BTM148: The Screening Process for Profitable Tenant Buyer Strategies with Paul Ritter
This is Doray. And you're listening to the before the millions podcast episode. One Forty Eight. You ready to be the master architect of your life. Are you ready to design Your Business and invested needs that create the lifestyle? You've always dreamt up. Are you ready to learn from entrepreneurs and millionaires? Who achieved a certain level of success? Hey this is Derek Location Independent Entrepreneur. And you're listening to the before. The millions podcast. I am Gina Lofton. I am an investor. And you're listening to the before. The millions podcast. Hey there my name is. Heather Haven would marketing coach and global entrepreneur. And you are listening to the before. The millions podcast. Hey this marcus crispy host of the seven minute mentor. Podcast global entrepreneur and all round Geek. And you listen to the before. The millions podcasts. I am MC Laubscher the cash linenger. And you're listening to before the million spot costs you're listening to the before the millions podcast a whether you're looking to invest for cash flow or built an online business that allows you to be location. Independent you come to the right place. Mr Hollywood himself presents the before. The millions podcast. Now you're rose derain what did you. Btm tribe welcome to this brand new installment of the before the millions podcasts. Guys I am so excited for this week this week. World launching guys were actually launching. It's been a long time coming up. Talk about this more a little bit later but right now I want to get to the business at hand because this may be an opportunity for you to take advantage of a very slept on strategy and the real estate world eighty percent of people today cannot qualify for a mortgage if they just walked to the bank and applied for loan and want us get a new home eighty percent of people they would either need a few months or a few years of seasoning they. We need to improve their credit score that we need to get their debt income ratio to balance the right way. I mean there's small little and sometimes even big things need to change in order for many people today to get approved for loan with that being said guys that provides a massive opportunity for you as an investor to take advantage of so typically as a real estate investor. When you get a property under contract with they date to close on this property in the future there are few options as to how and if you should close on the property and this all kind of depends on your real estate investing strategy not only the strategy that you use to acquire the property but also the strategy and wish you implement to exit the Property. So let me explain. Oftentimes the average real estate investor is investing for a lump sum cash which are massive pay-outs maybe like a fix and flip or a wholesale or cash flow which is monthly reoccurring revenue. Something like our rental property so when you get a property under contract you have the ability to either perform something. That's GonNa make you a whole lot of money up front or something that's GonNa pay you many over time. So the vehicles that pay a whole lot of money up front and our risk free or vehicles like wholesaling because because you're signing your rights to a contract that you have what they seller before needing to close on property and you have little to no money in the deal this is what makes it as close to risk free as possible and ultimately when you wholesale a deal to an investor. You're actually assigning your contract to buy the property to that investor these types of investors. In which we you'll be a sign of your contract to are often fixers and flippers an order for a fixture on flipper to make money off of a wholesale contract. They need to have bought the property at a deep discount. So far below what the property could be worth if it was all fixed up now typically investors like to buy properties at between sixty and seventy percent of a RV the after repair value so the potential value of the property once-off extent sixty and seventy percent. Maybe even seventy five percent in some markets for rental property investors as opposed to fix flippers. These investors they're okay with seventy five percent maybe eighty percent eighty five percent of the after repair about you reason. Being is now the typical homebuyer. The traditional buyer is going to want to pay between ninety percent and one hundred percent of the after repair value. So if you know your extra Yuki leak and look at your deal and already start to understand. Who's the perfect and by your. Who's the perfect investor fixer and flipper for this particular deal based on what the number? Shakeout to there's a fourth category of property buyers there are not fixing flippers or not rental property investors do not even traditional home buyers these individuals they cannot qualify for financing today in the traditional sense that cannot walk into a bank and get a loan for a property that they want to buy so oftentimes what they do is they will wait in rent until they're able to qualify now. We're not going to get into all the specifics today. Because we've covered covered this on a few previous episodes but an essence getting a property under contract and marketing to those types of buyers allows you to sell a property at full price to a RV or even a little bit over what the property is worth so in terms of why these buyers which Beca- tenant buyers on a rental own program or on a lease purchase program. The reason why they would do that is going to all be explained on. Today's episode now. These payouts their way larger than wholesale. So if you're making five ten grand on a wholesale you could be making forty fifty sixty grand on these type of assignments and the cool thing again about these. Assignments is because it's an assignment. You're not actually closing on the property there just as risk free and just as lucrative so this is why. I don't fix him personally. Because I make fixing and flipping type of income on a strategy that is a lot less time intensive and way less money intensive and this is just one of the few strategies that compromise the motivated segmented and in my upcoming masterclass which you'll get details on the tip of the week. I'm going to break down my entire model all of my strategies and show you why it's the most effective in the Biz Labatt's the tenant buyer strategy. I want you to know that. This is not just for assignments if you own a property now if you decide to owner property in the future if you decide to take down a property with one of the strategies under the motivated settlement that like owner financing again another strategy in which you can buy a property none of your own money. This is more of a cash flow strategy. But let's just say you decide to sell which actually turns out to be a better option than just attended by our assignment or just an owner financed when you combine. These two magic really happens but let's just say again just for simplicity's sake that you decide to sell you don't have to sell to an investor you don't have to sell to a traditional