Foreclosure's Hidden Trio: Do You Know Them?

Join Donny Coram of the Foreclosure Deals Coach podcast as he unveils three vital, often overlooked strategies in the foreclosure market. Think you're a pro? This episode might surprise you.

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Transcript

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On this episode, we're going to talk about the three things you need to do to dominate the upcoming foreclosure market. Ready? Let's go. Welcome to the foreclosure deals coach podcast. The real estate market is shifting. The time is now the foreclosure deals coach podcast is your home for the mindset tactics and tools needed to break through your limiting beliefs and find. Freedom by investing in foreclosure deals. And now your host, the foreclosure deals coach, Donny Coram. Hello. Hello. Hello. And welcome back to the foreclosure deals coach podcast. I am your host and foreclosure deals coach, Donny Coram. And on this episode, we're going to talk about the three things that you need to do to dominate the upcoming foreclosure market. First of all. A lot of my naysayers out there are saying over and over again that there isn't going to be a foreclosure market. The real estate market is stable. Life is good. Donny, why are you such a doom and gloom guy? Listen, the fact of the matter is the market is cyclical and we are in a market cycle. Now that market cycle is being dominated right now by increased interest rates. Now you've got that story already. We talk about that on the show all the time. Interest rates are up days on market are increasing. However, what we're not seeing just yet is an overwhelming amount of foreclosures hitting the marketplace. Why that is varies in different places, but it really comes down to supply and demand as it sits today. There are still far too homes on the market compared to the number of people who need to buy homes. So what does it investor like yourself looking to get into real estate? Scale their real estate investing business to do to dominate in the local market before it happens. Guys, I've been pitching foreclosures as a potential resource for real estate investors to find deals for the better part of 10 years. But right as I started it, the market started an up cycle when I got into real estate as an agent back in 2007. We all know what was going to happen immediately after that. We were in full crisis mode from 08 to 2010. So it was during that time that I developed my skillsets, my talents to become a successful foreclosure investor. And then, although I've done hundreds of deals since that time, not a lot of them have been. Foreclosures since that point, because there haven't been a ton of foreclosures in the market. If you look back to just 2019, 2020, and a lot of 2021, all you had to do was yell house for sale really loud. And the house would sell because of the artificially low interest rates that were on the market. We are heading into a new market. Right now, where the investors who understand the strategy that I teach in the foreclosure deals coach mindset, you're going to be able to dominate your local market, regardless of your experience, regardless of your capitalization. When you understand these three key issues, you're going to be able to really take this market on and crush it. And just a quick backstory, I don't want to use a lot of your time on personal stuff, but listen to this. I was on a content creator conference just last week, and I'm sitting next to one of the leaders. Paul Xavier, let me tell you, if you haven't looked this guy up, please do. He's blowing it away in the content world, but I'm sitting next to Paul at this content retreat. And he says, a lot of people have issue with the term, get rich quick. It's got this negative connotation to it, right? Either it's illegal or it's wrong, or it's not going to last, but the reality of getting wealthy. And any endeavor is you tend to get rich quick. The best analogy is the hockey stick, right? You've got slow, gradual growth for a certain period. Then suddenly everything starts firing on all the cylinders. And just like that, you're making an incredible income in real estate investing. And I have to tell you, I literally not figuratively, but literally got rich quick in the 2020 and 2021 market because of the. Eight years of hard work in developing the strategies that I now use and now teach in my coaching program, you now get the benefit of all of that knowledge, all those transactions, all the deals that went wrong, all bottled up into my course, the five F system that can help you to invest. In real estate using this and not even talking to me at all, but just getting the education that you need, but for people who really want to quote unquote, get rich quick, getting one on one coaching, the handholding you need to go from the theory of doing real estate investing to the actual practice of doing it is really where I get involved here. So usually we have our mindset piece. I'm going to hop into that right now. This today's quote is coming from. Dwayne Johnson, the rock. And he says, success isn't always about greatness. It's about consistency, consistent, hard work leads to success. Greatness will come guys could not be any more true than that. Okay. It's about