How does Lou find his deals?
In his 3-day event, the Millionaire Jumpstart one of the things that Lou teaches is focusing on at least 5 ways of finding deals.
One of the five ways that Lou teaches is “Identify Your Local Target Market.”
Place yourself as a consumer within your local target market.
Start getting connected with your local beauty or barbershops, grocery stores, banks, restaurants, and all other places within your community in more profound ways that identify what you do.
As an example, Lou Brown and his group is called Certified Affordable Housing Providers (CAHP) this is their trademark brand. They are trained by Lou to become certified under this program.
As a local Certified Affordable Housing Provider, they help people to end up with homeownership regardless of credit or financial background.
In this video, Lou will share a story on how he finds a deal by being connected with his barber.
Watch this video and learn from Lou how you can get connected with your local target market. Plus, acquire skill in creating a Seller Presentation to help you gain more buyers.
Discover how to start investing in real estate at Millionaire Jumpstart.
* Money Making Secret #1: Getting Motivated Sellers to Call You! No more calling unmotivated sellers and getting rejected more times than a geek for the high school prom!
I’ll show you how for over 28 years, I’ve been able to get deals brought to me and motivated sellers hunting me down to give me their house.
* Money Making Secret #2: The Art of Structuring Deals! I’ve been doing this for 40 years and I love to share how I get sellers to give me the house, a check, and even a jet ski or two.
* Money Making Secret #3: Negotiating Secrets Revealed! I love to negotiate, just ask Matt, one of my hand-picked coaches. We recently went to an estate sale and he witnessed me structuring a deal to buy the house and contents right there on the spot.
* Money Making Secret #4: Trusts Simplified! A little confused on this entire Trust thing? Why to do it? How to do “Subject-To” safely? I’m going to show you my new fundamentals of Trusts training that will simplify the concept of Trusts, so a 9-year-old child can understand it.
* Money Making Secret #5: Develop a Plan for Success in Real Estate. The wealthiest man ever to walk the earth left clues for us on how he amassed his great wealth and kept it.
How to Help People While Helping Yourself – Become a Certified Affordable Housing Provider™
Create Your 10 Million Dollar Retirement Plan – specific formula revealed
Learn Hidden Profits Available in ANY Deal – worth thousand$
How to Take Over the Seller’s Loan with NO Money
How to Have the Seller PAY YOU to Buy Their Home – no kidding!
Buying Without Bank Loans – over forty years and never one bank loan!!
Easy Ways to LEGALLY Raise Big Money for Your Deals
Renovations – Quick Ways to Safely Make Huge Cash Now
Money-Making Management Secrets from a 40 year veteran who manages over 150 now
Accelerating Your Cash Flow – Add built-in “Profit Centers” – extra hundred$ per month
Case Studies: Secrets of How They Were Found, Negotiated and Sold
How to Protect Your Deal from Someone Else Stealing it
Legally Pay ZERO Taxes on Your Real Estate Portfolio – simple structure worth thousands
Having Tenants Leave Your Property in Better Condition than When You Gave It to Them
Why Land and Personal Property Trusts are the Best Privacy and Asset Protection
Benefits of Trusts You Cannot Get With ANY Other Entity
The Due-on-Sale Clause – What it is and How to Avoid it Legally
And MUCH More
Attend this power-packed “one-of-a-kind” best of the best training on making money in real estate investing!
Listen to our Podcast:
Hey, it’s Lou Brown. And you know, one of the questions people are always asking me is Lou, how do you find your deals? And the answer is, that I’ve got some very unique ways that we find deals. In fact, we’ve identified over 200 different ways that we find deals and we can find deals. One of the things I teach you at www.MillionaireJumpstart.com That’s our three-day training is I tell you about, you know, coming up with at least five ways to focus on. So you focus on the five. And one of the five that I teach you about is identifying your local target market. And then, thinking about you as a consumer within your local target market, there are people that you deal with ongoingly. There’s the beauty shop and the barber shop and the grocery store and the bank, and all the different, restaurants that you eat at and the dry cleaners and laundry and on and on. There’s many different businesses that you frequent within your local market.