buyer you can sell to again a tenant buyer and the reasons that you may want to sell to a tenant buyer is because you're going to be able to make way more money if you're GONNA be able to price the property for a higher amount than you usually would be able to do. You're going to get to experience some tax benefits able to avoid some of those capital gains. Maybe you no longer want to be a landlord and instead of landlords and tenants if you put a tenant buyer in that same position that time it would have been in with the idea that they're going to purchase the property in the next two years. Well they're already activists the buyer today. So there's no hey. Landlord come fix this conflicts. That no they are the buyers and they are responsible for all of the repairs and maintenance on the property so you you're no longer landlord pursuing the strategy. But you're still collecting the same rent if not more rent than you would have as a landlord while achieving a higher than normal sales price also. The street is good as as an exit strategy. If you just don't need the money right now if you just need somewhere to put your money habit have it working for you. It's a great strategy to make sure that you having your arsenal regardless if you're doing assignments or if you're taking down properties and you're looking to offload some of your properties that's enough of a teaching lesson for Today. I will cover the entire how to find tenant Bairo strategy and the rest of my strategies on my master class. And I'll talk more about where you can sign up for that on today's episode interviewing Mr Paul Ritter and I have the pleasure of doing business with Mr Paul Ritter. Paul runs a credit check. Background and prescreening company so in essence they do a lot of the heavy lifting when I find my tenant buyers the entire process that tenant buyer goes through just like the regular tenant process when you're making sure you're putting the right tenants in your units. There's a very similar but more stringent tenor bioprocess. To make sure that you're putting the right by your and your units to run out for the next few months until they get mortgage qualified. So Paul's team. They actually do something that most credit repair companies and most prescreening companies don't do it all they cater to the needs of an investor. We're going talk a lot about that on today. Show and why I use him and his wife but just as a sneak peek. One thing that really differentiates Paul and his company from a lot. Our the credit repair company. Is You know you may get results from another credit repair company in an hours or even minutes because they're just going back and all the databases and they're taking a snapshot of Ten buyer's credit history. Anybody can do that. You can do that yourself. What Paul and his team does is. They actually give you a report. And it takes three or four days for them to get back to you with this report because they're crunching numbers and they're looking at other factors. That don't necessarily show up on your credit report to determine when your tenant buyer is going to be mortgage ready and I find this end valuable because it helps me put together contracts right way. They're super hands on. They pick up the phone for any and everybody who has question so again they will walk. Your tenant buyers through the entire process misses a great automation slash outsourcing mechanism for me and my business and also my coaching clients. So when it comes to pre-screening getting attended by your mortgage ready over the course of the next few months to years. I leave all of that to Paul and I just make sure once that is done. I put in the ten in Bahrain on my property. I start cash flowing or sign the property that I got under contract to attendant by and I get a large lump sum payout meanwhile the original seller of that. Do they start cash flowing which is awesome but they also get paid way more than they would have gotten on market and often times a lot of others that I get the of these types of transactions disgruntled sellers who took their property on the market with a realtor and it wasn't able to sell and then we're able to sell their property not only in a faster time but also for a much higher price and we collect the fee for doing that. So it's a win win across the board and I can't wait for you guys learn a little bit more about this process. So let's get to the tip of the week and then let's actually get to talking with Paul about his business and how everything works of the week okay. Good tip of the week is to tell you to explain to you to iterating to you why it is imperative that you join me on my brand new life. That's live live master class and this master class is called four keys to building a lifestyle business through real estate and to reserve your seat head over to before the millions dot com forward slash masterclass guys only going to be exactly one hundred fifty seats available. I guarantee you do not want to wait till the last minute. Just head over to before the DOT com for slash masterclass and sign up for the class. Now here's some of the things that you're going to learn this masterclass you're gonNA learn two of the most profitable strategies in real estate today again. Some of the strategies that I mentioned in the intro strategies that dramatically cut down your risk and that can still be utilized with no cash credit or banks. You'RE GONNA learn the key. Shift that disconnects your time from your income. And this is the shift that really enables for investors and entrepreneurs to create what we like to term a lifestyle business you're gonNA earn the highest converting approach to closing deals with motivated sellers. So this is going to reduce the achey feeling that you get when it comes to get in on the phone or talking with sellers or putting yourself out there It's not GONNA be a sales conversation. You're going to learn how to serve a seller and create a profitable real estate transaction for yourself. You'RE GONNA learn the single most effective way to become a real estate investor and twenty twenty and then. I'm also going to show you why this is important to do right out of the gate if you're just getting started it's going to help you stay motivated throughout Your Business Building Journey. So you absolutely do not want to miss this masterclass. It's alright before the millions dot com for slash masterclass. And then when it's all said and done when it's all wrapped up when you've learned a ton of massive information you using your real estate business moving forward we're gonNA have a nice intimate session at the end where I'll be answering all your questions for the rest of the night so this is an opportunity. That again will not come very often. You WanNA head over to before the millions dot com forward slash masterclass. And if it's just for us to talk strategy at the end of the masterclass to talk about the questions that you have talked about the deals that you're currently going to right now. It is well worth your attendance bet before the millions dot com slash master class. Now let's get to the show and now your feature presentation. Welcome to the