How to comp a deal & then sell it to a cash buyer- Investor Thrive Live

What is going on everybody? This is the weekly Investor Thrive live call that we do every week with Batch Leads to show you guys how to get deals and how to crush it. Cause our goal is for you guys to win. That's what we want. And I got here, I got my man Sean Young and David, The Truth Lamorte. How you doing guys? What's up? What's up?

What's up?

Doing great, man.

Good, good. So everybody, if you guys don't know who Sean and David are, I work with David and Sean, me and him work together as well. He's got a VA company. So how about you guys introduce yourselves and let's go right into how to comp deals and find cash buyers for those deals. Go ahead, Sean.

Hey guys, let's do it. Sean Young, based here in Atlanta, Georgia, investor. Been doing this since 2016. Own a virtual assistant company, help clients all over the country crush it, scale their businesses up. That's me.

Beautiful, beautiful. Love it.

Yeah, man. David Lamorte, based out of Long Island, New York, doing deals out here. Bring them to me. My number's here to make sure you know to bring them to me. Fixing, flipping out here. I also have some buyers who buy and hold out here that we're assigning to, both off-market and on-market. We're working. We do some deals in other states as well, but that's my main focus right now, as well as, you know, some Florida markets, Orlando and Tampa, with Nate.

Love it. Yeah, man, you guys are both taking action. And guys, that's what it takes to do deals and be consistent in this business. You got to take action, and that's what we're doing, and we want you guys to do the same. We got a guy on Facebook, user, saying, 'Ye.' Oh yes, there you go, he forgot the S. All right, I like E too, E's good. So, um, today guys, what we're going to be talking about is how to, uh, find cash buyers for your deals, right? Because it's important if you find a deal, you got to find a cash buyer. And what I teach, the painless flipping method, is to find cash buyers first. So I'm going to kind of take you guys through a timeline of how this works, and I'm going to talk to you guys about what if you don't find find a cash buyer? What, what if you can't find someone in the beginning? You know, like I tell everyone to network, but sometimes you, you get a deal that's in an area that you don't have a cash buyer. How can you use batch leads to find that buyer? Let's go, let's check it out. So, uh, first of all, this is the Painless Flipping timeline that I'm going to explain to you guys. Uh, you want to start out, you want to pick one market. David, he's in New York primarily, and I think, uh, Sean, you're in Atlanta, right?

I'm in Atlanta.

Okay. And I'm in Orlando. I am in Utah. I'm in two. But, you know, first you want to get started in one so you're not going all over the place and just scrambling. All right. So when you pick your market, you want to find buyers. But where do you find buyers? That's a big question that people have, right? What I like to do— there's a lot of different ways you can use batch leads, you can pull lists. But the thing I like to do that's quick and, you know, gives you a warm handoff to these buyers is title companies, hard money lenders, and real estate agents. If you can develop those relationships with those people, ask them who's buying. They will give you— they will hand you off to buyers and you can say, hey, buyer, hey, John, my name is Nathan. I got referred to you by Christina at GT Title. I was wondering if you know what you're looking for. I was wondering if I could network with you. The next step is you want to find out what they're buying, right? And then, you know, you can go and focus your outbound marketing on batch leads. You can focus searching for deals in that specific area. Okay, so let me give you an example. I have a virtual assistant named Zeeshan, and I said, hey Zeeshan, we have buyers in Atlanta for you, hedge funds that buy this criteria, and they buy this, and this is where they want, right, in this specific area, for example. So he found out their criteria, and then it was time for him to search deals. Okay, there's a couple ways to search deals. You can look at other wholesalers' deals, you can network with wholesalers, they always have deals that they need to move. Especially these bigger companies that have multiple deals every month that, you know, they're not able to sell all of them. You can check online platforms and you can network with real estate agents. And because Batch has a new agent directory, you can network with agents. So you found your buyer, you found their criteria, now you're looking and you don't necessarily need to go do outbound marketing immediately. You can do what's on market and, uh, you know, not do off market as immediately. So then once you find a deal, it's time to analyze that deal. So that's where we're going to start right now, guys. I have a deal that Zeeshan brought me. He found it, um, in— so let me stop sharing my screen. Let's see. So he found it, if you guys can see my screen right here, this is in— I think it's Lafayette. Um, is that what— how you say it? Lafayette in Georgia? Uh, Sean? Yeah, I know you know about that area. So he found this deal, um, and he reached out before he had it under contract. He reached out to the hedge fund and he got a pre-offer from them. He said, hey, I'm negotiating with this seller, what would you be willing to offer? So they offered $253,000 pre-offer, pre-inspection offer, and he got it for $240,000. Okay, so does that make sense? So he kind of got a pre-offer before even signing the paperwork. And now what I'm doing is We're going to go look for a buyer for this deal. I'm going to run the numbers really quick and make sure it makes sense. And we're going to look for a buyer using batch leads because he has a buyer, but we don't want to just leave it up to one hedge fund saying yes or no or coming back and coming in lower. We want to be able to have more buyers. Okay, so this is, this is good for everyone that's watching this because you guys can see, say, okay, I have a deal, whether I got from another wholesaler, I got it from my own marketing. Whatever. What do I do now? I don't have a buyer. Okay, I didn't do the, the beginning part Nate said. Well, let's— let me show you how to do this. Um, let me get my screen. Do you, Sean, do you want to add anything? David, do you want to add anything?

