Our criteria for a deal always starts with: Can we find a buyer for it? By focusing on what your buyers want and shopping for that target, you’ll always be able to sell your lease options. In part 4 of our Virtual Profits Workshop, we’re going to cover how to find buyers, and how to talk to sellers.
There are two main reasons that you can’t sell a deal. Most commonly, it’s just straight-up overpriced. If the house is on the market for a couple of months, you’re going to have to come down in price to get it to move. The second reason is that you’re not marketing it in front of the right people.
So let’s talk about how to get more eyeballs on your property. Facebook Marketplace, Facebook Buy/Sell/Trade groups, bandit signs in front of the house, and the classics Craigslist and Zillow are still great places to advertise a house. Property managers and Realtors are also great resources for helping you build a buyer’s list.
Gavin is a master at helping sellers talk about their motivations for selling. Before you pick up the phone you need to decide: What do you want from your phone call, and how long do you need to talk to get that information? By focusing on the four pieces to a deal, you can decide what kind of offer will work in that situation:
When you pick up the phone, set the agenda upfront. Tell the seller what you’re going to ask, and then give him a chance to say no. Gavin and I talk through a couple of role-plays so that you can see how to naturally get the information you need to make an offer and then make your exit.
Joe: Hey, what's going on, guys, Joe McCall from the Real Estate Investing Mastery podcast, and I'm doing a little video introduction here for the next series of four to five podcasts that we're going to be releasing. About a month ago, my coaching business partner, Gavin Timms, who's the guy you can't see that very well. We did this workbook. We did a workshop where this workbook came from, and it was really, really good. It was an all-day workshop. We called it the Virtual Profits Workshop. And on that workshop all day Saturday event, we did a lot of teaching. We taught people how to find deals, how to talk to sellers, how to find sellers, how to find buyers. We talked about systems and processes and we walked through case studies of actual deals is a really, really good event.
Joe: And so I said, we've got to release this as a series of podcasts. And so that's what this next four or five episodes are going to be all about. And so I'm not going to record a new introduction for each of them. We'll just probably replay the same intro to those four podcasts. So if you've already heard this before, my apologies, but it was a really good podcast and you're going to walk through this stuff in this manual.
Joe: And in fact, what I might do in fact, I will do this if you go to RealEstateInvestingMastery.com, RealEstateInvestingMastery.com, I'll have my podcast guy, David, put this workbook. It's a 20, 25-page PDF. I'm going to have him put this in the on the website for the episodes. If you go to Real Estate Investing Mastery, as were all my podcasts are, and that's where you can get show notes and transcriptions links and things like that.
Joe:So I want to encourage you to go get this workbook because it's going to be really helpful for you. We actually use this as our agenda for notes. And so there's a lot of things that are really important, points that are kind of like fill in the blank in this workbook. So Gavin and I, we've been working together for almost five years, maybe a little bit more. And he's a great coach. And so he's kind of the main coach in my publishing education side of my business. And it was really good. One of the things that we did was we interviewed four different coaching clients that are doing really well, doing deals part time and full time that are just crushing it. And we interviewed them and talked about what's working now. It wasn't just a way that we can kind of share and brag and get nice testimonials.
Joe: It's really was more educational, like what's working now in the industry that people can use. And so I think you're going to find a lot of value out of those podcasts. So, again, we start with what's your big why? Why are you in this business? Why are you doing what you do? And then we talk about the technical stuff of what is it that what are the tools that you need? How do you find the sellers? What do you say to them? How do you make the offers all that good stuff? So I think you're going to get I don't think I know you're getting a lot of value out of these podcasts. So if you're interested in getting this workbook right here, go to RealEstateInvestingMastery.com, do a search for Virtual Profits workshop. We're going to be calling these podcasts Virtual Profit Workshop. And each of them will have a each of them will have kind of a title or a subject. In the show notes will be a link to get this workbook.
Joe: Also, if you want to work with me and Gavin, if you want to be our next success story, somebody that's actually doing deals, then I want to encourage you to go to CoachJoe.net, CoachJoe.net. That'll take you to a page that explains the program that Gavin and I have and what we do with folks. It's an application only process, so we don't take everybody. In fact, we turn down a lot of people that just aren't ready for it. And if you're wanting to, though, to get started, if you're wanting some help with getting your marketing set up, your system set up, if you want some done with you and some done for you, I'd encourage you to go to CoachJoe.net, that's CoachJoe.net and apply.
Joe: It's just a simple application. Tell us a little bit about yourself. Tell us about your goals or situation. Where are you now? Where do you want to be? And we'll get on the phone and see if we can help you. OK, so go to CoachJoe.net for that. Enjoy these episodes, guys. I know you're going to get a lot of value out of it. I'm hoping that you do. And this might be, I feel like some of the most important podcast episodes that I released in a long, long time. So enjoy them and I will see you guys later. Don't forget to get the show notes, the transcripts, this workbook, all of the links that we talk about. Go to RealEstateInvestingMaster.com, look up on the search bar, Virtual Profits workshop and you'll find these four or five episodes. We'll see you guys. Take care.
Joe: All right, so what is our criteria for partnering on deals? Good question, Judith. It just depends. Our criteria is, can we find a buyer for it? That's it. So if it's a cash deal, can we find an investor, landlord, rehabber that will buy it? That's a lease option. Deal. Can we get a tenant buyer to buy it? How is this different than my lease options? Course, this is a coaching program. Is transactional funding good for life after the course is over? No, it's only good for the during the six-month program. All right. Hold on a second here. But by the way, Dean, by that time, you're going to know who we use for all that stuff. So it doesn't matter, John. The service that we use that inserts the name into the text is REI Simple. How do we get to partner with you on a deal if you have to be one of the students in the coaching program, you just email it to us and we'll look at it. And but with the partner, it's got to be under you've got to get it under contract first. All right. And if you need the workbook, we're going to go through the workbook again just in case somebody still needs it.
Gavin: Also, back to what Jamal said. The reason is, is because we can't handle the volume of people that want to just partner with anyone because we can't fulfill on it. It's impossible.
Joe: All right. We're going to jump into that. OK, so now we're going to be talking about finding buyers with cash that can close. I wish I would have remembered to put page numbers on this, but it's the page finding buyers with cash that can close. And we want to ask you guys a question. Do you have a limiting belief that it's going to be too hard to find buyers for your deals? Type that in the chat. Do you have a limiting belief that it's going to be too hard to find deals? We already know the answer because we've been seeing your questions in here. So be honest. Get a lot of you saying or know a lot of your saying, no, that's perfect because you understand what we've been talking about. But if you do, you've got to get that out of your head. You've got to get a checkup from the neck up, as they say. Right. Good. We're getting a lot of notes. If you have a good deal, the buyers are easy to find. And I remember I remember my coach saying that when I got started and I didn't believe them. No, I didn't believe them because I didn't have good deals and I was trying to sell bad deals.
