Are you tired of the same old real estate investing advice? Yearning for strategies that go beyond traditional mortgages and down payments? Then buckle up, because in this episode, we’re diving deep into the world of profitable creative financing with Chris Prefontaine from Smart Real Estate Coach! Learn his game-changing three-payday system to structure real estate deals without your cash or credit. Uncover off-market secrets, explore seller financing, subject-to deals, and lease purchasing. Hear real success stories and see actual deal breakdowns with massive profit potential. With current market conditions, now’s the perfect time to become a creative real estate investor. Tune in and transform your investing journey!

Want to talk to Scott? Book a call with him HERE.

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Unlock Wealth With Creative Financing: The 3-Payday Real Estate Strategy With Chris Prefontaine

I want to thank you again for attending another one of our amazing creative financing master classes. We have the man, the myth, the legend here who is kicking ass and taking names and helping real estate investors all across the country dive into his 3-payday system of helping Americans out there and real estate investors, just like you and me with a lot of experience or even no experience, become real estate investors and take advantage of the Free Bay Day Simpson by really working with people that are struggling out there.

We all heard the numbers about people struggling to stay in their houses, to pay their credit card bills, the student loan debt, all this stuff at all-time highs when it comes to default. There’s no better person and no better team out there who’s positioned themselves in the last twenty years to really help not only investors, but also help borrowers get out of troubling situations.

Get people who have gone through financial health, family hurdles, and need a way out, and cannot sell their house traditionally or have issues, they just cannot move it. We’re honored to have the man, the myth, the legend, who was wicked smart out there. He is the head honcho, the chief bottle washer over at SmartRealisticCoach.com. My good friend, Chris Prefontaine. Chris, how are you doing?

I’m doing awesome. Thanks, buddy. The more you come hang out with us, your accent’s getting better. I’m impressed.

I’m trying wicked hard to get it down. I’m going to have some lobster, go down and have a beer. We’re going to listen to all that good stuff.

Creative Financing & The Three-Payday System

Perfect. I love how the as, you and I always say, just for the reader, a lot of the community’s marry in a good way, deals on both ends can be had if both communities know about the other side of the coin. We’re talking about the deal before this. It’s important. We will talk about the three paydays without using your cash or gobs of it and without tapping into your credit or any banks at all. I’m going to share a little bit, Scott, throughout how this came about with my horror story coming out of the crash.

One of the misperceptions and creative, I think you know, is that people think that they all say to me, like on a podcast, “How come you guys don’t keep your properties?” You can keep your properties for 30 years if you want. I’m going to show you models that will if you need cash flow. Great cash amount, 2 to 5 years. If you’re good and you’re set on your cash flow, great to keep in 20 to 30 years. That’s a little bit more advanced, but you can do that so that misperception and creativity that “No, you got to wind out.”

The “Old Way” Vs. The “New Way” Of Real Estate Investing

No, absolutely not. We’ll talk about other assets too, you can do. Let me just set a few basics for us. Of course, as always, Scott is chiming, because we do good bantering. The old way of doing real estate is getting paid once. It’s “I did it.” Like “Scott’s done it.” Like, “I did hundreds of deals as a broker back in the ‘90s and then I built homes,, and then I did rehabs.” Those all were doing a deal, getting paid. Good money, but do deal, get paid, and get back on the treadmill.

Also, the old way was, I didn’t know about it, just you got to deal with banks. You’ve got to go sign a person and take out a bank loan. The new way is getting paid three ways. We did trademark it. I’ll tell you how it came about, but eventually I said, “The light bulb went off.” I said, “We’ve got to get after this.” First, let me just address all of you guys watching this. If you’re looking for supplemental income, you like your business or job, or you’re in the real estate biz and you’re tacking this on, you just want to add some supplemental, great, super lucrative, I’ll show you how lucrative with numbers.

Replacement income. This is a big one. Scott, just this week, you know, Judy, she’s in your community also. Judy gave her notice last Friday, eighteen years at one company. It was a third day job free. She didn’t know what to do. She’s like, “This is so great.” I won’t say the income, but I sat on our mastermind call. I said, “Guys, understand, Judy wasn’t making $20,000 yet.” Judy was making a really good multiple six-figure income. She left it finally with the 3-payday system. I love that, and I love Judy.

She also represents a lot of folks out there who love their job, but they lack the freedom. They’re handcuffed by their career, not able to do the things they want to do. Yes, they make good money, but great person. Obviously enjoys what she does, lives in Maine, but wants to do something more with her life while she still can. That’s what’s great about this.

Same as my parents, they’re age and she’s going, “There’s a little bit more to this six-day-a-week call whenever you want me to type thing.” I agree. Last but not least, look, if you just go through this, what Scott and I are going to talk about, and you go, “I got a new skillset here, I can develop this and own it for life, so to speak.” Nobody can take that away from you. You just go out and buy your own home creatively, and do not have to sign on a bank loan. Trust me, just the underwriting alone, you’d love not to have to do that. That’s the cool thing. If that’s the goal, that’s okay too. Real quick, I said, I’ll let you know how we got here. This is my 34th year. It’s pretty freaking scary when you think about it. I’m aging myself.

You’re looking good at 40.

