Seller financed Apartments $0 out of Pocket

All right, hello and welcome to Multifamily Strategy Live. I'm Christian Osgood, your channel host, coming to you live here early. Uh, we usually do this at 5. However, today we're doing a very special episode. We're going to be going over exactly, well, a lot of the stuff that we used to cover on the webinar. However, I've been asked many times like, oh, why don't you give some of this stuff on the YouTube Live? And we came to a realization after one year of running a webinar and thousands and thousands of people going through this awesome thing I keep getting the comments in the beginning of all the webinars of, hey Christian, when you do this, uh, we don't believe you're live. And I am live. And so I decided, you know what, hard to fake it here on YouTube. So I'm going to share with you guys a few things today. I'm going to share with you creative finance. I'm going to share with you how to get paid to buy real estate that pays you forever. I'm going to go through some of the different types of money and capital raised so you can line up the creative finance, close deals zero down with bank finance, use creative equity, and again, get paid to buy deals that pay you forever. So I'm going to share some of this with you live today. Uh, super, super excited to get started. So I'm going to get my team to, uh, get me one thing over here. But this is actually live and is actually going to be interactive. So I'm extremely excited to start sharing this with everyone. So, uh, as we go, if you have questions, post them in the chat. At the end of this, we will do a Q&A. So as we go, You guys ask questions, I'll put them up on the screen. And now you know it's me interacting with you. This is actually a live event. I usually go at 5 PM. Here is our goal. I'm going to do different topics every single week and I'm going to answer questions every single week. I want to— this is, this is like our test run, but I want to make this one of the largest lives online. We're going to talk about creative finance. We're going to talk about running real estate. But if you don't know me, I'm going to briefly share who I am. But super excited to see everyone here and we should get some more people as we start rolling, most likely. So very excited to see everyone here and let's get rocking. Do a quick screen share here and we're off to the races. By the way, if you guys are new to the channel, it's like one of your first times seeing this. Hi, I'm Christian Osgood, Multifamily Strategy. I actually started this whole entire adventure because I wanted to retire my wife. She got injured at work. I had this dream of retiring myself in real estate one day, making work optional for her. She was a schoolteacher. When we came to the conclusion— this was at the end of 2020. Hey Troy, good to see you, man. When we came to 2020 and everything shut down, so this is like 2019, 2020, the whole world shuts down. I was an outside sales rep, so my job went from being awesome to kind of sucking. I worked for the CoStar Group for a long time. They're Apartments.com, Homes.com. I loved working for that group. However, my job went from being awesome to sucking. My wife got injured as soon as we got back from 2020. My wife gets injured at work. She gets pushed on the playground. She breaks her lower, breaks her lower back. And I'm like, okay, we got to get her out of here. I got to go figure out a whole bunch of stuff, and I need to do it quickly. At this point, I met someone named Cody Davis, and Cody Davis was a 20-year-old who had 30 units. He's done 3 seller finance transactions. I'm like, how are you buying all this real estate? He didn't go to college. He didn't have a job. I since then have met a bunch of other young guys who never got jobs, never went to college, were super successful in this. So, uh, what I learned is I'm missing something. Like, other people are succeeding here. I believe that I am capable of succeeding. But I bought into the Dave Ramsey 9 to 5, get a job, scale, scale, scale, scale, scale, uh, until you are retired. So here's what we're going to do today. I want to try to speedrun everyone to get you up to speed. Now each week we're going to go over specific topics. So every Wednesday we're going to get very deep, we're going to get very tactical. You guys ask as many questions as you want. But as we go through this, I want to make sure that I am doing the best that I can to make sure we're all going out of the same playbook. So I'm going to go ahead and share this presentation with you guys. This is an abridged version of what we were teaching on the webinar. But I've tried to package this as conveniently as possible. And as always, this is live. There's nothing to sell you on the live. There's no pitch. There's no hidden information. There's no like, "Oh, but wait, if you only joined the group and give—" There's nothing. I'm going to share with you the knowledge, and we're going to share the knowledge alone. If you want to do more cool stuff for free, then just watch a live. We have a school community on Skool, S-K-O-O-L. You can check out that link, join the school community. We have free calculators, thousands and thousands of investors all doing the same thing. Join that. That's Multifamily Strategy on Skool, S-K-O-O-L. Uh, completely free. Highly recommend. All right, let's get rocking. All right, so the goal here is that I give you guys the knowledge, regardless of how much money you have right now, to buy your next apartment complex in 6 months or less. That is the clear target that I have for everyone, and it does take less than 6 months. And you can buy— and I'm talking apartments, I mean 5 units and up, ideally 10 to 35 multifamily units. That's kind of the sweet spot where we see the most deals. So before I dive into this, I actually, I'm always curious where everyone's joining from. So I know Troy's here in Washington. This is our beta test for our live series. So I don't know how many people are actually going to be attending today, but as, as you join here, let me know where you guys are joining in the chat. I always appreciate that. So just get into the chat feature, you know, hey, I'm from Austin, Scottsdale, whatever. Uh, myself, I'm from Seattle, Washington. I started a multi-hundred unit portfolio and a property management company in Washington State. Zero dollars out of pocket like I'm going to show you here. And then I moved to Dallas, Texas, where today I have over 300 units. We're expanding extremely rapidly throughout Texas. I also started a property management company down here. So this is literally all I do 24/7. We buy the properties, we run the properties, and I came down here and I still today buy more real estate than the money that I have. So from start to finish, the strategies I'm showing you today are still the strategies that I use in my portfolio today. You You can buy zero down creative finance. You can buy zero down even with bank finance with creative equity, which I'll show you here, private capital. There are so many different ways to knock out deals and so many people are stuck on the money. So this is the money episode. I'm gonna try to get you from A to B to not have to worry about where the money's coming from. So, um, few questions. Let me know in the chat. This will help me direct some of this here. But have you ever bought an investment property? Let me know yes or no in the chat. What is your biggest hurdle? A, B, or C? Is it money? Is it finding the deal? Is it analysis paralysis? Is it just not having enough knowledge to move forward? So what is the biggest hurdle? What holds you back the most in real estate? Is it any of the above? A, B, C, D? Let me know. If it's A, by the way, that's like the main thing we're addressing, but I will address all of these throughout this. Do you have 15 minutes a day to invest in yourself? Because that is how much time I spend per day finding deals. When you get this down, which doesn't take that long, real estate acquisition actually becomes quite simple. It's pretty boring. When it gets boring, I like my money to be boring. I want it to be easy and predictable, and you can do all of the other fun stuff that comes along with it. For me, I like running the properties. I love my PM company. I love my team, and I love multifamily strategy. I love getting to spend the time here teaching with you guys and sharing the journey. So Money should be boring. If you have 15 minutes a day, you can stack hundreds upon hundreds upon hundreds of rentals if you can stay consistent. So if you can do that instead of watch that extra episode of Netflix every night, you can have hundreds of rental properties. I'll show you how to do it. So can I get your attention? This is actually— I need to change the slide. I'm not going to go 90 minutes, there's going to be like 30 minutes. But if I can get your undivided attention for 30 minutes I'll show you exactly how we're playing the game. Uh, so this is for you if you are starting multifamily or you're trying to scale beyond your existing savings. You have to know how to get creative. That is not optional. I tried to do the save your way to financial freedom. I bought a couple of duplexes. Unbelievably slow. Is it possible? Yes. It takes like 20 years though. If you're trying to do this faster, this is how you play the game. Those stay to the end. You do get access to our free community, the free