How to Close Deals by Offering Creative Solutions 🏠

It's nice meeting both of you. Really, the reason why I like to hop on calls like this where we can meet face to face is because you probably— you're getting tons and tons of calls. Sounds like you're getting a lot of people that are saying they can do certain things and they're not, they're not able to complete. And I know that can be really frustrating. So I'd like to just introduce myself so you know you're dealing with a real person, like an investor, right? So I was talking to John and remind me your name one more time, ma'am.

Vim.

Okay, Vim, is that correct?

Yes.

So Vim and John, there's a couple options that you have to sell your house. You already know that, but I'm assuming that most of the investors that have been talking to you are all just trying to lowball you. They're trying to just get the property at like a really low price when they're offering cash. Has that been the case or not? Not really.

Yeah, I mean, there's two that's offered I haven't heard much back from them. And then the one that gives me what I want, they're trying to— I got him to come up on the price. Excuse me, my voice has been real raspy on this one.

It's okay.

I think what they're doing, they're saying, uh, back up at the title company they use. And then, then he comes back and says, well, we were supposed to cover all closing costs, but we found that the closing costs, they're a little— cost a little more. And so I think they're trying to like, you know, get that little $15,000 I got back out of them.

I can tell you exactly what they're doing. Cause I've been in this business for a long time and I'm extremely transparent with what, how the real estate industry is right now. Okay. So I'm going to give you, I'm going to give you all the information you need. Hopefully we can work together at the end of this. And if not, it's okay. At least I was able to give you some good info.

All right.

So John, what they're doing, and this is, this is a term it's called wholesaling, wholesaling real estate. Have you ever heard of that?

No.

Okay. So what wholesaling real estate is, uh, them and John is I'm a buyer and I go to you and I say, I'll give you $275,000. And you say, okay, great. Thanks. And then I go out and I go look for someone who I can assign my contract to or sell my contract to, to make a fee. That's exactly what they're doing. That's what's happening right now. These guys told you they could do a price without knowing they could really do it. They're looking and they probably found someone that would do it at the price, but they're too high. So they're saying, hey, John, I need you lower so we can get this done because they want to make a margin. But that's going to bring you lower than where you want to be. Right.

Yeah.

And I do that strategy sometimes, but I tell people.

Try to bullshit you, you know, just, you know, it's like they're trying to trick you, you know? And it's like, yeah, you know what's going on.

So there's no reason to lie about it or be shady. These guys are just trying to make some money and they're not buying the house. Okay. Now there's a couple options that I have. I work for a lot of hedge funds throughout the United States. I have a lot of good buyers. One of the options that I have is I can do what they do and reach out to my buyers and say, hey, what are you willing to pay? Let me see if it works for John. And if it does, then I will just have a little bit of my fee. You don't pay me anything, they pay me, and I bring them to the deal. That's me being transparent about what they're doing.

That's an option, bringing an investor in.

I'm bringing an investor in, that's, that's all I'm doing. So that's one option. Now, the investors that I work with, they still want— they're investors, so they're looking to buy it at a discount still and then make a return on their money. Now, that might not be the best option for you because I know you're trying to make at least $50,000 on top of what you owe.

Yeah, I have to have that.

Yeah. So I know from looking at the numbers, I'm going to kind of show you guys how the numbers work on real estate investing properties. I'm going to share my screen. This might be a little small on your phone, but let me know if you can see this. Can you see the numbers here? Is it pretty small? Yes. Okay. So you all can see this, correct? Yep.

Okay.

So I'm going to walk you through how an investor see a cash buyer, the ones that you've been talking to, how they analyze a deal to make sure they want to buy it. Okay. I did the research on the property and I think if we were to fix the house up and make it look pretty nice, it could be worth $350,000. Does that sound fair? Yeah.

And it was worth $375,000 like a year or so ago. Right.

So it's, it's all gone down a little bit since interest rates have gone up. So I'm saying the house is worth about $350,000. Yeah. So I'm going to show you your asking price for the property for cash out the door so we can close ASAP is $275,000. So I got your what it's worth if we fix it up, and $275,000 is what you're asking for. Most buyers that I work with have— they borrow hard money. They borrow money from a private lender, and they have to pay interest and points, and they have to hold the money for a certain amount of time while they're fixing the house. It's called hold time. Your house, I was looking at it in the background. It looks like it's in pretty decent shape. Doesn't look like there's that much work that needs to be done.

