. It's amazing. We can just Google teach me how to drywall. And you can get a general basic understanding of pretty much anything. But back then you got to remember, this is like 2008, 2009. Okay. There wasn't that much access to data. If you didn't know how to do stuff, you're going to have to train on how to do it. And I had a day job, bro. Like it wasn't like I could just go out and learn all the. I'm becoming an asbestos removal guy inside of a few weeks. Time was not on our side. That was a very valid reason to be afraid. However, we pushed through the fear and I met my guru and mentor who taught me sell the property as a fixer upper to somebody else who wants to take on the work. And I took this distressed property and I sold it. Bought it for 205, sold it for 265 and managed to pocket a profit of 17, 846. 32. But who's counting? Hey, never forget your first one, right? That's what it comes down to, right? Got the deal done, made a profit and the bug bit me because I realized that if I could do it wrong and make a profit, imagine what would happen if I pushed through the fear again and did it right. Okay. And that's where, why I'm sitting before you today and presenting this opportunity to you as a foreclosure investor, it is logical to be afraid of certain things, but if you know your three numbers, your acquisition price, your rehab price, and your sales price, you have very little to be afraid of. Is this to say that nothing goes wrong? Absolutely not. This is investing. All investing involves some degree of risk. We are certainly speculating that the market is going to hold where it is right now. And we're not going to go into a major crisis. But we're not speculating on the sale price of the property. We know, based on today's numbers, what it's going to sell for. We have a general idea on what the rehab costs are going to be. Which is a skill set you develop over time. And even when you get it, you're going to find gotchas. You're going to find out the furnace that looked fine has a cracked heat exchanger. I don't even know what a heat exchanger is. Okay. But I do know that it's cost me a couple of grand several times on properties that I wasn't budgeting to do any major furnace repairs. Much less replace the furnace of certain deals. Okay. But what's not going to be a shock to you is a surprise foundation issue. Okay. If a house has foundation problems, we are determining that during our due diligence period. We're doing an inspection on a lot of the properties. We're checking them out. I can eyeball a lot of them, but we do a lot of due diligence. We're researching a property, not really. Cause we're trying to back out of the deal, but because we want to make sure we're buying it accurately based on the rehab that we needed. So with all that due diligence, there's not much to be afraid of because I know. Within a 10 percent wiggle factor, what the rehab is going to be. The last number is the acquisition price. Are we buying it right? Based on that rehab number and based on the after repair value. If those numbers line up, the real question is what are you afraid of? And for a lot of people, and this is going to shock you a little bit, but the fear really comes down to a fear of success. What if this works? What if I start making a bunch of money doing foreclosure flips, and now I'm responsible for that. You're listening to this right now going, I'm not afraid of making a bunch of money. Listen, a lot of people are, and I hope that you're not one of them. But I can determine on coaching calls very often when I'm talking to them, that people fear success as much, if not more than they fear failure in a lot of cases. What if this works and you're not responsible to have this side hustle? Which does add a little bit of stress to your life. It does require some financial requirements for a lot of people. It's a transition to what they have in the stock market, into the real estate market. And, over the past few years, the stock market's returns have been relatively well, but there are no comparison at all to what you can make on a consistent foreclosure flipping business, right? If you're investing. 50 grand into a deal that turns off 25, 000 after getting your 50 grand back. That's a 50 percent return on the deal. And we can generally do three to four deals a year with proper momentum. So we're talking about a 50 percent return on your investment times three or four deals. Which is nearly 200 percent annualized return. That's a pretty good return on investment. But when you hear numbers like that, compared to what you make in the stock market at eight to 10 percent returns is considered very good for a long term stock market performance, making a 200 percent return is a little scary. Okay. So the things you need to be afraid of are, do you have the right mindset to bring to the deal? Do you understand how your brain is going to operate during the deal? And are you bringing fear of things going wrong into the deal? A lot of people I meet are on their second deal and their first deal didn't go so well. So they're bringing in a lot of that fear from the first deal into the second deal. And when I'm coaching them through. Is whatever happened positive, negative, or otherwise, you've got to leave that in the past because the current deal that you're doing, and I often refer to them as trades because it's synonymous with how you trade in the stock market, but this trade that you're working on cannot at all be dependent on the trade you did last time because they have nothing to do with each other. Okay, you've got to go in and run your numbers again on this deal and not bring any of the negative emotion