Real Estate Investing: More Cash Flow for Your Business

Chris Prefontaine is the Founder of Smart Real Estate Coach, a community of associations across North America that empowers professionals to invest in real estate. With over 30 years of experience in the industry, he has coached more than 30,000 people in the US and Canada, helping them grow their real estate businesses. Chris is the best-selling author of Real Estate on Your Terms and The New Rules of Real Estate Investing.

Here’s a glimpse of what you’ll learn:

How Chris Prefontaine ventured into real estate
People, culture, and communication: Chris’ initial business obstacles
The most challenging aspect of entrepreneurship
Navigating the volatile real estate market
How to build wealth by investing in real estate
What is the three pay-day system?
Chris’ real estate coaching process: mindset and skill sets
Chris talks about his most pivotal business mistakes

In this episode…

Business owners make countless daily decisions that determine their companies’ trajectories. However, making these decisions in siloes impedes progress toward the ultimate objective. How can you make informed choices to propel your business closer to your desired destination?

Decisions surrounding cash flow can make or break your business, as veteran real estate coach Chris Prefontaine discovered when attempting to make single-handed decisions as a solopreneur. After discovering real estate investing, he realized he could build a strong business in the industry to provide cash flow for other ventures. His approach involves structuring deals by financing your investments as an owner to achieve low interest and tax rates and a debt-free mortgage. You can accrue cash flow over time before selling the property for a favorable price. No matter your approach to real estate, Chris says to create a niche in the market that serves your current business needs.

Tune in to the latest episode of Destination Business Freedom as Pat Mancuso chats with Chris Prefontaine, the Founder of Smart Real Estate Coach, about investing in real estate to finance your business. Chris talks about the three-day pay system, the role of mindset in real estate success, and how to navigate the volatile real estate market.

Resources Mentioned in this episode

Sponsor for this episode...

This episode is brought to you by the Mancuso Consulting Group, a go-to resource for entrepreneurs, CEOs, and business owners dedicated to personal and business growth.

Our team of experts has coached, consulted, and trained over 15,000 entrepreneurs, C-suite leaders, and business owners in areas of sales, leadership, organizational development, and personal growth. Additionally, Pat Mancuso has launched multiple multimillion-dollar business ventures, giving him a firsthand understanding of entrepreneurs' daily challenges.

At the Mancuso Consulting Group, we are committed to exploring innovative ways to help businesses and leaders grow their people and improve their bottom lines.

To learn how the Mancuso Consulting Group can help you unlock your full potential, visit www.themancusomethod.com, email us at pat@themancusomethod.com, or call 651-503-7355.

Episode Transcript

Intro 0:02

Welcome to Destination Business Freedom, hosted by Pat Mancuso. Join us as we explore success strategies and hacks from leading entrepreneurs, helping you bridge the gap between financial success and personal freedom. Your journey starts here

Pat Mancuso 0:24

Hey everybody, Pat Mancuso here, I am so excited that you've arrived at the Destination Business Freedom podcast, I am really, really excited about our guest today, we'll jump into that in just a second. My goal with our podcasts is to help business owners in their journey to that destination. And what do we mean by that destination? Well, that destination is their exit. Now, for many people that exit takes on various paths, if you may, they might just totally sell the business, they might stay in the business. But here's the point. I haven't met a business owner yet that didn't have a desire to exit at some point. And our guests in our journey are going to help us to a talk about where they've come from, the challenges that they had, the successes they've had and what they've learned along the way. So we're very, very excited that you're here today. I do want to share our sponsor for our episode today. So the episode is brought to you by the Mancuso Consulting Group which uses a proprietary method that's called the Mancuso Method to help entrepreneurs and business owners dedicated to closing that gap between their finances and their freedom. That method was created by Pat Mancuso the CEO of the Mancuso Consulting Group, and encompasses over 30 years of his journey as an entrepreneur owning multiple businesses exiting from businesses, as well as over 30,000 hours of consulting time with Business Owners. You can go to www.themancusomethod, take a very short assessment that will allow you to schedule a call with Pat. And that call will be you'll be receive a report and as part of that report, you will receive an opportunity to spend 30 to 45 minutes with Pat and Pat's guarantee is this. If you don't receive $10,000 of value from that time together, he's going to cut you a check right on the spot for 500 bucks because that's how much he believes in that value of that process. So once again, www.theMancusomethod.com. So, Chris, we're super excited that we're hearing that you're here today. I'm really, really excited that you took some time to join us.

Chris Prefontaine 2:31

Nuba I'm psyched to be here. I love to I love to chat. Well.

