How to Turn a Little into a Lot with Real Estate PART 2

[@PFC_50_Grand]

I used one of Phil’s tips from another video. When I wanted to get into rentals I needed to sell my home at the time but it had issues I didn’t have money to fix. Phil’s tip was to award a credit at closing to fix the problems and it worked! I was then able to buy my first rental.

[@WesFahlenkamp1]

Thank you Phil for your honesty. A lot of gurus make it seem so easy, when they know it's not. If and when you buy their programs and go through them, you then realize how difficult it is. You're up front about the challenges.

[@orlando4502]

Using a little to create a lot is exactly how growing a business works, in my opinion. Really found this post very informative!

[@5tmarc]

Phil this is actually the best real estate video on the internet...Nice work dude! Totally borrowing some of these creative deals!

[@NathanNeufelder]

With his enthusiasm alone, this dude could sell me the freight container his Ferrari was shipped in and I be believing I was getting a flat near the villa... "It's a spacious 1 bed industrial style home with a open layout. I heard the previous owners had a 458 Italia, so you know it's classy".

[@freedom_mentor]

Well spoken

[@MichaelBenninger]

This is a great program you just need to watch everyone of these and get into it.

[@patricklynch5616]

Hey Phil, the more I watch and listen to your videos the more I can understand that I want to spend the money on this knowledge, get ambitious, and dial it in for my family. I hope we can FULLY climb aboard !

[@Itsmorganariel]

You are AWESOME! I just discovered your videos and you teach the ins and outs so well. Life changing! Thank you.

[@vanitajones6533]

And I thought this would be boring....Nada !!! Great Presentation!!! This is what most people want to learn to do in real estate investing...Not the traditional stuff!!! You're a street smart guy who has created a great way to do real estate...Bravo!!!

[@franzvanjulio5523]

Thanks for your videos, Phil. I’ve watched for years and likely watched this one years ago. However, I’m now fortunately ready with some money, but also really hungry to get started. Your knowledge is greatly appreciated and your passion is contagious. Thanks for investing in the public and helping open our eyes to what is possible.

[@davidohare2933]

WOW Phil!!! I am in your mentoring program and this video gave me what I need! I know I am able to do this but I need to keep with the program and keep moving!

[@300dionysius]

Phil, thank you for this video! I am going to find a way into your apprentice program because yours is by far the MOST informative out of all of them out there!

[@frantzlucien2969]

[e-mail]

[@kinger5914]

Absolutely love your lessons Phil, I'm a few properties in now and I'm looking to expand my knowledge base and broaden my vision. I have paid top dollar in the past to attend "professional" seminars which weren't even marginally close to providing the knowledge you provide for free. Well done Phil, I'd love to learn more.

[@vincentsedmock9355]

Thanks for the info. I trust that creative deals are tough, but I want to start on my own. Thank you for a couple new ideas, it really opened the mind even more

[@TheLiftOff]

I like how he dismissed the debate on whether creative financing works like “dude I’m not wasting my time on that”

[@irinab7524]

When the title get transferred, the mortgage is due. No bank would let new owner make monthly payments, and title won't be transferred with the lien attached - which is the mortgage

[@freedom_mentor]

We've done it thousands of times in 15 years. But you're welcome to continue to think that "no bank" will allow such a thing.

[@tynigeniusmind8393]

Irina B but taking over the payments or buying foreclosed homes using his examples would be either impossible or illegal which would render the entire real estate establishment as a whole useless.

[@irinab7524]

It was possible before 2007, when banks didn't care once the mortgage gets paid. Now it's a different ball game. Banks don't even want to assign the mortgages to well qualified buyers - they need full qualification process all over: proof of income, assets, credit etc I'm waiting for these times back ;) I could get really good deals if I could assume someone else mortgage......but it doesn't work unless you agree to keep the title on the mortgagor....which I wouldn't agree

[@freedom_mentor]

We don't get permission. We just do it. We have done hundreds of these in the past two years.

[@tynigeniusmind8393]

there has to be some type of loophole....or else After 15 years of doing Phil or somebody would be in prison don't you think

[@mariadelacruz1301]

Thank you ! Phil you are a true gentlemen and a mentor.new here! i want to buy a SFH in FL new here, learning and educated for real state also want to make cash for flip property. i will watch all your video.

[@rebeccazhao8077]

great lesson, I have a question though. in the example that you talk about at the 9 min, how come this person doesn't want to just sale the place herself, then she will get enough money to pay off the bank and everything else? instead she will get $5,000 only from you as a down payment for the property?

[@tynigeniusmind8393]

Rebecca Zhao because then she would have to pay all types of fees and what not unless the buyer has the entire amount in cash. she would have to go through banks and realtors which gives her less pocket money in the end.

[@terranceb5675]

Watched a few of your videos and love your passion. Makes it fun watching.

[@Broughton1128]

You are a rock star, Phil! I will be submitting my info for apprenticeship consideration.

