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  • 944 » Deals Gone Bad #8 – How A Wholesale Deal Turned Into A Crime Scene Investigation with Nick Perry

How do you sell a property when you know someone died there? Even better, how can you even conceal it when the real estate investors are on the property when the body is discovered?

Any deal can be rescued when there’s enough meat on the bone to account for extenuating circumstances. That’s what Nick Perry says about the $75,000 spread he was expecting from a motivated seller in Louisiana, but that turned into something else entirely when someone disappeared on the wooded property.

There’s always some risk when you’re wholesaling in your own city, but virtual wholesaling can get even more exciting when you don’t know the history of an area or a house. Nick talks about the lessons he and his team learned when they had to manage a rocky deal long distance. Going forward, he’s put in some additional steps to protect himself for the next time a body might turn up on one of his properties.

I hope you’re loving all of these stories because the advice coming out of them is absolutely golden. For a copy of all of the Deals Gone Bad, text the word BAD to 313131 for access to my mind map, and all of the best highlights from this series.

Watch and Learn:

Listen and learn:

What’s inside:

  • No matter how bad the situation is, remember that the numbers don’t lie.
  • Why Nick pivoted out of Austin, TX, and into virtual wholesaling.
  • Nick’s strategies for buying and selling in small towns.

Mentioned in this episode:

Transcription:

Download episode transcript in PDF format here…

Joe: Hey, what's going on? Welcome, this is the Real Estate Investing Mastery podcast. Hope you're doing well. Got an exciting episode for you today. We're continuing our series here on Deals Gone Bad. And I'm not trying to sensationalize any of this or try to glorify bad things that happen. But like, I've felt like this is an important topic to talk about everybody. We kind of hear all the good stories. We hear the success stories, we see the checks, we see the Lamborghinis. And I'm not that kind of guy myself. But if you've been on social media, you know anything about following gurus and real estate influencers. No one really talks about their bad deals. I've got a lot of them. And you've heard me say this if you've been listening to this series for any time now, that wise people learn from the mistakes of other smart people, learn from their own mistakes, wise people learn from the mistakes of others.

Joe: And so there's a lot that you and I can learn from following other people's examples and listening to the mistakes that they made. Or maybe that wasn't mistakes. They just didn't know. But this is the best way to learn. I know the best seminars that I've ever gone to are the real deals that we did that didn't work out or something happened or we just I learned from my lessons about how the importance of having multiple exit strategies. Right. I've learned from lessons learned. I mean, I knew about it in seminars and books that I bought. I knew the importance of cash flow on a deal, but I didn't really, really learn the importance of cash flow on a deal until I had a couple of bad deals that didn't cash flow and it wasn't consistent. So that's what I'm hoping you get out of this.

Joe: And as we've been doing this podcast series, we've been putting together all of the notes and the lessons learned into a mind map, which is eventually going to become a resource or PDF or something like that that we're going to put together. But if you want access to this mind map, to these notes, to the other podcasts, the transcripts, we have a mind map that we put together and it will eventually become a PDF or something easy. But it's really easy to view our mind maps and you can get that by texting the word bad to thirty-onethirty-onethirty-one. If you text the word bad to thirty-onethirty-onethirty-one, you can actually get a copy of these notes and all of these lessons learned and eventually they'll become a resource that we're going to give away. Or you can go to JoeMcCall.com/bad, JoeMcCall.com/bad.

Joe: And that will forward you to a place to get these notes. And again, I'm excited about getting these lessons learned into your hands, because already this is, I think, our number eight that we've got coming up here with Nick Perry. It's going to be really cool. But already there's been just invaluable. Like you could spend one hundred thousand dollars on this seminar and still be worth every penny from the lessons learned from the folks here that are gracious enough to share their experiences. All right. So go to JoeMcCall.com/bad or text the word bad to thirty one. Thirty-one. Thirty-one. I hope you guys don't like that keyword, too. I'm using the software called Easy Texting for these kinds of texting things and that keyword bad cost twenty-five dollars a month, which is a lot, but it's not a big deal. I just thought it was funny.

