It can be easy to get overwhelmed in the real estate industry. Today, I’m going to go back to the basics and show you three easy-to-use methods for making simple cash offers.
First is the MAO formula. MAO stands for Maximum Allowable Offer. I show you the formula to use, and how to adapt it to fit your specific area. Then I show a specific example of how to put this formula into action to calculate a cash offer for a house in Birmingham.
The second method is the Average of the Lowest Sold. In a lot of ways, this is an easier method than the MAO Formula. I go over the method in detail and again show some specific examples.
Partnering with someone in the area is my preferred method for buying and selling properties. In fact, I have never done a deal where I haven’t partnered with somebody else. At the end of the day, I like working from home, and by partnering with local realtors and landlords, you get access to a “boots on the ground” person who can do the legwork of actually going to the properties and checking them out for you.
And that’s really the third method: making contact with local real estate people and partnering up. They’re going to know the area and the neighborhoods, and you can use their experience to make better deals. I call this “the Ask Formula” and I go over the process in-depth.
Freedomsoft makes all of these processes simple and easy, and I show you step-by-step how to use Freedomsoft to organize and track communication and handle e-signatures.
Watch and Learn:
Listen and learn:
- MAO Formula – Maximum Allowable Offer, and how to modify it to fit your area
- Average of the Lowest Sold method
- “The Ask Formula” – Make contact with local realtors, landlords, and resellers, and use their knowledge to profit
- A step-by-step guide to using Freedomsoft to make and track offers
Mentioned in this episode:
Download episode transcript in PDF format here…
Welcome, everybody, this is the REI Secrets special webinar, and this is a webinar I do every week for you guys just to say, hey, what’s going on? How are you? And I do coaching calls regularly where I answer a lot of questions. I have a Facebook group where I answer a lot of questions and the community is involved in there and helping each other.
This is a special webinar that I wanted to do. I wanted to take aside some time every week where I not necessarily asked for their answer questions, but I’m teaching something. And today I got something really cool I want to talk about.
I’m going to be teaching you guys how to make simple cash offers. And sometimes, like a lot of you guys may already be doing that. You may already know how to do it. But sometimes it’s good to be reminded again of the simplicity of this business. It’s not complicated. It’s not too hard. And many times when we are in the business and we’re deep into it, we’re studying. We’re watching videos and reading books and listening to podcasts or whatever. Right. It’s easy to get overwhelmed because there’s so much information out there. It’s an awesome thing. And it’s it’s a blessing and it’s a curse. Right. There’s so much information out there that it’s easy to forget the simple, basic things.
I wrote a book one time called Being Brilliant at the Basics. And if you want to be successful in this business, you have to be brilliant at the basic things and the most successful people in the business. The guys and gals were doing the most deals, making the most money. They’re really good at doing the simple, basic things and they don’t let anything stop them or distract them from doing that. Does it make sense?
And so one of the things that I want to do on this is show you how to make simple cash offers. I’m going to show you two different methods for making cash offers. There’s two different ways to do it. I’m going to share my screen here and I’m actually going to just write down some things on how to do it. And then I’m going to let’s go ahead and do it. We’re going to pull up a property. We’re going to look at it. I’m going to analyze it, and I’m going to write up a cash offer.
Let me first tell you guys, if you don’t have it already, you need to sign up for partnerwithjoe.net. That’s where I have all of this stuff in there. My calculators, the contracts, the scripts, the tools, everything I use is inside partnerwithjoe.net. A lot of you guys already on here have that. But in case you don’t, you’re watching this. Later I go check out partnerwithjoe.net. I’m going to show you some things here. I’m going to show you a calculator and software that I created that does this for you. I’m going to show you how I do this inside of freedom sopped, hopefully, and we’ll go from there. All right. So I’m going to share my screen. Hopefully I can get this to work. I haven’t done this in a while. And you should see my screen here. I’m actually going to go to my YouTube and make sure it’s on there, OK? Yes, I’m good. All right.
So what I’m going to show you here is how to make simple cash offers. I don’t know if my camera is kind of covering up there, but you should see how to make simple cash offers. And there’s basically two methods method. Please bear with me here as I’m not used to writing and teaching. At the same time, I’m going to give you method one, which is the simpler what I’m gonna give you the harder version first and then I’m going to give you the simple version first.
OK, Method one, it’s typically called the MAO Formula and that stands for maximum allowable offer. And that’s simple. It’s the RV, which is what the after repair value times. Seventy percent minus repairs, minus your wholesale fee. Real simple. And that equals your maximum allowable offer. Now some of you guys are like Joe, that is so outdated that doesn’t work anymore. I’ve seen videos on YouTube and people talking about it. It doesn’t work anymore. It’s it does work. The thing that’s changed is this this 70 percent may not work in your market, OK, in your market. And it varies in each side of each city. There’s certain areas of St. Louis where I might offer sixty percent. There’s other areas where I might do 80 percent inside of St. Louis. Now, if I’m in San Diego and I’m doing deals, I might be at eighty five percent of RV. So this formula works. No matter where you are, you just need to figure out what this number is. Generally speaking, the hotter the market, the hotter the zip code, the more desirable the neighborhood or whatever this number is going to go up.
What does this mean? This means there’s thirty percent equity in this house. There’s thirty percent equity after repairs, after your wholesale fee. OK, 30 percent equity. If there’s only if this goes down to 80 percent, that means there’s 20 percent equity. Right. And that just means. Well, there’s twenty there’s 20 percent. So if if it’s a there’s a big difference between one hundred thousand dollar house and a million dollar house. Right. So twenty percent of those two are completely different. So just be aware of this. In this method, this formula still works, but this number may need to change. How do you know what that number is? You just it’s just trial and error pretty much. There’s no shortcut. Easy formula.
What I would recommend is find the investors that are wholesaling a lot of houses in your market and ask them, what do you typically use or how do you typically come up with your offers? So let’s give an example of this just so I can show you. Let’s do green. Let’s say the value of a house that’s after repair value is two hundred and fifty thousand dollars. And let’s say the repairs, there’s different ways to do repairs like freedom. Soft has a really good repair estimate. Or you just put in the square footage of the house with the current condition and the are you going to do a turn it into a rental? Is it going to be a rental rehab or a retail fix and flip rehab? And so, generally speaking, what I like to do for repairs is I like to do five to maybe 30 dollars a square foot. All right. So if this is a general rule of thumb, I’m just hoping to get within five thousand dollars of what the repairs will be. And this is just our initial offer.
Obviously, when you make an initial offer, the seller accepts that you have an inspection contingency period in there of a couple of weeks, and that’s where you’re going to get a contractor to go look at it. You’re going to maybe partner with another local wholesaler who understands the market and understands rehabbing and things like that. You’re going to get your buyer to go look at it and they’re going to tell you it doesn’t need 40 grand and repairs. It only needs 30, which is great. Right. But generally five to thirty dollars a square foot. Generally, a five dollar square foot is just like if the seller says it doesn’t need any more. And if it’s a thousand square foot house, that’s five thousand dollars. And that’s going to be clean up landscaping, maybe paint, do some whatever. OK, thirty dollars a square foot might be a full get rehab. That’s where you take out all the walls except the studs, redo the electrical, redo the plumbing and refinished. Now again, it’s varies on what kind of quality furniture you’re going to be doing.
