$250k in 1 MONTH CHALLENGE (Day 24) | WHOLESALING REAL ESTATE

What's up, bro?

How you doing?

Good evening. It's evening where you're at? Shit, we are in different time zones, brother. What's up, Riley? How you doing, bro?

Hello?

Hello, Ray.

Who's this?

Ray, Ray, this is Tyson with We Buy Homes Cash. It looks like you filled out some information on our website about selling this property on Delaware Avenue.

Yes.

Have I caught you at a bad time?

No, you're fine.

Excellent.

Well, Ray, what I'd like to do is ask you a few questions about the property so I can get a good understanding of it, and after that One of two things will happen. Number one, the property will fit our company's buying criteria and we will have a cash offer for you. Or number two, the property doesn't fit our buying criteria and instead we'll be able to point you in some other directions. How's that sound?

Okay, that'll work.

Sounds good. Well, Ray, while I'm getting this property pulled up over here on my end, can you catch me up to speed here on the situation? What's got you looking to sell this place?

Uh, my wife passed away about a month ago and just Financial problems.

Okay, I'm sorry to hear about your wife, Ray.

Thank you.

Are you currently living in the property?

Yes.

Okay, so in a perfect world, how soon would you want to be moving out?

About a month.

Okay. So if I understand you correctly, Ray, the wife passed away and it sounds like maybe this house has kind of become a financial burden to you?

Yes.

Okay, do you still— do you have a mortgage on the property?

Yeah, I've got 3 years left on it.

Gotcha.

Okay, do you know what the balance of the mortgage is?

Uh, well, just say 3 years times $301 a month. Okay, I think it's about $12,000. Is the owner Terry?

Okay, gotcha.

Okay, so, and we'd like to be like, if I was able to make you an offer that made sense, you'd want to be moving out of this place in a month?

Okay.

Oh no, I'm asking you. Like, I'm trying to figure out— so one thing people love about working with us, Ray, is we actually allow you to pick your move-out date. So I'm just trying to figure out what would be most ideal for you.

Um, well, I'd need 30 days.

Okay.

To get out of the thing. Uh, 60 days at the most, just to make— to get everything, other things arranged.

Okay, so somewhere between 30 and 60 days?

Yes.

Okay.

Do you have an idea of where you'd be moving to?

No.

Okay, well, have you looked around?

Like, do you think maybe you're gonna rent a place? Are you looking to buy a new place? What are you thinking there?

Well, I'll probably Get into an elderly housing somewhere.

Okay. You'd like to move into, like, elderly housing?

Yeah.

Okay. Gotcha. All right, Ray.

Well, let me see if hopefully we can help you get there. So I've got the property pulled up now. I'm seeing it's 2 bedrooms, 1 bath, and it's just under 900 square feet.

Yeah, that sounds about right. Okay, that's the roof.

Yes, it needs a new roof.

Yes. Are they—

is it leaking right now, or—

uh, no, not really, but it does need a roof. Yeah.

Okay, what else do you—

what other repairs do you think the property may need?

Uh, just carpet basically now, and paint. You can see by the picture it needs a paint job on the outside.

Okay. Um, I see a garage in the backyard. Is that, is that part of the property?

Yes, yes, that's nice.

Okay, is that, is it one-car garage?

Uh, yeah, it's a 20 by 24 garage.

Okay, uh, does the property—

no concrete, no concrete floor. It is, um, uh, screening floor.

What's that?

It's— there's no concrete in the floor, it's just screenings. Okay, like gravel. Yeah, that's what the floor is.

The floor is gravel inside the house?

No, we're in the garage.

Oh, okay, understood, understood. Yeah, I was getting a much different idea there. Okay, so in the garage there's a gravel floor, understood.

Yeah.

Is there a basement in this property?

No.

Is the property on city sewer or is there a septic tank?

Uh, city sewer.

Okay. So on a scale of 1 to 10, 1 being we probably just should tear down the property and build a new one, and 10 being it was fully remodeled yesterday, what would you rate the property?

About 7, just with the minor little stuff that needs fixed.

Okay, so like the new roof and maybe updating the flooring inside would make it a 7?

Uh, would be better than that, yeah, but probably with the paint job too, about 8. Okay, 7 to 8, somewhere near, yeah.

All right, okay.

So based on its current condition, Ray, how much would you be looking to get for this property?

Uh, 40, 35 to 40.

What's that? $75,000 to $40,000?

Yes.

Okay, so with our offers, Ray, we pay cash, we allow you to pick your move date, we cover all of the closing costs, and there's no realtor fees. Based on that, what do you think is the best price you could do for me?

I don't know, you tell me.

Okay. Okay, Ray. Well, I'll make sure I take this information to my underwriters and we'll see what the best offer we can get your property qualified for. Before I do that, let me ask you, is there anybody else who would be upset that they weren't involved in making the decision to sell this property?

No, my wife's passed away. She'd be the only other one, so she's gone, so just be me.

Okay, and if we are able to make you an offer that makes sense, uh, say we're able to make you an offer somewhere around that $40,000 range, what would be your next step? Is it something you'd want to think about, or would you be ready to get moving forward?

Probably, probably move on.

Okay. So if we're able to make you a decent offer, you'd be ready to sign a purchase offer today?

I don't know about today. I'd have to think a couple days.

Yeah.

You'd have to take a couple of days?

Yeah, I just want the offer. Yeah, once I get an offer from y'all, then we can go from there.

Okay, understood, Ray. All right, well, let me take this information over to the underwriters. They'll let me know how much we can pay for the property, and I'll be able to give you a call back in the next 10-15 minutes, okay?

Alright, thanks.

Alright, thank you, Ray. Talk soon. Did he say $35,000 to $40,000? I don't know how you guys heard that. I can tell you we can't pay $40,000 for it.

I mean, this is—

a decently decent-sized town. It's a lot of fucking shitholes for sale, a lot of things that need a lot of fucking work. This is all it sold in the last 6 months. Junk deal.

Hello?

Hello, Ray?

Yes.

Hey, Ray, it's Tyson again with We Buy Homes Cash.

