Real Investors Pitch Deals in Our Live Mastermind
In this live mastermind session, Dr. Toby Potter guides a group of real‑estate investors through the process of finding, evaluating, and negotiating distressed property deals. He opens with a market overview, emphasizing that even in a high‑interest, low‑valuation environment there are "penny‑on‑the‑dollar" opportunities, but warns that 89% of deals are poor quality and that emotional decision‑making is a common pitfall. Participants (Damon, Fred, Mag, Mike, etc.) submit deals via a structured link; Dr. Potter demonstrates a step‑by‑step back‑of‑the‑napkin underwriting method, using price, tax assessment, comparable‑per‑square‑foot values, and estimated rehab costs to calculate a walk‑away number. He repeatedly showcases an AI‑driven image analysis tool that produces scope‑of‑work estimates and price‑per‑square‑foot data, allowing rapid triage of online listings. The session covers negotiation tactics with banks, the importance of precise cost estimates (including phantom carrying costs), and relationship‑building with distressed sellers and lenders. Dr. Potter also outlines operational protocols for members (submission order, elite vs. accelerated tracks) and strategic sourcing rules (avoid Zillow listings under 100 days, focus on off‑market or long‑listed properties). Throughout, he stresses speed of implementation, data‑driven decision making, and the value of the mastermind’s playbooks for scaling to 1,000 units in a year.
Chapters
Group. Been doing this for 30— over 30 years. We work with a little over 13,000 clients today and have funded over $1.8 billion. In fact, last year, 2023, 2024, and 2025— or, well, 2024, when the market was really, really tough, I mean, interest rates were at their all-time high, property valuations were give or take, but sellers acted like they were sitting on gold. We decided to go out there and see what it's really like in the trenches and see how hard it is to find deals and to figure out a program and a platform to ensure that there's good deals to be found. And we went out and acquired almost 300 units. And we acquired these pennies on the dollar. In fact, one of my complexes that we bought It was a 94-unit. I paid $3,757 for it at closing. Yeah, yeah. For a 94-unit, 60% occupied, that today is worth almost $6, $6.5 million. So there's deals out there. I want you to fully understand there's really, really good deals out there because the market is stressed. Properties are stressed, but sellers, who are our best friends, are stressed. And this is what the mastermind is all about. The mastermind is to come together with individuals looking to grow and build in real estate, but make good decisions and not make emotional decisions. I will tell you, when, when Nick and I set this out at the end of 2023, in 2024, I wanted to buy 1,000 units in 12 months. And we went through over 72 properties to find the gold mines that we have today in almost 300 units. There's deals out there. And this is what's so important. This is what everybody needs to understand. There are a ton of deals out there, but I would say 89% of them are crappy deals. But what happens is we as real estate investors start letting our emotions take over because we think we can make this deal work. And I use this, and, and women will respect this, especially married women. I, I attribute this to the, the woman's mind or a girlfriend's mind that says, yeah, he's got problems, but I can fix him. How many times have you heard that? Yeah, he's a mess, but I can fix him. You can't. And real estate's the same way. You see a mess and you think, I can make that work. It won't work, ladies and gentlemen. It just— like that guy that's a mess, he has to change. He can— you can, you can influence him, you can inspire him, but he has to change. That property, you can't make it change. You can't move it to a better neighborhood. You can't make people want it more than what it's worth. But we see this every day, every day. So the mastermind, this Thursday mastermind, is exactly designed for you to bring deals, present it, and let me guide you through whether it's a good deal or not so that we can remove the emotion, show you my tools on what we do, and make you a better real estate investor so that you can enjoy the fruits of this labor. So I just wanted to cover that real quick. Uh, any questions real quick before we start jumping into our first deal? All right, we good? Anything in the chat? Nothing in the chat, or just Mag? Mag sending deals. Mag, we might not be able to get to them, but we'll do our best. So one thing I do want to clarify is that when you're registering for tonight's events, there's a link to submit your deal. I need you to use that link, submit the deal so that we can put them in order. Okay. Every now and then we allow people to be invited to this to see what it's about. But everybody else is members and they go first. If you're a member, If you're in our Elite or Accelerated program, we're going to go through your deal first and we need you to go through that protocol because as they come in throughout the day, we stack them up and we take first come, first serve. If you're submitting them right now or you're submitting them after this has started, we might not get to them. And I just need to be clear about that, especially if I'm having to run and jump on a plane, which, like I said, tonight we're not. We canceled our event going to Phoenix. And, uh, so we've got time. I'll stay on here till midnight. Everybody in my team knows I love the camera, the camera loves me, and we just can do this all night long. Um, Hollywood missed a phenomenal actor when they didn't pick me up when I was doing my, my, uh, my, uh, audition. They did. Just, just saying. So, all right, enough about this. Let's get into this deal. Hey, Mag, how are you? Good. Uh, Damon, are you there, my friend?
Yes, sir, I'm here.
Can you hear me?
Yes, sir.
Yes, sir, I'm, I'm here.
