Owner Financing a Family Property for $108K Profit

As long as the house is livable, fixed up, it's over a million, and he left skin on the bone for meat on the bone rather for the buyers. Win win win. I am gonna share screen in one half of a half a second. I do want to introduce our buddy Kyle, who's been Kyle.

How?

When did we meet?

What year?

Uh.

Probably early 2023 or late 2022. Probably more late.

After COVID too. Okay. So Kyle's been— Kyle was high 6, working with us for quite a while, and I'm going to have him tell just how he found us and his brief story in a second, but— and what he does in addition to real estate. But Kyle's got a Payday 3 coming up any day now. Nick and Kyle, I don't know, within a week or whatever it's going to be, but it's in underwriting. So we wanted to show you the full actual deal structure, not proposed. This is a cool one, a financing deal. We're going to go over that in a second. But Kyle, if you could just briefly, as people are coming in still, what you do, how you found us, and then we'll queue up this deal too, just so they can understand who's talking here.

Yeah. So I work for the fire department for a living and You know, my time's coming to an end here pretty soon. I got another couple years and I was looking, you know, to get into real estate and such. So I did a couple long-term rentals and those were going fine. But at that same time, interest rates started going up and it was tough to make things cash flow. So I was looking to, I knew there had to be a different way, so I just started looking around and such. And that's where I found you guys on a podcast. I listened to the podcast. I was like, oh, okay, that makes sense. Because there's a way to get into a deal with no money in a sense, or you can negotiate your deal too on interest rates or whatnot. And so that's, I reached out to you guys and then got started and such. So yeah.

Awesome.

Good.

Kyle and I were talking yesterday just about his experience, and I want to unpack some of sort of the non-deal stuff, and then we'll jump into his deal. And here's why. You guys know I've been screaming about this for a while, and that is, if it was just for the deal, that's kind of shallow as far as an experience, number one. Number two, if it was just to learn a skill set, every single person could do it. It's all the other stuff, right? It's the curveballs. It's the— like, he's working on payday 3. I'm sure there were curveballs him and Nick can talk about, but curveballs, mindset things, outside third-party things like just the whole picture. So, Kyle, just some of the stuff you shared with me yesterday in our 2-minute conversation, if you could just share with them, because you're doing other asset classes now and other exits now to coincide with your retirement. So what else did you glean, let's say, in the last few years?

It was a lot, you know, because, because coming from the fire department, that's a completely different job in a sense, you know. So my education was— I was brand new in a sense coming in. So a lot of it was just Learning my systems. I had no idea about systems, asset protection. So now I'm set up in series LLCs, taxes, hooking up with the right people to do the right taxes. I'm getting good tax returns and getting full tax advantages this year. But I'd say probably one of the biggest things was, like I said, is the mindset piece. Because the way I was raised, my parents, they kind of came out of the Depression and their parents. So it was a lot about scarcity. And the scarcity mindset, you know, I think that gets passed on. And then when you start surrounding yourself with groups like this and people that think big, you know, big picture and how to make it happen, that slowly changes you. I think that's been a big piece in my journey into where I'm going now. And then too, the other thing, I mean, shoot, every January, right? Got to turn your goals in, got to know what you're going to do that year. So I still do that and I got goals for the end of this year and then I got a 4-year goal with it all planned out, right? The smart whole SMART plan and And then a 5, 6-year goal that's even bigger. So it's a combination of everything. I think that was huge in keeping it propelling.

I love it. You guys, from this point now, I'm going to stop early enough for you to please jot down yourself what questions come up that you either want to ask Kyle after we do this deal about his deal, about conversations, or about his journey mindset-wise. Anything you want to ask. So The court's going to be yours here. The floor's going to be yours in a few minutes, but I want to walk through his deal first. Kyle, while I'm calling up the deal structure board, can you just cue this up? So we'll go source, because I want to comment about the source, but let's talk about the source and how this thing came about, and I'll call the deal up, and then I want to talk a little bit.

