$250k in 1 MONTH CHALLENGE (Day 27) | WHOLESALING REAL ESTATE

Your call has been forwarded to an automatic voice message system. 3-0.

Oh, what's up everybody, how we doing? What's up, Landon? Everything by John. So we have a couple more days. I'm not sure what I can see right now in Podio is my— let's see, my projected profit right now from the deals I've gotten is at $152K. But I know that's pretty skewed because I have a couple deals that are in deal issues right now because of shit with the tenants that we gotta figure out. And there's a really big one that's in there that's like a $60,000, $70,000 deal. So we'll have to see. Yeah, everything by John, bro. That, that's the thing about this business. You got to get systems in place to make it, you know, consistent to where you're getting deals closed every single month. Realtor exam isn't till July, so the meantime been helping another agent with open houses. Good shit, dude. What's up, Riley? How you doing, bro? D, I appreciate you, bro. Thank you, man.

All right.

How are you dispelling and finding buyers quickly? So dude, we list a lot of our— we list all of our properties essentially on the MLS. So we're finding a lot of buyers from there. Also, We have Investor Lift, so we're reaching out to the top buyers in that area. Right now we're, one thing we're implementing right now is we're using Privy to go find all the flip comps in an area and we're calling all the buyers who have flipped properties recently that way. We just have a very multi-pronged approach to finding buyers. What time do you start making phone calls? What time do I personally? Just whenever I can fit it in. So I had some meetings and stuff this morning, so I'm on a little bit later. But everybody else, right after our morning meeting. Did you pass the challenge goal already? No, I don't know. I mean, you guys, here's the thing is we got the 30 days to get the deals and then we'll see how everything pans out over the next 30, 45, 60 days. All right, very nice, use flat fee. Flat fee, yeah. Listing everything in flat fee.

Yes.

Hello, Michael. Oh, gotcha. It looks like somebody filled out some information on my website about selling a property on Park Circle. Is that you? What's up, Rod and Kia? How you doing? Bryson, my projected—

Yes.

Hey, I think we got disconnected. Were you not the owner of the place over on Park Circle in Monroe? Yes.

You are the owner?

Not available right now. Okay, when should I give a call back, do you think?

Tomorrow.

Okay, sounds good. Well, I do appreciate it. Guys, so with these wholesale deals, right? Especially the process I'm using, it's a little bit longer of a cycle. It's not like you get the deal and sold and you make your money 2 weeks later, right? So I've got 30 days to get as many deals as possible. Right now we're at 17. Out of the 17 I have, my projected profit is at $152K already. So over the next 30, 45 days, as more of these deals get into marketing, as we resolve tenant issues, things of that nature, we'll see what it comes out to. How exactly do you find buyers on Privy? So guys, this is something new that I'm just now starting to do. But essentially what we're doing is going and looking at the flip comps, and then we can just see who are these people who flipped houses. They got their name right there. I skip trace the name, we call them. Hey, looks like you just flipped this house, are you looking for another one? You look like Tom Hardy. I haven't gotten that one before. I'm a fan of Tom Hardy though. Can you do the exact same thing on Zillow or no? No, because Zillow isn't going to show you which houses were flips. Like Privy, you can literally see and it'll show you the house that was a flip. It'll show you the before and after photos. Like you can tell that they're flips. And then you call those guys. What's up, Brayden? How you doing, bro? All right. You look like Tyson Smith. Facts, facts, facts, facts, facts. "How many hours do you call a day?" I don't know, I don't keep track. "Do you flip houses?" I flip contracts. But I think I'm going to start doing some flips, guys.

Hello?

Hello, Jeff?

Yeah?

Hey Jeff, this is Tyson. Looks like you filled out some information on my website about selling a property over here in Rifle.

Mm-hmm.

Did I catch you at a bad time?

No.

Awesome. Well look, I wanted to just ask you a few more questions about the property. To see if it fits my company's buying criteria. And if it does, then we'll go ahead and be able to get a cash offer for you. Does that sound good?

Mm-hmm. Yeah.

All right. So I got the— I'm getting the property pulled up right now. While I am, can you catch me up to speed here on the situation? What's got you looking to sell this place?

I retired and just don't want to deal with shoveling snow anymore.

Yeah. Looks like there's a ton of land. That must be a lot of, uh, snow to shovel.

No, just the driveway and stuff. But yeah, it's 11 acres.

Okay, 11 acres. Let's see, I've never heard of Rifle before. Is this outside of— is this close to any like major metropolitan area?

No, Mountain Mountain.

Gotcha. Okay.

About 45, 50 minutes to Aspen.

Okay, nice.

About the same to Grand Junction, southwestern slope.

Understood. Okay, gotcha. So, uh, I take it that you're currently living in the property?

Yes.

Okay, and do you have an idea, you know, if we were to buy it from you, where you'd move to?

Um, no, I'm looking at a couple different places.

Yeah, would you be staying in Colorado or—

Hello? No, I wouldn't be staying in Colorado.

Okay, well, what would your kind of ideal timeline look like? So one thing people love about working with us is that we actually allow you to pick your close date. So some people want like 30 days, other people want more. Do you know what kind of timeline would work best for you in your situation?

Um, you know, 30 days or so, yeah, I'd be fine. Okay. Okay.

So I got the property pulled up now. I'm seeing 3 bedrooms, 2 baths. Is that right?

Yep.

Okay, and then it's showing the property square footage is 1,736.