Thank you, I started young. I went through the crash, and let me just say to the people that “If you’re doing well like Judy and you want to exit your job, great, that wasn’t me coming out of the crash.” I was destitute. Just to give you a little bit of context, if this is you out there and you’re struggling, I totally get where you are. I had tow trucks show up at my house. I had the IRS calling. I had credit cards. I can stack that list pretty deep.

It was ugly. I moved into one bed of an apartment. I remember walking home from the office, which is a block away, because we had to sell all our cars. It was after I did, it was August thirteen to December, when I started getting after it again. Getting out of my own head mentally. I walked off with my wife, I said, “I cannot believe this.” The light bulb went off because the three paydays started clicking.

I did my first twelve deals, Scott, and the spreadsheet I’ve been keeping just nonchalantly, it got up to 1.2 million with like 11 or 12 deals. That was an eye-opener. Then we started trademarking it and got demand up to help people and so on and so forth. I’ve touched a lot of niches. It ended here when I just got frustrated with the one payday, frustrated without having a coach. I was floundering for four years. That’s how we got here. I will say now that it’s morphed into, and Scott, you’ve met them all and you’ve hung out with us, the coaches, myself and Zach, and my son Nick, 75 plus years now climbing past that.

This is about a year old. We’re able to look at you coming from like I did, looking for what do I do? What’s the niche I want to get after? Trying to bridge that gap. That gap is the time from when you go to a seminar or take a course, and you do a deal. Scott, I think you agree. It’s sad. People say, “I took all these courses.” “Great. How many deals?” “Nothing.” Now they’re pissed off and they think that every product stinks. Every program stinks. Didn’t have the right program.

It’s so true. It’s probably about 5% of people who sign up who take action. That’s part of it. A lot of people go from conference to conference, workshop to workshop, and they never apply it.  Besides, note, business guys, if you’re reading this, this will be the last workshop you need to take a whole lot of cases, because it does help you bridge the gap. It helps you to know that there are deals out there everywhere. What you’re going to find, this works in every market out there, not somebody pitching something from high-end luxury rehabs. It only works in one area or the law. This actually, what Chris is going to go through works in every city across the country, which is what not every niche does.

You bring up another point in that, and that is people ask, “I have to do in this market or that market? Where’s the best?” I know some issues you have to time it and go to certain areas like multis, but you can sit in your backyard and you see the profitability in these deals. You’re not going to need to go out and do 40, 50 deals. They’re super proper. We do a handful of changes in the financial picture. I promise you.

In the community, is more about doing deals. I just want to bring this up. I added this, Scott, because Jim brought up some cool things. He was on Zoom at one of our virtual events, and these are his words, not mine. You know because you’ve hung out with the community. It’s not just a deal. If it was just a deal, I can see it on our YouTube channel. You can watch 500 deal structures and go, “Got it. I now do this.” It’s the whole mental piece of the game.

It’s the whole support in the community, which is where we came in for Jim. He’s got like, he travels like seven days a week for work. It’s insane. I want to get you thinking now, “I’ll get out of that and go back to the numbers.” Claudia was one who spent a 100K. That’s why I preempted that when people spend the money, 100K on programs and didn’t do a deal, and then came to us, and her first year was a little under $400,000.

I guess as a viewer or a reader, I’d say, “Just put yourself in those shoes and go, what would it do or even half if you don’t need that one? What would it do to your lifestyle?” That’s all, I just want to get you thinking, that’s all it is. People say to me, I want to address this. “Chris, why are you coaching? Why don’t you just do deals?” Here’s frankly what happened, guys. I told you how bad it was in thirteen. That was me getting in my way from 2008 to 2012. “It must have been me in the market. I failed.”

When I got them away, I started getting people go, “Can you teach me how to do that?” Organically, it started going on. I thought, “This is a cool way to beat that thing that I saw out there, which was everybody selling me stuff, but nobody’s come behind it.” We designed this. You’re going to see to do deals with people all over the country, not go, “Here’s a product and good luck.” That’s a bum road right there. That’s how we get into this and why we get into this. Let’s dive into it. What is buying real estate on terms? It’s greater financing.

Scott said it a few times. It means no banks. No lodged out payments and no signing personally. Those of you who have good credit, like I did prior to the crash, are thinking, “I can get loans.” You can. As soon as something changes at that bank, or the rates change, or the market changes, they can and they sometimes will call your notes. You know that all too well, Scott. I had 23 properties after during the crash, and they would chase me for every single one of them. That was not a fun time. Now, I don’t care how many properties I have going into COVID with 70.

I was not on it, will not ever be on one single solitary loan. Trust me, if you’ve watched this, you do not want to, if you don’t have to be on a loan personally signing on it. The three ways you buy then are how? We’re not doing that. Owner financing, we tend to go with free and clear properties. I’ll show you how and why. Subject to existing loans in place and lease purchase. Those are only three ways you buy. Those are the three ways you could buy your own property as well. Now I’ll dive into each one.

Finding Off-Market Deals Through Creative Financing

First, I inserted this Scott since we last talked, and that is how do you find these people? Everybody’s asked me that question. Expired listings, just like a lot of people go after, but instead of a realtor or a wholesaler or a flipper trying to steal it, the defense wall comes down when you tell a seller, “I’m just a buyer. I’m going to buy your property.” It didn’t sell already. That’s an easy conversation for sale by owners, for rent by owners, niche lists like free and clear properties in the United States, about a third of them. Why not seek those out?