Yeah. The source was actually kind of cool because it was— this came from my family. So this was my My grandmother's home. My dad was raised there. My aunt was raised there. My grandma passed away, went to my aunt, and then my aunt passed away and it was going to my dad. And he's about 75 and they're just looking to get this thing off their plate and such and just be done with it. And it needed a lot of work and it was older. Last time it was remodeled was probably the '50s. So homes in that area were going for about $1 million. I figured, you know, just rough estimate based on all the work that they needed, they might sell for $800,000. You know, that's kind of how I was looking at it. And then I just did the math on this, Chris. It was interesting. I go, hey, what if it sold at $800,000 and they had to pay a 6% realtor fee on top of that? That would've cost them an extra $48,000.

Yeah.

So I was like, oh, so, you know, just kind of even another win for 'em in that sense. So what I did, Is a lesson I've learned from you. I formed an S corporation and all that and got it set up. And I had my company buy it from my dad for $850,000. So he made $50,000 and then we found a tenant buyer and then turned around and sold it to them for $899,900.

Okay. $899,900. So let me piece in a few things. Now we have that baseline, you guys. So what I wanted to point out here, and I think I just did a rant on this maybe a month ago, and then Derek did one. And that is Kyle was not hesitant to talk about what he does. If he didn't talk about what he does, and you might, some of you might say, well, why wouldn't he? Well, there's a percentage of people on this, on this call right now who are afraid to tell people what they did. I know this for a fact because you've told me. Kyle was not afraid to do that. So he got this referral. And when you see what the end result is for the 3 paydays, you not talking about what you do is over the top costly.

Right.

Right, Kyle, any comments on that?

I mean, that, um, so yeah, I have, I have a huge imposter syndrome. Huge. When I first started dialing, like I told you, I would sweat. My wife would be like, why you stink so much? And I'm on my phone. Oh, you know, it's like, you know, so just that imposter syndrome, just getting over it and just going, actually going out and talking to people and just get used to talking to people and you just become more fluid and comfortable.

Yeah.

And like some of you, I remember critiquing Kyle's call saying, tell them what you do locally. Like you're very respected. So some of you that are in a profession that also carries some credibility, I say use it. I remember doing your calls and saying that. Okay, so this is an owner financing deal and it's principal only, right?

Yes.

Okay. The original term, because it's not what the end result was, the original term was structured how many months?

The original term was for 60 months.

60 months. Now you guys, Picture this. He helped his family immensely. This is a super win-win. This is why this is so cool. And Kyle, you also, didn't you take it as is and had to take junk out and stuff for the family? Yeah. Yeah.

No, we took it out because my aunt, you know, she was a little bit of a hoarder. So that place was just stacked. So we got in there and did that and then got a deep cleaning on it too. That way, you know, people can walk through.

Actually go through it.

Okay.

All right, so let's queue up. So we know the seller situation, and Nick will chime in to fill any holes because he did this with you from like, I don't know, this has been almost 3 years. So let's queue up the buyer, but let's also talk about, I don't remember at all, did you guys, you and Nick get a lot of buyer calls at the beginning? Talk about the activity first.

I think the activity was really hot on this place. I got a lot of calls, so that was really good and it gave me a chance to really kind of filter people out and take the incoming sheets and, you know, just working with the bot on the buyer side and explaining to them how to walk through what the lock code is and using the, you know, of course the exact words. Nick helps you out, right? Give you the words to use and all that.

Awesome. And then how many did it take to get a next step form from this particular buyer? Then we'll talk about the buyer.

Oh, shoot.

Ballparking, it was a while ago.

I'd say 5 or 6 Next Step forms. I think, is that right, Nick? I mean, I think we probably called on, followed up with like 3 or 4 people, you know, right? Because they have to do what you tell them to do. And if they're not following through, right, they're not.

Can't chase them. Yeah, we can't chase them. But it was just true to, true to the averages, Dad, and that we tell all the people that we work with. It was, yeah, I think it was after like, uh, 5 to 7, in the 5 to 7 range, we found our buyer.

Nice. Very cool. Okay. Talk about the buyer, you guys, why they need this pathway.

