Dealing With a Crazy Seller (LIVE) | Day 5 Locked in

What up everybody? Day 5, it's Friday today for me at least. If you're watching this, it's probably not Friday unless you're watching this— never mind. For breakfast we got some lightly buttered toast, sourdough. All right, sorry, I was getting a call. Um, we got some OJ. We're gonna use this to take our vitamins. We got the Total Human Day Support from Onnit. I don't know if I can tell any difference from these, but— oh, because I've just never been like a vitamin guy besides this vitamin D3 that I've been supplementing with. Almost lost one of them there. Down the hatch though. All right, what do we got today? One, um, I'm playing a poker game. I think I said this yesterday or yesterday's video. I'm playing a poker game with my friends tonight. Um, always excited for that. I love playing poker. I'm not a big gambling guy. But I love Texas Hold'em. Um, I finally got up at a good time today. I'm still a little bit sick, but I think I'm— I think I'm getting better, so that's huge. I think today's got to be my last day of like actually being sick. Um, yeah, woke up at a good time today, aka 9:30, so not the greatest— not the greatest time, but Um, again, it's progress. Um, we are going to stick to the normal routine, bust out breakfast, journal, hit the gym, and this time I swear I've blocked out my calendar. If anybody calls me, it doesn't matter. I'm, I'm getting— making some damn phone calls. I'm excited for it. Another thing I'm going to do today and I'm working on right now, there's a new product called Auto Leads. I'll drop the link below. And it is basically a tool that not only can you pull a list of properties in, not only can you skip trace in it, not only does it have a built-in CRM, but most importantly is it has an AI cold caller feature. Where it has AI make cold calls for you. But since it's AI, it's not limited by time. Like basically it can have— it can make like 500 calls a minute, you know. So basically I can feed it a list of like 3,000 leads and it'll get me, you know, or 33,000 records and it'll give me fucking, you know, 40 leads of people who said yeah, who like talk to the AI robot, have no idea it's a robot. And they're like, oh yeah, yeah, I'll sell my house, and then get— and then the robot gets all the information. So I'm going to be testing that out, probably not today but tomorrow. We'll probably have the list that I'll be calling, so I'm excited for that. Um, but yeah, we are, uh, we're gonna get on the phones today. Hopefully we'll have some fun and funny conversations and it'll be a banger. But first, we need to go to the gym, and I'm not quite sure what we're gonna do about that. We'll talk about that in a sec. All right, we're headed to the gym. So here's the deal, we have two options today: either back, um, or we try shoulders. Um, and is what I think I'm gonna do is try shoulders. Try, attempt attempt, meaning attempt, not tricep attempt. Shoulders, we're gonna attempt some shoulders, see how it feels, um, because I've been having this shoulder pain. See if the dead hangs have done anything. And, uh, it doesn't work, we're just gonna go do some back. Uh, back is definitely like my strongest point. It's my over— most overdeveloped muscle. Um, so I don't really have to hit it too often, um, while I try and get everything else to catch up. But, uh, still you have to, you know, get that work in. Anyway, I also realized I need to get a haircut today. I need to go to the barbershop, see if they can do anything about this. Also, how bullshit is that little spot? Like, I just need, if I could just grow hair right here, right here, and right there, we'd have a good, really good beard. Alas, we don't. So whatever, not the biggest deal in the world. We can body no beard. We really can. Or at least not the best beard. Don't know where my Stanley Cup is. So today we're rocking with just a Trenta Starbucks water, which if you're uninitiated, Starbucks water rips. Meredith, my fiancée, thinks that it sometimes tastes like coffee. I don't know about that, but whatever. Okay, so when it comes to— oh, well, I want to talk about how I've been feeling from just like eating whole foods and not watching my calories or anything like that, just, you know, eating when I'm hungry. All right, we got some, we got some cars who maybe don't have the best drivers behind them. That's something you need to think about when it comes to driving is It's really in your best interest to drive carefully, not because you're a bad driver, but because everybody else around you— Ew. Fuck. Dude, I'm telling you, bro, this better be the last day. This is bullshit. I don't get sick. I'm a healthy warrior, yet I'm over here sneezing and sniffling and blowing snot rockets and shit like some kind of hand sanitizer user. And dweeb. And yes, if you use hand sanitizer, that was meant to be an insult. Hand sanitizer is so lame. All right, so here's something I want to talk to you guys about. This is probably an unpopular opinion, but I get so annoyed when people wipe down the equipment at the gym after they've used it. Like, like, I, I went to go get on a bench and a guy's like, oh, here, let me wipe it down real quick. I was like, nah, Don't need that. Like, bro, I'm about to move these hundo-pound dumbbells for reps. The last thing I need is that your astringent alcohol-scented whatever the fuck wiping all over my bench before I go in to hit this set. Also, we're in a gym. Literally everything's disgusting, okay? You wiping down that bench isn't doing shit. The knurling in this dumbbell has years of other people's dead skin and germs in it, okay? Okay? I don't see you wiping down the dumbbell, which is by far gonna be the, you know, like, oh, you— dude, I don't know. I don't get it. Gyms are disgusting. You wiping down the bench is not doing anything, okay? I'm about to go sit in a sauna where some dude's sweaty ass and balls was just right where I'm about to be, okay? Go to the gym, work out, don't worry about wiping shit down, and when you go home, take a shower, okay? And also shower before you go to the gym. Some of you guys smell fucking gross. Which I was that guy the other day. I was the gross-smelling guy in the gym. It wasn't like the other day. It was probably like a couple months ago. I put it on my Instagram story, but, um, I had been reading on Twitter about how you want to use, uh, deodorant without aluminum. Now I've just always used Old Spice, Old Spice BG scented deodorant, right? That's just what I've always used. I don't know how I got on it, but I did, and I've just been on it since I don't even know, 7th or 8th grade, right? Well, I, uh, see on this esoteric health Twitter thread talking about how, you know, your armpits are extremely absorptive and, you know, the shit you put in there really affects you and stuff. And they were saying that the aluminum that's in deodorants really disrupts your endocrine system and it's not good for you. I was like, oh, fuck, I don't want that. So audible to a natural aluminum-free deodorant. First day I put it on, I'm in the gym and I'm sitting there working out. I'm like, dude, somebody smells like shit. Fuck. And whatever, I'm working out and I realize I'm alone and it smells like shit. And I kind of— oh fuck, it's me! I smell like shit, dude. I was so embarrassed. I, I had to leave