Joe: I've never heard anybody else have the keyword bad for something like this, so I just want it to be bad and try it out I guess. All right, cool. So we've got a cool guest today on his name is Nick Perry, and Nick has a very interesting deal where the property kind of became one of the properties on the CSI show. I'm just kidding. It became a crime scene investigation. And actually, like our similar previous guest that we had just the other day, Todd Toback, this is a deal that looked really bad, but it actually turned around. But there are some really good, valuable lessons learned from this. So, Nick, how are you, man?

Nick: I'm blessed, man. I'm enjoying the day awaiting the results of this election like everybody else, but I can't complain. Either way it goes, we're going to keep doing what we're doing.

Joe: I posted something funny on Facebook the other day. It's hard to find humor in Facebook these days, isn't it?

Nick: It's pretty dark right now.

Joe: But I've posted something that was kind of funny. I borrowed this from somebody else, but I'm going to read it to you guys here. I thought it was pretty funny, but here it is. It doesn't matter who this is, like one of those pictures with words in it that you see on Facebook. It says it doesn't matter who you voted for. If by Wednesday morning you're ready to leave the country, remember, I can buy your house with cash and have you on your way in two weeks.

Nick: I'll be waiting for this call. Or you can call me too.

Joe:So if it is Wednesday and we still don't know. But by the time you're all listening to this, hopefully we do know who won this election. And if you want to leave, go ahead. Just call us, send us some information about you and your house and we'll make an offer to buy it. But anyway, Nick, did you stay up late last night looking watching the.

Nick: For the reason I stayed up until about eleven o'clock my time. I'm in Texas. And then I realized that was going to be a clear cut winner any time so called it a night, got up early, worked out, got my butt to work.

Joe:So I had a hard time sleeping because I kept on dreaming that I was opening up the news and I could see who won. And then I woke up super early and I finally just got my phone and looked and they still didn't know. And anyway, let's talk about frustrations. All right. All right. So, Nick, you're in Texas. What part of Texas?

Nick: I live in Austin. We do deals all over the country, though, so we've got deals in Hawaii right now, deals in Florida and everywhere in between. We've been operating that way for a while. Sobeing in Austin is great. But being a wholesaler, it's a little more challenging. Your cost per deals pretty high here. So we market everywhere. We get a better return on our working and spending places here. But it's not one of our main markets.

Joe: I have a brother in law and some family in Austin, Texas. I'm going to probably send this link to them because they have some interest in Austin, in real estate, I mean, investing. But Austin is a very difficult market. It's expensive, it's competitive. But that's a great thing about this business, right? You can do it from anywhere, anywhere in the world, anywhere in the US, right?

Nick: Yeah. With technology now the way it is, it's made our job completely remote. Like I said, I've got deals in various states all over the country. I don't think I have a single deal in Austin right now.

Joe: What about your business? A little bit here, Nick, in terms of like volume, what kind of volume are you doing? And before we get to this bad deal, I'd like to ask you a little bit about how are you finding these deals in virtual markets? So, like over the last 12 months or so, how many deals do you average a month?

Nick: We'll average closed and funded anywhere from twenty-five to thirty-five a month. So we're anywhere from two hundred seventy five thousand dollars a month. Gross to last month was a record month. We had four hundred and seventy-six thousand in September. Now these are wholesale fees.

Joe: Nice man. Good for you and you're wholesaling all of them. Right.

Nick: Yeah. I mean we'll whole tail so we'll put them up on the air, take them down and put them up on the market. We've kind of found a way to remote whole tail where we'll basically get a good investment friendly realtor to see the project for us. We're not doing any extensive remodels or anything like that anymore. I've been there, done that, got the T-shirt and don't really want to go back.

Joe: But that's the whole lesson learned episode right there, isn't it? So how did you pick these markets?

