EP59: What The Government Doesn’t Want You To Know About Foreclosure Overages

EP59: What The Government Doesn’t Want You To Know About Foreclosure Overages
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EP59: What The Government Doesn’t Want You To Know About Foreclosure Overages

Transcript below from NFE podcast episode 59:

Jason Lucchesi: Hey, what’s up, everyone. It’s Jason Lucchesi, and welcome to the No Flipping Excuses show. I am so excited that you are here with us today. We’ve got a great, great topic for you. It’s one that I feel is so important that you need to know this. My longtime friend Mister Bob Diamond is here with us today. Bob, how are you doing buddy?

Bob Diamond: Hey, Jason. I’m doing great. How about you?

Jason Lucchesi: I am doing really, really good, man. It’s been a while since we had some face-to-face interaction here, but, man, it’s always a pleasure speaking to you. I know you’re doing some awesome stuff, man. Thanks for taking the time to be here on the show.

Bob Diamond: Sure. Glad to do it. Glad to do it.

Jason Lucchesi: Yeah, man. For folks that don’t know Bob, he’s got this amazing thing that we’re going to be discussing on today’s show. I’ve mentioned it a couple of times, but we didn’t go in-depth on it because I was waiting to get Bob on the show so he can discuss it. Bob, before we dive into discussing that, why don’t you tell folks a little bit about yourself? I know how awesome and amazing you are, but some people may not know that.

Bob Diamond: Sure. I’m an attorney. I’ve been an attorney since 1995, and I’m a specialist in business and being successful in business. I own the biggest overages business in the country. I own a lot of real estate, and have flipped properties. I own commercial buildings. I’m a prominent real estate investor as well as the owner of, as I said, the biggest overages business in the country, which is something everyone can do, and frankly everybody should do. It’s a pretty fantastic business.

I do that, and, of course, the type of attorney I am is a real estate and business attorney.

Jason Lucchesi: That’s awesome.

Bob Diamond: since 1995. It’s been a few years of that.

Jason Lucchesi: Bob and I have known each other for a few years now. Him and his brother Ed, we were all in the same mastermind together, and it was cool being able to meet them and spend some time with them. We weren’t the only folks that were doing real estate in there, but it was a cool mastermind that we were a part of, and just being able to sit down with Bob and Ed was cool the Diamond brothers, and being able to sit down and chat with them.

That’s when I found out talking to Bob about this overages method. It made me sick to my stomach to find out that this was happening to people in our country. Bob could tell you a little bit more about it. He’s the guy, and he’s the attorney. He knows how to do all this type of stuff. I’ve mentioned it a couple of times at some of our seminars. I don’t go too far into it because I haven’t done as many as Bob has. Once you find out about this, it will make you sick to your stomach that our “friends,” the people that we’re supposed to depend on that are going to help us aren’t helping us.

Especially for the folks that are behind, they lose their house. It’s quite a shame what happens. Bob, I’m not going to try and take your thunder here, but can you explain what an overage is for people that are like, “What the heck is an overage?”

Bob Diamond: Very, very simple. An overage is when a property gets sold at a tax sale because someone doesn’t pay their real estate taxes, when the house sells for more than the taxes that are due, that extra money is available for the former owner to take. To get the money, they have to apply for it. They don’t usually ask for it because frankly, they have no idea that the money exists. If they don’t apply for it, get this, the money gets forfeited to the government. It takes a couple of years, typically after three years of not being claimed that money forfeits to the government. It is a lot of money.

Typically when a house goes to tax sale, it’s usually three to four years behind in taxes. Taxes on average are a little under 2% of the home value per year. If you had a $200,000 house, you’re talking about a $4,000 annual tax bill. Get behind three or four years, and you’re somewhere between $12,000 and $16,000 in taxes. You can bet your bottom dollar that when a $200,000 house goes to tax sale, it’s going to sell for 70% to 80% of its value. It’s going to sell for 140,000 to 160,000, yet they only owed 16,000 or so in taxes.

