How To Close A $20,000 Wholesale Deal (FULL CALL)

Complete!

Boom! Boom!

We fucking got it, boys! We fucking got it! This is signed, guys!

Like that!

Like fucking that! Hello, Tequila? Hey, Tequila, my name is Tyson Smith. I'm giving you a call today because it looks like you filled out some information on my website about selling a property over here on Carter Road in Quincy. Have I caught you at a bad time?

No, you're fine.

Excellent. Well, what I'd like to do, Tequila, is take about 5 or 10 minutes to gather some details about your property. And at the end of the call, one of two things are going to happen. One, your property will get approved and I'm going to have a cash offer for you that I can send right to your email inbox. Or two, it's going to get denied for some reason. I'm going to let you know why and you'll never hear from me again. Does that sound good?

It sounds great to me.

All right. Well, hey, while I'm getting your property pulled up, could you catch me up to speed? What's got you looking to sell this place?

I had a house fire on it in 2022.

Oh, you had a house fire?

Yeah.

Oh gosh, I'm so sorry to hear that.

Oh, no problem.

How much was affected?

Well, they totaled it out, but the whole house did not burn down.

Okay, so it's just the land and the foundation now?

No, it's an outfit. There is the roof that burned, so that's why they tore the thing out. Okay, the roof in the kitchen and one of the bedrooms, but the house is still standing other than that.

Okay, and you said this happened in 2022?

Yes.

All right, so what's it been doing since then? Just sitting there?

Yes.

Okay, have you been having to pay for it?

Oh, it's already paid off.

Oh, it's paid off. So just paying the taxes?

Yes.

Okay.

Well, you know what, there's no taxes to pay on it.

There's no taxes to pay?

No, I didn't have taxes this year.

Oh, okay, gotcha. So if you could wave a magic wand What would you like to see happen in the house?

Well, if I don't sell it, then I'll rebuild it myself eventually.

Okay, gotcha. Is that something you've been thinking about doing, is rebuilding yourself?

Yes, if I don't sell it. Okay, I'm getting ready to build my home now, so if I don't rebuild it— I mean, if I was gonna rebuild it, yes, I'd be finished with my home.

Okay, now if you were gonna rebuild it, would you be— would you have to— would you be rebuilding the entire thing? Like, would you have to knock it down and, and put a new house there, or would you just be like remodeling it?

No, they don't have to knock the whole house down. Okay, no, you do it. No.

Okay, gotcha. So, um, it sounds to me like you would prefer to sell the property right now rather than rebuilding it. Do I have that correct?

Well, yeah, I'm gonna— well, that's why those are my plans to sell it now because it took a long time for me to try to get mine built. So now I've been approved to get it built. So what I'm saying now, I'm going to sell that one.

Okay, gotcha. All right, so, um, Can you help me understand real quick again in a little bit more detail about what on the property is currently damaged and what is going to be fine?

The roof is damaged by the kitchen and near one of the bedrooms.

Okay, so, so the roof above one of the bedrooms is completely damaged.

Well, the whole roof is not damaged, but in the area where the kitchen and the bedroom, they're kind of close up to each other. Okay, okay.

And then is, is that it? Is that the only thing that would need to be replaced?

You're gonna— well, when I get a remodel, I'm gonna have everything taken out if I don't sell it. Have all the inside gutted down and redo the whole inside.

Okay, gotcha.

Those are my plans. And then put a new roof on there.

All right. So if you did do that, if you put a new roof and you redid the inside, how much do you think you would sell it for?

I'm looking to sell it for about $350,000 to $200,000.

$200,000 to $350,000?

$250,000 to $300,000.

Okay, $250,000 to $300,000, And if you were to sell it now in its current condition with the roof needing to be replaced and without redoing the inside, what do you think would be a fair price for it now?

Well, my plan is I'm going to sell it for 150.

For 150?

Yeah, but they are going to charge me 125 to remodel it. I already spoke with the person. Yeah, contractor.

Yeah, that sounds about right. Okay, so Let's see, you said that they would charge $125,000 to remodel it?

Yes.

Okay, so I guess if I were to pay $150,000 for it and then I paid $125,000, let's see, I'd be all in $275,000. So I'd probably have to sell it for like $350,000 to make like 10%. Does that sound right?

That sounds right.

Right, but you think that you would probably sell for $250,000 to $300,000?

Probably more than that. That's what I get written.

What's that?

Probably will sell it for more than that, because with it being everything so high now, houses is running like, for a 3-bedroom, 2-full bath, you're looking at about $400,000 for that.

Okay, but you— I thought that you said that you would probably sell it yourself for $250,000 to $300,000.

