Real Estate Riches: Payneless Cash Buyer Secrets

What is going on, David? How are you doing, brother?

Doing well, Nate. How you doing, man?

We are live right now, bro. This is the weekly batch call where we talk about how we're getting deals and I'm doing great, man. I'm in Canada as you guys can see in my face. I'm actually in the chair. Yeah, man. If my Wi-Fi is bad, it's not my fault guys. The Wi-Fi in Canada isn't good apparently, it's America. That's right. David, bro, how are you getting for them holidays, bro? How's everything going on your end?

Yeah man, happy holidays bro. I'm just pretty much where I was just— I just picked up a nice gift for my brother that I'm excited about. I got him this MIDI controller, um, it's like a little keyboard with like pads making beats and things like that. So, um, I was glad that they had it. So I'm just finalizing some of my shopping, bro. A couple more things coming in from Amazon, but we should all be good. All the kids will be taken care of, all the nieces and nephews. And, uh, bro, you know, it's another job in itself, but I'm glad to do it, man.

I love it, I love it. Well, hey, I want to say one thing for everybody that's watching live or will watch this. A lot of the times people will slow down during the holidays. They'll just take their foot off the gas. But I will say that one of my— I would say always my biggest months in real estate have been during the holiday season, you know, with the holidays coming up. And that's because a lot of sellers, they want to sell at this time. Maybe they want the cash. Maybe there's just, you know, everything's coming together and they put everything off and they just— they're ready to go now. Um, I just listed a property in Fort Lauderdale, uh, with, um, did I tell you about that property that I listed on the MLS, David?

No, this one was recently.

Yeah, it was recently. So we just went under contract, um, a couple of days ago and had the inspection. The seller came back. Um, sorry, the buyer came back, asked her, asked for a bunch of contingencies. We were able to negotiate, but all this got done within listing the property on the MLS., within a couple days. Like, people are moving quick. So just because we're in the holidays doesn't mean people aren't, aren't moving, right? So I just want everyone to know that.

Great example for sure.

And David, um, for everybody that's watching, a lot of the— if you don't know how to list the property on the MLS, it's so, so easy. You don't need a real estate license, you don't need to be an agent, you don't need to get, you know, do all these tests. You just go to a website, you get all the information from batch leads, all the extra data that you need to fill in to put for the listing. And you— it costs $199 or $150 to list a property on the MLS. You get all the calls sent to you, all the texts get sent to you, all the offers get sent to your email. You negotiate just like you would with a normal buyer, and you can get paid either by doing an ovation, or you can just talk to the seller and just say, hey seller, I'm going to navigate this whole thing. Just pay me at the end of close. And just pay me through an invoice, pay me through a, you know, for a consultation fee or whatever you want to call it. And that's how I'm getting paid on this one. Instead of doing all this novation paperwork crap, I just had the seller sign and he's just going to pay me once the deal closes on what we agreed. Bada boom, bada bing, easy.

That's amazing. That's awesome. Keeps it smooth. Everybody's honest and straightforward.

Yeah. Because what I did on this one, David, is Uh, he wanted a, he wanted a cash offer. So I went out and got all the cash offers and I said, hey, these are what the cash offers are looking like. You know, you're going to get $330,000, $340,000, $350,000 potentially is your best one. I said, if we put this on the market, on the open market, you're going to get way more than that. And he's like, really? And I was like, yeah, let's give it a shot. And I said, I told him that if he put it on the market, he'd potentially make about $20,000, $30,000 more. So we listed it for $390,000. Sorry, we listed $379,000 and I bid the people up on the MLS up to $390,000. So instead of getting a $330,000 cash offer, we put it on the MLS and he got, you know, $390,000 after listing it for 4 days. Now it closes at the beginning of January. So in a couple, 2 weeks, but still, if you're not, if you had a seller that's like not like extremely like under the gun and they still want to sell and they want to sell for more, just like, hey, I can list this thing for you. And you can use the information again from Batch Leads. To get everything you need to list the property.

Wow. That's amazing. That's a huge increase. I'm sure he was happy with that. Is that the person we were talking about a few weeks ago? I think they wanted 3— they were talking about $350,000 originally.

And then they got $390,000. Yeah. Yeah. So it is huge, man. It's crazy because originally $350,000 is what they were thinking. Now, obviously there's commissions and fees. So you back that out on the commission, 2.5% for the listing agent, the buyer's agent, that's going to get his commission and the closing costs, but still making much more. And then I have my fee baked into that, right? So I was like, hey man, um, and what I did with him, just so everybody knows how I got paid on this one, is I said, hey, look, you're thinking about potentially taking a cash offer at $350,000. If I can get you above $370,000, for example, just if anything under $370,000, between $370,000 and $350,000, let's just, just give me $5K. Okay, I just listed it, no problem, but anything above $370, let's just split in half. So he's like, okay, that sounds fair. So we got— because he didn't even think he was going to get $370, right? So just $5K and then we split the rest in half, which is, you know, what is that? That's a total of $50,000. There's fees involved, but still, like, we both get out better. We both get out better.

