Today I take some time to cover your real estate questions. I discuss lease option investments and investing remotely in other states or internationally. I also talk about possible reasons a buyer disappears on you, and what you can do about it.
Is it possible to invest across state lines or even internationally? It is absolutely possible. And it is also possible to invest in the US from other countries. The key to investing from afar is having a solid partner that is local to the area you would like to invest in. If you are investing in other places, first prescreen the leads and then have your partner on the ground go to the property, inspect it, and get it under contract. Then, when you turn around and sell it, you split the profit 50/50. How do you know the wholesaler isn’t going to go and do deals behind your back? Pick an investor/wholesaler that you trust and have vetted, and then pick the market. Also, have a shared CRM and be clear that you both have access to, and all the paperwork/info is to be done in the CRM. You are the one finding and prescreening the deals, so they aren’t going to double-cross you. They will be thrilled to be handed these leads. You need to be talking to your partner every single day and checking in.
What should you do if a buyer goes dark? The truth is, if a buyer backs out, it may not be a good deal. Make sure when you get your property on the market, it’s for a good price. You might have five or six buyers interested, and that’s a great thing in case your original buyer backs out. A buyer might back out because they’ve taken a look at resale value, repairs, and rent and have decided they don’t want to take the property on.
If you are just starting out, start with my first course Simple Lease Options. I am in the process of consolidating all of my programs into one place. If you don’t have access yet, need to know where to start, or have any questions at all send an email to firstname.lastname@example.org or text (636)249-1510 and be sure to provide the email you used to purchase the course. My team is great at answering your questions and getting you on the right track.
Watch and Learn:
Listen and learn:
- Are lease options good for lien sales?
- What can you do if a buyer backs out?
- What training is inside Freedom Soft and how do you find it?
- What is the difference between Freedom Soft Plus and Freedom Soft Max?
Mentioned in this episode:
Download episode transcript in PDF format here…
Welcome. This is the Real Estate Investing Mastery podcast. Now, hey, welcome, sorry for the delay there, this is the new inner circle coaching calls. The reason I am, I change the name. So this used to be the Simple Lease, premium coaching calls or just Joe’s lease option coaching calls? I’ve changed the name. Now it’s going to be called Joe McCall Inner Circle because that sounds fancier. And so these are my brand new inner circle coaching calls. Before I used to do them every once or twice a month. Now I’m going to be doing them every week. But yes, now they may not be me every week that’s doing them because I got a lot of things going on. Sometimes I’m traveling. I might be gone, but I’m going to have somebody here doing them. It’s if it’s not me, it might be one of my successful students already doing deals or might be Gavyn one of my coaches that I work with, my main coaching business partner. And my goal on this is to answer questions, to answer your questions. I’m not going to be teaching anything necessarily. I’m going to be answering questions. I’m starting to change things up a little bit. I’m doing more live calls like this in Zoom on YouTube and Facebook to my private students to open everybody, et cetera. And this so I have a webinar series called REI Secrets. And in there I’m just teaching new stuff. I’m only teaching. And then I have Joe’s inner circle. We’re going to be answering questions. And so there’s a place that if you’re a student of mine, you have a place to go in and ask questions in advance. And I’m going to be first answering those questions. And then if you’re here on Zoom watching the slide, you can type in questions in the chat and I will answer them. And if it’s not something that you can type, you can raise your hands. And I will on unmute you and we’ll answer your questions that way. My goal is to get this keep this within an hour long course. I’m not going to go very long. It’s cool or be good. All right. So I’m going to go through these questions that were submitted in advance. If you’re one of my students or you can ask questions in advance.
This is from Shandra. Are these options good for tax levy sales? No. So these options is Shandra. If you’re going to the tax lien sale or the auction to buy tax liens or even online, whatever, you need to have the cash to buy the property or to buy the tax lien. And once you own it, then, yeah, you can turn it around and sell it on a lease option, but you can’t buy it on a lease option. So it makes sense. Good question. So I would again use the lease option strategy to sell the deal after you buy it with cash at the tax auction or whatever.