Joe: That's why nobody wants them. I mean, even here's the thing. There is a price that anything will sell for a lease option, cash deal, wholesaling, owner financing. So if you have a property that's you're trying to rent for sixteen hundred a month, but the neighborhood only rents for twelve hundred a month, you're not going to find a buyer for that. You're trying to sell for cash for seventy-five. But there are similar properties for sale for 60. You're not going to sell that. You just have to be aware. What do your buyers want, what are they looking for and then go out and get that for them. When it comes to buyers, this is so important. I understand it's important to know what your buyers want. You need to shop for what your buyers want, not sell them what you have. Does that a fill in the blank thing? We need to do that one. Yeah, it's important to sell buyers what they want, not what you have. Why is that?
Joe: Because, like, imagine making a bowl of spaghetti. It's maybe the best spaghetti in the world. You made it and you walk out on the street, walk up to strangers and say, would you like to buy my bowl of spaghetti? I mean, like, who's going to say yes? Nobody's going to say yes. But what if instead you went out and said, hey, I'm going to be I have a kitchen over here ready to go and I'm just taking orders. Would you like to order some food? I'll go make it for you and then say, yeah, you know, how much or whatever, and you don't want five bucks. I'll make you anything you want. All right. I'll have some lasagna. So then you go make it. How much easier is it going to be when you go find what people want and then sell it to them? So that's just a change of thinking a lot that you guys got to be aware of. And so we're going to be talking about buyers. So do you have a limiting belief? Let's get rid of this limiting belief that it's hard to find buyers because it's not. What are the two main reasons why you can't sell a deal? What are the two main reasons why you can't sell a deal? You want to talk about this?
Gavin: Yeah, well, first things, obviously, it's overpriced. Normally, that's the most common problem sometimes. Also, it can be a condition of the property. Certain buyers only want to put a certain amount of money into the property. So, for instance, REHABBERS, fix and Flipper's, some will like what we call a lipstick rehab where they come in and just do like a light rehab, maybe paint carpet, maybe do a little update on the bathroom, something pretty simple. And then there's other rehabs, right? Rehabbers that will literally tear the whole place down and do a full new build extensions and stuff like that. So you need to that's why you never want to count on just one buyers' opinion. Right. For us, in our markets, it's normally at least three buyers all saying the same thing to know if it's overpriced or not. Right. We never go off of just one. Sometimes it's location. The thing is, I disagree with that. Sometimes people will say it's location, but there's a buyer for everything.
Gavin: As Joe said, you just need at the right price. So just because it may be in Alabama, Section eight, it might be worth five thousand dollars and then you'll buy is that you normally sell fifty sixty-eight hundred thousand-dollar homes to a not interested. That doesn't mean that there isn't a buyer there because there is you've just got to search and we teach this where you can actually go and look where you've got your property and then look who's bought in that area literally street by street and then start approaching them because they're more likely to buy your deal if they've just purchased one in the last three, six months.
Joe: Yeah, there's a price of. Every property will sell and land when we fill vacant land. There's a saying there's a pig for every barn or whatever that means. I don't know, but like you'd be shocked. The properties that we sell that don't have road access, you know, in the middle of nowhere, no electricity there in a swamp that's buried under water. It's like people will still buy that stuff. There's a pig for every barn. And so there's two reasons. The first reason is it's not a good deal. It's not priced right. It's not priced right. Second reason is you're not marketing it in front of the right people. You're not marketing the property. You may have the best deal in the world, but if nobody knows about it, how are you going to sell it? We're going to be talking about this as we go through. But I see that every time and we get a lot of deals people bring to us and I can't find a buyer for it. And we talk to them and say, well, what have you done?
Joe: And normally it's not enough. And the other thing is it might just overpriced. It's really not that complicated. Those are the two reasons it's overpriced or you're not marketing it. You're not putting it in front of the right people. And there's a lot of we'll talk about where the right people are. But this is why it's so important to find buyers first, because it's much easier to sell them what they want versus selling them what you have. And don't be afraid of the small towns because there's still demand for deals in the small towns. Let's talk about various ways to find cash buyers. Gavin, what are some of your favorite ways to find cash buyers?
Gavin:So for me, I like pulling lists and skip tracing it again, my marketing channels. I'm very big on going out and actually producing leads to cold call like the texting. And proactive marketing rather than reactive where I'm waiting for the phone to call. So what we do is we pull a list, we create criteria. Normally someone that doesn't have a mortgage that have purchased within the last three to six to one year, depending on how much data. And then we pull the individually owned first, which we can skip, trace and call to see through interest in mobile is another great way to actually pull the culprit. If you want to do a few more steps and then you can look at who owns that corporation or the LLC and then you can skip tracing. That's one of my favorites because we get real activity. That's one way that costs. But I do like it.
Gavin: Another great way is actually going on Zillow and looking for what's for rent because where these rentals, that means that probably landlords, they'll be property managers and there'll be realtors tied in to. If you go on to Zillow. Well, that's going to give you is that it's great to talk to property managers. Why? Because they are property manager. They run rentals. That means that all the doors that they have, when they're able to handle five hundred dollars, they have buyers that might want to buy more property. So Property Manager is a huge and also realtors as well because they're interacting with cash buyers. So one realtor might have ten buyers. So that is a great resource for you. Working with realtors can be a fast way to build a buyer's list.
Joe: Very good. I have a list here. I'm going to I know you already talked about it. My favorite is calling landlords going to Zillow go Section eight, calling landlords go Section eight, dot com Zillow, Craigslist. Find the ones that are already advertising houses in that area and call them called property managers, call local realtors that have represented cash buyers in the past. You can go look to see who are the who are the properties that sold to investors. Call the listing agent of that property that sold to an investor and call the buyer's agent. You can find those and say, hey, I got a deal here. If you want, you can bring me a buyer. You can add whatever commission you want onto the price. Look up active cash buyers that had purchase in the last twelve months in that area. I have this yellow letter that I love to send to cash buyers. So I have a house in a certain zip code. I bought all the investors that own property in a mile radius or whatever. That house and I send them is desperate, motivated by a yellow letter.
Joe: And either I hire someone to handwrite them for me or I'll go to a print company and have them print them out for me. But it's basically something like this: urgent. I need help. I got to sell this property at one, two, three. Main Street. I've had it listed for a while now or and I can't sell it. I need this thing sold today. Please take a drive by it. Call me, make me a cash offer. Right now the taxes are clear. The title is paid. I need this thing sold today. It doesn't have to be that long, but like help me. Like it's this desperate urge and I got to sell this property and you send it to all the investors who own property in that area. And one of the things I like to do, I don't have an example here, but I'll take the letter and I'll crumple it up and reopen it and fold it back and put it in an envelope, an invitation envelope, handwritten address on the on the envelope, a couple of stamps send it. And the response rates are crazy. It's amazing.