Yes.

Hey, Ray, so unfortunately, after taking a look at the property, due to the area and just the smaller size of the town, it's not a property that our company is going to be interested in purchasing. All right, on to the next. Why didn't you say that beforehand, Rox? Because I didn't know. I had to get the information first. It was in better condition, didn't need a new fucking roof. Maybe we could be interested, but Had to figure it out. Yeah, he just hung up.

That answers that.

Your call has been forwarded to a You think he might be interested?

Give him another call. Interested in me not wanting to buy it? Are you getting close to $250K? I'm not sure. I know we have 17 contracts, Dustin. 17. Tyson, let me be your first out-of-state employee. No, Treston. Not doing that. Shouldn't you throw an offer anyways? He might take. I wouldn't take that house for free. Your call has been trading the AMG for a Porsche GT3. I'd love a Porsche GT3, that would go hard, but I'd get a Huracán for that money. All right, the fuck is this? What is this? Carson, Mississippi, bro. What is this?

The fuck is Carson, Mississippi, dog?

Total population, there are 600 males and 622 females in Carson.

Nope, that won't work.

All right.

Will Gamble ever be in the live? Gamble is here today. He's fucking dicking around somewhere though. Do you hire some out of state if they're an absolute beast on the phone? No. If they were an absolute beast on the phone and wanted to move here, then yes. I would, but you need to work in the office.

Uh, find me something in Lynchburg, Virginia.

About 4 this year from wholesalers. All right, Logan, if anything comes up in Lynchburg, I'll let you know. Congrats on the 4 deals though. All right, this is what I'm talking about. Memphis, Tennessee, let's go. We can do some shit in Memphis depending on the area.

Alright.

Hello?

Hello, Katrina?

Hello?

Hey Katrina, my name is Tyson. It looks like you filled out some information on our website about selling this property in Memphis.

Yeah.

Have I caught you at a bad time?

No, I'm good.

Excellent. Well, Katrina, what I'd like to do is take about I don't know, maybe 10 minutes to ask you some questions about the property. That way I can figure out if it's a property that my company would be interested in purchasing. By the end of the call, one of two things will happen. Number one, our company will be interested in purchasing the property and we'll send you a cash offer in writing to your email. Or number two, our property or company wouldn't be interested in purchasing the property and we will give you some other— we'll be able to point you in some better directions.

Okay?

Okay.

All right.

All right.

Uh, Katrina, while I'm getting the property pulled up over here on my end, could you catch me up to speed? What's got you looking at selling this place?

Say that again.

I was asking, what's got you thinking about selling this place?

Well, um, I'm ready to move out of state, and, um, I had maybe 3 contractors come in and They didn't do a great job, but they took my money and I lost a lot of money.

Oh no.

Getting it together and it needs a little bit more work, but I'm just ready to walk away with as much cash as I can.

How much are you into the property?

Oh, I still owe $146,000, I think.

Okay.

Did you pay the contractors cash or do you also have any like debt to them?

Oh no, I paid those off.

Okay.

How much did that cost you?

Hmm.

So I used all my money on my little Home Depot card, which was $10,000. And I probably paid the contractors around Maybe almost close to $15 grand.

Okay, so $146,000 on the property and then we've put another about $25,000 into it.

Yeah, but it don't look like it.

What, uh, what did come of it?

Uh, you left me work.

Yeah, just not complete.

Like, um, the kitchen needs the doors, the cabinet doors put up. Um, the door to the laundry and the closet, um, that's in the den need to be put up. My two bathroom doors need to need doors. Um, the floors need resanded, even though I've had somebody to come and resand them and they called the police on me while I wouldn't pay them. Those need to be done again. It needs baseboards throughout the house. It needs light fixture covers throughout the house. I think basically that's it.

How about like the kitchen and bathrooms?

Both bathrooms?

No, all 3 of those are updated. You just need a little work to finish them.

Okay. What, what would need to be done to finish them?

In that first bathroom, um, I had him to reglaze the tub and, um, it's coming apart, so they need to be reglazed again. Um, there's no baseboards in there. Um, I think that's it in there. The door to the, um, laundry— to the, uh, towel area, you can keep your towels and whatnot. That need— the doors need to be put up. Um, in the last bathroom, uh, the Sink knob, he got them twisted. One is going another way and the other is going another way, so that needs to be changed correctly. Paint it, just like I said, paint throughout.

Okay.

And then how about the kitchen? Did you update the cabinets, appliances, countertops, anything like that?

I didn't do the countertops because I was going to do epoxy on there, so I didn't do that. But, um, I, I sanded, I stripped all the paint. It was 5 layers of paint, stripped all that out and sanded it down to the bare wood and repainted those. But the doors and the handles need to be put up.

The My dishwasher isn't connected to the water line, and it need to be painted.

Just minor stuff.

Yeah.

So based on all that, how much are you looking to walk away with in your pocket after selling this place?

Well, I'm looking after selling, I'm looking to at least have $30,000.

$30,000?

Yeah.

Okay. So we owe $146,000 on the mortgage.

So you'd be looking to sell it for around $176,000.

Yes, and then you guys can sell it for $200,000.

Well, if I sell it for $200,000, I'm gonna pay $20,000 in fees.

Oh, well, see, I'm losing really to myself.

Yeah, I mean, unfortunately, I'm taking a look now. Look, I'm not the person who comes up with the offers. I do agree with you, this house could be worth $200,000.

Yeah.

How many, how many square feet is the property?

Um, 1,647. I'm also open to subject to.

Okay.

How much is your note? Like, how much is your, your monthly payment?

My monthly payment is $1,044.

And is that principal, interest, taxes, and insurance?

Yes. All right.

Do you know what your rate is?

My interest rate is 4.2. I was just about to say it's 4.2.

Okay.

It's interesting. I've never had— I mean, we do buy houses subject to, but I've never had a seller bring that up to me. How do you know about subject to?

I'm educating myself on them.

Yeah, are you like following Pace Morby and listening to his stuff?

Uh, Pace Morby don't give enough down. He try to get things for free.

