How To Close A Wholesale Real Estate Deal (Live Closed Deal)

All right.

Hello?

Hello, Brenda? Yeah, Brenda, my name is Tyson Smith. I'm with We Buy Homes Cash. I just got some information submitted about a property in over in Lake City that you might be looking to sell.

Mm-hmm.

Have I caught you at a bad time, Brenda?

No, it's fine.

Excellent. Whereas what I'd like to do is take 10 to 15 minutes to ask you some questions about the property to see if it'd be something my company would be interested in buying. At the end of the call, one of two things will happen. One, my company is interested in purchasing it and we'll have a cash offer for you in writing in your email inbox in the next 20 minutes, or our company is not interested for whatever reason. We'll let you know why and then you'll never hear from me again. How's that sound?

No problem.

All right. So, Brenda, while I'm getting the property pulled up over here on my end, could you do me a favor and catch me up to speed? What's got you thinking about selling this place?

Well, my husband passed away in September, and, um, I just— I don't— I want to get something. I want to take the money from this house, buy something smaller, and, um, and then have money left over, you know, so I can get my son going in a profession. Okay.

Yeah, that completing his license and stuff.

Yeah. So that's the reason why You know?

Okay. Are you currently living in this property?

Yes. Okay.

So you said you're looking for something a little bit smaller?

Yeah, yeah. Something that, you know, is like a fixer-upper, you know what I mean? Because we know how to do all that.

Oh yeah.

So, you know, that's what we did for a living, you know. But my husband was really sick, like, for a while. And, um, we moved up here because we had 10— we had 10 acres and, um, you know, we wanted to take care of it. And then right after we moved here, my husband got really sick and just was in and out of the hospital like for over a year until, you know, he finally went into hospice care here at the house. Gotcha. And, um, the property— we— reason why we got it is because we had a lot of tools, trailers, you know, all kinds of stuff like for work. And I've sold most of the stuff now to make the property more empty. And when we first got here, we spent about $40,000 to $50,000 on materials— barn doors, tiles, you know, stuff to redo the bathrooms, garage doors, fencing. I mean, I have all of the materials, you know. My son did sheetrock the living room, and he did put in the barn doors, and he did make the house a smart house, you know, with Alexa.

Oh, nice.

Lights and fans and everything. And we did, we did like completely strip the floors, you know, down to the concrete, started putting, started putting the tiles in the two front rooms. But when my husband got sick, kind of everything stopped, you know? Yeah, I'm just tired now. I don't— I just, I just want to be out of this place. It's, it's big and we don't really need it. It's just me and my son.

Yeah. Okay. So when you say you want to be out, in an ideal world, how soon would you want to have this place sold, have the money in your pocket, and be ready to move out?

In a couple months.

A couple months? Like, does that mean like 60 days, you think?

Yeah. Okay.

All right. And so based on what you're telling me about the property, from what I gather is you've done some cosmetic work, putting in some barn doors, Uh, sheetrocking a room, and then the, the flooring is halfway replaced, but you guys have everything else to, uh, install it.

Um, yeah, got 1,800 square feet of tile in my carport. I have garage doors, I have fencing that goes all the way across the front, you know, the nice metal fencing that slides in like the panels.

Okay.

And, um, a, a gate with all the You know, the garage doors are from Home Depot and they have the Wi-Fi, you know, and the remote control and everything. They're very new and modern. Okay. And I have, you know, all the tiles and everything to do one bathroom, and I have two seamless shower doors for both the bathrooms. You know, so there's a lot of materials there that haven't even been used for the house yet.

Gotcha. Okay. And I assume that those materials you'd be looking to sell with the house?

Well, yeah, of course. Okay.

Um, how about the kitchen? Was anything done to that?

Well, I did put in all brand new stainless steel appliances. Like, I have the refrigerator that has the screen on the front, you know. Yeah, you know what I mean? Yeah, it's with Alexa.

Yeah, it's like a stainless steel one of those.

Yeah, you can watch TV, look inside the refrigerator, you know, all that.

Okay.

Um, the dishwasher is, I believe it's a Bosch, and then the stove is like one of those flat range, like it's flat, it doesn't have the back piece, you know what I mean? It's real nice. It's a whole oven stove, stainless steel, and then the mic— overhead microwave also. It's all like stainless steel. All the appliances are Samsung except for the dishwasher because my husband wanted the kind that it shows the controls on the floor, and Samsung doesn't make that, so I had to get it from like a specialty place. But, um, yeah, so all, all smart appliances were put in the, uh, the, uh the kitchen.

Excellent.

And then no cabinets or anything were done or anything like that too, but I put a brand new faucet too, like with the pull-down handle and all.

So, okay, so, so the cabinets, and I'm guessing the countertops, are the original?

Yeah, they are, and they're not in bad condition. I mean, you know, you— I mean, we were planning on refacing them is what we were planning on doing, which is a, you know, a cheaper method. And then, and then, you know, we were going to do a poured concrete counter.