Question from Jeff. I’m excited to have enrolled. Awesome. I would just want to know how can I do these deals in the United States as a foreigner? I’m in South Africa and awesome. Hi, South Africa. I want to do virtual investing. Would there be any legal impediments? Great question. Let me just say this, Jeff. I have lots of students that have done deals in the United States from outside of the United States. I’ve done them from in the United States, from outside of the United States. I’ve done deals in about four different countries, the Czech Republic, France, Germany, Ireland. Thank you. It is Ireland, a country or England or Great Britain or I don’t know. But I’ve done deals while traveling around in Europe for months at a time with my family. So if I can do it, you can do it. And I have lots of students that are doing it as well. In fact, when I used to do my main webinar, when I would sell my course, I would say, what do these countries have in common now? Flip through about 12 different countries? And I would say that I have students and all of them that are doing deals in the United States. So, yeah, I could definitely do deals in the US. Here’s the thing. If you do that, you need to find somebody to partner with here in the United States on these deals. Now, when it comes to land investing, you can do investing by yourself in the United States for flipping vacant land. You’re going to need to get a bank account that lets you transfer money maybe to PayPal accounts. So every country is different, depending on the rules of what you can or can’t do in the United States from your country. Kind of depends on on how to do this. But what I would recommend starting off and this is what I did, I found a local wholesaler, boots on the ground person in whatever country I was investing in. And at the time, I was doing the deals in one particular time, and in particular I was doing deals in Tennessee, Memphis, Tennessee, St. Louis, Missouri, Tampa, St. Pete, Florida, and Las Vegas, Nevada. And so what I did was I had a wholesaler in each of those markets. I would do the marketing; I would prescreen the leads. I would have my virtual assistants kind of do the marketing and the prescreening and the follow up and the data managing everything in the CRM. We would prescreen the leads and then give them to the local investor and then local boots on the ground investor would then take that lead, go to the seller’s house, inspect the property, meet with the property owner, get it under contract, and then do the work of selling it. And we just had a written agreement that any deal we did together, we would split 50/50. Now, I hear some of you saying, how do I know that wholesalers are not going to go around me, behind me, behind my back and do the deal? What you don’t know. But what I did was I picked the investor wholesaler first, who I knew had integrity, that I trusted the good reputation. And then I picked the market. So I picked that investor first, worked with them because I knew and I trust I trusted them. Second thing is everything has to be open book in the CRM. So I told them we’re going to use at the time I was using Podio. Now I recommend Freedomsoftjoe.com. Everything was done. Inside of the CRM, you have to know and make sure your local boots on the ground wholesaler knows that all of the paperwork, all of the buyer’s information, the seller’s information, everything has to be kept in your CRM. Now, if they already have a CRM, I would say then you need to make me full access user of your CRM so I can see what’s going on in there. Everything that is open book. So you see when the leads come in, you see when they’re working on their notes, the paperwork, the closing statements, the documents, the pictures, everything gets kept in that CRM. So it’s full transparency and open book. OK, you got to remember, too, you are the investor who’s doing all the front end legwork. You’re the one investing the money in the marketing. You’re giving them golden prescreen motivated seller leads on a golden platter like you’re the goose that’s laying the golden egg. You’re the one you’re the rainmaker. The last thing that investor would want to do is ruin their relationship with you and do a deal behind your back, because if you found out, you would obviously cut off all of your relationship with them and you wouldn’t be doing any more marketing for them. So they don’t have there’s no reason why they would want to stop that. I had investors if once you explain to them what you’re doing, like every investor in their right mind would say, yeah, of course, I’d love to work with you on that. Right. You’re willing to do all of that stuff for me. So what kind of investors would this work with? You need to find somebody that’s already doing deals, number one. But you don’t want to be working with somebody that’s already doing a ton of deals. If you already have if you find somebody who’s already doing a ton of deals, they already have a spending a bunch of money on marketing, already getting a bunch of leads. They don’t need you there. Might just treat you like a bird dog. You know, you’re not a bird dog. You want to find that wholesaler, that investor who’s already doing a couple of deals a month. They want to do more, but they’re just overwhelmed with getting all of the leads, prescreening the leads, doing the marketing, that they’re overwhelmed with the follow up they need somebody to partner with that is good at that stuff. They just want to be in their truck driving around town, looking at houses and talking to sellers and making offers. That’s what they’re good at. They’re not good at the stuff behind the computer. They’re not good at being on the phone. That’s what you can bring to the table. OK, the final thing I’ll say to this is when you partner with somebody like this, daily communication is super important. You need to be talking to them every single day. You need to be talking to your virtual assistant every day. You need to be talking to local boots on the ground every day. You need to find out from the houses going out, what can I do to help you? How can I support you more? You want me to do more prescreening with these leads or less? Or you just want to make sure that your virtual assistants that are working with you and helping you are also helping this other investor. So you’re you’re not just passing them on to the leads and talking to them once a month. That does not work. You need to be talking to them every day. OK, yeah. Great question.
Let me go to the next one from Steve. Oh, good question. Here, my buyer went dark and I’m running out of time on the contract. I would like to partner with you or one of your students. The address is and he gives me it here on a property in Concordia. I think I already looked at this. Here’s the address. I’m just going to pull up the address real quick. And this was submitted nine days ago. So I’m not sure where we are at with this, but I thought I already looked at this deal. No, maybe not. All right. Hold on a second here. I’m pulling it up. This is in Concordia, Missouri. It’s got a nice house. Concordia, Missouri. Where is that, you ask? I don’t know. It’s in between Kansas City and Columbia, Missouri. It’s a great little small town. Yeah, right off of Interstate 70. So the question here is my buyer went dark and I’m running out of time. First of all, if your buyers are running dark, it’s might not be a good deal. Usually a buyer will back out if the numbers aren’t good. So you need to go back to the seller and try to, number one, renegotiate a better price and number two, negotiate more time. So the purchase price was so your is your purchase price or their purchase price fifty one thousand eight hundred. So it sounds to me like you’re buying it for fifty one eight. The repairs are twenty-five thousand, the ARV is one hundred and fifteen thousand. And so you have made so by the time I’m seeing this the closing was yesterday. So Steve, are you on this call, number one. So this is already passed. I’m not sure what’s happened, but I’ll just tell you what, by the way, this was posted in the Facebook group, too. So I’m hoping that somebody already responded to this. So let me just look at a quick calculator here. You’re buying it for fifty-one eight hundred and it needs twenty-five grand in repairs. And what’s your wholesale fee? You’re probably going to be making at least seventy-five hundred on this. So you’re going to be you’re trying to. Yeah. So