All right. Hey, congratulations for being our newest member. Um, proud of you, buddy. I'm absolutely proud of you. You know, when I talked to you last night, you and Mariko I knew you were serious. I knew you had the fire in your belly, and I love that you said, I'm ready, let's rock and roll. I love it. Welcome aboard, my friend. Welcome aboard. Okay. All right. So we've got this property. It's at 3946 50th Street. Tell me, tell me about it, buddy.
Um, I don't know a whole lot other than what's on Zillow. Um, I found it on, uh, yesterday and, uh, sent it over to Rico on, uh, this morning.
Okay.
Um, let me see.
So let me ask you this. It says pending. Do you have it under contract? Wow.
It wasn't pending, uh, this morning.
Okay. Yeah. So here's— and, and, and we're gonna go ahead and go through this because this is a great training for you and for everybody on here. This is why. And if all of you have been on my webinar, this is exactly why. This is a great example as to why you cannot find deals online. Okay? You can't. Everybody's looking. And the instant something like this comes up, somebody is going to grab it. Now, here's the— here's the other deal, Damon. This deal may not close, but we won't know for 30, 45 days. Somebody's already tied it up with an offer. And it may take a week or two for that negotiations. They may close, they may not, but we won't know. This is why you guys have to get into the Legacy Elite course so that you don't do online deals anymore. Now, for those that are in the Accelerator, I'm going to show you how to get there. But you— we got to stop the online searches. But this is okay. So let's talk about it. So you don't know much about it. That doesn't help me. It does have some photos. It does. Oh, well, go ahead. Okay.
Well, I know that they asking for $77,000 and the tax assessment on it was about $206,000. I think that's what I saw on there. That's what made me, uh, yeah, the property.
No, it's a great— so the one thing, one, here's one of my concerns that I can't clarify. Go back to the photos real quick. So we're going to open up these photos. Scroll down to the very bottom. There's a photo. There's one photo right there on the inside. Click on that one on the right. Yeah. Yeah. When I look at this, Damon, it looks like this house has had a fire. Yes. Okay. And so when we see this now, here's what concerns me is I don't understand the fire because the carpet wasn't touched. Only the walls were. So I don't know if this was vandalism fire or if this— how— what this was. So I don't know the amount of rehab, but if it's a fire and there's smoke damage throughout the whole house, then we have a full gut out because you can't get rid of the smell unless you get rid of the smoke. But if it was just isolated, then it minimizes our rehab cost. Okay, you following me? So, so limitations of information causes hesitation. Okay. But if— let's just assume that there wasn't massive damages and we go through this. This area is a hotbed of properties. Okay. Has been a fire inside the house. There you go. All right. Needs extensive remodeling. So it's a full gut. So it's a full gut. Okay. Which amazes— I don't know how the carpet wasn't damaged. How is the carpet not damaged? That just amazes me. You'd think that there'd be enough heat that it would just buckle it up because it's all fiber. It's all plastic fibers. Built in 1947. It might have been fire-resistant carpet. Yeah, it's the magic carpet, as best to say, you know. So Properties in this neighborhood, Damon, go for $200 a square foot. Okay. So we know that this is $150,000, $160,000 property retail. Okay. Just simple math. 2-bedroom, 1-bath, 800 square feet. We know remodeled. This is a $200,000 prop— I mean, a— yeah, $160,000 property. Okay. Okay. So simple math then. Back of napkin, if that's the case, then we know. So let's just do that real quick. So if it's 160, our max loan amount's 112. All right. Our maximum. So just doing back of the, back of the napkin math. Our max all-in is 112. And we know that it's a full gut. So I'm going to say on a 1,000 square foot house, let's just say $55,000. Okay. Okay. So minus the $55,000, our best offer on that, our walkaway number is $57,000. Okay. Our walkaway. If the schmuck— and I hope nobody on here bought this property— if the schmuck who has it under contract is paying $77,000, he's going to lose his shirt unless he's buying it for himself. But as an investment property, this deal won't work at that price point. I can't full gut this because when we talk about a full gut in a fire, all electrical has to be redone. All electrical. It's on this. It's on the city's radar because they had to go put the fire out. So, you know, permits, you have to do all that. All plumbing has to be redone. All insulation has to be redone. A lot of trust is in structure. So we've got a lot of work and $55,000, $56,000 is conservative. And I just want to run that simple math for you. So here's what you could have done knowing what I just taught you. No, this is not a good deal and move to the next one. Okay. But here's now here's let's flipside it. Let's say this property was worth $200,000. Let's just say it was a little bit bigger, 1,000 square foot and it's worth $200,000. And that— and we back out the $50,000, $55,000, $60,000. We then do all the numbers. We could offer that $70,000, $75,000 and make the deal work. So then it's a green light to go to contract. Okay. So this is what I want you guys to learn is how do I— remember on the webinar, We can't take hours and days and weeks to analyze a deal. We have to be able to do it in seconds to know because it doesn't cost us anything