3 Reasons Every RECFH Real Estate Entrepreneur Should Create A Home Buyer Partner Pool

There are 4 Member Types operating within the Real Estate Cash Flow Hunters Eco-System;

1. Real Estate Entrepreneurs
   
2. Mortgage-Ready Landlords
3. Joint Venture Partners &
4. Home Buyer Partners (aka Tenants)

One of the most distinguishing factors of the RECFH Eco-System is the fact that tenants make money as well. It's always a jaw-dropper every time we mention that during a RECFH Orientation.

But take a moment to think about that.

Doesn't it sound logical, considering the typical adversarial relationship between tenants and landlords? Who hasn't heard the horror stories about tenants destroying property or skipping out on rent and landlords neglecting repairs?

What if we were to allow the tenant to make money on the deal like everyone else?

WITHOUT affecting the profit margin.

Duh! Why hasn't anyone else thought of this concept? Let's be clear, we're not talking about Rent-To-Own, which is admittedly a step in the right direction.

We're talking about RENT-TO-PROFIT!

Rent-To-Own keeps the tenant viewing things from the emotional perspective of the retail market while RENT-TO-PROFIT moves the tenant to view things from the wealth-building perspective of the investor market. However, it's important to note that the tenant still achieves homeownership, but more effectively.

As a RECFH Member, Home Buyer Partners can accurately set their closing date [usually within 2 to 12 months - assuming they can afford rent in their local real estate market] even if they have damaged credit, little to no savings, and/or high consumer debt! In large part, this is made possible by YOU, the RECFH Real Estate Entrepreneur.

That's right! You now have the unique privilege and opportunity to create homeowners and financially free real estate investors in one fail swoop! All you need to do is invite those you deem to share our core values to a RECFH Orientation (let the system do the rest)!

Don't forget - we can invite candidates anywhere in the United States!

Only 3 Out of 10 HBP Candidates Will Be A Good Fit: 

Our greatest challenge in working with RECFH Home Buyer Partners is their tendency to be emotionally driven which is why, for their sake and ours, we have to stick to the principles!

You see, we're not in the homeownership business! We are Real Estate Investors and most of us happen to be homeowners - by choice!

What the RECFH Home Buyer Partner has to understand is that we are depending on them to look past homeownership to the next property and so on...

This is the only way we can even hope to create and maintain a self-sustaining environment. If they follow the blueprint we give them, homeownership is automatic. Unfortunately, 7 out of 10 aspiring homeowners can't see past homeownership and aren't interested (unconsciously) in anything more than getting into a home. For them, material things have become the primary priority in their lives. We have to have the courage and the strength to withhold invitations from this group. They simply are not ready - yet!

Making A Difference:

Just think of the difference you can make in a family's life by giving them the opportunity to know their closing date, 2 to 12 months in advance even with damaged credit, little to no savings, and/or high debt.

How can we accurately predict a closing date?

If the candidate can afford rent in their local real estate market, we as Credit Optimization Experts can usually provide them with a blueprint to close on their first/next home within 12 months. Yes, there will be situations where underwriting guidelines dictate a longer period (i.e. foreclosure requires 3 years, bankruptcy requires 2 years, extraordinary debt loads, etc.) but in those situations, we can also get creative (i.e. owner financing, etc.).

Special Note: Don't Forget  - One of Our Secret Weapons is Building Business Credit to Optimize Personal Credit!

The Bottom Line:

RECFH Home Buyer Partners, in terms of how quickly they will move into their first/next home and ultimately purchase, will fall into 4 categories;

1. They can joint venture with RECFH MRL, JV Partner, and/or Real Estate Entrepreneur on an inventory property
2. Work with a RECFH Real Estate Agent (Power Team Member) to find a lease-purchase property.
3. Find a potential deal on their own (using investment criteria that you provide) and submit the lead to you to engage the seller and negotiate win-win terms
4. Execute their blueprint action steps and wait to purchase a property on their pre-determined closing date.

Either way, you will have helped them take the first step (homeownership) toward achieving INFINITY - utilizing real estate as the vehicle and that is something to be extremely proud of!

3 Reasons Every RECFH Real Estate Entrepreneur Should Have A Home Buyer Partner Pool:

1. Leverage: A major benefit of having a Home Buyer Partner Pool is your ability to leverage it toward building your Inner Circle. What Landlord or JV Partner wouldn't appreciate the fact that you already have a pool of buyers ready to purchase any property you buy - before you actually buy it! 
2. Recurring Income: The most important benefit of having a Home Buyer Partner is, of course, the fact there is a massive market and they could be the driving force behind your recurring income stream.
3. Reverse Wholesaling: The home Buyer Partner is arguably the cornerstone of the entire RECFH Membership Organization because they give us a massive opportunity to Reverse Wholesale. Let's not forget the potential of having hundreds of HBPs out there looking for deals - just for you - this could be a true game-changer!