They’re usually off-market. They don’t care what’s going on. I said recently, there’s a guy that said to me, “Chris, I went through all your program, all your material. My market’s hot. That won’t work yet.” That’s great if you’re buying properties on the market, but I don’t buy any properties on the market. They’re all off-market. Mailings, Scott, a lot of people teach like heavy mailings, like wholesalers.

We don’t. What I do is I teach like, “You might do a 200 or 300 piece, very niche mailing, like free and clear property, no mortgage, and my zip code with three bettas very niche. You can buy assets that way.” Referrals are pretty cool in this market because the realtors I come out of the woodwork, referring us. Wholesalers and flippers, same, love it. In fact, Zach, my son-in-law and partner, who Scott knows well, gets all his deals from wholesalers because he has the time to get on the phone. They just send him deals, pretty cool.

The mortgage line is, of course, in local networks in Rias. Now I’m going to define some things, and then Scott, you can add to it, and we can zoom out for people and then zoom back in. Seller financing is owner financing is nothing more than I find a free and clear property in our niche anyway, most of the time. I’m going to make monthly payments to that owner, to that seller. That’s usually going to be principal only. Key thing here, principal only. I don’t care what the rates do. Stop paying attention to the market and the media and just focus zoning on this.

All that like underwriting stuff and all the hoops you gotta go through with traditional financing, you avoid. It’s pretty simple. I’m going to show you a deal and some case studies. Again, I niche that down to free and clear. What is sub two? Pretty popular now, actually, compared to, say, a decade ago. Mortgage, I buy the property, and the mortgage stays in the seller’s name. We’ve got a property on the market now. We bought in, I think it was like seventeen, from a couple that was fighting, divorce, ugly, one of the mortgages, one of the deeds.

We’re just spinning out of that property right now. That whole time, the mortgage was in their name, not mine. That’s the beauty of these things. You make payments on their behalf. That’s all. Now, a disclosure. Who’s more likely to sell this way? Someone needs financial relief. Who’s more likely to sell if they’re free and clear? They don’t need financial relief. They want tax planning, estate planning, payments over time, and cashflow.

That’s what they want. Different advertisement, that’s all. If you look at this, and I’m preaching to the choir here, Scott, with you on, so you might want to chime in here. If 9 out of 10 homeowners have rates still below 6 and 4 out of below 5, and a quarter of those below 3, you’ve got some cool niche lists you could be working on to buy property for you and your family without signing personally and that raise half the rate of what’s going on out there, half the amount.

 

These people, too, experience financial difficulty, and they need to get out from underneath something like this. They’re not going to go out and buy something immediately anyway, because they cannot afford to, or they’ve had late pays or anything like that. They’re not going to be able to go buy something new for 2 to 3 years anyway.

They’ve got to get outside of this hurdle, and it allows for an opportunity for somebody to get creative and take over the payments, pay their existing stuff, actually boost their credit scores because you’re paying the underlying mortgage, avoiding a foreclosure, or avoiding further default. It’s really truly a win-win when it comes to helping somebody get out from underneath this burden, death, divorce, whatever it might have been, and making a win-win across the board.

That’s huge because people say, “You take advantage when you’re doing this up to.” No, actually a complete opposite, as Scott said. The one I’m going to show you that I keep referring to, I think it’s in this deck, the slide deck, they were 4,100 in arrears. Now, that’s not a lot, but for them, it was on the edge of the slope. They were just about done. We fixed it. We’ve been paying all these years. The credit’s probably pristine, unless they screwed something else up. What is lease purchase then? The third one that will give you some case studies.

The mortgage stays in our name, but the deed doesn’t transfer. All you’re doing is you’re controlling it. You’re still making the payments on their behalf, and you cloud the title. How do you call the title? It depends on the state you’re in. Your attorney will help you, but notice of options, what’s in our material, memorandum, real estate memorandum, just so they cannot sell it to Uncle Johnny during the process and get amnesia that you helped them and you got this thing on a contract. That’s all.

Completely legal, everybody. We’re not telling you to do something illegal at all. That’s one of the things that we see a lot of, actually, has a conversation with a realtor. The other new realtor we talked about was creative financing. “You’re talking about legal.” There’s nothing illegal. It’s a little outside the box, but that’s why you leverage attorneys and things like that to make sure everything’s papered up properly in the state or the area that you’re buying in.

Huge point. I’m not poo pooing realtors. I was one for 18 of my 34 years, but it did not surprise me when you said a realtor told you that. It’s crazy to me. If they would add continuing education units that talk creative, then we’d all be in a boat. That’s okay, more for us. The attorney thing is a big comment, Scott, because I’ve had in particular states, New Jersey comes to mind. One of my students went to Israel and said, “Chris, I didn’t get an attorney.”

I said, “No problem, I’ll help you.” This is before we had all our attorneys set up. I talked to three in Jersey who said, “You cannot do it. You cannot do a sub two.” I talked to the guy who does like tens of thousands of them. I said, “Of course they can. They got to close in like six days.” It’s insane to me, but so make sure you the right team. All we’re doing when we’re talking to sellers is what? We’re just solving problems.

You go to the auto body, you go to a lawyer, you go to the dentist. There’s not convincing you to go in to get a problem solved. That’s all we’re doing with the proper scripting and the questions we ask. That’s all we’re doing forever. Let me just give you this takeaway, guys. I added this recently, too. If you can ask three questions, you can talk to a seller about this. It’s no different than if Scott and I were neighbors and I saw his sign go up and I go, “Scott, I saw your sign, where are you going? Cool, when do you need to be there? Excellent, so you go in Arizona, job change. What doesn’t happen? What’s your plan B?”

