Hi guys. We are back and we’re going to be talking about conserving capital. This is actually extremely important topic that I’m going to let RJ take it from here when it deals with conserving capital. RJ – tell me a little bit about what does that mean. What does that look like? What is that concept? Everybody brings something different to the table whether you get good negotiating schools whether you understand working with the lead generation whether you understand money or you have money but if you don’t have money that should not be limited. Believe anybody’s mind in the real estate business because you’re only limited by the things that you put out there. The only ceiling over your head is the one that you put there. And so there is never a problem. There’s only an idea. And that’s from Robert Schuller from the possibility of 30 years ago. But it’s true because if you don’t have the money there’s so many different ways to get it in this business. When I started I did neither. I was negative Absolutely. I remember right now I remember running an ad in the paper and had 16 percent guaranteed in your money. And I had a call from Washington after somebody in the banking industry saw my explain it. No wonder. Buying and selling mortgages and we had a long conversation but we got that straight not germane to this conversation but the point was I didn’t have money. I actually put an ad in the paper. It already hit and family and friends. But again it’s only an idea problem.
Then I learn how to creatively structure transactions. And when you can creatively structure transactions you can stretch your money. Long long long way yes. And I make no exaggeration when I say that I have bought hundreds of properties with literally no money down and oftentimes I would buy those properties at zero percent interest over as long a period of time as I could possibly make. And the reason for that is simply this What I didn’t have the money to. I wanted low payments go forward and yet it’s all a matter of the presentation and finding out the person’s need doesn’t work with the person that I need to buy another house for my family who works for the people they don’t have and create greater need for their money today. And they can use it in the future. I’ll give you an example. I’ve got a perfect these people were they had a house for sale and this is in Georgia. This is a fresh example so it’s a my. And they hit on the market for 240. And we kind of agreed on the phone for like 1 and I asked him why are you selling the house and they lived a couple hundred miles away. So the first thing I wanted to do was make the bank an investment and try it a really uncomfortable time. So they met me at 8:00 in the morning and knew they had to get up at 5:00 in the morning. I knew that they would never want to do this again and they were already mad at the realtor.
I love regret I said Tell me what you’re going to do with the money. Well we just bought this other house and we want to pay it off. I said really that’s what you’re going to do with the money. Always know what they need the money for. You know if you’re afraid to ask that question you need a different seller because you’ve got to be able to ask have to be able to pass muster and that’s it. Let me ask you what is the payment they said they’re whatever they work. I can’t remember I think a month or two. And what’s the interest rate that I do remember it was three point one. Oh wow. That’s it. And how many years is for 15 years is it. I am really sure that I can help you. I’m quite positive that I can make this work. Let’s meet at the house. So we met at like 8:00 in the morning they’ve been up for like hours. We went through the House and House people house I kept saying this is a really nice house here. Some things can be done. Yes you can see the curb you can see some really you’ve got a beautiful house. I would love to do this as well as I said. Let me ask you if I could make the payments to offering and match up your payments I can do this transaction with you here. You just want to make sure you don’t have the payment right. Well how about we work on something.
I make those payments every month and I’ll make them for the exact same amounts that are paid out to the exact same amount of time. And then you never have to worry about that. They’ll work for you and your family. OK so that’s an add on. Can it work for you and your family. Because they said yes. And so we structured the deal work. And my goal was I knew I could get them anyway. Now that I was when somebody because it’s just when I met her today she did. I wrote a check for ten thousand dollars a day. They held a mortgage for me at three point seventy five percent total 18 years. The house was really great. I’ll tell you it is worth about forty dollars and I would say about this maybe maybe two maybe two years maybe a year ago. I know it’s true but I’ve only got 14 more years to pay. So for you young people in this business listen to any of the other modules I talked about how people use leverage especially young people you know have money and eventually this stuff. So I was able to conserve all their capital. I did it and I can serve my credit. Did you have to write a check for ten thousand dollars. Probably put about 10000 dollars into the house and there you go. Now you’re going to hear somebody that’s going to say OK I totally get that deal. But R.J. that’s you. R.J. I don’t have to. How do I create that. What do I do.
I mean I’m scared just to have the conversation for that kid that doesn’t over 10000 dollars call me feel every day I’ll work it out with you and I’m serious when I say that I’m this is what I do find you not a seller’s needs is the most important part of this business conserving your capital is critical especially when you have limited capital. Now I know other guys in this business some people that were born with platinum spoons out if you will and they can pay retail for every Hollis’s they didn’t have to learn how to negotiate. They just knew how to get to know how to sign a check. It wasn’t like that for me. I did have an inheritance my grandfather did leave me for everybody. OK that’s everything I got in my life. I worked for. Yeah I hustled for I sacrificed for. But it’s a skill set that I was able to develop and learning how to develop rapport that allowed me to create these really creative solutions for people to conserve my capital so I could get involved in many transactions and possible leverage. What can we call this leverage wise use of leverage to make you absolutely wealthy come true. Before you make you broke. So if you start investing and you start birdhouses and you’re paying 12 percent interest you just transferred all the profit to the lender just so you know that if you get these hard money loans it’s OK to get hard money. I don’t even care if I pay 20 percent. If I can make six figures and I’m getting out of it fast and you can borrow expensive interest rates to borrow it expensive interest rates for short term credit time. I think we’re going to end right. It will kill you part.
So guys hopefully you got a lot out of this module. Again I really want you to hone in on this. There’s going to be some worksheets right below this video pertaining to this. But the biggest thing I can say is you got to not only listen to these modules but really listen to them and if you can get one good thing out of it that’s actually what you want to start practicing. So have a conversation with somebody you know mess it up. Well I don’t even know where to find that what we’ve got. We’ve got modules on finding deals as well. But guys see on the other side hopefully get something out of this. If you did please write it below or if there’s something missing in this module you want to know more about let us know in the comments section. I want to get a point. Yes. Because you said something very important if you don’t know what to say when you’re on the phone with somebody and you’re negotiating a deal hangup when you’re talking when you’re talking nobody hangs up so early on in this business and the aim is to hang out with my cell phone. I would be talking in this cell and that’s it. You don’t miss it so I really like what you click and I have to think about it for a couple of minutes and see their trucks. Yeah. And I would I literally would hang up a never hang up on them. OK. Up by yourself. Nobody does it.