How to Sell Your House and Pay Off Your Mortgage (Without Listing It) | Steve D. Valentine

And I believe in real estate and owning it, but I also believe there's a chess piece for a time. And I get to talk to these people about what we're about to do, which is about to pay off their primary residence with the sale of their rental property. And I could be the buyer, I could be the listing agent. I don't know, we'll find out right after this call. This call is going to blow your mind because it's actually how I present the cash option all the way through the put it on the market renovated option to my clients who are also my friends. I've known these people for 15 years. I sold them I bought my house 15 years ago, rental property, tenant is out or else they'd still keep it. And they just want ease and simplicity. And I believe in real estate and owning it, but I also believe there's a chess piece for a time. And I get to talk to these people about what we're about to do, which is about to pay off their primary residence with the sale of their rental property. And I could be the buyer, I could be the listing agent. I don't know, we'll find out right after this call.

Hey Steve. What's up, brother?

What's up, Mishayla?

Hi, sir. Hey, thanks for calling us. We've had time to go through this AI-generated document you gave me.

You know that has to be generated from my brain, right?

Dude, I was pretty impressed. I was like, dang, that one was fast, and two, this is pretty extensive.

Well, that's—

I printed it out and I read through it all. I printed it out, I handed it to Michelle. I said, hey, you need to read through all this. And she goes, all of this? I said, it won't take that long.

So I'm curious, like, honestly, I mean, you know me, but how did it feel reading through that as far as digesting it in layman's terms?

I would say 90 to 95% of it was very easily digestible.

Awesome.

You know, just a couple questions as far as like, couldn't tell if in your text you answered me the, whatever that was in the—

The buyer credit?

Yeah, what was that?

Yeah, so when I do the net sheets, when, when you sell the house cash, it's a net number to you minus prorated taxes. So on the net sheet, there's always giving a credit to the buyer for their closing cost to make it zero. So the seller pays the closing cost on it. It's just a way to put it in the numbers.

Okay, gotcha, gotcha. Um, so, and then as far as like Zillow and stuff like, you know, homes.com or realtor.com, are those numbers inflated You know, as far as, um, you know, because like on here it says retail updated is $350K.

Right.

That's what putting $50K into it. But if you go on like realtor.com or Zillow right now, it says it's $345K.

Right, which is— but $345K, so here's where that number is coming from, is an average of the comps in the neighborhood and the square footage. And so like it might take a low comp that's been remodeled or not remodeled and a high comp that's been remodeled, which both should be thrown out of the averages. And it's taking both of those and just using an algorithm because it can't tell how big yards are. It's like kind of looking at condition, but it's not. And so that's why when you look at those comps, you have some like $380s that are a little bit of anomalies depending on where the market is. And it's also factoring into when you look at the, the timing. 3 months ago, our rates were different in this price range. And so the buyer pool and some of those different things just kind of change and all that. So The Zillow numbers are always kind of skewed based on condition.

Okay, okay. That's totally understandable. And then so, Path C is out for us, as you probably obviously know. We're on the fence between Path A and just wanted to have a conversation with you about the two. To be completely honest with you, We were so close on the number for path A.

Right.

Is that stuck?

No, what's the number? Remember I did this.

660.

Okay, done.

Okay. Yeah.

I mean, here's what I try to do, John, is just here's the options. Now let's have a discussion.

You right? Yeah, 'cause it's like I told Michelle, I said, I love Steve the best. And I tried, the only downfall I had was I said, he didn't look at the house. I said, the house shows well. You know what I think it's worth more to an investor than the $250,000.

Oh, I don't disagree. And that was one of those things is like, this is numbers based on data, not based on seeing the house yet, right? But still the facts are the facts. It may change a little bit. And that's always, right? We didn't really talk about it yesterday 'cause it wasn't fair to bring up was like, what's the number that makes sense to you guys for this path? And if that's an easy thing that we both win, you know, I'm gonna make some money on the other end and it pays your mortgage off and you don't have to dick around with it. All day long.

Yeah, yeah. And that's the thing, these numbers are a lot lower than what I was anticipating, just to be completely honest. But I, I trust them. And so, you know, I'm working off of these numbers because I trust you that, you know, you're not going to bend us over to make a huge profit, but you have to have, you know, meat on the bone, right, on your end also, you know. So So that's where I'm at, you know.

Yes, it's also taking on same thing, which we can say the house is in great condition when it comes down to it, but it's also taking on the risk of anything that's uncovered without knowing, right? And even though we, we kind of assume everything is great, there's always the liability of putting it on the market and something breaking. Obviously AC unit isn't going to. So those are all the things that you avoid the frustration of at that point, right? And again, if the number works, the number works. If not, we can always go to market and try and see what happens.

Yeah, because that was the thing. Like, we're not opposed to going to market.

Sure.

But like I told her, I said, you know, looking at the number and the difference between the two at the end of the day, after, you know, everything's said and done, paying the capital gains, paying off this house, what's left and what the difference is between the two, you know, it's so close. You know, at the $260 number that it's like, I don't think it's worth the risk in my mind of we put it to market at $300 and say it doesn't sell and it goes at $275.

Right.

Then we're all backwards.

Yep.

You know, and that's the thing. I'm not a risk guy. I don't do a lot of shit in the stock market. You know, I'm not that guy. There's a lot of people, they like rolling dice. You're probably one of them where you'll take on a house and sit on it if you have to.

Yep.

You know what I mean?

Yep.

If you incur that cost, until the market comes back to what it was.