That money, the difference between the 140,000 it sells for and the $16,000 that is owed in taxes, that’s the overages money. That’s the money the former owners can go and claim and that they rarely do. That’s, I’m sure, why you’re saying you get sick to your stomach over it because it is disgusting. It’s also an opportunity for us to right that wrong and makes a lot of money. What we do as a business is we contact those former owners and say, “Hey, we can help you recover some money that you’re owed by the government. If you work with us, we’ll do our work for a percentage of what we recover if we’re successful.”
Typically we’re taking anywhere from a third to 40% to help recover that money. Of course, free country, you can set your rates at what you want. Although we find that a third to 40% does great healthy business, gives the former owner most of the money. If you’re talking about a third, it provides them two-thirds of the capital. Again, the free country set your rates at what you want.

What I like about it is it’s a cash business. Payouts are pretty quick, within a couple of months, and you don’t have to put a lot of money out upfront. We’re not buying the claims from people. We’re just providing the service of going and getting the money. What’s nice is like saying you’re a wholesaler, I know, Jason, a lot of your guys are wholesalers and wholesalers, and if you’re in that task, this is very similar to wholesaling in the sense that you’re not putting money up.

Wholesalers don’t close on their property and then close a second time if they can avoid it. Instead, you take the contract and assign the agreement. This is kind of the same thing where you aren’t putting up the money. You’re not buying the overage. Instead, you’re just saying to someone, “Look, I’ll do this work for you in exchange for a percentage if and when I’m successful.”

Jason Lucchesi: That’s great.

Bob Diamond: Hugely profitable business.

Jason Lucchesi: I like it. We’ve done a few training webinars on this in the past, and people were just blown away with the information that you shared on those webinars. We’ll be doing one here soon, and we’ll let you guys know when we’re going to be doing that. For folks that are also wondering, does the overages happen as well when a property goes into foreclosure, and it gets sold at auction, does that also take place with the overages?

Bob Diamond: Yes. Mortgage foreclosure overages you can also do. Frankly, we do a moderate number of those. We’ve never really pursued them because we already can’t keep up with the tax sales. For anybody who’s doing mortgage foreclosures. Again, it’s the same kind of math. Whatever the debt is, so if it was a mortgage, say, your $200,000 house you had a $100,000 mortgage, the house is going to sell for 70% to 80% of its value. It’s going to sell for somewhere between, for a $200,000 home, 140,000 to 160,000.

Let’s take the low side. Let’s say that it sells for 100,000, or, sorry, 140,000 and the people owed 100,000 on the mortgage. Well, the mortgage company takes the first 100,000, pays them off. Then after that, the money above that is owed to the former owner. That would be $40,000. I would say, Jason, that our run of the mill overage is 25,000 to 45,000. Those are just everywhere run of the mill. Anytime you get a list; you’re going to find mostly ones in those ranges.
You’ll find a few six-figure ones and lots that are smaller than 20,000. We don’t bother with those. That’s a typical size, 25,000 to 45,000. If you think about just taking a third of that, a third of 25,000 is a little over $8,000 in fees. It takes about eight hours to do the work from beginning to end.

Jason Lucchesi: You’re getting paid a thousand bucks an hour pretty much to be doing that work.

Bob Diamond: Even for an attorney that sounds good.

Jason Lucchesi: Yes. Exactly. Let me ask you this, these counties receive this money, and I’m sure it’s all across the country. We’ve gone over the numbers before on some of the training webinars that we’ve done for folks. The number is quite alarming. Why aren’t …

Bob Diamond: I’ll give you some numbers.

Jason Lucchesi: Folks finding out more about this? Yeah. Go ahead, give us the numbers.

Bob Diamond: There are 3,007 counties in the United States. It’s 3,007 counties. Everyone holds a tax sale at least once a year. Bigger counties hold them monthly or weekly, but at least once a year they’re doing it. On most of those lists, you’ll find 30 to 35 leads that are worth pursuing. I don’t know what 30 times 3,000 is, is it 90,000?

Jason Lucchesi: That’s a lot.

Bob Diamond: It’s a lot. They pile up for three years at a time. On average, the dollar value of what comes into tax sales every day is $13.6 million. That’s according to JP Morgan Chase, so 13.6 million coming in. A couple of million dollars of that is overages every day. You’re basically in a system where you get a couple of million a day coming in. The question is, well, why don’t these people get their money? Well, the government is passive about it. They’re not opposed to giving people the money. They don’t have any budget to send out a sheriff’s posse to come to track you down and hand you a check.