Painting, maybe two doors painting.

Okay, so I think if we're generous, if we just conservative, we can say by buying your house, you move out, paint, carpet, doing some of the finishes, and then listing it, it could take about 4 months to do the whole process. Does that sound fair?

I think— I mean, I don't know. I think it'd be done sooner because within the next 2 weeks there's going to be some things done. You know, the finishing on the back porch, we got to put the door back on. I mean, there's a lot of little things.

Are you going to do that? Because I would recommend you don't do that if you, if you don't need— I would say don't do it.

Okay.

Save your money. So let's say 4 months. Now, a flipper, they're going to have to pay all this money and holding costs. Then they have to relist the property with a real estate agent. They pay 3% to the listing agent and 3% to the buyer. So that's 6%. And they have closing costs. That's the money that the flipper—

I know.

Sorry, go ahead.

Yeah, I know. That's what's killing me.

I know. So what's killing you will also kill, potentially kill a flipper if they don't get it at the right price. So we're going to say to do cosmetic repairs, and carpet, paint, a door. We're going to go with a basic rehab. So we're going to take the square footage times $18 per square foot, and we're just going to say it's going to cost about $27,000 because that's what it is. So yeah, that's why we're having this discussion. $27,000 is the, the average of a basic $8 per square foot.

Go ahead.

What do you guys feel like it would, it would cost to update your home to get it to that $350,000 level? Well, I'm curious what you think.

I know that a year ago There wasn't as much done year and a half, and it was almost up to $375,000. You're in Southwest Florida, it's the fastest growing place in the nation.

Yeah, but back then there was no inspector.

What did it— you get all these rich people that come down here that don't give a shit about money and they don't have a house. That's why we don't have state taxes. That's why, you know, Naples is Naples. The point being is you get them in a little bit of a bidding war and your $300,000 home just got sold for $375,000. Now, yes, that's a risk. That's a gamble, but that's what stocks and that's what, you know, when you start talking hedge funds and stuff, all I know is I think with minor paint, you get a painter in here for $2,500. Okay. Paint the entire house. That'll be done. So then what else needs to be done? Everything taken out, all the floors.

Painting, it costs $10,000 when you do that in that one. Remember?

No.

Yes.

No.

What?

It was $8,000.

Yeah, but that was different. They did screen and everything else.

They did take everything out. So overall, he's right. It's going to cost $20,000 to do a cosmetic So we don't have to come down to like an exact number.

I'm just giving you— showing you kind of how flippers work and why everyone's lowballing you.

It might, uh, $20,000.

I mean, I worked in construction for 15 years.

Yeah, but it's, uh, he never did shit about construction.

So I mean, you could come in here— if you come in here with a cleaning crew and totally wipe this fucking place down, you could probably put in $10,000 and sell it for $350,000 easy. So a little, a little more than maybe throw $5,000 in landscaping. I've already looked into doing all this. That was our thing. We was going to be here for 30 years. We're getting divorced and you can see the bickering starting.

You were going to flip it. I get it. You were going to make it.

We were going to live here for 30 years and then sell it and then buy, you know, build another place and a place in the Philippines. But, you know, again, this is just my numbers is what we owe on it. And I've spent my basically my entire savings and everything on it. If I can't get $50,000 out, I'll just rent it, lease it and make $500 a month off of it for the next 5 years until I do sell it.

John, me and you are on the same page. Same team. I'm just kind of showing you why.

Yeah.

So let's just say, let's just go with $20,000. All right. We're not going to say, we're not going to say $27,000. We'll say $20,000. All right. So looking at it, if you can resell this house for $350,000 and you, I buy it from you at $275,000, have all my hard money costs and my repairs, I'm going to make $13,000. Now that's, that's a 4% return on my investment. Most investors will not do that. They want to be in the 15 to 20 because of the way the economy is going. They want to make sure they're making a good return on their money. That's why these guys that have been messing with you, because they're getting lower offers now.

Well, another thing is they don't live here. They don't know the neighborhood. They don't know how desirable it is. This is one of the most desirable neighborhoods around. And then, like I said, this place is growing like crazy. And if you walked and you knew that the people, the neighbors, the kids, you know, you look around, I know that doesn't put value on the house, but that puts value on quality of life. And that's like I said, you know, I get it.

