What Wholesaling Luxury Real Estate ACTUALLY Looks Like

What's going on, everybody? Tyson Smith here. Matthew and I are sitting down doing the actual stuff that you don't really see in this business, which is—

Reach Joseph Sloski.

Sorry, I missed your call. Telephone number.

This is the reality of wholesaling.

It is. It is.

Rubber's gonna meet the road where we're gonna talk to some sellers and get some deals under contract. Maybe from the stuff you see on social media, you think that luxury real estate is all touring multimillion-dollar houses and picking out cabinets. And as much as I wish that were— actually, I take that back. I don't wish it was that way. I don't want my life to be fucking selling Sunset. You know, I'm not over here walking around in high heels and a pencil skirt, right? What we're doing right now is the actual fun part of the business, at least for me, where I get to channel my inner Jordan Belfort, call some people and close some deals. So what we're looking at right now is, like I said, it's our bread and butter, you know? We have a developer who called us, they have an end user, basically somebody who wants to build a really big, nice custom home. And this is really cool for us because those people pay a lot more. So what we're gonna do, or what we have been doing, is pulling some lists of properties that meet that criteria. Then we feed it through our Sniper Marketing System, which if you're not familiar with that, you need to go ahead and click the link below, sign up for the free training we're doing this week. Where we'll go in depth of really our entire business, but also how we actually get in front of these leads. And anyway, we pulled a list of that criteria, we filtered it through our system, we've already got people who have raised their hands saying, "Hey, I'm interested in possibly selling my house." And all these properties, they're all in really nice areas, but they were built 30, 40, 50 years ago. So it's in the best area, but it's not exactly the place where, you know, Scrooge McDuck wants to live. So Scrooge McDuck is gonna pay a developer to build his big nice house. The problem is the developer's got a million things going on. You know, he's got other projects, he's raising capital, he got subcontractors they're dealing with, they're talking to engineers, they're doing all these different things. And that's where they rely on people like Matthew and I to go ahead and find them the deals. So that's what we're gonna be doing live, uncut today. So if you wanna see exactly what these conversations with these homeowners look like, exactly how we're able to talk to them on the phone and negotiate these multi-million dollar real estate deals, you came to the right place. And what you're gonna find is it's really not that hard. And if you have a cell phone, you're able to talk on it, then you too could be doing these deals and closing these 6-figure checks.

So a common misconception that so many people have is that these developers that we're working with that are building these luxury homes from $3, $4, $5 all the way up to $30 million plus, people think that, oh, we need to go be able to find them a lot. Or we need to be able to go find them a piece of dirt that's vacant that they can build on. That's all changing right now. Why is that changing? The reason is because people that are spending these $5 to $30 million on a home, they wanna be in a prime area. The problem developers are running into is that there's no more lots or land available in these areas, so their only choice is to go into those prime locations where these luxury homeowners want to live and tear down old properties that were built back in the— all the way back to the '20s and '30s. And I mean, we're tearing down properties now that were built in the '80s and '90s. And the reason for that is they, they want to be in the best location. They're already developed from years and years ago. And in order to get a large property and to build a luxury home on it and to be in a prestigious location, your only choice now is to tear down an older house. Location is everything in real estate. Location, location, location. Always remember that.

After we run our sniper marketing approach, right, people who raise their hand, they're immediately put into our CRM. And within our CRM, you know, we have different AI agents that are following up with these people, seeing, you know, who's motivated, who all of a sudden they're not interested, showing us who the top leads are. And it's really nice because I can pull up a, you know, every single lead, I have a kind of a hot sheet of everything I need to know. Like, hey, what happened during the last touch with them, the last conversation, what did that look like? What is their motivation? So for instance, immediately AI has identified that this seller, her husband died 3 years ago. So I know that before I even call her. And I don't know if that's my assistant or the AI who called, it could have been anybody, but it doesn't really matter to me. I know the best time to call based on— because I've got AI that's trying to call them at different times, right, to see what time this person will answer. Now, there hasn't been, you know, for this particularly, there was no pattern found. But the big thing is that this person's kind of flip-flopped. Like, sometimes, you know, the first time we spoke with them, apparently they were like, yeah, I want to sell. But now they're kind of like, I don't, you know, I don't really know. So I don't really know until I call them.

