How to Determine the Right Price for Your Wholesale Property?: Payneless Cash Buyer Secrets

What is going on, everybody? This is the Painless Flipping Show. Let's get it going. And by the way, I have my screen on the— I got the dual monitor going on, so I got to switch my screen so I'm looking at you guys. What is going on everybody? Again, this is the Painless Cash Buyer Secrets call where I show you guys how to get cash buyers for your deals. And today we're going to be talking about something a little bit different than just not only just selling your deals, but we're going to be talking about how can you make sure and vet your deals? How can you make sure you you even got a deal that's even worth bringing to your cash buyer, because that can be a big problem, right? You can be talking to a seller, or you can be talking to a wholesaler that has a deal, and you can bring it to your buyer, and then they're like, "Dude, this deal is terrible. Don't ever bring me a deal like this again," right? Or don't ever, like, bring— I've had that happen. I've seen it happen, like, where buyers, they're busy, that you bring them a deal and they just trash on it. And I'm sure all of you have done that, where you think you got a good deal, and then the buyers are like, what are you talking about? There's no way this makes sense. So that's what we're going to be going over today. I'm going to show you guys my secret weapon on how I analyze deals. Not only do we use BatchLeads to analyze deals, but I use a calculator that's cost— I've spent thousands of dollars on and hours building. So I'm going to show you guys how to do it. Do me a favor. If you're watching this live, tell me where you're watching from. Tell me who you are so we can network. And give it a like, because wherever you're watching, if you like this, then wherever you're watching, YouTube, Facebook, whatever, if you like it, then the algorithm's like, hey, people actually like this thing, let's get it in front of more people. So do me a favor, go ahead, like this, and then we can get in front of more people. And I want to hear from you because as you guys know, this is live. I'm not here just, um, this is not a recording. This is me and I'm trying to connect with you so I can help you sell your deals and make sure you're not wasting your time on crappy deals, okay? So go ahead, I'm going to wait a little bit and make sure— I know we're going to let a little people in here. Tell me where you're watching from. You turn the lights off really quick. Okay, the mood lighting, you know. All right, all right, all right. So today, I'm really excited about talking about this topic because this is something that happens all the time. If you're talking to a seller and they say they want a price, yeah, of course you want to— you want to try and make a deal work. So a lot of the time you'll just be like, yeah, I can do that. I can pay that. And you'll lock it up and then you'll try it. But that's not the painless way. The painless way is to either have buyers that you can reach out to and they can tell you like, hey, this is a deal. This is what I'd pay for it before you have it under contract, just so you don't waste your time. Or for you to understand your market, that you're not bouncing all over the country and you're like, I don't know what this thing I could sell this thing for. You want to understand and master your market. So thanks to Batch Leads, you'd be able to master and not only master market but run comps and have all the data you need. So here's my TV. I can't show you guys on my screen exactly the batch leads because a lot of the data that they show is so good that going live here on YouTube, they stop my feed because they're like, hey, this information is too good, we can't share it, you know, and then they block it. So I'm going to show you on my TV over here. We got some nice little panoramic view. Beautiful of Iceland. Never been, but I'd like to go one day. Um, we're going to show you guys how to use batch leads. I'm gonna pull that over here in a second, but I'm getting kind of crickets. I really want to know where you guys— I know you guys, we got people on here on the live, quite a few. Go ahead. Tell me where you're watching from. It's— I want to know, I want to network. Cause a lot, a lot of time it's not so much about what I can do by myself. It's about what we can do together. So I have a specific deal I want to analyze, but if any of you are like, hey, yo, Nate, can you analyze the deal for me? Or can you help me find a cash buyer? That's what I'm here for. So if you're not gonna, you know, if you don't want to take the opportunity to, you know, network, it's okay. I'm still gonna go. Um, and then also, if you guys aren't a part of the Batch Leads community, you definitely need to check it out because, um, it's, it's got some good, uh, you know, it's a good network, people you can network with. So yeah, I'm going to actually paste this in