I know it's a nice area. I love Florida. I just was just there. But I'm letting you know, for it to make sense for a flipper, most of the offers, they want to get in the green. So what—

that's the cash investors, right?

Right. This is cash. So I'm telling you right now that cash is probably off the table for you because it's just not— no one's going to get you the number you need for someone to get into the green for their investment to make sense for the buy. Even if it was like a $10,000 rehab, they're going to be around like $240,000. And $240,000 is only getting you about $15,000. What is that? That's getting you $15,000 to walk away.

Yeah, I can't walk away with that.

I agree. I don't think you— I don't think you need to.

I mean, Like I said, we could, if we had to, we could rent it for the next 2 years and sell it for probably $350,000. Just exactly how it is.

Exactly. So let me ask you this. Is renting now, now that you're saying— I'm not telling you this is my offer. I'm just showing you the math that most investors are looking at, knowing that this is where most people are going to be. And I'm sure you've gotten some offers around here. Is renting— do you guys want to rent it and not— you're not going to accept this. So is renting like really what you're going to do?

If I have to.

Okay. So you say have to. So you obviously know there's some other options on the table than cash. Right?

Yeah, of course.

The other options that I have as a company that I can provide you with are these, okay? There's two ways that I can get you your price that you want. Cash is off the table. It's not going to get what you want. I can only do $240,000, and most investors are going to be there. You've told me that you wanted to renovate and resell it, but you don't have the time, right? First of all, it's going to take 4 or 5 months to get it done and sell it. And I'm assuming you don't want to put $20,000 into it or $10,000 or $15,000 or even—

We don't have it. We're out of money.

So renovating is out of the question. So that leaves two options that I can help you out with. There's two things. The market right now, I would be able to put this on the MLS for you guys. I can put— I can list this on the market and look for a buyer that would be willing to flip this with me. And because the MLS, it's going to be able to get more eyes on this property, more attention. And then I look for a buyer that I can work with to buy your home and flip it. That's what I do. I take this to the open market. I pay all the agent realtor fees, the commissions. I take care of everything. Even if there's additional repairs that someone comes in and says, hey, this looks like it needs to be fixed up, I'll take care of that. I actually, I take care of everything. I'm different than a real estate agent. A real estate agent is just going to list your home and have a bunch of people walk through. I'm specifically looking for a buyer to partner with, and I will pay the fees if they see anything specific need to be done, and you will not have to pay commissions or fees to an agent. So that's what I do for a lot of people. I'm doing it in Texas. I work with people all over the country, and that way I can pay you more because I'm going to find a buyer to partner with using the MLS. And that way we can offer you a higher price than the $240,000 cash. That's because that's not going to work for you. If that's not something you're interested in and you just want to list it with an agent, that's okay. Agent, you're going to pay the commissions and the fees and have to communicate with them. My way is you don't have to worry about anything. And I'm just going to say, I'm going to come to you and say, hey, we're closing. I got everything taken care of. This is the price and we'll get it done. Do you have any questions about that strategy that I just explained?

Um, I understand it. I don't have questions.

Okay.

Now that's— You can send us an email. I just read through some things.

Okay. But that's not the only one. Can I, can I tell you about the other option? Okay. The other option is I basically give you a certain amount of money down. I get you your equity out and I just take over the mortgage payment. I take over the property and I give you your asking price. So that's called an owner carryback or a subject to where I just give you your equity and then I take over the property. So really that strategy really depends on what your payment is every week or every month and what your interest rate is. What is your monthly mortgage payment, by the way?

We pay biweekly $1,800, biweekly $900. Biweekly $900. So it's $1,800 a little extra, I think. But it went up because our, our $1,800 insurance doubled and then, yeah, insurance doubled down here.

$1,800, right?

Yeah.

Okay. Now, if we did something like that, I would obviously— it'd have to be an investment where I make a return because I might—

2.75% annual. I believe.

Oh, your interest rate?

Yeah, it's under 3.

Your payment shouldn't be that high, I don't think, if it— if you owe $225.

Most of it was because the insurance doubled. It added like another $100. But if we pay a little— we've always paid a little, like, we rounded up, like, you know, $50, and then we pay biweekly to, you know, get that extra payment.

