Zachary Beach  0:00  

As in real estate in general, it’s all comes down to the motivation. Or really it comes down to if you can provide that seller with the right solution like meaning, if. So, selling their property on a lease purchase or selling an owner financing is going to solve their problem then they have a deal. Most sellers are going to say we have a script, it says 99% of the people that we buy for one a traditional sale. So, of course, most people you talk to are going to want to sell traditionally, they’re going to want to sell traditionally, they’re gonna want to close fast, you’re gonna want all cash and make it as easy as possible. But the truth is, it’s it’s not always possible. So that’s when our solutions come into play, or our types of options that we buy from.

Intro  0:44  

 Welcome to CREPN Radio for influential commercial real estate professionals who work with investors, buyers and sellers of commercial real estate coast to coast.  Whether you’re an investor broker, lender, property manager, attorney or accountant, we’re here to learn from the experts. 

J Darrin Gross  1:04  

Welcome to Commercial Real Estate Pro Networks, CREPN Radio. Thanks for joining us. My name is J. Darrin Gross. This is the podcast focused on commercial real estate investment and risk management strategies. Weekly we have conversations with commercial real estate investors and professionals who provide their experience and insight to help you grow your real estate portfolio. Today, my guest is Zachary Beach. Zachary is an Amazon best selling author and of the book The New Rules of Real Estate Investing. And he’s also the co host of the Smart Real Estate Coach Podcast. And he’s also a partner and COO and coach at Smart Real Estate Coach. And in just a minute, we’re going to talk with Zachary about working in real estate during these chaotic times and also buying and selling real estate on terms But first a quick reminder, if you like our show CREPN Radio, there are a couple things you can do. You can like, share and subscribe. And leave, please consider leaving a comment we’d love to hear from our listeners. Also, if you want to check out how handsome our guests are, be sure to check out our YouTube channel. And that’s at Commercial Real Estate Pro Network. And also if you go there, please consider subscribing. I’d love to drive that count up as much as we can. And with that, I want to welcome my guest, Zack, welcome to CREPN Radio.

Zachary Beach  2:40  

Darrin, thanks for having me on. I’m excited tp bring your audience some value and have a good conversation.

J Darrin Gross  2:46  

I’m looking forward to our conversation and I’m certain the audience will enjoy this as well. But before we get started, if you could take just a minute and share with the listeners a little bit about your background

Zachary Beach  2:59  

So about five years ago, I left being a bartender and personal trainer.  I was about 24 or 25. At the time at that, at that exact time, I had zero real estate experience. Clearly I was a bartender and personal trainer. And what I did was I right reached out to my father in law who’s been in real estate for over 25 years, and actually partnered up with him and my brother in law, Nick, who also was a real estate agent for about eight years. So they’re the ones that provided some good guidance for me into the real estate world. And at that time, hopped in about two and a half to three years later, had roughly 100 deals underneath my belt buying and selling real estate. And now fast forward another two years, so I’m about to turn 30. I’ve been 5  years in the business and we have an amazing investment portfolio because we’re definitely still in the trenches doing deals for ourself. And then we’ve created basically a guinea pig version, we’re the guinea pig and then we teach students around the country or we call associates real estate investors that are looking to be able to buy and sell in terms and and grow out a real estate business like like we did.

J Darrin Gross  4:19  

Got it, and I didn’t catch it Where are you based?

Zachary Beach  4:23  

Newport Rhode Island

J Darrin Gross  4:24  

Okay. And as far as the your activity, so, you do both your own inventory your own portfolio and then are you also acting as a broker or are you then doing the the coaching or or do you do I know you do the coaching in the inventory? Do you do any brokering yourself?

Zachary Beach  4:49  

So good questions. So we have our own portfolio which we buy and sell exactly the way we teach people how to do it. But then we also have separate we have our own coaching program. We’re not brokers, we just teach you have a very specific model. And what we do is provide real estate investors or want to be real estate investors, we have plenty of people that are doing their first deal with us. And then we have plenty of people that are doing their 100th or  200th deals with us. We basically lock arms with them and help them through every aspect of the business. So that could be working with sellers and getting properties under contract to selling the property and working with buyers or very specific buyer pool and then managing those properties and getting them to the finish line.

