Weekly Video Blog #79 - The Word on The Street Is...
Dean Graziosi shares highlights from the Live Edge event. Matt Larson explains how property locators (bird dogs) work on commission, earning $1,000–$4,000 per deal. Bill breaks down how banks sell REO properties through agents and why student rentals in college towns command $1,500–$2,000 versus $900 for families.
Chapters
Hi, this is Dean Graziosi, and welcome to the weekly blog. You know, if you're on this site, you can't help but notice that everybody's talking about how amazing the Live Edge event was. It was absolutely mind blowing. I can't even tell you what it meant to me to see so many successful people and so many people I know that are going to succeed. So I want to let you know something, though. If you weren't there, you might be getting sick of all the talk about the Edge. I couldn't make it or I couldn't afford it right now. What? I want to let you know a couple things. First of all, I'm going to play some nuggets, some actual pearls, if you wanted to call them. Some things that you could take and put into your world to start making money with real estate from the edge. From a couple different speakers. We're going to play those right after I'm done talking. And I want to let you know, to every single person watching, I've got something up my sleeve to make sure that each of you watching right now can get this information in your hands. If you weren't able to make it, don't worry about it. I got something that can make a big impact on your life. And one last thing for the people that were there, I really want to let you know it was a special event. It changed my life. I'm excited. I can't wait to do another one. And watch what we have to share with you right now because it'll be something that you'll remember forever and look forward to some cool stuff coming in the next couple of weeks. I'll talk to you soon.
So networking is a big part of it, though. Like, if you really want to make a statement in what you do, you've got to let other people know who you are. So, you know, let me back up one minute, though.
Yeah, yeah.
Finding properties. Okay, now, finding properties, the best way, like I said, is the expired mailings. But, you know, you always have to be out there making your presence known in what you do. So you've always got to be, you know, on the lookout as far as, you know, what's available, what's in your area, and you can't be. So I found the best way to do that is what you would call bird dogs. But I like to call them property locators. It just gives them a better title, you know, And I advertise for property locators everywhere, whether it be, you know, I post flyers on billboards or Sometimes, you know, even an ad in a paper property locators wanted and then offer them.
The deal you and I bought together.
Was brought property locator through dg, wasn't it? Yeah, because I've actually recruited some of your people.
You have permission.
But property locators are a great way because you don't have to pay them up front, you pay them if the deal sells. So getting property locators and people on your side to look for properties for you and then let them know they can make $1,000 to $4,000 a month, but only if the property sells. So more people are going to be out there and trying to find properties because they want to make the money. So you can have property people out there actually doing the legwork for you while you sit home in your PJs.
The most common way that banks distribute their property is through the multiple listing with a listing agent like myself. So I have a contract, the bank gives me a property, I have to months with that thing, they just foreclosed on it. I get to, you know, knock on the door, send one of my folks to do that and you know, are you still living there? Are you a tenant? Are you the former mortgage or the holder of the mortgage from whom it was foreclosed? You know what's going on with who you are, how do we get you out of here? Can we give you some money? What do we do to get that house so I can put on the market so I can sell it? Because it won't give me another one until I sell that one. And that's what happens with the bank owned properties. I'm the listing agent. I get two and a half percent at the sale price. The selling agent. Something in real estate that was hard for me to get used to. If I'm the agent representing the buyer, I am the selling agent. If I'm the agent representing the owner, I am the listing agent. Well, if I'm representing the owner and I sell it, why am I not the selling agent? Don't ask. Don't ask. It doesn't make sense. The selling agent, the agent representing the buyer gets 3.5%, I get two and a half percent. Now do you think it's a good day when I present the buyer so that I listed the home and then I get to sell it and I get 6%? Woo hoo. That's what it's all about. So when you go out there putting in offers or you're looking at bank owned properties and agents stonewall you, they Won't respond to you. You can put in an offer through your real estate agent and they don't even answer you. Guess why sometimes because they got their own person in the back door. I have a situation with a guy in Riverside named. What's his name? What's Thompson's name? Dave Thompson. Gosh, I've known him 25 years. Sorry. Dave and Margie Thompson. I've sold them a couple properties. The house comes on the market at 135, it's worth 175. And do you know how I know it's worth 175? Because I work 70 hours a week in that ven you and I know what it's worth. And I take them out and I show it to them. And they said, wow, Bill, 135, could we get this for this? And I said to them, honestly, you know what? You're my client and you're my friend. I met them at church. There's no way I'm going to get that house for you for 135 because the listing agent is going to want to double end it. So the listing agent will probably take our offer of 150 and throw it in the trash can. It's illegal to do this, but I think it might happen sometimes. I think they throw it in the trash can. They take their 135 offer from their agent. They. It's worth 175. They just screwed the bank out of 40 grand. But the listing agent made eight grand instead of four grand. And boy, is it a good day for him. So when you look at purchasing situations with REO properties and it doesn't make any sense and it's not logical and it's not reasonable, so what? That's the way it works. It's just the way it works. You got to get in the game. You got to go. Somebody was asking me at lunch. Well, but you know, does this kind of strategy that maybe Rena talked about, would that work in my venue? Would this kind of strategy that somebody else talked about, would that work in my venue?
No.
You know, one of the reasons Dean has a book with all these strategies is because some things don't work. California, I heard earlier, you can't assign property, you can't assign bank owned Property, and that's 85%. You can assign regular ones. Chad Merriheu is here. You're here from him a little bit. I'll refer to him a couple times because he's like 14. And I've done 10 deals with him. I don't even know if he's out of junior high yet. You wait till you meet him. He said to me a few months ago, dude, I've never really assigned a property. I'd kind of like to do that. Okay, I'll go find you one. It has to be something that's owned by a real person and that they're selling it and it's a dog and it hasn't moved on the market. And. And we can get an assignment. We can flip it somebody. So you can do everything anywhere. But is California a great market for assignments? It is not, because 85% of the sales in Southern California are REO properties.
I got a call yesterday, actually, from somebody that I know in Eugene. And now if anyone rents. Did anyone have college rentals in here? Okay, you can rent to college students for a lot more money than regular families. So my homes in Eugene, to a family rent for $900 to college students, you can rent those anywhere between 16 to 2,000. So that home that I'm renting for 900, back before all that construction happened, the last tenant I had in there, they paid $2,000 a month. So that hurt when I went from a $2,000 a month tenant to a $900. I got a call yesterday. They just signed a new lease. We're able to get students moving in there in September for $1,500. So I will break even on that.
Right?
What did I do? I kept pushing forward. I put good people in my life for me. I put the Lord at my center. I had Matt, I had Chad, I had Dean. I had people in me that believed, and I kept pushing. You guys are going to leave here today with a ton of knowledge. Just believe in yourselves.