Okay, so would that be like—

the actual is what, $1,700-something? Is that what it is? I don't know the actual. Our property taxes aren't bad. They're only like $1,400.

Could you text me or email me, um, your mortgage statement so I could take a look at it and see if that would be something we could do where we could just get you your equity or close to it. And then, um, just take over the property.

I mean, yeah, I can, I can tell you what the equity is there, but I can get in there and, uh, everything on the website.

Okay. Yeah. If you could text me like a screenshot of that, that would be an option. So those are the two options that I have for you that I think to cut off. Yeah. I think, I think that would be a decent option.

Cause I, it would be able to get you your money fast and you're going to just fix it up and then you're going to sell it.

So on this property, I I would actually just keep it as an Airbnb or a rental.

That's a good idea. Yeah, I would just take it. I'm thinking about that in Manila. I think I'm going to get one there right to Manny Long and then Airbnb it.

But the thing that would have to make sense on this, John and V, is it would have to make sense as an investment where I can cash flow and I can rent this out for more than mortgage payment.

Yeah, they say Zillow recommends between like, well, it's been anywhere between $2,000 and $2,500 a month. Right. You know, a small family or something. That's what nobody's buying down here right now other than the rich people, because rent has shot out the roof. But then there's nowhere to rent.

Exactly.

We had a lady tell us, yeah, her budget was $2,250. I mean, she was ready to go.

Let me ask you a question really quick. I'm curious about the full service program where we put it on the market to find a buyer. We're able to pay you more and we take care of the commissions, fees, and everything, and it would get you a higher price. Is that even appealing at all or not really?

The last two options sound the best. Okay. Can you email some information where we can sit down and actually read it and talk amongst me and her?

Of course.

I like the idea of the cash-out equity.

And then we just take over the payments.

Look at the numbers and then, oh, okay. You know, you have to make money. Well, just because like, like a bank, most banks only loan you 80% or, you know, a percent of equity. So then that's where you're going to make some of your money as well. I'm going to assume, you know, that's where we're bargaining and going, okay, if we have $200,000 in equity, well, we need to bring it down to, you know, $150,000 or, you know, Exactly.

Exactly right. Yeah. So you scratch your back, you scratch my back, I scratch your back.

Yeah.

As long as it cash flows for me, if I'm able to make a decent amount of money, like, for example, if your mortgage is $1,700 and I can make at least $500 to $600 cash flow, then that usually makes sense. But again, I have to run your numbers and look at your mortgage statement. So give me your—

that was on a 15-year loan. So we're down. We've had it for 2. So that's on a 13-year loan.

Oh, okay. So that's why it's a little bit higher because on a 30-year—

we got, we got what it is. We refinance, paid stuff off, and then interest rates really plummeted. So I got the good interest rate.

Got it. Okay. It's on a 15-year. That makes complete sense. What is your email, John?

My name, John McCurdy, M-C-C-U-R-D as in David, Y-F-L as in Florida.

Okay.

At yahoo.com.

Yahoo.com. And what was your email?

Mine is Lady V as in Victor, G as in goat, letter E as in Echo, @aol.com.

So what I'm going to do is I'm going to send you a screenshot of this, of the options that I have available for you. I'm going to send this so you can read over it and see what you're, you know, what you think. It explains what we do on each of these so you understand like the terms and everything. This is not obviously not the last conversation I want to have with you. I think you know, if you want to feel comfortable working with me, we're probably gonna have to talk again a couple times.

Oh, sure.

But, uh, tell me how you guys feel right now. I know you've talked to a lot of investors. Do you, do you feel like I'm a trustworthy guy? Do you feel like you'd want to work with me if we can work something out? I like to gauge where you're at.

Yeah, I mean, you seem like a decent guy. You've given many options, and so that's, that's a good thing. Where usually you only have, you know, 2 options at best, maybe 3, or, you know, you got the one option— either sell it to an investor or sell it to whatever. So, um, at least giving us something to look at, you know, on paper, because, you know, you, you talk to me all day about it, but until I can see it on paper and look at it, you know, it becomes a little more real. That's just like, that's what your goals— they say if you don't write your goals down on paper, well, then they're not real. You know, it's a wish.

It's just a wish, right?