calculator, the deal, all the stuff. I will again keep sharing that link throughout the whole thing. Please stay till the end, but either way, you can join the free school community. Um, I'll also send some other stuff for those who registered, and I'll— I'm more than happy to send some other free stuff. So bonuses for everyone. But the promise is I'm going to share exactly what changed for me and countless other people to accumulate the first 100 rentals and many more. It's not easy, but again, it's simple. Real estate should be fairly boring. And I'll tell you right now, the secret to creative finance is what is the least creative way to use creative finance to close the deal. So you need to know all of the options. So I'm going to go over that today for all the different plays you have, or at least your main plays. If you know what plays you can run, it's really simple. It's not about getting hyper creative or more creative than other people. It's what is the simplest way to close the deal the right way. And we will frame out what that deal needs to look like. A little bit about me. I'm Christian Osgood. I founded Multifamily Strategy 5 years ago. Before we were a 2,000-person community, it was me in a basement with no properties here on YouTube talking about what I was going to do. Really fun looking back now that we called our shot and I'm going to close those 38 projects. We're going to get to 100 units. Here we are, 400+ units later. I founded 2 property management companies. I actually sold mine in Washington, seller financed, creative finance again. You can deal with businesses, you can deal with real estate. And our property management company here in Texas manages about 600 rental properties and rapidly growing. I have a YouTube channel that you guys are watching on right now, Multifamily Strategy. We have over 100,000 subs, which is a huge blessing. The goal for 2026, we're going to try to blow this thing up to a million. I'm going to try to get the production up here. If you guys want free information, that is what we are about. I want to give as much info for free. Now, some of you may know I have a mentorship group, and this will not be an advertisement for the mentorship group. Coaching is what we do, and it is direct mentorship unlike any other group on planet Earth, which means the information is not the value. Information's everywhere, and we're going to share all the information for free here. If you're here for information, you're in the right place, and I will give, give, give, give, give, give, give that on this channel. So look forward to that. Ask great questions. I will answer all those questions. The channel is dedicated to helping anyone play the game without credit checks, banks, employees. I do not want you to have to build a massive business. I want you to find financial freedom in the simplest possible that aligns with the goals that you have. So that is the goal of Multifamily Strategy, and that's why we're running the live that we're running today. Unlike a lot of you, I started with Dave Ramsey's, not with Rich Dad Poor Dad. I was not introduced to that until later in life. So I went to college, I got the first, second, third, fourth job, I moved up the sales career, I saved, saved, saved to buy rental properties, and I successfully bought my small house in Seattle and 2 rental properties where those two duplexes gave enough cash flow to cover my mortgage. I went from the CoStar group— and there's Jeff with Apartments.com, my favorite coworker at the time— uh, I went from employee land to owning cool buildings like this. And this is a good note, actually. That building there, that's from a 44-unit complex that I purchased. We buy nice buildings in great areas. This is not a strategy where you buy beat-up properties in the middle of nowhere for for the cheapest possible. We don't want cheap real estate. I want valuable real estate. I want awesome assets. And if you can buy them without money, you have a better portfolio and more freedom, more stability than people on any other strategy. So if you're looking at like, hey, I'm looking at being a wholesaler, a house flipper, I'm looking at buying crappy properties in the Midwest, trying just to stack cash flow 'cause some talking head online told me it's a good idea, don't do it. Don't do it. Don't do it. You can buy awesome buildings. That's just the office. That came with a 44-unit complex that we have in Stephenville, Texas, which is a booming market in Texas near the fastest growing college in the US, Tarleton State University. So again, I have over 400 rentals, over $35 million of real estate. The net cash flow, net cash flow from the portfolio is about $50,000 a month. We built this in 5 years. You can absolutely do the same. I got distracted on 3 or 4 side projects while I did this, especially a resort that while it makes money, took away from this. I want to help everyone build this faster, more efficiently, with less mistakes than I did. So like me, want to scale career, get a job in real estate. I'm going to skip the intro here and just say, hey, let's dive right in. Let's talk creative finance. So here's the thing about real estate. There is no secrets, or are there? Information is free. It's out there online. These are the things that I wish people told me. These were secrets to me when I got started. This is what got me stuck in duplex land instead of larger buildings. It is easier to buy a larger building. It is less expensive to buy a larger building. You can do it easier with less money out of pocket, or no money out of pocket, or negative money out of pocket. You can actually get paid to buy the deals that pay you forever. So if you ever believe that you should get your real estate license, find— you need software, teams, distressed properties, houses in the middle of nowhere, 200 cold calls. None of those models are going to fit into what we do. Clean, Simple, easy. Here's the 4 secrets I want to share with you first. I know there's 5 things here. We need to frame what a deal looks like. Then we're going to talk seller finance, buying zero down, private capital, and how to get paid buying a deal that pays you forever. Uh, by the way, this will be interactive, so you guys can actually post in the chat. I'll jump in and out of the presentation mode and answer questions. So I'll put the questions up on the screen. This is actually live. It's not a prerecorded thing. I always get comments on that. It is an actual live thing that is happening right now in real time. I am Christian. This is, uh, oh my gosh, I don't know what the date is. It's like October 22nd, or it's Wednesday at the end of October. We're like a week out from Halloween. This is actually me live. Now if you're watching this later and you're like, wait a second, he said we're a week from Halloween. Well, there we go. I put the date in here, so now you know it's not pre-recorded. So if I give you the step-by-step, is that something you guys want? Let me know in the chat. And by the way, when I ask you for these questions, one, I want you to engage, but two, the more comments you have and the more likes the video gets the more we'll push it out to everyone, which means more people get all this cool information, and we get to build this community and hit the goal. So just to answer the questions, if you're ready to go, type yes in the chat. Let's rock. Okay, first of all, you need a deal, not more money. That's the, that's the real secret here. So what is a deal? There's two questions that matter. This is the fundamental— this is the core of being rich in real estate. You need to know, how do I own it? So I have a deal, I know what I need, and I've identified what the seller needs. I've now framed What is the deal? We found the property, we know the numbers. Then how do I never lose it? Now, I actually had a mentor who was an absolute wizard at question number 1, unbelievably creative. I worked for him right between the CoStar group and then finding financial freedom. Problem is, total loser. He was really, really, really bad at real estate. He kept losing his portfolios. So His first play, he buys 20 condos, $0 out of pocket. He puts together a 20-unit portfolio. What happens? They're all a little bit cash flow negative. He loses his job. He can't support them. He loses the entire portfolio. No condos, lost it. Figured out how to buy them, no money out of pocket. Didn't figure out how to hold them, no value. Then he goes and buys an office. He buys this office, one of the better deals I've ever seen in my life.. It's worth $2 to $3 million. He buys it for $1 million, seller finance, $0 out of pocket. Then he goes, hey, I'm great at office. He buys a building for $3 million that's worth $1 million. And then 2019, 2020 happened. No one leases office. He tries to lease it, this old building for a higher price per square foot than Amazon was leasing its brand new office building in downtown Bellevue, Washington. Of course, no one leased it. It lost a ton of money. It lost him both buildings. Today, no offices. Wizarded how you own it, and a lot of people are. There's a lot of ways to close a deal, but you have to know how to keep it. And if you keep a lot of real estate for a long period of time, this is just a fact, you will be worth a lot of money if you hold a large amount of real estate that pays you to own it for a long period of time. So that's what we need to do. What does