Live Wholesaling Real Estate Call (Closed Deal)

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Hello?

Hello, Eugene?

Hello? Yes?

Hey Eugene, this is Tyson. Uh, it looks like you filled out some information on my website about selling a property here in Janesville.

Yes, I did. Thank you very much.

Yeah, absolutely. Did I catch you at a bad time?

No, no, I just was outside and I just walked in the house and heard the phone ringing.

Oh, excellent. Well, so I'd be interested to make you an offer for the property. I've done a little bit of initial research and I just need to ask you a few more questions and then we'll be able to get you an offer.

Okay, thank you very much. I appreciate it.

Yeah, absolutely. So can you kind of catch me up to speed here? What's got you thinking about selling?

Okay, what house? I couldn't quite hear what you said.

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

Why am I selling it?

Yes, sir.

Okay, well, I broke my neck and my back a few years ago. I was a boxing coach and the whole thing just fell apart. I just lost so much money on it trying to get this all going. I'm just done. I got— for medical reasons mainly, I need to move into town in case I fall again, I can get somebody to get help. I was told I'd never walk again and I'm walking, you know, and I fell Took me about a half a day just to get to the door.

Oh man, I'm sorry to hear that.

Yeah, no, that's all right. It's just the way it works, you know? And I got another house in town that's all paid for. I got a renter in there. They gotta get out in March, and then I wanna move in there after March.

All right, so you already know where you're gonna move to?

Yes, I got another house.

All right, and you said that the renter in that house is leaving in March?

Yeah, March 30th they gotta be out. They gave them the eviction— well, the property management gave them the eviction notice, and they're supposed to be out at the end of March.

The end of March, okay. So, um, in an ideal world, would you like to have this property sold like the same day, and it's just like, okay, boom, you can move out and then move into there?

Um, no, I'd like to take April to move out. I got— I've been here 20 years. I've got a lot of stuff to move, you know what I mean? Okay. So I'd like to sell it like in April, or before if you guys can hold and let me move until April. You get email to me?

Yeah.

So whatever you think's best.

Gotcha. One thing people love about working with us, Eugene, is that we actually let people pick their own move date. So you just have to tell us what day you want to move. On that day, we'll call.

April 30th.

April. Okay, done. We can make that work.

Okay, thank you very much.

Yeah, absolutely. Um, okay, so let's— what's that?

Oh no, I'm good. Yeah, I just said thank you very much.

Oh yeah, so, uh, let's chat about the house. I can see from tax records it's saying it's a 2-bedroom, 2-bath, about 1,000— or yeah, about 1,000 square feet. Is that correct?

Yes, and then I added, uh, 2 porches, one on the front and one on the back. Where the lady has— were those porches already? She never finished.

Eugene, were those porches permitted with the city?

Uh, from what I understand, yes. Okay, because when I moved in, the seller told me that the lady had taken a permit out on the porch, but she never finished it, so I just finished it. It was already started. It was like halfway done.

Okay, gotcha.

And I had, and I had a professional come out and do it right, so it's all up to code. Everything is up to code.

Okay, good deal.

Yeah.

Do you know how big the lot is on the property?

3 acres. And I got a boxing ring on it, and I got a What you call a she shed, or— it was a little house I built for the boxers to stay in. It has an upstairs and a downstairs outside. Okay. Cost me $10,000, so I don't know really what it's worth now, but it's really nice. It's a nice little building.

Yeah. Well, do you have an idea of what you're looking to sell the property for?

I don't. Whatever you offer, as long as it gets paid off and then go on my own way. I'm not looking to get my money back. I know better than that. You know, $20,000, if I can get that, that'd be cool because I get a car, basically.

Okay. How much, uh, how much do you owe on the property?

$125,000. And it was appraised at $248,000. Okay.

You said it appraised for $248,000?

Yes, I bought it for $179,000, I think it was when I bought it, and it's gone up since then. And I've added so much stuff to the property and things. Yeah. Okay.