So there’s really good tools like let me just show you real simple. And one of the things I want to show you two things, OK? And you can get both of these, I’m sure, a different screen here. Boom. Here you go. See my screen. Just let me know if you’re in the zoom chat. You can see my screen here. I’m going to play my video to make sure. All right, good. I can see it. My freedomsoft. This is my log in into my demo account here. And let’s say I’m looking at one of these leads here. This is a house in Birmingham. And I don’t know, let me just see what size house this is. If I go to Zillow and look at this house, this was a house that was listed for rent. And I was going to make an offer on this. I was going to mean we might even do this as our example later on. This is a house that’s been on the market for one hundred ninety six days and it hasn’t sold yet.
Why is that? Well, might be in a rough neighborhood. Maybe retail buyer who’s going to live in this house does not like green carpet. They see that I want to throw up. I don’t know if it needs updating. This is a great rental property. The reason why hasn’t sold yet is it’s overpriced. It’s obviously not worth one hundred and thirty five thousand dollars. Somebody would have bought it now and it would not have been on the market almost two hundred days in Birmingham, Alabama. So on this type of a house, it’s two thousand seventy two square feet. So one of the cool things that Freedom Shop does here is they have this thing called rehab estimated and you click on Rehab estimated, you click start new estimate. I’m going to zoom in a little bit. You can give it a name if you want. This is a kind of style property. Is this I would call it one and a half story. Maybe it’s kind of weird, but style try do split into three total square feet. I think I said twenty one hundred twenty two thousand seventy two to zero seven to finish square feet basement. I’m just going to say that well let’s just do this.
It’s a four bedroom, four bedroom, two bath, no garage roof, no work needed. I mean just looking at the Zillow, I’m going to guess it doesn’t need any work because it looks like they put some work into it already. No work needed contingency. Let’s do five percent contingency current condition. It’s livable and it’s clean so you can choose total beater, livable needs work livable and clean. Then you go over here to the right after repairs. We’re not adding any new bedrooms or baths and I bet you that house, maybe it has to fall up. It’s probably one and a half. I’m still not going to have a garage and the finished quality, it can be economy, average luxury. I’m going to economy because this is a rental property housing market adjustment. This is Birmingham, Alabama. And this is it’s just going to be cheaper to maybe do rehab in Birmingham, Alabama. Then it’s going to be in New York City, for example. So this adjusts for the housing market and you click create estimate and it’s going to give you here to different estimates, one for rental grade and one for fix and flip. And you’ll be surprised at how close this is. This is going to be within ten percent of what the real repairs may need.
OK, so it’s ranges from seven thousand to twenty eight thousand here. Twenty nine thousand. But you may look at this thing. The kitchen doesn’t need any work. I’m looking at the pictures here. Is there a picture of the kitchen? So, yeah, this this kitchen looks nice. New appliances, new countertops, maybe new flooring. Yeah. All right. So you might come in here and just say kitchen, make that zero. All right. And then you refresh. Where’s the refresh? But here it is. Rerun. Oh, what did I do wrong here? This will be zero. All you got to click the check mark the right. So that jumps it down to. Forty six hundred and where the kitchen go, let’s just make that maybe 20 to maybe update some appliances. All right, so here we are. Forty six hundred dollars. I generally use five thousand dollars for a minimum for repairs on a house that doesn’t even work because there’s going to be landscaping. There’s going to be paint and carpet. You probably in this basement want to replace the carpet, maybe just tear it out and leave the concrete floor. Just kind of depends. I don’t know. Probably put new carpet in there. Here’s the second bath. All right. Well, yeah, this looks like it needs some updating and work, right. Flooring is ugly. The probably washer dryer go here. Looks like there’s some stuff that’s going on around the base of the bathtub, so this might need some work.
So anyway, I feel good about this estimate. Five grand minimum maybe instead of the putting three grand here in the kitchen, maybe we could double this to twenty five hundred dollars. So anyway, that’s you’re going to see you get a rough estimate there and from here you can actually save this to attachment. So when you click that button it will save it to the attachments here. Go to attachments, you give it a minute. Here it is. And it’ll show up in here. I’ve got two of them. And you can then view this later just for your files, for your records. You understand it.
All right. Now we’re talking about making offers here. Another way to do this is let me share my iPad again. I’m going through this in a lot of painstaking detail here, because I just want to make sure you understand normally what I’m calculating on offer. It doesn’t take me more than like three to five minutes max. OK, this shouldn’t take you very long. It’s taking me longer. So I’m just trying to explain it in a lot of detail. I hope you can understand that. So for this one know, looking at it, I might just use let’s just say, because the basement needs some work, I’m gonna do seven dollars a square foot, let’s say. And so what does that do? So you do just about twenty one hundred square feet, times seven. You don’t look at my numbers on the scratch that I’m going to do five dollars a square foot. OK, twenty one. Let me get my calculator out here. Where did you go. Calculator. There it is. Twenty one hundred times. I know some of you were like you can’t do that in your head. What’s wrong with you. Ten thousand five hundred. OK, yeah. I should have been able to do that in my head. All right. Sorry. So the RV is twenty two hundred fifty thousand. The repairs are ten thousand five hundred. All right.
So let’s do the formula here. Oh, and for my fee, I always shoot for ten thousand dollars wholesale fee. This is important. I mean, if you if you’re not expecting if you’re just expecting three grand wholesale fee, which when you’re getting started and you visit your local real estate clubs or you you network with other people that have been in the business while you’re going to hear this all the time, we have the average wholesale fee here is three thousand dollars or don’t be don’t expect don’t get your hopes up. Don’t listen to those. Late night gurus on average are going to make five grand on a wholesale deal that may be average for people that have come to expect it. But I’m telling you, and I’ve seen this in our own business, I’ve seen this with my students business when we were first starting to wholesale in a big way in twenty twelve, I was doing a lot of lease options before that and we started a regular wholesaling. My main acquisitions manager was like, Joe, three thousand dollars.
That’s a lot of money, right? That’s more than I make in a week and a month. I mean like oh yeah, I know that’s not chump change, but we need to shoot for higher. But he was really uncomfortable trying to ask for a ten thousand dollar discount, a ten thousand dollar lower price. So and he thought no seller in their right mind would ever accept an offer that low. Right. Like I’m already beating them down to ridiculous low price. I can’t beat them down another seven thousand dollars. So I finally got him comfortable with asking for a five thousand dollar assignment fee, wholesale fee. Then I got him up to seventy five hundred and then I got him up to ten thousand.
And guess what, guess what happens. Every time we increased our wholesale fee that we were putting into our calculations, we were making more money. That’s the way it works in this business. You’re making more money. So I would encourage you guys shoot for ten grand. Why not? Who says there is? Is there any kind of law or rule that says you can’t make ten grand? Sometimes you might make only five, sometimes you might make fifteen. Always shoot for this. Don’t shoot or expect for anything less. All right. So we’re still good. You guys can still hear me and see you guys can see my screen. Good. All right. So then what is our formula here? Let’s just do it. Let me get the right ink color. Let’s change it to blue. All right. We’re going to do two hundred and fifty thousand times seventy percent what in this market, let’s say that we’re in because it’s really hot right now. Let’s do let’s do eighty percent. So let me get my calculator. Two hundred and fifty thousand times point eight. That’s two hundred thousand minus repairs. Ten thousand five hundred minus a wholesale. Ten thousand. What does that equal? Two hundred thousand minus ten thousand five hundred, minus ten thousand. Those of you on Zoom, what number did you come up with? There you go. Julie’s got it right. One seventy nine five hundred one seventy nine. Five hundred.