Oh, who are you learning from?

Um, I'm learning from a guy named Johnny Lyman and, um, uh, the Go-Getters off of Facebook.

Okay, they're real good.

Um, but with Johnny, I've been— I'm in a real estate boot camp this week with him, so nice.

That's exciting.

Yeah.

All right, so I really—

I want to—

I just want to be where I can get the most for my money for the house, uh, where both of us can be happy.

Yeah.

Okay. Um, would it be possible for you to text me some pictures of the house?

Sure.

Like, if you could send me a text of like a picture of like the kitchen and the bathrooms and the living room. Okay, that would be perfect.

Okay, okay.

Uh, when do you think you could send those?

Do I send it to this number?

Yeah, you can text me at this number.

Okay. I'll be able to.

Okay. When do you think you could send those to me?

I can send them to you within the next 5 minutes.

Perfect.

Alright, well, send those over to me. I'll take the information to my underwriters. They'll let me know how much we can pay for the house. And if, you know, we'll see what we can do. We'll see what our cash offer is. We'll see what it looks like if we go subject to. And hopefully we can make something work for you, okay?

Alright, thank you.

Alright, thank you, Katrina. Talk soon.

Mm-hmm, bye-bye.

Ain't never in my damn life has a seller said, I'm open to selling this subject to. This woman is educated, bro. Let's fucking go. Alright. Okay, why am I getting—

the fuck's going on here?

All right, okay, what's subject to? So subject to is a, uh We find—

well, I have another question. So the one we find, 5-3, and then there's Addendum Number 2. Which was you guys transferred the transaction to be handled by Envoy Title, which I guess Plano, Texas, if I remember correctly. Yeah. Um, yeah, so you got to change the title company because the original title— I'm sorry, the escrow company, there is one, does not deal with California. Yeah.

Or something.

Yeah.

So yeah, but then you sent another one that says— and then the one you sent right now Yep.

Well, this is Addendum Number 1, so the, the—

how are we already at Number 2?

Right, right, it needs to be Number 2. So I'm, I'm fixing that right now.

No, no, but what I'm saying is, but the one that was for the, the actual company changing was considered Addendum Number 2. So I'm just curious, was this already pre-printed as well, or pre-typed up? I mean, it's a little suspect because now that I look at it, this addendum for the, uh, uh, Metro company changing. This is dated 5/3 as well. Why is that?

Well, this came to me—

I was with this only 2 weeks ago, so I'm just curious. So does the date up there make a difference?

No. So the, the addendum to the contract dated, that's to specify which contract we're, we're addending or we're amending.

Oh, so the contract that was 5/3. Okay.

Yeah.

Okay, so I need to— yeah, so I need to get with my transaction coordinator and see what all they sent, like which— so that was the only addendum, right, was the one changing the title company besides this one?

Okay, so yeah, this will be Because yeah, you guys were looking originally, we're going to use Crossline Settlements. Yeah, as the escrow. And then, uh, or somebody called me, or was Mitchell, I don't care who it was, pretty much said, hey, you know, we gotta— there's the cross— did I say it was Crossline? Yeah, the Close Line Settlements doesn't deal with—

yeah, so that was my bad. That was my bad. I didn't realize when I looked at it, I didn't realize that Clothesline, because Clothesline is where we do most of our transactions, but I didn't realize they don't operate in California.

Yeah, it has something to do with only, they can only do refis. They don't do purchases or however they call it. They only do refis.

California.

Yeah, I— yeah, so that was the wrong title coming out.

That was my mistake.

It was since it's in void. Yeah, semantics really, it's magic. Yeah, but, but yeah, that was Addendum Number 2. So could there have been Addendum Number 1? I mean, it means—

yes, technically that one should have been Addendum Number 1. It doesn't really matter. I mean, as long as they're sequential. It's mostly, it's something for title to keep their records organized and whatnot. But yes, technically that should have been labeled Addendum Number 1, and this one I'm setting should be Number 2. But it's fine if we just have 2 and 1, or 2 and 3.

You said that right now, or you guys—

Yeah. I, uh, I just edited it and sent it. Did you receive it? Yeah, I guess it might have came to your spam again, but it's the same thing. It says, uh, please DocuSign updated offer.

I'm having a hotspot to my phone.

Got you, no worries. Guys, we'll explain subject to in a second. Right now, we have to move this one deal. It's one of the first deals I got as part of the challenge. It was in California. We have to move it to a novation.

Because we got a really good, uh, conventional offer. And so I'm walking through the addendum, adding the Novation paperwork.

We're also giving him $5,000 more dollars. Did you—

did it—

did it come in on your end though?

Not yet. Let me log back into DocuSign and see if it's there. That's where it's going to go, obviously. So this one should be titled 3, right? The damn 3.

Yeah.

Twice, sir? Twice?

Well, it— no, I mean, it is going to come— yeah, it is going to come underneath the first one because it's the same subject line.

No, at the same time, that's the same, like within 2 minutes of being received. All right, so deadline number 3, this is the end of the contract dated 5/3 between me You, your company, 1993, um, issue terms, conditions are hereby— this is part of the contract between seller and buyer as far as 3215.

That's correct. All the terms are the same. Okay.

Landon, recording your calls so you can listen back is the best way to improve. Alright. Yo, Ty, if you're talking about my calculator, that is available. That's inside Wholesaling 101, brother. That among every other thing you need to successfully start wholesaling real estate, as well as guides on exactly how to use it.

Determined.

Uh, no, Ty, if you want to buy it, look, if that's all you want, then sign up for Wholesaling 101. It's $69 a month, and cancel right after you do. And then you can get it, download all the shit, and then you can cancel your membership if you want.

I understand.

What's this? For the novation and identification indemnification agreement, I have to sign as a witness.

Um, what's that? Are you saying in the last page? No, you're not signing as a witness. No, where it's just—

signature.

Yeah, you— yeah, then you do need to sign there. This is what allows us to sell the property to somebody who's using conventional financing.

