Archive for November 2019
The Terry Hale Show Episode 34
Personal Guarantee – No Way
TRANSCRIPTION
This is Terry Hale, I want to shoot this quick little segment. I just had a telephone call, was speaking with this financier who said that he wanted a loan money, he had an attractive rates. At the end of the call, once I talked to him about non-recourse financing, everything changed. I said there’s no such thing as non-recourse financing, that you have to personally guarantee they want you to do something called 1003, which means that you personally signed you give, you know, your bank statements, tax returns everything. And I told him, I said, Look, I get non-recourse money all the time. And the fact is, I’m always searching for more money because I’m always placing capital moving on to the next deal. That conversation ended quickly. So I’m shooting this video to give you the upper hand when you’re speaking with Banks And here’s the key guys avoid banks at all costs, you don’t need them. There’s no need for banks, there’s no need to personally guarantee loans. Everything that we do is seller-financed or we buy all cash. If we buy all cash, we raise the capital to buy it, and someone gets an equity position or returns on their money. All right, everything we do is always going to be non-recourse. So keep in mind, when you’re pursuing projects, don’t worry about your personal credit, your TransUnion, Equifax, Experian, that three-digit number, don’t worry about that three-digit number because that’s for your personal life. That’s for personal business that has nothing to do with pursuing commercial real estate. So I hope you dig this segment. If you do, go ahead and click the link below. And better yet, just go to Terryhale.com. And look forward to engaging again with you here real soon. So remember, avoid banks. All right. Let’s get some business going. Take care.
The Terry Hale Show Episode 33
Increase Your Chances of Success by 95%
TRANSCRIPTION
Hey, this is Terry Hale, I wanted to do this little segment
Talking about how to increase your chances 95%.
Imagine if you could increase your chances of success by 95%.
What would that do for you? And how is that possible?
I mean, is it BS or is it real?
Why are some people highly successful
When other people are struggling along?
And some people just sitting on the sidelines,
Never having any success.
Well, I read this study, and it talked all about accountability.
To be held accountable for something
Means that you commit to it,
And then somebody follows through
And makes sure that you are held 100% responsible
For your actions, not just one time.
I’m talking about over and over again through a set of goals.
So I have six steps.
My six steps are from finding, to pre-screening, to evaluating,
To structuring, to negotiating, and then facilitating the deal.
You see, if I fail to go and try to find something,
Then the next reaction is never going to happen.
See, action causes reaction. I hold myself accountable.
When I do my acquisition mode,
I’m 100% held accountable for my actions,
And I make sure that I stay on my goals.
When I coach folks and mentor people, I do the same thing.
I hold them accountable for their actions, as well.
This increases their chances of success 95%,
That’s how deals come to fruition. I mean, you can go it alone.
You can try to go do it yourself. And chances are,
You’re going to be on the sideline like the rest of them.
Sitting there wondering what step did you not do?
What connection did you not make?
And for that reason, I can show you exactly
How to take it to the next level.
I have a systematic approach
That actually takes people from start to finish.
And that’s what my whole challenge is all about.
Taking people from one step to the next, to the next,
Producing results every step of the way.
I can’t work with everybody,
But the folks that I do choose to work with
And those that choose to work with me,
We have a 95% acceleration.
A 95% chance of success more than the rest.
So I highly encourage you to take action.
Maybe this is not for you.
If you’re having a hard time making ends meet,
If you don’t have capital to invest in yourself,
Then please don’t even bother clicking the link.
But if you do, and you really desire to have success,
You really have the relentlessness for success
And you want to be held accountable.
And you know that having a coach, a mentor,
Somebody on your side, and investing in yourself to get that
Is what you need, what you desire for true success
And you want to build wealth with commercial real estate,
Passive monthly income, generational wealth,
And you want real results.
If this is you, then go ahead and click the link
And I look forward to engaging real soon. Take care.
To learn more strategies and techniques,
Visit https://terryhale.com/
Or go ahead and click the link in this video description
And I look forward to engaging with you, real soon.
The Terry Hale Show Episode 32
New Commercial Concept
TRANSCRIPTION
Hey, this is Terry Hale, I just want to take a few minutes
And talk about something that’s happening
Right here, right now in the office.
Just got off the phone with a broker the other day
In regards to a project that’s a mixed use.
It’s got both retail and 27,000 square feet.
