How to call realtors in a competitive market- Deal Finding Friday with Privy

What is going on everybody? This is Deal Finding Friday. We're going to go find some deals using Privy, and I got my man David, the Truth Lamorte on here. What's up, bro?

Doing great, man. How you doing?

I'm good. I'm ready. So right now, David, tell me, you are in New York, correct? That's your market you're working?

Yes. Long Island, New York. I do some deals in New York City, but Long Island, New York, both Nassau and Suffolk County is where I'm focusing.

Love it. Love it. So everybody that's watching this, if you don't have Privy, you can get on a trial, I think for 30 days. If you, if you don't like it, you can ask for a refund, but you pay for your first month. Totally worth it, guys. I would definitely try it out. I have Privy. I like it. It helps me to find deals that are on market. It also does other, many other things. You can use the promo code Thrive and I'll hook you up with a discount. But anyway, so I'm going to explain to you the strategy that I use, the one that we're using right now to find deals. Efficiently and effectively using Privy. And I want everyone to learn like the process because it will help you. And then we're going to call some agents right now. And the title of this video is how to call realtors in a competitive market. Now people might be like, oh, you know, New York, that's competitive, or Long Island. Hey, if it's a good market, it's usually going to be competitive, you know, especially deals where there's buyers, there's a lot of activity. Okay. So I'm going to share my screen real quick and show you guys the process of how we do this. Okay, so first, a lot of people out just go out, pick up Privy, and they're like, let me go search for deals. What I'm going to tell you guys to do is use Privy to find buyers. And all you can use Privy, you can search for buyers, you can pull that list. But what I like to do is I like to network and find title companies that are investor-friendly. In New York, there's attorneys, so you can network with attorneys, hard money lenders, agents. You can find agents off of Privy, people that have listings on Privy, and then you can ask them if they have any buyers that are buying, buyers lists, social media posts, REI meetup groups. The reason why we start with buyers, David, do you want to kind of let people know why starting with buyers is probably a better idea than just going out and just calling agents and you don't really even know what you're doing?

Sure. Yeah, I think it's both. It's kind of twofold. Like, it's both tactical and both for your own mentality to, to keep yourself out of analysis paralysis and kind of take your excuses away from yourself. For me, that's a big part of it. Um, so basically you can kind of reverse engineer what you need, right? A buyer has this criteria. I spoke with this person. I know they're buying. Ideally, if it was referred by an attorney, a hard money lender, or, you know, title company, that's even more certain that they're a vetted buyer. And now I'm finding buyers for them specifically. Or honestly, it just gives you that confidence too when you're calling, because even if it doesn't go to that particular investor, you know, you spoke with someone, this is real. Somebody's buying this. It's not an invisible person, a buyer, which even in the wholesaling game, it could seem like, oh, these buyers, who are these like fairies behind the computer? Like they're people. They're like us. They want to make deals. They want to make money. Um, they can be challenging just like any other business person, but some people are really friendly, even in New York. So that's right, reverse engineer it both, both so that you know what deals to find, and also I find so mentally you can kind of take that excuse away from yourself to, to really get going. Well, you know, when you find a deal, you make it happen.

You, you nailed it, bro, and that's exactly right. So once you find these buyers and you build up a good network, or at least this doesn't even take weeks and months and years. It takes a couple days sometimes to find someone that you can build a relationship with. Then it's time to, you know, when you talk to them— I'm sorry, the next step would be talking to them, providing value, letting them know that you can look for a deal with, uh, what they're specifically looking for. And then you search for deals, okay? And that's why we have Privy, because Privy, we can go specifically to areas, um, and say, okay, what opportunities are there in this area that I can go and, and get some deals, okay? And for everybody that's watching, this is even for me, I've been doing this for so many years. I sometimes get stuff. I think I got a deal the other day. It was like such a weird deal and you could probably make it work if you structured it really, you know, you blew out some of the walls and you put in some apartments and just, it was a weird deal. But like in my head, I was like, maybe somebody would buy that. That thought process will get you, will slow you down. It will slow you down to be like, man, I don't know. And if, especially if you're brand new, you really don't know. So you could just be analyzing a deal for weeks or days or hours.

Exactly.

What I did on this deal that was weird, I just called my buyer and I said, hey, would you be interested in something like this? And guess what, David? Within 30 seconds he said, pass, pass, I'm out. And I was like, whoa, how'd he pass so quick? He's like, it's too weird. I'd like to stick with the stuff that's just like playing like easy cookie cutter. And he didn't say cookie cutter, but he just said, hey, this one's weird. Like, I got to stay because the thing is, like, if there's a 10-bedroom, 5-bath, weird-shaped house, the comps, the ARV on that thing is going to be extremely difficult to find.

Yeah.

But if you're, you know, using stuff that has, you know, condos or townhomes or homes that have other properties that are similar, then it's easier. It's not that risky. So anyway, don't get yourself caught like I did yesterday, or we all do, just sitting there thinking like, oh, it could, because that'll waste a lot of your time. Have buyers leverage them and let's freaking go to Long Island and see what we can do. And David, I'm sure you've been like that too, especially in New York. I know there's some weird stuff in New York where you just probably catch yourself sitting there like, maybe, you know.

Yeah, it's true. You know, and I've done it. And even before I started doing more where it's like bringing it to buyers specifically. I've had plenty of time of analyzing, and sometimes you need that, but that's something to be aware of. And let it fuel you and let, let yourself get tired of it. Like, all right, I analyzed, let me do something now. So if you're stuck, let it make you do something about it. And Nate, just so you know, right there is Long Island, but technically wrapped up in there is Brooklyn and Queens. So more to the right. So yeah, to the left over here is technically the city, even though it's all on the island. So we're working that right there where you are is, uh, Brooklyn and Queens. So we're gonna move over. Okay, right there. So anything there on is basically what we're doing, just so, so you—

yeah, like past Queens, like over here.

Exactly. Yep, yep.

That's it, bro. I got a deal. I got a deal in Riverhead. 2 years ago. It was a $35,000 wholesale fee. Um, it came from, uh, pay-per-click that I was doing at the time. And the guy— I sold to a guy that had a listing like 3 houses down because I was brand new the area. And that was the problem, like I didn't usually do the painless flipping route. I would just be like, let me go find somebody. And I— it was like only dude that was interested was the guy that was— had an agent that was listing it like 3 houses down. And bro, the deal took forever because this is when the pandemic hit. So all the courts were closed. So it took like 3 months. It was wild.

Wow.

Anyway, I know about Riverhead.

That's awesome, man. I was just out there. Great place.

All right. So this is the area that David is working right now. So let's look for some deals around here. David, I don't know if you knew about this feature, But it's— you can usually type in like keywords here. I just found this out. I know this is probably dumb, but a lot of people— I didn't know about it, but you can type in like fix and flip and let's see if anything just off of that keyword pops up in this area. Let's run the search. And I think I can also— let's see here— draw so we don't have to mess around here. Oh, that'll work. I think that should work. Okay, so I type in fix and flip. It doesn't seem like there's any listings that have that keyword.

Let's see, investor.

Yeah, let's type in investor filter.

Another one that I've seen a couple times is like occupants or occupied, or vacant would be a nice one to look into too.

Let's see. Let's remove this filter and let's see if maybe it pops up here. Okay, one of them uses the keyword, baby, let's go.

Fix and flip?

Investor. So let's— oh no, that was fix and flip, my bad. So let's try investor. Let's see if any of them got—

That's cool, man. I didn't know about that little keyword.

