How I Made $10K Leveraging Cash Buyers for Sub 2 Offers

What is going on, everybody? We are live this week on the Batch Weekly Call. It's the Painless Cash Buyer Secrets call where we break down how we're doing deals, working with cash buyers. And I'm going to explain to you guys how we did this deal the painless way. I'm super stoked, guys. We, we did a deal that was $10,000, a subject-to deal., and, uh, we did it the painless way. And I'm going to explain to you guys how we were able to do that, how we use Batch to find cash buyers, how we're able to leverage our cash buyers to make offers for us, um, so we don't have to make up the terms ourselves. If you're watching this live, I want to connect with you. We do this so we can network as well. So go ahead in the comments, tell us where you're watching from. And today we're going to break down exactly how I did that deal subject to If you don't know how to do subject-to deals and structure terms and all that great stuff, it's okay. I'm going to show you guys exactly how to leverage your buyers so you don't have to make up terms and you don't have to figure out all like balloon payment, terms, payment, uh, interest rate. I got you. Okay. We're going to, I'm going to show you how I did it and how I didn't even have to write up the agreement. Okay. Um, cause when it comes to terms, when it comes to subject-to, it can get complicated. And if you're just the, the person in between trying to figure out what works, it can get hairy, right? So you definitely want to leverage your buyers who are actually going to even buy it. You want to make sure you know what they want. So again, if you're watching this live, go ahead in the comments, say, hey, what's up, Nate? What's going on? I want to know where you're watching this from. I'm going live on StreamYard, so if I don't see your comment, you do comment, you know, I don't know why it wouldn't show up, but sometimes it doesn't. Welcome, welcome again today. What are we going over? We're going to be going over a $10,000 subject-to deal that we just did the painless way. We leveraged our buyers to know exactly what they would offer, and then we got it done. Okay, so if you ever run into a seller that wants too much money, I'm going to explain to you guys how you could— the process of what we did and how we were able to get it done. Rogelio Bell, what is going on, brother? Uh, let's give a shout out everybody to Rogelio, um, Bell from San Antonio. If you got any deals, if you're doing anything, reach out to Rogelio in San Antonio, network with him. Good to see you, man. Appreciate you being on here. Um, all right, anybody else? Yeah, come on and let's get started. I'm gonna start my timer because I got the, uh, I think it's Pomodoro timer. It keeps me on track. I've been trying it today. It's, it's been good. It's 25 minutes of doing something and then a 5-minute break. 25 minutes on, 5 minutes off. And it's— I'm feeling energetic today because it works. They say it's supposed to keep you energized and it has. So I'm about to start it. Let's go. It's supposed to start. Hold on. Come on. All right, now it's starting. Cool. All right. How did we do a $10,000 deal subject to without really knowing exactly what our buyers would pay? Like in the beginning, right? When we first were talking to the seller, we didn't know exactly what people would pay. We had an understanding of what a good deal was. So let me show you guys something. If you guys haven't heard about the calculator that I built and I use, it's called the Painless Offer Calculator. This thing is, is money. Okay. And let me show you why. So what we're able to do, the cool thing about this calculator is it gives you a complete analysis of a flip. It gives options when you run your numbers. It gives the options to a seller of all the different options they can explore. You can run wholesale numbers, novation numbers, BRRRR, 1% calculator, creative deals, which we're about to show you how we run that, run those numbers. It gives you a cash-on-cash return. Amongst just everything, any way that you can do a deal, guys, it breaks it down. Okay. Because for me, when I talk to a seller or I'm talking to a wholesaler or an agent, I want to know all the different options. Now, this isn't something everybody has to do. This takes some time to learn, but it's okay. But I like to know what are the options. So I'm not just making a lowball cash offer to a seller. And if they say no, then it's over. I'm done. I can't do anything. So this is not the end-all be-all. This is not like, okay, run the number. If I— if the seller's not willing to accept something close to the numbers I put in, then I'm not going to work it. No, that's not how I do it. So this is— this is the process. So before I get into the number breakdown, let's talk about how this goes. You're talking to a seller and the seller— the house is worth $450,000, right? ARV. And they say, I want $445,000. They want $5,000 less than what it's worth retail. And that's what they say. They say, that's what I want. And you're like, well, you want to sell for cash, right? Yes, I do. I need to sell ASAP. The house needs a little bit of work, but I know I can get that much. So this is what we do. We go in and we, we run our numbers and it's not like a 70% rule. We go here and I'll show you guys like a quick breakdown of what I would say. I would say, all right, so your house is worth $450,000. And you want to sell it to me for $445,000. Is that right, ma'am or mister? Yeah, that's right. Okay. So I, I'm talking this out. I like to tell people like how I run my numbers. Okay. So if I were to buy your house, I would have to get hard money, a hard money loan, because, you