Joe:  Welcome. This is the Real Estate Investing Mastery Podcast. Hey, what's up guys? Welcome to a brand new YouTube video series I'm doing called the New Market Video Series. This is something I haven't done in about three years. We're going to go in and pick a brand new market, one that we've never done a single deal in, and we're starting from zero on camera, live. We're going to be picking the market, building the list, sending real actual offers, calling sellers and realtors. No theory, just watch what we actually do. It's going to be so exciting. Thanks for tuning in. Let's go into today's video.

I have two or three different ways that I like to send offers. I'm going to show you the manual way to do it with a spreadsheet and a Google Doc, and I'm going to show you a new calculator I have that kind of does it for you. I'm going to go into my course in Dirt Flippers, and I have this letter that I like to send to sellers. I'm going to do two letters here: a cash offer letter, and a cash and owner financing two-option letter of intent.

Here is my main offer spreadsheet. You get this if you're inside of Dirt Flippers. This is where you calculate the value of a property based on actives and solds, and then this is where you calculate the offer price. We've got to look this property up. Now, there's no address for this property because it's a vacant lot, but if I click on this neighbor's lot, he has an address because there's a house on it. So I'm going to copy that address, go to Zillow, paste it in, and it takes me to that neighbor's property. I click back to search, remove boundary, zoom in. There's our lot right there in the center of the map.

Let's look at solds, land only, half acre to two acres sold in the last 12 months. I start zooming out. Five comps, zoom out again, 22 comps, zoom out one more time, 81 comps. These are sold in the last year between a half acre and two acres. I sort from low to high. I have this scraper that you can get at joemccall.com/zillow. It only works on Google Chrome and it scrapes all of these properties and gives you an average and a median price per acre. I go to page two, scroll down, and scrape. Now I've scraped all 80 of the solds. I just want the lowest 50% price per acre. The median price is $54,000 and the price per acre is $45. The average price per acre is $43,384, so I take the lower of those two. This property is 1.14 acres. Based on sold comps, it's worth about $49,000.

Now let's look at active comps. I switch to for sale, add backups and pendings, and set days on Zillow to any. There are only 27 actives compared to 80 solds. What does that tell you? Properties are selling really quickly in this area. It's a good area. I sort from low to high, load them all up, scrape, and look at the lowest 50%. I've got 14 active listings. The average is $54,412. I paste that in and discount active comps by 15% to come up with a potential value of about $52,725. The median price per acre comes out to about $49,548.

So I'm thinking, could we sell this lot for $49,750? Let's check. This one is pending at $45,000. This one is still on the market for $49,900. This one's pending for $55,000, this one for $59,000, these are pending for $60,000 and $65,000. My goal is to sell it as quickly as possible. So I feel good. I'm going to list it just under the $50,000 mark. Now, I want to make at least $10,000 profit. I'll pay a realtor 10%, $500 for photos, no back taxes assumed, and closing costs of about $2,500. Subtract all those numbers and that comes out to an offer of $30,775. But my general rule of thumb when making offers on properties under $100,000 is I don't offer more than 50%. Sometimes in a really hot market I might go 60%. So I'm going to start with an offer of $25,000. If he calls me back, I might negotiate up to $30,000.

Now let me write the cash offer letter. I'm in Google Docs. I write: I'm reaching out personally because I'm interested in buying your 1.14-acre vacant lot near Dunlin, Florida. I'm not a big company, I'm not a realtor. I'm just a family-run land buyer who tries to make things simple and easy for people who don't want the stress of owning a property they're not using anymore. Over the years, I've assisted many landowners who felt stuck with a property they no longer use that was too far away, continued to cost them money in taxes and maintenance, needed paperwork they didn't want to handle, or simply didn't want to pass on to their kids. If that sounds anything like your situation, I think I can help. Here's my simple offer: $25,000. I'll pay all the closing costs, title search, title insurance, escrow, and settlement fees. You choose the closing date. We can close in two weeks if you want. No agents, no commissions, no back-and-forth surprises. My goal is to make this a safe, no-hassle, easy sale for you. If you'd like to move forward, great. If not, no pressure at all. Here's how the process works: we both sign a short purchase agreement, the local title company handles all the paperwork and sends you money, we close when you want, and you never have to visit the property, talk to neighbors, fix anything, or deal with inspectors or realtors. If this offer works for you, or if you'd like to talk through it and adjust it, just call or text me. Thank you for your time.

Now I'm going to create a proof of funds letter. This is something anyone who's part of Dirt Flippers gets access to for free. I'm also giving you free transactional funding, which means if you need money to close on the A-to-B transaction so you can double close and sell, I can help you with that. The proof of funds letter says: To whom it may concern, this letter is to confirm that Chamberlain Holdings LLC is pre-approved for available funds up to $25,000 for the purchase of the property at TBD address, Dunlin, Florida. Funding is not contingent on an appraisal. Boom. I'm going to send my offer with this proof of funds letter attached. Do you think this might position you with a little more authority and credibility with the seller or realtor, showing that you are a legit cash buyer? I'm going to print the letters, hand-address the envelopes, put a real stamp on them, and send them. When you send a letter that is hand-addressed, it's going to have a much higher open rate. That's how I make my cash offers.

Now let's do the owner financing offer. Cash offers get maybe one out of every 30 accepted, but what if you gave the seller two options instead of one? In the next video, I'm going to show you the actual offer you can use to double your deal flow.