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So the big question is this, what would you do if money didn’t matter? So you had millions in your bank account, what would you focus on? Would you spend more time with your family, with your wife, with your kids? Take family vacations.
Would you pursue your gifts and talents and dreams? Serve your local community, teach others, serve your church. You see if what you would do if money didn’t matter, it was pursuing your gifts and talents and dreams to serve others, and that is probably what you should be doing.
The problem is most people are in the rat race, living five inches in front of their face with no time to pursue what they were born to do. That is the problem, and the solution is to develop enough passive income to replace your working income so you can quit your job and be free to live your life the way you were created to.
That is a solution and this podcast will show you how…
Alright, what’s up everyone? My name is Ryan Enk and welcome to episode number 45 of Cash Flow Dad Life. Today we’re going to be talking about real estate horror stories…
We’re coming up on Halloween, so I thought it’d be fitting to talk about some of the horror stories, but first, let me read the review of the week.
This one comes from Derek, a fellow New Orleans guy.
It says, “Being a Nola native as all Nolan natives, we are drawn to all things New Orleans. Ryan does not disappoint, but truly should make no other proud. On a recent drive from Atlanta to Monroe, Louisiana round trip, I listened to the first 35 episodes are very entertaining and educational and well worth the time. I too started adult life as a teacher. Have five kids, three girls, and landed a throat punch in grammar school unexpectedly scared the hell out of me…”
“Ryan’s stories and strategies resonate deeply with me. However, what strikes me most is his faith, integrity, and pursuit of virtue in business. The last bit makes it worthy not only of listen, but a following-Derek.”
Hey Derek. Thank you so much for that shout out and for the great review and ranking on itunes.
If anybody else would like to rank me, subscribe, write a review. I do read these reviews once a week and uh, I do love reading them and I love the support and the encouragement to keep on giving you guys great content.
So let’s get into today’s topic, real estate horror stories…
You know, don’t let this deter you from investing, but I see weird or bad situations a little different than other people. I see failures a little different than other people and I don’t actively seek out failures, but road bumps, failures, hiccups.
They’re really just the way that the real world and life pushes us to improve. There really is no other way. So as I share these stories, just know that I’m both grateful that they happen and it has made my journey exciting. Also, they make for funny stories to tell you guys.
So I’m grateful for that as well…
Now, real quick, if you haven’t gotten my book yet, the seven day real estate survival plan, how to create 10,000 out of nothing in less than a month, you are seriously missing out. You can get it for free if you pay the shipping at https://www.cashflowdadlife.com/7, or you can get it right now on Amazon for like, I think it’s like $17 right now on there.
If you get the book on Amazon and you love the book and you want to write a review, I will be giving away two free tickets, over a thousand dollars worth for the best review on Amazon to a cruise that we’re doing this November and I’ll be announcing the winner next week sometime so you can get it free.
https://www.cashflowdadlife.com/7 or on Amazon. So I have to share this with you guys kind of unrelated, but I just want to tell you about my day yesterday. I had to go to the DMV. I don’t know how many of you have gone to the DMV lately, but it’s like the worst experience ever.
When you walk in, there’s like 50 to 100 people waiting in line and I’ve never seen a sadder sorry or group of people in my life and I was probably the saddest and sorry is because my wife is having me do this juice cleanse thing and I hadn’t eaten the solid food in like 36 hours at this point, so I’m just sitting in this line and I’m waiting forever and I’m starving and I’m getting delirious. They say the average time it takes at the DMV is three hours, three hours.
Well, this particular day it took four and a half hours. Ridiculous. If there was ever an example of a business being in the Prius, stork age and resisting change, it’s the DMV. We live in the year 2018 and was finally my turn four hours later.
I asked the lady if I could email my proof of insurance to her and she said, we just got an email that we just got an email this week, but we’re not allowed to use it yet so you have to fax it.
