Secrets To Close Your First Wholesale Deal With $0

What if I told you you could close your very first real estate deal without spending a single dollar of your own money? It sounds impossible, right? Well, let me show you exactly how it works. And if you miss this, you'll probably keep thinking that real estate is only for the rich. In this video, you're going to find out what a motivated seller really is, how to find them, and how to turn their property into your very first paycheck. By the end, you're going to see that you don't need cash, credit, or experience to get started. You just need the right strategy. We're looking for these type of people. Okay, in order to find a good deal, you need to look for motivated sellers. Okay, we're not looking just for someone that wants to sell, we're looking for someone who has some sort of reason to sell. Okay, so it will be your job to talk to sellers to quickly determine how motivated they are. What is a motivated seller? Okay, who are you looking for? A motivated seller is defined as a property owner who desperately needs to sell their property to alleviate the burden and stress the property is causing them. It's either financially distressed, like, you know, burden, they can't afford it, and they don't have the money, time, or motivation to fix it up. Here's what's important to remember: a motivated seller will gladly trade their equity for peace of mind. I've dealt with a lot of sellers who they know they're selling at a discount, they just don't want to deal with it anymore. Okay, think about that. A motivated seller is eager to sell their unwanted property that's stressing them out to you at a discount just to get rid of the hardship or the heartache that the property is causing them. There are dozens of situations that would cause a property owner to be motivated to sell, to be a motivated seller. Okay, number 1, lost their job or facing foreclosure. That's why a lot of people target pre-foreclosure lists. Don't have the money to pay the taxes and they're about to lose in a tax auction due to divorce or bankruptcy. Inherited the property and just don't want to hassle with it. This happens a lot of people, a lot of people inherit homes and they're like, I don't want to deal with that. We deal with a lot of properties in probate. Moved out of state and it's too hard to take care of it. That's why a lot of people target out-of-state landlords. Burned-out landlords who don't want to fix it up and rent it out anymore. So tired landlords is another great list. That's why people target these specific lists because it's like, okay, there's motivation or there's somewhat— there should be somewhat motivation behind it. It could be any one of hundreds of reasons. That's why it's kind of difficult, right, to know because it doesn't always have to be any of these. The point is these are properties where the owner is motivated to sell the property. And even though there's equity in the property, they would rather sell it quickly just the way it is, to get rid of it. To a motivated seller who's facing a hardship, they would rather have peace of mind by getting rid of their unwanted property than to try to keep it and fix it and flip it or rent it on their own. This is where we come in. Okay, that's your target market. Now, the thing is, if you have someone that's motivated and you make them a lowball and they don't accept it, you still have opportunities to make higher offers with creative financing or novations where you're just like, hey, let's partner together on it. And then, you know, if it needs any repairs while we list it, we'll take care of it. So again, that's why I if they don't accept your low wholesale offer, I wouldn't give up on it, but there has to be some sort of reason they're selling. Does that make sense, Henry?

Yes, sir. I find out the property address right here, and then he listed with the realtor, and then it sits on the MLS for 51 days.

It's on the market right now?

Yeah.

Yeah. So if it's listed with a real estate agent, we usually have to go through the real estate agent. But again, after we just did this whole thing, what's the motivation behind him needing to sell? You said it's vacant and he's behind on his taxes, you're saying?

Yes. I forgot where I pulled this from, but vacant. And then I already drive through this property sometime.

Well, I could call it, set appointments or live transfers.

I already called her and then I told her that my partner Nathan Payne will call her either by today or tomorrow.

Yeah. Okay. So what we're going to do is you're going to call her and you're going to, you're going to get her, do a live transfer for me. We're going to practice exactly what I'm showing you. If you can give me the warm handoff, I'm all about that all day. Give me an appointment or a warm handoff, a live transfer. We're in.

All right. So let's see.

Hello? Hello?

Noel, how are you?

Good. How are you?

Who's this? Henry. I work with Henry. He's one of the people that work on my company. He told me that you were going to be expecting my phone call. Is that right?

Yeah, I'm in the middle of a meeting, but I just muted so you can go ahead.

Oh, you're in the middle of a meeting. Do you want me to call back later? Are you okay?

I just need to listen to them. No need to talk.

Okay. Okay. Sounds good. Are you at work or something?

Yeah. I just on the voice all day. So whenever there are a conversation, I need to turn that off.

Okay. I gotcha. I gotcha. Well, kind of tell me a little bit. Henry said you were thinking about selling your property and you're, are you thinking about listing it or you, uh, have you already listed the property?