Oh, look, okay, for some reason it just wasn't working when I was doing it before, but it's right here.

Yeah, yeah.

Let's draw just so we don't have all this other stuff in here.

Yeah, it probably won't be much for Suffolk, so it makes sense that it's not going all the way out there. Yeah, I think there's mainly MLS for Nassau County.

Okay, right here. Uh, so these are all apparently, uh, when we type in the word investor, this is, uh, what we're finding. So let's see. So we don't, we don't want the Queens, we want everything over here, right? Like Levittown.

We technically could, we technically could because we have, you know, we buy over there, but we could check out some of these.

Okay, so let's take a look at this one. Investor special. Welcome to the marvelous one-of-a-kind home located in the heart of Hicksville blah, blah, blah. Okay, so investor special, they said. Why is this an investor special? Let's find out. Um, it's not bad.

Uh, high price, high price.

That's high price, huh? And that's the thing, dude, this is the power of mastering your market. Because David, look, I'm looking at this, I have no idea, bro. I have no idea what the price— if that's a good price. Thanks to Privy though, I can go down here into comps and see kind of usually what, um, what's in the area. If it doesn't have something that's sold or a lot of information, then I kind of got to look around. And New York is a, is an area you definitely— in Long Island, you got, you got to master because you could have one area that's like a million dollars and then you got something that's like way lower than next, right?

Yeah, yeah, that's nice range there.

Um, so David, let's, let's, uh, let's call on this one, bro, because, uh, it's, it's definitely an opportunity. I never let the, the, the list price kind of dissuade me or push me from calling. I always think it's, you know, if it looks like a good opportunity for a flip.

Yeah, huh? It is just listed also.

All right, all right, all right. Let me call it, brother. Let's, let's give it a shot. Why not? Now, if you have, uh, Privy and you're an agent, they usually have, uh, the details of the information, but when they do not, I just, uh, look up the information on Google. So let's see. So agent is Ammanpreet. Ammanpreet. All right. And let's see, list, uh, property professionals, realty. Oh, they do have the office number, but I, I like, uh, I like to actually get the cell phone number of my boy Ammanpreet. All right, David, just from your experience, without having to run like comps right now, where do you think this thing would need to be?

So, you know, it's not uncommon for something to really go for that price, especially in Nassau County. Um, was that a— was that a 3/2, bro?

It is a 6/2. A 6/2, and that's weird. You have 6 bedrooms and 2,000 square feet. They must be really packed in there.

So I'm just trying to do another search on some, some tubs, which might prove why it's tricky.

Let's see, they might even be counting this top thing as a bedroom. But anyway, I'm just— I'm going to call and just say, hey, I'm newer to this spot, but, you know, I'm looking for some investments, looking for some flips, and let's see what we can get, brother.

Awesome, man.

All right, so let's— this seems to be the phone number of my— of Amanpreet.

Yeah, just to give you an idea, there's a 5-bed, 5-bath that went for $1.2 or $1.3, $1.2. That's a nice new build though. But, um, yeah, just give an idea. All right, you would have to do a bit to get there.

All right, so $693,000. 9749. Okay, let's, let's see if Amanpreet— he's the only one that doesn't have the pic. This must be a like kind of an, um, you've got— looks like you got to be a certain ethnicity to work with these guys. You gotta, right? Don't they all look like they might be, uh, good for this area?

For— yeah, that area too, bro.

I know New York is just so, um, diverse.

Very diverse.

It's wild.

Yeah, we're the most diverse.

Tell me that this dude ain't sold millions of dollars in real estate.

He's sitting on cash right now, right?

He's probably buying your message. All right, we're gonna call Amanpreet again. Yeah, man, they got a squad here, bro. Bro, you need to hang out with these guys.

Yeah, I like it. Yeah, I got the beard, man.

I'm pretty ambiguous enough.

Bro, this dude looking— this guy's looking like he's got a strong jaw. It's a strong gentleman right there. Hello? Hey, is this— I'm sorry, I don't want to mispronounce your name. Is it Amanpreet? Yes, who's this? Okay, hey, this is Nathan. I'm calling about your listing on Burns Avenue.

Yes, sir.

Yeah. Do you have a couple of minutes to chat about it? What can I help you with? Yeah. So I'm an investor. I've done a deal in Riverhead in Long Island, and I have my software that I use to alert me of deals in the area. And this one came up as it just listed and as a potentially good investment property or flip. So I was just calling on it to get a little bit more information and see if it would be good. I'm just heading into a closing.

Can I call you on 5?

5 o'clock today?

Yes.

Yeah. Yeah. Is— would this be a good property, like, to fix and flip? I don't want to waste your time.

No, there's not a fix and flip.

Okay.

More of like a buy and hold?

Yes.

Okay. All right. Well, thank you. Yeah. Call me back. I'd appreciate it.

Thank you.

Yep. Thanks, Alan. He's like, I'm about to go on a closing bump you.

Yeah, I could see this, you know, in certain neighborhoods too, like someone utilizing this as a rental that's a lot of bedrooms. So you can like kind of pack it out a little bit there. Um, it may not be what I would do, or depending on the investor like that we work with, but it seems like that's kind of what they're catering that buyer to already.

Well, bro, how could this be a good investment? Like, what, what, what are rents in the area? Like, let's, let's see. This usually tells you what rents go for. So let's— let me see.

You can get more if you could pack it out with like a family or two and 6 bedrooms, bro.

So 2021, $630,000, and they think it's gone up without doing anything, $200,000. That's wild.

Yeah, I see a 4/2 that sold for $780,000. That's 1,600 square feet.

I'm not sure what that one's at, but Okay, and then we can change it to see what rents are going for in this area as well.

Yeah, rent could be high around here.

Yeah, holy brother, look at that. But okay, so that, that's for a 4, a 4/2, um, 3/1, 4/3. So that, yeah, they're probably thinking you can rent this for quite a bit, huh?

They're thinking that, but it's— you're probably gonna have a hard time finding a 6 bed, 2 bath. Um, someone probably who's savvy may snatch it up and kind of pack it out and just not do much work to it. That's kind of what I'm thinking.

Yeah, well, it looks like, uh, most of the places that are for rent are pretty— like, they're— they seem updated somewhat. Like, uh, they look a little bit nicer. Anyway, let's just say this thing goes for $4,000. Like, you can— let's say $5,000. If, if you were to buy this thing, I think the mortgage alone just on this expensive with the interest rates the way they are. Let's see.

Yeah, it's a lot. Taxes here are pretty high.

Well, check that out. $6,000 if you bought this thing. That's what you're paying. Plus, if this is a rental, I'm sure that the interest rate's even higher on a rent like an investment property. So Yeah, I don't know who would buy and hold this. Again, that's the key of knowing your buyers, because me looking at this as an investor, I'm like, come on, dude, this is only a deal if I got it like at $550,000 or $600,000 and then fixed it and then sold for $800,000, right?

Yeah, yeah, I agree.

Anyway, so that's, that's that one that was interesting to call on. He at least, he answered, and notice that I called him twice. And he answered the second time. So these people, they do definitely do answer, uh, but you know, sometimes you got to bother them a little bit. All right, so this one, uh, they say it's an investor special, but look, I mean, it looks like it's kind of been updated. Let's see what— why it said investor in it. Welcome, full 4 finished levels of comfortable living spaces, split entry, conveniently located, blah blah blah. Hmm. Oh, this property is an investment in a lifetime of memories. Okay, so they're saying this could be an investment. You know, there's probably gonna be a lot of agents that say— just throw that in there too. They're just like, oh, this could be a good investment for you. It's like, maybe, maybe not. Okay, let's take a look at this one. All right, that's all the pictures they're giving us. This home is perfect mid-apex cul-de-sac, is being sold as is, no representation whatsoever, perfect for contract. What is that one? No representation whatsoever. Perfect for contractor, investor, handyman. Cash buyers only. Proof of funds. Make this into your dream home.