[@Jaycee_735]

You are truly gifted. Thank you, sir.

[@sonastationery5047]

u provide different info I didn't learn before, thank u

[@zhenghaorocks]

@14:47, who in the right mind would sell their 100k home for 70k to you? That's what I am not getting. At least in Canada major cities there aren't any deal like that I heard of. If they are willing to sell it to you for 70k, it probably means market is pricing it at 70k, so no matter how we fix upper it, it won't instantly go to 100k. That's my understanding.

[@freedom_mentor]

Just because you have never seen those deals doesn't mean they don't exist.

[@irinab7524]

Maybe it's only in Canada :) In Cleveland, OH during recession, we bought houses worth $100K for $20-25K, fix them up for another $5-15K and rent for $1-1.3K/mo ROI over here 35-40% sometimes Well, now it's less but it does exist

[@J.D.Vision]

But the recession is over, & property values are rising back to where they were before the market crash.

[@stephanedibari533]

Deal exists, you need to understand one thing when watching the video. Phil uses a very important concept: motivated seller. Go check his video on this, because at the heart of it is the motivated seller. You need to be able to find this jem!

[@chrisprince47]

Im in a blessed position where I have been obtaining all my knowledge for years growing up. (being a son of a real estate investor) I have strong ambition in investing in real estate. I'm Currently 17 years old & am planning to do my first transaction (with the proper guidance from my father) within the next couple of months as I will be 18. I'm really interested in the "subject to" so I've been looking at all pre-foreclosure homes or homes with NOD's to see if there's potential there. Your videos are very informative & simple to understand. Thanks for the content.

[@dramani100]

Very interesting ! Since your comment was made 4 years a go did use subject to strategy or any other creative finance strategy so far ! Just curious !

[@UltimateBargains]

Phil, the earnest money deposit (EMD) is not needed for legally binding contract, unless the parties specifically agree in the contract that the EMD *is* required. That's why EMD is a *deposit* and not consideration. Contracts require the equitable exchange of consideration or the *promise* of an equitable exchange. For example, Buyer promises to deliver $100K to closing and Seller promises to deliver clear marketable title to closing. That's a promise of equitable exchange of consideration, and it has nothing to do the EMD. EMD is not consideration, because both parties have a claim on the deposit until the contract concludes. Most licensed brokers don't understand this legal definition, and it is always a source of frustration when dealing with brokers. Great video, by the way. ;-)

[@freedom_mentor]

Which is why is is SO MUCH BETTER to put $1 earnest money or $10 earnest money into the agreement. If a real estate agent/broker thinks there is a hole in your armor, they will make you their mission in life and it is very frustrating. Better to have a $1 than to deal with the after math of trying to explain why a real estate contract doesn't technically need monetary consideration. I have a close friend that's a judge and he was always taught that consideration must be at least a hill of beans. So, a single bean could be consideration. Again, create a deal that even outsiders don't want to try to dismantle.

[@UltimateBargains]

Phil Pustejovsky I would remind that judge that EMD is not legal *consideration*.

[@good2go4]

Hi Phil i was wondering when you use the subject two techniques you said that the owner still have a 88k loan (let say he purchase the house for 130k few years ago) but do the owner sell you at 88k (mortage balance) or at a higher price because I dont see where you explain the difference between the balance on the loan vs the price you buy it. Does it make sence? I dont understand why people can sell the house at the balance price if the house worth much more as they have paied capital on it. Thanks for explaining

[@freedom_mentor]

Depends. We try to negotiate subject to deals whereby we don't have to pay the seller any money but sometimes they want $5,000 - $10,000 in their pocket in exchange for the Deed.

[@good2go4]

@@freedom_mentor thanks for your reply... so what if the value is 150k when you close this deal you sign to get it for 88k plus maybe 5k? i try to understand the market I mean people will sometime just accept to loose 45% of the value of the real estate? and we have to find this kind if deal? if there are some I will try to find it...please explain thanks Phil

[@freedom_mentor]

It depends. Take this free course: courses.freedommentor.com @@good2go4

[@Grod77711]

Best KZbin REI Channel!!💯🔥🔥🔥🔥🙌🏼

[@UncleGabagoo]

Hey phil, I just got 5 houses under contract, which will be signing next week...I got the 5 houses all on craigs, all in one day! Including a Custom log cabin LAKE FRONT that was listed at $250 - down to $200 or under

[@freedom_mentor]

Congratulations. Now comes the hard part...monetizing them

[@UncleGabagoo]

Amen to that. Currently going to see them this week. Hey just wanted to say from One Christian man to another- Youre really helping alot of people.

[@henrylacks9979]

Awesome video, Phil. Thanks for the content.