If people find out about it and they come, and they ask for the money, they get it. If they don’t find out about it, then they don’t get the money because they never apply for it. Government bureaucracies are cold like reptiles, and they don’t do anything, they wait. If you ask, you get your money, but usually, people don’t because they don’t know about it.

Jason Lucchesi: You have to go through an application process, too, that’s-

Bob Diamond: Pretty simple, though. Simple application. It’s typically a one or two-page form. You’re just saying, “Hey, here was the house that I lost. It was my house. Here’s my copy of my driver’s license and a statement that I want the money.” It’s that simple. Nothing more complicated. The problem is if you don’t know about it, then you don’t even know to go and ask. In most counties, they don’t also send a letter or do anything to let you know about it.
They let you know before the sale, “Your property is going up for sale.” Pretty much it.

Jason Lucchesi: Every time you and I talk about this, it’s just always mind-blowing that not even TV stations would get wind of this and try and blow this up to make it be like, “Hey, our government’s taking advantage of these individuals that just lost their home.” You don’t hear anything about it, and I’ve always been like, “Why isn’t somebody talking about this instead of some of the goofy stuff that they’re talking about on TV?”

I don’t even watch the news, just because it’s always so negative. Why wouldn’t they do a piece on this? I’m so confused on why somebody wouldn’t do a bit on this. You think it would probably get a sweeps spot, like when the news channels do their sweeps. I have no idea why people don’t know about this.

Bob Diamond: That’s a good question. I don’t know the answer to that. I know that it doesn’t happen. That I know. I don’t know why that doesn’t happen. That is an excellent question and one I frankly have no idea why. I know they don’t, but I don’t know why.

Jason Lucchesi: I’ve never seen anything on it, ever.

Bob Diamond: Every once in a while, you see the specials, the state treasurer’s holding X number of dollars. This money isn’t held by the state treasurer so that never gets implicated. I think to some degree, and the government is very interested in keeping quiet about it. Again, they’ll give the money back if people ask. If they don’t say anything, then they get to keep the money. I can give you some figures. In California, for example, they keep $500 million a year. It’s a line item in their budget, that’s why I know how much money it is. Look up the state budget. For California, you’ll see it’s 500 million.

Jason Lucchesi: Oh my gosh.

Bob Diamond: Delaware is 80 million a year in their budget. It’s a budget for forfeited funds. The government, they’re happy to keep that money.

Jason Lucchesi: Wow. For folks that are wondering, why is there only a certain period that people can come and get this money? What happens once the date … I know what the term is, but I just wanted to ask you that question so folks can hear it from you. You’re the attorney here. I know there are specific statutes. I’m just curious from you, why are certain places two, three years and then after that it just goes back to the county?

Bob Diamond: It’s all-state law-specific. It’s a certain amount of time in each state. It depends on what state you’re talking about. A typical period is three years. What they assume is that the funds are abandoned after that time. Since they assume they’re abandoned, they transfer them to the state treasury. That’s their assumption. That goes back to English law, where everything belonged to the king, and essentially people got to use it during their lifetime, but that’s where.

We come out of English law, because, remember, we’re English colonies at the beginning. We still have the concept. If you think about it, if someone ultimately died, say, with no heirs, whatever money they have in their bank accounts, whatever cash around has to go somewhere. It could go to private companies, but then it might incentivize them to either kill people off or not to disclose when they have money. Companies are required to turn over any funds they have after a while to the state.

You’ve probably had that happen where you get some notice from your bank, “Hey, you have this savings account. It’s gone inactive, and if you don’t do something, like deposit some money or reactivate it, it’ll eventually forfeit.” I’m sure you’ve had that happen.

Jason Lucchesi: For example, California, they get $500,000 per year. What are they even doing with that type of money? Do you know, Bob?

Bob Diamond: They’re finding some way to fritter it away as state governments do. It goes in their general fund, and they use it for whatever. Anything from to firefighting, they need some money for that this year. Governments spend it. You know with the government, I think it’s you could give it as much money as you want and it would never run out of things to do with it.

