Systems, marketing, and delegation are three keys to success when it comes to the real estate business, but we can’t forget about some good, old-fashioned cold calling. I decided to go through the Battle Creek, Michigan market and do some live calls with sellers. Once you get a feel for what the conversations are like, you can feel good about making calls yourself.
I’ll walk you through my prospecting process on Zillow and how I zero in on a market for leads. You’ll also get to see how the conversations flow and which questions to ask to uncover leads and intel. I wound up getting quite a few folks on the phone which you’ll get to hear, some of which provided me with some great information I wasn’t expecting. Not every touch is a positive one, but you never know what you’ll get until you start calling.
Next week, I’m co-hosting a free class called “The Slow Flip Challenge” and there’s more information inside this episode. Click the link below to find out more.
Welcome. This is the real estate investing mastery podcast.
What's going on, guys, Joe McCall here and I'm coming at you live right now in Zoom, in YouTube and in Facebook. How's it going? All right, so back to REI Secrets. This is a used to be a weekly webinar series training that I did for free and just teaching you how I do stuff right, teaching you secrets for marketing, automation and delegation. And so one of the keys to success in this business, three of the keys to success, marketing, automation and delegation. So number one, you need to get marketing done for you in spite of and you need to automate your marketing. You need to set up systems where your marketing is done for you in spite of you. And we know that the we're not in the real estate investing business. We are in the marketing business. Can I hear an amen? Right now we're in the marketing business. We're not in the real estate business, not in the lease options business, not in the vacant land business, whatever right? We're all about marketing and marketing is all about everything that we're doing so. Third thing is we create systems to do the marketing for us in spite of us, right? The third thing is we need to delegate whatever we can't automate, delegate whatever you can't automate. So those three things marketing, automation, delegation.
So I'm all about systems and marketing, and you got to get that stuff going. Now it's one thing to get the phone to ring. It's quite the other to answer the phone and talk to sellers and know what to say. So what I thought we would do today is because I was just looking at my calendar thinking, What can we do on today's RBA secrets call? And I thought, Let's just call some sellers, why can we do that? So what I'm going to do here is I'm going to go into St. Louis, Missouri. Well, let's pick a new market. Let's pick a different market. Those of you watching me right now on Zoom give me one or two markets we can look at. Or if you're watching me on the YouTubes or face, by the way, if you're watching me on YouTube right now, please like this VIDEO Subscribe to my channel and share the love. If you're watching this on Facebook, give me a thumbs up comment down below. Let me know that you're here. You're liking this, you're watching it, you're getting something out of it. Really appreciate it. All right. So Ohio, Columbus, Ohio, Stockton, California, Battle Creek, Michigan, Portland, Oregon, Patterson, New Jersey. What else we have here? Where is battle Brookfield, Wisconsin, by the way? Did you know that Wisconsin, Zillow, Wisconsin does not have any for sale by owners on there anymore? It does not have any for sale by owners. All right. What else? Well, Boston, I'm looking here at Battle Creek. Somebody put in Battle Creek, Michigan. I'm a share my screen here that we move this water so I can see my share button. And here we are in Zillow. One Zillow is one of the places I like to go for looking for deals. Battle Creek Michigan's right there. In the middle between this is Lansing. Michigan looks like Kalamazoo Grand Rapids, and I like to look for homes in a couple of different areas for sale by owner. I like to typically look for three plus bedrooms, homes, over 100 under 600. And I also want to remove any other restrictions I might have on here because I was playing with this on Zillow the other day. So just kind of reset all filters, you know? And then let's look at price again under under 600000. Let's do three bedrooms. Let's do houses. Only a lot of them 500 agent listing standard and fifty seven by owner listings. So sometimes what I like to do is just look right here by owner. Two hundred and sixty three listings, by the way, if you went to Wisconsin, this is new with Zillow. For whatever reason, there are no for sale by owners in Wisconsin to show you This is crazy. I'm going to open a new tab. I'm going to copy that. Put it in here. All right. Let's go to Wisconsin w.i I'm looking for. For sale by owner under 600 3+ bedrooms house is only. There's no other filters here. And look at that zero gizmos. This These are Illinois properties. Iowa, Michigan. Ohio. Nothing in Wisconsin. If we go to Minnesota in 222, what's next to Wisconsin, Illinois? Let's go to Ill- Illinois. Nine hundred and fourteen. What else we have? How about Indiana? Buy in? Five hundred sixty three. How about Michigan? Am I seven hundred and forty one? Wisconsin? Oh, come on here, w I none. What's going on in Wisconsin? They've removed all of it for sale by owners. So whatever. I don't know. I've maybe I've not googled it. Anybody know? I'm just curious.
