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  • Let’s Look At Some Real Deals – Joe’s Deal Evaluation Secrets

I’d say that 90% of the deals that I see in our partnership program don’t really deal yet, but they’re so close. So in this episode, I’m going to be taking a close look at three deals that were submitted to me in advance and showing you how I would do them differently.

The first step, of course, is making those offers. You’ve got to do the marketing, make the offers, and follow up with the sellers. Talk to at least 5 sellers a day, and make an offer to every seller you talk to. Even if they don’t take you up on those offers yet, you’re planting the seeds of a relationship.

Using the offer calculators on PartnerWithJoe.net, we take a close look at three deals sent to me by my students and analyze them in-depth. I’ll show you how to come up with good offers for these specific properties, and also how you can apply these tips to all your leads.

Plus, I answer live questions from students about calculating rehab costs, when and how to get out of a bad deal, information about lease options, and more.

To join the program and partner with me, go to PartnerWithJoe.net.

Watch and Learn:




Listen and learn:

What’s inside:

  • How to go from making offers to closing deals.
  • Talk to 5 sellers a day, and make an offer to every seller you talk to.
  • In-depth analysis of 3 real-life deals, submitted by my students.
  • Live question and answer session.

Mentioned in this episode:

Transcription:

Download episode transcript in PDF format here…

Welcome. This is the Real Estate Investing Mastery podcast.

What's up, everybody? How are you doing, Joe? This is the REI Secrets webinar series. I hope you're doing well. I'm here every week to do these really simple secret webinar series with you, because I want to just show you kind of what's going on in this little brain here and help you figure out how to get more leads, do more deals, make more money. That's my whole goal. Right.

And I believe that there are three keys to success in this business, marketing, automation and delegation. So my goal in this free content that I give to you here is to show you how I my marketing tricks and tips and hacks and how I get more leads and how I analyze deals, how I make offers so that you can take what I've done here and copy it and emulate it, do it yourself as well.

So on today's video, I'm going to look at three deals that students have submitted to me to review. And I'm going to look at them and tell you what I think, tell you how I would offer differently or what I would offer differently, how I would change it and etc. So few things. First, if you want more information about how to work with me and how to submit deals to me to get me to review them, I want you to go to PartnerWithJoe.net. I have a 30 day class in there where I'm going to teach you the fastest, simplest way to a deal from beginning to end in 30 days or less. And it's just seven bucks. So if you go to PartnerWithJoe.net, you'll be taken to a page where you can download a free version of my offer calculator software. I'm going to show you that here in this demo and a couple of deals that we look at. You get that for free. But when you join partner with Joe, it's just seven bucks. You're going to get access to the pro version, which lets you calculate not just two different cash offers, but two different lease option offers to different owner financing, offers to software that you get free access to as part of the partner with your program. But I'm also going to be teaching you in this program how to find deals, how to do deals.

Even in a difficult, crazy market like we're in right now, there are still motivated sellers out there. There are still deals to be found out there. And I want to help you find every single one of them that you can. All right.

So on today's video, again, I'm going to be walking through a couple of deals that were submitted to me in advance. Now, just kind of tell you, I'd probably say 90 percent of the deals that get submitted to me to review are not deals yet, but they're so close. Right. And I just every time a student submits a deal to me to look at either to partner with them on or to lend the money on or whatever, I'm so happy and proud of them. I'm like, yes, OK, congratulations, number one, for even taking that step, for making the offer like that is awesome. Congratulations to you guys that are doing the marketing, submitting the offers, making offers and following you, because that's where the deals come from. You're never going to do a deal unless you make an offer and you virtually will never do deals unless you follow up. So when you follow up, it's so much better and easier to follow up with the seller that you've made an offer to in the past. A lot of times sellers, they just need time to cook. They're not ready to take your offer yet. I mean, their expectations are up here. They think the value is up here, but the price is really down here. Sometimes sellers just need some time to cook. They need some time to think about it and realize, oh, crap, I'm not going to be able to sell it for that. Or this house needs way more work than I thought it would be. Need or there's not all of these here. The market is hot, but nobody that's why is this house been sitting on the market now for 30, 60 days? I'm going to have to go in and fix it all up. And I don't want to do that. They're going to remember you because you've sent them an offer and you followed up with them.

So you're doing two things here that most of your competition is not doing. Number one, you're talking to at least five sellers a day. Number two, there's three things here. Number two, you're making an offer to every seller you talk to. And if you go to PartnerWithJoe.net, this software is going to help you make simple offers. OK, so number one, you're talking to five sellers a day. Every single day you're talking to sellers. Right. And number two, you're making an offer to every single seller you talk to. And that's super easy. Don't be intimidated by that. It's really easy. And number three, you're following up with every single seller you make an offer to every 30 days, because that's where the magic happens. That's where the money happens.

Marketing, automation, delegation, rights, number one to get your marketing going out the door. So it's giving you leads every day. You talk to five of those sellers, right. And you have the automation in place where you can make simple offers or your virtual assistants can make these offers for you. And then you have the automation and the delegation in place where the follow up is getting done for you in spite of you. OK, that's my whole goal here with my secrets. And if you want to learn more about that, just go to PartnerWithJoe.net. All right. So let's look at this. I'm try to share my screen here. And if you're with me, some of you guys can some of you are with me right now on Zoom and some of you are watching me live on YouTube and Facebook. So if you can't, as some of you are listening on the podcast. So hello all you podcast listeners as well. I'm going to be showing you guys some things on my screen here. So if you're listening on the podcast, please go to my YouTube channel to watch this video of me doing it later. I'm going to share my screen right now and hopefully this works. All right.

So. When you go to  PartnerWithJoe.net, you're going to first see this page here, this is a way you can do this. This will give you a simple way to calculate some offers. Now, when you get there, here is a when when you opt in a partner with Joe, that it takes you here. And it has a simple video that shows you how to use this. And if you scroll down here, this is a software and this is the light version of the software. So you put your information in, you put the property information in, helps you figure out the value of the property, and then you come up with a it helps you come up with two different cash offers on the property.

We're going to be walking through that here, OK? Now, the first deal that was submitted to me here, this was a deal that was just submitted to me. And the person that submitted it was it seemed to me kind of excited because they got this probably at a really good deal. However, this isn't a really rough area of St. Louis. And if I zoom out and if you're familiar at all with St. Louis, you'll see why here. I want to zoom out. All right. It is North City. This is like one of the worst areas of St. Louis. Really, really rough area. Now, there are some Ridgen. There is some gentrification going on here that happens in pockets. But this is pretty rough. So I'm just going to show you on a map.

First, let's look at a satellite view. And I always like looking at satellite views because it kind of tells you what's in the neighborhood. And if you see a lot of if you're in the inner city and if you see a lot of vacant lots where there's something that's wrong, now, you can see some there's some there's some new construction kind of going on here. If I zoom in, you can see maybe some town homes that were just built. These are new construction townhomes. But look at all. So I'm seeing here a lot of vacant lots, which means there was at one time properties here, but they've just been torn down. The cities are going in and kind of tearing things down. This is a looks like a new development here where they're rebuilding some townhomes. That's good. All right. Let's see where this property is right here. OK, me copy this address. Put it in again here. All right. There it is. It's right there. This property right here. Now, this a good sign. Is there some new construction right up here? And there's some new construction right here. But you still have some industrial area here. This is one of those areas that it's you got to you've got to be careful driving in these neighborhoods.