this actually look like? So the deal has to look like long-term cash flow and fixed rate debt. These are the fundamentals of multifamily strategy. With or without a down payment, the deal has fixed variables that pay you every single month forever, period. The deal— there's a 3-step system to get every deal done right, and you must go in order. If you follow this channel for a while, you know these steps. But you've never seen this graphic, so welcome to the presentation. First, you have the deal. The deal— I know what I want, the seller knows what they need. I need long-term cash-flowing fixed-rate debt, and the seller has typically a specific price, and the property has specific financials of an X amount of income and X amount of operating expense. We put together a deal where it makes money day one, and we have a plan to hold it forever. That simple. Now, many people worry about the money first. Wrong. You cannot raise capital if you do not have a deal. You cannot sell a product if you do not have the product. You can't just pitch a bunch of people on like, one day I shall have a deal and the deal will be amazing. Will you give me money then? Even if they say yes, it doesn't mean anything because you don't actually have a product. They're probably not going to invest in you. It's like trying to sell a car at a car dealership when you don't have a car on the lot. What does it cost? I don't know. What color will be? I'm not sure. Do you have the model I want? I'm sure I will. It will be fantastic. You would not give that person money for a car that doesn't exist. In the same way, no one's giving you money for a deal that isn't out there yet. You have to find the deal before you can find the money, and if you have the deal, the money will come. Where does most of the money come from? Debt. There are bank loans. We're gonna go through these: seller finance, bank loans, private capital, DSCR loans, land contract. There are the There's a crazy amount of agency debt. I've been getting a lot of that lately, direct from Fannie. There are so many different ways to structure the debt, but the debt is typically going to be 70 to 100% of your money to close the deal. So you can go deal, debt done. I've done 100% seller finance deals multiple times now, but a lot of them you're going to get— we'll call it 70 to 90% of your money is going to come in from debt. At this point, you are either 100% or almost done with your deal. Now we can worry about the last teeny bit, which is the equity. If we need to bring in more money or we need more qualifications— what if your credit sucks? What if you have no experience? All you have to do is build a team of other people who also want to make money in real estate, and it's very easy to do when you have the product. Back to this car analysis analogy, this is just like you go Have you ever decided you want to buy a car? I have a Toyota Tundra. My dad drove a Toyota Tundra. I'm a Toyota Tundra buyer. I'm not a car guy, so I just know I want a Toyota Tundra. I have the 1774 model or whatever it is, the 1974 Toyota. It's the Texas version of Toyota Tundra. Like I said, not a car guy. I don't even know the model of my car that I drive today. When I go to a dealership and I want to buy a Toyota Tundra, if they don't have a Toyota Tundra, I'm not buying the vehicle because it's not the vehicle I want to drive. If I've decided I want to buy a Toyota Tundra, who knows, like anyone or yourself, when you decide it's time for a new car and you know what you want, magically it seems like within a few months, regardless of where your finances are, people tend to find a way to end up with the car that they wanted to buy. That tends to happen when it's like it's time for a new car. Magically. What did I just do? I went to the dealership, I bought a car. If you have the product people are looking for, people want to make money in real estate. If you have the deal in their market, and you've already lined up the debt, it's mostly done. It's very easy to bring in the team. Now you're like, hey, it makes this much, here's what it looks like, the building's this color, it's beautiful, there's the condition, here's our business plan. You have a product, and now the money always lands. In 5 years of multifamily strategy, we've never had a mentee— I've coached hundreds and hundreds of people— never had a failed capital raise ever because we follow this order: deal, debt, equity. So you have to reverse the mindset. It's not, I don't have the money to I close the deal, it's I don't have the deal that finds the money. And I understand it's hard, and for many, I understand it's scary. If you actually internalize this, this is the only part of real estate where I'm like, you have to trust the process. Everything else is like, it's just like Algebra 1 is about as difficult as real estate gets. This is the only place that takes a little bit of faith. Look around when you drive your market. Everyone, every building you pass, someone owns. That building, they're probably not losing money. So no matter what market— and if you're in California or New York where these hard real estate markets that hate landlords are super expensive— if you find a deal that cash flows day one, there are a ton of people who would love to make money on a deal in California. You line up the debt product, there's lots of banks that want to place here. California's been stable in appreciation for a long time. Deal happens, that is easy, the equity will come. If you internalize that and you follow that process, this will work basically every time for you. So everyone worries about the money. That means you miss out on a ton of deals because you're limited to the money that you have available or that other people have committed to you. So you're confined by the money. If you match the money to the deal, you can get as creative as you need, and you're going to find there's actually opportunities all over the place. That's the secret there. That's how deals work. So with seller finance, private capital, equity partners, you do have all the money that you need. Seller financing is not the only way to do this, but it is the most powerful tool. In your tool belt. I've used that on 17 of the first 20 transactions I did. I made— it was a little over $2.5 million, but I made literal millions of dollars at 29 and 30 because I figured out seller financing. Just seller financing without any of the other awesome strategies I'm showing you. I became a multimillionaire in about a 2-year span. Now, this is not a get-rich-quick thing. My first deal went extraordinarily well. And not everyone's going to hit a home run on the first deal, but if you keep getting base hits, you will eventually get a home run. I, I don't watch baseball, but I'm from Seattle. The Mariners almost made it to the World Series, so baseball analogies are on my mind. But when I'm watching that, you know, not every single hit was a home run, but you load up the bases— we actually lost because someone, the other team, got enough base hits, they got one home run, And they outscored us even though we had 3 home runs. You don't need to hit every deal out of the park. You need to do deals that move your income up and keep it up for the rest of your life. That's strategy. I'm going to hop back into the main live, give a quick example, and answer some of the questions that we, uh, that we have here. So let's post some of these up here on the screen. All right, fastest way for an investor to put the 10% down when you are just beginning. Uh, the fastest way to put the 10% down— well, technically the fastest way to put the 10% down is to have the 10%. Assuming that you don't have the 10% down for the deal that you found, the fastest way to do it is to first line up the deal, you go under contract, and you still have time to put together the capital. So when you're doing it like a 10% down payment Most deals take 60 days to close. So your first mission is to find a deal that you love, know the numbers enough where you're like, hey, I'm confident that this is going to make money. If you have a deal example where you need to find $100,000 to close a million-dollar deal and you believe that there's at least half a million dollars of upside, everyone listening, everyone listening, correct me if I'm wrong, but everyone listening will find a way. If you're like, I will make $500,000 if I get someone to give me $100,000. Everyone can do that. If you're like, I absolutely believe and have the math to prove that we will make at least $500,000 if I can find someone to give me $100,000, everyone can do that. So all you have to do is you have to build your confidence in underwriting, which takes like 3 weeks, 2 weeks if you're really dedicated. Get confident in the underwriting so you know when you have a deal, and when you have a deal The fastest way to do it is to go put that deal under contract, start your due diligence, and start talking to other people about the deal. If you're only looking for 10%, again, in this example, if you're looking for $100,000 knowing that you're going to make $500,000, the money is going to come in. It will not be hard to do that. And for a smaller 10% down, most deals you need one partner. You don't need a team of like 50 people giving you $10,000. I know that's terrible math. It'd be 10 people. $10,000. You guys get the point. When you're putting together a deal, the smallest team, the least amount of people, buy deals that move you forward. 