Episode 193:
In this episode of The Mentor Podcast, the roles are reversed. Adel Kayati, Ron’s acquisitionist, group-coaching lead, and mentor interviews Ron LeGrand using the questions students ask most.
Ron explains why you don’t need money or credit to invest, how he’d start over knowing what he knows now, and the difference between the “pretty house” and “ugly house” businesses. The two also role-play a live seller call, showing the three screening questions Ron uses before he agrees to go see a house.
Topics Discussed:
- You don’t need money or credit. Ron started at 35 with no money and no credit and collected his first $3,000 wholesale check just three weeks after attending a two-day seminar in 1982.
- Stay out of the bank. Ron has bought more than 3,000 houses without ever applying for a loan or guaranteeing debt. “We don’t go in banks” on Planet Ron.
- Wholesaling pays cash; terms build wealth. Wholesaling is the easiest way to start, but terms deals can bring an upfront deposit, monthly cash flow, loan paydown, appreciation, and a big check on the back end.
- Pretty houses vs. ugly houses. Pretty houses outnumber junkers 25 to 1. Ron buys them “subject to” the existing loan and places a lease-option tenant buyer who pays a non-refundable option deposit (NROD) of at least 5% and handles the repairs.
- Ugly houses are wholesaled or rehabbed. Ron shares examples of $52,000 and $37,000 checks earned simply by assigning the contract. He finds those deals from FSBOs—not the MLS.
- Three questions before any appointment: What’s the least you’d take? How close to nothing down can you get? Are you okay with me making the payments until you’re cashed out?
- The money is in the follow-up. Most deals come from follow-up, and the DREAMS system automates the process.
- Prospects vs. suspects. A prospect gives you the answers you need. Suspects are the other 95%. Master two skills—finding leads and making the closing call—and the rest gets easier.
- Get trained before you start. Skipping training, Ron says, “is like trying to get to college and skip high school.”
Resources:
- Training, tools, and information to help you get started and keep moving forward — RonLeGrand.com
- Learn Ron’s proven system for buying houses without using your cash or credit at the Quick Start Real Estate School
- Get Ron’s free book and learn the foundational strategies every real estate investor needs — Claim Your Free Book
- Our NEW Closers Club membership with Gold Club, DREAMS (CRM), Group Coaching, and more – Ron LeGrand’s Closers Club