All right. So let's let's look here at Zillow. Battle Creek Michigan is right in the middle there. I'm going to zoom in a little bit. There's 53 properties, OK, and this is sorted by newest. I typically don't like to call the new ones that have been only up a day. So is usually what I like to do is look back and I'm kind of looking for ones that have been on, at least for a couple of weeks. OK. This is Hastings, Michigan. There's no any pictures on that. What about this one here? This is near Kalamazoo. 4:48 Big House almost 4000 square feet. Really nice home for sale by owner. Now the Zestimate is for twenty nine. They're asking for forty eight. A lot of times Visible's, they ask for more. But look, how many views. That's a good number of views. Finished basement looks like it's on some acreage on a nice big. What really nice home for a small town, Kalamazoo. I don't know if that's a good price. I know it's kind of on the upper end, the upper limit. What if we call them now? I can tell you this. I'm going to get a lot of voicemails. It's just the nature of the beast and the way it works. But I'll try.
Joe McCall: Hi, my name is Joe. I'm calling about your house on Queen Victoria Lane. Yeah. Is it still available? Yes. It looks like a nice house, by the way. I'm not a realtor. You're probably getting a lot of calls from realtors looking for a listing. I'm looking for an investment property in the area. Do you mind if I ask you some questions about it?
Caller: You, you are agent.
Joe: No, I'm not an agent. Well, I am an agent, but I live in St. Louis, Missouri, so I'm not looking for any listings. No.
Caller: Oh, I want to to pick up my, my, my, my daughter from school. And you send the message for me, I'm English is not cool. OK? Oh, sorry, OK. Send a message for me.
Joe: Sure. Yes, I'll send you a message.
Caller: OK, OK, thank you. Yeah, thanks.
Joe: Bye bye.
I don't know if you can hear that, but her English was really bad, and she was on her way to pick up her daughter so she couldn't talk. So what could you do? Well, you could text her, right? And I would text her. I'm not gonna do it right now, but I would do it inside of freedom soft. I would send her a text and didn't even get her name. I should have asked her name, but say, Hey, I'm sorry, your house on Queen Victoria Lane looks like a nice property. I'm looking for an investment property that I can lease for a few years, and then by that wouldn't work for you, would it? Something simple like that. OK, but send them a text. Let's call one more fishbone. Then let's call a rental. So where was I going here? I love these small towns. You're right. Here is one that is 175 Hillsdale. There's no exterior picture of the home. Is it a modular home? Big lot, you may be wondering. Like, who on earth would want to live out here, right? There's nothing. Well, you'd be surprised a lot of people would. Sometimes what I'll do is a lease option assignment now this house right next to it, right? We go back to the map.
There's two properties here. I wonder if there are. This does not look like a house. I'd want to lease Option B more of a cash deal. This is a seller I might call him or text him and say, Hey, this works really good when you're calling bills that are more needing work. I like to send a text. Hey, I saw your property on Lake Pleasant Road. I'm an investor. Is your price negotiable? And I won't call them unless they respond back with something like, Yeah, I might consider. I am a little negotiable because then they know I'm an investor and they are negotiable a little bit, but that one has to be this one. All right. So while so there's estimates one fifty three, they're asking 175. Let's just call and see what they say. Oh, it's a manufactured home brick fireplace in the living room, full unfinished basement, a deck on the back attached two car garage, one acre modular home does not have a title. What does that mean? Banks may not loan without a title, without title. No land contracts unless you have half down and agree to a two year balloon. Definitely no rent. These are, but those are the calls I get asked to skip that Eckford 06 Like a nice home. Maybe kind of an odd property, but it's nice guessing it's an old house. Look at the basement walls here. Really big garage, lots of acreage. The modern farmhouse. Can you see how many acreage? It has? Two acres? OK, I just want to look at the map to see where it is here. All right, let's call him. It's been on the market for 101 days. Two six nine nine six two eight six.
Joe McCall: Hello. Yeah, hi, my name is Joe, and I'm calling about your house on, I saw on Zillow the looks like two and a half mile or twenty two and a half mile road. Twenty two and a half mile. Oh, OK. Looks like a nice. Looks like a nice property. Yeah, I am. You know I. Is this a house that you remodeled yourself? Are you still living in it now?
Caller: Yeah, we're still living in it. You know, we remodeled, it all
Joe: looks really nice. You know, I'm an investor. I live actually in St. Louis, Missouri, and we got we buy homes all over the country. And I like small towns and I have some friends that live in the Battle Creek, Michigan, area, Kalamazoo. And so I was just wondering about your house, you know, is it something that you are you trying to sell it quickly? Do you have a lot of time on your hands? I'm just curious why maybe you don't? Listed with a realtor and I'm not an agent, by the way, in Michigan, I'm not looking for a listing.
Caller: My wife and I are building a log cabin, and if we're not in a big hurry to sell it, so we're just we're living there while we're building our log cabin. Good for you. Nice. So that's why we're selling it ourselves and John, a huge area. We've had several people come, look at it and everybody wants to do it on a land contract and all that crap, and we know all of that crap. So we've got
Joe: I'm sorry, what's a land contract?
Caller: And it's basically like renting, but they just keep paying whatever we settle on till it's paid off. And just doing it through us and not doing it through a bank.