10% down, you've already done 90% of the deal. Like, you're almost there. You're at the, you're at the 90, you're the, you're sitting there on the 10-yard line about to score a touchdown. Easiest time in the world for capital to come in. Perfect. I'm just looking through some of the questions here. I know I'm screen share— I just realized I'm screen sharing the screen share. So I'll actually pop out screen share next time. I'm getting better at running lives, though. Let me, let me cook. OK, I'm back over back to the presentation. This is a practical example. I'm told that I use this example too often, but I think it's important because it's the first deal. So this is where I started. I did not have any friends or family who had money at all. I didn't have the real estate experience. Like, working for the CoStar Group is not sufficient experience to run a project like this. That is one 9-plex in the back out of— there's 8-plexes and 9-plexes and then a 14-unit building up front for a total of 38 units. We bought seller financed $200,000— or sorry, $2,300,000 down. The seller needed $2 million. That was their price. They were absolutely stuck on that. That's what they needed. They needed 15% down because they owed $200,000. They wanted to walk with $100,000. That, that was their objective. They also wanted to retire on 10% or sorry, $10,000 a month cash flow. Problem with this deal, we got the financing, ultra low interest, 4% interest rate. We have low down, 15% is better than you would get at any bank. The property had some problems. We did, we get cash flow, but not enough to pay $10,000 a month. Now, if my side of the equation is I need $10,000 a month, I have to have $10,000 per month going to the seller. Like if I need to overcome that and I still need a cash flow, right? Because I'm trying to retire my wife. I'm like on this deal, I'm like, I want a few thousand dollars of income. I want this deal to move me forward and I have to pay them. I'm looking for long-term cash flow and fixed-rate debt. On their side, they're looking for a price that I'm okay with. They're looking for a down payment that I'm okay with. They're looking for an amount of money every month that the property cannot give. Many people would give up here, but again, remember, the simplest answer is the correct answer. To create a finance, how do you say yes to everything? How do you get the deal so you can line up the debt and the equity? We simply said there's no payments for 6 months. Ta-da! Seriously, that was it. We said there are absolutely no payments for 6 months, which gave us time to fix their collections problem, which gave us time to fix a couple of the units to lease it up. We got the cash flow on the property to about $17,000 a month, and then the $10,000 a month payments came in. And because we had 4% interest, About $7,000 of that was paying down the principal balance of the note. So even when we paid $10,000, we got wealthier every single time we wrote the check. The property paid the check. And years later, we refinanced, actually less than a year later, 11 months later, we refinanced with a bank. They valued it at $4.2 million. We pulled out almost a million dollars from the property. We bought out the 3 partners who each funded $100,000 on this for double their money., which means I did this with my buddy Cody. We each got paid about $150,000 each the first time we did this. We also took the rest of the money and we bought out all of the partners. The real estate bought the real estate. No money ever left my pocket. We shared a $7,000 a month income and we each got paid $150,000 in less than a year. 38 units, free real estate. We went on to repeat this about 20 times throughout Washington State. And I've done a similar play many times in Texas. That's how seller financing works. That is the basis for seller financing. So you can finance anything that you own. You do not need the bank, period. So on today's presentation, we're going to get to the seller finance point. In future weeks, I'm going to talk about the zero down bank, and I'm going to talk about how to use private capital. And I'm going to talk about lastly, how to get paid by the deal. So as we go through this series, series. We will continue to evolve this. I will continue to give you guys more and more tools to do this. For today's live, we talked about what a deal looks like. This is our basis. So this is video 1 of a 4 or 5 part series, depending on how I want to break up the back end of this. How do you get seller finance terms that no one else can get? That's what we're going to talk about today. So who here has seen the deals that are like, it's seller financeable if you do 50% down? It's seller financeable, but the interest rate is like 9%. It's seller financeable, but it's a 1-year note. There's a lot of crappy deals. Seller finance itself is not valuable. It doesn't mean anything other than you don't have the credit checks and the experience requirements. Seller financing and getting great terms is a really simple art that I'm going to go over a couple methods that consistently work, and then we'll open it up to Q&A. We'll have a good time. So how do you win with seller finance? First, let's quickly define seller financing. It's a promissory note. So they're writing a note, it's a promise to pay. So if they have high equity in the property, so say they have no debt, that means they can finance. They're essentially the bank. So just like any other bank note, they're— we're writing a note. Hey, I promise to pay you, let's say a million dollar purchase. I promise to pay you, uh, it's 10% down, so, uh, $900,000 In 5 years, we have 5% interest-only payments. What I love about this though is you get to name the terms, the rate, the amortization, the schedule, all of it you get to customize. So you get to customize the payments to what your deal actually does. You write that down in a note, which is a promise to pay. You typically will have a down payment, not always, but typically between 5 and 30% of the purchase price. You get to negotiate how much money you need to put down, which can dramatically affect your cash-on-cash return. There's terms and balloons. So you gotta go, okay, well, is it amortized? Is it interest only? Uh, the debt, even if it's a 30-year amortization, maybe they want to get paid out by the next 10 years. So we do a 10-year balloon. It's typically gonna be anywhere from 3 to 10. Long-term debt is 7+ in commercial real estate. You want to either get long-term debt or have a very, very, very, very clear path to get into long-term debt. We closed the 38 in 5-year debt. That's midterm debt. At the end of year 1, we refinanced out into our permanent debt collateral. Seller financing is usually just the building. Occasionally they'll ask for a personal guarantee. I try not to do too many of those, but you have the collateral, which the great thing about real estate, you have an asset and you're like, hey, well, if the asset's worth this, and I'm giving you $100,000 down. If I fail to pay the $900,000, you get the building back. You can sell it to someone else for $1 million. You got to keep my $100,000. Collateral is usually sufficient in and of itself. And of course, you get to name your own interest rate in seller financing. That's the power of seller financing. It's all made-up numbers, which means if your deal isn't quite working, you just make your debt cheaper, or you change the terms, or like the 38, you add a special clause saying, hey, We're going to say yes to everything you want, the payments, the price, the down payment. You're going to get everything at signature and then just your retirement, $10,000 a month. It's just going to kick in 6 months later once we get the property to spit it out. Easy, easy stuff. Give them a business plan. This is how we're going to get there. Here's what you're looking at. So benefits to you, it's easier to qualify, it's faster closing, way faster closing. I've closed a seller finance transaction in 10 days.. You can take as long as you want on them, but there's like no approvals. You pre-approve and negotiate all of your debt and complete flexibility on terms of structure. Benefits to sellers. There's passive income, potential for a higher overall sales price. Often if you get amazing terms, they get to win on price by a little bit more. You have to win on price or terms or both. Otherwise you don't have a deal. So if you're massively winning on terms, they'll typically get a little bit more in purchase price. And as long as the debt's long enough and you're getting enough cash flow, That can be just fine. Uh, tax-deferred capital gains for the seller, easier to pass on to their heirs. It's great to just pass a note instead of, uh, literal money. Keeps your family's legacy going a lot longer. Ability to sell to the right buyer. I did this with my property management company. I wanted to sell to the person who could continue to manage my own portfolio. So when I structured the seller finance note, I actually sold at a lower price and I financed it at low interest. So the person who I wanted to run my portfolio was the end buyer. I trusted the right person who I wanted to invest in the company. Therefore, I let them set more creative terms. You get better terms if they know, like, and trust you. I've done this on the buy side. I've done this on the sell side. And you have