Build Cash Flow Faster With This Seller Finance Trick

The Real Estate Investing Club

Join an active community of RE investors here: https://linktr.ee/gabepetersen  0:00 Introduction to low-cost real estate investing strategy 2:15 Growing up in real estate and early investing lessons 5:40 Why traditional rentals don’t always create freedom 8:10 Becoming the bank with seller financing 11:05 Paying off properties fast vs long-term leverage 14:20 How low purchase price homes create high ROI 17:10 Example deal breakdown with seller financing 20:30 Avoiding bad tenants and vetting buyers correctly 23:05 Why investors buy these properties from us 26:10 Best markets for affordable real estate deals 29:00 How to find discounted properties consistently 32:10 Raising capital and working with private investors  In this episode of The Real Estate Investing Club podcast, I sit down with Emanuel Stafilidis from Capable Capital to break down a powerful real estate investing strategy that focuses on low purchase price single family homes, seller financing, and becoming the bank. If your goal is financial freedom through real estate investing, this conversation dives deep into how investors can create consistent monthly income, scale faster, and reduce risk by using creative financing instead of relying only on traditional rental property strategies.   WHAT IT REALLY MEANS TO BECOME THE BANK One of the biggest mindset shifts we discuss is why many experienced real estate investors eventually realize that the people making the most money in real estate are often the lenders, not the landlords. Emanuel explains how his strategy focuses on buying affordable properties, paying them off quickly, and then selling them with seller financing so the investor collects monthly payments just like a bank. This approach allows investors to generate long-term passive income while avoiding many of the headaches that come with managing tenants, repairs, and unpredictable expenses.  This episode is perfect for anyone interested in real estate investing, passive income, creative finance, seller financing, rental properties, or building long-term wealth through real estate. Whether you are just getting started or already own properties, this conversation will give you new ideas on how to structure deals, reduce risk, and move closer to financial freedom.   #RealEstateInvesting #PassiveIncome #SellerFinancing #FinancialFreedom #RentalProperty  Want to learn more about our guest? Connect here: www.capablecapital.net (http://www.capablecapital.net/)   Want to learn more about the REI Club Podcast, how to invest with Gabe at Kaizen, or join our community of active real estate investors on Skool? Visit the podcast website at https://www.therealestateinvestingclub.com (https://www.therealestateinvestingclub.com/)  or click here: https://linktr.ee/gabepetersen  Send a text (https://www.buzzsprout.com/twilio/text_messages/1076905/open_sms)  Join the Online Community here: https://linktr.ee/gabepetersen.   Support the show (https://paypal.me/GabrielWPetersen?locale.x=en_US)

Transcript

00:06all right we are back with another episode of the real estate investing club i hope you guys are

00:11having a great week great day wherever you are and whatever day it is for you it is friday on

00:17the podcast we're bringing that good friday energy to you and it is nice and sunny here in seattle so

00:22it's a good day it's a good day for everybody it's uh one of these days where you wake up

00:26it's

00:26like really cold outside but it's beautifully sunny and you just want to go on a walk um i

00:30haven't done that yet i'll probably do that after the podcast but it's a good day for a second reason

00:35because we have emmanuel staffelides with us on the podcast from capable capital he has 30 years

00:41of experience in real estate they're in the single family space um specifically uh the low purchase

00:46price single family with seller financing so we'll we'll get into that in a second but emmanuel i'm

00:52excited to hop into this thanks for hopping on i'm excited to be here thank you very much for

00:57having me uh gabe we've been uh uh i've been listening to you for a while and it's uh it's

01:03great to be here right on man um i told you before we got on here we always like to

01:08start with stories

01:09we like to hear how people got to where they are you got 30 years of experience so i'm sure

01:13your story

01:13goes up and down and left and right why don't you take us to the beginning and uh tell us

01:18how you got

01:18oh wow that goes back a couple of lifetimes um i uh i've been in real estate just about all

01:26my life

01:27i my family were always involved in in some type of real estate i grew up in a in a

01:34large-ish uh motel

01:36where my family owned and and operated it was uh 74 rooms uh in canberra australia and uh and

01:46the you know before i was born they were they were my grandparents were immigrants from greece to

01:53australia and uh they were in coffee shops and and you know small business but uh my grandfather

02:01was always buying real estate and and involved and so uh like i said i grew up in a motel

02:09but the

02:10the family had commercial real estate uh and residential real estate um and so it was always

