In this live training segment, Zach and a co‑presenter walk a group of aspiring investors through the fundamentals of creative real‑estate financing that bypasses traditional banks. They begin by gauging participants' goals—supplemental income, replacement income, home ownership, or retirement accounts—and then outline four primary deal structures: owner financing, lease‑purchase, subject‑to, and a newer “sign‑out” model. Using a whiteboard, they illustrate how a lease‑purchase gives the investor control of a property while the seller retains title and mortgage debt, and they explain the three “paydays” (up‑front deposit, ongoing cash flow, and final payoff). A real‑world example is shared where the presenters acquired an office building free‑and‑clear via a 20‑year owner‑financed deal, demonstrating the predictability of these methods when understood. Throughout, the presenters emphasize bridging the gap from a day‑job to full‑time investing, using interactive prompts, Q&A pauses, and visual aids to reinforce the concepts.
Chapters
Out of curiosity, right, we kind of boiled it down to 4 things. Before we start diving into, into the actual nuances of these creative terms, I'm gonna start bringing the whiteboard out here in a minute. Who are you, or what, what attracts you most when we talk about this? Is it number 1? Is it number 2? Is it number 3? Is it number 4? So are you interested in supplemental income? Write supplemental. If you're interested in replacement income, write replacement. If you're interested in buying your own house, buy your own house. If you're interested in IRA or Coverdell, write that. If you're interested in all of them, write that as well.
Zach, another cool thing while they're typing is this for you guys to know. We were, we were renting an office, Zach and I and Nick, and at that time I think just one, one assistant. Who's still with us. We said, okay, we're kind of— they kept going up on the rent, we got to find something. So those of you, those are the associates who have come here to our office visit. Nick and I are standing in the building right now that we bought. No surprise, free and clear building, structured owner financing, 20-year deal, no banks. So any asset class, and it's been done since the 1600s, can be done. We pointedly said we need a building and went and got it. So this is very, very predictable when you understand what you're doing with it.
As you can see, guys, this is just about bridging the gap. This is about helping you exactly where you are to where you want to be. It's, it's from 0 to 1. It's 1 to 10. It's getting you from in your current job to, you know, being a real estate investor and being able to show up to these Zoom calls without dipping and dodging your boss. Or as one of our associates who ended up retiring would say, You know, he'd be making phone calls, dodging his boss at lunchtime. Recently we had an associate, he's in aerospace. I don't think he's here today. I won't mention his name just in case his boss is on, but he's done a couple deals. He was at the last Summer of Deals. We presented one of his deals. I think he's had about 4 properties under agreement right now, but he's got 2 currently on the market and he's in aerospace and he literally drives to another parking lot in order to make phone calls so that way he can do deals because he wants to get to a point where he can replace that income. So this is really about helping you bridge that gap no matter where you are, but it's helping you get to where you want to be here today. And some of it just starts with the foundational knowledge of what is exactly buying and selling on terms, what's creative financing. And this is where we're going to start putting together the pieces. It's where we start building on the foundation here. So what is actually buying and selling on terms? So it just means no banks, no large down payments, and no ever personally signing or guaranteeing debt. Whether that originally for us was a necessity and now it's a choice. So now we just do deals this exact way. So as you evolve, you can make that choice. So there's really 3 ways in which we buy. One is owner financing. We're gonna spend a lot of time on that today. Another way is lease purchase. We spent a lot of time on that at the last event. And one, another one is subject tos. Now we, we also have a 4th one, which the community is going crazy right now with this one, one type of deal which we call the sign-out. But we'll talk about that later because that's only one payday, but a great way to get you started. So what I'm going to do here is I'm going to go ahead and kind of whiteboard this out because I noticed that if we had the ability to draw, things out that sometimes it brings the creative financing to be a little bit more simple. So just giving you guys a good understanding of what this is, though. So a lease purchase is really just control without, without ownership. It just simply means you're taking over any and all responsibilities of the property from the seller. You're going to agree upon a specific purchase price, a specific monthly payment, and a timeframe in which you need to exercise your option. So some of these— the late cash sale.
Sorry, Zach. If some of these definitions are blowing past you guys, we'll take a pause at the next section. So just jot your notes down and we'll come back to it. And please, no questions too small or too big. Just, just take them down. We want to help you.
Yeah. So what I'm going to do here, and I share with you the lease purchase agreement, so that is in our course. And just so you can get access to that at some point here in the future as well. So let's, let's kind of walk through what a lease purchase is. I'm going to go ahead and share this whiteboard. So there's really, when you go and buy a property, right? So we're just going to put here, this is you, the real estate investor, and you want to go ahead and you want to purchase this home. So when you're purchasing this property, there's really 2 pieces to the house. Right. You have ownership. And as I go through this, then we'll go ahead and we'll open it up for questions because this would be a good time to get that done. So we have ownership and then we have debt on the property. If you can just type in the chat, just make sure you're tracking with me. So if I'm just— it doesn't matter if I'm buying it creatively or if I'm buying it traditionally. There are, there are 2 pieces to a property typically. And that is ownership, who holds title, and that there is debt. Like, is there a mortgage on the property or not? Like, if there's no debt, that's cool too. Are you guys tracking with me at this point in time? Key, just do you just use a big old Y? Why? If there's an N, meaning say no, that's okay too. I just wanna, I wanna slow down because if we, if we keep it really slow at this point, During the during the event, then when we go to do deals, then it's like okay. Now I can see how the pieces come together. Okay. So when you as a real estate investor are interested, when you are interested in purchasing this property, you are going to be approaching a seller, and the seller or the the property itself is going to have somebody that has ownership of it and somebody that has a mortgage, assuming there's a mortgage on it. Or somebody has debt. Okay. So when you're doing a lease purchase deal, when you're doing a lease purchase deal, when you're buying it on— so let's just go to a lease purchase. When you're doing a lease purchase, when you are going to purchase this property, the, the control of the property, so you just take control over it with an agreement. So you control this property, but the seller, the seller is going to remain on the debt and is also going to remain on the ownership of the house. So you just have control. You have a piece of paper. Let me draw this out. So you have a piece of paper, you as a real estate investor. I have you have a contract that states that you are buying the property for a certain price, a certain monthly payment, and a certain time frame, which allows you, which allows you to control this property. But while you have control of it, the seller still has ownership. And they still are attached to the debt on the property. Please give, give me some feedback here, you guys. Is this making sense? Megan says okay. I don't know if that— I don't know if that means yes or no. Yes, yes, yes. Okay. So since that is true, right, since in a lease purchase that's true, the— what then happens is you as a real estate investor, you have control of this asset, which means that you have an agreement with the seller. So you have an agreement with a seller. Which again means that you have a certain price, a certain monthly payment, and a certain time frame. And we're going to talk about the buyers in a minute, but then you also have an agreement with a buyer because the intent is to go ahead and sell this property for a higher monthly payment, a higher— I'm sorry, a higher purchase price, a higher monthly payment. In a certain time frame. Now we're going to dive into the 3 paydays here in a minute, but know that you're going to be able to collect money up front. So you're going to get paid once up front money, or your non-refundable deposit. You're going to get your cash flow, and then when this buyer qualifies for their loan, they're going to pay you off and you're going to pay off the seller. And that's when you're going to get your third payday.