Yeah, I said if I was gonna sell it, that's what I was selling for. You said now the base price, the base price now to buy a house at that time. You was asking how much can you make?

What's that?

You was trying to see how much you could make off of it.

Well, I mean, I just assume that you probably know the area better than I do, and so that's why I'm asking you. Because I mean, if you say that you would, that you would, after you fix it up, you would, you would sell it for $250,000 to $300,000 but that you already talked to somebody and they said they would cost $125 to do it, so you would be paying $275, right? And then let's say that I did sell on the high end of the range that you told me. If you did sell it for $300, right, after you sell it and you pay the fee, you know, the closing costs and the realtor fees, you would be losing money, wouldn't you?

Not really.

Well, I mean, I'm just looking at my numbers and I know, you know, I've sold several houses in Florida And I know that, you know, I have really good relationships with realtors out there who aren't going to charge me a lot. But after I pay closing costs, after I pay closing costs and fees, if I did sell it for $300,000, I'm still going to be spending about— what is that— $15,000 on closing costs and realtor fees. Would you agree?

I don't know, because my closing costs of my house I'm getting billed now Uh, for a house like $350,000, my closing cost is $33,000. So I don't know what you would charge for that closing cost.

Well, so that's about 10%. So I'm, I mean, I'm even going lower and I'm saying that it would only be about 5% because like I said, I have some really good relationships with title companies and realtors out there. But I'm saying, but I'm saying, you know, if I, if, if, if I were to sell it at the high range of what you said of $300,000 and it only cost me 5%, right, then I basically, I would be breaking even if I, if I bought it for $150,000.

Well, see, the fact of the matter is, since you know a lot of people in Florida, you can probably get them to rebuild for cheaper price also.

Well, so I mean, I, I'm looking at that and that is something to consider, but I think that your numbers are pretty right that that person gave you. Because here's the deal, I still am gonna use a licensed and bonded contractor, and I can see here that the property is, let me get the exact amount, that the property is just shy of 1,500 square feet. And I know that in order to replace a roof and redo a property like that, it's gonna cost me at least $100 grand. So my question to you is, do you have any wiggle room on that price of $150,000?

The lowest I'll take is $125,000. I mean, I can't take any lower, 'cause I'll lose out then.

Okay, so if I were able to get you an offer of $125,000, that's something you'd be ready to move forward with?

Yes.

Okay. So is what I'm gonna go ahead and do, If you give me a second, Tequila, give me a second. Let me look into this a little bit deeper. Let me call some people and see what this is gonna cost me, and I'll see if that's a number I can do. Just to confirm, this is kind of something that I'm looking to make a move on pretty soon. If I were able to offer you $125,000, is this something that you'd be ready to move forward with today?

Yes.

Okay. All right, well, I've got everything I need so far. Let me go ahead, reach out to some people. Um, real quick, if you want to save my information, Tequila, my name is Tyson Smith and this is my phone number. Um, let me get this info sorted out and then can I give you a call back in maybe 20, 30 minutes?

Yes, that's fine.

Okay, perfect. Well, I do appreciate you taking the time to speak with me today. Hopefully we can do some business here. Let me get things sorted out on my end and I'll give you a call back shortly, okay?

All right, sir, thank you.

Thank you, bye-bye.

Bye-bye.

$25,000 price drop on one question. You guys are about to see the power. I have no idea how much I can pay for this house, by the way. Probably not anywhere close to what she's asking. Now, here's a property I'm looking at. It's much bigger than hers, so it's not a comp. But here is going to be a very good comp for her property. Nice little as-is comp, right? So this is a very similar looking property to hers. If hers didn't have a fucking roof that was on fire, very similar size, just an as-is property, right? So it has not been remodeled, anything like that. And it sold for $180,000. Let's scroll out and see if we can find any more comps. Nothing. Okay, let me, let me bump this back and let's see 12 months out. 12 months out, we have a property that sold for $217,000, 1,300 square feet, nicer, brick-built. What the fuck is this? What is this, chat? What is this? Wait, chat, are you seeing this? What is that? Why is there a door right there? Why is that not a garage? Oh my gosh. Okay, whatever, whatever. Another as-is property sold for $217,000. Okay, let's see what is for sale currently in this area. For sale, accepting backup offers, and pending. $200,000, $135,000, $40,000. So we have a $200,000 property.

Okay.