Joe: And everybody I've told it that's done that has found great cash buyers. We'll talk about tenant buyers in a minute here, but that works really well. Sending those letters and hard money lenders. I love, I love hard money lenders. Why? For a couple of reasons. A local hard money lender. You don't want the big national ones, OK? You want a local hard money lender and you find them the local real estate clubs, bigger pockets, Facebook groups and things like that. But you say, listen, I got this deal. Would you lend money on it? I just want to know if this is a good deal. And then I will let my buyers know that I have a hard money lender lined up that will lend them the money on the deal. And that hard money lender will say yes or no. If the lender says no, it's probably not a good deal. Need to go back to the seller, renegotiate a lower price. Right. But the other cool thing is the hard money lenders know who the buyers are. And they a lot of times they'll buy it themselves, but they'll know other people.
Joe: And so you can tell them, listen, I'll give you 20 percent of my wholesale fee if you bring me a buyer and then that hard money lender will email his list, send some texts, hey, I know somebody who wants buy properties in that area and that hard money lender can bring you buyers huge to partner with hard money lenders. Guys are really highly recommended. They need to be local hard money lenders. All right. That's cash buyers. How do you find the tenant buyers for lease options? And this would be the same for buyers on a lease option or retail buyer on a on a owner financing deal, et cetera, et cetera. OK, so let's talk about tenant buyers. How do you find tenant buyers for these properties? Signs my favorite. They work really, really well. Ugly yellow handwritten signs sign in the yard if you can. If there's a realtor sign in the yard, you can't do that. But in the neighborhood on the weekends, signs are amazing.
Joe: Rent to own three percent moves you in phone number. Another sign that I like is for owner financing, especially when you're looking for people with large down payments, a beautiful home to, well, special financing available for well deserving family with large down payment, something like that. That's too big for a sign that's worked well in my Craigslist Facebook marketplace ads. But something that says like rent own three percent moves you in. They know the amount that's needed. Beautiful home, special financing, a large down payment, down payment needed or something like that. But it just kind of helps with letting people know, hey, this is a beautiful home. I'll forget about the banks. We don't we will pull the credit, but we're not going to determine, you know, where you're at with your credit. But if you like this house, you got a large enough down payment.
Joe: So anyway, in my courses, I go through all of the different signs. But the handwritten signs work the best. Second is Facebook marketplace. Facebook marketplace. Pretty much replace Craigslist. Craigslist is seems like a big, huge spam trap right now. But Facebook marketplace works really well when you put properties in there. Facebook groups like those Buy sell trade groups like the garage sale, Facebook groups, every city county area has them join all of them and put your properties in their Facebook ads. Work really, really well with Facebook ads. I've tested this with a nice, beautiful landscaped property, beautiful landscape lighting, manicured lawn and beautiful, gorgeous house, and did that same text with a different image of a of a little three-bedroom ranch with brown grass, a nice house, just brown grass, got way more clicks and people going to the property.
Joe: It wasn't super nice. So don't think that you have to have a large a beautiful photo of a beautiful house. That's what you do. So in the course, I give you ads and different things like that that you can build a new Facebook page. And then finally, Craigslist and Zillow. Craigslist is good. Sometimes Zillow is hard to get your property on there if it's already been on there before. But if you're doing a lease option or owner financing and you do actually own the house, you can claim ownership of the house in a certain sense or be the property manager of the house and get it on Zillow. If obviously Zillow is the best place to put properties, I recommend doing mainly for rent ads. OK, do it for rent. If you had to choose between for sale by owner and for rent. Cool. And the other final thing I'll say is a lot of times I recommend you find a realtor or a leasing agent to help you find tenant buyers for your house.
Joe: All right. So and Cheryl asks, how do I find tenant buyers if I'm out of state? The same way, everything I just told you there. And if you're doing these virtual in a lot of other states, you can hire local realtors to find tenant buyers for you. All right. Let's see, what are some of your biggest takeaways on that? We're going to be talking about role playing, next. Good Facebook ads get buyers first, cash buyers first. There's no need to fear just a simple set of steps. Cash buyers are not that hard to find. Nice look up business LLC owners. A good way to Skip Trace LLC is fiber. Just go to fiber and search for Skip Trace LLC and you'll find a lot of people that do that for just five bucks. Crumpled up letter. Nice. Lots of doable ideas. There's a lot of buyers out there. Signs Realtors for hire. Facebook ads get proactive.
Gavin: Yeah, the idea is to buy strategies, whether it's cash or lease options. You have to get it in front of people. So, again, being proactive, if you are not using all the marketing channels and people aren't seeing them, then you're doing it wrong. Right. You've got to get eyeballs on it and you should be able to create it. I mean, I remember when we did the case to the Joe and we did one in Jacksonville, I think we had eight inquiries in the first five days. It was crazy because we pushed out all channels. It was priced right. So you're going to get a lot of traction, especially if it's priced well.
Joe: I love this thing, though. Things like calling landlords, go Section eight. That's huge. By the way. Skip trace, cash buyers, Facebook marketplace, pick up the phone and call bam. One of the cool things, too, is simple that I recommend every property gets its own phone number and you can get that really easily in a simple. And then as people and every ad bandit sign for that house has that phone number on it, when people call that number, they get automatically added to your buyer's list. And next time you get a property, you can blast it out, but you can have the outbound voicemail say, hey, guys, thanks for calling about one, two, three, Main Street. It's a beautiful house. This is this this. It needs that. It's only we're only asking this, but hurry. It's going to be gone. If you want to see more pictures, go to our website here, blah, blah, blah.
Joe: If you have any questions, leave a voicemail and we'll call you back. So they leave a voicemail, but very few, very few people, actually. You leave a voicemail, but the cool thing is the system is simple, can send them a text back immediately, says, hey, thanks for calling about our property. One, two, three, Main Street, did you have any questions or here, click this link to go see pictures of it and stuff. And it's a great way for you to communicate with people. A lot of people don't want to talk to anybody. They just want any. But if you can text them back and forth and send them pictures and all that stuff. Huge, huge, huge, huge. All right.
Joe: So we're going to do some role playing here. Now, we've talked about finding buyers. You've got to find buyers first. We've already talked about marketing. So now the phone starts to ring. OK, what are you going to say? What are you going to say? And what we're going to be doing here is what what it's like getting coaching from us. Because we do this a lot with our students. We do this a lot with our coaching clients and we do role plays and we just practice, practice, practice, talking to sellers, talking to buyers, talking to landlords. And this is this is where you make their money. Sales is the million-dollar skill. It's one thing to get the leads that come in. It's one thing to find out what buyers want and go find it for them.
