BLAIR HALVER

BLAIR HALVER

Shift #1: The house really DOES NOT MATTER.
(If you're just tuning in and you haven't read the previous parts of this series, you can head back to the start here.)

Blair Halver

Jan 25, 2020
I know this is going to really mess some of you guys up. Especially if you’re coming from the fix-and-flip crowd, or any other kind of “conventional” real estate investing.

But one thing I’ve come to realize after doing a great number of deals is that the house itself has very little to do with the outcome of the deal.

It’s all about the financing on the house.

And when I say “financing”, I mean the numbers. The economics.

Because even if you’re dealing in “all cash” deals where there is no actual financing involved, well in my opinion, even “all cash” is a form of financing (albeit one of the least advantageous forms of it, but we’ll get to that in a minute).

Remember that movie, The Founder, with Michael Keaton, it was the story of Ray Kroc and how he built McDonald’s to the empire it is today.
Well there was a scene in that movie where Ray had a paradigm shift which finally made his business skyrocket.

And that was when he realized what business he was really in.

You see, Ray thought he was in the hamburger business. But in reality, he needed to be focusing on the underlying asset, which in his case was the real estate.

Similarly for us as real estate investors, when we stop focusing on the hamburger, I mean the house, and instead start focusing on the underlying asset, which in our case is the financing, then our business can start growing exponentially as well, just like McDonald’s.

Houses are hamburgers.

The money is in the financing. Whether it’s all cash, or no cash. It’s all about the financing.

Because think about it — who’s got all the big skyscrapers downtown?

The banks.

And what game are the banks playing?

The financing game.

They care not about the house.

They care about the financing. Flows of cash in and out, stretched out over really long periods of time, or transferred and moved around in really short periods of time.

And so if the house doesn’t matter, because the house is just another hamburger, and the real money is in the financing and the economics of the deal…

Do you really need to go see the house anymore?

No.

You don’t.

And if you don’t need to see the house anymore, and you’re not going to move into this thing yourself, and you’re just going to turn around and re-sell it soon after you buy it, then…

Does it really matter where the house is located?

No.

It doesn’t.

Are you following me here?

Now I can hear some of you "wholesalers" objecting:

"How are you going to sell these houses fast enough if you don't already have a cash-buyers list built up in whatever area the house is in??"

This is another instance where we do things a little backwards from conventional wisdom - 

We use what we call our "Deal-Driven Marketing Process"

In other words, we START with the DEAL, and then use the deal itself as the bait to attract the exact right buyers for that deal, whether it's an investor buyer or an owner-occupant buyer. 

In my experience, it's easier to find a buyer for a house than it is to find a house for a buyer. 

That's why in the realtor world (which I'm NOT a part of), the listing agents always make more money with less work, while the buyer's agents are out there working like dogs for small paydays here and there. 

Because the listing agents are finding buyers for houses, while the buyer's agents are finding houses for buyers. 

You see what I mean?

So because we always START with the DEAL, and we don't need to have a buyers list built up before we get the deal under contract, then it doesn’t matter where the house is, and all of a sudden you can make money on deals no matter where they are.

This opens up the entire country for you to do deals.

So you can basically “skim the cream” off the top of the entire U.S. housing market, and only do the deals that are the absolute highest profit and lowest hassle.

I’m telling you, this is probably the biggest mindset shift I’ve had in my 10+ year career in real estate investing.

Because when you can do a deal in middle-of-nowhere Nebraska, and still make money by simply making a few phone calls or putting up a few online ads…

Then all of a sudden you can take yourself out of the local hustle and grind altogether.

Because nobody else is doing this.

The entire conventional world of real estate investing — wholesaling, landlording, rehabbing — is stuck in the old way of doing this business LOCALLY.

Meanwhile we’re over here doing more deals with less hustle, less hassle, and less drama, all across the country.

Ok I think you get the picture here. Let’s move on to the next shift you need to make (which might really surprise you)...

Written By
Blair Halver

The lifestyle real estate investor, famous for creating highly profitable house-flipping businesses without having to hustle 24/7. 
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