Somebody doesn't want to work with an agent, I guess, and wants it to get sold.

Doesn't—

maybe doesn't like agents.

That's an interesting one. I think we should call about it.

That's cool.

Find out what's going on because, uh, yeah, yeah, that's cool. As is. That speaks— it almost seems like maybe it's a wholesaler that listed this thing. Lenny at Douglas Illman Real Estate. Again guys, with Privy you have the office phone number but I like calling the cell phone.

As-is is a good potential search too, I like that.

Yeah, yeah, we could give that a shot. Let's see. Alright Lenny, ooh Lenny bro, he's a shark bro, you know Lenny's a shark. He's like, all right, mobile, let's call him. 516-835. And I'm convinced, bro, like, if you— I don't care about how many calls someone makes a day, it's how many offers and how many conversations you're having. If you're having conversations, and let's say 10 to 15 a day, you're in the right way, you're in the right path. Hey, is, uh, looking for Lenny? Uh, my name is Nathan Payne. I'm calling because I saw your house, uh, listed on, uh, 15 Maggio Lane.

Yeah, it's going to the contract.

Oh, it's already under contract?

It's going in. Yeah.

Well, I mean, is it too late for me to make an offer if I can beat the offer?

Give me an offer. So you're gonna have to consider the commission, so Wait, I'm sorry.

You said something before that you said about commission.

Well, she sold it on her own. Somebody put something in her mailbox. She saved me some money on commission. But if you have an offer, throw it out there. I got a lot of offers on it.

Yeah, well, I'm assuming. And then the wording alone in the MLS details was like shouted, hey, come get this property, right?

Um, the value is in the property, not the house.

Yeah. So is— I'm assuming most people are just going to tear it down and build.

They're going to tear it down for sure.

Okay. Well, I don't want to waste your time. Is— are the offers—

that's why I'm looking at 28 years. I don't want to waste your time or my time.

So yeah. So the only question I have— yeah, the only question I have is, uh, is, is the list price— are the offers coming above list price or is, or Yeah. Okay. That's what I was assuming. I didn't want to, you know, offer less and then you'd be like, come on, that ain't going to work.

No, no, you listen, any offer, you know, but there are above it.

Okay.

What she has is above it.

Okay. Well, it looks like I got to go to the drawing board, see what it would cost to buy the land. And when, when would you need an offer by for her to accept?

The buyer's probably going to sign the contracts. Again, it's the private buyer, probably by early next week.

Okay. So we got some time.

I had a full price offer on it. It's not, in my opinion, and again, I'm doing this 20 years, it's not worth what the buyer's offering. But yeah, he wants it, so let him buy. Well, hey, property's a little sloped. It's a nice size property, but it's not even.

No, I'm looking at the backyard alone.

It's gonna take some work to even it out.

Yeah, it looks like the, the backyard, you can already kind of see the slope. Um, yeah, what you're saying.

Exactly.

Well, I appreciate you being like straightforward with me about like not really being a great shooter.

Totally transparent.

Okay. Well, hey, Lenny, I also— so just to kind of let you know who I am, I live in Utah, but I invest all over the country. I look for properties and, you know, sometimes I buy them, sometimes I wholesale them, and sometimes— and I do off market, like I do market. So, you know, is there any way we could— I'm assuming you work with guys like me that like look for properties all the time.

I'll hold on to your number and I get something. I always get something. I'm the guy in Playbill. That's great. I'll reach out to you.

Okay, and what can I do to help you out? What can I bring to you that would provide value?

If you buy the house, give it back to me if you tear it down. That's all.

Okay.

All right.

Well, you know what I want you to do? Shoot me your email address.

Okay.

And all the information. Okay.

And, uh, I do— I— sorry, I do work with some people that live in, uh, Long Island. Do you live out there as well?

I live out there as well. Absolutely. I wouldn't be doing it for 28 years if I didn't live out here. Yeah, this is my area. This That's my sphere of influence.

Well, yeah, I think it would be nice to meet, you know, sometime. I don't know if you go to any meetups around there, go to any of the, the Rias.

Sure.

Okay. All right, well, I can send you my email.

Text me, you know, text me your email information and I'll shoot you an email and we'll stay in touch.

All right, Lenny, I appreciate your time. Thank you.

You got it. Bye, bro.

That's a straight shooter right there. That's somebody that I think you want to meet with, David.

I like that, man.

That guy's a baller. He's like, come on, bro, it ain't even worth that.

Yeah, yeah, no, that's cool because— and that's, and that's kind of what you'll come across. So that's kind of a good example of what might push people away from New York, but it might come off as strong, but you know, they have a good— you know, you can see he just wants to make it happen. But it did like at first like, hey, what's going on with you? And, uh, then he gave information and we found out what we needed to It's like, how can I provide value?

He's like, you can't do nothing for me, bro. So I sent you information, that one guy in New York. I think you met— you met Ken, but there's another one who reminds me of this guy, bro. They're all kind of like the straight shooters. They're like, oh yeah, they're awesome. Okay, well, hey man, I would— I would say hit him up. I wouldn't— I'm not going to send him my email just because I don't really work that area. But if I were you, I'd just say, hey, we were on the phone and just take it over.

Yeah, 100%.

I'll send you his info.

Cool guy, love it.

All right, man, well, we're crushing it. We're making calls, we're getting to know people. So look, this is—

it might be— oh, go ahead.

Uh, I was just gonna say, for everybody watching, this is a scenario where you might be like, well, let me analyze this for a long time, and— but there's no play here unless you have a buyer. Zero play. Because the play is they're going to— she's already working with somebody. She's not going to let you lock her up. She's already got like several offers. The only way to really get involved in this deal is if, David, if you knew in the back of your head or if you had on your Rolodex land buyers, if you had people that were buying land and building, you would be like, all right, let me call. Hey, hey, Joe, I just got off the phone with the agent. He says he has several offers above list price. 'But you know, I think we can get you in here. Maybe I can negotiate something.' And then that's when you can take it a little bit further. But I would say running into this, this is a brick wall if you don't have buyers already, right?

Yeah, I hear that.

So that is why we're telling you, knowing your market, knowing who you can work with saves you a ton of time. Okay, so we got that one. This one I would say is a no-go for me, brother, just because it seems fine and I think they're trying to sell it to a first-time homebuyer looking to expand their portfolio. Ain't no portfolio as a first-time homebuyer. What are you talking about? You're a first-time homebuyer.

Portfolio.

Oh, look at that, brother.

There we go, okay.

Okay, alright. That's it. That's good, I like that. Raised ranch style home, this home blah blah blah, certainly look at this as an opportunity. I'm curious how long it's been on the market. I know it tells you this. Okay, 16 days. Bro, it seems like this area is pretty doing pretty good. It's pretty active. Oh, it's been a month and a half?

No, turnover is like a month and a half.

Okay, because in Utah sometimes it's taking a little longer than that. Look at this one. Oh, oh bro, how you going to do this, David? How you going to like kind of fix up a little bit and then you just like, you just gave up?

You're like, never mind.

All day, he's like, never mind. Well, I guess they just put new floors in. Alright man, What do you think? You want to call this one or you want me to do it?