So, you know, if we were able to purchase the property for you, allow you to pick your move-out date, and we also covered all the closing costs, you know, what, like, what's the lowest price you would take for it?

See, $125,000 plus $20,000, so $145,000.

Is that too much? I'm not sure yet. I'm not the one who comes up with the offers. I just take this information over to the underwriter, and then they'll let me know how much we can offer you for it.

I'm sure they'll get a counter. There's no doubt. That's how it works, you know. But I understand. Thank you very much.

Yeah, of course. Um, can you tell me about the parking situation? Is there a garage, carport, anything like that?

Nope. I got a shed out back, but there's no garage or carport. I come— driveway just comes right into the house. Okay. Right up to the house. Yeah. Okay.

Is the property on—

it's all fenced.

Oh, it's all fenced?

All fenced and gated. Got gates. It's got everything. It's— yeah, I sunk a lot of money into this place. I was trying to make this boxing thing work, but it just— coronavirus got the better of me.

Oh man, I'm really sorry to hear that. I know that it really impacted a lot of businesses.

Yeah, wiped me out. I was doing really well. We had a world champion, uh, he was third in the world and had a new one coming up and, you know, just everything went to heck. Yeah?

How long have you been boxing for?

I was in the military, boxed in the military. Then I got this place and I built a ring out here to teach my kids and then I ended up meeting some professional boxers and they asked me to train them. And it just went from there. No kidding. So it's been about 10 years, 15 years we've been going here.

Wow. I'm really into working out and things like that, but I've never boxed before, but it's something I've been interested in.

If you're into cardio, it's really good. I mean, you really work your cardio in boxing.

Yeah, well, that's what I've heard. I mean, I'm like a bodybuilder.

Oh, there you go.

But I know, like, because I've got to do cardio and stuff for cutting, and a lot of people have told me, dude, you should really pick up boxing. It's like It's a really fun way to do cardio and it's like such a, you know, it teaches you a lot about like discipline and you learn a lot about yourself when you're boxing.

Yes, you do. It's like a chess match. It's not like MMA where you just ground and pound it. You got to box as such. You got to think your next move. You got to think 2 moves ahead when you're boxing.

Yeah.

Interesting. But it's good. I love it. I mean, everybody come here was good. It just, uh, they stopped all the fights on the West Coast pretty much. You had to go to Denver or farther east to find fights. I couldn't afford it. It was just too much.

Oh man, that's, that's a shame.

Well, that's how life goes. Yeah, I'm 62 now, you know. I'm done. I'm gonna go move in the other house and go fishing for the rest of my life.

All right, good deal. Well, I like to hear that. Let me, um, let's see what I can do. Let me help you get there.

I thank you very much.

How many—

I appreciate any help.

Yeah. Hey, man, you know, that's what we're here for.

Thank you. How many what?

I was gonna ask, is the property on city sewer? Or does it have a septic tank?

It's got a septic. It's got a brand new— I just replaced the well last year. Got excellent water here. Again, 300 feet down and hit underground river. You can run water running all day long and never run out.

Wait, I'm sorry, could you repeat that for me?

It's from a well, it's 300 feet deep, and they said it must have hit a spring or a river down there because I can run the water 24 hours a day and never run out, and it's the best, clearest water you ever drink in your life. I even thought about making— starting a water business, selling water.

Okay, wait, so I'm sorry, I, I didn't get that, but is it on a septic or city sewer?

A septic.

That's right, that's right.

Okay, all the houses are on your septic out here.

Okay, that makes sense. Okay, and then as far as the inside of the property goes, would you say that the condition of it is brand new, good, fair, or scary?

I'd say it's good.

Okay, is there any, like, if you were me, like, would you, like, let me put it to you this way, um, on a scale of 1 to 10, 1 being we need to tear it down completely and 10 meaning fresh off one of those HGTV home flipping shows, what would you rate the property?