Hello?

Hello, Sarah?

Yes.

Hey Sarah, this is Tyson Smith. I'm a manager at Scotty Jane Homes. It looks like you had spoke with my assistant about possibly selling a property on Biona Drive.

No, I'm not interested. Thank you.

Okay. You ended up changing your mind on that?

No, I mean, I need more money than I'm going to get. I mean, basically I would want $1.9 or $2 million to move, and I know my property's not worth that. But just, you know, I'd have to go find another house and pack up and move. So I know I've been getting calls nonstop, like Texas, like I get at least 2 a day of people wanting to buy my house.

Yeah, I believe that.

I know you guys want to lowball me in the $1.3, $1.4. And you know, that's not enough to make me leave my house.

I hear you. Well, what I can promise you is I will not lowball you. One thing about our company is we only make, you know, if I can't give you a fair market value offer, then I won't make an offer at all. So you said that you need at least $2 million to leave the property?

$1.9 to $2 million, yeah. Because I need to hire a company to pack me up and I need to go find another house.

Okay.

I mean, it doesn't make sense because I know what the costs are in this neighborhood are.

Okay, yeah, that's fair enough. Do you know, do you know what new build properties are selling for in the neighborhood?

Yeah, they're selling for about $4.5 million. $4.5 million is fine, you know, like, and they're probably on a little better, better block, you know, and they're, you know, they're, they're 4 to 5 bedrooms, you know, and I'm sure that they've got pools. You know, I can look on Zillow or for, you know, and they're going up all over the neighborhood and they're at least $3.5 to $5 million range. I mean, am I ballparking it right?

Yeah, yeah, I mean, that's kind of what I'm seeing on my end. Let me ask you a question, 'cause I really, I don't wanna waste your time if I don't think I can help. But if we could get you an offer where we're paying all the closing costs, there's no commissions, there's no fees, we're buying the property as is, so you don't have to worry about any kind of disclosures or making any repairs or anything like that. What's the number net to you that gets you taking—

109.

Okay, gotcha.

I've been there. I've been in escrow on my house.

Okay.

And the builder promised me exactly the same thing. And then they basically were playing games at closing.

Oh, really?

I know the drill.

Okay, all right, I hear you. Well, Sarah, I appreciate that. Listen, what I'm going to do is I'm going to take a deeper look If I can't get to that 1-9 number, then I'll just text you and I'll let you know. But if I can or I think there's something where, you know, we can make that happen, I'll give you a call back, okay?

Okay, thank you.

All right.

Bye.

Thank you, Sarah. Bye-bye. So some quick math. Now, this doesn't work everywhere, but this is just kind of how I ballpark it, is when I'm talking to somebody, and also I just took her word for granted, I didn't even look and see what new builds are. But basically, quick math is we know that we're gonna be able to sell a property somewhere around 1/3 of whatever it'll sell for if it had been torn down and a new property was built on it. So let's say that $4.5 million was the number, right? I immediately just put $4.5 million in my calculator times 33%, that's $1.5 million. So that's why I'm asking her, you know, hey, is $1.9, is that like the number you want or is that what you need to net? Now she's obviously, she knows off the bat, right? Hey, I want too much. The market's not there for it. And honestly, that's kind of a nice part about luxuries. You'll get people who understand that. They're like, yeah, I know the number I want is too much. It's crazy. Where in normal wholesaling, people are just delusional and they're like, no, I don't care. I think my property's worth $300,000. Yeah, all the other comps sell for $200,000. I'm immediately just going for sale. I've got $2 million here, which I don't really need, but then I'm just looking for properties that were built in the last couple years. We can see we have some good stuff. So her property is like right here. So the closest one is 4.2. Really nice looking house. So it is a new build. It's on like the same kind of lot that she is. Now, this is really interesting because in California, the lot sizes are so small. This is a 5,000 square foot lot, which, you know, like in Paradise Valley, that would be nothing. But we can go ahead and look, and, you know, she is right. So there's one 4.2, um, so the exit price would need to be like $6 million for this to make sense. And if we look around, we're just not seeing anywhere close to that. You know, the highest one is this 5.8, um, it's on a slightly larger lot. I mean, even though it's 2,500 square feet, that's actually 50% larger, um, and it's probably a better situated lot. As you can see, you know, over here which can be different than over here. But just to take a look, let's just scroll down and see if we can see what this developer had actually purchased for the property. Okay, look at that. So this property is listed for sale for $5.8 million, and they actually bought the lot for $2 million. So does that mean that I should immediately call this developer and see if they'll buy another one? Yes. However, I know that this one still isn't going to work because, like I said, This lot is 7,500 square feet, where our lot, let me just double check real quick.