OK, let's go to the street view. And the street view is taken two years ago. So granted, things might have changed a little bit. But this is what we have here, vacant lot. They're tearing down buildings. Maybe this is right in the middle of part of the demo. Maybe this building has been demoed, too. So this is the building right here. Yes. It needs a full gut rehab. It's a historical building. All right. Let's let's look down the street a little further here. Just looking at the neighborhood. This is what's across the street. This is the building right here. This might be a church. Let's scroll down the street a little bit more. Let's go to this main street. All right. So this.

Yeah, I told the student of this particular deal, I have zero interest in partnering on this deal. But I wanted to show you guys in an area like this and there's the arch St. Louis Arch. It's a funny story. I was just going to the dome. See this dome right there. This is the used to be called the Edward Jones Dome, where the St. Louis Rams used to play football. I was I was following Apple Maps to get to the dome. And just a week ago, to go to I forget what it was. Oh, yeah. The US Olympic gymnastics trials here in St. Louis. And I won't bore you with details, but the map Apple Maps actually took me way out of the way to get there. And I actually drove through this street, through this neighborhood to get there. This was just a week ago. And so I know this area firsthand because I was just there driving through here in a backwards way to get to the stadium. And it was like, oh, my gosh, I don't know if I'm ever going to trust Apple Maps again because Google Maps had me going there a better, more direct route. Apple Maps had me going through this area.

All right. So anyway, let's look at the details on this property. If you go to propstreamJoe.com, this is one of the reasons why I love Prop Stream. You get so much detailed information on this. Again, propstreamJoe.com, they're going to give you detailed property analysis. And you're going to I'm going to show you here. I want to show you what I would offer and I want to show you how I come up with that offer. And one of the main tools I'm going to use is prop stream. PropstreamJoe.com. And I'll show you why. Now, this one, this was sold this property was sold in October. Twenty eighteen. So it's been owned by for two years and seven months by this W-W real estate company, which is based out of St. Louis. So this is a local St. Louis company that bought this property about three years, two and a half years ago. And let's see what they bought it for. They bought it for one hundred and thirty thousand dollars. I'm not sure what I messaged my student to see what he got it under contract for. So I don't know the number yet.

But almost when it comes to these kinds of properties, I don't care what anybody thinks the RV is what the property is worth. All I care about is one thing. What do my buyers that I'm going to wholesale this property, what do they think it's worth? What are they willing to pay? This is such an important concept to understand. What are your end buyers, the company that is going into this neighborhood and buying properties up and refurbishing them, demoing them, rebuilding new townhomes and something like. What do they think the property is worth and what would they be willing to pay for? That's all I care about. And what if I want to? This is why in this area specifically, you have to find your buyers first. Write this one down. That's a writer downer. You've got to find your buyers first. It's so much easier to shop for what buyers want than to sell them what you have. And if you've got a property like this under contract and you're trying to sell them what you have, you're going to have a much harder time. If you're in this area of the student who gave me this deal is from out of town. And so he doesn't know this area as well as I do. And granted, this is the truth.

This is the same thing. No matter where you're doing deals in your own market or virtually in other markets, you've got to know what your buyers want. Can picture you getting making a bowl of spaghetti and walking out into the street and trying to sell people your bowl of spaghetti. You're not going to get many people that want to buy it. But imagine instead getting a pad and paper out and saying, hey, just took a new job with Uberereats and I'm going to go, do you want something to eat? I'll go get it for you, OK? And you take their order and then you go get the how much easier would it be to sell food by taking people's orders and then go getting what they want or making it and then trying to sell them what you have. So it's much easier to sell people what they want than what you have. Write that down.

So in this case, who are the buyers that are buying these things? All right. And I'm going to show you how to find them and what would they be willing to pay for this property. Now, this may be a good area. This is a great I mean, this is a good high traffic street. People are taking the street to go to the Edward Jones or the dome right there. That much goes on there. Any more, by the way? It's kind of sad. They might be taking this road to get to the arch or there's a big casino right there. So here's some pictures. This is obviously a piece of work. Could this be a town home? Could it be a my my student just responded to my Facebook message about this. I'm going to message him right now. What did you get this under contract for? All right.

Well, I don't know if he is on this webinar with me right now, but you can see there was some brick on this, but the brick fell off. Not sure what's going on there. Maybe they were trying to add the addition on and they didn't finish it. Here's some interior photos. This is a historic building. It's really cool. Be cool to know what this was originally. Maybe they were trying. It looks like they were trying to do some rehab at one time, but whoever started the rehab didn't finish it. I would imagine somebody that's going to get into this thing and fix it, finish it up, would be somebody that would turn it into like an apartment, like a small apartment or something like that. There's a lot of potential here. Yes. But it's still in an area that's rough. It's hard to find the contractors that are going to be willing to put in the work to do there to do any work there.

Why? It's hard to find a contractor that would a contractor comes with lots of tools. And are you going to have it's hard to find a contractor that's willing to bring their tools there and keep them there overnight and not want to go through the hassle of leaving with all their tools every day. Right. So anyway, this was somebody asking why was there no on it? This was a property. They bought it for two and a half years ago for one hundred and thirty thousand dollars. They bought it a year and a half ago, two and a half years ago for one hundred thirty thousand dollars. OK, so this student got an under contract for one eighty five. Just message. He got an under contract for one eighty five. So whoever bought this is trying to sell it themselves. And my my guess is they thought they could fix this thing up and sell it. Maybe they put some work into it. I don't know. And they thought they got a good deal out of it. But then they realize this is this area isn't turning around as quickly. I don't know. So they're trying to make a little profit on it and sell it. And so my student got it under contract for one eighty five. He wants to hold it. All right.

So I don't know. I think this is a tough deal. One of the things you can do here is you can look at this company. What else are they buying? Right. And if you click on their address here or click on Linked Properties, this is this is a company that owns sixty four properties. They have open loans, about four point three million. The total value estimated is about eleven point four million. So this is a serious player. Maybe that's buying a lot of properties so you can see all the different properties they're buying in here. If you have the time, you could go in to see what's going on here. And it could be that this is a company that bought a lot of homes in a certain area in hopes of and I'm looking at the addresses here, I might even know who this person is. It looks like they're buying a lot of homes in certain areas in the hopes of getting a bunch of properties that they can tear everything down and rebuild a brand new development or big, huge commercial property in this area. And I don't have the time right now. But looking at all of these addresses, a lot of these are in the same area and it's telling me that maybe that's that's what they're trying to do here. And there's a couple of big companies in St. Louis that are doing that. They're buying up tons of dilapidated properties in the hopes of getting enough in an area they can tear everything down, get a big commercial business in there. Redevelop it and turn it into a big commercial area, for whatever reason, they don't like this property anymore. They're trying to sell it and get rid of it because maybe it's outside of the area. I don't know. All right.

