May 11, 2020 by - Smart RE Coach

How Do Terms Deals Work During COVID-19?

The short answer? They’re working better than ever.

Ever since the coronavirus situation started, we’ve been getting inundated with questions about our system and the terms deals we do.

“Does this system still work?” “Are you still doing deals?”

“How do terms deals work during COVID-19?”

Well, I’ll answer the biggest question first… “Does this system still work?” YES!

It’s working better than ever because the terms business is set up to help people in situations just like this. When sellers are having trouble selling their house, we can help them. And when buyers aren’t able to purchase a house through traditional means, we can help them too.

In fact, I’d even say that during my 29+ years of real estate, I’ve never seen terms deals working as nicely as they are right now.

This situation gives you the opportunity to help people. You can be the person that buyers and sellers want, need, and—quite frankly—deserve. Because you’re the one that will be able to get them out of the sticky situation they are finding themselves in.

So, yes—it works. Overwhelmingly so.

Why terms deals are working better for BUYERS right now

At the time of writing this, we’re right in the midst of the COVID-19 pandemic. We’ve seen an economic crisis like never before, social distancing, and layoffs in nearly every industry—with no clear end in sight.

One thing that has come up with regards to real estate is that the banks have raised the bar for their credit scores. People who were previously guaranteed a mortgage are now finding they don’t qualify. In our business, we’re getting calls from our rent-to-own properties where the buyers were about to close but have been stopped by the bank.

At this point, no one knows how long this will go on for. It could be a few months or a few years. And with all this uncertainty, buyers are looking for different ways to purchase a home.

Another factor is that jumbo loans are more or less non-existent. If you’re unfamiliar with jumbo loans, these are mortgages that exceed the limits set by the Federal Housing Finance Agency (FHFA)—they’re used primarily to purchase expensive homes where a traditional loan wouldn’t cover it.

These jumbo loans are practically non-existent right now. There might be a few people in the country doing jumbo loans, but you’d have to be incredibly well-qualified to get one. Once again, all of those people who may have been previously relying on a jumbo loan are now out of luck—and they’re looking for a different way to purchase their home.

Right now, homebuyers around the country are finding out they don’t qualify for a mortgage or will be unable to purchase a home that may have been a sure bet just a month or two ago. Those of us in the terms business are perfectly equipped to help them get into the home they want and deserve.

Why terms deals are working better for SELLERS right now

A lot of the things mentioned above also apply to sellers. Because buyers are having a hard time purchasing homes, sellers are having an equally hard time finding buyers who qualify.

To make matters worse, many people that have bought properties to rent via Airbnb or VRBO are finding that their reservations are canceling and they have large vacancies over what was previously their busiest time of year. They are looking to sell their properties to get out of this situation—but it’s harder than ever to find a buyer. And no one wants to buy these as investment properties since they know they won’t be getting rentals any time soon! They need to find people who actually want to live in the home, not just rent it out.

We usually tell our sellers that 60 to 82 percent of buyers cannot get financing. That’s great for our sellers because it means those people are perfect candidates for a terms deal.

But now? Nowadays, that number is in the 90th percentile! It just went up dramatically, thanks to the reasons I mentioned earlier. These people that can’t get financing need terms deals to get into a house.

And it also just so happens that we’re some of the only people in real estate that are still doing deals right now. We can do almost everything virtually, and these deals work in locations all around the country.

What this means for you

If you’re already doing terms deals, then you’re in a great position. You have the ability to do many more deals right now and help out a lot of people during these tough times while creating a lot of income for yourself.

If you currently have a job and you’re doing deals on the side, then congratulations! This is the time to get busy and do as many deals as you can. If you’re able to put a little more effort into real estate, there are some massive opportunities available to you right now.

And if you’ve never done a term deal, now is the time to get started. People need our help more than ever—and there’s a lot of money to be made for everyone involved.

If you are just getting started, I have one piece of advice. Please get a mentor and educate yourself before you start in on your first deals. There are so many small nuances to these deals—a mentor will be able to guide you through these situations. Without a mentor, you’re putting yourself at a big risk.

Our Smart Real Estate Coach community is a great place to come for much-needed support as you embark on your first few deals. And if you’re just getting started, our Quantum Leap System (QLS) is purpose-built to get you up and running, with everything you need to start your first deals—from the tools and forms we use to call scripts, 1-on-1 strategy calls, and more.

All in all, here’s the gist of what’s going on right now. In terms of business, you have the opportunity to create a decade’s worth of income in the next 6 to 12 months. With our three payday system, you get paid at the beginning of a deal, monthly throughout the term, and again at the end. It’s a continuous cash flow that can set you up with consistent income, regardless of what’s going on in the world.


There’s never been a better time to start!

Are you doing terms deals? If not, what’s stopping you? Go to


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