The Property Perspective
From hidden gems to billion-dollar deals, this is The Property Perspective - where seasoned real estate pros reveal how they spot value others miss, and industry disruptors share the unconventional strategies reshaping real estate.
The Property Perspective
From Obstacles to Opportunities: The Power of Seller Financing
Unlock the secrets of seller financing in real estate and discover how to transform your investment strategy. With insights from industry experts Robbie Faith and Ramon Casaus, you'll learn how bypassing traditional banks and adopting seller financing can open up new avenues for growth. Gain an understanding of how to navigate the often-overlooked opportunities that can significantly expand your investment portfolio, even if you're a seasoned professional or just starting out in the real estate world.
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On this week's episode of the Property Perspective, our host, preston Zeller, uncovers the secret strategy top investors use to buy real estate without banks. He's joined by industry pros Robbie Faith and Ramon Dacus House, who break down how seller financing can unlock deals most people never even consider, from hidden gems to billion dollar deals. This is the Property Perspective, where seasoned real estate pros reveal how they spot value, others miss and industry disruptors share the unconventional strategies reshaping real estate. Now here are your hosts, hey everyone.
Preston Zeller:My name is Preston Zeller. I'm the chief growth officer here at Batch Service, and today we're going to be talking about seller financing from two experts in the field. I'm so excited to have Robbie and Ramon here. Welcome, fellas. There's so much to get into. We were just talking a little bit before the camera started rolling about your background and I'm eager to dig in more, so I'd love to hear just some kind of quick intros for you both. Yeah, why don't we start with you?
Robbie Faith:Thanks for having us, by the way, very excited to be here and talk about our favorite topic, which is seller financing. My name is Robbie Faith, from Albuquerque, new Mexico. I've been in real estate. This is my 18th year in real estate. I actually started as an investor, cut my teeth trying to figure things out, and byproduct of that was getting into the realtor business. So I've been able to grow a retail team over the years. So I've got a team at Keller Williams where we sell real estate as brokers. The main foundational reason getting into real estate was to build an investment business. So that's what the main business has been for years and we've got a team that does that. I've got a wholesale division, an investment business really, that sources off-market deals with the objective for my team to acquire and own as much real estate as possible. Byproduct of that is, you know, we can't buy every deal. So we have another monetization strategy where we assign and wholesale and then many of them actually we will list. So it kind of that business feeds all the businesses. But that's what I do.
Preston Zeller:Awesome. Well, thanks for that great intro, Ramon. What about yourself?
Ramon:Yeah, so I'm from Albuquerque as well, but I've been out here in Arizona for what is it now Turning the corner on three years? So I got started in real estate 2016, got a license, basically knew nothing right and just went for it. Two years in, I actually started my own brokerage. So I was about 24 at the time. I grew that to about 60 agents and we actually still have that location in Albuquerque and, like I said three years ago, I said you know what I want to go to the most competitive environment. I want to go test my skill set and get around. You know, I think the most innovative city in terms of real estate residential real estate that is Phoenix, arizona. So I started a new location, scottsdale, and you know, throughout my time in selling I think we're on. We should round out 3,000 all-time sales this year. I had the fortunate opportunity to come across a lot of good deals and as an agent, I ran into some traditional roadblocks that hinder us from purchasing real estate at a high level and seller finance, which we're going to talk a little bit about, and that's a huge passion of mine is helping not only everyday people who aren't in real estate, but specifically real estate agents learn how to acquire the properties they sell everybody else before themselves. So that's what my world looks like Cool.
Preston Zeller:So let's just start really simply then there's going to be people watching this that have heard the term seller financing and probably have like 10 definitions going on. Why don't we start with you, Robbie? Maybe like just give us a really simple definition of that for people who are listening?
Robbie Faith:Yeah, I mean essentially seller financing is a way where you bypass using a traditional bank and we make the seller the bank, thereby making monthly payments directly to a seller, sometimes with an intermediary, an escrow company or a servicer of some kind, and so that's essentially all we're doing is just making a seller the bank.
Preston Zeller:Yeah, and why do you think either one of you can answer this? But like, why do you think real estate agents shy away from this right? Well, first of all, a lot of real estate agents shy away from investing. Maybe we just start there. Why aren't more real estate agents investing? They just want the listing and then move on.