Okay, understood.

Yeah, but I mean, of course anybody can do whatever they want. That was just what we were planning on doing.

Okay, so based on what you've told me about the property, um, there are a lot of materials there that still do need to be replaced— or I'm sorry, need to be installed— and there are some other updates to be made. Based on the property's current condition, what do you believe is a fair price for it?

I would say with the materials, $180,000.

How about without the materials?

$150,000. Okay.

So if I'm to take this to my underwriter and I'm able to get you a price with the materials and we're able to do $180,000, or without the materials, if they're willing to do $150,000, is there anything else you need to figure out before you were ready to move forward with that deal?

No.

Okay.

I have some place to— I have some place to stay, you know, until I acquire another property, you know what I mean? So I'm okay with that. I can get everything out and moved.

Okay, so Yeah, so when I asked earlier, you said we want about 60 days. Is that what you'd be thinking still, or would you want to be—

like, if you want the materials, then I could probably do it in 30 days, you know what I mean? But I have to get a storage for the materials if you're not going to purchase them, you know what I mean? And put them in storage, and you know, that takes time. Okay, so that's why.

Okay.

All right.

Well, before I go and figure out the exact price, is there anything else you think I should know about the property?

No, not really. I mean, I don't know what you see, like when you look at pictures on the thing, but we did clear all the property of all the— like we spent like $2,000 having the tree, you know, all the front cut down, you know, all the trees that were no good cut down and, you know, the stumps taken out and all that. So The property is more clear and open than I— and like I said, I don't know how it looks on the, on the internet if it still has the old pictures, but we did clear all the property, so it's all nice and wide open. And, um, and then we can— like I said, we separated the front room, which was really big, into two rooms. We framed it out so they both have ceiling fans and You know, that's where we started doing the tiles at, was in the front room. So, okay. All right.

All right. So, um, is what I'd want to do is first I'm just going to tell you about the process. Uh, is what I want to do is I'm just going to put you on a quick hold. Uh, let me take this information over to my manager. Um, we'll look at the property. It's going to take us about 4 or 5 minutes, and then, um, I'll be able to come back and I'll be able to let you know, um, if we're able to make either one of those things happen.

Okay. Okay, and just one other thing, just so you know, like when we moved here 2 years ago, it was a lot quieter, but they really are starting to sell up here and the prices are really starting to go high. And then also this place is zoned for commercial, so you can have a business here as well.

Interesting.

Okay, plus, yeah, yeah, can be residential or both.

Okay, excellent. All right, all right. So is it okay if I put you on a brief hold? It shouldn't take more than 5 minutes.

No problem. All right.

I'll be right back.

Okay.

Okay. So interesting. A lot of things. A lot of things going on there. The property is worth $245,000 to $240,000 redone, I think.

And we're— and just maybe it's not the right time because she's on hold, but where do you come up with that? Like, where are you looking?

Yeah. So I'm— while we're talking, I'm now— I'm doing a couple of things because I'm really used to doing this. It's kind of don't recommend you to do this, but I'm on Zillow right now looking at all the properties that have sold in her neighborhood in the last 12 months. And this just happens to be a really easy property to comp because there are 5 examples of properties that are all about her same square footage, same year built, that are updated, selling for around $240,000.

Wow.

From there, I'm plugging this into my calculator. The kind of X factor here is what the repairs are actually going to cost because I'm not really sure.

I mean, well, she has a bunch of material you can buy.

Yes, it does. And also, I don't want her materials at all, okay? Immediately when she says that, it's like, yeah, nope. I'm, I'm actually really glad that she said, oh no, I'll keep them and give you a lower price, because that's 100% we're going to do. Um, I think my absolute most— I mean, here's the deal, is I might be able to give her what she's asking, $150, and maybe give it to somebody at $160. However, The property is weird, and I don't think like a landlord is going to want to buy this property. I could be wrong, um, just because I don't know Lake City, Florida that well, but it's pretty close to a main road. Uh, there does seem to be some commercial over there, um, that can impact the price. So really, I'm looking at this property as a flip. Um, that's where I think that this really is going to do well. Um, my last thing I do want to do before I jump on the phone and like really make a price is looking at what's for sale. It's really important not that these are comps, but you want to know what a flipper is going to be competing with or possibly could be competing with if they do the property. And what I'm seeing shows me exactly what I thought. This property is going to sell for around $240,000. Wow. So I plug this into my calculator at an ARV of $240,000, 1,700 square feet. I think that you can get this done for about $50K, assuming what all needs to be done. And that shows that if we do that and the investor wants to make— here's the thing is I think somebody will do this for maybe a $30K profit. It's a pretty competitive market that puts our price at $142,678. Now, my gut feeling is I probably can get more, but I'm going to start my offer with her at $120,000.

Wow.

