Deal Finding Friday LIVE - with Nathan Valle!

Morning, good afternoon, good evening. What is going on, Privy Nation? Guys, it is Deal Finding Friday, favorite day of the week. Deal Finding Friday, to where I spend a little bit of time with you guys showing you how I like to use Privy, how I use it to find deals, talk with realtors, find properties listed on the MLS through real estate agents. How do I make those offers? What does that conversation look like? All that good stuff. So without further ado, let's jump right into it. So let me share my screen with you guys. I hope everyone's week has been going well. Present, share screen. All right. All right, all right, all right. So as always, you know, I've already got my PrivyFilter set up. So all I'm doing is I'm just checking to see what goodies Did Privy send me today? I'm going to start at the bottom. Hmm. Let's take a look. I don't think this is in my target market. So my market is primarily Orlando. I've got somebody that works the Tampa area, so sometimes I'll look at some stuff in there. So, all right, all right. Outskirts. Let's take a peek at this. It's a little on the small side, under 1,000 square feet. Not a huge fan. It's been listed for 1 day, 3 ones sold as is. They went all out on the description for this one. All right, let's see. So real quick, one thing is when I see something like this, it's just like they're not even trying. Right. And it says sold as is. Right. Love that. That, that, that to me says they, they are inviting me for a phone call. Let's just take a quick peek at prices, but I'm not crazy about this house. 3/2, sold for— these are 3/2s and they're all like 1,500 square feet. Yeah, I'll be honest, I'm really not that interested in it. Just because I would, I would need them to come down probably quite a bit. And honestly, my— I don't know if my buyers would be that interested in a 3/2 this far out. I'm gonna see what else we got. Let's look at what other goodies we've got. St. Cloud, 2-bed, 3-bath. Not really interested in that. I don't like 2 bedrooms particularly. Let's, let's see. All right, let's, let's look at these. So these are in Tampa. Let's see what goodies we got. This one definitely needs some work. That's probably not— what are they selling, a backyard here? All right, let's take a look at this. East 132nd Avenue. Anything in the note? Oh, boom! Attention investors, cash or hard money only. Love it, guys. Oh yeah, look, look at this gem. She is a beauty. Oh yeah, we're 100% gonna call this one. This looks so familiar. This property looks really familiar. Let's, uh, how long has it been listed for? One day. Let me take a peek. Okay. All right. I just want to make sure this wasn't a property that I recently called on and like, like a few weeks ago to where someone bought it and then immediately relisted it. That does not appear to be the case. So great investment consists of 5 small lots that could be split into 3 or 2. Hmm. Okay. So that's something really good to keep in mind. Um, a lot of people, they'll overlook something like that and they'll wonder like, man, why is this price so high? Or why did something sell at a price that just doesn't really make sense compared to all the other comps? And sometimes it's something that we miss, right? Something exactly like that. Oh well, it's not just one house on one lot, it's one house with— how many lots was it? Was it, was it 3 or 5, 5 small lots. So let's just take a quick peek at what's, what's kind of just this neighborhood in general going for. Um, so ours is a 3/1, 1,300 square feet, built 1954. I'll be honest, its competition isn't looking too good. So I could either buy that full gut rehab or I could spend $20,000 more and get this. Yeah. One less bedroom. But, um, now just curious, this is probably a flipper. It doesn't have a before and after button, but let's see property history. So this was bought a while ago, so they paid $157,000, but this was also like 5 years ago. Sometimes I like just to have a general idea. Um, zoom in a little bit here. What else we got? So this 3-2 sold beginning of this month. Let's take a peek at this just to get an idea. Right, it's not the best pictures, right? I mean, it's not a, not a bad house, not in bad shape. Um, okay, let's call them up and see. Let's see what they got in store. I guarantee his phone's probably been melting. Poor Wendy here. Let's call up Wendy and see what's going on. All right. Oh, I have 100% spoke to Wendy before. She looks very familiar. I think she was— I think she was very pleasant to speak with. If she wasn't, I'd probably remember a little bit better. All right, let's give Wendy a call. 727- We're doing our mobile number here, 398-2774.

Good afternoon, Century 21 Real Estate Champions.