That, ladies and gentlemen, is your offer. That’s your that is your this working maximum allowable offer. Now if you change this to seventy five percent maybe or this is going to be different, just kind of have to see how it goes. Now one thing that I always do and I’m going to show you this later in this after the second method is. All right, so if I’m going to be if I’m going to buy this. So let me let me explain to you also what this means is so my a to be my contract with the seller and me is going to be one seventy nine. Five hundred. Right. But then I’m going to sell it. This is me and my end buyer. I’m going to sell it for what, one eighty nine. Five hundred. You understand. So my aim to be. My aim to be. That’s my contract with the seller. Might BTC is my contract with my buyer that I’m selling for. All right. So I’m going to be selling it for one eighty nine. Five hundred. You better go and look to see what your competition is doing. If you see a bunch of similar houses listed for sale for one eighty. Do you think you’re going to be able to sell yours for one eighty nine or if you see a bunch for sale for one sixty one. I’m saying but if you see instead there’s a bunch of similar properties selling for two hundred thousand, well that’s going to be good thumbs up.
So you need to look at what your competition is, is selling these same properties for it makes sense. That’s method number one. You want to see method number two. It’s very simple and it’s a lot easier in some ways method to stay in the color. This is the average of the lowest sold and let’s just say four to five maybe actually, let’s say the average of the lowest three to five times eighty percent equals maximum allowable offer, really simple average of the lowest sold. Now, again, if it’s a super hot market, maybe maybe make this 90 percent, maybe make it one hundred percent kind of depending on where you are, if you’re in Southern California, again, that kind of changes. But most markets, this is a good average to hold on to average of eighty percent.
Somebody is asking here, good question. Where do you account for closing costs? You account for closing costs right here in the eighty percent and right here in the seventy percent. That’s where you’re accounting for those extra costs, carrying costs, closing costs, realtor fees, all of that stuff, like all of those extra costs that are involved with selling a house are covered right here. But it almost doesn’t matter, right? I mean, it does matter, obviously. But what matters is what are my end buyers willing to pay for this house? A retail buyer is going to be willing to pay more than an investor buyer that’s going to go in and rehab it. So you need to know that all those extra costs are associated with that. All right. Now, let’s look at an example of Method two on how we would come up with an offer like that. I’m going to go share my other screen here. And we’re where we think we are right here where we are. All right. This is my freedom. So let’s go into Redfin and I’m going to go into it’s just looking I was doing a working on a deal the other day in Louisville, Kentucky. Let’s look in Louisville, Kentucky. All right. Sorry if you can hear my water in the ice. I know that’s gross. And you hear I’m always bothered and annoyed when I’m listening to NPR and I’m hearing you can hear them smacking their lips and sorry.
OK, so I’m looking for houses here in Redfin. One of the things I like about Redfin is I can go here to filters and I could say, show me all the houses that have been on the market more than thirty days now. The market’s white hot. Even in Louisville, Kentucky, the market is hotter than it’s probably ever been. Houses. All you need to do is I hear this from investors in Louisville and realtors. All you got to do is stick a sign in the yard and the house is selling like that above, asking price multiple offers in a day. If that’s true, why in Louisville are there still eight hundred and twenty five homes that have been on the market over thirty days now, you might say? Well, there’s some new construction there and they’re selling houses that haven’t been built yet. All right. So let’s change this too. They had to have been built before. Twenty fifteen. There’s three hundred and twenty seven homes on the market. Well, you know, you’ve got these one point six million dollar homes in Louisville, which is really high and. All right. So let’s let’s say the house has to be under five hundred thousand dollars. That’s done. There’s two hundred and twenty eight homes in this area right now. They’ve been on the market over thirty days. Why haven’t they sold yet? They’re just overpriced.
But let’s look for a house that needs some work. And I’m going to go in and I’m just going to say, let’s look for houses at least. Priced above fifty thousand dollars. I want to make sure we’re excluding the really, really low end homes. I’m a sort this table by price one of the reasons why I like Redfin so much. If you scroll down to this table, you’re going to see a download all but right here. And I’m gonna do another video on secrets soon here showing you when you can take you can take that spreadsheet and upload it to Prop Stream and it’ll show you all of the properties that are free and clear that don’t have any mortgages. So you can offer seller financing to these people. I want to zoom in to Louisville a little bit more. Got one hundred and thirty five homes in this area right now. Not Redfin’s, not in every area. You can do something similar in Zillow, but it’s not as easy. And I’m just looking for houses that need work. This one is only one picture. It’s 50 grand. This one, two bedroom, one bath. All right. This one needs updating. This might be in a good area. I don’t know, but this one’s been on the market for fifty six days. It hasn’t sold yet. This one has looks like it has some kind of sign on the window. It says it’s either it’s a permit sign or it’s been condemned or something. I mean, I don’t know, non habitable.
Let’s do this. Let’s look for I don’t want the really cheapest. I want to look for something that’s already under it’s over one hundred grand. Let’s say that just needs updating because I’m going to make a lowball cash. This is a great house. I’d make I might make a on a financing offer on that. So I’m looking for a property that’s going to need updating and we’re going to come up with a cash offer. A lot of exterior photos. Sometimes that means all that needs the house needs a lot of work. That one looks good. All right. Here’s a maybe a decent house right here. I’m going to give you details. This is a house that has some interior photos that was probably taken with an iPhone. It’s got stuff on the walls. It’s cluttered. This might be a rental property. Something’s going on with this thing where it’s probably a landlord that’s trying to sell it. And there’s a tenant in there be part of the revitalization of the West. All right. So let’s make a cash offer on this house. Let’s say we talk to the realtor. You say this is a nice house. I’m surprised it hasn’t sold yet. What’s going on? Why has it been on the market? Two hundred and seventy three days. Then I talk to the realtor and I’ve done some other videos in the area. I see a series of how to talk to really what to say to them and say something along the lines of what this is. Is this a nice neighborhood? I’d be honest. Tell them I’m in St. Louis. Is this a nice neighborhood? Why do you think it hasn’t sold it? What do you think would be a good thing to do with this property? Would it be a would it be a good fix and flip it this be a good rental? What are the school districts like? What price do you think they need to price this at so it can sell?
People are give me a hard time for saying that I listen to NPR. Listen, I am I’m not ashamed of it. I’m very conservative. But I do sometimes listen to NPR until I can’t stand it anymore, then I’ll turn it off. But I like their in-depth stories sometimes, so stop giving me a hard time about NPR. All right. Sorry, I heard a story the other day about the bird migration, how these birds, millions of them, fly over your heads every night at night because they they fly at night because there’s less predators. It’s cool. And they migrate from the south to the north in the spring and from the north to the south in the fall and winter. And I wouldn’t have heard of that on whatever other channels that I might or might not listen to. Hook, I’m going to stop and start talking about that. It was fascinating, though.