—closed. I mean, that I have to— you guys are mean. What's the third party purchaser failed to close on the purchase? Oh, that's the person who's buying it.

Yeah, right. Yeah.

Okay, I mean, obviously I'm not buying from you guys.

Oh, then the third party, you sue the seller. Why would you sue me for it? What's that? It's aspired to close. In the event that the third— that the third-party purchaser fails to close on the purchase of the property as specified in the third-party real estate purchase agreement, whether for failure of contingency or otherwise, the real estate purchase agreement between the seller and the buyer shall be deemed to be reinstated, and the parties shall then be obligated to perform pursuant to the terms of the real estate purchase agreement. Buyer shall retain all rights, uh, within the third party— sorry, within the third party real estate purchase agreement to sue the seller for specific performance or seek liquidated damages in the amount in the event seller defaults on his or her obligation with third party real estate What does it say?

So it's saying that if we have a buyer who's going to get you the $321,500 and then on the day of closing you decide, oh, actually never mind, I'm just not going to sign, then we can sue you for the specific performance to sign the right to sell the house.

Gotcha. I'm done.

I don't care. I'm not keeping that house.

Right, right. Yeah, I know.

Yeah, yeah, I'm just trying to understand because that's a— okay, so let's just say I gotta make sure No, what does that exactly mean? Because that means I'm under contract to have this done until 10/3/2023. What?

I'm sorry, where are you seeing that?

Where are you saying that? Yeah, it says you're done, want to sign another— oh wait, that's fine, another document. I don't know what a doc— the document that is, so we need to know. No thanks. Okay, never mind, this one's separate because I didn't want me to sign the other one.

Yeah, no, yeah, so I'm gonna go ahead, you're getting another email, I'm gonna void that one and I'm just gonna put like wrong addendum number. So you'll get another email from them, but it's nothing you need to do.

Okay, do you show this client now, please?

Yep, I just got it back.

I'm forwarding it over to the transaction coordinator now. And I know that you already told me that we can't do any showings this week, so— Yeah, because there's nobody there right now. Right, totally understood. Well, um, so Doggo will be giving you a call probably on Friday, um, to let you know to, uh, to set up what we got. Now, from talking to him again, I told you that I'm gonna, you know, keep you updated and everything, and he says that we have 4 people that he's currently vetting, people who have said, yep, we, we want to go on this. So he's currently running through making sure Number 1, they're pre-approved, everything like that, getting offers from them in writing, right? Figuring everything else out with that.

Okay, I do have another question. So with this, if you guys want to show it, I mean, do we have to like leave or something?

Like, I'll be— No, no, no, you can be there, anything like that. Okay, okay, I got it.

Because I know I've heard in the past people like, when you guys can't be there—

No, no, you You don't got to worry about anything like that.

Yeah, I'm a fortunate one, I can stay, I can stay at work. Okay, so she doesn't have to be gone or something? No, no questions that she had. I was like, well, I don't know, I'll find out.

No, she, you know, she can be there.

Yep, all we ask, and, and Doggo will tell you about this, is that all we ask is that if like the realtor or the buyer asks you questions, that you just tell them, hey, you ask the guys over there, you ask the guys at We Buy Homes Cash. Because is what they can do, what we've had in the past, is we actually had like a seller who started talking to the agent, started telling about all this other stuff, and then they got dinged like super hard. Like it totally messed up the offer. Mess up the purchase price. So we just say, hey, let us deal with any questions they have, anything like that. So if they do try and ask— yep.

All right, good deal. All right, so I'll be hearing from Dogville probably on Friday, you imagine?

Yep.

Okay. Alright, well I do appreciate it, Jonathan. Thank you for working with us on this. I know it's not what we originally agreed upon, but I think by the end of it, by next week, I think you'll be pretty happy with it and the extra $5,000 will spend nicely.

Perfect. Alright.

Thank you very much. Thank you, Jonathan. If you have any other questions, let me know.

Sounds good, thank you. Alright, bye-bye.

