Jason Courtney is one of the biggest real estate investors in the Saint Louis area. He’s here to talk about sellers and how to do creative financing deals. Many people wonder why sellers would do something like a lease option or owner financing, but the truth is that there are advantages for everyone involved. Motivation is always the key, and the trick is to figure out what a seller’s motivation is and use it to solve their problems. People also think creative financing deals are complicated, but Jason tells his students to keep things simple.
Jason runs through the three most common seller situations and how to handle them. We also talk about taxes and how to explain creative financing options when you get a seller on the phone. Jason goes over how to structure and price your deals so you get the right cash flow. We cover Jason’s favorite ways to contact tired landlords and wrap up with some practice calls and a role play.
Joe: Hey, welcome, everybody. Joe McCall here. This is the Real Estate Investing Mastery podcast. Glad you're here, as always. Right. Got a great interview today. A friend of mine named Jason Courtney, he's from Saint Louis. He is one of the biggest creative real estate investors in the Saint Louis area, and I'm really glad to have him on the show. We're going to be talking about why would sellers ever want to sell their house on terms in the first place? All they need to do right is just call a realtor, stick it on the MLS or rent it themselves or sell it themselves. Why would they ever want to give away any equity to some stranger? Why would they ever want to trust somebody to make their mortgage payments for them or to take care of the property for them? Who in their right mind would ever do any kind of creative financing, creative real estate deal? You know what I mean? We're talking about lease options subject to owner financing. If you're new to real estate in those terms, don't mean anything to you and you're already starting to check out. Just hold on. Wait. Because there's a lot of sellers right now that are wanting to sell their house but can't for whatever reason. Maybe it's divorce, job loss. Something's going on with the economy. Maybe they lost their job. They have to transfer. They tried their house has been on the market now for three or four months. I just saw an article in the Wall Street Journal that house prices are at their lowest in terms of price declines in 11 years. And in other words, that we've seen such rapid growth. Now the growth is reversing and it's depending on the stats you're looking at, prices are still higher than they were 11 years ago. But the declines, it's like the certain number of consecutive months of decline. So it's getting worse. And the interesting thing about real estate, it's not like the stock market or cryptos. It goes up and down on a dime, like in in you know, it goes up and down within days. Real estate is much slower. So you can see months in advance when the trends are starting to change and the trends are changing, which means if you're a real estate investor, if you're looking to buy homes, maybe you're looking to buy your own personal residence as a lease option or with owner financing, which I have done twice. This house I'm in now, we bought with the lease option, changed it to owner financing and eventually got traditional mortgage with it before the rates went up. Thank you, Jesus. But anyway, this is important stuff to learn and you need to understand that sellers will sell their house. Not everyone will, but there are motivated sellers out there that will sell their house on terms and sometimes that is the best thing for them. And so Jason and I are going to be talking about that. He's going to be teaching you. And I asked him, I said, let's turn this podcast into like a class so we can just let's teach people how to do what you do. And if you stay tuned, we're going to actually call some sellers live right here on the podcast. You can watch us do that. It's going to be fun. And we are live, too. As I'm doing this, I'm out on Facebook and YouTube. So if you are watching right now, type in the chat or the comments, say hello, tell us where you're from. Looks like we've got somebody who says, Hey, it's me. How's it going, pal? I don't know who you are. Sorry, Facebook user, but hello, back to you. So tell us where you're from and if your name doesn't show up. I'm sorry. It's because of the privacy settings and things like that. Maybe that was that was Jason who sent Did you send me that comment, Jason? Now, anyway. One more announcement, then we'll get started here. Got a implementation workshop coming up with myself and with Gavin Timms. Gavin and I did. We've done that for these four or five of these over the years. We just did one a couple of weeks ago. It was a blast. It was so much fun. We keep them small, just like 12 people. You come here to St Louis, we get into a conference room and we just roll up our sleeves and we start working. Where if you don't have leads to work, we will give you leads. We can look at houses or land, but we're going to actually dive into deals. Start talking to sellers, talking to realtors, talking to buyers, making offers. You're going to walk away with some legit work actually done. We're going to actually call sellers live. So all of you, most of you already know in your head what you need to do. You just need to get a little bit out of your comfort zone and get out there and actually do it. So that's what this workshop is all about. We have a next one coming up May 8th and 9th here in Saint Louis. Go to Joe McCall dot com slash workshop, Joe McCall dot com slash workshop and you'll see there's a video there it explains what it is that we're going to do. We're going to help you set up the systems. We're going to give you seller leads. If you don't have them already, we're going to actually call sellers live. We're going to call a lot of them. We're actually going to make offers. That's what this business is all about. And that's what this podcast is about, isn't it? So if you're interested in that again, go to Joe McCall dot com slash workshop, Joe McCall dot com slash workshop. All right. And Thomas is here from Webster Groves which is in St Louis on LinkedIn. What's up Thomas. You're more than welcome to come to the workshop. It's not free but go check that out and maybe we'll see you there. We'll go hang out at St Albans. I have lunch over there. Okay. So let's bring Jason on. Jason Courtney. How are you.
Jason: Joe, how are you doing?
Joe: Good, good. You were on my podcast a long time ago. Do you remember that?
Jason: I do, actually. That was a real tough time for me. And my dad was super sick. And, you know, I remember you digging into my personal life and I'm thinking, Joe, why did you have to do that? But I'll tell you what, it was great and it was freeing and it was fun to talk with you about it.
Joe: So that was March 26, 2018.
Jason: Oh, man, it was that long ago.
Joe: 2018. Five years ago. You got an amazing story, too. We have a mutual friend I think I met. I knew him before you, but we just met each other. I probably had, like, a life and near event or something like that. Sean McCloskey was involved in.
Jason: Well, I'll tell you, it was coaching for coaches, right? You and Sean were holding a coaching event and I got there the very first day, went through about an hour or two or four training and I get the call that my dad's not going to make it through the night.
Joe: Oh, that's right.
Jason: And I took off. And I have to tell you how it was very gracious of you afterwards. Right after all that settled down to honor. Hey, man, you were in the class even though you didn't get to learn from everybody. Come on over to my house, and I'm going to help you get started. And actually, that's when my coaching business took off. Right. Thank you, Joe.
Joe: Nice. All right, good.
Jason: So and coaching business is going great again, which we structured a little differently. So you know, more people now, but.
Joe: Awesome, that's so awesome.
Jason: You forgot how pivotal you were to my business.
Joe: I appreciate that. In case you guys are wondering, you should go check out my episode with Jason. It's episode 609 called Doing Deals with Jason Courtney. And I tell he told a story. There is testimony. It's pretty amazing what happened and some of the tools he's using then use using that is probably different. Are you still using auto marketer? Is that what it's called now?
Jason: No, the auto marketer is no longer around. That was a tool that was used that was generated by my coach, Joe Crow. If you're familiar with Joe, he taught me a ton when it came to creative financing and I built my entire business office, $297 course, and I finally made enough money to go meet him. And he couldn't believe that I had done what I had done with that $200 course. Right? So he puts me all over the Internet and then now I'm a coach, right?
