Wholesaling Real Estate: Payneless Flipping Secrets

What is going on, Nathan Payne? How you doing today, bro?

Yo, my man. How you doing, brother?

I'm ready to talk about something that really gets my engine revving and talking about deals. How to analyze a real estate deal. That's what we're going to be talking about. No. What you laughing about, bro?

I don't know.

Engine revving.

It gets you getting excited and roll with it.

All right. That is— that might be like some sexual innuendo. I don't feel like—

I feel like you got to make a house reference, right? You can't make a car reference. You know, really, really gets my swamp cooler cooling. I don't know.

Anyway, guys, this is what we're going to be talking about today is how to analyze a real estate deal. Okay. And if you don't know, it's not that funny. You're just in a happy mood. You just got back from the doctor. Did they give you some laughing gas?

We're talking about analyzing real estate today. Okay, it is important, I promise. Despite the, the laughing around, the smoking and joking, we are going over some important stuff because this is important.

This is very important. This is very important because we analyze deals as a part of our, uh, as a part of— what would you say, Nate— how we help, uh, how we help our clients do, uh, do deals. We look at deals that they're doing and we say, hey, this is an opportunity or not. We help them through that process because a lot of people, when they first get started, they don't really know if they're looking at someone who will waste their time or not. We don't want you wasting your time. So that's what we're going to be breaking down, is how to analyze a real estate deal. Is this a seller? Is this someone you should be talking to, or is it a complete waste of time? You're about to find out on this call today. Go ahead, Nate.

And yeah, guys, real quick, before you're like, ah, I know how to analyze deals, I know how to come— guys, guys, guys, pause. Hold the phone. Again, this is more important than you probably think. A lot of people think, no, I need to get better. Like, how do I, how do I find the most motivated sellers? How do I— what's the best, you know, one line to use when negotiating? Yeah, that stuff's cool. But guys, especially when first getting started, the thing that I see being the biggest constraint for new wholesalers— I know this was true for me when I first got started. Yes, those other things I mentioned are important, but the thing that took up the most amount of time was wasting my time on deals that I thought were opportunities but really weren't. And it didn't really have too much to do with comping or knowing ARV or whatnot, right? That we're talking just a little bit deeper than that when we talk about really analyzing a deal, because it's more than just what do I think the ARV is.

Exactly.

That's what we're going to be talking about.

So before we get into how to analyze deals the painless way, I want to ask— I want to tell you guys who I am, just because if this is the first time you're tuning in, you probably like, who— why should we listen to Nathan Payne? Who's this guy? Why should we listen?

Swamp cooler, man. What is it?

What the heck is swamp coolers? They have those in, you know, Utah and Arizona.

Made-up thing. I don't believe it.

Yeah, believe me, they exist. So my name is Nathan Payne. I've been in industry for several years now, 6 years plus, and I've done hundreds of deals, done millions in transactions. And, um, yeah, we're excited. I'm excited to give you guys this information because I don't want you wasting time, okay? Whether we ever do a deal or work together or not on a deal or anything, my goal is for you to be able to do more deals and not waste time like I did, man. I spent a year following up with an old grandma and then thinking that was a deal. And then immediately, like, when I called her once or she called me, her daughter walked in and was like, well, who are you talking to? Oh, some guy wants to buy my house. She chewed me out. I should have known if I'm talking to an 80-year-old, I probably should have asked if there was another decision maker. I spent a year of my life talking to her.

It was a good experience.

Yeah, it wasn't— it was okay.