Uh, I'm down.

All right, give this one a shot. Let me, uh, pull up the, the info. Todd at Island Advantage. Okay, let's see. Todd Yvonne. Come on, is that him? That's kind of a weird website right there. Todd. Oh man, this— they're making it tough for me on this one. Just give me his info. What do you have? Todd, list name.

Yvonne, Giovanni, Giovanni.

All right, here it is, I think. That's kind of weird. TJ. All right, that's, that's his number. That's what it says. You want to give it a shot?

What is this?

631-351-6000.

Let's see if that's what it is. It's Todd. And what's the address?

Right here, brother. 3724 Stokes.

All right, Stokes. Hi, I was calling for Todd about the listing. Living on Stokes Avenue. Okay, he's not in today, but I'm gonna be able to help you.

Oh, address of the property?

Yes, I do have the full address. It is 3724 Stokes, S-T-O-K-E-S Avenue in Bethpage.

And are you an agent or an interested buyer?

I'm an interested buyer.

Yeah.

Property.

Um, just give me one second, I'll be able to get his contact info for you.

You have his contact? Okay, great, I'll take that down. Yeah, whenever you're ready. I am ready. Um, it is 516-315-8086.

His name is Ed.

You said Adam? Ed. Ed. And this is— it's Ed's listing?

Yeah, he's handling the property.

Awesome. And you work— you work in the office with them too? You're an agent as well? I'm not an agent, but I do work in the office. Okay. So, yeah, I was calling to get some info. I don't know if you had any or if I'm better off just kind of calling Ed.

Yeah, you would have to reach out to him for that.

I'm sorry.

No, all good. I appreciate that. Thank you.

Yeah, no problem. Okay, you too.

So I don't know if you could really hear, he was speaking really low. Um, I could hear a little bit.

He said Ed's Listing or something.

Yeah, he gave me the number for Ed so I can give Ed a call. He gave me his number, um, that I'm calling now. That I could ask about.

Oh, there's some, there's some trash out here though.

Yeah, the trash is the good ones, bro. That's, that's what I was gonna say. Maybe if we could find something like below $400, it seems like you get some ones in the $300s that, you know, those will go for like $500 or $600. And now, especially like with my buyers, they're more open to it because they, they want at least a $200K spread for like anything $500 and under. And then for like bigger, they want even more spread. So of course, yeah, so that might be a good one too, but we'll call this guy and then we could see, uh, about some other—

yeah, yeah, you're right, man, because what we can do here since we know that criteria like you said, we can just get rid of the keyword.

Hey Ed, how you doing? This is David. I was calling about your listing in Bethpage on Stokes Avenue.

Hey David, how you doing?

I'm doing great. How's your day going?

Not bad, man. How can I help you?

I wanted to see, uh, maybe I could get more information about the property because I'm interested in buying. Um, I'm an investor, but I live out here, uh, Long Island. I was looking at this potentially as a flip. Uh, looks like maybe could use some work.

Uh, so I wanted to see maybe what you might be able to tell me about It, um, it has a bunch of violations on it, but most of them have been cured already or taken care of. The only one that exists is a giant shed in the backyard, but the way to fix that is to take it down.

Knock it down. Okay.

Um, and then the, the main problem with that house is the garage was converted illegally without a permit to living space. And the whole back of the entire house was extended by about 4 feet without a permit.

Oh, okay. Okay.

That's the biggie.

Yeah, because then it'll be, you know, affect the taxes and all that, the COs for that. Okay. So I can see why it might be challenging. Have, have you been getting some interested investors on it or you think it might go to, you know, Somebody's a buyer.

Yeah, there's definitely, um, interest in the property. Um, you know, in fact, it was an accepted offer today.

Oh, there you go. That's the theme this week for us.

Sometimes die. So, you know, I'm telling you about it because it's a fact, but also the fact is that they also die from time to time. But, um, you know, I still got to go to contract and then close. But, um, okay, the fact that all the work without permits, does that, uh, deter you?

No, um, honestly it doesn't deter us, especially because as investors, you know, to be frank, we're kind of looking for things like that where there's, there's usually a reason why an end buyer or, you know, somebody's not going to buy it, where we can be of, you know, service and come in there and change it up a little bit. Um, so yeah, we, we're definitely open to properties. That's not a game changer. It might just affect obviously the offer because we got to consider everything. Um, but, but it doesn't take us out the game. So anything like this or other properties that you have that might be a little bit more troublesome, um, I'm definitely open to. If I could ask you about this one, do you know what, you know, after repairing, you know, I'll check out the comps obviously a little more in depth, but What's something like this fixed up may go for?

Yeah, so, um, high— mid to high 7s for sure. High 7s without an extended rear. The comps indicate that mid to high 7s is what the resale value would be, but it's hard to comp probably, right? Yeah, I'm thinking it's closer to 8 because it's big, the additional size, you know. Now also the The whole lower level is incomplete. It's gutted to the studs and, you know, it's got to be done.

So that's—

okay, so the lower level is just done. And this, I guess— okay, so the photos I'm seeing, that's upstairs.

And then indicate that for sure.

Sure, sure. Okay, so the downstairs, meaning the level, and then is there a basement as well?

No, it's the lower level and the upper level. There's no real basement. It's only underground by like 2.

Okay, so that's— yeah, so that's your space there. Okay, so that's, that's pretty much gutted, uh, to the studs. Maybe they were thinking about doing some work, or did it get flooded or anything like that?

Uh, looks like, uh, somebody was in the midst of doing some work and then Yeah, change of heart. Okay, I took a bite of a potato chip. I shouldn't have. Uh, sorry if you heard that.

No, all good, all good.

But yeah, so it looks like somebody was in the middle of, uh, rehabbing the downstairs and then, um, lost the house. I just, you know, took off.

Yeah, okay, that makes sense. Yeah, so I could, I could see how it could potentially, you know, go above $750,000. And I understand why it might be speculation, but I could see that happening, especially, you know, no inventory now. Is the offer you have, is that close to asking or above?

It's fairly close.

Okay. So good. So good. Okay. Yeah, because we probably would need to be a bit lower. You know, I'm thinking of the low fives. I'm sure my partner probably wants high fours, but, um, yeah, I don't think that's gonna happen. Yeah. Okay.

You know, that's fine. Listen, I already wrote down your name. I'll write down your number when we're done. What's your email address?

My email is David Lamorte, my name. David Lamorte. Realestate@gmail.com.

Okay, um, I gotta put together a new list of what we have available as far as bank-owned and investment-type properties, and when I do that, I'll send it to you. It's on my list of things to do today, but I honestly don't think I'm going to get to it. Sure, it takes me about an hour an hour to do. Okay. And I just, I just have so much to do so far, um, still yet today. But, um, you know, I got you on my list, so I'll definitely send you that. And then if you see something you're interested in, or, you know, even something that just catches your eye, call me or email me again, and, uh, you know, we'll take it from there.

100%. Thanks so much, Ed. Been great talking to you.

Same here.

And listen, if you, um, if this one comes back, I'll be sure to let you know. And if you see any other Island Advantage property out there, whether it's somebody, you know, somebody else's rider on it or what or whatnot, I can sell anything we have.

And, you know, that's awesome.

Yeah, that's what I did.

I was, I was talking to your website a little bit, so we'll look a little bit more at the Island Advantage website. I appreciate that.

You got it, David. Nice talking to you. Hope to meet you soon.

Okay, take care.

All right, take care.

Hey, great call, bro. Great call.

Nice. Good. Thank you. I'm glad— I hope— I realized after to put like the— this closer, but I wasn't sure if you could hear it.