then divide that by. So you’re at seventy three percent. What I’m trying to say is after repairs you’re selling this deal for about seventy three percent. Seventy five percent on the dollar. So is the RV really one hundred and fifteen thousand. I don’t know. I know Zillow is not the final authority on this, but let’s look at propstreamjoe.com and let’s look at Zillow, because this goes to a bigger question, too. What if my buyers do back out? What do I do? So I’ll share my screen with you guys here about that so you can see what I’m looking at. Here we go. Looking at the wrong monitor. Come on. Sorry, guys. Hold on. All right. You see my screen here. This is the address of the property. Why isn’t there data on there? This is a property on Zillow. Looks like a bad picture. It shows this pending. Here’s the street view. Street View looks a lot better. That’s a cute little house, right? A little worried about this right across the street. Maybe that’s OK for Concordia. It’s a small little town, maybe a thousand people. It’s a nice, cute little house right. Now for some reason, it’s not showing up in Prop Stream. You might have to do with the address. There you go. So it’s not terrorists. It’s. OK, let’s look it up and perhaps stream here, it’s owned by guaranteeing mortgage services. I wonder if it’s a foreclosure based out of California, Anaheim, California. They’ve owned it for a year. Its a two bed one bath, nine hundred square feet, tiny little house. Their estimated value is one zero five Zillow estimated value is none. Sometimes in these smaller towns, it’s harder to get comps. But here’s here’s what I recommend. So you’re buying. It sounds to me like it was pending for fifty-eight grand. You had it under contract. Fifty-eight or maybe less. If you were trying to sell it for sixty-five, they’re going to be wondering why would I want to buy it for sixty-five when it’s on Zillow for fifty-eight. So I’m not sure what you were buying it for. But let me just answer the question. What happens when you run out of time. Well first of all, you need to make sure when before you get a deal under contract, you’re getting a really good price. So when you do start marketing it, you’re going to get at least five or six buyers interested. So if one of them flakes out, you have four more to go to. Do you wanna make sure you got a sweet deal if you ever had to go back to the seller, renegotiate? I always recommend blaming it on the numbers. And there’s usually four, three or four things that you can blame it on. And think of the three R’s, the resale value just not as high as resale value. I thought repairs, the repairs are more than I thought or the rents resale repairs, rent because listen. We thought it would rent for more than what it actually could rent for. We need to either cancel the contract to renegotiate a lower price. The other thing I’ll say to this is this property needs a lot of work. It’s probably a full gut rehab, maybe. From day one, as soon as you get this property under contract or properties like this, you need to call every realtor, every investor, every landlord in that area and see if they would be interested in this house. And if you’ve got it under let’s say it was listed for fifty-eight, you’ve got it under contract for forty, you’re going to try to resell it for forty seven thousand five hundred dollars. First thing I would do is I would go into Zillow and I would look for all of the properties listed for rent. I’m going to do houses, condos, townhomes, apartments, even though it’s Concordia. There’s going to be properties for rent there. I’m going to remove boundary, maybe, maybe not. So there’s nothing in Concordia for rent. All right. So what else what else could you do? Let’s look at for sale. Let’s look at all the for sale homes. There’s only four properties there. Well, this looks like a property that needs work and they’re selling it for forty. So which also leads me to wonder, like, all right, so if you’re trying to sell your house for sixty-eight, let’s say, why would they want to buy yours when they can buy this one for forty. And that looks like a nice house. Right. So let me say one other thing here. What, what county is Concordia? Lafayette County. What I would do also is go into Lafayette County, Missouri. I pull up all the absentee owners who have single family house. Look at that. There’s forty-five hundred absentee owners in that county. And I would say maybe who have bought in the last year, there’s one hundred and sixty. All right. So I would download one hundred and sixty of those investors who have bought in the last year and I would skip, trace them and call them, I would send them a desperate motivated letter, have desperate I need to sell my house. And by the way, you can also go in here to Concordia. If you just wanted to look up only the ones in Concordia, you could draw a diagram, quick search and I would say years of ownership. I might remove that. Right. So there are four hundred and ten absentee owners that own single family homes in that area right there. I would send them all. As soon as you get it under contract, I would send them a handwritten yellow letter saying Hi, hi, my name is Joe. I have a property that I’m I would say this. Listen, I’m desperate. I need to sell my property at 302 to Southwest 7th Terrace in Concordia. Now, this is I’m desperate. I’ve been I’ve had this property listen for some time now, but I can’t wait any longer. I’ve got to get this thing sold today. And I would send that yellow letter to all of those investors in that area saying I need to sell my house. All right. The other thing I would do is if you could get the information here, sometimes it’s harder on Zillow, but look up all of the homes that have recently sold in the area, sold in, let’s just say, in the last twelve months in Concordia. And there’s not a lot of them, but they’re there in Zillow. And sometimes you can go through here and look for the ones that might have needed updating. Like this is a house that only an investor would buy right on South Main Street. And if you scroll down sometimes, not all the time, you can find that. Here’s a listing agent Patti Sneck number I would call Patti up. This looks like an investment property because it’s a little two bedroom. Nine hundred sixty four square foot, I’d say. Patti, hi. My name is Joe. I have another property in the area that I’m trying to sell. And I’m wondering if that client who bought that property that you just sold on Main Street, what they are, are they looking for any more? OK, all right. Somebody said here, he said, hey, didn’t he say he bought it for fifty-one thousand eight hundred? Yeah, maybe that I think he did say that. Hang on, let me check. My memory is he bought it for fifty-one thousand eight hundred. It’s showing his pending on the MLS fifty on Zillow for fifty-eight. So my guess is it’s already been for sale for fifty-eight. They haven’t been able to sell it. He got a contract for fifty-one thousand. He’s probably trying to sell it for the same price that it was sold before. So if it wouldn’t sell before fifty-eight, what makes you think you can sell it for fifty or even fifty-seven or fifty-five. So typically when you see a house like that that’s currently on the market for fifty eight thousand dollars, you need to. Be selling it for like at least twenty percent less, you need to be selling it for forty-five thousand, let’s just say, which means you need to buy it for thirty-five thousand. So I have a feeling this fell through because it just was not a good enough deal either. Number one, it wasn’t a good enough deal. Or number two, you need to go out there and find some better buyers. That makes sense. Well, I just went through kind of a long, roundabout way to answer that question, Steve, but if you can’t find buyers for it, either it’s overpriced or you haven’t done enough marketing so soon as the day of the day you get a contract signed. Don’t waste any time. Call every landlord, send a letter to every absentee owner, call every realtor in that neighborhood in that market and find out is it a good deal or not? Don’t waste any time. Call them right away and you’ll find out. And you’ve got to stay in control of that deal. All right. Don’t let tail wag the dog. Chances are it’s just not a good price. All right, Louise, great question. What training is there inside of Freedom Soft that I can send to my VAs? Great question. Well, the question was actually about simple.