[@benjamin6199]

Ok...here is are a few questions: 1) What if you don't sell in 3 months...get a hard money loan to pay off since its under market with equity? 2) Do you also get a "release of information" or "power of attorney" related to the property so you can manage and sell it and request pay off? 3) Frank-Dodd How does that come into play? 4) Do you get an assignment of interest (then maybe its not necessarily a sale) as well as a Quit Claim Deed or do you just get a quit claim deed when you take it over? Thanks Ben

[@freedom_mentor]

(1) If you own it, you don't have a time limit. (2) Yes (3) No. This video explains more about how that legislation affects investors: Dodd Frank Effects on Real Estate Investing (4) I typically get a Warranty Deed or Grant Deed (if in California)

[@benjamin6199]

Great...thanks you are rounding out a few gray areas. I really appreciate it. Thank you.

[@moshebiletsoara4465]

Powerful lesson Phil

[@mfkb558]

Phil, quick question. Once you take the property Subject To, how do the sellers move into another home with a mortgage still on their credit? Do most of them rent another home from you, or would it still be possible for them to get a lease somewhere else with an active mortgage showing on their credit report? Thanks for your answer.

[@freedom_mentor]

You can create some paperwork to show the payments are being made by you, which can help. Although if they are trying to get a new loan, the underwriter will only accept 75% of that amount so it can hurt their DTI.

[@mfkb558]

Phil Pustejovsky Ok. That makes sense. I am assuming that same paperwork would work if they are looking to lease an apartment or rent a home as well. I am working on my talk-off and need to be able to handle that objection smoothly. Thanks again.

[@myboybovice]

Hey Phil, Why would an owner do a Subject To if they have any money in it? Doesn't that basically say "Hey, I've owned this house for a year or two and paid 10 grand, but i'm willing to give that equity up to get out of the loan right now and try again."?

[@freedom_mentor]

Yes. It happens. I don't know all the reasons why someone would make such a poor financial decision but some do.

[@TheFrog767]

24.40 you answered it 😘 for me .👏👏

[@lucacras5552]

Does creative financing work outside of the US? (Europe for me)

[@TheChafff]

of course it does. most of these strategies can work almost anywhere... a few might differ depending on laws though..

[@stephanedibari533]

any example?

[@michaelpouchert4486]

Excellent video Phil Thanks for the knowledge....priceless

[@sg1345]

Phil Pustejovsky I'm thinking of doing a combination of both traditional and creative to be able to capitalize the pros from each. Would you suggest focusing on one or do you think its possible/realistic to be knowledgeable and successful using both methods?

[@MrMasterpain96143]

Hey Phil (or anyone with knowledge on renting)! I have a question about how you get your net gain from renting. You were talking about a house that costs about $130,000 and saying it would net about $250 a month from renters. I live in a college town in Illinois so maybe its different here, or maybe im just missing some costs. (All of these numbers are taken from zillow "zestimates" so im not sure how accurate they are either.) If you have a $130,000 home here you could take in $1,200 a month gross. P&I = -$465 /mo Taxes = -$171 /mo Insurance = -$67 /mo Total expenses = -$703/mo I understand there will be some expenses for maintenance, but im not sure how much is reasonable for that. $50 /mo? anyways, without maintenance- $1,200 - $703 = $497/mo Is that just a difference of location or am i missing expenses? Thanks for any help!

[@freedom_mentor]

The P&I, taxes and insurance costs sound very low, but maybe you can pull off those numbers. The maintenance could easily be $100 a month. Then you have to factor in management of 10% of gross, or $120 a month as well, if you truly want freedom from your investments.

[@MrMasterpain96143]

Phil Pustejovsky Makes sense. Thanks for the info. Big fan of your channel.

[@notnilc20]

I'm late to the party but the information in these videos is awesome! Thank you!

[@raylove8473]

Thank You Phil very informative!

[@abewingchun1]

My god bless you Phil for sharing this very valuable knowledge on real estate investing,

[@scotiawade229]

What school do you recommend for an investor? You mentioned in the video that you should get the educational knowledge.

[@freedom_mentor]

Start here. It's free and very educational: courses.freedommentor.com

[@thewanderingisraelite]

Phil.., you are a God send. A blessing on your house, family, and home..!! Now.., how can one avoid property gains tax on a California home sold for 1.2 mil. The lady is 73 years old..?

[@freedom_mentor]

Contract For Deed (Installment Sale)

[@nageshg6002]

excellent Phil.....u r doing great

[@jamesofalltrades4359]

Phil you are the MAN. I recently had someone fall in my lap that is about to lose there house. For $7000 it clears up the owned mortgage/liens. Renovation about $2-3000 with a positive cash flow every month. My question is with a "subject to" can the owner still refin behind my back with out me knowing? Since the loan is technically in there name.

[@freedom_mentor]

+James P. Jones V It is possible that the bank would allow the borrower to recast their loan behind your back? I guess it is humanly possible but making such a move would be very involved and would only benefit you :) NO, they couldn't refinance, though. But recast, yes. You may have to Google "recasting a loan" to learn more about it.