So one of the things that you can do is I want to know who are the buyers that are actually buying properties right now in this zip code six three one six. So one of the things that you can do is you can go to Redfin. I like Redfin for this reason. I'll show you in a minute. And let's just put in that zip code right there, six three, one six. And you can see it's right in this area here. And our property that we're looking at is right there. This is a tough area. All right. Let's just I'll show you what is actually for sale right now in this area. You've got this place for 19. Let me sort this by price. They're selling this for nineteen thousand. This is a vacant lot. Maybe it's been on the market for three hundred fifty three days for sixty thousand. Another vacant lot for 60 grand. So they're trying to sell vacant lots for sixty. One of the things I think about is in areas like this, they're trying to sell these vacant lots for 60 and they're not selling. Maybe a vacant lot would sell for 30 grand. So I would offer when it comes to infill lots and I my offers are so ridiculously cheap, I would probably offer a thousand dollars for any for an awful lot here, a thousand bucks. And then you might even be asked. You've got to be careful because once you own these things, the city will be on you like white on rice and to to to cut the grass, to keep the riff raff away. You'll start getting fines and penalties. If you're not taking care of the vacant lot, you have to fence it off. If there's vandals coming around there, you're the one responsible. You just got to be super careful about some of these are like units. Like condo units. Right. All right.

So there's not much for sale right now. Now, let's go here to and it's not because it's super competitive. It's just it's just not a good area. Let's look here. Let's turn for sale off and sold on in the last year. Let's see what is sold inside that area. Apply filters again, not much, but I want to show you something here. This thing right here sold for seven grand. Right. Let's click on View Details. All right. Beautiful property. Somebody bought it for seven grand two months ago. Look at this. I like this. I can you see this here. I'm a zoom in listed by Alexia Alexia Anderson from West Realty and bought with Edgar Reya, Berkshire Hathaway Select. So who do you think I should call? I'm going to call both of them, but this is what I'm suggesting you do. Like, let's Google Ed and Edgar Reya. All right. There he is right there. Well, you know what? There's this phone number right there, right in Google. He is in Saint Louis, Missouri. That's maybe his office or something like that. Berkshire Hathaway office. Call him and you call that number or you can look at his page here. Young, ambitious guy. Younger guy. Right. Who's hungry usually.

How do I say this delicately? Like usually, though, the people that are doing a lot of deals in these worst areas are one of the more they're more of the hustlers, the guys that are out there working hard, trying to make it happen, it's kind of like they're normally the beginning realtors, the ones that are just new in the business and the more hungry ones, I guess it's a good way. But here's his mobile number. All right. I would call this guy up and just say, hey, Edgar, I saw that you sold a property recently on let me zoom out here on North Florissant and you sold it for seven. I'm wondering, I got another property maybe under contract, not too far away. I was wondering if your client might be looking for more deals like that. Would your client be looking for something? And you just want to tell them, I got this property I'm thinking about? Depends on how you want to do this. You tell me the address. I'm either thinking about buying it and closing on it or maybe just selling it. I want to know if your client might be interested in it. I'll let you represent me and you can get both sides of the commission. Whatever you're talking to your realtor, you're always talking about getting both sides of the commission so you can get the listing, you get the buyer's agent commission and the seller's agent commissions. But I just need to know, what would your buyer be interested in buying this property for? You want to find out from that agent and maybe even get because once the agent understands, be honest with them, right? Once they understand what you're doing and they have some they have some interest in the deal because they can start making they can make some money. They have they have a client who's already buying things. They're looking for more. They're going to be honest with you and tell you, OK, well, you know what? I know that area. That property. Yeah. It's a big if somebody was asking about the address. Why is there multiple numbers? There's it's like a multifamily. So there's different addresses for that one building.

Anyway, they're going to tell you. Yeah, you know what? That's right. In that it's on the right side of the street is on the wrong side of the street. There's a developer I know that's looking to buy some more properties up in there. I just want to know from this realtors. I'm talking to them. What would you what do you think I could sell it for? OK, do you have any buyers that are interested in this? What would they pay then? When you find out what that buyer would pay, you go back to the seller and offer ten grand less. It's as simple as that. So now I'm going back here, call this guy up. I have his cell phone number right there. Tell him what you're doing. OK, this is just Redfin. All right.

Let's go to another property. This one. This is a maybe a. Vacant lot that's sold, you can kind of see see where it's red. So these are some vacant lots, right? If you click on one of them, got a few details. If it was an MLS property, you can go down here and see. Here we go. It was listed by Loren and sold with tequila. That's a cool name. A look at another Berkshire Hathaway select. How would you like to be called tequila? Tequila. I don't like tequila. I'm just saying. All right, that does not look like a phone number, so just do different. Here we go. This is from the STLrealtors.com. This is a local real estate commission. You can pull up realtors here. And what was your name? Tequila. Anyway, she's on here somewhere. Just find her or contact the office. The other thing is you want you might want to contact the listing agent as well, Lauren Haskins, and just ask her, hey, do you have any other clients that were maybe interested in buying that one property that might be looking for something else? Because even though it's a tear down, you could easily maybe tear this property down. Same thing with this one here. You see these properties were on the market for a long time. It takes a special buyer that wants to buy these things. This. Yeah, there you go, David McCollum. So just in this little search I've done, I found three different realtors, three different listing agents, three different buyers, agents that you can call telling you guys, this is this is go call these realtors up. And again, when you talk to them, you tell them what's in it for them. You don't want to you always approach realtors and other investors and people that you're partnering with them because it's like, how can I make you more money? How can I bring you more money? All right.

Don't just call them to pick their brain. You want to tell them, listen, I got a deal here. I think maybe I can I can help you make some extra money here. I see you just sold a property recently. Just listed a property recently. I got another deal here. Maybe your client or, you know, somebody that might be interested and I'd be willing to pay you big fat commission check. OK, all right. Good stuff here. Right. Good stuff here. Now that I would call the soles and I would call the act, I want to show you one other thing here to remember. We're going to go here to Prop Stream, Joe. All right. I want to do a search for you know what? I'm gonna do a couple of things here in property right here. You can go to comp's and there's not going to be many here because of the neighborhood. But let's let's go out to Miles. There's only two because of the square footage being here. So we need to make the square footage better. So in the last year in a mile radius, that's too many. That's two point five miles. Let's do point seventy five miles. Ah, there we go. We've got twelve cops here. OK, if we look out within a half, within three quarters of the mile, these are all of the properties that have sold from the MLS in the last year. You can look at public records or MLS sometimes I like to look at the two and see if there's a difference. Sometimes there's a lot more. But based on if your state is a non disclosure state, you can see who or what sold these things. So here's sixty. Let's just do both. All right.