Good Hunting!

Wake Up And Smell The Coffee; Real Estate vs. Feel Estate

It's interesting how different marketing is from operations. When I was coming up with the title for this article, the first thing that came to mind was - I don't even like coffee. In fact, I was taught coffee was for heathens and tea was for civilized folk. But even if you're a heathen, I need you to understand this very important topic involving marketing and real estate.

For a long time, I was baffled with the fact that practically every new AND experienced real estate investor that we introduced to the RECFH Eco-System would be paralyzed to the concept of "Reverse Wholesaling."

What is Reverse Wholesaling [The RECFH Way]?

Reverse Wholesaling, the RECFH way, is selling real estate at a higher price first, and then (afterward) buying the property at a lower price. This process allows us to spread and extract as much risk as possible from the transaction - making it safer for all parties involved!

Back to the reason, I was baffled;

For the life of me, I couldn't figure out why no one could wrap their minds around this concept. They were all hooked on finding the deal first and then trying to find the buyer - which is obviously wayyyy riskier - for two reasons;

1. Each day you hold the property costs money
2. You may not find a buyer and get stuck with the property and have to take a huge loss (if you can afford it) or lose the property to the lender

You see, I could somewhat understand why the experienced investors had a problem - it's the opposite of what they're already used to doing. 

But what I couldn't understand was why the newbies were having such a problem with it. They have little to no experience at all. 

Then it hit me!

Real Estate vs. Feel Estate

The newbies' only exposure to real estate was the retail market. The retail real estate industry has done a superb job at marketing to the retail market. It's not uncommon for industries with big-ticket items to allow buyers to view products first and then go back and try to figure out if they can even afford to pay for it. In fact, they actually get involved to the extent of helping the buyer get qualified.

Retail Home Buyers are largely driven by emotions. The home is usually the biggest expression of who they are so, more times than not, they need to feel good about the property itself. That is why we call this type of purchase "Feel Estate."

In case you haven't figured it out yet. Emotions have no place in real estate investing! We purchase property to earn a profit, which is why we call this type of  purchase "Real Estate."

There is no way we could successfully approach sellers in the investment market and then come back later when we find out if we can afford to make the purchase. In fact, sellers (deals) don't even reveal themselves until they feel certain that you can purchase - and fast.

Can you imagine paying for advertising that says,

"Sell Me Your Home At A Price Much Lower Than You Want AND THEN I Might Get Back With You Later To Let You Know If I Can Afford It." I BUY HOUSES - CALL TODAY!

I hope you can see how ridiculous that is.

HOW WE DO IT:

As a RECFH Real Estate Entrepreneur, you have the opportunity and privilege to compete with the big boys & gals - only if you operate the system properly!

Reverse Wholesale by getting your buyers (Mortgage-Ready Landlords / JV Partners - Inner Circle) in cue first. Then operate from a cash perspective and make deals to purchase properties faster & safer than all of your competitors.

You get to pick and choose who you want to work with because no one can offer what you can. So ask yourself this question;

How many millionaires am I going to create over the next 5 to ten years?


Good Hunting!

The FlipSafe Program; A Risk Management Tool You Should Be Using!

This property is included in the FlipSafe Program.

It's a rare privilege to have opportunities to crush the risk like RECFH Real Estate Entrepreneurs can! We especially like to use the FlipSafe strategy in markets that are not in what we call "high-profit rental markets."

What is a "High-Profit Rental Market?"

We define a high-profit rental market as a local real estate market that is experiencing stable or rising appreciation rates. In fact, for the most part, we only buy and hold properties in High-Profit Rental Markets. We buy and flip properties in local real estate markets currently experiencing decreasing appreciation, etc (non-high-profit rental markets).  Which brings us to our next question;

What is the FlipSafe Program?

The FlipSafe Program is an exit strategy we use when properties we are flipping don't sell within the time frame planned by the Real Estate Entrepreneur.

For this reason, we like to buy and flip properties that can be rented with positive or neutral cash flow, if necessary.

Here's how it works;

Step One:

The Real Estate Entrepreneur structures a buy and flip real estate cash flow project. The Real Estate Entrepreneur makes sure to keep a RECFH Mortgage-Ready Landlord in cue to purchase/refinance the property in case it does not sell within the time frame projected [i.e 120 days].

Step Two:

The property is rehabbed/built and placed on the market to be sold to a retail home buyer.

Step Three: (Only If Necessary]

If the property does not sell in the designated time period. The RECFH Mortgage-Ready Landlord will come in to purchase/refinance the property with conventional financing, thereby extracting the capital utilized which is now freed up to redeploy into the next cash flow project.

As always, the project is structured with optimal risk and profit potential for ALL parties involved. This is one of the many major benefits of being a member of the Real Estate Cash Flow Hunters.


Safe Hunting!