No, you're good.

Yeah, and the only thing I always add is that this is the two-prong approach, right? Either you, you have buyers that you want to bring them to, or if not, you end up— there's the endless debate of finding the buyer, but like Nathan said at the beginning, most important thing is taking action.

That's it. That's it. Oh yeah, we got my man, call Sean, Sean Hayes. This is my boy from Georgia. Oh, you want to walk the property, bro? You want to bring some buyers by? Come on, go ahead. Let's see. And then we got— sorry, Nate, I didn't really just speak his name with Sean. He lives in Atlanta. Hey, man, I'm sure Sean doesn't matter.

Indeed, indeed.

But yeah, this is my boy, Sean Hayes. You guys should network, Sean Young.

Let's network, brother. Let's network.

Yes, yes, yes. All right, all right. So let's take a look at this. So we have the deal. Now, the first thing that I do, David and Sean, is I got to make sure that it's actually a deal. I don't want to have Z Sean say, hey man, I got this deal. He had the hedge fund check, so I feel pretty confident, but I first want to check. So it's, it's find the deal. It's obviously notes in the criteria where you have buyers or it's a good area, and then it's analyze it. Okay. And this is the, this is a hard money, a hard money lender gave me this calculator and I built on it over the years to make it, you you know, everything that I needed to do. So let's analyze this deal. If you look back, I know it's kind of hard to see. I can't show you guys on YouTube Batch Leads because it will like kick us out because of the information it shows. But I'm seeing that there's a lot of houses that have sold and that are for sale in this area around the $400,000 to $450,000 range. Okay, so if I wanted to, I could click on any of these properties right here and I can take a look at the picture and see the condition that the house is in to see if it was a flip or not. Okay, so if a house isn't in a flip, like if it looks like it's been flipped, I'm going to say, okay, that's a good ARV. Even if it hasn't sold yet, I'm going to say, okay, that's a good indicator, right? So let's go here. Let's just be, um, you know, conservative. Let's say $415,000. Okay, is the ARV. That's what the house will sell for if I fix it up. Now he negotiated the deal to $240,000. Okay, this house needs a lot of work, uh, but so we're gonna go here. Then you have the hard money. Actually, I'm gonna switch to a different tab, one second, because this is just for flipping. I'm gonna do the wholesale analysis so you guys can see what it would look like if you wholesaled it. So he got it for $240,000 and If we wholesale to a cash buyer, they're going to get hard money. And like 99% of investors get hard money. So you have 12%, 2 points. That's what you got to pay the hard money lender for borrowing his money, about $2,000 a month. You bring 15% down, you hold this house for about 6 months because you got to fix it up. Might take 4 and might take 2 months to rehab it. I'm sorry, not rehab it, but sell it on the MLS. And then you have your closing costs, right? So this house, I think it's probably going to need, because I've ran the numbers, probably going to need about $60,000 of work. That's what the hedge fund said. They're like, you know, about $60K. What's going on? How are you? And then we are going to wholesale this deal to them for about what I think they said they would buy it about $253,000. So that would mean if we got it to $240,000, we'd make $13,000 on the wholesale fee. So that's a good deal, right? That's a 16% return if the house is worth $415,000. Now, if it's not worth $415,000, it's worth less, then it's not as good of a deal. And if it's worth more, then it's a great deal. So you're looking at this and you're like, that's a good deal, right? I would definitely do this. And that's how I determine if something is worth my time to work and find a buyer for right now. If it gets down to like 10%, like if I'm over here at— I get it $260. Let's see and it's at like— now we're getting kind of iffy because buyers, they want to make sure they want to be at least above 10% return on their money, right? Does that make sense to you guys? I know you guys get it but you know, you guys got to give me the feedback. We got someone saying, I like this calculator.