6. Okay. Because I've been here by myself with kids for 20 years, just me and 6 kids. Raised them all in this house. It's a good house. Well, like I said to the other guy, the only thing that needs to be replaced is the living room carpet. I took out the carpet, put tile down. Tile didn't work, so I took the tile out, and I was going to put that industrial carpet in, that real thin stuff. Yeah, there's a sand here. Sand gets in your shoes, on everything. Just out in the desert. But the house is a 6, I would say. Yeah. And every— like I said, the both bathrooms in the house, I remodeled them. I put a brand new bathtub. They had those old fake plastic bathtubs.

Yeah.

And the bottoms cracked. So the one, I put a brand new steel bathtub. It was deep enough. I'm 6'3" and I can actually get in it and soak in the water. The other bathroom, I did the same thing. So I replaced it with a new shower, brand new shower. Had the floors done, the walls, everything's been redone. I put a lot of money into this house, and then the, the guy said it doesn't count because it's a modular.

Because it's a what?

A modular. Because it's a modular, all the repairs you put in don't kind of add up to anything. But the house is in— I think it's in really good shape, to be honest with you.

It's, it's, uh, good shape. Like it's a manufactured home? Tax records are showing me it's a single-family residential.

It is, but it's not a trailer. It's a modular home on foundation with a metal roof.

Gotcha. Okay. And it's built in 1989, correct?

Yeah, I thought it was '86, but '89 sounds better. All right. I don't know. You know, I don't remember. It's been so long.

The important thing is that it's after 1976 because, um, Right, the modular homes built before that won't qualify for bank financing. So that really impacts—

Yeah, I tried to buy an extra one just a few miles down the road from here. The land is what I was after, but it was built in '76 and had the aluminum wiring. So they said it wasn't legal or something like that.

Okay, gotcha. So, um, You know, I really appreciate you sharing all this information with me, Eugene. Assuming that, you know, you like our offer and you're ready to move forward, is there anything else you would need to figure out?

Nope, that's it. I'm already working on it. I've already started packing and everything else is all taken care of.

All right. Is there anybody that would be upset that you did not, you know, kind of speak with them first? Before you made the decision?

No, I, I, I, nobody. My kids are all gone. My wife passed away a few years ago. I'm here by myself. I make this, make the choices.

All right.

Uh, yeah, I appreciate y'all helping me very much.

Hey, absolutely. You know, that's what I want to do. So just to make sure I have everything clear here, uh, we're looking to get hopefully $145,000 for the property. That gives you, it walks you away with $20,000 if they're all said and done. Where we cover all the fees, and then you'd like to move April 31st?

Yes, please. Perfect. That's it. Yeah.

Okay. Awesome. Well, Eugene, I think that's all the information I need right now. Real quick, before I go get a price from the underwriter, I just want to make sure, as long as the number makes sense, is this something you'd be willing to move forward with today?

Oh, yes. Exactly. Yeah. I'm sure you guys can find all the information. It seems— sounds like you have all the information on the place already.

So yeah, we like to know more than I do. We like to be thorough. All right, um, well, I'll tell you what, Eugene, I'm going to take this information over to them. Will you be available in about 10 minutes for me to call you back?

I'm going to be here all day. Thank you very much.

All right, perfect. Well, um, I'll talk to you in about 10 minutes here. Let me go— let me go get to work for you.

Okay, thank you.

All right, thank you, Eugene.

Bye-bye.

Hello? Hello, Eugene?

Yes.

Hey, uh, Eugene, it's Tyson. Um, yes, do you still have a moment? We can kind of go over this offer.

Sure, not a problem at all.

All right, so very much. Yeah, hey, thank you. Um, I have some good news and some bad news for you.

Oh, I'm sure.

So, uh, the bad news is that when my underwriters took a look at the property, they said that the most we can pay for it is $118,000.

Okay, well, that won't even pay off what's owed on it.

Yeah. So are you ready for the good news?

Yeah, yeah, there's some good news.