Joe: But you need to know how to talk to sellers. And it's not that hard. We're going to show you how just by asking questions that will get you like ninety percent of the way there. All you need to do is ask questions. Can you tell me about the house? OK, and so why don't you first talk about you. Do you have a real good slide? I didn't even give you advance warning on this, but you have a real good slide. You have to share it. But talk about the outline or the template of a car, especially the introduction. I got to go downstairs and get something real quick. But, you know, you have like setting the agenda. Can you talk about that for just a couple? That's so good. And I'll be right back. Absolutely.
Gavin: That's super important guys. The sales side of it. One of the most important things, again, as Joe just said, is that a million-dollar skill is what makes all the money. We focus that in our team, in the deals that we do is trying to hone our skills on the phone. OK, we do everything on a virtual level. Everything isis locked up over the phone. Yes, we do have runners. Sometimes it will need to take out a contract if it's elderly to get it signed. OK, so when we're having these conversations, you are going to get better as you go. Now, the first thing is when we talk about sales, if you have to learn to listen, one of the biggest mistakes that real estate investors make is that they over talk. It's because you're nervous. It's good to talk and you won't want to shut up because you're going to just keep talking, talking, talking, because you're nervous.
Gavin: What you want to do is you need to learn how to ask a question and then listen, it's very, very important to be taking notes of the answers and then you're going to recycle that information back into the cellar. Right. So try not to ask the same question twice. Actually, take a note, because what you're going to do is you actually going to get pain points. You're going to find out what the problem is, what that situation is, and then you're just going to keep reiterating it back to them. Right. So, for instance, one I like to use is that maybe you've got grandkids, that you're stuck in Minnesota. It's freezing. The grandkids are in Florida growing up. And you'll you want to sell and move down to them. Right. So obviously, they want to get that fast growing up. How quickly can we make this happen? So touching on them points out, OK, so what are you trying to do is you try to get close to the grandkids, right?
Gavin: Again, they're growing up so fast, you don't want to miss a missed opportunity with that. So you're actually using their information that they're giving you and then your transition and that back go back it up a little step further. Let's say that you are new to being on the phone. A position in on the call is super, super important. Right from when you get on, let's say you have this prescreened and it's coming from a cold call or it's coming from a doormat or whatever it is. But the position at the store, the cold is really important. Now, obviously, for me, I'm on the fly at this point. Right. I'm winging it. And I don't have my questions. And people say we should always have questions, but I feel confident in where I am now to be able to do that.
Gavin: But when you new there's kind of three things that you need to kind of outline right when you're on the phone, is that how long are you going to have them? The time frame? How long do you need them for? One of the things that you need out of the call? And then what is the outcome? What are you going to do next? OK, so for instance, it might be hey, Joe, I know you spoke to Dave yesterday, which is Dave is Dave yesterday. I probably have got a few minutes just to talk. I ask you a few questions, so I just need a few minutes to talk and I'm going to ask you a few questions. That's why I'm here. OK, and then, Dave, once I've got this information, I'm going to make you an offer. I'm going to go away. I'm going to look at the numbers and I'm going to come back and make you an offer. How does that sound? So the outcome of this what I'm asking is I'm gathering information. I'm going to take it away.
Gavin: We're going to go back and then I'm going to come back to you, make the offer. And Joe, if this is something that while we're talking that you're not really interested in, just let me know. It's no problem. Just let me know when we can get off the phone. Not a big deal. So you're giving them permission to say, no, this is. Really good job, Martinez master at this. You should check him out as well. So that's how it would go. Hey, Joe, I've got a few minutes to ask you a few more questions. I can best prepare an offer for you. That's what I'm trying to do. Oh, yeah. Not now's a good time. I did speak to him. And look, once we get off the phone, I'm going to make a comeback, make you an offer. But this doesn't work any conversation. Just let me know and we can get off the phone. So what that is, is that you're just positioning that you're not here to sell. You're not here to pitch, pitch, pitch. Right. No one wants the pitch.
Gavin:So positioning like that is going to calm the seller down. Right. And then now you can ask your questions. He knows you need for a few minutes. You're going to ask questions. It's going to best allow you to gather that information to make the offer. Now, if you're new, you have the question. So days, right? Yesterday, Joe, what's the situation? Why even interested in selling this rental? Let him speak. Listen, gather the information. We're going to use that bat with him again later, OK? Know that makes sense. Now, I understand you're getting older now. And did you say this was the last rental? Oh, yeah, this was the last. This is my last one. You are you're an investor. Did you have a lot? So now what I'm trying to find out is what level the what was the conversation I'm going to be having? Are they are they a savvy investor or not? That's kind of what I would be doing at this stage. OK, and then you just go in order of your conversations.
Gavin:So I know we've got some great information. This is a three one. I know you've got a renter in there for about six years, a thousand a month. A question we didn't ask you. How was the roof? The roof. Eighteen years old. OK, so probably needs a new roof, is that right? Oh, yeah, it does know. Is there an AC? You can ask these questions, whatever, whatever it is. Now I might want to own this and go into a bit more detail in trying to get actually a price. So. OK, ok, great. I mean is there a price in mind that you're looking at selling this and then you might get. Well you called me. What offer are you going to make. You might get that now. I understand. Now I definitely want to make you an offer, but you must have a price in mind, right? I mean, what's the lowest you would take? I'm going to have one more go at it. Right. And if he says, well, I don't know, I've not really looked unless I happen, then I might go. Let's say this house is worth two, three. Right. It needs some work. It's old, I might say. So what would you say to me? Either I need to look at this book.
Gavin: Let's say one hundred thousand. I mean, am I even close at that? What do you think? And I'm trying to get himself going. Well, maybe I need to get one for you or whatever for this deal to work, but I'm trying to get him to buy and him go, oh, no, absolutely not. I'm not going to pay one hundred thousand. That's way too late. Oh, no, I'm just trying to get a gauge. I'm interacting being person. OK, so and here's one of my favorite moves. Alright, so ok. One hundred thousand. You're not going to accept that. But let me ask you a question. How close are we. And now I'm going to try and get him to give me the number. To go in three different ways to try and get this number. And this might be enough for him to say, well, I need at least one seventy. At least I have a starting point that I've been able to get. OK, so that's how we'll do it. How close are we? I would also say so.
Gavin: OK, now let's say the price is a sticking point, right? We're a little far off. So now I'm going to go down to the time frame so I might say, OK, all right. You want one seventy? How quickly looking at making this happen. So is this a no go? What do you mean or say. Well, I'd like to do it tomorrow. OK, so time you want to act on this real quick, let's say you're not interested in probably renting it for a year or two to me and then then selling it say not work. So what's happening in this now is I'm moving into it. I'm touching base in the sandwich or an assignment lease option. Right. So I'm just putting in the lease option in a subtle way to say, oh, no, I really need to sell a really quick one. I'm actually getting in here. Guys, you need to write these four things down in the book. No. One is the motivation of the seller right situation? Motivation is number one. Number two is the price. Number three is the time frame. The time line number four is the condition. That is what I'm actually trying to get throughout this conversation. So how quickly do we want to happen?