to submit an offer. It doesn't cost us anything to submit an offer. And if we know that this is a gold mine, a good deal, we can submit that offer and tie it up while we start doing our complete due diligence. I may have to put $100 up or $200 up in earnest money. That's okay. I have a due diligence time. I have a 7, 10, 15-day due diligence time that now I've tied the property up for a week or so. Now I can validate, is this work? Does this work? Is this accurate or is it not? And if it's not, I walk away. If it is, I move forward. But what we have to learn is speed of implementation. We talked about it on our webinar. I've showed you the full tool that goes through hundreds of properties in minutes. This is how you do back of the napkin math. If, if I could get this now, I might even— I would if this wasn't pending. I would have offered the $57,000. If they took it, my earnest money goes up. I put in a 10-day due diligence. And then I validate. And inside 8 days, I know whether I'm moving forward or I'm moving away. I get my money back. I go to the next one. But if we're not implementing speed, these— and this is twice for you now, Damon, this happened, happened last week, happened today. Decent possible deals, but they're already contracted. Number one, because you're looking online. And number two, because you can't analyze them. We did that in less than 4 minutes. Right. See what I'm saying? Mm-hmm. And somebody else is doing what I'm teaching you, or they're just— they're just contracting everything comes across and then walking from— this may come back on the market. Probably not because it's burnt, because it's foreclosure. The bank— this is a liability for the bank. They want it off their books. You could probably buy this property for $40,000. If I'm the guy that's got it under contract at 70, I'm going to probably come back 3 more times and keep lowering that price to where I get to where they just finally tell me no. But I'm going to come back at 35, 40. No. All right, I'll pay 45. No. Look, best I can do is 50. And I'm going to do the back of the napkin math with them to say, here's why I can only pay this. To be able to have any profit. Fine, fine. Get an offer. That's what we want. But we need to be in that driver's seat. That's the glory you get with me to help coach you through that scenario and how to do that each and every time. Okay. All right. Any questions on that from anybody? So we've— we have you set up your consultation call, Damon? What, 30 tomorrow? 30 is tomorrow?
Yes.
Okay, we're going to build out your playbook, your 45-day step-by-step playbook tomorrow, and I'm going to show you how to go find these deals without being, uh, finding them too late. Okay, okay, okay. All right, buddy. Thanks. Oh no, you have a second one. Yeah. I forgot about that. Yeah, $4,707. Now tell me about this one, Evan, because I want, I want to know what you're thinking on this one, buddy.
Um, sorry for not really having all the info. I'm at work today and trying to find properties as well, so I was kind of busy at work. But this one here, this one here, they're saying you can, you can, it can be a single family or it can also be used as a duplex as well, and it's sitting on about an acre. Um, And I think the assessment value on this one was like $304,000 or something like that, because it says it in there about $63,000. I'm sorry, $63,000.
Yeah, yeah, yeah. So if you look at— so if you open the pictures, there's a basement that has a full living basement, kitchen, bath, everything. Yeah, yeah, because it's zoned multi. So, and they have a, uh, a walk-in base— it's a walk-in basement. So they have that outside exterior. Now, you're right, the property in the area, the property valuation is around $300,000, $304,000. But the problem is, is there's got to be rehab. Now, even if you're going to turn it into a rental, nobody wants blue countertops. Okay. Sorry. Nobody wants those. All right. Go to the next one. Nobody wants that busy— look at that floor. That floor gives me a headache looking at it. It is a busy, busy floor. This is a 1970s style deal, and so we got to put some money into it. All right, but what I'm going to do here is— I don't know that I've shared this with everybody— we're going to do the images. So I'm going to, I'm going to share with you one of the amazing tools that we have that you now have access to on how to assess, um, the scope of work with images. Okay. Hey AI, I've got a property here at 4707 Northwest Pick and Brock Drive, Des Moines, Iowa. I want to send some photos and have you analyze the scope of work. Are you ready?
Right, listen up. I'm ready. You send those photos and I'll dissect them. When I see the scope— flooring, systems, structural— you get hard numbers, no guessing. Then I'll tell you if this deal's got legs or if it's gonna lose your ass. Send them now.
All right, go ahead, go ahead, scroll up just a little higher. There you go. Go ahead. Whoa. Go ahead, go ahead. Little higher. Get there. Little more. Yeah. Go ahead. In the basement yet? Go ahead. Yeah, right there, right there. Yeah, go one more now. All right, that's good. Another foreclosure, I think. Yep.
Oh, it's kind of—
it's on slant.
I'm seeing cosmetic work across the board. Flooring will need attention. Some rooms have mismatched styles. Kitchen is dated. Those cabinets and counters scream 1990. Bathrooms need updates. Tiles and fixtures are old. Basement looks like it needs finishing or at least some serious cleanup. I'm pegging the scope roughly at $50,000 to $60,000 depending on materials and labor costs. Now, before we even consider that, what's your target ARV on this?
