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Episodes
Brad Smotherman, a multiple 7 figure house flipper, shows you how to market for houses, negotiate, structure your deals, and fund your deals so that you can create a high 6 figure or 7 figure house flipping business, without sacrificing your freedom.
Episodes
Tuesday Jun 28, 2022
Tuesday Jun 28, 2022
Today we're talking about why we don’t do lease options as a business model. Actually, the only times when we’re doing short-term lease option is when we’re transferring the deal to medium or long-term owner financing. So we want to compare and contrast lease options vs owner financing and explain why we've chosen the latter.
What is Covered:
- Pro-lease arguments and why they don't really work
- When having appreciation is not an advantage at all
- Does it make sense to use depreciation for tax advantage?
- What really happens when the deal goes bad and you're on lease option
- A potential benefit short-term lease option - double dipping
- The benefits of owner financing:
- There is not that much liability when holding notes as opposed to lease contract
- There’s no vacancy in repair with owner finance model, whereas when you get the house back from a lease you always have to do some repair
- You get big down payments so the foreclosures don’t hurt you
- Owner financing is highly scalable
- Con to lease option: from the buyer perspective, you have no control
- Con to owner financing: it doesn’t seem real at first until you cash out the first time
So have a think about these arguments, and email us at support@bradsmotherman.com if you have a question you’d like answered on one of the following Tuesdays.
Resources:
- Join The Investor Creator Community https://www.facebook.com/groups/3083532848354005
- Website https://www.bradsmotherman.com
Tuesday Jun 21, 2022
Tuesday Jun 21, 2022
We notice there is a sense of fear taking over the current market and expanding into real estate. Yes, it may be a tough market but the reality is that the number of households interested in becoming homeowners remains high. If you remain focused on what matters, this challenging market has a silver lining for you.
What We Cover:
- Announcements: Free Support Calls + Stinky House Challenge!
- The asset classes that are currently not doing very well (Bitcoin, etc.)
- Fear sells and how to avoid sloppy buying
- The game will change but it doesn’t mean there is no game
- Why we are now seeing adjustable rate mortgages
- Is it possible to have major ‘corrections’ in real estate?
- Home ownership is not going away but we will see some changes
The current market trigger is no doubt difficult. However, a crash market is not necessarily a bad thing for everyone. We can’t be scared of change because with every change comes an opportunity and we have to learn to adapt and to be excited about what’s to come.
Email us at support@bradsmotherman.com if you have a question you’d like answered on one of the following Tuesdays.
Resources:
- Join The Investor Creator Community https://www.facebook.com/groups/3083532848354005
- Website https://www.bradsmotherman.com
Tuesday Jun 14, 2022
Tuesday Jun 14, 2022
Mentorship is a process that develops naturally when a mentee is found by a mentor or vice versa. Mentors often make a huge impact without even realizing it or trying, and the experience of having this kind of relationship is utterly rewarding. So today we’ll discuss the relevance of mentor-mentee relationships in building a career in real estate.
What We Cover:
- Character traits of a mentor
- How to know in which areas of your life you'll benefit from having a mentor
- How a mentor shortens the learning curve and saves time and costs
- Why sometimes you need to burn the boat to find a way to get to the shore.
- How Mentor-Mentee relationship increases vision and goals
- Mentor-mentee relationship is a two-way street
A great mentor provides valuable insights not just about the market and industry, but also about how you can have long-term success. You get feedback from a person who has the context and you just need to trust the process. So go out there and find your mentor.
Email us at support@bradsmotherman.com if you have a question you’d like answered on one of the following Tuesdays.
Resources:
- Join The Investor Creator Community https://www.facebook.com/groups/3083532848354005
- Website https://www.bradsmotherman.com
Tuesday Jun 07, 2022
Tuesday Jun 07, 2022
This is the last of the big 5 motivators that we cover in this series. In our deals, we see that being a tied landlord is usually coupled with one of the other motivators such as preforclosure or inheritance. Though the lowest amount of purchases comes from this motivator, it can still be very powerful in your transactions, and today you'll find out why.
What We Cover:
- What a professional tenant is
- In what kind of situations you deal with tired landlords
- What the house means to a landlord and what emotions are tied into the deal
- Examples of transactions we had with tired landlords
- Why it's good to have a young mentor if you are starting in real estate business at the age 50+
Although you probably won't run into tired landlords that often in your business, beware that some of your best-term deals will come from them. So keep your eyes open, stay curious and keep learning!
Email us at support@bradsmotherman.com if you have a question you’d like answered on one of the following Tuesdays.
Resources:
- Join The Investor Creator Community https://www.facebook.com/groups/3083532848354005
- Website https://www.bradsmotherman.com
Tuesday May 31, 2022
Tuesday May 31, 2022
This week, we are continuing with another motivator from the Big 5 Series: Inheritance. The process for this one is not easy and requires a lot of patience. In some cases, there are contingencies that are not always in the script, so you need to keep a level head and take time to analyze your best course of action.
What We Cover:
- Deals of the Day
- Emotions involved in inheritance: grief, greed, and guilt
- Helping should be a priority even when buying the house is not guaranteed
- Dealing with multiple owners of the property
- The least understood aspects of the probate proceedings
- If you don’t have state documents in order, get it done asap
When dealing with inheritance, keep in mind that emotions and tensions can run high within a family. The probate process can also get contentious with multiple owners but don’t get lost in the legal process. As soon as you learn how to navigate it, you’ll find yourself at the hands of highly profitable investments.