Ramon:Why aren't more real estate agents investing in real estate? Yeah, all right yeah, to be honest, I think that it comes back down to the traditional financing. I call it the traditional financing box, right? So your everyday conventional FHA, va, any type of loan product that's coming from a bank, it's like this box Within the box. You're restricted how much you make, how much you don't make, right, how much cash you have or don't have, credit score, et cetera. You know your tax returns, these things are all factored in and so with seller financing, you open up this Pandora's box, if you will, where truly anything is possible. But I think starting there is that the traditional financing box, which is where most people think I'm going to buy a home, I need to go to the bank. You are very limited and as an agent 1099, usually self-employed you have a lot of the same roadblocks Very easy to get into tax trouble. You have cash flow issues. You have cash flow issues. Usually credit follows that, and a lot of times you're just not in the actual position financially to do so, if you're only thinking traditional financing. So I think that'd be like number one out of a long list, but that would be number one in my eyes, okay.
Preston Zeller:What about you, Robbie?
Robbie Faith:Yeah, I mean overall just obscurity. They don't know how to do it. They're very narrow-minded and a lot I shouldn't say everybody but you're focused on a task of brokering and you don't think to actually get involved in the product that you're actually transacting on. So I think it's sometimes unintentional they just don't stop to look up and be like maybe I should start investing and being on the other side of the coin. For me, what happened was I started as an investor kind of natural byproduct of having my own inventory to sell. Why don't I just keep it in-house, get my own licensing and start building a team around that? But a lot of times people I find they kind of wake up because they start doing the numbers as a broker and see when they're working with investors they sell a house at X. See when they're working with investors they sell a house at X. They go and find an investor client who's buying it and reselling it at Y and doing the math on that. They're like gosh, what am I doing? I should be on the other side of this business. And so I think too few people actually look at the math around it and just don't spend the time actually taking a step back and realizing that they should be involved in also to the complexity of the deals.
Ramon:Right, like when you're dealing with an investor, it's not the traditional home seller who wants top dollar for their property and the buyer who just wants a deal. They may not have to steal the property, they just want to get a deal. That's 90% of an agent's life right Is they're working with those two client avatars. You start throwing seller financing in the mix, you start eliminating a lot of properties from there and then you have all the terms are now fluctuating within the negotiations, like the deal. In my opinion, the deals are more complex, they take more time, they take more accuracy and I know if I had a choice, right, if I was going to get paid the same, I would probably go with the easier deal, right, yeah, but in a market like where we're at today, where you know almost a third of transactions have been wiped off the you know total transaction count across the US in the last two years, you know you're like, hey, where can I create more deal flow? And I think that's why it's being talked about more is because agents specifically are going hey, I need to open up more revenue streams and have other options here. And so, yeah, I see that's. Another reason is because, hey, if I have the choice, I would go with the easier deal too. But when the easier deals aren't the option, what do you do?
Preston Zeller:Yeah, I just had a thought while you were talking too, because, like you're right, I think there's so many people who, or first of all, agent training, um, when you're going through the certs and stuff and I was a broker in washington state for, uh, quite a while and um, yes, they may mention like seller financing somewhere in there, but they're not. Like briefly, they're not. It might come up one time and you're licensing three slides and broker yeah, three slides and the broker trading.
Ramon:Nobody talks about it, nobody teaches it to you.
Preston Zeller:Yeah, well, then you combine that with the fact that, like, um, you know, personal finance is not a very taught about the taught subject, right, I mean, most people are financially illiterate by the time they're 18. Um, and then they go through a lot of adult life, just, you know, making really big mistakes. I know I did um, so, yeah, I think there's, there's a number of things probably contributing to that um sort of uh, you know, it's just a lack of education about how seller finance works. But I'm curious for you both, like what was the? I think you kind of mentioned it in shades here, but was there some catalyst moment that you remember going, oh my gosh, like the potential here is just massive for to compliment my real estate business seller financing?
Robbie Faith:Was there some particular moment, or is it just kind of like a seasonal life, or you know, for me I just I stumbled into it without having some type of epiphany around it. It was kind of forced in that. Um, there was an incident in my life where I was waiting tables for many years trying to save as much money as I could so that I could funnel back into my very first purchase that I made, to rehab it, to sell it, to pull some equity out. And while I was doing that, in the process of hustling in food and beverage, I served alcohol to a minor, went to jail, actually went to jail.