Yeah, and then there's an upstairs that's insulated in sheetrock, um, just not finished. Another probably, I think, 1,100 or so square foot, and it's on a full basement.

Is the basement finished?

No.

Okay, so wait, can you kind of, uh, repeat what you said about the upstairs? The upstairs has some sheetrock that's unfinished?

No, no, the upstairs is sheetrock and insulated, so it just didn't— no floors, no flooring, no doors except for the main door to get into it.

Okay.

And Verizon 2 rooms right now.

Okay, gotcha. So sounds like, uh, if we wanted to, to get this house up into like perfect condition, we'd probably need to, to do some work up there.

Yeah. Okay.

And are there any other repairs that the property may need?

Uh, no, because I'm getting a new roof put on it starting tomorrow. It had some settling that I fixed last year. It's got a lifetime warranty. They came in and put rods in the basement and lifted the house back and put it all back solid. Okay.

All right, so the foundation's good. You said new roof. How about like an HVAC system?

Uh, it's your regional furnace and air conditioner.

Okay, so it's going to be about like coming up on 20 years now?

Yeah, yeah. Okay, it's a high efficiency, so—

okay.

And then what's the, uh, what's the parking situation? Is there a garage? A 3-car garage plus Is the property on city sewer? Is there a septic tank?

Okay.

And so 2 stories with a basement?

Mm-hmm. Okay.

And then as far as all of like the cosmetic stuff in the interior, things like the flooring, countertops, cabinets, paint, uh, bathrooms. Is all of that original, like from when the property was built in 2005, or have you made any updates to the property since then?

Yeah, it's all original. It needs new flooring in that. I've got— actually, I've got enough hardwood flooring to do the whole downstairs.

Okay, so, uh, based on the property's current condition, uh, what do you think is a fair price for it?

Um, I'd like to with, uh, sales around me recently and that.

Okay. And when do you think you'd be able to do that?

I don't know. Um, I don't have an idea when I'd be able to get in time to do all that stuff right now.

Okay, well, yeah, I mean, I'd like, you know, you to kind of figure out what it is you want for it, and then I can see if that's something we can do. Does that make sense?

Yeah, makes sense.

Okay, so I mean, it kind of sounds like you got some research you want to do. I mean, do you have any idea of kind of a number that it's like, hey, you know, if you guys get this I'd be willing to do a deal today, or you feel like you need to do some more research?

Um, well, I guess I, I'd be open to what your offer would be and say yes or no, but—

Okay, I mean, do you have an idea of sort of a ballpark of where that offer would need to be?

Well, I know, um, you know, it needs updates and stuff and fixing here and there, but, um, I think how up in this area are all going, um, like for over $600.

Yeah. I think we need to be somewhere around there, like $600,000.

Yeah.

Okay. So 11 acres, everything in the property sounds like it's going to be original. Probably some work to be done with the flooring and upstairs. Very likely we would need to put a new AC unit on it. You're putting on a new roof and the foundation is good, so that's great. Besides that, is there anything else you think we should know about the property before I take this information to our underwriters to let me know how much I could pay for it?

Well, the basement, like I say, they cut out the squares to put the rods in. So there's some of the— about a third of the basement, I'd probably have to be rip, um, cut out and record?

Um, like the ground in the basement?

Like the cement in the basement.

Gotcha. Okay. And you said that it's— okay, cut out.

They put 9 titanium rods, or 10 I believe, around the back, the one side, back of the house. That And to do that, they cut out like 2x2 squares of the cement, and then it— the basement heaves because of the settling. So you have to cut, cut part of it out and repour. So because it's a walkout basement, but you can't walk out right now because the heave that went with it.

Okay. All right, Jeff, uh, well, I believe that is everything we need now. Um, I do want to ask, you know, if I'm able to take this information to our underwriters and, you know, they let me know what I could pay for it and that offer makes sense to you, uh, how soon do you think you'd be looking to make a decision on selling it?

Um, sooner or better. All right, great. Like I said, retired a couple months ago, and I'm just slowly selling stuff off and like I said, getting the stuff done that needs to be— that I need to get done. Yeah, so the roof is leaking, so I'm getting that fixed. I've got a guy coming in to fix all the sheetrock and insulation, so once the roof's on, then I can finish all that stuff.

Gotcha. All right, well, let me take this information over to them. Uh, we'll look at the property together and then I'll be able to give you a call back probably in the next like 10 minutes.

Okay. Okay. It's got, uh, mineral rights too.

Oh, there's mineral rights on the property?

Yes. When the oil re— when the oil was out here, I got some payment from them because of the rights are with the property.

Okay, excellent. I'll make sure to take note of that. Thank you. All right, Jeff, well, let me take this over to them and I'll give you a call back shortly, okay?

Okay, sounds good. Thanks.

All right, thank you, Jeff.

Bye-bye. Bye.

It's a hard guy to talk to. Yeah, like, like you said, Zach, this is definitely fucking out there. Now there's a ton of land. So there's this lot for sale, 20 acres for $500K, but it's been up 90 days. This just came up 3 days, 37 acres for $995K. This is the best comp. So there's— or no, I'm sorry, not this one. This one. So similar size, looks as is. How many acres is on? 10 acres. This is a very similar property that sold as is at $650,000. So let's see, it was listed for rent in 2020 at $1,800. The listing was removed about 2 weeks after, and then it was sold 2 years later just for $650,000. So it looks like it could have been a cash deal. Let me go ahead. I'm going to search this on Batch. I'm going to see who the owner of this property is, see if they have an LLC, some sort of real estate investor LLC. I want to see if this is a cash deal. Okay, no. Well, I mean, it could be a cash deal, but I want to see if an investor owns it. Nope. Okay, so they bought it retail for $650,000. Wait, the seller was an investor. Interesting. Okay. All right, I'm going to want to be a little bit conservative on this. Definitely not going to wholesale this. This would need to be a novation.

