Episode 182:
In this episode of The Mentor Podcast, Ron sits down with Adel Kayati — Ron’s partner, lead acquisitionist, and a mentor with Global Publishing. Adel is hands-on with students (including live seller calls) and actively buying deals alongside Ron. In this episode, Ron and Adel lay out a practical, no-nonsense framework to eliminate the biggest risks in real estate while still doing profitable deals right now.
What you’ll learn about in this episode
- Why you should never personally guarantee debt—and how that single decision protects your credit, assets, and sanity.
- The title-holding structure Ron uses on every deal: one property per land trust, owned by an LLC (which is owned by Ron and his wife)—and why taking title in your personal name is a bad idea.
- Land trusts 101: simple deed + trust agreement, privacy benefits, and where to find the forms and training.
- No-recourse terms deals: buying with wraps, “subject-to,” or lease-purchase—the trust signs, not you; the house is the only collateral; nothing hits your credit.
- The MAO (“mayo”) rule for junkers:
- MAO = ARV × 0.70 − repairs (use 0.80 if ARV > $300k) — and never pay MAO.
- Ron’s rehab rule of thumb: only touch rehabs when ARV ≥ purchase + repairs + ~$100k (≈ $50k profit + $50k carrying/transaction costs).
- Why wholesaling is Ron’s favorite “no-risk” strategy (e.g., $10 earnest money to $20k–$50k checks) — and why it’s a perfect fit for Roth IRA profits.
- FSBO focus vs. MLS grind: why most MLS deals won’t pencil and how Ron filters them fast.
- A simple private-money safety check: don’t borrow more than 65% of ARV on junkers.
- Market-timed tactics: in a sliding market, get conservative on ARV, avoid most rehabs, and prioritize wholesales and terms.
- Terms-deal cash-flow safety:
- Make sure non-refundable option deposit > your total cash out of pocket (down + closing).
- Target ≥5% of price for the deposit; delay first payment until the 3rd month after closing or vacancy, whichever is later.
- Expect near-breakeven or slight negatives on some recent high-rate loans; reserve part of the deposit to cover a year of any shortfall and big items (e.g., A/C).
- Easy lead targets right now: expired listings and low-equity, newer homes (many recent VA loans) in great neighborhoods—often “sell for what you owe” situations.
- Perspective from 44 years in the business: deals exist in every market—boom or crash—if you follow the rules above.
Resources:
- RonsQuickStart.com — Details and dates for Ron’s 4-Day Quick Start event.
- RonLeGrand.com — Additional trainings, tools, and information.
- RonsGoldClub.com — Land Trust training and form libraries (search “land trust”) and the “4 LLCs” lesson (mentioned in the episode).
- Sign up for a Free Mentor Panning Session: https://www.RonLeGrand.com/Plan
- Free Training: www.TheMentorPodcast.com/Terms182
- Get Ron’s $599 Wholesaling course for FREE when you join his Gold Club for ONLY $99 a month! – www.TheMentorPodcast.com/GC182