OK, let’s make a cash offer in this. How do you do it? Well, again, is the average of the lowest sold and there’s a couple of places I like to go for the lowest. So I’m going to show you how to do it right here in Redford. There’s a free version and a paid version on the show. You both. But one of the things I value here is in red. When I looked see, this is a house that’s eighteen hundred and fifty two square feet. So zoom in a little bit. I’m going to scroll down and sometimes you see it in Redfin right below the map. It says map nearby homes for sale. I’m just going to. But you don’t see it here. You have to click on this doohickey here, make the map big and then click map nearby homes for sale. I don’t know why they do it that way, but they do. So this house is listed for what was listed for one oh nine or something like that. You sort this price. Yeah, it was listed for one eight nine. I’m going to write this down on the iPad. I know you can’t see it yet, but I’ll show it to you. The list price is one oh eight nine hundred.
All right. Now, what we have here is three homes in the search area. I’m going to go here to more filters. I’m going to turn for sale off, sold on. I’d like to get as many properties as I can, so I might go last year and I want to get as many cheap properties as I can. So I’m going to go back one year. Click Done. I have twenty eight homes here. It looks like more than I actually see. I’m going to zoom out. There you go. Now I have thirty five homes. I will sort this by price. I can see a lot of really cheap ones here, but there’s seven hundred and eighty square feet. Nine hundred thirty. And this house was what did I say it was eighteen hundred and fifty two square feet. Let me write that down. And it was a four bedroom. Two bath. Right. So what I might do is going to set a tab and I might say, all right, I’m going to make sure it’s a house. I want to make sure it’s at least three bedrooms. And for my size, I want it to be at least fifteen hundred square feet and maybe I don’t want to limit it too much. All right. So I’m kind of like I want it to get as many as I can. And here we go now, I’m a little bit better here, a lot closer, and I have eight homes. If I don’t have enough, I just zoom out again and that house that I’m looking at always stays in the middle. If that’s too many, I zoom in and I want to sort this table by price from low to high. So what I did there. All right. So now look what I’m seeing here. I’m seeing thirty five. Forty three. Forty five. Sixty four. I like seeing a cluster in here of homes.
Now, these are probably all properties that need work. Remember our house here, let me open it again. This is probably going to need work, too, because again, there’s no interior photos I’m expecting. Remember, we were doing our repair estimate. I thing I’m probably looking at fifteen, twenty dollars a square foot for this house to fix it up 15, 20 bucks a square foot. So on let’s say 15. Eighteen, fifty, two times fifteen. So it’s about thirty thousand dollars in rehab. That’s what I’m going to be just shooting from the hip with. So now looking at this, I’m going write down these three numbers and I’ll share my iPad in a minute. The lowest solds, we’ve got thirty five thousand. We’ve got forty three thousand one hundred. Got forty five thousand and we’ve got sixty four thousand. Oops. What happened here. Lost it. OK, now let me go back and share my iPad. I’m doing this with pen and paper so you can kind of see you don’t need fancy software and tools or whatnot, but let’s sum those up. You can do this with a pen and paper. Thirty five thousand plus forty three thousand one hundred plus forty five thousand plus sixty four thousand equals one eighty seven one hundred. OK, divide that by four. One, two, three, four. Right. That’s going to give me my average divided by four. It gives me an average of forty six seven seven five. OK, now remember we talked about multiplying it by 80 percent. This is a hot market right now. I’m going to do ninety percent so I would take forty six, seven, seven, five times point nine. Just going to give me forty two oh nine eight. That’s going to be highlighted. That’s going to be my offer now.
OK, this was two different properties. I just wanted to show you I should have done this actually I should have both methods on the same house. But anyway, too late for that. This is the other method.
Again, you take the average of the lowest sold times, a certain percentage to get that. Now, I would make an offer for forty two thousand ninety eight. Now, remember, though, if I’m going to sell that, I’m going to sell it for what, fifty two oh nine eight on the B to C, right. So this is A B and this is my B to C, so I need to look at well what’s my competition. Do I they’re going to be other houses that are going to be less than that or higher than that.
So let’s go back to Redfin here. And that house is still in the center of this map. I’m a changed more filters here to sail on and I’m in turn sold off. I just want to see again what my competition and there’s not going to be a lot of it. Right. Here we go. There’s only one home in there, so I need to zoom out to get more. There’s still only one zoom out again. Now we’ve got five of them set up there and we’ll sort this by price. My lowest competitor is eighty five grand. Now, sometimes you might want to remove let’s do maybe a thousand square feet here instead. Now I’ve got a bunch more and this is where you’re looking at. OK, well why would someone want to buy my house for fifty two and they can buy this one for twenty nine. Well this one it’s just, it’s a smaller house. Why would they want to buy mine for fifty two. And they can buy this one for thirty one, this one for forty seven. This one for forty nine. Now they are smaller but only by not much. Five hundred square feet. This one for sixty nine.
So I’m looking at this thinking can I sell mine for fifty two thousand. Let’s, let’s maybe get this back up to fifteen hundred square feet. Zoom out again. Right now you’ve got ten homes. This one is just two hundred, one hundred and fifty, two hundred square feet less. Maybe it’s in a rougher neighborhood. This one’s for sixty. Why would they want to pay fifty two for my home. Well I feel pretty good about my number so I’m going to go ahead and offer forty two thousand and that’s a seller or the realtor.
But I’m talking to them on the phone. I might ask them, well what are similar homes selling for. Do you think they’re asking what. Oh my gosh. One hundred and eight. No wonder it hasn’t sold yet. No wonder it’s been on the market for two hundred and seventy three days. They’re just asking way too much. Maybe they’re not ready to sell yet. That’s fine. Maybe I can offer something close to that if they do own or financing or something. Right. But that’s why it hasn’t sold yet. They’re just asking way too much. So what do you think I could sell it for? And some people make this mistake. Well, they’ll say, all right, I’ll offer ninety eight thousand dollars and then they’ll go around, turn back and try to sell it for one to eight themselves. Well, if they can’t sell it on the MLS runaway, what makes you think you’re going to be able to sell it for one eight to your cash buyer when you’re advertising this house? You need the market. You need to sell this thing for fifty, sixty seventy thousand dollars to get investors attention because they’re going to look and say, oh my gosh, wow, this is a deal. This thing was listed for one eight. Now I can buy it for seventy five. Yeah, I can do that. I think they’re being real aggressive here. They’re thinking this is. The area that’s being gentrified, if somebody puts 50 grand in this thing, they can really make it nice and sell it for a lot more money. So I don’t know if this is a this is a tough area and this is where if it’s in an area like you just don’t know, we go in and you find whatever, find another wholesaler that’s selling houses and four to one or two in that area and bring on this deal and say, hey, listen, you want to partner with me on this deal, this one, if you just kind of screw out to see where it is again, there’s probably I can spend five minutes and find five different wholesalers right now that are wholesaling properties in this area of Louisville.
Bring them this deal and say, hey, you want to partner on this thing, what do you think you could sell it for? And they could probably tell you pretty quick. I could sell that thing all day long for seventy five grand. All right. So you go in and you offer sixty five grand. So that’s actually method three. In fact, I’m going to write that down because that’s a good one. I just thought of that method three might be the most important one of all. Let’s go here. Method three ask ask who other wholesalers. Who else. Landlords, Rehabbers, realtors, especially the investor friendly realtors. What am I talking about. There you go. Back to my screen here.
