Guest Speaker: Zach Beach
Former Bartender Hits the Ground Running, Making Over 100 Deals Working For His Father in Law, Real Estate Industry Veteran Chris Prefontaine
Having been in the real estate business for over 7 years, Zach Beach is a powerhouse investor deal maker (with over 100 deals to his credit) working as part of the team with Chris Prefontaine’s PreProperty Solutions. The former bartender studied Management and Marketing at Bay State University, then took that knowledge and expanded it at UMASS Dartmouth to major in Marketing and minor in Finance. Zach’s day to day focus is to help sellers eliminate their pain and/or accomplish a specific goal. He is constantly educating himself to make sure that he can provide the best solutions possible in a multitude of situations. His skills in marketing and finance have allowed him to become an excellent resource for any seller.
What you’ll learn in this episode:
*The role mindset played in his leap of faith to go from guaranteed money as a bartender to join the then-small business launched by Chris Prefontaine and his brother in law Nick Prefontaine.
*PreProperty Solutions focuses on buying properties on terms, based on three primary categories – lease purchase, rent to own and owner financing deals
*Their main focus is to put little or no money down and craft up long terms to create “our three paydays”
*95% of the time, their exit strategy is selling the property through a rent to own program, which generates the “three paydays.” They do this by taking a non-refundable deposit that counts towards the purchase price. The second payday is between the expenses that they have on the house and what they can collect as a monthly payment. #3 is the back end payment or principal pay down, if there’s a mortgage or if it’s owner financing.
*They average about $75,000 per house or per dealer
*Adding up the three paydays: The front end tends to be around $23-25,000. Payday #2 falls in beween $300-350,000 and the back end is about $35,000.
*It takes a tenant buyer 24-36 months to cash out and deliver them their back end – but their terms with the seller are much longer than that
*Why people sell their property on owner financing with little to no cash down.
*The people they work with are those trying to get the most out of their property and have a solid financial situation which gives them the ability to wait for their equity. For some in this position, it’s because this is a second home.
*Owner financing deals are hard to come by. On average they only work with two per year
*Some sellers want to know the back end of the business because the title is staying in their name. Owner financing folks don’t really care because Zach and his team are their buyer.
*Because not all sellers understand the details of owner financing when they are first approached, Zach and his team believe there’s a 100% education process. The exception is when you’re dealing with savvy people who have a lot of experience in real estate. These people understand how money works and how to maximize the return on their investments.
*For typical everyday sellers, they have a seven step process they explain regarding getting the property under contract
*The difference between buying on terms/selling on terms and wholesaling. Zach believes in wholesaling, you’re typically beating someone down in order to get enough spread – and that you’re buying at a low price and selling quickly, resulting in a smaller spread. By contrast, most of his sellers want the most for their house and have the ability to wait. The difference is between $75,000 for the three paydays and $5-10,000 when you wholesale.
*The importance of the follow-up. “The fortune is in the follow up.” The key is multiple conversations and honing in on the scripts
*The three main sources for deals – for sale by owner, expireds and for rent by owners
*Details of what each follow-up call can include, including the right questions to ask to determine if everything is lining up to ensure that this is time well spent and a deal is possible. Or as Zach says, “You had your initial conversation, leads in the funnel now. Now let the funnel do its job.”
*His background as a bartender, and how he uses it to encourage people who don’t have a formal sales background and feel they’re not good on the phone. All communication skills can be learned.
*50-75 percent of that initial phone conversation with a potential seller is scripted, because it’s mostly commonly asked questions
*It’s okay to deviate from the script because at some point you’re dealing with an individual seller’s particular needs, and then figuring out if your options fit best for them. It’s important to offer them multiple options by asking them certain questions, like what they’re looking to net on the property once they sell it.
*Zach’s definition of mindset: Number one, it’s about how you feel about yourself. With mindset comes self-confidence (illustrated by a painting of a goldfish and shark fin above the water). If you want to reach your goals in the future, you have to continuously work on that mindset
*How he overcame his fear of failure and realized how his work as a bartender revealed that he is a people person whose social skills made him a natural people person. He looked at real estate as taking on a brand new adventure
*How he overcomes new fears that pop up on a daily basis.
*The importance of two spiritual/mindset authors/teachers in his life – Bob Proctor and Joe Vitale
*Two other keys to mindset success – watching motivational YouTube videos and daily journaling about the good and bad things in his life
*What Zach loves about the unique “family model” at the core of the success of PreProperty Solutions.
*Why it’s important to figure out what niche fits you best in real estate, and why he’s a big believer in “just taking action”
*How to get your free copy of Zach’s father in law Chris Prefontaine’s Amazon Best Seller “Real Estate on Your Terms: Create Continuous Cash Flow Now, Without Using Your Cash or Credit
Resources:
Smart Real Estate Coach Free Webinar
3 Year, 1 Million $$ Game Plan
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