Joe: OK, so you want to you want to sell it or be done with it,
Caller: You know, that's what we want. We're not going. We're not going to do a land contract and go through all that and then have them quit making payments to us and then going through court and getting them evicted out of there. And yeah, we've seen too many times where they've done that and then they strip the house and then got to redo the whole damn thing again. And yeah, it's not. We're not doing now.
Joe: No, I get it. I totally get it.
Caller: And that's what happens. A lot of times we've had other people that we had in a couple of houses that we rent it out and they just quit making payments and it took forever to get them out of there. So we said, we're not doing this or doing okay. One of the other houses where we're building a log cabin, we were at that house down after we got the people out, and that's why we're just going to sell this house. And that's it. Yeah.
Joe: OK, let me let me just ask you one or two more questions real quick your house, your price to sixty nine. Yeah. Is that is that the lowest you go? Is that negotiable?
Caller: It could be negotiable. A little bit, possibly. But we're we'd really like to stick very close to that. I mean, we don't want to go down too much. So yeah, that's why we're not in a huge hurry.
Joe: Yeah. Well, the thing I love about your property. Yeah, yeah. Go ahead. I'm sorry.
Caller: We've got another lady and a kid that are really interested. They're coming Saturday so that she's a school teacher. She just moved up here from North Carolina. She lives down the road and she wanted to come today, and we said, No, we can't make that happen. So she's coming Saturday, and the other kid is a friend of ours and he's really wanting it. So he's working with his parents in the bank. And so we really wanted him to have it with the school teacher. She's she's got a house now, so she's wanting. She's coming to talk with us on Saturday, so I don't know.
Joe: OK, so you feel like you feel like I don't know the area as well as you do. I'm just looking for property that has acreage on it and yours as two acres, right?
Caller: Yeah. Yeah, 1.9 eight acres. And there is this go ahead.
Joe: I'm sorry, given I don't mean to keep on interrupting. It looks like there's two garages. Is that
Caller: No, it's just one garage and it's got two outbuildings, the one outbuilding. I have my chickens in. I've got power out to the other barn, the other little old shed has. It's just a fence around it where we had a dog that we camp out there at one point in time and then the other garage. Our big garage has three garage doors of heated. Yeah, and then we just put in a brand new septic this summer. It's all natural gas, so we were keeping all the appliances. We're going to stay with a washer dryer, refrigerator, all the appliances. We're going to stay with it, OK? And we just remodeled the kitchen, you know, quartz countertops, stainless steel appliances and stuff like that.
Joe: But nice. Well, good. It sounds like, you know, I don't know what the property is worth there. Do you feel like two sixty nine? You should be able to sell it pretty quickly and easily with that price, it sounds like you've got some good interest in it already.
Caller: Yeah, I think I'm pretty sure that we can. OK. I think we're going to be real close to staying at that ballpark anyway.
Joe: So, yeah, well, it sounds like you got a lot of interest in it. If you don't sell any thought about what you're going to do, are you going to get listed on the MLS? Are you going to rent it out or are you just going to sit on it until you do so?
Caller: I'm not. I'm not going to. We're definitely not renting it out. So we just look at it with a realtor. We have a realtor and that's our friend in town, and she kind of gave us the price to stick it. So, yeah, that's kind of where we came up with a price, and she said she'd help us with the paperwork, and so that's where we came up with the price.
Joe: OK. Well, you do. You got a beautiful home. I think you're going to sell it fast and I want to wish you the best. I appreciate you taking the time. Yeah, no problem.
Caller: If you're interested later on or whatever and it's still up for sale, some of that.
Joe: Yeah, I will. Thanks a lot. Yep. Bye bye.
OK, so what are your thoughts? I can't see all of your thoughts, obviously right out of the bat without me bringing anything up, he says. Now we're not going to do any land contracts, got a lot of people asking for that, which, by the way, don't be discouraged by that. Don't be discouraged by when a seller tells you something as forcefully as that before you've even brought it up. And don't be discouraged if you get talked to sellers and they're saying things like, you know, everybody's calling me about rent to own. That's first of all, it's just not true. Not everybody is OK. The other thing is, I'm trying to get their motivation and the chances of you finding a motivated seller who's listing their house for sale by owner is really slim, especially on a nice house. Like this doesn't even much work. He has cut his price a little bit, but he's already got a lot of interest in it. He's already said, you know, we're just going to sit on it until we sell it. Definitely not. You was pretty strong, not going to do any kind of creative financing we'll just listed with an agent. So this is, you know, I'm not going to waste too much time on this. I'm just going to, you know, if I was really actively looking for deals in Michigan, I would add him on my list to call back in 30 days, call him back in 30 days. Hey, Jim, I forgive. I forget his name. I didn't even ask. I'm just following up on that property. Have you sold it yet? I'm sure you have. OK. He needs to get. He needs to get a little more motivation. And it might be a year. Who knows, he might be too aggressive with this price. What would you guys have done anyway? Somebody here saying send him an offer anyway. But yeah, I'm probably not going to send him a letter, an offer. I would maybe send him a letter. Just, Hey, it was nice talking to you. I know you don't want to do seller financing or anything like that. But if circumstances change, no, please let me know I'd love to make an offer. I might send in a letter like that, but I probably wouldn't send him an offer with a contract. Any other comments on that? By the way, I'm going to I want to do a quick search here on my YouTube because you guys are watching us on YouTube and I'm going to hopefully mute myself. There you go. Any comments in YouTube? All right. So put in your comments on YouTube and Facebook. I will look at it when I can. All right, so let's look at those are two fist bows. I do not like cold call. All right. I do not enjoy doing that at all. I just thought we would do it for this class. It is the fastest way to a deal getting on the phone, making 20 or 30 of those calls a day. But I don't like doing it. I would rather respond to somebody who calls somebody who responds to my texts or who calls me from a letter gets my voicemail. Right? But sometimes, you know, it depends kind of how hungry you are, doesn't it?
