Wholesaling Real Estate: Payneless Flipping Secrets

What's going on, everybody? What's up, Nathan Payne? How you doing today, bro?

Yo, my man, I'm doing great, brother. It is beautiful. It is sunny. Perfect day for closing some deals.

It is, man. It is. And this week we've closed $91,000, and that's exciting. And we're going to talk to you guys today a little bit about that and how we got that done and how you can do it too. So Without further ado, let me explain. Let me tell you who I am, just because you might not know who I am, and you might be like, why should I listen to this guy? My name is Nathan Payne. I've been doing business for about 6 years, and I've learned how to do— how to wholesale and how not to wholesale. And my whole goal is to make wholesaling painless for you guys, because it has been difficult. It's been a very difficult road trying to figure out A to Z of wholesaling all at once when I first started. So my goal is to help you guys master the the first steps of wholesaling. And that's what these calls are about. Okay, that's, that's, uh, that's me, Nathan Payne. Nathan Valley, who are you?

Uh, yeah guys, my name is Nathan Valley. Um, done a bunch of deals, a bunch of different states. Um, contracted over 100 deals in, uh, in a single year. Um, some of you might have seen my 30-day challenge I did a while ago to where I picked totally brand new market, no resources, no contacts, nothing, and did a $20,000 deal within 30 days without spending any money on marketing. Um, so yeah, done a bunch of stuff. And, um, yeah guys, there's a lot of people out there struggling to wholesale real estate. We don't want you to be one of them, so that's why we do this.

That's exactly right. So our plan today is to talk to you guys about the deal, the $91K deals that we did today, how we got them done, and how you guys can learn from that experience so you guys can do deals. Because this was not, um, let's say conventionally the way that people wholesale. Well, a lot of the traditional way is Well, actually, we'll get into what the traditional way is and how you guys can leverage the challenge that Batch is doing right now today of reverse wholesaling and the strategy that we're implementing and how you can do more deals with less leads. But we'll get into that. But that's the plan for today is to tell you guys how we did that deal and how you do more deals. And our promise, as always, is we're going to answer your guys' questions. We usually have time for calls, but not today. We're actually bringing on one of our special guests that brought us a deal that that we did, and we're going to explain to you guys how we navigated that. So, but our promise is we're always going to answer your questions. So if you guys want to right now, if you're watching this live in the chat, go ahead, tell us where you're watching from. We love to network with people. We love doing deals all across the United States. So if you put us, tell us where you're from, we might be able to reach out to you and do a deal if we need help. Okay. All right. Let's check this out. We got Kevin. Re-engineering is easy way to close deals without money. Ooh, okay. I like that. So Nate, go ahead. Do you have something to say with Kevin?

No, no, no, no. Go ahead. Go ahead.

Well, I was just going to say, Nate, let's talk about the way people do traditional wholesaling and how we're doing things different. Uh, we'll get into how we're doing things different, but let's talk about what is traditional wholesaling for people that are watching this. I don't really know what he's talking about.

Love it. So guys, traditional wholesaling, some of this might sound a little bit familiar. Um, So traditional wholesaling is step 1, let me go spend a bunch of money on marketing. Let me, you know, talk to a bunch of sellers, make a whole bunch of offers and get a property under contract. And then step number 2, let me run around all stressed out for the next, you know, 7, 10, 14 days or whatever my inspection period is. Let me run around all stressed out, hoping and praying that I can find a buyer to buy this legally binding contract from me and fulfill on all these promises that I made to the seller. But guys, it's completely backwards way of doing things, right? And I learned this the hard way.

That's crazy. You might hear that and you're like, what?

One of the biggest, biggest lies ever told in real estate, and it's a really popular one. I guarantee you guys have probably heard it because people say it all the time and I get triggered every time I hear it. And the saying is, oh, if you find a good enough deal, the money or the buyer will find you. Guys, does anything in life work that way? No. Wholesaling real estate is no different. And I promise there's probably some people watching this to where you're like, oh my gosh, that's so true. I had a deal and I had to cancel it because I couldn't find the buyer. I couldn't find the money in time. And it was a smoking deal on paper, right? So, guys, same thing with, with wholesaling. So when we look at wholesaling, right, it doesn't matter how good of a deal you have under contract. You don't have a buyer that is ready, able, and willing to buy that from you. You don't make any money. So from a business standpoint, we get paid by the end buyer, the cash buyer, the investor. So from a business standpoint, that is who our ideal client is. That is who we are truly— that's where we need to start. So, and then everything kind of comes from there. And no, I'm not necessarily— some people might be thinking of the term, well, Nate, oh, that sounds like reverse wholesaling, right? Which is let me find the buyers, ask what they're looking for, and then go find it. It's close, but there's still some flaws with that as well. And that's right, flipping comes, comes.