Joe: So we're still doing deals, too. And that's why you're here. And that's why we're talking about why a seller would ever want to do a creative financing deal or a lease option or owner financing or something like that.
Jason: They won't. You know, I mean, the biggest obstacle for my service is why would anyone give me the deed to their house and leave the loan in their name? That's absurd. I would never do that. Right?
Joe: Yeah. So why would a seller do that, though?
Jason: Well, there's tons of reasons, right? And motivation is always the key. Right. And one of the things I know that you push a lot is finding out what the motivation is and use that to solve their problem. And that's how we do deals. We solve problems. But here's what I tell every single one of my students, and you'll see that I try to keep things simple because people think these are complicated transactions and they're just not they're also not rare transactions. They happen all the time. So I always tell every one of my students that every single seller you talk to us in one of three situations, right? And let me run through those if it's okay.
Jason: Yeah, sure. So they either own the house free and clear or they have a mortgage with no equity or a mortgage with equity, there is no other option. Right. So they're in one of those three situations. And the sooner you find that out, the sooner you're going to know how to structure that deal. And the more information you get for them, how to structure it in a way they can say yes. All right. So let's run through each one. Yeah. All right. So if somebody else's house free and clear, this is a simple deal. It's owner financing. They give you the deed to the house. You put a note in place which is prepared by the title company, and you agree on the terms, and it's a done deal. Okay.
Joe: So explain why somebody would even want to do that to begin with. Why not just sell it with a realtor, get all their money?
Jason: Well, what are they going to do with the money after they get it?
Joe: That's good.
Jason: Right? So they have to do something with it. And what's the most safest? One of the most safest investments a human being can make?
Joe: Real estate.
Jason: You got it. And so when they find out that you're willing to partner with them on a real estate transaction, that they don't have to do any work for and they generate an additional income on a house they didn't even want anymore right there. They just can't believe it. In fact, I had a seller. Tell me today, Jason, this sounds way too good to be true. I said if I had a quarter for every time I heard that, I'd have at least a hundred bucks, you know? So it really these are not complicated. And even for me, Joe, when I started. Well, I'll tell you just a quick story. You know, I can get winded, so feel free to cut me.
Joe: That's good.
Jason: When I bought that $297 program, I was broke. I had just ended a partnership with a family member, which we talked about in the other Comcast background. And I was broke. And so I remember going through the content of this program thinking this was the dumbest purchase I had ever made in my life. No one's ever coming giving me the deed to their house without giving them any money or something. Right?
Jason: And so even me, even I felt like this was absurd. No one in their right mind would do it. And let me tell you, after I closed my very first deal, I realized that even I would do it. You know what I mean?
Jason: I would do it. In fact, this is probably going too far, but I already have a significant portfolio. Guess what I'm going to do with it? After 26 and a half years, I'm going to sell it in order. If I think.
Joe: The other big thing is you mention this, I think maybe, but like the tax hit.
Jason: We're going to get in to that. Yeah, we're going to get into that. That's another reason why someone would do this deal. So how would you like it, Mr. Smith, If I bought your house and I paid your capital gain tax for you and you get to keep it all. How about that? Yeah, the tired landlords will get into that. But I was going to keep rolling through these things. If it's okay with you, Joe.
Joe: Yeah, that's good.
Jason: So someone who owes their home free and clear create a financing offer is as simple as owner financing. And then how you adjust those terms is up to you and the seller. All right, so someone has a mortgage with little to no equity. Okay? Why would somebody do a deal like this? Well, the number one reason is what options do they have? They have to move. Maybe they got a relocation, maybe there's a divorce, Maybe, you know, there's all kinds of reasons why they have to move, but they're either going to bring money to closing to move, or they're going to work with me. Why wouldn't they work with me? Right. So and Mr. Smith, you're not going to bring anything closing. So some of the loans that fall into this category, Joe, as you know, are villains, right? They don't bring any money down. And so they have no equity and they get deployed a year or two. Right. So low hanging fruit are Air Force bases, army bases, things like that, where these guys are buying houses and then get deployed. I have a student that built his entire portfolio on an Army base in Junction City, Kansas, right now. He made one contact, Joe. He went in and talked to the guy at I guess, at the base that handles the housing. And he told them, here's what I do. Here's the situation I believe that your Marines are in and here's what I can do for them. And every single time he has someone that didn't want to risk their house. Right. But they wanted to sell it. They sent him the deal, built his entire portfolio of one relationship. So you see people who have no equity or very little equity any let's say they have some. Right. And so I'll still take it subject to and I'll give them a little cash at closing. So let's say they have 10,000 an equity. I pay $0.50 on the dollar, I'll give them five grand. But guess what? Now, five grand is not coming out of my pocket. I'll talk more about that later. I've put $0 $0 in Jason's properties, and we'll talk about that later. Cool. All right. The third option, right, is someone who has a mortgage with some equity. All right, So this is a combination of subject to an owner financing, huh? So you take their notes subject to and then you put a second mortgage in place for their equity. This is how simple. Creative financing is. Joe There's one of three situations when you find out which situation, then you know exactly how to structure the deal. The nuances are part of building rapport. Right. Right.
Joe: Let me ask you a question. Somebody is going to be wondering, well, why don't you just get a bank loan? A lot of realtors will say, why don't you just go get a loan from the bank? What's the why do you have to do this?
Jason: So you always ask the best questions, you know? This is the beauty of.
Joe: Because it's been asked 100 times.
Jason: Yeah, right. Okay, so here's why. If I go to get an investment loan, right, I'm not an owner occupant. I got to pay two points over prime. So it's better for me to take over a mortgage at 3% or three and a half percent so than it is for me to go out and get a deal. That's what my favorite deals are, ones where there's a 30 year note. They've already paid ten years of interest on it. Right. So why would I start that loan all over again when I can assume that one is saving myself 100 grand in interest that I would have paid if I had? Yeah. So there's huge benefits to why we assume people's mortgages. And guess what? I tell the seller, this is why I'm doing it. They're like, Oh, that's smart. You know, it's like truck one. He said, I don't pay taxes. That makes me smart. That doesn't make me a they're smart. So I just tell these people exactly what I'm doing. And I know you believe in this, too, But honesty by far is the best policy. And so when I sit down with a seller, there's nothing I'm doing. They don't know. I explain everything to them. And if for some reason they still have apprehension, I'll pass on that deal. I'll move. You know, the seller traditionally, if you want, you know what happens most of the time? Do they call me back and they say, You know what, Jason? We are going to make more money with your deal and let's talk. Right. But I don't push deals. I'm not aggressive. Signed my contract right now, or else I just go in. I tell people exactly what I'm doing and I've got an excellent track record. Here's some people I've worked with before. If you have questions or you think, I'm not being perfectly honest, here's some you hear some people have already done this deal. Talk to them, watch them. They like it. Right. So anyway, I don't know if that answers the question, Joe, but the reason I don't go get a bank loan is because it's not as profitable.
Joe: Well, now, like, are you just completely honest with them to let you know exactly what it is you're doing and you had nothing to hide?