Woo! Okay, so let me break down fucking everything. We'll explain subject to in a second for those of you guys who are still curious about that. So this guy, this is one of the first houses I bought as part of this challenge. It was this property in Yucca Valley, California. And we bought it as a cash deal. I didn't offer him a novation. But when we sent it out, all of our offers were fucking conventional offers. Everybody had conventional financing. So I messaged, so I called him and I was like, hey, I got great news for you. I was like, I actually found a way that I can get you an extra $5,000 and all we need to do is a couple of showings. He was like, great, let me just confirm with my wife and then we'll get it rolling. He talked to his wife and his wife's like, no, I don't want to do that. So I'm like, fuck. So we price dropped it, waited the weekend, got no other offers at a cash deal, and we're like, fuck, this isn't gonna work. So I called him, I'm like, look, bro, we We have to do this or we have to cancel. Either you let us do these extra showings, let us give you the extra $5,000, or we gotta cancel. So I'm glad that he signed that because that is the difference. That conversation right there just probably made me like $15,000 to $25,000 in that 17 minutes. So that goes hard. All right, next thing. Somebody wanted to know what the fuck subject to is. And that's a great question. Now, I am by no means a expert on this. Have I bought houses subject to? Yes. Am I currently buying a house subject to? Yes. We just barely bought one in Virginia. If you guys are interested in seeing me have that conversation with the seller, by the way, all of the VODs of this, like the recordings, are on YouTube. Go to my YouTube channel, it's Tyson Smith, hit the live button, and go to the one from Friday. You will see me buy a house subject to. Now what subject to is, is it's a way that you can buy property without having to qualify for a mortgage. Now here's what I mean by this. You can buy somebody's property for their current mortgage. And what you mean by that is that person is no longer responsible for making the payments on their mortgage. You are. Right? So this woman, she says, "Hey listen, I'm open to subject to." She tells me her payment is $1,044 a month. I can buy the property subject to. Now I've got to pay the closing costs and I'm probably going to have to give her some money at closing in order in order for her to walk away. But I could probably get into this property for, I don't know, less than $15,000. And now I have a property that I owe $1,044 a month on that I can probably rent for $1,500. But I gotta see, maybe I can do an Airbnb. But also maybe I can wrap this property. There's a lot of exit strategies with subject to. But it's a way that you can buy properties without having to qualify for a bank loan. Hair looks pretty good today, broski. Thank you, Riley. I really am in this super awkward stage, not loving it, but what can we do? Bro making shit up. Hey, Angelo, listen, bro, if you think I'm making it up, no worries. But those of you guys who want to learn, guys, that deal I got on Friday, it's in Virginia. I got— I bought a fully fucking remodeled house subject to its current mortgage, and I got to give the seller 6 grand, 6K. So for $6K plus like $2K in closing costs, I'm gonna have a property. Then I'm gonna have to spend about $5,000 furnishing it, and that property is going to cash flow. So after paying off all debts, paying off the mortgage, everything like that, that property's gonna cash flow $3,000 a month. I'm gonna make an extra $36,000 next year for a fucking 25-minute conversation. Now you can be all, you know, you can be bummed, say it's fake, do whatever you want, but I'm just showing you guys out here what's possible. Right? I'm showing you guys exactly how to do it. What's novation? Guys, a novation is a way that you can wholesale deals to retail buyers. Normally in a wholesale deal, you can only sell it to a cash buyer. A novation contract allows us to sell our wholesale deals to retail buyers. Retail buyers are people using conventional mortgages, FHA mortgages, VA loans, USDA loans, things of that nature. "Why do they want to sell a full remodel?" So Brit, here's what happened with them. They bought the property 1 year ago. They bought the property on a VA loan, 0% down, and then 1 year later, they're moving, they have to move, but they have negative equity in their house. Meaning if they sell their house, they're going to have to bring money to the closing table. They don't have any money. So they need to move, they have to get out of the house, but they can't sell it on the market because they can't bring any money to closing table. So instead, I take over their mortgage, I'm gonna give them $6,000 so they can move to where they need to. Now, I'm the owner of a new investment property that I'm gonna list on Airbnb. And they get to fuck on and go on with their lives. Why would they do Novation and not just hire a realtor? Excellent question, Kansas Investor. The reason why is because most realtors are bad at their jobs. That's why. Realtors, they don't, most of the time, Realtors don't know how to accurately price a property. What— and here, so here's what I say. If somebody says, well, if you're just going to list it and sell it to a retail buyer, why wouldn't I just hire a realtor and do it? And I say, look, you could absolutely do that. Here's what a realtor is not going to do. Number one, a realtor isn't going to guarantee you the price you're going to walk away with. They won't, you know, they're going to say, oh, we got to list, we've got to let the market decide. Fuck that. I am good at this. I can tell you what your house is going to sell for. I can guarantee this price. Number 2, I got a team of fucking bulldogs. You gotta meet this guy Doggo. You will. Doggo is going to negotiate hard for you with every single buyer, right? We buy and sell a lot of houses. We have the transactional experience that very few realtors do. And what we're gonna do is make sure that every single person who comes through your house is pre-qualified, they're ready to make an offer, they're vetted, right? A realtor is gonna let every single Tom, Dick, and Harry walk through your house whenever they want. They're gonna fucking pop a lockbox on that and hope it sells. I'm going to aggressively market your property. I have over 4 million verified cash buyers in my database that I can send your property directly to. So every single hedge fund, local investor, national investor is gonna see your property. What realtor can do that? Right? That's why people will sell on Inovation rather than a realtor. Not to mention, we are handling everything. People do not want to handle paperwork, bro. We take care of it for them. 'Your messaging would be more powerful if you're less arrogant.' So user 461412305400, let me talk to you about something. Never in my life has having unbridled sense of confidence about myself hindered me in any way. It's always been for the better that I just have an unwavering belief in what I'm doing. You may call it arrogant. I don't give a fuck, dude. I'm in here. I've got a fucking mission. I'm working hard. I learned this stuff and I've got just so much background. I've got so much social proof of me closing deals, showing the stuff that I do is real. Your girl is a realtor? Yes, my girl is one of the few who knows what the fuck they're doing. Does equity matter in wholesale? Absolutely, Spencer, absolutely. It's very important because they need to have equity in their house to be able to take a discounted cash offer, right? Can you talk more about your dad's superpower grit from real estate to Disruptors Podcast. Yeah, Devin, so look, dude, one thing about my dad— look, guys, my dad doesn't have any kind of formal education. Like, yes, he went to grade school and whatnot, but like past like junior high, his mom was doing all his homework and stuff. He never went to college, anything like that. And yet my dad probably knows more about accounting, business, marketing, finance, especially real estate, than any of my college professors do. And it's all because he just figured shit out on his own. When he needed, when he started a business, he just had to figure out fucking accounting. He just had to download QuickBooks and learn how to do this shit, right? When it come to real estate, he didn't have any formal education. He just had to fucking learn it, right? It's just this grit. And it was just the fact he was like, I'm just going to figure this fucking out, right? No college degree, no fucking height. Like all of this shit doesn't matter. He was just like, look, dude, other people can do this. I can learn it. And he was just figured that shit out. And because of that, now I have like great admiration for him, obviously, because he's one of the most intelligent people I know. And he doesn't have any fancy fucking diploma or anything like that. Now I do. I got a college degree. But I can tell you what, it ain't worth shit. Arrogance equals 17 contracts. You're absolutely right, Corey. You gotta just figure everything out in real estate. Absolutely, April. "Any mortgage lenders okay with subject-to? How can you legally do this?" Marlon, there you can look up subject-to purchases on the IRS website. And the IRS will tell you about them. Like it's a completely legal thing. "Does your dad love you more than your brother?" No, he loves all of his kids equally. I appreciate that, Dirt. I appreciate that. Okay. We got that taken care of. We got that fucking moved over to Inovation. Thank fucking God. That was extra money. We need to figure out what we're gonna do with Katrina. Would you recommend paying for things in advance even if you don't have the money like your dad did? I mean, my dad didn't really do a lot of that. It's not like he like put in, like bet a bunch of money on credit cards or anything like that. He just had a fucking massive accounts receivable budget on his drywall company. Have you always been confident or not at first? Guys, I was an absolute pussy on the phone when I first started. I was scared. But it's just I've done the reps, right? I've made fucking probably hundreds of thousands of cold calls. So it's just, it's second nature to me at this point, right? And I have the social proof. I've just closed so many deals that I know I'm the fucking guy to do it, right? And that shit doesn't happen overnight. It's over time. It's hard work that you have to put in every single day getting good at this. Nobody just gets on the phone the first time and they're fucking amazing at it. Nobody does that. All right, um, I'm gonna come up to Katrina's house. We'll figure out what the fuck we can do on this, but first I need to piss.

