Shane Perkins - Ultimate Strategy On the Reality Banks Overlook: "If you have that kind of equity and you've worked and you've saved that down payment, then there's nothing telling me that you're not going to make your payments." When you have a job with a W-2, you fit in the traditional bucket. Traditional things for people with traditional jobs are fine. They are simple, and easy and everyone can buy them with ease. You want a loan, let's see your W-2, and see how much house you can afford. The challenge comes in when you are an entrepreneur. You make money, but it isn't nearly as easy as looking at a line on a document supplied by your employer. There are many more factors and a bit of gray area. These are the types of things that traditional banks get scared of. That is where the Ultimate Strategy comes in. To get entrepreneurs into homeownership, without the limitations of traditional banks. Listen as Shane Perkins describes how he is training more students to help entrepreneurs implement the Ultimate Strategy to achieve the homeownership they desire. Enjoy! Visit Shane at: https://TheUltimateStrategy.com Sponsors: Live Video chat with our customers here with LiveSwitch: https://join.liveswitch.com/gfj3m6hnmguz Calls On Call Extraordinary Answering Service: https://callsoncall.com Some videos have been recorded with Riverside: https://www.riverside.fm/?utm_campaign=campaign_5&utm_medium=affiliate&utm_source=rewardful&via=james-kademan Podcast Overview: 00:00 Issues with current mortgage system 05:36 Helping families become homeowners 08:58 Understanding mortgage pre-approval vs. approval 12:45 Real estate deals in different states 13:21 Working in your local market 18:39 Discussing home loan qualification criteria 20:11 Discussing home loan options 24:35 Benefits of refinancing a mortgage 26:57 Real estate investment strategy 29:52 Housing affordability concerns 34:22 How mortgage payments are managed 36:41 Investor strategies for real estate students 41:23 Discussing payment reminders with clients 43:56 Passion for helping people in real estate 47:03 Maximizing returns on home equity 51:38 The value of entrepreneurship Podcast Transcription: Shane Perkins [00:00:00]: I've created a strategy that helps people get into homes that don't qualify for traditional mortgage. I just realized that the demand is so high that I can't help everybody. So I'm creating an army of folks that want to go out there and help people become homeowners. If someone's looking for a real estate investment strategy, there's nothing better out there. It's consistent. Couple deals a month, two, three deals a month, every single month. There's always a demand for it. James Kademan [00:00:33]: You have found Authentic Business Adventures, the business program that brings you the struggle stories and triumphant successes of business owners across the land. Downloadable audio episodes can be found on the podcast link found@drawincustomers.com we are locally underwritten by the bank of Sun Prairie Calls On Call, Extraordinary Answering Service, the Bold Business Book, as well as Live Switch. And today we're welcoming, preparing to learn from Shane Perkins of the ultimate strategy. So, Shane, how is it going today? Shane Perkins [00:01:02]: It is going great. How are you doing? Do you have a good Mother's Day? Yeah. James Kademan [00:01:06]: Oh, yeah, yeah. That was. It just came and went. Yeah, it's so funny. My kids in sports, so any day, Mother's Day, Father's Day, whatever, Memorial Day, Labor Day, they're all. You're just traveling to some different grassy field where he's playing some sport. So, yeah, I imagine that's what a lot of parents are doing. Let's start with the ultimate strategy. James Kademan [00:01:29]: Shane, what is the ultimate strategy? Shane Perkins [00:01:31]: Well, I have been a real estate investor for 29 years, and I've created a strategy that helps people get into homes that don't qualify for traditional mortgage. And I didn't start that until 2001. And so I've been doing that for about 25 years. James Kademan [00:01:49]: Wow. Shane Perkins [00:01:49]: And so I call it the ultimate strategy. And I did it myself for many, many years. And. And now that my kids are grown and gone, and I've decided that I need to empower other people to help more people get into homes. So I teach other people how to do the ultimate strategy, and they use that strategy to go and help other people get into homes. James Kademan [00:02:15]: Right on. And is it the property that has the challenge getting lending happening, or is it the borrower, the people trying to get into the home? Shane Perkins [00:02:23]: You know, James, I say that we have a broken mortgage system. You know, they've been using the same system for 30 years and they're, you know, people change jobs, people start businesses. Business owners are notoriously turned down for