Pat Mancuso 2:36

And I would be remiss if I didn't acknowledge how we came together. And that's Noah, Noah Tetzner from Rise25. And he absolutely raved about having you on the show and the value and the benefit you could bring to us. So I want you to acknowledge No no, thank you so much. So first, I'm gonna read the intro if you're okay with this, and people always love this, you know, they're like, they gotta hear it, but this is some pretty good stuff, you guys. So Chris Prefontaine is the chairman and founder of Smart Real Estate Coach, a four time best selling author just in case y'all didn't know or see it is sent us some amazing books. And there's some good stuff in those books as I've started to read them. He is Forbes business council member in a three time Inc. 5000. honoree for fastest growing company, wicked smart community operates all over North America and has successfully completed hundreds of transactions, assisting students in doing the same. Alongside his achievements, Chris hosts the Smart Real Estate Coach Podcast, which ranks in the top point oh 5%, that's really high. That's less than 1%. He's in the top, top, top top, globally, having navigated through challenges, such as the crash of 2008 911, and the near death experience with his son, and oh, by the way, COVID in that impact there, versus reengineered his entire business to weather all storms and economic cycles. Now, what's not in here is the current state of real estate, which I know we're going to talk about as well. Understanding these challenges. He helps students and navigate the constantly changing real estate waters. Chris and his wife Kim have been married for 37 years. Congratulations, Chris on that. And their adult children, Nick and Kayla participate in the family business while pursuing their own entrepreneurial careers. Chris, welcome to the show.

Chris Prefontaine 4:28

Thank you. Thank you so much. I'm psyched to be here with you. Oh, my

Pat Mancuso 4:31

gosh, oh, my gosh, well, you know, first I mean, some similarities. You've got family working in the business. I have family working in my business. We've got both got very rich and deep histories and real estate. So you know, I'm pretty excited about what we're going to pull out of you today. So let's start with just tell me a little bit about how did you get into real estate? Where did that start? Yeah,

Chris Prefontaine 4:53

I grew up in a family business that was not real estate was actually a welding supply company. My father But at so at an early age, I work there. But while I worked at I learned how he built on the side real estate one was, he would build his own brick and mortar buildings and lease them back to Himself. And I remember, I don't know what age maybe 10 or 12 saying, why don't get it, you're the same person. But you know, in hindsight, okay, so he rents it he leased back from from his company, I mean, the company that he's back from him. So then he would hang out with even though he did that business for years, until early 90s, he sold it, he would hang out with people who also dabbled in real estate, but had conventional businesses land flipping rollin and improving it and doing the engineering and flipping and so I was around that. So I always had a passion for real estate, but that's what opened my eyes to it. And then when he sold his business in 91, I had just started about a year earlier, building some homes with a builder, I didn't know how to build a home, but I was I was kind of a partner in that. And then we went full time, I didn't have a choice when his company got bought, about a month later, they fired me, even though that was not the plan. Kids were wanting to, they gave me a month severance and said bye bye. So I had a month, basically to ramp up any building anything I had going on and get out there and get after it. So that was kind of like the beginning stages.

Pat Mancuso 6:10

That's how that's how you got into real estate death by fire. Yep. I love it,

Chris Prefontaine 6:15

I have a different reason I want to do it. Right. So they said, Okay, see you?

Pat Mancuso 6:19

Well, you know, here's what's really interesting about that, Chris, is that, you know, first you talked about the, in my opinion in my world, and what we do today, you talked about this tax strategy of owning a business owning or owning property, if you may, that lease back from the business, and there's huge tax benefits of that. And so, you know, it's exciting to hear that your dad had some people around him that picked up on that, because, you know, most people wouldn't understand how that's a great strategy. The other thing I loved is that, you know, you learned the business from somebody who obviously was very successful, and you had a choice at that time when he sold the business, you could stay in it, or you could do something else. And that passion that you experienced from I'm sure being around your dad in the business, you know, helped you to do create that trajectory of where you're on today. So, you know, congratulations on that. I mean, real estate is not the easiest business to be in, there's no doubt about it. And yet, it's pretty simple. If you do some of the right things. Would you agree? Yeah, I

Chris Prefontaine 7:21

agree. I always say there's one constant in real estate, it's always changing, right? And people go, Well, I gotta tighten the mic, and I gotta do this, and I gotta buy it. No, you just have to understand how to operate in any market and be comfortable with it, which is what we do now since the last crash. Yeah, and you'll be fine. Yeah.

Pat Mancuso 7:37

So So Chris, let me talk a little bit about I want to dig into your journey as a business owner, you know, the goal of our podcast is to really help business owners to get to that point of that exit like your dad did. And you know, for some people that exit is somebody taps him on the shoulder and says, Hey, I want to buy your business. Other times, there's no owners who are like, Okay, I've had enough of this, I don't have any the freedom or the financial, that I expected. And then other times people get bought out by venture capital or equity. So our goal is, is to help people get to that destination, whatever it is. So I want to ask you a few questions. Before we jump into what you're doing for the real estate community agents today, in this journey that you've been on for, what, almost 30 years now, what have been the biggest challenges as a business owner that you either didn't expect? Didn't see, or really struggled? Overcome?