here. I'm going to make sure everybody in the Batch Leads community knows we're live. So we are live. Okay, cool, cool. Let's get going, everybody. What's up? Okay, we got— what up, Nate? Brian here watching you from the— down from the road in South Carolina. Brian, guess what, bro? I got a deal in South Carolina. Someone sent me. Maybe you can help me dispo it, brother. Let me ask you, Brian, because you're here with me live. Do you have any buyers in South Carolina? And if not, that's okay because you know from this call how to find them. But someone sent me a deal that I know in South Carolina and he's like, hey, can you help me dispo this, Nathan? So maybe we can look at that one first. Maybe, Brian, would you be interested? You have buyers? You want to help me work this one? Let's do this one. Let me know, bro. So let's, uh, let me pull up my text message with that the guy sent of the address of the property the guy sent me. All right, let's see. Got it right here. Got the text last night, so I haven't really looked at the deal because I've been freaking busy. This one is in, um, Summerville, South Carolina. If any of you guys have been to Summerville, South Carolina, Let's check this one out. Okay. So it looks like it's a single family. It's under— it's subject to 6.625% interest. Okay. So it's a sub-to deal. And what's, what's the entry fee? Remaining mortgage balance, PITI on mortgage. Okay. Entry fee. Okay. So if you haven't sold a deal on subject to, to a cash buyer, basically what you have to do is there's an entry fee and that's basically basically, um, like, this is from another wholesaler. So the wholesaler is saying the entry fee is $28,000. So if I want to make anything above it, I would just add my fee on top, and then that's what I would make, right? I would add my fee on top of the entry fee. Um, so let's, let's take a look at this deal on Batch Leads. All right, I'm gonna pull the TV over. Let's get, let's get going. Because right now I have to determine if this deal is worth working, right? Now, first of all, I see that it's $28,000 to get in. For me, I'm like, $28,000 to get in, that seems like a lot. Most of the subject-to deals that I've done have been like $5,000, $10,000, getting like really no money down to get in. So when it requires a lot, uh, substantial investment, which that's not like substantial, but it's more than the normal that I've been doing. There's going to be less, less buyers. Okay, Brian. So you said, uh, it's about an hour from you. Amazing. Yeah, that's a lot to get in. Exactly. But one thing I do know is it's a wholesaler's deal that a wholesaler sent me this. So he's obviously got his fee in the entry fee, right? Cause that's, he knows if I pay that entry fee, he's going to get his split. So I can call him and be like, hey man, that's a lot to get in and negotiate it. But first of all, let's just take a look at the deal and see if it's even worth it. So what I'm going to do, everybody, is I'm going to go to batch leads. We're going to type in the address of the property. Okay. We're going to type in the address and we're going to see if this thing is worth the time. So I want to— I don't want to spend a lot of time analyzing deals. I just want to know, okay, is this in an area that's good? Do we have a good deal? Do they have it at a discount? Um, like just the basic stuff. All right, so quickly, can I analyze this specific deal in less than, let's just say, 5 minutes right now? I'm, um, just keep the timer, hit the timer for 5 minutes. Let's see if I can do it. And I'm using the vibe board, so it's kind of slow, but that's just, that's just how it is. So let's see, and I'm going to turn off this light even though it makes me look better. So you guys can see the TV a little bit better. Okay, right here. So we're going to type in the address, and, um, if you want to— if you want to check it out too, Brian, it's 152 Ashley Bluffs Road. Okay, 152 Ashley Bluffs Road. In Summerville, South Carolina. Okay, so first thing we're going to do is we're going to look and see what Batch believes this thing is worth, okay? Because it has an estimated value. Batch, it's like, this is, it's an algorithm, right? It's like Zillow. It's not ever going to give you a perfect estimate, but it's going to give you a good one. So if we look at this right here, the house on Batch leads That's a nice home. Like, that doesn't seem like there's any— like, it doesn't look like it needs to be, like, repaired. As you guys can see, like, if you had batch leads, it shows you the pictures. But, oh yeah, that's looking good. That's like a new build. Looking nice. So it's currently estimated value is like $444,000. Okay, so I'm looking at the deal right here that I have. And it says that the entry fee is $28,783. Breakdown, commission. Okay, actually even tells you how the entry fee works. 2.5% commission, arrears, $10,000 assignment fee. Oh man, they're getting a commission involved and assignment fee and closing costs. That's how they have this set up for their entry fee. Total entry of $600. It says it's worth about $470,000. That's what they have this thing as. To me guys, quickly, I don't think this is a deal. Like who would want this? The payment on this property, the PITI, like what you'd have to pay every month, is $3,692.50. What are you going to do? Are you going to Airbnb it? Like, how are you going to make those payments? That doesn't seem like a good deal. Let's see what the estimated rent in that area is. It says the estimated rent in that area is $2,500 according to Batch. Yeah, I don't really see how this is let's see, midterm rental. If it's furnished, you could do maybe like $4,000. Airbnb, $4,300. So basically what they're trying to sell this deal is they're trying to say, hey, look, you can get this deal for $29,000 to get in, and it's like $3,500 a month. I'm going to put this light back on. $3,500 a month, and you can Airbnb it, and Airbnbs go anywhere from $30, $3,000 to $4,000. That's not a good deal to me. Like, why would I spend $29,000 to get in a deal that might cash flow? Maybe, right? I'm out on that. Uh, give me a few minutes to pump some gas in my truck. Okay, no, you take— you take— you can watch this, bro. No worries. Um, you can watch the replay. So quickly, I determined by looking at batch leads if a deal that's sent to me makes sense. This deal To me, it would not be worth the time to work it. So anyway, yeah, I'd be interested to see if they sell it. He's obviously asking me because he's not selling it or it's not moving very quick. So just because you can get a deal on terms doesn't make it a good deal. Okay, and most of the people that I sell it to would be looking to— as you can see the pictures, they're looking to sell it on— sorry, flip it or add some value. This one is again is more of like an Airbnb play. But not really. So anyway, I was able to analyze that deal in 4 minutes, in less than 4 minutes. Okay. So basically guys, what, what I do is you got to make, you got to make money on deals. Like if you can't make money on a deal, whether it's an Airbnb, whether it's a long-term, midterm, short-term rental, or if you can't make money on it as a flip, it's not worth your time. And it's obviously not worth the flipper's time that you're going to try and wholesale it to. So I'm going to show you guys a calculator that's my secret, that's my secret weapon. And I'm going to show you guys exactly how I use this thing to quickly analyze deals to determine if it's worth bringing to my buyer or not, okay? Like one of my cash buyers. So let me get out my painless offer calculator, okay? By the way, if anyone has any questions on what I'm doing, just throw the question in the chat and give this thing a like, a thumbs up while you're watching. Okay, so let's take a look here. I'm going to share my screen right here. This is the nifty Painless Offer Calculator. With that, this thing, I love this. It makes my job so easy. All what it does is it has tabs on, you know, all the different options you can offer to sellers. You got your cash offer and it tells the seller exactly what he's going to net. You got your renovate and like if they're going to flip it, what a seller would net. Novation, uh, seller finance, and list as is. Um, it's got your flip analysis if you're a flipper. If you're a wholesaler, you just include your fee. It does it, novations, BRRRs, uh, 1%, uh, rule for rental analysis, creative calculators. So it's all in one spot, which helps me to basically be like, okay, what scenario am I going to run? And I'm going to explain to you guys how basically you can use a calculator like this. This one I actually give away in my masterclass. If any of you guys are interested, I give away this tab on wholesaling. I don't give away the whole thing because I spent $1,000 on it. But if any of you are interested in what I'm about to show you, you can get it at my masterclass by show attending. But anyway, so let's take a look at another deal, okay? I'm gonna, I'm gonna go to my CRM right now. I'm gonna look at another deal that someone sent me, and let's see if I'm gonna pull it up, see what we're looking at. Okay, so this one, let's see. Okay, this is one that I'm pulling up. It is 1229 Seminole Street. Okay, so what we're going to do so everyone can see me, I'm going to stop sharing the calculator and I'm going to show you. Okay, so we're going back to batch. We're going to go to type in the new address, which is 1229 1229. You know, I actually wholesale— already wholesale the property on this street, so that's kind of cool. Seminole Street. Seminole Street. I think the house that I wholesaled on this street in Clearwater made— I think it was like a $76,000 wholesale fee. Not bragging because obviously I didn't get to keep all $76,000 because because I got a company, but pretty cool that— yeah, small world. Alright, so this deal Batch says it's worth about $633,000. Okay, so I'm seeing right now that the asking price from the wholesaler that has this deal is— okay, hold on. I'm still— I'm looking at the wrong thing. Give me a second. Gotta do it again. Gotta search it. Okay, there it is. Okay, we'll start over. So $293,000 is actually the asking price, what Batch says this property is worth. Okay, so take that with a grain of salt. Like, we're not going to say like it's 100% exact, but if we go to comparables, we can go and see like what it's basing its information off of. So just to make sure you guys can see that. So if you go in here, it's saying, hey Nate, it's running comparables to the homes in the area saying that like, hey, according to these homes that have sold, we're saying $293,000 is why that it's worth $293,000 because of these other sold homes, right? These other comparables. So that one sold for $290,000. What, last year? Okay, so let's say $300,000. All right, and I'm going to show you guys how we analyze this. So if the house is worth $300,000 flipped, we're talking pimped out, looking great, uh, worth $300,000. The wholesaler that sent me this deal is asking for $269,000. Okay, the wholesaler says it's worth $370,000, but according to what I just looked up real quick, it's not really worth $370,000. It's saying it's not that nice. You know, wholesalers, that's the problem. They send out crappy deals half the time because they're just trying to make a deal happen. But let's look at this. So if it is worth $300,000 and they're trying to get it from me for trying to have me buy it or me get it at $269,000 and then wholesale it for more. Because I'd have to, you know, if I want to make $10,000, I got to put my fee on top. Let's see what the house is, the condition. So it says roof and AC recent and permitted. It's right next to Clearwater County Club, needs a full cosmetic, 3-1. Flipper bought it recently, had a family tragedy, just needs the money, can't complete the flip. Um, okay. So this house, if it needs a full cosmetic rehab and the square footage is 1,300 square feet, uh, it's actually 1,250. Let's see. Let me change that. So if the square footage is 1,250 and it's a medium rehab, but this says full cosmetic. So we're not getting into like down to the studs, which is everything. If you bought it at $269,000 and could sell it for $300,000, you're losing, you're losing $50,000 after your wholesale fee. So that's not a deal. So let's just say, hey, you know what, maybe this thing is worth $375,000 and I'm going to do a little bit more research into it. Even if this thing is worth $375,000, if it, if I have to get hard money on it, if I have to get, you know, if it takes me 5 months to do the full cosmetic rehab, and I sell it to one of my buyers who is going to list it himself so he doesn't have to pay commissions and he just has to pay the buyer's side of the cost, then it's okay. It's an okay deal. Someone would do that. Someone would do it at 9% with a 9% net profit because they're going to put all this money into it and they're going to make $32,000 of profit after everything's said and done. Basically, like a lot of flippers, what they want is they want a percentage. They want their percentage of the ARV of the property and the net profit. They want it to be in the 10 to 15 to 15, 20% up. If it's in the red and it's below 10% net profit, they're usually like, eh, not really interested because it's not worth the risk. If this property is worth $375,000, then I would say, yeah, it's a deal that would be worth working. I'd be worth sending out to my buyers. But if it's worth $300,000, then guys, there's not much else to talk about other than it's not a good deal. It's a trash deal. So that's how I analyze things with my calculator to determine, is this worth sending to my buyers? Is it something that Yeah, is it worth it? We got some people saying wholesalers should be banned. Very interesting. Yes, I think bad wholesalers should stop working. They have no accountability to anyone. Well, that's interesting. It's— they may— they do or do not. I don't really know what you mean. Like, if they work for a company, maybe they have accountability. I'm accountable to— if I don't make money, like, it's probably because I'm sending out crap. So that's your accountability if you're a wholesaler. If you're just doing bad business, then you're not going to be able to sell anything. So $300,000 is what I'm seeing according to Batch. If I want to dive in deeper and be like, well, what, why, what are they saying right now that they can say it's selling for that? Well, let's dive a little bit deeper because maybe I'm being too harsh. Let's take a look. Okay. So the house that I have, is it's a 3, it's a 3/2. And let's take a look at some more properties over here. I'm going to turn off the light again. Okay everybody, so all I'm doing here is I'm seeing houses that have sold that are comparables. And, um, well, we're gonna go and see exactly where my property is. So mine's there because you don't want to be checking out properties that are like way up top way up there because it might be a nicer neighborhood. It might not be a good comparable. So I'm seeing that there's a house for $370,000 that sold here, but is it a 3/2? Is it a good comparable? Okay, let's take a look. So this is a 3/1 and it's a flip. Okay. All right. So maybe that's, that's not a bad thing. Let's take a look at some more. Um, let's see, maybe I was too hasty. And I know when batch pulls in the algorithm, it does take in a lot of properties within like a mile and a half. It's set to do within— let's see, within a mile. So maybe I need to like reduce the radius because, um, maybe in Tampa and Clearwater, properties are fluctuate through price like a ton. So let's see, let's check out this one that sold for $380. Okay, that one's a 2.2. I don't know how that sold for $380 because that looks like a piece of trash. Let's see what else. So this one sold for $311. Okay. Yeah, yeah. I think $370,000 is according to what I'm seeing. I'm seeing a lot more lower $300,000s. So what I'm going to do is I'm going to reach out to the wholesaler and kind of be like, hey, you know, I was getting some feedback. A lot of my buyers don't think the ARV is $375,000. You know, what's going on here? Let's call a wholesale right now and let's kind of get some feedback on the deal and just be like, hey, I got some people interested, but $375 might be a little bit of a long shot. So let's see, I'm going to call them right now. No double closing, blah blah blah. Okay, let's see. Marianne Termino is the wholesaler that has it, so let's call her. And by the way, for anybody watching that's watching this live or if you'll watch it later, let me know, you know, throw some— throw your questions in the comments and I'll be able to get back to you. Let's see. Mariana? Let's see, pictures. Okay, my VA Zeshawn put this in, so I wonder where he got this deal. I'll have to hit him up. So anyway, I need to hit up Zeshawn, who's my virtual assistant that knows a little bit more about this deal. But anyway, if it is worth $375, it's a 9% return from what I got, barely. Like, it's still teetering on not being the best deal just because it needs a lot of work. One last thing I'm going to show you guys is the pictures. The pictures do help us determine the rehab value, like the rehab estimate. So let's take a look at these pictures super fast. I am curious to see what this house looks like and show you guys. Oh my goodness. Oh, I'm so glad we looked at those, everybody. That house is destroyed. Well, okay, check this out everybody, check this thing. All right, so it doesn't look too bad from the outside. Oh my, oh my gosh, oh dear, that's down to the studs everybody. Like this house is just— oh goodness, oh my, oh goodness, that's going to need— that's not a full cosmetic, that's a full That's a full gut job. Like, that's, that's not just— there's probably electrical, there's probably a lot of— oh my gosh, guys, this thing, let's, let's really be honest about this. This thing is like a, like a $90,000 to $100,000 rehab. My goodness, come on. So what I do in the calculator, I go, let's go $95,000. Really, guys, in order to get full retail value, you're gonna have to redo the whole thing. At $300,000, you're losing $100,000. Even at $375,000, which this house is not worth now, not yet. We're out. Forget that deal. But I still would call the wholesaler and be like, look, man, you got your numbers all wrong. Can you renegotiate? Because I have some buyers interested. But yeah, you're way off, guys. You really need to know before you tell a seller like, hey, I can do this. At $269,000 or whatever price they have it below that. Even if they had it at like $200,000, it's not a good deal. Well, $200,000 might be a good deal, but that's— yeah, whoever got this deal under contract needs to come to this call and learn. Yeah, so I'll call them. But guys, this has been the call. Hope that's been helpful today to kind of show you guys how to determine how, you know, the right price for a wholesale property. Really, you just run the numbers. Use Batch to kind of give you a good estimate. You can dive in deeper if you need to, but just the estimates right at the top, it's pretty helpful. So I hope this was a good call for everybody. Look forward to the next week, and I hope what the content that I bring you guys is helpful. Batch Leads is a super helpful resource that I'm able to use to determine values, you know, know who's the buyer, like find buyers, know like what kind of loan they had, who bought it. There's a bunch of great stuff that enables you to, when you talk to the seller or the buyers to sound professional and know what you're talking about. So if you don't have Batch Leads, check it out. Use the promo code InvestorThrive, like the one behind me, InvestorThrive, to sign up and check it out. You get a free, free, free week. Peace out, everybody.