But you learned. I lost. Lesson learned. Yeah, I've got, um, I've got a no— I don't want to say no old people policy, but You guys know, like, if you get on the phone with somebody and it's just like, bro, the— like, it sounds like they've got some, some life under their belt, right? And they sound like they've been around for a while. Guys, just— I don't even really talk to the person. I ask for a family member. Hey, do you have a, um, any kid, anybody else that can help you, you know, or, or, you know, with making this decision? Or that anyone else we need to talk to know? And then get on the phone with them. But enough about that, guys. Who am I? My name is Nathan Payne. I've been wholesaling for about 5 years. Done a bunch of deals, a bunch of different states. I'm known for locking up over 100 contracts in a single year. Also, some of you might have seen a 30-day challenge I did a while ago to where I picked totally brand new market, no contacts, no resources, nothing, and my goal was to do a deal in 30 days. And I did. I did a $20,000 deal without spending any money on marketing. And what perfectly fits into this topic that we're talking about today, I also was able to do that by by only working 2 to 3 hours Monday through, Monday through Friday each morning. I stream the whole thing live from this camera, and the— and I was like explaining stuff to the camera for half of that, right? So I had like 90 minutes of actual focused work Monday through Friday. The only way that is possible is if I was really good at knowing how to identify and pick opportunities, right? Knowing how to analyze the deal. Is this worth my time or is it not. And especially if you guys, um, some of you might, might be working part-time or full-time jobs, you might not have a full 8 to 10 hours a day to be working on just wholesaling stuff. So if you have a limited amount of time, this is really important so that you can be as effective and efficient as possible.

Thank you, Nathan, for that beautiful intro on who you are. I don't worry, I went, I went wild on mine too. We went long. Um, But hey, thank you. So guys, what is how to analyze the deal? Well, usually when people think of that, Nate, they think of what are the comps, right? Like, um, like go to Batch Leads and they tell you right now what it believes the estimate value, estimated value is. What's the problem? Not with that. There's nothing wrong with Batch. There's nothing wrong with Zillow, nothing wrong with all these, but they're dealing with data, right? They're dealing with an algorithm. So there's, there's a, it's very difficult. That's why it's a skillset. You have, you can't just always just go off of the estimated value. You have to actually, be able to understand what, what side of the street is this house on? Is this in a neighborhood that's nicer than the other neighborhoods? Things are very different just from one block from the other, different school zones, different school districts. So analyzing, yes, you need data, but we're talking about really analyzing a deal like in the sense of talking to a seller as well. Is it worth your time to continue the conversation? That's what we really want to hit on. The data We're not going to go too much into that. You go to Batch Leads, they got great stuff. That's what we use. And, uh, but we're talking about something a little bit deeper. Do you have anything you want to say to that, Nate?

Yeah, one thing when analyzing a deal, right, analyzing, comping, comping a deal, it's, it's not a, you know, firm science. It's more of an art. All right, and I say that because again, there, there's no one specific algorithm to where you can click a button and like, hey, here's the formula to calculate, boom, this is exactly what the ARV is, right? I know I've heard some people kind of mention, um, you know, appraisers and, hey, here's the strict rules and guidelines that they follow. And that stuff is good for a guideline, right, to get a good general idea, but it's, it's not a firm set number. It's more of an art because there's certain things— there, there's a lot of things that come into play when somebody is buying a home that can't just be calculated as a number in square footage or sold comps or whatnot. You know, I'll give a perfect example. You guys, when, when looking at deals, whether you've talked to a seller and analyze the home, or maybe just looking on Zillow and trying to, you know, practice running the numbers, sometimes you'll be looking at a property and be like, wait, I found this one sold comp. It's a house, it's just like this one. It's in the same neighborhoods, you know, similar beds, baths, square footage, similar style. And you're like, I don't know why, but this thing sold for like over $100,000 more than everything else in this neighborhood. Like, if this is the comp, like, oh, this, this is a deal, right? And you look it up and like, okay, yeah, no, this is like, this house really sold for this number. But that's not the whole story, right? And again, guys, the number one thing when you're analyzing a deal, I like to approach it to where imagine you're in court, right? And you're going to talk to that cash buyer.

Right?