So we've got seventy four properties here. You can highlight all of them. All right. And add them and you can export them into it from a spreadsheet. You can export them into a spreadsheet and see who the agent was and see who the buyer was. And you can then contact them. You can skip trace them. Right. Here's a property here. Let's look at this one. This is a property nearby that sold from Prop Stream. And the cool thing that I just showed you how to do it in Redfin. But the cool thing with Prop Stream is perhaps was going to give you a lot more information on who the buyer was and who the agent was when this thing was sold. So I can see four months ago, this investor bought this property right here, GMC Jaguar Investments, and this was the mailing address. And if I scroll down, get more information, they bought this thing for fifty seven hundred dollars. All right. I don't care if it's a different property or I just I want to know who are these buyer. And I can Google that name. If I want to see what comes up, I can go to cash sale. I can see they bought it for fifty seven hundred. So this guy is buying properties for fifty seven hundred. What. Maybe I should offer five hundred dollars. I've had sellers accept my offers for five hundred dollars before and I still wasn't able to sell. I had I've told a seller sometimes. What would you pay me to buy your house. What would you pay me to buy your house. And they've said, well I don't know. What do you mean I've never known one's ever told me ask me that question before. It was like I had one deal one time. I could not give it away. I literally it was in such a bad area, in such up shape, I couldn't pay somebody to buy it. So you just go ahead and make an offer. Ridiculous. Five hundred bucks with a 90 day contingency on there and you can find out within 90 days whether you can find a buyer or not. All right.

So in this one two, you can go see who the listing agent was many times of these sold properties right here under agent information. You can see who the listing agent was or the buyer's agent right here from Prop Stream. All right. So I want to show you something else, too. If we go to six three one two six in Prop Stream, I may need to search outside of this area. Six three, one, two, six. There are thirty eight hundred properties in that zip code right there. And by the way, I see this whole area right here that's been that's brown. This might be an area trying to look at this here. I'm not sure how long ago the satellite picture was taken, but it says it was taken in twenty, twenty one. This might be right in that area where they're they've bought a bunch of properties and turn them all down and they're building a big commercial thing. And I know the in this area, too, like one of the national geospatial technology government agencies is building a big headquarters right here. So this may be part of it. And this may be, again, why these some of these investors are buying this. My properties right here at the property we're looking at is right here, OK? And this is a is a huge geo space. It's like a big giant government agency is building a headquarters here. I think this is it.

So there's a lot of investors thinking, oh, man, we should buy these other properties up in this area because maybe somebody else will develop it anyway. It doesn't matter what I think the property's worth. I want to know what other investors are buying properties for here. So I could go here in the filter. I could say owner occupied, no ownership in if I want to find somebody that's bought a property in the last year. Here we go. There's seventy one properties that have been sold in the last year in that zip code. I can download this list, I can skip trace some, I can get their letters, their addresses, I can send them letters, I can call them and find out from them. Hey, are you looking for more deals here? OK, there's another cool thing here that I like from the quick list. Choice is called flippers. And here we go. What this does and there's only two of them because this is a tough area. But what this does is in that zip code, it pulls up all of the properties that have been purchased recently by an investor and then been relisted on the MLS. And a lot of these are either new construction or rehab properties. This may not be a good example. This looks like a new construction is just an artist rendering. No, it's real. All right.

Well, here is a real property that somebody bought in that zip code and rebuilt a new home. All right. You can go here to MLS details. The owner was St. Louis, Kansas City City, Carpenters' Regional. I don't know what this is. Maybe it's a some government agency bought this thing and built it. But here you can scroll down. It looks like it's maybe it's under it's pending now. It is on the market. Three hundred forty three days. You can see who the listing agent is. Sandra de Gaine. OK, there's her office phone number. So call Sandra do and ask her if her client is looking for more properties to rehab. OK, so this Flipper's thing is really cool because it's right here. And a quick list choices. You can find the people that have bought recently rehabbed it and relisted it. That's who the flippers are. So you want to find out who's a listing agent of those of those rehabbers? Ah, call them. Call the owners that fixed that flipped it. Those are really, in fact, one of my favorite markets. Areas in St. Louis right now is bowling ball in Missouri. It's a big area. Hard to find deals there if I go here to filter Flipper's. OK, so we already have that. Let me just reset it one more time. Let we go to Flipper's again, perhaps dream Joe Dotcom is where you can get this. Here are 12 properties that have been flipped. I click on one of them. They've been purchased by an investor. Maybe this is a vacant lot. All right. So there maybe they did some developing. They did. They did. I don't know, some underground work on that.

Here's a better example. Here's a property that has been owned by it for a year. It took them a year to rehab it and they did a beautiful job. They finally finished rehabbing it. You think they're looking for some good deals? Maybe they lived in it for a little bit. This looks like they've actually lived in it. Maybe it was an Airbnb, but it was an absentee owner who owned it. You see the mailing address? Here's the mailing address. The property address are different. All right. So anyway, you get my point. What I'm saying, let me just summarize this all up. Find out who else is buying properties in that neighborhood and then contact them, contact the realtors if they tell you because the student got an under contract for one eighty five one hundred eighty five thousand dollars, if they tell you, yeah, my client would be willing to pay two hundred for it. Well, there you got a deal. If they say my client would be willing to pay maybe one fifty for it. All right.

You've got to go back to the seller and renegotiate the price at maybe one twenty five. Then you can you might need a double closed because it's I don't know if there's realtors involved, but these deals are typically cash deals, much easier to work on, cool beans. Any questions on that deal before we move on? Victor's got a good question here on that property. What about looking at the land across the street and its value? So, yeah, you could like well, I kind of did that already. Looking at Prop Stream, who were that I looked at who bought anything vacant land and properties and buildings. Do you want to find who are the the investors who bought the vacant land, whether it's a vacant lot or building? You want to contact all of the all of those people that bought. And sometimes these are tear downs. Right? So it's not worth anything more than what the land is. Larry Jones, I learned this from Larry Goerens a long time ago. When he's doing small town deals, there's a lot of tear down. And so or a lot of properties have vacant lots next to them that he's buying. He always offers nothing more than five hundred dollars for a vacant lot and he'll consistently sell them for five thousand dollars. OK, so it's just you can make a quick forty five hundred dollars making five hundred dollar offers on vacant lots. In fact, I know there's a lot of this is crazy. Look at this. We're we're going to six to be one two six six three one. Six, I know people that go into these zip codes. Let me reset this filter. There's thirty eight hundred properties here in the zip code. They go here to vacant land. There are sixteen hundred vacant lots. I don't know why that one's coming up here, but there's about sixteen hundred vacant lots in that zip code. They'll download all sixteen hundred of them and just send offers to all the owners for five hundred dollars. I'll buy your vacant lot for five hundred dollars. You might get one out of every five hundred letters accepted offers accepted. So you get two or three deals out of this. You buy for five hundred bucks or. Better yet, because especially in this area, what I would do is I would have a 90 day contingency period for due diligence. 90 days. You get 90 days to close. Then I would put that property sign out there, put it on Facebook marketplace, maybe listed on the MLS with a flat fee broker or something like that for five grand or maybe three grand. And you can also sell these vacant lots on terms. I know guys that do this a lot, especially in smaller towns, maybe not in the inner city, but in smaller towns. You find these people who own little quarter acre lots. You make them an offer at a for one hundred bucks, five hundred bucks. And you turn around and you sell it for five thousand dollars on terms for maybe one hundred bucks a month. And they they just those are little cash cows that come in. And you only only what do you have to lose. You have one hundred bucks, you have to pay some property taxes, but you can sell them on owner financing and get payments. And a lot of times the neighbors of these vacant lots will buy them just for just so that they can have that vacant lot. Nobody else will build on it or whatever. But it's such a steal, you can sell them really easily. I just gave you guys a million dollar idea right there. Find maybe a better zip code than this. Get all the vacant lots. Doesn't matter if it's a quarter acre lot, quarter of a quarter acre, one eighth of an acre lot. I don't know. Mail offers that one hundred dollars just make some stupid offers. You're going to get one out of one hundred one out of five hundred offers accepted. Give yourself a 90 day contingency to resell it to do your due diligence and sell it on owner finance. Get fifty one hundred bucks two hundred bucks a month. You'd be shocked. There's a lot of people that are doing that in small towns. It's pretty crazy.