530.

Alright. Okay. Hey, Tyson, been thinking about starting a wholesaling business. Is it realistic to scale to $100K profit per month within a few years? Do you think you can still do this a decade from now? So, Justin, I think it's absolutely possible to scale to $100K profit per month within a few years if you have the right guidance. So $100K profit per month, assuming you're running at like a, let's say a 30% margin, you got to do $300K a month. I think it's absolutely possible, but you got to have a good game plan. You got to know what you're doing. So I think if you're just a complete like new noob to like owning a business, wholesaling, that's going to be very tough to do within a few years. But I think like on a timeline of like maybe 5 years, absolutely. Do you think you'd still do this from a decade from now? Yeah, I 100% think so. I think wholesaling is here to stay. Look, Wholesaling real estate. People are wholesaling across every single industry. People are wholesaling cars, private jets, right? It's just brokering deals and it's finding a little bit of arbitrage in the middle of between finding a buyer and a seller. It's always going to be around. Maybe it'll be called different names. Maybe the process will be slightly different, the way the paperwork works, things of that nature. But I just don't know how it, how it goes, you know, just gone. Here's the thing is that people are always going to need to sell their houses. And there's always going to be people who want to buy discounted real estate. And it would take two of those things to change. Either people no longer just want to sell their house, or two, people no longer want to buy discounted real estate. And if that happened, that means like the communist regime has taken over or some shit like that. All right. Let me go take a piss. We'll call this guy back. We'll make him an offer. All right, so I think that this house sells on the market somewhere between like $600,000 and $650,000. So, um, on like an Ovation, we're gonna need to be somewhere between $500,000 and $530,000.

All right.

Hey, Jeff.

Yeah.

Hey, Jeff, so this is Tyson again. Is now still a good time to go over the offer?

Sure.

So we were able to take a look at the property, and I think what you're saying, I think houses are selling for, you know, like around that $600,000, maybe even $625,000 range on the market. Based on what you told us about the house, Right, it is going to need some repairs and things of that nature. And for us to buy it on a full cash deal where we're covering all the closing costs, we're buying the property as is, meaning you don't need to make any repairs, anything like that, and there's no realtor fees, we would need to be somewhere around like $515,000 for it.

515. And that's— That mean, what do you mean it's hard, more repairs?

I mean, we're buying it from you entirely as is. So it's like, you know, we would come by and we would do an inspection for our purposes, but it's not like a full inspection like houses typically get when they're sold. It's just for us to figure out what we're gonna do. But meaning it's not like it's $515,000 less, oh hey Jeff, we're gonna fix this, this, and this, that's gonna total $20,000, that's coming out of your pocket. No, that's our total amount net to you.

Okay, I think you're a little low on the sales, but for prices around here, because that might be tax valuation is 6.5, 6 over 650.

Oh, I mean, yeah, look, I think that on the market you're gonna sell for over 600. I think that that's absolutely a possibility. But I'm looking at this property, we're investors, we want to make money. And on a 1,700 square foot house, we're going to come through and redo the entire place. You know, we're going to see— we probably— I mean, our repair budget on this property with the AC, but plus also all the updating we're going to do in the kitchens, the bathrooms, the flooring, paint, everything, we're going to sink, you know, $90,000 into it. So we're going to be planning to sell it for over $700,000.

Buy it, which would probably be probably easily done. But, um, um, so, uh, I've already let— you know, the thing is I've already got the roof coming on. That's already— so you're gonna have a brand new metal roof.

Yeah.

And I just painted it a year ago.

Oh, you painted the outside?

Yeah.

Okay, I didn't know that.

Yeah.

What, what color was it painted?

Uh, it's a blue. Okay, like a Cape Cod blue type color. Nice. Okay, that roof's gonna be with white trim, but in the roof, so, uh, I'm not putting the metal roof on the garage because the garage just fine. But, um, like I say, the shingles kept blowing off on this and leaking, and I've replaced them many times. So I'm just going with all metal, and that's a, a light gray color. So blue and light gray.

Okay, very nice. Well, I mean, that, uh, definitely probably gets me some room where I might be able to get you a little bit more up.

And when would you like— I mean, uh, I'd rather have you come and look at it and then, you know.

So, so here's the way our process works is, I mean, number one, we're able to get a very good idea for having the conversation with you, um, and looking around at the other properties. But so the way it works is once we can agree on a price, right, we send you over the offer in writing, we go through it, right? And then we're going to send we're going to send our photographer out to the property to go get the photos. And then the owner of the company will look at the photos and he's going to decide, yep, this is going to be the project that we're going to hold and flip. And then at that time we'll go ahead and get you an official close date. Or there's a possibility where it's like, uh, no, we don't want this one, but we can go ahead and give it to one of our financial partners that we work with. And that doesn't change anything with you or anything like that, anything with the price or the deal you're getting, anything like that. It's just it would be a different buyer, somebody that we work with. Um, but, uh, yeah, so we don't go see properties until after we have something in writing.