Yeah, and that's what I want to talk— because Batch did a challenge today, and that's why I was on the challenge, and they were teaching reverse wholesaling, right? I think honestly reverse wholesaling way better than the traditional way, right? Because at least you have, um, you know, someone to, to work with if you find a deal and you can let in.

It's in the right direction, like it's so close, but there's a few, few tweaks needed because— and one of the main ones being is if you guys have tried to do reverse wholesaling, right, which is step one, let me find a buyer and let me chat with them. Well, you guys might have run into buyers where it's like, yeah, Here's my criteria, don't waste my time. Or, ah, reach out to me when you have a deal, right? Or you don't get much out of it because we're coming to them empty-handed saying, give me, give me, give me, give me your criteria, give me what you're looking for and all this stuff.

Exactly. And that's, that's what we talked about on the challenge today, guys, is the— if you just go and you do reverse wholesaling, which is better than the traditional way, I tell you it's better, but if you only do it for like 2 or 3 people, you're only working with those 2 or 3 people and you're at their mercy. You're basically, if you don't find something that meets their criteria, you're like, well, what do I do now? Right? Like, or if I don't, if I find a deal that is a good deal, but they just don't want it, do I just throw it away? No. So what we're telling you to do is if you want to build the best relationships, if you want to do the, like, build, you know, great, um, connect great with buyers, if you have a deal, whether it's yours or you're leveraging another wholesaler's or someone else that you know, That's how you really build great relationships with buyers. You have something of value. If you can go into every conversation with value, like a value mindset, like, how am I benefiting this person? That is how you succeed. Okay, Nate, you want to elaborate on that? Because that's, that's pretty much— it's so important to lead with value in everything you do.

Kevin here said, I made that mistake in my first month. Kevin, well, good for you, man. I made that mistake like my first 2 years. So you're off to a better start than me, right?

Right.

Um, right. And we all make mistakes. It's okay, right? And a lot of times we just— we don't know any better, right? That's why I got started with traditional wholesaling.

I just—

I didn't know any better. I didn't know what the other options were, right? And guys, another really big thing I'm going to talk about, the big elephant in the room that nobody brings up with wholesaling especially traditional wholesaling. My biggest issue, especially early on in my career, was I knew that, you know, there's a lot of value that I add to people. I know there's value that I add to sellers, to buyers. I know this is a service that is needed, and I was doing everything the way that everyone says to do it right, with traditional wholesaling. But there was a part of me that I couldn't help but feel like I was being just a little bit dishonest, right? Calling these people saying, hey, I'm a, I'm a cash buyer, I can, I can close in 30 days, I can do this, I can do that. I'm making all these promises when I had no idea, I had no clue if I could do these things, right? And a lot of people, especially when they're, you know, just getting started, a lot of people think, oh, I need help with consistency, right? Oh, I know what to do, I just have trouble with being consistent, or I need someone to, to hold me accountable. Guys, I would disagree. I promise there's probably certain areas in your life where you are incredibly consistent. In my experience, for me, what I felt— because I thought that was my issue too— but for me, it wasn't that I had an issue with being consistent. I mean, good goodness gracious, like, I would wake up at 4:00 AM every day to go to the gym, but I couldn't I couldn't make calls consistently. Come on. It's not that I had a problem with consistency. It was that I was having this internal conflict of to where I know what I need to do, but it feels like I'm being a little bit dishonest. And that's where the inconsistency came from, right?

Right.

So that's what drove me for a long time, right, to figure out a better way. I'm like, there's got to be a way. I know there's value here. And so that's where Painless Flipping comes into play. And yeah, Nate, you and I got connected and, you know, Painless Flipping, you'd kind of shown me, hey, you know, this is what I see works. And then, you know, got to add a couple pieces to it. And it's kind of the masterpiece that it is today to where guys, you know, you're like, okay, well, Nate, I can't talk to sellers, make offers and get stuff under contract. And I can't go to buyers first. And like, well, what do I do? That's right.

