Welcome back to the Discount Property Investor podcast. Our mission is to share what we have learned from our experience and the experience of others to help you make more money investing like a pro. We want to teach you how to create wealth by investing in real estate, the discount property investor way. To jumpstart your real estate investing career, visit freewholesalecourse.com, the most complete free course on wholesaling real estate ever. Thanks for tuning in.

David: Alright guys welcome back to another episode of the discount property investor podcast where we teach you how to make money in real estate and how to buy properties at a discount. You make your money when you buy, you get paid when you sell. You've heard me say this a million times now if you are an active listener but that is how we make money in real estate. Today I am joined by a special guest Mr. William Tingle and Mr. William Tingle is with sub2deals.com and he's got an amazing YouTube channel, that's actually where I discovered him at. It's Sub2Deals is the name of the channel and I'm excited to have him on today to talk about sub 2 deals. Let's do it. William thank you for joining, welcome to the show my friend. What's going on?

William: Don't even have my mic on.

David: There you go, there you go. We got you buddy, no problem. I'm happy to have you.

William: I'm a real estate investor I'm not very smart. Fortunately you don't have to be smart to invest in real estate.

David: That's exactly right.

William: But thanks so much for having me on, I really appreciate it.

David: Hey we're happy that you're here William. So again I discovered your channel and you had some cool content and I'm glad that you were able to come on. I reached out and said you know let's get this guy on the show, let's learn a little bit more about you know William as an investor and you've been putting out tons of great content and I wanted to just talk a little bit about sub 2 today as well man. So let's start with you know tell us a little bit about your history and how you got started and how long you've been in the game and we'll go from there.

William: Okay great. Same stories as a lot of people I was in a job I hated, I've been in the restaurant industry for 20 years, picked up a Carleton Sheets course on late night TV in 1999 and the only difference between me and most people that bought it is I opened it up and did what the guy said to do and started buying houses and quit my job in 12 months and I've been a happily unemployed real estate investor since 1999. So that's the short version of my story but for about 10 years, bought 30, 40 houses a year in Macon GA and in 2010 left the country, lived in Belize for several years, started buying remotely, really refined the process and have bought about a dozen houses a year since then. Nothing real big but like I said really refined the process

David: Consistent though.

William: Yeah, since then.

David: Consistent. So when did you start? What year did you say?

William: I bought my first house in August of 1999.

David: Holy cow I was like a freshman in high school, maybe even in 8th grade at the time.

William: Yeah.

David: You've been in the game for a minute man, I like it. And one of the things that I really love the most is the consistency. It doesn't sound like you were doing 2, 3 hundred houses a year but you've been consistently buying houses since 94'. Holy cow that's awesome.

William: Yeah.

David: You've probably bought 5, 6, 7 hundred houses at this point right?

William: Yeah yeah we're somewhere between 6 and 7 hundred right now. You lose count after a while but- and that was the key thing. You know the reason I wanted to be an investor, I wanted to do something different. I worked 70 hours a week and I wanted a life and you know you don't have to buy 2 or 3 hundred houses a year to have a really good income and travel and just enjoy stuff. My wife and I right now we're on what we call the epic road trip. We spend a few months at a time in different places, we're hanging out in Apollo Beach FL for the next few months and I don't know where we'll go after that but we've been doing that for the past year so you know just having a good time.

David: Man that is awesome, that is phenomenal. I wanna just take a second and applaud you, let's get some sound effects in here. The reason I love this and I want to applaud you is because a lot of people that get into real estate and they get into real estate because they want freedom, they want to be their own boss, but you know what happens to most people, they go from a 40 hour job to 60, 70, 80 hour job and you know it's to them it's about doing more, making more, and a lot of people are very successful.

William: Right.

David: Hopefully people listening to this podcast will pick up a couple tips and learn how to do this and they'll be very successful but they lose sight. It's not about success necessarily, it's about losing sight of freedom. And again I want to applaud you because that's what real estate can provide so let it. Quit chasing the next deal or the next zero in your account, you know the next comma whatever you wanna call that. So very cool William, super happy to have you. Let's talk about sub 2 man. Thanks for giving us your back story too man, that's really interesting. So sub 2, why sub 2, and you know what are the benefits of it?