Chris Prefontaine 8:37

I would say a few things, but all related around people. Because I've said now for the past five or 10, because I get it now, and that is that people drive revenue or can sink a company, right? Yeah. So so people, the culture around the people, everything to do with people, I think it was a big eye opener, the importance of clear communication, not easy for everybody, you know, the all of people issues that can come up, I could go on and on on that one.

Pat Mancuso 9:06

Well, in Chris, you know, what's interesting about that is I have, you know, we do business consulting, and I was on a call with a client this morning, and we're taking that client through our process, and their number is number one issue today on the call was to individuals and you know, people issues and so you're right, and, you know, it makes my heart sing, unfortunately, that a lot of companies do struggle with that. And so that's not uncommon. Let me ask you another question around that journey. So what advisors Didn't you have around you that if you would have you might be in a different position than you are today. I know you're in a great position. But were there advisors that you felt like that after the fact you realize you really needed and didn't have in that journey?

Chris Prefontaine 9:51

Yeah, in hindsight now, I'm clear on this one. There's probably a whole bunch but I always have a coach of some sort, but what I always was prior to like In 2015 ish was I would consider myself more of a solopreneur, maybe a team member to our failure number two, but a solopreneur. Until I said every six months or 12 months, I said, Okay, what's gonna be the next thing I gotta get good at or learn or get through the struggle with and then I find a coach. So in mid 16 into 17, we said, I, we're gonna scale this thing, I'm gonna create any kind of scalability and then saleability. And get me out of the picture, but I got to scale. So we found a through a number of different contacts, we found a spin off of the Infusionsoft company, they spun off this arm called elite entrepreneurs. I'm not sure if you're familiar with that. But they advise companies moving from seven to eight figures, and you got to do you know, minimum million to get in. I was just hitting that way back then. And so it was an interesting journey. They sat with me and showed me not only how to scale it, but we plugged into them ever since the culture, the mission, the values, everything we do, I owe it to them, because I again, I was just grinding it out every year. Yeah. And so that's a big difference. Well,

Pat Mancuso 11:00

and you know, Chris rule, it's really common is that entrepreneurial, you know, people get into business as as business owners, because they have that entrepreneur, they don't want to work with somebody, they don't, maybe they want to have more financial freedom or flexibility. And yet, in most cases, because they don't have some of that background that you talked about gaining, either through a coach or consultant, they don't have any of that. And until they actually get that expertise, somebody who's gone through it, somebody who's experienced it, somebody who can teach the models and the systems to do you know, basically replicate yourself. It's a struggle for a lot of entrepreneurs today, but not certainly uncommon. Let me ask you one other question around that journey. And then we'll shift gears here a little bit. What surprised you the most about being a business owner?

Chris Prefontaine 11:52

Okay, again, it can be a bunch of things, right. But I would say the how hard it is to generalize. I'll say how hard it is. I did a video on this recently. Because people think, Oh, you so and so. So lucky. Are you guys know, it's hard. Entrepreneurial. Entrepreneurship is hard. And so I would seriously say that's the biggest thing I know, that's like 10,000 foot view, but it's harder than you think always, in my opinion, entrepreneurship is no easy road, you know, the payroll, the this the that it's, it can wear on you?

Pat Mancuso 12:19

Well, because you're you know, you're always having to change, right, you're always having to flex, there's things that happen that are outside of your control market conditions, you know, yesterday, the stock market dropped quite a bit, nobody can control that. Right, you can only respond to it. So I want to I want to dig just a little bit on that one. Because I agree with you, I think there's a lot of challenges entrepreneurs don't see when they get into it, experience it when they're on the journey, and then really don't know what to do. What's been the hardest thing in that journey? Like, it's hard, I get it, but but go down just a little bit. What's the hardest? What's been the hardest thing for you in that journey?

Chris Prefontaine 13:00

Um, I would say when you're scaling, like we are managing the growth, specifically around, say cash flow, because I'll give you a quick example. So in a team, we say, Hey, we're gonna go ahead and start pushing money towards advertising now. Okay, good idea. We never do that we grow organically. So if the person pitching you their their ad campaign is it's going to be peaches and cream, right? Everything's gonna be great. Yeah, okay. Well, we make that decision. It's like, every decision is why I'm using this. We make the decision. Eight months later, we look back and go, he asked, not what they said. And we spent 87 grand, this is one example. But my point is you make a decision, or you try to correct something in a year's gone like that. Yeah. And that's difficult, because you have these goals and aspirations to scale. 23 was like that, for us was a year, it was a year of change, and you make a decision, it takes forever to fix. And so that's the toughest thing, I think how long it takes to pivot and get back on track.