It used to be listed. I took it down because the listing agent doesn't know how to work on it. So whenever there is an offer, she just leave it for a few days before she actually told me. So we didn't get the enough good offers to go forward. So I just take it, list it on Airbnb. Just doing great in Airbnb anyway. So that's frustrating.

Frustrating.

Otherwise I'm not going to sell.

Say that one more time. I'm sorry. I was talking. What?

Because that's a money-making machine. If it's not a fair price, I'm not going to sell.

So you said at the moment the property is a money-making machine. Is that what you said?

Yeah.

Wow, that's amazing. Okay, that's good. That's a good thing that it's making you a lot of money. So unless you get a lot of money for it, you're not going to sell. Is that what you said?

I mean, if it's not a fair price, then I'm not going to sell. So if you have a lowball offer, just don't bother sending me.

Yeah, I understand. Well, let me look at the address really quick. Can you give me the address so I can just check and see what I could be able to pay?

Yeah, 11100.

11100, okay.

Orange River Boulevard.

Okay. So did you get a lot of lowball offers when you had it listed on the MLS?

Yeah. So like $210,000, $220,000. So it's not going to work.

Yeah. So that's probably frustrating. And this one is in Fort Myers, Florida?

Yes.

Okay. So you were getting offers, were they cash offers or were they represented by real estate agents?

Most of the time real estate agents.

So let me ask you this. Just, just, I'm just throwing this out there. I still have to do my research, but if I were, you said $210,000 and $220,000 were not going to work for you. If I were to offer you that money, but there's no real estate commissions, no fees, and I pay your closing costs, would that work? Because you wouldn't have all those commissions and fees in it.

Actually, anything below $300,000, I'm not going to sell.

Anything below $300,000, you said you're not going to sell? Okay, let me look. I'm just, I'm on Zillow right now. I'm just running some comps. I know That it said in 2000, it sold in 2021 for, uh, for $285,000. So is that when you purchased it in 2020?

Yeah.

You bought it for $285,000. Is that right? Yeah. That's why you're not taking any lower because you're like, well, I bought it for more than that. Is that, is that kind of what's going on?

Yeah. And the rent is actually over twice of the mortgage. The rent is $3,000, mortgage is $1,500. So I found no reason to sell it off.

So you mean Airbnb or the actual rent, like the monthly rent where you're just renting it to a tenant?

I do Airbnb, but beyond 30 days booking. So most of the time that the construction workers or nurse who gonna book for 3 to 6 months at a time. This time I have 6 months booking. So after I'm gonna list it, and then if it's not having any offer, I keep renting it to nurse or construction workers again. So it's another 6 months not being listed.

That makes sense. When you listed it and you took it off, what did you list it for?

I think the last July I listed for $330,000.

Okay.

You listed it for $300,000, but if it's not working, it's not going to be listed until the next contract checks out.

Gotcha. Okay. Well, I'm just looking at it right now. So 3-bedroom, 2-bath. There's a house right next to yours that's a 3-bedroom, 3-bath. You probably are aware of that one. It's just like right on the corner for $295,000. So that one's for $295,000, but it doesn't really look that nice inside. It doesn't look that updated. And theirs has been on the market for—

I just got remodeled at the end of 2021, new AC. So hopefully that adds a little bit of value on it.

Oh, for your property, you're saying?

Yeah, that property got remodeled right after I bought it. Then I put the new AC on, so the whole system was replaced.

Yeah, I'll be real with you. I'm an investor, so the only way I could make an offer like this work is if I were to buy it on terms and make you payments. I could pay more, but I would have to make you pay it in payments instead of all up front.

Oh, let's say if it's on terms, it still has to go through escrow because I'm not going to handle transaction all by myself.

100%. You know, we, we always go through escrow. We don't, we don't ever deal with things ourselves because we want to make sure the seller— and we want to make sure we're taken care of too. So would you open to— if we could work out a deal where we purchase on terms, would you be open to something like that?

I will be open for maximum 2 years.

Okay.

If anything beyond 2 years, it's out of my range. I would rather keep it for long-term investing.

Okay. If we were to work out something on terms, you said a maximum of 2 years, like before we did a balloon payment, is that what you're saying? Like before I paid it off? What purchase price would work for you if we were to buy it on terms?

Still, uh, at least $300,000. Anything below that, I'm not going to consider.

So $300,000 purchase price and a 2-year balloon. Let's see, I'm just running some math real quick. Did we do, um, let's see, no, uh, no interest payments?

Uh, I need to see your offer first, then I run my math all by myself to see if that works.