right after. I put up on my story too. I like, I admitted it. Like, I raised my hand. Like, I was like, I'm so embarrassed right now. Like, Wearing some fucking natural deodorant and shit, and now I just smell like shit. Like, shit doesn't work, man. And I have a friend, his dumbass was like, oh yeah, it just takes your body like 5 days to get used to it. And I'm like, well, that's the dumbest fucking thing I've ever heard. Why does my body need to get used to deodorant? What the fuck? Yeah, I don't, I don't know. Crazy. Oh dude, I'm so congested. Acid and shit. It's bad. But, uh, yeah, so I'm, uh, not really on the natural deodorant. I have heard though people saying that Dr. Squatch, which I've used their, their soaps before and I really enjoy, but some people were telling me that their natural deodorant is like, you know, free of all the bullshit and it actually works. And, uh, we'll have to see. Maybe I'll have to give that a trial, you know. It's, uh, the high-risk trial though, you know, maybe smell like shit, whatnot, potentially. Um, all right, so here's the play at the gym. We're gonna go in there and I'm just gonna try some— we're gonna do a seated, like, plate-loaded, uh, shoulder press. We'll sit down on that, we'll throw like a 45-pound plate on each side and feel how it is. Okay, if I give any kind of pain, I'm up, I'm out, I'm ripping, I'm doing, uh, back. That's just what we're what we're gonna have to do, you know. Um, if not though, we'll do some press and then we'll just do as many flies as we can, just dumbbell flies, jump dumbbell shoulder flies, spam those, hit some rear delts, and we'll probably be good because we don't want to take it too far. Uh, if it's back, we're gonna do— if it's back, we're gonna do some, uh, lat pulldowns We'll do a, uh, I've been doing like a very like, uh, sort of a more narrow grip, um, you know, like sort of like more shoulder width. Like normally I feel like I see people doing lat pulldowns, it's much, much wider, but I've been doing like a shorter grip and it feels great on my back. Um, so we'll do that. We'll do some rows. What kind of rows? I don't know. Maybe some seated cable rows, maybe some dumbbell rows, maybe some T-bar rows. Oh, you know what I haven't done in a while? Or some barbell rows, maybe on the Smith machine too. I love barbell rows, dude. I didn't like them for a very long time because they're very hard, like they're tiring, make you sweat and shit. What the hell, dude? Dude, I'm at a red light and on the corner is this little tent and it says free phone, free government phone service. There's just a bunch of homeless people around. Don't know how I feel about that one. Okay. Oh look, we got a, uh, America's Favorite Homebuyer. WeBuyUglyHouses.com billboard right in front of me. So a very large group of wholesalers and flippers right there, I will tell you that much. Very large group. So something I'll definitely be talking more about as this challenge goes on is I've got I've got a pretty big plan right now to aggressively start to scale my rental portfolio. And I want to be buying at least like 10 houses a month. And I have a whole plan on how I'm going to do it. I've got my financing set up. I've got— I've narrowed down the market that I'm going to be aggressive on. Possibly buying in, um, and I'll disclose all of that stuff in the future. I'll talk about exactly what it is, what my plan is, what my, uh, investment thesis is. And, uh, yeah, we're gonna be buying a shitload of houses. Basically buy houses, renovate them, refinance them, repeat, right? BRRRR strategy. Um, but the, the key to doing BRRRR is you have to number one be able to find the good deals at a price that is going to allow you to BRRRR out of it because as part of BRRRR you have to refinance, right? And in order to refinance you have to have a certain amount of equity. Equity is the difference between what the property is worth versus how much you owe on it, okay? So if you owe $150K and your property is worth worth $200 grand, you have $50K of equity. Okay, and so you have to have enough equity to refinance out because when you get— because when you refinance, you're typically getting somewhere between 70 or up to 80% of LTV, meaning the loan they're going to give you on the refinance is only going to be 70 to 80% of value. So if the value is $100K and you get 70 to 80%, it means only getting $70,000 to $80,000 on the refinance. So if you're into the property at $50,000, let's say you bought the property for $30,000, you put $20,000 into it, you're all in $50,000, the property is now worth $100,000, you refinance and they give you 70% of LTV, you just got $70,000. So $50,000 pays off the original loan, you have a new loan with $70,000 to refinance with, but you just made $20,000. But not only did you just make $20,000, you made $20,000 $70,000 tax-free because a refinance is a loan and loans are not taxed. So, you know, it's a really good way to make a lot of money if you can have a lot of equity. The kicker is you just have to make sure that on that new loan that you're refinancing, right, because now you have a loan for $70,000 you have to pay on every single month, you need to make sure that that payment, right, your principal interest plus your taxes and insurance for the property are about 70% of what you can rent the property out for, right? So let's say that your principal, interest, taxes, and insurance are $700 a month, right? So your loan is like $500 a month, your insurance is $100 a month, and your taxes are $100 a month, whatever. We're just using round numbers here, right? So your PITI payment is $700 a month. You need to be able to rent it for at least $1,000 a month. If you're renting it for $1,000 a month, you might think, oh, okay, cool, so you're making $300 a month. No, you're not. You're actually just breaking even. But that's still fine, 'cause you still made $20,000 and you still have somebody else paying off your mortgage. But you're not making $300 a month, because that other $300 you're saving for maintenance, vacancies, for management costs and things like that, right? So you're pretty much breaking even, but more important than breaking even is that you made $20 G's that was tax-free, plus you now have somebody who is paying off that asset for you, right? Somebody, or the renter, is paying off that debt, uh, and so you are building equity in this property, or somebody else is paying for you to build equity in the property. So, you know, you do that, think about it, you know, you have 50 of these houses, all of a sudden in 15 years, even if you haven't made a dime in rent payments every single month, you have 15 years worth of your mortgage being paid off. You can have a shitload of equity in these houses. Not to mention, if you play your cards right, you get a little lucky, you invest in a good market, the value of your property between now and 15 years from now, your property should just be worth way more. So that's even more equity. Plus you can depreciate depreciate the properties, right? Depreciation is a tax strategy that you get to use as a real estate investor. I just pulled up to the gym, so I don't have enough time to cover depreciation, but we'll get into it. And I was just giving you a call about your property over on 43rd. I was calling to see if you might still be considering selling that place.