Ramon:Yeah, actually went to jail. Badge on table jail.
Robbie Faith:Yep, and I'm dressed up in my, and it was a nice restaurant. So, like nice shirt, nice pants, go to jail. And that was a turning point for me. It was 2008. And at that point, like I had these big dreams of being a real estate mogul, of owning as much real estate as possible, not knowing full well what the opportunities were that right there. That incident forced me to look into other creative ways to buy real estate, and so I would go around driving, looking for for sale by owner signs. I heard this term creative finance. Didn't even really full well know what it meant, I just knew it got a conversation going and there was an illicit response I would get as a yes or no. And knew it got a conversation going and there was an illicit response I would get as a yes or no. And if it was a yes, they would talk terms and numbers that I didn't comprehend. Organically, I learned that there was another way to purchase real estate. So that incident has forced me to really create another strategy and I bought my first seller finance deal in 2008. So that was my moment.
Preston Zeller:That's an epic story, by the way. I'm curious was this like a sting operation? It was a sting operation.
Robbie Faith:It was really bad. I guess I can go on record saying this now that it's been years, but I mean, I knowingly served alcohol to a minor, so like I id'd this person and I'm like I grew up drinking manischewitz wine when I was 13 years old for my bar mitzvah you know, I'm saying so like it wasn't a big deal. This girl ordered a mojito, gave me the. You know, the license in new mexico was a vertical license and the moment I set the drink down on the table like this, the badge comes out of the shirt and I'm just and that was it. It was Saturday night.
Ramon:He told this story on a webinar the other day. I remember I was dying because I'd never heard it before. I was like I didn't even know this happened.
Robbie Faith:I keep it kind of quiet, but I guess it's no longer the case.
Preston Zeller:I mean, that's a memorable. The memorable stories are what sticks on a total like side note. This is where my brain goes. I'm like you know the people like this sounds like this girl looks very young, but they're an undercover cop. You're like is that just they get recruited into being an undercover cop, cool? Well, now we know how an alcohol sting got me into seller. Financing is the name of the e-book. Okay. So, ramon, what about you? Anything in particular?
Ramon:Yeah.
Preston Zeller:You ever heard of a council of exchangers?
Ramon:No, so you know, just you know, honestly speaks to the power of, hey, you know what. There's this group getting together talking about this subject. I don't really know much about it. It sounds maybe I should just go as a new agent in the business and it's these guys who I'm probably going to bush this. But they're in the world of exchanging property, very complete obscure style transactions Like hey, this guy has, you know, these gold bars, this guy has you know, uh, this, these gold bars. This guy has this corvette and there's this property. If we take the bars, we put like it's this weird stuff, obscure. But seller financing came up a lot in that meeting. And so I sat in this meeting and I didn't really know what they were talking about, but it sounded cool. I was like man, there's a bunch of cool stuff going on. It's a bunch of older guys all like their gold and bling on, and I'm like, all right, so they're obviously making some, some, some money in this room. And uh, and this one guy, frank frank, was like this little italian guy and I don't know what his last name is but to me it was like debon dimaggio or like campania, you know, like a little, a young little don right the wise italian man in the room and he pulled me aside and was like hey, kid, I can. I notice you didn't say anything. I can't do the Italian accent, but yeah yeah, yeah, I noticed you didn't say anything. And uh, I was like, yeah, he's like, yeah, I can tell you don't know shit. And I was like, yeah, correct, yeah, I'm just trying to learn, man. But he said, okay, look, I'm going to tell you about one thing specifically and he explained seller financing. I was like, yeah, I heard that. Like what, what is it? He was like, oh man, like all right, so this is how it works. And he kind of gave me the box analogy, like just imagine all everyone else is thinking in this little box, see, I think outside in the Italian accent. And I'm like, okay, god, he's. As a matter of fact, I got a property that you should check out. It's on MLS, look at it. But if you ever run across anyone talking about seller financing, I want you to call me. I said, all right, will do, sounds good, frank. And so I. Actually, if the properties on Eaton Street, it's in the UNM University, new Mexico area, nob Hill, they call it in Albuquerque, it's on Eaton and I bought that first prop. My dad's a contractor. I buy this first proper and negotiate eighty two thousand dollars for a duplex,$5,000 down. And I'm telling my dad. I'm like, dad, I think we can make some money here. You do the construction, you'll handle all that, I'll do the real estate. And we ended up flipping that home, making just close to a six-figure profit. And I was like, whoa, that costed nothing to do and we made so much. We should have just held it. Honestly, I look back and I should have held it, but and that was like 2017 or 20 said 2017, going into 18. That was that deal. And and that just opened my eyes because I couldn't believe that I just bought a duplex for five thousand dollars down. I couldn't believe it and um, yeah, that's what it was. That guy introduced me to the concept, explained it and then after that I was kind of hooked. I was like, okay, I need to find more of these. And then, sure enough, what you look for, you will find, and it all snowballed from there are you guys familiar with the concept of uh, ooda loop?