Yeah. Now, everybody, we're not saying that, like, locking up properties is wrong. That's not— that's not what we're saying. Locking up properties and getting them under contract is right. If you have a deal that is— you will buy yourself and you know is a deal, period. And those— those are easy to determine. Those are like whales, right? They're like 50, you know, super low, like 50% of Zillow. And you're just like, that makes sense. But the main issue is like most of the time You know, sellers want what Zillow says, right? And they feel like that's what their house is worth, right? So for you to have that negotiation and hit them right in the gut immediately and say, I'm going to offer you 70% of Zillow minus repairs, minus fees, they're going to say no, right? And most of the time they're not— they're going to say no. So what we're talking about is on those deals where you're kind of— they're kind of in the ballpark, that you kind of feel like it's a deal, but you don't want to commit and say, I can buy your house, and then you blast it out and you don't get any love, and then you got to go back. Like, you don't want to be in that situation. So what we're talking about is leveraging relationships with cash buyers that you've built so you can get those deals done and have them sold before you even say, seller, I can do this, let's sign the contract. And that's what we did on this deal that we made $86,000. And in a couple minutes, we're going to have my friend who brought the lead that didn't know anything about real estate. He was able to have just the key part that I think is super important with the seller the key conversation to find out she was a qualified lead, and then we took care of the rest. And that's why I want everyone to know on this call is it's about the conversation. It's about understanding what they need, and then you can do the rest, right? It's not about just let me lowball everybody that I can, and I'm going to be able to— if I do get a deal, let me lock it up and try it. No, you guys are passing up on deals left and right, but you need to know how to navigate the sales process correctly and use painless flipping when you got tight deals, which happens. That happened on this deal. It happens all the time.

Yeah. Yeah. And guys, I just want to clarify something real quick when it comes to, hey, am I, am I doing wholesaling the ethical way? Am I going about it the right way? For me, it doesn't matter if it's a big deal or a $2,000 deal. Think of it, it's more about the expectations. Even if it's a home run deal and I can sell it every day of the week, if I have to tell the seller that, oh, it's my contractors coming to walk through, I'm going about the business the wrong way, right? And guys, I promise you, there's a way you can do the business to where everybody knows exact— guys, I, I just went live yesterday where I spoke with an agent. So she's like, ah, I don't want to deal with all these wholesalers and their inspection periods. I said, great, totally understand. And then I had a conversation, told her 'Hey, here's how I would be wholesaling it.' Now, I didn't say it exactly like that, right? There is a little bit of secret sauce in there as to how we word things, but there is a way to where you can be completely transparent. And you know what? It makes the business so much easier. Imagine if you didn't have to hide anything. Imagine how much easier these conversations would be if you got to tell the seller, you got to tell the agent, 'Hey, I'm having some buyers coming to look at it.' They're going to let me know what they're able to pay, and then I'll get back to you and we'll see if we can work something out. The business gets a lot easier and you can make a lot more money.

So let's— we're going to have Justin hop in here in a little bit. Let's explain what we just did on this $86K deal so you guys can learn how to implement this. Okay. Do you want to— you want to kind of give the quick rundown on it?

Shout out to Kevin real quick. That's, that's how I just did a deal today. Love it, Kevin. That's awesome, man. Dude, freaking sweet. Keep crushing it, bro.

Hey, if you guys are watching this, give us a like if you're enjoying what we're talking about, because this— we do want to get this out to more people. Now, I know that's lame to ask you to like it or to heart it, but it just gets in front of more people. We want more people to see this. It's, you know, it's hard to get the reach out there organically, um, so we just gotta like it.

Kevin's just, just out here preaching the truth, man. Kevin, transparency with agents will save you a lot of headaches.

1000%.

We need to get Kevin on here, bro.

Let's go, Nate.

What, uh, I'm sorry, what was your question?

So we're gonna say, hey, let's, let's kind of break down this deal and how there's the two options of what could have happened if we did the traditional way and how we did it the painless way and how we helped someone that didn't know how to do anything in real estate. Had— he came from roofing, so he just knew he had someone that wanted to sell for cash. That's it. But he was able to navigate it, and then we took it the rest of the way. And we want We're telling you guys this not to flex. We don't care, like $86,000, $1 million, whatever, it doesn't matter. It's about the process of you guys. If you do this, you will get more deals, you'll make more money.

Yeah, guys, I love $3,000 deals. I love them. They're some of my favorites. The reason why is because the RealReal, the $86,000 deals, the, the, the really, the, the deals that are whales, anybody can do those. Right? And it's more about getting lucky than being good. Sort of. It's, it's the, the small deals, the $3,000 deal, the $4,000 deal, the $6,000, the $7,000 deal, the ones that are like right on the fence, the base hits. Those are the ones that only a skilled wholesaler can do. And the thing is, guys, is the home run deals. Yeah, they're cool, but nobody's able to build a consistent business only off hitting home runs, right? I'm sure there's some baseball person that can correct me, but I don't know of any baseball team that was able to consistently do well by only hitting home runs, right? They came out with that movie a while ago with Brad Pitt called, um, Moneyball, and the whole thing was about all they cared about. The only focus was just getting on base. Guys, if you can do that in your wholesaling business If you can just get on base, right, and you're able to pick out all of those little base hits, it adds up. So that's what we're really passionate about. Big deal, small deal, doing deals is doing deals.