the ability to sell a property that may be hard to get loan approval for, like the 38 where they were doing poor in collections and poor in occupancy. They weren't doing a good job managing it. They were deep into their 80s and they were an old 80. My grandma's 95. She acts like she's 25. These were, they came in, it took them probably about 3 minutes to get across the title company in their walker to like, they were ready to retire. We came in and we solved the management problems. They self-managed for a long, long time. They started when they were younger. The property was getting away from them. A bank would not lend on the property in its current condition. We were able to take over a property. That was unbankable, but still had a ludicrous amount of upside, $2.2 million of upside. I'm going to end on this. Real estate plays like a board game. There's 3 resources. This is the last, I don't want to just go into a billion lessons. So we talked about deal debt equity. Let's talk about the 3 types of money. You have liquidity, you have cash flow, and you have equity. So cash flow, monthly income through real estate. Liquidity, amount of cash that you have in your bank account or in reserve in your LLC at any given time. So that's cash on hand versus income, how fast it regenerates. Equity is where you get rich. Equity multiplies over time. In fact, real estate typically doubles in value every 10 to 15 years depending on market conditions. It's actually shocking how fast it tends to go, but in an average market, rent doubles every 15 years and real estate follows that 1 to 1. Now you can trade any of these for each other. So if today you have a lot of liquidity, you can go ahead and buy the equity and you can buy the cash flow. If you have, uh, high cash flow, you have high income, you can get a loan against that to increase your liquidity. Liquidity can purchase equity. Equity, you can seller finance for more cash flow, or you can sell for more liquidity. The point is all of these are interchangeable. So if you guys have ever played Settlers of Catan, you have like wheat, brick, stone, wood. If you have no idea what I'm talking about, I'm a nerd. You have way more resources playing a basic game like Settlers of Catan, like a basic board game. Than you do in real estate. You have to manage 3 resources. When you hold all 3 in adequate amounts, you're rich. You've done it. Your money multiplies through equity. It adds by cash flow. You are stable and secure through your liquidity. If you're starting with none of these, so you can't trade anything for anything because you don't have any, here's the beautiful thing, and this is the secret of seller finance. You can borrow or trade resources for other players. So what do you need to do? You need to go out and meet the other players. So the results, I bought hundreds of units without ever asking for a sale, without building an acquisitions team, without paying for leads, because I went out and I got to know the people who own the buildings in the markets I want to own. I actually just got coffee with them like a normal human being. I'm an introvert, by the way. I don't go out and do this for fun. I do this for business and I still have a great time. We get coffee. We've often plopped down in their truck. They drive me around. They talk about how they built their portfolio. Um, most people in real estate like to talk about real estate. Like, we're honestly, we're all just kind of like board game nerds. We like putting new pieces on the board. We like getting more resources. We like trading real estate and negotiating deals is fun and people like talking about it. It is not hard to book a meeting with people who are moving and shaking in your market. They like newcomers as long as you're not annoying and try to force a transaction. It is not about the transaction. It's about the relationship. When they know, like, and trust you, Those are the guys who call me all the time. Hey, I got a deal. I think you should buy this. It's too small for me. It's perfect for you. I know you don't have a lot of money. I've already talked to them. They'll sell or finance to you because I had a conversation with them. Or sometimes these guys will say, hey, I have a partnership I want to get out of. If you can come up with X amount of money, I'll sell you this building. I know you're a little short, but I structured this in a way where cash flows day one because that's what I told you to do. That is the secret to getting the creative terms, the relationships you have with sellers and brokers in the market where you like correctly identify what people need and they actually know, like, and trust you, all of a sudden the down payments go from 50% to 10%. They go from 10% to, okay, we don't need a down payment, but we need to see your business plan on how you're going to run this. They go from 7% interest to 4% interest because they want to sell you the building versus someone else. They're like, I like you. I needed someone to deal me in originally, so I'm going to offer you better terms because I want to make sure this deal works for you. I've had that happen many, many times. I have had people, it's happened to me 3 times, multi-unit, multi-hundred-unit portfolios where they said, "Hey, here's my retirement plan. I want to seller finance all this to you over the next several years. My kids are going to blow all the money. I want to give them notes. I don't want them to sell the notes. They already have instructions not to do this. I just want you to turn this completely passive for me. So I'm going to sell you a couple buildings every single year." So there are people who have built their own empire And after meeting with them, they're like, you know what? I like what you're doing. I like the way you operate. I like that you sit down and don't bother me to buy all my stuff. Here's my exit plan. I want you to take my portfolio to the next level. I've had those conversations. I've had mentees have those conversations. My buddy Caleb's had those conversations. Ethan Wilson. There's so many people in the mentorship group actually. Phil Toth is another one doing multiple transactions. One seller, seller financed again and again and again, low to no money down. It's crazy, but it all happens on this relationship level. And you just have to understand, like, if you're lacking resources, you need to have another player. I'm gonna do one more nerdy, nerdy example. Monopoly. When you're playing the board game Monopoly, especially as a kid, let me know in the chat actually who has siblings and played Monopoly. I'm actually legitimately curious. Whenever someone would get out, especially as kids, Usually you didn't want the game to end, so someone goes, ah, yeah, I'll give you a loan, I'll do you a trade, I'll keep you in the game. Real estate kind of plays like that. You have people who are like, you know what, I like you, I see how hard you're trying, you've asked great questions, we've got to know each other, let me deal you in. I'll sell this property for a little less, or I'll do it at lower interest because I want you to be able to play the game. It sounds crazy that people will do this in business, especially with money, but a lot of these people that you meet have hundreds of rentals. You'd be amazed how many large landlords there are in your markets. They don't always need more money. A lot of us, we love this as a hobby. I've had multiple buildings myself where I could have sold for more. I liked the person who was offering. I went with the person who I liked and knew over selling to some random person. And the nice thing is I am highly confident that it's going to trade. I'm not going to get the property back. So as someone who seller finances real estate and companies, the relationship is worth way more to me than maxing the price or maxing the interest rate. Uh, you get to a certain point and it's not that far in a business where there is more to the business than money. Yes, we need to make money, but I don't need to max the profit to myself on every deal. I can have a successful transaction where I made money and Maybe I made a little less to make sure it's a win for someone else, but everyone won and it happens all the time. So how does it lead to seller finance? People know, like, and trust you because they know your story and your starting position. The deals they bring to you match the resources that you have. If you need a lower down payment, they already know that, so they're going to write a deal that probably has less down. This is consistent. It's happened to me in Moses Lake, Washington, Ephrata, Washington, Mason County, Washington, and multiple cities in Mason County, Washington. I bought a seller-financed resort for $4.5 million in my first year in real estate. No like and trust me, we went forward, did a deal. They wanted $7 million. We bought it for $4.5. Now, it wasn't worth $7 million. It would never trade for that, but that's what they originally wanted. The negotiations went well because we pushed, pushed, pushed, pushed, pushed on the price. And it was the only thing that we couldn't do. So they went, "You know what? We could keep it on market. We're going to sell it to you instead." That's how I got the Robinhood. Then it's like, okay, does it only work in Washington State? Well, no, I went to Texas. So does those work in blue states or small cities? Uh, no, I did this in Seattle, we