Jason Lucchesi: That’s just crazy because I see, especially in, my parents are in Illinois, and they probably have a decent amount there as well. If you’ve ever been to the Chicagoland area because we’re from the suburbs, the roads, ever since I was a young kid they’ve always been working on the same roads over and over and over again. They even have tolls in that area of Chicago. I’ve always wondered how are we still working on these roads.

Illinois over the last few years has gone entirely in the wrong direction, especially state taxes are up at a dramatic high. When you hear about these overages, it’s like why don’t they do something to help out the state or help out with getting additional teachers, or, like you said, helping out fire departments, police departments. You see all these police officers or firefighters going on strikes over pay, and I don’t understand. We’ve got these overages, why can’t they take care of the problem? I don’t understand that.

Bob Diamond: The problem’s basically, I mean not to get too deep in the weeds about it, but it’s mostly pension obligations where they keep promising pensions, and now you have a lot of people that have gotten older that are now retired firefighters, retired police, retired, and they’re making a lot of money. They game the system a little bit.

I don’t know if you know about this, but what they do is they work, for the last couple of years they work all the overtime, and they get all the overtime given to them. Then when they retire, they get something like 80% of their last annual pay. Because they were doing a lot of overtime, they crush it. They’re getting huge, massive amounts of compensation for the rest of their lives. They usually retire after, what, 20, 25 years. They’re 45 or 50 when they’re retiring. They’re retiring with solid salaries. It’s hard for the government to afford it when that goes on for 30 years.

That’s why I think you don’t see the benefit of the money because it’s not going to the roads. It’s going to the people who are owed a pension.

Jason Lucchesi: Got you.

Bob Diamond: That’s a massive problem in Connecticut they’re losing.

Jason Lucchesi: That is a huge problem.

Bob Diamond: I think the government has an insatiable appetite for money. They have no discipline. They’re not forced to lay anybody off. It’s like if they start running out of money, it’s like, “We better raise taxes.”

Jason Lucchesi: That’s what we see in Illinois; for sure, the tax rate is enormous. There are probably other states out there. The only reason I know about Illinois is that my folks always talk to me about their home that’s worth $280,000 they’re paying almost $10,000 in property taxes. It’s in a suburb way, way, and it’s like 45, 50 minutes northwest of Chicago. I’m like, “Geez.” The taxes are outrageous.

Bob Diamond: You got the same problem in Connecticut and New Jersey and some other states too. It just is what it is. That also causes a lot of tax sales. Because when they start raising those taxes, fewer people can afford them and they end up losing their house to tax sale. Not to be like rubbing my hands over someone else’s misfortune, I’d never do that, but these folks lose their home and then to make it worse if they don’t ask for the overage money, they lose every dollar of value on that house, which is outlandish.

Jason Lucchesi: It is.

Bob Diamond: We can as entrepreneurs help fix that problem, which is one of the reasons that I love my business, because I help people get money back they never otherwise would have obtained. Often, it’s at minimum tens of thousands of dollars, often hundreds of thousands of dollars. It’s life-changing for them.

Jason Lucchesi: No. I hear you.

Bob Diamond: Life changing. Matter of fact, I just got a check in that I wish I had. I only deposited it on Friday, so I don’t have it here. The check was $146,000. That one, the owner was getting close to $100,000 check. She has cancer, so she’s undergoing cancer treatments. It’s such good timing. It’s not good to be getting cancer, but it’s good timing. She has $100,000 coming to her that she otherwise never would have had. She was crying over the phone when I called her because I called her on Friday. I went, “Hey, I’m depositing the check. I’ll have it back to you on …” I’ll have it for her on Thursday.

Jason Lucchesi: Oh, my goodness.

Bob Diamond: Because I have to wait for …

Jason Lucchesi: Oh, my goodness.

Bob Diamond: … to be clear. I told her I’d drive down and give it to her because she lives about an hour and a half from me. I figure it would be fun to do a personal visit.

Jason Lucchesi: Jeez, that would be a great video testimonial to get her. Jeez.

Bob Diamond: I have this vision in my mind. Remember those old Ed McMahon Publishers Clearing House commercials?

Jason Lucchesi: Yes.

Bob Diamond: Little Chrysler minivan driving it, with a giant oversized check. That’s my vision. I’m going to see if she’s up for that. A big check, and we’ll have some fun with it.