Hi, I was looking to speak with Wendy.

Okay, she's I can give you her cell number.

That would be perfect.

Okay. Are you ready for it?

Yep.

Okay. 727-410-8879.

8879. Okay, perfect. Thank you so much. All right.

You're welcome.

Take care.

Bye-bye.

All right. See, that's the kind of gatekeeper that we want. The one where we call and she's like, yeah, you want her cell phone? If you guys had watched a couple weeks ago, we had a different gatekeeper, right? When I say gatekeeper, I mean just like a secretary, right? Somebody that, that picks up the phone, or it's an office phone, um, but they don't want to let you past, right? They don't want to give you that cell number. I had that a couple of weeks ago and it didn't go as smooth as this one did. All right, 8879. Hey Wendy, this is Nathan Payne. How you doing?

Good, how about you?

Good, I'm doing well, thank you. I, I think we actually spoke. I can't remember off top of my head of what property is about, but I think we actually spoke a few weeks ago, but I— it's, it's slipping my mind. But, uh, uh, the reason for my call is I'm actually calling about the property that your phone's probably been melting about. The one on 132nd Ave? Yes. Yeah, I was just calling to see if you had a minute to chat about it, but it sounds like I might have caught you in the middle of something.

Yeah. Can you call back in like an hour?

Okay. Got it. Is it— do you have just one second? Can I ask you just a real quick question?

Sure.

Is— so I'm looking at a potential investment opportunity and I'm really interested in it. Could you just real quick tell me a little bit about the property and anything in particular?

That's a full gut job. He won't go much lower than list. I have several offers in. Um, that's about it.

Okay. When, um, you've already got some offers on the table, I, um, I guess my first question would be, I, of course, no interest, you know, don't want to waste your time or the seller's. I'd never want to insult you guys with a low offer or anything like that. I guess probably the simplest question is, where would I need to be at in order to be competitive?

Close to list price.

Okay. And are those cash offers?

Hello?

You there, Wendy? Yeah. I was just— are those other ones cash offers?

Yeah. Oh God, yeah. This house doesn't want anything but cash.

Yeah. Got it. So close to list price. When are you guys looking to accept an offer by?

Probably by Monday or Tuesday.

Okay. And then obviously price is the number one most important thing, but other— just putting price aside for one second, is there anything else other than price that's important to the seller?

Little to no contingency in price.

Okay. Um, if I was able to have zero days due diligence, you know, uh, um, a good non-refundable earnest money deposit down and could close on their timeline, is that something that would be attractive to them?

Well, yeah, it would be to anybody.

Okay, perfect. And, um, for this, I just, just kind of— you know the neighborhood, you know the property better than I do. What, um, what's your personal opinion? What do you think's kind of the best fit for this? Do you think it's a good fit to fix it up and relist it, or do you think it's a better fit to kind of do some work to it and have it as a rental?

Either or. I mean, it sits on the house, it's on 2 lots, and then there's 3 other small lots. Me personally, I would tear it down and build 2 brand new homes. That's what I would do. But can you call back in like an hour? I'm getting ready to walk in.

Oh yeah, no problem, Wendy. I appreciate your time and I'll be in touch.

Okay, thank you.

