Chris Prefontaine explains how to structure real estate deals that survive market crashes. His contracts skip appraisal contingencies so sellers can't force price cuts, and he builds in exit strategies like assigning deals back to the seller or renegotiating terms. The focus is protecting deals rather than timing the market.
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Q&A Thursday. Here's a question that comes up any time there's uncertainty. What happens if the real estate market crashes again like 2008? Fair question. I hear it a lot. And if you're not asking it, maybe you should be, because most investors never think about the downside. You're going to see how we not only think about it, but we structure for it. They only think about the deal working. So let's walk through this the right way. Okay. I did an entire segment on this, by the way, on my podcast. As far as statistically, why it's entirely different now, as well as some other key factors that you're going to want to see and hear. Be sure to watch that or listen to it. It's episode number 558 on the Smart Real Estate Coach podcast. Let's address specifically our terms deals, both the buyer and the seller side. First, on the buyer side, if the market drops and the appraisal doesn't work anymore, keeping in mind that all our agreements with the buyers have no mention whatsoever of a contingency for the appraisal. Okay. Super important for you to know that. So the buyer has 3 options. They can extend and wait for the market to climb back legit. In the meantime, they can work up their down payment, right? That actually would help them and they could continue renting during that process or they could bring some more cash to the table. Or third, what? They can walk away. That's it. And here's the key. You're personally not obligated to change your price. Not at all. Again, it's not a contingency. Now let's go to the seller side of things because This is where people get a bit nervous. What if I'm stuck? Well, you're not ever because our agreements are structured properly. It's important for you to know this. You always have flexibility because of that. All our agreements, and frankly, our entire creative model is built on defense first. Now, what do I mean by that? It means it's different from the most models that I was used to and most models out there now that are built on offense. They rely on the market to cooperate. Our deals thrive in any market. Side note, you have access to all our custom agreements if you own the 3 Payday System Mastery Course. And by the way, no one has our agreements. No one. No one has them. So if you don't have that course, here, I'll give it to you for more detail. Watch my workshop. It's free and I go over the details. Go through that first. Go to smartrealestatecoach.com/mastersyoutube. Now, If you're ready to just dive in, great. Go to smartrealestatecoach.com/qls. Use the coupon code TUBE. T-U-B-E. All right. Back to your options. I want to make sure you're equipped. You can assign the deal back to the seller as the investor. You can renegotiate with the seller because keep in mind, you're never signed personally on anything. So therefore you have the leverage. Or what else can you do? You can exit clean. With a conventional sale and cash out your seller if you have no time left to extend the buyer and/or the seller won't extend you. By the way, we've done all of those options I mentioned and variations of each, hundreds of them. All kinds of pivots are available when you're doing operating on our, you know, our methods. Here's the biggest point. This isn't about predicting the market. Not at all. It's about structuring deals that can survive the market. Most of the time thrive in any market. I shouldn't have even said survive. Because if your deal only works in a perfect market, that's what I was used to before the crash. You don't have a deal, you have a gamble. Not sure where to get started? Go to smartrealestatecoach.com/getgoing for free books, strategy calls, and a whole bunch more. We're going to help you get going the wicked smart way. We've been after this for over a decade doing exactly that. Any moron can build a business when the market's in their favor. So don't focus on the timing of the market. Don't. Let's get you out of that. Focus on instead protecting the deal and mastering creative real estate. Real estate on your terms. Remember, that's the title of my book, Your Terms. That's how you stay in the game and that's how you stay in the game long term. That's how you stack together 3 paydays per deal and that's how you change your life. We're here to help. I'll see you in the next Q&A Thursday. Make sure you subscribe here so you get all the Q&A Thursdays, Motivational Mondays, in Deal Structure Sundays.
