hi it's lou and welcome for another installment of our tuesday tips tricks and techniques and uh we have some great stuff to tell you about mortgage defaults they are running rampant [Music] well welcome welcome i hope you're having a fantastic tuesday and a fantastic week and i tell you what it is really exciting to be in this business at this time whenever there's turmoil whenever there's upset whenever there's breakdown whenever there's concern you can look for opportunity and there's big opportunity coming our way well we like to start with the winds of the week and there's definitely been some wins this over this past week since i met with you last and we had our series on real estate being the ideal investment well wins of the week are that we've had two count on two con properties go under contract and pretty pretty good contracts one on a duplex and one on a single family home uh with a developer who wants to come in and do some interesting things to that property so we'll see that's coming up and uh you know as with anything in life during this due diligence period things happen so the uh one thing that happened was they had the termite inspection and they found termites uh oh well there's a surprise right i think they get actually bring it with them but it's a joke of course termite inspectors don't bring termites with them but it's just fun and so they did find some termites we're gonna have to deal with that and then the other is uh that uh the appraisal came in a little bit lower than the contract price but the people who are buying are putting a very sizable down payment and they said we're not worried about the appraisal because we've got enough down payment coming in that it's going to cover it and the lender is not going to be concerned about the loan that they're making so we're excited about that and we'll resolve the other issues and keep moving on that and look for opportunity right now there's lots and lots of opportunity coming one of the things that happened over the last week was just a wholesaler which by the way when you own property the wholesalers are after you like nobody's business trying to get you to sell property and sure enough they did exactly that they came after me and i sent a wholesaler to look at a property so yeah it's just fun that uh when you've got properties that you can send people to you can always see what kind of offer they're making because right now there are some crazy offers being made i'm just saying and it might be to your best benefit to let some of them go right now and let some cash come in the door to be ready for the downturn which is coming and that was my second part of the of the training today of course we're always open for questions so we encourage you to put in the questions box any questions you might have on real estate on buying on holding real estate property management lease options owner financing the path to home ownership certified affordable housing provider renovations trusts land trust personal property trusts these are things that i've been doing for over 40 years of being in this business of buying holding and selling property so you have an opportunity to ask me anything you want to ask me today while we're together but i thought it would be fun for you to look at some of the trends that are occurring in today's market and uh know that these are some ear markers for what's coming up so i'm gonna show you some slides on some current statistics and let you be the judge on whether you think that's an opportunity or not all right so i'm gonna share that screen share screen share screen somehow i cut it off instead of cutting it on but that's okay you unsure instead of shared loot so just go maybe i'm not seeing it and i think it's coming through all right shall i go ahead and pull up the powerpoint again yeah there we go okay so i'm going to stop sharing and then reshare uh yeah all right so bring up the powerpoint then share the screen share the powerpoint and then go full screen just doesn't seem to be showing up on my side scott like it was do you have the powerpoint open i do then you just hit the share button share screen go to window look for powerpoint click on the powerpoint then click share all righty there we go all right let's see if that works there we go how about that do you see that yep there you go sir so at our uh online world welcome to technology right so new mindset is new result and so getting into the mindset of this new market that we're going into take a look at some of these statistics that will hearken back to the days of old the last downturn and if you'll see here over on 2010 this is mortgage delinquency rates in the united states from 2000 to the fourth quarter of 2020.
