The Dispo Process NO ONE Shows You (Live Breakdown)

What is up everybody? We are live with Investor Thrive. This is the Investor Thrive live call where I show you guys how to do this business, how to use Batch, how to get things done instead of theory and thinking about me telling you guys like what you can do. Let's actually do it. Let me show you how to do it. I got a deal that I need to dispo, all right? And right now I got Henry, we got Jeannie. What's up Jeannie? We got Zeeshan. So Zeshawn, for all those don't know him, he's one of our leads managers at Off Run Homes and my wholesaling company. Jeannie and Henry on the mentorship. So what I'm doing, guys, is I think the best way to show people how to do stuff instead of just talk about it is to show them and give them opportunities to learn. So right now I have a deal that I need to dispo, and I am giving Henry and Jeannie and honestly anybody in my mentorship the opportunity to dispo with me. And whatever fee I'm gonna get for from this deal, we're just going to split, all right? So I'm excited. This is actually a JV deal. I actually have multiple deals I need to dispo, but right now we just got a deal submitted from Kansas City from one of my boys, Scott, and he said, hey, Nate, can you help me dispo this? So I said, of course I can help you dispo it. And now I'm using the batch call to show you guys live how I'm teaching people how to do it step by step in this process of how to find a deal nationwide, how to dispo a deal nationwide. Now, Jeannie, Henry and Zeeshan, have you ever sold or found a buyer for a deal nationwide before? Have you ever disposed a deal nationwide? Uh, no. Okay. Awesome. Some of you have experience with that. So a lot of people don't know how to do deals nationwide, right? It's pretty simple. You just find a buyer in the market that you're looking at. So we're actually going to take this from the whole, from the beginning process of getting the lead submitted. So you can look at this if you have a wholesaling company and your acquisitions team that gets a deal under contract. This is the process that you would do at this point. What happened with this lead is this is a deal that we got submitted to JV with us, and I'll show you how the process works. So this lead came into our system. Now it's time for us to take it through the DISPO process and find a buyer. Hopefully we can find a buyer fairly quickly, and let's get started. So everybody knows that the process that I teach is called the painless wholesaling process, right? It's finding your buyers first. But whenever I get a deal submitted to me, it's usually in an area that I don't have a ton of buyers that I'm like super tight with. So I have to go through the normal process of finding a buyer from start to finish. Okay. But normally I wouldn't have to, you know, do this whole process because I already have my buyers in place, hence the painless wholesaling method. But this one is one that got sent to us from Kansas City, Missouri. Don't have a ton of buyers there. I do have a buyer that I'm going to email that bought our last deal in the area. I think it'll be quick, but again, I wanted to show you guys how to do this. So step 1 of getting started in this business is get your mind right. We already passed that. Pick your market. This is a new market, so it doesn't really apply. Network and find cash buyers. Because this is a new area, we have to find buyers, not the painful way. We have to go and find somebody for a brand new deal, which is, it's whatever. It happens sometimes. You analyze the deal. We're going to do that. You find your leads. Then you negotiate, you make offers, then you dispo. Step 8 is how to market your deal out if you don't have a buyer already in place. This is an overview, everyone. So Jeannie, Henry, Zeeshan, this is an overview. This is not in-depth, but this is how to get rid of a deal. You can email, you can text blast your list, you can call your buyers, Facebook post, reach out to local agents, JV with other wholesalers, JV with me. And here's the dispositions checklist that you guys can use and check out. It kind of gives you each step. Right? It's a checklist. What I'm going to do right now is I'm going to show you guys step by step how we're going to go find a buyer for this deal. All right. First thing we do, Zeeshan, this is the first thing you did is the lead came to us from sellyourdeal.io. Someone came in here and said, my deal is already under contract. They clicked it. They filled out the form and the form came into our CRM. And here it is. Scott submitted the lead, the information. All right. So the first thing we have to do is we have to find out if we have the essential information to be able to dispo it. Okay, do you have the address, seller name, seller phone number, and email? We need to know how we can access the property. Is it a lockbox? Are we gonna have to schedule a time with the person we're wholesaling it with? Do they have a signed AB contract? Is it legit? Do they have something? Are they just daisy chaining and they don't have the contract and we're going to waste our time? I only want to work with people that have the contract. Do we understand the property description? Do we have pictures? And all the documents uploaded in our CRM. Does that make sense, everybody? If you're going to do a deal, you need the right information in the beginning before you can even get started. So next step is I don't want to dispo any deal if it's not a deal. If it's not worth my time, I don't want to waste my time. So now what I'm doing is I'm looking at the form and looking at the information that we got. So he has the estimated rehab budget at $50,000. He has the house under contract for $340,000, and the after-repair value of the property is $525,000. So just from those numbers, it sounds like a deal, but let's take a look. All right, so first thing you have to do when analyzing a deal is you have to find some comps. All right, so you can use Batch Leads to find some comps. I love using Batch and Zillow back and forth because it's easy to, you know, check on both sources. So this is the property at the moment. So it says that the value is around $432,000. Now that's not always