And this has been on the market for 15 days. Okay, very similar property, extra bedroom, bathroom, not a huge deal. This looks like a mobile home. Is this a mobile home? Yeah, it's manufactured, not a comp. Okay, we do have a property for sale for, for $300,000, 111 days on market. So this is an ARV property. I can already tell they've remodeled it. Okay, so notice, guys, look, when I'm looking at this comparable property, it's for sale for $300,000. They did a $30,000 price cut, uh, 2 months ago, and it's still for sale at $111,000. What does that tell me? That her property will not sell for $300,000. Okay, that is out of the cards. It is too much for this area. Not to mention, we are on the outskirts of fucking Quincy. What though? All right, I need to do a bigger range here. Let me go back 6 months. Let me go back 6 months. Let's sort high to low. Let's see what we got here. Let's see what we got. Hold on, let me, let me put some square footage on this thing. Also just houses. Let me put some square footage on this thing. More. All right. We want to see max $1,750s. Okay. All right. So we do have some properties that have sold for $300K. Interesting. Okay. Okay.

All right.

I like it at 275, boys. 275 ARV. So guys, we move on over to our calculator. We go 275, but we type it in without periods. Okay, $1,500, $90,000 remodel for sure. Now look, if somebody is going to spend $90,000 on a remodel, they are going to want some cheddar. We need to work in at least $60K here for the profit. We need to make this a good fucking deal. 55. Perfect. That has our dispo price at 110, meaning I would be looking to sell this to a cash buyer for $110,000. Meaning if I want to make 20 G's, which I fucking do, you best believe yourself, then I need to buy it for 90. Okay, I need to buy it for 90. Now this is good, we are only $35,000 away from her. So is what we're going to do is we're going to call and offer her $71,000 for it. I'm gonna be like, dude, the roof's burnt, we're gonna have to redo a bunch of shit, it's gonna be a huge pain in the ass. Look, if you want it, we'll buy it, we'll close in 30 days, we'll buy it completely as is, you don't have to worry about cleaning anything out, da da da da da da. Pitch on the features and benefits, sell the sizzle. Then we got to be at $71K, and then that gives me room to come up. All right, it is tequila time. Let's call Tequila back, let's offer $75,000 for her property. See what she says. Tequila! Hello, Tequila? Yes, Tequila, it's Tyson Smith. We spoke not too long ago about your property over Okay, awesome. So congratulations, the property was approved to be purchased. So let me explain what I've gotten approved. So our offer was approved to buy the property completely as is, meaning all you have to do is take whatever stuff you want from the property and you can leave everything else there. You don't have to worry about cleaning stuff out, taking any trips to the dump or anything like that. Does that make sense?

Yeah.

Okay, awesome. They have also approved the closing to be as early as 21 days from now. So you can do it longer than that if you'd like for some reason, but if you want it done as soon as possible, we would be able to close in 3 weeks. Does that make sense?

What day would that be?

3 weeks from today would be the 24th of October.

Okay, um. Are you gonna send— what do you get in the pool?

Okay, so I'm getting to that now. So we can— we can— you can— you can pretty much pick the closing date. What we can do is as soon as 21 days, or if you need longer than that, we can do that as well. Um, the next thing is that there are no commissions taken out, and we will be covering all of the closing costs. Okay, so all of the title fees, everything like that, we pay for. There's no commissions or realtor fees or anything like that. Does that all make sense?

That makes sense.

Okay, so with that being said, the approved offer for your property in its current condition was $74,560. Okay, you don't think that'll work?

I need more. $74,000. Gotcha.

So yeah, I really went to bat with you, or I really went to bat for you, and I tried to get it approved at $125,000. Unfortunately, due to the fire damage, they just expect that the remodel is going to take a lot longer and it's going to be expensive. But the good news is, Tequila—

yeah, they told me, they told me I already got a contractor come out there. It's only going to take $125,000. So I already know it's going to cost to fix it, right?

Well, no, and we completely agree with you on the numbers. The problem Here for us is the time, right? Doing these remodels just take longer than what is normal if you just have to redo the inside. And so, so that affects it. But, but the good news, Tequila, is, look, I'm on your side here, and the hard part's over with. Now that we got a prop to go, now that we got the property approved, it's just a matter of making the numbers make sense for both of us. So I, I understand that, you know, $74,560 might be too low Um, if there was any way that maybe we could, you know, increase that a little bit, if we could maybe get you an extra $4,000 or $5,000, do you think that's something that might work?

If you can get me about— I said $125,000, but I'll keep it to $100,000.

Okay, you think $100,000 will work?

Well, yeah, we'll see what you can get there.

Okay, gosh. All right, I don't know if I'm gonna be able to make that happen. Let me go, let me call my boss. If I can do $100,000 Is it something that you're for sure ready to move forward with?

I'm ready to move forward.

Okay, I'm ready.

I made the phone call, so I'm ready.