Pat Mancuso 13:55

Yeah, you know, it's it's funny that you say that, and it is what I love about doing these podcasts is a, you know, get to meet some amazing people and talk to them about their journey. But be it really validates the whole journey that we're on with business owners, because you talked about making that decision. And a lot of business owners, you know, every business owner is making decisions every day, all day, multiple times a day. And yet sometimes they're making those decisions in silos where they it's not like you said, I'm using your words, it's our beaches, agreements, sounds good, the return on investments would obviously had to be there for you to make that type of investment. And yet, at the end of the day, it didn't necessarily get you where you wanted to, which, which then the impact of that is, if you go back to that destination address where that exit is, and I'm going to ask you a question. You may not have an answer for it just a second, but that that that decision you made either took you closer to or farther away from that destination, and that's The challenge that I see for a lot of business owners and it's it's a real challenge, right? I mean, it's just a real challenge. So one last question, at least on this part of it. And there's no right or wrong to this. Chris, have you thought about what that exit looks like for you?

Chris Prefontaine 15:16

Yeah, we have in the last few minutes, I'm 58. We got a couple of grandkids now. And so we're thinking of creating experiences, as you could probably imagine, versus grinding out as grinding out in the same fashion, I work always but grinding out the same fashion. So yeah, there's a couple of things going on. We're speaking to different possible equity partners as well as families, family members in the company. So my son, my son in law, very involved. And then my daughter is doing some stuff again, she had two kids now she's back rolling around doing properties. So yes, is the short answer. And I think in the next two years, we'll figure that out before I'm 16. That was the whole game plan.

Pat Mancuso 15:53

I love it. I love it. I love it. Well, succession plans are fun, particularly with their family members. So let's flip the script. I am excited to talk to Chris today. And I know there's a question that's on everybody's mind. So let's clear the deck on this one. You got all these lawsuits, you got the industry changing? You got changes at NAR you got all this consumers changing. And in for me, what's ironic is when I started in real estate back 1990 selling the we had just come out in our market have a class action that related to and created, in essence, dual agency. So I kind of came in on the tail end of what we're experiencing now. So what I'd like to find out from you right now is give me your perspective, if you can, as a business owner, as an individual who services buyers and sellers, give me your perspective on what's going to happen moving forward. I know you don't have a crystal ball. And yet I'd love to hear how you guys are approaching what's happened recently in real estate.

Chris Prefontaine 16:56

Okay, so our, our lane just to set this up is we teach investors in want to be investors who choose how to become an investor. Yep. So let's create a real estate versus just realtors out there some realtors, just to put this all in perspective, in our wicked smart community. Yeah, there's a small handful, I'd say maybe 10% are, in my opinion, they all should be but it's about 10% Um, as a as a past realtor. I now see both sides, right, because I was a high producing realtor before I did this. Okay, so back to the market. Whenever there's chaos, like the NAR loss, it was great. If in this room going the interest rates going up, the election coming, the media still screaming since 2015, that we're going to have another crowd, you know, all these things that are chaotic. Yep, means the markets, chaotic means they need to guide means creative real estate is at a peak at a peak, like in my 33 years, I started right when you did 91. I started in my 33 years going through brokerage and building homes. And now this, there's never been a better time for creative real estate because of the things I just said. So it in my world is great. And a lot of the relative world and a lot of the other people, the mortgage brokers, they're getting beat up. So that's why we're getting pulled, actually for more demand on the creative real estate. So it's getting very interesting for us.

Pat Mancuso 18:15

So So talk to me about so you're you're helping people build wealth through the investment of real estate, which is what really real estate should be doing right? But you're doing it at a different level. And you're not doing it at the residential level. You're really doing it from a business mindset perspective, right?

Chris Prefontaine 18:36

You nailed it, because we're teaching people how to become entrepreneurs. Like most people don't get what you just said, when they come in our community think, Oh, I'm gonna learn how to do a deal. No, that's a job. We're gonna teach how to become a CEO and build a team that can go out and do a bunch of deals. And there's a distinction here too, with this economy, we teach them how to because I came out of the crash of Oh, eight, yep. And I had no money i My credit was in the toilet, everything was gone. I had to move to a one bedroom apartment. So that mean, my wife said, Well, what are you going to get back at it? And so I, I'm not gonna do that. So what I did is I said, alright, I'll buy real estate without using banks, I'll buy it without using money. I had none. It was always a credit. But that's how we buy in the creative space. We don't use those. We don't take out bank loans. We don't sign personally. And then yes, we teach them how to become entrepreneurs and build a team around them. So so let's talk

Pat Mancuso 19:21

let's drill down a little bit on that. Because I mean, that's like a topic that everybody should be really focusing on right now. And yet most people Chris would say, well, prices are at the top of the market how in the world am I going to make any money so how are you teaching entrepreneurs to make money investing in real estate and to just add a little bit more element I heard you say without end with their own money?