Email us at support@bradsmotherman.com if you have a question you’d like answered on one of the following Tuesdays.
Resources:
- Join The Investor Creator Community https://www.facebook.com/groups/3083532848354005
- Website https://www.bradsmotherman.com
Tuesday May 24, 2022
Tuesday May 24, 2022
This Tuesday, Tony Woodall and Amanda Cooper discuss rehabs and how to scale from doing two to running sixteen at the time!
What is Covered:
- What the process of house rehab entails
- How to choose and purchase goods and materials when doing multiple rehabs
- The importance of confidently recruiting and running your team for rehabs
- What a new person should know before doing their first rehab
- How many rehabs Amanda is running at the moment and what her favorite ones were
Having Amanda on our team gave us speed and space to move forward. Rehabs are organized chaos, but once you power through your first one, you'll establish systems that can enable you to scale to doing multiple rehabs at the time.
Email us at support@bradsmotherman.com if you have a question you’d like answered on one of the following Tuesdays.
Resources:
- Join The Investor Creator Community https://www.facebook.com/groups/3083532848354005
- Website https://www.bradsmotherman.com
Tuesday May 10, 2022
Tuesday May 10, 2022
Today we are covering another big motivator that a large number of deals comes from, and that's health and safety. It's a broad topic and we will share some of the tough situations we've encountered while closing deals. We will also give some advice on how to navigate your transactions when you run into health and safety as a seller's motivator.
What We Cover:
- Apprentice Spotlight and Deal of the Day
- What health and safety means in the context of closing deals
- Examples of some deals where motivation was health and safety
- How to navigate a seller who might be in abusive situation
- At what point you should reach out for help if you run into a sever health and safety situation
- How to talk to the sellers to find out if there is a health and safety issue
When you are closing deals and something doesn’t seem right, pay attention as you might be called to take action if someone is in a threatening situation. Remember, we're making income as investors, but we are also making impact on people's lives and communities.
Email us at support@bradsmotherman.com if you have a question you’d like answered on one of the following Tuesdays.
Resources:
- Join The Investor Creator Community https://www.facebook.com/groups/3083532848354005
- Website https://www.bradsmotherman.com
Tuesday May 03, 2022
Tuesday May 03, 2022
This week, we are discussing divorce as the big motivator in deals and transactions. It’s a tough and contentious situation to navigate, but you’ll learn about the emotions involved in the process, as well as what the best course of action is and script you need to follow through.
What We Cover:
- Deal of the Day
- Divorce affects every party involved and the house is that last thing that ties it
- The process of unraveling the deed of trust is painful for both parties
- Two emotions you’re dealing with - mistrust and loss of identity
- Why you can’t build rapport with one party to the detriment of the other
- Negotiation starts with your marketing
- Refrain from becoming their counselor, but be able to listen
Divorce is a painful situation affecting everyone in the family, and you must be able to listen and walk through the pain with them. They are motivated sellers, so keep your focus and bear in mind that you are helping them by taking over their problem.
Email us at support@bradsmotherman.com if you have a question you’d like answered on one of the following Tuesdays.
Resources:
- Join The Investor Creator Community https://www.facebook.com/groups/3083532848354005
- Website https://www.bradsmotherman.com
Tuesday Apr 26, 2022
Tuesday Apr 26, 2022
Instead of a Tuesday Morning Coffee episode, which gave us some hard time with the audio recording last week, today I want to invite you to check your commitment.
I'm getting through 75 HARD program. It is a mental toughness program that requires you to commit to doing 5 things every day for 75 days, including workouts, reading non-fiction, drinking a gallon of water, following a nutrition plan and recording your progress.
While I'm about to run for 30 minutes in a thunderstorm, I realize I'm not necessarily in love with the process. But I am in love with the commitment to see this through.
The same goes for business - if you want the outcome you desire in terms of your income and your lifestyle, you have to jump into commitment.
So I challenge you to take some time this week and figure out what commitment means to you. And I'd like to hear back from you!
Email us at support@bradsmotherman.com if you have a question you’d like answered on one of the following Tuesdays.
Resources:
- 75 HARD https://andyfrisella.com/pages/75hard-info
- Join The Investor Creator Community https://www.facebook.com/groups/3083532848354005
- Website https://www.bradsmotherman.com
Tuesday Apr 19, 2022
Tuesday Apr 19, 2022
This Tuesday, we are discussing what scaling looks like and how it happens in real estate investing business. We go over the signs to watch for, and when it’s time to take the next step and experience growth.
What is Covered:
- Deal of the Day
- The organic nature of scaling
- Why growth is exponential and not linear
- How scale begins to happen sooner than you think
- Why being too cost-focused is a bad idea
- How to hire teams who are the right cultural fit
Good things happen to those who prepare. In this business, putting systems and structures in place before they are needed is a wise move. If during the scaling period things escalate to a stress point, it may already be too late because it is already inhibiting your growth. So work smart, keep your focus and always stay curious!
Email us at support@bradsmotherman.com if you have a question you’d like answered on one of the following Tuesdays.
Resources:
- Join The Investor Creator Community https://www.facebook.com/groups/3083532848354005
- Website https://www.bradsmotherman.com