Nick: Well, what happened was I was really struggling to get off the ground in Austin, so I started going to neighboring cities, San Antonio, Houston, Dallas. And at the same time, I was doing a lot of SEO and I was getting leads from Ohio, Pennsylvania, you name it. I'm getting all these leads. And if it wasn't in a Texas city, I was trashing them. And I just say I can't really help them. And I remember I kind of a light bulb went off 2016, 2017 me and my COO just looked at each other, like, hey, let's take a crack at one of these and see if we can do it. It's not going to be that much different. And lo and behold, we got a deal under contract in Harrisburg, Pennsylvania. I signed it to an investor for yeah I think it was like a fourteen thousand dollars profit.

Nick: So that was proof of concept, like, OK, we can do this. We immediately did another one I think in Cleveland or somewhere like that. And then we were like, well, let's go in and try to start actually marketing for this because these were just organically. So I opened up my PPC and my digital advertising nationwide and we just started taking those leads. And through a lot of trial and error, we became very good at knowing each of the different regions of the United States and what investors are looking for. And we've got pretty, pretty good at. It didn't happen overnight. But yes, it's what we do every single day.

Joe: Good for you, man. And so are you doing mainly Google, PPC or Facebook ads or both or what?

Nick: We do. We do both. We do Google, Facebook, Instagram, YouTube being pretty much anywhere that there's attention and eyeballs on the Internet. Try to be there.

Joe: Nice. So let's say you get a house in. And I love this because I created a course with a guy named Larry Goins. Did you remember promoting that called Small Town Profits? Were you part of that?

Nick: No, but I saw you promoting it and I was like that. I'm doing the same things.

Joe: Well, the cool thing about that is like Larry isn't going nationwide. He's just going out two to three counties outside of his big MSA and he's just doing simple direct mail, getting a lot of leads, zero competition. And people wonder, like, man, you can do deals in small towns are like in these. How do you do that? But they're telling you guys it's a lot easier than you think. It's a lot easier than you think. So let me ask you something, because I know a lot of people are wondering this like, all right, so you get a lead in a small town, Pennsylvania, that you've never been to before. You don't know any buyers. They're like, how do you know what to offer on some of these houses?

Nick: So, you know, in the smaller towns, you're a lot of times you're not going to get a ton of great sold comps. Right. It might be difficult to comp the property. In those smaller towns. We look at activity. So what's the real estate market actually doing there? We'll look at the sales and we'll see how many saves they've got on the properties and how much amount of time to see how much is that market actually moving. We know if there's been a super small towns. We just did one in middle of nowhere. Oregon made like forty five grand. I think everybody would have passed it up because it was in the boondocks. But there's no inventory there, absolutely no inventory. So my COO and my acquisitions are trained to evaluate properties. Got it going on their sold comps. Looking at Zillow and prop stream or also looking at what's the activity in that real estate market? Yeah, if they're unsure. They'll pick up the phone and call realtor and say, hey, I'm thinking about buying this house. Can you tell me what it's worth? So, yeah, real estate agents are happy to help you if you're looking to buy something.

Joe:So when you're talking to the sellers, you're buying the properties, you're bringing them down.

Nick: No, we try to not tie up capital unless it's a really good deal or we have to do. A lot of times what we're doing is just strictly, strictly wholesale. We'll contract the property. Most of the time, we don't know anybody in that market. And so we're relying heavily on realtors. We've got an extremely large cash buyers list. But the majority of the time, the local realtors in that market are going to know who the investors are and be able to point you in the right direction. And as long as you make it incentivize that realtor, they'll come through for you. And they don't hear that.

Joe: You don't own the house.

Nick: Yeah, no. You just say, hey, I'm an investor. I live here in Austin. We're looking to assign this property. You're going to get some realtors that are not investor friendly. And if they're not investor friendly, then move on to the next. You know, we're talking to hundreds of realtors again. So we'll send a blast out to all the realtors in that market, get through all the ones that don't want to deal with investors and talk to the handful that are really good and hungry to go out and share the property to the right investor and get their commission and make sure everybody is paid. And win win.

Joe: Most of these are cash deals, right?

Nick: It's all cash.

Joe: Doesn't matter at all. You seem to find it investor friendly, creative real estate investor, a realtor. Now, that's awesome. OK, just one or two more questions and then we'll talk about this bad deal. What does your team look like today to do that? Many deals.