And what I want you to do is start getting connected with those people in a more profound way that identifies who you are and what you do. Well, for example, we are Certified Affordable Housing Providers. Now that’s our trademarked brand. And people get involved with us, get trained by me and they become certified under our program. And so therefore, they become Certified Affordable Housing Providers. And one of the things I teach is that you want to get connected with your local community, because they are folks that talk to other people all the time. And one of the things you find in conversation is you find that often people are looking to sell, or they’ve inherited a property, or they’re dealing with a probate, or they’ve got a child that needs a home or a child that has a home for sale, or their uncle has a house for sale.
And one thing leads to another and suddenly you discover there’s an opportunity. Well, I have bought multiple properties by having those connections in the local community. And I’m going to share with you a couple of them right now. Now one of them is a great story because it came from my barber. Now by barber, you know, I would present myself to him occasionally and tell him who we are and what we do. And one of the things you always want to say is we are local Certified Affordable Housing Providers. And what we do is help people to end up with home ownership, regardless of credit or financial background. And we buy houses for the people that become part of our program. And so we also buy houses and many of the houses we buy are in distress. Many of the sellers that we work with don’t want to do the fix up on a house.
They don’t want to do the repairs. They don’t want to do the traditional marketing process, where they may have their property tied up for six months or longer. They may have multiple contracts that fall through. They may have all the aggravations of getting ready for showings, having to leave the house, while the house is being shown, having to clean up before people come and pick up and all that sort of thing. Well, one of the unique things that we like to presence is the fact that we can buy the house as is, we can work with the timing of the sellers move. We can make it simple and easy and hassle free. And, you know, when we kind of lay out who we are, that’s different than what a traditional buyer is. When a traditional buyer, of course, they’re typically selling another property, they’ve got to get qualified for the loan for this property.
They have to have a contract on the other property, in order to close on this property and on and on. There’s so many different issues that face a traditional buyer that do not face us. So also for a seller, it makes it much easier to work with us. So sure enough, I’m talking my barber and he says, well, I’ve got a lady that’s actually retiring and she’s going to be moving to Florida. Would you be interested in looking at her house? I said, I absolutely would. So, sure enough, he actually, because he knows her and he knows me. He makes the connection between the two of us. I go to the house and make my presentation to the lady. Now, we did some very unique things with how we do our business. So we go, oozing credibility, literally oozing credibility.
And there’s a reason for that, because the offers that we make are sometimes very creative and we want our sellers to feel comfort when they’re hearing a creative offer. So, one of the things we do is we always give gift our seller, a book, and it’s called Doing Good While Doing Well. And when I go speak with the seller, I say, well, I just wanted to introduce myself. My name’s Lou. I’m a Certified Affordable Housing Provider here locally. And one of the things we do is, to help people end up with home ownership, regardless of credit or financial background. Now I’m part of a nationwide network of affordable housing providers. And I brought you this book, so you could get more familiar with, you know, just who we are in local communities around the country and what we do for those local communities. So, I wanted to give this to you and just have you look at it, you know, after we’re done today, it’s something just to present who we are and what we do.
How does that sound? And so, you know, I’m getting feedback from them. And then now one of the things I’m going to do with you today is I’m going to make a presentation. Always have learned that you many times you have questions that you haven’t asked and things that haven’t been covered. And they come up later as a question. And I just want to go ahead and get all those questions out of the way. So, I put together a presentation just to walk you through who we are, what we do, how we operate, how we can help. And so then, I get out my presentation and this is our presentation kit. Now this is something we make available to our licensees around the country. And we give them the opportunity. We give it to them on DVD so they can pull it up or excuse me, CD, pull it up, put the company name in your name, your web address, et cetera here.
And that populates automatically on all the pages. So, when I’m going through this with a seller, I also tell you to put the same thing on the back, so that the seller knows exactly, you know, what the seller is seeing at any given time so that you can go through the process who we are, what we do, how we operate, how we can help, how we’re different than other companies out there. The types of offers we can make, what it typically costs to sell a property. So we’re educating throughout the process, how we benefit. Here’s some people we’ve worked with in the past. Here’s what they said. You know, so we’re going through these testimonials. We’re going through this entire process, types of offers we can make. See we’re educating the seller on what we need in order to make that offer.