Right, right, understandable. So, um, so with the, the new roof being installed, um, the Is that gonna bring it up anymore?

So I had already accounted for the new roof on there, but I did not account for the paint job. Uh-huh. So I can go see. I mean, typically I'm gonna be able to get, you know, maybe like $5,000 to $7,000 for something like that on the value.

Okay.

So you think if we could come somewhere up to like $522,000, that would work?

Yeah, probably.

Well, I mean, look, here's the thing, Jeff, is, is, you know, I can go fight for anything you ask for, right? You know, I can go see. So if you've got a number where you're like, hey, look, Tyson, if you can come up to, to here, then I'm ready to move forward, that gives me a lot more negotiating leverage with the underwriters because, right, you know, it's the start of the week, we want to get our houses bought this week and be good to go.

So I was thinking more than the $550.

Gotcha. Okay, well, let me see what I could do. I think that that jump is probably gonna be pretty big. I'm not positive I'll be able to get there, but let me see. Let me tell them that you painted the property. I'll let them know, you know, hey, the roof is metal. He's putting on— he's, you know, it's giving me a nice little look. Do you think that Do you think that you'd be able to send me some pictures of the property right now?

Um, I probably could. I'm in the middle of fixing stuff, so there's—

Well, just if you could send me a picture of like the property from the outside, like if you could go in front and just snap a picture of the front so I could see the paint.

Just to let you know, the garage also has an upstairs storage.

Oh, gotcha.

Okay. Oh, I mean, it's not like apartment type storage, but it's got stairs going up and, um, plenty of room to store stuff up there.

Okay, well, yeah, if you could, if you could snap a picture just of the front of the property, I think that would be really helpful so we could see that new paint and everything. Um, and then I'll let them know, hey, new, you know, metal roof coming on as well, and then you know, let me see how close I can get them to $550, okay?

Sounds good.

All right, Jeff, you could just text those pictures right to this number, okay?

Okay, sounds good.

All right. Do you think you'll be able to send those, like, soon?

I'll get done next half hour or so, if that's okay.

Perfect. Well, after I've gotten those photos and I've been able to take a look at them and I'll bring them over to the underwriters, I'll give you a call back, okay?

Okay, sounds good.

All right, thank you, Jeff.

Bye-bye.

Bye.

Solid.

Yeah, Austin, awkward silence is the best. All right. Hey man, love some advice on how to start the wholesale game. Jay, I've got entire videos on YouTube giving you exact tutorials how to get started, bro. Go check out my YouTube channel. I got videos on there like, hey, how I get started wholesaling if I had to start over again, all kinds of different stuff. Literally walking you through exactly how I do that. All right. I'm gonna email it to Doggo and to my dad and, uh, just see what they think about it. Alright, so let's kind of take a look. I didn't really get an ARV. I really only had this as-is comp. Let's see if I can find some better ARV comps. Yo, Bumblebee, you'll hear that a lot, man. A lot of our deals come from people who want real— well, they want retail. But they don't want to hire a realtor. And it's just a matter of walking them through the conversation and being like, okay, well, let's look at the comps. Here's the other houses, here's what they're selling for on the market. How much do you think they paid in realtor fees? This, this, and that. Okay, well, this house has this, this, and this that are selling for that number that you want. Are you willing to put in the money to fix it? Okay, no? Well, then that's why we have to be here, right? It's walking them through that sales process. And then also it's following up on your offer conditions. Consistently. How often do you go to real estate networking groups? I try and go as much as I possibly can, but I don't know, probably one every couple of months. Digging the Lululemon shirt. Thanks, Riley. How close are you to your goal? Guys, I don't really know. I think we're close though. Before starting wholesaling, have you thought about running other popular business models like e-commerce, SMMA, or just normal B2B service-based business? What made you pick wholesaling? No, dude, I picked wholesaling because I graduated college and my dad was like, hey bro, let's do this. This shit's fucking sick. Because my dad had done a few wholesale deals before we got started and I was like, all right, fuck yeah, let's do it. All right. How much for me to fly out to Arizona and clean your windows? Lol, just started a window cleaning business. What? Are you asking how much you'd have to pay me to do that? All right. "I can't get people to answer their phones. Any tips? Leave texts and emails too, but no response." Call them. Keep calling them, bro. Call them 10 times a day. "Do you believe it'll be easier to jumpstart my wholesaling business if I already have good capital?" I mean, yes. Capital always makes things easier. All right, so we have this one at $650,000. What is this? $665,000. Okay, this is on 5 acres, sold for $665,000. So really not updated, but it's definitely another good case for it selling over $600,000. It's just land. It's all for 600. This is a nice home. It's under contract, $800,000. It's much bigger. But I don't really want to go too much here in downtown Rifle. I want to be looking more at this stuff. I just don't really have any ARV comps, honestly. Okay. What do you say to the seller when explaining the process? Rod and Kia, I just said it to him. I'm like, hey, listen, we're going to, you know, once we agree on a price, we go to something in writing, we send over a photographer, photographer. The owner of the company looks at it, decides if it's something we're gonna buy or if it's something that we're gonna pass off to one of our financial partners, and go ahead and get this done. Yes, Rifle, Colorado, Wade. Bobby, so I just looked in Podio. My projected profit from my 17 deals already is at $152K. So this is with plenty of them still not being marketed or anything like that. So I just gotta find another $100K within those deals. I think there's like 6 or 7 of them that account for that $152K. So we just have to see. Will you be my mentor? I mean, depends, man, if you're a good fit. All right. Move that guy to negotiating. Do you quit your job before wholesaling? Do you start and quit later on? Jerry, I didn't have it. I graduated college and went directly into this, man. Did you make more than you would in a normal job? Yes, absolutely. How do you know if the property will be a good deal? I'm buying it at a good price. What is an Ovation agreement? It's an agreement that allows us to sell our wholesale deals to retail buyers. Can you start out making $80K a year working under somebody in real estate with a bachelor's degree? Uh, yeah. Did you hit 250K? I don't know. How close are you to the 250K, guys? I think, I think we've passed it. I don't know, we'll just have to see. Do you think my dad is cheating on my mom? Um, yeah, man, probably. I'm sorry to tell you, but probably.

