With almost 40 years of real estate experience under his belt, Bob Zachmeier from NoteCarry really knows the ins and outs of this business. I love getting together and talking with him because he brings a totally new perspective on whatever topic we’re covering. While I love wholesaling lease options, Bob’s current approach has a little bit of “rental flavor” that lets him diversify.
As the market has tightened up in some areas making it harder for new homeowners to purchase, Bob has been able to carry loans via private lenders so that more people can purchase a home. He seeks out retirees who are looking to invest, but who don’t want their money tied up in a 30 year real estate deal.
Bob walks us through one of his latest deals, and opens up on exactly how much he paid for it, how much it was worth, and how much interest his retiree/investor earned from it. He talks about the benefits of using retirees who are hungry for more interest than what they’re earning in the bank and who have a shorter timeline to make money. He emphasizes using private money, but having it professionally serviced, is the key to this arrangement.
There’s always concern about defaults on loans, but Bob breaks down the numbers to show that default rates are incredibly low when you make your own notes. If you’ve made a potential homeowner’s rent cheaper than a mortgage, it gives them terms that they absolutely don’t want to fail on. And even if they do fail, targeting middle income bread-and-butter homes means that you’ll have a home to sell to someone else that’s always in demand.
Because Bob believes that you’ll find more deal partners as you share generously your time, knowledge, and money, he really opened up his business model for us today. If you loved hearing his advice, you can read more in his books:
- A Daily Difference
- Who Needs the Bank?
- Sold On Change!
Listen and learn:
- Bob generously shares the breakdown of his latest deal, giving us exact numbers, including his ARV and ROI percentages.
- We talk about how to find private lenders and why you’d want to use them over a bank.
- With recession talk swirling around, Bob and I discuss real estate strategies that will help you weather the storm by discussing what worked and what didn’t in the last recession.
Mentioned in this episode:
- Review Joe’s podcast, books, or website: reviewjoe.net
- Joe’s Book: REI Secrets
- Get Joe’s other book “Wholesaling Lease Options”: WLO Book
- Bob Zachmeier’s website: NoteCarry
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