And then, we get down to what we call our, Cost To Sell Worksheet. Now, this is a powerful, this is the most powerful invention I’ve ever created. And this is really an educational tool to help the seller in learning what it costs us to sell their home. And in turn, the sellers are learning what would cause them to sell their home as well. Because often, the sellers really have not been educated in the process and their real estate agent, hasn’t really told them all the different things that they’re going to have to be prepared for, that are going to come off of the bottom line at the time that they sell the property. So, we’re letting them know that we’re going to have some costs in the sales process when we do it. And we get down to a bottom line offer. And if that bottom line works for them, then we’re done.
We’re buying that property. Why? Because we’ve already allowed for our cost of funds, our cost of purchasing that property with hard money financing right in our offer. So, that’s a great thing. And if that works, then we’re buying that property at a really nice discount because we’re not going to have all these costs to sell. And the reason I say that, because another part of what I teach is to already have your customer in play, already know what their down payment will be, already know what they can afford on a monthly basis. But, that’s not always true. And your buyer may not like this particular property. So,, we already know that we may have a cost to sell in this process, whether it be now or whether it be later. So we’re allowing for understanding that, in the process. Now, we get down to this bottom line.
If they liked that number, great, we’re buying the house. They don’t like that number though. We go back to what our cost of funds is, and that’s our hard money financing. And we show the seller what we’re spending there. And we show the seller how we can give them that money, if they will be the bank. So, we’ve got some very creative ways that we’re going to make this offer to the seller. Now, the story I wanted to tell you is my barber connected me up with this lady that was planning to retire. She had some land in Florida that had been given to her. She had inherited it from her husband’s family. Her husband had passed away. And in that house that she was selling, that she had a lot of memories there. She didn’t want to stay there in retirement. She wanted to move to Florida, build a house on this property.
Well, sure enough. She had some funds to actually go ahead and get started on that property in Florida. And this was kind of like the last leg of the process because that house was almost finished and she had to sell this house. Well, she had a couple of options. She could sell this with real estate agent, but the house needed repairs, that needed updating. She had lived there for years. She had dogs. She was a smoker. And you know, there’s just a lot of things that would need to be addressed, if that house was going to sell for retail. So, we came in and I definitely went through that process that I just went through with you, got down to a final bottom line number and she said, I was expecting a lot more for the property. Well, we started out 195,000 as the after repaired value, the asking price because she knew what the numbers were in the neighborhood.
I had done the comps, I agreed with her numbers. And so therefore, we started out the 195, but by the time we were done with all the costs to sell, which included paying off her two mortgages, she had a first mortgage and a second mortgage. Then that was going to bring the offer down to $113,000. Well, she didn’t like that offer. That was the cash offer. And so I then said, well, you see these numbers up here. This is what it costs us to be able to obtain funding, to buy it for all cash. But what we could do is take over your existing financing and I could actually increase my offer to you. So sure enough, I laid the whole thing out for, and we were able to buy that property. Now, there’s a few things that happened in that story.
I’ll just share with you, because one of the ways that I love to acquire properties and this started way back in 1982. Well, even before that, when I bought my first house, when I was 18 years old, I was able to take over the existing financing on the property. Now, back in that time, you could come in and take over a loan for $45. It didn’t matter if your 15 years into a 30-year mortgage, you just stepped in and start making the payments and continue out that 30 year loan. It worked fantastic until the banking lobby got involved and got some senators involved. And they created a new law, that gave the banks the legal right to put the due upon sale clause in the mortgage would meant when a property sells, boom, you got to pay off the loan. And now, why that distinction occurred?