Ladies and gentlemen, that's how powerful our tools are. That is how powerful your success in real estate can become. We took images offline, sent it to my AI, it analyzed it, repeated what you saw. Not that I had to tell it, it did it all on its own and said we're at a 60, 55, 60, I would say $65,000 rehab because it's not structural, it's all cosmetic. We add our contingency. Now we do back of the napkin math. That simple. If you're not utilizing this, ladies and gentlemen, you're going to get mowed over. This is why it is so important to understand the tools and the resources you have at your beck and call now. So, um, scroll back. So now, now let's go to the back of the napkin math. We think that this property is around $300,000, just say conservatively. Okay, so $300,000. So that's a $210,000 max loan amount. Okay, we back out our $60,000. So that puts it at a $150,000 offer and they've got it. So here's what I want you to understand. This is why this property set it on the market for over 90-some days now. Right. This one's funny. Oh no, this is the brand new one. I think it was the other one. It's a foreclosure. But, but in, in, in 19 days, they already dropped it $10,000. That's how far off they are because they know. So here's how you go to the bank and you start negotiating and you start doing back of the napkin math. Now, one of my tools that you're going to get is going to give you that detailed scope of work, and we're even going to bump it. We're going to say the scope of work's $80,000, $82,749, a very specific number. If you go in with round numbers, they know you're bullshitting them. You go with a very specific number and they're like, shit, the guy knows what he's talking about. If he's got it down to the penny like that and you say back of the neck, it's worth $300,000. I got to put $82,742 into it. And so I can only spend this much money on the purchase to get this back on the market. And then they start talking to you. Now, are they going to come off this deal $70,000? Probably not. But we'll have our max allowable that says, here's my walkaway number. When you hit that, you walk away, but you leave your contact. And if they don't sell it, they know they've got a serious buyer. And you start negotiating. Okay. Okay. So this one might have legs, but you got to be sub-160. Okay. You got to be sub-160 because even at 300, 210, because what, what, what you're not understanding is if I'm all in it on purchase and construction, 210, this is going to take 9 months to, to buy, to rehab and sell. And I have to build in my carrying cost. I have to then build in my selling cost. So you got about another 12, 13% that you got to add to this. So that's another $16,000, $18,000 on top of that. Okay. Most people only look at my purchase and my rehab and my sale. And they don't put in what we call phantom cost that, that says this is what it's going to cost you for utilities, for mortgage payments, for listing, for when you go to sell, all the stuff in between that, that scrapes that profit. So that's why we put this back of the napkin 70% ARV, then back it down from there. So if you could get this one under contract around $160,000, what, let's $160,000 or less, it's a gold mine. Okay. It's a gold mine. Okay. Okay. All right. And the good news— now, bad news is it's brand new. Good news is it's brand new, and you go get in front of the listing agent now. But you're going to have to use one of my tools to scope out that scope of work so that you can present to them all the work that needs to be done. So you can explain— here's what I want you all to understand. When you go in and lowball an offer, it's going to be offensive to everybody. But the second you explain the why, they then back off. At first they think you're trying to rip them off. Well, that's just ridiculous. I mean, blah, blah, blah, blah, blah. You're right. And I'm not trying to offend you, but let me share with you how I got to that number. And when you share that, they might not like it, but then they understand that you're not being a jerk. They then understand that there's a method to the madness. And this is what is so important when we're negotiating. And the more detail you bring to the conversation, the more serious they understand your position. You're not just out there lowballing every seller. You're trying to create a future, a business, and you're trying to resurrect a distressed property. They're already in a bad mindset because they are a distressed seller. Understand, you're just going to offend them in the beginning, especially if you just go in and say, hey, Mr. Bank President, I'll give you $150,000 for this property. He's going to— he's going to probably have security escort you out. But if you go in and say, I'm very interested in this property, I've been by it, I love it, I know the area, I know the neighborhood, and you give your resume and you share your vision and you share the future and you say, and here's how I came up with this number, it's probably not going to sit well with you, 'But I want to work with you on this. How do we get to a happy medium? Here's my offer and here's why. How does this work for us?' Okay. They're going to be very polite. They're going to be very— because you respected them first. And so therefore, then they'll come back and forth and they may say, 'Look, I can't. We just foreclosed on it. We're in it at $250,000 or $230,000. We're upside down.' That's a good place. Trust me, ladies and gentlemen. Oh, so you guys already took a loss on it. And so now it's just going to be a write-off. Yeah, yeah, we took a $25,000 bath on it. If you keep this on the market, how much bigger of a burden is it going to be? I mean, you got to go before the board every week, kind of share where your assets are. Let's get this one off. Let's get this one as a win for you. Not as a win monetarily. You've already lost money. It's just not going to be a matter of how much. But if we get it off your books, that, that loss is over. Where do we need to be? And they say $200,000. I can't. And I showed you why. Be polite. Not every deal is a win, but every relationship is a win, because that's a banker who forecloses on properties that you become his friend with. And he said, hey, but if you So what I do, here's my card. Anything changes, any time the board says, hey, just dump this thing, please give me a call. I'll, I'll be here in seconds with cash in hand. Oh, you can pay cash. I'll be here cash in hand. Okay. In fact, what I'll do is I'll even deposit money into your— I'll open up an account. When we were up in Fort Huron, Port Huron, Michigan. We were going to buy this $20 million building and we told if you guys will lend us the money on this, we'll run all our deposits. This is going to be a hotel. I mean, a hotel. Yeah. And an apartment. I was going to be a hotel. I said, we'll run all our deposits through you. You'll be our bank in town. So every day you're going to be getting deposits and our employees will make them bank with you. Really? Yeah. If you work with us, we'll run money. So this is a lifelong relationship. They're like, shit, they got us $8.6 million to do this deal with because they wanted this long-term relationship. So it can't be one deal and done. You have to paint this bigger picture. And that's what these bankers want to know. Hey, you can't do this one or you want to make a short sale on it. Here's my card, but if anything else comes up, call me. I'll take it and we'll run with it. Now you have an ally, okay? Okay. Yeah, that's, that's the building. That's the hotel. That is important, Ron. Yep. This is, uh, 18— when was this thing built? 1896, 1897. We were looking to buy this building, rehab it, and it's historical out the wazoo. The city wants it revitalized, and we literally had them eating out of our palm of our hands. Yeah, we— and we told the bank, you finance this with us, we'll rock and roll. All right. Is this 309? 391st Street. Okay, perfect. All right, Damon, one more, buddy. This one?