know, I just don't have all the money in my bank account and I just put it in one deal. I like to leverage my money and the buyers I work with do that as well. So I'd get hard money. So I'd have to be paying monthly interest on those payments. It's going to take me about 5 months to hold this property of yours, to buy it, close on it, and resell it after I fix it up. And I'm going to have to pay 6% commissions when I relist it on the MLS. I'm going to sell it on the MLS. I'd have to pay 3% to the listing agent and 3% to the buyers. But actually, I know a guy, so I could probably get away with it for 4%. Okay. They're like, okay, cool. And you're telling me that the house needs some work? How much money would you say the house needs? I don't know, maybe like $10,000. And they're usually low. And I'd say, look, just depending on the square footage you told me, your house is 1,500 square feet. I would say yours is a light rehab just from what you told me. It's a basic rehab. 1,500 square feet times the material costs. It's going to cost me about $27,000 to update that so I can sell it for $450,000. Okay. Because the houses that are selling in your neighborhood, they're updated and yours, you know, yours is livable, but it's not obviously to the standard. Okay. So if I were to buy your house, at $445 and resell it for $450, unfortunately, I would lose a lot of money. I would lose like $75,000. It would be, it would be rough and I wouldn't have a job and my business would go under. So for me, in order for this to make sense, I like to be at a 15 to 20% return. Okay. This is a business. I got to make money. So for me, for this to make sense, and this is not because I'm a greedy person, this is just I got to run a business, right? And by the way, sometimes I go 10, but let's just say it's at 12% return. I can say I would need to be at 325 for this to make sense so I could make a return on my money. Whether the economy goes up or down, I would— I feel like I'd be safe around that. You know, there's other investors that would be a lot lower. Now, a lot of people, they do the 80%, the 70% rule. This is the 80% rule, which lets you know that it would be around $325 anyway, right? On the 80%— no, 80% ARV would be $360, rehab, blah blah blah. Let's see. Okay, so yeah, $360 is the 80% rule. If you change this to a 70% rule, which they teach a lot, which I, I think is too low, uh, you would be at $315. Okay, so $360, my offer is around $325. So that's what I say to the seller. Okay, so I say, hey, look, this isn't my final offer, but my for this to make sense for me, I would need to be around $325,000. Now, this is what usually happens, okay? They say, oh, that's way too low. I say, hey, no, I totally get that's way too low for you. I get it. So I have a couple of options if you're willing. And then I run them through the options like, hey, can you flip this house yourself? And they're like, no, I don't want to flip it. I don't have the time. And I say, okay, so you're not— you're not interested in renovating this property by yourself. Okay. All right, I won't run those numbers with you. Um, if you're, uh, you can do a novation. I can list this property for you if you'd like. We can partner and I can list it and we can find someone to partner with us and buy it and flip it. That's a novation. And they're like, oh yeah, I don't mind doing that. Then you can go that route. Or which we ended up doing is the owner carryback program, seller finance, subject to. We just said, hey, look, are you willing to take payments? Um, instead of just getting cashed out immediately, if we can pay you more? And the guy said yes, okay, because all the cash offers he was getting were too low, uh, were too low. So we just went over here and we were like, okay, this is— we're not going to be buying your house because, uh, you know, I'm not interested in buying it on terms, but I know some people that might be interested that I work with. So I just ran some numbers on what he wanted. He wanted $450,000 originally, and I was like, look, I'm at like $325,000 on a cash. I can probably come up higher if it's— I can come up a little bit higher if it's, you know, on terms. So I just ran the terms. I wrote what he wanted in there, and this is kind of pretty much what he wanted. And if I can keep the entry fee under 20% most of the time— and the entry fee is how much money a buyer has to bring to the deal to upfront, like to bring down. So I said, if I can keep this under 20%, it's usually a deal. So what happened is we, we talked to the seller and we agreed on, you know, like a baseline. And I said, let me just run this by— so we put them under contract and we ran it by some of our buyers. And then what happened is our buyers that we knew, they started giving us like, hey, those terms that you have, they just need to be tweaked a little bit for me to be interested. And then we basically just got the buyers to tell us what worked for them after we had like a baseline understanding what the seller wanted and what they'd be willing to accept. And we leveraged the buyers to tell us exactly how much they're willing to put down, what terms they wanted. They're pretty much the same thing that we had agreed on or like come up with, but they just tweaked it a little bit. And the seller originally, he wanted like $80,000— no, no, $60,000 down. Now, we eventually, we were, we, after talking to a bunch of people, it was way too much money down. No one was really willing to do that. So we told the guy, we're like, hey, you know, no one's really willing to put that much money down. You know what, what's the least you can you really need? And he's like 40. So then we were able to find someone willing to put down 