And you're going to have to make your case, right? Make an argument as, as why you believe this is the ARV. This is, you know, you think it'll sell for this price because of X, Y, and Z, right? Again, it's not a science. You're building the best case possible. So the one thing that a buyer might bring up is like, yeah, I see that house, that comp that sold for $100 grand more, but that house sold higher than any other home in that entire neighborhood. Ever, and it was just one house. He's like, dude, I think that was a special scenario, right? Now that's going to be a hard argument. So I actually had this exact scenario. It was a deal in Florida, and same thing, there was a comp that, that stood out like a sore thumb, right? And the number one question is something about like that something's up. And guys, if something seems off or if it stands out to where it's like huh, that, that doesn't really make sense, right? Could be in a good way, could be in a bad way, right? Could help your comp, could not help your comp, whatever. If something stands out, something doesn't make sense, there's probably a reason for it. So do a little bit of digging. So I called the agent that listed that property. I said, hey, I saw this property that you sold a couple of months ago on, you know, 123 Main Street. She's like, oh yeah, what about it? I was like, hey, you know, beautiful home, you did such a good job, blah blah blah. Like, you guys got an amazing price. I'm actually looking to potentially fix up and sell a house right around the corner. It's just like this one, but I noticed you, you got such a good price on this home. You did such a good job. I was wondering, is there something that I'm not seeing? Was— is there something I'm missing as to why it sold at this price? And the agent, she's like, oh, she's like, yes. She was like, you can't tell. She was like, the thing that sold this house— and like without skipping a beat, she's like, the thing that sold this house was the backyard. And she's like, from the pictures you can't really tell, you know, yeah, it's nice, you know, it's whatever, but not— it doesn't look like anything fancy. She was like, the backyard was big, but she was like, the real thing, the back side of this house, you can't tell from the pictures, but it has this view overlooking an entire national park.

Oh.

And she's like, that is what— like, that view, she was like, is absolutely priceless. And she's like, that is what sold this home.

There you go. You wouldn't know that. Oh, you know that.

I don't know that, right? And again, that's just one small example, but that's, that's what we're looking for. And again, that's just talking about ARV and price.

Let me give an example, Nate. Yeah, let me come in real quick. I just sold my house in Salt Lake City, Utah. Zillow says, and most of the algorithms say, that it's worth $550,000. I just sold it for $652,000. So how was I able to sell for $652,000 and not $550,000? Because I live in an area where some of the homes around there bring down the comps, right? So, but I live in a different part of that area, right? And that's, uh, not only that, I also have an ADU, an additional dwelling unit, um, where I rent out my basement. It's what they call mother-in-law basement apartment. So I rent that out, so that's valuable. So if you took my home and in, in my neighborhood, the exact same model, but try to sell for the same amount, it probably wouldn't go if the they didn't have an ADU, right? So there's a couple things that you need to know. But again, this is— this, this call is to say, hey, all that's great. That's, that's very important to know that. But before you even get into all that, like where the numbers are, you have to understand and analyze if you are talking with the right person. If you're speaking, like if you're dealing with the right opportunity, let me give an example. This is perfect. My garage. I love you, don't know you, but I care about you. And I want to use you as an example. Okay. I appreciate you interacting. And I really think it's important that everybody that's watching this live should interact because this is for you guys. So he's, I've, he's saying I've thrown offers typically at 70% of ARV through cold calling. I believe I have to work on my delivery because I've gotten a ton of hard nos. Perfect example, guys. Nate, when's the last time you gave— no offense, My Garage, we love you. When's the last time you gave an offer on the first call?

It's been a minute. I honestly, I honestly can't even remember. And to be fair, you know, guys, this is what we're taught, right? It's not, it's not your fault. This is, this is what everyone's taught is, oh, I got to do 70% times ARV minus repairs. And then for repairs, let me use this generic price per square foot to calculate if something's a deal. Guys, when analyzing a deal, there's one really, really important truth that took me a long time to learn. It does not matter how good of a deal we have on paper. If we don't have a cash buyer that's ready, able, or willing to pay us, we don't make any money. Therefore, it's the cash buyer, the investor, that is paying us when it comes to wholesaling. So that is the only person that can really tell us what something's worth. If I'm doing 70% times ARV minus repairs, I cannot use a simple— and again, guys, I know what I'm saying right now might sound absolutely insane because, wait, Nate, what do you mean? Everybody says to use this formula. Just guys, just bear with it. Like, just think about it, right? One formula, 70% times ARV minus repairs. People say, oh, just use this one generic formula. To calculate if something's a deal or not a deal for every single buyer in every single state, every single market across the entire U.S.? Doesn't, doesn't add up, right? And not only that, it doesn't work very well. And every market is different and every buyer is different.