No, you're doing good, man. So the thing that I like about the way you talk and the way you— you're like, you're the investor, right? Like, you know, you're in charge, you know what you're doing. And I think it's hard to come off like that when you don't know, you know, you don't know your stuff or you don't know what people are buying or like what you know, what, what people want, right?

Like, imagine trying to have that conversation and he's like, it hurt me last year.

Yeah, yeah. But, you know, it takes time, right? But the thing is, like, you know, I was running the numbers while you're talking. This house, you know, when there's permit issues, that's, that's— I honestly don't know much about clearing that up in New York. That's probably a ton of work. So You know, let's say, and let's just take his word for it, $750,000. All right, I don't know if that's— that sounds a little high to me. $750,000, it's— you get it at $579,000 is the list price. You have it for 6 months to, you know, get all the permits, everything rehabbed, and then resold takes 2 months. You know, you relist, the flipper relists it, he doesn't have to pay commissions to list it.

And that's $120,000. It's $120,000 or more for rehab.

Oh, you think this one is $120,000 or more?

Yeah.

So check this out, bro. At that price, $579,000 at $750,000, flipper's losing money. Um, even if we got it for half a mil, well, he's not losing money, but he's not getting a return. Most people want to get at least 10%, right? And so in order to get 10%, $470,000. So the thing is, like, when you're making these offers, if you don't know what your people want, you're— you imagine offering 70% of ARV minus rehab minus repairs, like, you're going to be offering like $300K, bro. Let me actually do the math on this because, uh, I'm curious.

Yeah. You would have to be close to $400,000. At 80%, you'd want to be $480,000 if it was $120,000 repairs.

Yeah. So $750,000 times 70% minus your rehab. And then let's say you want to make, you know, $20K on the— So you're at $385,000. Now that's why that rule, if that's all you know and that's all you're doing, you're not going to get a lot of deals. But we run this rule and we can find out, you know, our buyers, our best buyer, he's like, dude, as long as I can make 10%, then I'm good. Then you're like, okay, well, if he needs to make 10%, let's see what gets him 10%. Okay, so we're, we're like at 4, we need to get it to him for $485, right? So that means if I negotiated at $450, then I'm making the difference of $450 and $485. Okay. That, that's how the numbers work. And this is the tab that I use for to analyze flips. And if you come over here, you just do this. This is actually, you can put in the wholesale fee. So let's do it for $450,000. Um, sorry, let's see. So we get under $450,000. We want our wholesale fee to be $20K. It's a $120,000 rehab. Um, and it's going to be 6 months. 2, 12, blah, blah, blah. Okay, so let's see, $475,000. Okay, so that's if you got it. So what this is saying, everybody, is if you get this under contract for $470,000 and it needs all this repair costs, all stuff, um, sorry, that money, you hold the money, the rehab, you make $20K, he's at 10%. If you wholesale to him for $490,000, he would make $72K, which is 10%, about 10%. It's close of $750,000. Anyway, that's David. That's the best buyers that I'm able to find right now.

That sounds about right. Everything you said, like, especially with the conversation I just had today. Yeah, that makes sense.

Like, the best buyers I'm finding in big markets are like cool with the 10% after everything out the door. Or around there. Now, if you're in like the middle of— what is it called— the Midwest, or if you're in areas that aren't that popular, then like they want to make 15-20% because they're taking a bigger risk on buying a property that might not sell quickly. But New York, Atlanta, Salt Lake City, like these bigger cities, these guys know that if they're not offering and willing to make less money, that they're never going to get a deal. There's just too much competition. So everybody that's listening, if you don't have a buyer who's willing to do 10% and he's like, I want to make 20% or 15%, then you got to find a new buyer, unfortunately, because that guy is going to be extremely difficult to find deals for. Because if he's wanting to get into the 17%, 20%, that means you have to get these houses under contract for like $70,000 less, $90,000, well, $70,000 less than what I can. And if you— if that's the case, then you're gonna lose every time, you know, or a lot of the time.

Yeah, 100%.

So, so this one, I would keep an eye on this one, brother. I think this one's back.

Yeah, it was a good conversation and, um, we connected. I'll make sure to text him as well. And honestly I feel like if it— if that doesn't go back and you can get in the low 5s, it's a deal. Because I think it's close to a deal because, you know, especially around here, flippers want to see at least a $200K— they want to see $200K in the spread. Okay, um, this is a little special because of the permits, but somebody might be able to tackle that either way. Um, so that's why low 5s may still will work because once— but once you get above half a mil, they want the spread to be a little bit bigger. So I'm thinking, yeah, if you could get it for 5, you, you could probably move it. But, um, especially because, you know, in New York at 10%, you still can make $80K or so.

Yes, yes. So if we look at the numbers right here, if you got it for half a mil and it's worth $750, you're at $44,000. But if he's right and it's you can do $800, then yes, it's a good deal, right? So it all depends on the ARV, and it depends what that buyer thinks ARV, not what you think or what I think, because they're the ones that are like, oh, I'm willing to buy it because I think this. So just know that everybody, if you speculate and you're like, you know, maybe it's like, hey, you, yeah, you can lock it up, but might as well just ask your buyer. And for me, what I would do is I would just say I would call one of my buyers, be like, "Hey, man, I'm in negotiations with the guy on Stokes Avenue. I got it in the— I'm trying to negotiate in the low 5s. I think it'll be a deal for you, but I don't want to waste your time or lock it up unless it's something that you'd be interested in." And I would say that to multiple buyers that I had and see what they're thinking, right?

Yeah.

Because other than that, unless you have a lot of experience and you're like, "Hey, I, I, this is the deal. Let's, we just have to send it out to our buyers once we lock it up. Um, but dude, I heard something that one guy that was on my podcast, it was in New York. He said that if you lock, if you go under contract on a property in New York, you have to close. That sounded kind of weird to me. Is that true?

It is like that. Um, it's, it's nearly, yeah, it's nearly impossible to like get out of a contract in New York. At least from the, uh, the seller side, um, unless financing doesn't go through or there's some sort of problem. But yeah, that's, that's why you don't really need to fire memorandums the same way in other states, because once you have a seller under contract, it's like, that's, that's the, that's the fine line, right? Like, but once you're under contract, like, the seller is like not really getting out of it.

The buyer can get out, right?

You, you're probably going to have a hard time getting out. You can get out, but you're probably going to lose money. You're going to lose the MD, and, uh, everybody's going to know that. They don't like that around here. They really don't.

So wholesaling the traditional way, it is— it doesn't really even work in New York because once you get that contract, you better, you better do it. Is that what you're saying?

So yeah, you, you, you're welcome to still assign the same way in New York, which is why You know, the attorneys are essential. Shout out to Jim Clark. Anybody who's looking to, you know, do more in Long Island or New York needs an attorney. But yeah, so you can still wholesale and people do it. You know, I just got off the phone with somebody today who did 6 wholesale deals. But you, you might either be prepared to lose the EMD, which, you know, can be $10,000, $20,000, $30,000, $50,000 out here. So that's kind of what is at stake too.

But we know there's a bunch of wholesalers that just lock up stuff and they don't even know if they can move it. What happens to the people that do that, bro?

They're probably not going to get in contract in the first place or they're going to lose EMD and a lot of people are going to be happy with it.

All right, well, I appreciate you being candid about that. All right, this one, $320,000. This one is under— this is the price point that you're saying that your buyers like. And look, contract vendee, as-is sale, sold occupied, no interior access, great for investors, flipper, handyman, cash offer. Bro, that's a terrible description. You can't see the house, you can't go inside, you got to buy it as-is. It's like, well, what if inside is like What— I, I gotta see inside. So that's interesting, man.