All right, thanks. Take care. Bye-bye. All right, guys, that right there is, is what we call the Deal Finding Friday Classic, or as of right now, that's what I— that's what we're calling it. So the Deal Finding Friday Classic is when they pick up the phone, they're like, oh hey, now's actually not a good time, can you call me back later? And we're like, oh yeah, absolutely, totally understand. Hey, just real quick, Right. Because every time someone's like, oh, I am in the middle of something, guys, you could— almost everybody's got 10 minutes. If they, if they were truly busy, they probably wouldn't have picked up the phone. But she, she's an amazing agent and she picked up the phone. So couple of things. One, yeah, guys, don't be hesitant. You know, we got to be a little bit assertive, you know, when we're going after a deal, especially when you're working in really hot markets. Right, guys. I don't know if there is a hotter market than Tampa right now. You know, I don't know, maybe Dallas, but Tampa, it's pretty, pretty crazy. So you got to be a little bit assertive. And then on top of that, you know, we were also able to get 80% of what we were looking for in just, you know, kind of fast-tracking that conversation a little bit. Right. We're able to get a little bit about the house. There are some additional things I would want to ask. But this is why I love asking the agent's opinion as to, hey, what do you think is the right fit for this property? Because everyone— and like we said, the lots come into play here. And because $259,000, she's like, hey, we got a couple offers, you know, it's a full gut. You know, she's like, you would need to be close to list. Now, that could be true. That could not be true. I don't know. That depends. Right? But I asked, hey, what do you think's the best fit for this property? Because as a fix and flip, I just, you know, at a quick glance, it didn't— the numbers don't really look like it would make sense. And this is where I see this all the time to where, you know, a property, people are like, oh man, those silly investors, like, how could they pay that much money? The numbers just don't pencil out. That just doesn't make sense. Guys, sometimes we might not understand the game that they're playing, right? And if we're able to just have a little bit of humility and ask ourselves, hey, what is it they might know that I don't? And I didn't think about that, right? And that's why I asked the agent. And that's why I love doing that is because, you know, hey, agent, you know the property, you know the neighborhood better than me. What do you think is the best fit? Right? And she's like, oh, you could do a fix-up, relist it, or you could do a rental. Honestly, I'm not sure if either of those would really make sense. But the third thing she said was, honestly, she's like, what I would do is I would tear it down and do two new builds. Right. So basically what she's saying is somebody could buy this property, right, the lot for two new build houses for the price of between $200,000 and $250,000. Now, for a lot, if you think about it, for a lot in Tampa, I don't know off the top of my head exactly what lots are going for, but I'm pretty sure it's roughly around that price range. So somebody, you know, to the uninformed view, right? Like if I didn't know any better, I might look at this and be like, oh my gosh, someone's paying $250,000, $260,000 for this. Like, that's crazy. They're going to lose the shirt off their back if they try to fix and flip this house. But if you have the right buyer and you have the right relationship, somebody doing a new build might be looking at this and be like, whoo, deal, deal of the year. I just bought 2 lots for 2 new build properties at half price. All depends on your strategy and how you look at the property. So this was an interesting one. Now, what? What other things I would do with Wendy if I was able to have some more time with her on the phone and if, if I was going to call her back, which I might. I've got a few people that are interested in land. One thing I would ask Wendy is I want to feel out price a little bit more, right? Because she says, oh, in order to be competitive, you would need to be close to list price right now. Obviously, it was kind of a redundant question when I was like, oh, hey, you know, those are cash offers, right? Kind of redundant. But I do like to just clarify that. And I also do it so that you guys kind of see, right, because they put right here investors, cash, hard money only. If somebody was using conventional financing, she probably wouldn't even accept the offer or she wouldn't even really mention it because a conventional offer, probably not going to, going to fund something like this typically. And she kind of states very clearly, hey, we're only looking for cash offers. So, but I do want to know, you know, the terms. I like really specific language, right? And when I'm asking a question, I like answers in specific language. However, when negotiating, when I give somebody information, I like to use very vague language. Right. I like to keep as much close to my chest as possible when I'm negotiating. I want to, I want to be able to see the entire playing field. I want to know the whole, all the situation, everything that surrounds it. And I want to keep kind of my cards close to my chest. And then I want to see, okay, what is it they need? And like, all right, here's the best possible hand that I can play that solves their problems, is a good fit for them, and also works great for me. Now, what on earth do I mean by specific language? So what I would want to do is, hey, where would I need to be at in