No, sir, I pulled this one up today too. I'm sorry, killing me, Smalls.
All right, let's run through it real quick. All right, um, again, now this is Altoona, Iowa. Um, price per foot, I think, in that area is about $200. No, let's do this, we're going to use AI one more time. Okay, I want to show you guys the power of my AI. It's going to just completely blow your socks off. Hey AI, I've got a property at 309 First Street East, Altoona, Iowa 50009. Tell me what the price per foot is going on retail housing.
In Altoona, Iowa, for the 5009 area, the current price per square foot on retail housing is around $220 to $237. If you meant something else, just clarify and I can dig deeper.
No, that's perfect. That's exactly what I was looking for.
All right, you've got the baseline. Now what's next? You hunting a deal there or just benchmarking?
No, I I've got a deal there, that 309 First Street East. Can you pull it up and tell me what you can find on that property?
Hold up the property at 309 First Street East in Altoona. It's listed at $143,000 for about 1,667 square feet, which is roughly $86 per square foot. That's well below the area average of around $220 to $237 per square foot, but the low price might indicate the property needs serious rehab. To figure out if it's truly a deal, we'll need to confirm its condition, recent comparable sales, and a rehab estimate. Let's start with comps and the property details.
Let's do this. I've got some photos. Let me load the photos and you can tell me the scope of work.
Perfect. Load 'em up. I'll look at them and we'll break down exactly what that rehab scope looks like. Then we'll know if you've got a steel or a sinkhole.
God, I love her today. Go ahead. She's, she's my girlfriend today. Yeah, go ahead, go ahead, go ahead. Go ahead, a little higher. There you go. Go ahead, go ahead. That's it.
Okay, I'm seeing full interior rehab. That kitchen needs gutting— cabinets, counters, appliances. Flooring looks shot in multiple rooms. Bathrooms are outdated and damaged. Paint everywhere. You've got some ceiling or wall damage too. Ballpark, you're easily in the $50K to $70K range depending on finishes. Now run the numbers. You still got a spread after that rehab. What's your ARV target?
So it looks like my ARV is going to be around, what do I say, $320,000, $200 a square foot, 1,600 square feet. That's going to be around $320,000 minus the $70,000 rehab. Where do I need to be at purchase?
You know the math. 75% of that ARV is your ceiling on all-in costs. So 75% of $320K is $240K. Subtract that $70K rehab, you've got to be buying at $170K or less. If they want $143K, you've got a workable spread on paper. Now it's discipline time. Are you committed to the rehab scope you just saw? Are you prepared for a contingency? What's your next move to lock it in or walk?
Ladies and gentlemen, if that does not impress you, I don't know what would other than Jesus Christ himself come down here and giving us guidance and direction. She just went through this deal, pulled what the price per foot in the neighborhood is. The only thing I didn't ask was days on the market. Um, let's ask that. We haven't closed her out yet. Thank you.
Got listed on today.
What is the average days on the market in that neighborhood?
I couldn't find a specific number just for Altoona's 5009 zip, but the broader Des Moines metro area averaged about 94 94 days on the market based on—
yep, sorry, we cut her off. My bad. So 94 days is what we got to go with. So we have our ARV, $320,000, which is high. I think it's closer to $300,000. That's the number we're going to go with. So we know at $300,000, we're at $210,000 minus the $70,000 puts us at $140,000. You're right there. So your walkaway number is $140,000. Your offer, you're going to get on this thing ASAP and you're going to offer them $130,000, $135,000. Okay. Your walkaway number is $140,000. Okay. You get it under contract. You offer the minimum earnest money with a 10-day due diligence. Okay. To 10-day option. What that means is between the day they sign, everybody signs 10 days later, I can research, I can validate, I can walk the property, I can get my contractors out there, I can confirm my numbers. And inside that 10 days, if I don't like it, I walk, I get my money back. If after that, you now own that property, okay, you now have to go close or you'll lose your earnest money. But this is one that you could really move pretty good on. Okay, okay. Any questions on anything we've done so far, ladies and gentlemen? No? Good, good. All right, um, Fred. Do Fred next. Is Fred on? Yeah, Fred's at the bottom. Yep.
Yeah, over here.
Thanks, Dr. Toby. Thank you.
Uh, Fred Fite, isn't it? Yeah, there's Fred. Yeah, yeah. Uh, so it's, uh, the property address is 203 Marguerite Lane, Del Rio, Texas. All right, um, so price reduced. Fred, so tell me about the property, Fred.
