In this episode we welcome back a true real estate investing legend, Larry Harbolt is a nationally known educator and speaker on the topic of real estate investing. With over 35 years of hands on experience, Larry has literally written the book on many topics related to real estate investing.
Larry hosts a 4 day seminar titled “Never Step Into a Bank Again” workshop. During this four day event, Larry covers many specific topics related to building relationships, structuring deals and the nuts and bolts involved in bringing a deal to the closing table.
Larry teaches that before running right out and asking people to hold financing for you on their home, you must first take time to do your research. Larry’s research involves finding homeowners that have no debt on their home (100% equity). The second requirement for Larry is that the homes are not owner occupied.
One of the reasons his criteria focuses on homes that are not owner occupied is because those sellers generally incur a higher capital gains tax obligation when they sell their home. By agreeing to carry back a note and accept payments over time for their home, they can reduce the capital gains tax obligation and also spread it over many years. Larry reminds us to ALWAYS seek guidance from a Certified Tax Professional when making decisions that involve taxation.
Larry’s method involves understand the market, and by selecting houses that are ideal for long term hold as rental property. His beliefs are that “wholesaling” and “flipping” are a job, yet investing for cashflow with rental properties is true investing at its finest. To be successful, you must first locate the “right type” of house.
Seller financing is a strategy that is built around relationships, the seller must know like and trust you in order for you to be successful using this strategy. By taking time to build a relationship with a seller, an investor can negotiate a deal that creates a win/win scenario for both buyer and seller.
Larry’s methods involve presenting more than one option to the seller and then allowing them to pick which one is the best fit for them. When putting together these offers, Larry is focused on all options providing a true solution to the seller's problem. By taking the time to educate the seller, they are better able to make informed decisions. Many sellers don’t “need” the cash proceeds from the sale of their home, they really need the cash for something else.
An example used in the show is a seller with medical bills. The seller “thinks” they “need” cash for their home to pay those medical bills. Larry teaches them that he can make arrangements to cover those medical bills AND show them a nice return on their biggest investment (their home). Larry can then make payment arrangements with the hospital and often negotiate those medical bills down to a lower amount. When he is successful with that strategy, he saves himself money because those bills are his responsibility.
Larry also covers the importance of targeted marketing when prospecting for sellers. This is a huge money saver as well as a time saver.
Larry’s seller financing course brings in students from all over the country. This four day course is one of the few courses endorsed by the CashFlowGuys.
If you choose to take this course, you receive the following:
3 volumes with over 450 pages of Key Investor Techniques and strategies
14 Audio CD’s
4 Document CD’s
4 Bonus Money Making Audio CD’s
8 Advanced Quick Study Laminated Worksheets and Formulas
Plus 3 Bonus Advanced Strategy “Investor’s Secret” books: The Psychology of Effective Negotiating 101; How to Deal with Contractors Like a Rehab Pro and Shortcuts to Success – The Four Questions You Must Know To Succeed in Today’s Market
Once you become a student of Larry Harbolt he is available to answer your questions at any time in the future, you may also attend the course over and over as often as you want.