Please leave your—

All right, what degree did you get? Finance and real estate was what I studied in college. What's up, Spray Foam Guy, how you doing? Hello? Hello, Venus?

Yes.

Hey Venus, this is Tyson. Uh, looks like you filled out some information on my website. About selling this property over in Alton?

I did.

Did I catch you at a bad time?

No, not at all. I've been trying to put my house on everything possible, so you're the first one that calls back so far.

All right, so it sounds like you definitely want to sell this place.

I do, yes.

Okay, well, what I'd like to do is ask you a few questions about the property, and then I take that information over over to my underwriters and they'll let me know how much I can pay for the property. Uh, the whole process will take about 15-20 minutes. All right. Um, so I'm getting the property pulled up right now on my end, Venus. Uh, while I'm doing that, can you kind of catch me up to speed here? Uh, what's got you looking to sell this place?

Oh, I gotta downsize. It's a 5.5-bedroom home, 4 levels. And it's just me, my fiancé, and 2 kids now.

Sorry, did you say 4 kids?

I adopted like 3, 4 kids, so we need a big house. One of my daughters grew up and moved out. Now we took emergency custody over a 3-year-old, and I definitely do not need him to be by this highway. Or it's not even a highway, it's like one of the main streets in Alton, like right by a school, things like that. He's 3. I just can't have Yeah, okay.

Um, so I'm sorry, did you say that the property was 4 levels? Yes.

So I know it looks small. When I first time I saw it, I thought it was a little bitty house too. I walked in and it sure wasn't.

Okay, so can you kind of describe to me the 4? Because it looks to me like I can see the one on the top, I can I see the main level and then I can see there's a basement, but where's the fourth one?

I don't know. There's a whole other level than the basement, but on top has two bedrooms, um, right and left. And, uh, on one of the bedrooms has half a bedroom. Uh, in the main level, what do you mean half a bedroom? Well, there's five bedrooms all together and there's an extra room attached to a room. Okay, so they can make it— well, we made it to another bedroom, what we did, but it is a half a bedroom. It's like connected to the room. You can make a big old room out of it originally if you want to cut the half. It's originally 5 beds.

Okay, and then how many bathrooms did you say there were?

Would be 2 and a half.

Okay, and then I'm showing that the property is just over 2,000 square Does that sound right?

I, I think so. Don't quote me on that, I could be wrong, but I took a guess on that one. I was trying to get my feet and do this all at the same time, so I didn't quite find the footage. Okay, but if you could find it more nicely, please let me know.

All right, um, I'm seeing that the home was built in 1920. Um, just wondering if there's any updates.

That was the '80s, I'm not sure though.

I'm just seeing from tax records say 1920.

Okay, I have no idea what they put on there right now. Sorry.

Do you know, do you know how old the roof is that's on the property?

How old do you think the roof is? That was already done before we moved in, wasn't it? Yeah, we've been living here for almost 3 years and it was 2 years old when we moved in. Okay, so now maybe 5.

Gotcha. And then, um, how about like an HVAC system? Is there a central air on the property?

Yes.

Okay, do you know how old that unit is?

You know how old the unit is out here?

Yeah, almost—

wait, no, that's a little bit older, but it does work. Really?

Wow. Okay.

Um, so it looks like you guys bought the house in 2021. Uh, you made any changes to the property, like paint, uh, flooring?

We turned the kitchen— well, we turned the kitchen into a Harley-Davidson kitchen. So the ceiling is like orange and black and the borders are all motorcycle. Um, my dad kind of sort of made the basement into a bedroom slash workroom, but that's partial finish and there's a walkout to that. Um, the ceiling got redone and it looks really nice, uh, last year in the living room. All we need there is trimming. I haven't quite got the trimming in yet. And, um, that's— oh well, we got drop ceiling. I'm sorry, we redid the bathroom on the main level. And the master bedroom, the drop ceiling as well, and that's it.

Okay, gotcha.

Um, we did—

hold on there—

we did put some drywall in because when we moved in here it needed a little tender loving care, but we have not painted over, so maybe it's fake.

Okay. Um, how much are you guys hoping to get for the property?

I signed up for 72, but at this moment, to really be honest, I will settle for 60. I do need to get out of here, and I— it's imperative.

Gotcha. How soon would you guys like to be moved?

I like to be out here by the 28th or the 1st. I mean, I hate to pour out my personal life, but not court-ordered, but when we took emergency custody of a 3-year-old, we're kind of being pushed to be off the main street. Does that make sense?

Yeah.

Yeah.

Okay, um, let's see here. One thing I am worried about is— all— so Alton, let's see. Okay, it's got a population of, uh, 25,000 people.

Okay. Um, really?

Wow.