But I want to show you guys the coolest thing about Freedom Soft here and why I think it’s so important for you to get it for your for your team, for you, for your Vas. So here’s Freedom Soft. Super simple. Same thing, except Freedom Soft is the mobile version right here. You go to need help, actually go to resources to help center. When you get a VA, have them watch all these videos. Simple as that. Right. Have them watch getting started videos. The phone system is the lead generation lead management automation follow up. We have estimates having to watch all of this. Also right here, if you go to live on, they do live on boarding calls, sometimes twice a day, every day of the week. So if you’re a new investor, you’re wanting to close your first deal. You can join their onboarding calls here every day Monday, Tuesday, Wednesday, Thursday, Friday. If you’re an experienced investor and you want to do more deals, you can join calls Monday, Tuesday, Wednesday, Thursday. Those are live on morning calls where your Vas can get on. They can answer, ask and answer, get ask, ask any questions they want on Freedom Soft. But have them go through these videos right here getting started. Watch the Freedom Soft guide here. Go back here to the phone system. Here’s the thing that explains all of the phones. So here’s the thing. When you hire VA guys, you do not want to be the Freedom Soft expert. No matter what CRM you’re using, you don’t want them to be the CRM expert. You don’t want to be the expert. You want the Vas to be the expert. Does that make sense? That help? I understand. You can understand that. So have them just watch these videos. That would be number one, have them join those live on boarding calls. Make your VA responsible for learning how to use Freedom Soft. So if you have a question, you go to the VA. The VA helps you do it. If you want to add a letter to freedom staff to give it to your VA, VA does, you want to create a new website and Freedom Soft to have your VA do it. By the way, we have new websites in Freedom Soft. Now, did you notice you go right here to websites, click add website. We have cash buyer, company website, land buyer, land seller, mobile, home seller, motivated seller, note buyer rent to own a house that was a brand-new symbol and Freedom Soft. OK, you get some websites, but you don’t know how to do websites. You say, OK, that’s all right. There’s you have your VA go here to resources help desk go to I think it’s account set up. No, you know what? I don’t know where it is. So go right here to the search. Do search for website, website, tutorial, one website tutorial two so have your VA watch website tutorial one. Now, if you can also do what I did, I went to Fiverr. Is it right or Upwork? I went to Upwork and I create a little video saying, hey, I need somebody to build a website for me. And so I have a Carrot website renttoownstl.com. This is my investor website renttoownstl.com.
I went to Upwork, upwork.com. I posted a job and I said, I want somebody to build me a website that looks like this inside of my freedom stuff account. OK, and I said, this is where you go to learn how to use Freedom Soft. Go here to resources, go here to that type in website and watch these tutorial videos here. That’s it. OK, then somebody built that website for me. OK, Tom, sorry for the confusion. REISimple Freedom Soft. Same thing, just different colors. OK, I’m working on just a month ago or so we’re still supporting REISimple, but now I’m just calling it. Freedom Soft so that make sense. So get one or the other doesn’t matter. I would suggest if you’ve not signed up yet, get Freedom Soft, we’re going to be switching them all over real soon. But freedomsoftjoe.com, you get the app. I mean, you get the mobile app. So sorry for the confusion, everybody. I know I’m trying to get it fixed, but I simply used to be my white label version. It was Freedom Soft. So it just said REIsimple, powered by Freedom Soft. Now I’m just sending everybody straight to Freedom Soft because then you just get you get the mobile app. That’s the only thing. So when you’re ready to sign up, guys, just go to Freedomsoftjoe.com, I know it’s confusing and I apologize. OK, so yeah, I’ve got a VA. I just told them this. I want the website to look like this. I want to use Freedom Soft and watch these tutorial videos on how to do it. And they did it. Simple as that. All right. Next question from Louise. What’s the difference between between Freedom Soft Plus and Freedom Soft Max? What’s the about? That is simple. There’s a ninety-seven and one ninety-seven version. Freedom’s Soft is doing away with the ninety-seven dollars for the simple reason is there’s just not enough features in there to make it useful. It’s good, but not good enough. The one ninety-seven a month level, you get six users, you get six websites, you get to access to the lead finder which lets you download leads. You can access the skip tracing; you can access all the extra workflows and automations and all of that digital signature. So like if you were to go out and buy an email autoresponder, digital signatures with DocuSign, your lists, your websites and all that, you’d be spending double, triple the one ninety-seven. So that’s what they’re going to right now. So I would encourage you guys to Yossef says here, I love the CRM. Nice. I would encourage you just to go straight to the one ninety-seven a month level. It’s, I know it’s not cheap but you need it now. Again I could teach in my course.
