Episode 195:
In this episode of The Mentor Podcast, Adel Kayati continues his interview with Ron LeGrand, going back to the night that changed everything: Ron couldn’t afford a washing machine and decided he was done just getting by. Ron and Adel cover what new investors must avoid, why this business works in every city, how little risk and overhead it takes, and when it actually makes sense to quit your job. They also share a recent student win that shows the pretty house and ugly house businesses working side by side.
Topics Discussed:
- Ron’s turning point. In 1982 he couldn’t afford a new washing machine, borrowed $450 for a two-day seminar, did his first wholesale deal three weeks later, and bought 23 houses in his first six months.
- Never guarantee debt. It’s the number one mistake to avoid. There’s no need to on single-family houses.
- Be careful who you learn from. Much of what’s taught online is unrealistic or even illegal, and learning only part of the business just leaves you confused.
- It works where you live. Every city has people who want to sell houses and people who want to buy them.
- Almost no risk. On a terms deal, only your closing costs (about $3K) are at risk until the tenant buyer moves in, and by then you’ve made many times that back.
- Ten nice houses can make you wealthy. Target homes above your area’s median price. When tenant buyers cash out, “exchange” into more owner-financed houses to multiply your assets tax-deferred.
- Don’t quit your job yet. Wait until real estate income replaces your paycheck, or financial pressure will push you into bad decisions.
- It’s a part-time business. Adel spends about an hour or two a day, mostly 10 to 20 phone calls, with a VA handling the rest.
- Low overhead, big checks. PatLive (about $200 a month), a VA, and DREAMS versus Adel’s old restaurant, which needed $100K a month just to break even. “One real estate deal” beat a year in the restaurant business.
- First check: give yourself about 60 to 90 days, and wholesaling is the fastest route.
- Student win: Lucky found a tenant buyer at his first open house on a house bought for $185K and sold for $199,900 with about $300 a month in cash flow. He also has an ugly house closing with a $20K assignment fee.
- What successful investors do: delegate the busywork, focus on finding deals and handling the closing call, and take action instead of overthinking.
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, DREAMS (CRM), CMA Tool, 100s of lesson videos and more – Ron LeGrand’s Closers Club