Well, not only that, but the reason why they tell you this, My Garage, is because if you get a deal at 70% of ARV minus rehab minus your wholesale cost, of course it's a deal. You bring me every deal that you find at that price. And by the way, it's not always a deal in some markets. Some markets have to be like a 40%, right? You have to be real low. But most of the time when they're saying this in like high areas like Atlanta, Dallas, you got like these, these markets that are big and there's a lot of competition, a lot of people buying there. Yeah, it's a deal. Okay. And that's why they say, because it's just easy. But I've done deals that like it when you do the math, like 86% of ARV minus repairs, 90% of ARV minus repairs. Can you imagine letting all those deals go just because you're doing a generic formula? So he's saying, I believe he said, my garage says, I believe I have to work on my delivery. I'm getting a ton of hard nos. Number one, you're getting hard nos because you're probably depending on what market and you're You're really, really low on your offer and people are just like, forget you. Second of all, you're probably getting a lot of hard nos because you're making these offers that people probably aren't ready to make a decision right then. You're probably just saying, hey, you know, this is where I could be around. Would that work for you? And they're like, I don't, I don't even know if I'm ready to sell yet, or I don't even know if I want to sell. Like, before we get into the offers, we have to identify, analyze if you are working with someone that is the right opportunity. So let's get into that, Nate.

Yeah, and just, just, um, to, to add to that, guys, a lot of times, you know, whether it's busy, it's very similar kind of the way the human body works. Whatever the symptom is, very rarely is that the root cause. I don't know if anyone kind of works out at the gym or like lift weights, but if you've been doing that for a while, you've probably without a doubt have like tweaked something or gotten issues. For me, I've had elbow pain, like really bad elbow pain for the past like 2-3 weeks. Right? You think, oh man, it's my elbow, I gotta like stretch out my forearms or something. No, the elbow pain is actually because of an issue of the shoulder not functioning properly. Or at least for me, this was the case, right? I, I have a bad elbow pain because my shoulder isn't functioning properly, and my shoulder isn't functioning properly because my back muscles are too tight, right? So it's like you go 3 steps back and it's like, oh, that's the problem. Same thing. And again, we see this all the time to where someone's like, oh man, I got to get better at sales. It's not that you can't. It's not that you need to get better at the sales and negotiating. I'm sure there's, there's improvements we can all make there, right? Nothing wrong with that. But that's not the core issue. I would, I would bet, right? The core issue, it's not that you need to get better at negotiating, making offers. It's that we're not analyzing the deal properly to even be in the right ballpark number. Because imagine you could, you could negotiate the same way, but what if you could offer $100,000, $200,000 more than whatever number you gave to them last time? Like, if, if nothing changed about the conversation except for the fact that you could offer $100,000 to $200,000 more, would that make a difference? Maybe, maybe not, right? And then that's where it comes to step 3, Well, maybe it's just not a motivated seller to begin with and I shouldn't be making an offer. But you might say, Nate, well, where do I get to just pull $100,000, $200,000 out of nowhere to add to the offer? And that's where it comes back to analyzing the real estate deal, because I might be analyzing it the wrong way and I'm using a formula like 70% times ARV minus repairs. That's super conservative. And then I'm guessing on the rehab, right?

Right?

When, when I say guessing, either just a ballpark guess or I'm using like a generic price per square foot to get an estimated rehab. And guys, all the time I've done this example so many times to where I'll run the numbers as to what a buyer actually says they're able to offer, and that versus if I just did the 70% formula. And got in, in markets to where the ARV is like $350,000, maybe $400,000, I'm getting typically between $70,000 and $90,000 more I'm able to offer, right? Like, like that's average. A lot of times it's even more than that.

Yeah. Wow. Wow. Well, so anyway, Nate, so what would your suggestion be for people that are watching this and they're like, okay guys, I'm a little confused? We want to give them some clarity since we've been kind of giving them, giving some juice all over.

Yeah, so, so some clarity on that with, um, first thing. Well, do you want to start with, um, the motivated lead part?

