Chris Prefontaine outlines his rent-to-own investment model and the 3 Payday System, which generates cash from non-refundable deposits, monthly payments, and equity capture. About 82% of potential homebuyers can't get conventional loans, creating a market for deals that average $45k to $350k in total payouts across the three paydays.
Chapters
Yuri asked, and I hope I'm saying the name right, he asked, can you get clarification on stages? We go based on what we call the 7 steps to a take-in. When we talk about like our steps, a take-in is a property under agreement. It could be contingent or it could have a definitive close date, but that's what we call a take-in, property under agreement. A sold is of course sold, but When we sell, we're typically going to sell on rent-to-own, and we'll talk about that throughout today as well, which allows us to tap into our federally trademarked 3 Payday System. So we are going to talk about rent-to-own programs. We are going to talk about our 3 Payday System as well. We certainly can exit different ways, but know that when we're talking about our 3 Payday System, we are talking about exiting on rent-to-own here. And here's why. Or really what it is, it's just a program that helps people go from not bankable to bankable. Just time in order to qualify for a loan. And this is why we focus on that. Roughly 82% of the market cannot walk into a bank and get a loan. If you are interested in creating really a business that serves underserved communities, and when I say that, I mean like It's 82% of the market that can't qualify for a bank loan. Means every time that we put a market, a property on the rent-to-own market, that we're tapping into 4 times, uh, as much, uh, buyers out there. This is how we're able to create these profits. This is how we're really able to really tap into this, uh, 3 Payday System.
Zach, everyone asks on that stat, like, literally every event. So let me bring that up. Well, where'd you get the number? Talk to any mortgage broker who does a lot of volume. I'm not talking writes three loans a year. I'm talking fifty, preferably close to a hundred deal. Like they're a producer. That's where that number came from. Rafael, I don't know if he's on the event today, but he's in our community. He I think he's an immersion member, and he said, "Yeah, I you know out of a hundred apps, I'll get maybe seventeen or eighteen tops twenty people that qualify today." Doesn't mean they're all longer term rent home people. Some could need help in three months, but. Today, that's a rough number from top producers.
And here's just the other thing I'm gonna, uh, hit on here as we roll toward the end of this, uh, first session. This is what we're gonna be talking about, our federally trademarked 3 payday system, so you can start tapping into cash now, cash monthly, and backend profits. So when we say payday 1, we're talking about the non-refundable deposit that we've acquired from our buyer. When we say payday 2, we're talking about the monthly cash flow. And then when we say payday 3, we're talking about the equity in the deal that's received at the end of, um, at the end of the term. And these are just our numbers, full disclosure. Yours are gonna— yours may be different. We average anywhere from $45,000 all 3 paydays all the way to $350,000, uh, in our community right now as well. We'll go over lots and lots of case studies here today. We'll whiteboard out a bunch of deals. But this is what we mean when we talk about 3 paydays here as well.