Yeah, I just wanted to see, uh, how big this place was, but, uh, okay. So you guys are looking to get $60,000 for it?

Yeah, that'd probably be the lowest I can probably go. Maybe $55,000 if I had to, but that, that's it, because we did put another bedroom in, and I'm leaving materials and a— and an appliance, you know, things like that. So I don't want to lowball myself as much as I put in this house either.

Yeah, well, I'm gonna be honest with you, from what I'm seeing, this, this like area is just gonna be too small for us. Like there's really no room for us to— like we're investors, we're looking to make money, and I'm just not seeing how we're gonna be able to make any money on it even if we buy it for $55,000. $75,000. Uh, have you spoke with any realtors about listing the property?

I did speak to a realtor and she kind of just kind of— I don't know, she was a very, very sweet person, but it seemed like she just wanted to get out of the contract more than I wanted to sell it.

Interesting.

So I mean, it was set for $90,000 when I fixed everything. I was gonna fix everything and put more materials in it. Then she made me drop it down to $72,000 less than 2 weeks. And then it kind of seemed like she just didn't want to deal with it no more. So now I'm stuck at $72,000 and she got a bail money. So we kind of got out of that contract.

Gotcha. Well, I'm thinking that's going to be your best bet. I mean, I'm looking around and right now there's 2 houses for sale that are kind of near you for $38,000 and $27,000.

Oh, I can't go that low. There's too much I put in this house and build another bedroom on. I definitely cannot go that low.

Yeah. Um, do you have a mortgage on this property?

No, sir, I don't.

Okay. Um, yeah, I mean, look, here's what I'm gonna tell you is, is you're— if you're wanting to get the most amount of money for the property, the way you're going to do do that is by listing it.

Um, yeah, like I said, I already did that and I definitely don't— I mean, I don't mind if I had the time to be in the home, but I don't have much time to be in the home because of my child. But I, I don't know, I really would, but it's not fast enough for me from what I'm trying to do, you know what I mean?

Yeah, I hear you. All right, well, I'll take a look and I'll see if our company is interested in making an offer on it. And if it is, I'll give you a call back. But more than likely, they're going to say that there's just— there's no room for us to do anything here. So, okay. All right. Well, I do appreciate your time, Venus.

Yeah, thank you very much. Appreciate your time too.

Yeah, I wish you the best.

Have a good day.

You too. Bye-bye. No mortgage. Can't go sub-2. I mean, it's just this area is bad. It's always bad. All right. Can you at least say you are so we can see this kitchen? Oh, yeah. Also, we put a Harley-Davidson kitchen in the property. What the fuck? What? Oh, you painted your kitchen orange and black. Oh yeah, no, you know, buyers love that actually. No wonder, no wonder that. Ah yeah, dude, that sucks. That's just, that's really bad, just bad decision making there on that end. Was getting your degree pretty difficult? No, college was really easy. You just gotta learn how to jump through the hoops. I don't know, man, I, I fuck, I didn't go to class in college or anything like that. I showed up to take tests. That's it. Instead of going to class, I just fucking hunker down in the study room in the frat and learn whatever we're supposed to do in like 15 minutes rather than go to class for an hour and a half. Yeah, I probably— I did like, like in college, it was a lot of fun because I really only had like 4 hours of responsibility that I had to do every single week. And besides that, I could just fuck off, you know. You cheat your way through. I mean, I'm I'm not gonna call it that, but I definitely had a lot of creative problem solving to getting the good grades that I needed. How many genuine offers before you close your first deal? I don't know, it depends, Eamon, 'cause more than likely at the beginning you're really bad at sales and at getting the information you need. So it's gonna take you a lot more than it would take me. But for me, pretty much every single 5 offers I give turns into a deal. How many sub-2 deals you do out of the 17? One of them is sub-2. JS Move Productions, one of them. Have you ever thought about hiring cold callers? Wait, I at one time had 20 cold callers. Hello, Brett? Yeah.

Yes.

Hey Brett, this is Tyson. Looks like you filled out some information on my website about selling this property in Texarkana.

Yes.

Did I catch you at a bad time?

No, no, no.

Awesome. So Brent, what I'd like to do is just ask you a few more questions about the property. Then I can take that information to my underwriters and they'll let me know how much we could pay for it. The whole process takes about 15-20 minutes. Is that all right?

Yes.

All right, so I'm getting the property pulled up right now on my end. While I'm doing that, can you kind of catch me up to speed here? What's got you thinking about selling this place? It was— I'm sorry, you kind of cut out there. What's that?

Over.

Don't want to hide it. Okay, wait, I can kind of hear you again now. What? I didn't hear anything that you said. What was that? Hello? Let's try that again. Do your leads come from advertising or cold calling? Advertising. Cold calling is advertising though. But no, all my leads come from digital inbound marketing. Dude not buying your BS. What? What can an associate's degree get you started at, Tegan? Look, if you're looking for advice on getting a regular job, this is not the place for you, man. Again, I have a degree and it's not worth fuck all to me. I've never even seen my diploma. I don't even know where it is. Maybe my mom has it.

I don't know.

How can you not put EMD? You can't. You do must put EMD, but the amount of EMD is negotiable. You could do $1 EMD. How would you approach the start of a cold call? Hey Brett, you still looking at selling your property over on Artesian Street? No? Alright, thank you, have a good day. Yeah, awesome. Go into your conversation. Too many people overthink this stuff, guys. Don't be an overthinker. Why would you ever paint your kitchen orange? That's a great fucking question. I have no idea.