But if the proper representation is that, I can go on arguing with myself for hours about what it is.

Hey, I was just trying to have a little fun.

You ruined it all for me. I was.

Come on, buddy, get some water.

Get some water. Say hi, everybody. Say hi, Gamble. Say hi to everybody. They're over there, they're watching. You want some water? Did you guys hear me yell?

My dog and also my dad's dog are at the office today, and, uh, Archie was humping Gamble, so I had to knock that shit off. All right, how much you pay for Gamble?

He was $5,000. Best $5,000 I've ever spent.

Okay, do you bring him every day? I am this week.

All right, okay, let's, let's look.

Okay, hey, if you want to learn my comping process, go to YouTube right now. I'm also live on YouTube. You can see my screen. I'm about to show you how I comp this house. All right, so let's take a look at what the fuck we got here. Corner lot. Um, I don't know if I love this. It's kind of on a main road, so that's not great. But we look around and I'm seeing some good things. Not cars parked in front of the street. Big yards. What is this? The neighbor has a fucking GLE. That's what I'm talking about, bro. Gang. I drive the same car, by the way, guys, but mine's fucking doper. All right.

Wait, what fucking angle is that picture from?

The side of the house. Okay, so it's gonna need a bunch of work. It's 1,600 square feet. Memphis is gonna be one of those lame markets that like isn't gonna tell me the fucking square footage of anywhere I sit. Yeah, so this is a good—

it's a good lot here.

So this is gonna be our ARV comp. Sold for $200. Miles, thank you for subbing to YouTube, bro.

All right, what else we got? $175.

$172.

All right, if we buy this subject to, we, we cannot give her Hey Blake, I'm really not sure.

This girl said she's open to subject-to, but I don't know. I mean, she's just kind of deep. Like, her note is $1,044 a month. It's a 4.2% interest rate, but she owes $146 grand on the property.

She put $25K into it and pretty much got nothing out of it.

The house still needs a bunch of shit. Like, so there's no baseboards, doors, a bunch of doors need to go up, flooring, light fixtures.

Like, there's gonna be shit like that. Then more than likely you're gonna need to redo the kitchen, the bathrooms too.

ARV is— there is one that sold for $200,000, but it's probably $175,000. She wants to walk away with $30,000.

I already told her that's not gonna happen. But do you think I just—

hey, we can buy it subject to, we'll give you fucking $5,000.

The challenge is, who's gonna—

who's your buyer on this? Well, again, I'm looking on AirDNA.

You're not going to AirDNA that.

I don't want to go put $35,000.

No, I don't want to either. Selling to somebody who will—

you might be able to, but you're looking at, by the time you get all that done, like, because it's a heavy lift for the value, right?

And they're underwater now.

So $175,000 and they put $30,000 into it, they're maxed out.

They would lose money. So they wouldn't have any equity, right?

That— so you're $30,000 into it, plus an assignment fee, plus— yeah, $60,000 plus fucking furnishing hit for $170,000 house.

Bad deal. I agree. Um, it's—

your buyer is a handyman, a guy that wants to come in and do some sweat equity and get into a property.

Well, I don't know, it's probably $20,000 down, right?

So you got closing costs and fees and trying to make something. That's who you're buying, you're wrapping it.

Um, I mean, where's the market? It's Memphis and it's in a decent little neighborhood.

So, but that, that's where you're looking at it. You're like, look, by the time we come in and redo this and put it, we could probably take the roof up too. To, right? But I don't know, by the time we close it and renovate it, we probably get you out of it so you don't have a foreclosure on your hands or a short sale.

I might be able to get you $1,500.

Okay. All right, will you— will you— I guess— never mind, dogs are in here. All right.

Oh dude, boys, I've got a zit right here.

You guys see? And it hurts. I'm from Memphis. I don't think that area is going to Airbnb well. Well, I was just looking on AirDNA and there's several, uh, there were several Airbnbs like in that neighborhood.

I'm sorry, but the person you called has a voicemail box that has not been set up yet. Were you talking to me?

I forgot she sent us pictures. Stop touching your face.

No. Guys, if I have a zit or anything like that, I'm gonna fucking pick at that thing forever, and that's just what it's gonna be.

All right.

Oh nice, just a bunch of pictures.

Okay, okay, so— oh. Never mind, this definitely isn't as bad as I thought it was going to be.

Let me show you guys.

Here's the kitchen. Okay, okay.

Yeah, he is gonna have to go out soon, but not really a lot of water. It just feels like a lot of water because, guys, look, here's the— what he's operating with. He's got this fucking little thing and and he's gotta drink out of it like a gerbil. 'Cause he can't just have a bowl of water 'cause he'll fucking stick his entire face in it and then just be sopping wet. So he needs to have one of those things and he can't really drink a lot of water at one time. Like he has to, it takes him a while to get like just a decent drink.

Okay. This is so bad. Yeah, definitely some shoddy work from the contractors. Alright.

Are you gonna get tattoos? I have tattoos, Kobe. Alright. Tyson, any way to take myself a step forward and meet you in person somehow and discuss real estate? That's not something I really do, man. It would be very expensive if that's something that you wanted to pay for. All right, what is this? What is this? Russell, Salem, Illinois. What the fuck is that? Nope, that deal.

All right.

Your call has been forwarded to an automatic voice message system. 8-1-4.

Call again. Yo, I'm pretty pumped for the Wholesaling 101 call tonight. Hello? Hello, Lori? Yes?