I came across two like that last week and one just sold, and I was really— I was annoyed because I was like, I told my buyer, I was like, man, I would have made an offer on this. It just sold. But yeah, same thing, they don't want anybody inside, uh, it's— or it's condemned where they like, the town is like, we're legally not letting anybody inside unless you have a hard hat and you're gonna walk through with somebody. It might be that situation.

Yeah, because look, it's got a board in the house.

Boarded. Usually somebody came in there and boarded it for a reason. Just so people know, that's usually not a homeowner bordering it up.

The renter's in there just boarding it up. But dude, it does say sold occupied, so there is somebody in there that won't get out.

Oh, I like it.

I like this.

I like this problem.

Yes, yes. Okay, and it's been on the market for 4 days, bro. We got time, you know, this is a good time. Do you want to call or you want me to call it?

Yeah, you can take this one, babe.

All right, let's do it. His name is Justin Polio.

Polio.

All right, or polio, I don't know, either way. Justin, Justin, Justin. All right, let's see, is this the guy? This might be him. No, don't tell me this dude ain't a wholesaler, bro. Oh, that's Gerald Wood. Never mind, Justin doesn't have his photo up. Okay, let's call it. It's kind of fun, dude.

Yeah.

831-4464. And the thing I would say, guys, is don't go in these always trying to lock up the property like that you'll get it on the first call.

You have reached Justin Do it with the expectation to build relationships.

Son of a— Alright, usually I'd leave a voicemail but this is your area. So yeah man, that seems like an interesting one right there. It's in the good price point, it's probably condemned or the— I'm sure there's a tenant in there that won't get out and they're like, hey, it's your problem. Um, so go ahead.

I'll just say I had a weird one like that yesterday, um, and it's, it's, uh, it's a— they're gonna sell it for like $360,000 plus $70,000. They said they have to, they have to sell it like that because that's what the bank needs, and then plus the arrears. So they have to sell it like— so they can't even accept like a $250K offer until I guess it's—

dang, that's wild, bro. All right, so Dave, what I did is I filtered everything underneath $450,000. We can even go a little bit lower because you were saying if it's in underneath that range, you know, that's a little bit more of what your buyers are looking for. Is that right?

Yeah, I think it's just for the market too, for the buyers, for their— a chance to be a little bit of a spread. And also the ones that are probably— may not— we don't— may not have to compete with and buyers so much on.

Yeah. All right, let's see. Um, the old world charm. Don't— I love it. They try to like make it all sound all church. They try to church it up, trying to make it sound good. It's like, nah, this house is just trash. Um, the house does need some TLC. Are you sure? You sure it needs some TLC? Let's see. That ain't TLC, baby. That's not— that's a full-blown rehab. That's not—

oh wow, wow. Yeah, yeah, hilarious.

A little tender loving care, no problem. It's just a little bit though. Um, been on the market for 27 days, brother. Uh, yes, that's interesting.

Yeah, I like this one.

Happy Homes Realty. Okay, yeah, not that one, not that one. That's a sad— that's a sad one. All right, let's see. Just— dude, you know what's really impressive though, bro, is like in where my market is, there's not really like homes like this that hit the MLS very often. Like if we look in Utah Lake—

no, no, no, I almost had one yesterday. And they got an offer on it. And I'm going to follow up, but the offer was like, it was basically listed as a deal. And I, oh man, I got frustrated, but we're going to pop up on that one.

Well, bro, let me show you something that's, that is cool though about the MLS. Cause a lot of people, like they, they, they kind of hate on the MLS, but I got a text from one of the investors, like one of my first members of Investor Thrive. I got to show you. So he sends me this deal and he's like— I'm like, how'd you get that house? And he's like, oh, I got it off of the MLS. And so he flips houses. He does like the HGTV. He goes all out, bro. So let me show you like how good of a job he did on this flip. So this is— look at how much—

how well beautiful.

Yeah, amazing, huh?

Yeah, very nice.

He goes all out. Um, he's the kind of guy that will spend like $200,000, $300,000 on a rehab. Yeah, he'll get it for like $700,000, he'll put in like $300,000, and then he'll sell it for, uh, $1.5 million. Yeah, $1.4 million. Hey, oh yeah, exactly. So he's, he's, he puts in the work, but, uh, you know, a lot of people aren't willing to do that or have the skill set or know the people that will. Do that. But he does it, so he makes on each flip, like, he's looking to make like $250,000, $300,000 each flip. So that's just another thought for everyone watching this is like, hey guys, you find the right buyer, you can bring them a deal that normally other buyers are like, there's not a good spread. This guy, he goes all out. So, you know, there's spreads on those kind of homes. All right, so we're looking at this one, Dallas Moore. Dude, I think Happy Homes is a wholesaling company. I think Happy Wholesalers. Yeah, I think so, brother. Listing agent, Happy Homes. Anyway, it doesn't matter, but I feel like I've talked to know this dude. Let's see, come on, give me his dang contact info. Happy Homes Realty. That guy, oh yeah, he's been in the game for a while. Bro, you think it would be super easy just to get their info? Yeah, I'm just looking it up.

I usually, honestly, a lot of times I just Zillow might have it like the same listing. Sometimes even if it's not privy, I'll just look it up real quick in Zillow and then they have the agent's phone right there.

Yeah, let's see that. When I do that, usually it just gives me the office number and I got to look it up anyway, but let's see. Okay. Let's see, let's give it a shot.

It's probably a market thing too, because when I was doing deals out of state, it never came up.

Yeah, but now here they're like, yeah, call me, I ain't afraid. They seem— these agents seem pretty active. Usually when I call—

oh yeah, they don't really answer.

Hi, you reached Happy Homes Realty.

There's nobody. Come on, Happy Homes, step up.

Happy Homes Realty.

Hi, Dallas, how's it going?

Hello, who's calling?

My name is Nathan, I'm calling about your listing on Harrison Street. It's under contract. Oh, it's already under contract. Hapson contract. I'm sorry, I don't understand what you're saying. You're saying Hapson contract?

Right.

The buyer's assigned, check is delivered, we're going back to the seller.

Love it. All right. Well, it seems like you, Happy Homes Realty, comes across a lot of distressed properties like this. Do you have any other ones that you have currently listed?

We have—

we do have some in queue. Are you a buyer or a realtor?

So I don't even know. Go ahead. Sorry, I interrupted you. Go ahead.

No, no, that's okay. Yeah. What, what, uh, are you a buyer, investor?

Yeah. Yeah. So I'm not a real estate agent. I actually, I live in Salt Lake City, Utah, but I, I've done a couple of deals in Riverhead and Long Island. So I have a, like a little queue set up on my software that sends me deals, uh, to call about when something comes on. So that's pretty much it. I'm an investor and, you know, Either I buy it, or if I don't, I have a network of buyers that I work with. I'm sure you know about wholesaling. I do it all. Just depends on the deal.

Right.

I was just on the phone with another wholesaler, but—

Of course.

Referencing the same property. Yeah, I get a lot of REOs. I've sold probably 200 of them, whatever.

Seems like it, yeah.

Sometimes I get 2 a month. Sometimes it's 1 every 3 months.

Yeah.

I handle a lot for out-of-state banks. You want to give me a call in a week or so or something and see if this deal goes through? Fine.

Yeah.

You know, and I'll give you my— you're calling from a 404 number?