Now i look over here at 2 000 that was 4.4 now we go to 2010 it went to 9.3 mortgage delinquency and then as you can see 2012 2013 14 15 16. around 4.4 percent in 2018 and pretty much uh stabilized until it starts going up again and that's where we are right now so look over here it was 9.3 percent in 2010 when the big bulk of the crash occurred and sure enough we have been hovering around eight percent right now so as we look at the crystal ball of what's happening and we look at them kicking the can down the road as they do we see things like this so sure enough here's mortgage delinquency rate and unemployment rate seasonally adjusted and look at this you're looking at way back here in 1979 comparing unemployment to the mortgage delinquency rate here's what you see you see that there's kind of a big distinction of difference in the earlier years in the 80s but then it started to align around 2000 where unemployment and delinquency was very much related uh and as you can see here in 2020 2021 here we are at six point three eight percent of uh unemployment and look at here we're at six point one seven percent of delinquency so there's a very big correlation on unemployment now there's not a real good reason for people to be unemployed right now because there's so many jobs available however the government is competing with the employers out there in the world that need employees because the government has been subsidizing uh people's income so as a result they are really motivated to go out there and go to work but it could be causing some of this mortgage delinquency that's going on now let's take a look at this fha mortgage delinquency and this is the percent of fha mortgages 30 days or more delinquent and as you can see this is a month over month back in july 2019 before the covid and all that we were below 11 and after covet hit and con remaining consistent to now we're between 17 and 18 delinquency in fha now let me tell you why that's a big deal because i've been teaching my students for years to buy property off of the hud home store and that means that hud has recaptured those properties from the lenders they kicked in the insurance that's the that's what fha is for is for ensuring the mortgages the difference between the 80 percent and the 97 percent that hud allows so that 17 differential is an insurance policy provided by the government to the lenders that are lending on these various houses and to these people well sure enough people when they go delinquent then they come back to the government the lenders do and they say here's your collateral give us our money we're kicking in the insurance so the government takes those properties back now here's what's big is since the moratorium since the eviction moratorium since the foreclosure moratorium of course what's been happening is people are hanging out in these houses and they are not making payments and you can see 18 between 17 and 18 right now in delinquency what does that mean that means that a whole lot of people are way far behind and that means a huge incredible backlog of fha homes so what we'll see is when fha does go ahead and foreclose on these properties and they do go ahead and evict these folks which could be a year down the road it could be significantly down the road however it's important to note this because that means there's a lot of inventory coming and whenever there's a dearth or a huge drop of inventory onto the marketplace what does that do that drives prices down that gives us huge opportunity coming our way and here's another one to take a look at the 10 metros most threatened by fha delinquency rates and what do we see right here in atlanta where i'm located over 50 000 delinquent loans over 20 of the loans in the marketplace that are fha backed loans are delinquent 14.5 are serious delinquent and uh the share of the overall market by fha is 21 of the market so as you see oh here in the houston area that's 19.
Excuse me 15.9 percent are serious delinquent uh chicago 14.9 percent dallas 12.9 percent washington arlington d.c the dmv area 15.7 percent we've got riverside san bernardino california 11.9 delinquency california yeah i said california look at that and then we got in adjoining area of the dmv in maryland 14.1 you've got san antonio texas now this is three texas cities now large metro areas 13 delinquency up and then here comes florida orlando 13.8 percent tampa st petersburg 11.9 so that means some inventory coming in certain markets in the country and it's something that you definitely want to watch as we look forward to the new market coming now so people ask me does that mean lou that you're not buying property no that doesn't mean that that means listen go back to what i teach you about the house monster the house monster is find your buyer before you buy if you've got a buyer they've got a down payment they can afford the monthly you've got no reason not to buy a property for them that you can buy right and buy cheap like i teach so we've got that coming for you and know that hey we've got some opportunity coming and this is the market this is the opportunity that's coming your way so i i teach you about the target market and all the other good stuff in fact i'm going to be doing some of this at the upcoming millionaire jumpstart so we're going to be looking forward to definitely helping you in your overall strategy in your real estate business coming up in in the new uh opportunity that we've got and i want to remind you that you can ask questions so that's what we're here for to give you the opportunity to advance your real estate business while we're together hopefully that was some eye openers for you about the numbers that are happening out there right now now is the time to get educated now is the time to get inspired now is the time to get ready for the upcoming market i've got good news for you we've got an upcoming event for that now this upcoming event is coming next weekend not this coming weekend but the following weekend we're going to be in pittsburgh pennsylvania and we are so excited about that first of all it's a beautiful city there's so much to see there secondly there are some fantastic people there we've got a number of our certified affordable housing providers in the pittsburgh area we're so excited to be seeing them we're bringing our game to them instead of them having to come to us and we're inviting all of you to come and join us as well now this is a millionaire jumpstart this is a three-day event and this is where i cover our business model from soup to nuts with a heavy dose towards buying buying right and buying cheap buying the way we do making the presentation the cost to sell worksheet and the unique ways that we buy and how we raise our money from private money sources not going to banks not qualifying for loans teaching you how the seller can be the bank on the purchase of the property and then going through that cost to sell worksheet with your seller to show them how you can pay really good for their property when they are the bank so you can make them a cash offer you can make them a finance offer in fact i'm going to teach you how to make at least three offers i'm going to teach you the automated way to have your business operate 24 7 365.