Preston Zeller:you ever heard of that ooda? So it's like observe, orient, decide and act, uh, but it comes from a uh, I think it's a Korean or Vietnam like pilots during that time. And there it was a kind of thought framework for when you're in dog fights, because you have just like a fraction of a second to make a decision on life or death, basically, and how you become really rigorous about like the information you take in, because it it sort of affects everything else, kind of like what you look for you'll find. But it just made me think of that Cause it is interesting how you'll learn about something, whatever it is, seller financing, and maybe after this people are going to function in this way and you go, oh my gosh, there's all this seller financing opportunity out there.
Hope:Yeah.
Preston Zeller:But you just got to know, to look for it, that it exists. That seems to be the difference between you know people that get really successful in different areas of life and other people who go, you know, keep their you know thought loop in a very sort of uh you know, toxic or limited way, whatever it is. So you guys are years into doing seller finance stuff. Now what have been, maybe one or two things, your biggest aha moments after getting into seller financing?
Robbie Faith:You know, for me for the longest time I was that one trick pony where I was making low offers with the strategy of trying to buy it cash and if it didn't work I could have a conversation with seller financing. That was kind of like our methodology to get a seller to the thought process of maybe getting a little bit more money in trade for being the bank. It wasn't until a couple years ago that I really understood the value of how you can truly monetize a property and pay a seller their asking price, a fair market value, even a premium, and actually doing the math on how it could be mutually beneficial and very beneficial for me as a buyer. So that was a big shift in my thinking when understanding all of the levers that you can pull with seller financing. It's not just price. The terms can get very complex, you can get very deep into that and there's truly just a tremendous amount of benefit that you can create and value you can create in giving a seller a very fair price, and so that's been kind of a change for me. I'm just getting deeper on some of the complexities within negotiation on on seller financing and terms that you can implement yeah, that's good.
Ramon:I'd say that you know, big aha moment is everyone talks about, obviously, the benefits for the buyer. But flipping that around, once I truly understood the benefits for the seller is when the aha moment went off and said, oh see, I read this statistic a long time ago. It's probably true who knows? But I think it's true. The money you pay to the bank, someone in New York, it's going to somebody in New York, and so most sellers right, and then their kids right, most sellers. If you think about the average homeowner, they probably have a credit card, they probably have a loan on their home, they probably have a loan on their vehicle. They might have some other debt somewhere else. The amount of interest you're paying the bank, all the I mean everyone it's. It's when you really look at that and go, hey, for the first time in your life you get to be the bank, because the bank always wins. Right, there's the bank, there's producers and there's consumers. The bank lends money to the producers. Producers create goods and service for the consumers. The bank also gives the consumers credit cards to go buy the goods and services from the producers. So at the end of the day, the bank wins. Let me, for the first time in your life, most likely put you in the position to win being the bank. And when you understand all the different benefits that come along with that um, and you can articulate them to a seller and you know we're not, people aren't kicking and screaming at closing it's a win-win. But once you understand that philosophy, I believe that that was like a huge aha moment for me. It's like wow, yeah, obviously what's in it for me. But it's not about that, it's about what's in it for them. And when you can articulate that properly, I think seller financing opens up a lot of opportunities.