Are you guys picking up what I’m laying down back here? So this is four to one to right. Let’s go back here to this area. This is where we were looking for sold homes. Let’s go back to for sale off, sold on. Let’s do the last six months. These are houses that have sold recently. I open this house here. It’s going to have details recently sold three months ago. Well, who sold it? Here it is Chelsea, right from Dream, JP Purtle Realtors. And it was bought with this guy, this realtor, Gary Redner, Cedar Hill Properties. So let’s look to see who that agent is. I just Googled him. And sometimes you see the phone number here. Sometimes you don’t just need to do a little more sleuthing. Here’s his home snap profile. He doesn’t like giving people his phone number, it looks like here. How about his Facebook page? I see a phone number there. Somebody’s phone number.
All right. Call that agent up and say, hey, I see that you just sold this property to one of your clients at twenty five. Thirty two Jefferson Street. I have a similar property nearby that I’m trying to sell. I was wondering if your investor or your client might be interested in another deal in the area and then get that agent to represent you and their buyer, pay the commissions. You might just Google it, play around with it a little bit. This is Cassandra. Call her. She probably knows who to talk to. There’s a bunch of people here and they all look happy. Looks like a good place to work. OK, call them up and say, hey, I have a property in the area that you just sold to investors that are looking for more properties. If you bring me a buyer, you can get a commission on these deals. That’s all you do.
So going back to my other screen here, I had this I think is my favorite. My favorite. Why? It’s the fastest and less work I don’t like. I mean, I do like work, but I’m just saying this is faster. It’s less work. Plus I’m going to find somebody that will do the legwork for me of inspecting the property, of showing buyers the property. And I’m just going to split my deal. Fifty fifty. So if I’m partnering with a wholesaler, for example, I might just split 50 50, the wholesale fee landlord. I’ll just be honest with them and say, listen, this is a property that I don’t want to buy. You want to buy it, rehabber. The same thing. If it’s a realtor, I offer to pay them one hundred percent commissions.
Now, what does that mean? What does it mean? What it means is like realtor normally gets six percent commissions, the buyer’s agent gets three percent and seller’s agent gets three percent. I’m just going to let them double dip the commissions and then gets the full six percent. OK, yeah. So like let’s say my assignment fee, I’m hoping to make ten grand on this. If I have to pay a realtor four grand, I’m still making six and the realtor does all the work for me easy. And the other thing too is these wholesalers can give youthey can give you the money, they can give you the buyer’s if you need it, they can give you the contracts that you need. They can give you the title companies or the attorneys. Anything that you need. These guys will have they’ll have the hard money limit. The buyers are looking for deals. The contracts use the title company, the attorneys and the experience.
So here’s the thing, guys. I have never done a deal where I’ve not partnered with somebody else. I’ve never done a deal where I was the only one doing everything. Never. I’ve always partnered with a realtor or an assistant even that did the work of selling it for another wholesaler. Another landlord I’ve always looked to see. OK, I like working from home. I like being in my office. I don’t like driving all over town. OK, you’re not going to see a bunch of mileage deductions on my tax returns with my cars. I mean, I’ll drive to the coffee shop and back. That’s about as much as I like to drive around looking at. I don’t look at houses. I want to partner with somebody else who decides who does like to look at houses. And this is, again, why I can do deals nationwide, because I guess I do the marketing.
I get the leads, prescreen them, give them to my boots on the ground person and they do the work. You understand what I’m saying? I’m getting good feedback here. I love Method three and this Method three. I’ve been doing it forever, but it just came to me. I plan on only talking about the two methods here. The MAO Formula, the average of the lowest solds formula. Now you have the Ask formula, simple. Any questions on this, guys?
All right, so let’s say we now have an offer that we want to send to the seller. I’m going to look something up here real quick, and I’m sure you what do you what do I like? Let me just make sure it is here in this place that I’m going to be showing. You want to make sure we’re we’re good. All right. We are good. All right. I’m going to go to back to one of these leads we were just looking at. I’ll share my screen.
This is all done in Freedomsoft. I really recommend you go check out Freedomsoftjoe.com, because this is what I like to send. And typically, though, this is what I send to the actual seller. If I’m dealing with a realtor, I will just ask them to write the offer up for me because we have to use the realtors contract. Right. But I want the I want the realtor to present the offer for me. But if I’m dealing directly with the seller, I’m talking to the seller on the phone. And even if they say, you know what, that’s not going to work, we’re we’re miles apart. They’re not even motivated yet. I’m still going to send them an offer anyway. And when I send a cash offer, this is what I like to send.
I’m going to be doing, by the way, my next REI Secrets video. I’m going to show you how I make simple lease option offers and owner financing offers. So just be aware that I’m only talking about cash offers right here, right now. So for this one, I’m going to go make an offer expiration, let’s say, two days that I’m going to say this offer expires in the fourth and I’m going to buy. What did we say before? We’re going to offer forty two point forty two oh nine eight. I must sell it for fifty two oh nine eight and oh, here we go. I wanted to put it here. Forty two. There you go.
So my estimated revenue and my profits going to be about ten grand. Let me look at one other thing here. I want to make sure I have it in the right. OK, good. So I’m going to put in here, I’m going to offer forty two 098. And what I like to do then is I have this document in freedom and if you have the freedomsoft Joe McCall, signature addition, you get this click on generate document and have a thing right here called the cash offer for page template. It’s not mapped correctly. All right. I need to fix that. But I’m going to show you how, even if it’s not mapping correctly, how you can quickly do it easily on the fly.
Oh, I know what the problem is. I know. The problem is I didn’t put the owners information in here. The owners information is blank, so this should work. I just click, find owner, click there, save the fields. All right. So just brought in the owners information right here. Moriah Corp, Inc. That’s the mailing address. OK, now I click the three dots for the generate documents follow up letter. Next step now it’s got the things filled in. Nice. OK, there’s one other thing I have to fix you right now in this lead. In particular, this is the realtor that was listing the property. I want the owner’s name in there. So I’m going to put Moriah Corp Inc up here, so I just change it. OK, so that’s now the owner up there generate document. It’s not the realtor. I mean, so next step that looks much better.
Next step. This is my four page template here, which is going to say, all right, Maria Corp, this sheet of paper is worth forty two thousand ninety eight dollars for the next 30 days. Puts their name in here. After taking into consideration our conversation, the following information you shared, the information shared about your property in the current market conditions. We’re making the all cash offers that you can sell your property at address. This offer is good for thirty days. Got my information, my signature, and here is my one page contract and it’s filled out with the date, the buyer’s names, the seller’s name, the address, what I’m going to be offering. They’re earnest money now you can put earnest money on here. Sometimes I do a thousand bucks or something like that. You can change it. OK, that’s it.
And then there’s a third page and this is really cool. I love this because this is attached now to the contract and it says this is a benefits that you’ll experience when you sell your property. The US will buy the property. You don’t have to wait for a bank to prove a loan. Other investors are going to give you lots of contingencies. We have a ton of experience. Other people who knows now you can go in and you can modify this. You may not have thirty, but I consider listen, I’ve got my own experience. I’ve got my business partners experience, my wholesalers that I partner with, experience title, companies that that I use. We have combined easily thirty years of experience. The other guys who knows we have the best title agents most of the time. Other guys are just a one man show. We’ll buy the house without having a tenants move out of the properties.
