hi I’m Evan Carmichael welcome to an edition of ask Evan in today’s episode
edition of ask Evan in today’s episode
edition of ask Evan in today’s episode I’m going to answer question from one of
I’m going to answer question from one of
I’m going to answer question from one of my newsletter readers Indra who is a
my newsletter readers Indra who is a
my newsletter readers Indra who is a real estate investor buys buildings and
real estate investor buys buildings and
real estate investor buys buildings and then rents out the units and it’s having
then rents out the units and it’s having
then rents out the units and it’s having a hard time convincing the people who
a hard time convincing the people who
a hard time convincing the people who rent to then want to buy and own the
rent to then want to buy and own the
rent to then want to buy and own the units so it’s offered as an option to
units so it’s offered as an option to
units so it’s offered as an option to rent to own and basically provide as
rent to own and basically provide as
rent to own and basically provide as much information as possible to make it
much information as possible to make it
much information as possible to make it really easy for somebody to become an
really easy for somebody to become an
really easy for somebody to become an owner instead of just a renter but it’s
owner instead of just a renter but it’s
owner instead of just a renter but it’s having a hard time convincing people to
having a hard time convincing people to
having a hard time convincing people to make that stuff from being erected to a
make that stuff from being erected to a
make that stuff from being erected to a buyer and one of my advice on how to do
buyer and one of my advice on how to do
buyer and one of my advice on how to do it so Indra thanks for the question I
it so Indra thanks for the question I
it so Indra thanks for the question I think when you’re dealing with renters
think when you’re dealing with renters
think when you’re dealing with renters and buyers is different breeds and at
and buyers is different breeds and at
and buyers is different breeds and at some point in somebody’s life they they
some point in somebody’s life they they
some point in somebody’s life they they make you that transition where they want
make you that transition where they want
make you that transition where they want to you know own but it could take years
to you know own but it could take years
to you know own but it could take years and you may not have time to wait that
and you may not have time to wait that
and you may not have time to wait that out I think the biggest challenge for
out I think the biggest challenge for
out I think the biggest challenge for you is in your qualifying at the
you is in your qualifying at the
you is in your qualifying at the beginning and instead of making an
beginning and instead of making an
beginning and instead of making an option to be rent to own I’d make that a
option to be rent to own I’d make that a
option to be rent to own I’d make that a mandatory thing so you’re looking for
mandatory thing so you’re looking for
mandatory thing so you’re looking for people who want to buy right and you can
people who want to buy right and you can
people who want to buy right and you can give them a program where it’s either
give them a program where it’s either
give them a program where it’s either six months or a year I don’t know
six months or a year I don’t know
six months or a year I don’t know however long you want them to be you
however long you want them to be you
however long you want them to be you know breakfast for before they buy but
know breakfast for before they buy but
know breakfast for before they buy but you make that part of your qualification
you make that part of your qualification
you make that part of your qualification process so you’re not just getting any
process so you’re not just getting any
process so you’re not just getting any renter in there you’re getting somebody
renter in there you’re getting somebody
renter in there you’re getting somebody who from the beginning understands that
who from the beginning understands that
who from the beginning understands that this is the program that you set up for
this is the program that you set up for
this is the program that you set up for them and there are people who do want to
them and there are people who do want to
them and there are people who do want to you know rent to eventually own but
you know rent to eventually own but
you know rent to eventually own but there’s a lot fewer than than than just
there’s a lot fewer than than than just
there’s a lot fewer than than than just people who want to be renters right so
people who want to be renters right so
people who want to be renters right so you got to go and find them and do your
you got to go and find them and do your
you got to go and find them and do your marketing to find them it’s a lot better
marketing to find them it’s a lot better
marketing to find them it’s a lot better i think then trying to go after just any
i think then trying to go after just any
i think then trying to go after just any renter somebody who’s not a qualified
renter somebody who’s not a qualified
renter somebody who’s not a qualified prospect and hoping to turn them into an
prospect and hoping to turn them into an
prospect and hoping to turn them into an ideal customer so with any business you
ideal customer so with any business you
ideal customer so with any business you want to you know i like the idea of
want to you know i like the idea of
want to you know i like the idea of using a thin wedge into the market so
using a thin wedge into the market so
using a thin wedge into the market so you have something that’s easy for
you have something that’s easy for
you have something that’s easy for people to to buy and get used to want to
people to to buy and get used to want to
people to to buy and get used to want to use and then as you get into the
use and then as you get into the
use and then as you get into the business you’re able to sell more to
business you’re able to sell more to
business you’re able to sell more to them and upsell them but it has to be an
them and upsell them but it has to be an
them and upsell them but it has to be an ideal client you don’t want to spend a
ideal client you don’t want to spend a
ideal client you don’t want to spend a lot of time working with that you know
lot of time working with that you know
lot of time working with that you know thin wedge in and that’s your only
thin wedge in and that’s your only
thin wedge in and that’s your only entering into that business so for you
entering into that business so for you
entering into that business so for you how do you apply that to your market you
how do you apply that to your market you