Jason Lucchesi: Just to put yourself into her world and you call her and say that you’re able to do this. I don’t even know. That’s got to be such a remarkable feeling for you to say that to her, and then for her to all of a sudden know that $100,000 is coming in. It’s such a rewarding feeling, and that’s why I love this business, this side of the company so much is because you truly are going out there and making a difference in somebody’s life and their world. She’s got cancer. She’s probably got bills. She’s perhaps having a really rough time right now.

Bob Diamond: She’s having a rough time. I’ve talked to her a couple of times. It’s one thing after another. There are a lot of costs because she goes to the hospital, there are always out of pocket costs, and it’s medical equipment. She can’t work, and she can’t do a lot of things for herself right now, so she has to pay people to do things. She can’t cut the grass. She can’t go shopping. She’s stuck right now.

Jason Lucchesi: This money is life-changing for her.

Bob Diamond: Yeah. It’s great to be that conduit. That’s, I think, one of the best things about this business. I’m that conduit that helps people when they need it. Everybody in these situations that loses their house in a tax sale is broke. Otherwise, they wouldn’t lose their home in a tax sale. This is the time when they need the money the most. That’s when we’re able to be there and help them, which I love.

Jason Lucchesi: I’ve got a question for you, Bob since you’ve done a boatload of these over the years. I’ve always been curious especially folks that have equity in their homes, why don’t they decide to list the house before it gets lost at the actual auction?

Bob Diamond: There are quite a few reasons. I think the number one reason is just the ostrich syndrome. If you have done any pre-foreclosures, you know that people often wait till it’s too late. They hope something will happen. They’re buying lottery tickets. They’re calling friends, hoping to borrow money. Sometimes they just let it get too far, and they do lose the house.

Another time, we’ve got a third of these are estates where the person dies. The family does not get their act together to pay the taxes. Sometimes that’s a situation where you have one ne’er-do-well child that’s living in the house not paying anything not paying the taxes. The other heirs are like, “Well, I’m not paying so that Suzy who never works can have someplace to live. I’m not paying those taxes.” That can happen.

Those are easy cases to work because we talk to the other heirs. We go and get the money and then it gets divided up among the heirs, which is simple. Those are the two primary reasons. Other ones, we can see health reasons where people, they wait. This woman had cancer, and she just sat in her house. I think she didn’t believe they’d take her house away because she had cancer.

Jason Lucchesi: Man. Jeez.

Bob Diamond: That, unfortunately, is not the truth. It’s the government. They follow the rules, and that’s that.

Jason Lucchesi: It’s unfortunate, and we’ve worked with folks over the years. I’ve always had investors that we’re partnering with. They always say, “Well, why aren’t these people just listing the property?” It’s like you said, a lot of it has to be a pride thing because yesterday we gave somebody a thousand dollars to do a move out expense. He told us flat out, “I was going to stay here the whole entire time, but you guys came and made that offer to me as a thousand dollar move out expense.”

Because we flipped it, we did a quick flip on it. It was a wholesale, and there were tenants still in there. We even had to follow the Indiana law for tenant law. The guy was going to stay the full 30 days, and we just came to an agreement, like, “Hey, if you need some extra money, some moving expense and you can move out a little bit sooner, we could give you a thousand bucks.”
I guess, Bob, is this kind of more like folks don’t understand that they can sell their properties or we’re just coming in and giving them a creative solution that they don’t even know about?

Bob Diamond: By the time we come round, they’ve lost the house. The house is gone. What they think in their mind is that “Well, the government sold my house, so the government keeps the money.” It’s pretty simple. They have no concept that the government sold your house, but they only keep the money to the degree that they were owed taxes. The rest of it is available for you. People don’t connect that. They think, “Government sold my house; therefore, the government keeps whatever money is generated.” They don’t combine two and two.

Jason Lucchesi: That’s too bad. I’m sure that’s a lot. Because when we were doing a ton of short sales, that’s where most people thought, like, “I’m just going to let it go, and that’s it.” Even if they had equity in the home, that’s just the mindset a lot of these folks are in. A lot of people, especially the individuals that we work with from a partner standpoint, they don’t understand that these people need us to come in and help them out from a creative perspective before it goes to the auction. Then after the auction, they have that mindset like with what you just said, “Well, the government sold it, so that money goes to the government.”

