I Let the Camera Roll While Meeting Motivated Sellers — Here’s What Happened

Welcome back to the channel, everybody. Are you gearing up for a seller appointment and you're not sure how to navigate it? You've come to the right place. Knowing how to operate and navigate an appointment can make or break your deal. If you go into an appointment and you do not know what you're doing, you're fumbling around your words and you're nervous, it's going to probably happen. You're probably going to be nervous when you first start, but at least have a game plan and a sales process to take the seller through so they know that you have experience, or at least you know what you're talking about. In this video, you're gonna know exactly how to prepare for a seller appointment and actually have a live scenario of you watching me. Actually, I recorded it because I asked the seller, say, hey, is it okay if I record this for training purposes? You're gonna be able to watch me on a seller appointment and how I navigate through the scenario, and you'll know the key points to address during a seller appointment. Let's talk about what you need before you even walk into a seller's appointment. First of all, you're gonna need to know what you can do with the property, what your exit strategy is. If you just go in there and you're like, I don't I don't know if I'm going to fix and flip this, wholesale this, wholetail this. You got to know what your exit strategy is and what you're trying to do with it so you have a good idea. When you go into that appointment, if you know exactly what you're trying to do, you also need to go with kind of a good idea of the numbers. You're going to go to that house to get a good, a better idea of the condition it's in, but at least you need to know the ARV, what it's going to be worth if you fix and flip it, and also, you know, a general idea of what you're going to need to get the house under contract for. Because if you just go in there and you're like, you just don't even know numbers, you could waste a lot of time and just not come off like professional. So you want to know what you're doing and know the numbers and exit strategy before you go. Before we jump into the second point, I want to invite you all to my masterclass. It's at painlessflipping.com. It's absolutely free where I show you exactly how to get started in wholesaling real estate investing. Check it out. So you got one good shot to make a good impression on seller when you go see them. So what I like to do is when I knock on the door, I like to shake their hand, say, hey, thanks for having me over. My goal today is just to see what I can offer you. Let them know why you're there, right? Hey, I'm here to see what the house looks like so I can make you an offer. After I take a look the house, let's take a seat, and I'll be able to run my numbers and show you exactly what I can offer. You want to start off the appointment, and when you meet the seller, by setting the proper expectations of what you're going to do. If you just knock on the door, they welcome you, and you walk in, you just start looking around, they're probably like, okay, I guess this is what he's doing. But if you just say, hey, look, I'm just going to look, take a look around the house, and then after we can talk and discuss our options to buy your house, they're going to feel a lot more comfortable. So after you shake their hand, you look around the house, see the condition it's in. So after taking a look at the house, you want to take a seat and go over the condition of the house, everything you just saw. You want to talk about their timeline, how soon they want to sell, and the options that you have to buy it. And then once you're able to talk about that openly and honestly, you want to make your offer. Okay, and not a lot of people, they'll leave, they won't make the offer right then. They'll just say, hey, let me go run my numbers. For me, it just depends. You got to vibe it out. If you know exactly where you need to be, you make the offer, and if you don't And you can say, hey, let me go run my numbers. But basically, that's what you want to do. And the thing that I like to do so I feel confident as I talk to sellers is I present them multiple options. I just don't want to go there and make a lowball cash offer and hope they accept it right there. I want to show them all the options they have and just say, hey, what's best for you? And actually, there's a video right here of me going through my sales process step by step with these sellers. So check it out and tell me what you think about my process and if you think it's any good.

Basically what I wanted to show you, I'm going to share my screen with you guys just so I can show you what options We have— so what I do, I just show you the whole process of what I, what I take this thing as. So this is your home, right? $450,000. You have it listed on there, and you're saying most of the offers are coming in around $400,000? Is that what you're saying? You're saying—

so quickly, I report your home buyer, which said $426,000.

$426,000. Okay.

And they still canceled.

Yeah. So do you believe they really had someone at $426,000, or do you think they might have been—

they snapped me up and said, we'll see if we can whittle them down. Okay.

So I'm looking around at comparables. That's like what you do as a real estate investor. You just want to see what, uh, what houses are worth in the area.

Street smaller than mine, $475,000. Okay, that was a couple months ago and it sold. Sold. Okay, updated his house, sold. Okay, and his yard looked like shit. He had two stumps, two wood stumps. Yeah, your yard looks pretty good. Yeah, better than two wood stumps. Yeah, and I'm on a third of an acre. He was only on about a fifth of an acre of that.