Me too.

Yeah, it's a good one. It's a good one. So we get right here and we say, okay, hey, cool, we got— we analyzed the deal. Now it's time for me to look because it's worth my time. Now, what happens if we do this deal and we run the numbers and it's like we agree to $300,000? Then we would see, oh dang, this is not a good deal. This is not worth my time to work. I need to go back and renegotiate with the seller or the wholesaler, the agent, before I do some work, because there's really no point because there's such a big difference in the spread, right? So if you guys run your numbers and you see that there's that big of a difference, then again, go back and renegotiate. Don't waste your time. So now that we have analyzed the deal to make sure it's worth it, what I do is on batch leads, right? And you can do this on Zillow too if you don't have Batch, but I'd recommend getting Batch. You can go to properties in the area that are currently listed for sale that look like they've been flipped. And then you can go and call the real estate agent that is listing that, or you can skip trace the LLC. You can go to OpenCorporates, find out who owns it, and then skip trace to find the information of the owner. And you can call them and say, hey, I got a property right around the corner. Are you looking to buy more in that area? Right? Simple as that. So we have, uh, these properties that are listed for sale around here. So I can just click on one, and, uh, that one looks like it's been flipped. I wish we could get a little closer. Uh, let me see if I can bring this thing a little closer. Oh, there you go. Okay, that might be a little easier. See, can you guys see that? Um, this house— let's see, actually I can get it on a different tab. This dang buyboard, dude, taking forever to load. Let's see. No, but you can definitely tell that this house is, uh, a flip, like 100%. Can you guys see that? Like, uh, really nice, well done.

Yeah, everything's white and gray.

Yep, let's take a— let me see if that'll work. Okay, there you go. Boom, boom. Looks like it's got like a little casita in the back.

Okay, nice property.

Yeah, it's cool. It's one of those colonial style— colonial style. I like that style.

Nice colonialism.

Okay, so the house has been flipped, right? So what do I do now? I would go to the information on the MLS right here, and I would contact the real estate agent, or I would contact the buyer, right? I would look who bought it and then skip trace the LLC. And it says that the owner type is company owned. It's 20 Real Estate Consulting. That's the LLC. So again, I could do the legwork and find out who bought it and call them directly, or I can just go find the agent that listed it, and the agent's name is Apria M. Brown, and they work at Keller Williams. Okay, so let's, let's go ahead, let's do the whole process. Um, so Apria Brown, Keller Williams, see if we can get their information. Okay, that's the phone number, so I'm gonna call her, um, and we're gonna see if, uh, she answers or they answer, and, um, we're gonna see if they, they're looking for any more deals. Uh, okay, let me see.

So, sorry, guys, as you can see, this is just action taken. This is just taking action, going one step at a time, discovering what you need to discover to get you to the next step. A lot of times people get hung up because they're thinking a little too far in advance, like, man, how can I You know, yeah, this is how you get a hold of them. You track it down step by step.

That's right.

Were you going to say something, David?

Uh, yeah, I was just, uh, yeah, but we went through.