show. Mr Paul Ritter von say well thank you derail and thank you for the warm welcome. I'm looking forward to give him some good information to the bt 'em tribe it should take me back to the first thoughts of. Hey I want I want to start building I WANNA start doing. I WANNA start serving people in a different fasting when when did come from the spots are having i. I am like the ultimate entrepreneur. The day I graduated college I knew that I was going to be in my own business. I was not gonNA be working for the man. I wanted to have my own business. So the roots go way back there and Yes I did have some nine to five jobs along the way I actually worked with IBM and I worked a lot with computers and it. Kinda brought me to the area of real estate actually through the mortgage and of it and as I was a mortgage broker. I finally figured out how to get my own mortgage company on and operated several different mortgage companies in the nineties when the market was really strong and through that. That's where I get energy to credit repair. Credit repair came on the scene for me back in about nineteen ninety seven so you can do the quick math about twenty two years in the industry so far I was so I was one of the pioneers in this industry. And I've by your true rags to riches to rags again back the riches again and in between I go in between quite often based upon life events kind of take a microscopic approach to that big. First Time you you came across the credit repair industry. What was appealing about the credit repair industry? At the time for you personally well I actually knew a bunch of other mortgage brokers. It's always good no matter what interfere and to know your competitors actually going to be friends with your competitors in so. I knew a lot of people. I got introduced to credit repair because I went through a divorce and it was a kind of a nasty one and it was. It was a train wreck and as it wreaked havoc on my credit report. I found out about this service that was being offered by a multilevel marketing company. That actually took a bankruptcy off my credit report and I was like wow wipe ops went off. I was like wow. This really looks cool and it was like my first introduction to it so all the other mortgage broker friends that I had after I told him that story they said well. How'd you do that as well? You know I started doing it myself. And they started bringing me their business and I said you know. I'm a mortgage broker to actually can take your deals. But that's not the way I went I learned to have people in trust me and entrust them and the business grew and took off ever since then that was back in nineteen ninety seven actually opened doors up in two thousand and four with this business and I haven't looked back since you took what could have been probably one of the most trying times in your life and saw a way for you to not only Improve your credit but you also saw business in that because they had such a profound impact on wildlife. They took a whole banks off my credit report. I need to tell other people about this. I need to be able to serve other people with you. Wanted to get better sounded like he wanted to get that message on a net. Osman is actually find successful. That people who find a problem that needs all right. And that's kind of what you realize like your life. You said that you didn't put the doors until two thousand forty me but actually got my My license my Pennsylvania. All the paperwork that you needed to do for for business and I opened up the business and got my My Yon in and so on. So that's when actually it all started. Unofficially I have been doing some work before that on. Excel spreadsheets. Are Older Excel spreadsheet. That's how we actually drafted the letters in the early stages of this before. We actually developed our own software. But I say I'm the I'm the ultimate entrepreneur there was no manual and there is no guide and this is not a franchise and this is nobody has the wild wild west. When I started there was nobody doing this. And and it really. It really had to figure out you know based upon even the tools at that time and it was not easy you know and you don't have Email was around but it wasn't as proficient as it was now. So using those barbaric tools It was very cumbersome but You know people whenever you have a need and you have a desire then. There's a solution when you're talking about the bulk of the work that you're needing to figure out was more so on the entrepreneurial side just figuring out how to build a business or something that you may have not had done before or isn't more so through great now mike the inner workings of Your Business Right how to actually improve credit scores. How go about that process the red tape and stuff like that which equal equal? And you can't discount either one. You can't say well. It was all holl actually to produce a letters do interrupting to the business and you can't discount the structure of the business and then training people putting together manuals and all that other stuff that comes along with it so it was a lot of time spent in both sides of that equation or when did you come about your niche was. Was it something that you had out of the gate because you are in the Mortgage Industry Jordan Haggar Nature? Was this this. Come after thousand. Recognize this communications self apart from other credit repair comes. So when did I turn the corner on this and really make it my full time job catering to investors and making sure that McCain's Catering I would say that. Probably took place around two thousand and ten. Whenever I met Mr Ron Legrand and ran the grand has sent me all his business since that time. And whenever he teaches people he endorses us. And when that meeting happened between Russell and Ron and my wife That we came up with our screening business that becomes the front end of the credit repair business. That's when this thing really turned the corner. So was this meeting a key player in following listening very carefully to what he wanted and how he needs he needed it delivered to his people and then adopting my business to that strategy. Tell me about two thousand nine the year before you make wrong the grant how has business going and what is what is your primary focus. And why do you think you're so receptive going twenty ten? Why do you think you were so receptive to your situation? Because I could have been anybody right all you could have said No. You could have been like this guys you come in so many different things could have happened. Why was it the perfect time? What was it this is? The perfect meal was the perfect. What happened to your before. But after that. You're the CONVEX to this well. This was the rags part of the story. And this is. I could write a book on this Ray. I was living in a place that They didn't even charge me for rent. Let's start with that There was no bathroom in the place so I had to go to the gym and work out to be able to take a shower so it was pretty rough times. And that's the time that I met my wife. And and she hunkered down and she said you know what you have a viable business. Here you really need to put yourself in