My understanding, so what's kind of cool about this buyer is they're brothers, right? So they went in together. One brother already lives next door with his family. Ah, right. In Alameda, which is in the Bay Area, Oakland area. And then the other brother, my understanding, was living all the way in San Francisco. So this, what this did is that they went in together. Now they own a piece of property together and it gets the family together too.

Nice.

Nice.

And then why couldn't they buy a house? Was there a reason they didn't qualify? Do you guys remember?

It was— refresh my memory, Nick, but I think it was more to— they both own businesses too. And there might have been a little bit of—

We had— they had a family business together that they were doing together, but then they also had another, other jobs. and other work and ways that they were bringing in income. So it wasn't just the family business, it was other ways that they were bringing in income. And that's why they were at a position where they wouldn't be bankable right on day one. And it actually was more like 2 and a half years ago that we were working together on this, that this went true, this went true to form. Kyle, meaning that the buyer was great, did everything that they were supposed to do, made their payments on time, made their deposit payments on time, like their future deposits. And they got to the end. Yeah, they needed a few more months, but that's always normal.

Well, let's talk about that, Nick, because Kyle had 60. We're at month 28-ish. They're cashing out sometime this month. So Nick said they were at the end of the term. Why do you say that if that's not triggering 7 thoughts? And you guys said, because they set the term up for 24 months so that Kyle had full control over this. He has more time left. If they hit a skid life-wise or credit-wise or whatever, he had the option to renew them or not. So they've been in there 4 months. Why? Because it did everything they were supposed to do, and Kyle wasn't about to kick them to the street. So this is cool about our system, how you keep control.

Yeah, gives you control. That's exactly right. Because if they weren't doing— if they didn't make their future deposits or they were late, super late on their rent, then we didn't have to work with them. We were well within our rights to say, all right, let's just clean this out and sell it again on another rent-to-own.

We have plenty of time.

Yeah. But this was someone that they did everything they said they were going to do and they were, they were making all the payments on time. So there was no reason for us to Kick them to the curb.

Let's talk about then you guys, again, I don't remember 28 months ago. I don't remember last week. So when you did your buyers meeting, did you do it virtually? Did you do it by yourself, Kyle? Did Nick come in? Like, how did you guys conduct the buyers meeting? Because it was your first buyers meeting.

No, we did it virtually. Nick was there on the phone and then I was there and they were there as well, of course.

Yeah, I didn't fly to California.

Um, everybody was virtual, but Kyle was not with them.

Kyle was there in person with them at the house. Okay.

Okay.

Very cool. So end result was, what was the total deposit? And then how did you guys break it up? I do remember that it was broken up.

Yeah, the total deposit was $50,000 and then they, they came in with $30,000, then $10,000, $10,000.

$30,000 at signing.

Yep.

And then $10,000 and $10,000.

Yeah.

And they made all those on time.

Yes.

Well done. Yeah. Okay. So talk about, especially for the newer people or even new to, to, to creator in our world, Kyle, talk about that first check. Like just confidence-wise, I wanna know what your knee-jerk was, if you can remember. Oh yeah.

Aha. Um, I, I think it was a couple things. It was first, of course, a, a feeling of like accomplishment in that sense, you know, just personally. But it also was a sense of security in the sense that they're not going to— they're not going to want to walk away from that. That's a big chunk of change for them. So, you know, that they were in and that they were serious and ready to go.

Well, listen, can I just insert one thing here? Yeah. We're not— I mean, this almost— this deal is like textbook in that the deposit is actually only the amount that we marked it up by. But that wasn't all— that wasn't intentional on Kyle and I's part. That was just the best buyer that we were able to get after, like Kyle said, we called several next step forms. We had several people going in there for viewings. So that was the best we could get. And it's just luck had it that that was the exact number that you marked it up by.

Even though we're going to have what you're going to see in a second, some, some pretty aggressive principal paydown. Let's do that. So monthly payments to the family.

$1,500 a month.

$1,500 per month payment from the buyer.

$3,434.

Didn't we have, so we had the $1,500 plus we had some taxes.

Yeah.

Yeah.

So taxes are like roughly $1,260 a month and then insurance is roughly $118 a month.

So I think we were at like $2,850 or so given that $2,800 and change.