[@rajivramlogan9002]

Phil, I have a deal before me which I originally thought was traditional. I have a really old couple with tons of land all of which is 'Free and Clear'.A new University is going up right around this land. However all the land is agricultural, they can't build on it and they believe Town and Country is just too much head ache to go through to convert it into residential Property. Im going to eliminate money from this all together. Im going to let them transfer 1acre to my name, convert this acre to residential property. How the land is shaped, I have 3 front lots without having to do anything (road works, water connections, utilities). Im going to use One front property as a promissory note we will agree with a lawyer which is currently more than the value of the entire land as Agricultural, so its really generous. From 1acre, I can easily get 8 lots of residential land I can flip to a contractor or even develop myself. Is there a better way? I really lack cash, so I think this is my best option.What are your thoughts? Plus I am a contractor, a civil engineer and I deal with Town and Country everyday.

[@freedom_mentor]

If you have no money, you could tie up the property with an option and then flip that land to someone else down the road. But if you want to make any changes to that land whatsoever, you need the ability financially to close on the land and become the owner. Buying land by the acre and selling the lot is a GREAT business but you need money to do it. Perhaps you could raise the money from private sources?

[@rajivramlogan9002]

Phil Pustejovsky Im going to look for that Hard Money. Thanks Phil!

[@UltimateBargains]

Phil Pustejovsky Phil, my father bought land by using seller financing with a *subordination clause* to a construction loan. The down payment was almost nothing (probably less than $500 in today's dollars). The owner was tired of paying taxes on vacant land and wanted some upside, so he agreed to carry the note with a slightly marked-up price over the actual value of the land. No payments for a year, no interest (0%). Sweet deal.

[@craigmarkhardt396]

Phil, great information. I've been buying properties in a similar fashion for nearly a dozen years, started small and took a break in the down economy but am back at it. Its good to see someone who I can relate to when it comes to RE deals. I've made tons of mistakes during the process, and I've enjoyed getting some new ideas with your videos. Craig in Sioux Falls

[@ontarioinvestor4753]

Hey Phil, in the case of a subject to would it be more essential to take title under your personal name or a corporation and/or LLC ?

[@freedom_mentor]

+Ontario Investor Ideally, you would use a Trust to provide better anonymity as to who the new owner is.

[@orlandorayfield5154]

Hey Phil, I'm in a unique situation. I have No cash or credit. But I have a family member with a $400k+ home that are behind on payments but have 10+ years in home. They want to sell, and would like me to help. How could I go about turning this home into my 1st deal and create some $$$ for myself as well as bailing them out of a bad situation? I'm looking to pull the trigger ASAP!

[@freedom_mentor]

Orlando Rayfield Sounds like you need a complete education on what to do. Take this course ASAP courses.freedommentor.com

[@josephcortez5641]

Help I need to know ASAP on a mortgage refinance where I have 40 to 60 in equity. Do I do a refinance for the loan balance and then do a home equity loan or do a cash out refinance to get my equity and loan balance in one? I am very interested in doing this program but I am set to do a refinance just for the balance of loan today! Should I cancel and do cash out home equity refinance or continue with just the loan balance refinance and then a home equity loan?

[@gapt3519]

You have a good train of thought and make a lot of sense to. I like the way you presented this video. A lot of of twist and turns in a long drawn out deal. Beginners bad luck usually occurs there. It can get more complicated than one knows. You simplify with some very clear thinking. Thank you.

[@larrymoore6640]

Great 2 part video. The creative part you x0o need actual deals to really learn. Question I have is what is the video that talks about how to use your IRA.

[@freedom_mentor]

This video: kzbin.info/www/bejne/rmmlg5-YdseCn68

[@dstorm2.02]

Phil, my only question for you is, how do the sellers benefit from doing subject-2, owners financing and leasing property from them? Just a general question, I grasp everything your saying, but the part that am confuse about is why don't owner just sell the property themselves? i'm from NYC so these deals might be a little challenging for my area. Do you have any insight you can share with me. Thanks

[@freedom_mentor]

Every situation is different; there can be numerous reasons why creative financing can benefit the seller over a traditional sale; including speed of the sale, less commissions/closing costs and selling for a higher price; but that's just the beginning.

[@federicomoncloa1206]

What is the best way to become informed about pre-foreclosure homes so a "Subject To" deal can be proposed?

[@freedom_mentor]

Get the list

[@federicomoncloa1206]

Regarding, "Subject To" and " Owner Finance" real estate approach; where can one obtain the service to make all negotiations legal without a Real Estate Agent?

[@freedom_mentor]

Learn how to do them.

[@g8auto]

Hi phil great video very informative thank you. I was wondering what techniques you have as far is getting the sellers to contact you as far is a pamphlet being mailed out to all potential home owners and whatnot

[@freedom_mentor]

This video sheds light on what my answer would be to such a question: kzbin.info/www/bejne/gJLCkoqsqpl7jKs

[@g8auto]

Hey Phil I was just going to fill out your apprentice program. . I live in central Florida and I really would like to meet you just have a conversation lunch or dinner on me because you have been having the best knowledge for my business so far thank you

[@JP-db8hv]

Hey phil awesome video, question how do you find these motivated sellers and contact them what source Are you using ?