02:18part of my life i uh bought my first house when i was 17 i bought it with my mum

02:24uh i started working

02:27in um in the family businesses from a very young age i was like 12 years old when i started

02:34working

02:35and uh learned how to save some money and put some money together and mum helped me out and then

02:41the real estate um

02:46the real estate was always we always owned real estate always uh managed it and and all different

02:53types of of real estate but uh it's you know it started again when i was 17 i'm turning 56

03:01this year

03:02so it's been a long time um and so i've been involved with commercial real estate uh i guess

03:11over the the length of my life uh commercial's been predominantly what i've been doing but

03:18through realization and managing different properties you know we got involved with multi-families and

03:25we did a lot of single families and we fixed them up and we were mainly renting them but

03:30over time we realized that the people that were making the most money out of real estate were

03:35the banks they were it was you know it's such a debt orientated business that um you know i always

03:43wanted to be the bank and so i moved to the us in 2018 and and uh lived in virginia

03:51for six years and

03:52only just a few weeks ago moved just over the border to north carolina but when we got here it

03:58was

03:58the dream was you know how do we become the bank how do we and i didn't really um focus

04:05on that in

04:07terms of a realization it was through some people that we met and and mentors you know they've become

04:14mentors over time and and uh and that's what we're creating now but uh nice the involvement in real

04:22estate to you know to answer your question has been all forms of real estate uh yeah just about

04:28everything you can think of i've been involved with it and i'm always jealous of people who who

04:33kind of grew up in that family they were surrounded by people who were doing real estate so it's kind

04:38of second nature it's just to you it seems like something that people do they go out they do real

04:42estate that's just what you do um so i love to hear that why motels that's a it's a really

04:47unique

04:47niche but if you grew up you lived in a motel your family owned a motel i'm sure you have

04:52a lot of

04:53knowledge why didn't you go down the motel path uh and and i did and i and i tried um

04:58we tried different

05:00things we we bought properties and um we not only ran them and and uh running a motel is a

05:08hotel

05:09uh it seems glamorous but it it it really isn't i uh i worked i worked as a bartender and

05:17um and in

05:18food service and a couple um hotels and i it's it's crazy i could imagine like being the owner of

05:25that hotel and managing it and running it that would be hard it is and there's there's two forms of

05:31income in in that type of real estate uh there's the food and beverage side which which you mentioned and

05:37that can be extremely profitable if done well but the if not done well the margins are so tight that

05:44you

05:44you either lose money or you make a lot of money and um and and it's very difficult and and

05:51it's

05:51very labor intensive and if you're not actually in the food and beverage side of it and you're relying on

05:59on staff you know the success of your restaurant or you know food side or the success of your bar

06:06is

06:07often relied on how good the person is you know running it or the chef or things like that and

06:13you know one staff member change and and your whole business can can change we focused on the uh

06:20accommodation side you know the it's much easier to find people to clean rooms and uh and maintain

06:28rooms and and and theoretically a whole lot more profitable but again it's very labor intensive it's a very

06:36um real estate um real estate cost intensive so the purchase price of of the rooms um you know getting

06:48the the the the the real estate is is extremely expensive and and the money everybody borrows money to

06:55to buy these properties and you know a lot of the revenue just goes back to the investors or the

07:02or the bank or

07:03or or that those people and again it's although it's profitable and and if you're if you manage your

07:11money properly you can you can make a lot of money but um uh you know the people that make

07:17the most money

07:18are the ones that fund it and like all real estate the people who make the most money are the

07:23ones that

07:23fund it you know yeah the finances so well and that does bring us to what you guys are doing

07:28today at

07:28capital capable capital so you guys as i understand it you you look off market you look on market you

07:33buy properties that are low purchase price so sub one hundred thousand dollars and then you sell them

07:38on on contract the seller financing does that kind of sum up what you're doing yeah so i i came

07:44into this

07:44business i was exposed to it by our mentor um scott jelinek who's a who's got you know 178 of

07:52of

07:52these low cost properties uh and we're we started with him back in 2020 um just after we moved to

08:03the

08:03u.s and what i really loved about the model my years of experience i had rentals and did everything

08:13that that all the gurus out there you know promote and that is buy real estate and rent it out

08:21and you

08:21know the tenant pays your mortgage and and over time um you'll you'll make you know a little bit

08:29of money every month from from the spread of the rent to to what the property is costing you and

08:37um

08:40you'll build up a you know some money and then you'll buy more and buy more and and over time