And then, it also has 1.8 acres, total land.
Most people would want to avoid land,
Unless you’re wholesaling it. That’s a technique that
One of these guru guys out there is teaching how to
Take small tracts of land and wholesale it.
That’s small money, that’s pennies.
I’m talking about the big money.
I’m talking about real money, generational wealth.
And when we’re talking generational wealth,
It’s not going to be monthly passive income,
Unless you take the land and you do something to it.
But why most people don’t want to play with land
Is because of the permitting process.
Because then, it’s going to take time to go through permitting.
That means you’re going to incur debt service.
That’s not a good thing when you’re incurring debt service
Because you got to borrow way more capital to make sure
That you can pay the seller finance note.
So instead of doing that technique,
What I’ve come up with,
And this is something that I did not create,
This has been happening. It’s done and done again.
But I’m adapting to this concept, thinking out of the box,
Challenging myself with my techniques and strategies,
Instead of just going and buying a tract of land
Like most people do, and then taking it and permitting it
And going through that process. I’m doing something different.
I’m using my strategies and techniques of seller financing.
Time this property up, follow the numbers here,
I’m following this deal along with a 1.5 million purchase,
Okay, I’m putting down a half a million dollars,
Raised from private capital. I also need an additional 350,000.
That 350 is also going to be added to my purchase price
Because I’m going to be using that capital
As part of the expense to get the property to its highest and best
So I can generate money, all right.
So where does that additional 350?
Where’s that going to be allocated to?
What I’m going to be doing is taking that 27,000 square feet
And demoing out the inside. That’s not me doing demo,
I’m not going to pick up a hammer and go out there
And start slugging away. I hire professionals.
Let them do what they do best. I focus on what I do best.
That’s the phone, that’s the computer.
That’s how I do my business in-office.
Okay, I don’t get dirt under the fingernails.
What I do from there is I’m going to take that empty vanilla box
And I’m going to have a company come in
And for $9 and 50 cents per square feet.
So if you follow the math here, hundred thousand for demo 250,000
To put it to its highest and best use. Voila!
Snap the fingers, several months later, I now have converted
This mixed-use commercial 27,000 square foot box into self-storage.
The numbers, at the end of the day, once it’s rented out,
And I add additional exterior mobile boxes
To the outside of the property, it will be trading
And it will be worth closer to $10 million.
That’s how you go ahead and make money.
Turning something from what it is today
To what it truly could be in the future.
So, I hope you dig this segment,
Thinking out of the box using creative strategies.
All this is going to be done with non-conventional methodology,
No personal credit check and I’m using other people’s money.
So, I hope you dig the segment. I enjoyed talking about it.
And stay tuned for more.
If you like what you heard, go ahead and click the link below or
Just visit my website at https://terryhale.com/
Take care, talk soon.
To learn more strategies and techniques,
Visit https://terryhale.com/
Or go ahead and click the link in this video description.
And I look forward to engaging with you real soon.
The Terry Hale Show Episode 31
Deals From Hard Money Lender’s
TRANSCRIPTION
This is Terry Hale. I want to talk to base real quick
And tell you about this call that I just had five minutes ago.
I was driving down the street, got my headset right here.
I was talking with this guy, turns out he’s a hard money lender.
Now I’ve been teaching this stuff for a long time and
I’ve been telling people that you need to speak with
Hard money lenders. Hard money lenders are people
That are super motivated. They get it.
They’re in the business of loaning money.
They’re not in the business of owning real estate,
Just like a bank. No difference, some hard money lender
That’s sitting in some state somewhere and they loan money
To somebody on a commercial real estate deal.
And a high interest maybe points on the front end,
Points on the back end. And then, at the end of the day
The people default they don’t want the property back.
They’re not property managers. They’re not going to sit there
And want to fly out and and sit on the property or
Deal with hiring management and find a manager
In that particular area. A lot of times these projects
Are even out of their wheelhouse, especially with self storage.
It’s out of most people’s wheelhouse. They don’t even get it.
They don’t even understand how you operate and
Run a self storage facility. Okay, now here it is. Here it is.
A couple different places that you can find these
Hard money lenders one is https://scotsmanguide.com/
That’s S-C-O-T-S-M-A-N-G-U-I-D-E dot com
https://scotsmanguide.com/ There’s a little matrix on there.
When you go to that matrix that will give you a state specific,
It’ll give you property specific. It will give you price points specific.
