Wholesaling Real Estate: Payneless Flipping Secrets

What is going on everybody? It is Nathan Payne. I am here in my beautiful home, my beautiful virtual home. Just kidding. I'm actually in Canada in a basement at my father-in-law's place while I buy a house in Canada. Yes, I've moved to Canada to do real estate. Well, actually I didn't move specifically to Canada to do real estate. I moved here to be near family, but I'm going to be doing deals virtually from Canada because you know what? Because this beautiful job, because of batch leads, because of amazing softwares, because of technology, you can do deals from anywhere in the world. You can do deals anywhere. I don't even need to name a bunch of different countries, okay? You got— you get it. If you— as long as you have a cell phone or a computer, you don't even need a cell phone, as long as you have a computer, you're able— a laptop, you're able to do deals from anywhere in the world, which is absolutely incredible. So guys, I want to tell you about an experience that I've had using my negotiating skills that I've learned through doing this business for a long time. So you guys can learn and go, go do more deals. And of course, the process that I use is called painless flipping. It's the way of not making offers until you understand the situation of the seller and not just throwing out lowball offers. And I used it to even get my own home that I'm buying right here in Canada. I'm buying a farm, and now it's— now it's not a crazy farm, it's an acre, okay? It's got a third of the acre is farm, like soybean, uh, like land or soybean. I'm not even a farmer, I don't know what I'm talking about, okay? It's got some— it's got some apple orchards, it's got some soybeans that I'm going to, uh, not continue to have that are already on the farm, and I'm gonna use corn and grow some other cool stuff, okay? I'm not a farmer, but that's one of my goals is to grow some food. That's what I want to learn how to do. But anyway, I want to tell you guys how I use the process of negotiating to get this deal, okay? Because I think it will help everybody on here. And of course, I love Batch Nation. I do this call, uh, on batch leads. I do it for you guys so you guys can learn how to do more deals. And I believe if you want to do more deals in real estate, it's all about how you have good conversations with sellers, with buyers, with agents. It's the way you navigate the process. That is how you're going to go do more deals. You got to do it ethically, and you have to do it in a way that you feel confident in being open and transparent about what's going on. Okay, so let me tell you the process of how I got— I moved to Canada. I got here last Wednesday, and within 6 days I found a house to buy, got it under contract already. And I'll explain the process. Okay, guys, so you guys can learn. Not only can you do the process I'm talking about to do wholesale deals, to do fix and flip, find good deals, but you can do it to find your own property. On the MLS. And we all know batch leads, you can find properties through agents. But I'm going to tell you guys again the process that I use to get my own personal residence at a discount that I'm buying right now. So first off, let's talk about the house. So we saw a couple homes and I had kind of the things that I wanted in mind of what I wanted to buy. I wanted to buy a property that was going to have fields, green grassy fields. So when I wake up in the morning, I can take a deep breath and look over the fields and say, "Ooh, I live in the country." That's what I wanted. I've lived in the city pretty much my whole life. I wanted to go— the rural life was calling me. So I decided, "Let's go. That's what I want." So I found a property that had it. I wanted to be able to rent out the basement, have a mother-in-law suite, or have an opportunity where I can have family members live in the basement or people, guests, and it's completely separate. So this house had a complete separate entrance., so people can stay downstairs. It doesn't bother me if I live up. I can live in the whole house or I can live down upstairs. Someone lives downstairs. Okay. Um, and cause that's how my house was in Salt Lake City, Utah before I sold. I had a base— I had a basement apartment, so I didn't have to worry about a mortgage payment because I had renters down there. We'll see if I do that here, but I just like the option. Um, another thing I wanted was, uh, let's see. I wanted, I wanted some— well, I didn't really need apple trees or fruit or anything, but I came with that. And another cool bonus that this house came with was a sauna. A sauna where you can sit in and sweat. That— is that, uh, was that something I was looking for? Not really, but it just was there, so I thought that was pretty interesting. So anyway, so that's the house I wanted. We found one. There was a couple options, um, that met our needs, but I I found one. Okay, so what was— how did I approach this situation? What's the negotiating structure or process that I use in painless flipping that I could apply to my own personal home I'm buying or to other investments I'm buying? So I'm— a lot of agents, because I'm looking at homes that are on the market in Canada, there's not like a huge off-market inventory right where I'm moving. It's pretty rural. So the MLS was where I needed to look. Now, can you get deals that are on Uh, the MLS where sellers are motivated. Heck yeah. Okay, there a lot of people don't know about wholesalers, about cash buyers, so they just list their properties. Okay, so I'm looking for properties, and as I'm calling on properties, I have agents galore just being like, can I represent you as the, uh, as a buyer's agent? I'm like, no, no, no, no, this is what you can do. If you have a property that is off market that nobody knows about because