We keep on. Oh, go ahead, bro. You got it. No worries. What you got?

Um, I was saying how basically, well, first I was curious if that was the agent or the buyer that were reached out. That's the agent.

Yeah, yeah, because I could go ahead and skip trace, uh, the buyer, but it— you got to do a little bit of research. So just for the sake of this call, I'm just going to call the agent. No, not the agent. Yeah, the real estate agent, right?

Yeah, the listing agent.

Yeah, the listing agent. Okay, so let's see. In order for it to sound on my computer, I have to do a couple things, so give me a second. Let's see, window. There, here it is. Perfect. Okay, let's call. Let's see if, uh, let's see if Apria answers. And the thing, guys, is a lot of times they don't answer the first call. That's why I call multiple times. Hi, is this Aprilia? Hi Aprilia, how you doing? My name's Nathan Payne. How's it going today? Hey, I was calling about your property that you have listed on 150 Inglewood Drive. Is that still listed and available? Okay, well, I wanted to ask you a question. I'm actually from Salt Lake City, Utah. I'm an investor and I come across properties Sometimes in the Atlanta area, some work in a couple different markets. And when a property doesn't work for me, I look to wholesale it. I was wondering if you've ever worked with wholesalers and if this buyer that you're representing is looking for their next flip. Yeah, of course. Well, I guess the reason I'm calling you— oh, I'm sorry, go ahead. I didn't mean to interrupt you. Oh, I was just saying that the reason I'm calling you is because I see that you work in that area where I have a property under contract right now, and I was wondering if you'd be interested in working with me to bring it to some of your buyers, and I can pay you a commission if you help me, you know, sell it. Okay, it definitely is just a numbers game. What do you usually negotiate or work out with wholesalers when you bring a buyer to a property they have? Like, what's your fee? Okay. Okay. No, I get that. Yeah, if you were to list this thing on the market, I totally get a 3%. Usually what we pay is usually like if you were to show this to one of your buyers and you bring them to the deal and he wants to buy it, we usually pay like anywhere from like $2,000 to $5,000 depending on the amount of work that it takes.— but would that be okay if we were able to do something like that? If you were to bring a buyer to this deal that he wants to flip it? Okay. All right, April. Well, what's the best way to get you this information about this deal? Is it to text you, to email you? Okay. All right. Well, also I'm just curious because I don't— you know, I like to set the expectations. When do you think you'd be able to get back to me? If I send it to you today on whether your buyer wants it or not. Okay. Yeah, all right, April, thank you. And by the way, just to let you know, this is a good deal. I already have a hedge fund that wants to buy it. So I think if your buyer is looking for more flips in the area, I think it would be a good one for him. Especially, I'm looking at the one he did, it looks really good. Alright, alright, April, you have a good day and we'll hopefully we can get— do a deal together. Yep. Bye. Alright, bam. That's it.

What do you guys think? Alright, we couldn't hear— we couldn't hear April, but we can hear you.

You couldn't hear her?

Yeah, I was trying to give you the signal, but—

oh my gosh, I'm so sorry, guys.

It's tricky with the CRM on the computer, probably.

Dang, that was a great call. She was like, yeah, that's fine. You can bring me a buyer. I wish you guys could have heard it because it was a good call.

You sounded great though, bro.

Yeah, you sounded great.

It was going well.

Indeed. Indeed. So basically she just said, yeah, text me information. I do work with wholesalers and yeah, commission. We kind of discussed the kind of a commission. She said 3%. I was like, yeah, 3%. We're not going to pay you 3% just to bring a buyer. I mean, maybe if you did more, but that's it, guys. And if I do this with enough properties around where I have and, you know, talk to enough agents or even just call the guy myself, we're going to get a lot of good buyers and information on whether I have the price at the good price, if this house just sucks and I just didn't know it because I'm not familiar with Lafayette. But that's kind of like the digging you got to do. And I promise you guys, if you do enough of these, every day, you're going to be able to sell deals because this is, this is how it's done. You either email blast, which half the time people don't respond anymore because deals suck, but if you call in individually, say, hey, I need you to look at this, when can you get back to me? And she said, I can get back to you later today. So you want to get that commitment so you're not waiting like a week, you know? Indeed.