Jason: You know, my wife, if I go looking for a car, she can't stand salespeople. You know what I mean? Said, Oh, they're guys slick, blah, blah, blah. And I only want to talk to. I love talking to salespeople. She hates it. And I don't want anyone to ever feel that way about me. You know? I don't want them to hate me. I want them to feel like I'm a problem solver. And if I can't solve your problem, guess what I'll do? I'll refer somebody else that might if I know, because that relationship is going to, you know, a lot of my business. You know, we're going to talk about marketing and stuff later, but I don't work for that. I'll have to. They say, Hey, Jason, about our house, call him. And so anyway, my portfolio is completely different. It's more diverse than it's ever been. And, you know, I just I just don't market anymore. But I have to teach my students who don't have those relationships. And we have some really cool tools for that. Hey, did we tell anybody that were they're getting a free book?
Joe: Oh, no, let's do that.
Jason: My mama said you got to give it away, too. For free. To all of my listeners, I was like, okay.
Joe: Okay. That's right. I forgot. And here is the banner guys. What's the book called?
Jason: It's called Truly Financially Free by Jason Courtney. It's on Amazon. They can buy it, but they're going to get it for free with you. So this book is.
Joe: Deals with Jason dot com slash Joe.
Jason: That's it yeah they type in Deals with Jason dot com for slash Joe and they get the book for free.
Joe: What's it called?
Jason: It's Truly Financially Free and it's avoiding the rat race and traditional path to real estate investing. This is everything I have learned Joe in the last 23 years. Yeah. And, and you know this because I know you've written a lot of books, but when I edited this book for the third time, I almost wept a little bit because I said to myself, I wish someone would have handed this to me, you know, when I first got start. But then I here's what I followed that up with. I'm a bit stubborn, and so I don't know if I want to listen. I think I sort of tried to learn the hard way, but there's so many great real estate's phenomenal business to be a part of in any in any category. Here is what I mean by that. My coach told me a long time ago, his name is Mike Bricker, very first real estate coach. I remember higher than I was the hundreds and thousands of coaching. But with him, he says, Jason, just pick the you know, there's a million ways to make of your real estate. Just pick one and do it well. And it wasn't until I niched down Joe where I really go, well, see, you know, I mean, and so I made a lot of money in a lot of these different businesses that are in this book. And I explain each one of them that I've been a part of. Let me tell you what to have been a part of just to give you a plug land buy. So I can't wait to learn about that. You and see what that's all about. But it's currently not in my vision. But next year I'm going to have a section on my vision and I might add that to. I just started by businesses. So that's my new gig, right? Buying businesses creatively, not just houses, but.
Joe: The way your books I'm looking here, you sell it on Amazon for 20 bucks and you're giving it to everybody here for free.
Jason: Joe that's the way we roll, right? Yeah. And here's why. Joe You got to be perfectly honest with you here. And I hate it when I say that. I'm perfectly honest all the time. Not just now, but you really help me get off the ground with what made a difference in my life, and this is the least I could do, is give this book away to your audience. So I appreciate the opportunity to talk about it and to be on the show. So also, we're going to give them my script, right? So when I call people, when I say what I teach my students to go through and I tell all of my students, read it like a robot, right? You don't have to get all fancy and nervous on the phone. Just start asking the questions. And here's one, Joe, that I think you'll appreciate that I run into all the time when I ask somebody, Do you still have a mortgage on the property or what do you still owe on your mortgage? Some people don't want to tell you. They're like, that's personal. It's none of your business. Right? But how you ask that question is really important. My students will say things like, Do you mind if I ask you? No, no, no. They don't get an option. You tell them. Do you still have a mortgage on the property? Yes or no? Yes. How much do you still owe the mortgage? And the guess what? Nobody ever doesn't tell me that. But when you say things like, Do you mind if I ask you? Well, of course, if mind you know, you're putting this that it's okay to mind. Yeah, we're going to make sense. Yeah. So the words we say are so important. And I've learned that through, you know, studying content or text campaigns. Right. And which ones are effective and which ones are the one word can either get you a bunch of leads or one word could get you zero leads. You know, maybe it's so important, you know this when you agree.
Joe: Oh, yeah, Very important. Very important. So what do you say when you ask them the mortgage question? Just ask them straight up. What do you do. There's no mortgage.
Jason: Yeah. There's no option to not tell me, you know, and I say that with not dominance, but with confidence, maybe.
Jason: I'm trying to help you and I need this information. Now, if somebody does give me resistance, I say, Listen, my offers not based on what you owe. My offer is based on fair market value. So don't hesitate to tell me it's not going to impact my offer. It's going to impact how I structure it, that's all. So you have nothing to fear by sharing those numbers with me. And we will do some of that today when we do live calls probably. Yeah. You know, so again, a couple more things. So before we can talk about sports, go winners. But people who just bought a house that don't have any equity can afford a real estate agent. You come in and you save the day for those people. Right? So those are the easiest deals to do or subject to deals where they have no equity because you're the only one that can help them. Now. They're apprehensive sometimes, right? So you have to like, what if I want to go out and buy another house, you know, and this loan is still in my name, right? Because buying a house subject to the existing liens and mortgages does not mean that their name comes off that mortgage. All it means is that you're being added to that note as a third party and you're now contractually obligated to make the payments on their behalf. Right. So when the mortgage broker pulls their credit report for the new house and they see this loan, I don't know which you're going to qualify. Mr. SMITH Right. This is what they all think, right? And so I've never bought a house from somebody subject to that was unable to go out and buy another house for two reasons. One, it's a sale, right? To it could be looked at like a rental property if the underwriter doesn't want to qualify it as a sale. Right. At a minimum, they can look at it as a rental property. And what that means is whenever the monthly payment is, 75% of that monthly payment gets removed from their debt to income ratio and 25% stays off. Right. That's the worst case scenario here. The beauty of that is most people qualify for way more than they want to borrow anyway. So that 25% is irrelevant. That makes sense. Yeah.
Joe: You know, I think about this too, because I just started offering when I make an offer for land, I usually just make them a cash offer. But I've been offering a higher price with owner financing lately and just started doing that within the last couple of weeks. And I'm thinking, well, why not? You know, and the I'm already I'm buying land at about $0.25 on the dollar. So my cash offer will be about 25 to $0.35 on the dollar. We get an average of one out of 25 to 30 accepted offers that we make. Right. So then I've thought about, well, maybe I'll just double my offer with owner financing. In other words, if it's worth ten simple numbers and it's worth ten grand, I'll offer them 2500 cash or 5000 without a financing. And I still have plenty of equity in there. Right. But I'm doubling my price to the seller, and I have. Zero. I don't use any of my own money into that deal. We did get one accepted. We sent out about 12. These are all the all these offers that we've been sending have been follow up offers, but got one accepted. Looked into the deal, wasn't going to be a good deal anyway, so we backed out of it. But very interesting. This is really, really relevant whether you're doing houses or land. And I just want to make sure you guys are catching this. This is phenomenal. This is really good.
