Joe:  Hey guys, how are you doing? Joel McCall here. Welcome to day dos of my REI new podcast series. Glad to be here.

Joe:  I just wanted to talk about something really exciting. I have been seeing an uptick, an increase in response rates, motivated sellers, and deal flow, which is crazy. You might think, and I love, I don't want to say I love this, but like when the market starts going into downturn, which we've not seen in over, in my opinion, we've not seen since 2012. I mean, the market has been on a tear since 2012 going, going up, right? That's when all the cash buyers were starting to come back in and the hedge funds were buying properties and it just got super, super competitive. But for the last year, you see this in states like Florida and California, especially days on market are getting longer. Price drops are getting larger, more expired listings, more foreclosures or notice of defaults, right, are going up and you're seeing a lot more sellers getting motivated, getting desperate. And when I say I love it, I'm not excited that, you know, people are losing their the market's going down, but there is a ton of opportunity for those who stay in the game. This kind of mirrors realtors getting their licenses, right? So there's ways, places you can go online where you can check and see when do realtors, you know, get their licenses and let the licenses expire. Like how many realtors are actively active in the market? And you're seeing a lot of realtors quitting and leaving right now. So what is what do we care, right.

It kind of mirrors what I think we see in the investor wholesaling world. So when you see a lot of realtors leaving the market, leaving the business, you also are seeing a lot I mean, you talk to some of these big influencers who have large Instagram followings, YouTube channels and all of that. You're seeing engagement going down in most cases, right. And there's just not as many people searching. Or getting being interested in wholesaling topics, how to make fast cash and real estate, right. So, OK, what's my whole point in all that? I think we're seeing a big increase now in response rates and motivated sellers and deal flow because there's less competition. Sellers motivation is going up and there is less competition, so these sellers, as their motivation is going up, they're getting fewer pieces of mail, fewer cold calls and the people, the investors that are sticking in the game that are continually doing the marketing. Doing the PPC. Doing the cold calling, the texting or whatnot. It's creating more opportunity in a good way for you and me. You're seeing the same thing in these states where it's becoming illegal to wholesale, where you have to have a real estate license or you have to work with a realtor. And so what's happening is a lot of the beginning investors that don't have any money or don't know what they're doing, they just bail. They don't do anything in that state because they're too afraid of the consequences, which, you know, everybody should be.

But investors like us who know what's going on, we know how to play the game. We're diving deeper into those markets and we're getting more deals. And so I'm excited about this market right now. And you might be discouraged maybe because you're thinking, oh, I'm a beginner, I don't have the money to close on these deals, so what good does this do to me? Like, but if you partner with somebody, this is one of the best ways to get started in this business is by partnering with other investors that are already doing deals, land or houses, it doesn't matter. Partner with those guys, be their bird dogs, bring them deals and split the profits. It's very simple. It's a great way to get started in this business. In the last few weeks in my land coaching business, I've been seeing a huge increase, uptick in students and members of the community that are doing deals. They're not big home runs. I was just talking to Janet this morning in my apprentice coaching call and my apprentice program, which is very expensive. It's not for everybody. I do every morning, I do comping calls for 30 minutes. I'm at the computer. I'm in my office anyway. So I just turn on Zoom. My apprentices come on and we look at deals. And they just, they give me some comps. I mean, they gave me some GPS coordinates or some information on the lot and we look at it.

We talk about it. I tell them what I would offer. I ask them, what did the seller say? You know, where are we at? And we're seeing more and more apprentices now doing deals. Janet this morning, just the other day, did a simple assignment made $5,400, $5400. That's a lot of money. That's better than a poke in the eye with a stick. Yeah, it's not $20,000, right? That's not $10,000, but it's $5,400. But get this, she's got four deals right now. Two that just closed, one that closes tomorrow. She actually bought that one for like $4,200 with her own cash and then is selling it for a $4000 assignment, a $5000 assignment fee. Anyway, I forget the details, but some of these properties are in wetlands and she's been calling realtors and realtors like, no, we're not interested, which you can understand. So what she did, which is awesome, and I'm telling you the story because the market may be quote unquote slowing down, but buyers are still hungry for deals. There are buyers out there with money who are still buying deals. And guess what? If the market completely collapses, quote unquote, like if we get back to where we were in 2008, seven and eight, there will still be buyers buying deals, okay? So she called realtors on this one deal. She's trying to make just a quick $5,000 profit. And realtors like, not interested, it's wetlands.

