How Mitch Stephen Bought and Sold over 1000 Houses with None of his Money Part 1

Jay Conner

Dec 31 2018

[Podcast #90] Self-employed since 1996, Mitch Stephen has purchased well over 1000 houses in and about his hometown of San Antonio, TX. A high school graduate, who never stopped learning. Books, CDs, seminars and webinars were his classroom.

Watch at https://youtu.be/Xm6cXb4y2tk

Today he specializes in owner financing properties to individuals left behind by traditional lending institutions and giving new life to properties that scar the neighborhoods.

He has perfected a method of achieving cash-flow without having to be a landlord and without having to rehab properties. He's mastered the art of raising private money and the classic “Nothing Down” deal.

He has pioneered the idea that you don't have to give discounts to sell your notes.

Mitch buys a house for 65% of the house's value.

He was ready to quit. Then he found a mentor who showed him thew few things he was missing. He went from almost zero in the bank to half a million in the bank.

Resilient was key to Mitch's success. He failed then got up and figured out the solution.

What is Owner Financing?

Mitch uses Private money to buy a house, then owner finances the house to the buyer.

He has a rent formula. Most renters would pay $1000 to own a house instead of renting. Houses are

Rent - insurance and taxes = amount renter has for Principle and Interest

Mortgage is based on 30 years and 10% interest. 10-12% down. He will sell a house for $110,000 and get $10K to start.

OFV - Owner Finance Value.

Can they make the payment?

Good people who have bad things happened. The credit Bureau penalizes people when they fix their problems.

Mitch did 88 house deals in 2018. Who does the qualifying? Mitch has people trained up to do the work.

Prequalify buyers
How have they been paying their rent
What does the house they rent look like?

Private Money

Buy houses at 50% of value. Buys a house at $55K. Private lender loans $57K. Payment is $350. Buyer pays $850. He keeps $500 monthly and is not a landlord. He keeps the $10K down payment.

Mitch has borrowed $14 Million privately. 8% interest only.

In five years, he makes $44k over 5 years. His note in five years has extra value, and can be sold.

Mitch uses outbound calling to find leads. He targets people with indications people are having problems or struggling with their house. Postcards go to people they talk to who sound open. Skip trace - TLO.

Best Advice for a new Investor

Alwats check references

Once you find a strategy you want to do, then stop with free learning and pay a successful mentor who can show you the right way to invest in your strategy.

He advertises in Spanish on Facebook Marketplace. Livecomm.com. He has 8700 people on his text list who called his signs. He texts everyone who signed up with photos of photos of his newest house. He averages 8 days to sell a house.

Mitch Stephen is the author of the book series MY LIFE & 1,000 HOUSES....

- His first book came out in 2008 and was Titled...

MY LIFE & 1,000 HOUSES:

Failing Forward to Financial Freedom

It is an autobiographical story about how Mitch, as a young entrepreneur, morphed into a professional real estate investor with over a 1,000 house transactions to his credit.

In 2014 the second book was released...

MY LIFE & 1,000 HOUSES:

200+ Ways Find Bargain Properties

This book was written to answer the most popular question of the day;

"How do you consistently find so many great deals on houses?"

In 2016 Mitch published his 3rd book titled

MY LIFE & 1,000 HOUSES:
Failing forward to financial freedom

http://www.JayConner.com/mitchbook

Mitch's course - 25 hours of intense training.

http://www.JayConner.com/mitchcourse

His Podcast:

http://reinvestorsummit.com

-Links for the show notes

1. 1) Mitch Stephen Books- https://ub203.isrefer.com/go/book/sc2018/
2. 2) The Art of Owner Financing 497 - https://ub203.isrefer.com/go/497/sc2018/
3. 3) $7 book Owner Finance101- https://ub203.isrefer.com/go/oftw/sc2018/
4. 4) Mitch Generic Webinar Registration - https://ub203.isrefer.com/go/gen/sc2018/

http://reinvestorsummit.com/mitch-stephen