There is. So, um, your property qualified for another option we have called the Home Equity Protection Plan. Now, what this is, is basically we have some other options crafted for people like you. And with our Home Equity Protection Plan, we could actually get you $149,000 for the property.

Okay, and how does that work?

So we make it our business to know every cash buyer in California. You know, we have relationships with every hedge fund, we have national buyers, we have local buyers. We also need the ability to list your house on the MLS to capture retail buyers at no expense to you. So this is no commissions, it's no closing costs, no fees, no repair costs. We're going to get you $149,000, but we're not the buyer.

Gotcha. I, yeah, I don't care who buys it as long as it gets sold.

Well, I'm telling you, I can go get you $149,000 for it.

Okay, thank you. I'll take it. All right, thank you very, very much from the bottom of my heart, man.

Oh, hey, look, let's get this done for you. Um, is what we need to do now I'm on my phone, that's all I got.

My computer blew up. Um, oh shoot, how else would— I can take it in and get it fixed today and then have it back tomorrow.

No, if you have, uh, if you have a, uh, if you have your email on your phone, that's fine.

Yes, yeah, I do.

Okay, perfect. So is what I'm gonna do real quick, let me fill out this agreement for you. Uh, I'm, I'm already getting it prepared right now. And it's going to say, hey, we're going to go get you $149,000 for the property. Uh, I'm going to email you the agreement, and then you and I'll go by it, go through it line by line, make sure we're on the same page.

Okay.

Um, but right now, let me just finish typing it up. Is it all right if I put you on hold? Sure, not a problem at all.

All right, I'll be right back in a couple of minutes. Thank you very much.

Alright, new fitness loungewear brand looking to send some upcoming spring drop, Arizona-based. Yeah, hit me up. Okay, let's send this guy an offer. Hello, Eugene?

Yes.

Hey, are you still there?

Yes, I am.

Alright, were you— did you get that email?

Yeah, I'm trying to open it right now.

Alright.

Okay. Let's see, where am I? This is— please review, act on these documents.

Yep.

Okay.

All right, let me know when you've got it pulled up. Um, you're on your phone, so once you do get it pulled up, let me know because I'm gonna have you move something so you can see it better.

Okay, um, after— now I'm reading the first thing, it says you are viewing a mobile Okay, I'm there.

All right, so at the top left, do you see a little thing where it says like, you are now viewing in mobile-friendly version or something like that?

Does it say user cookies? Friendly? Yes.

All right, I would have you switch that off. It's gonna make it so you can actually see it, like the entire paper.

Okay, does that look better for you? I can see the whole thing now.

Yeah, okay. So, um, the first set that we have here is— it's basically a purchase contract. So this is what, like, we're saying that, you know, we can guarantee for you. So it's saying, hey, this is the property that's being sold. That's the first thing in the property address, right? And then as you'll see, there's $1.4 million earnest money deposit. That's $100, so that's just us sending that to the title company to get escrow opened up. And then below that, the most important part of the whole document are these two parts that say, one, purchase price $149,000. That's the price we're guaranteeing you. And the close of escrow, which is April 31st. And that's the day that—

Yes, thanks.

All right. That all look good?

Yeah, it looks perfect. Thank you very much.

Yep. And then after that, we got the escrow agent. So this is the title company that we use. They handle all of our transactions. They do super good work. So they're the person that's going to come through, make sure you're able to sell the house. They're the ones who are going to talk with the lien holder, so wherever the mortgage is held, and they'll coordinate getting that paid off. And they take out all the work out of the whole thing.

Okay, gotcha. Sounds good.

All right, so then you can see seller, we got you right there. Buyer, we have my company, We Buy Homes Cash.

Gotcha.

Then there's the inspection period. So I'll get to the inspection period once we get down to that part of the agreement. Then we have closing amounts to be paid as followed. Notice that it's 100% by buyer. So 100% by buyer, standard title policy buyer, HOA fees buyer.

Okay, sounds perfect.