J Darrin Gross  5:38  

So given the the turn of events here, let’s see today we’re recording and it’s May 6. So by my calendar, we’re a little over two months into this depending on you know, when you were affected when it was Rhode Island did they are you guys in a shutdown mode are great,

Zachary Beach  6:01  

Yeah, we’re in shutdown. But we’re in a release mode. Basically, starting May 8, we have steps going towards letting us at least go back out into public Rhode Island, you know, handled everything actually rather well. But we’re actually, although I’m based in Rhode Island, we buy property in Massachusetts and Connecticut for our own portfolio. But then we have students around the country and 90 plus markets. So everybody, we’ve been able to kind of coordinate this Mass Effect, depending on whatever market they’re in. 

J Darrin Gross  6:35  

Let’s just talk about that a little bit. So the, the, if you can give us kind of an idea of what what, you know, your your model look like as far as how you guys were operating pre COVID-19. And then tell us a little bit about how things have changed, given what you’re what we’re dealing with right now.

Zachary Beach  6:54  

Yeah, so the only major change that has happened which I’m sure it makes a lot of sense is we’re doing more buying and selling things virtually than face to face meetings.  I can tell you our original mindset and thought process was, if somebody is going to sell you a property with little to no money down, not signing personally, and not going to get a bank loan, then and for a long period of time, we’re talking 3,  5, 10 plus years, they’re gonna want to meet you in person. And what we’ve come to discover is that’s not necessarily the case.  You could actually do these types of deals virtually from your house. The only time that we typically will go see a property is for two reasons. One is If, for some reason that seller definitely needs a face to face meeting, which some people still do, of course, we do it from a social distance. Or we’re go or we already have the property signed and we either have one of our teammates or an inspector or somebody goes to the property and do a full evaluation of it just to make sure because all of our contract At this time would be contingent upon that.

J Darrin Gross  8:04  

So previously though like I think I understand is that you were you were physically going out and seeing the properties doing the inspections meeting everybody face to face. Was that the

Zachary Beach  8:14  

Yeah. So let me walk you through like a typical process. So we have multiple calls in which we, we access or require our acquire our properties, or leads through through phone, phone or internet. And then typically after the first call or two, we would set an appointment and go to the house. What has changed now is now we’ve gone from that process to now we’re in we’re buying virtually so instead of going to see the house will either do like a zoom walkthrough where you can have a seller, have a phone either do FaceTime video walkthrough via internet, if we want to just get our eyes on it or instead of even doing that what we’re doing is we’re putting together different offers, or what we consider options, which are different based upon the length of time. So when we talk about buying and selling on terms, there’s three main terms, it’s typically; length of time which the contract needs to be fulfilled, the purchase price or the equity locked in. And if the property is free and clear how much you’re going to establish as a monthly payment. When I say free and clear me no mortgage. So we’ve actually now decided to put together options or offers ahead of time. And then once somebody selected an offer, and we put together the correct contract, we’re doing the contract signing before we see the property and we’re just making it contingent upon seeing the house or doing a proper walkthrough. That way, the only people we’re actually meeting and coming in contact with are those that we already have a contract on. You know, there could be slight variances based on the seller Yeah, based on how much rapport that needs to be built, but if you’re looking at a strict change in our sequencing process, it’s, you know, we’re we’re putting contracts first for for appointments now.

J Darrin Gross  10:11  

Gotcha. It is kind of a funny thing they assuming that you probably thought it had to work in the order that you were doing it before. I realized I’m like, you know, everybody, it I’ve run into that myself as like the assumption of this is the way we do it and in realizing that didn’t need to be. So given that, that more of the virtual or you have you opened up your territory beyond the the footprint, you said, Massachusetts and Connecticut are kind of your, your territory, is that right? 