Okay, it's a, uh, it was sold in, uh, '22 for like, uh, $187,000. And then it's been— the guy remodeled it somewhat. He didn't really do much work on the inside, but, uh, uh, I went to your AI and it says with a, uh, a light, uh, remodel inside it might work into a decent job. I'm not too sure, but that's what, that's what they said. So light remodel will be $22,000, and, um, I think it, I think it's possibly a good deal. Uh, it looks like it sold in '23 for $187,000. So as you can tell, they started in that $260,000 range and they just went down another $15,000. Yeah, so according to the AI, if it can be bought between $200,000 and $210,000, it might be a decent flip. But it's got to have kitchen cabinets, it's got to have new countertops, it's got to have, you know, cosmetic paint, uh, maybe some new doors, some windows. You notice the windows outside are just the old aluminum single-pane windows.
So, so let me, let me share with you all. This is a terrible, terrible rehab. I would not ever allow any of my members to rehab a house like this. This is Home Depot countertops. Yeah, this is— it is. It's terrible. Go ahead and scroll some more. It's, it's, it's— and this is why they, they probably bought it at the $187,000. They probably put about $30,000, $40,000 into it because you can see there's the— those are the original cabinets. The best they did was, was sand them and stain them. They put new tile in. They put Home Depot countertops on it. They put the cheesiest appliances. They don't even match. So scroll back up. Uh, no, I guess they do match. That's a white dishwasher. I thought that was a chrome dishwasher. Uh, white refrigerator. Um, which— so look at right here. Is there a way to zoom in on that picture right there with that electrical right there? Yeah, can you zoom that up? I want you all to see this if we can get there. It moves it. Yeah, I would love for you to see this. This, this is electrical wires. This is electrical wire, not even an outlet. Won't go. Yeah, I don't know if you guys can see that or not. This is an electrical wire running through there. They didn't even put an outlet in there for the refrigerator to plug into. This is terrible, terrible, terrible. This kills our industry. And here's the problem. This person— and I'm going to try to be nice— who did this will never sell this house without having to go back and do more work. Because when somebody goes to buy this, they're going to have a home inspection. Number one, it will fail. Number two, they'll have an appraisal. It will fail. And nobody will be able to get a loan until certain things are done. Go ahead and go to the next photos. So the paint is not neutral paint. That's just terrible. Go ahead. The windows, like you said, Fred, they're old. They didn't even replace windows. Go ahead. Go ahead. Home Depot countertop and backsplash. And here's the problem. Home Depot has better quality prefab countertops than this. What's wrong? Oh, go ahead. And so they bought the cheapest. Now, that's the only thing I like in the whole house.
Yeah, I like the shower.
They did a great job. Why would you put— they put $4,000 in this shower and then put $4,000 in the rest of the house? Yeah, yeah, go ahead. Is it not— that looks like this— this is leftover tile from the kitchen, from the kitchen floor. You're right. And I didn't know if anybody caught that. I wasn't— I like, I like the way they added some character to it. Now I hope Now, here's funny. I don't know how tall most people are, but those upper shelves are every bit of 6 foot, wouldn't you think? Every bit of 6 foot. How are you going to put something up there? Yeah, it's going to hit you in the head. If my wife was to get in that shower, that's where I put stuff for her not to touch. Go ahead. Terrible. Terrible laminate flooring, which I don't have a problem with laminate flooring. Um, I do, I do, um, have a problem with the wainscot chair rail there. I don't— that I can't even— I don't know why they put that chair rail there. Yeah, that's not a dining room, that's a bedroom. So these are the kind of things that you guys need to understand. If— do you see that chair rail? Does everybody see that chair rail? There so that when you back your chair up, it doesn't hit the wall and scratch it. That doesn't go in a bedroom unless, unless you're doing a wainscot, which means the bottom half of that is a different material. It's usually tongue and groove boards. It creates character. You don't leave a chair rail when the walls are all the same color. Okay. You're just— they just killed all the quality. So if I was to buy this house, I already know I got to go in and fix a bunch of stuff. So there's, there's no way I can do this. Go ahead. You follow me, Fred?
Yes.
Yeah. So, um, you're— so you said my AI said— oh hell, can you— so let me ask the class, can anybody tell me what's wrong with this picture? It's free for anybody. I want to see if you guys can pick it out. Mind you, this is a $220,000 house in a, in a $250,000 neighborhood. Means it's to be top quality for that neighborhood. That's a shower insert. Yeah, that's, uh, that looks like, uh, like a senior citizen. Yeah, they bought that at Home Depot. It's in 3 pieces. You glue it to the wall and you're done. You glue it to the wall and you're done. And they're plastic. They're not— and they're plastic. And if you don't get it to stick good, it will buckle on you and you can poke a hole in it really easy. Yeah, yeah, they spent more money on the shower head than they did the shower itself. Go ahead. That is true. Now this is AI, this is not real, right? This is AI staging for photos. Yeah, yeah, J-Real, go ahead.
I have a question.
Sure, go ahead.
Okay, I'm just getting on first time, uh, relatively looking at what, you know, looking at everything. So I'm basically trying to— are these— are you presenting a particular deal, uh, on, on the platform, or are you— yes, just running through?