You don’t even need a computer to do deals. You can do deals with pen and paper. That’s what I’ve done. That’s what I did when I was first starting. Just did pen and paper and I did deals from there. What are we going to get a link or access to slow to.So some of you that don’t know I had Simple Lease Options. Now it’s called Legacy. I’ve updated it. Now it’s called Simple Lease Options/Automated Investing Secrets. It’s my new flagship program. All of you. If you’re on this call right now on Zoom watching this, you get access for free to my brand new upgraded course called Simple Lease Options/Automated Investing Secrets. So I have the Simple Lease Options Legacy and the new course. It was called Automated Investing Secrets. Now I’m just calling it Simple Lease Options 2.0 automated investing secrets is like the tagline that makes sense. So you guys, if you if you’re wondering, like, where is it, send an email to email@example.com. They will help you figure it out. Now what the reason why we’re doing all this is all of my membership sites. We’re on like twenty different places. I have a membership website, URL for Simple Lease Options, another one for creative financing, I and all of that stuff. Right. But we’ve brought everything into one platform called Kajabi and now all of my courses are in Kajabi. So you just need one username and password, one site, and you go there and if you have access to my stuff, you’ll see all of my courses in there. So it’s now all much nicer, cleaner in Kajabi and we’re slowly rolling this out for everybody to get.
If you don’t have it yet, just send an email to firstname.lastname@example.org, tell them who you are. Make sure you give them the email address that you bought the stuff in and they will they’ll hook you all up. Cool. Thank you. Steve says it’s nice. I just appreciate you guys sharing with us too, as I’m kind of like transitioning. I’m simplifying. This is what I’m doing. So I’m simplifying things. But just instead of people were confused with REIsimple Freedom Soft. What’s the difference? So now it’s just I’m not talking about REIsimple anymore. I’m just calling it freedom soft, OK? It’s like the Joe McCall signature addition. And then I’m not having twenty different membership sites. You go in to get all my courses. It’s just one membership site. We get everything in there.
So I appreciate all the stuff Rob is asking. If I just signed up and I’m starting out, which one should I use, Robert? Like, what do you mean which one should you use? Freedom Soft. Freedomsoftjoe.com, and make sure you’re going through the new Simple Lease Options program. And I know all of you all are in different places and I’m hopefully I’m not confusing you. Please send an email to email@example.com and say, hey, can you help me figure this out? Jerry, I don’t know what you bought. So send an email to firstname.lastname@example.org And ask them if they’ll help you out. You might have bought something different. I don’t know.
Another question from Louise. Louise is asking, do you have the A to B contracts and the B to C contracts set up in Freedom Soft? So, yes, but maybe not the I’m not sure which contracts are you talking about, Louise? But here’s the cool thing. I’ll share my screen again. No matter what contracts I have or which ones you want to use, they’re really easy to add in yourself. OK, so I’m going to go here to Freedom Soft. If you go to your name and you go to settings and let me just show you give me an example of what I’m talking about here. I’m going to go to the Google Drive folder. You guys have access to the resources folder. There it is. And let’s say a contract right here, module six. All right. And you want to use this contract, let’s say, OK, I’m going to download it. Actually, that’s weird. All right. Yeah. So let’s say you want to use this contract. I’m a download it to my computer. So if I open it up on a computer, here it is. It’s a PDF. It’s a seven page PDF. And I walk through how to use this contract in the course. You want to use it in Freedom Soft. OK, so all you do here is you’re going to go to your name, go to settings and go to templates. Now you’re going to click on this blue button right here, new document package. Click that. You’re going to give this a name demo. I’m just going to call it demo this option contract and then I’m going to go choose that file I just downloaded create document template and they’re just like that. It’s generating the contract. It’s going to put it in here. It’s going to take a minute because it’s processing and it’s seven pages here. Let me just close some of my other tabs real quick so it’ll be ready shortly. And then when it’s done, I’ll show you how to use it. It’s super simple. And by the way, let me just say that while it’s opening up, how do you find the training on how to do documents like that? How do I do document? So you’re going to go to here to Resources Help Desk and you’re just going to do a search for documents, document templates right there, document templates and this page right here. And I’ll put this link in the zoom chat right there. It’s in the zoom chat. You can see this gives you step by step how to do exactly what I’m doing. You go to settings, you go to templates, you click on that little blue plus button, you upload it in and now you can start merging your fields. So it’s three pages of the seven that are processed. So this is we’ll show you then how to do merge fields into that contract. So we’re getting some questions here. I know this is confusing, guys, but I’m going to repeat myself again because I’m getting a lot of questions here.
