During today’s HyperFast Wealth segment, host Dan Lesniak speaks with Chris Prefontaine, an experienced investor, coach, author, and business owner. Listen to hear his smart strategy for buying properties on terms that will give you three pay days.
Episode Highlights:
- Chris tells us about his history with real estate, investing, and coaching.
- He doesn't use banks after the 2008-09 recession. He buys everything on terms.
- His company’s portfolio contains 50-60 properties at any given time and they are not on one loan.
- With owner financing, the seller takes the first position and they don't sign personally.
- They even bought their office building on terms.
- With owner financing, they focus on free and clear property. With a lease-purchase, they rely on the principal pay down. Both scenarios are well protected during a recession.
- Because many buyers can't go through banks right now, they can go through the alternate route Chris provides to get mortgage ready.
- Their ads attract people who can't get loans during COVID.
- They create three paydays per deal. The down payment, the monthly spread, and then the backend cash out in 2-5 years.
- The deal flow has increased during COVID.
- So many business owners froze during the pandemic. Those who shift will succeed.
- On the coaching side, some people are making a major career change. They are calling Chris and asking him how to use his system aggressively.
- In his coaching program, Chris helps brand new investors, as well as wholesalers and flippers, who want to tack this strategy onto their services.
- When it comes to buying on terms, some people are simply afraid of the unknown and need someone to show them how to do it.
- To find potential sellers they fish in three ponds: expired listings, FSBOs, and for rent by owners. Another category is buying a list of free and clear properties.
- Chris provides a detailed example of how a lease-purchase works.
- They use AppFolio, RentLinx, and Craigslist to find buyers.
- Pre-COVID they looked for buyers who needed credit enhancement. They also looked for self-employed people who needed to establish a longer tax return history.
- During COVID they are getting great buyers who are getting pushed out of the market.
- His biggest advice to new investors is to manage your expectations and commit for three years.
- In this market, you need to find a mentor who has been through similar cycles and storms.
- Chris recalls some of his favorite family trips.
- Chris shares their five-year plan to complete 1500 transactions with students.
3 Key Points:
1. You can manage a large portfolio of properties entirely on terms.
2. You can find potential sellers by looking at expired listings, FSBOs, and for rent by owners.
3. Many buyers are being pushed out by COVID and they are great candidates for a lease-purchase.
Tweetable Quotes:
- “We control 50 or 60 properties at any one time, not counting our students that we do deals with, and we are not on one loan.” – Chris Prefontaine
- “I know people have it tough right now, but there's always a route if you look for it.” – Chris Prefontaine
- “The people that can recognize the shift and make the adjustments the quickest are going to be the ones left standing at the end of this.” – Dan Lesniak
- “If people learn what we do just to buy their own home, personally, that's a win.” – Chris Prefontaine
- “Latch on to someone who has gone through at least two major market cycles or storms like this.” – Chris Prefontaine
Resources Mentioned:
Real Estate on Your Terms (book) -- Get a free copy when you mention this podcast!