[@freedom_mentor]

This video is my answer to that question: kzbin.info/www/bejne/gJLCkoqsqpl7jKs

[@carltondarville5387]

Hey Phil can go into a little more detail about the lease purchase

[@freedom_mentor]

Carlton Darville This training goes into great detail on that subject: kzbin.info/www/bejne/ooS7eKuFnrejbaM

[@kevindolan2755]

thank you for these videos. they have really inspired me and when i am ready i will be sure to check out being an apprentice. ☺

[@christianmoreno5424]

Hey Mr. Phil, I'm a 20 yr old guy. I'm considering real estate but need a mentor. I have great people skills, bilingual, and I know I got what it takes to learn this and make it in real estate. I'm in the process of getting my real estate lisence I have a steady job I work from 6a.m. to 3:30 p.m. Now MY QUESTION...... Is there a way I can speak to you like by email for example.

[@freedom_mentor]

christian moreno To learn more about how to get mentored by me, go to www.freedommentor.com/apprentice

[@MagicTheGathering300]

I got a question regarding investing in properties from afar. I'm looking at this single family in a small town for only $5,000 , but it's a 4 hour drive there from where I live. How would you go at this situation if you were to buy it? It's a clear steal as other single families around the area go for $25,000 at the bare minimum. Does not need much work at all either. I would plan on renting the building out as opposed to a flip. Any suggestions or advice is very appreciated! Thank you so much!

[@freedom_mentor]

This video will explain the pros and cons: Investing in Real Estate Close to Home vs Long Distance

[@csm9291974]

You are awesome! You have best videos!

[@SamuelBambrick-Missionary4Him]

I am wanting to start creative real estate investing basically full time next year. If I only have a couple thousand set aside for it, what percentage of my net income should be dedicated to a creative real estate fund, and what percentage should go to other investments? (such as stocks, mutual funds, 401k, etc)

[@freedom_mentor]

If you are going full time into creative real estate investing, if you want to be successful, you need to put forth everything you have into making it work. Diversification works great when you keep your day job and are investing your savings.

[@Briluvr]

Phil, in your example of short term owner-backed financing would it be easier to offer $70k cash and avoid owner financing altogether? I know that doesn't fit with your video since you are explaining options with less cash but I was wondering if all cash would be easier.

[@freedom_mentor]

Easier for who?

[@Briluvr]

Phil Pustejovsky Easier for both seller and buyer: seller doesn't need to finance and gets their cash immediately and easier for me as the buyer not having to negotiate a complicated deal. It seems like I could yield the same profit by offering cash instead of owner-backed financing. Is that true?

[@freedom_mentor]

Owner financing is very fast and easy for the Buyer and Seller. Why tie up your cash if you don't need to?

[@Briluvr]

Phil Pustejovsky You were saying that it takes a motivated seller to agree to owner financing, I figured cash offer would expand my purchase options and make for less negotiation. I understand how important having free cash can be aswell.

[@michaelkane7999]

ok, so why not mix the two??? Tie up a little cash directly, owner finance the rest. They get cash up front, and you can use cash on hand as "motivation". Less Negotiation that way.

[@sabrinanour1739]

Phil can you talk about investing in pre construction

[@freedom_mentor]

Don't. Done.

[@BrooklynAttic]

Question: If I do a deed transfer without getting a new mortgage under my name, can I still deduct mortgage interest, property taxes and depreciation on a mortgage that isn't in my name? Or this there a way to transfer the mortgage as well without going through dp and closing? Thanks, great videos.

[@freedom_mentor]

Yes, you can still claim those deductions.

[@BrooklynAttic]

Nice, thanks. Is this because my name would be on the deed? Is it possible to take those deductions on my personal income if I transfer the deed to an llc while in this situation? Thanks again, very much appreciate the reply

[@freedom_mentor]

If the property is owned by you, your LLC, your corporation, your Trust or any other legal entity, if its a rental property, you can deduct the expenses which the IRS designates as deductible expenses; which includes mortgage interest.

[@BrooklynAttic]

Awesome. Thanks

[@southphillyhustler6184]

you're right Phil good knowledge courses you money

[@samtavoosian3059]

one of the cons of subject to deals if you want to keep them as rental is that you don’t have the chance to refinance the mortgage for a lower payment because the loan is not on your name. Am I right Phil?

[@freedom_mentor]

Incorrect. Of course you can refinance the property; you own it!

[@samtavoosian3059]

Phil Pustejovsky I had no idea! So you can refinance a property’s mortgage even if it’s not by your name. Thanks that’s awesome

[@freedom_mentor]

@@samtavoosian3059 I don't think you understand how a refinance works. When you refinance, you originate a NEW loan; you don't "re-work" the existing loan. That's why you can always refinance a property you own, whether the current loan is in your name or not.