Jason: Let me tell you something right along those lines, Joe, I would encourage you to write more of those and maybe even go up more than 50%. Right. Because if it costs you nothing and you do 20 more deals, it was probably a better way to go. But wholesalers that join my coaching program are almost millionaires overnight. And here's why. I can pay 100% of fair market value for a house they can't, right? I'm not suggesting people pay 100%, but I can and I can still make money on that deal. So wholesalers who are out there paying $0.70 on the dollar right now, they're freaking out. They're like, Oh, we're going to have to pay 80 or no one's going to accept my offers while we're up. What if you paid 90? What if you paid 95? What if the seller subordinated the entire purchase and you do get a deal and 0% right. They are for you. There's all these different options that these wholesalers don't even look at. So I'm not sure if you're familiar with Lance Wakefield. Maybe he was. I'll be guy. Literally. This guy became a multimillionaire overnight and all he did was go back through his list of deals and he wasn't able to negotiate that $0.70 on the dollar made creative financing offers at $0.95 on the dollar and fill them with lease option tenants or lease purchased tenants. And the guy's whole life changed, you know. And so. Jeff Gardner You know. Jeff.
Joe: Oh yeah.
Jason: The other one, he's completely you know, what happened is Sean talked about my business at LB2 and all the wholesalers in the room, including three doors. So I actually ended up signing the contract listed me to teach them what I was doing. Right.
Joe: And let's talk about this. So what is your minimum criteria for doing a subject to or buying a house? Is the owner financing? How much do you have anything like equity that it needs to have or a cash flow that it needs to make?
Jason: Well, I'll tell you what I focus on. If it's pretty or not, I don't like buying ugly houses. I don't like doing any work at all. I want to move my people around it. And so when I buy a house creatively, depending on what I'm paying for it, I make the seller responsible for it to pass this inspection and I move my tenant right in. So it costs me no money and my contract contingent upon me finding a suitable tenant for the property. So I don't close unless I've got a buyer ready to go.
Joe: All right, good. You're not just you're still it's got to makes financial sense, right? So what financial senses I have to make.
Jason: So I like to create at least a $250 cash flow, a monthly deal. I'll do a 0% deal because I'm depreciating it, right? I'm writing off the interest that I'm paying. So they still even if you make no money at all, they still profit you over time, right? My tenant buyers aren't getting appreciation until they get to a 10% down payment position. So I'm usually, especially lately, Joe, I mean, my portfolio has gone nuts since 2019 because the appreciation has been ridiculous. 11% and 20 12% and 21 and then 22 is nuts, right? So it's like, you know, if I had to buy one it at 100% a fair market value today, can I still make money on that deal? 100%? Because as long as I have somebody in that property. Yeah. I can't remember It was you, Joe, that Here's what I know you taught me. Keep it small, Keep it all. I have never forgot that. I've never forgot that. It's one of my mottos now, you know, it's like I have students like the two I mentioned earlier who have massive portfolios, hundreds of properties, right? I don't have hundreds of properties. I have I mean, I have quite a few, but I don't I don't do what they do, right? I have my personal portfolio covers all of my personal and business expenses, so I don't have to work. And I have portfolios that I'm partnered with other people that generate income. And I own four companies now. So my portfolio is small because I like that I can manage it myself with the VA. I mean, and it's so comfortable. So keep it while. Keeping all has been revolutionary for a long time was, you know, there's 100 ways to make money in real estate. People want to do it well.
Joe: Right. So you're mainly concerned about the cash flow, right? It's got a cash flow. At least 250 bucks a month.
Jason: Well, when you're starting your business, all my stuff is cash flow. Is everything, right? Getting 0% loans, tired landlords, which we haven't gone into yet, but tired landlords. Oh, my gosh, Joe. They're low hanging fruit, like laying on the ground, but they're not touching the grass, low hanging fruit because they have multiple properties. They're already investor minded. As soon as they sell, they have to write a big check to Uncle Sam that we eliminate. They're waiting for us here. I really can't wait for someone like Jason to call me that. I can turn my entire portfolio over to this free and clear I. Can sell to Jason on owner financing From a tax perspective. If there's any CPAs on here selling it on an installment sale. Right. And then the interest that I'm paying them, I get interest only loans from all of them because they don't want to have to pay capital gains or the principal portion of my payment. So my cash flows high and once like the interest that I pay them exceeds their capital gains tax, they just build it or I pay them off, you know. But that's ten years. So that's a ten year interest only loan that, you know, someone's got 12 properties on 12 properties. I mean, so retired landlords are just when I was doing the Face Timed landlord on his first deal about you Lucky Duck, you know what I mean? Like I always I want to have a degree, you know. Yeah, but I got hung up on cussed out, you know, so I got thrown out of my house on time, you know, because I just didn't know what I was talking about yet. But I was desperate, you know?
Joe: Yeah, Well, let's talk about what you say to sellers. All right. You've got a seller. Tired, landlord, the motivated. Do you have a script or what do you go through when you start talking to them?
Jason: Well, depends on the person. Right. So I find out immediately which one of the three scenarios are they ever Do They own it free and clear? Do they have a mortgage on the property? And if so, do they have any equity? That's I got to get there as quick as possible so I can get my brain wrapped around what we're talking about. Is it their primary residence? Right. It is their primary residence. I'm not going to get into capital gains talk because it's irrelevant. You know, they don't have to pay capital gains on their primary. But if it's a tired landlord, we go right into what his exit strategy is. Right. And then I figure out how to structure my deal based on is trying to achieve. Right. So it depends on the situation. But tired landlords do not like paying taxes. And so capital gains talk for them. They understand it. You should understand it. I teach all my students what it means, how much it is, what they can expect to write. And the more than my student knows about that, the more comfortable the tired landlord feels about doing business with them. That makes sense. Yeah. So education on, that's really important If you're going to target tired landlords, which I think is the lowest hanging fruit for our business because it can change your life overnight.
Joe: What are some of your favorite ways to contact tired landlords right now?
Jason: Non owner occupants. Right.
Joe: So you send them a letter or a postcard column?
Jason: Yeah. I don't do any direct mail at all. I know that's big and I probably should explore it more, but I never have. So all of my leads come off of Zillow Craigslist for sale by owner. Become local newspapers. If I see signs in people's front yards and I have my software that I use the machine pro and I just if I'm driving around, I have I can just throw that phone number into my little machine pro and it starts communicating with that person. And I only talk to the people that want to work with me. So the machine pro kind of gets them through all the what is terms, you know, why would you consider doing an offer like this, blah, blah, blah. And if they have any interest at all, then I call them. But if they're like, No, we're just going to list local agent. And I'm like, Why would you throw that money away? You know what? If I could pay full price, no commissions, blah, blah, blah, You know how the lingo goes better. Yeah. All of my leads are people who have given me their phone number, so it makes sense. Really, really important in today's texting world, right? I don't know if you're familiar with the TRACE Act, but AT&T and T-Mobile are really cracking down. Oh, yeah, legit. So I always solicit people that put their phone number out there so that I don't get fined. You know, I don't skip trace. I don't do any of that. Now is beauty about the mailers is they call you be sure I mean so you are you're safe. Sure right. And that's why I want to explore that job and I have is that might be something I ask you about. Yeah. I mean, I'm buying any of that stuff. I do all free, free marketing. Everything I do is free.