You know, I got my man Justin Irving backstage, so we're going to bring him on here. We're going to talk to him about the scenario, Nate, and then we can—

I'm—

we can break it down with Justin, the two ways that this deal could have gone and how we were able to maximize this deal. And, and everybody that's here is here to learn. Justin came from— well, I'm going to let him explain his story. And if you guys need a roof, he's your guy. All right. So we're bringing them on here. What's up, Justin? How you doing, bro?

Hey, what's up everybody? How's it going?

Good, man. Hey dude, thanks for coming on here. Basically, I wanted you to come on here to kind of give your side of the story of like what happened, how you got that, that lead and, uh, you know, your experience in real estate. And again, I know you don't have any, but you can explain that. And then we on here, cause people that are watching, they want to do deals. So we're explaining them how we navigated this. So we got, instead of like a $20K assignment fee, we got an $86K. And everyone got paid, right? So, uh, Justin, what's up? You want to give a little bit of intro and who you are?

Like, you know, just so I have an idea how many people are on here right now. How many people are we talking to?

Oh, we're talking millions, bro. Millions.

Dang, boy. So it's not just the 3 of us right now, dude.

Actually, the tech, just what we can see here, there's about 13. All right, but, uh, more people will see it.

Cool, no problem. I just wanted to get an idea for the crowd.

Now you're starting to shake a little bit.

Oh dude, I'm nervous, quaking in my boots, man. Waves are getting turbulent back here.

That's it.

Uh, no, no, no. So, um, a little bit about me. Yeah, so I've been in roofing. I do insurance replacement roofs. So homeowners that have wind damage on their roof, we talk to them and tell them that, hey, we can get your roof fully replaced through your insurance. You pay $1,000 deductible, the insurance will stroke a check for $30 grand, and I make a commission on the $30 grand. Homeowner gets a roof for $1,000. Everybody's stoked, except the insurance company. But who gives a rip? It's a trillion-dollar industry. So yeah, brother, we'll snag that money all day.

Dude, I love that, man. That's, that's awesome. That's a— that's an easy sales pitch. I'd love, I'd love pitching that to people.

Oh, it's a blast, man. We got all levels of income potential here. But I've always wanted to do real estate. I've always seen the money in real estate. You know, my boy Donald Trump, he came from real estate. You know, there's a lot of guys— Chris Crone makes money in real estate. So I see where the big money's at, and big money's been in real estate. So I've always I want to do a real estate deal. I've been in in-home sales for a long time, and it's just been in the back of my mind. Um, so, you know, this guy— this particular situation, $86,000 I think is the gap. I didn't even know that was a big gap. I thought it was every day because this is my only deal I've ever done. I thought this is common. Why'd you do it for any less? What the hell?

That's right, brother.

So, you know, I just didn't come in with a lot of information on it, but You know, just kind of went at it with a relationships-first-based approach. I met this woman, she— we got her a full roof approval. She started talking about how she was unhappy with her situation. She wasn't sure what she wanted to do with her house, what her life was looking like. And honestly, we got in the nitty-gritty. I just got to know her and ask just personal questions and just really got a feel for, for her and really what she wanted. And I was just upfront and honest. I was like, yeah, there's a lot of different ways that, you know, you can handle your situation with your, you know, the situation with your husband. You inherited this house, you got debt. What does the career field look like? And we would talk for hours just about life, love, and the pursuit of happiness. And I was like, you're going to make a hell of a lot more money with a real estate agent. Why would you want to sell cash? It doesn't make sense. She was like, no, the last thing I want to do is work with an agent. And I was like, well, look, I know a guy. So me and Nate Payne, we trained jiu-jitsu together. He frickin', you know, he put cash in my pocket, but he takes breath out of my lungs when he frickin' lays on that head and arm choke. Oh, he's a frickin' hammer. This guy competes. Watch out. Don't mess with him.

That's right, baby.

So I connected him with Nate Payne. We talked about me selling the deal. But to be honest, I don't know a rip about sales. Nathan Valley came in with his absolute suave finesse. That mustache and beard is no joke. He came in there. She wanted $800,000 for the house, I believe.

Was like, she started at $850,000.