6,100.

Oh, 6,100. So it's not that far off. Interesting. So yeah, I guess, look, let's just go ahead and let's call this developer and see if they're interested in it anymore. Do you wanna go ahead and see if you know any developers there that we can get a price on that?

Yeah, 100%. I definitely have some people there I can call. And then on top of that, I mean, there's a decent amount of comps. Of developers that we can call as well. So let's get on it. All right, so initially what I do when I'm looking for, hey, what devel— if I don't have any developers in a certain area, I can immediately go look on Zillow and I can go find comps that are around that area. So right now what I'm doing is I'm pulling up the view on Zillow just to see what other properties are around there. And I'm looking for specifically new builds. What are developers doing in the area? What are they paying? These are people that are gonna be my buyers when I go to start making calls to try to get this deal sold before we even have it under contract. A lot of you probably think you have to have a property under contract before you can go and sell that deal. That's just not the case. I would say 50% of my deals or more, I'm pre-selling before I even get 'em under contract.

Why?

'Cause I wanna make sure I get that contract sold and I want to make sure I get it at a price that I can sell it to a developer at. So I'll go to developers and say, "Hey, where would you need to be for this?" Take this property for example. Maybe a developer says they'll pay $185,000. Then our job is to go to the seller. She was at $1.9, maybe we can get her down to $1.8 and make a small little $50,000 assignment fee. You never know. So we always like to start with the developer finding out what they're going to pay and then back-end it from there. Right up the street, there's one right here that sold for $4.3 million, a new build. Um, let's see what they paid for it. All right, so they paid $1.55 in 2023. So with some appreciation, I mean, we still might be a little bit off, but again, sometimes developers will even overpay for something a little bit. Maybe they have an end user. Maybe they are out of deals right now and they're willing to pay an extra $50,000, $75,000 for a deal. Because they need to keep their workers going, they need to make payroll. I mean, a lot of these developers we're talking to have 5, 6, 7, 8, up to 30 employees that work for them. They need deals to keep those people busy, and sometimes they're okay with shrinking their margin a little bit just to get a deal that their workers can start to get to work on. So we're going to call this developer specifically, um, and see if he's looking for more stuff in the area, and then we can go back to the seller and see if we can make something happen.

Hi, if you record your name and reason for calling, I'll see if this person is available.

Matthew, I have a property around the corner I think you guys are going to want to buy.

They said send more information. You can leave a message after the tone.

Hey, how's it going? My name is Matthew. I saw that you did a project over here on Corinth Avenue. That you sold for $4.3 million. First off, congratulations, it's a beautiful house. I have a property right around the corner from that, similar lot square footage. Just wanted to see if you guys are still in the market to buy more properties in that area. I think it's a great deal, and if you can give me a call back, that would be great, and we can discuss it. All right, so I'm going to call the agent next on this deal. I don't love to go to the agent first because first I want to go to the developer. But occasionally there's developers who want to work with their agents specifically, and they say, hey, just go through my agent. So the reason I sometimes go to agents is because they're incentivized to go sell that deal for me.

Why?