Hey Lori, this is Tyson. It looks like you filled out some information on my website about selling this property on Summer Street. Yes. Did I catch you at a bad time?

No, you're fine. Great.

Well, what I want to do, Lori, is take a few minutes to ask you some questions about the property to see if it's something that my company would be interested in purchasing. Uh, if it is, that means that we'll be able to send you a cash offer in writing to your email. Um, and if it's not, then we'll be able to point you in the direction of somebody that might be a better fit for you.

Okay. Okay. All right.

Well, hey, Lori, while I get this property pulled up on my end, can you catch me up to speed here? What's got you thinking about selling the place?

What? What?

No, I just— I'm sorry, I didn't hear you.

I said, what's got you thinking about selling?

I don't like to live in the city limits.

Yeah.

So are you currently living in the property?

Yes. Okay.

And where are you looking to move to?

Um, I want to stay in Bradford where I'm at, but I just want to move out of the city limits. Okay, like Foster Township, Foster Brook. You guys have houses here?

Um, not in those places. I have some in— I have a couple in Mason Town.

Where? That's not even close.

Yeah, I don't think it is either.

No. Okay. My bad. Okay, so I got the property pulled up.

It's not showing me how many bedrooms and bathrooms there are.

Could you tell me that info?

There's 5 bedrooms, 2 baths. There's a living room, dining room, kitchen, laundry room, bathroom. There's a back porch that needs to be fixed. There's 4 bedrooms upstairs and 1 bedroom downstairs and a bathroom upstairs.

Okay, understood.

And then I'm seeing it's about just over 1,800 square feet, is that right?

Yes. Okay. And then I'm seeing—

it does need work.

Okay, what needs to be done to it?

Needs a new roof, just some material work.

Okay.

I just want somebody to buy it that can give it TLC. It's a beautiful— it'll be a beautiful house when it gets fixed. I just don't have the money to put into it right now.

Okay, so what do you think is a fair price for the property in its current condition?

I don't know. I'd have to talk to my father because he's the one that bought the house for me. I have the deed and everything.

Okay, well, I think that it'd probably be a good next step for you to sort of figure out how much you'd like to get for it, and then, you know, I can— we can continue this conversation and I can see if it's something that would be possible for us to do.

All right, can you give me a call back tomorrow?

Yeah, I can call you tomorrow. Okay, thank you. All right, thank you, Lori. We'll talk tomorrow. Uh-huh. Bye-bye.

See what I did there, guys? I never want to give offers or even spend any amount of time without somebody who doesn't know exactly what the fuck they want. Uh, Devin, I'm— she, she actually called me while I was on the phone with her. She called me back, so I'm gonna call her right now and try and buy the thing subject to. But I'm gonna let her know, like, we really can't get you much money. We can get you out of it, but Hello. Hello, Katrina. Hey Katrina, this is Tyson Smith again with We Buy Homes Cash.

Yeah.

Hey, so I was able to take a look at the property with our underwriter. Have some good news and some bad news. Okay. So the bad news is that it won't work for us on a cash deal. We would have to be just way under what you owe. And that's not going to work for anybody. However, they were interested in buying it subject to. Um, okay. So is what this would look like is they're still, um, you know, they're worried about, you know, the rest of the work that needs to be done and how much that's going to cost. Um, but just due to the rents in the area and what we're seeing, um, we, we really— it would have to be like, like we'd really only be able to get you walking away with a couple thousand dollars.

Oh no. No, I'm not interested in that.

What do you think is the very lowest amount that you would be able to feel comfortable walking away with? $12,000. $12,000?

Yes. Okay. $12,000 to $15,000. Okay.

So I got to see what I can do.

I got to try and push him.

And I'll see if I can do that.

I don't— I mean, it's going to be hard for me to get anything like over 5, but if I could do 12, is that something that you would be ready to move forward on?

Uh, yes.

Okay. Let me go talk to the underwriter again and let's see what the best I can do is, okay?

Okay. All right, I'll give you a call back.

Mm-hmm, bye-bye. Bye-bye. All right, also my phone died for those of you guys who were on TikTok and wondering why I'm not there anymore.

My phone stays dying, boys.

Guys, I own one phone charger at my house. I also have a phone charger here in my office, but I only have one at my house. And it was plugged into my lair, which by the way guys, my lair is what I call like my office. It's plugged in over there and I just went to sleep.

I'm like, I'm not fucking going to get that fucking thing.

I'm not fucking doing all that.

So I'm just gonna charge my phone, whatever. All right, let me go.

She said she'd take—

she said she'd take 12 for it.

She said she'd take 12 for it.

She sent me pictures and it's not a bad amount of meat. If you want 4 of them small puppies like this, so she'll let you keep her.

Alright.

Alright, well, I've just gotten news from Blake that he knows somebody at Memphis Memphis that would be interested in buying this. So let's go ahead and lock it up. Who is the underwriter?

I'm the underwriter, Brit, slash you, the finance team.

What the fuck?

All right, all right.

Guys, I'm gonna get back to being on live. It's just I've got a fuck ton of texts. I need to see what the fuck's going on here. Yo, what up?

Um, dropped my truck off at LAC. Raw.

Well, right now they gave me a Turbo S. Are you serious? Yeah. Oh, what Oh damn, that would have been fucking dope. Yeah, well, yeah, I just texted you. I just texted you the address if you want to come by. I don't think it's close by any means. Maybe, I don't know, maybe from like the freeway. All right, cool. Well, let me know. Well, I'm going to for the next— I'm about to try and buy this fucking house in Memphis right now. I'll probably do that deal and then afterwards, but I'm going to be going home to eat some lunch and— but then coming back.

Okay, um, how do you get to get it?

You can just walk. You can just walk it. No, you just walk it.

Yeah.

All right, peace. My boy is dropping his car off. I forgot to ask him, I want to know what the fuck he's doing to it. He just bought this new Raptor and he's dropping it off at the dealership, and, uh, dealership's kind of over by my office, so he's gonna swing by.

Um.

Okay, all right.