She started at $850,000 is what she wanted. But when it got down to the brass tacks, what was ultimately important to her is that she got to clear her debt and break off her life from her husband. And honestly, life is more important than money for most people when it comes down to an intensely emotional scenario. And we just broke down what the reality is, what her actual options were and what we could do. And we know we made some money on the gap, which we always love making money on the gap. But ultimately she was able to get out of the house in the way she wanted to. She was able to clear her debt. She's able to get away from a family situation she didn't want to be in. She was kind of distressed and it was just a matter of connecting dots and connecting relationships. So This is going to be something whenever I got someone— I actually have another customer right now. It's the same situation. We'll see if we get another one in the pipe here in a minute.

I think we might have set the bar too high though. Now you'll be like, oh ew, only $50K? Like what is this? What is this pocket change?

I know right? No, it's going to come in just as high, don't you worry.

Yes sir.

We'll see, I don't know.

So this is the deal, man. So there's two ways to navigate. For everybody that's watching, Justin, you nailed it exactly perfectly. You said it better than I could have said what happened with the situation. The money hurt, the situation was important. And that's what we try to tell people. It's like, hey, don't go in there making offers and lowballing and trying to just— it's about the relationship. They have to build that trust. And you did a great job with that. Nathan was able to kind of explain, go in there and do the same thing with explaining the options. So there's two ways to wholesale deals, Justin. The traditional way is what we're— we're against the traditional way. That's how we learned. And then there's the painless way, which we're about to explain how we made this check. So the traditional way is you go in and you're like, hey, I'm the cash buyer, ma'am. I'm going to buy your house and I can pay so-and-so. So traditionally, we would have gone to that lady and she says, I want $850,000. Then we would have gone back and forth and be like, you know, I usually buy houses in this area. I'm going to need to be at $650,000. Do you think that would have worked, Justin, if I would— if she wanted $850,000, I just immediately just lowballed her?

Would have been lower than that.

It would have been lower than that. From the comps and stuff? Yeah.

Most wholesalers would have been offering like $500,000.

Well, a lot, a lot of the cash offers we were getting from other buyers was like $620,000, $630,000, right? Because they wanted to make a rip. I don't honestly know the buyer who we sold it to, what his strategy was. But anyway, that's the traditional way. Does that make sense, Justin? Like they just go in and they negotiate as they're as their own, as they're the buyer.

Yeah, right.

It's like, go ahead, imagine.

So the traditional way of wholesaling is like, imagine like you have that conversation about a roof and she's like, no, I just want to sell the house. And traditional wholesaling, people would be like, oh, well, I buy, you know, I know I came here talking to you about doing a roof, but I buy houses and I can pay cash and I can do this and I can do that. Right? And imagine you having that conversation with her and she's like, cool, like, so what, what, what next? Like, what can you offer me, right? And it's just like, uh, I don't know, man, I gotta figure this out and do this and do that, right? And there's so many people that, that— and, and it's not their fault either, like, to be fair. It's just this is what is taught in the industry, unfortunately, and there's a better way to do things. Which is exactly what you did, which is awesome, right? It's where, like, one, if I don't know, I can find somebody who can just do that for me. But two, most importantly, you know, the way you set the expectations was perfect, right? And like, kudos to you, man, you did an amazing job, like, on the sales and negotiating up front. Helps make my job a lot easier. Yeah. Um, so with the traditional wholesaling, is someone to say, hey, I'm the buyer, I can promise you this, I can promise you that. And guys, the The other thing is, like, these aren't like widgets that we're buying and selling. These are people's homes. This is somebody's life we are— we, like, you know, we're being involved with. This woman was going through an extremely— the end— and the, the husband, a very difficult emotional life situation, right? And if I were traditionally wholesaling and I'm making all these promises that I can do this and I can do that, and if I have to cancel my contract— and guys, I have done this before when I didn't know any better, and I hated it. I hated canceling contracts, right? It is like the worst feeling. It sucks. And the thing is, is it would have just made the pain that much worse for her, the husband, and who knows what other plans. Like, they might have already moved out. They could have done other stuff.

Right?

There are so many things going on, all right? Because the reason why people get into wholesaling is because, you know, you see— and just like you were mentioning, Justin— you can make big money in real estate. And the reason we can make big money is because we're playing with bigger, big money, right? Is it Rockefeller? I think he, he has a really famous quote, you know, play with pennies, you make pennies. Play with dollars, you make dollars. But the thing is, when we're playing with dollars the stakes are also higher, right?

Yeah. And I know that if we would have just gone in there traditionally and just been like, yeah, I think I can do $725,000. Let's say we just got her that low in the initial conversation and we had to go back and negotiate it and get her down and renegotiate the price to $650,000 or $630,000. She would have flipped, bro. I already know because there's too much going on in her life where if a renegotiation took place, I don't think it would have went well. Would you agree, Justin?