consistency. So let's get into the three things that you want to do to dominate in the real estate market, more specifically, the foreclosure market that I'm telling you is coming, you get your practice rounds in right now. Start doing deals in the pre foreclosure market that we're in right now. When this hits and the hockey stick goes up, you're going to be ready to go. So let's get to point number one on how to dominate the real estate market here in 2023. Number one is preparation. You have got to get. Guys, if you're still thinking about putting your LLC together, haven't gotten your business bank account and don't have an EIN right now to get your corporation ready to buy deals in the marketplace. You are sitting on the sidelines and there's no reason for it. Setting up an LLC takes a... Few minutes in most states costs almost nothing. In the state of Colorado where I'm based, it's 50 bucks. I've got holding LLCs in Florida. I paid 125 for those LLCs out there. The bottom line is you've got to get prepared. The business preparation is actually very easy. Where the real preparation concerns come in for most of my clients is the mental. Preparation. What are you going to do when the entire marketplace is saying the sky is falling, the world is crashing around us and the real estate market is going to fall off the map. Are you going to listen to the naysayers? Are you going to have the skill set to do actual market analysis? Not Zillow's estimates. Okay. Zillow cannot tell you what a house is worth. If you know how to do proper market analysis in the market. Where it's trending at the moment, you'll be able to take that skill set. And when we are in a foreclosure market, you'll be able to know exactly where the market is trending, what the current after repaired values are for your local marketplace, as they alter quarterly and monthly, and in certain cases, even weekly in certain pockets, and you'll know how to do that analysis and how to prepare for that, you've got to get your mind right. And you got to get it going right now. If you look at this as heading to war, you wouldn't start buying your arm. The war starts, you'd be preparing for it, buying the tanks, building the planes, getting the bombs together. We are going to war with the foreclosure market. Okay. And if you want to win that war and get rich quick, when this thing really hits, I'm assuring you that preparation is definitely the first thing you can do to dominate the local real estate market. When it happens, even right now, get started today. The next thing is boldness. Now, boldness is one of those words. I'm glad we brought up Dwayne, the rock Johnson, because if you just listen to this guy's story for just a little bit, you understand how this extremely yoke dude is just not just a muscular guy. He's a business guru, a mindset coach. Everything about this guy is dominated space. So he went from professional wrestling. Let's see what I'm saying here. He went from professional wrestling, pretending to throw people off the, off a wrestling ring to a tequila brand that's now worth billions of dollars. His net worth today is estimated to be 800 million, but everything Dwayne the rock Johnson does is bold. I love his movies. I love the acting. I love the fact that he takes things on. I even love the eyebrow thing. Check out what the rock is cooking. All right. Cause that's not my best impression. We'll get there. Wow. Let's see what I'm saying. This is what I got to deal with for my own production studio. That's crazy. All right. So this guy is bold. Are you bold? Are you sitting there in the meek and mild? Are you making decisions today that could impact you for the rest of your life? Or are you waiting on the sidelines to see? If things are going to happen, guys, boldness means doing deals. Even when you don't feel a hundred percent about the deal, I have done hundreds of transactions, thousands of deals as an agent, more than 300 flips as an individual owner. And I got to tell you, I was at 95 to 98 percent on all of them, which means I was never a hundred percent sure of the deal. And I've got a lifetime of experience compared to most people. Okay, so if I'm still unsure, how can you as a newbie expect to be 100 percent certain on every deal that you do? The reality is the only certainty you're going to get is in your analysis. So we teach about how to properly analyze a deal in the figure module of the course, but I'm just going to give it to you right now. It comes down to three numbers. You got three numbers that matter. The buy price, acquisition price. The rehab budget and the sales price. You take those numbers. You look at your gross spread in my coaching. We offer a minimum profit of 25, 000 to the client. So that's at a 50 percent gross margin. That means you need a 50 K gross margin when you buy the property after rehab to hit that 25 grand. We have a lot of people who come into the program with the expectations that were set by chip and Joanna games. Or fan Merrill about making 80, 90, a hundred thousand dollars per flip. That is not reality. Anybody who is dominating the real estate market is not looking for massive spreads. They're looking for consistency and preparation. So if they know the market as it happened, and they're willing to be bold about