Other investors, though, want the property. We’ll never ask you to make any repairs. Other guys make sure you read the fine print. The guys will close only if things are going OK. Be careful, read the fine print, et cetera, et cetera. Otherwise, with us you’ll have to worry about any of that stuff. We’ll buy it. We’ll close on the next page is a simple. There’s two ways, Mr. Seller, you can sell your property as no one determine the price of the home, repair the home, get it ready, advertise, wait for an offer advertised, wait for an offer, hold an open house, wait for an offer. Show the property buyers. Wait for an offer, negotiate a sales price, make the repairs necessary to close, prepare all the contracts, coordinate with the title company or sell your house to us. Get a check closing. All right.
I love this because it’s just a real simple cover letter. Hey, it was nice talking to you. Here’s a one page contract and here are two pages of summaries and benefits of why you should be worth. With us, click complete, it takes just a minute to generate this.
Somebody give me their email. Somebody give me their cell phone number and I won’t say who, but type in their cell phone. Somebody type in your cell phone number into the zoom chat. All right. There you go. Jerry, I’m going to copy Jerry’s phone number here and just put it right there. This is Jerry’s phone number. Those if you don’t know, Jerry. I’m actually going to text this to Jerry right now. When I click on View, I’m going to highlight this URL. I’m a text. I’m going to click on this phone number Assam’s. Hey, Jerry, by the way, Jerry, please give me your email address, too, if you don’t mind typing your email address. It was great talking about Jerry. Jerry, it was great talking with you about your house ad. I don’t remember the address. What was the address again? OK, there it is in City. Here is a proposal I just emailed to you and I’m going to paste that link right there. Send us a message.
Just sent him a SMS and he also gave me his email address here. So I paste his email. I’m also then going to email this to him and you can click on the attachments right here. And there’s a template as well. Right. And it’s coming from my business email. And so it’s going to put his contact name in there, attaches and edges off of your property to address this is net to you. Please send it back to me right away. Boom. I click on a send a copy of it to me as well. And just like that, I sent Jerry an email. He just confirmed. Thanks. I got it. Let’s do it. All right. Go ahead and sign and send it back to me, Jerry. One other thing, Jerry. I’m going to send it to you in a digital signature here in a minute. The other thing I’m going to do is I’m going to print. I’m going to send it in the physical mail. I always send my offers in the physical mail to sellers because I want them to. In fact, let me do that in a second, Jerry. I’m going to send it to you right now as a digital signature. OK, so I’m going to click on right here. I’m sign I’m going to put his name here, Jerry. I’m going to put his email address right there. And I can sign I can make myself a signer as well if I wanted to. But it’s going to take a minute here just to make sure this this document is uploaded.
Let me just show you how that’s done. I could make myself an assigner if I wanted to and I could assign a signing order. I could say me first, Jerry second. OK, I’m just going to delete that for the interest of time. So it’s Jerry and the offer the contract is uploaded there. It’s not spending any more. Now, I’m going to click on next. And this is where I’m going to drag and drop the signatures. So I want him to sign down here. So I’m going to drag a signature right here and I will sign who’s supposed to sign it. Jerry. Cool. And I’m going to drag the date up here as well. So this is just like DocuSign or Hellosign or whatever kind of digital signature you do. That’s where it goes.
I’m not going to sign it here this. But if I was going to put myself in here, this is where I would do it. I also have to select Jerry is the one who dates and signs that if I was going to sign it. Yeah, go right there. And yes, this is being recorded. Gilbert, this will be on my YouTube channel. Are you subscribe to our YouTube channel guys yet go YouTube to search for Joe McCall. Subscribe to our YouTube channel and you’ll get this video in there.
So offer for your house, Jerry, please sign. Thanks, Joe. All right, Jerry, I just emailed that to you. Give it a minute here, but go ahead and sign it and send it back. And yeah, it’s simple. It’s the signatures are not as simple as well. All right. So let me go back here, because I remember I was just saying I always want to send offers in the physical mail to sellers. I always want to do that. And so what I like to do is here’s that attachment again. I use email to mail, click to mail. And if you don’t know what I’m talking about, just go to Google, do a search for click to mail, email to mail. Here’s the link for that. I’m going to show you what it does. You have to have a prepaid account with click to mail. It costs about anywhere from eighty cents to a dollar twenty to send a three to four page letter. What it does is you send a letter to click to mail with the attachment of what you want to mail. You send an email to click to mail with the attachment. We want to send in the subject line. You’re going to put the seller’s name and address separated by semicolons. All right.
So from here in freedomsoft. So I’m going to click email and I’m going to I have a special email from click to mail. Click that. And I’m going to what they offer is attach right there. And there’s an email template called Email to mail. All right. What it just did is it put in to the subject line. I’m going to when I click, send email. It’s going to send this offer. Click to mail. I’m sorry. It’s going to send this email. Click to mail is going to get this email. They’re going to print this offer and I’ll have them do it on yellow paper. And it’s going to look like this. If you can see my screen here and they’re going to print it and send it to whoever is in the subject line. So it just merges in the field of the owner of record in the mailing address of the owner. OK, I’m not going to do it. But if I click, send email, you can see my screen here. It’s going to send an envelope like this yellow letter paper. This gets open, it gets opened and the seller now gets what? They get a text. I talk to them. And by the way, also in freedomsoft. I’ve talked to them. Freedomsoft records the phone call. It keeps track of the text messages. They’re going to get an email with the contract, a text message with the. By the way, Jerry, could you go ahead and respond to the text? Yes, I got the contract and then they also get in the physical mail, the offer and guess what I’m going to do next. This is really important no matter what CRM you’re using.
This is really important. By the way, somebody is saying, did you just put three dots and yeah, you have to have something in the body of the email, but it doesn’t matter what’s in the body. You just have to have something. I just do three dots. You could do one dot if you wanted. But in the subject line, you have to have the owner of record semicolon, mailing address, semicolon, city, state, zip code. I’m not going to. But then what you do here is you’re going to just keep the status follow up. You can also change your status if you want to. There’s there’s an option for cold, which then we’ll do an automated text follow up campaign with them. But I’m going to go here to tasks. All right. And I’m going to complete that old task. I’m going to create a new one. I was going to say follow up and to assign it to my assistant or to me.
I’m going to do a due date in the future in 30 days. OK, so now every 30 days, this task is going to come up for reminding me or my assistant to follow up with that cell. And what do I do? I’m just going to go in and create a new I’m going to have my voice do this, create a new contract, just like what we did with a new date, the same dollar amount. Send it again to the seller. Jerry did it. He said here. Yes, I did get it. He signed it and sent it back. By the way, you can see in my communications here, Jerry. Good. And respond to my text with you. Now, I might have I might have texted Jerry before and another campaign because Jerry’s on all my videos. So if he did respond to me before, it may not see the communication in this tab because I have another lead with Jerry in it. Somebody ask me, how did you get it on a yellow letter? When you’re setting it up and click to mail, they’ll ask you what kind of paper do you want to use? And I just picked yellow. And I have detailed step by step instructions on how to do this. By the way, inside of partner with Joe. If you go to partnerwithjoe.net, sign up there. All right.
