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Linda: Congratulations Lou on being this
month's cover story in Mentor's Magazine!
Lou: Thank
you Linda… I consider this to be quite an honor. Especially because of the
process I went through to be picked!
Linda: It is well known that your students
have made large sums of money investing in Real Estate… What I'd like to know
is how did YOU get started?
Lou: Well,
it's an interesting story. I was raised by my Mom and in those days we lived
in a very basic "no frills" type of apartment. Money was definitely
an issue because we had very little. I realized early on if I was going to
live a better life, then the old axiom of: "if it is to be… then it is
up to me" was a saying I had better learn to follow. I was intrigued by
a married couple who were friends of ours. They lived in a duplex, then later bought it. They lived in one side and rented
out the other. Over the years they bought one, then another, then another.
They moved into a big house, bought a luxury car and it proved to me there
was a good plan in what they did.
Linda: So you saw the power of Real Estate
at a young age. What did you do?
 Lou: I found
a Realtor and went about finding a house. I was only 19 years old at the
time. Mind you I had never lived in a house before, but I still wanted to own
one. I was working for the American Red Cross and made very little so it
would have been impossible for me to qualify for a loan. I looked for a
property where I could take over the existing loan and make their payments.
As luck would have it, I found a great brick house, two bedrooms, two baths and invited my mother to become my first tenant.
Linda: What an opportunist you are!!! What
happened with that property?
Lou: I
started with a new employer and they transferred me to Atlanta. I
decided to sell and made a 37% gain in just 1½ years of ownership. When
moving to Atlanta, I
found a Realtor who understood what I wanted and found another property –
again taking over the existing loan and buying at a discount.
Linda: Lou, you're also well known in the
area of deal structuring. Do you buy many deals today in this traditional
way?
Lou: No, I do
still buy through Realtors, but most of my deals today are found by
generating my own leads and buying directly from the seller. We have a
process to find out about houses that aren't even on the market. I've found
its better not to have competition. You do better deals that way.
Linda: Is this what
made you decide to do real estate deals full time?
Lou: I love
real estate, and it has made me and my family very
comfortable! I found that if you took just a little time to learn what to do…
then the rest was easy. It is just a matter of finding the courage to
"Do it!" Real Estate Investing has provided for me a beautiful home,
nice cars, incredible vacations and a lifestyle that most people would love
to have. In my 29 years of investing, I've learned a thing or two about
making huge piles of money. No doubt about it: Real estate is the ideal
investment for massive passive cash!
Linda: Alrighty
then… I want to know how to do what you do. I'm going to pick your brain for
secrets. Do you buy using any particular strategy?
Lou: Oh yes!
The key ingredient is caring about the seller. When you do that… everything
falls into place. I really like to structure the deal by solving the seller’s
problems while getting them to carry back owner financing and taking over
their existing financing. That’s part of my process. If there is existing
financing… I want to use it. Other equity is to be paid over time or at the
end. Cash is King and we use it sparingly. If I use cash, I want to get at
least $2.00 in equity for each dollar of cash. We have a formula that shows
the seller why this offer makes sense. It has been widely used by us and our
students and they are fascinated by the results. It really works in all parts
of the country.
Linda: It sounds like you have an
incredible system. Tell us more.
Lou: Yes, I
do have a good system. In order for you to make the most money possible, you
need a proven strategy. I've created a simple, easy to follow process and it's fool proof. It’s called the Street Smart Wealth
System.
Linda: Okay...then start spilling the
beans. What are some of the ideas behind the "Street Smart Wealth
System"?
Lou: The system starts at the very
beginning. Find the best deals and negotiate them in order to provide the
best short term and long term benefits. After negotiation and acquisition,
you must get the most long-term profit the right way. The system walks you
through the process of finding occupants who take care of your property, who
get up in the morning and go to work so you don't have to. For that, you need
a plan. We follow a step-by-step process that allows us to:
-
Uncover
deals no one else knows about
-
Finance those deals without having to go to the
bank
-
Purchase them privately so you don't reveal your
real estate holdings to the world
-
Correctly renovate or repair the property without
the typical hassles, contractor problems and expenses others experience
-
Find the right tenants to "hire" for
your property
-
Appear as a professional property manager, not
the owner
-
Super charge your cash flow to generate
"massive passive income" to allow you to get free of the shackles
of your current job
-
Raise money at low interest, many times with zero
payments interest accruing
-
Create ‘profit centers’ in buying, borrowing,
renovating, managing and selling
-
Protect it all as you buy and hold it
Linda: Do you feel this is a particular
skill set?