08:45you've got a portfolio and you've got money coming in and you know that's fantastic and eventually you'll

08:50you'll hit retirement and that was the strategy for me that was okay real estate's going to be

08:56my retirement and so i was in other other work um and buying real estate and and having rentals and

09:06then

09:07scott came along and and taught us this strategy of well why don't you pay off the house

09:15and get all of that money from the property and that was one realization and then the other real

09:23yeah try try and try and buy it with cash or or buy it with a uh such a small

09:29mortgage that you can

09:30pay it off very quickly and i really like that idea of um you know getting rid of the finances

09:38getting

09:38rid of of other investors as fast as possible get them out of the deal so that all the money

09:44is yours

09:46and that way you can scale a whole lot quicker um and so that that was one real i would

09:55jump in there

09:56real quick because i always like to play devil's advocate and um and i i love the idea of getting

10:01all the cash flow to yourself the only problem is i don't agree that you can scale quicker because the

10:06debt is leverage and when you use debt you can leverage quicker which means you can scale quicker

10:11do you do you not agree with that um sentiment like if you have you know if you have a

10:16hundred

10:16thousand dollars in your bank account you can either go and buy a hundred thousand dollar property

10:20um and make a thousand bucks or you can buy a million dollar property put ten percent down

10:26and you know make whatever the the cash flow is on that property which is going to be more than

10:32if you

10:32just bought that one thousand dollar a hundred thousand dollar property um at least that's how

10:36i've seen it i i've always been a big fan of using debt i understand the the desire not to

10:42have it in

10:42the picture um but it does in my opinion it does kind of hamstring you it does make the process

10:48go a

10:49little bit slower um what's your take yeah so i use debt there's no doubt about that i just use

10:56it for

10:56a much shorter term than what most people do the the the process that you're describing um is what is

11:07what most people do and again what what i was doing before and i most most people and i was

11:17exactly the

11:18same i took out these 15 20 and 30 year mortgages and um because i wanted the spread and i

11:27was looking

11:27for money for myself i would make the minimum payment on those mortgages so it would take

11:3415 20 or 30 years to actually pay off the property and um and you make your two or three

11:42or four or

11:42five hundred dollars a month uh typically on a you know on a burr or strategy um you'd make that

11:49you

11:49know five hundred dollars a month and in theory the the goal is put that 500 away save up and

11:59when

12:00you've got enough money buy your next property what happens in practice is life gets in the way

12:06but also not only life and you spend some of the money but also the property itself needs maintenance

12:15and it needs money and so a tenant turns over you know every two years or you know typically for

12:25a

12:25rental or um something occurs you know a hvac goes you know a major item occurs and the 500 a

12:34month that

12:34you've been accumulating over time then a lot of it gets spent and reinvested back into the property

12:40so that you can maintain you know the the the high rent values that that you need yeah and that's

12:47always why i i suggest people go big um don't buy single family buy buy multi-family buy self-storage

12:53mobile home parks you know a larger property because those things that you're talking about the things

12:57that you can't predict um that happened to every property the the things that cost money those can be

13:02that and that cost can be absorbed if you have a higher net operating income um so if you're if

13:07your net operating income is 200 000 a year it's very easy to absorb those those uh um maintenance

13:14things that happen you know capex issues that happen to every property but if you only if you're only

13:19making 500 bucks a month uh you know one water heater was is going to take the entire month out

13:24of

13:24there um yeah so i i hate to make and one hvac can take out the entire year's worth of

13:30income

13:30yeah so yes you know it can be or a roof or something like that and and there's there's all

13:36these arguments around oh well you know you rehab the house and you spend money and that way you don't

13:42have to spend the money for so many years but still the the capex you know does cost money

13:48and and whether you're spending it in you know five years time or ten years time you've you've got

13:53to allow money to you know for the capex um so where i was going with it was i i

14:01buy houses and my

14:02attitude quite quite honestly is i buy houses like and pay them like a car and sell them like a

14:10house

14:11and so i take the attitude of if i'm going to buy this property i want to pay it off

14:18in

14:18five or six years or or you know preferably as quick as possible and similar to what we buy a

14:26car if i buy a car for thirty thousand dollars i've got to pay it off in five years and

14:30then the car is

14:31mine the difference between a car and a house is that the car after five years is starting to show

14:37somewhere and you know a house will last you know a very long time um and so the five-year