No, this is one that Fred, one of our students, has submitted for us to tell him if it's a good deal or a bad deal. So, and to guide him on his next move.
Okay, my next question would be, um, in your particular program, are you basically— are you totally depending on the information you're getting from the AI?
No, no. Yeah, no, not at all. So what we do today and in this environment, what you need to do if you become a member, is to be able to assess instantly whether this is a good deal or not. And my AI will do that for you where you're not having to drive out to the property walk the property, try to schedule with a realtor to let you in and all that. If there's online photos, you need to be able to determine instantly whether this is worth pursuing or move on to the next one. Once you have that determination, Mike, and it says it's a good one like the one with, with Damon that we said, yes, move forward. Now you then go in person and start validating everything. But instead of driving for dollars and looking at 6, 7, 8 properties over a week. We can look through 60 properties in a day, find the 4, 5, 8 that we like, and then start then narrowing those down to the 2, 3 that we want to close on. But we can do that in seconds, hours maybe at the most, not weeks.
Okay, I understand that part. What I'm asking is, is this— you would definitely have to speak it through your, your, um, your channel in respect to the AI to be able to get this information.
That's correct. That is correct. This is my 30 years of AI, of doing over 20-some thousand deals, approvals and declines. We've dumped all that into my brain, my AI brain, so that it gives you absolute surety as to why this is a good deal and not a good deal.
Okay, I can see the benefit of it in that capacity because you definitely don't— you know, you're going through so many different properties, you're looking at ground and you're getting properties from every different angle relatively that you're looking at, and you don't really have the time to really be able to fish these out. And maybe you have an assistant, maybe you don't. That can actually filter through these properties and do all of the, all the legwork.
Agreed. Yeah, you muted yourself, but you are correct. What we want to help you with, Mike, in growing your portfolio, speed of implementation has to be number one. Being able to find deals off market, offline, analyze them, find the ones that work, that are good to go, then spend your time and energy on them, not wasting your time on stuff that just never will happen. All right. All right.
Yeah, get that.
All right, perfect.
Thank you.
You bet. Thank you for the questions. Go ahead. We're about to wrap this one up. Uh, I— so I'm going to tell you, Fred, I don't like this deal at all. Okay, I don't— did Fred leave us?
No, no, I'm here.
Okay, there you are. But I lost you. You were at a certain spot on the screen and then you moved. Uh, so I don't like this deal. You— I, I would have to buy this deal at $160, not a dime over. Okay, not a dime over, because I think it's only worth $215 at best case. Okay, and we got to go in there and fix stuff to get it to the $215,000. And you're not going to make— even if you bought it at the $160,000 mark, we put $25,000, $30,000 into it to fix some things, then you're at the $190,000. I'm going to make $20,000 at best if I sell it immediately. But this deal will never sell. Yeah, it's already been on for, for 93 days, and it's just— it's not— it's a terrible job.
But yeah, actually, uh, I went back and looked at the— when it was remodeled, and it's—
it—
what happens is these houses look like it's only been on the market a few days, but it's actually been taken off and given to another real estate agent. They just start all over. Yeah, yeah, you can't really tell. The only reason I picked it was because it had a discount of $15,000, which is one of the things that you asked me to look for.
That's correct.
Yes, correct.
So yep, you're right. But yeah, this still— this still has been on the market for a long time. Long time. They— yeah. So here's what I would do. Here's what I'd do, Fred. I'd find the, the sellers and say, hey, you need my coach. You need to join the Unshakeable Investor program because you guys need help. But 187. Yep. Yep. $187,000. And they put $30,000, $40,000 into it. Now they're trying to just get out. This is a distressed seller, but they'll never— this property will— it will be a turd on the market. The only thing they could hope to do is to turn it into a rental. Okay. But yeah, good, good catch on that. But as you guys saw, We ran through the AI from beginning to end on that one and knew, and, and, and I helped show you some things. Even the grass is AI.
Yeah, it's not all there.