Nick:So we have six acquisitions, three dispositions. And I have a COO who runs the entire operation. And then myself, I'm basically the cheerleader at this point. I pay the bills.

Joe: How long have you been at this?

Nick: I started in twenty fourteen. I started watching Joe McCall, Shaun Terry videos and here I am six years later.

Joe: Good for you, man. I'm sure you've been through Shaun Terry's course, remote millions or something like that. Is that what he calls it?

Nick: Yeah, I actually helped him put that course together. Yeah. I was one of the teachers in the course.

Joe: Beautiful. I was just talking to him the other day and he had one of his biggest months, I think in September, September or October, one of his biggest months ever, and almost had, he said almost a million dollars in wholesaling fees.

Nick: Yeah, he's crushin. So I showed Sean how to do the nationwide thing because he saw me making my swings at it and asked me basically, hey, break down your business model. And he took it and now he's kicking my butt doing the model that I showed him. But I'm so happy for him. We can go back and forth and share ideas and stuff.

Joe:So I'm happy for you. There are no secrets in this business, you know what I mean? Now you're successful not because you have some corner on the market or some secret thing, ninja thing that you're doing. You're just you're successful because you take massive action.

Nick: And I spend a lot of money.

Joe:So you invest in marketing, right. Would you agree with this, Nick? We're not in the real estate business. We're in the marketing business.

Nick: It's a marketing and sales. It's lead generation and ad sales. Yeah, that's all it is. I came from a sales background before, so I think that's part of the reason this wasn't a whole big shift for me. I took the same corporate philosophy when I was back in the fence for corporate and applied it to to this real estate. Just the widget. The product.

Joe: I love it. Cool, man. All right. So let's talk about this deal gone bad. You've done a lot of deals. You're doing a lot of deals. You had your share of bad deals, I'm sure. Right. And yeah, OK. So one of the things I've been saying on this podcast is if you've not done have a bad deal yet, you're not been in the business long enough. We've not done enough deals yet. Would you agree with that?

Nick: I agree. Yeah. Especially in this business where you're dealing with distressed sellers, you're going to deal with all kinds of crazy stuff.

Joe: That's so funny. You your history with Sean Terry Shunter and I go way back. He was one of the guys who inspired me to start this podcast. I heard his podcast. I called him and that was when he had his cell phone. He would give away a cell phone number on the podcast. And I called him. We talked for like an hour, an hour and a half. And I was really interested in creating a podcast. This is only about three or four, six months after he created his and he gave me the idea he wanted me to call it real estate investing wizards, because there was a a book at the time called Stock Market Wizards.

Joe: And so I didn't like the word wizards. And I thought, how about master's real estate investing, masters mastery? But anyway, cool. So, OK, this bad deal, this was a wholesale deal. You're saying you were looking at like seventy five thousand dollars profit on this deal, right? Correct. And this was in Baton Rouge, Louisiana.

Nick: It was in Denham Springs, which is like the next town over from Baton Rouge.

Joe: So how did you find this deal?

Nick: It came through one of our online marketing channels. I think it came through just Google ads. This was about a year ago. Now this is when all this when this deal went down, but yet came through our Google ads channel.

Joe: All right, so the lead came in seventy-five thousand dollars, potential profit. What happened?

Nick: Yes. So Seller calls up she's a typical motivated seller. She's probably in her mid to late 30s, but sounds like she smokes like three packs of Virginia Slims a day. Yeah, she's a little bit frantic on the phone. You know how these motivated sellers are. She is telling us all this all these stories about A, I had to move out of my property. My ex-boyfriend is living in there. He's beating on me and doing drugs and this, that and the third and. All right. Well, we'll help you. Let's  see what we can do. Let's put the numbers together and we'll get it. We'll get it squared away. That's what our job is. So we run the numbers. She's like, look, I just want basically my pay off it, which is like this was like 80 or 90 somewhere in there. So we gave her ninety thousand bigger payoffs, like eighty eight. The house is worth two twenty-five.