So let me also show you something here that takes a minute. But he just signed it, he said, and he sent it back. But in a minute here, I’m going to see that signed shows here is still out for signatures. So, Jerry, just make sure you sign it and complete it and all of that stuff. And by the way, when I do send offers to sellers like this for digital signatures, I make sure I have them on the phone when I do it, when when I’m ready to go and sign this contract, I have them on the phone. I’m talking to them. I’m walking through it. OK, Jerry, do you have the email? Good, click it. What do you see there? All right. You see the contract? Go ahead and sign there. Good. Yep. Click that, click complete. All right. Good. You click complete. All right. Let me go here to my email. Make sure we got it. And if I didn’t get it yet, I was like, OK, what’s going on here? So I can walk him through it. You can do yellow paper, by the way, while I’m waiting for Jerry to text me back and sign that thing, I’m going to just show you real quick here my clicked email account. How do you get the yellow paper? Because somebody is asking about that and then we’re going to go ahead. And again, if you want detailed instructions how to do all of this, go to partnerwithjoe.net. I have hundred and seventy eight dollars in credits. They have a thing here called emailed to mail. Click on that resume in a little bit and I have different mailboxes. They’re called and let’s just open one of them here. If you go here to write their paper canary that’s a yellow. OK, so when you’re setting up what kind of what you want to do, it’s on a double window envelope. Black and white printing on one side paper is canary. Twenty four pound. You can do off white or white as well and they’ll do first class or you can do different things.
OK, and it’s not two forty five. It’s a lot cheaper than that. It’s two forty five. If you don’t have pre-paid credits, which I do have prepaid credits, I’ve got one hundred and eighty bucks in here. So that makes sense guys. All right, Jerry, I’m looking at your I don’t see your you’re not chatting with me and zoom are you still with us here. That still shows it’s not complete when it is complete. Maybe Jerry he’s trying to sign. It still is. He’s getting distracted. OK, good. Here he goes. He responded. I got your text. Nice. Thank you, Jerry. If I wanted to, I could call him right from here. In fact, let’s call him right now. This mess with him, it’s dialing. Hey, Jerry, how are you doing tonight? I’m on my third find, I find it have to get it to register all about it says use the signature. OK. Well, I’m just calling it up to the pastor, I’m sorry, but that’s all right, man. Go ahead and sign it when you can and send it back. Just a question for you. Yeah, I choose.
It’s showing up on the offer. But I’m not sure what to click on in order to register and send it back to. It should just be clicking wherever it asks you to sign and then date and then click complete, OK? Now, maybe it might be a little more challenging on the phone. I don’t know if you’re on your laptop, it’s easier, but I’ve done it before on the phone. All right, well, Jerry, I got to go. OK. All right, take care. Thank you.
It does work on the phone. I’ve done it before. So maybe Jerry has an older phone or maybe I don’t know, but it’ll work now. By the way, this is a good point. This happens all the time. You’re dealing with a seller. They’re like they’re not tech savvy. They don’t know how to do digital signature stuff. They don’t even know how to use a mouse or turn the computer on. What do you do?
Well, you use mobile notaries. There’s a company I want to recommend. NSSNotary, this is a website my friend in North Carolina uses, Larry Gowens. So check out NSSNotary. That’s a good place to go to get mobile notaries to go to the seller’s house. This seller, Jerry, he’s ready to go, but he’s having a hard time figuring out the technology side of things like how do I sign this? I say, that’s all right. Don’t worry about it. I’m going to have my notary come over to your house. And the document doesn’t have to be notarized. But I’m just going to pay this person to come to your house. It costs 50 bucks to get a mobile notary. OK, another website that you can go to is, I think, 123notary.com. OK, and another reason why I like working with local wholesalers and local realtors, OK, is that my boots on the ground person can go to that seller’s house and get the things signed. So it’d be nice if every seller could just sign everything. They were computer savvy, their computer was updated, they had the latest iPhone or whatever, but that’s not going to happen. A lot of sellers are going to be behind the curve when it comes to technology. Not a big deal. OK, all right.
So a few things, guys. I want to just recap with you. Remember, there are three different ways to make cash offers. No. One, it’s the typical MAO formula. Remember what that is? The RV, the repair value time. Seventy percent minus repairs, minus your fee. Simple. Been around for years and years. It still works today. Don’t listen to anybody that tells you that doesn’t work anymore. It does still work today. You just need to maybe adjust the 70 percent to 80 percent or 60 percent or whatever.
The second method is real simple. I’m working with a guy right now who’s doing driving four dollars from me here in St. Louis. By the way, people are like Joe, do you still do deals? Yes. I don’t know why I have to even answer that question, but whatever I got a guy right now is driving four dollars for me in sales. And by the way, when he gets a deal under contract, am I going to do the work of selling it? No. I’ve already talked to another wholesaler who’s doing a lot of deals in St. Louis. And I say, listen, I’m busy right now. If this guy that’s doing the driving for dollars for me gets deal, will you help us sell it and split the deal? Fifty fifty. He said, yeah, no problem. All right. So anyway, that’s what I told him to do. This guy is driving four dollars for me. He’s new to the business. It’s super simple when you’re talking to them on the phone. Just get the average of the lowest three sold, which I just showed you how to do it in Redfin, get the average of the three lowest sold. And that’s your offer. It’s like, OK, cool, I got it. OK, Jerry just said he got it signed. I’ll show you in a minute what it looks like.
The third method, real simple. It’s ask ask other landlords, other wholesalers and their property managers and their realtors that are already doing deals there. Say what do you think you would buy this for? What would you be able to sell this for? OK, then offer go back to the seller offer ten grand less real simple. That’s how you do it. If you want more. I’m going to go actually right real quick here to freedomsoft and see if it came in. Boom. There it is.
OK, let me share my screen with you because this is exciting. I love how freedomsoft just does this all for you. If you’re interested again in freedomsoft, stop and get the Joe McCall signature edition to get that offer that I just showed you. Go to freedomsoftjoe.com. But here we can see the thing that was signed. Click on View, go to the contract. And there’s Jerry signature right there. Ba boom, bada bing. Now, he could have done it with his finger and signature on it, signed it. He could have signature on it and signed it with his finger. But he’d use the standard one that will give you options. You could use that. All right.
The other cool thing is it shows you right in here, the audit trail for that, if ever becomes a legal issue, it will show you. Look, he signed it from this IP address on this date and it gives you the document. You you I.D. this is the same stuff that you sign or hello sign does it. But the cool thing now with this, guys, is it keeps all of this in the actual record. So this is the record with Jerry right here. This is what I use for the owners information. This is if I go here to communications, I see the history here. It actually recorded. Remember, I did that call with him. I recorded the call. You want to hear it? How are you doing? Didn’t write it. Recorded the outbound call and I can text him back.
Thanks, Jerry. You’re a trooper. Send us SMS. So it keeps track of the whole conversation here in freedom. And I go to attachments. I can see that it’s been signed. I have the document there now. What do I do? I go to lead status. I change it to under contract because it’s now under contract and I go to my tasks. I’m going to just make sure we’re not forgetting anything. And I could say centa title. Company, get inspection, call realtor, etc., and I could assign that to myself due date today, etc, etc.. Boom. OK, that’s what you do and you can have your whole team in here. Managing these leads for you keeps track of all your communication, your conversation and the attachments and all that. Right.