Lou: Most
certainly. This is a learned skill and must be done with care. After all,
when you are negotiating a deal, you can make thousands in a short time and
you are structuring the deal to solve the sellers
problems. This is a skill that will pay you back more than you can imagine!
We simply do this business the non-traditional way. The refinements we’ve
created give us more money quicker and allow us to hold property easily for
maximum profit.
 Linda: Lou, do you teach others how to do
this?
Lou: Yes, I
have a four day boot camp – which is like a college class in just four days
that literally allows my students to learn what I know about making the most
from each deal and how it is structured.
Linda: What is that class called?
Lou: I call
it "Millionaire Deal Maker"… because that’s what it is. I teach
them how to become millionaires by structuring deals the most profitable way.
It’s really powerful and not duplicated anywhere in the industry due to my
unique ways of teaching it. I’ve found it’s best to have four different
offers for each deal. My system lays that out so it’s easily duplicable for
anyone. Most investors just walk away when the seller doesn't accept their
offer. We get a higher percentage accepted.
Linda: One of the things you teach in your
bootcamps has to do with profit centers. What are
those?
Lou: Dependable
monthly income sets you free. Having a series of built-in Profit Centers
increases your cash flow and accelerates your wealth. The system includes
many, but here’s a few: pet fees, pet rent, extra person fees, additional
rent, discounted rent and more. Another "Income Accelerator"
involves offering potential renters the option to buy the property. Why would
I do this? It's another profit center/problem solver. We sell them the chance
to buy. That's a very powerful attraction to someone who wants to get ahead.
And we offer them a great deal too – including partial rent credits toward
the purchase, credit of their initial (non-refundable) option consideration
and even backup owner financing. My experience is that we end up with a
better tenant who typically improves our property. Imagine that! Many do not
exercise the option to buy for various personal reasons, which is probably
why they are tenants. In that case you end up getting a better property back
and starting over. Oh well!
Linda: Do you have other profit centers?
Lou: Yes… the
option wealth and cash flow accelerator gives you the benefit of
non-refundable option fees, a better property and better tenants. If they do
buy, you get the price you want, they pay the closing costs, no realtors
fees, and you get rent right up to the date of closing and more! Can it get
any better than that? Yes! The strategy goes on to have you offer to carry
back the home financing. Why kill the Goose that lays the Golden Egg –
convert rental income to interest income by providing the financing to them.
We offer to carry under a concept called "Agreement for Deed." It
works sort of like vehicle financing, where the lender keeps the title until
you pay them off. Here you keep the Deed (control) until your buyer pays you
off. With this strategy, you get extra income because they must pay at least
10% down to get the owner financing in our "American Dream Homeownership
Program." You receive interest income and you just might end up getting
the house back… just like a bank. (If you can't beat 'em…
join 'em). We don’t hope they have problems… but we
are in control if they do.
Linda: I hear that you also teach about
tax benefits and retirement accelerators. Let's hear a little about that.
Lou: Under the
rental/option scenario we get to accomplish another goal which is tax
benefits. This comes through the excess depreciation the government gives us
for being landlords. Are you starting to see the Retirement Accelerators that
come from receiving the Option fees and Down Payments? There is so much more
profit available to us. Because you have a plan and a system, you'll be able
to earn all these profit centers from each house. It just doesn't take many
to get really wealthy. The process includes buying right, keeping as
many as you can by structuring the deal right, managing right by including
the profit centers and avoiding taxes. You do this by holding right using
Land and Personal Property Trusts to avoid lawsuits and probate, combined
creates a winning formula of profit centers and safety that is unbeatable
when applied right. In order to accomplish this, you need the right paperwork
and training designed to produce all these benefits.
Linda: Right... Okay Lou, why are you
giving up all your secrets?
Lou: That’s
easy. I like to share what I’ve learned. I get a kick out of teaching others
how to bypass my painful mistakes, and believe me when I say I’ve made plenty
of them! I also share that you are far better off when you have many ways to
find deals, not in competition with others. I have identified over 50 that
are in my system. Here's what Eric Jozwiak says about the system.