Let's just look at this one. For example, this is a vacant lot next to some building. Let's see if I can look at it on a map. All right. Let me just pull this property up and Google Maps. Let's look at satellite. Oh, look at this. It's right next to this thing. Yeah, National Geospatial. It's a new government building. All right, look at that. It's a vacant lot right there. I look at Street View. This is a boarded up building. There's a vacant lot right there. Who knows, for one hundred bucks, maybe sell it to whoever owns this property. But I'm not going to close on it until I find a buyer for it. I might be able to find somebody that would pay fifty bucks a month for it. Maybe somebody buys this one and they just want to own this one next to it. Again, this is a rough area. I mean, this buying infill, lots of in the hood may not be a good strategy, but it's like right next to this area that they are. See, there's some new construction there. OK, all right.

Real quick, somebody else submitted a deal to me. I just want to talk about this one here. This is a house in Panama City, Florida, and it's a for sale by owner and they are listing it for two hundred forty one thousand dollars. But it's been on the market for four hundred and twenty eight days now. People ask all the time, well, the market, there are no deals out there. The market is white hot. Well, if it is, all you need to do is to sign in the yard and you get multiple offers above asking price. Why are there still properties like this that have been on the market for about four months that haven't sold yet? They're asking too much. They're asking too much. So I had a student who, bless her heart, just taking massive action, maybe didn't go through all of the modules, but just started making offers like she's supposed to do. Right. Well, what she did is she would go in and find the RV of these houses and make offers at 90 percent of Airbnb. And so she figured the RV of this house was, I don't know, maybe two forty, multiply that by 90 percent and made a cash offer on this property for two twenty five. Now, let me ask you a question. Is that a good deal? It's listed right now as a fizbo for two forty two. She made an offer for two twenty five. Is that a good deal? If you can watch if you're watching me now on YouTube or Facebook, is that a good deal? I'm looking at my YouTube comments to see if I've seen you here. I don't see any comments. All right.

I'm seeing the zoom chat comments here. No, no, no, no. Too high retail. No, no. Only the market is up. No spread. It's a little tight. What does she want to do with it? She wants to wholesaler. If you're watching me now on YouTube and I know you are because I can see you type something in the comments, please let me know. All right. So, no, it's not a good deal. Right. Because here's the thing. If you offered two twenty five and she wants to wholesale, what is she going to have to sell it for. Thank you, Scott. Scott, I can't pronounce your last name on YouTube. How are you doing Scott. Thanks for commenting. All right. She buys the four to twenty five. She's got to sell it for two thirty five. Right. You think she's going to be able to sell a deal that's only six grand, six or seven grand less than what is currently listed for? No, no, she's not. Now, what should she offer on this deal? I'm looking at this. It doesn't need much work. The cabinets are out. Kitchen, though, is in great shape. This is definitely rent ready. This is probably a retail buyer, right? This is a retail market. There are some buyers out there that would be willing to buy this thing. It's just overpriced right now. And the seller probably not very motivated. Right. But probably not super motivated because they don't want to list it with a with an agent.

Now, let's just look at this property up aat propstreamJoe.com. This is why I love prop stream Joe, because you can look up these deals anywhere in the country. I'm in St. Louis and here I am looking up this property in Panama City, Florida, which is a great market. And look at details here. The seller has owned the house for 19 years, almost 20 years, and they have estimated equity here. They have a lot of equity in this house. They just think it's worth more than it is. They think they it's a hot market. They're reading the news. They're seeing all these other neighbor houses selling fast. They should be able to sell them as fast as well. So you can see here mortgage and transaction history. They have a mortgage from two thousand one of sixty seven thousand dollars. They're estimating the loan balance today to be about thirty eight. So this last sold in two thousand one. OK, so there's a lot of equity in this deal, which means what the seller might be willing to. Here's the thing. I might go to the seller and say I could get you to twenty five because this is what I told the student. You're going to need to go back to the seller, need to cancel this contract or renegotiate a lower price or tell the seller. I might be able to get you to twenty five if you'd be willing to maybe let it let me rent it from you for a couple of years first. Or maybe we could do some kind of financing or I can just take over your mortgage payments or this is even better.

You could say Mr. Seller I can't pay you cash for two twenty five. She's not going to work. But what if I could get you the same equity you would get if you sold with a realtor? Would that be fair? What does that mean? If I could get you the same equity you would get if you sold with the realtor. Just looking at rough numbers here. Let me get my calculator out here. So if they were to fix this up and sell it on the MLS, they could probably sell it for to thirty five to thirty five after commissions, carrying costs, closing costs, all the various costs associated with selling, they're usually in a normal market are going to walk away with like maybe they're going to pay about 15 percent. The normal hot market like this, they're going to pay about 10 percent. So if we listen four to thirty five, they're only going to probably walk away with 90 percent of that times point nine. So they're going to walk away with about two hundred and eleven thousand dollars.

And let's say they owe if we looked at perhaps here, I think what was a number here. Where's my. There it is. They owe mortgage history. They owe about forty thousand, let's say. OK, so they're going to listen for two thirty five. They're going to walk away with two ten. I'm going to multiply that times. I'm going to subtract two ten. Forty thousand. So they're true. Net equity's about one hundred and seventy thousand dollars. All right. What if I told them I can get you the same equity you would get if you sold with the realtor if you just wait a little bit for OK, so what you do then is you would buy the house, make an offer to take over the existing loan and their estimated payment is about four fifty. You say, all right, I'm going to give you your one hundred and seventy thousand dollars in equity in five years if you're willing to wait for it. If they say no, I want some of it now. They want twenty five grand. Now you can say, all right, well, instead of giving you one hundred and seventy grand for equity, I'll give you one hundred and fifty grand for your equity and twenty I'll give you twenty five now.

And so let me rephrase this. I'll give you I'm going to lower the amount of equity I'm giving them for the the more money I put down upfront front. So I say, all right, I'll give you one hundred and fifty if you want money now I'll give you one hundred and fifty grand of your equity and this is how it'll work out. I'll give you twenty five grand now and the other one hundred and twenty five grand in five years. You interest what I'm saying there. So you could give the seller some options and this is what you take over the existing mortgage. This might even be a deal because that mortgage is so low. If they want to just pay it off, you could bring a private investor, pay that private use that private investors money to pay off the existing loan. You want to make sure that the cash flow numbers work.

