Transcription
Pillar number four, this one right here, is really the whole concept behind closing more deals. It is truly getting your head around smart investing, or what we refer to as investing strategies. Because at the end of the day, what happens is, the first three pillars are the core foundation of your successful business. It is what gives you the confidence, it's what allows you to move faster, it's what allows you to close more deals, it's what allows you to find more deals, all of that. But pillar number four is the key element that allows you to truly execute on all of the work that you've done in the first three pillars.
It is what allows you to be able to look at every lead as it starts to come in and figure out which strategy works best for that lead, based on the foundational work of market research and segmentation. So it tells you, if it's in this market, this is the best strategy to do there. This is the best strategy to do in this type of market. It also really prepares you to have the right tools in your tool belt to be able to do the job efficiently, which means now you will be able to convert more leads that come in so that you can be more profitable and be more consistent in your actual execution of deal closing.
And so, pillar number four, we call it smart investing because you're not being a one-trick pony. You're actually learning investing strategies. And so we really cover what's known as the four main ways of profiting from a lead flow that comes into your business, and or it hits your desk. You're to learn four investing strategies that will give you the core ability to become a transactional engineer, to do deals right now, and to build wealth long term. But more importantly, to be able to execute on multiple deals that hit your desk. And that is the key to having a smart investing pillar inside your business.
So what does this look like? Well, obviously, inside of here, I can't really fully execute on all these four main tiers of investing, but they break down like this: Quick cash strategies. And so, a quick cash strategy is an earned income approach. It is what a lot of people refer to as wholesaling. It is just really learning how to make quick cash on leads that either don't fit your primary investing strategy, or it's just not in an area that would hold, um, or it holds too much risk for you to do in one of your primary investing strategies. So we quick turn it. Where a lot of people go wrong is they only make this one tier their primary strategy. So really, what they're doing at the end of the day is they have a glorified job, and they're making everyone else wealthy.
But here's the other side to this. Under quick cash strategies, there's actually six different ways to wholesale a deal. Whether that is through traditional, whether that's through co-wholesaling, whether that's through option wholesaling, retail buyer wholesaling, commercial wholesaling, or even hoteling or REO wholesaling. There's a plethora of different ways of understanding quick cash strategies to become a master wholesaler in this business. And all of them require the understanding of knowing how to use different paperwork to get each one closed, different timelines, different buyers for each one of those. And when you really dig into this smart investing and you don't just pigeonhole yourself to inside of just this strategy to be a traditional wholesaler, you limit yourself to all the other wholesaling strategies or quick cash strategies. And so when you master all of them, you become a master wholesaler. But that's just one. You don't want to just pigeonhole yourself into that one strategy, which then leads us into creative financing strategy.
And oh my word, could this go on for days? Because you not only do you have straight seller financing, you have sub-twos, you have wrap mortgages, uh, you have land installment contracts, creative financing, you have contract for deeds, um, you have lease option, lease control. I mean, the list goes on and on. And the premise is all the same. You're you're not using banks, you're taking over an existing loan on the property. But each one of them are different in the way that you structure the paperwork to be successful in that specific creative financing strategy. Now, I say that with you because what this strategy allows us to do is work a whole bunch of leads that some of our other strategies would not allow us to work, maybe because they owe more than what we can actually pay for the property. And on top of that, in some of these quick cash strategies, there are unique ways to actually buy properties that are upside down without doing short sales or even getting the sellers to pay off some of the mortgage because we can control the contract with an in-purchase price that allows us to let the property pay down itself and create equity, which then we can buy.
But it also opens up the idea that now we can not be a one-trick pony. We can be a smart investor using smart investing strategies that allow us to work multiple lead flow, which then leads us into number three of the four investing strategies, which is fix and flip strategies. This is by far a classified as a primary strategy. And the reason it's a primary strategy is because of the amount of profits that you can make on these types of deals versus a quick cash strategy where it's limited to a certain amount of profits because you're quick turning the contract, and creative finance structure deals where it's limited because it's typically a control for a linked amount of time. Where in fix and flip strategies, we can get in and start making 20, 40, 80, 100,000 on a flip within two to four months in some cases, which creates that windfall of profits that we need to then go execute and grow our business in other ways, maybe through investing strategy number four, long-term wealth strategies.
But if you're not focused on a primary strategy like fix and flip, then you're leaving out an entire bucket of profits. If you're looking at a fix and flip and say, well, I'm just going to turn that over, here's a quick flip, make 15 grand on it, or you could have took it down and made 60,000 on it. It just logically, financially, does not make sense. And the only reason that you would not take down that deal to make the 65,000 is because you did not do pillar one correctly to have everything in place to give you the confidence to move forward inside of that specific investing strategy. And that is why we preface these four pillars over and over to be successful in this business.
Now, which ultimately ends us with the fourth and the main final primary strategy, which is long-term wealth strategy. And there's so many ways to do this. Most new investors don't see this as an option for them because they say they don't have the money for it. But there are non-traditional lending sources out there that are happy to do these types of deals for long-term, 5, 10, 15-year financing. You pay a little bit more for the interest, but if you get the right deal, it doesn't matter. Now you're into the cash flow, and you're owning assets, which means this, the more of those you acquire, you can now go to traditional banks because now you have income-producing properties, and your net worth is going up, which now makes you a vital candidate for a traditional bank to start giving you long-term cheap loans, less than 3% on the money.
The other side of it is, is in these long-term wealth strategies, a lot of investors think that they have to put 20% down to go traditional financing versus using a house-stacking method where they, in most cases, don't use any of their money to acquire the property. And then they can use a traditional bank on the back end to back them out of it with paying back the front-end funding, which means now they have rental properties with none of their own money in them. And we can just sit and stack houses and stack apartments and keep stacking and build a very, very profitable portfolio, which is the whole reason that we start this business in the first place. No one ever sat and said, oh, I want to get into wholesaling to have another job and to sell contracts. They always have looked at real estate and said, oh, I want to build long-term wealth with passive cash flow to retire. They get started and they set limiting beliefs on themselves because they say, oh, well, I don't have credit and I don't have money, so I guess I need to start in wholesaling. Well, that's just because they haven't gotten the right education, they haven't followed the right processes, and they haven't put in the work for like a pillar one, two, and three to really execute on building that long-term wealth model for themselves. And it's only because of lack of specialized knowledge. And I encourage you to dig into that specialized knowledge, um, so that you can start leaning in on the long-term wealth model as well.
So guys, this is your four pillars. If you've enjoyed this and it's enlightened you, um, at all, uh, I hope you enjoyed this. I hope you enjoy the book, and I look forward to your comments and any questions you have inside of our our community through our Facebook group. And until then, this is Zach. I'll see you. Bye.