Linda: That’s mainly what you are known
for, isn’t it?
Lou: Yes,
actually I’m best known for a couple of things, and that is why I have
developed a system to do this business. So many people were coming to me for
direction that I decided to put everything down on paper and start teaching.
I really wish I had a system like this that I could have followed when I got
started, but it didn’t exist. As a result it cost me tens of thousands of
dollars in learning through mistakes. This system is important to follow to
be sure mistakes that I've learned the hard way, are not repeated. Because of
this I what is widely known as the "Whole Enchilada" of real estate
investing. It’s a step by step process to find deals others don’t know about
and negotiate them to yield the highest profits. It will also teach how to
uncover all the hidden profits, and to sell them quickly for both short term
and long term income.
Linda: Wow, it sounds like a system folks
really need to do this business with the most efficiency. What else are you
known for?
Lou: There is
one that started out bad but ultimately turned around to be a good thing.
Early on, I got sued. It was then I learned that if I didn’t pause and discover
how to protect my assets... I could lose everything at the blink of an eye.
It’s happening all around us everyday. It was then I started learning about
the incredible power and safety of Trusts. I created a system to implement
the use of Trusts every time we bought a property. Many regard my system as
the most cutting edge of any out there and it’s
simple to use. The other great thing about it is it doesn’t require the
involvement of a lawyer.
Linda: I can see how that is important. Is
asset protection the only thing it does?
Lou: Not by a
long shot. The use of trusts helps you do what I call "estate planning
as you go". Every time you buy property you create a separate trust. By
having these in place you avoid the cost, confusion and delay of probate as
well. Property can pass instantly at your or your parents’ death and totally
bypass the costly and confusing probate process.
Linda: And your system allows your
students to do it themselves?
Lou: Yes –
It’s broken down into a simple six step checklist and is complete with all
the documents, and they’re on disk as well.
Linda: Is that all they need to do it?
Lou: Yes,
however I have a Boot Camp called "Maximum Asset Shield" where I
can reveal the more than 30 benefits of trusts and how to best use them. It’s
an in depth extension to my home study system.
Linda: Your training is starting to sound
very comprehensive. What else do you offer?
Lou: We learned that while we provide a
ton of cutting edge information in our systems, folks still need the one on one
contact and focus provided in the live setting. We have broken down the
business into four segments and we train them on exactly how to do the
business, taught by someone who has been doing it since 1976. These are…
·
Millionaire
Jump Start – where we train our students on building their
own business plan – we do it right in class, teach them about contracts,
trusts and the details of how to get quick cash after leaving the training.
·
Millionaire
Deal Maker –where we teach even the shyest people to go and
create killer deals that their competition has no clue about. We spend three
days doing nothing but creating profits through transaction engineering and
we add a 4th bonus day of additional strategies to do other types of deals.
·
Massive
Passive Income – where we train exactly how to create a 24/7
money machine. When you are tired of acquiring property... the work you did
years before keeps on making huge profits year after year because of the way
we sell rentals to our tenants. This is where an area I am well known for
comes in. We create extra profits in all our keeper properties. I call these
"Profit Centers". They are critical to long term wealth. You see, I
know the real path to wealth is in holding property, not buying and selling.
So we have tweaked our system the last 29 years into an unbeatable process
that allows you to have control over your assets. Not like the stock market
where you have no control. And you have tax advantages unmatched by any other
investment. This includes income from interest as well as rental income.
Finally... and probably most important.
·
Maximum
Asset Shield – here we take everyone through the process of
creating their own trusts – Land Trusts, Personal Property Trusts and Living
Trusts. We also lay out how each of the entities plays a role so we cover
Corporations, LLC’s, Family Limited Partnerships
and more. Everyone not only leaves with a plan but with much of the plan
already done.
Linda: Wow, that seems to be exactly what I’ve
heard people really want when they do this business. You’re right, they do need a system of training that takes them
soup to nuts through the process. This does really seem to round out your
system.
Lou: Yes, It
does. The students love it and tell us repeatedly they think it is the best
training going. Our mission is our students’ success, so we simply are not
happy unless they are cashing checks and building wealth. Obviously the more
successful our students are, the more successful we are. We also offer
coaching. We learned this is a lonely business and it is easy to get off
track. Our coaches follow our system and insure the students will be a
success. That really is the final component to quick, safe money.