Well, let's, let's— well, you were just kind of hitting on how you can offer a little bit more, right? Right.

Yeah.

So probably so from your bot, that's having relationships, right?

So let's go back to, to My Garage. Um, and the other thing I noticed is, My Girl, I think you said you're, uh, tuning in from from LA, California. I don't know if that's your real estate market that you're working in. I'm going to assume so. Yeah, South LA. So I'm going to assume that's, that's the market you're working. Guys, again, 70%. If you're in a market to where ARV is like $150,000, 30% of $150,000, it's, it's not that much money. You're in a market like LA or New York, 30% is a huge chunk of money right now. The thing is, is when we take out that huge chunk, like, just look at the number and be like, dude, do you think somebody would flip a house for a number less than that, right? California, especially LA, probably— I don't typically work that market, but average house, what, over a million easy, I would guess. Like, a million's probably on the low side.

Yeah, he's saying it's around $900K.

Yeah. So 30%. I mean, guys, you're talking almost $300,000. Now, I don't know if any of you guys are flippers, but do you think anybody in L.A. would flip a house for less than a $300,000 profit? I would say probably. Right. And so with analyzing the deal, you had mentioned I have a cash buyer ask me every day. Absolutely love this. This is what you're going to do. Next time you have an opportunity or a lead, right, make sure it's motivated. If— and again, that's, that's the foundation. Do I have a motivated seller, right, with a house that we can add value to? And there's a problem that I can uniquely solve. If we have those two pieces, right, step 3, well, let me take the guessing out of it. Let me just reach out to the buyer and have him tell me what he thinks ARV is, what he thinks the rehab is, and what he thinks he'd be able to offer. Nobody is going to have a better answer than the buyer. Why? Because he's the one buying it. And the most important piece is the answer is going to change depending on what buyer you're talking to. Right. And guys, like, really listen to this. You could have the same house, the same ARV, the same rehab, the same seller, right? Same exact house. You've got one buyer. He goes, he looks at it and he's looking to buy it, move into it, fix it up himself, and then sell it. A second guy looks at it. He's looking to buy it. He has his own crews that are going to fix it up and then sell it. I've got a third guy that's telling me I'm absolutely crazy and the rehab's twice what I think it is, and it's because he listened to like one episode of BiggerPockets and he got all premium subcontractor quotes. Got— guys, I love BiggerPockets. I'm just making a joke, right? And, and 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 massive discount. And he can do that same rehab for a fraction of the cost of anybody else. And that's not even including— well, what about the person analyzing it as a rental property? What about the person analyzing it as an Airbnb? What about the person analyzing it to where they're going to rent by the room or do like a pad split? What about the person that's going to put an addition, right? Or what about the person who's going to turn it into an assisted living facility? Guys, you get my drift, right? It— that's a beautiful thing with real estate is there's so many things somebody can do with the property. How can I possibly pinpoint what the value— it depends on who I'm talking to. And one person might offer, um, if we're in LA, you know, a cash offer, one guy might offer, uh, $600,000 cash. You might have another buyer willing to offer $850,000 cash. And you might say, Nate, that is absolutely insane. Who would do that? Depends on who the buyer is. Depends on what things cost. And both buyers might be right. That might be their best offer, but they might have totally different circumstances. We had a deal in Utah to where first buyer that walked it, right, the first like 5 buyers that walked it, they were all between $160,000 and $175,000 with their offer. The guy we sold it to paid $250,000. It's almost $100,000 more. And guys, it's not because there's a sucker born every minute. No, that's a company that does rehabs, like over 100 rehabs a year nationwide. They know what they're doing.

And by the way, they don't always— that company doesn't always beat the other offers that came in lower. It just depends. It's kind of crazy. So anyway, what we're trying to say, guys, is when you're looking at a deal, you don't just bring every deal. Like, I'm talking to a seller, they're like, what can you offer? I don't bring that deal to my buyer in my garage. That's not someone I want to waste my buyer's time on. You only bring those opportunities to your buyers that are opportunities, are people that are interested in selling, that have a problem that you can solve a problem and solve their problem. And the offer is like the last thing, how you complete solving the problem. That's not always the thing that solves it. You can solve it many different ways on how you structure the offer. Now look, we're not going to get too crazy more in depth with this, guys. We're all— we're trying to say is be careful how you use your time.