Joe: Okay. All right. So you got him on the phone. You start talking and you find out how much they owe. And the house did have a mortgage is a free and clear. What do they owe on it? And when you are talking to a seller, are you focusing on like building rapport York with the conversation going an hour long or are you trying are you more quick to the point, you know, they're not ready to do a deal today. You're off the phone in five, 10 minutes, will you?
Jason: Joe, last time we talked about this, Claude Diamond called me and gave me an earful, you know?
Jason: So I don't know if you remember that, but. But I will talk for as long as they want to. I don't cut them off because this is the most expensive transaction they'll probably ever make or have made. And it's important to them. I need to make sure it's important to me too. So now, if it's grandma who has no friends and no one's called her in six months and she just wants to talk about the weather, I can get through that pretty quickly. But if we're talking about the deal and we're talking about solving the problem, I don't care how long it takes. So clauses like in 30 seconds, you're going to know. I said, okay, so it's not going to work. She later as a problem, he says, Hey, man, I'm from Jersey or New York. I can't remember. What do you want? You know, what's a matter? You get to him. And I really hit it off after that. And I really love court and a lot. Yeah. So but anyway, I was just. I never met Claude before. I just watched some of his calls on YouTube. I thought, Golly, how does this guy ever get a deal? You know, man, he does.
Joe: He does. All right. So you talk to the seller, you build some reporter Do you go do you make an appointment to go see the house? You try to go meet with them in person?
Jason: Yes. I never go look at a house until I got them to agree that they would consider an offer on terms. I used to go to every single one show and I told my students, get the practice, you know, get thrown out a few times. When that guy threw me out of his house. I learned a lot that, you know, And then he and he did it nicely. Here's what he said to me. He says, Jason, I know you don't know what you're talking about. Come back to me in six months. If I still own this house, we'll talk. But I got. I got to go. And that was. That was it, right? So I went in there with my spiel, thinking I was this slick sales guy. I don't know what I was thinking. I was just winging it. And he saw through me really quickly. But I remember saying to myself, I should know what I'm talking about better before I go in. Now there's I'm probably contradicting myself a little bit here, but my students that over educate themselves and never go look at a house. They never do a deal like you got to take action at some point. You have to say to yourself, I'm in and just start doing it even if you don't know all the details. So now the beauty of having a coach, all of my students, when they're filling out their sheet, they say, My partner and I are interested in your house. I just got some questions to see if it fits our criteria. If it does, you know, we're going to make you an offer today or tomorrow. And I'm the partner, right? So they get the data and then they call me and they say, Hey, here's where we're at on this deal. Is this a good deal or not? I say, yes, Here's how you structure it. And they go out and then they go to the house, They look at it, do repairs, and then, if necessary, puts all the repairs off on the seller and then get the deal closed. So, yeah, it's just so hard when you don't have any credibility, you know, I mean, so we try to provide that for all of our students.
Joe: So the credibility you tell your students to say is me and my business partner, they refer to this you as their partner, business partner.
Jason: Well, I had to do the math the other day on my how many deals I've done in real estate. And, you know, bigger pockets is always asking me how many deals are done. So I've done 1780 something deals. I know I'm probably within 20 or 30 deals, and I was hoping to say thousands, but I can't because I'm not in the double digit yet. But no, that's phenomenal.
Joe: Good for you.
Jason: Yeah, I've done a lot of transactions and this includes the stuff I write about in the book, write about other businesses that I've done. I haven't done 1700 creative financing transactions, but from custom home building to hard money to flipping properties, and I flipped over 300 properties myself, you know, So it's like I have the pedigree of what I loved. And I have to tell you, I said I do mention a little bit in the book I love flipping houses because I like taking a piece of junk and turning it into a beautiful piece of art that makes sense. However, it was by far not the best use of my time. It's certainly not the best money I've ever made. And I had no life. I almost got divorced during that time because I was doing so many deals, you know, I mean, and I never saw my family. So now I guess what's secondary to everything? My family's first. I've never been in that position until I became financially free. I had to go to work. And so as great as all those other real estate businesses are and they are great, like if I had to choose between doing a real estate business versus going to a 9 to 5, it would be real estate a million times over because you're in control. You know what I mean? You're not punching the clock. You can't get fired, you know, which is kind of cool. It's just a beautiful atmosphere. And the people that are in it, I mean, I don't know how many times you've had somebody not help you, but nobody doesn't help us like anyone in our industry knows the grind and they're like offering to help all the time. I mean, it's a beautiful place to live, period. You know, if you're happy with your job, get into real estate somewhere here. I mean, because it is a it's like a family almost. But I don't want to say it like that generically. But I mean, I've never asked someone in real estate for help. They said, No, Jason, sorry, Unless you join my coaching program or whatever, I'm not going to help you. They always try to do whatever they can for me right there at that very moment, which is what if we're trying to structure deals, Right.
Joe: Well, listen, do you want to call some sellers.
Jason: Sure. Yeah, you bet. So here's what I was thinking we would do. You tell me if you're okay with this.
Joe: Yeah, but.
Jason: You pick them, you pick them up, so find houses under half a million bucks. So we're actually. I don't care, because in St Louis or not, But I'd like for you to pick Saint Louis because I'll probably buy it if we get to it. All right. Well.
Joe: I've been playing around here with Zillow a little bit, and let me get I don't know.
Jason: We're playing another screen so I can.
Joe: Move this one here. Boom. Guys, if you have questions or comments, please type them in the chat. Thomas Wilson, by the way. Hey, what's going on? Guy I used to work with back in 2008 when I had my job. Looks like you're doing really well. Thomas Primavera as a scheduling software. I am not doing primavera scheduling anymore. Cool. All right. I'm a share. My. I just had to click this. Boom. How about that? All right, so this is Saint Louis. I'm looking at for sale, looking at three plus bedrooms. Is that right?
Jason: Yeah. Do you want me to talk to houses that are listed with agents or for sale by.
Joe: Let's do for sale by owner. I'm looking at just homes and we click right here by owner. And I'm going to uncheck new construction, foreclosures and auctions and coming soon. Is that okay? Sure. I don't understand. By owner agent listed.
Jason: I really don't either. Unless its owner is owned by an agent. Yeah. I mean.
Joe: Yeah, it's just weird. I'll do it anyway.
Jason: Because of the market we're in.
Joe: Yeah. Click apply. Not a lot of them, but I must zoom out a little bit here. There's more in downtown Saint Louis. I can zoom out more if you want. Now, what was the minimum price you wanted?
Jason: Anything under half a million. Those are easier to do. But let me tell you, the luxury houses that are between 701.5. Huge moneymakers. Huge moneymakers. So the problem I have had with those, my students get scared. You know, I'm like, listen, you don't close the deal unless you've got someone, you know, paying the note. So and that we take on those, Joe. I mean, we could have a vacancy for a year and a half and still break even in our area.
Joe: Oh, yeah. And the sellers who own those bigger homes, they have more financial resources many times. Right. And they and you'd be surprised how many of those really large homes are owned free and clear. And they're taking that. They're going to take a big wash if they have to sell it and pay capital gains on it.