full force into this business. And when she believed in it and she also You know helped develop it and really sat down and was my right hand man with this whole thing when she went that far. That's where this thing really started to turn the corner and it was through that then through those friends at were why got to meet Ron and the T. When we stepped up on the stage we were ready for it and we were willing enable an except in and In Ron Saul that he has since that time we've been blessed over and over and over again and I also thank the Lord Lord was is my savior and Lord. Was there for me. The entire time and helping guide me through this journey so much and so primarily before two thousand ten year focus was on helping any. Everybody knew who needed credit repaired? You're marketing everybody. Basically which kind of sometimes we look at marketing. Nobody so that was before two thousand ten now. Two thousand ten comes along and you have this opportunity. And you're like what there's a certain subset of society real estate investors that have an exit strategy in which they need to get to Mars. Mortgage ready now was. Did you approach wrong with this idea? That if he approached with the idea had already kinda worked on some of this stuff before the new executives. Do you have to kind of figure out things as as came along. How did that transpire? That's a great question. Did he approach me tonight? Coach him I can't remember. I remember being you know in in conferences with him and actually doing some pieces much like you are today. But I don't remember who approach to. I think he approached me to be honest with you. That's memory serves me correctly? He says you know Paul. You're already looking at the credit reports. You know you already really should do this. Point in time is do a screening for them. Criminal BACKGROUND CHECK. And then that he and then he tells me the price I'm GonNa you're gonNA charge fifty dollars. I says I can't do this for fifty bucks you know. He's like no. You're charging fifty dollars. Veron charging fifty dollars around. That's the way that's the way that work dot and to this day. The price remains fifty bucks for a screening. The Cadillac of screenings is why? I like to say that's beautiful. And and Kinda just Kinda want you to walk my listeners through have the Rolodex of things that you offered. Because I mean it's not only not only screen credit repeater because catering to Tampa buyers you're also Let's just jump into what it is at your company is doing and how how amazing that actually is. There is no other company doing anything near what we're doing. Yes there are screening companies out there. Yes there are credit repair companies out there. But they don't do the business the way we do it in the way we deliver it here. Let me let me speak upon that screening companies Trans Union Smart Moves Landlord Station all these companies. That what they'll do is they'll take the credit report in the computer makes the decision based upon some preset criteria. And that's it is. It's looking at past present. Future of things are on your credit. Report your score is primarily The the major tool there but that doesn't in our industry. That doesn't tell you whether or not someone's going to cash out in a mortgage get a mortgage two years from now. That's basically the rent industry. So they're a you. Try to retrofit a rent decision making process into a rent own procedure. It's not it's not a true fit. So what is missing in? That is can the person for the house and in a what would have to happen in order for that to occur. What would the action plan? B for the tenant buyer so we do a full debt income ratio to figure out the affordability analysis. We basically actually. I had software that I had written way back in the day when I was a mortgage Person and also did some underwriting so it has all the underwriting guidelines for Fha va Usda Fannie Mae and Freddie Mac already built into it so it knows the ratio is based upon even things like. Usda of its houses in certain area that it can be USA eligible and therefore you can have a little bit more latitude with the amount of down payment and the back end ratio and so on so it figures all this stuff out the stuff that you really most people. Don't want to sit down and calculate odd figures out the affordability and it also takes account the debts that are on the credit report and then we teach people. Hey don't go out and buy a brand numerous eighties right before you make your application because that will be a part of your debt income ratio when you may kick yourself out of underwriting guidelines derided you know the number one reason that people can't get a mortgage isn't credit score nears a credit repair person saying this to you. It's actually debt to income ratio. And that's basically how much money you make and how money you pour out per month one number divided into the other number kicks back Andrea show. And that's the number on recent so if you're not doing all that that calculation before you put somebody in their house you're setting them up for failure so that's that's just on that's just on the screening side. I think it'd be value as we enter this this next portion of the of the compensation because I do have listeners for really really great so they may just be like you know what is attended by right. There might be one of their living. Let me take a step back. We're doing an exit strategy with with ten years is will putting buyers place. Fry SOLICITS. There's not just outside our property. It's been on the market for six months. It's been on the market for year and it's listed hundred thousand dollars but there's literally nobody buying the property with rb it's updated people would love to live there. Maybe it's just maybe the value of it is just not wearing needs to be. Maybe the owners are willing to budge and bring the price down. Well maybe there is somebody who doesn't qualify for a loan trading today these people actually make more of the market and people are actually right so you have people who are mortgage ready. But they're looking at property language which have most of the market who are not mortgage ready looking at that property. That would die for that already. Right on they're just not mortgage rates so with this exit strategy. We're going those people in the property today contingent that they're gonNA be able to get qualified for long in the next six to twelve twenty four to even thirty six months. This allows us to sell that. Property wasn't As now this allows us Maybe ten thousand dollars right and lung those things to we're now as a real estate investor you able to make a whole lot more money not only on what the purchase price also Comments on because this person getting on what we like to call her Own so they're rental property for a specified amount of time until their mortgage ready. And what you guys do you guys really take them through the entire process from screening to credit repair. I had of course the day from one of my clients and he was like well thinking about option and I just don't know how long they make the times tons with the seller. Believe in terms of long