order to be competitive? She goes, you would need to be close to list price. What does that mean? Some people, right, when they hear that, they translate that to, man, my offer's got to be at least, you know, to $257,000 or $260,000, you know, full asking. Guys, close to list price could mean $220,000, could mean $230,000. Right. It all depends on who you're talking to. Right. That also doesn't tell me anything about where the other offers are at. That's a pretty generic answer. Right. And like I said, she— and she's not necessarily— it's not that she's being you know, dishonest or lying, right? Where would I need to be at to be competitive? Close to list price, right? She's using terminology that, you know, whether she realizes it or not, she's using terminology to where I'm making that up in my head, right? So same thing for, oh, you know, hey, cash buyer, you should take a look at a deal. This is a sweet flip, right? Oh, this, this, I think you're going to make out really big on this one. I've got this smoking deal. You should take a look at it. Right. I'm using terminology that doesn't really give anything specific, but it lets their imagination paint that picture of what that perfect scenario is for them. So what I typically would want to do is if I had a little bit more time on the phone with her, you know, she's like, oh, she's like, you know, hey, you would need to be close to list price. In order to be competitive. I would say something along the lines of, okay, got it. So if I were to like look at, crunch my numbers, and if for whatever reason, you know, my offer was around like 2 or 210, like I probably shouldn't even bother calling back. Right. And so what am I doing? I'm not saying that's where my offer would be. I'm not saying anything. I'm— all I'm doing is painting a hypothetical. Right. I might be near that. I might be less than that. I might be able to pay over list price. I don't know. I'm just painting a picture, right? Because I'm trying to pull more information out of her. And if I were to say something along those lines of, hey, you know, so, so real quick, Wendy, you know, it sounds like if I were to crunch the numbers, look at the property, see what I was able to pay, and if my offer was only able to be at 2 to— I don't know, let's just say 210. My guess is I probably shouldn't even bother calling back. Now, one or two things we're going to get from her, right? Either a, well, no, no, no, like, still call me back. I want to hear the offer. And, you know, hey, I like presenting all offers to the seller. Right. Which gives us a lot of information as far as what they're willing to do if she actually has offers close to list price. Right. If she has offers at $250,000, typically the answer that we get— and if you guys have been watching the Deal Finding Fridays, you know that typically when, when I kind of give that low anchor, like, hey, if my— if I was only able to be at like 2, 210, or sometimes I'll give a number lower than that, kind of depends. But if I'm like, hey, if I were able to be at 2, 210, should I even bother calling back? And before I finish the sentence, most times the agent will cut you off. Oh yeah, don't even bother calling back. I mean, I'll tell you, right, we've, we've already got cash offers at at $245,000 and $250,000, right? Or they'll be like, you know, you would need to at least be at $250,000 in order for them to even consider what, what, you know, your offer is. Right. And then we get a huge piece of information where it's like, okay, thank you for telling me exactly where the offers are. Right. And we do that by making one simple statement. So that, that's one thing I would have done with with Wendy here. But the big thing as far as, hey, is this a deal or not a deal? Um, the big thing for this is, is do you have the right buyer for it? You know, in my opinion, I believe it's the person with the right buyer that's going to be able to make this deal work. You know, it's kind of a unique property, um, you know, with the, with the 5 lots, and it's got this kind of full gut of a house. I, you know, Honestly, I probably agree with her as far as it'd probably make more sense depending on the price you can get it at to, you know, and I don't know a whole lot about new construction, but I don't need to. I just need to find a buyer that knows a lot about new construction. And what I would do is I would then, you know, go from there. First and foremost, I would make sure I would have a buyer and then I would get in touch, you know, with that buyer and say, hey, I'm negotiating a deal over here in Tampa on 132nd. I think it could be a really good fit for you. Here's why, blah, blah, blah. You know, what price do you think you would need it at? Now, what keeps that buyer from stealing the deal from you? Well, number one, and we talk a lot about this in our masterclass and kind of what we do. There's a link down below that you guys can— you can sign up. It's totally free. We do a live masterclass on Thursdays. You know, it's— we don't even, like, sell you anything at the end of it. It's good. Definitely click, sign up for it. I promise you won't regret it. But what I would do is, is I would find the buyer and the buyer, he's not going to go around behind my back because, one, it's a buyer that I have a relationship with. And two, even if he did go behind my back and steal this deal, it's on a deal that I wouldn't have been able to do anyways. And I would have learned something about that buyer and say, okay, that's somebody I'm never going to work with again. But if I'm bringing a hot opportunity to the table that another investor didn't know about and I'm doing