Well, I think in this situation, and you see it in any situation where you're establishing a thing called trust, people develop trust inside of a process and inside of a system, and they know someone's doing their due diligence. So I think what happened a lot in this situation was that there was a process, there were multiple points of contact, there was multiple inspections. She saw that we were being sincere. We put our best foot forward first without expecting anything in return. We had brought multiple people to inspect the home. We had many conversations with her. And we allowed it to transpire over time and basically took all the anxiety and all the cortisol out of the room. Feeling like, oh, I got to make an offer right now and this is what it's got to be to close this thing. No, no, take the stress out. You don't want that. You want to get down to what the brass nuts are. And I think that that just allowed her to see what the brass nuts actually were. I was confused personally because in the process I didn't know that I was working with two Nates. I thought so. She was like, I just talked to Nate the other day. And I was like, no, you didn't. I was talking to Nate. And then it was just really confusing because I didn't know there were two Nates. So Nate and Nate was just kind of funny.

That's hilarious.

But if I could, I see what you guys are saying with being able to highlight the differences between wholesaling and the process that this is, is it just establishes a relationship and really gets to the true market value and that, and that research that homeowners feel like you're actually taking care of them. Yeah, the feeling of it matters a lot. And I could see how that would make a big difference.

100%. So let's get down to the difference now. So again, the traditional way, lock it up, try to wholesale and cross your fingers, hope you can make a big fee. And if you can't, you got to renegotiate, you got to cancel and you pretty much screwed because the person you've lost trust. So tell them, Nate, what did we do?

Yeah, guys. So, so the key difference is one, setting the right expectations, right? Which is, hey, we work with investors, you know, they're going to take a look at it and they're going to let us know what they're able to do. So we were able to set the expectations with her to where we were able— like, she knew we're not buying the property. She knows that we're just the middleman, right? She knew that we were going to have buyers come take a look at the house. They were going to give us feedback. They were going to let us know, um, what they were able to pay. And so we're able to do walkthroughs. The buyers are able to ask the homeowners questions. You know, we're not worried about any of that. And right? I'm not worried about any of these buyers going behind our back because these are all—

by—

this is not an email blast. These are buyers we have personal relationships with. Again, personal relationship with the seller or the agent or whoever on the acquisition side, and personal relationship on the disposition side with the buyer or whoever you're working with, right? These buyers are all people that we have personally already spoken with, built rapport, and had conversations with over the phone. None of this is through email. I want to stress that again. Or, or like just a text message. Yeah, I speak to every single one of these people. And so now the buyers are able to go and look at the property. And now, because guys, what's the hardest part of wholesaling, right? 99% of wholesaling, you, you, whether you've been making offers or whether you've— and this is another major flaw with traditional wholesaling— whether you're making offers or even if you've just gone on Zillow and, and, or, or Redfin, you're like, hey, let me just try analyzing a deal. What's 99% of the stuff we look at? It's, uh, it, it might be a deal if, you know, the ARV's here and the rehab's only this much, but it might not be a deal. The ARV is only here and the rehab's really this much, right?

It depends.

It depends. And guys, that's The hardest part with wholesaling, and that's why traditional wholesaling, it— like, that's one of the biggest flaws in it, is I can't make an offer just using a formula. I cannot use a generic formula, 70% times ARV minus repairs. I can't just use a basic formula to calculate if something is a deal for every single market in every single state for every single buyer in the entire US. No, real estate is very local. Every market is different. Every buyer is different. I'll prove it to you right now. We can have one buyer looking at the house. He's looking to buy it, moving it himself. He's going to— he's going to fix it up himself and then sell it. I've got a second buyer who— he's going to buy it. He's got his own crews that are going to fix it up and then he's going to sell it. I've got a third guy. I've got a third guy who's telling me I'm absolutely crazy. The rehab's twice what I think it is. And it's because he listened to one episode of BiggerPockets and he got all premium subcontractor quotes, right? And guys, I'm just kidding. I love, I love BiggerPockets, all right? I just, I like to joke around, right? And then I've got a fourth guy. I've got a fourth guy to where not only does he have his own crews, but because he does so many flips in volume, he buys materials in bulk at a fraction of the cost, and he can do that same rehab for a fraction of what it costs anybody else. And he's going to fix it up and sell it. And guys, that's not even including what if someone's analyzing it as a rental? What if they're looking to turn into an Airbnb? What if they're looking to turn it into an assisted living facility? What if— you get my point, right? There's— that's the beautiful thing with real estate is there's so many things you can do, and there's so many different ways that one person can have their own specific competitive advantage, right? So as far as what's somebody able to pay on this property, I don't know. I got to go ask them, right? I'm not buying it. And guys, the thing is, is we— this allowed us when we set the right expectations with the seller, right? She knows everything that's going on and she's totally on board with it. Now we're able to get the only person that's able to tell us what this will sell for, right? Which is the person that's actually buying it. Now we're able to get them to take a look at it and then tell us, hey, what are you able to pay? How much easier would wholesaling be if you guys were able to do that every time? Now I don't need to guess. I don't need to guess. I don't need to use a formula. I'm just going to go off what the person is telling me that's going to be buying it. Now, yes, there's, you know, kind of some special sauce we put there, back and forth negotiation, right, with the buyers and with the sellers to be able to kind of work your fees in there. But the concept of just let the buyer tell you what they're able to pay and then work it from there, right? And now you're able to go back and forth with the seller because again, guys, this was a deal.