Wow, that's huge. That's awesome.

Wow. Yeah. So today, yeah, no, it's so cool, bro. And this is the thing, guys, like cash buyers, they're always going to need a discount because they got to pay for, you know, materials. They got to pay for their hard money. They got to pay for all their holding costs. If you can get this thing on the MLS and it qualifies, that's always going to be the best offer, like hands down. That's just how it is. And David, I know you had a deal that you put on the MLS as well, right? And you got a good offer on that one too.

So you know how it is. That's why I did it, to get more. Yeah, yeah, it worked.

That's it. So what we, what we want to come to you guys today is, is talk about how to find cash buyers and when maybe they don't give you that offer. I just gave you that scenario where you can put it on brokerlist.com for $99 or $150, talk to the seller, just say, hey, look, I'm going to take care of everything, let's just get me paid at the end to close. I'm not a real estate agent, I'm just consulting and helping you through this. Okay. Um, and then you don't have to take all those stupid classes for being a real estate agent, right? At least I, I tried to take them. I was like, nah, bro, I ain't trying to take all these classes. Are you an agent, David? I'm not trying to—

no, I'm not. And I actually just got back from, um, a meeting with an agent, and they were asking me why, you know, maybe I should become an agent. And, uh, yeah, I was like, it's not, you know, it's not my main focus. Also, and With me too, I feel like just with how I like to focus on things, it would probably take me a month or two to like dive in, and then I can't really afford that month or two right now to like spread myself somewhere else, to be honest. Maybe, and maybe I'm not, but like I'm just focused on the mission right now.

So like I said And boom, that's it. I can listen.

It's lagging a little bit on my side, but I think you're about to come in more.

So, oh, it's, it's definitely that Canadian internet. Well, uh, so now that we've talked about, hey, if you won't list it, we've kind of gone over that. Let's talk about what you're doing and how you're working with cash buyers in the Long Island area. Cause I want everyone to know the secrets to getting cash buyers and working with them in order to bring them deals.

Yeah. So, uh, Long Island here in New York, being an attorney state, Um, it's not the same as, uh, the control through other states where it's just right through the title company. So here the attorneys have a lot of power. Attorney has to be involved in both sides of the deal, has to sign off on the seller's side, um, write up the contract and sign off. So, um, I've been doing a little old school networking recently which allowed me to bring in a couple more buyers, which was through an attorney, um, which is, you know, a little bit more direct. But, uh, through these two— through this attorney, I met with two buyers recently, and one gave me numbers of they're buying it, they want to make 8 to 10%. Another told me, um, 15%, and then kind of gave me like numerical number spreads for what they were looking for. But honestly, that was super helpful Um, because there's two conversations in a week with buyers of the same market. One can maybe take 8 to 10% on a deal, another don't.

That's a good one. That's a good one right there, bro.

That surprised me. And honestly, like, um, and maybe it ended up working, but I even like threw out the number, which maybe I shouldn't have did that in the first place. I was like, what are you looking for? Like, you know, 15% Um, and he's like, well, you know, maybe it's like $10K or $8K. And I was like, okay, uh, sir, cool, uh, that makes sense. Um, and, and I also spoke with someone recently who just kind of gave me a $45K number, like if they were gonna make $45K on the split, because we were talking, you know, if I'm gonna sign you a deal. And I learned from that buyer that it basically cost him $10K right now in marketing to get a deal, whether that's direct mail. Um, he's doing a little bit of pay-per-lead right now, but he's doing a lot of direct-to-mail. That's, that's popular over here.

Um, okay.

And we talked about, hey, if we're gonna make— he's asking me, hey, if we're gonna make $45K on a deal, what would you expect to have? And I said, you know, $10-15K would be great, which is about 30-33% of that 45K, which I kind of like to keep in mind. I think that's fair, um, especially if you're the one bringing the deal to the table. But you're— I like my flippers to make money, like I want them to, especially honestly as I get closer with them. And like, I have another lunch with one tomorrow, and like, I like— I want to keep bringing him deals. I want to make it consistent. I want to have that communication open. So if he makes 45K and I make 10, 13, 15, No problem, man. I'll do that all day.

They got to make money or they're going to go out of business, you know. Yeah. Yo, David, first of all, your iPad is moving. That's crazy, man. It's like zooming in and out on you, bro.

I don't know why, but cool.

So can you kind of tell everybody the benefit of, you know, going in person and taking them out to lunch? Like, what are you seeing by doing this?