I am.

Well, fantastic. Um, is what I'd like to do is potentially get you an offer for it. Do you have about 5 or 10 minutes that we can have a conversation about the property and see if it might be something my company would be interested in buying?

Sure.

Excellent. While I'm getting the property pulled up over here on my end, Anne, could you kind of just catch me up to speed here? What's got you thinking about selling this place?

Because I want to.

Because you want to?

Yeah.

Gotcha. Are you currently living in the property?

No, I'm not.

Okay. Is it rented out or anything like that?

No, it's not.

Okay. So if you could wave a magic wand, Anne, when would you want to have this place sold and have the money in your pocket?

As soon as possible.

As soon as possible.

To close the— That's what I said.

Okay, cool. I just wanted to make sure. And on a scale of 1 to 10, with a 1 being the property needs to be torn down and we need to start over, and a 10 being it was fully remodeled yesterday, how would you rate the condition of this property?

Oh, oh, okay. I'd say about a 7.

About a 7?

Okay.

What do you think we would need to do to make it a 10?

Just need some paint and some minor repair.

Minor repairs? What kind of minor repairs?

Well, it's got a leak, um, I'm assuming a leak, uh, on one side of the house, and the, um, you can see the results, uh, in the bedroom ceiling. It's a— it's plasterboard, not wallboard.

Okay. Okay, so there is a possible leak. Property can use some paint. Uh, has anything within the property, like anything like with the kitchen or maybe the bathroom or the flooring, has any of that been updated in the last 5 years?

No.