Chris Prefontaine 19:45

Yep. A couple of things. Just statistically, if you read I just I'm not done. I'm almost done. Tony Robbins third book in his trio. Yeah. And the stats he gives about real estate where they're beautiful because he basically call out the media and called the on all the things that they're screaming about that are wrong, I mean, not eight or nine recessions, whatever it is, prices went down once, like, if I when I teach an investor to buy a property without their own money owner financing or lease purchase, for example, and I can teach them how to do a term long enough ie seven or 10 years, who cares the market does, because that's a long time. If you're talking two years, okay being repealed or nervous, but not if you're buying creatively, you're not signing parceling and you're creating terms of seven to 10 years. That's the safety net, a big safety net. So, mark

Pat Mancuso 20:33

the window a little bit more detail about let's say, I come to you and I say, okay, Chris, I want to get into this, I want to get into this game. How do I do it? And you know, maybe I don't have any money, maybe I don't have any credit. What am I looking

Chris Prefontaine 20:48

for? Okay, as far as the how you structure the deals? Yeah.

Pat Mancuso 20:52

Well, even how I find the deal. Okay.

Chris Prefontaine 20:55

So, it we teach from A to Z. So this is how I get again, I get other crashes, zippo coming from an apartment, right? So we're going to speak with people that are either Realtors know these words, they're either expired listings, or they're for sale by owners, or they're for rent by owners, we're gonna look to do one of two things, because people say how do you convince them to do this with no money down and I don't get it, you know, you listen for a problem, or on the other side, a goal that's not being accomplished by the conventional market. So let me weigh these two. I bought, we mostly teach residential right bought by building this way. So you I had a gentleman that was free and clear and a nice commercial building. He stayed reasons, trust reasons and tax reasons he wanted owner financing, he was seeking it. And the realtors were bringing them off, he's gonna let them out. They don't get across. So we structured a deal with him where I didn't have to go through underwriting and he became the bank owner financing right now he was not hurting, he was free and clear. On this side of the spectrum, you have to I don't know what the number is. It's It's millions of homeowners who have those low interest rates now, right? Yeah, well, some of them don't want to stay in their home or can't, in every week in our community, someone's buying a house, that subject to the existing loan staying in place, sure, meaning they don't sign on personally. And they're buying that at somewhere between two and a half and 5% interest rate, that's pretty cool. So all you're doing is helping them on a problem or helping this other person who's debt free, accomplish a goal the markets not bringing them, we can usually pay top dollar because we get our term.

Pat Mancuso 22:26

You know, Chris, what I love about that a couple of things, you know, first in and I'm sure you'll agree with me on this, whether you own a business, whether it's a small business or big business, lead generation is always a component of that. So you know, you mentioned expireds, and for sale by owners and and you know, you have to go out and find those, you have to go out and shake the trees. And and so what I love is that's always true for any business. But what you also said it and I think this is true for a lot of businesses, you have a choice, you can let the market come to you or you can create the market in your out creating the market. And that individual that you talked about that own that investment property. Most people, you know, again, if they don't have this knowledge, they don't understand. Not everybody wants to sell a business, or a property or an investment, and take all the money right now. Because depending upon where there are in their journey, depending upon how that deal was structured, it may make more sense for them to take money over time and take it structurally differently. Yet most people don't have that knowledge. And even on the other side, the business owner doesn't have that knowledge. So you ran into somebody who had that knowledge and oh, no, no, I don't want all the cash right now. I'll take it over time. I can make more money over time selling that property to you. And it's it's again, it's just that knowledge that's so powerful.

Chris Prefontaine 23:45

I agree. I was pre crash figures 17 or 18 years in the business not doing this. If I had done this when I was a relative or a builder, I would have created instead of that sort of transactional Hey, I sell a house I get paid. Yeah, I would have created much more well, we have i trademark a three paydays system, Pat, it means investing get paid now great. We all do that in real estate, but they get then set off in motion monthly cash flow with long term cash flow. You get off that proverbial treadmill. That's that's a good business model for any business, let alone real estate, but we just do it on houses. So

Pat Mancuso 24:19

I was gonna ask you about that. So So go back and talk about I think I got the three days the three paydays but but talk about it again. Yeah.

Chris Prefontaine 24:28

So let's just go with switching that commercial, I can go to a house. That's mostly what we teach. If I teach other things then the shiny object syndrome comes into the students heads, right? They don't hide it. They don't know what to do. So I teach single family. When we buy a property doesn't matter how we buy it, we exit it by putting in a buyer that who needs time to qualify for mortgage either the credit needs a little work or post COVID This is a big one. They've got cash they left the W two they took a severance or 401k but they're not financial yet. The banks will finance that three years as you know So those are great buyers, we put them in a homeowner rental program. And then they're going to exit anywhere between two and 10 years, meaning they're going to get mortgage ready, cash us out, we cash the seller out. So we're the three paydays. And a one is they come to the table with a down payment, they were ready, they just didn't know that our financing will show a two is the spread between the underlying loan I'm paying on or the seller in the one I'm charging them to live in the home as a lease, not they're not getting credit for that. Yep, there's a Delta there. And the third payday is picture like, just do a four year deal. The underlying mortgage has principal pay down, we're benefiting from that. And we're benefiting from any markup. And that's huge. So for example, on a free and clear home, we do principal only payments. So picture making $1,000 principal only payment for four years, and then my buyers paying me 1500. I get the principal pay down, I get the spread, and I get the upfront. That's the three paydays. And

Pat Mancuso 25:52

you do that enough, right? I mean, somebody might look at that delta of 500 bucks, six grand over four years. It's 24,000. Chris, come on. And yet, if you did that with 10 properties as 240,000, if you did it with, you know, 40 properties, that's a million bucks.