Jason: Yep. And even if it's their primary residence where they wouldn't have to pay the gains. Joe, they're investor minded people, right? They're not. They're not. They're smart. The smarter the seller, the easier this business. You know what I mean? Yeah. So. All right, here it is. Randomly pick one, you know, Or if there's one that you want me to try to buy, you know.
Joe: Here's like, Saint Louis. Good area. Good criteria.
Jason: Okay, though, let me tell you the things I look for. First thing I look at days on market, which is, you know, and then I like to go to the map. So this house is three bedrooms, three baths, 1700 square feet. So on the right, if you scroll down, you'll find a map and then the top right corner of that map, you'll see a little square click on that and then hit a lot lines. And this kind of gives me an idea of what Zillow thinks these properties are worth, right? So, yeah, it certainly you and I both know Zillow's never been in these homes. They really don't know what they're worth. They're doing their best guess based on mastery. But it just helps me to see is this guy asking $100,000 more than every other house? So if so, do I want to waste my time following him? Probably not. Let's wait till he's on the market for four months. Then we'll call him right now, because no one's buying that house. Now, in today's market, some people are paying 30, 40,000 more than asking just to sell your house. And let's say Louis is one of those areas, you know. Yeah. So people are trying to get $100,000 more than their homes worth, and they're getting probably close to 40 or 50 in some cases. But let me talk about that real quick, Joe. But let's go ahead and go back on the property. Let's get the owner's phone number. Then we'll call. But somebody who's paid $50,000 more than asking, the bank does not appraise that house for more than what it's worth. Right. So these people have to bring this cash to closing. So these people are somewhat upside down. They want. Right? Yeah. Low hanging fruit for sub two deals right now, taking deals that are less than a year old. Sub two aren't that great, right? Because they've got six and a half percent raise or whatever. So in some cases, you may want to go to the bank and get the money. You just buy it if you can buy it cheap enough. But ultimately I never go to the bank for money. Joe So if I can't make the deal work and the math doesn't work, I just don't do it. Yeah. So, okay, you find the owner's phone number, it's kind of small, so I'm going to have you read it off to me. I can't see it too. Great.
Jason: Five, 73732.
Joe: Two, five three, five, 693.
Jason: Five, six, nine. Okay, let me scroll back up to the actual address of the property.
Joe: Oh, hold on. There it is.
Jason: Okay. All right. And I'm going to make this call and put my phone here on speakerphone. So if you can't hear me for some reason, can you send me, like, a chat or something like this? Okay, got it. It's not only about the ringing.
Joe: I can hear it.
Sean: Hi, this is Sean.
Jason: Hey Sean. My name's Jason. I'm calling about your house. It's 710 country field drive, is it still available.
Sean: I literally just accepted a contract this morning.
Jason: Oh, man. Good for you. So, okay. If something happens, would you give me a call? Can you. Did my phone number come up on your caller I.D.?
Sean: Yes. Is it Nick?
Sean: Yep. Yeah. I heard you call. Yes. Okay.
Jason: Yes, I'm a buyer, so the deal falls through. I want to hear about it.
Sean: No, no. In all honesty, I went was kind of there was a couple of buyers that got in touch with me this week, came in and they like offering like 22 above what I asked for so.
Jason: Good for you.
Sean: Pretty good situation for going something on my own. So.
Jason: Yeah, nice job. You know.
Sean: There is a contingency though. So if anything does happen, I will absolutely keep your information.
Jason: All right. I really appreciate that. Okay. Well, good luck to you and all, 22 grand over. That's amazing. Nice job.
Sean: No, I. I wasn't turning it down.
Jason: All right, well, thanks for taking my call.
Sean: No, not a problem. All right. Bye bye.
Joe: All right. His voice sounded familiar.
Jason: Sean his name was Sean.
Joe: I don't know.
Jason: Where is this one?
Joe: This one needs updating. It's in Baldwin. Okay. It needs updating. I see the inside there.
Jason: Okay. So let's talk about this for a minute. Remember, I don't put any of my own money in houses, Right. So here's what I tell all of my students. I kill. So grandma's house all day long. As long as you can eat off the floor. Right. So if the house is clean, I'm going to be selling it at a discount. But I'm not sure if we've talked about this in the last call job of 40% of the process that we get back have been improved. Right.
Jason: And so why would I spend money improving the house that someone else would spend their money improving? Because they're trying they are trying to get to a place where they own it. Right. Yeah. So, I mean, you know all about that. But so I would rather sell Grandma's house at a discount as long as it passes an occupancy inspection and it's clean, I'll buy it. So. All right. Does it tell us the story about the property and the description at all?
Joe: Let me create potential for an open floor plan needs updating house being sold that is positioned on a sought after cul de sac just under half an acre in Baldwin. That's really good. Newer roof and siding first floor laundry. This was definitely grandma's house kitchen a master bedroom has been added on to. So it's been on Zillow 77 days. Okay.
Jason: All right. For me, number 636219147 owners name anywhere now. Okay. All right.
Joe: And it's on 323 Ranch Court or something.
Joe: Okay. You hear? Okay.
Jason: They hung up, we call them right back. They picked up and hung up.
Jason: Yes, My name's Jason. Yeah. Can you hear me?
Seller: Yeah, I can hear you now.
Jason: Yeah, I'm calling about the house at 323 Ranch Court. Is it still available?
Seller: Yeah, as of right now, it still is. Yeah.
Jason: Okay can you tell me what's the story on it? Is it. I've seen the photos. I looked at the description.
Seller: It's. It was a house that we grew up in, and my. And then my father passed away about a year ago, and so I'm.
Jason: Sorry to hear that.
Seller: That's alright, thanks. But it's been the back part of it. And I think.
Jason: You're cutting out on me a little bit. Can you hear me? Okay?
Seller: But a lot of it's basement. And then the additions were actual crawl spaces.
Jason: You actually cut out on me there for a little bit.
Seller: 2017. The air conditioner of the furnace are not original, but they're probably ten, 15 years old. And the siding's fairly new and everything in the house structurally is really good. Really, the only downside of the house is just the cosmetic portion of it. My dad remodeled it when we moved in, but that was been 37 years ago, so it just needs updating basically what it's at.
Jason: Okay. Have you guys had any offers yet? Hello? Can you hear me? Hello? Man he hung up on me again. I don't think he could hear me at all.
Joe: Yeah, that was weird.
Jason: Yeah, but that's a good deal. We didn't call him back.
Joe: You want to try one more?
Jason: Yeah, we can try another one.
Joe: If the next one doesn't work, maybe we can practice role play. Oh, yeah. This is St Clair, Missouri.
Jason: That's a little far off, but. Well, see those days on market?
Joe: It's on three acres to 48.
Jason: 46. All right. Let's jump on the map and see if he's just out of whack on this price. 48 days, that's a long time.
Joe: This is out in the country, you know, of course.
Jason: Yeah. I think the only reason I want to do it this way, just so guys can see, like if you don't have, like, you know, fancy software to help you do seamers and stuff like that, this is just a generic way to kind of get your brain straight. Right. I just want them to see that they can do this even on Zillow without much fancy software if they don't.