it's not listed, let me know and I'll work directly with you, and I can— you can take both sides of the commission. So they're like, okay, I don't need a buyer's agent to represent me. Okay, I know how to look online and look for properties and listings. That's what agents do, in my opinion. Like, a buyer's agent most likely is just going to throw you on a list and send you a bunch of stuff that you can already see if you just set your filters right. So if you're thinking about getting a buyer's agent, they're not going to do really much for you if you can know how to use batch leads, if you know how to use you know, technology to look at properties for yourself. So that's what we did. I filtered properties and I was calling about stuff and agents are like, can I represent you? I'm like, no. So I found a property that I liked and I reached out to the listing agent. Okay, this is the— we're getting into the negotiation strategy you guys can learn from. I called the listing agent and I say, hey, I'm interested in seeing the house. Can we go see it? Okay. That's another thing that's really helpful if you're doing deals on market, guys, is if you can go see the house, It adds an element to, okay, this person is serious. All right, now if you can't and you're doing deals virtually like I'm doing now from Canada, you can't see the house. All right, maybe you can send somebody, maybe you can— not necessary to go send someone. You just explain to people what you do. I'm an investor and I invest out of that state, but I can't see it, but I see everything I need. Okay, so anyway, I went and saw the house, which is a bonus, but if you can't do it, totally fine. After looking through the house, I didn't jump and give an offer, right? I tried to understand the situation. Right. And a lot of agents do not want to tell you what's going on. Right. They want to hold all their cards to their chest on why the seller is selling or whatever. Now, on this property, the house was listed at about $80,000 more, but there had been a recent price drop. So they had gotten overzealous on what they had listed it for. Nobody was interested. Now they dropped it to a realistic price. A couple of days before I saw it. Okay. So I knew that was the situation. So I reached out to her as I'm talking to her after seeing the house. I'm like, look, I'm not represented by a real estate buyer's agent. So would you be willing to represent me in this transaction so you can either get both sides of the commission? You can represent— you're already listing the seller, right? You're listing the home for the seller. Can you represent me and you can take my commission? That way you can make 4% here in Canada. It's 2%, 2%. Um, that's usually what they go for in, um, in the States it's 3 and 3 usually. But I was like, you can take my side of the commission, or if you want, you could just give the seller the 2% discount, and that way he can save money. She didn't tell us what she was gonna do. She's like, oh, no worries, I'll take care of it, but I can represent you. She didn't say yes, I'll give him the discount, or yes, I'll take the commission. She just said Oh yeah, I can represent you. I didn't really go into how she was going to give the discount. I was like, whatever, as long as you can work with us. And that way, like, it gives an incentive to the agent to want us to buy the house because they're either going to make more money or they're going to give their seller a better deal. So that's a win. So that's what you want to do when you're working with the properties off market. So that's check. That's what I did on the negotiation. You got to make— do your best. To have them represent you. Now, if they can't do dual agency, if they can't do that, they can't represent you, then say, hey, is there someone from your broker— brokerage that can help me out? Because then, you know, they might have an understanding where they might be able to help each other out. Okay. So that's what happened at that point. And again, I haven't made the offer. So we say, okay, we're going to go crunch our numbers and we'll call you. Right. So the next day we call her and we say, hey, you know, This is how we made the offer. We said, hey, after looking at the property, it needs— it needs this and this and this. Like, I just don't lowball people, right? Like, you got to give a reason why you're coming in lower. You can't just say, hey, I want to come in here and stay tight-lipped. I mean, you can, but I don't think it's going to work that well for you. So I just said— we said, hey, you know, we ran our numbers. We're coming from the States in this certain situation and we have cash. 'cause we have cash. We need to buy a house cash since we don't qualify for a mortgage here 'cause I don't make Canadian money right now. So we have to buy something with cash. So I said, hey, after this and this and this and this, there's a dead tree, you know, we— the kitchen downstairs, 'cause there's a kitchen downstairs in the separate unit, dwelling unit or whatever you want to call it, ADU, mother-in-law basement. We're just like, the kitchen needs to be updated. We gave her a couple of things and we said, look, We're coming in with cash and we know that obviously if we had financing, there's going to be other people that come in with financing and can pay more. But we're paying cash. You're representing us and we see these things that need to be done and we can close it really fast. We don't have— we're not contingent on selling our house. We have the money right now. So that's something beneficial. A lot of the people that are making offers on the MLS, they have to sell a home. In order for them to get the funds ready to buy. So that means, you know, it's contingent on the seller home. That can take a long time. That can— stuff can fall through. So I said it's