Chris Prefontaine 26:07

Yeah, let me put that spin a 2 million put the opposite perspective for everyone. So I'll do two things here for metrics. So one is our community runs between like a low of 45,000, and a high of 350,000. All three paydays per deal. Those are significant numbers per deal, versus back in the day where I do a commission and you know, whenever 1020 grand Yeah. Secondly, when I find I'll give you a real simple, go to the bank with this metric when I find a home, free and clear. And by the way, 39% of homes in the US up from 33% are free and clear. That's a lot of homes I can talk to Yeah, so you find a home for 20 grand or higher. Most markets, you can do that. You structure at least a four year term with the seller, I can show you how to do that. And then you structure monthly principal payment of at least 950. You have a six figure deal. All three paydays for you every time every time every time every time. Wow.

Pat Mancuso 26:57

So so the skeptic who might be listening goes, Chris, come on, how many of these deals are out there like in my market?

Chris Prefontaine 27:05

Yeah. I'll give you I'll give you metrics from the community. So the average student takes around 157 days right now to do a deal. Okay, that, that that's giving no, no lopping off the outliers, like someone who quit someone who has low goals, like we just put everybody in there so we can get our metrics. We have done anywhere from one to 10 of these a month, per se as a failing business, let alone the community. But if you look at the community, they do anywhere between five and 18 a month, around the country. In anyone's particular marketplace that we drive, 50 mile radius, that's a little leads come from saying stay right home and do it. And they can go anywhere from one two or three deals a year to 12 or 24 a year depending on how aggressive they are, how many deals to do most people listening really need, if they run, you know, 50 to 350 grand apiece, how many of those they need a year to really change their lifestyle very many bad very, that's why we help a lot of people leave their job. The high income earners leave the job. So,

Pat Mancuso 28:02

so Chris, so what let's talk about then, so you've got this amazing model, you obviously have, you know, perfected it in terms of being able to show people how to do it. When you're leading them coaching, consulting, I kind of interchange those terms. What's their biggest struggle? Like? which area do they struggle with the most?

Chris Prefontaine 28:25

Okay, most people think this is gonna be like, a skill set nugget. But it's not. It's mindset. It's mindset. And there's a bunch of things in that one of the biggest ones is mismanaged expectations. Because I mean, business owners have this too. But yeah, there's so much marketing now in every industry, but education and real estate in particular, that you see the rented Lamborghini in the plane, and, you know, get rich, quick tomorrow. On the first one, we're not great marketers, but we got to do deals. So I'm the first one to say, look, it's gonna take you some time. But once you learn the skill set, so manage your expectations. Once you learn the skill set, even if you just go buy your own home in the next five years you want you'll have that skill set for life. I can't take it away from you. So the biggest one is that mismanage expectation, and now, I think falls under the mindset piece. Because I was in a real recently, a real estate investment club was speaking at my salon, I, this guy came up and he'd been following us a little bit. And he said, Hey, you know, I didn't realize how hard this is mentally. Because as you know, as a business owner, that's the transition. It's not the skill set, I can teach everybody how to do a deal. It's it's the mindset piece. Well,

Pat Mancuso 29:28

you know, and it's, I think, I think my life my journey is so it's interesting in I want to the reason I want to tag on to this is, so we're in the middle of of negotiating, we bought into a national franchise outside of real estate and we're negotiating real estate space commercial, real estate's based. And I had a call with the tenant rep in the asset manager today and and I said, you know, what, what expectations should I have from you? You know, loi finalization, two leads. And they told me about six weeks and my mouth, Chris just about dropped them, like six weeks. Are you kidding me? And the fact of the matter is, is I didn't want to hear it. But now that I've heard it, I can manage my expectations around it. And then make plans accordingly. And you're so right, I think that people have these expectations. And they're not real, or they're not based on anything, or it's an illusion they created. And so that makes a lot of sense, because that can play with your mind and your mindset. So what's the biggest in this journey that you've, you know, undertaken? If you made this this this evolution? What's the biggest mistake you think you've made along the way? In the in what you're doing right now?