Gavin: OK, so we have a price that's high, but we have something that needs to happen tomorrow. OK, so we need to work on that now. I need to figure out what's more important to the seller, OK? Is it the time frame or is it the price? Because we can't have both. You just doesn't know. We can't have both you and then the condition. OK, so it looks, as you said, remember listening five years is had a renter in there. He hasn't had a roof for 18 years. And I'm making this up, but I'm remembering what he's told me. So, Joe, what's the condition like? I know you said about the rooftop being changed for 18 years. How have you been inside the property? Olin been inside for five years. So you don't actually know what condition we're looking at, is that right? Oh, no, I don't actually know. OK, you don't have any recent pictures. Not OK. So the conditions are going to be a major factor in terms of my offer.
Gavin: I mean, this house is fifteen hundred square feet. I mean, how much do you think would be needed in repairs? Can I get a repair estimate from them? So when I'm gathering this information, I already know what he needs and where to best position that office. So like we talked about earlier. Is it cash? Is it sandwich lease option? By gaining these four things, I know where I need to be and what I need to offer. And if this call ended, I've gone into debt for you as an example. But let's say that he wanted to get me off the phone real quick, wasn't really chatty. I might just send him all three offers, but if not and I said I might be an experienced based on the scenario that I've given you, what am I doing? He said, Well Joe, I'm just going to ask you a question. So you want the price of one seventy and you want to do it tomorrow, is that right? Is that kind of the main thing here?
Gavin: And he might say, well, yeah, it is. Just say, look, I'm just going to be honest with you. I can I can we can close. I'm not smart, but we can close pretty quickly. But I've got to come down that price. I don't want to waste your time all if you're willing to wait, then I can probably get you towards that price if you're willing to. I mean, what's more important to you? And again, feedback, feedback and then recycle. That's what this is all about as you get better. But having a framework and then you will get more confident as you go. This doesn't happen overnight. All right. And you Olin will never be ready. Just get your questions ready and let's start getting on the phones and getting better. Analyze yourself. One of the biggest things that you can do is record your own calls because you need to see what did I do well, on call one, what should have been better and then call ten. And look, it's going to show you night and day how much better that you are being on the phone. So record your calls is going to be the fastest way of learning role playing with family members and engaging in that way.
Joe: So key what Gavin was just saying about setting the agenda up front. Did you guys catch that, setting the agenda up front? And you asked him what were the questions that you ask again up front? Gavin, this is write this down, guys.
Gavin: So, yeah, the thing is, is the time frame, right? I'm bringing the agenda and the outcome of the three and then given permission to say no. Right. If this isn't for you, because that's just going to calm it down. I'm not here to sell you again. I'm very big on analyzing the person coming at me, and I need to bring them down to level before we can engage. And by agreeing, the biggest thing you can do is just agree. Oh, you're another investor. You're going to love me. I'm sick of you guys calling me Joe. Honestly, there is nothing worse than people calling you lobal. And I'm with you. I know this is. And he's going to go, Joe, I'm with you. I'm 100 percent I agree with you. Soon as we agree, he can only shout for so long before he goes. Oh, you agree. So what are you going to offer then? Well, actually, I'm looking to maybe rent something and give you some more money. But if this isn't going to work, it's not a big deal. And I'm trying to bring it bring the level down, OK? And obviously have a conversation with him.
Joe: Christopher has a good come in here. Be the reluctant buyer important. You're not chasing them. You're not. Remember, we talked about you're not the deal creator, your deal finder. You're just getting the seller to talk. Hey, mind if I ask you some questions about this house? So I want to talk about what to say to lease options or lease option deals in particular. I'm actually going to share my screen here and show you my script. And I have two scripts and want to share them with you. And Priscilla. You'd make a good point here. Yes. You want to build a rapport and when you build the report, it shouldn't let me see you guys see my script here. Just want to make sure we're good. All right. This is part of my script that I like to use, and it's real simple, but you do build rapport.
Joe: And in my course, in the lease option, of course, when we talk about this and all of the courses, really you just asking questions about the house and the less research you do up front on the property, the better. So you're not going to like, spend a bunch of time on Zillow and looking at Google Maps and Street View before you get to look at the house. But this is what I kind of like to say when it comes to lease options. Hey, my name is Joe, I'm calling about that property you have on Zillow. I was wondering if you were interested in maybe selling it as a lease purchase. That's a good way. Right to the point. You know, sometimes I take it where it's a little slower, it's like, hey, you know, I saw this beautiful house you had on Zillow. It looks really nice to mind if I ask you a few questions. Is it still available? All right, cool. Have you thought about maybe doing it, at least purchase on it? If they say maybe tell me more.
Joe: This is an angle that you can take. This is an alternate script that I use but says, yeah, I own a property management company. And you do if you're an investor, you manage properties, maybe your own OK, or you do them in as a lease option. But we specialize in lease purchasing and the situation that we have right now is that we have more tenant buyers than we do properties to offer to them. So we're looking for additional nice properties in good areas. That's the reason I'm calling today. You're looking for nice homes in nice areas. How does that work? Well, we're looking for some nice properties that we can lease in a long-term basis for our clients. This is a sandwich lease option script. OK, there's no charge for this, we get paid for our buyers, we don't charge you any management fees like traditional property managers, we make the rent payments directly to you, we collect the rent from the tenants.
Joe: You don't have to worry about collecting rent ever again. We guarantee the rents even if the property becomes vacant. We're responsible for all the minor maintenance, maintenance, repairs. And this frees you up from the typical landlord headaches. We're not realtors. When your property sells, you don't pay any commissions. We'll also pay the closing costs. Now, I'm kind of I don't want this to sound like this is the first thing you say to them, because it sounds like I'm spewing out all of the stuff. This is after building a little rapport with them. All right. So we're not realtors commissions. How do you get paid? What we make our money from the tenant buyer when they purchase the property. OK, now let me show you the other script that I like to use. And by the way, this is I'm just showing you this stuff. It's in my course. But this is a it's not going to share on my screen. It's a simple lead sheet.
Joe:So what we recommend is you print a lead sheet, has a bunch of fill in the blank stuff, OK? But it's like, hey, this is Joe. I'm calling about your house for sale. Sounds like a cut in the middle of something. OK, or is the house still available to you, the owner or the property manager? I'm looking for a nice home in the nice in a nice area. Do you mind if I ask you a few more questions to see if it would be something I'd be interested in asking? A lot of questions. Good home, nice house, good schools. Build a little rapport. Be nice. Compliment the house. These are some questions I'd like to ask. If it's a fizbo for sale by owner says sounds like a nice house, why would you even want to sell it? Why haven't you sold it yet? Why don't you just listen with the realtor? You've got a lot of time to wait until it sells, right? For the price you want. What are you going to do if you can't sell this property? You going to rent it out? I love that question. If it's a rental property, sounds like a nice house. I'm sure you get lots of calls. Right. Why haven't you leased yet? What's going on? Maybe it's only been a few days. Fair question. Right.