super accurate, so you'd go to comparables and you would check. And the reason why it said that is because it just has a wide range, right? All right, so let's take a look at this. It looks like partially updated, at least the floors. It looks like a flip that maybe they just didn't want to finish. The flooring, the kitchen, the bathroom's okay. Looks like you just need to come in here and paint this bad boy. It looks like it has some issues with some damage here. Bathroom needs to be worked on. All right, so this thing does still need to be flipped. It's not terrible, but I don't see anything that's telling me that this thing is a super good deal. Let's try and look here and see what Zillow says. Okay, so let's look at this. This is a 4/3. Ours is a 5/2. $1,500,000. This is about the same square footage. This is a good flip, would you guys say? Yeah, that looks like a very nice one. Yeah, yeah, it looks like a brand new building for me. Very nice. So this has been on the market for 30 days. So if it's been on the market for 30 days, I know stuff is taking a little bit longer to sell, but I would say if this is taking 30 days, maybe it's— and it's not under contract yet— maybe it's a little high. Take a look at this. This one is under contract at $425,000. Okay, it's bigger than ours, nicer than ours. But look, this is a great comp, okay? So it's under contract. We can assume that it's under contract around $425,000, right? And look, in order for our home to get to this style, we'd have to spend probably $30,000 to $50,000 because look, it's got the brand new bathrooms, the kitchen looks nice, got the new countertops. And the home that we have, not bad, right? But we're gonna have to paint the whole thing, probably finish painting the kitchen counters. This is a very interesting one. Okay, so here it's got the backsplash, so that's good. It's gonna need paint no matter But all right, and the bathrooms, it's probably going to need a new bathroom to updating. So from looking around at what's selling, I think $425,000 is like pushing it to be the ARV. The fastest way I could find out is I could call this agent who has this house under contract that's taking back offers. I could say, hey, I have a flip that I'm potentially thinking about doing. What do you think something similar to like that in that condition would sell for? So what I would do is I would just call this agent and get some information right from him since he just had a property similar to ours for 56 days. All right, okay. So now that we've analyzed the deal somewhat, we had to find comparables to understand the after-repair value, which we have the after-repair value at around $425,000, $430,000 until I talked to Jake. So this guy said it's already been sold. So he actually texted me. I'm just going to tell him that I have a property similar to that one that I have under contract that I plan on flipping. And I wanted to ask you if I can sell it for around $520K. All right, he read it. So let's see. So I threw out the number $520K. I don't think $520K works, but I'm putting it high. So I think he can just like give me a solid reaction if he thinks— he's like, oh yeah, you can do that, or no. All right, we'll wait for that jabroni to respond. Now we're gonna have to calculate the offer for what we can buy the property for, or in this sense, we're JVing it, so we got to see what we could dispo it for. So let's take it to the calculator. Let's check out what the calculator's got to say. So we put the ARV at $425,000. $340,000 is the purchase price. We're gonna have to flip this thing, so we're putting ourselves in the position of the flipper. He's going to get hard money, 99% of the time, put money down. It's probably going to be a 4-month hold time just because it doesn't look like it needs that much work. 1% on the potential buyer's closing costs. And Scott told us it was going to be about $50K rehab. Yeah. If I want to make a $15,000 wholesale fee, this says that the flipper would be at $31,858 that they would lose. Okay. So what I would do, Zeeshan, at this moment in our CRM is we would message, we would email or text or call Scott. We just say, hey, ran the numbers. The numbers don't make sense according to our flip evaluation, our calculator. A flipper is going to lose money. And you can send this to someone in an email so they get the screenshot and they can see exactly what numbers we ran. Now look, we're using an expert right now. I'm texting an expert. He says, does seem kind of high on the ARV. Have you done any MLS comps on it? So I'm actually just going to send this agent the address of the property and we'll see what he says. So let's move forward on the next step of the process. So we just calculated it. We know that it's not low enough. So if this is a JV deal, which it is, we like the deal, we would send them a JV contract. You would just fill out the contract. That's how you do it. Here's the agreement. Now, this deal that we have, again, I don't think it's a deal for a flipper. Then you're trying to sell to a landlord buyer, and then it's not ready because look, the bathroom is jacked up. So this has to be sold to a flipper, and Scott has given us until the 11th to find somebody. So I'm out on this one. But that is how you analyze a deal. And that's the thing with you guys, if you have a company, you have your acquisition guys that are excited. They're just trying to get a deal under contract. They send it to the dispo team. The dispo team needs to analyze it and be like, hey, this is actually a piece of trash. But since you guys, Jeannie and Henry, you work by yourselves, you would just have to run these numbers. And you can get stuff under contract and try it if you want. I think that's a waste of time. That's why I tell you to do the painless wholesaling method where you have buyers and you can just ask them what they would pay. And luckily we have a buyer in this area that I can just email really quick. And just say, hey, we sold you our last property. These are two that we have under contract. Would you be interested? If he's not interested, I'm out on this. So the agent is saying, was it listed on the market when you spoke with the seller? Oh dude, my man's calling. Hello?