Yeah, $2,845 or something, $2,850, something like that.

Yeah. Okay. So what was the— I'm glancing at my notes at the same time. So the spread here to make it easy was about $1,600, almost $1,650?

Yeah.

Yeah.

Like $1,649.

Okay, sweet. So, uh, you guys just so you're tracking, and I'm going to be quiet in a little bit and you can ask questions of Kyle and Nick, but Payday 1, Okay.

And that's over 28 months too, right? Just to clarify. Oh, you got it there. Sorry.

Yeah. Good. No, good point. Because 28 months, not 60, this deal would have been even bigger. Not that Kyle's upset at all with this. What's going to come off of the end result here?

Let's see, 28 months too, because. Right.

They've—

we were supposed to close at the end of January 31st and now they've had to go longer. So we're making a little extra for the extra time.

They have to pay rent all along, all on the time that they're still in the house.

So yeah, the cash flow was— I did it backwards. guys, but the cash flow is like $589 rounded up, $588 and change times 28 months. And that's where this came from. Okay. Everybody with me? Clear as mud. Perfect. All right. Price premium. What's the difference between the $850,000 and the $899,000? So $49,900, correct?

Yep.

Okay. Principal paydown from this $1,500,000 down here.

Was $42,000 over times 28, $1,500,000 times 28.

Thanks.

42.

Can you guys see, like, if the buyer went longer, Kyle wins, but is this not a huge win for him and a huge win for the buyer? Of course, this is a huge win. Um, okay. Minus the deposit they paid, you gotta give 'em credit, obviously, when they cash out. This is exactly what's gonna happen on his payday 3 here in a few days. Uh, that leaves a cash out payment of like 41.9, just under 42.

Yep.

Less than, less than closing costs. That's where he is roughly. So the total, um, on this down the bottom, Kyle, I got $108,000 and change. $108,300?

Yep.

$108,390 roughly, or $190,000.

Uh, so $390,000 and cents. So I'll say $391,000. So that's his payday. That's all paydays. Uh, this is payday 3 right there. So payday 1, payday 2, payday 3.

This is a true win-win-win. Kyle wins, Kyle's family wins, and the buyers win.

Yeah, I should ask that, Kyle. So how's— what's your family feeling right now? No, this is cashing out. Your dad, I think it is.

Yeah, no, they're excited because, you know, I mean, because they're also too, they're pushing 80. So I'm trying to help them get close to me so that way, you know, I could do the shopping, take care of, you know, we're kind of at that point. So They're excited. They've actually started, uh, like getting rid of stuff, decluttering their own home to get ready for— to, to, to move. Yeah. So this is huge for them.

Now I gotta ask, 'cause you just said decluttering their home, what are they doing with that house? Are you doing that one too?

Well, I think they're gonna sell that with, with this and they'll get 'em up into something good up here.

Oh, to get the cash and move it up. Yeah.

Yeah.

Awesome.

All right guys. Um, I'm gonna open up to you guys, Nick and Kyle. Is there anything I didn't ask? 'Cause I went very brief through. We had like, Any nuances at all? You've had a, I don't know, 2 or 3 months you've been working on the closing out of the Payday 3. Anything that is worthy of sharing with these guys to know, Nick or Kyle?

Go ahead, Nick.

Yeah, the only thing that comes to mind is, Kyle, if you want to talk about, because I get this question a lot, do you want to talk about how much like interaction and maintenance and like servicing this deal that you had with the buyers in there? There were a few things that you called me over the years like that you didn't know the answer to. But generally speaking, how was your like communication and like their requests and things? Like if you want to talk about that, because it also— it's, it's like, oh, it's so insurmountable. There's so much I'm going to have to do. But yeah.

Nick, I was going to say also for Kyle to think, well, to share is like any ahas during the process, like, oh shit, or this was really good. Like anything that comes to mind about the ending of this as you're wrapping up.