So is what I want you guys to pay attention to is how I really make sure I'm framing the benefits of her selling it to me. And yes, the trade-off, if she's going to get less money than what she's originally expecting, but I'm going to tell her why, what she's getting for that money, right? I need to remember her name, though. It's Brenda, right?

Yeah, I think it's Brenda.

Yes.

Hello, Brenda, are you with me?

Yes, I am.

All right, so I just got back from speaking with my manager. We were able to take a look at the property and it was approved to be purchased. So let me go over exactly what they've approved. Okay.

Okay.

So first thing is they've approved to buy the property completely as is without you having to transfer your materials. So you can keep all the materials that you've already purchased for the property. Okay.

Okay, so I keep all the materials?

Yes, ma'am.

Or you keep them?

No, you would be keeping them. Yes, we'd be just looking to buy the property. Anything that's not nailed to the walls or affixed to the ground, you take with you, or you're free to leave anything else. Like, you don't have to— for instance, if there's something that you don't want, maybe old furniture, rubbish, you're free to leave that there. That's something that we can take care of. Okay, does that make sense?

Yes, I understand. So like the blinds, take them out of the windows. Or whatever, leave all the doors because they're nailed in, right?

Yeah, anything, anything that's nailed into the walls or in the floors, you need to leave, but anything else you can keep.

Okay, okay, I understand. So leave the blinds, leave the doors. Good.

Okay, so the property is to buy it so as is, meaning there's not anything else you'd have to come and do. You don't have to make repairs, you don't have to clean anything out besides taking what it is you want. Does that make sense?

That makes sense.

Okay. In addition to that, they've approved for us to purchase the property where we will pay all of the closing costs. Does that make sense? So you won't be responsible for paying any of the escrow fees, any of the transfer taxes, anything like that.

Yeah, I read your website.

Excellent. Okay. And then the last thing is it has been approved for you to pick your own move-out date, meaning that if you want to close and be moved out and paid in 60 days, we can do that. If you'd like it to be sooner, we can do that as well.

Okay.

With that being said, the offer that they came up with for your property in its current condition was $122,650.

Yeah, that's a, that's a little low for me. I can't do that. But that's, that's a good offer. But yeah, I paid $140,000 for it 2 years ago.

Oh yeah.

I said property values have increased here quite a bit. That's why I said without— even with the work I did, I would, you know, be willing to take $150,000, which is like just $10,000 more than what I purchased it for. You know what I mean?

Yeah, that makes sense. So the good news is now that we've gotten the property approved, it's just a matter of making numbers make sense. I understand that it's less than what you're thinking. Do you think maybe there's any way we could possibly meet in the middle somewhere?

Well, I definitely have to get at least what I paid for it. And, you know, like I said, we did put, you know, quite a bit of work into it as well. Like, we've cleared the whole property, you know, and we put all the doors in and everything. But I mean, I just, I just can't see anything less than $150,000.

I really can't.

Yeah, it's only $10,000 more than what I actually paid for it, you know, and I'm telling you, there's the influx of people moving from down south to up here is crazy. I mean, they don't even have anywhere to put them all, you know.

Is that right?

Yeah, a lot of the— I mean, a lot of the houses are going for like way more, and it's on a nice— it's almost on an acre of land as well, you know what I mean? And it's zoned for commercial.

Is it on an acre of land?

What was that?

Is it on a full acre of land?

It's on 3/4 of an acre. It's a big piece of property. It's got a 2-car garage, you know what I mean? So, you know, it's pretty big.

Okay, well, let me, let me ask you a question, because I don't think that— I don't think my manager looked at the size of the land. Yeah, if I was able to get them to come up and we could get, you know, closer to your $150,000 number, Is this something that you'd be ready to move forward with today?

Yeah. Yeah. Why don't you— you want to call me back or send me an email? I mean, talk to the guy, you know, take another look and then let me know.

Well, it's— the reason why I ask is because I know that we did just sell a couple of our flips and they definitely would like to buy a property before today is up. Now, we do have a couple more we're looking at, but if I can say, hey, you know, I spoke to Brenda and she says that if we can come up with a solid offer, close to 150, she's ready to get the paperwork rolling today. It'll give me a lot of negotiating edge with it.

Okay, okay. Sorry, I just had to call. I had to put you on mute for a second. I had to call my dogs.

Oh, no worries. What kind of dogs you got?

Ran out real fast.

Oh, gotcha. You better get them. You don't want them to run away.

Good, good.

I got my dog next to me too.

Okay. Yeah, so just, I mean, like I said, if you can come up with something a little better than that, I mean, that would be great. Kobe, come here.

Okay, so, so is what I'm asking is if I can get somewhere close to $150,000, is it something you'd be ready to start getting the ball rolling on the paperwork today?

Yeah, it would be.

Okay. All right, let me, um, let me go talk to him. I'll give you a call back in the next 5 minutes.

Okay, that'd be great. Thank you. All right. All right.