Which version of Simple Lease Options should I use if you have access to the new one? Use the new one. If you have access to the old one. Use the old one. OK, they’re both really, really good. You’re going to have access to both. Again, they’re both really good. So but if you have access to the new one, then you can go through. That makes sense. And if you have questions, please, please, please don’t hesitate to send an email to email@example.com Then you can also let me just give you a phone number. You can text and my team is really good at answering text messages. Yes. You ready? Here it is. You can text six three six two four nine fifteen ten. OK, give it to your right here. I put it in the zoom chat. You can text support to get even a faster response. Six three six two four nine fifteen ten six three six two four nine fifteen ten. And give them the email address that you bought so they can look you up quickly and easily write and tell them, Hey Joe, Joe talked about this, whatever, and you confuse me and he didn’t do a good job explaining it. Can you help me out and what should I do? OK, how can I get this or that? Please text them. They’ll help you. Six three six two four nine fifteen ten for email firstname.lastname@example.org You guys with me. All right, good. All right. So here is the templates. Done. OK, nice. And you can see it’s seven pages right here. Now you can start inserting your merge fields here, your variables. So this first one is this contract is made on date. So I’m a click on that. I’m going to go in your variables. I’m going to click on Current Date, and it puts the current date right there between the seller you click on here. That’s going to be the seller’s name, right? Primary you could do on a record that puts in the owner’s name right there. Let’s go and just stop it right there. OK, let me do one more thing. I’m going to do a new one from a do the address. Now, I already I can do the address right here, property address, but I’m just going to do a contact variable. It’s called. No, no, I’m going to do a insert custom. I’m going to call this address, OK? I’m going to save changes. There it is. It’s called Demo. L.O. Contract right there. I’m going to go into one of my recent leads. I was just messing around with this one. This is Dave Mooney. Right. And he’s got this property in Becky Thatcher Drive. I want to generate I want to send him a contract. I’m going to click on the three dots, click generate document of a click. That document right here. I’ll click on Next Step and ask see right here, the custom variables. This is I can type that in one, two, three. Main Street, Fresno, California, blah blah blah. Right. And click next step. And it puts it puts the information in right there. And you can see put in the address right there, brought in the date, brought in the seller’s name right there. But you know what? I can still add things on here, right. So I can just click on here and I can type things in. This option to purchase period commences on 6 May 2021 and terminates on 31, May 2024 and you can move these around etc.. Cool. And you can do that for all of the pages and you could complete your contract is right there attached to that record. And then as soon as it’s done generating you can email it to the seller, you can do a digital signature, whatnot. All right. Makes sense. Good. OK, Rick is asking, are all of the contracts in Freedom Soft? So yes and no we are in the process of adding more in. But, you know, let’s do this. So my VA is working on it right now.
If there is a contract that is not in Freedom Soft, not that you want in Freedom Soft, send an email email@example.com and tell them. Joe said to ask him to put in this contract into Freedom Soft. Send it to them and I’ll make sure my VA adds it in for you. But otherwise just do what I just showed you. You can add it yourself. Very good question. I’m new and I really need the basics like the theory on lease options. What’s the best way to where do I use lease options, different situations, etc..
Great question. Barry and I covered all of that in the first module of the Simple Lease Options class, either the old one or the new one. I cover in there the basics, the fundamentals. I go through example deals of what this is and what that is an example deal and simple. So watch those introductory videos and I answer that question in there. If you have a specific question, just ask it right here in the chat and I will answer back to the previously submitted questions.
Rod, I have an eighty-nine-year-old man wanting out of the rental business. He’s recently backed out of a one-to-three-year lease option with me for two properties side by side. He also owns about five other properties in the area and other properties in Washington where he and his wife reside as absentee owners because of their age. He wants to cash out on all of his properties. And I can understand, is it a strict rule that I have a property under contract before you will partner with me? Or would you help? Would you consider helping me to convince him to sell to us? Thanks so much for the awesome program. It’s a godsend. Great question, Rod. Here’s the problem. Yes. It has to be a contract for me to partner with you. Otherwise, I would not get anything done. I would have so many people sending me leads. I couldn’t I can’t do it. I can’t handle it. So I will partner with you on it once you have it under contract. But I teach you everything you need to know to get it under contract, in my course. OK, so it’s all under it’s all under, it’s all in the course. You can learn how to do these deals with my contracts in the program. I just can’t. Does that make sense?
OK, Greta. How are you doing, Greta? So if I find a renter who intends to buy the property but signs a year assigns at least just rent, then later asks, I don’t understand this question. Sorry, Greta. I’ll just read it out loud. So I find a renter who intends to buy the property but signs a lease to just rent and then later asks if they can buy the property to do a little cosmetic work while living in it, just to flip it for a fat profit. I’m sorry, I don’t understand the question from Gary.