I'm sorry, but the person you—

I'm going to fill out the fucking I'm gonna fill out the subject-to agreement while I wait for her to call me back.

Okay.

Oh, you know it, Code Dog. We're no hatin' it today, for real.

Wrong address. This isn't the one I want. Where the fuck's the address I want? Here we go, here we go.

That's what the fuck you're talking about.

All right, all right, let's see. Is anybody else on title? Nope, that's what I'm fucking talking about.

That's what I'm fucking talking about. All right.

Bro, you need a deal in Alaska?

I don't know, bro. I don't have any buyers in Alaska. Well, I do have like investor buyers, but I've never done a deal there before.

How does your hair grow so damn fast? The one. I just eat such a fucking ideal mixture of macronutrients every single day that I'm just a superhuman, bro.

Okay.

How old are these leads you're calling? The ones I'm talking to right now are new leads provided by Leads Connect. Their information is in my bio. Nope, I don't want to copy and paste the email address.

I would like to copy and paste her home address though, right there. Alright, what's the APN? Here's the APN. No legal description. To be provided by escrow officer. All right, $100 EMD, approximate existing first mortgage $146,000. Okay, how much are closing costs usually?

Like $2K? Yeah.

What the fuck is this guy talking about?

What you're doing is not enough to inherit the kingdom of God. You spit on Jesus, he still loves you, bro.

What are you saying, bro? What are you saying?

Your flesh will— dude, bro, what is your deal? What the fuck, dude? Get those vibes out of here, bro. What the fuck? Get those vibes out of here, man. Get those vibes out of here.

I'll fuck with that.

Well, your skin will peel back, bro. Guys, dude, dog, dog, you have got to chill, dude. You've got to chill, Prince Bambi. What the fuck? Are you still using Quick Pages? I don't know what Quick Pages is, Rob. Dude, Prince Bambi, bro, I need you to fucking stop doing whatever you're saying.

All right.

Like, chill out, dude. Chill out. Okay. Are you chill? Yeah, bro, he's gonna—

we're gonna have to fucking boot this guy. I don't, I don't need these fucking vibes, bro. What the fuck? Actually, we'll just mute him. All right, all right. What the fuck, bro? Wild.

Okay.

Send him to the island.

Oof. All right.

All right, how much the $250K have you done? Um, I have no idea, dude. I can tell you we have 17 deals, we have sold some of them. I don't know, I'm not keeping track. Guys, there's just so much more time. Like, it's not even worth it for me to look at it, you know?

All right. Okay, hold up.

I gotta add my fucking subject to addendum.

Here we go. That's what I'm fucking talking about. Oh, I forgot this is fucking hands. I gotta add so many signature fields right now. I'd add so many signature fields, bro. She does not call me back and fucking sign this. I'm gonna be so bummed at how much work I'm just doing right now for nothing. Oh, goddamn it. What is all this? Fucking memorandum. Fucking memorandums. Get this memorandum out of here. Get this memorandum out of here. I don't need this memorandum right now. All right, this memorandum is fucking out of here. Thank God. Okay, okay. Seller initials. Let me just put in all my initials real quick. Initial, initial, initial. Date signed. Company signature. All right, now we need to put all of their initials. Initial, initial, initial, initial, initial. Dude, 2 sub-2 deals in like 4 days.

Pretty nutty. I need to get to the point where I'm buying like 10 rentals a month.

That's what I need to be doing. All right.

Initial, date signed, name, signature. All right, let's go, let's go, let's go, let's go, let's go, let's go, let's go, let's go, let's go. Oh, almost forgot an initial. Almost forgot an initial. Tyler would have been pissed. Okay, the contract is ready to go. Let's fucking call her again. I need her answer.

All right.

Luke, I normally do. It's just that my subject-to addendum isn't hooked into my seller finance contract, and so I had to add it real quick. But yeah, I know I can just template it out.

All right. I'm sorry, but the person you called has a voicemail box that has not been set up yet.

God damn it. Okay, well, whatever. We got to fill that so when she does call We'll be chilling. How much are you spending per day on leads? I don't know, but it's also, it's pretty warped, Bumblebee, because I'm getting a lot of leads for free because I'm who I am.

Not for free, I just pay people on the back end after I sell them. Hey, Tyci, do you have any good ideas on how to get insurance leads? Yes, run ads. Run ads.

Okay.

What the fuck?

What documents you need for sub-to? You need a seller finance. You need a seller finance purchase contract and you need a subject-to addendum.

All right. Yeah, there are definitely some $0 marketing methods, but guys, you're always going to pay for something one way or another, whether it's time or money. I prefer to pay shit with my money, not my time. Okay. Why did you switch from LeadZilla to LeadsConnect? I use both, bro. Wait, who is this person? Okay, I gotta look at that.

Why are you avoiding the challenge questions? What challenge questions am I avoiding?

What would you guys like to know?

What am I doing?

I was looking through all the texts I've gotten and somebody sent me a bunch of fucking photos and I just remember the conversation I had with her and I think it could be a deal.

So I got to call her today. Where are you at in the challenge? Guys, I've got 17 contracts. I've got no idea how much money is in total from those, but I've got 17 of them. I know we have sold some of the deals. I know we've had to cancel on 2 of them, but we're rocking and rolling. Everything's going well. When's the best time to call? Whenever you have available, bro. There's no just best time. Whenever you can fit it in.

Okay. Okay.

All right, that is gonna be it for this morning.

We're definitely gonna be back on live later today before my Wholesaling 101 call, um, so around like 2 o'clock my time. Um, guys, our Wholesaling 101 group call is tonight, so we've been thinking about joining, now's the time to do it and get on a call with me and ask me all the kind of questions you need.

How do you get a wholesale contract to start? Dude, I give one away for free at www.freewholesalingresources.com. The link is also in my bio. How much money should I start with? I'd recommend having at least $500 to start just to pay for a dialer for 3 months.

Okay. We'll be back on later if you guys want to see me close that sub-2 deal and also buy this deal in little Mooresville, Indiana that I just got a bunch of pictures of.