So I think to answer like Nick with your question there, it was pretty hands-off once we got set up and got going. It's pretty hands-off. You know, I have, you know, other long-term rentals and I'm responsible for maintenance and repairs and things like that. And that eats into your cash flow. And anything that comes up where the, with this, that they're going to be the homeowner, so they're responsible for all the maintenance and repairs. One thing that came up was like the furnace. I mean, that thing probably hasn't been replaced since the '50s. So that would've been a huge expense for me and really eating into that cash flow where they They took care of it.

So, oh, they did replace it during the term.

Did they?

Yeah.

Or they, I don't know if they did or didn't, but I didn't have to. Yeah, it was, it was on.

I didn't hear about it. Did I remember there being, wasn't there something with termites or something? There was a pest issue, wasn't there?

Yeah.

So there was in the beginning.

Yeah, there was a, there was a couple things in the beginning. Um, so there were some termites and, uh, I agreed to to, you know, to, to help 'em out on that. And, and so I, I took care of part of that. And then the other thing that came up—

Yeah.

Well, you split it. I remember that.

Yeah.

We split that. And then the other thing that came up was there was a, um, a sewer line that, uh, from the house to the street that had disintegrated, right? Because the house was built in the '30s. And then, so that had to get replaced. And so my parents, you know, they actually paid for that because that was supposed to be on the buyer, right? That was supposed for the, not the buyer, excuse me. That was for the, um, The person I'm buying it from, it was technically a responsibility.

Yeah.

So they, so that got taken care of by them.

So the estate basically had to. Yeah.

Yeah.

Um, okay.

I'm sure the buyers were tickled pink with that. Yeah.

No, they got a new sewer. They know it's going to flow.

You guys must have questions and it could be, what'd you do with this particular piece? Or what'd you say to the buyer? Um, but I want to open up to you guys just Either speak up or throw your emoji hand up. We'll take some questions here. I'll pretend to have his deal first and then we can pivot. Hey, Paul, go ahead.

Yeah, thanks for presenting this, Kyle. On the— about the sewer. So was there something in the agreements that were drawn up that said that, yeah, if anything happens to the sewer, Or certain.

Oh, you got muted, Paul. There you go. You're back.

Sorry about that.

That's okay.

So in regards to the sewer, was there something in the agreements that said the seller was going to pay for that?

No, there was nothing in the agreement. It was just more of a technicality that is. supposed to be the sellers. And so we're just people doing the right thing and building a relationship too with a tenant buyer in that sense. And they didn't have my parents have a problem with it. And in technicality, it should have been theirs to take care of. So they're like, hey, let's just take care of it so everybody's successful.

And Paul, what would've happened in any other deal just like this is he would've done the same due diligence and inspection and then said to the seller, you replace it or You know, credit, right? So that's a normal inspection item.

Yeah.

Okay.

Thanks.

You bet. Jason.

Yeah.

I was curious how you guys came up with the $50K down payment amount for the buyers, because it's not like a 10% or a 20%, you know, value. So were you guys just trying to match it to the price premium or—

I actually weren't. We did.

We went like this.

Finger in the wind.

Right. We read the— we read the tea leaves of the market, and that's what we were getting just based on the fact that this property needed, needed some work. And I think I remember, Kyle, going through the beginning of selling this, and you correct me if I'm wrong, you had got some feedback from realtors like, oh, this is a teardown. You got to— you got to totally replace it and everything. And I was like, really? It's, it's fine. We can, we can sell it to a rent-to-own buyer as long as they can live in and occupy that. So it took a little bit, Jason, to find our buyer that was comfortable taking the property over and taking the work. And yeah, I know 10% is always the— that's always the goal. However, every property's different and it just wasn't possible here.

Yeah.

Okay.

Good question, guys. And I think, Jason, what Nick was saying is— Nick, tell me if I'm off on this— like, you know, in the lifespan of the marketing, right? Especially this was an estate. They had the 5 or 7 next step forms. And it's almost like we always say with comps, the market speaks, right? So Nick and Kyle made a judgment on, okay, it's like we got 5 or 7 of these, the market speaking. This is the best set we have, deposit and buyer, the whole makeup, because the house was as is. So just like you were doing it on a price, they were doing that on the buyer, which Nick does all the time. Like, my gut is we got 7, this is it, let's run with it. That's more of what you want. Yeah.