Let's look at rentals now, and let's look at I'm not going to do any filtering and let's look in. Let's look for rentals in this area. Kalamazoo Battle Creek. So just go out a little bit. These are let's do two plus bedrooms. Houses for rent. And let's sort by low to high. All right. This is a house in small town. Bronson, Michigan, Bronson, Michigan. It's got lake access. Maybe. Is it on a lake? It's across the street from a lake been listed for eight days, lakefront house available for rent and a huge discount for six months. So it's only available for six months. It's fully furnished. All right. Let's call Thomas Mantri.
Caller: Hello, Tom speaking.
Joe McCall: Hey, Tom, my name is Joe, how are you? I'm fine. Thank you. Thanks, man. I'm calling about your house on Warner's landing in Branson, Michigan. Okay. Looks like a nice house. I'm an investor. I'm looking to buy some properties in the area. I have some friends in Kalamazoo area and I was just wondering about your property. And if you don't mind me asking, you wouldn't have any interest in maybe selling it, would you?
Joe: OK, no interest at all. Thank you. All right. Thanks. Bye bye.
That's rare. Most of the time I get a yeah, maybe if the price is right, everything's for sale. He was pretty quick to say no, not a big deal. Battle Creek. This is interesting. House no pictures looks old. Nine hundred a month, there's no phone number. We just send a send a message. How about this one? This looks like a beautiful home. It's a mobile home, isn't it? I'm not going to pretend I'm interested in that. I'm not. Here's Kalamazoo, a nice little backyard external garage. This is one of the other reasons why I love small towns. You get a lot of properties listed by owner. Two six nine two four seven five two zero seven.
Caller: This is Jim Cavanaugh. Leave me your name and phone number, and I'll call you back as soon as I can. Thank you.
Joe McCall: Hey, Jim, my name is Joe. I'm calling about your house on Cherry Street in Kalamazoo. Looks like a really nice house. I know this is out of the blue. I'm just I'm an investor looking to buy some more property in the area, and I just wanted to see if you'd have any interest in selling it. Give me a call back. Appreciate it. Thanks. Bye bye.
All right. So we'll see if I get a call or not. I just thought about something on that last call that I did. Sometimes I go with my conversation to something along the lines of, you know, I'm looking for a property that I can maybe rent on a long term basis and just ask them, would you consider renting it for three or four or five years? Take that kind of a route, right? And let's look for a house that's been listed a little longer. That's maybe with a property manager 17 hours, 26 days. I like calling property managers because they have a lot of clients. In fact, maybe we need to go to a bigger city. Let's go to Grand Rapids. Let's do high to low united properties of West Michigan. This looks like a really nice house. Obviously, this is weird. Why do they do this? They put their text all over. Each image enlisted twenty two days six two twotwotwotwo. I'm looking here. They can do six months or nine months. No Section eight. All right. United Properties of West Michigan. This will be the last call I do here, but I want to show you what I prefer to do on a house like this.
Caller: Hello and welcome to United Properties of West Michigan. Please note our calls are recorded for quality assurance and training purposes. If you know your party's extension, you may dial it at any time. Alternatively, to help us direct your call. Please choose one of the following options for service and maintenance. Press one to lease a property or if you have questions about your current lease, press two. If you're a property owner and you're interested in our property management services. Press three if you're currently one of our property management clients transport.