I'm going to teach you about holding properties long term and some some techniques and tricks that we use to generate about 25 additional profit centers over and above what a traditional landlord gets and all being of service to our clients so bringing more service to the table for the clients brings more money to your pocket more income more residual income which i'm a big believer in residual income if you love the idea of having a residual income business that pays you for the rest of your life then you definitely want to get to millionaire jumpstart and oh by the way i'm going to be teaching you about trusts the profits the protection the privacy and the probate avoidance that comes with trusts land trusts and personal property trusts i happen to think they're one of the very best entities on the planet i do believe that trusts are the best entity on the planet and it's something that most people don't know about including attorneys and a lot of financial planners as well so we encourage you to come and learn it directly learn it so that you can implement it now one of the great things that i'm going to be giving you is a marvelous incredible manual that is chock full of some of my best documents and forms i'm known as the forms guy so definitely you're going to be getting some of my best stuff and we're going to be going through this together in class now go to millionairejumpstart.com for the special price the special offer that we're giving you i want to encourage you to become a vip the vips get the best seating and they get a whole bunch of goodies including dinner with lou one night where i'm gonna take all the group of vips to dinner and there's a special certificate in there for a one-on-one with good old lou at any time you choose before the event during the event after the event any time that you got a deal in the pipeline and you say wonder what lou would do you got a certificate you can use to take advantage of that now that's 500 value right there uh in in that half an hour so just know that our time is very valuable and we've been able to help a lot of people in those private consultations so definitely take advantage of the vip and we said we got two offers we've got the vip seating and we've got the general admission seating anywhere from 99 to 496 depending on what your budget is and what you'd like to do we would love to see you live and in person at the event we're going to be there why shouldn't you you're definitely going to be there in the midst of some really great and powerful people i know personally several multi-millionaires that will be there you will be meeting them they have built businesses using the street smart system they are coming back for a recharge a reminder a refresher and you're going to be able to meet them live and in person so definitely get there in person if you possibly can and that's going to be august 27 28 29 in pittsburgh pennsylvania so i am looking forward to seeing you personally there hopefully you can take advantage of that well i think scott pulled up the wrong one because that's the vegas event that's already passed uh scott you got it got to get your act together there man uh you're putting up the wrong thing so no the event that's coming up is pittsburgh pennsylvania and that is august 27 28 and 29.
Now let's see here what else did i want to do i wanted to cover some questions that you have for your real estate business and maybe some questions about the trends that i see and where my crystal ball leads us as we go forward in our journey on real estate buying right buying cheap yeah sorry about that lou i didn't realize i had the place on that particular video and um so yeah pittsburgh pennsylvania helga had an interesting question should should you be saving your money for the fall in the prices or should we be going uh full steam ahead right now helga that's a great question and definitely uh the idea is not to get stopped not to stop and wait the idea is to use your house monster to bring in customers they come in non-stop it's one of the reasons i created the house monster because back in the last downturn when everything crashed and burned i was left with a dozen properties that i had bought right i had bought cheap i had fixed them up beautifully we had them on the market people were raising their hand they were putting contracts in they said i want to buy i want to buy i want to buy and the bank said no no no we're closed today we're not giving any money today we're not approving any mortgages now so all of a sudden i got stuck with those properties well i flipped the script and started offering those on my path to home ownership program and that was the game changer for us so definitely the game changer is to find your buyer before you buy so as a result of already having a customer you already know they have down payment money that you know what they can afford on a monthly basis you know what their credit looks like you know what kind of program you can offer to them now we can go about finding and buying a property for that person literally as a principal we purchased the property and we put our customer into the property now that we have the the best of both worlds right they don't care how much money you're making on the deal they care if they can afford it so your job is to get that customer your job is then to go buy a house for them and we don't have to wait for the downturn in the market because there's deals out there all the time and that's one of the things that i teach you at millionaire jumpstart is we literally have a presentation process that we do with our customers and in fact one of the things that i teach you at jumpstart is that we have this magical thing called a cost to sell worksheet now this cost to sell worksheet this is what we do with our customer so our customer sees exactly and in fact participates in coming up with the bottom line offer price on the property so when we come up with this bottom line offer the seller sees exactly how we got there if that number works for them great we buy the property and if that number does not work for them great we have another offer we can make and so as a result of what we do and how we do it we're able to justify a price and we're also able to justify an increase in our offer with the seller being a participant in the deal so i'm going to be teaching in fact this is one of the exercises that we do in class at millionaire jumpstart we're actually going to be filling this out together so you'll see exactly how to do that when you're live and in person with a seller great question thank you we've had a few people ask is if we get started now then what you're saying is when the uh all these foreclosures and everything starts happening we're gonna be prepared yeah exactly right we're gonna you know i i don't i i called it flattening