So there's a lot of different creative ways you can do this. But I just wanted to show you a couple of things. Your number one, how you can what kind of cash offer would you make on this? And then maybe what are some of the other creative things that you could do with this? So on this, if you go to PartnerWithJoe.net, you're going to be taken here and you can get my free offer calculator. When you get there, you're going to get this and you're going to put in some information here, your company name. This is a software that's going to help you make a make some quick cash offers.

OK, your company name, Joe Homebuyers. They'll see your name, Joe Buyer, your business phone number eight hundred that are the fax number that a lot. And then your business address. I got one there. All right. Website if you have one ESPN next we want to put the seller's name and you can get that from prop stream. Joe Sellers name was John in Charlotte. No, kiddo. And you can put the I'm not going to put the property address in here. You can do that. OK, I pick the state Alabama to zip and put their mailing address city, state, zip next. And why are we doing that? Because it's going to fill out some. A proposal, Zillo Zest, but now we need to figure out the the value of this property and the way I figure out the RV, the repair value is I just use the numbers I get from Zillow, prop stream Redfin, things like that. So the estimate is to 14, five hundred to fourteen five hundred prop stream, perhaps. Shinjo said it's worth right there. One ninety eight seven nine seven one ninety eight seven nine seven. All right, let's go.

What about Redfin? Let me copy this address one more time. Let's go to Redfin so it's not in Panama City. All right. So Redfin doesn't have a no. What about realtor.com? Redfin is not in every market. Realtor.com gives it a value. Sometimes it does. Sometimes it does, and sometimes it makes it hard to find. So they're estimating a value of two hundred and one thousand. There's another way you can do this. I'm going to put that in here now before I forget to go to realtor.com. I get Redfin and realtor dot com mixed up all the time right here. If you see see more valuations, this is a some this is thing where it it's tracks your home. And so if this isn't your home, you need to like do a new address here. But what I'm gonna do is I'm gonna go all the way over here to the right and you can see them and get it right there. You see over there on the left. Let me see if I can zoom in. They're going to give you collateral analytics estimates to 08 CoreLogic to a one a.m. one eighty nine. All right.

Just depends on where you put this here. Let's just say collateral is to wait. You can just type that in. I don't know how to spell collateral. All right. So we average those. And if you can get more, you can from the MLS or appraisal appraisals working, sometimes you can see the average. It's about that. That's what I'm going to go with the averages to find. That's the RV I want to use. Click next. Now what it does. You're in the cash and this is a free version. You guys can get a Propstreamjoe.com, it gives you two different methods for cash offers. Method number one is the RV times a certain percent minus repairs, minus your fee. This is your typical MAO formula. It's been around for a thousand years and it works RV after time. Seventy percent minus repairs might just be now you may not want because it's a hot market. It's Florida. Do eighty percent square footage on this property. I think we said it's nineteen eighty to nineteen eighty to this. We use this to estimate repairs. Repairs. You can if it's zero, if it doesn't need any work I do. Ziller zero. If the seller says it doesn't need any repairs on five, you can choose different amounts here. I'm not going to say zero because looking at the the Zillow pictures, it's ready to go now. If you wanted to rehab it, you might want to change, update the countertops, maybe put carpet on the floors. So if you wanted to maybe do five bucks a square foot, so ten grand wholesale for you, you always want to make at least ten grand wholesale these deals. OK, so here we go.

Method one cash offer. It's going to be one forty four ninety. But there's another method I like to use for finding cash offer, and that's the average of the lowest sold times, a certain percentage. How do you find that number? Well, I like to use props from Joe again. So let's go back into Prop Stream. Do I have the property right here? Yeah, here it is. So if I click on comps, this is cool because it looks at the last year within 15 or 20 percent of the square footage within a half mile. And we have forty one comps here. This is good. I'm assort this by amount now. You can look here, some of these. Wow. What's going on here. Twenty five. Twenty five. Thirty, forty, fifty, seventy eight. I don't know, maybe we could do a shorter distance point to five, sort it by amount. So sometimes there's some of this is vacant land. You see that. So I'm going to change this to property type.

Let's make it single family. There we go. These just single families sort of by amount. All right. Now, what I like to do sometimes is I sometimes throw out the really, really low outliers. So I'm just going to take one hundred one hundred twenty five, one hundred and fifty hundred and fifty five as my four lowest. I'm going to average them. So I do here. I'm going to do one hundred thousand two hundred twenty five. And what was the next one. One fifty one fifty five. That's going to give me an average of one thirty two. And here you can do now at discount. Usually it's eighty percent. But this is like if the House needs a lot of rehab that's when you do about eighty percent of it doesn't need any rehab, I mean maybe higher, 90 percent. And you can always this is just an estimated calculation. This is just the offer that's going to get your foot in the door. So now I have two different cash offers. One forty four and one nineteen.

Now what do you want to use? Well, I don't know. Let's look to see real quickly what are other similar properties listed for in this area. So if I, if I make an offer for one forty four I'm going to add ten grand, I'm going to sell it for one fifty four. If I ever one nineteen I'm going to sell it for one twenty nine. So what is my competition look like. The do that. I'm just going to go here to Redfin and that I did a search for that house. In fact let me, let me do a search one more time. I'll show you what I'm talking about because this is important. I understand. I'm going to go to Zillow right here. I'm going to paste in the address. I'm a search for that house. Here it is. Brings it up. Now, when I x out of here, that house is going to be right in the center of that map. And I'm going to click remove boundary. And I want to see all the other houses that are currently for sale right now. I must take this and sort it by Loda. Hi, here's my competition. There's a new construction for one fifty. This one. For sale for one eighty five, and I don't care too much about the square footage on this, I mean, maybe this one is mine.

This just shows you like, oh, my gosh, these this thing here is listed for one ninety nine. Like, if I'm going to sell my property for it, she's trying to sell it. I forget what it was, two fifty or whatever. But look at these houses that your competitors, your buyers are looking at. You could go in here and filter by beds etc.. The only give me three plus bedrooms you could say only show me the houses that are bigger than fifteen hundred square feet. Here you go. There's some fizbo here as well. Why would they want to buy your house for two fifty when they can buy this one? It's a pre foreclosure, four to 40. This one for two 40. That's the one we're looking at. All right.