Nick: And she had just gone in and did this really nice remodel on the property, the new kitchen backsplash, new floors. They had this awesome outdoor like area with a fire pit and a pergola like really, really well done. And I was like Goodness. I guess she inherited this property and then had some bad memories with the spouse. He wasn't leaving. They're selling drugs and doing drugs with his buddies, and I'm just done with it at this point. So we picked it up for 90K. It's worth 225. We probably could have sold it for one ninety-nine on the MLS as is. The market there is pretty hot. So we contract it and we're like, well, how are we going to get out there? She's like, I'm not talking to my ex-boyfriend or anything like that. And we're like, OK, well, we'll send one of our local guys out there and just let them know we're going to be walking through the property. And this is what's happening. We're selling the house.

Nick: Well, lo and behold, in the time that we were dispatching one of our partners out, there's all of this news going on about somebody getting locked up at this, my transaction coordinator Googled the address and found all this news, all these news articles that just popped off about a murder, murder is going on. And this arrest, there was news choppers the whole night. So the boyfriend that was living in there ends up getting locked up and was taken to jail on suspected murder charges. So we're like, aw, shit. Yeah, we had a realtor going out there on Monday. This is on Friday. We learned Monday that we were supposed to go out there and get your photos and talk to this guy. But the police were out there. We tell them just go on Monday anyways. It sounds like he's out of the house now. Should be easier for you to get it squared away with a realtor cause on Monday.

Nick: And he's like, they got the place blocked off with crime scene tape and they're not letting anybody in. And so we call the seller and the seller. I guess she's you know, she knows everybody. It's a small town. So she makes a few calls to one of her buddies who's in the police department and says, this is my house, we need to get in. So she gets us into the property. The realtor goes and has, I think, like three or four investors with them. The realtor goes with like three or four investors. And I guess over the weekend when they're doing their crime scene investigation, they had cadaver dogs and dogs searching the property. They got a hit on a body. So they found a body on the property. There's like a nine-acre property. They found a body like everybody in the Woodbine somewhere.

Nick: And so buyers are there. They're ready to do their inspection and they've got excavating equipment over there digging and stuff. So while the buyers were walking around the property, the police and all the dogs, the canine units, squad cars, everything are there doing a full blown investigation. And they're finding, I guess, the body of the person that he killed on the property while they were walking in the house now. Yeah. So everybody was all freaked out. And I thought, you know what, this is done. I'm not going to be able to sell it. Yeah, the real issue is like, I don't know, we didn't get any offers on that first day. It was kind of at a standstill. Yeah, yeah, yeah. So long story short.

Joe: That's crazy. Like, how do you even how do you sell a property knowing that somebody was murdered on it? Do you have to put that in your seller's disclosure statement, you know, like does that have to be disclosed. No seller after that has to put that in the disclosure statement or.

Nick: Yeah, I'm pretty sure that it was disclosed by something I saw that there was no hiding it.

Joe:So like, did you fill out a seller's disclosure statement where he actually wrote that down, murdered, dead body, found on the property or something?

Nick: And now I didn't see any disclosure or anything, so I didn't have to I didn't fill out any forms. I think the seller had to fill out a seller's disclosure.

Joe: But this is an assignment, which is another cool reason why we have realtors involved with this. Right. Because the real person is the one concerned about the proper the proper paperwork, the proper disclosures and all that. I mean, not that you shouldn't be not that you shouldn't be concerned about it either. Herself, but when you're working with a good realtor, realtors’ job is to make sure you have all your bases covered like that, right? When it comes to disclosures and things like that. OK.

Nick: Exactly. So a couple of days later, we get a call from one of the buyers. We wanted to sell it. We're going to sell it at like one seventy-five to a cash buyer. And they came in and we're asking one seventy-five. And then they ended up they gave us an offer at one sixty-eight.

Joe:So these buyers knew what had just happened.

Nick: They were there. They were on the property. So the lesson to be learned on this one is no matter how bad the situation is, numbers don't lie. Right.

Joe: You know, it's writing this down matter. How bad the situation, the numbers don't lie.

Nick: If you've got a good enough deal, it doesn't matter how hairy it is. Things can be things can be taken care of.