as possible. He was like well. How do I know how long the terminal dependent? Ira will be like where you guys come in right and I can't explain that process right using a hundred thousand dollar house. I just wanted to kind of give brief overview just in case there just like what's attendant buyer. Who knows how are you? This is the way for you to profitably overpay for property. If that makes sense well I wanted to actually add a little piece to that in a big question mark. A lot of people have that we listening to this broadcast and many others is. Why would somebody? Why in the world would somebody buy property for one hundred ten when it's total value to right now one hundred thousand dollars in the answer is terms because you're offering terms and in also ingrained in those terms is a futuristic value? Remember I'm selling you that property as if you were purchasing it three years. Now that's when we're GONNA be at our second closing table. I call that the cash out closing table. The first closing tape was the one where you get the keys and you move into the house. So since the properties appreciate in value. That's why this is a more attractive deal at one hundred and ten thousand even though it's above market value. That's a futuristic price. Last when I say I enunciate that it's bought terms. Remember the people don't have to come up with a hundred thousand today. Even though they've got damaged credit or if they've got That INCOME RATIOS ISSUES. They're self employed. They don't show their income just yet actually have derided. I bought my last two houses. Using lease purchase lease option or rent on terms of synonymous the people that are buying like to refer to as rent on we in this industry call it lease option lease purchase but the reason why that happens is because of that so my standpoint what I do. That's that's really a special in. That is when people come to me. They don't know what they don't know they don't know that the you know. How long does it take for them to be mortgage ready? I've looked at ten thousand credit reports or more and I have seen what it takes and I know what this industry I've I've probably disputed information on five thousand credit reports or more. I've probably done fifty thousand disputes or more. So I know what items can come off. And what items are going to remain. Based based upon the dispute resolution process that we engage in and I and what we do here that specials. We put the pedal to the medal race. We get it done as quickly as we possibly can. All credit repair companies are not created equal. Here's what you're going to get from everybody else in the industry that I've talked I've talked. I know my competition very very well. What they do. Is THEY DISPUTE? One thing at a TIME LEXINGTON LAW CREDIT REPAIR DOT COM. You got ten negative items on one credit report. What happens is that's about thirty across three credit bureaus. They'll dispute one thing. Every forty five days do the quick math. Now we're talking about years before they even get through the first level of disputes and really things come off in the second third time around whenever you dispute things that same client. I would dispute all thirty negative items now. I might only get seven eight nine items off. That'd be an average set of results but that's a quantum leap from sitting. There may be getting one item often forty five days so that pedal to the metal attitude is the is the reason why I can tell you what the end date is before you even start my service and our maximum end date is nine months? You'll never get an end date from anybody else before they even start. That's the that's the key thing when I say that all credit repair companies not created equal. That's the key thing as a real investor. I let you know how long it's going to be and what the action plan is going to be in place before they even start a. That's beautifully certain again. I love to drive examples because going back to what you said. I mean the fact that attendant buyer right so minds looking for a property. That's not able to get financing. So therefore they're not going to buy a home today the fact that you're able to put them in a home as lucid investigator to put them in a home a home of their choosing right a home that they're taking ownership of their locking down a price of one hundred and ten thousand dollars today even though let's say of the market value of that property is hundred thousand dollars in three years when they actually cash out when they actually get financing that property maybe one hundred and fifteen hundred and twenty five thousand dollars a capture all of that catch-all who met appreciation that capture all upside so the walking in the Mama so going back to the Questions like why would I- overpaid for property? While with a property will they're not truly an for property lacking the rate today on the seller side Poverty for the past six months one year at a hundred thousand dollars and it's not selling not only is it not selling but if it did sell fees associated with that sale including a realtors commission which is on average six percent plus closing costs. None of these. I mean you're you're not gonNA get a hundred thousand dollars you you'll be lucky to get ninety thousand dollars. Do Position Yourself as an investable solving the problem with not only a salary but attendant firing you can make a lot of magic cap so by one further this process a little bit more. So let's Contract with the southern miss. I was like okay. Yes I'm willing to do this. I know that I'll get cash out at the end of this process. What happens next right? So now we start marketing satanic blacks. I WANNA go back to your portion of what you guys are offering in this process. So let's just attended by we have a few buyers are like hey we're arguably And tell them like. Hey you're something we wanna see where you are as far as audacious. Oh we're going to send you to Paul. Paul is GonNa take care of your men. You send them to you what happens. Well the process of sending them to us as you can tell and talking with us we have a superior I like to think and and many people will agree with me that we have a superior screening procedure and as superior credit repair process. Those two together tied together are the ultimate option exit strategy. The reason why I haven't taken over this whole industry and had everyone sending everything to us. this point in time is the delivery of how I've been. I've been remiss in my process of how to send people to us. We just perfected this about two weeks ago. And you're GonNa this show here is going to be the first grand. Roll out of this per- this new process. This is what it includes in this works. It works beautifully. I've been doing it for about the last two weeks. People been registering. Wait to hear how this works. So what happens is we now. Put up a link on our website at Prequel team dot COM. And is it says free membership registration. I love that word free and it truly is free. All they gotta do is. Click on this free membership. Registration and up comes a little form. They got six questions and when they do that. They're basically telling us who