[@samtavoosian3059]

Phil Pustejovsky I was worrying to get in some trouble from lender during the refinance since the original loan is not on my name. Pretty cool

[@kelvinyang7798]

Hi, Phil where to find motivated seller in the creative way? Thanks

[@freedom_mentor]

This video discusses why I don't share that information with anyone but my Apprentices: kzbin.info/www/bejne/gJLCkoqsqpl7jKs

[@billmorley3530]

Notice he didn't reply. In his words: "knowledge (which he wants to sell to you) costs money". These videos are not to teach you the specifics of creative real estate, but to get you all pumped up to pull out your credit card.

[@dentongordon1778]

Phi,. hoping some day i"ll be able to thank you enough for your dedication to imparting knowledge to the masses on this topic of "Real Estate investing".. You have admitted that everyone has their motivation to do the things they do, but your knowledge and dedication has no bound and i appreciate that.Your premium course is what i"m after now.

[@naterodda7500]

I have been toying with becoming an apprentice. To save a lot of time, do you currently work with any students in Billings, MT?

[@freedom_mentor]

Not at the moment I am writing this comment

[@Oliapgh]

Hi Phil.. I am not a real estate investor and not trying to be but somehow I ended up watching almost all of your videos. I am, though, looking to buy a house to move into and of course I want a deal. So the first thing I look at, when I find something I like, is a previous purchase price. And if I see the house been sold for 90k 6 months ago and now the price is 175k, no matter how much I like what I see I don't feel as if I am getting the deal. More so, I think every retail buyer would stay away from this kind of deal. What do you say on that?

[@freedom_mentor]

I just sold a property that closed on Friday that I paid $200,000 for it in January 2015 and the new retail buyer paid $236,000 in March 2015. I didn't fix up the house in anyway. What do you say to that?

[@Oliapgh]

Phil Pustejovsky Makes me wonder who is dumber.. the one who sold it for $200k or the one who bought it for $236k :)

[@freedom_mentor]

Olia O It appraised for over $250,000 so the buyer got a great deal and the house was fully furnished with over $20,000 in furniture. The buyer was smart. The seller needed cash desperately and had to sell very fast in order to cover a huge bill immediately. I closed in 4 business days from the day he first called me.

[@JESUS_IS_GOD]

Phil Pustejovsky I need to contact you a.s.a.p. you'll be blown away by what I have to offer you. (Don't mind my satirical KZbin channel for my gaming / motorcycle hobbie besides your smarter than to judge a book by its cover) I'm flying into the St.Pete area this Friday10th - Wedn.15th to starting due diligent...I have been mentored by someone similar to you, but I like your personality/approach better and we have that street smart forget college approach. I am in a "Creative" deal right now buying a portfolio of 22 single family homes in the Tampa-St.Pete area off of out-of-state seller. I'd like to talk to you first personally regarding my finances (which will again blow ur mind) to discuss the mentorship for growing my portfolio...great cash flow btw WHAT IS YOUR EMAIL ADDRESS? MESSAGE ME THROUGHT MY CHANNEL PRIVATELY...I'm on my smart phone and can not see your xonract info

[@JESUS_IS_GOD]

MRBADASS *contact info By the way according to the comments some people just don't get it and thats okay as we need those people to function as a society not everyone can be Donald Trump so to speak :)

[@JtreeProductions]

Hey Phil, Love the videos Keep up the great work! Quick question. If i'm structuring an owner financing type deal what is the best way that you have found to structure the length of the agreement? Long term or short term?

[@freedom_mentor]

Jonathan Ockletree Depends.

[@nevinechawra4136]

Phil - do u purchase mortgage life insurance for all properties you own? what is your take on mortgage life insurance? thanks for sharing this wealth of information!

[@freedom_mentor]

No. My take is this...why would you want to buy mortgage life insurance on investment property loans?

[@nevinechawra4136]

I am told if I die, my children will be stuck with a lot of debt?

[@freedom_mentor]

If you borrowed intelligently on your investment property, they wouldn't be "stuck" with debt; they would be fortunate to have inherited an investment property with leverage. Watch this video: kzbin.info/www/bejne/iaq9pptvms1jgKs

[@jameshuggins7320]

Phil, I've got a deal on the table and debating on taking it: Older lady owes $200k on her condo. asking $170k. prefers cash but is open to creative financing. the note is $1000, currently rented for $1200 with a year left on the lease. condo fees are $284/month. if I simply make her payments and pay the condo fees, there is negative cash flow. do you see any way to make this deal more attractive?

[@freedom_mentor]

James Wesley Is she willing to bring $30,000 cash to the closing? If she owes $200,000 but is asking $170,000, has she done the math and determined how much cash she can bring to closing?