Jason: A big software component, as you know. But though people don't need all those tools to get started, I didn't have those tools. I like them now because I don't like to work, but yeah. Oh, anyway, okay, let's, uh. Let's give them a call.
Joe: So the number is right here. Okay.
Jason: 31450706. Walls Ford Road.
Voicemail: Your call has been forwarded to an automatic voice message system. 3145507069 is not available. At the tone, please record your message. When you are finished recording, you may hang up or press one for more options.
Jason: Yes, my name is Jason and I am calling about a property at 400 Walls Ford Road. You can reach me in area code 31422, 374 or five. 13142, two, three, seven four, five, one. I'd love to talk to you about the property, So a way to hear from you. Thanks. All right, let's try another one. I want to actually talk to somebody. You and I role playing is going to be fun, for sure, but. I think it's important we can actually get someone.
Joe: How about 6312, eight.
Jason: Shoot and love 631 do it all.
Joe: Although they just cut their price six grand.
Jason: Well, that sounds like motivation, doesn't it?
Joe: Mm hmm. Been on the market nine days, though.
Jason: Real estate agents welcome.
Joe: All right, here's the number three. One four.
Jason: Got it.
Joe: Five, four, one four, four, eight five.
Jason: All right. Any name?
Joe: I don't see a name. No.
Jason: No big deal. Can you blow up the address from inside we go. Perfect. Thank you.
Voicemail: Your call has been forwarded to an automatic voice message system.
Jason: Maybe one of them will call back.
Joe: His name is John.
Jason: Yes, this message is for John. I'm calling about 4823 Stan Hope Drive. I'm interested in purchasing the property. You can reach me in area code 3142, two, 374 or five. 13142, two, three, seven four, five, one. My name is Jason and look forward to hearing from you. Thank you. Okay, Well, we'll see. Maybe some of those guys will call back. So if you want to keep calling, we can. Or if you want to roll play, let's do it.
Joe: Well, let's role play, because this is one of the frustrating things about real estate is sometimes when you have a lot of sellers or a lot of numbers that you're calling and leads that you're working on. It's a numbers game. You got to make deals. I always tell people to, you know, you should make it a goal to talk to five sellers a day. It might mean you've got to, you know, dial 50 phone numbers, right?
Jason: Yeah, that's true. Yeah, I think so. It's important to Joe, right? Like we're in the middle of the day. Everybody's at work. Right. So after five and on weekends is really where you're going to get the action. If you're using like, a derp campaign and you're texting. Some people will do that during work, so that's a little better of a tactic, I think. But calling in the midday is better off, right? You're going to need lots of messages.
Joe: Do you ever do you ever buy or create deals on new construction.
Jason: So I haven't yet, but I have had a couple opportunities where investors loaned the builder the money to build their displays. Right. And they wind up with them afterwards. And so I was able to get a couple under for a student that way. But I personally have never bought any new construction deals. Okay.
Joe: So back in oh eight, No. Nine, I did some lease options on new construction and that was when it was easy.
Jason: Well, here's what I say about that, Joe, and maybe I hope that you'll agree with me here. I think that you will. But you can't have both. Right. So right now, it's hard to buy houses. But guess what? It's easy. Fill it up. You know what I'm saying? So and when it becomes a buyer's market, guess what's going to be hard, right? Fill filling. Right. I'm sorry. Yeah. No buyer's work.
Joe: Yeah, yeah, yeah.
Jason: You can have both. So deal with it. If you're in real estate, deal with it. Don't curl up in a ball. I in. Let me be clear. I've curled up in a ball, right? I've been frustrated. I've said, you know what? I can't buy a house if my life depended on it. Well, guess what? I bought three this week. You know, in today's market, now I'm paying more than I like. Right? But I'm doing it. And here's what I don't care about. I don't care. Well, I re careful. I say this. I don't really care what this house is worth until I have to sell it. And for me, I'm in it for the long haul. So I might be selling this property ten years from now. 15 years from now. Then I'm going to care about what it's worth. So if I have to pay 100% a fair market value, then I can get somebody to pay me more than what my expenses are. I'm still doing that deal today. I'm not paying 100%, but I will, you know, I mean, if it's a good enough deal, if the house is moving ready, if it's a newer house, I'll pay 100% a fair market value if it's in an appreciating neighborhood. Yeah. So anyway, you can't have both is all I'm saying. It is a tough market right now to buy a house, but it is so easy to find people who don't qualify for traditional mortgages that have.
Joe: I remember one time I had two students in the same market. It was actually Denver, Colorado, within one or two days of each other. One of them called me. This was ten years ago. One of them called me, said There's no sellers in the market. I can get tons of buyers, no sellers. Next day, another guy called Same Market said There are no buyers. I got seller leads up the wazoo. I can sell them to anybody. I could not believe it. And I said, Listen, you two need to talk. And I gave them encouragement and times. It's perspective, isn't it?
Jason: It really is.
Joe: We do need to wrap this up, though. Let's do a quick roll play.
Joe: To practice. You'll be the investor. I'll be the homeowner. And you just called me and I'll say hello.
Jason: Okay. You want to talk about the what? The houses. Three, two and St Charles County?
Jason: Okay. And your going through a divorce or what? What do you want to be?
Joe: I don't know. You have to ask. Okay. I'll be all right. All right.
Jason: Ring, ring. Hello? Hey, Joe. I saw your ad in Zillow about your house for sale. You got it listed for sale by owner, and I'm interested in buying it.
Joe: Oh, yeah. So are you a realtor or.
Jason: Nope, I'm an investor. I buy properties for myself and I like to hang on to them for long periods of time.
Joe: All right. When would you like to come look at it?
Jason: I'd love to come look at it like today. Is that an option?
Joe: No, I get off of work around. I'll be home around seven. Maybe I can show it here 7:00 or 8:00 tonight or something.
Jason: Well, I got this rule, I don't like to go look at houses in the dark also. I'm just teasing. But I will go. I'll go at 8:00 and I am happy to come look at the house at 8:00 tonight. Joe, let me talk to you a little bit about what I do because I'm an investor. I buy houses lots of different ways. So can you tell me why you're actually selling the house?
Joe: It's the second home. My wife and I used to live there. We live down in Florida now, and we just. We decided we just don't want it anymore.
Jason: Okay, So do you own it? Free and clear, Joe, or is there a mortgage on it.
Joe: Yeah, we got a little mortgage on it.
Jason: Okay. What do you still owe?
Joe: Oh, I don't know. Why do you ask?
Jason: Well, ultimately, I like to structure deals that the sellers can say yes to. So I like to buy houses. And you have one for sale, right? So I really want to make sure that I'm making the absolute best offer I can to you. And I buy lots of houses, in fact, most of the terms. And in your case, because it's a second home, I think you're going to absolutely love my offers. Also, national, I'm asking.
Joe: Yeah. So tell me more then what? What is term? What do you mean by terms?