Preston Zeller:Well said. Yeah, that's a great way to put it. You know, and I think there's some amount of, I think, with seller financing and maybe experiences in seller financing, where people can they don't know enough to really understand it, so they'll, like you know, judge it as like a sketchy way to do things. Have you ever come across that Of?
Ramon:course. All the time, but, yeah, every day, but I mean, you know you usually, you know, we actually talked about this on one of our calls with our our our members in our seller finance society. It's like asking one more question. Most people stop at the first no, I want to know why. Why not? Has anyone actually sat down and explained it to you? Regardless if you want to do it or not, but do you actually know the functions of how this works? And what you'll find by asking one more question is that most people don't. They have the preconceived notion. They heard it from a buddy, they read on facebook, whatever the case is. But when you actually again stop to explain and and and take the time to do that, the eyebrows go up and say wait, hold on. And now you're in conversation. But yeah, I mean, we get sellers all the time that are that just say no, and you know some people are headstrong and just, but I'll call you in a month. Yeah, I'll call you in two months. We'll be in touch, it's okay you're planting.
Preston Zeller:Planting that seed? Um, yeah, that's an interesting thought too, that there are so many people that don't have a real, true rebuttal to something that they even believe in. It's just, you know, I heard this thing and we'll flip it around to their side, right it?
Ramon:It's like there's two types of seller financing deals one with debt, one with no debt. So it's kind of like the pain and gain scenario, right, when you're dealing with someone who has no debt, they're usually looking for gain, but a lot of times, people who have debt on their property, a lot of times it's a pain situation. So it's not even about do you like this or not. It's about what other options do you have? Now, we're not forcing someone to a corner. Obviously you have options, but they may not be better than this one. So, again, it just depends on who you're talking to.
Preston Zeller:Yeah, well, you know, like the no debt situation particularly, I think you know people don't want to expose all the capital gains at one time, right, so I I mean that could be a pretty key driver there.
Ramon:Yeah, I mean capital gains and capital placement, right, like you know, if, if I'm going to give a, you know, just use an example a 70 year old man, right, he has a, you know, whatever plex you want to call it, say it's worth 750 000. He owns it free and clear, owns it outright. We give him 750 cash. What are you going to do with it? Yeah, yeah, and cash. What are you going to do with?
Robbie Faith:it yeah.
Ramon:And not only what are you going to do with it, but what's the risk of taking that capital and putting it somewhere else, whereas you could keep your capital in place and I could give you an interest return on the asset you're already familiar with. You already know Foreclosure is not a new process. It's not something new. If I don't perform, you just take the asset right back and obviously there's tax benefits and things that you know we could talk about. But that's. The other concept is like what else can you do with the money? Put it in a bank account that last time I checked. That's not a great way to grow your wealth right. Most people are outliving their retirements, they're outliving their money. So this is all part of the conversations we have with sellers.
Preston Zeller:And I know y'all got started in single family. Are you delving now into five plus apartments or units or commercial or other types of property classification? So where are you going with that?
Robbie Faith:Honestly, we see seller financing more of an active strategy in commercial real estate, but we do it all Seller financing and residential land deals, commercial properties, mobile home parks, apartment buildings. We originate notes, create our own notes and we become the seller, understanding full well what Ramon just said. It's like we are bought in to the true benefits of being a seller in that type of deal structure and so we believe in it and we like to actually originate notes.
Preston Zeller:So yeah, break that down. What does that mean? Originate notes.
Robbie Faith:Essentially, you know, if you have a piece of real estate, it doesn't matter what kind it is. I mean, if you have an asset, you just become the and we provide an instrument for recourse a mortgage or note, a land contract, depending on where you're located, and you have security. Now it's collateralized through this instrument and we just get monthly payments so you can just create a stream of income, an annuity, for yourself. It's very low noise. So noise is kind of one of those things that we think a lot about and talk a lot about in our community. You're in residential real estate, You're dealing with the tenants, toilets, termites.
Ramon:Ticks, whatever. What else do we say Ticks yeah, yeah, the ticks I don't know if that's maybe the fourth. T.
Robbie Faith:It might be the fourth word, but there's noise associated with being an owner of real estate.
Ramon:Cost noise.