14:45payoff can

14:46then give us you know a lot a lot of income once it's paid off it can give us a

14:50lot of income moving

14:51forward the um when i sell them like a house i sell them on finance so this is us becoming

14:59the bank

14:59so i take the attitude of wells fargo or or any you know bank of america or any one of

15:06those

15:07and that is i'm selling the house to you on terms you're responsible for the house you look after the

15:14maintenance you look after the house you can do whatever you want with it and your benefit is you

15:19get the appreciation i don't i'm selling it like but i get monthly payments and i sell it on a

15:2430-year

15:25mortgage so i'm trying to pay off the house in five years and i'm receiving income for 30 years

15:31and that's really the strategy behind what we do can this apply to anything other than single family

15:39homes absolutely and people do it on those larger larger uh purchases they do it on multi-family

15:45they do it on rv parks and they do it on you know storage units and all of these things

15:50it's

15:51basically uh becoming a financier and and providing finance for the property and uh receiving those

16:01those monthly revenues that are fixed i get that every month um so and the reason why we do it

16:08with

16:08single family and lower cost homes is because it fits into our model of paying it off quickly

16:14yeah when we scale and get more and more properties and have more and more revenue and income then we

16:22would look at larger properties i have duplexes i have small multi-families a four unit and uh and i

16:29would look at eight and 12 and 16 unit properties you know now i i wouldn't hesitate yeah and i

16:37would

16:37look at big commercial buildings and doing this on on on commercial the thing that i have against doing this

16:43with commercial is um it's it's not the highest and best use of the dollar um so if you buy

16:50and i'm

16:50actually literally just did this for a small self-storage facility um that i that i own or owned

16:56and i'm selling i was going to sell it on a contract like you said um i bought it at

16:59x price i did the

17:01improvements and i was about to sell it and take that equity and just kind of be the bank but

17:05i realized

17:05you know i would get you know six seven percent interest if i took that same equity and put it

17:10into a

17:10in my next deal i could the the return is going to be much more than seven percent annually um

17:16and

17:16so i couldn't justify being the bank in that situation because i could i can make easy double

17:21that um if i just did this same strategy and use that equity to buy you know the next property

17:27buy

17:27a bigger property um so you but you specifically on the single family side it sounds like this does

17:34uh work for the most part um so i want to run through real quick a scenario with you let's

17:38say

17:38you buy a hundred thousand it's a nice round number hundred thousand dollar house um or sorry

17:44you buy well actually you take me through through this scenario what is the general purchase price

17:49that you that you do find your properties at i 90 90 plus percent of my my properties i purchase

17:56for

17:56under fifty thousand dollars fifty wow where where are you buying these mostly through the midwest and

18:02the and the south um we've got a lot here in virginia fifty thousand dollars in virginia that's

18:09kind of crazy yeah so you buy buy 50 and then do you sell it at 50 do you sell

18:14it at 60 70 what do you

18:15what do you sell it i force the appreciation so i'll sell i try to my target is 3x what

18:22i purchased it

18:22so if i buy it for 50 i try to sell it for 150 the the sell price however is

18:30just a number that

18:32comes into play way down the track um when i sell it on a contract we may put 150 000

18:40as a sell price

18:41but really it's the monthly payment and the interest rate that our buyers actually negotiate and that's

18:47where they should concentrate on is the um is the monthly payment the interest rate we try to make the

18:54monthly payment similar to what rents would be in the area so if the rents are around about

19:02you know 1300 or 1500 or 1800 thereabouts we'll we'll try to get that kind of monthly revenue

19:11and then we will backward engineer the interest rate so sometimes the the interest rate is six

19:17eight percent other times it's ten twelve percent it's uh it's it works out so that a buyer looks at

19:27it and says well i can pay rent for 1800 or i can buy this for 1500 a month and

19:34i own it and i can do

19:35what i want with it and the benefits to the buyer are are not only that they are owners and

19:43that you

19:44know everything that comes with ownership but it's sometimes it's just simple things i can i can paint my

19:50daughter's room pink and i don't need permission to do that it's my house they own yeah if i want

19:56to fix things up and spend money on it they're actually building their own equity in their own

20:00their own life as opposed to renting where and that's a big problem that renters have is you know

20:07can i put a picture on the wall you know can i put a hook here and you know get

20:12they can't really make

20:14the house their own and a lot of the so sometimes that's the reason why they move uh yeah you