So yeah. Um, and I'll say like, it's after having with like, say the buyer meeting with tomorrow, we're part of the same REIA, East Coast REIA. We're part of the same investor group. Um, we already met on Zoom once. We had a phone call and we went to lunch once. We're going to lunch again. So it's not like lunch right off the bat. Usually that doesn't happen. Um, And actually he invited me, you know, and I think it's only because I showed up to that meeting and he saw me, even though I talked to him like the day before, he saw me at the East Coast meeting on the Zoom. And then he texted me as we're on the meeting, like, hey, because I think he sees my face just like any other marketing. Um, so just to kind of give that backdrop, like, it's not directly, but there is a benefit. Like, I also just, you know, had an in-person meeting with an agent. Um, I think the benefit, uh, is, is the being a little bit more serious, is a little bit more real, at least for me, maybe for the way my brain thinks. Um, and in a weird way, it kind of stands out in this virtual world, in the virtual market. It's very— a lot's happening virtually, which I'm with. I love virtual. We're doing virtual right now. I'm not against it at all. But I think especially for where I'm at and in New York, um, and we like to meet with our sellers first before signing for the most part, because in New York, once you're locked in, you're like, you're not getting out of contract. It's not like other states. Like, you don't even need to file a memorandum here because it doesn't— you don't even need to because it's almost pointless. But, um, so it's a little bit different customary, and that that kind of, for me, like, to give that customary background, I think that's the main reason that kind of stands out a little bit here, um, because it's a little bit more belly-to-belly, like, with sellers, with agents. It kind of is that, um, so yeah, I think that's been a— that's been more beneficial since it's kind of in the vibe of this market. Like, we meet with sellers in person, the attorneys talk in person. Like, people usually like go to title for closings, like, or they meet with their attorneys. Um, especially me now, like, I want to, I want to build those relationships, so I'm more than open. And like, me being, um, flexible, it's a, it's a, it's a way for I can add value. Like, hey, I'll meet, I'll come meet you. Like, I'll come meet you at your office. And they're like, okay, this person's, this person's really trying to do it. Not a lot of people are calling and meeting up, you know, they're not being part of RIAs. They're not really trying to do that all the way. So that's, it's been a benefit to me.

Yeah, bro. I really appreciate you being so transparent with the fact that when you're meeting with these people, it's not like immediately off the bat, you're able to set up lunch with these people because they're busy and they're high level too. So they're not going to just drop and meet with anybody. So you've been able to kind of show them your value. Over time, and now they're, they're reaching out to you. So for anybody that's watching this, if you want to build relationships with cash buyers, it's not always going to be immediately the first phone call. It's, it's going to be over time. And, you know, we got— we're getting some love from Facebook saying awesome, guys. So that they're, they're resonating with that and, uh, resonate with that. And I think it's really important just everybody know that, you know, anything that's worth it of value usually takes time. So if you're going to be able to call someone immediately, become like best friends, then that person's probably best friends with everyone in the world, you know? So, so yeah, definitely, definitely don't give up if you don't get that, that immediate, like, connection, right? It takes time. People, people see so many people come in going through this game.

So definitely that's key, uh, especially— I think that's what exactly, um, I think that's helped me stand out a little bit. It takes— like, even this guy, you know, we've been in the same rehab for months, you know, but it takes— there's so many people, and they all say it, there's so many people who come in and out And there's so many people who, you know, what we talk about, like, you know, they're trying to make literally $60,000, $70,000 on the deal. Um, and it's like maybe $20,000 for a flipper and no one's going to do it out here for that. A regular house, the mid-range, I mean, the average house is $600,000 on Long Island. So you're not, you're not doing a flip for $20,000.

Yeah, no, 100%. Now we got, we got one question coming in and then we'll wrap it up, David. How's it going, Nathan and David? Do you think getting paid outside escrow will grow more and more if assignments get limited? I personally believe that if assignments get limited, people will find ways to either they'll like wholesale the LLC that has the contract or they'll get funky with it, right? Double closes. For me, it's just so easy just to be transparent with my buyer or whoever I'm working with and just say, hey, I made money. I brought you this deal. Just pay me outside. You know, either you can write me a check or you can have the title company, you know, wire funds. So to answer your question, yes, I personally think it's just easy whether assignments get, you know, make it more difficult now or they don't. It's just easy to do that when you have that relationship. So yeah, great question. I agree.

What do you think, David? Yeah, honestly, I agree. And I think it's already happening. And I think Nathan Payne is kind of bringing it to like, he's showing us, but it's not like it hasn't been happening. Yeah, like it just seems like it, um, and I think that's the beauty of it. Even like the same way, you know, Pacers with Sub 2, like, or Creative, like, it's not new. We're just— the conversation's becoming more, I don't know, transparent, or companies and businesses becoming more transparent as people work together and as, right, as we do more things in this business and as it develops. So I think it's already happening. And yes, I think it's just going to happen, happen more.

Love it. Batch Leads Nation, we appreciate our time with you guys. If you have any questions, throw it in the comments and we'll be able to read them. And we'll see you next week. Go get your cash buyers.