I Just Made $20,000 Lease Option Fee On A $200,000 House
Tony Hunt – Omaha, Nebraska
I believe the best way to learn the business of real estate investing is to hear how others have done it.
When these interviews were recorded, I asked Tom, the interviewer, to ask questions that would help the viewer see how these folks got started.
I wanted to hear the struggles, the successes and a clear path and explanation of what they had to do to make these deals happen.
I did NOT want them to be a bunch of people telling you how wonderful Joe Crump was. I wanted content, examples and real life experiences.
I hope we succeeded.
My 6 month mentor program:
A few Case Study Video Interviews with my Students:
I just Made $20,000 Lease Option Fee on a $200,000 House
Tony: My name is Tony Hunt. I’m from Omaha, Nebraska. Actually, I heard about the program from doing my diligence at another program, looking for subject to deals and found Joe on YouTube and never looked back. I’m big on testimonials from real people and I was hearing how people were starting from humble means, like, myself, and having success and it really motivated me and encouraged me to give it a try and putting feelers out there and getting a good response.
Tony: I did my first deal within the first forty-five days and you want to know how it came about?
Tony: Okay, well, I made $1,500 and I was very humbled by it because someone had called me from craigslist and met with them, a husband and wife, the wife was a manager, or employee, at McDonald’s and the husband was a janitor. And they said they didn’t have much money, but they wanted to know more about renting to own. And so I met with them at the public library and I had them on a house and it was $3,000 down but that was a little much for them. And the house was ready to go and everything. I didn’t want to lose the sale, so I stayed in touch with them over the course of another week or two and the daughter, oddly enough, their teenage daughter, went to my clone site and really liked another house that was maybe five minutes away. And of course I showed them the house. It needed tons of work and it, total rehab. But they still wanted it. And so what I did was, I put them under contract to where they paid for a three bedroom, one bathroom, house, they paid $1,500 down, they paid $700 the first time, then half, first time, and then half in another two weeks was initial. And the reason why they really wanted the house was really humbling. They wanted to be able to see their elementary school age children walk to school. They could see from their back door, watch their kids walk right to the school do and I thought, oh, well, how neat. Because the teenaged daughter was home schooled and the kids were going to public school. So pretty protective family and these days I understood that. And they only pay $325 a month, half of that is rent and the other $162.50 goes towards buying their home and that was a year and a half ago and they are now home owners. They’ve got to fix the furnace, electrical, whatever it needed and they’re homeowners and I’m really proud of that and I made $1,500, $1,500 richer than when I started for almost doing nothing but showing a house.
Tony: Maybe two hours? Just sitting down, walking through the house, filling out papers, counting money with them. No more than two hours. Two hours at the most.
Tony: Whoa, interesting. The best deal so far, I guess is relative when it comes to “best” but I just made $20,000 on a house. A beautiful four-bedroom house with three bathrooms, yeah, three bathrooms in a middle class to upper class area and it’s a $200,000 house and 10% down. I wanted $20,000 down and they gave me $10,000 and they gave me the second $10,000 a week later. And they have the keys and they’re moving in and there’s two young people, two rehabbers, oddly enough, two young men who have plans to, they don’t need to rehab, it’s just a nice house, and they’re making money and they know it’s worth it. They did their own inspection and it was a referral and I feel really good about helping the younger generation become homeowners.
Tony: It just went up because of this past deal, but I’d say more often than not it’s usually between$5,000 and $7,000 per deal. You know, and I do two deals a month. I’m pretty okay.
Tony: Numbers, and my attitude towards the numbers. The work ethic that it takes to find deals is crucial. It has to be a priority. If you have an attitude of, if I call and advertise and push and show sincerity, and get my name out there and join REA clubs and treat it like a business, and not a hobby, that’s what I think is bringing me success.
Tony: I’m actually in that process right now. I’d like to leave a legacy for my grand-nephews, nephews and nieces. I raised my nephews and I want to leave a legacy with them of helping other people and not so much worried about material things and money as far as — it’s important — it’s right up there with oxygen according to Les Brown. But I’d like to leave a legacy with them of helping people and the money will come if you’re sincere in wanting to truly help people in their situations then the money will come and real estate, in my opinion, is the best vehicle to get you there financially, and you can do the things that you really want to do in life.
Tony: Well, I’ve been able to employ family members and that’s been really, for tax benefits, for their self-esteem, and for my heart to show that I care. I left Omaha, Nebraska, with a couple of houses that needed cleaning out and I know that family have taken care of them. They were a mess. People who had just left the house in shambles. But I still got the deal, took the house, they’re cleaning it out and they sent me pictures and it’s cleaned out and to see family members salivating, waiting to get their cut of a check, it’s kind of nice to be in control of that. They don’t have to ask me for any money because they’ve earned it. It’s kind of nice to see family members believe in what I’m doing and groom them, that generation, to follow in my footsteps.
