Thursday Three: Creative Financing, The Problem of Perspective & Leadership
Create win-win scenarios using owner financing to acquire real estate & businesses.
Every week I bring you a couple gold nuggets to inspire growth in your business to build wealth & create freedom. Find me on Twitter @brianbeers
Business with Beers
Eric shares a couple great stories of his first few multi family deals where he used creative financing to acquire the properties with little money down and excellent terms.
I also found it interesting to hear about some of his joint-venture deals. You don’t need to be an accredited investor to do a JV deal. It’s a matter of matching up the right operational partner with a capital partner.
We also have a conversation with actionable tips on what to look for when you’re considering investing as a limited partner into a syndication.
On my Thursday solo episode I go into detail on the creative financing methods Eric used that anyone can duplicate. Here are the highlights:
#1 Always Have Your Eyes Open
Eric tells a story of going on a walk with his son and seeing an older gentleman placing a “for rent” sign in the yard. He approached the man to inquire if he owned the building. He struck up a conversation and ultimately asked if he had any interest in selling the property.
If you looking to buy a business you can use the same approach. Walk into your idea businesses and strike up a conversation with the owner. Tell them you’re interested in learning more about the business. Find out what they like, don’t like, and what their plans are when they retire.
#2 Go For The No
If you are afraid of rejection then trying to buy real estate & businesses using owner financing probably isn’t the right strategy for you. You can go back to watching Netflix as you wait for bizbuysell.com to send you deals that no one else wanted to buy.
I have this quote “take action others won’t to live the life that others don’t”. How many other people took action like Eric and approached that landlord about selling his place? I would guess Eric was the only one. How many other times do you think Eric reached out to other sellers and was rejected time and time again until he finally got a yes? I would guess many.
You have to embrace rejection. You have to “go for the no” by asking the question. Successful people don’t get lucky. Successful people make things happen.
#3 Get Creative!
With owner financing you can literally structure a deal anyway you want. We are trained to think in traditional terms of 20-30% down, 20-30 year amortization, 4-5% interest rates (currently).
Eric bought his $1 million apartment building for just 3.5% down ($35k) with a 40-year term!!! The seller was happy with some cash up front & reliable monthly debt payments every month. This is a win-win.
The second part of his story was just as creative when he found another buyer for the property a few years later. Instead of paying off the seller debt Eric got lender (the old owner) to transfer the debt to the new buyer. This created a win-win-win scenario with Eric cashing out his equity making $150k on the property. The new buyer wins from inheriting terrific financing & not having to go through the hassle of refinancing. The old landlord wins since he continues to get monthly debt payments.
What to learn how to buy businesses with owner financing?
I’m in the early stages of launching a coaching program to teach other entrepreneurs how to find, negotiate & buy businesses using owner financing.
To start I’m only going to be working with a small group of people who are committed to taking action and will get results. Click here to learn more & get on the pre-launch list.
"You should be far more concerned with your current trajectory than with your current results." - James Clear
Ask yourself "am I making progress?"
If Yes then you're on the right path, if not, time to re-evaluate
I loved playing with legos when I was a kid. Today instead of building with legos I love to build companies. I love to inspire growth within myself and within others.
This thread has a bunch of great visuals. This one below is my favorite.
My business coach, Trevor McGregor, has a great quote “every problem is a problem of perspective”.
We think that a problems is this huge wall that we can’t get past. But in reality it’s how we’re viewing the problem, it’s our perspective of the problem. As we start to find ways to solve the problem by asking questions we realize the wall isn’t that big.
My favorite question: “what would you need to believe to be true to ___?”
What would you need to believe to be true to hire great people?
What would you need to believe to be true to expand your business?
What would you need to believe to be true to become a best selling author?
What is a problem you are facing?
What would you need to believe to be true to solve it?
Podcast Name: True American Hero w/ Robert O’Neill
This episode is from September 11, 2019 on The Ed Mylett Show with the Navy Seal who killed Osama Bin Laden. In this episode he talks about the legendary mission in detail with lessons on mindset, leadership, execution, teamwork & training. All which applies to business.
I’ve been lucky enough to hear Robert O’Neill speak a couple times and I’m always left inspired. Here was one of my favorite quotes:
If you’re having a bad day, call someone. If you’re having a good day, call someone as they may be having a bad day
I’m now intentionally calling someone in my circle almost every day. Usually just 10-15 minutes on the way home to check in and say hi.
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