There’s no good reason, right? Because, if you could come in and take over an existing loan, it couldn’t be better for either party, right? Because it makes it easy for the seller to sell because there’s already financing in place, easy for the buyer to buy because there’s already financing in place. So, It’s a really streamlined way. But of course the banks didn’t love that because the banks weren’t making money off of that, the banks love those origination fees. They love those new loans and they know the numbers. They know that typically alone, something’s going to happen within seven years, typically. Somebody’s going to move. They’re going to pay off that loan, get a refinance. Something’s going to happen in that loan and the banks get the restart, the clock, and now charge that new financing costs as well as a new 30 year loan.
Well, I discovered that you could bypass that process by the seller places their property into their trust, and that we could take over the existing finance. So I proposed an idea to this lady and I said, well, there is another way that I can increase our offer. And you see this cost of funds up here. I can go ahead and give you that money that I would have given to this third party lender. And I can increase my offer by the difference between what your payments are and what the financing would be to that third party. Sure enough, I showed her the numbers and that increased my offer by $20,000. So, it was a really great increase in what I was able to offer her for the property. So sure enough, she agreed. And I was able to work with her, placing the property into trust.
And then what we purchased is instead of buying the real estate, we bought the beneficial interest of the trust. And so in buying that beneficial interest of the trust, now there’s some things that you’re going to have to learn in this process. One is the presentation process, but the second is if you’re going to be creative like this, you’re going to have to learn about trusts because that’s the only thing that really protects you from the lender calling the loan due-upon-sale. So, when they bypass that, through placing it into their trust, that’s one of the ways that you can be creative on how you purchase the property. So the question becomes, is this a good thing for the seller? And the answer is you better believe it is because now the seller can sell quickly. The seller doesn’t have to do all the fix up.
The seller doesn’t have to go through the pain and suffering of the traditional sales process. And the seller can move on with their lives. Now, sometimes sellers are in distress. This lady was not in distress, but sometimes sellers are in distress and that’s a big deal. So now, they have to deal with this distress that they’re in. And sometimes they’re behind in payments. So, the fact that you come along and reinstate that loan, the fact that you come along and make payments going forward, that actually helps the seller. It does not hurt the seller. It helps the seller to reestablish their credit and right their ship, so to speak and get themselves in a position to now go move forward with their lives. So you’re actually, a saving grace and a salvation for them. Now, the key is that you got to make those payments.
The key is that you got to do what you said you’re going to do, and absolutely don’t even buy the property unless you do what you say you’re going to do. So sure enough, I propose that idea to this lady. And so we’re in the process we’re talking. I said, so by the way, what do you do? She says, well, I’m a paralegal. I said, Oh, you’re a paralegal. That’s interesting. And I said, so what do you do? What type of legal work do you do? She says, Oh, litigation. I said, Oh, that’s fascinating. So I said, where do you work? And she named the largest law firm in the Southeast. She named a very large law firm that I happened to know exactly who they are. Cause I do business with them as well. And I said, Oh, that’s very interesting!
And she said, yeah. And I said, so you do litigation, you’re a paralegal. How long have you been doing that? She said, 42 years. I said, son of a gun. So I’m thinking in my mind, man, this deal is not going to happen unless you runs it by some of these attorneys and these attorneys are going to have to give her all the reasons this might go wrong, instead of right. I said, I don’t know this is going to work out or not. So I’m talking to myself in my head. And so I said, well, if that works for you, that works for me. I’ve got some paperwork here. This is our purchase and sale agreement. And as you can see in here, it does allow for subject to, so I’m buying your property, subject to the existing loan. And in fact it’s going to be a trust buying your property.
And that trust is what we’ve discussed about. You placing your property into trust and we’ll be able to take over the beneficial interest of the trust, once you place it into the trust. And that’s the way that we can bypass the do- upon-sale clause in your mortgage, does that work for you? And she says, well, let me study this. Let me see if, I agree with this. So I went through the terms of the agreement and she said, yeah, I like this. So she signs the contract, she signs the purchase and sale agreement. And I said, great. All right, well, she didn’t say the words. I need to take this. I need to run this by the attorneys. She didn’t say anything like that. I’m thinking, okay, she’s a smart cookie. She’s been a paralegal for 42 years. She knows what she’s looking at.