With the right team, all we're really doing is solving problems. Just like you’d go to a dentist or a lawyer—not to be convinced, but to get help—our job is to guide sellers through the right questions and scripts to do the same. Share on X

Exiting Deals With Rent-to-Own & The Three Paydays In Action

That’s where we come in. That’s it. It’s very simple. Now, in the free and clear, it’s a little different. They actually want us right away because they’re trying to do a state plan and things, but there’s your conversation right there in a nutshell. Not difficult. If you can ask those three questions, you can operate with what we do. Now, how do we exit before we show you case studies, so you understand the numbers when I show you? We usually exit for the particular discussion. I don’t want to get too advanced, usually exit on rent-to-own.

What is rent-to-own? If you guys just want to be basic here again, zoom back out. It’s just a program to help true buyers. They’re not renters. They’re true buyers who need time to become mortgage-ready, period. They might’ve changed jobs. They may have a big issue now, leaving corporate America like Judy did, and starting their own business. If Judy goes into the bank next week to get a conventional loan, now I won’t say how much, but Judy’s got a lot of money in the bank and over the years, and she used to make good money, but they’ll go, “No. Need two years of seasoning.” Right, Scott, most of the bank?

That’s exactly right. If not, worse now. They want you to have a relationship often with the bank these days to they’re going to be financing something. There are a lot of changes going on in credit and FICO. That lenders are going, we’ve got a good friend who goes to an annual event at FICO world, where all the credit bureaus he’s the only consumer-facing industry. He was talking about how it’s getting tougher. Not only do we do have two years of work history, but to get something financed, whether it’s a primary or even an investment property as well. This is the great thing that circumvents that.

This is why I think, my 34 years, I’ll call it a perfect storm if you want to call it, but it’s a cool time for creative financing. I think if you do it right, and because I don’t know, you’re not people, go, “Chris said I could make a million dollars.” I’m not saying that. What I’m saying is if you do it right in the next year, you could stack up without three paydays, a few million dollars, which for a lot of you would take care of a decade or so of income and then go play. Be very aware of what’s going on. You have a chance to catch that win, so to speak.

If you talk to any mortgage broker, this guy was in our community who gave me this stat, Rafael. He’s in Miami. He does a lot. He does like 100 loans a month. He said, “Chris, out of 100 people, 17 or 18 are qualified.” That’s it. Now, they don’t all need three years, and they’re not all good tenant buyers. I’m just saying there’s a big pool to fish in when you’re talking about 82% of the buyers who can go the rent-own route. Now, how do we profit? If we buy the way we said, those three ways, and we sell rent-to-own, and by the way, as Scott knows, we look to cash out our rent-owns.

There are a lot of educators who have about a 10% or 20% success rate. Our failure rate is like 2 to 10. It’s super strong. Sometimes you just have life events you cannot help. I don’t care how good you are with your systems. Here are three paydays and how they work. Payday one, remember, a true buyer like Judy, coming out of corporate America, has money ready to buy a house. “I cannot.” Perfect rent-to-own buyer. Payday two. You’re paying something to the seller or their underlying debt, and you’re collecting something higher from the tenant buyer while they’re getting through their process of getting a mortgage ready to eventually cash it out.

There’s a delta that you keep at Payday two. Payday three is cool. Look at it. Throughout the term, you have principal pay down, especially if it’s all principal in the case of owner financing, and you have a markup. Payday three tends to be pretty hefty. Let me show you how to pay for this. This is just our family team. The community range is like $45,000 to $350,000, all like East Coast to West Coast. Ours looks like this. Payday one, payday two, payday three for our family team. I think it’s like 78 now. This is a conservative.

That’s per deal, guys. You start a deal, hypothetically, you get a check for $26,000. Great. Now you have just launched an ongoing screening of 308 a month, every property. You know, on your spreadsheet, if you’re analytical, 2, 3, 4, 5, whatever the years are. You have that bulk coming in. That’s pretty cool. You start chatting about a bunch of those. That’s what I referred to when I said I walked in from the apartment, I started to realize the potential here. A little different. This shows you the quality of what happens here with the three paydays.

This was a twelve-month snapshot of our business a few years ago. I said, “Let’s take the last twelve months and let’s see what was newly created. Forget before that and forget what’s going on now. Just new deals.” Like 21, I think here, 22. Newly created payday ones. Payday two is, I think, the important one. Scott probably knew what it would take. If I were to expect $65 a month passively, I would need I don’t know what it is the bank takes rates a million to a million. It’s a big no.

You need a million bucks if they get 6% to get that coming. That’s actually coming in. That’s 6,459, that’s annual, or that’s monthly?

Monthly.

It’s about $73,000 a year. You’d have to have about a 1.1 million to get in $6,000 a month on cash flow for you.

Here’s the thing, guys. Again, disclosure, I don’t know you, but I’m saying generally speaking, everybody’s going to have different results, but can you save one to $1.2 million in the bank in the next 12 months? I probably cannot, but I can tell you this. We can teach you how to do it. Now, will you get it in the first 12 months? 21 deals, I’m not saying that. I’m saying you can create this over time in a twelve-month period. Some of you go off and do twenty in the first year, some of you do none, some of you do two. My point was to create, or newly create, an income of 1.6 million over the course of the next 2 to 10 years in the next 12 months. Pretty cool potential. You’ve been taking 5 or 10 years, right?