Yeah, yeah, I grew up in Atlanta, but I live in Utah now. It's just the cell phone number I have here.

Okay, gotcha. Yeah, I could You could— I can give you my email address. Oh, you, you've— I don't know, how'd you find us? Where did you see it?

Um, so I have a software, I don't know if you've heard of it, it's called Privy. Basically what it does is it pulls up, uh, opportunities like for flips and stuff. Uh, so that's, that's how I've got— I got an alert telling me about it.

Gotcha. Okay, so you have my contact information, my email address, I think?

Yeah, I pulled it up, uh, online. So I also— I can text you as well, and you can just send me your email and we can, we can connect there.

Um, but I am curious, which number did you call?

631-775-7936.

Yeah, that's my office number.

Oh yeah, okay. Is that— is that one— will that receive text?

No.

Okay. Um, if you want, if you want to just give me— I can write down right now your number and I can just text you over my contact info.

Well, I have it. I have it in my phone.

Okay.

I will send you a text with my information.

Okay, and let me ask you this. I'm curious. So REOs, you said you work on those. Are you going to get— do you believe you're going to be getting more of those as time goes on, or do you feel like those are going picking up? You know, just curious.

I've been selling them for 20 years.

Okay, so pretty consistent lead flow from that. That's awesome.

Yeah, I've been doing this a long time. Oh, well, I got a lot like 5 different out-of-state banks that, you know, that will send me their non-performing assets. So, you know, need eviction.

Wow.

You know, yeah, so got a lot.

I got a lot to learn from you. I wouldn't even know the first place to start to build those kind of relationships. That's awesome. You got a lot of good relationships. It sounds like you build up.

Yeah, again, I've been selling real estate for 20 years.

I love it. I love it. Well, um, yeah, let's definitely keep in touch because I, I'm always looking, you know. Uh, my— what I kind of do, uh, just kind of let you know, Dallas, is like, if something doesn't work for me, I, I really try to develop really good relationships with like, uh, like flippers and cash buyers. So if something doesn't work for me, since I'm looking all the time, I try to bring it to them and I, I I ask for like a little assignment fee. I don't ask for anything big. Sometimes it's like about $1,500, $3K. I'm not trying to, you know, make bank on everything. It's more of a volume play. So if you ever run into something that, you know, you don't list or you want to move super quick, you know, I'm kind of the guy and that's what I try to do.

Okay. And I'm sorry, your name again?

Nathan Payne.

Nathan Payne. Okay, Nathan Payne. What was I going to ask you? Oh, so So you're a hard money flipper, right?

Yeah, I do hard money. I also try a lot of, you know, what they call wholesaling. That's not the only thing I do. Sometimes I get paid through like invoices and stuff, but really I just know who's buying and what they want and I look for it. And if it works for them, give it to them. If not, then I take it.

Gotcha. Okay. All right, Nathan Payne. So yeah, I will, I'll shoot you a text. Like you said, I'm in the field right now, but I'll text you my email address and I can start farming your stuff.

Okay, let's see if we can do some deals together. I appreciate it, Dallas.

Alright, thanks for the call.

Yeah, have a good one.

You too, bye.

That was awesome, bro. That was a great call.

Yeah, I would say that's the kind of like— I could vibe that this dude, 20 years, he knows He knows what we do. And I think, guys, I think we try to tiptoe around the fact that like we, we, we wholesale sometimes. And I don't think you should because the thing is like you provide massive value if you're like, hey, what I do is I know, you know, the top buyers in my market. I know the top guys that are ready to pull the trigger right now. So if it doesn't work for me, I bring it to them and I'm trying to make a killing, you know, I'm trying to move deals. And, uh, you know, if we work together, I know you come across a lot of stuff. We can— I think I can help you out. And that's valuable, right? Because, Dave, you come to me and you say, hey, I know everybody that will buy, and I can get you an answer super quick. That's valuable. Not— this is not valuable. Yeah, man, I can lock it up and then take a couple— 7 days, 14 days— and get you an answer. No, I want to know now. So if you can provide that speed, people like that.

Yeah, man, I, I love it. And just to, you know, Underline it. You know, calls like that are such a win, even if it's like, hey, lock up a contract. Like, and what does that tell you? Like, literally that one just got locked up. I'm sure that it got close or under asking, uh, which means that a deal just like that sold. And that's— that means that's the third one I've come across now in the last two weeks that was just there, which tells us that it's only a matter of time before we're on top of it and picking these up.

Yeah, yeah, it's, it's, it's who's faster to the punch. So a lot of people, they, they look to get the properties that are, um, you know, been listed on the market for 30 days plus. Sometimes as soon as it hits, you make that offer. That seller doesn't want to wait, they want to just take the offer right now. So, um, shout out to Jerry Norton. He's, he, he likes to call an opportunity that hits, uh, ASAP. He's just like, let me be the first one to call. And, uh, you know, a lot of people, he incentivizes them with the double dip or the triple dip, which is like, hey, I'm unrepresented, you can represent me, and you can represent me again. You can list it for me when I flip it, or my— one of my buyer flips, or whatever. So the guy's like, oh wow, I can make money on the listing, I can make money on the buyer's commission, and I can make another 3% on listing it again with you, for you. So they're like, Yeah, they're going wild. So that's called the triple dip when you offer that up. So, yeah, guys, I hope this call was helpful for everybody who watched this. There are opportunities out there. I just talked to my title agent, sorry, my escrow officer here, David, and I said, hey, how's business? Because I like to check in on my title companies to see what's the business look like, what's the market? And she's like, I just doubled my business. I'm like, what? How'd you double your business? She said, I just did so many creative deals this month because they are not moving. The property's really moving on the MLS here in Utah. So sellers are becoming more savvy and open to creative.

Yes.

Oh man, that's music.

It is. Yes.

Bro, that's, that's, that's crazy. That's wow.

Beautiful.

That's the opportunity right there knocking.

Yeah. So I want to show you one thing, David, because this is interesting. I have this property right here. In Utah. Let's see if I got it right here. Okay, so this guy, he just lowered it $490,000, $40,000. Okay, so he was at $540,000. This property, it's okay. I would say it's like rent-ready. It's not like— let's get some clips of the house. Oh my gosh, give me the freaking— okay, so it's clean. It's not flipped where it's like, wow, this is really nice. It's clean. So I talked to the agent. It's a pocket listing. Well, not necessarily pocket because it's listed, but she's one of my agents that gives me pocket listings. And she said— I said, hey, what's the situation? You know, obviously it's either I flip this and the offer's super low or we can buy it on terms. And she's like, I think he'd be open to terms. But here's the problem, Dave. This is what I'm facing. Rent in this area is about like $2,500.

Okay.