But it makes sense because you got to leave room for them to come up with the additional down payment at the end. Plus, Yeah. And then plus you need to make room for improvements that they're going to have to perform because you're selling it as is.

So yeah. And you know what, guys, punchline, the appraisal came back last week at $910,000. I think it was above, above ask. So I mean, above sale. So it was great.

Yeah. Was I making that up or did I remember that correctly? So many deals in my head.

No, no. And it's funny too, if that home fixed up in that area, They're, you know, they're roughly about $1 million. So they got—

They're going to do great. Yeah, they're going to do great in that house. That's awesome. You got to be happy for them guys. And they're next to family now. Bill, go ahead, buddy. Sorry to make you wait. What items are kind of negotiable? Septic, you know, sewer, or is that kind of expected on the seller? Just curious out of all the, you know, larger items, furnace, you know, AC. Yeah, the answer would be sure, most definitely, just like any other deal. But you got to look at it holistically, right? Just like any other deal, Bill. Like, let's say you're walking into a bunch of equity right now because the owner is very stressed or desperate, or you're already walking into equity. Might you be a little less picky with stuff like that, right? When they go to negotiate and they push back, but it's all going to be negotiated. In which case we'd jump on with you and do it with you. But yeah, it's like any other deal, deal by deal, especially the majors like that, to your point though. So as long as the house is livable, Kyle knew that fixed up, it's over a million and he left skin on the bone for meat on the bone rather for the buyers. Win-win-win.

Could be skin too, if you like crispy skin.

That good? Bill, does that help? Yeah, thank you. Cool. You bet.

Hey, Linda. Hey there, Kyle.

Thank you for sharing the details. This is awesome. Um, so I'm curious, um, you said S corp, but did, is there a specific advantage to doing S corp, uh, standard versus an LLC? Did you do corp, S corp or S LLC?

So I, we did an S corp and because it was more of a pass-through entity and that was sort of helping me out with my W-2 income.

Okay.

To offset that.

If I could piggyback that, Linda. So exactly, exactly for that reason, it's more like case by case. So you'd have a, and you might've already, I know you're going to see us next week too. You, you'll have a consult with Prime Corporate. And they'll walk you through given your situation, 'cause they do tax and entity structuring, right? So they'll suit it for you.

Yeah. Do you know, do you know what your tax rate is on the 108, Kyle? If it's going to be ordinary income or because you use the pass-through entity and your status as a real estate investor that it'll be less?

I'm not sure. I know I don't, I don't qualify for real estate real estate investor status because it's not my primary job, you know, to do the 750 hours. But future goals though, future goals.

But— Remember, he bought this, sold it, so he's got, if anything, he's got some capital gains, but he, because he didn't put any money into it, but it's minuscule, but it's certainly not ordinary.

Awesome, awesome, awesome, awesome.

Yeah.

And we will see you at boot camp, right? Next week.

Yep.

Yes, you will.

Sweet. I look forward to it. Good to see you.

You as well.

Jason.

I have another question to add on to Bill's. So when I was talking to the condo people that I'm trying to get, hopefully today, asset taken, they were asking me about who's responsible for what, right? If something breaks. And I basically told them it's like, it's kind of like when you sell a property, you've got like seller disclosures and, you know, if it's something that, you know, like lead paint or mold or something big, right? Then it's kind of on them. But if it's something small, then it's basically the buyer's responsibility to take care of that. How far off was I with that statement?

You're good. Let me help a little bit because this is good for everyone. This is a lease purchase deal that we're talking about, correct? For you, it's a lease per need, right? Yeah.

Yeah.

Yeah.

Yeah. So it could be a deal also.

Not sure.

Okay. So then the 2 different answers. You answered it as if it was an AO because you used the word, if not, it's the buyer. Because if it was a lease purchase, would you stand in the middle, i.e., sandwich? It'd be you. You'd say, none of that's your concern. Don't worry about it. I got it. So you are correct in describing the AO. In the lease purchase sandwich agreement, the short-form lease that we use, if you're staying in the middle, it specifically says, because we learned the hard way over the years, Mold, asbestos, stuff like that, like you mentioned. And then anything over $250 in the first, I think it's 30 days. These are things we added over the years because I say to them, look, you're disclosing everything, I trust you, but unbeknownst to you or I, something could happen.