All right. This is why I don't like doing a live seller calls because it's really hard to get a hold of people. Talk to two or three people, didn't we? All right. So this is what I prefer to do on a property like this. I like to send the owner a letter, send the owner a letter, and how do you do that? You go to prop stream Joe dot com and you log in and get the seller's information. Perhaps stream Jio.com. And I'm going to tell you what to say in the letter that I want to show you another thing I like to do to get leads. Well, look at this, OK? They've only own this property for three months. Do you think they're going to want to sell it? I don't know. Maybe I won't. What I used to do, I used to do this a lot. I have a virtual assistant every single day go in and look up all of the properties listed for rent in Zillow and put them into a spreadsheet and go into the county records. And if it had been sold, purchased or sold in the last year, she would excluded anything other than that. It's a Great House here. Anything outside of that, I would send the owner a letter. So here's another house, and this one is listed by a property rental property consultants. So every day I would go in and I would find 20 to 30 new properties that my virtual assistant had found offers Zillow. Here you go. Love it. All right, this is a great example, and I would send the owners a letter about I'd have actually let me rewind a little bit. My VA every day would go in, look for rental properties on Zillow and put 20 or 30 of them into a Google Sheet. I would send that Google Sheet every morning. I had another lady who was a stay at home mom who just wanted to make some extra money. She would handwrite 20 to 30 yellow letters for me every day and this is what we would do. We would go find these properties on Zillow and this one is nice looking house been listed for forty six days are probably asking a little too much, and that's why. But guess what? Looking at the pictures, it's vacant, right? Vacant property. You look at prop. The owner is owner for 13 years and is not showing up yet. As an absentee owner, its owner occupied and the property address is the same as the mailing address. So how much mail do you think this person has received? None. And it looks like it's in James and Linda. These Wow trust. OK, I go here to the mortgage. Looks like they just opened. It doesn't make sense. You just got a mortgage a couple three weeks ago. This might be a reverse mortgage situation. Look, I would look into that. But this is not new conventional. You can pay for the sometimes you get the loan information there in that document, but it says here it has estimated five hundred seven grand in equity. Estimated value is five or seven, but it does have the loan balance. I'm not sure what's going on here. Well, the secured MLS details. Sometimes you can see this is weird. It's sold in August for 475, but it's listed for rent right now generally. Yeah, maybe it was bought to rent out, so they owe the owner. It hasn't been updated in on her records yet. Not sure what's going on here, but anyway, geez, I would. Still, I would still, you know what I would do. I would go into the public records. Most counties have public records and you can go in and you could see if that's been updated yet. I can't can't tell if this has been. OK, so here it says the transaction mortgage history says the buyer is this size Persky, but it hasn't been updated here yet.
So go, look in the county records now. Where do you how do you do that? You know, like, for example, St. Louis County. I would just Google St. Louis County assessor and you get the assessor's office and usually whatever county you're in there, somewhere in here where you can look up properties, you can look up real estate information and you can look up somebody's house address and see who owns it. Now this is for St. Louis County. I'd have to go in and spend some time figuring out where Caledonia Michigan, where county is Caledonia, Michigan in Kent County? All right. So then I would do a search for let's do actually the search here for Kent County, Michigan assessor property. Look up. Oh, look at this. All right. Let's pull this property up and go back to details. Copy Street. No, it's not working for me. Seven eight eight seven street name craft. Let's see if that comes up with need to look at this, so it has been updated. Perhaps Dream is outdated? That's frustrating. So you can see the owner's name is here, so Spursy and the property is not updated yet. All right, so my point still stands when your VAS are going through and looking for properties listed for rent, make sure they're going in and looking at making sure there's no properties that have recently sold here. And they could have. You could have found that right here in Zillow. Look at this. I go to price history. You can see this property sold in August. So about two months ago to the day. That's from Zillow.
All right, let's look at another one. How about this one? Eight days ago, Nice House does not look like a rental property. Wonder what's going on here? Let's look at price history. Maybe it's a newer construction, right? Let's look at the address. I hope you guys aren't bored. Are you bored just watching me do this? This is why I have a VA. Do this stuff for me, right? All right. I'm getting no, I'm not bored. Thank you. This is kind of weird is shows. This looks like a vacant lot condominium. I don't know what's going on here. Length of ownership is blank. Mortgage transaction history. Right. Something happened here within the last year, so I'm going to skip this one. Again, I don't want to send a letter to an owner who just bought or sold a property in the last year. This looks like a good house. All right. It's a good price. History, maybe. Ah, shoot another one. What's going on here? By the way, who buys these houses and rents them in this price range? I mean, you're not getting any kind of ROI on this. That's they're paying cash like who buys a house for three hundred and five thousand dollars to rent it out for only twenty six hundred? I'm curious to see if this is like a big institutional investor. Or is this a mom and pop investor? Maybe it's a hedge fund. Sue Campbell. She's on it for two months. It's listed as owner occupied. What's going on here? She she bought it in August three or five. What's going on? Why is she renting this house? This would be a good one to call her. Maybe she's renting it by the room. It's already furnished. All right, let's look for another one. I'm going to go down in price a little bit here. How about this? Yeah, somebody says here, Michelle. I would say this was purchased at market by an uneducated investor, and they don't know about the one percent rule. I did that once. Yeah, it's looks like a decent house available now. It's only been on the market. Zero days total renovation. Superior leasing services. It's a good price history. All right. Well, this one sold a year and a half ago. Let me show you what kind of letter I would send. Let's look this up in props trying again. Wouldn't it be nice to have a virtual assistant that just does all this for you? You want to do all this clicking around. All right. So the owner is on this for a year and eight months. Stacey Tilly, they live in Ada, Michigan. You can click on link properties they own. Five. This person owns whoever is at. This address owns five other properties. You can see where they own the properties here on this one for a year and eight months. But what's interesting is this shows up as owner occupied, but the address is different than the mailing address is different than the property address. So this is what I would do.