Jason: Well, terms can mean a lot of things, but it usually means something like taking over a mortgage society in place of someone else's house, free and clear. Owner financing is sometimes like in your case, it would be a combination of both. So we would assume the mortgages in place, which is why I'm asking you about, you know, if you have more than what you owe, and then we're going to take your equity and package it into a note that's payable to you each month, you're going to be acting as a bank. Now, I'm not saying you have to sell your house that way. I'm just telling you I can pay the absolute most for your house on a deal like that. And I'm sure you're concerned about capital gains since it's a second home, and we can help offset that. So in just a minute of our conversation, Joe, I think I can put an offer together that's going to be the best for you, not just for me, but for both of us.
Joe: That's really good offer. Okay. I love how you phrased all that. It was really good. You guys should rewind this and write that stuff down. And also, I'm thinking about this too. I'm coming at it from a from my perspective of being an investor, trying to put myself in a motivated seller's shoes. I haven't thought like this in a long time. All right, So let me say something like, I'm sure you know, I. I just we just need to sell it. We're looking to we're going to put the money into some investments. And I don't want to wait. Really. I just need to sell it.
Jason: Yeah. I'm not asking you to wait. I'll buy it this week, and I'm not sure how long you've had it on the market, but I move fast. That's what investors do. And here is what you're going to do with the money. I mean, what better place to put it than in real estate? Or, you know that that's why you got a second home?
Joe: Well, yeah. You know, you can come and look at it. We've been getting a lot of calls on it. A lot of people have been interested in it, and I think we can sell it pretty quick. And if we can, I might just list it with an agent. But I'm not going to just give it away, though.
Jason: Yeah, well, I think you're going to be impressed with the options that you have with me. I said earlier, I buy houses lots of different ways. But here's one way. I wouldn't sell my house. I wouldn't just give it to an agent and give them 6% of the proceeds when you can sell it to me and people. Right. So just think about that. I am going to come see the house. Are you in Florida now or are you in town?
Joe: My brother's out there. He can you can help. You can show. I think he's got a couple, three or four people lined up to see it tomorrow if you want to come by.
Jason: Yeah, that's no problem. But here's what I'd really like to do. Let's talk about it. Just the house. Need any repairs, Joe?
Joe: No, no, it's in good shape.
Jason: Okay, so here's what I'd like to do. Let's talk more about how these deals are structured and why it makes sense to sell to me and not to, you know, so a retail buyer or somebody who's going to live there. And if that's I mean, I have to go see the house. So that's going to happen. So here's what I want to do. I want to convince you that my offer is going to be better than the other two guys that are going to look at it with your brother tonight. And I want you to accept my offer, not theirs. Okay. So can we talk a little bit more?
Jason: All right. So you didn't tell me what you owe on the mortgage, Joe, What do you owe?
Joe: We owe about 75.
Jason: Okay. And what do you think the house is worth? You've got it listed for 350.
Joe: You know, I feel like that's a fair price. That's it's probably there's some neighbor homes that sold for a little bit more and some that sold for a little bit less.
Jason: So you just priced that. What do you think is competitive?
Jason: Okay. All right. So here's I'm going to assume that you're asking price is exactly what you say. And I believe you based on the brief history I've done looking at comps. So here's what I am offering you. The $70,000, what type of loan is that? Is that a conventional loan does it have any is it a 501 arm. Tell me more about the type.
Joe: Yeah, it's a it's a conventional loan. We bought it about 15 years ago.
Jason: Okay. So this was your primary residence, then you moved to Florida and converted into a rental. How long has it.
Joe: It's just been vacant a few months.
Jason: How long has it been a rental?
Joe: By about seven or eight years.
Jason: Okay. All right. So have you enjoyed cash flow from the property or not?
Joe: Yeah, a little bit. But, you know, we've just been working to pay it. Pay the mortgage down.
Jason: Yeah. Okay, Well, ultimately, here's what I would propose. So we would assume the mortgages in place now and start making the payments on that loan immediately. And then we're going to package your equity into a note. Let's say we're going to amortize that note over 30 years at 5%, as you know, because you own a couple of homes. The power is not in the rates and the amortization schedule. Right. So, you know, that's what we can do there. Now, depending on your capital gains obligations, we can look at that with your CPA and decide if we're going to do an interest free or not an interest free interest only loan so that we can absorb the capital gains for you so you can actually keep the full amount on the sale price. So you're not having to pay an agent, you're getting full price for the house and we're going to pay your taxes for you. How does that offer sound?
Joe: Well, I don't know. I needed I guess I need to think about it. Have not been proposed that so before.
Jason: Joe. Joe, I have to cut you off here. What do you mean, you have to think about it? Did you hear what I said? Full price, right? No. Agent commissions. And I'm going to pay the taxes for you. Is anyone else offered you at full price?
Joe: So what's the catch there? Sounds almost too good to be true. I don't. I just don't get it.
Jason: You know, I hear that all the time. And you're what you're really asking me, Joe, is how am I going to make any money out of this house? Right? Sure. Yeah. So ultimately, I'm going to buy it from you at what we think fair market value is. I'm going to assume that you're right. We'll verify that for sure. And then what I'm going to do is I'm going to put somebody in that property that I'm helping get financing and I'm going to sell to them for 5% more than I bought it from you. And I'm going to raise the rate because they're not in a situation where they can get a really great rate. And I'm going to make a little bit of money on cashflow. I'm going to make a little bit of money on the spread from when they were from what I bought it from you when I'm selling it to them for. And the longer they're in that property, the more money I make. So it's more of a long play for me. It's not a flip, it's not quick cash. It's what we call in our industry. There's quick nickels or slow dimes. This is a slow down for me, so I get a lot of time and money invested in this property and you're going to do nothing. No more taxes, nowhere insurance, no more payments. You're just going to receive a check from me every single month. And the majority of that is interest that you're going to use to offset your capital gains obligations. How does that sound?
Joe: That sounds really good. Off roll play. I have a phone call in 3 minutes and I have to go. Yeah, that's really good. Everybody give Jason a round of applause. That's fantastic.
Jason: Can I give myself one?
Joe: Yeah. Yeah, for sure. I love that. Okay. Very, very good.
Jason: You almost got me off the phone there, Joe. We don't let people get us off the phone.
Joe: Yeah. All right, so get Jason's book right now. He sells it for $19.99. You can get it for free at DealswithJason.com/Joe. DealswithJason.com/Joe. It's a good read definitely go check it out.
Jason: And it's a short read, Joe. They can read it in just a few hours like you know.
Jason: I'm a bit ADHD, right? I can't read long books so I didn't want to write one.
Joe: was so awesome. And also too, by the way, guys, like I said at the beginning of the show, I'm doing a workshop with Gavin May 8th and 9th, if you want some more information on that, we're actually going to be calling a bunch of sellers live in that workshop. Go to Joe McCall dot com slash workshop, Joe McCall dot com slash workshop and to get Jason's book deals with Jason dot com slash Joe. Very good thank you Jason I'm sorry, I have to go. It was fun.
Jason: No problem, Joe. Thanks for the opportunity. I look forward to helping some other folks with the book.
Joe: Yeah. See you guys.
Jason: Back at you.