from the previous deal into this deal. And if you can't do that, you have a lot of reason to be afraid of investing in foreclosures, because if you're bringing in negative energy, you're going to find yourself repeating the same pattern, which is going to lead to you not making money on the second deal, which is going to lead to you not making money on the third deal and just working yourself down that chain. Whereas if you're willing to shake that loose, and a lot of times it requires coaching. Not a coaching sales pitch, but the bottom line for me is after really screwing that first deal up and still managing to eke out a profit, I went into my second deal looking for mentorship, looking for coaching on the second deal so I didn't repeat the mistakes I made in the past. And when I met my coach, he really changed a lot of my mindset around. So the second deal I made a profit. Honestly, not as high as the first profit, right? And even though I did more things I bought well, I bought the property wrong. Okay. So I tripped, fell and landed on the first deal and managed to make a pretty good profit. Not the 25 grand I target on a deal right now, but on the second deal, I made a little bit less by the third dealers consistently hitting my desired 20 to 25 grand. And I've been consistently hitting that ever since 300 plus deals later. Okay. And I can help you to do the same if you're looking for that support, but you really got to determine if you're afraid, that's a mindset problem. And we could talk all day about tactics or action items you need to take. We could talk all day about the tools you need to get, whether it's privy to find deals, deal check to analyze deals, et cetera. But until you've got your mindset properly dialed. And none of the other pieces are going to work properly. And you're going to find yourself looping around and making the same mistakes over and over again. So to really bridge that gap, I created a coaching product that's designed us to find out where you are in your mindset, because that's the one piece that no amount of training can overcome. When we know where you are, we then plug you going to help you to find. Figure fund fix and flip as many deals as you can handle mentally and financially. So you can find the wealth building strategy that works for you in the longterm to do this. And I'm saying, find the wealth building strategy. Cause a lot of people do their first deal because it's a requirement of my coaching program. You're not getting out of my coaching program until you've done at least one deal. That's just the thing. I don't let people leave. Okay. You've got to make 25 grand on a deal or you're not going anywhere, but after you've done that. First deal. A lot of people find that flipping foreclosures is not for them, but they found that out in a profitable sense, instead of losing money to find out they made money to find out. This was not a good fit. Isn't that a better idea than spending 10 years going to medical school to get your doctorate, just to turn, just to find out that you're afraid of blood. That's a bad way to go out, man. In this program, we're figuring out what your tolerances are for trading in stock and making sure that this is the right fit for you. And if it's not the right fit, we're going to look for better, greener pastors and see what investment strategy might work for you. But everybody, my coaching program starts with a fix and flip to make 25, 000. So we can determine what strategy is going to work for you in the long term. And then we go from there. Okay. We talk a lot about the fix and flip side. We talk a lot about coaching, but guys, the real secret sauce on this is the handholding to get you through your first deal. So you know exactly how to get to the second deal, third deal profitably and find out what the best strategy is for you for the longterm. If you're interested for a very limited time, I'm going to be giving my educational course. We're talking over 30 videos away that you're going to be able to walk through my entire five F strategy, just for hopping on a coaching call with me and determining if coaching is the right thing for you. Fit for you. I'm going to give that away. It's a thousand dollar value. Click the link below to register for that. Get that course dialed through the course, whether you sign up for coaching or not, you're going to leave way more educated about the possibilities of real estate investing, and we'll determine together whether coaching is the right fit and we should get started doing your first deal with the coaching program. And if we determine that's not the case, you keep the course, the access to the course with my compliments. For signing up and I really appreciate you doing that. So please click the link below to do that. That's our show for today, guys. Should you be afraid to invest in foreclosures? I say, no, I think if you're doing the right things, you've got nothing to fear, but fear itself, certainly you've heard that saying, but overcoming that fear is the true triumph of success and your first step in overcoming the. Fear is to hop on a call with me and let's determine if this is the right fit for you. Now, with that, this is Donnie Coram, your foreclosure deals coach. Thanking you so much for tuning in each and every single week to the foreclosure deals, coach podcast, and reminding you now and always don't buy a house. Buy a deal. Thank you for tuning into 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. Schedule a one on one coaching call today with Donnie Gorham, the Foreclosure Deals Coach, to determine if coaching is right for you. And remember, don't buy a house, buy a deal.