Zachary Beach  10:50  

It’s Connecticut and Rhode Island, so primarily southern New England. Okay. Us personally, we haven’t really opened up our footprint that much further. That’s plenty of territory to be able to do the amount of deals that we want to accomplish. Plus, we already have our attorney established and our dream team established each one of those states. But some of our associates, as I said, live in bigger states, we’ve, we’ve had them open up their territory, because now buying a property three hours away is just the same as buying a property, you know, within 45 minutes. And, of course, there comes some research and things associated with if you want to enter in a certain market. But you know, a lot of our associates now are expanding their market because it doesn’t necessarily matter as much. Even if you have to see the property once. It’s one hour, you know, one trip compared to five others and we typically only see our properties once or twice because of the way we sell, which the buyer would have full responsibility of the property.

J Darrin Gross  11:51  

Got it? Have you seen any increase or decrease in the flow of opportunities since the onset of of COVID-19

Zachary Beach  12:02  

Yeah, actually, we’ve seen a huge influx in activity for an opportunities for us to be able to help out both the buyers and sellers that we work with. And in particular, so right now, obviously, there’s a couple, there’s a couple pockets up in the commercial space or your audience knowing a lot more about commercial space. jumbo loans are few and far between right now. So any single family home that needs a jumbo loan is extremely hard for a buyer to be able to purchase right now. Now, it doesn’t mean that you can’t find them. It just means that the criteria from the banks are significantly harder. I’ve seen chase presented that you had to have a 750 credit score, like six to 12 months in reserves. You know, so it’s it’s extreme and plus 20 to 25% down so you’re just taking a significant amount of buyers that originally could qualify for a loan, not able to.  So huge opportunities in the jumbo loan space right now for single family homes buying and selling on terms. Because the way we’re buying it, we’re either going to buy it on owner financing, meaning the seller is going to finance the property to us, which means we don’t have to go to a bank, or buying it on a lease purchase, which again, is a contract between the buyer, the seller and our company. And we don’t have to go to a bank or the end buyer, the tenant buyers, which we call them. So that’s somebody who’s just outside of finance ability and just needs a rent to own program in order to buy a house. They’re not going to call, they’re not going to have to go get their mortgage until, you know 24 months from now, which I’m sure the banks will be a completely different state. Nobody knows what’s gonna happen next. But that’s just one example of the huge opportunity that’s happening right now.

J Darrin Gross  13:51  

So you’re seeing a big increase in the the jumbo loans?

Zachary Beach  13:55  

Meaning like, yeah, so sellers that originally could sell their properties that depends on the state that you’re in. But anyway, anything from like you know, 600,000 to a million plus are now just sitting on the market because there’s very few buyers that can actually purchase the properties at this time. The other thing that we see as well as far as opportunity because this once you kind of affect what you affect a traditional buyer, so somebody that’s gonna go get a loan effect basically the seller market because now the sellers there’s gonna be overabundance of inventory and no buyers to be able to qualify for them.  And right now there’s an extreme tightening of qualifications. Thanks. So now, the now all the sellers are sitting on the market and are expiring from their traditional listings. So now sellers are looking for new opportunities in order to sell their property. So as that buyer pool continues to build, meaning the ones that we work in the ones that are outside of finance ability right now. We’re going to be able to make a see significant, we are able to provide a significant solution to sellers that are now expiring for the market. And those who are, you know, selling their property on their own that can no longer find these buyers to sell the property to.

J Darrin Gross  15:13  

Got it, and are you as far as your marketing efforts? Do you you market to the seller or do you market to the buyer or to both?

Zachary Beach  15:24  

So the way our typical process is, it’s the opposite of like a wholesale method which is wholesale. It’s like build your buyers list and then go get houses to sell to. What we do is we work with and we have a small team, typically, virtual assistants and a CRM that has some automation set up with it and we market directly to sellers once we acquire properties, or buy properties from the seller, we would then present it in market to our pool of buyers. I mean across the country, this is even before is pre COVID. It’s roughly 70 80% of buyers could not qualify for traditional loan in general. So now that COVID is hitting that that number is growing. So finding buyers typically is never the issue it right now with the need for additional solutions and additional options as the seller opportunity is significant as well. I mean, that’s why we’ve seen a giant uptick in the amount of properties that our associates are taking under contract. And buying.

J Darrin Gross  16:29  

You mentioned that 70 to 80%. were not able to qualify, is that for the jumbo? Or is that for just buying in general?