Joe:So your buyers I mean, this was such a good deal. And did you do this as a double close or as an assignment.

Nick: We double closed.

Joe: Did the buyers know? I know people are going to be wondering this, like the buyers know how much money you made on the deal?

Nick: No, because when we do the double close they never saw our A to B contract.

Joe: OK, because when you're doing these double closings, are you using a title company in Texas to help you on your side?

Nick: We have a national title company. They cover like I think thirty eight of the 50 states and Louisiana is one of them. So we just use our national title company.

Joe:So does the local seller, the local buyers. They still have to go to a local title company to sign the documents or to escrow the money? Or does your title company just handle that with FedEx or digital signatures and stuff like that?

Nick:So our title company is partner with Fidelity. OK, and so any Fidelity backed title company, they'll send the paperwork there and the seller or buyer can sit down with an escrow agent. It could be a completely different third-party title company and they'll still help them with the paperwork if needed, or they'll send a mobile notary to complete the paperwork. Whatever the buyer seller feel more comfortable with, they just take care of that.

Joe: That's so cool. All right. So I love that, though. When the I'm looking at my notes here, if you have a good enough deal, you will find buyers no matter how bad the situation. The numbers don't lie.

Nick: Exactly. It doesn't matter if they're the property's got some horrible thing that happened on its goslings. Yeah. It's got a dirty title. You don't freak out if you like.

Joe: I'm sorry, Nick. I was going to say I get this question all the time. Well, there is a tenant in the property. How can I make an offer to buy it? They want a wholesaler. Right. And I'm saying my constant answer is it doesn't matter if the numbers are good enough, right? It doesn't matter if there's a tenant in it. It doesn't matter if the tenant is late on their rent and they have to be evicted. You don't have to get the tenant out of the house before you buy it, before you get another contract. It's a good enough deal. You will find a buyer that will take it warts and all. They'll take it with that bad tenant. They'll probably offer the tenant some kind of cash for keys program or they'll go through the hassle and the expense of doing the eviction themselves through the courts or whatever. But if it's a good enough deal, it doesn't matter. Would you agree with that?

Nick: I agree 100 percent. It's just real estate money can pretty much fix anything when it comes to our business.

Joe:So let me ask you something. If you would have known that this that there was a dead person on the property before you made your offer that this was going to happen, would you still made the offer?

Nick: Absolutely. Yeah. That's our business is to help people out of distressed situations. Right. So it doesn't matter what it is. Death, divorce, relocation. Our job is to buy these properties and sell them and solve the problem.

Joe:So which is another thing I love about wholesaling, too, right? You're not buying this property. And what would you have done, Nick, if you couldn't find a buyer for it?

Nick: Yeah, I would have just been candid with the seller and let them know we're not in the business of tying people up or anything like that. I would just let the seller know. Here's what our realtors and partners and investors are telling us. What the feedback. It happens all the time. We'll get, you know, feedback that we weren't aware of. Your new information comes to light and we have to go back to the seller and let them know. Hey, Mr. Seller, unfortunately, because this, this and this we're unable to pay this amount, this is what we can do.

Joe: You do that within the inspection contingency period. Right? OK, yeah. And how long of a kind of an inspection or contingency do you give yourself?

Nick: Usually fourteen days. So that gives us enough time to get our partners, our buyers, realtors out there get the feedback that we need, make sure that we collect, get all the paperwork done, get our earnest money deposited into title. It allows for all that.

Joe: Well, this is really important lessons learned for any type of deal. But number one, as soon as you get that property under contract, you've got to be hitting the ground running. Right. You can't just wait a little bit and take your time to get it. Get to get a real. There to get somebody to look at it or get your contractors, you have to hit the ground running hard, get your buyers there as soon as possible, right. To look at it and then tell you what's wrong.

Nick: I mean, why do people work with us. It's for speed and liquidity? Right. They want liquidity quickly. They're house rich, cash poor, but they want… That's a service you offer. So you have to honor your promise to them and work as quickly as possible to make sure you get to the end result.

Joe: Damon says here people are dying to get into this property. That's not funny, Damon.