did this in Houston, uh, then we did McAllen, Laredo, Stephenville. We're buying a deal for 144 units in Abilene right now. All these things come up because you can build relationships. It works in every market— red state, blue state, big city, small city, uh, big state, small state, West Coast, central of the country. It does not matter. It works everywhere. So the real magic is because you have the relationship, when they reach out to sell something, they already know, like, and trust you. You may not know this, but this makes all the sense in the world. The best deals trade off-market because if I already know someone who I want to buy the property, I know they want the property, am I going to pay a broker to list it, or am I going to call the person I know and ask if they want to buy it? Of course I'm going to talk to the person who I just got coffee with Be like, hey, I'm gonna list it. There's gonna be fees to do this. I, I'm gonna have to take time to do this. Or I can price it down a little bit or get creative on the terms and I can sell it to you. And I just know that this is done. It's off my plate, onto the next project. So many of my deals have done this in my first year of just doing some coffee meetings. Go for like one a week. I got a pipeline that still carries me through today. So if you like coffee, tea, now that I'm in Texas, barbecue, you want to go out to mini golf, do social things with people who are in real estate, go to the local real estate meetup and just talk to people about how they got to where they're at. Stop trying to buy the deals, start trying to figure out how people built their business. And through those conversations, you'll buy more deals than you ever thought possible. Final example, then I'm going to get into questions and then we're going to call it a day. I'm going to hop on a flight and I'm going to go to The promise. Example, 6-unit seller financed, $900,000. Gary Mann and Dan Eilers. If you're wondering like, ooh, can I call these people? Well, Gary's still a broker. You can call him. He's in Moses Lake. That being said, I bought most of their stuff. 6-unit seller financed, $900,000. They wanted 25% down. They actually, to sell this deal to me, they wrote a check to buy out their partner so that they can seller finance this at 10% down. They actually wrote a check to be able to put this note in place. Now, why would they do this? Gary and Dan have hundreds of rentals. Their cash flow, because they paid off all of their debt, all of it, their cash flow is about $100,000 a month each. They do not need more money. They are still growing their income and their family legacy, and that's what's important to them. They own bigger buildings, these 3 side-by-side duplexes. One of their partners wanted to be cashed out. They're like, sure, we'll cash them out, then we'll finance this. We need $90,000 down so that you have some skin in the game. I did not have $90,000. We just closed the 38-plex. Days later, I go under contract. I'm like, the deal's amazing. Cash flow day 1, had a ton of upside. We're going to go from $1,000 to $3,000 a month in total cash flow on it. I'm like, I Another $36,000 a year when you just left your job and you're trying to retire your wife. I'm like, that's like a third of my way to financial freedom. Like, $10,000 a month is— we're cruising. I'm paying my mortgage, my cost of living, and I'm saving a few thousand dollars a month. Like, I am in the safe zone at $10,000 a month. One transaction puts me a third of the way there if we can close it. Talking to someone in a restaurant, I share this story all the time. Are in a Starbucks specifically. They've done 4 flips, made money, lost money, made money, lost money. He's like, I just want to double my money every 5 years. High income earner, higher level Microsoft employee programmer. My proposal was, what if I double your money in 5 years? You put in $90,000, I'll give you $180,000, which will be easy to do on this property out of either cash flow or the refinance. I can do the BRRRR method or I can just save up multiple ways to pay you $180,000 out of this property. You want to do it in less than 5 years, I'll buy you out in less than 5 years. So I have an option contract to buy him out. Caveat, I get all the income. I'll manage it. I put together the deal. And if I fail to pay you $180,000, you take all 3 properties. We bought them for an amazing price. There's a ton of cash flow. He's secured by 100% of the deal. I have 66% of the deal. He has 33% of the deal equity. 60/30 split, cash flow 100% to Christian. Upside of the deal, most of it goes to the investor, but the real estate— bought the real estate for $0. I got one-third of the way to my goal. This took 14 days from first call to close. I did not know this person who funded the deal prior to the deal. This was 2 months after I hopped in the truck with Gary and Dan and they drove around and they told me how they used their partnership to buy all their properties and then pay off their properties. I never asked them for a deal. I asked them how they negotiated their deals, how they use their partnerships, and what their policy was for properties. They said always cash flow day one, and we do not re-lever. You can refinance once if you're buying out a partner, then just let the debt pay itself down. They're both in their early 70s. Like, you know what, now we're in our early 70s, we have hundreds of units, we have no debt. Bulletproof portfolio. I mean, just absolutely bulletproof. They're spread out, multiple projects. If a building burned down, even if they were uninsured, it's like, oh, our income went down a little bit. Like, they are immune. They're financially immune to almost anything save like Mount St. Helens blowing up and wiping out like the city. They're basically immune to anything other than a complete crazy random act of God, and they're insured against that. So best model I've ever seen. I asked them how, not can you give me, and that's how we got this deal. Okay. That's what I'm sharing for today. We're gonna get into the other topics here as we go. I'll stop sharing screen now so you don't see 80 versions of yourselves. And we will get into the Q&A here. And I do have a few questions, not too many. But ask your questions here below in the chat. Excited to see them. So from Calvin, in a seller finance deal, how do you finance the renovation? Oh, this is actually really fun. So there's multiple ways to do this. The most typical way to put it together, and we're actually going to go over this in future, uh, future weeks, the most typical way to finance a renovation is going to be out of the capital raise. It was actually going to be out of the equity partner. So if I knew that I was going into this deal, let's say that we actually had some renovation to do on these, these were turnkey on those duplexes I just showed. If I knew that I had to do $5,000 per unit in like flooring upgrade, paint, you know, we're going to call it just a, a aesthetic overhaul. Okay, so we have 6 units, $5,000, I need $30,000. I would have set my raise to $120,000 and I would have put together my plan for where we're going to start with rents and the return on the renovation to the investors. So like for the $30,000 we're putting into this, This is how much more rent we're getting. This is how we expect it to react to the value. So this is where like basic, basic, basic real estate math comes in. But in that presentation, you always start with all of your capital for renovation. What newbies will do, and I did this on the 38 and it shot us in the foot, we could have gone even faster on this by a lot. If you start with the money to renovate, you got to finish the project and you get to go on and buy more real estate. People think, hey, I bought this cash flow deal, I'm going to renovate it out of cash flow. And so every month the money will come in, we'll use that money to renovate the property. What happens in practice is you have a move out, you start renovating it, and you surprise— have an AC go out, and now you're at no money in the account. So you have to wait a couple months for the cash flow to regenerate, then you spend the cash flow on fixing that AC, and then you have another move out, and now you have less income because now two people have moved out. And so your cash flow has gone down, it's taking you longer to save up, and you end up in this endless cycle of we're waiting for the money to come in, then we spend the money, and then you end up not paying yourself. I've survived deals like that. I've seen people last a long time of this endless chasing the money, waiting for it to regenerate. What you want to do in all business, do the project right now. If we make more money by being renovated, start with the money that you need to renovate. It's part of your deal. And if your deal doesn't work when you raise that capital, you still don't have a deal because you have renovations that you have to account for. That's the most common way to do it. I've actually had a renovation where we came back to the seller and we said, hey, property's doing better than it was before. I do need more money to take it to the next level. Here's my business plan. I wanna put a pitched roof on this. We wanna paint the outside and we wanna add a fence around the courtyard. And we're adding a couple of interior renovations, but they were minor. Uh, we're gonna fix the laundry room and