So I said, “Wow, welcome to 1995. You guys are really gonna like this email thing. Anyways, I was thinking about this yesterday, but I bet there’s people that go to hell and I wondered if there was a line to get into hell. And then I thought I bet held his line and that it looks exactly like the line at the DMV…”
Anyways, for whatever reason, for about three hours I get stuck in this conversation with this 50 year old fishermen at the DMV who smells like a Hobo. Just cheap booze, cigarettes…
It was actually a really interesting conversation because I was seriously delirious from not eating, so it’s just kinda like going in and out and any rate at one point…I don’t know why he thought that I might be an authority on this topic, but he asked me, “What does a man my age need to do to meet women to date?…”
Now I’m no expert on fifth year old dating circles, but I do possess some marketing skills with real estate…
So I said, “Well, since you’re a fisherman, you have to think of it like this. Where are all the fish hanging out? When you go fishing, you don’t want to isolate yourself to an area where you may just get one fish, so you need to find the Benz and the tides, the reefs, all the areas where all the fish gather together to increase your chances…”
“So think of the type of women you would want to date. Where are they all hanging out?”
I kid you not. He thought about it for a second and without even cracking a smile. So I think he was serious without cracking a smile. He says, “Probably drug court.”
So I said, “Well, yeah, you know, if that’s the kind of fish you want to bring it in and try drug court, but you might have some luck at church too. I don’t know. Try them both and see what you like better.”
Anyways, here’s my tie in a real estate, a big part of real estate is looking for motivated sellers. These are your fish. So if the fish is the motivated seller, someone who really needs to sell their home fast, where are the motivated sellers hanging out? Oh, there’s a ton of techniques and strategies based around this concept.
But one of the best places to find motivated sellers is on publicly display lists of people going through pre foreclosure.
So I’ve had a great deal of success with real estate printing out these lists and visiting people at the addresses of pre foreclosure to see if I could either save them from foreclosure with some kind of creative financing or if I could view the home before it went to auction to see if it was worth buying.
Many of my quote unquote horror stories come from these pre foreclosure list adventures. But each one has a great learning lesson at the end. The first story is the tail of the car. That wouldn’t start. So the first one came from visiting this lady the morning before the house went into foreclosure.
Now it was a little late on this one. Normally I like to visit them a few months out, but I was about to go to the auction and I had a list of houses I hadn’t seen yet…
So I go to this one house and it looks like there’s a car in the driveway. So a knock on the door. This lady answers. And we say, you know, I had a buddy of mine that did it with me, so we’re talking to her and saying, “Hey, you know, I just, you know, I was wanting to knock on the door because this house is actually listed on public auction, uh, as going to auction today…”
And she was like, “Oh my goodness, I didn’t know it was the day…”
I was like, “Well, what are you going to do?” Because she could file bankruptcy and save it from going to auction.
And she’s like, “No, I’m not going to do anything. I’m just going to give it back to the bank.”
And so I was like, “Alright, well look, you know, I’ll bid on the house because, you know, maybe there’s something that we can work out that would be a more comfortable situation for you.”
“…Either way, if the bank gets it back or another investor gets it back or I get it back, you know, you’re probably gonna have to move out of the house. But I can kind of work with you and maybe, um, you know, help you find another place and help arrange, get your stuff out, you know, I just want to make it smooth because I’m not there, you know, I really don’t want to kick anybody out of their house and I want everything to be amiable if I get the house…”
So I ended up getting her name, her number and she was cool with us contacting or if we ended up getting the house. So we ended up getting this house and decide to meet with her.
We met like at a coffee shop and she says, “Well, what do you want to work out?”
“You know, obviously you’ve got to find other arrangements and we can give you some time, can we give you, you know, two weeks to get out of the house…” And she asked for 30 days. I said, “Okay, well let’s sign a, just a 30 day lease. And um, you know, work out something completely reasonable.”
Now rent in the area was like $2,000. So we made her pay $500, you know, really giving it a break so that she could use her other cash to make arrangements to get into another place because I really just want her out so I could slap some lipstick on the pig and put it back on the market.
So she says, “Alright, great.” You know, signs a lease, gives me a check.