50, and that's how we were able to make our 10. Okay, so the reason why I'm sharing all this with you guys is like You don't have to figure out everything in ironclad, right? You can just say like, hey, look, the cash offer is where I can buy it at. And, you know, if that doesn't work for you, I have some other options that we can explore. Novation, you got the seller finance. And then obviously, if it's not something you want to buy, you just run it by your cash buyers and see, hey, look, this is kind of what the seller wants. Can you work with that? And if not, what does work for you? And you just bring it back. And, you know, there's multiple ways to do seller finance deals, but I didn't want to stay in the middle of this deal. So I just connected the buyer on it. Um, and then he paid me, uh, you know, through a check, like directly. But basically I want to let every— the reason why I'm going through this again, guys, is when I first started doing, uh, real estate, subject to was kind of difficult because there's so many different ways to structure deals. And if you spend all your time trying to structure a deal and then you send it out and nobody wants it and you just are like, well, I guess nobody wants it. That's, that's not what I recommend doing. What I recommend doing is, you know, getting a baseline. All right. Getting an understanding what they want down. You know, if they want anything down, if they don't, then perfect. And just bring it— putting out to the buyers you have and not like a giant buyers list. You don't need that. We only send it out to maybe 20 people that we knew and then they give you the feedback and then you leverage them to get the deal done. Okay. That's kind of like in a nutshell of how we're able to make it work when we didn't have to just like tell the seller directly like, hey, we can do this and this and this and this. Now we're like, hey, this is where we're thinking, but we need some feedback. So, you know, if you feel like you have to tell the seller exactly what you're going to offer and you're a little nervous because you don't know if someone will— you can wholesale that, that property or find someone, I wouldn't even say that. I wouldn't be like, yes, we can do this and this and this. Just be honest and be like, hey, this is probably what's going to work, but let me get back to you. Let me verify. Um, so anyway, guys, um, yeah, that went a lot quicker than I thought it would, to be honest. Let me, uh, let me kind of run this back. Let me go back to, uh, sharing you, uh, this calculator really quick so you guys get a little bit more of understanding. So when you're structuring seller finance deals or subject-to deals, again, the thing most buyers are looking for is can it cash flow? Okay. Can you make money? This deal is interesting because in Utah it's really hard to cash flow because the prices are so high. So this didn't really cash flow, but the guy that was buying it was looking more of an equity play. And you want to keep the entry fee under 20%. And the entry fee, I mean, is just the cash required to get into the deal. If you can keep that entry fee low, then you usually can sell any seller finance deal ever. Because people, if they don't have to bring a lot of money, then they're like, heck yeah, why wouldn't I just take a property that can cash flow and I don't have to put a lot of money into it? So just make sure that when you're doing this, you keep that entry fee, you know, reasonable. And if you're— if you're— I've seen a lot of people are like, hey, I got a seller that wants to sell their house. They need, you know, the house is worth $240,000. They need $120,000 down. And my fee is $20,000, so they need $140,000 upfront. That's, that's more than 50% entry fee to get into the deal that you're not going to be able to sell that unless you sell to someone crazy. Because it's just, they're not going to make money unless the purchase price is extremely, extremely low. But anyway, so that's, that's what we're looking at. And again, when you're discussing offers with sellers, I'm always giving them like the offer that works for me if I were to buy it myself. Or I just know 100%. Now, if it gets tight, if it gets close, which 99% of deals are tight and they are close, because, you know, sellers, they see Zillow, they kind of know what they— or at least they want as close to as possible because they, they think that's what it's worth despite it being in probably terrible condition. Um, you, you, you just make the offer that makes sense for you because they're, they're usually going to go high. And if they are high, you reach out to some of your buyers that you know directly, ask them where they need to be, And that way you don't have to lose out on deals and you do deals the painless way instead of taking a deal that sucks, blasting out to 1,000, 2,000 buyers on your buyers list and just wasting your time, seller's time, everybody's time. Okay, don't do that. Um, and I wanted to show you guys, so what happens once you have a seller who's interested in selling and you got like a good baseline, you have a good understanding of what they want and you need to find a buyer. Let me, let me show you the cash buyer secrets. So with— let's just go right here to this area in Salt Lake City. So let's say my perspective, the property I'm talking about is in White City. Okay, I need to find a buyer. And the best technique that I use, it's called the neighborhood flipper technique. You just go to a specific neighborhood where you have your property and let's say the property is— let's just say it's right here. Okay. You can type in the address, but I'm just going to say the properties here. I need to find a cash buyer