We're talking with Mitch Stephen of 1000houses.com who's built a thriving business that revolves around selling homes for cash flow with no tenant problems. It's the art of selling with owner finance and he's mastered getting private money, finding and selling homes in San Antonio Texas on a Promissory note. In this episode we'll go over:
- exactly how he got started flipping 45 homes in his first year with no money
- Where he puts his profits for long-term generational wealth (its not single family houses)
- How he finds buyers- How to conquer new investors most troubling obstacles
- The right attitude to have
- How to abide by the Dodd-Frank laws
- How to perform wrap mortgages
- How to make your lenders happy and much more.
www.1000houses.com
Episode Transcript:
If you can live off the down payments and your monthly cash flow just stacks up in the bank account, why would you ever sell a note?
PAUL DOCAMPO: All right, welcome to another interview at Deals Today Podcast, and I am your host, Paul, at RealEstateAudios.com. We’re going to be chatting with Mitch Stephen at 1000Houses.com. The reason why his url is 1000Houses because, at the time, he’d flipped over a thousand houses. Today, he’s flipped over 2000 houses. He flips about a hundred a year, and he’s been doing this for 26 years at the time of this recording.
What does he do? Does he traditionally flip, because the title says that it’s a no-maintenance, no-tenant cash flow, and he doesn’t do the traditional buy-and-hold, you buy it and you rent it out. He sells them, and he sells them on payments. He creates that steady cash flow with absolutely no maintenance in place, absolutely no tenants in place. Over the years, he’s developed his own structure to find money to pay off these private lenders to fund these deals, to find the deals, and to find the buyers and to get them to make the payments to him and what kind of percentage and down payment. We’re going to talk about all that, his whole model of doing this, why he does it, and what he does for the long-term wealth because you might be thinking, well, that only lasts for 10, 20, 30 years. He does have something on the backend that he does for creating that long-term wealth, and that is storage facilities. We talk a little bit about that towards the end. So, tune in for the whole thing, and of course, if you’re not on my email list, go to RealEstateAudios.com where you can get my newsletter, a few free gifts on marketing and copywriting, and let’s get to it.
(0:01:53.8) Mitch, in your blog you talk about how in your first year you did about 45 houses. That’s quite an achievement. How did you go about doing that? Forty-five houses in one year. People struggle with getting one house in one year.
MITCH STEPHEN: My biggest problem was funding. But then it was also a different time back then when, if you had good credit, you could apply for any credit card, and they just checked your credit, and if you had good credit, they gave you a credit card with all the cash advance, maximum limits, and everything. I learned real quick that I could apply...I applied for like 45 credit cards and I got all of them, and I had great credit. Even through all my business failures, I always paid everyone back and I never missed my payments. I kept my name. It was very important to me, and it paid off because I have 45 credit cards that, if I wanted to take a week to go collect the cash advances off of all of them, I could put like $500,000 on my kitchen table. And no one would loan me any money because I didn’t have a track record. I had good credit, but I didn’t have a tr