Thank you. Bye-bye. So here's what I'm thinking. The property's a $240,000 house all day long. Yeah, I think I can get her for less than $150,000, somewhere above what she paid for it. So I think my first offer, I come back maybe around $142,000. But what I want to figure out, because here's the deal, when you're doing acquisitions, a good deal always starts here. And the last thing you want to do, and something I got in the habit of, especially early in my career, was just trying to get deals and then not being able to sell them. So I'm always thinking while I'm doing acquisitions is how am I going to sell this deal to somebody else? What are my selling points? Right.

I like that you put your shoes like, like you put your feet in the shoes of the flipper earlier when you were talking about it, which I thought was really interesting. Like you're looking at the competition as if you were the flipper, which is, which is like right on the nose, I think.

So here's what I'm looking at right here. Now I know it's mirrored, but that says 63.63. And that's kind of a magic number because what I did was I know if I could get the property for like $142,000 and if I'm selling it and I want to make $10 grand, $152,000, that means I'm selling it at 63% of the ARV. And that's typically a sweet spot in bigger markets. Okay. In markets, you know, bigger markets in Florida, places like Phoenix, places like Texas, like Dallas, Houston, Las Vegas, right around 63%, sometimes up to like 65% of ARV is typically where deals will trade at. Now, this is not to say that's just a rule and you should go ahead and do that, but it's something that I've found.

So if, if she was a hard no on the $142,000, would you reconsider your number or would that be it?

No, no, no.

If she was a hard no, then this is a, this is a follow-up. Right. But the, but the thing is, is she seems motivated. She's going to make a decision. And I would rather get this under contract and only make 10 than do what I would do on other people, which is kind of slow roll it right where I'm just slowly following up, slowly inching my number up, because that's something that you could do with this, with this lady as well, except for I feel like she's more motivated. Look, she's typing in stuff on your website. Where else is she typing it in? Right.

Yeah.

100%.

So I would rather get this deal and then see what I can do with it than sit there and wait. Now, there are other times where I would, I would prefer to wait. I'd prefer to, you know, slowly inch my offer up, see what I can do, and just play the follow-up game. But in a situation like this, I think that I am confident that if I'm selling it at 63%, that's a good sticking point. Like, that's something I can call up a buyer and I could say, hey, we're selling this thing at 63% of value. And I have 8 different comps that I can show are selling. They're traded around $240,000. Um, and the properties that are for sale, same, same deal, you know.

Yeah.

So we'll go ahead, we'll call it up. But one thing I also want you guys really to notice is how much I try to get a commitment out of, right? How many times he was like, oh, is this something you're gonna move? You're ready to sign. Right. It's something that, like, Miguel Prado, who's Templeton Walker's partner, he says, okay, if I'm able to do that, is something— is that something you're going to think about or is that something you want to sign on? Right. Where I don't necessarily like to use the word sign. I want to keep it like committed but not scare them. So that's where we come right there. Where it's—

I noticed, I noticed that too. When you, when you said that earlier, she acknowledged that you wanted to like close today. But like, you wouldn't go to put her on hold to go talk to your manager until she explicitly said yes to that, which is very interesting.

So in my sales process that we teach, getting a commitment is a super important thing. It was the difference I noticed in my sales reps that were crushing it, doing really well, and weren't— were the ones who were, were always getting a commitment, right? And yes, this doesn't matter even if their asking price is 100 grand more than what your MAO is going to be. Get a commitment from them, right? Get them to say, yes, if you can do $240,000, I'm ready to move forward today, right? And even if you're gonna come in, you're gonna offer them $140,000, you still wanna get that commitment. 'Cause we're getting their idea, we're getting their brain, they're tricking themselves into they're selling this house today, right? Right, when people make a decision, they typically wanna stick with it unless you mess something up.

Yeah.

All right, so what I'm gonna go ahead and do is it's probably been enough time now. Where I can call her up again. Um, is what I do want to do though is have my contract mostly ready to go. Um, this is something where I just like to be fluid with it, right? I want to be able to— once she accepts, I want to be able to say, all right, I need you to open up your phone, pull up your email right now, we're gonna go over something, you know.

While you're doing that, I want to ask, when you first got on the call with her You didn't like immediately ask her what she wanted for her house or anything like that. You just dove like right into like what's going on with the house, going off the property. Now she was obviously very forthcoming with them like renovating things and such like that. Is that a part of your sales process too? Like you need to learn about this property in this house before you even start talking price or you've got no baseline? Or is there like—