So what do you say to a seller if they’re OK with the lease purchase but not a lease option? They’re afraid that if the market goes down, they’ll be stuck trying to sell it again if the buyer does not decide to buy. OK, great question, Gary. What’s the difference between a lease option? Please purchase an option is just as I have the option to buy the house, I don’t have to at least purchase says you have to buy it. However, do you really have to buy it? Let’s say you had a lease purchase on a property, so you had a contract to buy it in three years. What if the market tanks? Well, you kind of don’t have to buy it. They can’t force you to buy it. So, I mean, the worst, worst, worst case they could sue you for nonperformance. Chances of that happening are not that great. And plus, let’s say that you have you have a contract to buy it for two hundred thousand in five years. It’s worth one hundred and fifty thousand. You can buy it if you want, I guess. But I wouldn’t. Right. So sometimes I use lease purchase language when I’m talking to the realtor or the seller. But in my contract I give them a lease option. If it is an objection, I try. I want to figure out why it’s an objection to that. Right. So I might want to find that out. You could also say to listen, are you worried that the value is going to go up? And so but what if value goes down? If you’re worried about the tenant backing out in the future? I would just pull away and I’d say, you know what? It sounds to me like maybe this is not going to be a good idea. Maybe a lease option is not a good thing for you. And that’s totally fine. Maybe you should just sell it on the MLS or you should just rent it and be the landlord that would put it back on the right. So the chances are they may not be motivated yet. OK, so I would say I’d pull back, I’d take my offer away. So it sounds like a lease option or lease purchase is not a good fit for you, and that’s fine. Why don’t you just listed on the MLS? I can give you a good realtor recommendation or a referral or you can just manage it. You’ll be a renter, make it a rental. I can refer to use of property managers. So I would again try to dig deeper, ask more questions like why try to find out why, if they’re concerned about not being able to sell in year, then I would say sell it now.
Brandon, in the three year I’m sorry, in the three-option letter of intent, the FAQ states who pays for the repairs and maintenance, but it doesn’t state who pays for the taxes, who pays for taxes during a lease option? And how is that factually factored into the good question, Brandon. So the taxes are paid. Usually if there’s a mortgage on it, it’s paid through escrow. So whoever is making the mortgage payment, the bank is collecting that extra money for escrow and is paying the taxes every year. Simple as that. So you may be paying the mortgage payment, but that there’s extra money in there being escrowed every month for the property taxes. So who is paying it? Whoever is paying the mortgage payment, if it’s the seller or if it’s you, I hope that answers your question. Don’t complicate that and overthink it.
This from Joy. An investor is asking for for sale by owner. That’s a four bedroom or four bed or two bath or four bed, three bath in zipcode, 62256, stating that he’ll buy the property as is. So I came across a Zillow for sale by owner in that zip code that fits his request. I messaged him to ask him what he was willing to pay and he said he would pay between three fifty and four hundred and fifty thousand dollars. I just left a message for the owner as they requested on Zillow. The house is that address in Jacksonville. They’re asking four hundred thousand. I live ninety minutes away and I want to get the property under contract. I’m not sure if I just tell the investor before the property is taken, since it’ll probably be sold quickly before I can get there tomorrow morning. I have a nine to five job. Wouldn’t it be awkward for me to wholesale my contract to this investor when he or she can clearly see that my price for ten is ten thousand more than what the seller is asking for on Zillow? Why would you want to buy it from me when he can go directly to the owner? Good question. OK, so Joy, if the seller is selling it for three ninety-nine nine, they’re selling it for four hundred thousand dollars, you’re not going to be able to sell it for four hundred and ten to somebody else. First of all, that investor is going to pull up the property, look it up online, is going to see that it’s on Zillow. They’re going to see that is listed for ten grand less than what you’re selling it for. You can’t do that. It’s not going to work. And an investor is only going to buy a property at a discount, even if it’s like ten, twenty percent. They need to have a discount. So if you’re going to do regular wholesaling right where you’re getting at a discount like that, that house, they’re asking three ninety-nine nine for it right now. They’re asking for one hundred. You need to be able to turn around and sell that to that investor for three eighty. So that means you need to make an offer for three seventy. That’s how it works. You need to make an offer. You remember the typical formula for cash ARV times seventy percent minus repairs, minus your fee. Maybe it’s eighty percent ARV, which sounds like it’s maybe four hundred times eighty percent. So if I look at a calculator real quick, let’s say the RV is four hundred times point eight minus repairs. Let’s say it only needs carpet and paint. Ten grand minus your wholesale fee of ten. And so you would offer three hundred thousand dollars to this homeowner and you would sell that deal for three ten, three twenty to the investor, that investor, when they look it up, they’re going to say oh smokes? Yeah, this is an awesome deal. I get to buy it for three twenty. It’s currently listed for four hundred. That makes sense. It’s either cash or terms. So what you could do is you could sell that deal for four hundred or four ten. If it’s on terms, if you get that property under contract with principal only payments or take over the existing mortgage, you can sell that contract to an investor even though it’s at the same price or higher because you’re selling it with terms. So you could sell these deals either at a low price, high terms or low terms, high price, if that does that make sense? All right. Just a few more questions here. Are we got to wrap this up,
David. I don’t understand this, David. David, don’t understand. I’m sorry. Here you’ve got to lead. Realtor from Florida called, but you say the deal’s already dead. You estimate the ARV’s one forty-four, Zillow says one sixty-four. I offered a verbal over the phone. For seventy-five. So I don’t understand the question. David, I’m sorry if they accepted your offer over the phone for seventy-five and it’s worth one forty five, send them a contract and Freedom Soft. So if you can do a digital signature and have them sign it, if it’s a small business deal like that, sounds like it is. I would send a mobile notary, hire a mobile notary to go to wherever that seller lives and have them sign your contract. Not that the contract has to be notarized. Just a way for you to get it signed. Makes sense.
