The SubTo Success Playbook: Mastering Creative Real Estate Finance
May 1, 2024
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Real estate investor Jamal Gibbs discusses innovative strategies like 'SubTo' and seller finance deals. He emphasizes the power of creative finance, building multiple streams of income, and building community in real estate investing. Gibbs shares insights on emotional resilience, positive mindset, and practical advice for new investors.
Utilize 'SubTo' and seller finance strategies to boost deal conversion rates in real estate wholesaling.
Embrace creative finance to overcome financial setbacks, generate passive income, and build a lucrative portfolio.
Collaborate with competitors in real estate for mutual success, fostering partnerships and avoiding unnecessary competition.
Deep dives
Utilizing Subject To and Seller Finance for Wholesalers
Wholesalers are advised to delve into subject to and seller finance strategies to enhance their deal conversion rates. By focusing on these methods, wholesalers can triple their conversion rates from existing lead flows, facilitating the acquisition of contracts through creative finance. Assigning subject to and seller finance deals to experienced investors enables wholesalers to earn significant assignment fees while gaining valuable insights into these alternative investment approaches.
Overcoming Financial Setbacks through Creative Finance
The podcast highlights the story of a real estate investor who faced a million-dollar loss from a client's bankruptcy, prompting a shift towards creative finance methods. By engaging in subject to and seller finance deals, the investor was able to build a lucrative portfolio without substantial upfront costs. Through strategic implementation of creative finance, individuals can mitigate tax burdens, generate passive income, and navigate financial setbacks effectively.
Building Wealth and Community Through Creative Finance
The discussion emphasizes the potential of subject to and seller finance strategies in building long-term wealth and community support within the real estate investing landscape. By leveraging these techniques, investors can not only secure profitable deals but also foster a robust network of industry advisors and collaborators. Through sharing experiences, providing value, and embracing challenges, individuals can create sustainable financial success and genuine connections in the real estate industry.
Utilizing Charity and Tax Benefits
By donating properties to a charity instead of paying oneself a management fee, the speaker explains how the charity can generate tax-free cash flow, which can then be lent to a whole life insurance policy for growth. This strategy creates a tax-free compound growth cycle, leading to significant financial benefits. Additionally, the speaker emphasizes the importance of earning pre-tax dollars, donating properties to the charity, and leveraging the tax-free cash flow from the charity to grow family wealth.
Collaborating with Competition in Real Estate
The podcast discusses the speaker's collaboration with a competitor in real estate, highlighting how they work together on deals instead of bidding against each other. This collaboration approach emphasizes building mutually beneficial relationships and avoiding unnecessary competition. The speaker shares insights on how collaborating with competitors can lead to successful joint projects, such as fix-and-flip deals, and how opposing personalities can strengthen partnerships, ultimately promoting growth and success in the real estate industry.
Welcome to a new episode of Get Creative. In this episode, I joined Jamal Gibbs on The Deal Pro Podcast. We talked about starting from ground zero, and building a great portfolio using innovative strategies like 'SubTo' and seller finance deals. Tune in for a deep dive into real estate investing that could change the way you approach the market.
Highlights
“I'm just a normal dude who figured out a lot of strategies that had been taught for over 100 years and just simply put them to action."
"The secret sauce is turning this into a fun game every single day that you get to hang out with your buddies because now your buddies are also real estate investors."
“Giving people free game; I used to do this thing where I'd go to a Circle K and the first three people to get in my Prius are going to five buy appointments and a private lender meeting all today."
Timestamps:
00:00 - The Power of Creative Finance
04:52 - Overcoming Adversity in Business
09:09 - Emotional Resilience and Positive Mindset
10:40 - The Reality of Real Estate Investing
15:36 - Discussing the 'Subject-To' Strategy
19:52 - From Construction to Full-time Investor
27:43 - Advice for New Investors on Creative Financing
30:12 - Building Multiple Streams of Income
55:55 - Building Community in Real Estate Investing