So I'm looking at this thinking, all right, if I offer one forty four, can I sell it for one fifty four? I don't know. Look, I can buy this one for one fifty maybe. Yeah, I feel good about that. Right. Look at other listings. These are fizbo. All right. So I feel good about that. I'm going to go with a higher number. I'm going to offer one forty four and I'll put down a thousand dollar earnest money. I'm going to give a deadline of Friday. OK, you click submit and this free software is going to give you an offer right here. If I click this, it's a PDF and this is what I can send to the seller. This is what's really cool. It's got the seller's name and address up there. The sheet of paper is worth one. Forty four of them is in this and a little bit OK. And this is what I'm going to send to them in the mail, in an email and in the mail. My website, ESPN page two is my one page contract. Page three is this. Here are the benefits you'll experience when you sell your house to us. Everyone else read the fine print. Who knows if they're going to close. Be careful, watch out. And then if you sell your property, there's two ways to determine the price. Prepare the home, advertise, wait for an offer, wait for an offer, advertise, wait for an offer, show the property, wait for an offer, negotiate a sales price, make the repairs, prepare all the contracts, coordinate and follow up, or sell your house to us. Get a check at close. OK, so real quick, you can now take this if you're using freedom stuff. Joe, my signature edition, you can save this PDF to your computer, put it into freedom soft, send it in the physical mail to the seller, email it to the seller, text it to the seller. Now then you set up a task to follow up with that seller in thirty days chances of them accepting this. Let's be honest, one forty four is slim to none because right now they're asking to fifty four to whatever. Right. But I don't care. I'm going to send them an offer anyway. Now this offer for one forty four is definitely better than the offer for two twenty five. If you're going to wholesale now you might again be able to offer the seller to twenty five as a wholesale deal. I'm sorry. You may be able to offer the seller to twenty five if you can get it as a lease option or an owner finance. Now when you go into my course partner with Joe you're going to get access to hang on here. I got to open it up. I should have had this open before we started. You're going to get access with Partner and Joe into my main software for offers, and I'm not going to have time here. Maybe I can find you here. Hold on. Come on, baby. Here we go. Let me go here. OK, when you become a partner with Joe Member, you have my main software right here and this thing will help you come up with the lease option offer and owner financing offers. You come up with two different lease option offers and two different owner financing offers, which is super awesome. And then what it does is it gives you a proposal so you can give them what I like to do, especially in this situation. I'd like to give the sellers options. I Sarah, I can pay one forty for cash or I can get you two hundred as a sandwich lease option. I get you to twenty five with owner financing principle only payments or whatever and it gives you then an attachment to this would explains what a lease option is, explains what owner financing is and explains it. What are the benefits for you. OK, let me look here in the zoom chat to see if there's any questions or comments. Peter says here I'm new to the owner, financing lease options strategies. I wanted to know if both are legal in Texas. I'm excited about the partnership with Cool Peter. So in Texas, you can't do sandwich lease options, but you can do lease option I'm sorry, lease option assignment. So you can assign or wholesale lease options in Texas. You can't do sandwich lease options, but you and you can also do owner financing land contract subject to all day in Texas for sure. Those are great deals are my letters and contracts and forms reviewed and compliant in all 50 states. Regina, I can't answer that because I don't know. And it depends on who you ask.

In all 50 states, I have students in all 50 states that have done deals using my contract. But I always recommend you find somebody who can review your contracts with you, use mine or anybody's. Even if you're using standard realtor contracts, you should get an attorney to review your contracts for. Yes, you can't do sandwich lease options in Texas. You can only do them for six months in Texas. But that's all right. Just do a land contract or a contract for deed. It's just different paperwork. You call it something different. I teach you how to use those different strategies in my simple lease options course in Texas, you can do lease option assignments all day in Texas. OK, cool. Now I know I'm way over my time. One of my students who's on here asked me to review a deal in Huntsville, Texas. Let's just look at that real quick here. I'm going to look it up on Zillow. Seven Sycamore Lane seven seven three two zero. This is a property that is pending right now for one twenty five. The students said the RV is two ninety four. First thing that I look at this thing. Well, maybe not. The estimate says one 19. How did you get the RV to be two hundred ninety four thousand? And this is similar to the other deal that was submitted. Yeah, this needs work. It needs updating. But if you're going to wholesale this deal, you get under contract for one twenty five, you're gonna have to sell it for one thirty five. Do you see the problem if you get this under control, one twenty five whose band was on the market for thirty three days, you're not going to be able to sell it for four one thirty five if they couldn't sell it for one twenty five in 30 days. So he just look at this and think all right, well all right, if I'm going to sell this thing to a wholesaler, I'm going to need to sell it for one hundred maybe. So I need to offer 90.

This is where you would I would look at this property up and propstreamJoe.com, I'm going to look at comps here. I want to go to details. They say the value here is about one seventy. So you got something happened with the RV? I don't know what's going on. Maybe there's multiple properties on there or something. But that property just looking here, they're they're estimating one seventy. What they've there's no length of ownership there. But I'd look at comps here sick of both MLS and public record now because sometimes it's public record as non-disclosure. You're going to see some estimates, estimates, maybe we need to go out further. Let's do one mile. All right.

So I'm looking here just not spending too much time looking at this, but I see one, two five one thirty two, one fifty four, maybe one seventy five, one eighty. So I would take if I was going to make an offer, I need to be somewhere down here. I'm going to again they're trying to sell it for one twenty five. I need if I want to wholesale it. What do you think about what your buyer's going to look at. Your buyer's going to look at this and say, wait a minute, you want to but you want me to buy it for one thirty five and it was just listed for one twenty five. I'm out. But if you can advertise it for one hundred and your buyer looks at this and says, oh wow, it was listed on Zillow for one twenty five, I can buy it for one hundred, I might be interested so you got to look at it. What would, how can I make this deal attractive to an end buyer. There's two ways you can do that. Make sure you're advertising it less significantly less less than what they've last advertised it for. Or number two, you can offer it with terms. So if you were to give this seller, you can say, listen, I'll buy it from you for our for one fifteen with principle only payments of five hundred dollars a month, then you can turn around and sell it. You can just sell your contract maybe for ten grand. You see what I'm saying. So get it on terms. I would make this seller, I would make a cash offer for seventy five is what I would do. I make a cash offer for seventy five and I'd make them an owner financing offer for one twenty five with principal only payments of five hundred dollars a month. Until then I would turn around and I would sell that deal. I would just sell the contract to another investor in the area. How would I find those investors stream just what I showed you before so I would sell my contract for ten grand. All right.

So wow, I went way longer than I had hoped, but I hope this was helpful for you guys. What are some of the big those of you that are watching me right now on YouTube and Zoom, what were some of your big takeaways?

OK, Arthur is asking a good question here. How do I get this? How do I get out of this contract? The sooner the better. And this is normal, guys. First of all, I said this at the very beginning. Those of you guys, you're making offers, you're going to make mistakes. But that's OK. It's OK to make mistakes. OK? Don't beat yourself up for making bad off. Pat yourself on the back. You're doing, what, five percent, only five percent of investors do like it said I. I've sold thousands of courses, OK? Only five percent ever take any action on this stuff. You're one of those action takers. So congratulations, no one for even making offers. It's OK. I'm glad you made a bad offer. It's better than not making any offer. So get get congratulations for making offers. No. One. All right.

Number two, you got to fix this as soon as possible. So you've got to go back to the seller and say, listen, I always blame it on the numbers. I blame it on the numbers. I blame it on one of three hours, the resale value, the repairs on the rental value. You can just say, listen, I reviewed this with my financial partner. I reviewed this with my lender, my partner, my mentor, and I reviewed this. And the numbers aren't going to work. The RV, the repair, the retail value is not as high as I thought it was. The repairs. I underestimated the repairs and needs more repairs. And I thought I did. And the rent, it doesn't rent for as high as I thought it was. You got to blame it on the numbers, put it in writing. Just send them a letter and cancel the contract. As long as you're within. The contingency is not a problem, not a problem at all. But if you're past that inspection contingency, you might have a little problem on your hands, but the sooner the better.