Exactly. As the saying goes, Jesus saves. Everybody else has the best.

I haven’t heard that one. I’m not from you. I want to tell you that just the three paydays work. Scott said earlier that in any market. I’m just showing you Mike’s one of our coaches now, but he came from a produce business working ridiculous six days a week. When he had a baby, he was like, “I cannot do this anymore.” Judy said, “I cannot do this anymore.” Mike’s out in Northern California. Rick’s right here in New Hampshire. Rick kicks butt. Scott, you know, Rick, he’s also a coach now. Rick did 30 years in the government, tried flipping, and wholesaling.

Just like it kept being a job. I didn’t have time. He had 180 employees. He left after a 24-month plan we put together with him very specifically, because it’s what we do now. We help people exit. Rick’s up to yesterday. He had a payday three. I think it was like his eleventh deal. He surpassed the million bucks. That’s pretty cool. He says, “I got a payday three closing this morning, then I’m going to a closing this afternoon on one of his purchases.” This guy’s life is different than it was three years ago. Just so you know, different markets were.

You see a rejuvenation, I would say, from people understand they go from a job, not that they hate their job, but this doldrums of going in Monday through Friday, 9:00 to 5:00, working that running in that hamster wheel and stuff, but they get out and they start doing amazing things. That really like, it’s like spring all over for them again. They get their life back.

Payday Structures In Lease Purchase Deals

It’s neat. Rick comes in until we run out to private boot camps, and he comes in. It’s so cool to hang out with him for two and a quarter days, and the students get it. He’s a different person. Disclosure on these numbers we’re going to share with you. These are case studies on the paydays, and I’m not showing him. You go, “Got it. I get this figured out.” It’s not it. I want to expose you to what it looks like on real deals. I’ll point you to free resources and some resources you can get more aggressive with. That’s up to you, but just to expose you to what goes on.

This was an expired listing. We perched it for $3.99. I remember this guy stood in his kitchen. Actually, Zach found it. I talked to them. He unfortunately lost one of his twin boys, and they had a daughter. One of his kids passed away here while they were on vacation. He’s like, “I’m done. It’s fall coming up. I want to get out of here.” He lived in the Midwest. We did owner financing. It was free and clear. We struck a term of 48 months, and we went out and sold this on a rent-to-own on 429. Now here’s how the structure was.

Payday one, this guy was a teacher. He wasn’t financed well yet. He came in with $80,000. It was 40 at the table when he signed to take occupancy, and then 40 over time. Sometimes we’ll do like, “I have tax refunds coming in, I have raises coming up. Schedule these out, we have a system to help them do that.” That gets them more invested in the house, and that improves your cash flow. Payday two, we were paying the seller a thousand a month, principal only. This is powerful when you see the cash out here. We are collecting $1,700 a month.

The only thing that would have come off that just to show you is our insurance. Everything else the buyer pays for, but still a nice payday two. Payday three works like this. Picture it, just like if you were going to go buy a house next month, this gentleman would enter this house with his family, put a date out, I think it was 48 months. We scanned it, we screened him, he’s going to be ready in 48 months or before. When he comes to the colded table now, we look at the markup on the house and then we say, “We had 48 months of principal pay down, that’s the power of that principal pay down.”

He’s closing, we’ve got to give him credit for his $80,000 he put down, just like you would buying anything. Payday three was actually a little negative because we got so much upfront. It’s like, “Thank you very much, four years ahead of time. Thanks for the profit.” We wait for the cash out. This one had a garage right about where this view of this picture was, and we collected some rental income until such time he got qualified. He took it over. He was glad to, he knew that the whole time he was there. We broke six figures in that. I’ll give you a quick formula.

When you can find one in your geographic area, and you can, everywhere in the country, you can find a house that you’re going to buy for $200,000 or more. You’re going to structure monthly payments to the seller for $900 or more. Let’s say a thousand to be safe, principal only. You’re going to do that for four years or more. You have six figures with the three paydays every time. Now, can you find five of those a month? Probably not. Can you go out and find five of those next year? Yeah, absolutely. You can find five of those next year.

That’ll change the world. That’s what Rick did. Most of his were a lot of principal paid. How did he get to this so fast? This next one is going to give you a little of each. Least purchase. Now here’s the funny thing. This was referred to by a realtor who, to this day, still sends us properties instead of learning how to do this. His choice, he send them when he cannot sell. Now, if you’re a realtor, anything doesn’t fit in your box. You didn’t sell it. I was a realtor. You cannot sell everything. They don’t want to pay you, or they don’t have enough money to pay you.

Anything that doesn’t fit in your box is not we’re competing, we’re going to help you capture profit, you leave it on the table. We tied it up for 283, exact mortgage balance, 283.74. Lease purchase, so we did a shorter term, 36 months or before, turn around, sold to rent-owned for 329.9. Now, again, the numbers behave the same way, guys. We’re going to click a little bit quicker here. The only difference is you’ll see less principal pay down because we’re paying on the existing loan, not principal, only to the seller, that’s the biggie.