they are and what happens is it kicks out three main components. I is to email an email. That has two videos in it one for them. How they so they learn about the process they learn what the the you know. The specifics are about how we do our business. The second one is for the tenant buyer so what the tender buyers sees whenever they apply the third thing that is going to kick out a customized branded link and now that is a really cool thing because For example day you had Lincoln. You had your name to be The trigger mechanism it would say apply dot prequel team slash d'auray. So now when people see that they don't see some bit linked. It looks like it's something. Somebody's trying to steal their identity or something. It's a very known it tells you in the link. What is actually going to do when they click on that they're gonNA they're gonNa see this your ten of buyers GonNa see a beautiful Professionally done application. That has has graphics in the background and has logic built into it. It knows if there's one or two people to not put this whole second person on there it has a testimonials in the bottom of it. It has all kinds of answers questions with bubbles and things like that really cool stuff there so this this application when they fill it up L. and by the way you are name is already on the application when they opened it up your name and your company name and your email address and your phone number and I've made it so that this is the one that this is not your personal email your personal phone number. You have the opportunity to put in the one you want the public to see so now. They opened up. They owe that they. Now see that this is the property. This is the person and then hit that submit button. Hit It with confidence. And then they get a video. Basically teaches about the procedure and again all this is free to your listeners for listening to this today because of the registration process that we've not put in place so we're really excited about it here in the company because we're just rolling this out now. I can't wait to hop on that myself because they're going to love how you're all processes attendant buyer comes across one of our properties and they're like hey like. I'm interested in this alive. You the property I. WanNa see where you are and your credit credit worthiness GonNa send you to Paul Org. Actually send them a link at this point. Right may interject one more thing. It's also going to send you a script what you're what you're what reiterating to me right now. As to how you would address somebody is going to send you a very professional script with the words very very carefully chosen. So now you're going to basically recite that script to them. It drives them to the link. I'm sorry go ahead. No perfect perfect perfect once they go to the link basically gives them instructions of any. Must I get you guys aren't formation whether you guys do on your what you guys were to us as the investors when you guys provide attendants and how does that process Emerge after that. I am so glad you asked that. So here's what happens. Once they hit that submit button. Remember your name was already engraved on his thing in your email address when they hit that the instant they hit that you're CC'd their entire application so you know that they applied and that they're in everything everything that is on their application. You see all that it's all transparent you'll then receive at a An invitation from our crew here because we work in a piece of software called Patio. And you'll see receive an invitation from our crew that you can track and follow along with the progress. That as with my competitor's one thing that they do it's kind of better than what I do. Is they render the decision instantaneously as soon as that application is submitted but now remember in my world whenever they submit that application. They've gotTa Talk to you a credit expert. We've got a do a full debt. Income Ratio Analysis and. I need to get their income documentation. So there is more information they're actually talking to you MITTS. And they're they're going to go in and and do some things so it's usually about a three to four day process before we render. We don't render a decision. We're not render a yes or no we render If they give you the criminal background check. Megan's law report. You know an all the background stuff associate with bus at that income ratio which is a disclosure form that they actually have to sign to say that they're not gonNA materially change your income their debt load. So we give you all this stuff. That's that's all going to be part of this package again. They paid for it. So it's again to real estate investor. All this stuff is free because they're gonNA piss instead of paint a thirty dollar application fee. They'RE GONNA pay fifty dollar application fee. Remember this is a rent to own. This is not a rent no so put it in a different category. They're eager to pay fifty dollars to get now again. We're not under the decision. We send the report off to you and we let you know. How long is it going to be for them to be mortgage writing? What needs to occur in order for that to happen. And then the credit piece of kicks into. I'm sorry go ahead break Yup. So one thing I want interject on his is the fact that you guys are not rendering a decision and you guys. You guys are basically telling US exactly. Mike what would it take? Hey if they do X Y and Z. This is how long This is how long were project x when when you guys are thinking about that you know think about your pool of sellers right and you have some sellers like hey. I need to be cash out of the year or some cash out in three years. So you're not you're not we're we're not in the business of trying to say while if all gives me reporting the report says hey the Senate. I'm going to be more for the next two years will. There's no way I can fit that person. As the property thing WanNa property was to sellers can get get cash out in the next one year so you have to play matchmaker. You have to master. The tenant buyer will opting which they can also. It's not an automatic thing. It's not Susan also all on his end that you're not making this forest. They're giving us their recommendation. And we're using that smashed together. Yeah and I'll even go as far as of of especially for people who are new to this to the procedure. I'll talk to them personally and I'll and I'll let them know. You know what my feeling is on this. 