I'm gonna have to cut you off, you're going too long, dog.

Wait, my last, my last point, my last point.

This—

and yeah, sorry, I do.

Justin, if you want to explain something, he's going to crush it. I'll go forever on it.

And the last, the last thing is, guys, on this deal, seller, seller started off at $850,000. Buyers came in with offers at $600,000, $620,000, $630,000. The guy that bought it paid $740,000. Guys, this again, we— this was an $86,000 deal. But if we had done this the wrong way, this could have been a follow-up lead. Oh man, we couldn't get it to a good price, right? Or it could have been like a $3,000 to $5,000 lead, right?

Right.

And that's— and guys, this isn't just one case, right? And it's not that it's a buyer that doesn't know what he's doing. He does a lot of deals. He knows what he's doing.

Right.

So take the guesswork out of it. Don't stop guessing on what someone can pay and go find out.

Yeah. Let me give you an example. Like, yes, he's done, guys. Round of applause for Nathan Payne. That dude, he just goes in. That's why he basically just beats sellers into submission because they're like, oh my gosh, dude, I'll just give you whatever price you want. Stop.

Just stop talking. I'll sell you my home.

But no, what I was going to say is, you know, she originally wanted like $850,000, right? And the offers like were so low. But the thing is, Justin, when Justin, you came to me like, dude, this house might be worth like $1 million, $1 million, $1.1 million. Remember you coming to me, you're telling me like what you thought it was worth. That really determines what people are going to buy it at. So there's probably a lot of people that offered in the $620s, $500s. They're like, no, this thing is only worth $800,000. There's not a lot of room. If I buy it at $740,000, I can barely make any money. But it depends on what the buyer thinks the ARV is, what the buyer thinks he can resell it for. So when you run those numbers like I did, I'm very— I'm very— what's the word? Not skeptical, but conservative. I'm like, I don't know if I'm going to flip this thing. I got to make sure that I don't just overshoot because I'm not losing money. Bro, I thought the ARV was probably $875,000. It could resell for $900,000. There's guys that probably think it's 1.1, like Justin was thinking. So, um, again, Nate crushed it, you crushed it. It doesn't matter what you think, it matters what the relationships and the buyers that you have think. And if you base everything off of what you think, you're going to miss out on deals. And, um, you know, so that, that's basically the painless way is leverage relationships so you can know exactly what's the best thing. And it helps you negotiate versus just locking up crap and getting, getting lucky.

And at least on my end of things, because in this model, you know, I'm the appointment setter, right? I was teeing up Valet for his frickin— his valet service. He valeted them straight to the frickin buy. You know, that's what he does. He valets.

Yo, that's great.

I come in and as far as the appointment setting goes, my job isn't to set any expectations, right? My job in this scenario, and I kind of understood it early on, why does she want to sell the house? What are the pain points? Why in this world, why in the world would this woman want to do this, right? What matters to her? What's on the personal level? What makes sense for her to go down this pathway, right? And after I'd uncovered what that really was, the handoff, the baton pass was smooth. And you guys have always had it when you're dealing with Comcast and you're angry and you're pissed off at the Comcast rep and like, oh, let me talk to my manager, and for some reason your emotions chill out Because it's a manager. Something about the baton pass is very effective inside of a sales environment, customer service environment, interpersonal environment where you feel like you're climbing through the ladders of a system. It makes an impact on how people are going to react emotionally. So, you know, to kind of keep it in perspective that your job in this scenario with this particular sale— like, we have appointment setters for roofers. I'm now an appointment setter for, for home flipping, you know.

That's it.

So it's just something to keep in mind on, on both sides of things.

Hey, and my boy Kevin, he might be able to tee you up too. He said— you see this comment there?

Yeah, I see Kevin. Hey Kevin, hit me up, man. Get my contact info from Nate.

Yeah, exactly.

Honestly, you guys could double dip, you know. You guys find someone that doesn't want to flip their house but they got a wrecked roof, I'll kick you some cash if we close that thing, you know. Like, money's money, baby. I don't think anyone's mad with a paycheck.