Yeah, cool, cool.

Well, I hope that breakdown of showing you that, David and Sean, everybody watching, was worth it. It's really— it's not that difficult, right guys? Like you find a property and you got to call people and see if they want to buy it.

Yeah, that's great right there, especially with the new method that you're using. And if you can kind of sift through the deals that are available and then bring them to your buyer, I mean, painless.

Yeah, bro, it's painless. And the thing is, it's— you just have to analyze the deal. Like if you said— if someone sent me a deal in Kentucky right now, I could do this method, right? But the thing you want to do is you want to focus in an area. So when you are getting these like this agent, you can accumulate these people. So instead of having to do the process of looking, you can just send it out to the people that you've built the relationships with, and it's quicker. That's what you want, right? Absolutely.

And, and this deal started off with him, with his VA bringing it in. So if you guys missed it at the beginning, I do own and operate a virtual assistant company who are Batch Certified. They're Batch Certified, the only Batch Certified VAs in the industry. Our company is REI World Solutions, man. Use the discount code BATCH. Would love to help you guys out, work on deals just like Nathan's working on right now.

Dang, Batch Certified, bro. That's pretty powerful. Absolutely. Well, Sean, I know you got to bounce, right?

Yeah, I got another Zoom session coming up in 2 minutes.

Well, Sean, it was a pleasure having you. I think me and David might stay on a little bit more and answer some questions that come through. But Sean, always a pleasure. If you guys need a VA, you know who to reach out to. You got to hit up Sean and his website.

Say it again, Sean.

reiworldsolutions.com. Beautiful. REI World Solutions. Keep crushing it, gentlemen. Later, bro. Thank you. Um, and then I want to just add a couple more things and open it up to Q&A because that's why we're here, guys. We're here to answer questions, help you guys succeed. David, I know, you know, as you master this process What questions do you have? Like, where are you getting stuck?

So, um, and I'll just give you kind of this week because I had a— it was with an agent, not directly with a wholesaler, but, um, you know, working with what I have in the market since we don't have the Net Worth and, uh, New Western out here. Um, but basically I came across this agent who had, you know, 15 different things, um, did something similar or where I'm analyzing it. Um, and we've talked about this before, but it might be a good thing to bring up because I kind of experienced it again, is navigating, um, you know, you reach out to the agent, uh, versus reaching out to the seller. Um, or sometimes an agent brings you a bunch of stuff and technically maybe it's listed with another agent. So, and then I've seen that and they're cool. Like the agents are cool with each other, but sometimes when you make that call, not everybody's telling each other. So same, but it's a similar market possibility where he has 20 deals and I'm like, hey, what about this one? He's like, oh, actually I don't know much about that one. And in a way I'm like, okay, that's kind of good because that shows that I can come in and be that person in that market. Um, but yeah, so Maybe that was a long way about asking.

No, that's good, bro. So this is the deal. If you're looking at deals like this guy has and there's a bunch of opportunities, but he doesn't really even know the situation. It's— he's not really— I want to say there's— he's not providing a ton of value, right? Like if you were— if you brought me a deal and I was like, dude, I want this one, let's move forward. But you're like, I don't even know if it's still available, right? I would be like, well, that could be a waste of my time. So really, you got to have on this method, you got to be able to reach out to the person that has the deal or really understand or be talking to someone that knows what's going on. And that's— is that what you're saying the issue is?

Yeah, just looking at that is the, I guess, the comfortability with, you know, it's okay sometimes to— if the agent's not doing it, to reach out to the other agent or to reach out to the buyer. And my boy Kevin, I was on a Zoom with him last night. He, he had a similar experience where the agent, you know, multiple times was like, they don't want that offer. And then come to find out it was never even presented. Not to say that agents is doing that all day long, but, um, it is something that we kind of have to navigate. And, and, you know, I, I know a lot of people who first get into wholesaling, they're already kind of iffy with like, oh, I gotta reach out to people and like, I don't want to do anything shady or weird. Mm-hmm. But just to, you know, throw it out there, if somebody is not performing that way and the agent's not really answering, I think it's okay to talk about, you know, working with somebody else or finding another way to communicate who actually is running that property.