So I run the numbers on this deal, okay? I'm like, how can I make this work? So let me show everyone how to run numbers on a deal like this. So if I gave him his asking price of, uh, where'd it go? $490,000, okay? Uh, and let's say I put $30,000 down, okay? Commissions, there's no commissions, right? I don't have to pay anything. Closing costs, assignment fee, let's say there's no assignment fee if I'm buying this for myself. Improvements, house doesn't really need any improvements to rent it out. So I just put $5K. So the total acquisition price would be $497,000. And then the seller is going to carry the $460,000 for me. And there's a— so the total cash that I would need is the down, the closing costs, and the improvements. So it's $37,000. So I'm getting into this deal for 7% less than— you usually want to keep the entry fee under 25%. Okay, so that's good. But the issue is interest rates. You know, he said he would do 5%. That's— he's like, oh, that's a good deal. So $460,000 at 5% in 30 years, the payment is the same as pretty much the rent. But one thing a lot of people don't notice, bro, is rent is not just— you just get that rent. You have management fees, maintenance, insurance, property taxes, vacancy. You know, if someone doesn't rent it out, you got to pay. So we look at the net operating income and this thing actually loses you $723 a month. So you're like, wow, that's not a good deal unless you're Pace Morby and you can lose money on deals. Just playing, Pace. Uh, but that's just like, I can't do that. I don't know a lot of buyers, uh, that can just— $723. So I'm like, dang, how do I make this work? 'cause this guy wants to sell this property, okay? And no one's making an offer he wants. So I'm like, well, if I drop it down to $400,000, I don't think he'd do that 'cause that's, he'd be like, well, why don't I just list it for $450,000 or $425,000 and someone will get it with a loan. So we drop it to $400,000 just to see what it looks like. $370,000, 5%. Bro, we still losing money at $400,000. Um, so let's say we bring it back up. Let's say we bring in $100K. Yeah, $100K. Okay, so we're just carrying $350K as the loan. Do we make— do we— we're still down, bro. We're still—

if you get close to that 25% there too.

Yeah, and you can't do that. Not— and most buyers, they're not bringing in $100K down for a rental.

They don't want to.

No, they're gonna— they're gonna say, hey, I can do $15K. Right? So exactly, we're kind of— so the one thing I was thinking of is the amortization. If you string it out for like 100 years and then balloon him out sooner just so you can make the payment work, you're still not there, right? So just because somebody is open to terms and you can make the offer that works, But it is, it's difficult in markets like mine and yours where it's so expensive to buy the property and the rent has not caught up yet. And where you're at, the rents are higher, but Utah is still a little lower. So it's like, dang, how do I cash flow? So it's a real— I don't know, David. I know you've been studying seller finance for a while. What is there something I'm missing or is this just a deal that's just it's tough to make work because the interest rate's so high.

And yeah, so that's because the seller wants— they want on their payment to them, they want that rate. What would it be like? Yeah, see, that, that's a tough— I guess somebody just wants it. Usually you're trying to get it to zero, but 5 might be killing it. Um, I'm curious if that's helpful, but either way, even at that, you're pretty low. It's not like you're even like $200 positive, which is like a minimum. Okay, you got 4.

Yeah. And some people right now, they're like $300 to $500. They're like, I got to be there minimum, right, in case something crazy happens. Yeah. So because the thing— the play is in 5 or 10 years when you balloon the person out and you pay them off, that you would have enough equity where you also get paid on the back end when you have to balloon them out and you sell it or whatever. But, uh, you know, if you get it $420,000, I mean, hopefully in 10 years the property is worth more, but if it's not, you end up losing money. Yeah, I believe it'll be worth more in 10 years. But, um, interesting to look at this kind of stuff though, because it's, you know, you, you try to make stuff work and you, you run it in through the flip, the flip analysis. Like, what if we were to flip this thing? So Unfortunately, the ARV is like $500,000. He's asking for like retail right now and it's not retail. So if we were to get this thing at $400,000 cash, 3, 6, let's say it took 4 months to flip. Let's say the house isn't terrible, so maybe we just put in $40K. Now let's do $30K. It's not bad. See, like even at $40K, $400,000, it isn't working. So tough to make these kind of deals work, brother.

Yeah, crazy, huh?

Yeah, yeah. It's the opposite over here where rents are high but it's so expensive to buy because the houses are high. Over there, I guess the opposite, because you're gonna justify it. That's, that's tricky.

Yeah, yeah. Like, uh, prices are high, rents aren't that high. Like, it depends if you were to get like a fourplex or something. But anyway, very interesting, uh, how this stuff plays out. And this is important to know, this strategy. But again, the— I think the way we could potentially make that work is like maybe the guy wasn't— he didn't want, um, it's a lot of equity. Yeah, like maybe he doesn't want a lot of equity or cash, or maybe he doesn't— we don't have to pay interest at all. You know, and he just wants, hey, like, pay me overtime.

Yeah, that's honestly— that, that would be my question too, because that, that's always hard to say, which is why it's like you try to get an idea of what number they want and try to work with them. But a lot of times when they're throwing out like 5%, like, it's like they kind of don't know what they're talking about, and it's a tough conversation to have when they're already coming with that, and now you gotta like educate them. Uh, but yeah. That could be my own bias.

No, I agree. I agree with you. But yeah, maybe that's a good place to say, say, how much— what would a monthly payment would he want, you know? And if it's like, hey, we can't— yeah, figure out how we can make that happen. That's a great— that's a great point, bro. Instead of me running all these numbers, maybe I should just be like, hey, you know, knowing that I'm going to buy this and I'm going to use it as a rental, you know, what— what payment would he— he'd be down for? And if I pay him out completely, like in 10 years, So anyway, everybody, I hope that information was helpful. We're just working and showing you how we can use Privy, how you break deals down. And David, give me some feedback. What did you think about how we used Privy and what we just did?

Yeah, man, I love Privy. I've loved Privy for, I would guess, 2 years now. I've been using it. It turned into my favorite comping tool, especially because I was doing multiple markets all over. And I liked how you could see the pictures. Me visually, I like kind of hovering over it and seeing it because sometimes— and not to like hate on other things like PropStream or whatever, but like it might be a 3/1 that's 1,200 square feet, but now that's a ranch and that's a, oh, a split and it's not a comp. It's brick, then now it's not a comp. So me visually, that's a win right there, first of all, for Privy. Like that's why I started using it. And now that we can get the data in with the MLS, and then you can filter it by like— I've been going low just to like, it's like even 75, 60% just to see and experiment and play with it. And then you have the finding buyers side. So I mean, yeah, that's what I love about it too, finding buyers. And they're on there. It's, it's almost kind of unbelievable, like what we're coming out with now. It's like, oh, you need a buyer, like circle this area. Hit that button. Oh, call them. Yeah, that's what you do.

That's it. And guys, for everybody that's watching this, just know that this is, this is what you do. You— I think we called on 3 properties and 3 of them were like, hey, we just accepted an offer, right? So it's— and those, I wouldn't even say give up on those. Every— everybody, hey, look, we follow up and we, we stay in their ear. And again, when you're making these offers, just know that You're not— these are calls that I made. This is the first contact I have with these people. Imagine if they keep hearing from me. Imagine if every listing I call and then they're like, oh, what's up, Nathan? Or, hey, what's going on? Then they think about you. Then you get pocket listings. Then they say, hey, man, I got something that I think you might be interested in. That's the relationships you want. Because agents, if you get tied with agents, they'll send you more and more stuff. The one we just looked at right there, David, was from an agent that said, hey, check this out. I didn't look it up, didn't even think about it, didn't even know about it. She sent it to me. So everybody find that. That's encouraging. The more you're in that game, like that one dude we talked about for 20 years, dude, the longer that dude's been in the game, I'm sure he just, he's just getting deals and deals and deals. So let everyone know what you're doing. Let them know you're an investor. Let them know you're in real estate and it just compounds.

Okay.

100%.

All right, everybody have a great weekend. And in our Facebook group, Painless Flipping, if you go there, we got some awesome tools for you to get investing and we show you a little bit more learn how to use Privy. Nathan Payne that I work with, he's got a 30-day challenge where he went and got a deal within 30 days using Privy and nothing else. Okay, so in a new market, all that. So you can check it out. Everyone have a great weekend and see you in the Facebook group if you want, and get Privy if you don't have it. Peace out.