William: Right. Well when I got started I was like most of you investors, I had shiny object syndrome and I popped from thing to thing and when I discovered sub 2- I mean even though when I got started I had great credit and I had access to a little bit of cash. What I learned very quickly was if I wanted to replace my job income, the banks would only give me so many loans probably before they cut me off so I really couldn't create the lifestyle that I wanted. When I discovered subject 2 I realized that I could buy as many houses as I wanted. A lot of times I didn't have to have any money, people just hand you the keys, they walk away, my credits never an issue so I could literally just buy whatever whenever. I didn't have to apply for a loan with the bank, hope they would say yes and do that sort of thing. So when I changed my business model in 2010, I literally just took a legal pad and wrote pros and cons, the things that I like and the things that I didn't like about the past 10 years of investing trying to be a transaction engineer and what it really came down to was taking over payments. In a lot of cases, we bail people out of foreclosure, we were able to help a lot of people and that's what I really liked and I like selling with seller financing so like I said we really dialed this thing in. We can buy zero equity properties and make 50, 60 grand off of them in a 36 month period, we call that the 12 house blueprint. So you can create a half million dollar a year income literally buying 12 thousands a year, that's what I teach my students.

David: Holy cow, you could do this with- you can do it with zero equity.

William: With zero equity, you absolutely can.

David: Holy- alright so you gotta give us the 30 second, 45 second spiel on how this works.

William: Okay.

David: Obviously we're not gonna- we're not gonna be able to take this and run with it obviously but I'm curious to just see like the basics like you know the blueprint on it.

William: Sure, well the very basics on this thing: if I have a seller that calls me up today maybe it's someone in the military with a VA loan, they got transferred into their town 2 years ago, they did what most people in the military do, they go out, they buy a house, they pay full price, they put nothing down, and then in this scenario let's just say it's a $300,000 house. They bought it for 300, they financed 310, 2 years later they get orders, they owe 305, it's worth 300, maybe now it's worth 320 but they have- they don't even have enough equity to buy- to get a realtor. They call us up, we say yes we can take over your payment.

David: Isn't that crazy? I just gotta stop you for one second. Isn't that crazy? People will have a little equity but not enough to even hire an agent and they get stuck.

William: Right.

David: And you help them.

William: That's right.

David: That's awesome. So I'm sorry, I have a bad habit of interrupting.

William: That's okay.

David: I definitely do it, I won't do it again but I just I wanted to highlight that. Holy cow, and you can help them.

William: Yes we can.

David: This is great, so go ahead please.

William: So I know the markets hopping right now but there are pockets around the country that aren't so much and that's where you've gotta focus. But let's say in this scenario again the house is worth 320, they owe 305, they only have 15 in equity and you and I both know that's not real equity. By the time you factor out cost to sale, they got nothing. They're in the military, they don't have a ton of cash, they can't come out of pocket and pay a realtor. What do they do? They gotta be across the country in 60 days. So they call us up, we take over the payments. The house is legitimately worth 320, we may mark it up just a little bit say to 330, 335, just a tad. We'll market that house, we owe 305. We get a buyer, get them in, they give us 30,000 down, about 10%. We now have a note from our buyer for 305. Guess what? We owe 305. So we're at the same level here at this point but-

David: But you got the 30 though.

William: We pocketed 30 on the front end. Now our loan is at 3%, our buyers loan is at 6%, we create a spread on the interest rate. We typically will get 4 to 5 hundred a month in cash flow okay. Now so we got 30 in our pocket, we've got 4 to 5 hundred a month in cash flow, we both owe the same amounts on our notes. Our note pays out much faster than our buyer because we're 2 years in plus we've got the interest rate spread. So we work with our buyer to be able to get financing within the next 36 months, you're in the 36, we collect $500 a month in cash flow, that's another $18,000. And on the back end by the time they refinanced, we will have built up another somewhere around 10, 12 thousand dollars in equity. So we got 30 on the front, 18 in the middle, and another 10 on the backend. What's that give you? Another- so $58,000 profit on a zero equity deal in 36 months.

David: Holy cow. Well that is awesome. Okay so I'm taking notes over here. So one of the things that I really liked about this strategy is you're getting people to put down roughly 10%.

William: Right.

