Real Estate Investing Minus the Bank: Chris Prefontaine Teaches the Three Payday System with Jay Conner

Welcome to this week's episode, where we dive into the world of creative financing in real estate with Chris Prefontaine. Chris is a seasoned real estate investor and coach who has trademarked the innovative "3-Payday System." This model transforms conventional real estate transactions into avenues for multiple streams of income, all without the hassle of traditional bank financing.

The 3-Payday System: A Game Changer

The 3-Payday System, trademarked by Chris Prefontaine, is a unique approach to real estate investing that has revolutionized the field. By leveraging owner financing, lease purchases, and subject-to-deals, investors can generate substantial and reliable income streams. Prefontaine’s method ensures that you're leveraging creative financing without risking personal credit or hefty bank loans.

Payday 1: Upfront Deposit

The first payday comes from obtaining an upfront deposit from buyers who are prepared to purchase but cannot qualify for a traditional mortgage. These "deserved buyers" bring cash to the table, providing the initial influx of funds.

Payday 2: Monthly Cash Flow

The second payday is the steady monthly cash flow generated from the difference between your payment to the seller and what you charge the tenant-buyer. This ongoing income stream ensures consistent revenue throughout the term of the deal.

Payday 3: Future Profit

The final payday occurs at the end of the term, with benefits seen from principal paydown and property appreciation. This crucial component makes the 3-Payday System exceptionally lucrative over time.

Effective Marketing for Motivated Sellers

One of the most significant challenges in real estate is finding motivated sellers. Prefontaine uses a combination of expired listings and targeted marketing strategies to find leads.

Utilizing Expired Listings

Non-licensed investors can access expired listings through services like My Plus Leads. These leads are thoroughly vetted by trained virtual assistants (VAs), ensuring that only the most promising prospects move forward.

Direct Outreach and Problem-Solving

Prefontaine's VAs focus on direct outreach to these expired listings, asking key questions to gauge the seller's motivation. They ask where the seller was planning to go had the property sold and what the repercussions are if it doesn’t sell again. This strategy uncovers the seller's real motivation and allows the investor to present viable solutions, such as lease purchases or owner financing.

Financing Strategies: Versatility in Action

One of the remarkable aspects of Prefontaine’s system is its versatility. Whether it's owner financing, lease purchasing, or subject-to deals, his approach adapts to various scenarios, including commercial properties.

Owner Financing

Approximately 99% of Prefontaine’s deals involve owner financing with sellers who owe nothing on their properties. These transactions offer lucrative principal-only monthly payments, ensuring significant equity build-up over time.

Lease Purchases

Lease purchase deals make it easy for new investors to step into the market with minimal upfront costs. These agreements allow control over a property for as little as $10, providing ample opportunities for profit through structured agreements.

Subject-To Deals

In subject-to deals, the mortgage remains in the seller’s name while the buyer makes the payments. This method is particularly beneficial for sellers needing financial relief, especially those going through life changes like divorce or dealing with the aftermath of COVID-19.

Success Stories and Practical Implementation

Chris Prefontaine emphasizes the importance of practical experience and highlights some of his most successful deals to illustrate how the system works.

Commercial Proper