Now, let me show you one more thing here, guys, because if you’ve been with me this long, I have some things I want to ask you to do. If you’ve liked anything that I’ve shared with you, I want to ask you to do me some favors. And I’m trying to find I have a fancy slide that I built with this and it’s not going to work our with slides. It’s just going to work. Here it is, guys. Hold on. This is so fancy. Aha. There it is. You see that. Let me present. I got a slide for you guys. Here’s what I do. I’m going to recommend you go register for the zoom training calls inside of partnerwithjoe.net. If you’re one of my customers, one of my students, you get access to these in Zoom. I’m going to give you this book, this book I have right here, all my secrets. You’re going to get a PDF of it for free.
If you like this, go leave me a video review from your phone at reviewjoe.net from your phone. Leave a video review. I’ll give you a PDF of this book for free. I have a YouTube channel. Go to YouTube, do a search for Joe McCall. If you want a recording of this, do a search for Joe McCall and you will see it there. You can subscribe to my podcast if you haven’t already. Just search for real estate investor mastery. If you want to get freedomsoft, go to freedomsoftjoe.com.
I didn’t even talk about Prop Stream, but go to propstreamjoe.net, I didn’t even show you that to you yet either. But you can get it at partnerwithjoe.net. And if you guys are still here, would you like to see how I use that software? If you wanna learn how to do lease options, go to SLOclass.com. All right.
I’m going to show you how to use that software. Would you like to see that? And you can just bail if you’re not interested in this anymore. And if you’re like, OK, I’ve had enough overwhelm from information, overwhelm, get me out of here. Where did my slides go? I’ll just find another place if you’re interested. Forget it. We’ll do it on another video. I’m getting a bunch of yeses. You guys are interested. OK, hold on a second here. If you’re still with me here, then you really want to see how you do this on the calculator. I will show you. I will get there because it’s in my main membership portal. OK, here it is.
Let me share my screen with you guys. I have a software that does all this for you, but I just kind of showed you and I’m just going to walk through it real quick here. Um, there’s my information now. You can see here it’s property info after repair value, cash offer. And this also helps you come up with the lease option and owner financing offer. It’s going to show you how we do cash out your next. I’m going to put information about the seller here. That’s not his real name is Jerry Smith. Property address. Let’s just say one, two, three. Main Street City, Des Moines, Iowa, five to six five. It’s where I used to live them sellers mailing address, the ability to do West and Street City, St. Louis, Missouri, six a next.
Now, this is how we determine this is method one. We need to determine the RV. So let’s say you determine the RV by figuring out, OK, it’s Zillow says it’s worth one eighty five read or appraisal says it’s worth one ninety five. Redfin says it’s worth one eighty. So the average of those is one eighty six. OK, so RV that I’m going to use is one eighty. So I click next. That’s the RV, the repair value. So here is method one of time. Seventy percent. So I’m going to do seventy five percent instead of seventy percent square footage. Let’s just say it’s twenty one hundred square feet and I’m going to do, let’s do ten dollars per square foot. I want to make ten thousand dollars wholesale fee. You can always edit these repairs to your so my method one cash offer is going to be one oh nine. I you can see that.
OK, now here we go into the last, the average of the lowest sold and I can see well there was one that sold for one twenty five, one that sold for one thirty five. One that’s sold for one fifteen my discounted the average eighty percent. All right. So now I have here to. Can you see that. OK, zoom in a little bit more. I have method one cash offer one or nine method to cash offer one. So which one do I want to use. I’ll just do something in the middle. One hundred and five I’m going to put five hundred dollars earnest money deposit and let’s give him a deadline of 4th click next. Now I’m going to just I don’t need this other stuff. I’m just going to go through here and show you that’s the lease option stuff and the finance and stuff. And I’m not going to worry about that right now. I just want cash.
And here we go. I have a cash offer only right here. I get three different three option letter of intent, one that gives me the cash and lease option and seller financing when that gives me just cash in. Two different lease option offers one, that’s cash in two different owner financing offers. So and then a blind owner financing our what I’m gonna do right here cash offer only. Right. And if I click that, it’s going to open it up and word. Let me do a new share with you guys here so you can see what I’m looking at. And there it is. There it is. And word right here, there’s a one page contract, which is a really good contract, by the way. I didn’t even talk about how good it is. And there’s a third thing and there’s a fourth thing, OK? And so from here, you can save it as a PDF. Whatever tool you’re using. Save it as a. PDF on your computer and just email it to the seller, you can print it and send it in the physical mail to the seller.
You can take this then and go attach it to freedomsoft. So we were in that freedom soft lead. For example, let me refresh this page. Well, whatever it was, you just go right here to attachments and you can attach that file that we just created to the record boom. And it’s attaching that document letter into there. And then from here you can e-mail it and text it and send it to click to make sense. All right. So that calculator that we just did here is at partnerwithjoe.net. If you want this calculator go to partnerwithjoe.net, and this will walk you through getting the repair value of getting the two different methods for the cash offers, creating a lease option two different lease option offers and two different owner financing offers.
Looks like this. You get the software for free, you get the free version of just the cash one. If you want the lease option or financing, you need a joint partner with Joe and it’s just seven bucks. Cool. All right. That’s all I got, guys. I’m wiped out. I’m tired, not tired. I’m doing good. It’s only eleven thirty, but I’m ready to go. I appreciate you guys. Somebody is asking here, can you put the last slide up so I can screenshot it? You mean like the slide that I did the slides? I don’t even know what I did with it. Slides Dot Google. I think you want to see right here. You want to see this share screen boom. This is what you want to see, I think. But this is what I’m going to show you anyway.
All right, guys, I do these calls every week. I look forward to doing them. I love teaching you about marketing systems and automation delegation. So I do this every week. If you want to be on Zoom with me, you can go to partnerwithjoe.net and you get you’ll get a link to these calls. If you’re also one of my students in my Simple Lease Options courses or whatever, you get access to these. You don’t have to buy partner with Joe if you’re already in the Simple Lease Options.
If you want my book, The Secrets Book PDF for free, just leave a review from your phone, from your phone. Go to review. Joe dot net. Leave me a review. I’d appreciate it. You can subscribe to our YouTube channel where you’re going to find a lot of other videos like this. Just go to YouTube to search for Joe McCall, subscribe and get notifications for my videos.
I also have a podcast. We do three episodes a week. Go look for real estate investing mastery if you want to sign up for freedom soft. My signature edition. Go to FreedomsoftJoe. It has all of my my paperwork, my contracts, my my workflow, automations, my websites, all my good stuff, my contracts, my lease option contracts, everything are in there.
Or if you want propstream, go to propstreamjoe.com. If you want that automated offer pro software, go to partnerwithjoe.net. And if you want to learn how to do list options, get cash now cash flow and cash later, go to SLOclass .com. I know that’s a lot of stuff. I just wanted to say, hey, if you, if you appreciate this, go check this stuff out and we’ll see you guys later. I appreciate you all very much. Thanks, guys.
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