Robbie Faith:You can layer it with management but ultimately, like the buck stops with you, you're going to be dealing with it. So this is kind of a you know it's a hedge to your portfolio. It's another asset that you can create where it's very low noise, very low risk. If you vet them correctly, vet the buyer correctly and have you know a certain loan to value, and you can create a very meaningful return on investment for yourself as the seller being the bank, just like Ramon talked about. So I mean, that's what that looks like. It's truly a very diversified strategy that you can apply to acquisition disposition wholesale, like as a wholesaler you become, you're building in financing for a buyer right. It just becomes so much easier for this buyer to buy your deal and potentially make a bigger premium than what it would be if they're paying, you know, a hard money, lender points and interest on it. Now you've baked that into your own deal by utilizing this strategy. So truly, it is a strategy we implement in all different facets of our real estate business.
Preston Zeller:And are there any tools that you are using to help you find new potential seller financing leads, or is it just word of mouth for you, referral-based right now?
Robbie Faith:word of mouth for you, referral based right now, or you know, one of the big opportunities is, you know, just go straight for the avatar of the, the seller you're looking for, which is high equity or or no debt, right. And so you know, we use batch as one of our you know tech programs to actually source individuals who don't have debt on properties. He's like, why, as well, just talk to the individuals who this could actually be a phenomenal fit for, and so I mean, that's that's how we do. It is, we're just we're looking for a certain avatar of person typically, but you know there's, like Ramon said, there's pain in some cases where you're actually coming in and you're the hero for person somebody who's got some debt on property, where you know you're going to be able to manage that for them.
Ramon:Yeah, I stick to single family personally because it's the asset class. I know it's the asset class. I've been studying. I always say the best investment is the one you don't mess up. So probably where you have the most momentum in education might be a good start the most uh, you know you have the most most momentum in education might be a good start. Um, and having two retail teams, right. So this is what I get a big influx from. Those activities is where I get a lot of leads from. But to answer your question more specifically, I mean there's bash, obviously, but there's tons of different software data providers out there and I I first start with like you got to make the calls we talk, talk about this all the time. There's just no, it doesn't you can get all the AI it just you got to get on the phone what they sell. First and foremost, I don't care how you do that, what data, what tech, whatever you use. But you know, I kind of explained it like we start with super low hanging fruit and we work our way down to more complex. So for the first, the person to say like hey, what we do and where we get our data from and how we. Then, you know, scrub it and then how we have the people go like most people aren't going to do that. So you start at the top, where it's number one. Tell people what you're looking for. Yeah, we talked about this, you know, you think about it, you're looking for it, you find it eventually. That's one strategy. I'm like if you want to buy single family property, uh, using seller financing, and you're the only one that knows about it, that's probably not a great strategy to start. Second is because both markets Albuquerque and Arizona Albuquerque and Phoenix both have a box right Seller may carry or owner finance considered in Albuquerque and you can get a feed of all the properties right now where the seller has already put their hand up and said I'm open to a seller financing deal. Then take it a step further. You have the properties that come off the market, expired listings that had their hand up saying I'm open to seller financing, and then you look at properties that have been on the market for just you know, every. Each market's different, but here I would say, like past 120 days, it's probably a good time to start eking in, see what the deal is. So you have those properties long days on market, then those come off the market. Another opportunity and within that world. right there, without getting into more complexity, I think there's plenty of real estate and leads, if you will, and that's where a majority of our, of my, in my business, where a majority of those leads come from.
Preston Zeller:Yeah, and I appreciate that. You said too that, like you have to pick up the phone, do the work, is so many people I mean, reddit is actually a hilarious place to go for this because it's like people want just the silver bullet to, you know, get their deals or their leads, but ultimately like, yeah, you have to do the work. And that's this is where I think SMS actually like screwed with a lot of people's heads because it was too easy, you know, and and we surely we benefited off that. A lot of people did, um, but it was just, it was like too good to be true to last forever, just because you're like there's only so much, like, hey, let me send 50 000, 100 000 texts a day that everyone can be doing before it gets regulated. So, yeah, definitely, definitely got to do the work.