Nick: That is pretty funny.

Joe: All right, all right. Somebody else here says numbers don't lie. One hundred percent gets good. Hakim says, great story. Shane says here. Great in phone interview. Joe, Nick, give me a shout out. Just had lunch with one of your friends, Shane.

Nick: Shane shout out, man. You're crushing it. Let me know if you need anything.

Joe: OK, so those of you that don't know, we are recording this and but we're also publishing it live on YouTube and Facebook. So if you're watching us right now on YouTube or Facebook, say hello, give us a thumbs up like this video right now and then leave a comment if you have a question for Nick and we'll bring it to him and we'll talk about this deal some more. I want to ask you a few more questions about this, because you're doing these deals hundreds of thousands of miles away, you're not going to go look at the property. So you're relying pretty heavily on what you're finding online, online research and stuff, active property listings for comps and sold comps as well. Some people are afraid of doing these deals virtually because they're afraid of making a bad offer or getting stuck with a bad deal, kind of related to what we've already been talking about. Like, how did you overcome that that fear when you were getting started?

Nick: I mean, we screw it up, right? We screwed it up a lot in the beginning. You can't as an entrepreneur, you can't be afraid to mess up and make mistakes. You're going to mess up and make mistakes. It's going to happen. I don't care how good you are in any business, you're going to make mistakes.

Nick: And when we first started doing this, we were only able to like nationwide. We're only able to close like one in five of the properties that we contract because we weren't making correct offers. We're underestimating repairs. We had no idea what the market what the investors actually wanted to pay for those properties, because what's a great deal in St. Louis might not be a great deal in Austin or vice versa. Right. So you have to you've got to know something about that market. We get new deals in different markets all day, but you've got to be able to know how to do your market research and understand what's going on there. And like I said, you're going to make mistakes along the way, but continue forward. You'll get better at it and better at it. And now it's the opposite. We place about four out of every five usually that you're going to go through. It's some sort of buyer seller title issue. It's not us making mistakes on offers.

Joe: And that's another good point, too, because it's sometimes it doesn't matter what we think the properties worth at all. What matters is what your end buyers think it's worth. And sometimes you just don't know. You get it at the lowest price that you can put it out on the street and then you'll find out from your buyers whether it's a good deal or not. And then you learn through this. Right. And then you can always go back to the seller and renegotiate if you have to.

Nick: Yeah, I mean, you've got to be forgiving about on yourself, but that's the only way you're going to learn is by doing it. Yeah. You can't sit there and read and analyze every market in the country. It would take you years to do it. It took me years of actually doing it to get it to get to where we are now. So, yeah, I would advise you, if you're going to go virtual, just start. You've got this far, you're going to figure it out.

Joe: Yeah, this is I'm excited about this because, guys, it's easier to find these leads in these virtual markets than you might think. It's easier and cheaper doing PPC, Facebook ads nationwide than you might think. I mean, you hear horror stories of Google Pay per click leads costing one hundred dollars two hundred dollars per lead. It's a lot cheaper than that. When you can go abroad, you can go nationwide. Cool. All right. So is there anything you would have done differently in this deal, Nick?

Nick: You know what it was when you put out the invite to go for it? Deals gone bad. I just thought this was a fun one to share because I wanted to reiterate the point that you have in your making sure you've got enough meat on the bone will cover up a lot of mistakes. You know, this this particular deal when we walked into it, I think we did everything to the best of our ability. I wouldn't have changed anything that we done on we did on our side. It was an unfortunate circumstance that ended up having a good outcome to it, even though it got pretty dicey in the middle of it. So now, I mean, I'm proud of I'm actually proud that we're able to help this lady. And Barbara got a good deal. Everybody ended up winning except for the guy that killed the guy on his property and is now spending his life in the pen in Louisiana.