Payday one was $24,000. In this case, it was all upfront, it’s not always. Payday two PITI was 18/18. The spread there was nice, $500 something above our average. This was our house too, not a student’s. We get the markup, we get the principal pay down, not so great, because it’s not our principal. We gave credit for the deposit, and our payday three was almost $40,000, for a total of 81. Now, picture this. The realtor was going to get, let’s say $300,000 times 5%. If he double-signed it, he was going to get $15,000.

It expired. He could have said, “Good news, guys, I have another option for you.” He would have been a hero to himself. One more case study, this is the one where I said they were in arrears, and they were fighting divorce. It was like, “We’re about to sell this for a lot larger payday that I’m going to feature right here because we did some extending on the term.” This is very conservative. I’m going to show you. Bridget said that for the exact mortgage balance, plus they watched a little bit too much HDTV, and they had maxed out some credit cards to fix this thing up.

Zach, the only way he could get this done, he negotiated this was to agree to pay $12,000 on credit cards over the next two years. We paid it whatever that comes to for quarterly. Pretty cool. Payday one was an attorney who went to law school and trashed her credit. She came to the table with $41,000, had the money, just trashed her credit. Monthly payment to the seller, PITI, goes right to the bank. We don’t send it to the seller, just a note. We were paying her 22.97. What happened here, just real briefly, we don’t have time, but this got extended a few times because the rent went up monthly, because she couldn’t cash it out in time for 29 months, which she agreed to.

We upped the rent, and we kept extending it, and we actually got more value out of the price because she agreed she didn’t want to lose it. It went up so high. We didn’t go as high as the market, but we went up fair, and she got a fair shake. If we stayed at this price, let me show you the numbers. We’re going to take the rear off. We still almost broke a hundred projected. Our payday three is about to come out, about $40,000 higher than that, Scott. We’re completely closing in on us. This was a cool deal.

All to say I featured a Tater Mastermind call to tell the students, the community members, look, curve balls come up, but this girl sadly couldn’t get there in time. We did some bopping and we even left a lot of cashflow on the table for her value rather, but we bumped it up a little bit and she said, “Thank you for not kicking me out.” There’s always a way to win, win, and do the right thing integrity-wise. Scott hit this already. I don’t care what the price. I don’t care what the market conditions are. I don’t care what the house condition is as long as it’s habitable.

I don’t care what area this works. Can you do this in multifamily and commercial? Yup. I bought my own building that way since I sold it. Did a niche mailing to 4 to 10-unit buildings. There’s nobody who goes after those. They go after the bigger ones. I did it free and clear, bought two and free clear multis with that one 276-piece mailing. Both of those were six figures and under three years. Multis do not rent own, so that you can do this. Any asset class has been around way before Scott and I would create finance. You go, “You only do singles.”

No, you can do anything. I just teach singles to start because it’s an easy pathway. If I teach everything, all the students have that shiny object center. “I can go buy all this stuff.” Gets a little crazy now, I know, because I’m from New England, I talk just a touch fast. I know you felt like you got to drink with a fire. Scott’s used to me now, but I know I go fast. That’s just New England. You’ll get used to it. Here’s a solution for you guys. I’m going to give you free resources as I always do because you’re in Scott’s tribe.

The “Three-Day Three Pages Of Practice Program”

I’m also going to point out some of you who are more serious to some resources. We’ll get after it together. It’s called the 3 Paydays Apprentice Program. I came to the credit front. My son-in-law, Zach, came up with this. It was our streamlined effort to go, “We have a great course. We have great support.” You can talk to us five days a week with our calls free, but how about we get you in here?

We let you see upfront in person, and how about we do deals with you, and how about we really get in the trenches with you? Here’s what this looks like. You’re going to first get the course that Scott and I have always talked about, the QLS home study course. If you go to our website, it’s $1500 by itself. You’re not even going to pay near that. I think there’s a quick video in here in a second, just to show you what it looks like online.

I’ll tell you, Mod eleven is all of our contracts and our checklists that literally we do deals with every day. If we make a mistake or if we had a boo boo in a contract or a seller said, “You guys forgot this, so therefore I’m going to come after you.” Anything that happens, we fix it. It goes into the course for you. This is a living, breathing thing. This is not. We made this pre-COVID, and it still exists. We’ve tweaked this four times now, Scott. We’re on 4.0 since 2016. It’s painful to update stuff like this.

 

Inside The Apprentice Program: Lifetime Access, Live Coaching, Real Deals

That’s the thing that’s what’s great about you guys. You’re constantly living, breathing, and you’re in the business. You didn’t flip one property ten years ago, and still trying to teach the same way that you did ten years ago.

Funny, but you know what’s going on. It’s absolutely crazy. Let me show you. This looks like online, guys. Again, you own it for life. We use it. It’s like a resource center. It’s not just a course. Take a quick peek.

A lot of modules in there, ladies and gentlemen, breaking down the contracts, breaking down the negotiations, the scripts, the fact that you guys also do a ton of weekly calls for folks to come in, talk about the scripting, talk about the deal flow, listening to people’s phone calls when they talk with people as well as something that’s unheard of really in the industry these days, Chris.

That was mostly family you saw. Scott hung out with us. We care about you doing deals. We care and we do the right thing with you. You’ll be hanging out with us. You can come to our live event. Scott always hangs out with us and goes over some of his material while he’s there. You don’t have to buy a ticket. It’s part of the apprentice program. That’s the one in Boston. I can see you in the audience.