Boys, not my best, not my best showing out. That lady was a grouch, dude. Also, I— there's no way I would offer like $40 grand, actually. You handled it smooth. Oh really? I felt like I didn't do too good. I felt like I was kind of contentious with her, and that's really like not what you ever want to do. Yo, there's a property pending for $160 grand, 2/1, 1,300 square feet. Hers is a 3/1. All right, I'm gonna run it at $160K ARV. We're gonna run it at $160,000 ARV because there's a property that's a 2-bedroom, 1-bath, same size as hers, that is pending right now on the market for $160,000. Now we would have to— now here's the deal. If that sold, if it's a 3-bedroom, 2-bath, I wonder how much you'll get. But let's call it a full $45K remodel. Let's build in $30K in profit for the investor who takes this on. That puts my MAO at $52,000, my disco price at $72,000. Absolute most I can offer is $52,000. What's the ARV on the property? $160,000. Hello, Anne?

Hello?

Hey, it's Tyson again.

Yes?

Sorry about that, we're playing a little bit of phone tag there.

By the way, this is the storm system, we're at the northern edge of it.

I was able to get a price back from the underwriter. Uh, your property was approved for an offer. Um, so let me go ahead and explain to you what they approved. Uh, you'd be good to close in 15 days from now, or whatever else you'd like if that's too soon. We'd be paying all of the closing costs, there'd be no realtor fees, and we'd be buying the property entirely as is. So you wouldn't have to worry about that leak or any of the repainting.

Okay. Okay.

With that being said, the approved offer for your property in its current condition was $49,800.

And you can take that and choke on it because that is not what it's worth.

Oh, I'm sorry. Um, I didn't mean to be offensive. We were kind of looking around and I actually see, uh, two properties in your neighborhood. Uh, one for $50,000 and the other also for $50,000.

Well, that's not my house. I've been told by attorneys and by real estate people and by the county not to sell it for less than $75,000. So if you've got $75,000, it can be yours. Other than that, forget it.

I understand, man. Um, unfortunately, I do not think we'd be able to come up that far. As I said, there are very similar properties, same bedrooms and bathrooms, same size, that are selling for around $50,000. Um, so I think we have to be somewhere in that range.

Well, I've got offers on it. Yeah, so I don't, I don't have to, you know, worry about it. Okay. Well, that's good. Very quiet next week.

Listen, I'm sorry we weren't able to come up to exactly how much you wanted.

Um, I will be in the neighborhood.

If anything does change and you want an offer, you know, you can count on, and you know, that will be a super simple process. We'll have you closed and paid on time. Please don't hesitate to give me a call. Okay.

Okay. Thank you very much for your time.

Thank you, Anne. You as well. Have a good rest of your day. What do you think, boys? How do we do? How do we do? Scared money don't make money. Buy it for $75,000? That would be a terrible investment. If I— let's say I did buy it for $75,000. Let's say I bought it and I wanted to flip it. If I bought it for $75,000, I'd actually really be paying about $78,000 because I've got to pay closing costs. So I'm into it $78 grand. It's gonna cost me $45 grand to get it like in the condition it needs to be in. So now we're at, what is that, $120-something K, right? I guess we do have like some equity in the property, but I wouldn't be able to refinance out, I don't think. She'll be back. Here's the thing, guys, I purposely left myself room. I can come up to $60K Okay, so I offer her— what was it? What did I offer? $4,980? Yeah, we offered her $4,980 and she said, well, you can take that and choke on it. Just drink it. Oh yeah, slow. Ew, fast. Slow piss that's coming my way immediately. I'm getting a Bud Light. Drinking that Coors. Oh, we're playing poker and the rule is, uh, you have to take a beer chug to get bought in. Anytime you want to cash out, beer chug. Anytime you have to rebuy, beer chug. Anytime you have aces cracked, which is when you lose pocket rockets, beer chug. If you lose or if you win on 7-deuce, everybody else has to beer chug and Um, I don't know, pretty much anything that happens, beer chug. So yeah, yo, I had to chug a Brutus. 50, 100, 500. Good for 3 times a week. What? I'm good for one. That's my sister-in-law, dude. Not yet. I obviously got to take her down. Tammy's house, she always trying to get us out of the, uh, like 7 days. I was like, what do you shower with? He's like, just water. Like, it's just buff because it's this. Paparazzi. Car smells worse. There's not a chance. There's not a chance. My car just got clean. What do you know? Hey, hey, Garrett! Garrett, come on, bro. You know my Garrett's house smells the worst. Hey, Kel, Kel, hey, come over right now. It smells great. What's your deal, bro? Hey, hey, I'm sure my cleaners came. It smells great. I'm sure. No, you can come right up. My cleaners came. It smells great. Hey, but the, the hounds will ruin it over 2 seconds. You're on Rolex. That's the thing. It's not your house that's the problem. It's not you that's the problem. It's