It’s unfortunate that that’s the way the mindset is, but it is what it is when you’re not educated on this field.

Bob Diamond: We do what we can for them too, and we’re the conduit that goes and gets the money. I also think just as a little sympathy towards them, they’re completely stressed out. If you just lost your house in a tax sale, you’ve got to move. You’ve got to figure out why does U-Haul charge $6 for a box. How do I find someplace? Even though I’ve got bad credit, I got to find someplace to live. Can I bring the dog? How am I going to tell the kid? How am I going to get together the money to move?

Because let’s face it if you do first and last month’s rent, one month’s security deposit, there’s three month’s worth of expense, plus your moving expense, plus utility deposits, and so on, and so on, and so on. It gets costly for them, and they’re stressed out. I think the thought that they could talk to the government and get money out of them is a very foreign thought to them.

Jason Lucchesi: Exactly. For folks that you’re doing this with, I’m glad you’re an attorney because you could give proper feedback on this. Is there any licensing to do this type of thing, to go in?

Bob Diamond: Great question, and no. Nada. There’s no licensing anywhere in the country on this. It’s unregulated, which is excellent. I mean you should never use that as a reason to abuse people or hurt them. You don’t have to register. Just go and help people. It’s just you’re providing that service. No, there’s no registration requirement.

Jason Lucchesi: That’s another thing that I enjoy about this is you don’t have to think about, “Should I be an agent? Should I not be an agent?” We get a lot of folks on the side before it becomes an overage, they’re like, “Should I be an agent? Should I not be an agent? Because I need access to the MLS so I could do comps,” and all that kind of thing. The beautiful thing that I like about what you’re doing, Bob, is you don’t need to have a license to do this thing. It’s pretty remarkable.

Bob Diamond: Now, that you mention it, it is remarkable. There’s no licensing and registration requirement. Again, you’re just providing the service really of making the applications for people and managing the process. There’s nothing.

Jason Lucchesi: That’s great. We’re coming to that part within the podcast to where I always ask this question. It’s not going to be any difficult question, Bob. I like to get this, especially from entrepreneurs, business owners, individuals that have that CEO mindset. Do you have any books that you would recommend that maybe you’ve read recently or any life-changing books that you’ve read that have helped you get to the point that you are in your life right now?

Bob Diamond: Yeah. There are a couple. I’m just reading, have you heard of The Road Less Stupid?

Jason Lucchesi: No. I haven’t.

Bob Diamond: A guy named John Cunningham, I don’t know if you’ve heard of John Cunningham.

Jason Lucchesi: No.

Bob Diamond: He’s well-known in … I’m going to see if I have it. I thought I had it on my desk. No. He’s well known in entrepreneurial circles as a guy who teaches you how to be a CEO on your business. What he’s talking about specifically in The Road Less Stupid is how often just a couple of decisions that cause you the most significant amount of pain. He did this exercise at the beginning of the book with me, and I thought, “That’s exactly true.” Where he said if you could take back just one financial decision that you made.

Jason Lucchesi: I’m going to have to write that down. The Road Less Stupid.

Bob Diamond: Road Less Stupid, and I thought I had it on my desk.

Jason Lucchesi: See, that’s why I always like asking these questions is because I get to find out new books for myself as well. Most of our folks, and not knocking what they’ve said, but most of the people that we have come on, say Rich Dad, Poor Dad, or Think and Grow Rich.

Bob Diamond: Those are good books.

Jason Lucchesi: Those are, and Richest Man in Babylon, those are great books. I love finding out from other folks some great books too. I’m going to write that down.

Bob Diamond: Give me one second, because I’m determined that I have this book. I have a two-year-old, and I just moved my office from, I live in New York City, and I moved my office from by Radio City Music Hall, 55th and 6th.

Jason Lucchesi: Nice.

Bob Diamond: I rent an apartment on the fifth floor in the same building where I live on the 20th floor.

Jason Lucchesi: Cool.

Bob Diamond: I own up on the 20th floor and rent on the 5th. I bring books up and down, and I think I just left me… The Road Less Stupid, to get to the content of it, so it said if you could take back one financial decision, a property that you bought, something you invested in, a partnership you went into and undo it, what difference would that make in your life?