what I'm going to say is there are different philosophies on this and different people do different things. And I think I think it just depends on who you are. And I think a lot of stuff works as long as you do it right. Right. If we go talk to RJ Bates, he's going to get pissed off. He's going to be like, Tyson, I didn't teach you to do that. Like, you should have asked her right away how much she wanted for the house. But I always— my first question every single time, like clockwork, is, okay, well, while I get your property pulled up, could you catch me up to speed? What's got you thinking about selling this house? For me, I want to be able to leverage this. Now, if you notice, I haven't yet because we haven't gotten to the time where it's actually decision making. Taking time. But when we start to go through the contract— or this is what I'm about to get into now— is if she starts to sort of dilly-dally around, it's like, hey, listen, you know, we spoke earlier. I know that you've been trying to get out of this house. I know you're looking to get into something smaller. This is going to allow you to do that. I think there's something we should really move forward with, right? This is going to get you where you want to go. Now, I know where she wants to go because I asked her, but also it puts me in a position to tell her it's a good idea, right? Okay, so one thing I just want to do real quick is I'm going to pull up the tax records of her property and I'm going to see if there are any other owners. Right. I want to see who's on title. And yes, it's her and her late husband. So we're in the clear. So let's call her back up. Let's give her the good news. We're going to start at 1:42.

Hello?

Hello, Brenda?

Yeah. Hi, Tyson.

Hey, I got some great news. Okay.

Okay.

So I was able to talk to my manager and I was able to get them to come up all the way up to $142,500.

Okay, that sounds good.

Perfect. So is your best email the one you submitted? Lilchristopheresc@yahoo.com?

That's it.

Okay. And are you in front of your computer? Do you have access to your email right now?

I can open it while I can open it up while we're on the phone.

Perfect. That's what I'd like to do.

Second.

All right.

Okay. Okay. All right.

So what I'm doing right now is I'm having my transaction coordinator send you over the offer. So you're going to get an email that says offer for and then the address of your property. And me and you are going to go over that so you can see all the parts that are important.

Okay.

And the fact that it's got everything we talked about where we're paying all the closing costs, we're buying the house entirely as is. So you don't have to make any repairs or clean anything up that you don't want to, right? You take everything you want from the property, you leave everything else for us.

Okay.

Give me just a second while they get this finished up. So you said, uh, do you have multiple dogs? What kind of dogs are they?

Oh, I have a, uh, Chihuahua and a Salini and a black cur.

And what was the last one?

A black cur.

A black cur. What is that?

Um, they're, they're like a sheepdog, like a sheepdog kind of. They're, they're kind of like a mix between Um, I can't even— I, I can't even— you have to look him up. I can't—

does he, uh, does he try and herd around the Chihuahuas?

80 pounds. He's 80 pounds. They have that because they have that black around their mouth, you know what I mean? That's why they're called the Black Curr. But they, they use them out in the country for like sheepdogs, uh, you know, stuff like cattle dogs. Interesting.

Okay, does he ever try and hurt around the Chihuahuas?

Actually, he protects them. Oh really? The Shih Tzu, the Shih Tzu has a real, real— he's real, um, like he's an ankle biter, you know what I mean? Trouble.

Gotcha.

All right, I'm just One causes trouble and then the other one will go after him, you know, like, because he thinks he might be in trouble. He's just an instigator.

All right, you're going to be getting an email in about 30 seconds here. It's going to be from Blake Smith. That's the name of my manager, and it's going to say offer for and then your address. It'll be coming in about 10 seconds.

Okay, not a problem.

Let me know when you go ahead and get that email.

Yeah, it just did. It just did.

Perfect. So what you're going to want to do is you open up that email. There's going to be a button that says Review Document, and then it's going to— have you ever used DocuSign before?

Yes.

Okay, perfect. So you know what's going on. So when you press Review Document, it's going to give you a thing saying, hey, this is an electronically transmitted signature. That's not you accepting it. It's just saying that you agree to use DocuSign. And then once you press that, it'll open up the document and it's going to say purchase contract and escrow instructions up top. Will you let me know when you've gotten to that page?

I'm here.

Perfect. So I want to go over some of the most important parts on this page. First is going to be Section 1.1, property address. Can you just go ahead and make sure I have the correct address typed in right there?

Yeah, that's it. 296 Southeast Baxter Lane. Yeah, that's it.

Perfect. Now, most important two parts of the entire document are going to be Section 1.5, purchase price, and 1.6, close close of escrow. As you can see, for purchase price, I have the $142,000 we talked about, right? And for 1.6 close of escrow, we have August 6th. That is, uh, little— oh, it's 2 months from today.

That's good, that's good. That gives me plenty of time.

Perfect. Um, below there, there's going to be escrow agent. That's the title company who's going to be handling the transaction. Notice that they are in Maryland. Do not worry, you're not gonna have to go to Maryland. They're going to go ahead and take care of sending a notary for you for anything that needs to be signed.

Okay.

And then you're going to see in Section 1.10, closing amounts to be paid as follows: escrow fees and costs, 100% by buyer. Standard title policy, 100% by buyer. Any HOA fees, if applicable, 100% by buyer. Transfer taxes, 100% by buyer.

Right.

That's saying we're paying all the closing costs in this transaction. Does that make sense?