Because they're probably going to get the listing on the back end. So if I'm talking to an agent and I bring them an off-market opportunity that their developer is potentially looking for, after that project's built, whoever Whoever brought them the deal usually gets first right to list that house. So, if we're talking about a house that's, say, $4.5 million, and they're making a 3% commission on the backend, this agent has 135,000 reasons to bring that deal to that developer. And that all comes down to the relationship they have with that developer. And a lot of times, if it's a good agent that brings a deal to a developer, they're going to get that listing. So that makes them that much more incentivized to go sell that deal for us.

Good afternoon, company.

Hey, I was trying to get a hold of Steven Marin.

Oh, he no longer works here.

Oh, all right, never mind. Is maybe his business partner who was on this deal I believe it was—

Or Brodsky?

Yep.

Yeah, he's here. One moment.

Thank you so much. First guy was fired, so that's cool.

Hello?

Hey, is this Or?

Yes, who is this?

Hey, my name is Matthew. I saw that you sold a property over right on the— right in LA. It was Yana Properties is the one that bought the property?

Who?

Uh, it was Yana Properties.

Where's the address?

I don't know, what is it? What's the address? And what does it have to do with— what do you need?

Well, the reason I'm reaching out is I have an off-market property, um, in that area that's a teardown opportunity. Um, it's right around the corner from the one you sold off Corinth for $4.3 million. And I was wondering if the developer you worked with on that What was that? Which address? It's 3646 Corinth Avenue.

That's the one I sold or that's the one you have?

That's the one you sold for $4.3 million. Okay. So I have a property right around the corner from that that's off market right now. It's similar lot square footage and I was just calling to see if the developer you worked with on that one was looking for any more projects.

Oh yeah, of course.

Okay, so I have a property right around the corner from that one. I can give you the address if you're able to write that down.

Sure, give me one second, let me put it in. I'll put speaker. What's the address?

It's 11343 Drive, Los Angeles, 90066.

Oh, it seems like a corner.

Yeah, it's a corner lot. I believe the lot square footage is like 6,100 square feet, right around there.

Yeah, Corinto is much bigger, but I think 7,000 or something. 7,500.

Yeah, let me see exactly how much bigger. Looks like that one that you sold was 7,500, so it's about 1,300 square feet different.

Yeah, which is big difference.

Is that something you would— you just don't— you wouldn't build on a lot that's 6,100 square feet?

Yeah, it's just— it's also a corner, and I just wanted to drive it and see how quiet and prime. What's the price?

I don't have a price yet. I was kind of looking to see what it— what an offer would look like for it, but it'd be somewhere in the Mid-1s, mid-high 1s?

Yeah, mid, maybe high, no, but yeah, I just need to go see it. It's not— doesn't seem like great.

What about it?

I just need to see if everything across the street and the corner feels residential or there's like small apartment buildings and how private it is.

For sure. Yeah, yeah, yeah. I don't think it's, uh, I mean, from what I know, it's not very, uh, there's no apartments or anything, um, across the street. One of the benefits too is there's no power lines like you had on the other one.

It's all right. Yeah, I just have to go see it.

Yeah, I appreciate you trying to do real estate from the office, but it doesn't 100% work like that. Yeah, you have to go things on site and see it.

For sure. Yeah, yeah, yeah.

Yeah, what it looks like. But yeah, I mean, if he was in the mid to low ones, maybe the high ones. No, I don't think so. I don't think it's that type of property.

Okay. So is that something— are you going to be able to get me kind of a number of where you guys would need to be on it? We can go from there.

Well, if you're offering it, you know, you need to know what is it offer that, right? Like, don't— I mean, I mean, I wish, you know, I could just drive around and say how much I want to buy things, but it's not the way it works. You don't know what's the asking price, or you don't know— what are you trying to do, tie it up in escrow and flip it or assign it?

Yeah, yeah, I'm looking to just tie it up and then assign it.

Great. So did you make an offer? Like, what is it, are you counters, or what? Like, I'm presuming if you're calling people giving the address, it's already tied up.

It's not, no, that's—

you wouldn't call me unless you had it under contract.

You know what, that's what's different about me than everyone else. There's no point of me calling you and giving you a number on it if I know it's way higher. So I would rather you tell me a rough idea of what you guys would pay, and then I can go get it locked up.