20:19know

20:19they just have conflict with the with the um owner the landlord yeah so we we are running down the

20:26clock but um i didn't uh before we move on i do want to ask i want to kind of

20:30finish out this this

20:31scenario here so you bought it um at 50 000 you sell it at 150 you already mentioned your interest

20:37rate you try to keep the monthly payment to be about what the uh the average rent is for the

20:42area

20:42um one issue with seller financing uh especially for residential as you is getting bad tenants um

20:49or you know bad owners and people who aren't gonna continue to service the note um so how do you

20:54vet

20:54your your buyers and then um how do you service it once you haven't in your once you've sold it

20:59on

20:59contract so i try to i try to keep it as simple as possible and and away from all the

21:05laws of

21:06discrimination and and all the everything that goes with it i've got a very simple process and that is

21:12a down payment i asked for a down payment uh the down payment will be somewhat high and not high

21:20but

21:20considerable so it'll be five or eight or ten thousand dollars down payment is it a for down

21:27payment do you do a percentage of the purchase price or do you just do a flat you're always like

21:31five ten fifteen one of those how we work that out internally it depends on the property and depends on

21:37the um uh everything that goes around associated with the property but but basically we we do try

21:45to keep it around that figure because that's affordable for for people that are buying and um

21:52and if the property is in really good condition it will get a higher price and if the property is

21:58you

21:58know not not in good condition then it's typically going to go to somebody who's going to invest in the

22:04property and and spend money and so the down payment is lower okay um so we vet them by the

22:13other vetting that we do is income uh i make sure that they can actually support the payment um so

22:20i look

22:20at their their income and their you know their their job history uh employment history and i talk to

22:27them about what their plans are with the property if they're going to live in it so there are laws

22:31everywhere

22:31around how many houses we can sell to owner occupants and then there are no laws around how

22:37many houses we can sell to investors so we get a lot of burr investors that use us as finance

22:43as

22:43opposed to going to a bank and getting finance because it's it's an easy process for them to get

22:49the house with us there's not a you know we don't check credit scores and things like that the majority

22:54of

22:54our buyers are investors there are some owner occupants definitely and and we stick within the

23:02laws of of what we're allowed to do there so we we track who who our buyers are um and

23:11and that's basically it the the investors that buy a lot of them do section eight and do um you

23:17know

23:18their own their own strategies they they implement um but they're the they're the two main types of

23:23buyers one is the investor that then rents it out and uses us as the bank and the other if

23:30you're if

23:31you're selling to an investor though um and you're and you're selling it at where the mortgage basically

23:36equates or is equal to the the rental that you know the prevailing rental price um how does the

23:43investor make any money how does how does that they'll add value they'll add value to the house

23:48they'll you know fix it up a little bit do something to it make it make it rent ready a

23:53lot of our houses

23:53are not rent ready when you're buying a low-cost house you're not getting something that's hgtv ready

23:59they are not you know these houses although some of them you'd be quite surprised some of them are in

24:06really good condition look would you and i move into them you and i would only live in these houses

24:12if we were desperate and something you know really went wrong in our life and that's where a lot of

24:17these people are is they're you know they're they're on the the in that area um but a lot of

24:26the houses

24:28are structurally sound but cosmetically not so good and so an investor can say all right i can pay

24:34three thousand dollars down i can pay you know a thousand dollars a month for the house so then

24:40it's mine i can spend five or ten or twenty thousand dollars i can paint it i can you know

24:45fix up these

24:46deferred maintenance items and maybe put in a new vanity or something or a kitchen or something that

24:52they're going to make the house a little bit better and then rent it for fifteen or sixteen or eighteen

24:57hundred dollars a month got it okay and so they get their spread that they're looking for and you

25:04know we make our fixed monthly payment and the best thing about selling for us to invest is we actually

25:09prefer them than than our own occupants the investor is has the same mindset as us and that is you

25:16know

25:16this is our income this is how we make money so they they want to look after their tenants and

25:22they

25:22want to look after the property and and get their tenants to to pay every month so they're looking

25:27after the property and and making yeah things are right and they pay us every month yeah that makes

25:32sense so essentially you're wholesaling but with but not necessarily wholesaling because you're you're

25:37buying a property and then selling to investors but investors are your end buyer um somebody who is

25:42looking to to to do you know do the value add to the property that makes our value add what

25:47we where

25:48we add value is the finance so something that a lot of people don't realize is um if you were