all the hard work and negotiating for them, right, because I didn't tell them, hey, here's the price that you need to pay in order to be a fit. I'm saying, hey, I'm doing all this hard work. I think there's a really good opportunity for you. I might be able to get it around this price. What would you be able to pay? You know, or hey, with this number, I think I can get it for you around this price. Would that be a good fit for you? Whatever the scenario is. And now my buyer's able to give me, you know, information from his expertise. I don't know anything about new construction or demoing a house or any of that stuff. He might have really good feedback as to, hey, here's why that does make sense and here's why I can pay this much or here's why I can't. And even if the buyer says, hey, here's why that doesn't make sense. I now have information. I'm now armed with information to where I can go back to that agent. I can go back to that seller and say, hey, look, you know, here's why that price isn't able to be a good fit for me. Totally understand. You know, maybe I'm not the right buyer for you, but here's what I'm looking at. And now, rather than me just giving an answer of like, oh yeah, we looked at it and the rehab or the construction cost, uh, yeah, came back higher than we thought, right? It's just kind of a generic answer. Whenever an agent hears that, whenever a seller hears that, guys, immediately in their head they're like, ah, BS, right? They're just trying to hustle me. But when you're able to say, no, here's the specific reasons and here's why those— that is important, the likelihood of you being able to renegotiate or still continue to work with them is significantly higher. And then the other thing I would do with Wendy is I would say, hey, look, you know, this is a great property. I'm going to look at it. I'll let you know kind of exactly what I can do while I'm looking at this one. I don't know, other than this house, this property, do you happen to have anything else that, that, you know, it's kind of like this and, you know, could use a bit of work, you know, anything that, that, you know, maybe it's listed or maybe something coming down the pipeline. Do you happen to have anything else? And she's either going to say yes or no. And what I'm doing is I'm kind of opening that door of, hey, do you have any pocket listings? Do you have anything that's not listed yet? Right. Do you have anything coming down the pipeline? And also letting her know, you know, hey, well, I'll tell you what, why don't you hang on? This is my cell phone number. When we get off the phone here, I'll shoot you a text message so that you have it. You know, definitely save your number, my number into your cell. And please, whenever you— this is kind of the type of stuff I'm always looking for. Um, you know, you can call, text me anytime, and I'll always let you know exactly what I'm able to pay, whether you have it listed or not. If you're looking to just get an answer for a seller, I'm happy to take a look at it and, and just kind of let you know what I'd be able to do. And, um, look, it's no harm, no foul. If someone else is able to do better, that's totally fine. You know, go with the best offer for you and the seller. Um, but I'd love to kind of be that person to where you could reach out anytime, and, you know, if it's able to be a good fit Great. Right, guys, super low pressure, right? And what does that do? That agent here is like, oh, wow, that's awesome. So now what I do is I just opened up the door for that. Hey, I want to be at the front of the line when they start having that conversation with the seller of a house like this. Right. I want to be able to have this conversation with Wendy before they get to listing it. And that's how I would go about it. And guys, that's the power of real estate agents. I, I've got a deal that someone just sent me. Yesterday, and I'll be hopping on the phone with the person today to where it's a realtor that's working with a seller. It's not listed yet. And the seller is going through foreclosure and they're like, you know, it's coming down to the wire and they need to sell it like, like now. And the realtor, he's, you know, he's used to being a realtor, listing nice houses, all that. Like, this isn't something that he's accustomed to or the agent's accustomed to. So they're looking for a wholesaler to help guide them through the process. And what's important for you guys is this is the value you're able to bring to agents, right? They don't typically want to work with properties like this. This is our expertise. This is where we're able to bring the most value. And those relationships, right? Wendy with the other agent, guys, the best part is each one of these relationships isn't worth just potentially one deal. Guys, it could potentially be worth tens upon tens of deals, right? And that's why just one agent relationship can be worth hundreds and hundreds of thousands of dollars to you. So that's why the strategy is so powerful. That's why I love Privy. You know, there's a million other reasons why as far as the tools, the comping tool, all that great stuff. But guys, I hope you got a lot out of today. I hope you're able to take some of the, some of the little, little nuggets that we talked about and go and apply that. Most importantly, guys, go and apply it. Get Privy if you don't have it. Um, let me know how things go. I always love kind of looking at the, the comments here. Uriel, what's up, brother? Great seeing you. And guys, until next time, have a great weekend, stay safe, and I will see you guys on Deal Finding Friday next week. Take care, guys. Have a good one.