Linda: Lou, It seems to me that you are saying
that anyone from any walk of life with no credit, no money and no experience
can make money at this business. Is that really true?
Lou: Linda,
it really is. Isn’t that what happened for me? I started at ground zero –
that means nothing. It took me years on my own to make it. My students now
follow my system, bypass my mistakes and delays and get to the money MUCH
quicker than I did. It reminds me of two students who followed one of
my concepts and had the seller pay them a check for $27,000 to buy their
property. In fact I have received three unsolicited testimonials this month
from students who have followed this one simple strategy and received checks
from sellers. Another example are newlyweds Matt and Kim Vestrand
who received a check for $2,700 from a seller, they have now “sold” the property
the way I teach and got another check from their buyer for $10,000, and will
receive yet another check when the buyers (who are tenant/buyers now) cash
them out. That one will be at least $30,000!
Linda: Whew!!! Lou, what are some other
student success stories?
Lou: Frankly,
there are so many it’s hard to pick. Romey and
Christine started with me and followed my buy and hold plan. They received
checks on a refinance of two properties and still own them.
In their first 14
months they cashed $435,210 in checks, still own the properties, receive
$12,000 per year in cash flow and have equity of over $60,000! Most folks
believe the quick cash comes from buying and selling, but you need to know
which ones to buy and sell and which ones to hold for maximum wealth.
Linda: But don’t we sometimes need cash to
buy?
Lou: Yes.
Some of the best deals are getting the bank to take less than they are owed
on properties that are over-financed. These are called Short Sales. I’ve
perfected a system to get them to cooperate and give us thousands of dollars
in discounts. Those require cash.
 Linda: How do you get that money?
Lou: I have a
system whereby we borrow from individuals – either personal money or IRA
funds. We use those funds to make our deals. I know what you are going to ask
next – how much does that cost? Well… how about zero points, 6% interest
accruing, no payments until sold? Sound too good to
be true? It’s not! I have a process to borrow for maximum profits. I’ve been
in this business for over 29 years and I’ve never gone to the bank for financing
on single family or small multi-family properties. No need to. This system
raising money is how I have done this.
Linda: Does your system work in all parts
of the country?
Lou: Yes, we
have students – successful ones – in all 50 states and ten foreign countries
as well. They write and call to tell us of their great conquests. Just the
other day I received a letter from Dusty Keefe in South
Carolina. We’ve found it is critical to not
only have forms but to have the right words on the paper. I taught him when
he was only 22 years old to record an "Affidavit and Memorandum of
Purchase and Sale"
form at the Court House. He did and when his seller went to sell to the most
powerful broker in town, their closing was stopped… all because he had
followed the system. The seller was forced to abide by the contract from my
"Street Smart" system and Dusty closed on the purchase at $130,000.
He has a buyer now at $230,000 for the house. That one idea – followed the
way I teach will net him $100,000 profit on this one deal. We’ve learned the
devil is in the details and so is the profit! Ignoring the details will cost
you. It’s critical you dot the i’s and cross the t’s, but you
don’t know what you don’t know. So we follow a system that makes sure not to
leave those things out. You don’t even have to know the pitfalls or think
about them because they are built into the system. Dusty, a college student, came to all my training sessions and now he makes
real money while his friends are just starting a career and will not reach
maximum earning capacity until they are in their 50’s.
Linda: Lou, you’ve convinced me I could
actually do this myself. Average people can make way above average money,
create retirement income and have plenty of free time to enjoy it! Now I
understand why so many people can become wealthy investing in real estate.
With a system I can copy what you do, bypass a big learning curve and avoid
the pitfalls. How can we find out more about your systems?
Lou: First,
anyone can check us out at
www.LouisBrown.com . But let me do
something special. I’m going to offer your readers something they really
need. Call 1-800-578-8580. Tell
us you saw the Mentors Magazine article and I’ll ship you a free gift – a
2-hour limited edition CD set called "How to Create Your 24/7 Money
Machine".
Click Here
to Get Yours Online I want to support folks just like me who want to get ahead.
This will give them a better understanding. Education is the key to huge
wealth. I want everyone to learn from my mistakes.
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