Yeah, yeah.

So the main one— Definitely, guys, just word of the wise, don't paint anything orange ever. Just don't do it. "How would you sell a novation agreement if the seller wants a quick close?" If they want a quick close, I wouldn't do a novation agreement. "What's your ratio on deals? How many leads per deal?" Depends on the marketing source, but typically 13 leads to a deal. "You can actually do $1 EMD or does it have to be reasonable?" You can actually do $1 EMD. "It might be a Browns fan." What is that? "Do you think it's easier to get a lower priced home or a higher priced home under contract?" Typically a lower priced house. All right, Erie, Pennsylvania. Nice, I've actually heard of this place.

Please leave your message for 814—

Come on, Jamal.

Please leave your message for 814-384-3120.

All right, the only thing that makes me hesitant about wholesaling is consistently making at least this figure. Is this realistic? Yes, it is, Justin. All right, question on sub-2 deals. Your wholesale fee comes from selling the terms, right? So is it true that more or less than your wholesale fee would be smaller than just a regular wholesale deal? I'm not sure I understand your question, dude. But yeah, typically if you're wholesaling sub-2 deals, your fee is not going to be as good as if you're selling them to a flipper. All right. Why don't you leave voicemails? Johnny, I've talked about this a bunch, bro. I don't leave voicemails because at the scale that I'm doing with the amount of calls we're making, if we leave a voicemail. The time spent leaving voicemails is not greater than the time that we could just fucking call more people. Alright, Jamal didn't answer. Alright, how many genuine offers does a newbie wholesaler need to do before they close their first ever deal? I don't know, Eamon, completely depends, man. Depends on how good you are naturally and what data you're calling. "So your cash buyers are fix and flippers?" Most of the time, yes. "What do you say to people that say wholesalers prey on desperate people? Is it ethical?" I don't say anything to those people. I don't really care what they have to say. "Lol, same amount of time as answering questions on TikTok." Yes, very true. "How's the new actuations guy doing?" Oh yeah, guys, new acquisition guy didn't make it. All right. How close are you to the $250K goal? Justin, right now my projected profit from my deals is at $152K. Now there's still like probably 10 deals that has not gone into marketing that we don't know what the projected profit is. So I'm doing very well on that. What other cash buyers do you sell to besides fix and flip Who do you sell to? Whom do I sell my houses off of?

Who's your ideal buyer for flipping?

Landlords, hedge funds. Also sell to retail buyers. How do you make money off sub-2 again guys? You're just buying the house sub-2 so you can make money off it by renting it out turning into an Airbnb or you can wholesale the terms to somebody else right? How do I structure terms for deal where the owner is over 70 years old and wants his money as soon as possible? Well if he's over 70 wants the money as soon as possible, then selling on terms isn't probably a very good idea. Dang, the guy quit already? He didn't quit, but I just had to let him go. He just didn't have sales experience and I didn't want to train him up from nothing. He was a really good dude. What's up, Chase, how you doing? How many cold calls should I make per day for my first deal? As many as you possibly can, Justin. Don't put a cap on yourself. Go make 1,000. Why does it take so long to close? There's a lot of stuff that has to happen, man, in a real estate transaction, right? We have to do the inspections, we got to figure out what the fuck's going on with the tenants, we got to get the pictures, we got to get in front of buyers. Then they, you know, a lot of times our buyers are retail buyers, they need to get appraisals, all this kind of shit. There's a lot that happens. Have you ever been sued? Yes. Why do cold calls make some people anxious? I don't know. So houses that don't need to be flipped, you sell to landlords and retail buyers? No, we'll sell houses that need to be flipped to landlords and retail buyers too. Anybody from your hometown or college friends that are surprised how much money you're making? Uh, yeah, in fact, I hear about it through the grapevine all the time about kids own high school with, they're like, oh, Tyson's on social media, like he's just full of shit, this and that, whatever. I don't really care.

Hello?

Hello, Jennifer?

Yeah.

Hey Jennifer, this is Tyson. Looks like you filled out some information on my website about selling this property in Kelso.

Oh yeah.

Did I catch you at a bad time?

No, I was just moving something.

Awesome. Well, Jennifer, what I'd like to do is ask you some more questions about the property so I can figure out how much we can offer you for it. Basically, we just need to figure out some details about the property, and then after that, I take the information over to my underwriters and they'll let me know exactly how much I can pay. And then go ahead and we'll have a written offer for you in your inbox within the next like 20 minutes. Does that sound good?

Yeah.

Awesome. Jennifer, while I'm getting your property pulled up over on my end, can you catch me up to speed here? What's got you thinking about selling this place?

Oh, well, it's too big for one person to live here. I thought my mother was gonna move back and move in, and she's not going to, so it's too big for one person. And 2,400 square feet, 2 levels, 3 bedrooms, 2 baths, 2 kitchens. It's got a 10 by 50 deck on the upper level. It's just way too big for one person.

Yeah, that makes sense. Um, looks like you just bought this property this year, right?

Yeah, I did, dude.

Yeah, I did.

So, um, if, if you if you can make me an offer, can you text it to me? Because I have no access to no computer at all.

Yeah, I mean, we can— yeah, we can do that.

Um, the lower level, it, um, it has 2 bedrooms, bathroom, a kitchen. Uh, each level has a fireplace. The lower level has an insert. The upper level does not. It's on a dead-end road. It's very quiet, private.