So this will give us, you know, we can sit and pour over it this evening. Um, our only other option is the one seller, but, um, he tried to bring us back down. I haven't talked to the other guy in probably 3 days. She has one agent that she likes. That basically they can list it internationally. So a lot of Europeans come here, and if they don't sell it within the allotted time frame of 3 months, they'll buy it.

Okay. And by the way, usually when they say they'll buy it, that means they'll buy it at the price, right?

But that'll be predetermined, you know, in the contract. We will be able to get to it tonight and call you in the morning. And then where are you right now?

I live currently— my home base is Salt Lake City, Utah. That's where I am.

Okay, so you're 3 hours behind Yeah.

Yeah. So right now it is, uh, 3:30 midnight, 9 o'clock.

Yeah.

You can call me or you can text. I think you got my text, right? I sent you a text and you got it.

Yes.

You can text me. Um, we can do a group chat if you guys need to, but, uh, just know, I'm just letting you know upfront, if it doesn't work out where you go somewhere else, no hard feelings, but I think either option, whether it's the creative where we take over the payment and get you, cut you the equity, or we list it and we don't have to pay any fees. I think that's going to get you the quickest and the fastest offer and get you the highest price. Forget the cash. It's not going to work.

We're just trying to get— it does. It's not a burden, but it's just too much. And my mom's dying and we're going through a divorce. She's staying with my mom as she's elderly and she helps her while I'm out here and I'm trying to get things right. And we're just, we're just ready to, you know, move on.

I get it.

You know, it's because we're driving back and forth, you know, 50, you know, it's a 100-mile trip, 50 miles each way daily. And we're trying to get things boxed and, you know, moved out. And it's just, it's starting to get stressful. And so we're trying to, you know, get it done. We do have a, we do have a guy that rented a room from us. Of course, if things move good through, I'm sure everybody, you know, there'll be a nice timeframe for him to get things together, but I've offered him assistance, you know, as well, getting him out.

But either one of those options, we close on your timeframe. So if you guys need some extra time, that's totally fine. Anything you, with the both options as well.

Possible. Yeah.

And by the way, anything you leave behind with those two options as well is fine because we're going to have to go in there and fix it up anyway with any either of these options. So there's, there's some homework for you really quick though. If you decide you want to work with me, just, I just need some pictures of the house and like a video walkthrough. If you can send that to me, text it to me.

She was getting to the pictures and I've been cleaning the last couple of days. Let me get it. Like I got my weight bench and some weights sitting in the middle of the living room. I'll move that out, you know what I mean? And probably pull out at least so you can see it a little more. Okay, yeah, that's no problem.

Yeah, if you can get me that stuff and you say, hey, let's go for it, I'll write up the paperwork on Monday, have you sign it, and then we'll start moving towards, uh, you know, the close.

All right, all right.

Any other questions for, for me there? You—

oh, it's from the boxes. I mean, we got big boxes that we send to the Philippines. I mean, everything's kind of, you know, A little disarray, but let me get them all straightened up. And if anything, stack the boxes, you know, to the side so you can see everything.

Don't worry. A lot of people send me pictures where they're moving. It doesn't affect what we're able to offer or anything. We just kind of need to see the general condition of the property.

Yeah. That's how, that's the best way to do it. It's in good condition. Everything, everything.

You want to see it? I can, I can walk through it.

The video quality, just because we're on a Zoom, it's not coming in super clear. So just take a video with me for, for me on your phone and pictures, and I think we'll be okay if you could just do that.

Send me the pictures and then we'll get the laundry table thing open.

Okay. Didn't I send a picture earlier?

No, I didn't get any pictures. I'll text, I'll text to John again, just so you have my number. And, um, I'll email both of you this, the spreadsheet that I was showing you, and then you can send me what you need. Okay.

All right.

Okay.

Do you want to make you a list of everything that's been new within the last 5 years?

Yeah, that'd be great too if you could write that out. As much information is helpful to me because guys, if we do the cash flow, if we, if we do the, the rental, I'm still going to need to bring a partner involved.

Just to be transparent. You'll rent this no problem and bring in at least $500. You could bring in $500 a month in cash flow at that price.

Well, hey, I appreciate both of your time. Have a great Friday and look forward to working with you.

Have a good night, guys.

We'll let you know.

See ya! Bye-bye!