So I have this letter that she sent. I told her about this letter and she sent it and it's called an urgent buyer letter. So it's a letter that you send out to neighbors, to other investors who've bought land before and you tell them, hey, listen, it is urgent. I need to sell my property fast. I've been trying to sell it for some time now and I can't wait any longer. The title is clear, the taxes are paid. I need this thing sold today, urgent, urgent. Please help. So you're pretending to be this desperate motivated seller and you send that letter to neighbors, to other investors who've bought land recently in the area. And so all these realtors told her no, but she sent that letter and immediately within a day or two of sending it, got a call from a home builder saying, yeah, I'm totally interested, let's do this. And she said, well, listen, I want to do an assignment. Is that okay? Well, this guy asked how much is the assignment? She said five grand. He said, fine, no big deal. Just by sending that letter.

Oh, and one more thing too that she does is on the top of the letter, she writes in handwriting. And this is all like red ink, Sharpie pen on yellow legal pad, hand writes, do not throw me away. And then she crumples the letter up, folds it in quarters, puts it in an invitation envelope with a handwritten address on it. Now, why do you do all that? Because it gets opened. And then also because it's crumpled up, there's some thickness, there's a heft, whatever to that envelope. And then when you open the flap, you see a crumple that piece of paper in there. So the response rates are insane. And with that letter alone, you may never need. To list a property with a realtor, put it on Facebook marketplace, put it out on a Craigslist or Investor Lift or any of these other platforms. Just sending that crumpled up yellow letter will probably get you more buyers than you need. And if it doesn't work, then it's probably not a good deal. You can go back to the seller and renegotiate. Does that make sense what I'm saying?

She just sold one, she's got maybe two, and she's a one that closes tomorrow. And those three, it was about 13 or $14,000 in net profit, net profit. And then she's got one that she just sent those buyer letters out yesterday. So she's still waiting for some responses on that. But I was just so fired up, right? We just closed a deal with one of our clients as well. And we are selling it. We got it under contract. It's in Michigan. It's 95% wetlands. 95% Wetlands. We got an under contract for. Oh, I forget the numbers. The profit is $13,300. I think we got it under contract for 42,000. We're selling it for 57 or something like that. A gross profit of $13300.

I think, we're gonna be double closing that. I'm not sure. The client that we're partnering with on that deal, who's a member of our community, he is a realtor. He was on vacation for like three weeks. He's like, hey, I got this deal. I don't have the time or the bandwidth to deal with it. Do you just wanna take it? And we'll split it 50-50. And we're like, yeah, sure, let's do it. So that's why I'm pumped and excited. I'm trying to share these stories with you because this is the best time to get into this market. Don't sit on the sidelines. Don't be afraid. Don't like, oh my gosh, the sky's falling. You don't pay attention to the news. The political people out there in the left and the right, they're just all psycho. Forget about it. Just focus on doing deals. Focus on the fundamentals, the basic things. Always be sending out marketing. Talk to sellers. Talk to five sellers a day. Make offers. Make an offer to every single seller you talk to and follow up. Follow up with every single lead, an offer that you make. And you will do deals. Plain and simple. There are buyers right now buying properties. There are sellers right now that are motivated, that are more willing now to negotiate. Than they were six months ago.

So we're seeing an increase in direct mail response rates. More sellers accepting our offers. Oh, who was it? I was just talking to one of our clients the other day. They were averaging one offer accepted for every 13 that they were sending out. I tell people conservatively, 30. You know, if you can send out 30 offers, you'll get one accepted. This guy is getting one out of 13 offers accepted right now. Is that crazy? What's your excuse? What do you got going on today? How many offers have you made in the last week?

All right, well, let's get to it, man. Let's go make some money. I'm here at the golf course. I have a… Meeting with some clients in our mastermind. All right, appreciate you guys. I'm out of here. Take care. God bless.