taking moves that other people may not. That's what separates the guys who do a lot of deals from the people who don't. If you have boldness, then you're already ready for that. But if you've got to work on that, I want you to take a self assessment today, own that fact, understand that you've got to increase your boldness. If you're going to dominate this market, if this scares you a little bit. Good. Okay. Because if you're playing it safe all the time, they're not going to make the money that you need to make when this market goes in. You certainly aren't going to dominate a market by thinking about dominating a market. You've got to be bold. You've got to take action. And when you get an opportunity that can make you a decent return, you've got to make the moves. The more you do that, the more opportunities you're going to get more opportunities you're going to get, the more money you're going to make, the more money you're going to make, the more bold you're going to be. Be on the next deal that you find it's a cycle, right? And you've got to change your mindset and really focus on what you can do as an individual getting started, regardless of where you are. Anybody who wants to do a deal can do a deal. My coaching offers the handholding, but if you're out there and you're wondering if this is for you or you can do it or not. Forget coaching, take some action, make a move, do it on your own. The reality is you've got a far higher probability with some assistance, but it's way better to do something and be bold than to do nothing and think about it. So either is, it's fine. Just make a choice and go with it. Let's get to number three on how to dominate the real estate market and the upcoming foreclosure market that's coming. And that is in fact, consistency. And that was a quote we started with when we got this whole thing going. It's not about greatness. It's about. Consistency. If you're going to be successful, you've got to write X amount of offers per week. And that X is dependent on how many deals you need to do. Okay. Most people would just need to do one deal. We have proven at this point that we're running roughly a one to eight close rate on number of deals to number of offers, which means we have to offer on eight deals to get one. Done. We're not doing stupid low balls. We're not out there trying to find 50k spreads, below asking price on properties that are listed on the market. And we generally pay what the wholesaler wants for the deal. But even with all those circumstances, we still have to consistently find deals on my team and we meet all the time to discuss the deals that we're working on. And we just need to pluck out the four, four to five a week that we're trying to do to consistently provide deals to my clients as coaching clients. And we are consistently finding those by doing a high. Volume of offers. You've got to be consistent. If your way of finding deals is driving for dollars, then how many miles are you driving per week? How many offers are you submitting? How much skip tracing are you doing? If you can't accurately track your numbers each and every single week, you're not finding that consistency. You're not getting the numbers that you need to hit, and you're not going to find the results that you want. Ultimately, success is about consistency, and you have to be consistent in this game. The bottom line, guys, is if you do that, if you prepare for the foreclosure market that is coming, interest rates are high. Lord knows what the government is going to do. And I gotta be honest with you. Okay. Going to war or attacking someone in another country is actually very good for us economically, but it's not good for the housing market. Okay. A lot of people deployed, families are disrupted. We are definitely in an interesting governmental time. You've got, I'm not going to get political with you, but if you just take a quick look at what the current federal government is doing, you should be very concerned about the economic stability of this country. As is as bad as that sounds. If you are preparing for this crisis, if you are taking action and being bold about it, and if you're consistent in your efforts, not only should you not be worried, you should be ready to capitalize baby, the time is happening. The market is shifting. Now is the time I've been going on for years about buying foreclosures. It was about, I'd say the last two weeks, we've actually put offers in on a couple of foreclosures. We've got one under contract right now, a HUD foreclosure. That was something that I was doing two to three times a month with. Absolute consistency. Now it's a major event, but the point is it's happening. The percentage of homes that are currently in some kind of foreclosures is at all time highs right now. Okay. We're not all time, but compared to the last five years. So we have a lot of people who are currently in a jam and I know that's horrible and I know a lot of people see foreclosure deals coach and their mindset is this guy's trying to take advantage of people and take their homes. Nothing could be further from the truth. I gotta be frank with you. People are going to screw up no matter what. Okay, divorce happens, death happens, life happens, jobs are lost, people are transferred. The reason for foreclosures