Yeah, I got this page and down. I was just looking for the— I was looking for that part.

Perfect.

Hold on a second.

Okay, it's, it's 1.10 on the first page.

Yeah, yeah, I'm sorry.

No, hey, no worries.

1.10. Okay, got it. 1.10 closing amounts. Okay, 100%. Perfect.

And then below that, you'll see where it says personally— personal property being included right there.

I think you guys checked it in the wrong box.

Which one?

50% by buyer, 50% by seller, or— there's a, there's a box, there's another box right in front of 100% that's not checked.

Yeah, so, um, also, wait, are you on your phone?

Yeah.

Do me a favor, will you scroll up to the very top of the page? And at the top left, there's going to be a little slider that says mobile mobile-friendly version?

Yes.

Go ahead and check that off for me.

Okay, I just did.

Now, does it— is it able to read the document a little bit better?

Okay. Yes. Okay, got it.

So now is the checkbox in the right place?

Yes, it is.

Perfect. Yeah, that mobile-friendly version messes something up. There's nothing mobile-friendly about it.

Okay, got it. All right.

All right. So do you see there? Does that all make sense for the closing amounts? It's got everything checked off what we're paying for it.

So you want me to initial there? Yep.

As long as everything makes sense on that first page, just go ahead and put your initial at the bottom left. And then once we get down to the second page, most important, you're going to see where it says 1.12, additional terms and conditions. Notice we have written in there as per Section 7. The property does not need to be delivered in broom-swept condition. Property is to be purchased entirely as is.

Okay.

So I want you to scroll down real quick to Section 7. It's the first section on the third page.

Okay.

On there, there's a sentence that says seller—

1.12. I see it. Okay. Section 7.

Perfect. So In Section 7, there's a sentence that says that the property agrees to have all furniture and personal property removed by 10:00 AM on day of closing and agrees to leave the home in broom-swept condition. Right here where I say it does not need to be in broom-swept condition, property is purchased entirely as is. This is just real estate speak for you don't have to clean up anything in the property. You leave it exactly as it is. You take the stuff you want, you leave whatever you don't.

Okay, got it.

Perfect. Going down on that second page, if you want to go back up to where it's 1.12, Section 2, Purchase and Sale of the Property. This is saying you're selling it, we're buying it. Section 3, Status of Title. This is telling the title company that we're going to be buying the property pursuant to it having clear title, which just means that they're going to look and they're going to make sure, hey, Brenda's the owner, she's able to sell the property, and they're going to look at us and say, hey, We Buy Homes Cash is buying the property. They're going to pay us exactly what they said they're going to. Does that make sense?

Yes.

Perfect.

Section 4, inspection of and access to the property. This is saying that between now and closing, at some point we're going to need to go over into the property and take some look at some things. This is just getting some pictures, things like that. We're not doing a full-blown like property inspection, right? We're buying the property as is. We know what we're getting into. And this is just saying that during that time you'll need to work with us so that we can get people in at a time that works for you. Right. Perfect. After that, Section 5 is instruction to release deposit upon cancellation during the inspection period. This is saying that for any reason, you know, we send our people in and we notice that actually the living room got hit by a meteor and that substantially affects the value of the property. And if we do have to cancel the agreement because the property is damaged by a meteor and we can't quite pay $142,000 for it, that in that event we would get our earnest money deposit back.

Okay.

Perfect. Section 6, lead-based paint disclosure. Now, all I want you to do is read the very last sentence of that that says buyer waives the 10-day opportunity to conduct a lead-based paint inspection risk assessment. We're not worried about it. This is just standard stuff we have to have in the contract.

Okay. Not a problem.

Perfect. Does everything on that second page make sense?

Yes.

Awesome. Can you go ahead and initial in the bottom left?

Okay, got it.

All right. And then for the third page, there we go. As-is purchase, existing condition as of close of escrow. We're buying the property as is. This is the section right there where then it go ahead and continues to say, hey, you agreed to have the furniture, the personal property removed, but we went ahead and voided all of that in the additional terms and conditions above. You remember that? Perfect. Section 8 says that the closing costs and prorations, it says just like we have above, that the party shall pay the specific closing costs as set forth in 1.10. 1.10 was those checkboxes above where it said that we're paying all the closing costs.

Right. Understood.

Cure notice and attorney's fees. This is again more boilerplate stuff that says if for some reason my company breaches contract, then we have to pay your attorney's fees. And if you breach contract, you would have to pay ours. Standard stuff. Does that make sense?

Yes.

Perfect. Um, buyer's remedies— this shows what would happen in the event that we would have to cancel the contract.

That was what you talked about, like the meteor and stuff, right?

Exactly.

Understood. Now, what if I— what if I were to change my mind? What happens?

Is there a reason why you'd want to change your mind?

No, but I mean, you never know. What if, like, What if, like, my son died or something, you know, and I'm here, you know, I wouldn't be able to, like, stop everything. Of course.