'cause I remember we're talking to these people from a credit sampling. Oftentimes we talked to him for half an hour. And we're finding out things in that discussion. That maybe alarming. So you know. We're looking at this from a different angle. And were saying I'll I've been as far as to say you know this person's definitely worth taking the chance on. This person really looks to be strong candidate. So I'll go that far but I wouldn't I don't say yes or no veterans and that you can think of that we have covered. Well the main question is I guess. What's the distinction? Why why us? Rather than you know. Lexington Law from the credit report repair standpoint. You know what Magic Wand do you guys have that other people other companies? Don't then that's really goes back to our methodology. And when we do this we save the data from years and we see what works. And what does it work? And we're always trying new things and I'm I'm part of a larger group of of credit repair companies and we compare notes so we know you know what's working and what isn't now may not be. The same thing was working. Your wasn't Several years back. So it's staying up on it that that really matters as far as real estate investors with frequently asked questions I guess probably the most frequently asked questions is how do we get ten of buyer over to you and I would say just look at the videos and look at the script and the answer. The answer to these questions is in the registration process. And it's only two three minute videos in one script one paragraph long. So those answers are it's all very carefully written so I would strongly encourage that to be the teaching mechanism on going forward link to the registration again. Go to Prequel team dot COM R. E. Q. U. A. L. T. E. A. M. dot com and. There's a big funny lookin' wheel like looking red button in the blower left hand corner says free membership registration and underneath says something about real estate investors so click glad and it opens up the six questions. You fill it out and the computer actually. He's the one that puts together the links and everything and sends it all out T- within ten minutes. And what's the what's the charge on the investors in how you love this eero? That's beautiful so once an investor does go through this process in start sending you guys attorney buyers for screening repairs things like that. What is what is the by. After responsible of and over what time period. Yeah and the reason why. It is zero for the real. Estate investor is because the tenant buyer pays for the application fee. Witches fifty dollars per person husband and wife is considered to people. That's fifty bucks or peace so it's one hundred dollars. So and if they do in the gutter and to be honest with you derive the screening company. I don't make any money. It's it's all that's how much money I pay for the criminal background. Check running all the reports and getting the credit report and put an altogether. That's what I gotta pay people to do it. I don't make any money. They're the reason I do all that for that little amount then going back to the role in the grand conversation. That's what you're gonNA charge. So that's why charge I also get credit repair leads from it. I do make money and credit repair. And that's why this whole thing works for me. That's why it's so inexpensive. I was trying to charge seventy nine dollars for the for the screening. That would have been a fair price to pay a fair market markup for something like that but now I am I I do do the creditor one twenty per person and remember. I said it was a maximum of nine months. So if you hear of other companies charging fifty bucks there's no end date nerves usually about a three hundred dollars setup fee with something like that so you get what you pay for. That company is going to dispute one thing at a time for fifty dollars a month. I don't think I would want to do business with him. I am in this world where it's so key that were cashing out. We're seeing what that second closing table. We have to get there. You know the stakes are very high for everybody because the house may be turning into a Pumpkin. You may only have that house tied up for three years. And now you've got a guy in there for a two year lease option. So do you really want them to cash? Guess what if you've got a back end on that thing where you're making fifty thousand dollars when you cash out on that property you really do want him to cash out right because you only got five thousand ten thousand front but you're getting fifty on the back so each house in each contract as a different level or strategy that's going to be incorporated. I like to work with people who always want to see people cash out because we live in communities in our communities we go to churches and we go to school. Our kids go to schools and we go to the shopping center in the in that community. If you took somebody's heart owned of fifteen twenty thirty thousand dollar down payment and they were unable to cash out now. You see that person at Church next week or or so on you get the picture here you WanNa do. What's wholesome and right and good and feel good about it. There's a lot of ways in this business to make money And a very Unscrupulous way but if you do what's right would which right with your with your own ideolology excuse me I do. What's right with your own Integrity And follow and follow your your instinct of guides and get people cashed out. You're GONNA do so much better in this business because you'll be in it for the long run Well said again. It's one of those things where you do have Some investors who are do operate out of integrity and I've heard some of those stories in people purposely put intended buyers who they know will never qualify just to get a large downtime. Just move onto the next one Assets and IT'S. It's a very ugly thing to do and. I'm glad that I'm so glad that you touched on that. So make sure guys out there. You haven't even started yet. Make sure first off. You're learning this strategy from a reputable person we do teach over for the main dot com. You guys aren't more motivated. Sellers strategy more about owner financing tools in hotel lean. I'm Edwards before Dot Com Kinda driving up with the investor side of things so once the tenant buyer has gone through the entire process what what are some of the reports those reports for like an how. How long does it take to get those reports so that we can make our decision on talk? You buy the property. It's three to four days of the. The very unique report is that that didn't come ratio that we talked about because it's got spin buttons in it. It's the play in the perfect form in Microsoft. Excel where this whole was written. What if the Guy Score was seven? Seventy rather than four seventy. What if he brought in fifteen thousand rather than ten now? And you'RE GONNA love this one if the guy sitting here and he's paying fifteen hundred dollars a month for rent for the property but I figure out that the mortgage is going to be two thousand dollars a month. Whatever he cashes out at a four percent interest rate to three years from now based on the amount of money he put down and the taxes and insurance and so on that creates. What's called That's where you have payment shock. Okay so the guy is paying fifteen hundred now now. Sundays can be paying two thousand dollars twenty catches up interested. I think they're gonNA say is. How do we know that this person is going to be able to pay that? That payment shock is a strike against them. It doesn't mean that they're loans declined but to fix that. If they went through my program it would show in red that this is a payment shock. A potential payment shock problem. And I've gone back to people and said you know you're setting up. This tenant buyer for failure with this payment shock thing. You should be charging two