All right. So I have a VA every day, goes into Zillow and looks up the rentals, looks up the new rentals and looks for properties that have been purchased with at least a year ago or long. And even if the addresses is the same, that's fine. We're still going to send them a letter, puts it in a spreadsheet and comes to somebody. Maybe it's you. Maybe while you're watching what's that stupid show that everybody's talking about squid games or something, right? While you're watching squid games, you are the handwriting 20 letters. I have students that do these letters and kill it. They crush. And why do I do letters? You saw how uncomfortable and weird those cold calls were. I didn't reach half the people and the other half were like, not motivated at all. It's just kind of frustrating. Now, if you had the guts and you could do it, that is the fastest way to deal making phone calls, right? If I would have made 30 of those a day, which I could easily do, make 30 phone calls a day, man, I'm going to get somebody that says, Yeah, you know what? I might want to sell. I might consider doing that depends. I get some a little bit more motivation on there, but I also have now more people that I can follow up with, more people that I can call in 30 days. The phone is the fastest way to a deal. Without question, me, I don't like that, I'm not comfortable in the zone, I'd rather talk to people who raise their hand and say, Yeah, I want to sell. So how do you find them? You send them letters. Handwritten yellow letters worked really, really well. So this is what I would do. I would say, Dear Stacy, my husband and I, I'm not like that. Why I'm writing this as my wife, Kay, my wife is writing this letter. I'm writing it for her and her name. But I'm saying my husband and I were looking for a property that we can buy in the area and we saw your property at one zero five four Logan Street southeast in Grand Rapids, period. You haven't thought about selling it, have you? Give me a call. We'd like to make you an offer today. Thanks, Victoria. And a phone number. All right. Tweet Could you handwrite 20 of those a day? Yes, you can. When we have done these little challenges in the past five leads in five days, we call them and we're going to be doing one again in about three or four weeks. This is one of the first things we tell people to do, and the results are mind blowing. People go crazy over this. I just in the challenge. We tell them, just send five letters and say, you know, we used to tell them, send 20. But more people would do it if it was easier. So we tell them just to send five and most people, then we'll send more.
But anyway, people come back saying, I can't believe it. I've got 10 percent response rate, 15 percent response rate. I got leads, I got sellers. So we're sending these letters to absentee owners who own these rental properties and think about it. These are nice homes. We can offer these people a lot more money for their house. This one, I think, looks it's free and clear. It's paid with cash so we can give you have an owner financing offer, full price or something like that, right? We could call them. In fact, let's just call this one. Who is this weird? The phone number go superior leasing services. Well, I am a sucker for punishment. All these phone numbers say this call may be recorded.
Caller: Superior leasing. This is Deborah can I help you?
Joe McCall: Hi, Deborah, my name is Joe, and I'm calling about your house at 1054 Logan Street.
Caller: Hi, Joe.
Joe: It looks like a real nice house. Do you have a few minutes? Can I can I ask you a few questions about it? No, I'm not a tenant. I'm not looking to rent. I'm actually an investor and I'm looking for some properties to buy in the neighborhood. And, you know, if this one is not for sale, maybe you have some others. That might be. But I'm just curious. It looks like they did. The owner did a great job rehabbing his property. Yeah. And do you know if they would have any interest in maybe selling it by any chance?
Caller: Oh, I kind of doubt it. They just purchased it and they like, cut it. I mean, I mean, like, down to the frame. They got all brand new plumbing, electrical walls, windows. Everything is brand new, but don't think that they would be really interested in selling it right now, OK?
Joe: Have they rented it out yet, or is this the first time they've listed it for rent?
Caller: Yeah, this is the first time that they're renting it out. OK. All right. Yeah, it's still not quite, even though they're still going to redo the front porch and the steps and stuff like that. But they're I'm pretty sure that they wouldn't be interested in selling it. I can, however, give some of your information. You know, it's always ask.
Joe: Yeah, OK. And maybe you have other clients that have a rental property they might want to sell. I'm always looking for properties to buy, and I don't have an agent representing me in Grand Rapids, so you could always represent me as a buyer as well.
Caller: Okay, I was just going to say, Have you? Do you have an agent already? What's your name for a Joe?
Joe: And what was your name again?
Caller: My name is Deborah Deborah.
Joe: Okay, cool. No, I'm in St McCall, Joe McCall and I am. I actually live in St. Louis. I got some friends in Grand Rapids and we're always looking for deals to buy and sometimes we fixed. We buy properties that need a lot of work. Sometimes we buy nice properties like this that don't need any work. It's a hot market right now. It's hard to find deals, you know?