mortgages because they are taught, as all of us entrepreneurs are to minimize their taxes. Right. Well, that means writing off everything that you can. And there's many things that you can write off. And at the end of the day, your tax return says that you don't make enough money to pay for a house, but you're sitting there paying $3,000 a month in rent. And so we know that these people can pay. Shane Perkins [00:03:01]: We know how to record their income in a manner that will finance them on a house. And when I say finance, we get them into a house. We are not lenders, so we use creative financing strategies, real estate investment strategies that have been around for, you know, a hundred years. And so that's what we do. We help people get into homes. James Kademan [00:03:26]: Right on. You know, it's interesting you mentioned the small business thing, because I remember the last house that I bought with my wife. We, the lender straight up told us, let's just put her W2 on there and just ignore your income. And if we get challenged by it, then we'll come back and figure something out. But it's better just to not even use the word entrepreneur or self employed. Shane Perkins [00:03:49]: It is. James Kademan [00:03:51]: I'm like, I'm pretty sure I make more money than her, but whatever makes. Shane Perkins [00:03:56]: But that's the way it works. And it is, it's a broken system. And I, you know, what I've figured out over 25 years of doing this program is that there's three components that make people pay for their home. And the first one is the most important one. And that's in that they're in the home of their choice. You know, there are owner finance programs out there on specific houses, but if that's not what you want, what's, you know, what's, you know, what's the factor there? Yeah, you can call yourself an owner, but it's in something that you're having to settle for. And so that's the first factor. The second one is that they must have equity. Shane Perkins [00:04:35]: And so we do require down payment. You know, it's similar to the older old school. Right. 20% down. We do some 15% down deals, but you got to have some skin in the game. So you got to, you know, save for a down payment. And that and the fact that you have income is the third thing. But documenting that income for a bank is far different than documenting that income for what we do. James Kademan [00:05:01]: Right on. So are people coming to you or are you having a cold call and reach out to people? Shane Perkins [00:05:07]: No, once, once you get this program up and running, people seek you out. You know, there's a statistic that I heard, and I can't verify if it's true or not because they're pretty close. Close lipped on their. And I've tried to verify it, but I had a friend of mine tell me that, that, that actually works with Zillow very closely. That said 7,000 people a day are turned down that have a 20% down payment on Zillow. And I don't discredit it. I believe that that's true. I just can't prove it. Shane Perkins [00:05:36]: But that's a lot of people. And they don't want to rent again, you know, that, you know, renting is. It's great when you need it, but when you have kids and you have a family, you don't want to be at someone else's mercy to just raise your payment or, hey, I want somebody else to move into there, you know, or we're going to sell or something like that. You want to give your kids roots, you want to give them a home. You want to be able to build a tree house or paint your girl's bedroom pink and your boy's bedroom blue or what have you, you know, you want to call it yours. And so we've recognized what it takes to be able to help people get into homes. And now I just realized that the demand is so high that I can't help everybody. So I'm creating an army of folks that want to go out there and help people become homeowners. James Kademan [00:06:26]: Right on. Let's talk about this army. Is this army people that are just looking to start their own business in this space, or is this other people that are already in the mortgage industry and they're looking for. Shane Perkins [00:06:37]: It's a little bit of both. Yeah, it's a little bit of both. So, you know, real estate investing, there's a lot of people that want to get into it, you know, and there's all these programs out there, and I don't, you know, wholesaling and fix and flip and burr methods, you know, buy, repair, rent and repeat and all of these different methods. And they're all good strategies, but they're a lot more competitive nowadays because there's so many people getting. Getting into it. So it takes you, you know, you have to go through quite a few cold calls. And the things that loi blaster, where they. You blast out letters of intent, agent outreach, door knocking, foreclosure list, there's all these different strategies. Shane Perkins [00:07:22]: And again,...