Joe: So, you know, it is tragic to actually we just did a lease option deal with a guy who was heading to jail and he didn't have any options. He was not a bad guy. I can't talk about what he did, but he made a really, really stupid, stupid mistake. Right. But he was in a situation where he couldn't sell his house. He didn't have enough time to sell the house. He. Didn't want to he couldn't be a landlord from prison, he couldn't afford to pay the agent's commissions, he couldn't afford to pay property management commissions, his wife had to with their daughter, had to leave the house to go to her family's in another state. And so they didn't have enough equity for us to buy his house with cash either. So we gave him a lease option, a sandwich lease option offer, which means we're taking it on as an investment property, pretty much just taking over his mortgage.

Joe: It wasn't his. The best the best option for him would have been to sell his house, but we were able to offer him the next best alternative maybe, or the least worst alternative where we would lease option this house from him and turn it around and buy it eventually through lease option. But this was an example of a deal. The seller had to go to jail. This might be this is bad, but I mean, this could be like another what do they call it? Like a lead, like a list that you could have sellers you could target if you could find a way to fight crime. Scenes of addresses of crime scenes, maybe not. I don't know. I'm not going to talk about that anymore because some people are already super offended.

Nick: But I mean, I think what you're getting is, is we're out here every day solving real world problems. This is the real world and we're out here making an impact. And that's why we make the money we make as real estate investors because we're solving some pretty complicated life issues for people.

Joe: All right. One more question, Nick. What advice would you give to somebody, to some beginners listening to this podcast and listening to what we're talking about? What kind of advice would you give to people to encourage them?

Nick: Yeah, I mean, pretty cliche advice, but do not give up, right? Ninety-nine-point nine percent of the people that get into this business will fail just because they don't have the persistence and tenacity to go through the pain of starting a business. The biggest thing that I see for failure is most people grossly underestimate the amount of sacrifice that it takes to be successful. And what I mean by that is you see these YouTube videos and like, I just got to do this couple things and then I'm going to make some money and everything's going to be good. It's not like that. You're going to have to go through a lot of failure, rejection, and just know that going in you're going to have a lot of speed bumps along the way. And if you can stomach it, you've got some heart and you don't give up. You'll end up breaking through and having a successful career for yourself.

Joe: Oh, that's great. That's really good, Nick. Really good. This has been a better podcast than I expected it would be. I was a little nervous talking about dead people on properties.

Joe: There's a silver lining and a lesson, a lesson in everything that this guy is really, really good from it and enjoyed it.

Joe: Nick, is there any way do you have a way people can get a hold of you? Some people listening to this might be looking for a place to park their money and invest with you on some deals. Are you raising any private money or do you have anything that you want to offer to people or give away?

Nick: Yes. So we're always doing flips and we don't do large remodels. As I was telling you earlier in the podcast, we're doing very light cosmetic. You take the property down and have it back on the market within a week or two and in return. So if you're looking for an easy place to park your money, that's going to be safe. Collateralized by real estate, reach out to me. You can follow me on Instagram at Nick Perry REI. And then if you if you need any help with anything, I do offer a one on one coaching. So there's no, like, month commitment or anything. It's really down to as needed basis. I know a lot of entrepreneurs need just a third party to kind of give them validation or help them on whatever that next big challenge in the businesses. So reach out to me if you if you want to set something up. Happy to help.

Joe: All right. I get this right. PerryREI@NickerryREI on Instagram. That's where all the cool kids go. I'm still struggling with it with Instagram.

Nick: I just got on not too long ago, said yeah, maybe like a year ago and I'm not too active on that. I try to, I'm still trying to figure it out myself.

Joe: Good. I don't, I don't feel that old and yet. Nick, thank you so much. Man, I appreciate you taking the time. I know you're super busy. Appreciate you taking the time to be here.

Nick: And I appreciate you having me on. I really enjoyed it. So let me know if you guys maybe.

Joe: All right, guys, reach out to Nick at Nick Perry REI on Instagram, send him a DM, follow him and show him some love and appreciate it. Guys, don't forget, if you want the mind map and the notes. I've just been taking a bunch of notes as Nick's been talking, my assistant is going to come back in and make a bunch of notes as well. Text the word bad to thirty one thirty one thirty one. We're going to JoeMcCall.com/bad. We'll have the show notes, the transcripts and everything like that in that mind map as well. So we'll see you guys later. Thanks again.

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