Caller: It is. And in the Grand Rapids area, I am working with another investor. She's buying quite a few properties in Muskegon right now. Oh, really? Yeah, the rents are, I mean, the prices are much lower. And, you know, we're kind of anticipating that the the area is going to, you know, improve here. Grand Rapids is growing so rapidly. Yeah, and the properties in Muskegon are not very expensive. Joe, what is your phone number?
Joe: It's six, three six.
Caller: Uh-Huh. Would you be interested in anything that's not in the Grand Rapids area?
Joe: Yeah, you know, I'm open to that and I'd be interested in, you know, I prefer off market deals, but you know, I can I can go look on Redfin. But if you, you know, I'm sure you find deals sometimes that just need too much work that maybe one of your other clients wouldn't be interested in. Yeah, I'm always looking for deals and maybe like, do you manage a lot of rental properties?
Caller: Yeah, I do manage. I work mainly as a broker for private landlords. Okay. Doing like the placement stuff like that. Oh, nice. I do manage. I do just the placements, but I do manage for a couple of investors. And one of them is she does actually own quite a few properties out of Muskegon. They've been working with her to buy some stuff recently.
Joe: OK. So if I had a rental property, you could help me find a tenant for it.
Caller:Definitely a trend, you attend a great dinner.
Joe: All right. Well, yeah, just take you have my name and number if you have any clients email address.
Caller: Do you have an email address, Joe?
Joe: Oh yeah, it's J. V…
Caller: Wonderful. You're in St. Louis. Yeah. I was just planning a trip to St. Louis, my girlfriend's, and it got canceled. Pretty disappointing. Oh, it's a bummer. No, I know. OK, so yeah, that would be fantastic. You. Like I said, I have been working. I can send you some listings as they pop up. Do you like or do you prefer like a single family? Or do you like the duplexes or what
Joe: I like single families. You know that whether they need work or not. I like single families. I prefer three bedrooms or more, but I can do two. Okay.
Caller: Yeah, OK. I know. Like I said, I will keep my ears plastered. I'll let you know anything that I come up. Yeah, I know I'm looking for it right now. The address, because I had one earlier this morning that's not on the market yet, and it's a four bedroom actually in Muskegon, and they're asking forty six thousand for a duplex, but one bedroom on top and a two bedroom on the bottom. And it's oh, wait a minute. It isn't one that, but it is forty six thousand and it's really not. It's a great price is severely underpriced. Yeah, it might be a single family, and I sent this to someone earlier. That's I just happened to be sitting right in front of me. But it is in Muskegon. If you like, I can shoot you the address.
Joe: Yeah, I'd love to. I'd love to look at it.
Caller: Yeah, okay. I'll send it to you, Joe.
Joe: All right, Deborah, thank you. We'll talk soon.
Caller: Okay, bye. Bye bye.
How about that, woo! I was hiding my cell phone number and email, but if you read my lips, you probably got it. But anyway, that was fine. Look, this is a house. They bought it over a year ago, and I think they have way over rehabbed it for a rental property. Just my humble opinion. Maybe they got a lot of money to burn. I don't know. But what did I just do there? I found a realtor. Super nice. Number one, that is somebody that I want working with me. I want to work with her because she answers her phone. You know how hard it is to get realtors that answer their phone? My goodness. And she asks, You know, does she said she she places tenants. So if I have a rent to own lease option property? You think I could hire her? She works with private investors. I could hire her to put tenant buyers in some of my homes. Heck, yeah. She also knows investors. So if I have a deal, maybe I can send it to her and she can sell it to one of her other investor buyers. And she's got, she said. She's got an off market property. She's going to email to me. It's a duplex, maybe single family home, she said. Forty six grand. Yeah, that's money right there. Love it. By the way, who here is somebody who whoever wrote down that part of Michigan, Jerry Jerry, do you do deals in Muskegon? I got a pocket listing in Muskegon, Michigan. I don't even know where Muskegon is. How do you spell Muskegon? M U. S k e g o n Muskegon. It can't be that far. Oh, it's on a lake, some lake. But, you know, as she said, their properties are much more affordable. It's near Grand Rapids. There you go. Let's look and let me copy Muskegon here. Let's look at what's available on Zillow in Muskegon. I just want to get an idea for the market. Muskegon and let me move my bar here. Remove Boundary.
So these are all of the rental properties while you can rent this one for nineteen thousand a month. What let's do low to high. So I don't know if Muskegon kind of like a vacation community, a small town, not many jobs there, but these are pretty solid rents for a little town. Two thousand thirteen hundred thirteen seventy five. Fourteen hundred fifteen hundred two thousand. Not bad. Zoom out a little more now. OK, let's do. Not just houses. Let's do condos. Townhomes. All right. 800. Why weren't these showing up before? Was I doing something different? Some of those are showing up as apartments or condos or co-ops. OK, it's the second home community, but it's growing and investors are tight who are tired of grand rapid prices. Grand Rapids prices are going there to search for deals. All right. So Gerri, if I found a good deal, would you partner with me on it in Muskegon? Anybody else on Zoom or on YouTube and Facebook here would be willing to drop? Jerry's got it, he said. Absolutely right after the right out of the gate.