Zachary Beach  16:38  

That was just for a traditional loan, like when I haven’t talked to jumbo? 

J Darrin Gross  16:43  

Wow, 

Zachary Beach  16:44  

It’s gonna depend on your market. But if you’re looking at the criteria based upon somebody that had a credit ding, which we’re just starting to see some of our buyers come out of 2008, I mean I know it’s 12 years later, but some people were affected that much Now what we’re going to see, at least my expectation, what we’re going to see, I mean, I don’t have a crystal ball is that this is that COVID is going to affect people for the next 12, 18, 24 plus months. So although a lot of things are continue to stay, as is two months in, people that have been lost their jobs and things like that are now going to need, especially from a buying standpoint, I tape a program that we offer, like our red zone in order to qualify for a loan, especially if they plan on buying in the next couple years.

J Darrin Gross  17:35  

Right, right. It’s interesting, I hadn’t realized the percentage to be so high. I mean, I knew there’s always a marketplace for the non conventional. But you know, based on what you see on TV and stuff, I wouldn’t, you know, I’d say I guess I didn’t really think through it that much as as far as the the buyers here.

Zachary Beach  17:55  

Let’s look at just to give you a little more context, self employed Right, there’s a large group of people that need roughly 24 months of seasoning, what banks called seasoning to be able to show, they make that type of money. That’s actually I bought, I’m sitting in my guest room, but I actually bought my house through a lease purchase as well or through a rent to own program. Because I’m self employed myself, and in order to acquire the property that I wanted to at the price I wanted to, I was able to buy it through a lease purchase. So even if you take these types of techniques and and go buy your own house, I’d have to go to a bank for 36 months, I was able to build up some great equity in the property.

J Darrin Gross  18:37  

Got it? And tell me about the the sellers mindset. You know, if they had you said you’re calling on these expired listings or or, you know, they were trying, I’m assuming they tried a conventional sale before. Can you talk a little bit about their mindset and how they, how receptive they are to this.

Zachary Beach  19:01  

Yes, it’s all as in real estate in general, it’s all comes down to the motivation. Or really it comes down to if you can provide that seller with the right solution like meeting, if. So, selling their property on a lease purchase or selling an owner financing is going to solve their problem, then they have a deal. Most sellers are going to say we have a script, it says 99% of the people that we buy for one a traditional sale. So, of course, most people you talk to are going to want to sell traditionally, they’re going to want to sell traditionally, they’re going to want to close fast, they’re going to want all cash and make it as easy as possible. But the truth is, it’s it’s, it’s not always possible. So that’s when our solutions come into play, or our types of options that we buy from. So it’s all about meeting a seller where they are and if you’re able to provide the solution to that motivation, or to their actual need. We went over what wants are but what is their actual need? Is there need that they have two mortgages and they just moved out of state now, you know, is there need that they need some mortgage relief? Is there need that, you know, they want to push off some of their capital gains. So it’s all about discovering what their actual need is, and can you provide that solution? So it takes a little bit of time in order to say, hone in on your skills in order to figure out if you could actually help somebody. But where, right now across the country, we purchased over 20 properties last month, with a small group of people. So the need is there.

J Darrin Gross  20:37  

No, that’s, that’s interesting. Do you have any kind of sense? Or how did that 20 last month compared to a month prior? or?

Zachary Beach  20:48  

Yeah, good question. So we’ve seen a steady increase. It’s the last last three months so it was like 10, 15, 20ish, I’ll just given you round numbers, but it is moving in, in that S curve, because we started to see a slight effect from it, meaning are a lot of our harvesting comes from and when I say harvesting, I mean like we buy a lot of properties in like September, October. Because the truth is, we tend to be a large group of people’s Plan B, right? If they can’t sell their property, then then they’re open to doing something on terms. So we did we typically do really well and fall. And then what happened was over the winter, we continue to take on more properties. But then as soon as COVID hit the traditional seller, mindset had to change because this was not a typical spring, like a typical spring as a seller has been waiting to list their property with the real estate agent that they chose back in January. And right now, there was there was no sense of that, because they needed an alternative route. So those that were motivated became extremely motivated and those who are semi motivated became a little bit higher motivated. So that’s why we’ve seen that steady increase. And the surprising thing was because we weren’t sure about what it was going to do for our buyers because we weren’t sure if people are going to hoard money instead of going to buy a new house, you know, kind of come out of the renters mind saying go buy a home, but because of the clamp down of the banks and requirements, they actually opened up our pool of buyers that originally were going to buy anyways to now move into our program in order to buy through a rent to own because they couldn’t no longer qualify for a loan. So by the tightening of the banks actually opened up a pool of buyers, which we would have thought would have been hoarding money. So pretty interesting results. We couldn’t have predicted that.