David: And on a higher priced home that's 300K, that is 30 grand. So one of the things that I was gonna ask you is how do you prevent people from going in and tearing the house up? Well if they're gonna give 30 grand, they're gonna take care of that place right? And then another question- I already answered my question, the other question that I had right away was how do you convince the seller that you or anybody that you assign or lease or lease option to isn't going to tear the house up? So how do you respond to that? To the seller of course.

William: First of all we're dealing with a motivated seller, these guys have to be across the country-

David: They gotta move, got it.

William: -like I said in our example we're talking about VA loans so they have few options. If you do get the question, well first of all I'm not gonna lease their house, I'm not going to lease option their house, I'm going to sell this house with seller financing.

David: Seller financing.

William: There isn't gonna be a tenant inside this house.

David: Okay.

William: These people have ownership.

David: So there's no property management essentially with this.

William: No, not at all.

David: You're gonna buy it.

William: Right

David: And then you're gonna sell it, but you're buying it on terms and you're essentially selling it on terms.

William: We sell on contract for deed, we retain legal title and give them equitable title and all the rights of ownership.

David: Man I love that, okay. And then when you buy it, you are buying it subject 2 right?

William: Exactly.

David: To the existing loan.

William: We get the-

David: And you're essentially helping people out. Are you paying them anything on top ever? Let's say that they were to give you the deal at 290 and it's worth 310, will you give him 5 grand or no?

William: Sure we will. If it makes sense for us, we'll do it. If they need moving money, if they insist on- in this scenario that I just gave you, we know we'll collect historically between 8 and 10% as a down payment so we'll get 26 to 30 thousand dollars down so I'm cool with giving that seller up to the amount we would get from our buyer. If I go into this deal even with nothing in my pocket upfront that I'm creating a $500 a month cash flow and that 30, the money that I had to give my seller upfront, I'll recoup on the back end anyway, it doesn't change my overall profit on this deal but it's just like someone- even if I get nothing upfront, someone's handing me a deal that'll get me a check for $500 a month and I've got nothing in it, will I still do that? Absolutely I will.

David: Yeah that makes perfect sense man, I love it. So you mentioned VA loans 2 or 3 times now, is that the bread and butter? Is finding these people that have these VA loans?

William: Well you know if it's-

David: Because of the fact- oh please go ahead.

William: No I was just gonna say that 2/3 of our business was foreclosures up until moratorium and then those went away so you have to look for other things to focus on. Now, VA loans are great because a lot of times they're no equity, they're highly motivated, but now that's foreclosures are back, well it's a different story then.

David: Yeah.

William: So now you can work with too.

David: So on the foreclosure topic, William you've been investing longer than me but I've been in this game 18 years, I got 90 rental property units and I've done about 750 wholesales, a 1000 transactions, so I know a thing or two okay? And I have always thought that it made more sense to go and market and contact and connect with people that are in pre foreclosure versus foreclosure but what's your take on it? Obviously foreclosure means that they're much closer to losing it, right? So what- I mean just real quick, what are the pros and cons of foreclosure versus pre foreclosure? Or are you grouping these in the same bucket?

William: I group them in the same scenario. I mean depending on what state you work in, for example I've done a ton of business in Georgia, well Georgia's got about a 28 day process start to finish.

David: That's quick.

William: Listen, they file on the first Saturday of the month, it comes out in the paper on the first Tuesday of next month, it's at the auction.

David: Holy cow.

William: You know there's no time to mess around so what's the pre foreclosure timeline there? It's not very much.

David: No.

William: But you come to Florida where I am now, you know foreclosure can drag on a year or two so it's a much longer period of time.

David: It can go that long huh?

William: Right.

David: Holy cow.

William: But here's the thing with me is that I focus on being able to help people in a very short time frame because so many investors don't know the things they need to know to stop an auction a day or two beforehand. So you know I could- if somebody gets filed on today in Florida and they just consult an attorney, they know they've got a year or two before they have to think about anything, they're not highly motivated, they know they can ride for awhile and Georgia is a different story but the same token, people in Florida a month before the auction, their degree of motivation goes up quite a bit. So it depends on where you're working, if you want to call it pre foreclosure or foreclosure, they've got an issue and we just want to talk with them about that.