PJ got a question here. Do you have a place to go to get real estate financing. I’m in Australia based in the U.K.? My partners in the US and my partners is a US citizen currently in Europe. We’re trying to buy in the US, but our LLC is brand new. How do you recommend we get financing? We want to do a combination of regular purchases, lease options and subject to where at the moment we’re getting beaten by cash buyers. OK, these are questions. You guys are going to be really good questions and I don’t understand your question here also is. Well, first of all, let me say this. If you want investor financing, most good and most good lenders will lend on the deal, not on your credit score. OK, but every lender has different requirements on what they’re going to do. Now, I have a website you can go to. I believe it’s a. Hold on a second, guys. OK, so I’m going to give you guys in the zoom chat here a link that used to work. It’s not working now, but should be working soon. It’s called lendingfordeals.com. That’s going to redirect, hopefully, to a company that I’ve partnered with now that lends on deals, lendingfordeals.com. It’s not working right now. Hold on one second, guys. This is an important call. Hold on one second here. Right. Sorry about that. I have a three o’clock phone call and I got to hurry up and get off so I can help them with that. Yeah. So there’s also another place you could go to. Connected investors, I believe, is that it picks. No, no, that’s not it connected investors. They have a website where you can get cix. Yes. OK, cool. Connected Investors has a private lending program. I’m going to put the link right here in the chat. Connected investors where you can get private money. Let me just share my screen right here for your deals. OK, so the link is in the zoom chat. We’re just Google connected investors, private money.
OK, a couple more questions here about by the way, P.J., doesn’t sound like I’m answering all your questions here about six or seven here. And I don’t understand kind of what they are. These are good questions. Let’s do this, P.J., can you please put them in the Facebook group? OK, thanks, P.J. Sorry. I just don’t understand them and do this, please. One question per post. So don’t list six questions in one post, like one question for post. OK, and I will I’ll look at it later today. All right. When you go through, I think I have one more question that was asked in advance. Good question. Here, hold on one second.
Guess the question from LaTheresa of research. That’s a cool name. LaTheresa going through your marketing for leads on Zillow. And I’ve scrolled through my whole state of Virginia, and I only found three for sale by owners and two rentals. What did I do? What am I doing wrong? So let’s look at Zillow here, because this is a common problem. I want to make sure you guys all understand what I’m talking about here. So let me share my screen again. All right. So let’s look at the rentals in Virginia. There’sthirty-five hundred rentals in Virginia. So you probably had some kind of too many restrictions. All right. So normally what I say is if you’re looking at you want to make sure you’re only doing lease options on nicer homes. Right. So let’s say you only you only want rentals price between a thousand to three thousand a month and you only want three plus bedrooms and you only want houses. So there’s four hundred and sixty-three. So I’m not sure you’re doing something wrong with the filtering up here. You also have it like, well what about for sale by owners. Let’s look at that. For sale by owner click by owner. We only want houses; we want nicer homes. Price between like one hundred, seven hundred thousand let’s just say. And there’s zero. Well no, there’s zero agent listings. Click right here. Other listings, there’s three hundred and eighty-four. So whatever it is, if you’re not getting enough results on Zillow, your filters are probably too tight. Don’t do like price between one hundred or two hundred thousand or one twenty-five to three twenty five. Don’t do that. Just make it as big as possible. Maybe you’re not getting enough do two plus bedrooms. And if you’re searching in too small of an area, then you need to zoom out so one week, go after the whole state, the next week go after West Virginia. There’s one hundred and fifty there. The next week go after Maryland. There’s one hundred and twenty there. The next week, go after go after Pennsylvania. There’s six hundred and twenty-one there. Delaware, what’s below you. North Carolina. So I go Virginia one month and then this state than this one week. I mean this, these two states the next week, this state, the next week. These two states the next week and just rotate through the end if you want to scrape.
The biggest, best resource I talk about for that in the course is scraping solutions. You’ve go to joemccall.com/scrape. You’ll see in there how to do that. And so from, from here you can scrape ten, fifteen thousand records for ninety nine bucks. OK, yes. Gerri is asking a question here. How do you mentionedtransactional funding at no cost earlier? How do we take advantage of that? I’ve partnered with a friend, Cameron Dunlap. He’s got a program called Family Bank Funding and it’s ninety seven dollars. And you get unlimited proof of funds for a year, for six months, and you get no fee. Transactional lending on one deal for this. Ninety seven dollars through his program. And I’d have to send you a link. Give me just one second here. I’ll send you that link. I highly recommend these guys. They’re amazing. Hold on one second. OK, so here’s the link. Family bank funding. Ninety seven dollars proof of funds and no fee transactional lending. Do you guys see that link in the Zoom chat? OK, did I get through all the questions? I’m pretty. Ninety percent sure I did. Yes, I did. I got through all the questions that were asked in advance in the future. Jerry got it right. Listen to this. I got to go. I’m already past an hour.
If I did not answer your question, I apologize. Please put it in the Facebook group, put it in the Facebook group. My guy just mentioned to me that the the link lendingfordeals.com is working now, lendingfordeals.com. I’ve partnered with Cogo Capital, so that should be working. But the page isn’t set up exactly right yet. But you should get some information from there. Lendingfordeals.com. All right. I got to go. Appreciate you guys very much. Thanks again. Listen, if I did not answer your question, please send submit the question in the private Facebook group at Simple Lease Options Premium. And that name may be changing soon to something like Joe’s Inner Circle. So just be aware that. Appreciate you guys very much. Thank you. We’ll see you later. Bye bye.
What are you thinking?
First off, we really love feedback, so please click here to give us a quick review in iTunes! Got any thoughts on this episode? We’d love to hear ’em too. Talk to us in the comments below.
Enjoy this podcast? Share the love!