how do you apply that to your market you don’t want to bring on the renter
don’t want to bring on the renter
don’t want to bring on the renter who will never become owners if you know
who will never become owners if you know
who will never become owners if you know that they have no intention of ever bind
that they have no intention of ever bind
that they have no intention of ever bind then don’t bring them in as a renter at
then don’t bring them in as a renter at
then don’t bring them in as a renter at the beginning you know unless you really
the beginning you know unless you really
the beginning you know unless you really really need that cashel to start maybe
really need that cashel to start maybe
really need that cashel to start maybe you segment them maybe half of them are
you segment them maybe half of them are
you segment them maybe half of them are just renters and half you really focus
just renters and half you really focus
just renters and half you really focus on getting people who want to become
on getting people who want to become
on getting people who want to become owners right from the very beginning and
owners right from the very beginning and
owners right from the very beginning and when it’s something that’s a little bit
when it’s something that’s a little bit
when it’s something that’s a little bit in the future it’s a lot easier to to
in the future it’s a lot easier to to
in the future it’s a lot easier to to sell people on it I find so you can say
sell people on it I find so you can say
sell people on it I find so you can say if it’s six months or it’s a year or two
if it’s six months or it’s a year or two
if it’s six months or it’s a year or two years or however long it is before you
years or however long it is before you
years or however long it is before you want them to buy then if the sign up to
want them to buy then if the sign up to
want them to buy then if the sign up to that up front it’s a lot easier because
that up front it’s a lot easier because
that up front it’s a lot easier because that that pain point of changing your
that that pain point of changing your
that that pain point of changing your life and having to become an owner is in
life and having to become an owner is in
life and having to become an owner is in the future so the pain I just hit my
the future so the pain I just hit my
the future so the pain I just hit my light there the pain is a lot is a lot
light there the pain is a lot is a lot
light there the pain is a lot is a lot less because it’s so far in the future
less because it’s so far in the future
less because it’s so far in the future so it’s a lot easier I think to do that
so it’s a lot easier I think to do that
so it’s a lot easier I think to do that then to then have them as a renter and
then to then have them as a renter and
then to then have them as a renter and then the pain comes on them and then
then the pain comes on them and then
then the pain comes on them and then they don’t want to make that change so
they don’t want to make that change so
they don’t want to make that change so if you make them sign up for that from
if you make them sign up for that from
if you make them sign up for that from the very beginning then I think you’re
the very beginning then I think you’re
the very beginning then I think you’re going to have much better chance to be
going to have much better chance to be
going to have much better chance to be able to get people to you know go on the
able to get people to you know go on the
able to get people to you know go on the program that you want it’s more work up
program that you want it’s more work up
program that you want it’s more work up front to get the qualified people that
front to get the qualified people that
front to get the qualified people that you want for your business but I think
you want for your business but I think
you want for your business but I think you’ll end up being a more successful
you’ll end up being a more successful
you’ll end up being a more successful business owner if you’re able to get
business owner if you’re able to get
business owner if you’re able to get those people on that’s my take I wanted
those people on that’s my take I wanted
those people on that’s my take I wanted to then invite my friend John who John
to then invite my friend John who John
to then invite my friend John who John Carter who was a real estate investor an
Carter who was a real estate investor an
Carter who was a real estate investor an entrepreneur to share his two thoughts
entrepreneur to share his two thoughts
entrepreneur to share his two thoughts and give you some feedback as well and
and give you some feedback as well and
and give you some feedback as well and how you can how you can get that
how you can how you can get that
how you can how you can get that business going
thanks for the introduction Evan and I
thanks for the introduction Evan and I appreciate the opportunity to answer
appreciate the opportunity to answer
appreciate the opportunity to answer angels question I’m John Carter with
angels question I’m John Carter with
angels question I’m John Carter with Parker’s real estate investments and you
Parker’s real estate investments and you
Parker’s real estate investments and you can find out more information about me
can find out more information about me
can find out more information about me at John Carter CA or Petrus CA my
at John Carter CA or Petrus CA my
at John Carter CA or Petrus CA my background in real estate is in all
background in real estate is in all
background in real estate is in all types of real estate investment from
types of real estate investment from
types of real estate investment from single-family to large commercial
single-family to large commercial
single-family to large commercial properties currently have a focus on
properties currently have a focus on
properties currently have a focus on multifamily limited partnerships so to
multifamily limited partnerships so to
multifamily limited partnerships so to answer your questions indra i would
answer your questions indra i would
answer your questions indra i would first ask you on the rent to own
first ask you on the rent to own
first ask you on the rent to own strategies why are you trying to
strategies why are you trying to
strategies why are you trying to convince rental mentality people to own
convince rental mentality people to own
convince rental mentality people to own that’s the first question there’s
that’s the first question there’s
that’s the first question there’s oftentimes in every major city in north
oftentimes in every major city in north
oftentimes in every major city in north america thirty to forty percent of the
america thirty to forty percent of the
america thirty to forty percent of the population who rent and even though i
population who rent and even though i
