Do Your Techniques Work During A Recession or Depression?
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Read Transcript for “Do Your Techniques Work During A Recession Or Depression?”
The real estate investing system I teach works no matter what the condition of the economy is. In fact, a struggling economy is the perfect time to use it – let me tell you why that is and how it works.
“Do your systems work under the current market conditions? I’m referring specifically to people having less money these days to buy houses and fewer mortgages being made, or maybe the difficulty is all in my mind?” – Hamaro Castagno, Laredo, Texas
Joe: No, it’s not in your mind. It’s definitely happening. There’s definitely a problem here. We are in a recession. The market housing crunch is here. The mortgage crunch is here. People can’t buy properties; there is a problem.
Joe: But, this problem in the economy has made a unique opportunity for what we do. Now, we’re in the perfect storm for investing the way I teach, using no credit, no down payments, seller financing – these are the things that work right now.
Joe: One of the reasons it works is that there’s more people who can’t sell their property and more people who don’t have much equity to pay a realtor, so it makes it easier for them to be willing to sell to you seller financed. They have to make payments and if they’re not living in it, then they’re going to go into foreclosure, or they’re not going to be able to move, so you can take over those payments for them and take it over with “Subject-To”. So, there are lots of great opportunities.
Joe: This is also a great way to sell properties because there are so many people now that can’t get mortgages because they don’t qualify. The old stated income loans are gone, the BC paper for bad credit people, etc. – those are gone – most people have bad credit and don’t qualify for a mortgage, so that makes it possible for you to find lease option buyers.
Joe: They’re *everywhere*. It’s so easy to sell a lease option property these days. Now, that doesn’t mean that we’re not having more vacancies. We’re getting more vacancies in some of the rental properties we have simply because people are losing their jobs as well and they can’t make their payments, but then it’s easy to fill them again.
Joe: So, you have some of them that are good and some of them that are bad. If you’re holding the properties long term, you’re going to have a few more vacancies these days. If you’re just flipping them and taking the cash, you can make that happen all day long. But you also want to keep some of these properties, because that’s going to make you rich in the long run. The cash flow is nice; it gives you a great lifestyle and you can make a lot of income and a great hourly wage.
Joe: With most of my students, when they’re working at this and they’re being successful at it, they’re making $2,000 to $5,000 an hour at it. They’re working 10 to 20 hours a week doing this as a full time job and making twice as much money as they were making at their regular job. You can make a great income with this.
Joe: But if you want to get rich at it, then you have to keep some properties, and that requires a little bit more risk, because there’s a possibility that you might have a vacancy and might have to make a payment, but if you’ve got the income coming in from the cash flow and the other part of the business, that’s not going to be as scary for you; it’s going to be a great investment for you.
“I appreciate your time reading my question. I want to let you know that I already have your first book but I don’t feel confident enough to brave the streets of Laredo on my own and to start doing offers without someone who could help me through the first deals. I feel insecure because I think there’s so much that I need to learn. I’ve gone to the point of doing the cheap signs, the ugly signs, and gone to the neighborhoods that I plan to work in, but I’ve not worked up the nerve to put them up yet.”
Joe: You need to do that. Put out those signs. Just see what kind of calls you get, even if you don’t answer them. See what kind of calls you get – you’re going to get flooded with calls. And it’s going to be very exciting because you’re going to say, ‘Oh, what do I do now?’ It’s going to give you some motivation to go to the next level, and if you start calling these people, it’s going to get you motivated to go out and find a seller.
Joe: The thing that you should do first as an investor, if you’re just getting started, is to go out and put some deals together. Use the “For Rent Method” that I teach. The “For Rent Method” is so easy. You just go out and ask people that have their homes listed for rent and ask them, ‘Instead of renting your property, would you consider selling it rent to own?’ According to the statistic that we have, one out of three of them will say yes, and then you go out and you get them to sign a lease option memo so that you become a principle (if you don’t have a license you have to do it this way) so that you can sell it as your own property.