I thought for me there were millions of dollars in difference if I could get out of the few bad things that I did. The few bad things that I did kill many of the right stuff. It’s like you do ten good things, you can kill with one bad idea. You’d kill the profits from the ten good things. Then he goes on and says, “If that’s the thing, how do you avoid those few stupid mistakes that cost you?” He talks about just going through the process of asking some right questions.
One of his questions is, “Who’s saying whatever it is?” If someone says, “Hey, Jason. I want to do an apartment building deal with you.” Well, the first question’s who’s saying it? Is it someone who’s done 50 apartment building deals, or is it someone who’s just moving out of single-family houses? The second thing is if they’re saying this is a great deal, then your next question is, “Well, how do you know it’s a great deal? What makes you believe that it’s a great deal?”

Do they have the facts to back that up? And just asking a couple of right questions, he said those can smoke out where you might make a mistake versus not.

Jason Lucchesi: That’s pretty cool.

Bob Diamond: I was like that’s such good advice. It is simply written. John Cunningham is one of the guys that just is looked up to by people that I look up to. I think I, like you, I always ask people that I admire, I’m like, “Hey, read any good books lately, or anything meaningful?” I think it’s a great question because this got recommended to me by a guy who just got a $40 million offer for his company.

Jason Lucchesi: Nice.

Bob Diamond: He’s a good friend of mine, and I’m like, “Hey, what are you reading today?”

Jason Lucchesi: That’s a great question that I always like asking because we have folks that come on here that have seven, eight-figure businesses. If we could share a little bit of what we’re doing, because one of the big things that I love is not just absorbing the information and that’s it, but consuming the information and applying it is what a lot of folks don’t do.
Even if they get into our training programs or whatnot, a lot of them they don’t take the information and use it as application out on the real world. If more folks did that, they would see a much more significant amount of success happening within their life. I appreciate you sharing that book. I’m going to go hop on and get it after we’re done.

Bob Diamond: You could grab it on Amazon. Think a hardcover is 20 bucks or something.

Jason Lucchesi: I’m going to have to get that, and I’m a big Audible guy, so hopefully it’s on Audible too.

Bob Diamond: It probably is. John’s a well-known consultant. I know a lot of guys that I know that have super-successful businesses, he talks about setting up systems and measurement and all that stuff. He’s a guy that came into the real estate business about five years ago, bought three houses in less than a year and resold them as a package and did some ridiculous like tripled his money.

Jason Lucchesi: Man, that’s awesome.

Bob Diamond: I was like, “That’s a guy that’s thinking at the level that I want to think about.”

Jason Lucchesi: Absolutely. That’s great. I’m going to go ahead and get that here in just a second. Two final questions for you, Bob, and then we’ll wrap it up. Any parting words from you? The second one is how people can find out more about your training on the overages?

Bob Diamond: I think my parting words would be, so this overages business, I believe, is a fantastic business. I think it’s a good fit for someone who wants a company where you’re helping people, and genuinely helping people and making a lot of money. It’s a cash business. You’re going to be reaching out to people, signing them up and then generating cash. Usually takes four to five months in total to do a deal from beginning to end. About eight hours worth of time. Super-profitable business.

I think that if you have the mindset of a wholesaler, it’s very similar except it’s different than wholesale. It’s not wholesaling. It’s dealing with just piles of money, getting a portion of it. I think a lot of the same benefits take place, where you don’t have to make an investment. You don’t need credit. You don’t need any money to do wholesaling. You’re just flipping contracts.

This is where you’re taking portions of a pile of money that you helped recover. I think it’s a perfect business. It’s my favorite one. We’re doing about 300 deals a year right now. That’s an outstanding rate.

Jason Lucchesi: That’s awesome.

Bob Diamond: We’re chewing through it. At the same time, there are 3,000 properties per day going to tax sale, so we’re not even scratching the surface of what’s possible. I think more people should be doing this. We offer training on it, and I want to see more people helped. I want to see more people in the seat on the opposite side of this microphone where they’re looking for something productive to do that’s profitable. I want to see those people helped, and then I want to see the people who have lost everything getting supported.