25:54to

25:55try and buy a house for fifty thousand dollars and you had ten or you know ten thousand dollars available

26:01to help buy the house so you only want to borrow forty grand to buy the house yeah trying to

26:06get a loan

26:06for forty grand is really hard so but my question is why don't you just i mean there are why

26:11don't

26:11you just lend the money out um because if you're selling to investors you can just be a be a

26:15hard money

26:16lender and that's essentially what you're talking about but you are doing the extra step of taking

26:20title yeah it goes it goes back to what you said before um you could lend the money and make

26:27six or

26:27eight or ten percent or twelve percent even you know quite comfortably um or you can do our strategy

26:33and our return on investment is phenomenal we we can make look on average we make over thirty percent

26:43roi wow so our rois for the effort for the work that we put in is is phenomenally high oh

26:52right

26:53because you're you're adding the whole wholesale aspect of it in that you're um you're increasing

26:58the price once you purchase it that makes sense we force the appreciation and get and get phenomenal

27:04return on investment um our a lot of our financiers are private financiers and they'll put in

27:11um you know fifty or a hundred thousand dollars into our strategy so they'll invest with us we'll

27:17pay them twelve or fourteen percent on their money a lot of the money that invests with us is uh

27:23ira

27:24accounts self-directed iras or 401ks things like that or people with money that uh that they just want

27:32to put it into a strategy and they don't want to be involved with the strategy so it's lazy type

27:37money

27:37so they invest with us we use that buy these houses and our our roi like i said is really

27:43high

27:44and when our investors look at our strategy and what we do and we take them through our whole pitch

27:49deck

27:50they look at and go this is unbelievable i don't have the time to go and do what you do

27:55but i'm happy

27:56to invest with you and you go do what you do so we make phenomenal returns and we pay our

28:02investors

28:02every single month and when they see our strategy they they nod and go yeah we understand why you're

28:07going to pay us back you know nice right on man well it is past the time we are we're

28:12at the 28

28:13minute mark so you gotta push into a quick question around are you ready okay all right starts with

28:18education it could be any form or any form yep could be a mentorship program you've been a part of

28:22a book you've read movie you've seen a conference you've been to i just need two recommendations one for

28:27general life wisdom and one for real estate uh for um i have i have a number of mentors but

28:35scott jelinek

28:36in um freedom accelerator program is phenomenal for what we do uh for both life and real estate it's

28:47it's really good um i've i have a mentor for raising money and i have a mentor for our fund

28:54we've got a

28:55we've got a fund um so but scott's the one that i would i would really like to put forward

29:04nice all

29:05right shout out to scott what was his last name there in case anybody else wants to reach out

29:09jelinek jelinek all right all right uh next question is about the us it's a big place there is a

29:15lot of

29:16opportunity out there give me you've already mentioned um midwest south but give me a single metro

29:21that you're most excited about investing in for this strategy

29:27but there's a number but birmingham alabama is really good st louis missouri and illinois are really

29:34good um ohio is a good area cleveland and toledo and some of those but uh the the single best

29:43one

29:43would be birmingham alabama probably birmingham alabama yeah yeah what is the big was it tesla or

29:50uh spacex somebody just is going down there i can't remember one of the big companies um

29:55said they're going to birmingham uh which is which is good for the city so that's good

30:01all right uh next question is about finding the deals um it all starts with getting in contact with

30:07seller and pending that purchase agreement and this is not something that we actually went in during our

30:11talk but um it is very important is the actual lead generation so how do you go out and actually

30:17find

30:17those deals we find deals on facebook marketplace uh for sale by owner on zillow and those other

30:26other um websites uh we do reach out to sellers directly we do direct mail our seo from our website

30:36does quite well um they're the they're the main forms that that we use surprisingly

30:48it's because we're we buy at a discount and we we uh negotiate of course we're trying to get the

30:55prices down as as low as we possibly can um but but we can buy direct so you know off

31:03the mls and

31:04um facebook marketplace we can buy direct from from um sellers and the mls we we negotiate with real

31:13agents um and those strategies all work we can find houses all over the place yeah so yes um for

31:22for single for single family residential i feel like uh mailers work really well for everything else you

31:27know i've tried mailers in commercial some sometimes it works some at times it doesn't but definitely

31:32works for single family and i love mailers because it's a it's a slow burn you'll send it out you

31:36get a

31:36bunch of calls but then it keeps trickling you know three months down the line six months down the line