Okay.

Um, does the property need any kind of repairs?

Uh, there's, there's one window that has a crack.

Okay.

But otherwise, it's got new flooring in it. The kitchen, the dining room, the bathroom. Um, the carpet's new upstairs and downstairs, 'cause there's carpet in each bedroom and in like the family room area.

Okay, so, um, how much would you be looking to get for the property?

I was hoping to get $360,000.

Okay, do you have a mortgage on the property?

Yeah, I do.

Do you know kind of what that balance is?

Not right this second.

Okay, so is what I'm gonna tell you is just because of how recently it was that you bought the property, I can't imagine we're be able to pay much more than what you paid, right?

Now, because I don't want to—

I can't—

one person can't live here. Yeah, I'm gonna have to accept the best offer and walk away because one person, it's way too much.

I get that.

You can't do it.

Well, so as a real estate investor, you know, we, we specialize in finding, you know, creative solutions to people. Now here's what I'm going to say looking at this property is from what I'm seeing on the market, I think you're going to have a very tough time selling the property and being able to walk away with any amount of money in your pocket without, like, it looks like you'd have to, even if you sold it at 360 on the market, you're going to have to pay realtor fees, closing costs, things like that. Right? And depending on what your mortgage is, It sounds like you would probably have to bring money to the closing table in order to sell your house, which doesn't make any sense, right?

But if you guys want to make me an offer, great.

Well, Jennifer, here's what I want to tell you is there is something that I'm thinking of that might work where we would pay you to take over your mortgage. I don't know anything about that kind of stuff, so So, how it works is we would become responsible for making your mortgage payment every single month. So you would sell the house to us, the mortgage stays in your name, and we become responsible for making it. So you no longer have to make this payment or anything, the house is no longer yours, you don't have to worry about making repairs to it or anything like that. You just know the mortgage is paid every single month. And then typically we can, you know, have you walk away with a couple $100,000 as well that we just pay you on closing.

Okay, well, send me your offer.

Okay, so on this kind of thing, I can't really just like send it to you. I kind of have to like show you exactly how this works. It's called— I mean, it's called buying a house subject to the current mortgage.

Yeah, I don't know nothing about that.

Yeah, I mean, most people don't. And that's the thing, is this is where in situations like what you're telling me, where you just bought the house, more than likely it does— it has not appreciated enough over the last 4 months in order for you to sell it and be able to walk away with any money.

Oh, I'm walking away with something. I'm not gonna walk away with nothing.

I gotta put that furniture there.

No, okay, I'm gonna have to get off the phone right now. So if you'd like to send me an offer, great. I I got people trying to move stuff around.

Okay, so how would you like me to send you that offer? Texts. Okay, so you just want me to text you, hey, we're interested in taking over your mortgage, and then we can give—

no, whatever you can offer sent to me on a text and I'll take it from there.

Okay, but the best, the most Look, if I'm just going to— if you just want like a regular offer where I just say, hey, we'll just pay you cash this amount, it's going to be way less than what you owe, I think.

Well, that ain't going to work, thanks.

Right. That's why I'm trying to— I caught that lady at a bad time. The mortgage is most likely not assumable. I'm not looking to assume the mortgage, Jay. I'm looking to buy it subject to it. Completely different. What's up, Connor? How you doing, bro? All right.

All right.

Can you explain buying a house subject to with a conventional mortgage? Yeah, easy. You buy the house, title transfers to your name, you set up with a mortgage servicing company to pay off that mortgage on behalf of the other person. How do you make your money buying the property? Property subject to, because now I could buy this property. I just buy it for the mortgage, I give her $5,000, and I just got into this 2,400 square foot property in Kelso, Washington for $5,000. You know what I'm saying? Now I own that property. I can rent it out, I can list it on Airbnb, whatever the fuck I want. All right, make some phone calls. All right, how is that subject to if you're paying off the existing loan? I don't— what? What do you mean? Respect, bro. Why does the house have to stay in her name though? The house doesn't stay in her name. The house becomes in my name, but the debt stays in her name because she's the one who qualified for that debt, not me. She's not going to make money in the end. Yeah, I would be able to give her money at closing. So like typically it would be like $5,000 to $10,000. But here's the problem. She just bought this house for $351K 4 months ago. The house is not worth— look, for her to sell this on the market, she's going to pay about 6% in realtor fees and like probably $4,000 in closing costs. So she sells it at $360,000. What is $360,000 minus 6%? Someone smarter than me. $360,000, 1, 2, 3, minus 6%. $338,000. She's already $12,000 underwater. With this, I can give her $5K so she actually walks away with money and I take over the mortgage. It's a creative solution to her problem. I think she had equity in the house. I don't think so, she just bought it. Now, if she put down for some reason 20%, then maybe she'll be all right. But that's why I was trying to ask her about this and she didn't want to talk to me, so I don't know. How would she buy another home with the mortgage in her name? She probably couldn't. She'd probably need to rent. "What if the mortgage is too high for it to make sense to rent out?" Then the deal wouldn't work. Right? That's why I want to get this information from her. She don't want to move? That sounded like she did. I mean, she's out there filling out forms on my website. She definitely wants to move. I just caught her at a bad time, right? I'm gonna need to call her back again, you know, in a couple of days. Hopefully it's a better time. All right, I'm going to wait to get pictures back from our homie over in Rifle, but that's looking like— but we'll make those calls later. I'mma hop off for