So I'm looking over here and across the street there's $610,000. Now these aren't necessarily comps because they have not sold yet, so someone might be able to buy it for less, but I'm just looking around. So this house You can see it's not like a complete rehab, but, you know, looks decent. And it's been on the market for 114 days. So, when I see this been on the market for a long time, that makes me think—

The price is too high.

Price too high. So, just immediately I'm like, "Okay, maybe like $580,000. They're too high." Yeah. So, then I take a look at another one, and this one's $640,000. You would say, "Okay, they did a flip. They got the nicer kitchen, blah, blah, blah." Okay, how long has that been on there? 23 days. Okay, so we're not sure what's going on with this one. If I really wanted to know, I could call the agent and say, hey, you're getting a lot of action on this, right? So, uh, but nice yard, right? Like, uh, nice. That is cool.

So it looks like—

Yeah, so we start going over here because I do think, you know, east of 1300, some people just think that's, you know, more prestigious. Yeah, so let's go over here. We'll look at this one. So it's 580. It's already dropped down from $590,000, $20K price cut, been on the market 18 days. They usually— it's been on longer, but somehow they get it to reset. This one, not flipped, right? It's just, you know, it wouldn't— yeah, it needs— so I would say this is a decent comparable to you guys, like, but at the same time, it's, it's a different style home. It's built probably a little bit newer than you guys. Let's see, '58, you're— I think you're 1983, this is 1987, so not that big of a difference. Let's see, half a million for this. Oh, okay. So that's kind of— that's pretty similar to what you guys have, but not flipped, right? So they're selling—

it's only a 3-bedroom though.

Yours is 4.

Oh, yeah.

And yours, I think yours is 18. Let's see. I think it says right here 1741. This one is 16. So it's pretty dang close. I wonder, you know, maybe they have an open layout in the basement or something, but not flipped. So my thought is like, if you were to flip this one or your house, this would be around 550, 560. That's my thought. So as a flipper, if it makes sense for me to flip your house, I'm gonna buy it. And that's, that's what the numbers are. So right here is a calculator. This is how we make money. So if I type in $550,000 for your house and I buy it at, let's just say, $400,000. Let's just say we were able to pay cash for that $400,000. I borrow money. Most flippers are going to borrow hard money and they're going to pay interest on it. It's going to take them probably about 5 months to flip and sell it. And they have to pay closing costs and commissions. And your house, in order to flip it, to get it to pristine condition, it's huge. This is a medium rehab. This is It's not destroyed or anything, but you have to update things and it's going to cost, you know, so you got medium and I put in the square footage 1714. So for someone to flip this house, they usually want to be in the green right here. We're in the yellow. So somebody might look at this and be like, I would probably do it. I'm going to make— people want to at the moment, they want to have a 15 to 20% return on their investment. So again, that's why I think Joe and Homebuyer, all these guys are like, hey, let me just see. I can check. There might be somebody that's willing to do it. But in order for this to be like a home run for someone, obviously you guys know, like, that's the offers you've been getting. 3— like, once you go to 3, I think $370,000 gets you in the green. Yeah. So I think the max that someone would pay and stay in the green would be— that's too many zeros. $380,000. Probably $380,000. So that should be green. But does that kind of make sense? Like how the numbers work?

Yeah.

Okay. Now I understand that you guys, like, you don't care. You're not just going to sell it for $380,000 or less if you don't want to. Like, you're going to, you're going to sell it when you feel like you get the right offer, right? So if you renovate and resell it yourself, you could— you're going to walk away with more money because this, this calculator actually breaks down if you guys do it instead of, you know, selling it, right? It breaks down right here. And hopefully this is useful information. I'm just—

yeah, yeah, yeah, I see a lot of things that are.

So if you were to flip this yourself and sell for $550,000, it would take 5 months. So let's say 5 months from now, uh, you're done flipping it. Would you pay commissions and fees, 6%. So those are the fees that you'd pay and your rehab costs would be estimated around like $49,000. And it takes away all the fees that you would pay. And it says after everything's said and done, if you were to flip this yourself in 5 months and rehab it, you'd walk away with $475,000. So that's an option to you.

Put that down to $3.5 million.

$3.5 million, this one?

I ever got somebody to do it for $3.5 million.

And I also could do it like extremely cheap for you too. You mean to list it, correct?

What's that?

You mean to list it, right? Like you have someone that would do it for a lot. So there you go. $489,000 if you flip it. So if you're like, hey, let me just take 5 months and put about $50,000 into it and you're speculating yourself, you're saying, hey, I think it'll be worth $550,000. It might be worth more. You never know. But a lot of people, that's why I show them this, because it's like, hey, you don't have to sell it. You could fix it up. You're going to make about $89K more speculation than if you sell it to someone like me that's a cash buyer. Now, the full service program, that's what I was referring to, where we put it on the market and this is how we run the numbers. So if we were to list this house on the market, you had it listed before, didn't you say you put it for half a million?