do some other stuff. I put together my business plan to him. I said, hey, I just gave you a down payment last year of $300,000. He'd recently sold a building, so I, I was aware that he was pretty liquid. You already have a $900,000 loan on this building. Would you increase that to a million dollar loan? And so we did what's called a seller refinance. The seller actually came in and lent us more money at the same interest rate because we improved the value of the property. Collateral is good. They have excess capital. They actually gave us a cash-out seller refinance for us to go ahead and do their improvements. So you can do them seller financed. I've rarely seen it, but I have seen it done where the seller actually gives you money to fix it. But usually that's when they're in trouble, they're losing the property, it's way gone away from them, they can't sell it to anyone. They, they're like, okay, fine, I'll write a check to get rid of this. I'll finance you the cost to renovate the building and get this off my plate. It's a rare case. Sometimes the seller will finance it. Usually you're going to handle it on the equity of the deal, debt equity. You find the deal, you get the seller finance, you have the amazing, you know, we have this much cash flow, we have this much future upside. You come in with an investor and you just let them know, hey, part of our project, our cash to close is the actual renovation cost. See if we have any other questions here. I highly, highly recommend you guys take the time to do this and get questions as you, uh, as you go. By the way, we are going to be growing these lives exponentially as we go, and we usually go at 5. So again, today is our beta. It's like our soft launch for what the lives are going to be moving forward. Next week, I'm actually going to have Caleb Hommel come in and talk about how he built his portfolio. I think it's one thing to have like the YouTube channel owner come on and talk about like, here's how I built a massive portfolio, and the, the I hope you guys get a ton of value out of this. I really do. But I do recognize when I started, I was on my way to 100 units and it was really relatable to a lot of people. As a, like, hey, we're a 10-person PM company. I have 2,000 mentees, or not mentees, but 2,000 people in the community. I have a couple hundred mentees who I've taught over the years. It becomes less relatable to people. And I do realize that what I wanted to do with, uh, bringing on Caleb next week And so they'll be at 5 PM, the normal time. What I wanted to do with Caleb on is have him actually share, like, as a 22-year-old who started at 18, who has 200 rentals, what it looks like from his starting point. He didn't have the job, he didn't have the college degree, he didn't have the money. He had to— he didn't have a credit card, so he had a credit score of nonexistent. It was no credit score, no experience. How did he go from using the same model to what I think is a higher level of success. I have 426 units today in my portfolio. Unit count doesn't matter, but that's what I control. I have about a 50% equity stake in that, 47%, I think, is my weighted equity. So I have a large portfolio today-ish. I still think it's small to me, but everyone has their own goals. Caleb at 22 with 200 rentals versus Christian at 33 with 400 rentals, Caleb is believably, like unfathomably ahead of me. He's 11 years younger. It took me 5 years to get here. He has more than 2 iterations of the entire time I've had in this business. So I'm very excited to have him on. He'll be in here next week. And this is more of a comment, but yes, I love how we can ask questions in real time. That is the goal for these lives. So I won't always have a literal presentation on the screen. I think it's kind of less personal, but I— what I wanted to do is break down what we were doing for a year in the webinar series and break it into bite-sized chunks where we can actually come in and discuss. As we continue to do this, I will be live at 5 on every platform that I'm allowed to stream to, but especially here on YouTube. I will be live at 5 every single week, and we're gonna be talking about individual topics. It's gonna be a conversation. My goal, and I know this is kind of probably going to sound funny because I think we have like 20 people maybe, uh, streaming this first one for our beta test. My goal is that by the end of 2026, we have 500 to 1,000. Yeah, let's just call it 1,000 people. I want to see if we can have 1,000 people on one live asking questions, hanging out, talking real estate. I want to bring a whole community here. That's my vision for what this will be, is that you guys can ask questions in real time. We can actually have discussion, go through topics. Again, the information I think should be free. And so here, here's my goal. This is my contribution to real estate. This is what I want to do. And this is my only ask for you guys. Join the Free School community because when you're there, I don't need to sell you anything. Like, I have a mentorship, and if you don't want a mentor, don't give me any money. I do no subscriptions. I have no upsells. I have nothing else to sell you. I have a mentorship if you want to be mentored, because that costs me actual time and a boatload of money to market and actually operate. It has employees. It's an actual, like, it's It's a literal company with overhead. The information is free. And so anyone online, sorry, real estate gurus, anyone who has an information product or a course online, I want this live to completely kill it. All the information is free forever, period. You guys have the information on this channel. I'll never charge for information. I think it's stupid. I think it's antiquated. I think we have ChatGPT to give us a ton of information. The information's out there, and so the information on this channel forever will always be free. In the school community, my ask for you— join it, because if you're here on a live asking questions, why not be in a community with 2,000+ people who want to do the same thing that you want to do? It costs you nothing. I give you free calculators. I post a whole bunch of cool stuff in there. I even post great deals in there. So if you want to get started, I'll help you get started. So that's my ask for you. Like, the only thing that I want from you is for you to participate in the community if you want to, and I'll never bill for it ever. So this is me not selling anything to you. Uh, it's another reason why we're doing this on YouTube Live instead of as a webinar. As a webinar, at the end of the webinar, I would invite you to the mentorship group if you wanted to join. Again, always give all the information, but I'm not even gonna do that now. There's no sales pitch. There's no, hey, you need this information. If you want a mentor, I volunteer. I actually coach you. You get my personal number. It's fantastic. It's wonderful. Um, if that's not what you want, join the lives. Help me bring this to 1,000 people. Let's kill every single online course by getting all of the content here on the YouTube channel. So you have all the information you could ever need. That's my goal. That's my goal. All right. What is the best way to meet people in your local areas? This is a good question. I'm surprised no one else asked this actually. What is the best way to meet people in local areas? You suggested getting coffee with people who own real estate, but how do you recommend finding these people? There's a magical map online called Google Maps. And before you guys start like blowing me up on like Google Maps, it doesn't give you the information. This is how I find every property. I have never used data sources. I left the CoStar group prior to buying real estate, so I didn't have CoStar data. I didn't have Reonomy, PropStream, you name your favorite real estate system. I've never bought software. You still don't have it. Here's what you do. You go to Google Maps, you look for the big roofs, multifamily buildings in an area. Now with city zoning codes, usually you find one multifamily building, you're going to find a whole bunch of others in the same area. And that's pretty much how cities are built everywhere in the country. You look at the multifamily buildings that look like the buildings you want to buy. This is way one. I'll give you two ways. Way number one, you find the buildings that look like the buildings you want to buy, and then you look up the county record. So it's usually GIS data, or you can also just type in like your county name. Parcel data. You're looking for a parcel map. You click on the parcel from Google Maps and it'll give you the owner's name. If it's a company, you go to a site called OpenCorporates. And in OpenCorporates, you put in the LLC name and the state it's in, and it will tell you who filed that LLC. Sometimes it will be a lawyer. Many times you're actually going to get the owner of the LLC. You go ahead and Google their name and the word phone number and the city that the property's in, and you'll get their phone number for free. And I've done this a bunch of times. I have a couple of YouTube videos on this channel. If you go through my most watched videos, the one that's like one of my first videos, so it's like, it's just a straight pink background. If you find that video, it's gonna be in my top 25 videos for sure. It has to be. Check out that video. It will literally walk you through