Okay, all right. There's nobody else you need to talk to or run it by?

I was going to talk to my son. I have an adult son.

Okay.

I mean, it's my kind of decision because it's my property.

Gotcha. But you would want to run it by your son first?

Yeah, if you can get that $100,000, I'll write it back in quickly. Okay. And he's gonna agree because that's what he didn't want me to do, so.

Okay. All right, let me go to bat for you. Let me get this done. I'll give you a call back.

Okay. All right, bye-bye.

All right, boys, we are officially in the fucking money. I can sell this thing for $110,000 all day long. I know that. You guys just witnessed all it took 2 fucking phone calls for me to essentially have made $10,000. Now I'm not done here because I don't want to make $10,000, I want to make fucking $20,000. So I'm obviously going to call her back and now I'm going to move up to my $90,000, okay? I'm going to offer my $90,000 and I'm going to really stick hard on that, all right? I think we'll be able to make it happen, okay? Because I'm gonna be like, dude, are you kidding? Like, I already came up like $74,000, like I'm coming up $15,000, like work with me here, whatever. We'll see. So we already got $10,000 on the table. However, we want to make $20,000, so we, you know, we gotta, we gotta feed our family too over here. So we'll give her a second, we'll give her a second, and then we're gonna call her back. We're gonna offer $90,000. We're gonna offer $91,000 actually. Okay, let's go. Let's call Tequila. Let's make a deal happen, boys. Let's make a deal happen. What are we here for? We're here to buy some houses. So that's what we're gonna do. We're gonna go ahead and buy this house. Tequila, sell me this house. I have a fucking deal for you. Tequila?

Yes.

All right, I got some good news. So I just got off the phone with my finance guy and I pushed hard. Now, like I said, did— and also, were you able to figure out when you would have wanted to close? Would 20 days— would 21 days work for you, or would you have wanted longer than that?

No, I don't want it no more.

Okay.

I'm just doing the paperwork, I'm like, "Give me all the house, I don't wanna go further out." Okay, all right, so here's what I got.

Unfortunately, we were unable to come up to $100,000, but I was able to get them to increase the price by more than $15,000. They said our final and best offer for this property, where we are buying it completely as is, you are not covering any of the closing costs, we're paying for all of that, there's no realtor commissions or anything like that, And I even got them to say that we could close in 18 days. Our final offer will be $91,000.

91,000. Okay, I'm gonna put my son on the line. Can you repeat that one more time so he can—

Absolutely, three-way him in.

Hold on a minute. Okay, so that's— so then, Shanee Lockwood is on the line now.

Hello, Shanee Lockwood, can you hear me?

Hello, hold on. Hello, sir.

No, no worries, I'm here.

Okay, Shay, we need to use audio. Hello?

Hey, good. Can you hear me all right?

I can hear you well.

Good. Hey, so my name is Tyson Smith. I've been talking with your mother Tequila about this property. Um, we're looking at purchasing it, and the deal that we've got, the absolute best deal we can get for this property, is we're looking to buy it completely as is. So nobody has to worry about cleaning the property out or anything like that. You guys go there, you take out the stuff you want, and we're buying it as is. So you don't have to worry about any repairs, any trips to dump, cleaning the property, anything like that. In addition, we will be covering all of the closing costs. So all of the fees that the title company normally charges, all of the escrow fees, the transfer fees, the title tax, everything like that, we're going to take care of. There will be no real estate commissions or anything like that taken out of your offer. So our offer is 100% net to you. With that being said, our absolute highest and best offer for this property is $91,000.

Okay, uh, my next question would be, is that possible to get in writing to look over via email?

Absolutely. So it's what I would like to do. We Buy Homes Cash.

Okay.

But yes, what I would like to do is put all of this in writing, send it over to you guys so that we can go ahead and review it, make sure that everything you guys are looking for is in there. So that we're 100% okay with moving forward. And what is the return date on it that you need it back by? Well, after we go ahead and look over it, assuming everything makes sense, we'd want to go ahead and get it back as soon as possible because as part of this deal, we're looking to close in 18 days. Tequila had mentioned that she wanted this done as soon as possible. Now look, if you look over the offer and there's anything that doesn't make sense, of course we'd get it changed to make sure that it fits your liking. Gotcha. So is that something you'd like me to go ahead and get started for you right now?

Uh, yeah, you can go ahead and get started.

All right, is—

We'll get it over emails and we'll take a look at it and review it, uh, throughout the night and throughout the next day.

Okay, perfect. So what I'd like to do is, um, if you give me a second here, I want to go ahead and get both of your emails Just bear with me a second, and then I'm going to send it over to you guys. We're gonna— I want to review it with