Use it wisely.

Make sure you're not just bringing deals that, uh, you know, anybody wants to sell and asking your buyers what, what they'd pay. That's not what we're talking about. Identify the opportunities, identify why they're selling, if there's problem you can help. Then you can leverage your relationships to help you offer way more than than 70% minus ARV, um, 70% of ARV minus repairs minus rehab. There's a way better way to do it. Nate, do you have anything you want to say before we wrap up?

Yeah, guys, the simplest thing with, with wholesaling is, um, take, take the guessing out of it, right? So you can get ballpark ideas as far as I think ARV is around here. Uh, rehabs, I personally don't even try to guess. And guys, the thing is, if a buyer asks me, I never say either one of those numbers ever. If a buyer asked me, hey, what do you think ARV is? I don't say I think ARV is this. I'll answer it with, well, I saw, I saw that this comp, this property sold at this price and this one sold at this price. Here were the differences with those two properties, right? Different. Same thing with rehab. Hey, what do you think the rehab is on this? Well, I know the roof's 25 years old. The seller said it needs electrical. And, you know, they updated whatever last year. See, the difference is I'm not— I'm presenting inarguable evidence, right? ARV. And this is the whole kind of thing with with the 70% rule and why, why it's so flawed. ARV is suggestive. Same thing with the rehab. If I'm bringing something— did I say suggestive? Subjective, right? If I bring something that's subjective to the buyer, well, it's really easy for me to argue and disagree with that. How can you tell me I'm wrong? We can just have a back and forth and disagree, right? And at that point, it's a dead deal. Because now we're, we're arguing back and forth over what we think a comp is and what we, what we don't think a comp is. But if I just present the facts, again, building a case like in court, and then take the guessing out of it— I don't guess what ARV is, I let the buyer tell me, right? And then from there, and get, like I said, whatever that person says is true for them. Now, I might ask them Right? If you're like, dude, I think ARV is right around $900,000 and the buyer's like, nah, I think ARV is like $720,000. If you're just like, why? Where does that even come from? Right? If you think they're really far off on something, guys, here's the magic phrase. Hey, Mr. Buyer, help me understand. What am I missing? I'm seeing this house and this house sold for this price. It sounds like I'm missing something. Right? Simple as that. And then one of two things will happen. They'll either be like, well, you know, all right, yeah, you know, I, I see what you're saying, but I, I don't think it's that high, right? And then you know, okay, they're just trying to hustle me down on money, which is fine, that's just them negotiating. Or they're gonna tell you, yeah, well, it's because those houses have X, Y, and Z, and this one has you know, 1, 2, 3, and then you learn something new and you're like, oh, right, just kind of like that view, right? The buyer's like, well, yeah, that's because you didn't realize that one had a view overlooking a national park that's unlike anything else. It's like, oh, okay, yeah, that makes a lot of sense. All right, so take the guessing out of it. Have conversations with your buyers. They'll tell you what the ARV is., and then you can go from there.

So check this out, Nathan. Love it. Crushing it. Appreciate how in-depth you go. Um, Glory Skip— Glorious Skip is saying, before we go, what are some great questions you can ask your buyers to qualify them best? I got, I got some better for you. We're not going to just answer this for you just right now. I'm going to give you the script that we use. Okay, so guys, what we have is we have a free Facebook group. It's called the Painless Flipping Free Facebook group because it's free. All you have to do is go type in Painless Flipping Free Facebook Group into Facebook and you'll find it. Ask to join. We have a free course on how to work with buyers, like what we're talking about right now. If you go right, the first part is picking your, picking your market. Second is finding buyers. If you go through the training, we'll give you a bonus, which is our cash buyer script. Okay, but I want you to go through the training so you just, we don't, you just don't get the script and you don't know how to use it. Okay. So anyway, it's a free, literally free training, uh, for everybody. And then, like I said, all you got to do is go get your cash buyer script. So that will be better than us just telling you, um, you know, like one or a couple of questions to ask, just go get the script. Um, like I said, again, it's just at, uh, Painless Flipping, uh, free Facebook group under the guide section. We have a 4-step course that tells you how to leverage your cash buyers to do more deals, how to do deals the painless way. I hope that helps all you guys out. Um, but yeah, Nate, do you have anything else you want to say?