$533,000.

$533,000. Okay.

Started out, then went down to $525,000, then it went down to, I don't know, $499,000. I don't know. Okay.

So let's, let's say if we relisted this thing and I You know, I take care of the commissions and the fees and whatever for listing on the listing side. I'm looking at this house. This house is— I feel like it's pretty dang similar in like condition in the sense like it needs to be updated. $499,000. This thing, I would call the agent. I'd just be like, hey, are you getting a lot of hits at this price or what's going on? And if he's like, we're going to have to drop it again, then we would know that. But let's just say we listed this house on the market for $490,000, for $489,000, and I put it on the market for you guys. If it's at $489,000, usually we take 95% of that to sell it like pretty quickly. So then, you know, 3% commission on the commission since the buyer's agent usually wants to bring, you know, they want to get paid 3%. We could also try 2.5%, but 3% is usually like what attracts agents to bring their clients. Closing costs. And then I add in a little for doing this, I add in a desired profit that I'd like to make for the, you know, the work that I would do. Okay. So if we were able to sell this house, we'd list it for $489,000 and we sell it for $464,000. After the fees and the commissions, you guys would walk away with $428,645. And that's if we did this strategy of like, let's put it up, let's show it to people. They come in, they say, oh, you know what, needs a new roof or needs a new— and then we say, hey, we can do concessions for you. We can, you know, add that in there or we can do the repairs. So when you look at your options, again, if I blast this out to all my buyers in Utah, we're going to be getting anywhere from like $380,000 to $400,000. That would probably buy it now and just flip it.

Yeah, I've already had a $400,000.

You've already had that, right? And I might have some people that, uh, really like Sandy that might want to buy it, live in it themselves, and flip it. And they might go $410,000, $420,000 max, maybe. But that I'd have to check. I'd have to blast it out and see. Is renovating it— is that an option for you guys, like, to put the money in?

I would do it myself. I know people.

Okay, so, but is that enough? Is that something you've considered? Like, hey, let me flip it and get more out of it and just wait?

Oh, for me? Yeah, yeah.

Okay, you've been thinking about this. Okay, not a bad idea. And Utah is also seasonal as well, so like, you know, selling in when it's coming in— right now this is the full service program that we do, uh, where we list it, I take care of the commissions and fees and all that stuff.

And that's why you see me right now for sale by owner, which also cuts another, you know, chunk out.

Exactly, yeah, because you're dealing with, you know, all that, but you're also limited to the amount of people that will see it, right?

Because if I go on to a better response with Zillow than I had with MLS.

Well, I don't know who your agent was. I don't, I don't know how that worked, but this, this would potentially be, you know, what, what you would get if we listed it using that service. And then the terms, you said, hey, not interested in terms because I need the cash. And anybody that does terms or they buy it and give you a down payment, they're not going to come up with $150,000. That's just not going to be—

I don't have that much in my savings.

Right. So the thing that I see that I can help out with And just being completely transparent is the novations. That's what it's called, where we list it on your behalf and then take care of that, all the calls, all that stuff for you. And then the cash offer—

snag with that is if you don't get the price you need, then I take it in the shorts.

Well, the thing is, you get to—

that's the downside.

Yeah, it is a downside, but you don't have to accept the offer. So for example, if we keep getting offers that like—

well, then I'm stuck here. Stuck here. You guys get paid off. So I mean, I'm going to carry you on my back and say, what's Christian there? Say it didn't sell and the market turns to total crap for 2 years.

Right.

I'm stuck here for 2 years now. Because you upgraded it.

Oh, okay. Yes. So the way we do the upgrades is we don't upgrade it until a buyer comes in and is like, hey, I'm going to buy it if you do this. And then they put down a significant amount of money down. So we're legit. So it's— so I wouldn't work on your house.

Okay.

Yeah. And from my experience in doing this business, whether it's in Utah, I do this all over the country, is the MLS is going to get you 99% of the time the best offer. Because there's cash buyers even on the market that are always looking. So if we were to put this back on the market, I think we would have a better chance. Obviously, you're doing it with your for sale by owner, which is fine, but I would be taking care of all the calls and relaying everything to you through that, which would get you at $428,000 minus your equity. I mean, you're going to be walking away with over $150,000 equity if we're able to sell it for the—

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