Joe: Then, you go out and find a lease option buyer, take the lease option fee, give the first month’s rent to the landlord, you’re in and out of the deal, the buyer’s happy because they’ve got a lease option property they couldn’t have bought any other way, the seller’s happy because they’ve got a tenant for their property and maybe somebody who’s going to pay them full price for the property, and you’re happy because you made a chunk of money and then you can go out and do it again and again and again.
Joe: It’s a great way to get started, and when you start putting signs out, it’s going to make it happen. You gain confidence by doing it. You’re going to be uncomfortable at the beginning – there’s just no way around it – you’re going to sound like an idiot on the phone when you talk to these people and try to explain to them what you’re trying to do. But as you do that, that humiliation is probably good for you because you’re going to get off the phone and you’re going to feel bad and think, ‘If I could have said this,’ or, ‘I could have said that,’ or, ‘Joe told me to say this,’ or, ‘I remember them talking about that on his conference calls or in his audios or at his buying event and I should do it this way this time,’ etc.
Joe: If you come to my “Two Day Buying Event” that’s coming up, which is only for my mentor students, we actually have you on the phone, talking to sellers and doing offers. But I don’t put you on the phone until we do a role playing process where we go back and forth and I put you in and break you up into groups so you can get used to saying the words. I tell you what words to say but I want you to get comfortable saying them. I want you to get comfortable with the responses that you need to make. That’s all it takes.
Joe: Also, I would recommend that you find a mentor. I think my program is excellent and it would probably work for you – if you do the work I know it’ll work for you – but you don’t have to hire me – you can go get another mentor or somebody else who knows how to do this and then learn from them. If you have that person in place, you can call them up, send them an email or send them your contracts. You can get on my conference calls with me, you can come to my events, you can learn how to do it and you always know that no matter what you do, you can come back to me and say, ‘Alright, here’s the problem I’m having,’ or, ‘I think I screwed up here. What do I do to solve that problem?’ or, ‘Am I in danger here?’ or, ‘Did I make a big mistake?’ or, ‘I’m not getting enough leads,’ or, ‘I’m not getting this. I’m not doing that.’
Joe: What I love to hear is, ‘Hey, Joe! I just did my first deal! I just made $10,000. I’m on my way,’ or, ‘Hey, Joe, I’ve done 10 deals. I’ve done them consistently and I’m quitting my day job and I’m doing this full time. I’m going to be able to work 20 hours a week and I’m going to be able to make a six figure income and hopefully I’m going to start keeping properties and I’m going to get rich eventually.’ These things will happen if you follow through with this process.
Joe: Most of the people that come into my program want to be rich, but really, it’s about the lifestyle, it’s about having the things that you want and being able to live in your terms and time frame, being able to work the amount of hours that you want to work and knowing that you get paid for what you produce. Not because you put in the hours – it’s not about the hours – you don’t have to do many hours and can still make a great living.
“I’m avidly reading your newsletter. I think there’s extremely valuable stuff there. And I find that the videos that you produce and the recordings are very full of information and inspiring. I read through all the testimonials on your website in a weekend.”
Joe: Don’t just read them; watch the videos, listen to the audios – the website you can go to is JoeCrump.com/partner/casestudy.html. Go to that site. There’s a bunch of videos there of people, and not just about them saying what a wonderful guy I am – they also tell you what they did to get started, how they got their first deal, how they got their business running, how they’re making money – these are things that you can learn from them as case studies by example (and then you can also find out how wonderful I am as well).
“I remain a fan of yours. I’m currently saving to purchase your mentor program and I’m hoping to become one of your students this year. As I said, I appreciate you a lot. There should be more people like you helping others help themselves. I wish you and your family a good holiday.”
Joe: Thanks, Hamaro. I appreciate it. Hang in there, and move forward. Take action on what you’re learning here. That’s the only way you truly learn this business – to actually do it. You need to have some guidance to get started, but when you start doing it, that’s when you make money. Alright, good luck!