Chris Prefontaine 30:52

That's a good one. The whole picture? Oh, two things. Okay. Yeah, two things. One, not doing that. Not seeking out the proper leadership slash scaling coaching earlier. Yeah. I can't imagine like when he showed me you'll be a $5 million company. I kind of have my mind went, Yeah, but no, yeah. And we're doing that. So I wish he did earlier to is help with, we run under a system called profits first now, but whatever it might be help with a financial system earlier to the scaling and financial? Because you're not going to do go to five, you don't have those. So those two, I wish I did earlier, those that those would tell these? Yeah,

Pat Mancuso 31:29

those are pretty common. You know, Chris, in terms of I mean, you mentioned this a little bit earlier in their podcast is, you know, cashflow. And profits are different. And most entrepreneurs don't understand I say this respectfully, but it's in my journey. You know, over the last couple of years, we've helped about 850 business owners, and every one of those business owners, we've had access to their financial statements as part of the work that we've been doing. And like, there's many times people don't even understand how to read a p&l long letter balance sheet, and they certainly don't, in many cases, even know what a cash flow statement is. And so So I think you're right, I think that's a big piece that I know, for us, it's as soon as I can get in front of a business owner, and know where they're at in terms of that journey. Because it really, every decision you have to make is based upon those three documents. And if there if it's not based upon those documents, it's like, you know, making decisions like a blind person is, you know, it's it's very hard to do. So let's flip that script. What's the biggest success that you've had in this journey? Like, what was the what's the thing that you're the most proud of in what you're doing now?

Chris Prefontaine 32:46

Two things that can come to mind. One is on a personal level, because my wife said it last night to me as we do, we're not playing she said, it's really cool that the kids that they're in the 30s are sort of, not sort of they're on their own. They're independent and doing great. And they have some opposite says to like, that's really cool. And then I started when it you know, when they're 18. Yeah, the second piece is really cool, which I kind of wanted but didn't know it will come to fruition, which is helping these individuals really create the lifestyle that they never thought was possible did students ie the students, because we've helped people, man, all of our coaches coincidentally, for example, were in long term jobs. One was in the government for 30 years, for example, making a couple 100 grand 100 employees, and he left with us, most of them leave within two years. That's a really cool feeling. So people don't get when you coach that you get to, like, experience that with them. And it's all experienced versus and you know, one event. Yeah,

Pat Mancuso 33:40

yeah. It is cool to see that in that journey. Um, so what haven't I asked you that I should have asked you? Or What haven't you shared yet that you feel like you really have to share?

Chris Prefontaine 33:56

I wouldn't say really at the ship. I think this is a general enough comment, Pat. So it doesn't matter what business you're in. That's how I want to make it doesn't matter what niche you're in or business you're in or industry. Three simple things that I always used to have success one, because it kind of goes with how I answered things. One is pick the industry in my case, pick the niche in the industry of real estate, right? Yep, that you can get behind for a lot of reasons like morally ethically personally, schedule wise, lifestyle wise picked up like our our transactions, for example, that win wins and people like him, but other people like to sit behind a computer and doing flips and it's just different. Yes. So okay, so picking it to, to appropriate to what I said earlier, pick a someone or a community or or mentor or whatever. So what I've always done, who has also done what you want to do, and you can relate to them. And I say that because you and I both know all bunch of business owners who have destroyed relationships in their life to become successful like the I know some very personally. So So I personally wouldn't want to follow that. Okay, you had all that success, but you can't show me how to do anything else. So would pick that person or group. And then third is the Tuffy put the blinders on for three to seven years. That's that's a toughy because everybody goes, Yeah, I'll do that. And then they drop off. Brian Tracy, you You're old enough to know Brian Tracy, some people go to hell is that Brian was on my podcast in during COVID. In 2010. He was like add to that anything. And I gave him my three year philosophy of the blinders on. Yeah, he's the only ones that know stop. I said, why? He said, I've been rich and broke. And it takes seven years, not three and Chris seven, I said, Okay, he challenged me, it's I've been speaking about seven for forever now. Because he said, it takes two or three years to, you're gonna really suck at something, then two or three years, you'll feel like you're adequate. And then you'll make your breakthrough. And I look back Oh, boy, it was kind of right. So I say three to seven now. diviners. Those are the three steps.

Pat Mancuso 35:45

Well in that in, you know, Chris, first of all, I love the concept and the you know, that that, again, creates that expectation or that mindset, right? Because everybody wants it yesterday, everybody sees, you know, people like you who are successful, and they go, Okay, well, I can go do that, which of course they can, however, they don't understand what's happening behind the scenes, and how long it took you. And then the other thing, which I like in the three to seven is, you know, we live in a world unfortunately, where I think this is happening more often now is, you know, you have things that happen more often, you know, we have the crash of Oh, eight, we had the recession and 15, we have COVID. And you know, now we've had, we have the whole old thing that's going on right now in our world. And, you know, in those things that, you know, there's nothing you can control, like everything, right? And so you do have these, these experiences. So I'm gonna, I'm gonna ask you in just a second, how people can get in touch with you, and you know, what you can provide to those folks. But I want to ask you one last question. And this one's kind of an interesting one. What advice do you wish you would have gotten sooner in your journey? And how much do you think it costs you? Because you didn't?

