In this video, Jesus Gabriel Mendez (Jay) records a phone call with a homeowner, Joanne, about a potential purchase of her Charles Street property. The conversation covers basic property details, the homeowner’s price expectations ($200K), and her plans to relocate. After the call, Jay provides a step‑by‑step analysis: he reviews comparable sales, determines an after‑repair value (ARV) of roughly $150‑$165K, estimates repair costs at $20K, and calculates a maximum allowable offer (MAO) of about $90‑$116K using a 75% after‑repair rule. He concludes the seller is unlikely to accept a low‑cash offer because the home is her primary residence and not a liability, so the lead is not worth pursuing as a deal. Jay also advises the seller to work with a real‑estate agent for a better price and emphasizes an ethical, help‑focused approach rather than low‑balling. The segment serves as a practical demonstration of lead qualification, market‑comps analysis, financial modeling, and decision‑making for real‑estate investors.
Chapters
Can you hear me?
Yeah, who's this?
This is Jay. I'm calling you about Charles Street. Just wanted to see if you ever thought about selling it.
Sure, what would you like to offer me?
Well, I don't have a number in mind now because I don't know anything about the property just yet. Do you have a couple minutes to talk to me about it?
Sure.
Gotcha. Could you give me a small walkthrough about the property? I just want— I know what it looks like from the outside, I just don't know what it looks like from the inside?
It sits on an acre. The inside has got a lot of remodeling done, but still a lot of work to be done. It's got a full basement, unfinished. Laundry's on the main level. Um, it's being converted to a 1-bedroom, which possibly could be 2-bedroom easily where my laundry room is. It's got a fenced-in area in the back, and then it sits on a full acre.
Gotcha. Okay. And you currently live in that property?
I do.
Gotcha. Okay. So if we were to buy this property, where would you go?
Do what?
I said if we were to buy the property, where would you go? I mean, if you're living there now.
Oh, I'd probably get another house, obviously, if you wanted to buy this property.
Okay. And just based off what you told me, is there anything else that might be needed to repair on the property besides what you already did?
No, just need some updates and stuff, you know, a little modernization. They converted it to a one-bedroom.
Gotcha.
But it could be a two-bedroom. It's got a full basement. Like I said, the basement's cleared, it's just unfinished.
Okay. Is there a specific number you want for it?
Oh, a couple hundred thousand.
It sold Couple hundred thousand. Gotcha. So around that $200,000 range would work?
Yeah, that'd work.
Cool. Let me go ahead and send it to my team. And is it okay if I give you a call tomorrow? What time works for you?
Anytime tomorrow.
Perfect. I'll get a number from my guys and then I will give you a call tomorrow.
All right. Thanks.
Thank you, Joanne. You have a great day. I just gotta fucking leave, man. So boom, you guys just heard the recording and I'm looking at a Cybertruck outside of my window. Crazy vehicle. But here's the subject property. She was asking for around $200,000 for it. As we can see, these are all the comparables. That's the wrong page. These are all the comparables. So the first one, that one's just a piece of land. The second one was a cash sale and these ones right here, this is the average sale. So we're looking at around $128,000, $173,000, we're probably looking around $150,000 to maybe $165,000, right? $150,000, we'll go $165,000. Let's say top of the line, $165,000. Let's look at the details of the property. It is a 2-bed, 1-bath, under 1,000 square feet. 1932. Let's look at these. Cool, 2-bed, 2-bed, 2-bed, 2/2, 3-bed, 1.5, and that one sold for $128,000, which is not good. But let's look at the date that they were built. 1932, '54, '56, '51, '47, '40, '28. So this is one of the older properties in the area. We're looking at an average about 1940 to 1955. Then square footage, they're all kind of in the same range. We got a couple outliers for maybe 100 square feet. Therefore, let's look at a property that sold. 1334 South McCoy, right here, sold for $128,000. Let's look at the condition of this property. Let's see, looks pretty— Garage needs some work but it is detached. Looks like it's been rehabbed, pretty simple, nothing too crazy. That's not too bad and that one sold for $128,000. So let's look at another one. This one sold for $173,000, 40 days on the market but this one is a bit— older. Let's look at this one. Let's go ahead and copy this address right here. We'll take it to Zillow. Let's see what this one looks like. This one's very nice. It is also a 2-bed, 1-bath. Okay, we're looking at the pictures. It has not been rehabbed at all. So if this was sold for that amount, it looks like that from the outside. Let's look at what our property looks at from the outside while it not being rehabbed. Let's open it up. Let's see. Do, do, do, do, do. So this is what ours looks like.
Let's see, doo doo doo doo doo doo doo.
Kind of looks like a piece of shit, not going to lie to you guys. Yeah, that's not going for more than $150. So boom, we got our ARV number which is after repair number which would be around $150 to $155. Let's go on the high end, $155. Times 0.75, $116,000. Let's say repairs, she did say there were some repairs to the property. So let's say it only needs $20K, we'd be right around $90,000 as our MAO, which is maximum allowable offer, which is what we would be calling her back with and saying, hey, this is what the properties are going for, talk to me about your situation. Why are you looking to sell for cash if you're even looking to sell for cash? What is the reason? If you're going to move out of the property, you're going to have to pay more for another property, therefore this probably wouldn't make sense to you. But if you are looking to sell the property, then I would recommend using a real estate agent, that way you get more money for it. We're not in the market to fuck people over. We're not in the business for that. We're in the business to help people that are in tough situations be able to sell their property quick and get rid of a liability that is the situation that their property is in. Normally, a property is an asset to a person. It increases in value, it brings in revenue every single month, it houses you. For this person, this is the property that they're living in, therefore they probably don't have liens on it, they probably don't have back taxes on it, it's probably not a liability for them, therefore they're more likely aren't going to accept our lowball cash offer. Therefore, it would be Probably a waste of time. And if you have an abundance of leads in your system, in your business, there's damn near no reason to call her, like waste time calling her. You could text her, let her know, hey, we're going to be coming under $100,000, this would be our offer. If you're not interested in that but you are looking to sell the property and you're not in a hurry, I would recommend working with a real estate agent. Boom, that's one lead. And not every single property is going to fit the perfect amount of numbers. Therefore, not every single property is going to be a business move. Therefore, this one is not a deal.