I'll give you $1.3 million.

$1.3?

Yeah, $1.3, maybe a little more. Okay. Let me know if it's available around that number, okay?

Okay, yeah, we'll get back to you.

Thank you.

Thank you.

Thank you, bye-bye.

This is why agents are so bad.

Dude, so rad.

Zero motivation.

He literally called and the first thing he said is, "What do you want?" Yeah, I mean, it's so wild how these agents act.

I mean, Tyson and I have done this so many times where we call agents and say, "Hey, we have a property in this area, blah, blah, blah." The majority of the time, they don't want to give it the time of day. These people don't want to do deals. They want everything handed to them on a silver platter where, oh, listing agreement signed, I only want to deal with the luxury stuff. They don't want to get down into the weeds. And I can guarantee you, if I look up this guy's profile on homes.com, that agent, and see what kind of business he did, that I have done substantially more than he did last year, and he still won't even give me the time of day. So sometimes that's just what you get, and you can just move on and go to the next one.

Hi, you've reached Joseph.

Sorry, I missed your call. If you leave Name? Sorry, I missed your— Telephone number?

This is the reality of wholesaling.

It actually is. Being able to sit here and call even when people aren't answering is just actually difference between people who will make money and people who won't.

One of the best things about the luxury space is even though some of these people won't answer their calls, we can still text them back and forth about their property, and there's not a lot that goes into it in terms of— you don't need to know anything about the house. So we can go back and forth with them, see what their motivation is, and give them offers completely over text if they never pick up the phone. Unlike most wholesaling, where you'd probably have to send them a novel of a text asking them all these different questions about their house and expect them to type everything out back to you. The call has been forwarded. None of that matters for this. So we can contact these people via text if they never answer their calls. Sometimes, like the lead I just called, said, "Hey, can you just text?" They might be in a meeting, they might be traveling, whatever the case may be, but we can still start to negotiate those offers completely through the computer or phone, all over text.

Hello?

Hello, Merle?

Yes?

Merle, this is Tyson Smith. I'm so sorry to be bothering you during the middle of the day, I'm a manager at Scotty Jane Homes. I was calling to see if you might still be interested in selling your place over on Doubletree Ranch.

Actually, it's closing tomorrow.

Oh, well, congratulations.

You're a day late and a dollar short.

Yeah, it sounds like it. I'm guessing maybe that you don't have any other places in Paradise Valley as good as this one that you'd want to sell me, do you?

No, I really don't.

All right.

Alright, well Merle, I appreciate your time. Congratulations on the closing.

Chin up.

All the time.

Your call has been forwarded.

Hello, Danny?

Hello?

Danny, this is Tyson Smith with Scotty Jane Homes. Looks like you spoke with my assistant about—

Hello?

Hey, can you hear me?

Yes.

Hey Danny, this is Tyson Smith. I'm sorry to be calling you during the middle of the day. I was trying to see if the place on Penn Mar Avenue is still available. If you were still interested in possibly selling that place.

Um, are you the one that's been texting me this morning?

Um, it looks like my assistant has been, yes.

Oh, okay, because I, I can't— hold on. Um, you know what, it's something that's crossed our mind, but it's nothing that, like, you know, we, you know, we're not That into it though, it's been in a discussion.

Okay, is it?

I know you need a lot of information if you wanted to give us an appraisal type of thing, but—

Well, I'll tell you what, Danny, I mean, I'm not in the business of giving appraisals. What I am in the business of is buying houses. So if there's a number in mind that maybe you, your family, whoever it is have discussed, it's like, hey, maybe if we could get this, I'm super interested in, uh, in, in this area. This part of Venice, and, uh, I'm willing to pay top dollar for properties.

All right, well, you know, let me— I'm, you know, me and the wife been discussing it for a bit, so I'll get with her and give me a call back maybe tomorrow, and then I'll, you know, she's the one that likes to throw numbers out there, and I'm like, you know, I don't know, dear.