Well, it's what I'm going to tell you.

Sometimes you never know what's going to happen in life, so you have to ask that question.

Absolutely. Well, well, Brenda, look, here's what I'm going to tell you right now. If you feel like for some reason you don't want to sell this house, then you should not sign this piece of paper. However, if your son dies, something like that happens, then we're of course going to release you from the contract. Right.

But like, you know, if anything, I mean, I don't see myself changing my mind. I mean, I don't, I don't see myself changing my mind. That's something I've thought about for a long time.

Exactly.

I've had your website and known about you for a while, you know what I mean? Uh-huh. For a few months. Okay. So it's not, you know, it's not something that I took lightly by calling you, but I was just saying, like, you know, if for any reason, if I wanted to cancel or any, like, you know, and it would be something that would be major if I canceled, you know what I mean? But if I did, what would the recourse be? I need to ask these questions.

Oh, absolutely, absolutely. And you should.

I need to know, like, what, what would happen, you know? I mean, of course, if my son died, I understand that because, you know, he lives with me. Of course, you know, of course.

Well, here's what I'm going to tell you is, look, you're talking to me, I'm an actual person, I understand you. And in the event something crazy like that happens, then we're of course going to release you from the contract. Okay, right. But, but also, I'm going to tell you this, Brenda. If all of a sudden it comes, you know, a week before it closed and you decide, hey, actually, never mind, this is a lot of work, um, maybe I don't want to move, and we've already invested a bunch of money, then we're going to buy the house. Don't you think that sounds fair?

It does sound— oh my God, yeah. I mean, I've been making it for years, and it was like people backing out on renting an apartment after, you know, I take the deposit and it was off put right on there, non-refundable if they change their mind.

Yeah, well then I'm glad we're on the same page then.

Yeah, because, you know, I could have had the chance to rent the place 10 times, right? I mean, right, because you said you wanted to move in, but yeah, so I understand the contractual stuff, but that's, that's all I wanted to know.

Perfect. Well, hey, that's an excellent question. I'm glad you brought it up.

You needed a little more time, like, oh, you know what, oh, if you need more time, of course, that's something we're—

yeah, no, That's something we're going to work with you on, of course.

Okay, beautiful. Because the only thing I can see happening is that maybe I need a little more time. But it would—

yes, you know, no, they—

that would just— yeah, I got to get help up here to help me do everything.

Hey, of course. Look, that reminds me of a situation we had. It was, it was a woman in Jacksonville, Florida. She was selling her house and she needed a little bit more time, right? It was 2 weeks before we were supposed to close. She called me up, she says, Tyson, I don't know what I'm going to do. And I said, hey, take a deep breath, settle down. How much time do you need? She says, I need another month. And I said, no problem. I sent her over an addendum. We extended close of escrow another month, and I even put in there, if she needs more time, we can extend it again. Because the last part— the last thing I want to do is put you in a bad situation.

Yeah, the only thing I would see happening is I would need another 30 days maybe. But I, I, you know, I'm like I said, I'm gonna do my best. I have a U-Haul sitting over there that's full of stuff. Like, I have a big yard sale, you know.

Yeah. Yeah, well, hey, that's— yeah, that's no problem at all.

All the stuff, all the materials and stuff I have here in the U-Haul.

So yeah, no, that makes sense.

Yeah, so yeah, that's like I said, it's just, just hiring help and, and, and, and getting it done, you know. But like I said, we've been working every day to get rid of all the tools my husband had. I've got rid of a truck, a Mercedes. These were all old cars that are like projects he was doing.

Yeah.

I got a bum, got rid of a fifth wheel. So I mean, I've been busy. I've been busy. I wanted to make sure that at least half the stuff was gone before I called somebody, you know what I mean?

Well, that totally makes sense. And look, is what I want to tell you is, look, we're a team now. And if at the end of this— if at the end of this transaction you aren't absolutely thrilled with working with me, what does that mean? That means you're not going to write me a great review, and that means I'm never going to get promoted. So It's my job to make sure that you have an amazing experience and that anybody else you know, whoever wants to sell your house, that you're going to say, hey, you got to call Tyson. He took care of me and he'll take care of you.

I do know a lot of people too. Perfect. A lot. Okay, so cool. So, okay, so now I just hit finish and send it. Yeah. Yeah, that was the main two worries I had was just what would happen if I decided not to, you know, and, you know, like because of some extenuating circumstances, but I think the main reason would be just if I need more time, you know. Of course.

Well, I'm telling you right now, we're going to work with you on that. That's— that— look, that's one of the benefits. One of the things I told you is that, um, you know, or I don't know if I did mention this, but one thing that people love about working with us is that we're gonna work with you on the close date, right? This isn't like when you sell your house on the market, they're like, hey, this day you're out, right? If you need some extra time, or alternatively, if you say, hey Tyson, I'm ready to get paid, I'm ready to move, can we move this up? I'm going to say, all right, let's get it done.