And then she asked me if I’ll blow in the breathalyzer in her car or her car wouldn’t start…
Turns out she was a raging alcoholic and they had put a breathalyzer on her car so that she couldn’t start her car without blowing in the breathalyzer. So I was like, “No ma’am, I, I can’t do that. And by the way, you being drunk makes this contract null and void, but you know, I trust that you’ll pay it and you know, you’ll have to find some arrangements, some sort of way…”
It ended up being a nightmare. It took three months, get her out of the house. It was just ridiculous. We’re holding it for way too long.
We had, you know, kind of be strong about it and she, she, she was just a raging alcoholic, so that was when I learned the lesson that I will never buy a house with someone in it at the foreclosure sale.
And furthermore, if there is someone in it, I will never rent it back out to them because they’re, I forgot to mention this- her check also bounced…
So it wasn’t like she was paying us for a couple months while she was there. The check bounced. She had no money. And so it was just, it was just a tough situation. It was a situation I didn’t want to be in.
I didn’t want to be in a position where I’m kicking somebody out and, uh, I definitely didn’t want to be in the position where I’m being asked to borrow blowing someone’s breathalyzer. So that sort of stumbled horror story number one…
Horror story number two is the tail of the Samurai Sword. So this came up because I was visiting this house three months out of the auction and so three months out of the auction we go to this one house. And uh, the people inside the house, we’re not the actual owner, they were the tenants and turns out they were screwing their landlord.
They hadn’t paid rent in like nine months because they hadn’t paid rent…
He was also unable to pay the mortgage company. So the house was foreclosed. And so we ended up getting this guy’s contact information. Turns out he was living in like a boat on the river, like in a yacht on the river. He was an ex Va. I’m not an expert. He was a va.
He was a veteran, and I thank him for his service. And he was, you know, he just wasn’t there mentally really. And so we called him in the conversation was a little weird, but we agreed to meet him out on his boat to discuss what we could do to save him from foreclosure.
And what I wanted to do was take over all of his back payments, which would also grow his credit and take over the, you know, all just basically take over the mortgage on like a, like a assumption of mortgage type situation which would help him out, which would improve his credit.
And I get the tenants out of there, uh, that were kind of screwing them over. So we walk onto this guy’s boat and it was the scariest situation ever. I think we ended up nickname and the guy dusty balls, billy, I don’t remember. He was just, he’s really old and really weird.
You could tell he wasn’t all mentally there, but the first thing we noticed on the boat is that the walls are decorated with weaponry. There’s a samurai sword over the window, antique guns all over the place. And I looked to my right and he’s got on a huge 50 inch tv.
He’s got the matrix playing in slow mo as we’re talking about his options and what we can do to help save them from foreclosure. He’s pacing back and forth, he’s sweating, he’s literally sweating. Sweat is coming off of his body and he’s going between shouting at us and being angry and being completely nice and like, thank you…
So it was a split personality type thing. It was like the scariest thing in my life. I was so afraid he was going to grab one of those samurai swords off the wall and start swinging it at me.
So we, uh, you know, it was scary, but we ended up getting out of there and we got out of there with the contract sign, uh, in, in one that was really going to help them out.
But I told myself I will never do this again where I’d meet somebody at their location.
So the lesson that I learned from that was if the seller doesn’t live in the house, then meet them in a neutral location, like a coffee shop or something like that…
So those are it guys. Those are, those are my horror stories coming up on halloween. My real estate horror stories, all of them have great learning life lessons and all of them have been tremendous adventures.
I’m just glad that they’re over with… But don’t forget to get the book at https://www.cashflowdadlife.com/7 and enjoy your weekend coming up guys. Take care.
Thanks for listening. Please remember to rate and subscribe. You’re going to want to listen to every episode as soon as it comes out. It hasn’t been an idea or strategy that can literally change your life.
Listen, don’t miss out on the free investor pools that I have on my website https://cashflowdadlife.com/. So go to https://cashflowdadlife.com/ gets a free swag and lists and hit me up. If you want to talk about how we can get you out of the rat race as soon as possible. Until next time. My name is Ryan Enk and this was Cash Flow Dad Life!