So this is what I love about this business, guys. I mean, yeah, I've got an audience. I've got another person here. So Prop Now LLC said he would partner or she would partner with me on it. This is what I love about this business. I don't know anything about Grand Rapids, Muskegon, Michigan. I don't think I've ever even been there before. And if you find a good deal, I don't know $46000 for a duplex that probably needs work. I don't know if that's a good deal or not, but what? What if I could buy it with owner finance? Well, if it needs a lot of work and I know the seller and I can sell the seller, hey, listen, what if I could get you your price? Would you be willing to carry financing for a little bit? Give them their price with 10 percent down and owner financing? If that house that duplex probably rents for a thousand a month, I'm going to guess probably needs. 30 to 50 grand in work. What if this is something cool like you've seen me promoted this week, we've been promoting a challenge that I'm doing next week with a friend of mine, Scott Jelinek. Yeah. So Jerry, shoot me an email, Jerry, I'm going to send you my email address. OK, shoot me an email, Jerry, and we'll follow up. OK, what was I going to say? Oh yeah.
So next week I'm promoting a challenge called the slow flip challenge with a good friend of mine, Scott Jelinek, and he does a lot of these deals. What he does is he buys beat up rental properties at low prices. He buys them like a car and sells them like a house. And what he does is it's a private investor. You'll buy them anywhere between 30 to 40, maybe 50 with private money, and he pays that private investor 10 to 12 percent. OK. And then he sells them to another investor on a 30 year mortgage. No money. Well, very little money down on a 30 year mortgage. So he buys a house is like a car. He sells them like a house. He buys them private money, pays them off in five years, and then he sells them immediately. At the same time, he sells them to another investor on a land contract with very little, down seven eight percent interest over 30 years. And that investor then buys the house, fixes it up and rents it out. So he's doing what he calls a slow flip. You don't make any money the first five years, OK, but you have another investor paying off your private investor. You get that house paid off in five years. Guess what happens on day one of year six? You're now all of a sudden getting $800000 a month in cash flow. As the bank, you've not fixed up the house, you're not paying any. You don't care at all about tenants or maintenance or landlord problems because you're the bank, you're not the landlord. Somebody else has been paying your private loan now for the next twenty five years. You're getting seven hundred eight hundred one thousand dollars a month in real cash flow. Real cash flow. OK, so we're going to be teaching you how to do this. Buy a house for 30 40 grand up front. You sell it for 80 to 90 thousand on 30 year mortgage and you're basically selling the finance the house comes with. You're selling good financing terms to an investor who doesn't want to go out and get a bank loan. They don't. They want to use OPM, other people's money and you sell the house to them. They go buy the house with your financing, fix it up, rent it out, and they could cash you out later if they wanted to. But who knows? Maybe they will. Maybe they they're going to be getting at least a couple of hundred dollars a month in cash flow as well. So you want to set it up where if they rent it out for twelve hundred, they're paying you no more than maybe 950 or 1000. Does that make sense? We're going to be doing this is a free class. We're doing it starts next week all about this slow flip challenge, which is kind of breaking the whole rental myth, which is one of the things I love about. He's Scott Jelinek, a friend of mine. I've been friends for years, five, six plus years, and he's got one hundred and twenty eight of these properties and he owns fifty eight of them, I think free and clear, 50 to over 50 of them. He owns free and clear now, and he's just getting a check every month from the investor as the bank is not the landlord. He's got about one hundred and twenty that he's bought. He's got fifty three or so that are free and clear. And then every month, because he's got so many now, you know, every one or two months, he's getting a new one that gets paid off and he's not getting any cash flow the first five years. Does that make sense? But you're your six day, one month one. Now he keeps 100 percent of that payment from the investor as his that's his cash flow. Beautiful. It's a beautiful model. I love it. And that would be something I would look at with this seller that Deborah said for maybe for this off market property, I would look at. All right, this duplex, they want forty six thousand dollars for it. Maybe I'll give them a cash offer if it's a good deal. If I feel like it's worth maybe one hundred and only needs 10 20 grand and work, maybe that would work.
But anyway, if you're interested in this thing, go to slow flip dot com, slow flip dot com. I'm going to put that in the Zoom chat here. If somebody can type this in the Facebook chat. If you're watching this or the YouTube type in slow flip dot com, this is a free class that we're doing starting next week, Monday, the October 18. If you're watching this later after this is already done, still go to slow flip dot com and you might be able to watch the replay there. All right. So this has been an entertaining call. I think had a couple of bad calls, had a good one, which was awesome. So it's going to be. I hope you guys get some value out of this, hopefully. Deborah, I'm going to reach out to her. Hopefully, she calls them back. Is Miss Deals Geri, who is the student friend investor that is on this zoom with me. Maybe we'll partner on this deal together. OK, appreciate you guys got a jet. We'll see you all later. Take care, everybody.