Ramon:There's like a saying I like to use with our team is that the value is in the inefficiencies SMS, email blast being more efficient you mean no, yeah, no. So the value is in the inefficiency. So usually what you're thinking okay, how efficient can I be? Send out tons of emails, tons of text of text. You know there's systems now that write offers and put the whole thing together and they go straight to the inbox of the agents the moment that it goes on the market. There's all these efficiencies, but there's no value in them. The value is in the most inefficient thing, because it is exchange of your time, which humans all just know subconsciously. The most valuable thing someone can give you is their time and that's recognized, right. It's why a handwritten letter always means more than one that was pre typed. It wasn't about they all say the same thing, but it's that the fact that you took the time to write it. That's the difference. So you know, all those things are great, but it still never replaces again just talking to somebody, a real human.
Preston Zeller:Yeah, it's more, you know it's inefficient, but that's where the value is at. Yeah, that's a great point, and so I it seems like you've. You've bundled all this together into you know, seller finance society. So walk me through what is seller finance society? And then like how can people get involved with that?
Ramon:Yeah.
Robbie Faith:Hit it Ramon.
Ramon:Yeah, so you know, anyone doesn't matter if you're in real estate or not that wants to learn how to buy their first or next rental property without using a bank. That's the premise. We have a free version which, honestly, is 30 hours of Rob. Imagine this 30 hours of it. Who knows if someone will actually watch it. We're pretty entertaining, so we keep it pretty fun, but it's 30 hours of us going through combined almost 30 years experience in real estate investing and just breaking it down. I mean real examples sub two seller finance, dscr, private money, how to find the deals, what to say, mindset I mean you name it. So that's available for anyone, because at the end of the day, it's like, look, here's all the stuff, here's the information that we know works. But most people don't need information, they need implementation. And so Seller Finance Society, where we actually coach people on getting them to that first deal or setting up the systems to buy them on a regular basis, depending on the skill level. That is what we do in our private coaching group and, yeah, it's, it's very, it's very much one-on-one. We are a lot, we are very much about not I don't need the most members, we need the most engaged members and the amount of deal flow that is already in a pretty relatively small group, considering the other groups that are out there, is it's pretty substantial, and so anyone who's dead serious about being held accountable to number one learning the craft. Second is executing, and third is having supplemental opportunities that are created by the group and are serious about actually pulling the trigger on something. That's what we do, and I can't stress enough the information versus implementation. Like, if you want information, just go on YouTube, it's all there. I mean, there's tons of people lots of them have been on this, you know, been on batch that you can go watch their YouTube channels and you'll learn everything.
Robbie Faith:But if you want to do it in real life, that's what we pride ourselves on. Yeah, cool it's the handholding.
Preston Zeller:Yeah, well, I and I. I think the thing that you know, you guys have both touched on is getting that first one, cause there is, there is something about that, you know, know, when you've never done something before and you and it's big and scary, and you go do the first one, you're like, oh, this is possible. These people are not just crazy, I'm. I feel like I'm in the club now.
Ramon:Yeah yeah, or when we're showing them the ones we're buying, we're like guys, this, like this, is exactly how it happened. Let's give you the case study. We just closed this house. Here's the whole story on it start to finish here text messages Look like here. Here's the stuff all the way to closing. Um, we, we share all of that to me. You know. It's like you said, to let them know it's real.
Preston Zeller:Well, I think there's a distinct feeling you get to, even if you haven't done the done the first one, or accomplished the first one yet, um, where you should be able to tell the difference of am I just, like you know, dabbling in theory or am I doing the work you know to, that's progressing towards that thing? Right Cause there's a, there's a process of learning the methodologies for sure, but then doing those, putting them into practice, like you said, getting some of that handholding which always helps when you're starting out. You start to get that feeling like it's a familiarity. I've found that is good to be able to tap into.
Ramon:You know, it's more the handholding post doing the work. That's the filtration process, right, as we talked about. There's no supplement for getting on the phone, as we know most people stop there. But we're not selling cups of water, right. We're dealing with properties that are worth hundreds of thousands of dollars, not millions, and so the one-on-one aspect actually starts after the deal is found, because giving you half-cocked information you know, text voice notes, like we need there's a lot of moving parts here. We take that seriously, right, and so it's. It's that it's the factor of looking at each deal with that person to make sure the first one gets across the finish line. It's after they've done the work, though, because no one can. You know, there's no group or no ai yet that can effectively do the work for you.
