Weekly Wisdom #272 - Life Lesson and HUD Property Profits

Hey, everybody. Welcome back to the Weekly Wisdom. I'm here with my good friend and real estate investor Matt Larson. Everybody, most of you, if you're on the DG family, you know who Matt is. Matt was a machine shop worker, got my book, transformed his life with real estate, done thousands of deals, and we became great friends. And now he literally shares my office with me. He's right here. His office is here. My office is right there. It's pretty great. We do real estate every day. He manages most of my real estate, so pretty cool. So he happened to be in the office today. I said, I'm doing a Weekly Wisdom. Sit down me and let's share. I don't even know what he's going to share. I just said share something extremely powerful. So I hope you got something in mind. And what I thought about today is I want to share something that's going on between your ears, thought wise. And then Matt can share a secret or a strategy on real estate. So I think I may have mentioned this a couple weeks ago, but I've become really good friends with Tony Robbins. Love the guy, think he's a wonderful human being. He's got just such great things to empower yourself within. A lot of people that see him from the outside think he's a great motivator, and it's less a motivation and more of triggering inner inspiration so you can feel yourself. Right. He's not giving you the motivation. You're finding it internally. And one of the things he said, I was out in Chicago with him and then I was in Palm Springs. Palm Springs. And he said, what if there was a lot. He built a lot up to this, but it really stuck with me. What if life didn't happen to us? What if life happened for us? And I want to leave you with that this week. Think about that. It had a dramatic impact on my life. And I practice gratitude every day. You watch these blogs for over five years now. This is what I do. And it still had a massive impact on me because so many times in life we're looking at our past and all the things that I know so many of you have had tough childhoods or, you know, went through foreclosure or divorce or a loss of a loved one or you're sick right now. And all the things that go on in life, bad relationships, people take advantage of you, somebody steals money from you. And all these things we have so many times in life, you're like, in your head, you're like, I can't believe this happens. To me. But what if it's part of something bigger? What if this happened for us so you could be the exact person in the exact spot that you are right now. And when I thought about that, I thought about some of the things that I thought were my most challenging in my childhood. You know, we all have our own stuff, right? I have my own. And when I look back at that, I say, looking at it through those glasses, what if that happened for me to become the man I am, to become an inspiration to go from broke to being a great real estate educator, to go into somebody that knows how to speak on camera, to deliver my message, to get obsessed with my education skills. So they're not just this big overview of real estate, but they're the nuggets that actually transform your life. You know, we were talking about it yesterday morning at breakfast. I mean, how many people. You're just one example of someone that was stressed out doing 70 hours a week as a machine shop worker, knew there was more. You didn't know what. But look at your life. Right? We talked about that. Look where you went. What if you stayed on that path? We talked about it at breakfast. I said, you would have been the highest level possible, probably in that company or another one. But still, would that have given you the freedom you have now? Right. Go ahead.

I think about that all the time. I always tell you, I look back, I'm so thankful that I chose that other path because I can't imagine what it would be like to still be waking up every morning in that situation.

Yeah. And then I think about it and so my circumstances in my life that a lot of times I used to look back and say, I can't believe that happened. Now I look at it and go, thank God that happened for me because it made me the man I am. It made me not give up on anything. It made me when everybody told me, you're crazy to write books, crazy to go on tv, crazy. You're never going to do education, you're never going to be in real estate. You need money to do that. All these things. I was in Special Reading. Everybody said, don't write a book to be a New York Times best selling author, it's impossible. You got to be a writer, you got to go to school for it. Now I have multiple New York Times best sellers. So what I realized is, no matter how hard things are, what's going on in your life, what if it was all designed for us to be exactly the people we are? That's what I'd love to leave you with this week to really think about that. And instead of saying, I can't believe that person did that to me in my past, say, wow, thankfully that person did that because it made me who I am today. It actually gets rid of all the people in your life that you have some kind of ill thoughts for. Man, it just melts that away because now I'm grateful for all of it. Okay, that's my message for in between here. What do you got for real estate?

Well, I was thinking about, we talk about maybe HUD deals.

Okay.

HUD deals are listed on the MLS most of the time. However, some HUD deals are not listed on the MLS. They're listed on hud.gov I mean, all HUD deals are listed on hud.gov but a lot of times what happens is you'll see a, a difference. You'll see 99% of them listed with a realtor. But there's always that couple that you see that never go with a realtor. So that creates an opportunity. If you go to hud.gov you can have your realtor bid on them for you and maybe get a chance to see some houses that other people don't see. The other thing I like about HUD deals is with hud, they don't do highest and best. You hear a lot of people right now talking about, you know, every time I get in a situation, it's in highest, best situation. Well, HUD doesn't do that. They don't wait for, you know, 30 offers or 50 offers to come in before they counter. They take the first acceptable offer. So if you have a deal come through, if you make an offer on one of the deals and it's acceptable and HUD generally speaking, will accept for sure. They'll accept a 92% of asking price if you're the only offer in at that time. So, you know, obviously we buy much lower than 92% a lot of times. But sometimes with HUD, HUD generally makes their list price is a little less than a lot of the other foreclosures companies as well, such as, you know, your local bank trying to squeeze as much as they can out of it or you know, say a Bank of America deal or a Wells Fargo or something like that, HUD generally is a little bit less price, which makes, you know, potentially, you know, getting a 10 or 20% discount a really good deal. So I like the fact that when a HUD deal. So the kicker is this, when a HUD gets listed, they generally give A specific time frame for owner occupied only. So say for the first 15 days or for the first 30 days, unless you're planning on living in that property, you're not allowed to bid, however. So there's two tricks to it. One is it's not always consistent. Sometimes even though if it's an area that they'll do 15 days, after five days, they switch it and they say, hey, we're not waiting any longer. Now we're opening up to an investor. So don't always count on waiting it for 15 days. If you're on top of it and your realtor is really watching, the minute that that goes investor status, that's when you want to make an offer. For example, I've taught my Realtors, they literally will make an offer at midnight.

So if it switches from owner occupied to investor, they're there at midnight, saw that, the status change, and they're the first one to make an offer. And if that offer is acceptable, you don't have to care if 200 other offers come in. It doesn't matter. You were the first acceptable offer. They're not taking, you know, highest and best.

Exactly. So that's an advantage if you're just fast in the draw. Even if you know the guy down the street could have millions of dollars, but your offer went in first and you got the deal. The other thing I like about hud, there's no deed restriction. So if you do, let's say you're going to wholesale the deal and you want to double close it, well, you can double close that deal without any worry on deed restrictions. So that's another little advantage I like about HUDs. But I've been really focusing on getting a lot of HUDS right now because they seem to be abundant and the HUD deals are changing investor status sooner than I've ever seen. So it's a nice little advantage and it's something that everybody can take advantage of.

I think that was worth your time. Don't you think, Matt? Thanks for doing that, brother. Okay, guys, that's our weekly wisdom. Hey, if you're watching us on itunes or you're watching us on YouTube or of course@dingrazziosi.com I want to make sure you have the opportunity, wisdom and capabilities and direction in your hands. You know, I'm a multiple New York Times best selling author. It's not some special report. Go to deansfreebook.com deansfreebook.com and get my latest book, 30 Days to Real Estate Cash for free. No catch. Just go to deansfreebook.com you can grab it, start using it. In fact, Matt has a lot of pieces in that book. As I was writing, I leaned on Matt because the fortunate part is everything I come up with, I give to this guy. He uses the heck out of it, improves it, gives it back to me, and a lot of those things end up in my book. So go grab my book. I hope you have an amazing week. Tune in and we'll see you same time, same place next week. Take care.