step by step how you find these owners and how you contact them for free. Does not cost you anything. Now, if you're trying to shotgun like 50 people at a time, this could be a pain in the butt. You should probably buy software. I call 1 or 2 owners a day. I leave a quick voicemail if they don't reach out, and I meet pretty much 1 to 2 people every single week. So in a year, I meet like 100 owners while other people are complaining about like, well, I don't have skip tracing software to just do the thing. It costs you 15 minutes. It's the easiest thing in the world and it makes you, you know, it's made me millions of dollars, made a lot of other people more money than me. It's a stupid simple way to do it. The other way you do it, you go to a site, probably the responsible thing to do is to screen share here, right? If we're gonna do the information, let me pull it up. You can get brokers to give you the same data. Okay. So screen share. The beauty about not being a tech guy, you don't have to be good at technology to do this. You do have to be good at technology to stream things. All right, I should be screen sharing. Okay, I am on craigslist.com, or I should be. It's loading slowly. So craigslist.com, this is a perfect example. That's loading very slowly. Craigslist.com and LoopNet.com list properties. Many of us know deals go to die on LoopNet. It's mostly true. What did I say earlier in this presentation specifically? People trade properties to the people they already know, like, and trust. So if a deal is finding its way onto Craigslist or LoopNet, it means they failed to sell to their network and they're now listing it, trying to find a buyer. Which means there's usually something wrong with the deal. Here's a deal that's in Dublin, Texas. There's just south of Stephenville, Texas. This is a deal I actually think someone should probably buy. It looks really cool. It's a super fun project. It's been on market for a while. And by a while, I mean 520 days. It's been around forever. So you know there's something wrong with it going in because no one's bought this. If this looks like the type of building you're interested in, you call them and you start working the deal. You do not ask about creative finance. You don't ask if they're willing to hold a contract. You don't try to figure out what's wrong with it immediately. You just talk about the deal. What are the ins and outs of the deal? Tell me about the area. What's the history of the property? What does the seller actually want out of this transaction? What's the most important thing to them? Is it price, terms? What do they want? You go through the broker script and then you eventually will put in an offer for said deal. You don't need to bring up creative finance anywhere in here. You just write an offer where you know the deal is going to work. And in future weeks, actually next, next week or the week after, I'm going to share the part of the presentation where we go specifically over how to get bank financing on a zero-down deal. So zero, zero out of pocket, you use conventional financing. So if it wasn't creatively financed, I'm going to offer on this property conventionally where it's going to work. Could be less money than this. It might only be $300,000. I don't know. I'm not saying lowball properties, just do the math, figure out where they're going to work. I then call the broker and I let them know, hey, I would like to write this offer. I think the bank is going to come in here. And so this is— if the bank's good to go, I'm good to go. This is what it's looking like we're going to have to pay for this property. Because of this, I want to make sure we're not going to offend the seller or waste anyone's time. Is it worth our time submitting the offer? Sometimes they'll actually say yes, and you just buy a property for way less than you thought you could. Oftentimes they'll be like, nah, they're really going to be closer to the price. Like, okay, well, since I don't think the bank's going to reach us there, what do you suggest as a solution? Are they open to any creativity where I can come closer to their price? I don't actually have a problem with their price. I do think the bank will based on their financials. Well, now you've offered on a property. You've moved to the broker's mind as someone who doesn't just call and ask questions. You call, you ask questions, and within 24 hours you submit offers. You're the top of their list. They're going to show you more deals and Creative finance, they'll go into those discussions if they believe that you're a real buyer. If you open with, hey, are you open to seller financing? It's like putting a sticker on your head saying, hello, I'm broke. I have no money and I don't really know what I'm doing here. A broker will sniff that out and be like, okay, I don't really want to sell the property to them because I don't think they're going to close. If you can convince them I'm a ready, willing, able buyer, you don't care about the financing, you care about the deal. So negotiate the deal, talk to the brokers. Brokers will start sending you seller-financable properties when they understand that you're good at creative finance. If you're opening with creative finance, you're never going to get it, which I think is where 99% of people get stuck. You're not looking for creative finance. You're looking for a deal. Remember, it's deal, then debt, then equity. Negotiate the deal, then pick the best debt product available. You don't just lead with, can I get this debt product? It'll make my deal work. It solves all my problems. Creative finance is magic. It's not magic. It's just a finance. It's a debt product. It's the most boring thing in the world. People, I, you know what? I like Pace Morby. I think he's a great storyteller. Amazing, amazing hard worker. I slightly blame him for, because he's such a good storyteller, for making creative finance feel like magic. It's not magic. It's actually one of the most boring things on planet Earth. It's a price. It's the terms. It's interest rate. You're negotiating a note. How did people manage to make this sound so fun and sexy? I don't know. It's boring and simple. Don't make this the silver bullet to your portfolio. It's not about getting seller financing, but some deals are going to need creative finance to close. It's about framing yourself as a ready, willing, able buyer, especially on the broker end. You can do a lot of creative finance. I have done, through brokers, I have done 10 seller finance transactions. It is absolutely doable. It is easier direct to seller. So that's both methods. I know I went way long into it, but I think it's important to fully answer that question because it's a great question. I think it's the right question. All right, it looks like that's what we have for questions today. So the mission, the mission: 5 PM Central on Wednesdays moving forward. So you guys are doing a morning one, 5 PM Central moving forward. I want you guys to like invite one friend. We have like 15 people on the live right now. Again, it's a beta test. I wanted to— and we're not on our usual time. So a lot of— next time we run this, I want to see 50 people on the live. Invite a friend, show up, ask questions. I'm going to share the next part of this series. The next live, I want to see 100 people in the live. And then we're going to keep growing this and growing this, growing this, and we're going to get to a point where everyone has everything they need on the live every single time. And then all the information will now live here and all your questions will be answered and you have all the information. And then the only way that you'll ever give anyone any money for anything is if you want specifically a mentor to hold your hand, to review your contracts, a community to do deals with, you want partner help raising capital, it will only be people who want the actual help because the information is now officially free and we're going to get 100% of it right here on Multifamily Strategy. If you haven't yet, please like, subscribe to the channel. I look forward to seeing you guys at 5 every single Wednesday until all of your real estate questions are answered. I appreciate you guys. I'm gonna go head on a flight out to the Bahamas. And, uh, Caleb, we'll see you next week to make this even more relatable. So it's not just Christian talking about how he's bought a bunch of properties. Uh, we're going to share some practical on how he has partnered up, how he has built his portfolio, and the tips that he has for you to start regardless of how much money you have. No one is less qualified, and I mean this lovingly, no one is less qualified than Caleb to succeed. In real estate. No money, no credit, no experience, no friends and family in the business, no contacts to raise money from, never had a job, dropped out of college less than 6 months in without the education, anything. Caleb has more rentals than almost anyone I've had on my YouTube channel ever, and he's done it by 22 years old. So if you are older than 18 years old, you have more more than $300 in your bank account, you have ever had any experience in the workforce ever, congratulations, you're more qualified to qualify, uh, to buy real estate than Caleb. You too should have more than 200 units in the next few years. See you guys soon. See you on the next episode. Join that school community for me, and we'll see you on the next episode.