31:41you'll get a call from a really good point i've gone into houses and to to buy them and i've

31:48seen

31:48our mailer up on the fridge and um i've looked at it and said oh we've changed our mailer three

31:53times

31:53since then so it's been sitting there for months yeah once and months and then finally the people

31:58have decided to sell the house and so they've given us a call so it's amazing when you uh when

32:03you sell

32:04sell these houses or when you sorry when you market to the houses when you send the mailers

32:08um is what criteria do you pull i'm sure you're using like uh prop stream property radar or something

32:13like that do you do you know owners who are 65 and over who have high equity um is there

32:19a certain

32:19list that you like to shoot i like high equity and long ownership so um as long as they've got

32:25more

32:26preferably more than 60 equity um and if they've owned the house for more than 15 years chances are that

32:33it's it probably has some maintenance and deferred maintenance and those two those two things mean

32:39that they're likely to be able to sell to us at a discount um when there's very little equity or

32:48they haven't owned it very long their retail sales they're more likely to sell to get the price

32:56they'll they'll need to put it on the mls and sell it retail but under that they're the and a

33:03lot of

33:03these people a lot of these owners that have owned the house for a long time don't want to go

33:08through

33:08the process of fixing up the house getting it ready for for retail sale they just want to you know

33:15get

33:15their money and move on and they can actually afford to do that and so they're you know they're the

33:20targets for us but it's equity and and time of ownership yeah makes sense all right that leads

33:27us to the very last question this is for the listeners you've given us a lot to think about

33:31i'm sure people want to reach out get in contact with you is a two-parter where can they find

33:35you and

33:35then what can they expect when they reach out so i'm on all the social medias with capablecapital.net

33:43is our website um so i'm on i'm a very active on linkedin and uh facebook um you can reach

33:55out to

33:55me directly there uh and sorry what was the other part of the question uh what can they expect from

34:04you when they reach out like what do you guys offer what's the uh um what's your pitch so i

34:09i educate

34:10i do a lot of education on um on our strategy but when they reach out uh they can talk

34:17directly to

34:17me and there's a lot of information on our website through our blogs and and uh information on the

34:24site itself about what we do it's targeted around investors people who have that lazy money that want

34:31to put it somewhere and get it to work and um and if they do have money that that uh

34:39that is sitting

34:40around and they're wondering what to do with it to make it multiply like i said we pay 12 and

34:4514

34:46returns so they're they're good quality returns uh and what they'll get from us we've we've got our

34:53whole pitch deck and everything but it's basically starts with a conversation just um we start talking

35:01we work out whether we're we're a fit for them and if they're a fit for us and if they

35:05are then uh

35:06you know we move on to the on to the next stage which is just to present and it's look

35:11it's

35:11we have a number of investors we have uh our business is is doing really well so it's not like

35:19we're desperate for for people um but you know the biggest problem like any real estate investor the

35:26biggest problem we have is availability to capital if we had more capital we'd buy more real estate

35:30um and so we're always looking to to raise money but we want the right people we want people that

35:37you know understand out what we do and and and want to you know a quality consistent safe return

35:44then they're the people that work with us if you're looking for you know a a multi-family cash payout

35:52and and getting 18 or 25 returns that's not for us that's not us we're you know we're not five

35:59years

35:59down the track and you get a great big payout that's that's not how it works uh with us you

36:05and you don't with us you don't have that risk of what if things go wrong and we've seen it

36:10lately

36:10in in commercial and multi-family where people have had to sell it and not return those big returns

36:17because uh the market has changed and and we're nowhere near that strategy we are consistent

36:25payers and and um and the return is is slightly lower than what you can potentially get in those

36:31other strategies but it's consistent and you're guaranteed to have the money at the at the end

36:36of the period not guaranteed we can't guarantee but yeah you know you're gonna get it all right well i

36:43will put that link in the show notes so if y'all want to reach out all you got to

36:46do is click the

36:46little more in the description it'll pull down that full description and in there you can find

36:50emmanuel's links all right man very much gabe i really appreciate the time and good questions

36:56liked it it's good absolutely yeah thank you for coming on um for everybody who's with us today thank

37:01you guys for showing up you are the reason we do this so if you guys have any questions reach

37:05out to

37:05me gabe the real estate investing club.com if you guys want to support the show just leave us a

37:10review

37:10a comment anything like that other than that i hope you guys have a great week keep rocking real

37:15estate and i look forward to seeing you on the next episode

37:20you

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