There he is. My big head is in the back there.

Scott will be there. I’ll have some time with us, and it will be great hanging out with the two communities. You get access to Slack. This is where 140 or so of the Wicked Smart members hang out. You got lessons learned. You got Q&A channels. You have script channels to listen to live calls. Invaluable. Like on the spot. It happened, listen to it.

You also get the boot camp. Now I sit to come hang out with us. You’re going to sit in this boot camp right here in the conference room. We can fit around 10 or 12 max because me, Zach and Nick, my son, and son-in-law, and one coach, usually Rick. We’re there too. It’s 4 of us to 10 of you. We’re going to do live calls. We’re going to talk to yourselves. You bring leads. If you don’t bring leads, you’re going to get a lot out of watching, but bring leads, you’ll leave with deals.

We’re going to make appointments. We’re going to structure deals on the whiteboard. You’re going to make offers, and you’re going to get properties on a contract when you go home. If not, while you’re at the bootcamp. It’s two and a quarter days. It’s completely free with the apprentice program. It is by far the best thing we’ve ever done. Started March of 24 and we used to sell tickets to it. Now you come for free. There’s nobody in the room that pays if they’re in our system. That is by far the most effective thing we’ve done as a group.

That’s the hand holding that is awesome.

Here’s what they say, which I was pleasantly surprised. They get done on day one, Scott. We do calls all day. You’ll be in this office where you see me doing calls with me, and someone will be in the conference room with Zach and Rick, and they go, “It’s not that difficult. You guys do what you see.” That’s what I’ve been telling you for twelve years. That’s all we do.

To your point, Scott, here’s how they can touch base with us. Literally Monday through Thursday if you want. Now, everybody cannot do that schedule-wise, but it’s available for you. If you miss it, you’ll have a recording of it. That’s support. That’s like nobody out there, very few people are doing in the community. That’s the 10,000-foot view on the Apprentice program. You also will come out of that with the Creative Financing Real Estate Association certification. Now this is cool.

You got on a phone with someone, and Scott’s on the cell, and Scott says, “I got a call, a bunch of wholesalers called me and flipped. I don’t want to give my property away.” No problem. Were they certified by the Creative Financing Real Estate Association? Unless they’re gone to this program, they’re not. That’s how you get certified. You are about I would say I talked to lotteries and Scott, you know who goes to the lotteries if we could just get that into more hands, because you know more than about 90% of the people in that room, if you go through this.

That’s so true.

If not more. I started by saying, “What if you got that check when I showed Claudia?” Mike’s a coach, but this was Mike’s first deal. Again, I just want to open your eyes and say, “What if you could get your fingers on this for your first deal?” Mike’s been with me since 2017 after leaving his job in ‘19, and then he became a coach, and you can work with him personally. Works with the higher-level people. He’s awesome. I know this is outdated because his kid’s 7 or 8.

That could be you guys. Here’s how it breaks down. You could scan the image there, or you can go right to the link with Scott’s Tribe. This is how I stacked it up with everything I gave you. Almost $14,000 worth of stuff. It’s a grand, guys. When you go to the link, you’ll have a chance that you can split that up, even, I think. If you go, “No, I just want to get the gifts, there’ll be gifts there for you as well.” Know that there’s a 100% guarantee. We operate one of our values in the company is to operate with the highest integrity.

If you’re not serious and committed, and you get in there and go, “That’s not for me.” No problem. No questions asked other than, “How can we improve it?” That’s the only question you’ll get asked if you decide not to do it. We’ll give you a refund. I truly think, Scott, you and I have done a lot of coaching. I opened my story with how I didn’t for four years. I was just in my head mentally, all messed up, broke, in a one-bed apartment.

One of our core values as a company is to operate with the highest integrity. If someone joins and later decides, 'Yeah, this isn't for me,' that's absolutely fine—no questions asked, except for one: 'How can we improve?' Share on X

Not until I got back in and go, “I need a coach,” did I really make a difference. I invite everyone to think about return on investment and return on time versus “There’s a cost.” It’s not a cost. It’s how much can I multiply that? Rick’s in one of our higher-level coaching programs, and he’s ten times his investment. That’s saying a lot. If it’s not for you, I want to still gift you some things on that same page. You’ll get our free books. I toss some other goodies in there for you.

We don’t want you walking around without a wicked smart shirt, for example. Maybe, perhaps you’ll get some free gifts. I said at the beginning, but I want to hammer this home. If all you did was do this for a deal for you and your family, you just spent the best thousand dollars on the planet because you own the course for life. We won’t take that away. Even though you wanted a refund, everything else, you keep it, and you have the skill set for life.

Before you finish, can you go back and let’s talk about all that stuff that’s in it? We’ll all slow it down a little, folks, because you hit them with two fire hydrants, and I’m talking about. They’re going to get the class with the different modules that there’s a lifetime on their computer to walk them through the basics. They’re going to get access to the contracts that go along with it to correct, Chris.

Contracts are in one mod. I know attorneys itself. What’s in that mod for $4,000 or $5,000?

Exactly. That’s what I’m saying. You’re going to get the twelve-week coaching program that’s just under $4,000. Twelve-week coaching program, ladies and gentlemen. That’s three months for you. Three months, 90 days getting in there. You’re going to get the ticket to the QLS event, the two-day event in Boston. I’ll be there. I’m excited to be there. It’s a great spot there. Have to get almost scanned in to go in there. Food. It’s just a great event. You’ll have what the room holds, 100, 120 people roughly give or take.