That's it. That's it. Well, guys, just to let you know, Justin, we were able to get him— cut him in 20% of the deal or split half of what I was going to make on the deal after all the splits, but 20% basically for bringing the lead. And that's it. Well, I don't want to say that's it, but basically we took care of the rest. He made $17,200. Now, I know there's a lot of you guys out there that have been in wholesaling for like a year, probably haven't even done a deal. And that's not saying that you guys stink. It's just, you got to navigate these deals the right way, okay? There are deals every day, I promise you, you're passing up on. You just got to navigate it and do it the right way. And, uh, like I said, if I would have gotten this lead 5 years ago, 6 years ago, probably wouldn't have been a $5K deal or a follow-up lead. But because we know how to navigate this, we're able to make it a whopper. So anyway, um, Justin, dude, so happy to have you on here, man. I hope I can get you more business for your roofs. Hopefully we can do more deals together. And if you got anybody else that's talking to sellers, I just want you to let you know, it's not always cash that we do. We also can list people's property. If they want to sell, we help them. Now, but the qualifying factor is, is there a certain situation that motivates them? Because if they're not that motivated and they just want to list it, go ahead and list it. And we can obviously list it too if they want to work with us. But it's mainly, is there something that is causing them to want to sell like quick, fast, easy, convenient, and not list? We'll take those all day and then we'll be able to talk to them, navigate them. So that's pretty much if you got anybody that you can talk to or you, you find those situations.

I've got another distressed housewife right now.

So love it.

I think about a month or two, you know, we'll be, we'll be talking again. But thanks for having me on, guys. Appreciate you, dude.

Thanks for your time, Justin. Uh, guys, he's the roof guy. Hit him up.

Hit me up.

Awesome. Well, guys, that's, that's a real life scenario and we— I wanted to bring him on here so you guys can see Someone that is not involved in real estate just did $17,200 that we were able to pay him because he knew that it wasn't about the deal or lowballing. It was about the connection and the conversation. And that's what's important. So we're glad to have Batch Leads that supports us in this. And when you're using leads from Batch Leads calling, remember, it's not like, hey, what's the lowest you would accept? Those words have never come out. Like, well, they did when I was a noob. But they should never come in your mouth because that immediately is saying, hey, I don't give a crap about you, I just want to make money. You know, if you hit a seller with that. So you just need to be able to navigate these situations the right way. I keep saying that, but that's how it is. Now, last thing I want to say to you guys before we wrap up is, you know, what are we doing to solve that problem? Because this is a problem of knowing how to navigate these conversations. At painlessflipping.com, we make it— we make it easy, the wholesaling journey for people, and we— by doing the heavy lifting, we do the hard part.

Yeah, guys, it's, it's— so if you're like tired of mentorships and courses and coaching programs, we, uh, we actually just made a huge shift. We completely got out of it, like we shut all that stuff down. Um, what this is, is we created a done-for-you service. If you guys ever spoke with somebody and you're like, hey, I wish I had somebody that could let me know what ARV is, let me know what I should offer, let me know what exact next steps I should take on this lead, how I should negotiate it, all this stuff. If you wish you had somebody that could just do that for you and tell you exactly what to do for your specific lead, go to painlessflipping.com. And if you want us to just do it for you, that's an option too. But gotta, gotta check it out, painlessflipping.com. So love to help you guys, love to see you guys in there and help you close some deals just like Justin.

Exactly. And how does Batch relate to painlessflipping.com? What we do, guys, we help you master the first steps of the wholesaling process of investing, and that's identifying opportunities. And you need opportunities, right? There's many different ways to do it. You can, you can text, email, call, whatever, drive for dollars. But really, when those come across your plate, if you don't master that conversation and getting into the nitty-gritty and connecting, you're passing up a lot of deals. But we don't want you to do that. So that's why we have this service. And it's not about just drowning you in videos that suck. I know, guys, you could give me— you can give me 1,000 hours of videos from, you name it, Grant Cardone, Hermosi, doesn't matter. I'm not watching them. I'm busy. I don't got— I got like major time to just soak, get soaked into a bunch of information. I want applicable action. I want to do deals. And that's what we're doing. Forget the fluff. We're here to help. That's why we're here.

Love it, man. Not gonna lie, if it came from Hermosa, I'd probably watch it, but 1,000 hours, bro?

No way.

Awesome. Thanks for joining us, guys. Hope you got some of the value out of today. And guys, keep crushing it. Hope we can help you do deals. And, uh, yeah, I'll talk to you guys soon.

Peace out, everybody.