Right. Okay, got it. Okay, so I just hit finish and send it to you.

Perfect. So what's going to happen next is a member from my team is going to give you a call. Um, is what he's going to do is just make sure that you've got all the paperwork you need, you've got copies, and he's going to set up a time when we can go ahead and get somebody in to get just preliminary pictures. And then he's going to be your main point of contact for the rest of the transaction. He's just going to make sure that you're getting weekly updates, that you see, okay, everything's moving along, right? Most— more often than not, it's just a call. Hey, Brenda, nothing to report. We're still buying the house. How's everything going? But we just want to make sure that you're fully informed and you know what's going on in the transaction.

Okay? Okay.

Perfect. So be on the lookout for a call from him today. It'll be another 480 number.

Okay. Okay. Okay. From Arizona.

Yep.

Okay, gotcha. All right, with you. Thank you very much for your time.

Been so nice to speak with you too, Brenda. I can't wait to get this done for you, and you're gonna write that review for me at the end, right?

Yes, I am.

All right. Okay, Brenda, well, we'll talk to you soon, okay?

Okay, have a good day.

You too. Bye-bye now. All right, first lead. First lead we get.

What a masterclass in like, in like absolute confidence and, and like knowing your domain, right? Like they say it takes 10,000 hours for mastery. And like, that's an exact reason why everybody listening needs to learn from somebody who's so good at what they do. Like there was not, like there was not a single hiccup in that entire thing. The checkbox thing, I immediately would have been like, oh, I fucked something up in the contract. And like immediately like, blah, blah, blah. You were just like, Yep. So now I just need you to scroll to the top and click the formatting thing on your phone. Like, you know, like you've had so many iterations that you've been through these things that that just blew me away. Just how calm and collected you were.

Here's what I'm going to tell you. I remember this wasn't my first deal, but it was, it was, it was when I just started going nationwide and I'm doing a contract over the phone and I had a guy get so frustrated he hung up the phone. And I couldn't get him on the phone. Now, this is a, this is a deal out in Eureka, California. And spoiler alert, I ended up wholesaling this deal for $115,000. Now I'm on the phone with him, and at this current time we're talking, it was going to be a $200,000 assignment fee. And I knew this. And so we're going through the contract and this guy's getting frustrated. I'm doing everything in my power to calm him down, get him through it, whatever. He gets so furious, he hangs up the phone. I can't get a hold of him again for another 6 months. 6 months later, get him on the phone. The exact same thing happens on DocuSign. Can't get him through. We increase our price, everything. We did everything we could. Same thing happens. He couldn't figure out DocuSign. He got so frustrated, just hung up the phone. Couldn't get a hold of him again for another 6 months. 6 months later, we get him on the phone. I send a notary to his house right then and there. They go get it signed in person. Done, whatever. We end up making $115 grand on it. Wow. But after that first time, I realized that the reason I didn't get that deal right then and there was because I was not good at walking somebody through the contract.

Right.

I said, I need to know my contract frontwards and backwards. And I sat there and I went through every single little section. I said, how can I explain this to somebody like they're in 5th grade and they're going to understand it, right? And I've practiced that. Now, for everybody who is interested, I give away my exact document that I use for free. Go to any of my social media pages, you'll be able to find it. And when you go to get that contract, you're going to be sent to a video that shows you me going through the contract, exactly my process for this, what I say on each part, how I explain it. I explain it to you and then I explain it. Okay, now that you understand what this is, you need to be able to explain it to the seller. Right.

And even, even to like, you took a complex part of the contract. You have a pre, like, set, like, I've got a metaphor for this just so that, because they're gonna get tripped up in the language of it and you don't wanna mislead anybody. So you just like this meteor hits the living room. Like you can tell it's, it's, it's a metaphor you used so many times before, but it's the perfect timing for it. And then even at the end where she's like, oh, that's referencing section, whatever, whatever. Oh, that's the meteor thing you were talking about.

And just like, Yep.

Like you probably just cut out 40 minutes of explaining contract and legalese to this person just by knowing it inside and out and like being able to, to pre-handle these things by, by being able to simplify it and explain it in that way.

Well, look, if anybody— I know that somebody has never wholesaled before unless they've had an experience where they're on the phone with somebody for like 3 hours explaining a contract. Now that took 20 minutes. So that's pretty standard of what it's going to do. If you go through everything, you will get people who just get the paperwork and they just start signing it. And that's always wonderful. But you definitely need to know how to walk somebody through all of this, what to say. What do they say when they say, what is assignability and novation? What do they say when it says, why does it say buyer's marketing of contract interest? Right now, she didn't ask any of these questions, she just ended up signing. But these are all things that I know how to handle, and it's just no problem, right? But, and I also want to say, this is from years of experience. These are literally the the result of hundreds, hundreds of contracts that I've walked people through and got signed.