Yeah, I got you. Sounds like, uh, I got the same situation with my wife. Right, right.

So let me chat with her. Obviously, I'll be having a chance to talk to her a little bit later. And then, you know, I'll be honest with you when she gives me the, you know, whether it's a percentage of chances, you know.

Yeah, yeah, man. That's all I can ask for. Look, if you want to talk to her, figure out if there's a number that makes sense, that's great. I'll give you a call tomorrow, and if not, if you guys are like, hey, we're staying put, that's totally cool too. I hope we can still remain friends.

You got it, man.

Alright, cool, man. Well, I'll give you a call tomorrow around the same time, alright, Danny?

Sounds good.

Alright, and again, my name is Tyson Smith. I'm a manager here. I'll go ahead and shoot you a text so you have my contact info, okay?

You got it.

Alright, we'll talk to you tomorrow. Have a great day. Super important, man. You talk to so many people all day, you'll never remember any of this. And like, if I tell this guy right now I'm gonna call him tomorrow, I guarantee you in the next 15 minutes I'm gonna forget that this guy ever existed. So I have my system set up so that tomorrow around the same time, meaning around 2 o'clock Arizona time tomorrow, I'm gonna have alarm bells going off say, "Hey, call Danny. He maybe talked to his wife. He might have a number. We might be able to buy his house. $100,000. $100,000." Right? 'Cause that's what this is worth to me right now. Anyway, I'm just gonna shoot him a text like I said. And also, I mean, if you guys didn't notice, I'm super casual on the phone. I don't talk to these people like I'm fucking, you know, like I'm anything more than I am. But I'm just gonna shoot him a text. Hey Danny, Tyson here. I'll give you a call tomorrow to see about a number. Chat soon.

One of the important things too when putting notes into your CRM, I always like to put something that reminds me of the call I had with them that I can bring up to them that they're gonna recall. You can make a joke about, hey, I know you said your wife is the one who's pushing this decision here, and she's gonna give you a percentage chance if you're able to sell or not. Hey, are we 50/50, or are we 100% that you're ready to go? That's something I would say on the next call with them, and he's gonna remember, remember, I told that guy that, and it differentiates you from every other person that they talk to that's gonna call them and say, hey, are you interested in an offer? He might not remember, but if you bring up something that you said on that call, or remember his wife's name, or whatever that may be, their dog's name, why they wanted to move, where their kids live, some kind of touchpoint to them personally is gonna drastically differentiate you from everyone else they're talking to currently.

Every single offer you make is a fishing line, dude. And it's like, would you rather be the guy on a fucking canoe with one fishing line? Because if you only make one offer a day, that's what you are, right? I don't want to be that guy. I want to be on the back of a fucking Viking 120 in the Keys. I got 6 motherfucking lines off the back of the boat because 'cause I'm catching big-ass tuna, right? I'm not just one at a time, okay, that's it, whatever, right? No, no, dude. As many offers as you can make, you should. 'Cause every offer legitimately is, it's like a fishing line, right? Now, might not get a bite right now, but you continue going, you're trolling a little bit, all of a sudden you get a nibble, right? Who knows?

[Speaker] Also, people's circumstances change on a daily basis. He might talk to this person now, they've had a conversation with their wife, I don't know if we want to sell yet, we've talked about it. Something might happen in their life. Mom, dad gets sick, they want to move, you get fired from your job, you have a job opening in a different state and you have to move across the country. Whatever that may be, you have to continue to touch people even if they said they didn't want to sell originally because 30 days from now, 60 days from now, 90 days from now, their circumstance could be totally different and they could be ready to go. And whoever talks to them first or comes to mind for them first is the one that's going to get that deal done.

Hello, Robert?

Speaking.

Robert, this is Tyson Smith. Please tell me you have not already sold that property on Shadow Lawn Drive. I got—

oh, I got that.

Just let me know when you're ready.

I'm sorry, how can I help you?

I was asking, I was saying please tell me that you have not already sold that property On Shadow Lawn Drive?

No, it's not sold yet.

Okay, are you still looking to sell it?

Um, not too actively, no.

