The Level Up Podcast w/ Paul Alex

Episode: Buy Money at a Discount: Surplus Proceeds Explained
Guest: Christopher Craig
Date: September 6, 2025

Episode Overview

In this episode of The Level Up Podcast, host Paul Alex Espinoza welcomes foreclosure and surplus proceeds expert Christopher Craig. The conversation takes listeners through Chris’s fascinating journey from Marine Corps veteran and tech worker to a multi-million-dollar entrepreneur specializing in foreclosure surplus proceeds—a little-known real estate opportunity that helps distressed homeowners claim money owed to them after foreclosure sales. Chris unpacks how this system works, shares hard-won life and business lessons, and offers actionable insights for beginners who want to build wealth even without major startup capital.

Key Discussion Points & Insights

1. Christopher Craig’s Origin Story

Timestamps: 02:19 – 10:36

• Early life and military background:

  • High school straight-A student, but college didn’t feel right, so enlisted in the Marine Corps (02:27).
  • Career as a communicator in the Marines—including a pivotal stint at Guantanamo Bay during the migrant crisis (02:52).
  • Transitioned to various jobs post-military, notably during the late 90s tech boom.
  • Became a tech worker in the dot-com era, quickly earning six figures in his 20s (04:19–05:01).

• Career pivots:

  • Let go from his first job post-military, which opened doors to better opportunities (06:04).
  • Discusses the importance of adaptability, learning to "adapt and overcome" (06:24).

"You learn how to adapt and overcome, and you basically say, look, I've got tools in my bucket and I'm going to use them."
— Chris Craig (06:24)

2. Entry Into Real Estate & Foreclosure

Timestamps: 07:41 – 13:30

• Breaking into real estate:

  • Introduced to the foreclosure world by a local “foreclosure guru” after the tech crash (07:56–09:21).
  • Built relationships: "At the end of the day, it’s build your relationships. Because that’s what life’s about." (09:32)
  • Began learning the mortgage business, foreclosure process, and deal-making from the ground up.

• Evolution of the market:

  • Contrasts the early 2000s market to today: from a handful of individuals specializing in pre-foreclosures to today’s crowded, tech-driven ecosystem (10:36–12:17).
  • Warns of a coming foreclosure storm—surplus proceeds opportunities growing as more people lose homes due to rising interest rates (12:08–13:30).

"Foreclosures are up 28 to 32% in most jurisdictions across the U.S. The storm’s coming. It's just in its infancy."
— Chris Craig (12:17)

3. Surplus Proceeds—the “Buying Money at a Discount” Business

Timestamps: 13:30 – 18:17

• How surplus proceeds work:
  • When a home sells at foreclosure for more than what's owed to the bank, the difference (surplus) legally belongs to the former homeowner—but few know to claim it.
  • Most homeowners, traumatized and overwhelmed, ignore or discard legal notices about surplus funds.

"I don’t think I ever had anybody not call me because they’re broke, they’re about to be evicted, they have no money for first, last, and deposit... Offering them cash for their surplus funds is like buying money at a discount, guaranteed money at a discount."
— Chris Craig (16:31)

• Practical strategy:
  • Chris physically attends courthouse auctions, identifies surplus cases, and helps homeowners access owed funds in exchange for a negotiated portion.
  • Process for releasing surplus through the court can take 2–9 months, hence owners may take less upfront for quick cash.

4. Building a Multi-Million Dollar Surplus Proceeds Business

Timestamps: 18:17 – 25:04

• Track record:

  • Chris has managed over $10 million collectively through surplus proceeds deals over two decades.
  • Details business cycles: more opportunity during economic downturns, less when markets are stable (18:24–19:26).

• Levels of competition and innovation:

  • Unlike fix-and-flip or wholesale real estate, surplus proceeds is less saturated: "There is very little competition in this process. There’s very few people that know how to do it." (25:04)

• Legal frameworks:

  • Early on, Chris earned a percentage for alerting people to their claims, but regulations changed, requiring more “consideration”—now he buys the right to the claim outright.
  • This tweak ensures compliant, profitable deals, even in states with strict laws (21:49–23:45).