So I said, that sounds pretty good. And she knows what the risks would be. So, she doesn’t really need to run it by any attorneys. So we go about preparing the paperwork and doing the things, getting the title work done. And we checked out the title, everything was fine and she didn’t have one loan. She had two loans. She had gotten some additional financing along the way. And now she was making payments on that one. Well, I saw the opportunity. Why pay off that second mortgage? If I could take over that existing financing, that was that much more cash that didn’t have to be raised on a deal. So sure enough, went through, did exactly that discovered that sure enough, we could take over not the first mortgage, but the second mortgage as well. And, so that’s exactly the way I laid out the offer.
She signed off on that and then we did the paperwork and purchase that property. And she is a happy, happy, happy, happy camper. I even told her. I said, now, if you want to take your toothbrush and leave everything else, we’ll take care of it. And that’s one of my favorite sayings to a seller, you know, because they’re thinking of the burden of dealing with everything in and around the house, getting it ready taking everything, throwing things away, all of that stuff. And I says to her, you can do whatever you’d like to do. I’ll do the rest while she was on board with that one baby, she was absolutely on board. And she took what she wanted and she left the rest. Well, what did I do? I now offered that to one of our Path to Home Ownership Clients and sure enough, that client came along and I said, well, now there’s one of those massage beds up here.
I think one of the controls doesn’t work, but maybe you can do something with this. And I said, and then there’s the sofa down here. And this chair and there’s couch and there’s these tables. And so on, you know, you can just have at it, you can have anything or everything in the house. And sure enough, they took the house as is with everything in place. So, I didn’t end up having to do anything with the furniture that my seller left behind. So who’s happy in this transaction. The answer is everybody. Everybody wins, right? The seller wins because she was able to move on with her life. She didn’t have to deal with the traditional selling process. She didn’t have to deal with a listing. She didn’t have to show it to anybody except me. We made a deal that worked for her.
She was happy with it. I was happy with it. And everything’s been fantastic ever since then. So there’s an example of, I would never have met her. She would have never met me, if it had not been for that barber. My relationship with that barber and sharing that particular story with that barber and the fact that we can do many things. So him understanding who we are and what we do is the reason that he was able to bring this to the table. Now, what did he did? He get out of this transaction. Well, typically I only offer, if somebody is just going to give me a lead, I give them $250 that meaning if I buy the property, they get $250. But in this case, because I was able to buy that property at such a great deal, taking over existing financing and the markup on it was tremendous.
We sold it for $230,000. So we made about a hundred thousand dollars on that particular property. Now imagine a deal that never made it to the market. Nobody else ever saw it. And my buyer was the only person that ever saw it. They came in liked, it took it. That was the end of it. That was never the traditional selling process either. So think about our unique way that we buy properties. Think about our unique way that we connect with the market place. Think about our unique way that we present to the seller. Think about our unique way that we educate them through the Cost To Sell Worksheet. Think about the unique way that we exit that property with our new buyers coming in and taking it as is and earning credits towards their down payment. So we have a very unique buying and selling proposition.
As a result, we’re able to do things that traditional buyers and traditional investors are not able to do. So consider this, as a solution for you and as a possibility for you. So if you love what you’ve just heard, this is a way that we’re able to solve problems and make a lot of money. If you love the idea of working with us, I’d love to have you come to my next www.WealthBuilderWorkshop.Online And another thing you might want to do to accelerate your process, maybe you’re getting ready to make a presentation right now. We do have this presentation kit available to you, and I’ll have a link down below, so that you can have access to this entire presentation kit. And it’s a bargain of a lifetime, that now you can be able to take advantage of so many good things that we have created over the years. That are very unique in the real estate business. Now, I make it extremely easy to get involved with us because your presentation kit on disc is only 99.95. And you go ahead and purchase that right here on the site, get yourself registered. We’re going to include The Wealth Builder Workshop as part of that deal. So you’re going to get an all day training as part of it, in addition to all the other goodies and bonuses that I’ve got there as well. So, I look forward to seeing you soon. Yeah, baby!