J Darrin Gross  22:56  

No, that’s that’s interesting. The you know, We’re just being positioned properly can can, you know you’re positioned to take advantage of and obviously take advantage of, but to be the solution that was not available to people through traditional means. So that’s interesting, great. I hadn’t thought of that.

Zachary Beach  23:18  

The great thing was or take the great thing. But we, we Luckily, as a family, learn from our lessons, my father in law, Chris back in 2008, got crushed. So that’s why we built the business. So that’s why he originally started the business to buy and sell on terms because you’re not using your own cash, you’re not signing things personally, you know, you’re not going to banks for these. So we actually positioned ourselves outside of the traditional means of the traditional way of buying and selling and once COVID came, people could no longer do traditional so they had to start looking for alternative solutions. So we just, we just happened. But I just say we got lucky in a way but you just we positioned ourselves. In a place that we could provide solutions with alternative or creative financing, and just the need for that is now increased. And I would expect it to increase for the next three to five years.

J Darrin Gross  24:13  

So you mentioned you, you you, first you position yourself where you guys do you do you purchase the property and then lease it to the buyer. So are you the are you cut in the middle there? And, you know, from the seller to the buyer? How’s that?

Zachary Beach  24:32  

Yeah, so let’s just walk through one of our options. So a sandwich lease, it’s called so you’re actually talking perfect right in the middle. Sandwich lease means that you’re going to agree upon a price with a seller, you’re gonna agree upon a definitive end date with the seller or what we call like a length of time or a term. And you’re also going to be taking over let’s just use this example. They have a mortgage, they’re going to be taking over any responsibilities of the property, including the mortgage Taxes insurance. And you know, future repairs ain’t no responsibilities. The really cool nugget that I just want to throw in here is you’re actually not necessarily agreeing upon a purchase price. But you’re actually agreeing upon a locked in amount of equity in the house. So actually every month that you are collecting from your buyer and making a payment, you’re benefiting from the principal pay down, which is a fantastic way to build equity and build wealth in this business. And then once you have all that tied up with your seller, you’re then going to set you have control an equity interest in the home, you’re going to sell the property for an increased price, a shorter term and a higher monthly payment. And you’re going to be positioned in the middle to be collecting from your tenant buyer, and then paying off paying the expenses on the other property. So easy way to kind of look at it is like almost like Uber it with a lease purchase. You control everything But you don’t necessarily own it.

J Darrin Gross  25:58  

No, it’s entertaining. You know, a little bit familiar with the concept. You know, it’s it’s something that is clearly an option and it’s I think the again the the percentage thing you mentioned 70 to 80% and even recognizing the self employed, how much of the self employed are affected by that number it’s you know, you can’t necessarily go and qualify for a traditional financing I know some of my wealthiest clients have conveyed me that Yeah, they don’t qualify for conventional financing based on just the way their source of income it’s, you know, they’re not getting a W two from a recognizable name, you know, household name that the underwriter can feel comfortable with, you know, expecting

Zachary Beach  26:45  

it’s pretty crazy. Well, plus being self employed, right? When you’re not trying to qualify for something you pay, you always want to make as much money and pay at least my taxes. I mean, it’s just, that’s why you’re a business owner. But once that You have to like change your entire way of operating once you go try to qualify for a loan, which means you’re going to show as much money as possible that way, then the bank can recognize and qualify you for that traditional loan. So and that takes roughly 24 months to be able to prove that and show that. So what we’re doing is we’re giving something people the opportunity to agree upon a price lock in the price today live in the house that they want to buy, while they’re going through that process.