David: Yeah and that's really what I was getting at. You know regardless of how close they are to losing it, they're having issues and they know they have issues probably well before we know they have issues and that's really all that matters. Obviously I'm not arguing, I was just curious on your opinion because I'm always you know always curious. So this is really awesome, the ability to take a property with little to no equity, buy it on terms, help a seller win, sell it on terms, help a buyer win, and get paid 30, 40, 50 grand in the middle as the investor. Huge win, triple win, everybody wins. You get to make money, you get to help people, and I think a lot of these- you know a lot of real estate podcasts and shows and this and that, they're all about me me me me, how do I get paid? How do I make you money so you get paid? And that's great and all but people lose track of how do we also help people in the process? It makes it fun when you help people and get paid, and that's what you're doing and once again I love it man. This guy here, you are crushing the game William, thank you so much for coming on the show. Tell us about sub2deals.com, tell us about your YouTube channel. You guys are putting out great content.

William: Right. Well you know I got started as an investor 3, 4, 5 years in. I was doing very well, quit our job in the first 12 months and I was just getting bombarded with questions and phone calls, how can you help me? What can you do? And so I put together a training course 'The Ultimate Sub2 Guidebook: How to do it start to finish" and that's what we offer in addition to a couple of other courses at sub2deals.com and we put together our YouTube channel, we give a ton of free content, new videos every single day over there so we would love to have people come over, subscribe to our channel, just go to YouTube, type in sub2deals, that should be the number 2, deals, and subscribe check us out so we'd love to come over there.

David: That's sub S-U-B, number 2, deals, D-E-A-L-S, all one word.

William: All one word.

David: That's the channel name guys: sub2deals, two as the number, all one word, great content daily and then go just check out sub2deals.com, they got some great stuff over there with courses and just a bunch of content to help you guys learn how to do this, how to work with Will, how to use his strategies, how to make money, and guys ultimately how to help people that need our help. I think this is amazing. Will any parting words for the audience today? And by the way I'm super grateful for your time, thanks for coming on my show and you've provided a ton of value already and this has been a great episode.

William: Well thanks David. The last thing I'd like to tell everybody, we recently started a very inexpensive coaching program. I mean a lot of people can't afford to put out five figures for coaching.

David: I get that.

William: But I've been coaching for almost 20 years. We started a coaching program, it's called '7dollarcoaching'. The number 7.

David: Holy cow.

William: 7dollarcoaching.com. I actually answer all the students questions on a weekly basis and there's just a lot of content there. They can go to 7dollarcoaching.com and check it out. And beyond that I would just say this: you can't buy houses if you don't talk to sellers. So my parting line on all of our podcasts is talk some sellers and buy some houses.

David: Man I love that. Talk to some sellers and buy houses. That is so true. William real quick, one of the first things that one of my original coaches, I've had several coaches and constantly have coaches, I'm sure you're like that too, you just love to take in new information.

William: Right.

David: But one of the things that one of my very first coaches told me that stuck with me was the amount of offers make is gonna equal the amount of money you make. How do you make offers? You talk to sellers.

William: Right.

David: So I love it, you nailed it, very cool. William thanks for coming on the show. Really quick what was the last domain you had mentioned? 7dollar, is that S-E-V-E-N or is that the number 7?

William: The number 7.

David: Okay.

William: 7dollarcoaching.com.

David: 7coaching.com guys check it out. William thanks for being a guest on the show, tons of value, love the YouTube channel keep it going and we'll have to get you back on the show down the road to get some updates but this has been an amazing episode, thank you so much for coming on today.

William: Thanks David I appreciate it, enjoyed being here.

David: Alright guys you heard it from the man William Tingle here and he has got a ton of content. Don't forget check out discountpropertyinvestor.com for all of the podcasts, we have transcriptions over there, we even have some free courses to help you get in the game, learn how to market and how to get that first wholesale deal and with that, signing off.

Thanks for listening to the discount property investor podcast. If you enjoyed this episode, please like, share, and subscribe to help us reach a wider audience to jump-start your real estate investing career, visit freewholesalecourse.com- the most complete free course on wholesaling real estate ever. We would also appreciate it if you left us a review on iTunes or Stitcher. Thank you in advance for your support and remember you make your money when you buy, you get paid when you sell. Now let's go build some wealth.