Joe: Well, you know, this may not work for you and you're probably getting tons of calls on this property, but I'm looking for some more property to buy in the area. You wouldn't maybe consider selling your house, would you? You wouldn't be open to maybe leasing it for a couple of years and then selling it, would you? I'm using negative phrasing there. Then when it comes time to ask, talking about lease purchasing, I said, you know, I'm an investor. I don't know if this will work for me, but what if I could lease your property for a year or two and then buy it? That wouldn't work for you. What if I could lease your property for a few years, take care of the maintenance, repairs, vacancies, and then buy the house without charging any commissions? What would you want to do then? So I'm just asking questions before I would go out and I'd vomit. Give this huge long fifteen-minute presentation about how awesome lease options are. I stop doing that and just asking questions instead.
Joe: OK, so this, this whole conversation shouldn't take more than three to five minutes. OK, let me move this thing up here so I can see what I'm doing. All right, let's do some role plays. OK, some of you by the way, are asking how do I leave a comment? Dana, just put Illume video, a little instructional video in the chat to show you how to do that. We're going to be giving away the Apple Watch to another person who leads a review on that video that we posted in here in the chat. So if you want a chance to win that watch, I don't care if you leave a second review, just make sure it's different than the first one. But watch that loom video that Dana just put in the chat, OK? And Jeff that lease option script is in my class, which you have you have the course, by the way, people are signing up. We've already got several people signing up. And in a minute, we're going to we're going to give some congratulations to you all. So I'm excited about that.
Joe: Dana, Lauren, keep on sending us the names of people that sign up. All right. So let's do some role plays. This is one of the things that we love doing with our coaching clients. You know, when we're working with somebody, this is going to be super, super powerful for you guys. No, I think we're fine. All right. Let's do this. We're Gavin, you're a property manager. You have a house listed for rent. I send you a text. Hey, I saw the rental. And you wouldn't be interested in maybe selling it, would you? You or your client, and you respond back? No, I don't know. Maybe depends. Something like that. OK, yeah. All right. Ring, ring. You say hello. Hello. Hey, Gavin, this is Joe. How are you.
Gavin: Yeah, good. Joe, how are you?
Joe: Excellent. I'm the guy was just texting you about that really nice house you have there. Yeah. OK, are you doing excellent. You're the property manager, right?
Gavin: I am, yeah I am.
Joe: It looks like a real nice house. You're probably getting tons of calls on it, right?
Gavin: Yeah, we've got a lot. We've got a lot of interest actually.
Joe: Is it still available?
Gavin: It is. Yeah.
Joe: Nice. Nice. OK, do you know the owners very well? I'm sure they investors they own a bunch of properties?
Gavin: Yeah. They got a couple of doors and I think you said it was it you that said you're interested in buying it? Maybe.
Joe: Yeah. That's why I was reaching out to see if they maybe had any interest in selling it.
Gavin: He did mention it at one point, but I'm not 100 percent if they're still interested. But he did talk about maybe selling and selling this one off.
Joe: Does he have other properties he also wants to sell maybe or just this one?
Gavin: Now he's got one more. This and two total.
Joe: OK, nice. Do you have any idea about what he's looking for?
Gavin: I don't. I don't. I mean, we're asking fifteen hundred in rent right now, but I don't know, you know, like I said, I just got your text and you caught me off guard today. I don't know. What do you want to pay?
Joe: Well, I appreciate you just taking the time. I just want to ask you a few more questions about the House. And by the way, I am a licensed agent with Keller Williams, but I'm not looking for any listings. I'm not even representing myself. So if you can bring. He deals, I'm looking to buy more deals in the area, you can represent me and get both sides of the commissions you're interested in, but I'm looking for deals. That's why I'm calling and want to buy some more properties in the area. This one in particular on Main Street here is it in pretty good shape?
Gavin: Yeah, it's in good shape. We just we've had it for about 60 days and we did a paint and a carpet actually. It's in really good condition.
Joe: And what about how old is the house?
Gavin: Yeah, it's probably nineteen eighty.
Joe: OK, and you know when the last time like the kitchen was updated or anything like that?
Gavin: I don't, I mean it's not, it's not new by any means, but it's is nice enough to live in as a rental.
Joe: So how long is the owner owned it.
Gavin: Good question. I mean we've been working with them for about three years, but I don't know how long he's had it.
Joe: OK, do you have any idea what he'd want for it or what he what he might consider what would be a fair offer?
Gavin: I don't know. Now, what do you what do you want to pay for it?
Joe: I don't know yet. I've not seen the house.
Gavin: You want to come and see it?
Joe: Well, I'll tell you what. I can do it. I can do a little research here. Just look in the area. I just was looking for four potential deals that I can make offers on it, but this guy doesn't work out. Do you have any other buyers or any other landlords that might have some properties they want to sell to?
Gavin: Um, not right now that come to mind.
Joe: OK, well, let me do some research. I'll look in this property, maybe come up with a range or something like that. I can get back to you. But let me ask you something else. Do you think he would consider maybe renting it to me as an investor and then selling it to me later on down the road?
Gavin: Yeah, possibly. I mean, if you will. Like I said, you want to send something over. I'm happy to have that conversation with him, maybe. Yeah.
Joe: All right. Let me do some digging here. What's your email address? I'll send you something.
Gavin: One, two, three. At Gmail dot com.
Joe: OK, cool. All right. Thanks, man. Good talking to you, Gavin. Thanks. So I just wanted to keep it super simple, like no hard pressure sales. I'm not trying to get him to say yes one hundred times or trying to nail down a price on the phone. The cool thing is I got a landlord who has a rental property that's willing to sell it, maybe if it's a good offer. So I'm going to do a little research. If I could have maybe pulled it up on Zillow while he was on the phone or Redfin and see what similar properties are actively selling for. But the property manager probably has no idea what the seller would want, right?
Gavin: Yeah, I'm not trying to think you guys at a neutral place is we are trying to not get in character actor, but act like the real scenario is that you're really going to come up against and have they really will act with you like the questions that they might not know. So we always try and do this because that we could make it easy. Right. And just say, oh, yeah, sure, yeah, he wants this. But again, I don't want to make out that that's what happened. So trying to give you realistic things that you're going to come up against. But again today, all the conversations alive in this deal, when Joe makes the offer, we have a follow up day. Did you manage to speak to your client? What do you think about this offer? Would you do this deal and you can kind of push him a little more to say, actually, yeah, I'd do it.