Okay, well, what I can tell you is I represent a small group of developers in Florida. We're currently looking for projects in Sarasota. Yours came up as a fit. I want it. So if you're willing to sell it and you have a number in mind, I'd like to talk business.

I think we could not net less than $1 million on it.

Okay, so if we can get you net-net walking away with somewhere around $1 million, then we're in the right ballpark?

Somewhere around, but it'll be real close to $1 million, man.

Okay, that makes sense. It is, uh, I don't have the exact square footage. I'm just looking at it on Zillow right now. I can pull it up on tax records. Do you know how big that lot is by any chance?

I do. Yeah, I do not.

Okay, no worries. I can go find that. Have you ever tried to extend the property or anything like that? Rent it? Any trouble with easements? Anything of that nature?

No.

I'm sorry, you said no?

No, the answer is no.

Okay. Um, that pool, that's been there since you bought it?

What's been there since we bought it?

The pool.

Yeah.

Okay. Um, are you currently living in the property?

No, it's seasonal use for us, vacation property.

Okay, gotcha. So assuming we were able to get to a number that made sense, what would an ideal closing timeline look like for you? Is this something where, hey, if we—

8 weeks would be great.

Okay, that's what I'm talking about.

No, actually no, we gotta rent it in June, so 1st of July.

Okay, all right, sounds good. Are you aware of any easements on the property? Utilities, drainage access, shared driveways, anything like that?

No.

Okay, I think that's all I need in this area. I'm assuming there's no turtles on the property?

Not that I've seen.

All right, good deal. Alright, I think that's all I need. Uh, give me— I'll be able to shoot you a text if that's gonna be some— somewhere if we can get— if I can get you a number that actually makes sense and I'm not lowballing you being an asshole, I'm gonna shoot you a text, okay?

Okay, well, like I said, a million. Anything less than a million is not gonna make sense.

Understood. Well, if I don't text you then, that's because I don't think I can get you a million.

Alright?

Okay, that's fine.

Uh-huh.

Alright.

Talk soon.

But first things first, again, I'll go ahead, I'll share my screen here. Okay, so first thing is just scroll down and we want to see this map right here. And I just want to see real quick, what do we have for sale? Um, and we're seeing a lot of stuff. Now again, something to know is especially in like water communities like this, it's not on the water, so that does affect the price. Now is what I'm seeing is we have some other things for sale for $1.1, $1.2, $2.2. Now already off the bat, I know that this probably is not going to work, um, just because of the price points I'm seeing. We do have like one over here that you can see for $4.9 million, but that's on the water, so that's not a comp. The biggest one we have is this one for $2.6. We can look at it for Schitt's and Gigs, built in '96. Okay, again, this just isn't— it's not a comparable property, and it's for sale. This guy's just listing like crazy, just price dropped at $250 grand. So to the untrained eye, you might look at these these conversations we've been having today, and you might think, man, these two dudes are just sitting in here wasting their time jerking each other off, right? Because it doesn't seem like we have any hot leads or anything like that. But what I'll tell you is these little conversations, you never know where they're gonna go. Like, a couple weeks ago, Matthew and I were doing the exact same thing on Zoom, just together making some calls. You know, we had some students watching, we're showing them what's going on, and we talked to a guy, and I can't remember exactly what he wanted. But we had a conversation very similar to like what we'd have today, where anybody looking at it, they'd probably be like, that's not going anywhere. And what happened with that?

Yeah, so we ended up— we followed up with that seller. I called him again a couple days later. We ended up getting that property locked up. I had already talked to a developer before. Um, after our initial conversation that Tyson Smith had with this seller, I called a few developers in the area, found someone who was willing to pay $1.6 million for his property. And then we went and locked that property up. He had wasted his time with so many other people that had given him offers, fallen out of escrow. He was tired of it. I gave him the certainty that we're going to get this done. We put up $50,000 non-refundable earnest money. We didn't put it up, our developer put it up and actually released that earnest money to the seller already as a sign of good faith that, hey, we're going to get this done. So why don't we go check out that property so you guys can see the deal live in person.