These hard money lenders loan in these particular areas,
Maybe where you’re interested in picking up a storage facility
Or multifamily. You can contact these people
On a simple pitch, “I reposition property.”
I look for property that’s underperforming,
Property that doesn’t qualify for bank financing.
Would you send me what you guys have in receivership
That you’ve got back, that you don’t want to manage,
That you don’t want to own, that you want to sell?
What do you have for sale? And then at that point,
Ask them to carry the paper. They’re in the business of loaning,
Of course, they’re going to do seller financing for you.
And most hard money is all non-recourse,
Which means there’s no personal guarantee.
So a lot of times, you can factor in any additional offset
For deferred maintenance or any additional repair costs,
And they’ll give you money to move forward and get it done.
One of my clients, Kevin, he bought a multi family for 315,000.
They gave him $60,000 cash back at closing, it had to be.
The proceeds had to be spent solely on the project
Or any part thereof. And he put that money
Into marketing collections. He did deferred maintenance,
And that thing’s kicking off over $4,000 a month cash flow.
Where are you at? Are you making 4000 a month?
How about 40,000 a month? You know, sky’s the limit.
You can do this business. It all comes down to the size
Of the deal that you’re going to be doing.
Locating hard money lenders is not a difficult task.
That’s a great tip go to http://scotsmanguide.com/
Look up the matrix. Check it out. Let me know your thoughts.
Go ahead and click the link below.
To learn more or better yet, go to my website
At https://terryhale.com/
And I look forward to having you my next success story.
Take care. Have a fabulous day.
The Terry Hale Show Episode 30
No to Yes with Seller Financing
TRANSCRIPTION
Hey, this is Terry Hale. Hope you’re doing well.
Just wanted to take a quick few minutes here
And tell you about this project where I absolutely just crushed it.
I was on the phone with this broker that put the seller on.
And at first he was a little hesitant to put me on the line
With the seller because he was thinking maybe
There could be some circumvention, where I’m going to go
Around them and get the deal closed
Without paying his commission or something ridiculous like that.
And it took a little bit of convincing on the front end
To get the broker to put the seller on the phone.
But once I actually had control of the conversation,
I was able to explain all about seller financing.
And originally the seller did not want to finance the deal.
He absolutely 100% said, “No, I don’t want to finance.”
I turned that conversation around within five minutes
And here’s how I did it. All right.
So to make sure, you should take some notes on this
Turning around, when they say ‘No’ about seller financing,
How to turn that around to a ‘Yes.’ First thing I did was
That I explained that the property was an actual liability
Not an asset, meaning it’s not income producing
Enough money to qualify for bank financing, no bank financing.
So at that point, there was only actually two ways to buy it.
One was a lowball, all cash offer, quick, close, no contingency,
Everything that the brokers want is all cash sale,
Except they didn’t like my price point.
Because my price point, it was quite considerably less
Than what they were asking. They were starting out asking 1.695
And I told them, “Hey, if I’m going to be a cash player,
I’m going to be on a 10 cap formula.”
That property was producing exactly $93,000.
I was a $930,000 player. Obviously, we were pretty far off
On the price point. So how did I make it all come together
And really make sense so we can make dollars, pun intended.
This is the way I did it. I explained that
Because it does not qualify for bank financing.
The only other way for me to go move forward
And purchase the deal is if the seller carry paper,
And the seller said, “Look, I don’t want to carry paper.
That’s not something I’m interested in.”
And I said, “Look, if I were to come in and even cash you out
At your asking price, you’re going to have to pay
Massive amounts in capital gains tax.”
The guy started nudging on his ear a little bit
And he was interested to hear more.
I explained that the deposit I put down, he will have to pay
Taxes on that but he’s going to also be receiving
Monthly passive income for seven years
Because that was the timeline that I negotiated.
Of course, I came up on my purchase price, I paid that premium.
I locked it down at a 1.395 offer, so he took a $300,000 haircut.
But in order to get that deal done, that’s exactly what it took.
It took for me to come up off of my actual 10 cap,
Normal acquisition methodology to pay a little bit more
For the premium to have him carry the paper for seven years.
But here’s the fact I get appreciation, I get depreciation
Plus, I get cash flow on that deal after I get it operating
At its highest and best use, close to market occupancy.