[@MrDanAldehyde]

Phil, first of all, thank you SO MUCH for the videos you post. I love all the content you've provided. But I do have a hgue question to ask you: What I personally have never understood on the creative financing side is the mindset of the motivated seller. In part 1, you mentioned that the deals are harder to find on the market (i.e. MLS) because the barrier of entry is much lower therefore increasing competition. If that is the case, I feel like it would be most logical for sellers to list on the MLS as opposed to working with direct marketers. So what keeps sellers from listing their property on the MLS? What incentives do I bring to the motivated seller that the marketplace can't?

[@freedom_mentor]

+Daniel Cho What keeps motivated sellers from listing on the MLS? Irrational thinking. Some people don't want to deal with real estate agents. Irrational to you and me; but not to them.

[@ahmedismail2518]

Da

[@rohan95dalal]

In my state (Ga) I can get approved for FHA up to around 650k for a multi family property (four units). Would it make sense to buy in at 5% and eat the mortgage insurance as a loss then rent out the other units as rates are to go up and supply will diminish in the market? Not looking for something pretty but something I can eventually cash out refi and snowball. I don’t want to wait until December when rates push to 5%+. I’m also worried if there’s another slow down in the market rates will shoot up! I’m 23 with a full time business and would love to recover some of my taxes from the (loss) of all costs associated with the property as well as move out of mom’s house lol. Any help would be wonderful. Thank you!

[@rohan95dalal]

Also if I were to open another business I would need a high net worth on paper. (Side question) If the market crashes and prices drop 20% but rates increase is it a wash basically? Should I be pushed to buy now and lock in a rate or wait it out. I want to start building wealth but obviously afraid of taking a *uneducated* leap.

[@freedom_mentor]

Run the numbers. It needs to cashflow well to put up with the landlording of a 4 unit; but in theory, it's a winning idea if you can qualify for the loan. I have a great video on property management right here: kzbin.info/www/bejne/n2qcZXaJnJeCj6c

[@freedom_mentor]

We have no idea what the future brings, especially as it pertains to real estate values. Multi Family Units are not nearly as significantly impacted by macro economic market swings as single family homes. Furthermore, the increase in rates may only be an 1/8th or a 1/6th of a percent over the next several months, if any, so that is negligible. The real issue is finding a deal that have the financials that would be needed to make it work. Also, consider watching this video too on the subject of cashflowing real estate: kzbin.info/www/bejne/rarSoHxrf55ki68

[@icefishing804]

How do you do the subject to deal? I have a similar deal. Like exactly same as yours lol.

[@freedom_mentor]

It is described, in great detail, in this video: kzbin.info/www/bejne/ooS7eKuFnrejbaM

[@hotant522]

What is in it for the seller to do a "Subject to", since the buyer does not really have a legal obligation to pay the mortgage? Or am I missing something?

[@freedom_mentor]

Get out from underneath the payments. Also, if you give them some money in their pocket, that's a huge incentive.

[@davidleitz6166]

A good example is subject to financing in Canada. How would the seller transfer title to buyer with mortgage registered on title We do not have title companies in Canada.

[@freedom_mentor]

Same way as the States. We don't use title companies to transfer title in the States on Subject To deals. We record the Deed ourselves at the Register's Office (or in Canada, the Land Title Office).

[@ontarioinvestor4753]

Cant stress how helpful your videos have been for me and I really would like to apply for your apprentice program but I'm curious on how it would work since I live in Canada. Can you help me out Phil?

[@freedom_mentor]

+Ontario Investor This video should feed that curiosity: kzbin.info/www/bejne/mGqWl6hsn6yYe9E

[@mikeparker5596]

I was contacted by one of your trainers and made an appointment for a call back but was not contacted. I would like to be trained by one of your mentors. I live in Olympia Washington. I am looking forward to hearing from your trainer. Thank You. Mike Parker.

[@blakemason8014]

How do I become an apprentice?! I want my family secure! And I have a chance at 20 yrs old!

[@freedom_mentor]

blake Mason Go to www.freedommentor.com/apprentice

[@marsciaanderson8507]

Hi Phil, my name is Marscia and I live in Springfield, IL. You mentioned that you have openings across the country and I was interested in any opportunities that you may have in my area.

[@freedom_mentor]

Marscia Anderson Apply to my apprentice program to find out: www.freedommentor.com/apprentice

[@fluent_In_finance]

Hi Phil, great content! you're incredibly competent. I'm thinking about owning 3 properties this way (owner financing) 2 under $100k and 1 over $100k. The 1 over 100k i would live in it & Airbnb it & the other 2 would be traditional rental. My strategy is i'll offer 10% down on each, PRINCIPAL ONLY payments for 3-7yrs, lease it to tenants and have both tenants & Airbnb help me to make the payments much faster. I have 30k in reserve & only 2 of the properties need little work (paint & tiling or laminate flooring) I want to buy & hold & not have to go to the bank to get a mortgage. I own a duplex for 2yrs now and have some landlord experiences. Over time I want 8-15 properties that cash flows pretty well from the get go. Do you think it's too risk or doable so long as i'm discipline & can make the payments?