Tony: I have a current job but I don’t look at it as a job. I work with adult men with mental disabilities and it’s kind of my ministry, if you will. So I’d be doing this regardless. I like to help people. I help adult men learn how, life skills, from shopping to hygiene, to being functional in society, how to dress, how to respond in an interview, things of that nature. So that’s, it’s part time. It’s, I don’t even count it as a job. It’s something that, I also volunteer at a homeless shelter, so that’s kind of a job, but, not really. It’s my way of giving back and keeping me humble. And it’s like the more I volunteer, the more deals I get. I don’t know how that works, but, people know that I’m in real estate and they see my vehicle and they hear about me and then they see me serving food and they go, “Hey, this guy’s looking for a house.” So it kind of works both ways.
Tony: I enjoy it. I enjoy, I’m a people person. I like the interaction with people. The interactions are ninety-nine percent of the time positive and a learning experience for a potential tenant, a potential buyer, a potential seller and myself. So I like that interaction where I get to educate and get educated. And the time. There’s just so many people who are looking for houses, looking to stop renting. To become a homeowner. So that’s a fulltime, just getting the word out. Just telling people what I do is bringing me a tidal wave of business as people just can’t, I pretty much advertise Facebook and let people know through YouTube or word of mouth. I even have my vehicle wrapped with the business, my website is payingrentisnotcool.com and I get a little chuckle when people say, “Paying rent is not cool,” when they look at my car.
Tony: And then that’s my squeeze page and then my actual website is youpayingrentsucks.com and that’s, that alone, I get honks and calls and in boxes and “what’s that about?” and go to the website and it kind of goes from there.
Tony: Personally, push a button. I just pretty much pick what I want to text, voice mail, email, and I blast it out there to people who are potential sellers and they respond and I’m on the verge of needing an 800 number because my phone gets filled every day. So that, the automation is awesome. I’m looking at going to the next level of hiring a virtual assistant and training them to kind of do the day-to-day qualifying tasks and that way I can look for more deals.
Tony: I’d say that’s a good question and I love to tackle those types of questions. Number one, I say, attitude. You can want all you want, and it’s kind of like, the person that kind of sits in the, even if you’re going in the right direction, and you just sit there, you’ll still get run over. So, you have to execute and I like to look at it for new people to kind of view it this way. There’s four “E’s.” Evaluate your situation. Financially, are you really where you want to be? You know, what’s your life like? Is it in the toilet? Do you know you can do better? Are you getting paid what you’re worth? So, evaluate. Do a real get honest, come to Jesus-type thing. Say, “You know, my situation is not improving with what I’m doing.” And the definition of insanity is doing the same thing over and over and over and over and expecting a different result. So if whatever’s working for you, what you’re doing right now is not working for you, that should be part of your evaluation.
Tony: Secondly, I strongly encourage people to eliminate negative people out of their life. Negative situations, negative — there’s so many people that will tell you you can’t do it. You don’t have a license. What do you know about real estate? That’s just a scam. You saw it on TV. Or, I tried it. You know, people have all types of reasons that they will throw marbles at you and kind of hope you fail. And listening to them, you’re setting yourself up for failure. So I say, in my second “E’s” is, eliminate the negative people. You just don’t need the dead weight.
Tony: And then thirdly, of the four “E’s” you can evolve as a person. You know, now that you’ve evaluated your situation, you know you can do better, you know you deserve better, and then you’ve eliminated the negativity, you can now evolve and be who, the person you want to be. You can grow, expand, do deals, be happier, take flight and go.
Tony: And lastly, execute. If you don’t execute, anything you’re thinking about or writing down your goals and then doing them, it’s not worth a hill of beans. You’re just spinning your wheels if you don’t take action. So execute your plan. I say, do it. Get out there, get a, make a lot of mistakes, get a lot of no’s, learn from them, and go forward. So I really believe in those four “E’s”, evaluate, eliminate, evolve and execute.
Tony: Well, pretty much covered it. Just, I, if I could put a button on it I would say, I’ll give you a short story. Well, maybe not short story, but, I ask people to try to get a shot to the heart and ask them to get honest with yourself and are you comfortable with where you’re at? And if you’re comfortable, stay there. The average, the law of averages, or Prado’s Rule, eighty percent of the people out there are going to be slackers, lazy, make excuses, or blame someone else. And the quickest way to failure is to not take responsibility for your own actions, to blame other people and to complain.
Tony: And all that energy could be better put to use by taking action and doing it. And it’s not about you. There’s someone you love that’s going to benefit from your success in real estate. If you have children and grandchildren, a spouse, a relative, a parent, sister or someone — there’s someone who needs you to succeed in what you do. You’re obviously okay, emotionally, mentally, physically and even if you’re not okay, at least you’re thinking about someone else which alleviates what you’re not okay about. If that makes sense. So whatever your situation is, that might be kind of bothering you, well, get off of you, and think about how you can help someone else in your family, or outside your family and the plum has to be big enough for you to go to work. If it’s, if your love isn’t that great, if your care isn’t that strong, if you’re not that concerned, if you’re kind of ho-hum, wishy washy about it, then stay lukewarm. But as for me, pour some fire on me and watch my burn. Suggest you do the same. Boss up, level up, I’m out. Peace.