Yeah, it's not, because you can see the picture there in the middle, that's the real picture. Yeah, the ones to the bottom left and the top right, that's AI. So, but that does give you the vision as to what it could look like if you got it. But this is not what you're buying. You're buying a turd that needs a lot of polishing. But this, ladies and gentlemen, I want you to fully understand. And when you're talking to your other real estate gurus and in your network groups, this is how we work. This is how we build empires. Our tools, our knowledge is at your beck and call. Once you've been with me 30, 45 days, you'll be giving me these scenarios. I'll say, Fred, tell me about this property and you'll be able to spit through everything because you went through it just like I did. And it gave you these answers and it gave you this determination and it gave you this education. That's what you now have at your beck and call. And this is how you can become one of the most profound real estate investors in your area. And when that happens, the people that you're chatting with now, the network groups are going to say, holy shit, how did you take off? Well, I joined this group, this is what they taught me, and this is what I'm doing with it now. That's it. Okay. All right, any other questions? We're going to keep going. Mag, you're up, girl. Unmute yourself. There we go. You got to disclose it. Yeah, makes sense. Yeah. Oh yeah, because I'm gonna go drive up, I'm like, let's hit the house. It's like glamour shots on, on dating sites. That ain't the guy that I saw in the photos. Yeah, the new Catfish. That's right. All right, so Mag, let's start with 9104 Lake Charles Drive. All right. Yeah, tell me about this property, girl. I passed by, um, they selling it, um, they're 2 payments behind, and that's all I— that's good, 2 payments behind, distressed seller, um, but the problem, how long has it been on the market? 93 days. It's overpriced, um We— so this property's worth— if this property is worth today, Mag, $375,000 top end in the neighborhood. They had it priced at $395,000 to start with. They just dropped it to $374,800. The problem now is it's been on the market so long that there's nothing anybody can do with it. Um, homeowners that are looking to buy this house will, uh, wonder why it didn't sell. It didn't sell because it's overpriced, and they're just now getting to a price point that it might be worth it. But they need— they probably owe more. This— let's see what they bought it for. Yeah, scroll down and see what they bought it for right there. Oh, we don't have it. So it's been that long ago. Okay, it just sold, I guess, for it. So maybe, I don't know. See, they started at $395,000. I just took a guess at it. They started at $395,000 in February, dropped it from there. Uh, look at the tax assessment. Tax assessment's only $315,000. So, and we know, and normally tax assessments are high because they want all the tax money they can get out of it. So yeah, this is not a good one, man. There's nothing we can do with this one. But here's lesson number one. It's on— it's online, so it's not— now I know you drove by and saw it, but it's not— we just— I can't do anything with this one. We would have to buy this property at about $300,000, $320,000 and try to move it at a $330,000, $340,000 price. And I think they owe more than that. Okay. Did you have another one? I think you threw one in the chat. Did she throw one in the chat? One more, yes. Okay, we'll run it since we got time. Lake John. Lake John, yes. Good. And this is in Los Fresnos? Yes. All right, my— when, when my man pulls it up, let's talk about it. Oh, mag, is this it? Yes. I can't do nothing with this, sweetheart. There's a brand new house built in 2026. Oh, okay, baby. We, we got Have you read your playbook? Yes, it's just that I'm— tell me, tell me, tell me what page, what chapter, what page, and what paragraph tells you to go look at brand new houses? I'm gonna go back and rewrite it if I put that in there. No. Okay, yeah, no ma'am, no ma'am. Number one, get off of Zillow. If you're going to be on Zillow, so I'm going to do a course for y'all on Zillow. There is a way to find deals on Zillow. This ain't it. How long has this been on the market? 38 days and they dropped it a penny. Um, in online, if you are just sitting around at night and you want to look for stuff online, they have to be on the market over 100 days. Number one, or expired listings. That's the only way I would advise you to look at anything on Zillow— over 100 days listed or just expired. And there's a toggle that you can do on Zillow to get and narrow that down. Okay, but I'm going to do a course for you guys. I'll do a video for you maybe tomorrow and then we'll load it into the portal, um, for you guys to be able to pull and pull down. Okay, uh, but yeah, that— so, Mag, whatever's close to me is what I stop by and I take. Sorry, it's a half a million dollar property that's brand new. It, it's a sweet property. You want to move into it? We need to buy that for you, man. Yeah, I could buy it for me. Okay, I'll buy it for you. All right, you go get it under contract for $250,000 and I'll buy it for you. You can move in there. I'll be good. Yeah. All right, all right. Yeah, uh, off-market, people. Off-market, off-market, off-market. Read your playbooks, execute, utilize. But if you are looking on Zillow or realtor.com, 100 days or longer listed or recently expired. Okay. So, and I'll tell you, here's the other rule. Less than 5 days listed. Okay. Less than 5 days listed. So now, not a brand new house, man, but a house like what Fred had pulled up or like Damon pulled up. Old, dilapidated, distressed. That's brand new. Is a good way to jump in and go. These recent foreclosures, all that, jump in there before anybody else does. And then those that are over 100 days, they're on there for over 100 days because the seller's asking too much. But if you build rapport, you build a relationship, you might be able to get that deal negotiated when they finally stress out. Okay. Thank you. You bet, sweetheart. Uh, do I have it? You're gonna like it. Oh, mute me. All right. Anybody else have anything? Hey, Jenny, I tell you what, Jenny, I'm ready for you to give me all that data. I talked to my partners about your project there in Richardson— or in Garland. And they love it. They love it. Are you there? Oh yes. Okay, there you are. There you are. All right. Yeah, I'm getting gathered and sent over to USA. I just want to let you know that once you left here, uh, we got to talking. I got to talking to him and, um, was very excited about it all. Okay. All right, anybody have anything else? No, nothing. Check. All right, hey, we got done early. I could go jump on a plane. All right, ladies and gentlemen, go ahead. Somebody say something. Okay. All right, hey, um, this was a good— this was a good night. Damon, you're doing a great job, buddy. You're finding some sweet deals. Go make it happen. We have that call tomorrow. I'll build out your playbook and we'll get things rocking and rolling. And you guys keep them coming, keep growing, keep building. Your future is going to be amazing. I can tell you it's right around the corner. Let's make it happen. Okay.
Thank you.
All right, guys. See you later. Thank you.