J Darrin Gross  27:27  

Gotcha and, you in the middle, you negotiate the the purchase price, and then you’re building equity. And do you also get a little bit on the the differences between the mortgage and the right here collecting? Is that

Zachary Beach  27:40  

correct? Yeah. So that’s a good introduction to so we get paid three ways on each one of these deals. You get paid from the non refundable deposit that we collect from our buyer. Because our buyers are locking in a price. We’re typically going to raise the price for a premium because we’re selling it to them and then say 24 36 months down the road, we collect a non refundable deposit that typically sits between five and 10% upfront. And then over time, what we’ll do is we’ll help them increase that deposit as well. So when they go to a bank, they won’t, they’ll be able to qualify for the best loans, not just any loan. So that’s one way we get paid. The second way we get paid is called paid number two, which is a spread, which is the difference between what you have to pay either the homeowner or the mortgage company and what you’re collecting from your buyer. And then payday number three would be the increased equity in the property because as I mentioned earlier, you get you’re benefiting from the principal pay down. So 500 bucks, a principal coming off your mortgage every single month, that’s six grand a year. I mean, that’s some significant over 36, you know, 18 grand that you’re building up, plus, if there’s any additional premium left on the back end, you’ll get That as well. So that’s our three paydays. If you’re, if you’re mine, I would include one of our YouTube links, just go to our SmartRealEstateCoach.com/youtube, our youtube.com/smartrealestatecoach and we have over 100 plus deals on there that we’ve structured with either ourselves are with students, so you’ll be able to see the nuances and kind of see how we’ve created these deals in order to create those three paydays. 

J Darrin Gross  29:26  

Got it.  Hey question for you doing the least since you guys are you’re taking possession. Are you getting any depreciation on the property? 

Zachary Beach  29:36  

No, not on those. Because the depreciation well of course follow the title. So 

J Darrin Gross  29:41  

Okay, 

Zachary Beach  29:41  

We’re not what we’re doing is we’re going to be paying everything for the seller. We’re contractually obligated to make their mortgage payments, make the taxes, make those tax payments and all that as well. Seller actually still benefits from depreciation. That’s why of course buying on our other two options with I don’t know if we have time for today, but the other two options which are owner financing, and by subject to the existing loan, you’re getting depreciation because you’re gonna hold title.

J Darrin Gross  30:09  

If you don’t mind, if we do have just a minute if you want to go through just kind of give us the, the, the distinguishable difference between the what we’ve been talking about and those two other two options.

Zachary Beach  30:22  

Yeah, so with a easy way to think about with a lease purchase title transfers before the end of the term, owner financing the title transfer at the beginning of the term. So what you’re going to be doing is you’re going to be agreeing upon a price with a seller, you’re then going to be closing on the property. And I’m just going to assume in this example, that the property is free and clear, debt free. So then the seller is actually going to finance and hold the mortgage and you’re going to be paying the seller. Typically the way we structure those, if it’s like five years or less, it’s usually principal only payments. Of course if we can structure out means zero percent interest of anything typically longer than that we continue to try to get zero percent interest but if we’re doing 10 2030 years typically a seller wants interest on the property. So that’s why we structure it so you hold title seller holds the mortgage. On the subject two option that I was alluding to what you’re doing is you’re actually closing on the property subject to the existing loan. So you’re acknowledging that there’s already a mortgage on the property you’re taking title your contracts the obligated to continue to make that mortgage payment, which stays in the seller’s name.

J Darrin Gross  31:42  

But it actually records your you’re on the title then. So you can I mean, if there’s a buyer,

Zachary Beach  31:49  

Yeah, so our company, because we don’t ever tell you to personally sign anything but your company will, the company will hold or you know, if you hold an a trust there, wherever else you and your attorney to say That you should structure it best.

J Darrin Gross  32:03  

Gotcha. Gotcha.