Hey, basic definitions. What's an AO real quick?

Yeah, sorry guys, if you're brand new to the community. So all the AO is, is Jason will decide— he already presented to the sellers. He will decide if he's going to stay in the middle. What I'm referring to is a sandwich lease where he ties it up on a lease purchase, sells it on rent-to-own. He's in the middle. Owners have nothing to do with it. He's going to decide if he wants that, or the sellers are going to decide if they want that, or he finds the same exact buyer, but he assigns that whole buyer package over to the seller. He steps away. The seller's now dealing with the buyer directly. Now, it's our least lucrative exit method, right? It's in the course, but we don't talk about it a lot. So it's like a backup. Jason did the right thing and showed them what we teach on the whiteboard, and it's in the training is what do you net if you sell conventionally? What do you net if you do lease purchase with me in the middle? And what do you net if you do an AO and assign out? He gave them all 3, did a great presentation. So they just, I think they're just picking which one, right, Jason? You should have a kind.

Yeah.

Yeah.

It's awesome. First appointment. Not a bad, not a bad, not bad odds. No pressure, but keep doing that.

Jason, was that real quick? Was that the one that we talked about or no?

Not sure where to get started? Go to smartrealestatecoach.com/getgoing for free books, strategy calls, and a whole bunch more. We're going to help you get going the wicked smart way. We've been after this for over a decade doing exactly that.

Yes.

Yes.

It works.

Hey, Kyle, I, what town is this house in? Because I have a, I'm asking for selfish reasons. We have a gentleman now that's looking, been looking at our community for a year and he doesn't think you can do deals in California, period. But I want to know what, what area this is in.

This is in the city of Alameda. So it's a nice little area off of Oakland. So it's isolated from Oakland, but it's on that side of the East Bay, about 20 minutes from San Francisco. So it's on the water, beautiful beaches. Yeah.

I don't know why I had in my head LA, Kyle. I'm sorry. It's all right.

We do them there too, right? Mr.

O'Shea, real quick, when we buy something subject to owner financing and/or owner financing, are we usually getting an inspection because we're taking over?

Well, I'm going to tell you guys, do what you want, but I would suggest anytime you're owning it, you're going to do an inspection. I mean, I've been in business 35 years and we find weird stuff. Let me give you a quick example of why I say that. Nick and I and Zach bought a house on the water in Plymouth. Beautiful. On the bluff, 100-foot drop, open ocean. From a realtor, mind you. The house was meticulous. She kept this thing unbelievably well. We went and did an inspection. There was a water tank. It was the biggest water tank I've ever seen. It was a huge, high-quality brand water tank and big. Well, when they scoped it, they found a crack inside. There's no chance I would ever find that, right? It's a $6,000 water tank. She replaced it. She didn't know either. She's like almost apologetic. That's why we do inspections. That's one. I just give you one example, but it's— there's a lot of others. So short answer is yes, I would, Mark.

Yeah, I always get the sewer scoped too also. Now on a lease purchase, do we at least check the major items and they would be responsible, the seller, for the major items, i.e., Roof, HVAC, sewer, stuff like that?

Entirely up to you. We've not done an inspection with a lease purchase for 2 reasons. One, we have the seller fill out the seller's disclosure, make sure we're good with it. And then 2, we're passing everything on to the buyer. 3, there's a third, in your lease purchase agreement, you're covered for anything major that might go wrong, especially in the first 30 days.

Okay.

It's just for 30 days. No, it goes back to the seller.

Uh, on the, on regular items, but the asbestos and mold are open-ended. Okay.

And you gotta be careful. You gotta be careful, Mark, um, with the, um, inspector that you use because we've, we've had some bad inspectors. We, we thought we were doing the right thing and we didn't get good inspectors.

So, well, that's anyone on any real estate guild. They get all that.

They quote a deal sometimes.

Okay.

All right, Tim Pork.

Thank you.

Thanks, buddy.