Chris Prefontaine breaks down a formula for owner-financed deals: buy free-and-clear properties around $200,000, structure 48-month loans with roughly $1,000 monthly payments, and close four to six deals yearly to hit six figures. He covers how to source properties, negotiate with sellers motivated by price, and adjust terms like interest and down payments.
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I told people that were in my room that I would give you this formula. It's on page 18 in your book. It's just out of order. I want to give it to you now and you guys can work with me on page 18. I'll never say every time, almost every time you find an owner financing deal that is free and clear. So we're talking about a very niched list, a free and clear list. Can you buy a free and clear list or get it from software you have? Yes, very easy. Unless you're in Canada, very easy here. When you get that list and you find a home, I'm going to use round number of $200,000 or more. Most of us can find that. And you structure a term of 48 months or more. Mostly you can do that with our help. And you structure a monthly principal-only payment. I'm going to round up to $1,000. You can actually go a little lower a month. You have a 6-figure deal all prepaid days almost every single time. Now, can you go out and find 5 of these a month? No. But, but with our help, with the niche list, can you find 5 or 6 of those a year? Absolutely. Okay. Some will find more, but I'm just trying to be conservative. Will five? Let's use four. Will four owner financing deals that kick out six figures over four years make a dent in some of your plans and goals and dreams? Yeah. No. Yes. Yes. Yes. Sure. So why not make that one of your niches that you're working on? I love that niche to this day. Green cliff. My first deal ever happened to be an AO. So it wasn't— I blame it on me. I wasn't knowledgeable enough to pull it off, but that was a free and clear mailing to an out-of-state owner. Great list. Just happened to do an AO, not knowing better. Okay. Did you guys talk about this yesterday, Zach? Oh, no, I didn't say that. Yeah, in my group we did. Okay. In the fun group. Yeah. Hey, Dave, the fun group. We'll do it when we get down the hall then so we don't repeat. Uh, time-wise. Question. Why do you put interest there? Is that— Well, because there's another variable. I just knew somebody was going to say, how can we do interest? So I started getting that one. How does he do it in this one? Like, yeah, there's no wrong answer, right? But, but I'd like to— sometimes I'll say like a seesaw, get rid of this. But now you just have 3 variables: price, term, and monthly. If I can stay in that rather than just stay there, you guys have been in my room. Every— I think every call I said, our ideal seller wants the most of their property and can wait. Is it okay to assume, or am I correct in assuming that your top goal is price? I just vetted that out right away. Find out if I'm talking to the right person. But I'd like to live in here. They know it affects— but to Zach's point, they're going to bring up interest. Maybe some do. You know, I go here and the down payment. So you technically have 5 variables. Well, it brings up interest too. You can always say, look, we're building that into the price. That's why you're getting a better price right now. You know, we had a good discussion on that yesterday. Script. It's in your scripts. Most of the sellers I buy from— there's some keywords as usual in our script. Most of the sellers I buy from prefer to max out their price Versus getting a small down and they can take it over time if they bring up down. 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. Or most sellers, even better, most sellers I buy from don't need If you were in need, but now they'd rather maximize the price. You know what a lot of them need? You can say, and they help you right there. They go, no, no, I don't need it because it's like an ego thing. Bingo. Great. It works. So you brought that out. Yes. Maximize the price. Maximize the price. They don't need it. That's the key word right there because you hit their ego immediately.