Uh, before— yeah, I'll end it with— so I wanted to go through the 3 points of pain, right? So we talked about the elbow pain, which was my garage, um, thinking that the problem's negotiating, right? That's not— I, I would argue that's not the problem here, right? Not the elbow pain. We talked about the shoulder, right? Hey, we have the elbow pain because the shoulder's not working properly, right? Which is we're not analyzing the deal properly. Right, so we talked about that, but the real thing, right, the back pain that's causing all of it, or the, the tight back muscles, the tight lats, that is not having a motivated seller. Now that may or may not be the case here, right, with this specific scenario with you, but how do we know if we have a motivated seller? Guys, I'm going to speed through this in 10 seconds. If you got pen, pad of paper, write it down, or, you know, rewind this and watch it again, watch it a couple times. All right, every time you talk to a seller There's these 4 questions every single time, right? I ask these questions. Number 1, hey, Mr. and Mrs.

Seller.

Hey, Mr. and Mrs.

Seller.

Um, and I'll typically— I'll ask these questions when we're going through and I'm asking them about condition. Hey, so tell me a little bit about the house, you know, what holds the roof. Like, hey, let me ask you, have, have you thought about maybe just listing it with an agent and sort of going that route? That's question number 1. Have you thought about listing it with an agent? They're like, yeah, we've thought about it. Okay, got it. Well, what's held you back from just moving forward with that, right? We want to know what's the why. What's the why behind that? That's question number 1. All right, okay, got it. Now tell me a little bit, how's the, um, what's the kitchen like? What kind of shapes? Okay, got it. Nice, nice. Hey, you know, I, I know you said it needs this and that. Have you, have you thought about maybe just fixing it up yourself and, and then selling it? I mean, you'll, you know, you'll get more money that way. Well, yeah, I don't really want to do that. Okay, well, why is that? What's holding you back from just doing that? Okay, got it. All right. So now tell me, look, what's kind of the backyard stuff like?

Okay, got it.

Question number 3. Hey, have you thought about— have you considered maybe just renting out the property? And guys, typically the sellers will cut you off like, oh my gosh, we don't want to rent it out. We don't want to deal with tenants or this or that, blah, blah, blah, blah. Right, but if they're like, 'Yeah, we thought about it.' Okay, got it. Well, what's, what's held you back from just moving forward with that? Guys, I, I swear, if you listen to my calls, I'll say the same thing 5 times, right? Well, what's holding you back? What's holding you back? What's holding you back, right? And then last but not least, question number 4. 'Okay, got it. Well, Mr. Seller, um, I know you said you wanted, uh, a million dollars, um, for the shed, but I'll be honest, it's a tough price to get to, you know.' Is just staying in the house an option for you? You know, are you able to just stay here or I don't— do you have family or kids or, you know, maybe somebody you can just kind of pass the property on to? Those are the 4 questions. Now, guys, have a little bit of emotional intelligence, right? If you're talking with them and it's, you know, they're like, yeah, I don't have any family or this, obviously I'm not going to ask question number 4, right? Because they kind of already answered it. But we want to ask those questions. If I ask, hey, have you thought about listing it with an agent? They're like, yeah, I have. We're meeting with one on Friday. I'm going to ask once. Okay, got it. Well, what, what's holding you back from just listing it with them on Friday? They're like, well, we're planning to list it for— if we're in LA, we're planning to list it for $900,000. Okay, well, is there any reason you wouldn't just list it for $900,000 with the agent? They're like, well, yeah, we're talking to you because You said you can pay cash and close quick and there's no closing costs. So if we can get $900,000 cash and it's an easier process and we don't have to pay commission, yeah, sure, I'll do that. Not a motivated seller, right? Same thing with fixing it up. Hey, Mr., Mr., Ms. Seller, have you guys thought about fixing up? Yeah, we have. Well, what's holding you back? Well, we, we were going to see what your offer is. If you're able to pay our price, great. If not, yeah, we were going to put in granite countertops, you know, paint these two rooms, and then we were going to list it. Okay, well, that's— yeah, it sounds like that's probably the best option for you, right? And same thing, running it out when you, you get my drift, right? And guys, with making offers, last thing I'll give you, and I got this from Alex Ramosi, making offers should be like— guys, we're going all night. You know what, we're not, we're not leaving, bro.