Yeah, because this is the deal, like, if I brought you a deal and, um, you— it was listed on the MLS and I didn't have it under contract, and you reach out to me, you're like, hey man, uh, what's the situation like? Is it still available? What's— how low can they go? And I'm like, I don't know, man. I just saw that it was in a good area. Like, like, what have I done to— like, other than showing you, I guess, this, this property, right? Yeah. So I think it'd be okay if, if I'm so busy and I can't get back to you to go directly to the agent. And if I get the deal, if you get the deal, then just let me know and hook me up. Be like, hey man, I'm gonna give you like $500,000 just for showing me the opportunity, right? But, uh, That makes sense? Yeah, 100%. Like when I bring a deal that I see that another wholesaler has or another agent has to a buyer, I have all the information like, okay, this is the condition, this is the situation, this is how low they're willing to go, they're really motivated, this is why I'm bringing it to you, it's not a waste of your time. So then he feels like going through me is like, you know, makes complete sense. Now if he went around me, I'd be like, bro, I just gave you all the scoop, I gave you all the juice, like why? Why are you going around? So, um, and trust is also there. So maybe even an open conversation, open, honest conversation with that guy and be like, hey bro, it's really hard to negotiate through you to get a deal like this. Uh, you know, if you're, you got 20 and you don't, you're not really working with these people.

Is that, is that helpful? No, I love that. That's, that's the perfect answer.

The transparency is the answer. Oh, always is, right? Because it's, you want to maintain good relationships, but I don't— again, I've seen agents that do this too, bro. They'll just put me on a drip, put me on a drip and just send me a bunch of stuff that's on the MLS. And I'm like, bro, that doesn't help me. I can just put myself in a drip. Like, what I want is I want you to send me opportunities, like, where you're like, this is hot, this is good. Not just, you know, something in the area I want. It's like, anybody can do that, right? You can set up alerts on Batch. You can do all that.

So, yeah. Awesome. And one little nugget just to add to anybody who's in the New York market too, um, they use the term contract vendee. I don't know if they use that much in other states, but you know how we were talking about you can kind of keyword search in different softwares, right? So that might be something to utilize as well, that contract vendee. In certain states, they— those are basically deals that you could have signed and they're locked up with, uh, an agent or, um, another co-wholesaler.

That's it. Very interesting. Contract vendee, huh? Yeah, yeah.

So I just learned that like last week going to a REIA meeting.

So cool, cool, cool. All right, David, any other questions that you might have at the moment about, um, you know, the process of— you know, obviously you want to find buyers, and usually finding buyers in the beginning, I don't want that to slow and stop anybody from taking action, but really it's just to kind of understand your market and if it's active or not, right? Like, you don't want to immediately start working in an area that has no buyers because then you're going to have a hard time selling your stuff. But anyway, any other questions, David?

No, that's, uh, that's solid, man. That's, that's enough for me to chew on and keep going. All right.

Yeah, appreciate you. Yeah, yeah, of course. All right, everybody that's been watching this, this is, this has been the Investor Thrive Live call where we break down how to get deals, how to find buyers, how to use Batch, and how to succeed. And David, Hit up David if you got deals in Orlando, Tampa, or Long Island, the New York City area, correct? Yes, sir. All right, he's got his number. That's nice of him.

There, bro, we got the fire.

There you go. Fire! I love that. That's good, man. I got, I got nothing here.

Shout out to my boy Rob, who's got the lighter right here, ready to go.

I can't take credit for the incense. You know, you guys got to smell good in there, right?

Yeah, he's got the candles going, smells great.

Alright guys, we'll see you next time. Reach out to us and you always know you can hit up the Painless Flipping Facebook group where we do a live masterclass every week and we try to give you as much materials on how to succeed, especially through batch. Alright everybody, peace out.