All right. Is there anything on that page that doesn't make sense to you?

No, I didn't say anything. It was perfect. Thank you very much. I appreciate it.

Hey, absolutely. So what I want you to do is tap the little yellow box in the bottom left that says like initial.

Gotcha, did it.

All right, now let's scroll down to the next page. So on the next page, you're going to see two big white empty boxes. Do you see that?

Not yet. Oh yes, okay, gotcha, gotcha. All right, so just look at the bar below.

Yep. So the first empty box is it saying the personal property to be included in the sale includes all items that are attached to the property. So we haven't put anything in here because you are free to take anything you'd like. Anything that's not nailed to the ground, you can take, right? We're just looking to buy the building.

Thank you very much.

Um, and anything else included in that is anything you want to leave, you're more than welcome to just leave it there. We will handle all of it. So just take the stuff you want and you can leave everything else.

Okay, thank you. Way too cool.

All right, yep. So the next thing is the additional terms and conditions. You'll notice that this is also blank. This is where we could come in and add some things if we needed to, but this deal should be pretty cut and dry, so we don't need to add anything in here.

Okay.

The next part says the purchase and sale of the property. So this is saying, hey, we're buying it— or not we are, but the buyer is going to buy it. The You're wanting to sell it for the purchase price that we have on here, which again, $149,000.

Thank you very much.

The next part, status of title. This is just instructions for the title company. This is saying that the title company is going to give us title insurance.

Okay.

The next is inspection of and access of the property. This is saying that you're going to need to give us reasonable access to the property in order to do inspections and to get our buyers in. So what this means is we'll work with you on your schedule. It's not like I'm just going to call you and say, "Hey Eugene, I need you to let somebody in at this time." We'll work with you and figure out some times that work and stuff. In addition to that, it says that during our inspection period, for whatever reason, let's say that we send some people over there and they say, "Hey Tyson, this house is blown to bits. It's barely hanging on." Then, you know, right. Um, so the next paragraph is the instruction to release the deposit upon cancellation. That's saying if we did have to cancel, that, uh, we would get that earnest money deposit back, that $100. Doctor, is everything on that page? What's that?

Everything's good. All right, so you're gonna hit the little yellow box? Yep. Okay, okay, it went down.

Yep, we scroll down to the next page. Now you'll see at the top it's going to say lead-based paint disclosure.

Yeah, I don't know about what the paints are in here. I don't think I use lead-based.

It doesn't even matter because if you see the very last sentence in the paragraph, it says that the buyer waives the 10-day opportunity to conduct a lead-based paint inspection.

So don't need to even worry about it. Okay, do I hit the next yellow box?

Yep.

I thank you very much, man. There we go, went down again.

All right, well, here, if you want to scroll back up, um, I can come through the rest of this with you.

Okay, yes.

All right, so we have as-is purchase. So it's saying, hey, we're buying the property as it is, so you don't need to do any repairs to it, you don't need to clean it out, anything like that. But that also means, Eugene, that I don't want you taking a sledgehammer to the kitchen Right?

I got you, boss. Believe me, that won't happen. All right. I'm too old for that kind of stupid shit. Good.

All right, next we got the escrow, close of escrow, closing costs and prorations. And this is just saying that everybody who's going to pay the closing cost is as defined in the contract above. As you can see above, we had put 100% by buyer on all of that.

Okay, thank you very much.

Yep. So next is the cure notice. And this is just saying, you know, if any one of us were to breach contract for some reason, what would happen? In that event. And it's basically saying that, you know, if we had to go to court, that whoever wins is gonna have to pay the other one's attorney's fees, right? Now, of course, I understand, you know, don't have any problems for me, boss. Yeah, good deal. Uh, so next, no oral changes or representations. This is just saying that this is the entire contract. Everything in here is what we're agreeing upon. Does that make sense?

Yes.

All right, next is notices. This is just saying that, um, for for any purposes of communicating about this transaction, that we can do it via electronic mail or anything like that, you know.