That’s the only bummer. You saw it. It’s true urgency. You saw it. We cannot fit more than that in it.

Ticket in the trenches bootcamp that’s coming in, and spending that time with you for the ten people in the room. Is that right? That’s what that is.

Yeah. Ten students, only then four of us.

The weekly mastermind calls, the weekly open office hours are on Monday through Thursday. Of course, the Slack channel provides access to the Wicked Smart Community. The other students are going through deals. You can get questions answered there. You can present your deals. Here’s another thing, Chris didn’t talk about this. The deal flow, as far as leads, he makes it really easy. You’ve got a vendor that handles his leads.

I’ll give you a great example. I came out to Newport about two years ago. Could you share one of your lead sources? I go online, I sign up for it. I downloaded a list. I do a text message and email blast out to them at 10:00 in the morning. I get four people that call me back while I’m there over the two days, and then more traditional. This stuff works, ladies and gentlemen.

For $997 and the 30 day money back, no question that guarantee, you have the opportunity in 30 days, not only to get signed up and learn something, but to have it life changing experience, life changing coaching, and most important life changing money to help you go from where you’re at to where you want to be to help your dreams come true.

If you dislike your job, a way free to take those handcuffs off. If you love your job, great, but it gives you an opportunity to make life-changing income on the side. You’ve got plenty of folks that are working part-time at this, also full-time, and so it’s exactly what you want, and you got all the support, second to none in the industry out there to make it happen, ladies and gentlemen.

The part-time thing, let’s address that, Scott, real quickly. I didn’t do a good job with that. The 99% of the people who come to us, of course, are part-time. Everyone is busy. Rick’s an extreme example, but everybody who left their job, not coincidentally, all our coaches have left their jobs. They all had brutal jobs, but what we do specialize in, which I did mention, is helping you exit that W-2, whatever timeframe. Usually, it’s been anywhere from 9 to 24 months, more so on the higher end. One person did it that quickly, but the rest were close to two years.

That’s the thing. You help put a plan in place, and you work as hard as you want to accomplish that goal. This is, like I said, we do a lot of stuff that works very well with our note business. It works for the creative financing side. We cannot buy the note. They work to do the creative financing side, and there’s no better team out there. No better team doing this, not legitimately, who’s not going to sit here and blow smoke up your butt. They’re going to show you how to hit it hard, and you’re going to hit it wicked hard and make some wicked hard cash at the SmartRealEstateCoach.com, guys.

Love it, cannot beat that.

Get signed up, like I said, SmartRealEstateCoach.com\NCS. NCS stands for the Note Closer Show for the podcast. It makes it a little bit easier than WeCloseNotes.com down there. SmartRealEstateCoach.com\NCS.  We’ll put the link in the description of the video or the podcast as well for you. For $9.97, get signed up. Go there to claim those free gifts as well. The three books, t-shirts, and some other stuff.

You’ll see it down at the bottom of the signup page. Get signed up. This is one no-brainer. You guys know if I’m talking about this, it’s something that I believe in, something that I love doing and being a part of, and it works so well industry with our note tribe out there. If you’re brand new to real estate, this is one of the great ways to get rock and roll and be able to monetize what’s going on in the market these days.

Many homes are being listed, meaning the seller is needing a way to get stuff, move creative financing because of where rates are at and what’s going on in the market. There’s never been a better time to become a creative real estate investor. This is the package. This is the plan. This is the solution that you can not only provide for those distressed borrowers, distressed property owners out there, but also for you and your family as well. I think that’ll wrap it up, Chris?

Awesome. Thanks buddy.

You’re welcome. Get signed up. Use that code. Use the link. Get signed up, guys. You will not be disappointed. Go out there, take some action, and we’ll see you all at the top, everybody. Bye.

 

Important Links

• Chris Prefontaine on LinkedIn
• Chris Prefontaine on Instagram
• Chris Prefontaine on Facebook
• 3 Paydays Apprentice Program
• Creative Financing Real Estate Association
• Smart Real Estate Coach
• We Close Notes

 

About Chris Prefontaine

Chris Prefontaine is the best-selling author of 2017’s Real Estate On Your Terms and 2019’s The New Rules of Real Estate Investing. A real estate investor with over 28 years experience in the field, Chris is the founder of Smart Real Estate Coach and host of the Smart Real Estate Coach Podcast. He lives in Newport, Rhode Island with his wife, Kim, and their family. Chris operates the family business with his son, Nick, his daughter, Kayla, his son-in-law, Zach, and an amazing team.

Chris has been a big advocate of constant education. He and his family mentor, coach, consult, and actually partner with students around the country, teaching them to do exactly what their company does. Between their existing Associates nationwide and their own deals, Chris and his family are still acquiring 5-10 properties every month and control between $20 to $30 million dollars worth of real estate deals — all done on TERMS without using their own cash, credit, or signing for loans.

Chris and his family believe strongly in giving back to the community. They currently support Franciscan Children’s Hospital in Brighton, MA, 3 Angels Foundation in Newport, RI, and the Wounded Warrior Project by giving a percentage of all deals to those causes.

 

 

Want to talk to Scott? Book a call with him HERE

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