Hey, is Nathan?

Yeah, how you doing?

Hey, what's going on, buddy?

Hey, I appreciate you giving me a call. I was just kind of looking at potentially flipping this house and it looks like my numbers were off.

Yeah, well, that's why I was like, it'll be probably a little easier if I just give you a call back. You caught me right in the middle of something. That's why I didn't answer.

You're good. I know you probably got a lot going on, but yeah, no, I I was— when I was running comps, I was doing within the last year. So it was giving me higher numbers than what it looks like things are going for in the area right now.

We had a little trouble selling mine there on Horton. I think a lot of it was just timing. So you probably have a better advantage than I do because we're coming up into the more hot season.

Right.

So, but I would say you're probably still looking at somewhere between $415,000 and $425,000, man.

Yeah. Yeah. And I want to be safe too, because I have it under contract at $340,000. Right. So if I can sell for $430,000 and I put, let's say, $50K into it, I'm losing $15K. Like after everything's said and done, like hard money and everything else?

Yeah, I would definitely try and renegotiate that purchase price if you still want to try and take it down, for sure.

100%. Well, let me ask you this. So I look to flip and I'm out of Utah, but I'm trying to get into other markets that are a little bit less expensive than the Salt Lake market. Sure. If I am able to renegotiate this one and I still don't feel comfortable, do you by chance have any buyers that might be interested if I could get it low enough that I could assign it to you or you bring the buyer and I pay you a commission? Yeah.

I mean, I'm sure we could figure something out. We would be interested in it ourselves, but we would have to get it for quite a bit lower than $340,000. You know what I mean?

What would make sense for you? Maybe if I can get it negotiated low enough, I can just wholesale it to you guys.

Sure. Honestly, man, I would say we would have to probably be at $300,000 is the most we could pay for it. Okay, cool, man. Send me whatever you got. Take a look at it.

Hey, I really appreciate your time. I'm glad we made this connection. So we'll definitely do some business together. I appreciate it. Wow. Productive call. We're doing deals, guys. This is how it's done. Later, everybody.