Chris Prefontaine 37:01

It would be the longer version of the piece I just said of the three to seven years, because when I was younger, and I hear electrical telling me Yeah, I do that I'm in my 22nd. Is it chasing the next thing? Okay. So the strict got sort of bumper lanes, if you will, to stay with something for 710 years and find someone to bring you along that journey, not trying to recreate the wheel. So it's never average quick. If I just that would be something that would have got me there sooner I would think got me on track Shona. How much

Pat Mancuso 37:33

do you think that cost you? Oh, man, I mean, if

Chris Prefontaine 37:37

you look at just since we started this and 13 Loving years ago, that's millions. And so now what about the first 22 years? Yeah, yeah, that's expensive. It is

Pat Mancuso 37:51

easy, you know, in I love your answer, by the way, because we all have it. Right. And the reason that I asked that question is that everybody wants what they want now. And they don't understand things like the compound effect, they don't understand. It does take time. They don't understand having goals and staying within those guardrails. And, you know, the shiny bling thing, you know, happens and yet time on task is so important. And it gets you to where you know, you need to get to. So I love I love I love the way you put that because it is absolutely so true. So as we as we kind of close it, Chris, what I'd like to do is, you know, you send me these amazing books. And so you know, what would people get from these books? If they were to go out and get up first? What would they get? Yeah, the

Chris Prefontaine 38:40

main one rests on your terms is the A through Z system of what you and I kind of been alluding to what the company does. That's real estate on your terms. Yeah. And it got revised right during and post COVID. It wasn't playing we were doing them at all perfect because all these changes came so it's rather current and walks you through what we do from lead generation that you mentioned all the way through to creating the three paydays and you get to see different walks of life in there to like different students in different markets, different price range, different backgrounds, because everybody comes to me as you can imagine, this might not work in my market. It might not work in my price range. No kidding.

Pat Mancuso 39:13

That never happens. Chris, come on.

Chris Prefontaine 39:15

No, no, it's crazy. So that's in there. And when we give, we'll give one to you we'll give a link to your tribe and it's not one of those free offers Pat where you go put it in the credit card for shipping. That's not free. This was truly free was shipping from this office, you'll get hardcopy books. Love it and

Pat Mancuso 39:31

where were the is a link you want to share that with us layout but in the short URL, it's perfect.

Chris Prefontaine 39:37

Yeah, I can give it to it's wickedsmartbooks.com/pat1

Pat Mancuso 39:45

I love it. I love it. That way when people hear it, they can go get it even if they're just listening or driving. So, Chris, any final thoughts, any any parting ideas or anything you want to share before we sign off?

Chris Prefontaine 39:58

Sure, real quick. Don't let have media sway you, especially in real estate, but apart from anything, because the last night check, none of them were certified procreative real estate. So take your lane and link up with someone who's doing it. And that can be in any in any line does have to be real estate.

Pat Mancuso 40:13

That is so true. So true. One of my mentors, Chris, I'll end the show with this one of my mentors who actually sold their real estate brokerage for $80 million. They were one of the first major acquisitions by send them nRT. So that dates you and I, but he, he was mentoring me and my journey of leadership and real estate. And he said, I want you to remember the title of this book. And and he said, you don't even necessarily have to read the book, but just remember the title. And I said, okay, and I looked at him kind of positively said, your opinion of me, doesn't matter to me. And I'll never forget that I've never read the book, Chris. But I didn't need to, it goes to what you just got done talking about is don't let others dictate your life. Because many times people are going to dictate your life at less than their life. So if you take their advice, and they're, you know, $100,000 a year, no, no offense if you're making 100. But if they're $100,000, a year performer, and you're taking advice from them, and you want to be at a million, you're taking advice from the wrong people, and it just goes to who you surround yourself with who you listen to, is really important. So Chris, thanks so much for your time. I'm so excited that you're with us today and appreciate Noah connecting us and you're doing some great stuff. And obviously there's still amazing opportunity in real estate because the last time I checked, nothing in real estate ever goes to zero.

Chris Prefontaine 41:43

You bet you bet. Thanks, Pat. Really appreciate it.

Pat Mancuso 41:45

My pleasure. My pleasure. Thanks, everybody for being with us today. Tune into your favorite podcast source. Listen to the destination business freedom and share it with your friends. We'd love to have impact on as many people as possible. Take care.

Outro 41:58

Thank you for joining Destination Business Freedom with Pat Mancuso me the insights and strategies shared guide you towards financial prosperity and personal freedom. Continue to navigate boldly. Until next time, keep transforming challenges into achievements. Farewell and stay the course.

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