So if you dig everything that I’m saying
And you understand the true value of these properties,
By the way, that thing is sitting currently today
At 30% economic occupancy, it’s a self storage deal, 360 units.
When that thing comes from 30% of the market occupancy
At 95 to 98%, that property will be worth
A heck of a lot more than 1.695.
And that’s how we make money in this business.
Plus, I have a few other tricks that I do like canceling management,
Automating gate systems and things of that nature,
Which adds an additional $35,000 in income yearly
Without adding additional expense. So if you dig it,
Go ahead and click the link below. Come and check it out.
Check out more. Take advantage of my training
That I have available and my upcoming event
That will be happening shortly too.
All right, or you can go to my website https://terryhale.com/
And I look forward to engaging with you again here real soon.
Take care.
To learn more strategies and techniques,
Visit Terry https://terryhale.com/
Or go ahead and click the link in this video description.
And I look forward to engaging with you real soon.
The Terry Hale Show Episode 29
Deferment Payment
TRANSCRIPTION
Hey, this is Terry Hale, I want to take a quick minute here and
Chat with you about a strategy that’s used to make
A no payment, no interest structure. So now if you were
To just ask the seller straight out,
“Hey, Mr. seller, would you do no payment, no interest?”
Chances are he’s gonna laugh at you and
Maybe hang up on you.
But here’s how we orchestrate the right negotiation
To get no payment, no infrastructure.
What we do is we call it a deferment of payment.
So when we come in with a down payment,
What we’re doing is we’re creating a seller finance note and
Second position, that seller financing will have a timeline on it,
That’s the length of the time they’re willing to carry along
With an interest rate, that interest rate could be
A couple points about prime, maybe you’re sitting at
Four or 5% interest, or it could be high interest
More like hard money at 10% 12%.
Okay, it all comes down to your negotiation technique
On how you can persuade them to do it.
What are you working towards as far as a mutual benefit?
What’s the motivation of the seller, all these things
Truly come into play. But one of the techniques
That I like to use is a deferment of payment.
So I can explain to them clearly. And of course,
If the property that meets the exact criteria that I’m speaking of,
Which is being highly vacant, if the property is highly vacant,
Then you can say to them, “Look, it does not qualify
For bank financing. The only way we can do the deal
Is either an all cash offer”, which they’re not going to want to
Accept your cash offer 90% of the time. They’re going to
Want more money for it. If there’s a broker involved.
They’re incentivized with more money, a higher price point,
Meaning a sales point because they’re working on commission
And they get paid on what the property sells for.
So everybody wants a higher price. It makes sense.
You probably want a lower price but there’s an old saying,
And my mentor told it to me a long time ago.
He said, “Look, I’ll gladly go ahead and pay your price.
If you give me my terms.” If we buy on the ‘as is’ value,
Where is as is in its current state and its current condition.
And we’re buying for say 30 to 50 cents on the dollar,
We’re able to increase the value 50%. We’re going to
Double our money or even triple our money.
So what comes down to the deferment of payment and
How that actually orchestrates is this,
We let them know, ‘Look, we need some time to get in,
We’re willing to put our skin in the game.
We’re willing to put down 10 or 20% or whatever
You negotiate your down payment.
But we cannot also incur negative debt service.
If the property is not break even after we have our debt stack.
We have debt stack. We have senior debt that we’re wrapping.
We have a seller finance note. We, maybe, borrow capital.
We have to pay money. All this is debt stack.
If property is not going to be producing enough money
To take care of its debt. The only way to make the deal work
Is to have the seller continue to service the debt
On the property for a period of time while we turn it around.
We’re not talking about two years of deferment.
We’re talking 6-9-12 months that will give you
The opportunity to get in super …, not create debt service,
Be able to take the property, start to reposition it.
Make it cash flow. And that way you can create
Monthly passive income, financial security,
Create generational wealth and get the deal done.
So guys, obviously I have 20 years experience.
I know this business. I’ve been an active investor for 20 years,
And I’ve been teaching for 15 years. If you dig it.
You like what you’re watching. You like what you’re hearing.
Go ahead and click the link and learn more or better yet,
Just go to https://terryhale.com/ and check it out.
All right, I look forward to engaging with you guys real soon
And have a fabulous day. Take care.
Learn more strategies and techniques, visit https://terryhale.com/
Or go ahead and click the link in this video description.
And I look forward to engaging with you real soon.