Gavin: If you can get the property manager on the side. He's the one delivering it to the seller. Right. So he's sure if he doesn't believe in what you're doing, you're up against it. Right. You've got to get him onside. You've got to get your realtor there real to Olin side wins. You're up there on side. They're going to be like, hey, I think you should look at this. Just think about it. Like, if I'm the property manager and I like Joe's offer, I'm going to go to Bob and say, Bob, like we've had this offer. I know it's not moving. I think you should look at it. This is a great offer. Seems this might be what you need. All that delivery, if you can get them on that side, is really important and that property management has other leads.
Joe: They're managing other investors. I've never met a property manager that said no to these two questions. Number one, do you have any landlords that are looking to sell one of their properties? Every landlord has got a bunch of properties. He always has one they want to sell. Number two, do you have any landlords that you have properties you manage that are looking to buy more so you can get a great way to build relationships with these guys to find buyers and sellers? OK, let's do another one, Gavin, where I'll be the homeowner. Your Vas that's cold calling. I answered the phone and they said, Hey, Mr. Joe, we think you own this property. What did you mean? So that you wouldn't be interested in selling it, would you say? Yeah, maybe make an offer. You get the lead, you call me. Can we do that?
Gavin: Absolutely. OK, so hello. Is this Joe?
Gavin: Hi, how are you doing. He spoke to Jeff yesterday about property on one, two, three Main Street.
Joe: Oh yeah. Yeah. OK, it's up.
Gavin: You got a minute?
Gavin: Joe only I just need a minute. I've got a few more questions to ask. I'm a local investor and I'm looking to buy another property in your area. I know you've expressed interest in selling. I want to find out a bit more so I can get an offer to you that hopefully is going to work for both of us is OK. Yeah, OK. So it looks I spoke to Jeffie. It's a three one, is that right? About fifteen hundred square foot.
Gavin: OK, and it says here my notes it's renting for fifteen hundred. You've had the tenant there for five years. Is that right?
Gavin: OK, one question you never asked, Joe. How old's the roof? I was like, I need to find that out.
Joe: Oh, I don't know, I've never replaced it, actually. OK, it's in good shape.
Gavin: How long have you owned the house?
Joe: About 20 years.
Gavin: OK. Oh, nice. OK, so you probably you think you might be due a new roof, would you say?
Joe: Yeah, probably.
Gavin: OK, what about the AC? Does it have an AC unit?
Joe: Replaced that about five years ago. It's good.
Gavin: OK, I'm just curious you like I said, I'm looking to buy another house in the area. But why are you even interested in selling this?
Joe: Well, I'm not. You guys called me. I mean. I mean, yeah, I like if the price is right, I'll sell it.
Gavin: Yeah. It's funny actually, because I always get that when people say, well, you called me. Well, normally you would have just said no if you didn't want to sell it. So I'm sure there's something maybe a reason. I mean, is it a hassle for the tenants then?
Joe: It has been OK. They've been there five years, I think, and they just got they just decided to move on. And I got a bunch of properties around here. OK, yeah. Yeah, I'm getting old. I'm getting to a point where I want to start selling some of what I have maybe. But I'm not going to give them away. You know, I'm not in a super big hurry to sell them.
Gavin: Absolutely. And I don't blame you. So how many how many are we talking? How many do you have?
Joe: Oh, I don't know. Ten, twenty. Thirty.
Gavin: Oh, wow. OK, and how many are vacant?
Joe: We keep a pretty tight ship. I only have a few that are vacant at any one time.
Gavin: OK, do you have any I mean, like I said, I'm interested in this one on one, two, three Main Street. But do you have any that you'd rather sell first?
Joe: Yeah. You know, I got one across this across the street. Down the block.
Gavin: What's the address on that?
Joe: One, two, three. Main Street.
Gavin: OK, awesome. Off roleplay. I would now go and get details on that. I don't want to waste the time. OK, great. So I've got the new details on this one. Joe, let me ask you a question. Obviously, this one's vacant. I understand the problems that you've had. What price would you would you sell this for?
Joe: I don't know. I was looking at the other day, Zillow. That's worth about one twenty. I'd probably sell it for somewhere around there maybe.
Gavin: OK, so are you looking for retail? Is that right?
Joe: You know, I'm well, you know, it needs some work, so I'm willing to you know, I could probably get a contractor in there to fix it all up for fifteen grand or something.
Gavin: OK, OK. I'm actually looking at, just jumped on the Zillow actually. Looks like you said one twenty. I can see here that things are selling for about fifty-six. Sixty, sixty-two. Does that sound about right?
Joe: Yeah. Those are, those are properties that need a ton of work.
Gavin: OK, but yours doesn't.
Joe: Those are foreclosures.
Gavin: Oh OK. So what would you say to me. Just I have not seen this but what would you say if I offered you sixty. What did you think? What would you say to them?
Joe: No, I know what you're trying to do here, but sixty and I'd never do it. I'd never give it to sixty. But if you find a deal like that. Give it to me. I'd love to buy it.
Gavin: Yeah. Oh so you're looking at more deals. Well we can come onto that. But let's talk about this one. You want to sell how close to 60 can we get?
Joe: Oh man. I don't know. Why don't you just make an offer. Send it to me. I'll take a look at it.
Gavin: All right. OK, well, this is what this is what I want to do, Joe. Soon as we take care of this one, OK? Because I think we can make you an offer. I think we can make this work OK. I'm interested in buying your other ones is all right. So you want to offload them. I'll be ready to pick them up. How does that sound?
Joe: Yeah, OK.
Gavin: And just so you know, I'm going to try and make it simple. You know, I don't we don't want to go back and forth. We can make it work. It's got to be a win win. I understand you're in the business. I'm not here to waste your time, OK? Yeah, right. So I'm going to go do this. I'm actually going to give you a call back. I'll send the offer, but I do want to get back on the phone and have a conversation. Is that all right?
Joe: Sure, yeah.
Gavin: OK, what about tomorrow at 10:00 a.m.. That'll work. Yeah. OK, I didn't ask you, the full decision maker, is there anything else that you need to consult with on this?
Joe: Yeah, my wife, I'm it. My wife died twenty years ago.
Gavin: I'm sorry to hear that. OK, pay your respects and OK. Ten o'clock tomorrow then we'll get back. OK. All right. Thanks. Appreciate it.
Joe: Very good day. Thank you. All right. Good job. Just asking questions. Right, not high pressure. How long was that conversation? three, four minutes. Five minutes max.
Gavin: Yeah. The other thing is as well, when this is a real situation that comes in and he doesn't want to sell one, but he has more and then I'm out. Which one do you want to sell? I'd rather go where the motivation is. That's what I'm trying to do. I'm trying to shoot from will come back to this one. Will you go on down the street? OK, let's talk about that one. I can we might not want to that I would position.