[@freedom_mentor]

I think you will discover that what you have outlined on paper may not turn out to work exactly as you have envisioned it, in real life. First, your AirBNB property will require more money than just a down payment to pay for more furnishings, etc. Second, negotiating owner financing terms that are principal only for 3-7 yrs is usually difficult unless you are overpaying for the property. Third, traditional rentals don't earn nearly as much as AirBNBs and other creative techniques. Watch this video to learn more on that topic: kzbin.info/www/bejne/rarSoHxrf55ki68

[@fluent_In_finance]

@@freedom_mentor thank you for your feedback Phil! Truly appreciate it

[@MiguelRodriguez-mt1wt]

How do you get a house under contract as an investor not a broker??

[@muirrobinson]

Phil on a previous youtube you talked about entities. You did not mention Schedule E. I own 5 rental properties and have always used schedule E to report earnings. Can you comment. Thank you. Linda

[@freedom_mentor]

+Linda Muir-Robinson If you own rental real estate (either personally or in a pass through entity like an LLC), your accountant will place the income and expenses on Schedule E.

[@gagarius]

Let me ask you a question, if I may. Let's say you got a "subject to" deal. The seller, in a hypothetical 100k home, has 20k in equity. If he transfers the deed to you, what happens with these 20k? You agreed keep the morgage payments going and got a house for no nome (roughly), but what happens with his equity? Is it lost, because i haven't heard you mention that yet... Thanks for the content!!!

[@freedom_mentor]

gagarius Whomever the owner of the property is, obtains the benefit of the equity. So if you purchase a property subject to the existing financing with $20,000 in equity, you instantly gain that $20,000 (on paper, anyways).

[@gagarius]

+Phil Pustejovsky wow!!! Thank you soooo much for the reply. I was unsure, because he will lose those 20k, right? It is as it was lease, where he payed fo using the home for that period and then you assume the payments... Interesting. As you said, he has to be motivated. I'm following your videos and they're really helpful! Thanks for the the time and keep up the amazing work!

[@bigbubba4001]

I been wanting to do real estate for a long time. I can't comprehend much about subject to and all of that craziness but what's worse is I have $100,000 to do this with and can't see how I'd make approx 6 grand a month investing it... So I'm going to keep renting my house, start a much needed mom and pop corner store and bank the rest till I can pay the $150 grand to buy the house im living in cause the owner won't come down on price, wants cash upfront if I want it and the bank said no loan even with 75 down...

[@freedom_mentor]

+Bubba's Bass Lessons In order to generate $72,000 cash per year from a $100,000 investment, you would need to secure a 72% cash on cash return on your investment. That is a tall order but possible through creative real estate. You would have to find great deals (or at least one great deal), and my thoughts are that you may need to go the apartment building route.

[@donnacarswell3886]

Phil, The example of the Traditional Buyer that needs $5000 to pay off 401K loan - did you say they have a VA loan? Closing Costs on a VA Loan? Thanks.

[@freedom_mentor]

You may have mixed up two things. A creative way to structure the deal is to pay the seller $5,000 and then take over their VA loan subject to.

[@jimmydavis4735]

Great Content

[@prosperhere]

Great content. Thanks.

[@Thejasonrogers]

Just got my real estate license yesterday hoping to gain some up front capital to throw in an investment property.

[@johnnyvidal1578]

Real great video!

[@erik6690]

Phil, what could cause someone who owns a 100K house outright to sell it for 70K? The only situation I could think of is a super broke person who inherited the house and is lacking smarts?

[@freedom_mentor]

Many, many, many, many reasons. I just bought a property that once fixed up will sell for $140,000 (it may take $25,000 to renovate it to that level) and I bought it for $60,000. The sellers were very smart, they had plenty of money, the husband worked at Lowe's of all places, but it was an extra house and they just didn't want to fiddle with fixing it up.

[@koworld1]

I could use a mentor. I'm a 22 year old property owner in Baltimore,Md. I want to make my first sale on this property very soon. i got a great deal from the start and i don't want to sell myself short.

[@RobSharkie]

How did you own so young?

[@mikhailkurylenak1515]

RobTheSharkie There are many very very bad areas in Baltimore MD, some cost 5,10,15k. Pretty similar to Detroit

[@storxusmc]

+RobTheSharkie i bought my first house at 18yrs old, and my 3rd by the time i was 22yrs old just moving for job locations, not knowing a thing about real estate investing.. just words from my grandfather to never waste money on renting a property

[@deborahrichardson2778]

love continue on your journey

[@gayeherring4255]

Well I can't seem to get the book

[@freedom_mentor]

Go here: www.freedommentor.com/free-book

[@TacTechMic]

Awesome stuff, Phil. But, I could also see tweaking things a bit, for more of a feel good for the seller… down the line. Maybe so much so, as to be able to turn them into another source. I know that word-of-mouth is huge in the world of self employment, and I love building a great rapport with my customers. peace

[@evelynrobles702]

LOVE IT! THANKS.