Exactly.

That's the only— that's the reason this house— I bought it in the boom of '05 and lived in it for years, and it went completely upside down, but I just stuck it out because you—

you know what, you did what everybody else didn't because you had a decent mortgage, you kept it as a rental, and you know, 15 years later rolls around and we're gonna— we're gonna use that chess piece because it was never intended for like I'm gonna be a long-term investor. It was a chess piece. And now, you know, like nothing cooler than sitting at the table with you guys 15 years later and go, cool, you're gonna pay your mortgage off and you guys are completely debt-free in your mid-40s. Hell yeah, I want to do more of that.

Yeah, you want to hear a funny story?

Always.

We were at Costco this morning and we're driving the Shaleless truck and we're loading the stuff up and this guy comes by and he goes, man, nice truck, I was just thinking about that, cool. And he was kind of bullshitting with us and talking back and forth, and I told Michelle, I said, I know that guy. I said, I swear to God, that's the realtor that sold us the house on Golden Lane. I look at his license plate, and sure as shit, it was one of the Kramers, because I used the Kramers back in the day.

I know.

I'm like, I know you. And he goes, you do? I said, yeah, you guys sold me my first house. And he goes, well, that was my brother, my brother Jim. I said, well, you guys look same. So it's been, you know, 20 years, but just small world that— what are the odds? The odds that that would happen when we're getting ready to sell it, you know?

That's hysterical. Oh my gosh. And I used to— I used to hang out with those guys during the REO days because they were buddies with my partner, and that's how I met them.

They're interesting cats.

They are interesting cats. Good dudes, but funny as all get-out.

Yeah, so, but yeah, so, you know, just like I said, obviously these numbers were much lower than we anticipated, but I took to heart what you said when we were sitting there, when you said there's what you expect and what the reality is.

Yep.

And I took these as, okay, Steve's given us the reality numbers of what's possible without having a huge wait period, or if we went with sitting on the market for 6 months, you know, at $300,000, it probably will move fairly quickly, you know, type things.

Sure, sure.

You know, and we're definitely— we want to definitely do the Path A because that's the easiest for us. But once he moves out, I'll go over there and anything—

Well, I mean, here's— yeah, here's the cool part is we just put this together and we just close it the day he vacates and you do the things you want to do and you don't have to turn utilities on and we're done.

Yeah. Yeah. So yeah, if we can do the $260,000, I think that's 100%. I think that's fair. You think that's fair on both ends?

Hey, I'm 100% fair on it. You know, the extra $10 grand for the relationship that we've had for a really long time, I'm not going to put that in the middle of it and I'll make a little bit less money on it and what I'm doing, which is totally fine. I want to see you guys hit the number that you wanted to. And we all win. And either way, you know, I can put it on the market or we can buy it at this price. And I think we all win at this and it solves exactly what you guys wanted to do was just ease and simplicity.

Yeah, yeah. Like you said, you make some money, we get out of it, everybody's happy at the end of the day. And next time we buy a house, we call you. Yep. Perfect. So it said in this paperwork that you guys aren't buying it, but you are buying it.

Well, either I'll buy it or we'll pass it on to one of our partners to buy it that's going to flip it. Like some of my agents do flips themselves. And so some of them are looking for rental. So it just depends on what happens with the exit. So it's always, we buy the property and then we start noodling through what do we want to do to it. Do we want to take it to market? Do we want to fix it? Does one of our partners want it for their rental portfolio? Those types of things. And then we just connect the dots and we make a fee in between when somebody's looking for something like that.

Yeah, that's what I was going to ask you is how that works for you on something like this. If you pass it on, you still make some money even if you You pass it on.

Yeah, because what it is, it's referred to as a wholesale fee. I call it a connection fee. So we've had the conversation and most wholesalers do this. They get you locked in and then if they can't buy it, they cancel on you. I'm always going to be the buyer no matter what with that number. But if I find a partner in between that wants to pay me for that deal because they're going to keep it as a rental, then I may take that option when it comes down to it.

So you pass the liability to them, put some money in your pocket. Yep. Plain and easy. Oh, yes.

And you guys don't have to mess with anybody you don't know.

Exactly. Okay, cool.

Cool?

Appreciate it.

Awesome.

Is there anything you need from us to be in touch?

Nothing right now. I'll have Erica draft the offer and get it over to you guys for signatures. We'll open escrow and we'll start that process.

All right, Steve D Valentine.

Cool?

Thank you so much.

Thanks, guys.

Appreciate you.

Bye.

Bye-bye.

This is exactly what happens with options where agents are so worried about what their client would think about them if they gave them a cash offer, like they're trying to do something that doesn't fit everybody's morals, right? But here's the deal. Authentically, I presented them 3 options based on the conversation. They're perfectly capable of putting money into the house and reinvesting in it. They're perfectly capable of selling the house, putting it on the market, taking the time, going through inspections and all those things. But their issue is, is that they did really well on the house over time. And it's not worth the extra juice for the little bit of extra money for time. And the number that they wanted, which I was happy to give them, was like, cool, it's still a good number for me. It's still a good opportunity. It's still a win for them. And now I'm the person they get to deal with that they know and trust and will walk through that process and make everything a win. And everything was above board. They know I'm going to make money. They know that I may sell it to somebody else. And we all get to win that way. So this is how strategies work. And if you're looking for a conversation— Yeah. With a great real estate agent that can give you options rather than ultimatums, click the link below, schedule an appointment. Let's get to work.