Yeah.

Next is the addendum acknowledgements and additional terms and conditions. So this is where we're saying that if we need to make any changes to the agreement for whatever reason, we would just send you an addendum. You and I would both need to sign it in order to make any changes. But we don't have any of that right now. But let's say that, Eugene, that, you know, you call me and you say, hey, can I actually close in like a week later? Then we could say, oh yeah, sure, that's no problem, you know. And then we just send you an addendum and change it like that. Does that make sense?

Yes, sir. I understand.

All right. Next is the assignment. So this is saying that we can assign this contract to another person. So that's what I mean when I say we're not the buyer. You know, we're going to end up You're having somebody else buy it?

Yes, I understand.

All right, so everything— did you already sign this page or initial it?

I believe I got the yellow box here. All right, good deal.

All right, you want to scroll down to page 4 now?

Okay, I'm on page— yep, I'm 4 now.

All right, so at the very top it says buyer's marketing of the contract interest. So this is saying that, hey, we're going to market the product, the property for you. Like I said, we've got buyers and we're going to say, hey, look, we got this property for $149,000. Would you be interested in buying it? You know, things of that nature.

Okay, I got you.

Next, time is of the essence. This is saying that, hey, all the times in this contract are not just fairytale times. These are the times that we're actually talking about, meaning the close date and things of that nature. We got the choice of law. This is saying that this contract will be governed in California. There's the memorandum of contract, which is saying that we can execute a memorandum, which is basically where we put a notice to the county recorder's office that we're buying the property. Like I said, we just do everything above board. Next, electronic execution and counterparts. This is what it's allowing us to do this over DocuSign. It's saying, hey, even though we're using electronic software, it's just the same as if I was sitting across from you and we were both to sign on a regular piece of paper.

Gotcha.

And then last part here is the buyer's disclosures and voluntary agreement. This is where we're agreeing, you're saying, hey, look, I understand that one or more members of our company is a real estate agent, that we are wholesale buyers who, you know, we are an investor and we're planning to assign the contract to somebody else, things of that nature, right?

Yes.

All right, so that's the last thing for the first part. So as you can see, I've already had my boss there sign on the right. So you just need to click and you'll get your signature and then also initial on the bottom.

Okay, I'm not sure, man. I hit the one here. I'm on page 4, 3 or 4. Okay, so did I— okay, here's last one. Did I get it?

I'm not sure yet, but we'll be able to go through it at the end. We'll make sure that you got them all. But if you want to scroll down now, you're going to see another page. It's going to say "We Buy Homes Cash" really big at the top.

Yes, I'm right there now. Now we're even. Okay. All right, perfect.

So this agreement instructs the title company what to do if we end up selling the property to someone that is buying using a loan. So a third-party buyer can pay with cash or by using a loan. Either way, it won't affect our deal and you'll get every penny you were promised. The only thing that's going to come out on your end is the mortgage, the taxes, or any other liens that might be against the property, right?

Gotcha. Totally understand.

All right. So just go ahead and hit the— let's see, at the bottom. Let's see, which one is it?

Where's the, uh, it's finished. It's all swept.

Okay, perfect.

It finished.

Yep.

Okay, there it goes. All right, thank you very much.

Hey, I thank you, Eugene. All right, yep, we got it. I just got it back. It looks like we filled it all out perfectly. So, uh, Eugene, the next steps are going to be my, my transaction coordinator. Her name is Valentina. She's going to give you a call in probably the next like 30 minutes or so, and she's going to walk you through everything that's going to happen next. And right now, as we speak right now, we're already mobilizing on getting this property sold for you so you can move out April 31st.

Thank you very much.

Absolutely. Thank you, Eugene. Um, so like I said, hey, absolutely. Uh, so Valentin is going to be giving you a call within the next like 30 minutes or so, okay?

Okay, thank you very much, man. I appreciate your help.

All right, thank you, Eugene. We'll be in touch.

Thank you. Bye-bye.