5. Advice for Beginners & Partnership Opportunities

Timestamps: 19:31 – 27:32; 39:34 – 44:44

• Barriers to entry:

  • You don’t need big capital; Chris explains he partners with others who bring leads, leveraging his funds, legal team, and expertise (20:36–21:15).

• Potential earnings:

  • On a $100k claim, a beginner working with Chris can earn $10k–$20k per deal (27:29–27:32).

• Open invitation:

  • Chris is launching a free educational community and offering a "done with you" service: “All they have to do is show up... and be ready to make some deals and partner up.” (40:45)

"If you could make an extra 5, 10, 15, $20,000 a month part-time—for some people, that might be all you need to do."
— Chris Craig (34:19)

6. Mindset & Motivation for Entrepreneurs

Timestamps: 27:55 – 39:00

• Importance of mindset:

  • “It’s all about mindset. Believe in yourself because other people believe in you.” (32:45)
  • Emphasizes grit, perseverance through setbacks, and leveraging every lesson.

• The power of mentorship:

  • Advocates for mentorship and coaching—something rare 20 years ago but crucial today: “If I had somebody like me today...we could speed that process up into months—or even weeks.”

• Reward and fulfillment:

  • Satisfaction comes from building something yourself—personal achievements translate into confidence in business.
  • Entrepreneurship is a numbers game: treat every “no” as a step closer to “yes.”

7. Surplus Proceeds Opportunities by State & How to Get Started

Timestamps: 41:14 – 46:46

• Best states and markets:

  • Las Vegas is currently #1 for foreclosures; Texas and Florida also rich with opportunity (41:23–41:37).
  • Recommends analytical resources like resiclub.com for tracking hot foreclosure markets.

• Getting started:

  • First step: set up the right legal and tax structure for your business, with Chris offering direct coaching (44:51–46:22).
  • “I will guide you and coach you... when you work with me, you get all this knowledge built in 25 years and a lot of graduate education.” (46:10)

Notable Quotes & Memorable Moments

• On seeking opportunity in adversity:
  "Getting fired on my first job out of the military was probably one of the greatest things ever." (06:04)

• On making a difference:
  "The surplus proceeds opportunity is about helping people put money in their pocket. Changing lives and making money yourself." (17:59)

• On partnerships:
  "Collaborate. Because we can grow faster and cover more ground and maybe reach more lives, help more people." (41:02)

• On perseverance and action:
  "It all comes down to action, guys. You have to be willing to take the step." (46:46)

• On value of knowledge:
  "Knowledge and education is power. The more you learn, nobody can ever take that from you unless you get a head injury." (48:24)

Important Segment Timestamps

• Chris’s background & path to real estate: 02:19–10:36
• Foreclosure and surplus proceeds fundamentals: 13:30–18:17
• Process of finding and negotiating surplus proceeds: 16:31–18:17
• Legal/strategy evolution: 21:49–25:04
• Typical beginner earnings & partnerships: 27:29–27:32; 39:34–44:44
• Advice and motivation for new entrepreneurs: 27:55–39:00; 46:46–48:24
• States with biggest surplus opportunities: 41:14–41:37
• Getting started, business structure, tax tips: 44:51–46:22

Connect with Christopher Craig

• Instagram: @ChristopherCraigOfficial
• LinkedIn: Christopher Craig Official
• Website: SurplusWithChris.com

Final Words

Chris closes with a challenge to take action:

"You gotta start somewhere. It’s baby steps—we crawl before we walk. Once you do a deal or two... you get a little bit more confident." (48:12)

This episode is a comprehensive guide to building wealth through an often-overlooked real estate niche, packed with step-by-step insights, hard-won wisdom, and motivational fire—ideal for anyone seeking financial freedom while genuinely helping others.