Frankly, I want to see the government giving some of this money back because I think it’s outrageous that they’re keeping it. If you’re going to find out more, I have a full presentation on it where I go into it from soup to nuts, good stuff, bad stuff, in between stuff, and give you all the details. You can go to http://www.noflippingexcuses.com/bob and that way you can register. It’s a free webinar. You’ll learn all about all the details of it.

Again, I have the time to go into the details. It’s about 90 minutes of really digging in. I think it is the coolest business in the world. On Thursday, when I go and visit the woman with cancer. Her name’s Janine Pierce, by the way. When I go visit Janine on Thursday to take a check to her and give her money when she needs it the most, that she would never have had without us is super-satisfying, like psychically satisfying.

Jason Lucchesi: I’d say maybe your eyes might sweat that day too. I’m just throwing that out there.

Bob Diamond: I’m a crier.

Jason Lucchesi: Us guys, we don’t cry. Our eyes sweat.

Bob Diamond: I’m a softy. I’ll admit it. I don’t even pretend not to be. I know she has kidney cancer, so it’s serious. I’ll be crying over that. At least I get her something, and it’s good that I’m there with something good. I’ll bring some flowers and plan on spending time with her just talking to her and do what I can. I think to be able to be that conduit for her is an honor.

Jason Lucchesi: I’m getting goosebumps just having you tell me about that, man. It’s a fantastic thing that you guys are doing over there. I love it. That is just awesome. Let me know how that goes. I can’t wait to see the video.

Bob Diamond: I have to ask her her permission, but I want to do the Ed McMahon style video. I’ve been talking about it forever.

Jason Lucchesi: That would be awesome.

Bob Diamond: … let’s do this.

Jason Lucchesi: Jeez, that would be so cool. I’d love to see that. I would love to see that. Please let me know if there’s anything we can do to help out. I know, gosh, giving somebody like that, that’s in that position, that type of a check is going to be life changing for her. With how far her cancer is, that might be something that will give her peace of mind with where she is.

Bob Diamond: It’s going to help her. All of these situations are hard situations, sometimes just people with children and families. When you bring people when they have kids, that means Christmas happens. It means school clothes happen. It means the books arrive. Little league fees happen. It’s all those things. Money’s just something everybody can use. Everybody’s got to eat and pay the rent. When someone’s gotten so broke that they lose the roof over their head, believe me, they need this money. It’s a feelgood business that way.

Jason Lucchesi: It is.

Bob Diamond: You’re always helping people who need it.

Jason Lucchesi: I love hearing when we do these training classes, and I have individuals that sign up for your training, and I understand from them in five, six months that they’ve been able to do four or five of these and they’ve changed people’s lives. It’s an excellent feeling, and I love doing these with you. I can’t wait.

Folks can go over to http://www.noflippingexcuses.com/bob. We only were able to touch on it and scratch the surface on this podcast. This was a fantastic podcast with Bob. He shared a ton of great information. The training is even more amazing. Bob, I’d like to thank you for your time today, my man personally.

I’m looking forward to hearing from you how that process goes with that lady and looking forward to it. Thank you so much for being on the show today.
Bob Diamond: You’re so welcome. Thanks for having me, and I look forward to seeing a few people on training, and we’ll help some people get started and just rocking out and help these people. Because I need more help in helping people. I’m doing 300 deals a year, and there are 3,000 sales a day is done. We need some more people on board, people who want to make money and want to make a difference. That’s the perfect person for this.

Jason Lucchesi: Absolutely.

Bob Diamond: Thanks, Jason.

Jason Lucchesi: Thanks, Bob.

Jason Lucchesi: Hey guys, for those of you that are on right now, you could visit noflippingexcuses.com/bob to check out that free training class. If you need anything from either myself or Mike, you can feel free to reach out to us, support@jasonlucchesi.com. Again, that’s support@J-A-S-O-N-L-U-C-C-H-E-S-I.com. That’s it for this episode. Thank you for tuning in on this fantastic show that we’ve had with Mister Bob Diamond.

I’d generally say go out there and flip a house, but go out there help somebody get an overage deal done. If you need help with the training, make sure you go and check out the training with Bob at http://www.noflippingexcuses.com/bob. That’s it. Thanks. Take care. Have a great day. Bye now.

Book recommendation from Bob: The Road Less Stupid https://amzn.to/2R2visD

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