Usually what we do is we try to get into these deals if we buy them on terms with no money down. Would you be open? Would that be okay if we paid you $300,000 if we came in with no money down?

Does that mean you don't pay monthly payment as well?

No, I would, I would make monthly payments. I just wouldn't bring any money. I wouldn't bring any money down upfront. I would just start making monthly payments to you.

So if I ask monthly payment, is that $300,000 divided by 24?

24? Oh. No, no, it wouldn't be that. So we would, we would have it amortized over 30 years, just like a normal mortgage.

Normal mortgage.

Like a 30-year.

Yeah.

So it'd be amortized. It would be amortized over 30 years like a normal mortgage loan. And we would be making the monthly payments. It would probably be, let's see, we could probably make payments of like $1,400 a month on the property. Pay $300,000 and then in 2 years we would pay off the remaining balance that we would owe, which would probably be around like $285,000 or something like that.

So let me be honest with you, if I rather just live on Airbnb for $3,000 a month and wait for 2 years to sell it, and I don't know what price I'm going to list in 2 years, but it might be—

Yeah, the benefit of working with us if we were to purchase it on terms is you wouldn't have to worry about having it as a rental. You wouldn't You know, you wouldn't have the stress if it is stressful at all. You wouldn't have to worry about, you would just be getting mailbox money and we would take care of everything for you.

So is that money will go to escrow and I sold this mortgage to me and every chunk will be kept by escrow?

Everything goes through escrow. Uh, cause we have, we have to get an escrow company involved cause we don't just send you the money directly. It has to go through an escrow company.

So I have quick question. So basically because you don't purchase it right away, I feel the one who makes the mortgage payment every month, right?

Uh, well, if we did it through an escrow company, they would be making all the payments. I would pay and they would get— they'd pay for the mortgage. They'd take care of everything. You wouldn't have to do anything because we would have to— we would do it through a, like, a professional company that would take care of the payments.

Okay, it sounds better. Yeah, yeah, you can and send it to my email. Yeah, I probably will send it to your email, you said? Yeah.

Okay, so I'm gonna text you And if you could just text me back your email. So I want to give you my contact info so you have everything. But just to verify the offer that I'm giving you that I'll be more details on, we're talking about a 2-year balloon where we pay off the rest of what we owe in 24 months. Our purchase price is around $300,000 and our monthly payments would be to you would be like around, you know, it'd be around $1,432. Just at the top of my head, that's probably where we'd be. And you wouldn't have to worry about any maintenance. You wouldn't have to worry about any cleaning or anything because we actually were buying the house. So we own it. It's— you wouldn't have to worry about any of that.

Okay.

But let me ask you a quick question. What do you owe? Do you have a mortgage on the property at the moment?

Yes. What? All of my property have.

Okay. What's your mortgage? I'm just curious. What's your mortgage payment on it?

So property tax is $100 and then Insurance is about $200. So I would say mortgage interest and principal is about $1,300.

Okay. So basically what you would be doing if we purchased this way, we, you'd be cash flowing a couple, like $100 or a couple hundred a month without having to worry about the property anymore. Let me ask you, I think this is something that potentially will work for us after I run the numbers a little bit more and you're going to run your numbers, but I'm just curious, what would make you interested in accepting an offer like this? If you are, uh, you can just Airbnb it. What, Is there something like if we were able to do this, would this help you out, like take away some stress or make things easier for you? I just want to know how this would help you.

Well, I have 6 houses total, so I just try to de-risk it just in case the housing market crashed and I don't have 6 houses listed at the same time.

Hmm. Okay. So you have multiple properties. So you're thinking that if you can sell this one off and we can take care of the payments and take care of the house, it would help you from worrying about all the homes that you have?

Mm-hmm. Yep. And this one is the cheapest one. I'll let it go first. I have 2 in Jacksonville, all $600,000, 3 in California, all beyond $1 million. So it's too much stress to keep all of them on the same page.

No, I get that. And are they all listed at the moment or are they, uh, cause I might— Okay. Cause I might be interested in looking at more and buying them like this. If this is something you're open to.

Yes, you can look at my 2 houses in Jacksonville if you are really interested in Florida.

I am. Yeah.

Or, yeah. And, or I can text you in the future. Not right now. My property in California is doing great. So I'm going to keep it for a while, but I'll text you whenever I want to sell it.

Yes, please do. And by the way, my name's Nathan Payne. I know it's the first time we talked. Henry, I work with Henry. So I'll text you, just text me your email. I'll send you my offer over and, um, send me over those other properties I can look at and I'll make you an offer on those as well.