the real estate curve for a while there because they were talking about we're going to shut the whole country down and flatten the curve on all these people coming into the hospital and they just never woke back up but our approach to the business is flattening the real estate curve so i really don't care when or if the market crashes that's really not a concern to me why because i do things differently i go find instead of having an inventory of houses i have an inventory of customers that's the key an inventory of customers that we serve and while we're serving those folks we're finding a property that fits with exactly their situation and there's a profit in there and there's safety in there so regardless of what the market does we've already got a safe way that we can earn money and not have to worry about when or if the market crashes awesome lou so that's the end of the questions that we've got um great uh do you want to talk maybe about some of the people that have come to a millionaire jumpstart and the successes that they've had well you know we've had some great successes this past sunday night we had a case study and every few weeks i select one of our students and that has told me about deals that they've worked recently and we have a case study so we had a couple from houston texas we had lily and eric and they shared with us some amazing things that are happening in their world and a couple of deals that have happened very recently but it was so cool because one of the houses was a great example of how our system works where they already had their buyer lined up and then they found a house they had been working on this house for quite some time and the deal finally came through and they're making about 80 000 on that deal so just uh excuse me sixty thousand dollars on that deal it's a huge nice markup on that and they already had a customer to go into that property and then another example they gave was a mobile home that they found using their marketing and the power of connectivity in our path to home ownership plan they were actually able to resource and find a property that they could buy really cheap it was a mobile home the people paid six thousand dollars for it and they were able to buy that property for fifteen thousand dollars they actually chose to go ahead and relocate it to texas to a park that was close to them and so they spent about another ten thousand dollars relocating it well still they only have 25 grand in it and they were able to sell it to their new buyer for a hundred and fifty thousand dollars so there's a huge markup in that deal and you know that's the key is finding buyers that can afford what you've got and they're and they've got an option to buy that property at some time in the future so everything is great for the buyer as well because they've got an opportunity to improve their lives in an affordable way not setting people up for failure but setting people up for success so that was a great example of a traditional single-family home as well as a mobile home and how the path to home ownership works on all of those and they gave a great uh story on that so those of you who are licensee of the street smart system we have that available for your in your archive of the sunday night calls on your replay web class link and so as a result you'll be able to go there and listen to that one and there's a bunch of them there from different folks that are doing exactly what i teach how to do and many of them have now become millionaires and even multi-millionaires because of following the system following the system the way the system is designed to go of course you have to hear it a few times to to really adopt it and understand it fully so i i commend eric and lily because they've only been with us for a year and a half he shared only a year and a half and they have now done 15 deals so almost a house a month since they joined us and been making marvelous markups on every one of the properties as well as building an amazing cash flow so imagine starting and a year and a half from now having 15 different cash flowing properties every month pumping in that residual income and having some great assets and equity to rely on for retirement purposes so just think about that as you're setting yourself up for your future and you're thinking about what you're going to do not this coming weekend but the weekend after that come to millionaire jumpstart because that's exactly where they got started with me just a year and a half ago all right so time to wrap it up lou any last words of wisdom well i tell you now is such a great time to be in this business i you may have heard me say that before but it's just so true everywhere i look i see opportunity janice was telling me that one of the properties that we have on our path to home ownership program she put it up on one of our members actually that's one of our path to homeownership members actually fell through on being able to take that property she put it out on the facebook marketplace with our program oh my gosh she got 41 leads in within hours within hours of putting it out there so it's just amazing how much is available out there now and how hot the market is how much people are predisposed to our transactions what we do i've told you before that we are not doing any rentals right now we're only doing rent to own owner finance or cash sale and sure enough there's plenty of customers out there with significant down payments much better customer right when they've got more skin in the game so it's something i encourage all of you to take a look at in your own portfolios that there's an opportunity that exists that you may not be taking advantage of so definitely i would get brushed up on those techniques my volume 9 lease options my volume 10 owner financing part of the overall strategy that we do on our path to home ownership definitely get brushed up on those things and start offering your properties that way but don't wait go ahead and get customers in the pipeline now even if you don't have any vacancies because those customers can cause you to go out there and find some more properties when you've got a nice customer with a nice fat down payment we're working with one right now with twenty thousand dollars down another one with thirty thousand dollars down another one with believe it or not two hundred thousand dollars down so we we've got there's lots of people out there that do have down payment money that cannot qualify for loans at a traditional lender they do have money they do have income but the traditional lenders will not serve them so that's a huge opportunity for each and every one of you to take advantage of so that that would be my advice of the week is get out there and take advantage of this great market that we are in right now yeah baby yeah baby [Music] you