Joe: Yeah. Excellent. All right, let's do another one. This is B a lease option, OK? And Gavin, I sent a letter to you. You had a property listed for rent on Zillow. You got my letter and you called left a message. I'm calling you back. This is a nice house, suburban area. Two hundred grand.
Gavin: What was your letter? Was it a rent to own?
Joe: It was listed for rent for eighteen hundred and you used to live in it. This is a real common nicer rental property that's listed for rent, used to live in it and you got my letter and so you say hello, hello? Yeah, hi, Gavin. I got your voicemail just a little bit ago about your property, that one, two, three, Main Street. How are you?
Gavin: Who's this?
Joe: Joe. Am I calling at a bad time, by the way?
Gavin: No, no, not now. That's good.
Joe: OK, cool. Yeah, I you got my letter apparently about your property there at one, two, three Main Street or something. No.
Gavin: Yeah, I remember that. Yeah. Yeah.
Joe: OK, nice. And so I sent you the letter asking if you would be interested in selling it. I think. What was it you were renting this house out or something like that? How did I find this property. I don't even remember. I'm sorry. I've been talking to so many people. I'm a little embarrassed.
Gavin: Yeah, this is a rental. I don't have a renter in there right now.
Joe: OK, OK. And where is this at again? What's the address? One, two, three. Main Street. OK, cool. Yeah. All right. Yeah, I'm looking at it right here on Zillow. I see that it's a nice house, a really nice house. And so you've been trying to rent it. Now why are you why are you renting it.
Gavin: Well we this we used to live in it and I turned it into a rental and it's you know, we had a tent for a year and then we're just going to rent again. We owe too much money to sell it, unfortunately. So I'm just going to rent it out.
Joe: So how long ago did you move out?
Gavin: Well, we have it rented and I moved out probably about a year and a half ago, rented for a year and now it's vacant again.
Joe: OK, well, it looks like a real nice house. I'm surprised. I'm surprised you weren't able to sell it. What do you think happened?
Gavin: It's a great house. I just can't list it. I'd love to sell it, but I can't. I owe too much money. So we're just going to rent it until we can get more equity.
Joe: All right. Well, the pictures look really nice. I mean, how is there any work that needs to be done to the House? Is it in good shape?
Gavin: Yeah, pictures are up to date. Have you seen the pictures?
Joe: Yeah, I'm looking at some of them here. OK, but the kitchen, like it looks like it came. It's original kitchen that came with the house. Yeah, it is. It is.
Gavin: OK, so I got your letter about you buying and renting and I didn't know what it was all about, so I called. Yeah. See, see what we could do.
Joe: I'm just looking for some more investment properties in the area and I'm thinking about I like this area. I'm very familiar with it. You know, my kids play sports over there in that park that's and by that area. But do you have any idea what you would need to sell it for what price?
Gavin: Not really. I think about two hundred thousand. OK, and we owe about a hundred and eighty-seven hundred and eighty-seven.
Joe: And what do you think the property's worth in those areas? What are they selling for right now?
Gavin: I think it's worth two hundred thousand and I call list it with a religion, pay commissions because I don't have the money to bring to the table. So that's what I'm trying to rent it now.
Joe: You wouldn't consider maybe just leasing it to me for a little while and then selling it later on down the road, would you not?
Gavin: How would that work? So you want to move in?
Joe: No, no. This is an investment property, so it's real simple. I have a bunch of tenant buyers right now on the verge of getting a mortgage. I would rent the house directly from you. I'd send your rent check every single month. I take care of the minor maintenance and repairs and then I would buy the house from you when my tenant buyer's ready to buy it. But that probably wouldn't work for you, right? I mean, you could handle this probably yourself managing it and things like that. You wouldn't be interested in me managing and take care of taking care of the vacancies and stuff like that.
Gavin: I mean, maybe it's something you can set. Well, how do I pay you, though? I don't want, I can't be paying you.
Joe: Well, I get I get paid from the buyers. I get paid. I mean, I could pay you cash for the property, but like you said, you don't have enough equity in it. And but one of the ways I buy properties is I will lease it from you for a little while and then buy it from you later on down the road. And during that time, I'll take care of it. Let me ask you another question here. What is your, you owe about 180 something? What is your monthly mortgage payment, if you don't mind me asking the payment?
Gavin: It's about twelve fifty a month.
Joe: OK, what was it what was it renting for before?
Gavin: We were renting for eighteen. Well we make some money, you know, we make money but I didn't want to sell it. I said I can't right now.
Joe: But you're not in a hurry to sell it, right? I mean, you could if you couldn't put a deal together today, you'd be fine renting it out for another few years.
Gavin: Yeah. I mean if that's why I have to do.
Joe: Is this a now thing for you or later thing for you?
Gavin: It depends what you can offer me.
Joe: OK. Yeah fair enough. It looks like a nice house. A beautiful neighborhood. It is. OK, so let's do this. Let me look at some numbers. Sharpen my pencil a little bit. I can see your pictures here. I can see it on Google Maps and I will put together a little offer and send it to you. And can we schedule a time to talk later today or tomorrow morning? So that's good tonight at 6:00 with that work. Yeah, that's good. And if you don't mind me asking to be married, does your wife need to be part of the conversation here when you're looking at my offer or what? Oh, yes, she needs to be present. Very good. All right. Can she be on the phone at six?
Gavin: She'll be there.
Joe: All right. So let me send something to you and let's talk again later this evening and let me get your email address here and let's talk later. Thanks. I'll get good. Good talking to you, Gavin. Thanks. Bye. Now, we'll talk about the offer I would make Vincent is just asking you on that deal, what kind of offer would I make? So help me remember the worth about two hundred thousand. You owed one eighty-seven. And the rent your mortgage payment is about twelve hundred. It rents for about eighteen hundred. Twelve fifty. Yeah. So we'll talk about how I make the offer. Actually it's pretty simple there. Yeah. Nice. Yes. I'm trying to make it really easy guys. It's just asking questions being let them sell you on the house. You're not selling a lease option program. Right.
Gavin: You're just one guys putting the chat wall. Which offer would you make? What's likely to work for this? Put in a cash offer, one cash offer, two assemblies of three, an assignment lease on that last deal. What would you do?
Joe:So a lot of people are saying sandwich lease or a lease option assignment seemingly. So that's pretty much what everybody's saying. Yeah, yeah. I would do a sandwich lease option probably first because there's great, great cash flow in that deal. Right. I'd make a sandwich lease option, a buyout offer to buy it from him for what he owes on it in five years. And I would basically take over his mortgage payment. Yeah. And then if he says no to that then I would do a lease option assignment or something. Yeah. Cool. Thanks, Vincent. Vincent wrote down the numbers in there. So Vincent, when we get to that, let's look at it. All right. Cool. This roleplaying is so important, guys. And I want to emphasize this to you. Back to this this agenda here. You need to practice the stuff. You have scripts. You can find some online. You have ours.