Zach, if we could, like I mentioned to you a little before we started recording by day, I’m an insurance broker. And I work with clients to assess risk and determine what to do with the risk. We typically consider one of three different strategies. The first is can we avoid the risk? If we can’t avoid it, then we look to see if there’s a way we can minimize the risk. And if those two are not options, then we look to see as a way we could transfer the risk. And that’s what an insurance policy is. I like to ask my guests if they can identify what they consider to be the BIGGEST RISK. And just to be clear, I’m not necessarily looking for an insurance related answer. If that’s if that is what you believe to be the BIGGEST RISK so be it but If you’re willing, I’d like to ask you, Zachary Beach. What is the BIGGEST RISK?

Zachary Beach  33:09  

Yeah, it’s a fantastic question.  The truth is we’ve we’ve transferred a lot based on your description, we’ve actually transferred or deferred a lot of the risk based on how we actually buy and sell real estate because the sellers still typically on title, and we have the ability to renegotiate based on our contracts. You know, we’re collecting a non refundable deposit from our buyer. So that’s limiting the risk. But if I’m just looking at it from like, purely what’s going on right now, today’s because we actually just came off one of our offsites that’s our BIGGEST RISK would be if like there’s a fear crisis that happens, meaning that people decide to no longer buy real estate, hoard money and stay where they are right? Or no longer want to sell property because there’s so fear driven that they want to stay where they are. Yeah, I don’t of course, I don’t see that happening. But I don’t have a crystal ball. But as I was alluding to earlier, it was we originally thought that people are going to start hoarding money. But then because of the tightening of the banks, it actually released some buyers that were ready to buy. So that kind of continues the cycle. So I would say that’d be the BIGGEST RISK other than, of course, if there’s a complete market crash. Now, I want to say it’s a risk to our current business model. It’s not risk to being in real estate, because the truth is right now if you have the ability to buy on terms, but also continue to take your profits and put them away, because if the market crashes, then you’re going to be able to buy property at a significant discount. So I would, I would say it’s just the risk to our current business model. But we’ve kind of evaluated some of these things and we’re working our best to set up for if the market prices again or crashes so it’s just important to look at it from all the Different standpoints. But any real estate market in general, does matter if it’s up or down, there’s always opportunities available.

J Darrin Gross  35:07  

Yeah, no, that’s that’s definitely something to remember. I was talking with a commercial broker the other day and, and he was saying, you know, we can make money when the markets going up or the markets coming down. It’s when it’s at the top or the bottom, we have a bro. So I mean, that’s kind of an interesting take on it. But

Zachary Beach  35:28  

Well most millionaires were especially real estate where they made their millions during the recession. So you see, like the new new age people that are coming out, they made their money when it was back, like you know, further away because they’re buying property a significant discount, and now the appreciation is significant. So if you can create long enough terms, meaning like a long enough timeframe, like a lot of our deals now like 10 plus years, we were going to go through a cycle or two before at least one One more cycle before our contracts would be up. So that’s how we mitigate a lot of our risk. 

J Darrin Gross  36:06  

Gotcha.  Zach, where can listeners go if they would like to learn more and or connect with you?

Zachary Beach  36:15  

So it’d be two things I would do. To learn more about how we operate in like a very efficient period of time, I would just go to smartrealestatecoach.com/webinar. My father in law, he does a 45 minute webinar that breaks down like, where we acquire leads, how we do deals, you know, gives you the basics that we can kind of wrap your head around it and start diving in. If you want a call with one of us, we’d be happy to chat with you just go to smartrealestatecoach.com/action. There’s just a quick six steps, which are just a couple questions in order to set up what we call a strategy call, which we can, you know, answer evaluate what you’re looking to do and pointing the right direction give you a nugget or two

J Darrin Gross  36:58  

Got it.  Zach, I can’t say thanks enough for taking the time. I’ve enjoyed our talk today. learned a lot and I hope we can do it again soon. 

Zachary Beach  37:10  

Darrin pleasures all mine. 

J Darrin Gross  37:12  

All right. For our listeners. If you liked this episode, don’t forget to like, share and subscribe. Remember, the more you know, the more you grow. That’s all we’ve got this week. Until next time, thanks for listening to Commercial Real Estate Pro Networks. CREPN Radio.

Intro  37:31  

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