I thought, I thought we were wrapping it up like 10 minutes ago, dude. I'm just— my eyes are rolling back.

I can't, I can't let you— once I get going, man, I just, I just want to keep going and, and give all the sauce.

Hey guys, we're gonna— I'm out of here. Uh, Nate's I was just kidding.

So last thing, right, with making offers, um, number one, if you're, if you're just getting started or you're newer, rule of thumb, like, don't make an offer on that first call even if the person's asking. Like, do your best to try really hard to not make it, even if they're like, no, please give me an offer. Be like, hey, look, I mean, it's a big decision. There's a lot of stuff I gotta take into consideration. I don't just want to throw a number.

Your offer is your— that's like your ammo. That's like, that's you. Like, once they get that from you, they don't need you anymore.

It's the only leverage you have.

That's your leverage.

So making an offer should be like proposals. Now, there's exceptions to every rule, right? But most of the time, most of the time, when somebody proposes they typically already know what the answer is going to be. Making an offer should be the exact same way. I do not make an offer unless I'm like 99% sure, yeah, they're going to say yes to this, right? Most of the time, like 80% of the time, I already have gotten a soft yes for them at that number before I even say, yes, I can do that number, this is my offer. Right now, again, that's that. Don't worry. Remember, right? Elbow pain, shoulder pain, back pain, right? Back issue. Fix the, hey, do I have a, do I have a motivated seller, right? With the questions. Then worry about, am I analyzing this property correctly, right? Number one thing is getting feedback from your buyer and listening to them. And then number three is, hey, make an offer like a proposal.

That's it. I love it, love it. Nathan, you crush it as always. And we got Glory— Gloriful Skip just saying thanks, Nathan. We actually— well, thanks, uh, was— well, actually, thanks to both of you. Well, okay, well, thank you.

You can analyze deals, but reading, reading is a— it is a strong— I love the fact that if, if you're like, dude, this stuff was great, but like you guys ran through some of the stuff really quick, or you'd love it, but the— like, like he was saying earlier, the Facebook group, it's free and we do a lot more stuff in there. We go live, we, we post stuff specific specifically in there. Um, so if you want to kind of know a little bit more as to like, hey, you know, you guys talk like, tell me a little bit more about those qualifying, you know, Nate, tell me a little bit more, how do you handle that negotiating part? Like, how, how do you handle that process, you know, to making that offer? Guys, join the Facebook group, post questions in there, because we look at that like pretty much like a hawk. Um, and we like that, right?

My guy right here, Idris, right here. Which is Gloriful Skip just joined. Round of applause for Gloriful Skip!

He did it, he joined the group. So yeah, if you guys want to know more, you know, keep watching us on YouTube, but definitely the Facebook group's a great place too. Uh, and yeah, hope to chat with you guys and see you guys all there.

And look, when you guys join, you're part of the family, just like Vin Diesel. All these Vin Diesels family, you're part of it, guys.

Let's go!

What, you know, then you know Vin Diesel, he's all about family. He's always like family. So I figured when people join, we welcome them to the family, just like Vin Diesel.

Do you like that?

Yeah.

Well, yeah, well, it's a little different, but it's fun. Okay.

All right, everybody, we've had a good time again. We'll see you next week. We ain't going nowhere.

All right.

This is all we do. We do deals and we tell people how to do deals so we can do more deals. And we just love deals and we love helping people progress. So See you later.

All right guys, let's go over how to pick a— no, I'm kidding. Guys, love you, thanks for tuning in. Hope you got a lot out today.

See you guys soon. Later, bye.