that's willing to buy properties in this area. So what do I do using Batch? Well, it's pretty freaking simple. You just mark your property like I just showed you guys, mark the area. You go over here to on market. You want to know what properties are currently listed on the MLS right now that have been flipped. And then you just go here to cash buyer. Let's see if there's any flip properties. Okay. So let's take a look at some of these so you guys can kind of see the, the job that the flipper did. Oh, that's nice. Okay. You can see that they did some painting, maybe a little staging. Let's take a look at this one. Okay. Okay. Just cleaned it out. Look. Oh, that virtual staging. Let's freaking go. Okay, so these are flippers. You can see they're actively there. They have active flips. And I can't show you guys because if I show you, the YouTube Live will block it because Batch has got great data and they're like, hey, that's privacy, you can't give all that information. But basically, all you would do is you'd click on this and you'd either skip trace the buyer for 9 cents right now, or it's for— I think it's free within your first 250 if you, um, skips. If you don't have Batch and if you need Batch, hit me up, I got you a link that gets you a free trial. Uh, but anyway, you, you skip trace the buyers, or what one of my favorite things to do is just reach out to the real estate agent because, you know, the agent has the connection with the buyer. They can build the trust, and you just call the agent and say, hey, agent, I noticed that you represent— you're representing a flipper. Would they be interested in another flip in this neighborhood? I have one I'm wholesaling. Bam. That's it. Okay. And the thing is, guys, there's 1, 2, 3, 4, 5, 6, 7, 8. There's 8 listings um, right now, well, 7 that are active where I can call on and call the agent or the buyer. You don't think I'm gonna find someone that's interested in doing their next flip? They have their property listed to sell it. Okay, so anyway, uh, Batch is an amazing resource for finding buyers. You got the cash buyer tab here. Um, let's see, I know there's another one I saw over here. There's like a quick cash buyers. I, I have to kind of understand what the difference between the quick cash buyer and the cash buyer. I'll find that out for everybody, but But the cool thing about this is like you can really stay targeted. Let's say you just wholesale this property and you have a great buyer that buys in this neighborhood. You can specifically go and target free and clear properties, high equity properties, listed below market price properties. You can call on these. I might even call that one. Let's see, pending. I mean, you have all the different filters and many, many more that you can use, guys. So great resource if you don't have it. Definitely try it. It's one of— it's like a must if you're an investor. But yeah, if, if any of you guys have any questions, if you don't, aren't putting them in the, the chat and you watch this later, put them in the chat. I do read through them, um, and to see if there's anything I can help you out with. But look, one thing I want everyone to get out of this call is if you're talking to a motivated seller, someone that wants to sell, and you make them an offer and they don't accept a cash offer, it's gonna happen, okay? They're not— everyone's going to accept your, your low offer. So what do you do? Well, you say, hey, would you be willing to take payments? Oh, okay. What does that look like? Well, what that looks like is instead of cashing you out and you being completely, you know, buying the house like today, we would make you payments. Okay. And that way we can pay you more. Is that okay? Yeah. And then they're like, yeah, that's okay. Simple as that. Then you're able to use a calculator. And by the way, the calculator I showed It's free if you guys want it. I used to charge for it, but I'm feeling giving these days, so I'm just giving it away. If you go to painlessflipping.com and enter the newsletter, you get an email to you for free. But anyway, you talk with the seller. If they don't accept your low offer, that's okay. Just say, hey, what other options are there exploring? If you look at the calculator, you see all the options that are available to you as an investor. Okay, so you can monetize and work those leads. But yeah, if I didn't work the deal like I did, I wouldn't have gotten the deal. If I would have just been like, hey, here's a low offer, offer, and then here's my subject to offer that I can do, and I can't— I'm not— I can't wiggle. It wouldn't have worked. But because I have the relationships with the buyers, we do it the painless way. We have good relationships. We leverage our buyers and know what they want. We're able to make a deal happen. So if you're not doing this, I can guarantee you've passed up on a lot of deals, and that just happens when you first start or if you don't have these tools. But if you want to maximize the amount of leads, if you want to sell or close every closable deal, The painless way, you got to do it. You got to know your options and you got to be able to just be open and honest with the sellers that you're talking to and just say, hey, you know, my cash offer doesn't work. These are some other options. Which one works for you? What do you want to do? Simple as that. All right, everybody. Hope this was helpful. This is the Painless Cash Buyer Secrets call that we do on batch every week at 1:00 PM MST. And shout out to Rogelio again for being on here. Appreciate you, man. Again, if you guys are in San Antonio, you want to network, hit him up. He's the guy. And, uh, we'll see on the next call next week. Peace out.