are very rarely that people are bad people, just if they're in a bad spot. No different than a car getting repossessed or any number of things that go wrong in a person's Financial life. I'm not here to capitalize on that. I'm just letting you know, it's going to happen anyway. It does happen every single day. And the savvy investors, the people who know and are preparing for that right now are going to get rich quick in the new foreclosure market. That's coming. You want to get prepared. Now it is happening. You want to become a part of it today. Okay. So if you're listening to this right now and not sure what the first step is, let me give you some hints. Okay. Head on out to foreclosuredealscoach. com, get registered there. If you want to talk about coaching, we can hop on a coaching call, but there's so much information just available right there on the website where you can start getting resources, listen to the podcast, get the information, but don't put your head in the sand here and pretend like this market is not happening. I see far too much going on. Mostly from retail real estate agents that the market's going to be fine. And we have nothing to worry about. The market is not going to be fine, but the right about there's nothing to worry about. Okay. If you pivot rapidly to a foreclosure mindset, a looking at the market as an investment opportunity and looking at. The people who have lost their homes or going to lose their homes and investment opportunity. When banks take a home under foreclosure, they don't want the house. They're not in the housing business. They are in the business of making money. So when they lose money by having a house in foreclosure, they're super motivated to offload that property. So you can recover that capital and lend it out, especially today at the higher interest rates that are out there. Okay. Banks foreclosing on 3 percent loans is paradise for them. That money was cheap. They got 3 percent loans. They're not making anything on that. They can take that money back. Now, resell that property and relend that money at seven to 8%, doubling or tripling their yield. They're going to be very motivated to recover their losses on foreclosed property, which translates in a profit for foreclosure investors. Who get out in front of it, you take these three steps, you go out there and decide not to be a player in the real estate investing world, but rather a dominating force. And then you employ preparation, consistency, and boldness. I promise you, you'll be able to take over the marketplace and make a lot of money in the market to come. With that guys, I am so excited about being a part of this movement that we are creating with private investors, a lot of which who thought they could never get into the real estate investing market because housing prices went so high, interest rates went so high that most people thought they were priced out of the market and their opportunity was lost. I am talking to people every day and resetting that mindset. Not only is it now the right time to get in, but I will argue that with all the equity in the market today. There may never have been a better time to start investing in foreclosures than right now. So if you want to get started, I jump on my email list, hit the button below and schedule a time with me to discuss if coaching is the right fit for you and your investment strategy and get prepared, understand it's going to happen, whether you get involved or not. So if you're doing that preparation, if you're learning your marketplace, if you're consistently taking the right actions every single day to build your real estate investing business. While you maintain your day job, okay, a lot of people can't just immediately switch to this as a full time hustle. What I teach is transition over, do three to four deals a year with consistency, when you know you can do that amount of deals, you can absolutely amplify. Amplify your business from there, but if you don't get started at all, because you're afraid to get started or you think there's no deals or you don't know what to do, you're going to be on the sidelines forever. I would love to see you join us. Check out the Facebook group. We got a bunch of people who are right where you are trying to figure out what the next step of their investing journey is. Check us out at FD coach group. com. The link is below with that guys. That's our show. You're ready to dominate the market in 2023. I would love to see you be a part of it. Can't wait to see in the Facebook group. With all that said, this is Donny Coram, your foreclosure deals coach, thanking you so much for tuning in to the foreclosure deals coach podcast and reminding you now and always. Don't buy a house, buy a deal. Thank you for tuning in to the foreclosure deals coach podcast. If you like what you heard here today, remember new episodes are uploaded weekly subscribe wherever you listen to your podcast Do you want more of the foreclosure deals coach? Are you ready to learn the mindset tactics and tools required to be a successful? Successful real estate investor. If so, click the link below to schedule a one-on-one coaching Call today with Donny Corrum, the Foreclosure Deals Coach to determine if coaching is right for you. And remember, don't buy a deal.