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Lou Brown on Turning Tenants into Home Buyers

Lou Brown on Turning Tenants into Home Buyers

Today, I’m talking with Lou Brown, Founder of Certified Affordable Housing Provider ,Owner of Trust Properties and CEO at Street Smart Systems.

Lou has a multi-faceted background as a real estate investor as he has been buying property since 1976. He has put time and effort into single-family homes, apartments, hotels, subdivisions as well as renovations for homes and apartments. These experiences give him a time-tested outlook on property management today.

Lou is also known for wanting to share his discoveries with others. Being a teacher at heart he enjoys sharing his discoveries with others.

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Topics covered:

  • (1:52) – Intro
  • (3:15) – Tell me about the companies you run right now.
  • (3:50) – Experience with buy & hold with residential property management
  • (3:58) – Buying wholesale  
  • (4:37) – What is unique about your perspective/approach in terms of operating?
    • (5:00)- Knowing the customer first, then “custom buy”
  • (6:15) – Why choose “customer first” approach?   
    • (6:28) – Customer has vested interests in outcome/ credit approval
    • (7:20)- 4 levels “Path to home ownership”
      • (Level 1-Rent, Level 2-Rent to Own, Level 3-Owner Finance, Level4-Platinum/Purchase)
  • (9:20) – Customer Profile
    • (9:50) – Clean up crew    
  • (10:07) –   How are risks managed?
    • (10:50) – Fulfilling relationship with client
  • (11:27) – How many people have been through this program?
  • (11:50) –   How do you handle “hiccups” during the process?
    • (12:20) –   Eviction process
    • (13:30)- Spreading payments
  • (14:20) – Contrast between traditional 3rd party vs. current property management experience
    • (15:00)- 2 options of sale cycle
  • (18:05) – Yield for the investor  
    • (18:30)- Profit centers
  • (20:41) – How is your program different than average rent-to-buy program?
    • (21:00)- Structured relationship
    • (21:48) -Resources/Education: “Never Pay Rent Again, the Path to Home Ownership”
    • (22:50)- Definition of “Affordable Housing”
  • (24:30)  Income vs. Credit Gaps
    • (25:00)- Stabilized income
  •  (25:15)-   Regulation and Liability
    • (25:50)- State vs. National laws
  • (27:15) – What kind of deal velocity within a year?
    • (27:33)- “Doing Good While Doing Well”- Book referenced
    • (28:15)- getdoinggoodbook.com (free book)
  • (29:15) – PM Grow Summit
  • (30:23) – How long have you been running the program?
  • (30:33)- Significant changes
    • (30:55)- Interest/Market rate changes
    • (32:06)- Creative finances
  • (32:29)- Creative Deal Structure
    • (32:35)- Existing financing
  • (33:50)- Specific Mechanics
  • (34:55) – ‘Existing Financing’ defined
  • (36:44)- Benefits of trusts  
    • (37:13)- Privacy: land trusts- each property purchased in own trust; control of interest
    • (37:48)- Asset protection; probate avoidance
    • (39:00)- Maximumassetshield.com/book  (free book)
  • (39:38) – How do you encourage people to gain access to deals?
    • (39:50)-  Focus on one area (5 miles from where you live)
    • (40:10)- Community-based
    • (41:33)- Post card campaign
  • (42:18)- How do you encourage people to think about the number of deals they will look at vs. act on?
  • (43:34)- Life story as an entrepreneur (low points)?
  • (47:00)- Talk to me about the role of mentorship in your life.
    • (52:20)- Contact information   
  • (53:25)- Closing

Resources Mentioned: