How to submit offers with escalation clause to win more deals!

What's up everybody, we are live right here. We got a special treat today, got my boy Jordan Weyburn. What's up bro, what's up, how's everybody doing? Come on in.

Hey, great to be here, good to be here.

All right everybody, so today if you didn't know, um, we're going to be talking about, uh, we're going to be talking about how to write an escalation clause in your offer to get them accepted. Because right now we're facing some— we have some deals that we're trying to buy and you know, we want, we want to get our offers accepted. But before we go into that, I was just having lunch with my boy Jordan Weyburn. We grew up together and we went on a mission for our church together. So he's telling me he has a townhouse he wants to sell and he's thinking about paying a real estate agent 3%. I said, bro, you can do it yourself using Batch Leads and BrokerList.com. So if any of you guys that are watching this live are going to watch this later, I'm going to show my boy right here before we go into escalation clause how he can just go on Batch Leads and list his house for $150 if he wants. Forget paying a real estate agent. By the way, if you guys are watching this live, just right here in the comment section, type where you're watching us and it always helps us to give us a like wherever you're watching because then it lets the algorithm know that, yo, this is a good video, people are enjoying this. So again, got Jordan Weyburn, special treat. And if you guys don't have insurance, he has an insurance agency in Utah. If you guys want some insurance, home— what do you do?

Home, auto, life, licensed in Utah, Idaho, Colorado, Arizona, Nevada.

Hit him up. All right, so again, today Jordan told me, hey bro, I got a townhouse I want to sell and I'm thinking about doing it. What should I do? I said, hey bro, do it yourself. I just sold the house on the MLS in Florida for my brother-in-law by myself. Super easy. Uh, real estate agents, it's all good, man. No hate against real estate agents, but you can do it yourself these days. All right, so Jordan, what are you going to do? Right here's batch leads and I want you to type in your address. Right there into Batch Leads. Okay, so what I'm showing with Jordan right here is we're going to use Batch Leads because, you know, we love Batch Leads. We're going to see what his house is valued at. This is just an evaluation. It's not like, hey, 100%, like, this is it. It's an algorithm, right? Batch is using information, just sold properties, to see what the home is worth. We're going to see. So I'm going to say, hey, this is potentially what your house is worth. We can look at comps. And this is how you're going to list it. Very simple. And we got my boy Rogelio Bell from San Antonio saying hey.

What's up, Rogelio?

Rogelio. All right. All right, Jordan. So right here, this is your property. So you go over here, you click. We're going to click right here on the batch leads. And this is going to kind of give us some details on what your property's worth. And by the way, this is just a— like I said, it's an algorithm. All it's doing is it's going to the comparables of houses in your area that are similar to the one to your house, your townhome, and saying what it thinks it's worth. Um, so I'll show you. If you go here— have you ever heard of Batch Leads?

No, never heard of it.

So Batch Leads is a software, it gives you a lot of data. So Jordan, basically what this is saying is like, hey, what townhomes have sold in this area within a mile? And you know, it basically breaks down what it thinks your property's worth. And you can see some of the comparables down there. It pulls it really quick. So what a realtor says that they can do, this just whipped it out in seconds. Okay. So this says that your estimated value of your townhome is $484,000. We obviously can dive a little bit deeper into it, but let's just say it's worth $484,000. Okay, cool. So thanks to Batch, you're able to get the information quick. And then BrokerList.com. You have the option to list the property yourself for $99 by, by owner, but it's on the market and you get up to 6 months, 6 photos on MLS. If you go $149, that's when I paid for is $149 when I did it, 25 photos. So you just get someone to take some nice professional photos. It goes on the MLS just like as a real estate agent did it. And instead of putting your number on there to take the calls and set up the showings, my brother-in-law, when I worked with him, he just put my phone number and I facilitated everything. So that's, that's simple, bro. You just pay $149.99 and then you save 3%. You save 3%. And let's see what 3% is. I wonder if there's a calculator app on here. I'm sure there is, but I don't know how to get to it. So what is 3% of— let me just do on my computer— 3% of $484.

Um, which I bet we'd get more than that, but assuming we get what this estimate says or whatever the broker deal says, I think we'd get $44,000.

So let's say if you paid 3%, so that's $14,520 that you would pay to someone just to put it on the market for you, put it on when you could do it yourself, right? So anyway, everybody that's watching that, I just showed my buddy who's not in real estate how he can use batch leads Batch Leads is free on a 7-day trial. So if you want to use it, 7-day trial, you can do it for free. And then I think it's depending on the, the plan you have, it's like, you know, $99 to $250 depending on what you get a month. But anyway, you could use this, get all the comps, all the information you need, go to BrokerList, list your property, bro, and sell that thing. Save $14K.

Wow, amazing. Batch Leads.

Batch Leads for life. All right, bro. Thanks, man. I'm going to go with him in a little bit and finish our lunch, but I want to— this call's live. Anything you want to say to people, bro?

Hey, uh, just appreciate it. This is some great knowledge, you know. Nate's the boy and he's the man. I think, uh, you guys know he knows his stuff. So that's all I gotta say about that.

Let's give a shout out to Jor Wayburn for making an appearance today. Great to see y'all. Thank you. Again, if you need insurance, he's the guy. But, uh, yeah, everybody, I wanted to show you guys really quick because I run into a lot of people and, uh, they want to sell their properties, and I'm not a real estate agent. I'm, I'm, I don't have a license, But I show people their options. I say, hey, you can use me. I can wholesale your property. I can buy it for cash, or I can list it and I can take the calls and, you know, I can work in a fee and you can pay me, or you just do it yourself. I give people options because I'm not trying to push anyone to where I think they need to go. I just say, hey, what's best for you? Here are your options. Go ahead and pick it. That's the way I like to do business. It's transparent. It's easy. It's quick. And, uh, you know, I'm always looking to do the best for, for people and like what would work for them. So anyway, guys, today I want to talk specifically about how to submit offers with an escalation clause. Okay, so what the heck is an escalation clause? Have you guys ever heard of that? So what an escalation clause is, basically it's saying, hey, I'm gonna make an offer, but if any other offers come in, I'm gonna be able to escalate my offer into certain terms to beat that, the offers that come in up to a certain price. So why did— why is this important? So I make a lot of offers on properties that I want to buy and I have cash buyers that I know are willing to pay a certain price. So let me give you a scenario that's happening right now in Utah. We have a deal that we don't have, we don't have it under contract, but we talked. It's a notice of default. The person's going to pre-foreclosure and they have a real estate agent that's representing them. So the real estate agent is like, hey, we're letting all the offers come in. And what I did to the agent, I said, hey, I'm going to wholesale this. Is it cool if I send some of my buyers in so I know what offers I can pay? What prices I can pay, and then I can just make you the offer. So the agent's like, yeah, that's cool. So I sent my buyers in and I'm getting offers ranging from like $150,000 to $250,000, $100,000 range on making offers. So what's happening is like, I don't want to make like the highest offer available like that I have. I don't want to make $250,000 because I want to make a spread. So basically what I'm doing is I'm saying, hey, agent, my offer, the offer I'd like to make is $208,000, for example, $208,000 with an escalation clause of, you know, up to $250,000. And I'm not saying this is the exact terms. I'm just giving you guys an example, but an escalation clause up to $250,000 and I'll beat any offer by $2,000. Okay. It has to be like a legit offer. So if you guys are kind of confused, It's— Google does this probably a little bit better explanation of it. Let me, let me show you guys really quick how Google explains it. So how do you write an escalation clause with a home offer? Let's say you make a $410,000 offer on a house listed at $400,000. There are other offers on the table, so you include an escalation clause with a cap of $450,000. And factor in, in a factor of $5,000. If anybody, if another buyer offers $425,000, your offer will increase to $430,000. So you're basically saying, hey, my offer's $410,000, but if anyone comes in higher at $425,000, I'll beat it by $5K. Now, this happened a lot during, um, you know, the pandemic because everybody was trying to get their offers accepted. But I'm doing this right now with my wholesale offers because I know what my cash buyers are willing to pay. I'm talking to the agent, I'm just saying, hey, look, I'm going— I can escalate this to a certain point, and, uh, but I'm not going to just immediately step forward with like my best offer, right? Because I want to make a spread. And, uh, I think, you know, that's, that's going to enable you to, to make better offers and offers that will get accepted, um, versus just going up like at $445 and just, you know, going immediately at the highest you can go, right? For you to make like a $5K spread. So we'll see what happens. And this is the reason this sparked a like a thought in me is like, some of the other offers that we're facing from other wholesalers, they also have escalation clauses. So I was like, well, I have a buyer that's ready to go who's willing to be like, yeah, I'm ready to put down earnest money today, $50,000 earnest money today, ready to go close in 4 days. So I am able to present that offer with an escalation clause that's like good to go. So if anybody, if you don't know what I'm saying, This is difficult to do if like you don't really know your market or have buyers in place. But if you know your buyer, again, like if you're talking to a seller or an agent and the seller's like, hey, I want $200,000, but there's, there's like 10 people I'm waiting to get offers on. You can say, okay, I'll give you $200,000 and I'll escalate. I'll do an escalation clause up to $420,000 or sorry, just $20,000 above that. And I'll beat anybody's offer by $1,000. And, you know, give it a shot, especially if you got buyers locked in like I do. I like to have my buyers in place most of the time before, unless it's like a screaming deal. This is where competition is involved. There's competition involved. Then, you know, you got to do what you can the best you can so your offer stands out. Now, I think this is one of the best ways to do it. Comment and like, let me know in the comments if you guys have any questions or Or if you're not familiar with the strategy or tactic, again, it's just, you're just saying, hey, I can escalate my current offer above to a certain price and I can beat other offers by a certain amount up to a certain point, right? Up to a certain amount of like $450,000 or whatever the number is. Guys, I hope this was helpful. I think today was pretty cool. I wanted to make it short and quick just because, you know, I went over some good stuff. First, we started out with my boy Jordan Weyburn, good friend of mine. He's got a townhouse. I showed them, hey, look, don't pay a real estate agent 3%. You can do it yourself. All you gotta do is BrokerList and go to Batch, see what your house is worth, list the property, take the calls. Number 2, I showed you guys how to do an escalation clause. What is an escalation clause and how it can help you get more offers accepted and win more deals. Guys, I hope this was helpful. Please like and share this and subscribe to Batch Leads TV, my YouTube channel, if you like this information. Every week I'm coming at you guys with new information to help you guys succeed and get more deals done. Hopefully that was helpful. My goal is to help you guys win. Like this video wherever you're watching so we can get this rolling in the algorithm and more people can see it. Peace out, we'll see you next week.