not contingent. And again, I haven't made the offer yet. It's not contingent on the sale of another home. We're cash. We don't need to qualify for financing. So we're good to go. We just need a quick inspection just to make sure there's no major issues. So I need a due diligence period of like a quick due diligence period. I just said 5 days just to check everything. So I started naming all the things that are beneficial about my offer. And, and I found— also found out that the seller wanted to close quickly. Obviously, that everybody wants to close quick, they want to sell their house. So I said, we can close on the seller's timeline, uh, we can even— they can even leave some stuff behind if they want, and we can take care of it. We can take it to the dump, like anything that's convenient. But because of this, we are, uh, our offer is $670,000, right? That's, that's the offer we came in. We came about $50,000 lower than the, the the listing price. And that's, mind you, that's after they had lowered it already. So the seller— and by the way, I knew this is $50,000 than the actual listing price, and that's after they did a price drop. You already know that this was going to be lower, and I knew they weren't just gonna— she wasn't gonna jump for it. But I know because she represents us, and I know, um, you know, the way I had articulated the offer, how I presented everything before And, um, and I even said, hey, I know this is a lot lower, but this is where, you know, after everything and the amount of cash we have, and considering that we can close quickly, I think this is fair. Uh, this is something we can do, we feel comfortable with. So then she came back and was like, ah, you know, that's a lot lower, but I can ask. So that's when the negotiation started, guys. Now, would I have been ecstatic if he accepted $670,000 straight off the bat? Oh yeah, of course. But that's usually not how things go. There's usually back and forth, right? And I hadn't I talked with my wife and we knew that, you know, we were going to be okay if we settled higher, right? Maybe even like splitting the difference. So what happened is the agent went there. She said, hey, you know, he actually needs to be at $699,000. We came back and we're like, well, we can do $682,000. Back and forth, back and forth. We settled on a good price below $699,000. Obviously, like, we were able to negotiate it. I don't know if you guys care about all the numbers, but all I'm trying to say is in the negotiating process, you can use the process I'm telling you right now, not only for real estate deals, but for your own personal residence. Okay. And that's by going on the MLS, uh, talking, don't have a buyer's agent, go directly to the listing agent and say, hey, you can represent me on this transaction and you can make both sides of the commission. 'Or you can just give them a discount.' Oh, we don't— if they say, 'Oh, we don't represent, we can't do that, we can't— that's, uh, we don't do that here,' just say, 'Oh, that's fine, just give me someone from your brokerage that can represent me,' and then they'll figure it out, right? They're still incentivized. Then from that point, you go see it, or you see all the things that it needs work on, and then you make your offer. But before you lowball them, because you don't want to just offend them, you'd say, 'Hey, you know, I understand, uh, this might be something that the seller doesn't want. I don't want to offend anybody, but considering this and this and this and this that we saw, uh, and the fact that we can close within 2 weeks, we can, you know, the seller can leave stuff, uh, we're not contingent on the sale of our property, we can't— we feel confident offering this. Pause. The agent's like, oh, you know, it's a lot lower. I get it. Will you just go see what the seller thinks. Come back, and it's a back and forth, back and forth, okay? If you guys are doing 70% of ARV minus repair minus rehab and you're just making your low crappy offer and you think— and nobody's accepting it, no wonder you're not getting deals. It's— that's not the way you go do things. You're supposed to strategically— it's a negotiation, it's a song and dance. So I hope this experience, or me telling you guys how I just got my own house in Canada, how I bought my like kind of like the dream, dream home. The house isn't like the dopest house. Like, I'm, I'm pretty minimalistic. I don't need something crazy. But, uh, the view and the sunsets and the farm and being out there with the family barbecuing, having a good time on, on my land, uh, it's, it's not only like an acre, but it's like surrounded by a bunch of farmland. So I feel like I got thousands of acres of farmland even though I don't have to take care of it, which is great. So, um, remember this. I hope this has been helpful for all you guys to, to know that, um, this is the strategy that I use not only for, uh, doing deals on market, off market, uh, but I do it for my own personal house. Okay, so this is the journey. Uh, if you guys want to learn how to flip houses the painless way, do painless flipping, uh, just follow me on my journey. I'm doing it all from Canada, uh, doing deals in another country just for my laptop. I'm going to show you guys exactly how to do it and it all starts with me buying my own house in Canada and getting a deal and getting it at a discount even though it was already dropped. So go ahead, take action. I hope this is helpful to anybody. Sorry if this wasn't a very formal video. I'm moving so I'm in the middle of moving so I just wanted to stay consistent and come to you guys because I love all of you guys. Just want to let you know how it's going. Uh, wish me luck. Hope the inspection goes well. We don't find anything crazy. I doubt that we will, but, uh, we will see you on the next video next week. Later, everybody.