thousand dollars a month and that people said you're right. Let me take a look at that and they go back to the bar and guess what the tenant buyer agrees and says no you I understand. I don't want this to be a stumbling block whenever we go to Get the house. Yes I'm willing to pay two thousand dollars a month. You should start charging it consultancy. How much did you make? That person asked the difference between but yeah you're right just understand what politics I mean. We when you when you're when you're setting your prices for for the actual renting part of the rental on a lot of times you are looking at market right. Looking at what other properties in the area are renting for. And you're you're wanting to be in that range but again if you're looking at the actual tending bars publications in what's going to get a mortgage ready if their mortgage is gonNA come out to two thousand dollars a month. Everything included and right. Now you charging the fifteen hundred dollars a month through Renton Process. Goes back to that shock like yes like that's what the mortgage mess with. The rents are in the area but again this doesn't match up to the image. That lenders needs to make sure that this message for them so that covered up very well very well said you wanted to set them up for success. I'm all along the way and see my wife and I were also real estate. Investors to so we kind of a third business poked in here the screening the credit appear on the real estate investor. So we understand all this stuff. We understand the nomenclature of this industry. We're not going to say anything that would mess up your deal. You know because we understand that you may not own. The property might just be controlling the property so when we address tenant buyers we say the person who sent you to us a person who controls the property not the owner of the property. Our won't be. We don't WanNA misrepresent things. It's almost like it's a family business. What are some of your goals can the near future? Where do you see your company in the next two or three five ten years? What's your what's your more. Menial while I'm sixty. I just turned sixty this past year so I don't want I don't want to be in this thing forever. I'd like to be out of this Within ten years so I would like to see my business dabble in two thousand and Twenty so we've that's all this software gearing up. That's what we're doing right now as you're up to be able to double. I think I'm trying to intentionally set my standards low because I wanNA see them I I want to be successful regardless so If you're talking about the data answer your question. Are you asking it more from a growth standpoint in terms of the size of the company that was perfect perfect and so I'm interested to see why you are so interested in this growth wise? All of your so. I don't think my lifestyle change too much if my business doubles I don't think that that's the major component thereof i. I'd like to be able to leave something to my children into my grandchildren. So I'd like to be able to when I say I want automation. We've spent a lot of time on automation air in the last couple of my last six months or so and So I want to be able to have to walk away and have it run itself. You are listening to the before the millions before the millions. Podcast just wanted to quickly jump in before I give Paul a chance to wrap up the episode for us. Look if you haven't yet signed up for the four keys to building a lifestyle business masterclass where I explained to exactly how you are going to profitably get started building your real estate business to create passive income for you meaning income for you every single month while simultaneously making you those large payouts getting those largest timing fees. If you're interested in building a business that does both of those for you at the same time then. Head over to before the millions dot com Ford slash master class. Okay so I'll see you on there. Prepare for a few surprises and a few bonuses as well. You know just talking to Paul. I realized that I needed to have a module at an entire lesson in my course to motivate a element that dedicated to his process. So not only recording this podcast themselves. But we're getting ready to create a whole module inside the motivated so limited but importantly hears that render discuss all of this on the masterclass. You'RE GONNA learn my strategy from beginning to end how I incorporate tenant buyers how we do all of this with none of our own cash credit a bank financing private investors experience education in the space yet. Because you'll get that education during the master class Just bring you. That's all right before the Mayans dot com forward slash masterclass. And now we'll have Paul. Wrap this episode up for US and folks. If you're not with somebody like d'auray if you're not with somebody you gotta get with somebody. You gotTa be around people who think the same way that where you WanNa be and people have been there and done that and think that you can bite it off and do it all by yourself by going to a couple of Rea- meetings That's a good start But RIA meters aren't GonNa get you all the way there you need to gravitate to somebody who's in this industry that you respect and has the knowledge and the tools to deliver the content to you For those people who sit there and have analysis paralysis Or die say that backwards paralysis by analysis I would encourage you to get out there and do something in and meet with people and talk with them and And make offers and and listen to the teachings of of Sharp. People's Industry liked to write that. Shell that we all want to just be able to snuggle up in and just be able to be safe inside our little shower and stay inside. Our little world You know when when you spread yourself of that little show and then the people that think the same way I call them the soothsayers of doom the people that don't think that you can succeed in their their to tell you how crazy you're thinking in order because you're to take your last two thousand dollars in invest it in some course You know those people need to. You need to step aside and think how. How much do I respect those same people that are going nine to five? You know the so you need to start thinking differently stinking thinking lease the more stinking thinking. You gotta get yourself out there and Take Chances Act Act Act. You know this. This do make mistakes by God. If you make a mistake the real growth is what you do with that information about about the mistake that you made even if it's going and taking your last two thousand dollars in buying a course because you bought the wrong or she got along with the wrong person. That's a mistake but that's a good mistake to make because you learn something now in the next time you scratch together. Three thousand bucks to go to the right person. So don't penalize yourself for the mistakes a patch on the back for taking that plunge or looking forward to partnering with you. We're looking forward to learning from you and we're looking forward to helping you in your ten of buyers accomplish goals because when you're successful poor successful.