Preston Zeller:Yeah, and to your point, how much is it going to do it impactfully? I was talking with someone else about this. Ai is very effective, even right now, at organizing and making sense of information, but replacing you. The interesting thing about real estate to me is it's still no matter how many tools, no matter how much data is out there, it's still a person-centric business, right, so it can help us do research faster, for sure, but um, yeah, decisions are made, not emotions.
Robbie Faith:You know two humans you know connecting with each other. So I mean I think it's hard to disrupt that. That emotional component to it, I agree.
Preston Zeller:Yeah, you don't have a you know chat bot for your property saying I'd like to sell myself. It's just like chatting with another chat bot and then that's sounds like a terrible movie, but cool. What else would you add to this before we wrap up? Just like about seller finance society, or just like, maybe piece of advice that you may have for people who are, like, thinking about this, or maybe, yeah, maybe they're just thinking about it and like where would they start? You know what would you say to that person?
Ramon:Well, just give me your phone number to say call you.
Robbie Faith:Yeah just call straight, straight call me. Yeah, no, I mean, you know a lot of this is like you said. It's proof of concept, it's very conceptual, but like doing the work same thing we've been talking about. You just got to get the reps in, you got to shake the cobwebs off, you got to do the work and then just get a little bit momentum and, of course, you can build an actual business around this. This is a very viable strategy. I mean the, the deals that we are putting together right now. It's just incredible what we can do in an environment right now with the rates and the, the sixes, and it's looking like it's gonna be pretty steady here. I mean we're negotiating deals in the sub three to 1% interest rate range that allow us to actually cashflow day one, and so it's just super exciting. It's encourage anybody out there who's listening, who has interest on this just join. Join the school group, because it's free, and get involved. Get in a community where people are actually taking action and doing deals. And you know that synergy, I think, is what's going to help a lot of people.
Preston Zeller:Yes, and so it's still possible to get a decent cap rate right now. Oh dude, the deals are out there.
Robbie Faith:Like I've been getting deals, you know, for the past five, six years, like the market's just been very frothy Some of the most the best deals, some of the most the best deals, some of the most credible spreads there. They're always going to exist. Yeah, is it. Do you have the ability to identify them? You have the education around how to know what a good deal is, how to pencil a good deal, what it looks like and creating a model around that there will always be opportunities yeah, and I think you know learning seller financing.
Ramon:As a byproduct of doing that, you become a very intelligent investor as a byproduct of learning all the strategies. Like how does two points lower than market affect my IRR after five years? Like, truly like we know. In concept it sounds good, but like what does it actually look like? What does it actually look like? And I think that when you understand now all the moving parts, especially speaking to single family, you become a lot more intelligent and everything else kind of opens up. Because if you can understand seller financing not saying it's that complex, but everything else in my opinion is less complex than that so if you start there, you're going to learn every aspect of real estate investing and then you know obviously there's strategies, there's resources out there, but when you understand that it's still a people business and that there is a yes, there is a mouthwatering investment in front of you, but there is also a human behind that mouthwatering investment that has real needs, you know, has a real life, has real situations going on, and when you can connect with them and truly level comes with being able to explain seller financing adequately, but when you can really understand how you can use the strategy to help that person. Keyword is help the. The world opens up, but you know the hard and fast approach is trying to steal properties from people. I mean you'll get a, you'll get a couple here and there.
Hope:But you want longevity.
Ramon:It comes with just helping people, and we think it's a great way to do that awesome.
Preston Zeller:Well, where can people find you guys on social and then also seller finance society?
Robbie Faith:so my social best place is Instagram at Robbie faith, realtor, faith with an e at the end of faith.
Ramon:Ramon doc, this house first, dot last name on Instagram and then you just go to those pages and all the links and all the schools.
Preston Zeller:We'll have it in the description and stuff too. So cool. I really appreciate you guys coming out and having this conversation today and look forward to seeing how Seller Finance Society takes off and you guys are able to help a lot of budding investors and people who are maybe experiencing investing but don't understand seller finance too. So just look forward to that for you guys.
Hope:Thanks for listening to today's podcast. Please make sure to subscribe on your favorite service to get notified every time a new episode is released.
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