All right.

Thank you. I appreciate it.

Yep. Thank you. Talk soon.

Yep.

Bye.

Okay.

So for everybody that was watching that, so this is the next step. Great job, Henry. I mean, wow.

Bye, Nathan Payne.

Look at that.

That you offer her on a seller finance, right? I hear some term like that.

I just offered her nothing down, like at a 4% interest rate to take over her mortgage for 2 years. And it apparently can rent out for $3,000 and the payment is just $1,400 that we'd have to pay her, we would be cash flowing like $1,600 a month.

Dang, dang, Henry, we're about to do this deal together, boy.

Yeah, so I'm going to send her this. So let's go over this. I'm going to make a copy. We're going to call this offer options for Noelle. Her name's Noelle, correct?

Yeah, N-O-E-L-L. Yeah, that right.

Okay, so you just make another offer option, property address.

Let's go right here, the address right here.

Yeah, so I actually, uh, yesterday at midnight, right, so I'm looking through the Facebook real estate group and then I saw her post and then, uh, I say, okay, let's, uh, let's call her and then, uh, let's, uh, Nathan help me out.

Yeah, freaking let's go. And, and, uh, let me just make sure I understand. So you, you saw, you got this from Facebook?

Yeah, so I'm joining many real estate Facebook groups, and then yesterday when I searching through that, and then I see her post, and then she say that she listed her property through agent before, and the agent ignore her, like they don't pick up her phone call and then text message like that. And then she fire that realtor, and then she asking for— she posting that looking for another listing agent. But I like, nah, that's easy. Going to get a lowball offer again. So I think like, let Nathan Payne help her out. Yeah.

Yeah. There you go, brother. I love it. I love it.

Yeah. And actually, I want to learn how to do a sub 2 and then a seller finance 2 when they deny my cash offer.

So all you have to do, Henry, is you just got to look at whatever payment you agree to pay them, is it going to be less than what you can rent the property for? Right. So she's saying that hers rents out for $3,000 a month. I don't believe that. But if we just look at what rents are going for in this area and by the way, this obviously before you buy a house, you do a lot more research. So we're going to do more research on it. But if you look at what's for rent in this area, you got $3,300. Our house is here, so you can't always compare, but this is $2,600. And look at this, like, ours isn't necessarily like that, but it's a 2-bed, 2-bath. Ours is a 3-2, and it's $2,600. So this one is $1,600, and this is an apartment. So if we pay her $1,432 a month and this apartment goes for $1,600— I'm just looking quickly, but it does seem like a good deal for rent out there.

Yeah, I think on that property, she mainly do Airbnb. She don't rent out to other people.

Look at that, $2,000. I'm always skeptical about things like this, but we're just checking it out. Okay, so I'm trying to show you that if we buy this for $300,000 and the annual interest rate, let's just, we just put it at 4%, we didn't put any money down, that's how much we would pay every month, $1,432 on the payment. Okay, and that's what it's really, whatever you can agree on. So I said, hey, I'm not gonna bring any money down. Honestly, Henry, like, this is an amazing deal. Like, you don't have to put any money down and you get a property that you can rent out. Yeah, so this is the offer that I would make her. So let me put this into the offer. So the The price is $300,000. We're giving her what she wants. Option consideration, honestly, monthly payment is going to be $1,432 monthly payments.

Uh, yeah. What is a balloon payment, by the way?

That means that in 2 years, after 24 months, we're going to have to pay off the rest of the house, which means we're going to owe $289,219. That's how much we're going to have to pay her in 2 years. Does that make sense?

Oh, it makes sense now.

That's the balloon payment. So if she gave us, you know, 5 years, it would be $60,000. And that's what we would owe her. And let's say we sell this house in 24 months for $350,000. Then we would make the difference of $294,000 of what we owe her and $350,000. And for all that cash flow we would have made in the, in the different, in the in the meantime. Oh wow. So that's why seller finance is cool, because if you can get into a house without any money, rent it out, cash flow, sell it later, you made all that money.

Oh wow, wonderful.

Let's see. Thank you for taking the time to explore our offer. We hope you see the benefits of price, convenience, and security that we have worked to create in our program. We look forward to working with you soon and making the sale of your home a stress-free and easy one. Call me if you have any questions and want to discuss options. Thanks for your time. Okay, so something simple like that, like we don't need to get too crazy. I'm going to take this, I'm going to make it a PDF, and I'm going to email it to her. And let's see if she responded with a text.