So we're standing in front of that deal we were just talking about right here. And Matthew and I were bullshitting around on a Zoom call, just talking to people. Hey, do you interested in selling? Whatever. This guy was like, hey, I want 1.6. And funny thing about this deal is we actually got it confused with a different deal on the same street. You know, these streets, they run pretty far. And we thought, we thought it was like we had somebody like 1.8 or something. We're like, oh yeah, no, that's something we could do. But then we realized that wasn't really the case. And anyway, we just kind of put them on a follow-up. And then Matthew gets a call from another developer who was looking for something in area. So he calls him back, gets it under contract, assigns it that day. When you need people to realize— like, show them this house right here, right? So we're in this neighborhood, we got this. This is a more, you know, built more recently property. And this is happening all across the country because here's the thing about wealthy people: they all want to live in the nicest areas. Here's the problem with the nicest areas: there's no more land, okay? They've already built all the things. The problem is they built them whenever this house would up, which is what, the '70s?

Yeah, this was built in '79. They were the original owners, actually. They paid $79,800 for this house in 1979. Yeah.

Okay, so we just made them a quick, you know, million and a half million, you know, whatever that is. Um, but anyway, look, rich people who are super wealthy, they can go live wherever they want. They don't want to live in a house that was built in 1979, okay? They want some shit knocked down. They want to double the size of it, and they want it to be brand new. And there's demand for this all across the country. It's not just here in Arizona. It's happening in Alpharetta, Georgia. It's happening in Arlington, Virginia. It's happening in Raleigh, North Carolina, everywhere in Florida, everywhere in California, all over the place. Every single state has a market just like this. So all you have to do is figure out, well, who's building these houses for these rich people? Because the rich people aren't doing it themselves. They're having developers go build them for them, and they're buying these custom homes, right? So go find the developers and say, hey, where are you looking for properties? And then you just go look for the properties that were built 30, 40, 50 years ago that all have, you know, these estimates that are lower than what we can actually offer them because we can still sell it to the developer for $100,000 more than that. But anyway, this is a perfect example of one of these deals, right? It's a great house, it's in a nice area, but again, the wealthiest people want to go live in some new shit, right? They don't want the the 30, 40-year-old house. We got a Lambo under a wrap right there, and across the street we have a car literally on blocks. It's literally no wheels on it. Lambo, car on blocks.

The developer, when I brought him here, he looked at the backyard and he was like, this is absolutely perfect. I mean, it's a perfectly rectangle lot. It has a great building envelope, but Again, look at all this wasted space. People didn't used to want a huge house back in the day, but now wealthy people want a large house. Property was built all the way back in 1979. It's the original owners. They paid $80 grand for it. And this developer that I'm working with on this deal, he wants to build and maximize the building envelope as big as he can. So what he's going to do here, I mean, everywhere where you're seeing right here, it's going to be livable square footage. So this house is going to be— they're going to expand it and make the biggest footprint they can for this house. There's going to be a huge pool, hot tub, massive outdoor entertainment area. This house is probably going to end up being around 7,500 square feet when it's done. And how— very basic view, uh, very basic overview of the numbers is this developer is going to pay $1.6 million from us. We're going to make our fee in there, obviously. And then he's going to build for probably around $3.5 million, be all in for, call it, $5.5 million with carry costs and everything like that. And this house is going to be worth probably around $7.5 million after it's done. So this developer has multiple millions of dollars that he's going to make on this deal. We're able to come in and make $100 grand on the front end, and everyone's happy in the transaction. The sellers are happy, we got them post-occupancy where they're going to be able to take this money that they get from this sale, stay in the property after we close, because again, our developers can't do anything until they get plans, permitting, engineering, all of that done, which takes time. So we can gift that to the seller and say, hey, we'll close on it, you get paid, you can stay in the house. And then they're going to use— this specific seller is going to use that money to go buy a house in Florida. That's where they want to retire to. And everyone's happy in the transaction. We got paid, Seller gets paid and the developer has a $2 million profit on his hands. So it's a win-win for everyone involved.