population who rent and even though i have the same belief that i think all
have the same belief that i think all
have the same belief that i think all moaner ship is the smartest decision
moaner ship is the smartest decision
moaner ship is the smartest decision financial decision especially for the
financial decision especially for the
financial decision especially for the average person it’s often not right for
average person it’s often not right for
average person it’s often not right for everyone and if they don’t have the de
everyone and if they don’t have the de
everyone and if they don’t have the de financial discipline to save on a
financial discipline to save on a
financial discipline to save on a monthly basis spend less than they make
monthly basis spend less than they make
monthly basis spend less than they make and put that money away towards a down
and put that money away towards a down
and put that money away towards a down payment there’s a reason they can’t buy
payment there’s a reason they can’t buy
payment there’s a reason they can’t buy and also if your marketing program is
and also if your marketing program is
and also if your marketing program is effectively marketing to give something
effectively marketing to give something
effectively marketing to give something for nothing that’s the perceived value
for nothing that’s the perceived value
for nothing that’s the perceived value of it nothing so i would suggest for you
of it nothing so i would suggest for you
of it nothing so i would suggest for you to look at your lead generating systems
to look at your lead generating systems
to look at your lead generating systems the marketing you’re doing and perhaps
the marketing you’re doing and perhaps
the marketing you’re doing and perhaps the type of properties you’re buying and
the type of properties you’re buying and
the type of properties you’re buying and targeting as to improve the quality and
targeting as to improve the quality and
targeting as to improve the quality and improve your qualification in the target
improve your qualification in the target
improve your qualification in the target rent-to-own customer that you’re after
rent-to-own customer that you’re after
rent-to-own customer that you’re after to your second question around financing
to your second question around financing
to your second question around financing my game first question to you is why are
my game first question to you is why are
my game first question to you is why are you buying all cash I’m understanding
you buying all cash I’m understanding
you buying all cash I’m understanding you have a flip business model where
you have a flip business model where
you have a flip business model where you’re buying an improving properties
you’re buying an improving properties
you’re buying an improving properties great strategy and can be an excellent
great strategy and can be an excellent
great strategy and can be an excellent way to get started in real estate
way to get started in real estate
way to get started in real estate investment and most people do start that
investment and most people do start that
investment and most people do start that way I have one past colleague client who
way I have one past colleague client who
way I have one past colleague client who had a great system renovating an average
had a great system renovating an average
had a great system renovating an average of over 50 homes a year for several
of over 50 homes a year for several
of over 50 homes a year for several years in a row and they did so with
years in a row and they did so with
years in a row and they did so with $500,000 capital that they were
$500,000 capital that they were
$500,000 capital that they were revolving
revolving
revolving an established relationship with one
an established relationship with one
an established relationship with one lender they had a very tight system set
lender they had a very tight system set
lender they had a very tight system set renovation set type of property they
renovation set type of property they
renovation set type of property they were buying and they would keep
were buying and they would keep
were buying and they would keep properties along the way and it’s often
properties along the way and it’s often
properties along the way and it’s often times easier to get financing when
times easier to get financing when
times easier to get financing when lenders both as well as private lenders
lenders both as well as private lenders
lenders both as well as private lenders CD you have some of the existing assets
CD you have some of the existing assets
CD you have some of the existing assets so those would be my tips for you and
so those would be my tips for you and
so those would be my tips for you and feel free to contact me if you had any
feel free to contact me if you had any
feel free to contact me if you had any additional questions I’m always happy to
additional questions I’m always happy to
additional questions I’m always happy to talk real estate investment with anyone
talk real estate investment with anyone
talk real estate investment with anyone you can reach me at John Carter CA or
you can reach me at John Carter CA or
you can reach me at John Carter CA or for more information and investment tips
for more information and investment tips
for more information and investment tips visit p trust CA for parkhurst thanks
visit p trust CA for parkhurst thanks
visit p trust CA for parkhurst thanks very much take care so indra i hope that
very much take care so indra i hope that
very much take care so indra i hope that helped i hope what I said was useful i
helped i hope what I said was useful i
helped i hope what I said was useful i hope what johnson was also helpful thank
hope what johnson was also helpful thank
hope what johnson was also helpful thank you John for joining us for this for
you John for joining us for this for
you John for joining us for this for this video if you guys like the video
this video if you guys like the video
this video if you guys like the video please give it a thumbs up below makes
please give it a thumbs up below makes
please give it a thumbs up below makes me want to keep more of these videos
me want to keep more of these videos
me want to keep more of these videos coming for you and I’d love to hear what
coming for you and I’d love to hear what
coming for you and I’d love to hear what you have to think if you have a comment
you have to think if you have a comment
you have to think if you have a comment or question leave it down there in the
or question leave it down there in the
or question leave it down there in the comments below and we’ll see you on the
comments below and we’ll see you on the
comments below and we’ll see you on the next episode
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