This is why it's so important. As soon as you get that property under contract, you need to start calling other wholesalers and other buyers and other investors in that neighborhood who have bought properties recently or were actively doing deals and find out from them, hey, I think I got a deal you want to partner with me on. Here's another great tip. Write this one down as soon as you get a deal, a contract, you should be calling local hard money lenders. A hard money lender would not lend money on this deal. It's not a deal and you need to back out of it and then you tell this hard money lender. Listen, I got this deal. If you will lend on this deal, maybe you have a buyer on. I'll pay you a three thousand dollar commission fee, whatever. If you bring this if you market this deal to one of your buyers, that hard money lender knows who all the players are in that local area. Right.

And you tell that hard money lender, I'll give you three grand if you if you can sell this to one of your buyers also. Now, you can take that deal when you're advertising and marketing it, you can say I already have the financing in place. I already have a hard money lender that will lend on this deal. So hard money lenders are huge person players on your team. You've got to find the local hard money lenders, not the big national ones. They don't they don't have a clue what they're doing. Find the local hard money lender because they have the buyers and they can help you wholesale that deal. OK, Paul is asking a question about freedom soft. In my Automator offer, the automated offer software is completely different than freedom. So you're going to get the automated offer software inside the membership site. If you have a problem finding that you don't know where it is, send an email to support a judgment call. Dotcom supported a call dotcom, but they're completely separate. Paul. Jim, one of the best things you do is share the actual closes you are you use while negotiating. This gets us to be to a fair, reasonable price and not overpaying. Thanks, Joe. You're welcome. Thanks for using the property I submitted as an example in Panama City. Oh, hey. You're welcome, Mario.

Quickly, Joe, getting back to cash buyers, at what price would we negotiate with a realtor providing they connect us with their cash buyers? Mario, what price do you negotiate with the realtor? You've got to work that out with the realtor. If a realtor is going to be bringing you buyers, that realtor will also tell you what their buyers would pay. So I would just tell the realtor, listen and be honest with them. It's OK to tell them this. Listen, I'm a new investor. I just bought some late night infomercial course, how to get rich quick overnight, make a joke out of it. But I got a deal that I think you or one of your clients might be interested in. But I don't know. I don't know what I'm doing. I'll be honest, I'm brand new at this. And so I got a motivated seller who's got this property they've got to sell. And I want to know if you can bring me a client, one of your clients to buy this thing. I'll split the deal with you. Fifty fifty. I'll pay you five grand in commissions. Three grand in commissions. OK, then that realtor is going to bend over backwards to try to help you with this thing. They may tell you you're crazy. You'll never sell that thing for one seventy five. OK, great. Thanks for letting me know. What could I sell this for. And do you have any buyers you can bring to me and we'll split the profits on this deal. I'll pay you commissions, whatever.

And most of these deals are going to be cash deals. It's not a big deal. They'll help you wholesale this. You can do the same with other wholesalers that are already doing deals in these market. I'm laying down Bill. Are you picking up what I'm laying down? Are you smelling what I'm stepping in as one of my friends likes to say. Good to. Real quick, what are some of your big takeaways from the Sandra? Make offers, be proactive, do something every day? That is absolutely right. And Jesse, pat yourself on the back end and Frank the other one. And the other one was Arthur. I just showed you your deals. Pat yourself on the back. You guys are doing it, man. You're making offers.

That's how you do deals, doing deals at work backwards. You want to make money, you've got to do deals. If you want to do deals, you've got to follow up. If you want to follow up, you got to make offers. If you want to make offers, you got to talk to sellers. If you want to talk to sellers, you got to do marketing. We're not in the real estate investing business. We're in the marketing business. You've got to do marketing every single day.

Guys talk to five sellers every single day, make offers every single day. Follow up with your sellers guys. Ninety percent of your deals are going to come from follow up. So make offers to the sellers even if they're stupid, dumb offers and you make a mistake. That's OK. It's OK. Just keep on, go back to the seller, renegotiate, cancel the contract, but keep on following up. OK, I've seen this over and over again. The seller says they must really want my house. They keep on following up with me or they're talking to a neighbor and the neighbors that wants to sell their property. They're like, you know what? This guy keeps on bugging me and keeps on sending me letters and emails and texts. You should contact him. He might want to buy your house. Happens all the time.

Guys, I don't want to sell this house any more, but I got this house I want might want to sell. So follow up, guys. The deals come from the follow up. Anybody that's struggling, I always ask them one or two questions. Number one, how many offers have you made in the last month? How much marketing have you done? How much follow up have you done with your leads that you've got one hundred and twenty leads in your database? When is the last time you followed up with them? Follow up can be an email or text, a postcard, a letter. That's where the deals are. And I can pretty quickly pinpoint what the problem is by asking those questions.

If you're struggling, ask yourself this question. How many offers have I made in the last week? How much follow up have I done? If you don't have any old leads to follow up with, find another investor that has some old leads and follow up with them. George, I like the real examples. Don't offer too much just because the market is hot, right? Donna, I know your buyers first. Very, very good, Regina. This is a very useful opportunity to see your process, your thinking options you consider under different circumstances.

Joe, quick question. How should I estimate the rehab cost on a brick? With major fire damage. All right, Harry, easy, easy, easy, easy, easy. Find somebody that's already doing rehabs in Cincinnati and ask them to find. I showed you how to find Flipper's, find the realtors, find the buyers who just flipped a property there and ask them general rule of thumb. By the way, if it's a complete rehab, 30 bucks a square foot, OK, depending on where you are. But that's the general rule of thumb. Twenty to well, twenty five to thirty five dollars a square foot for full gut rehab. It might be more, might be less depending on the neighborhood and the type of rehab you want to do, that's going to get you a ballpark. OK, I'm seeing a lot of questions here about rehab.

Let me show you something real quick and then I'm going to end, because this is why one of the big reasons why I love freedomsoft so much to share my screen with you here. This is my this is my freedom not to count. My son has been helping me with some land deals, and we need to start sending some sly broadcasts for follow up. But look at this. This is some follow up texts that are ready to send out. And these are texts saying, hey, Brenda James, you should receive an offer in the mail the next day or two for your property. OK, we send offers in the mail and we send them text reminders to look for the offers. Got twenty nine texts here to send because we sent twenty nine offers in the last few days. So I'm going to do this in order for the wait. And how freedom soft stays compliant is it's not sending just like a robot. These text you have to manually click, send us a message. So now these sellers are getting a text that we just sent them an offer in the mail for their property and they should look out for it and sometimes they'll respond back. I never got it. So then we text it to them and email it to them. All right. All right.

So let's look real quick at an example deal. I'm just going to do a new lead demo and the address. This is my Appstore, right? They have this thing right here called Rehab Estimated. And I love this start a new estimate. This thing will get you within 10 to 15 percent of the actual rehab costs. You can give this a name demo test and you can say, all right, this say this is a ranch and it's a seventeen hundred and fifty square foot ranch and the finished square feet. Seventeen fifty basement. It's on a slab. Let's say it's got a seven hundred and fifty square foot basement and it's a three bedroom, one and a half bath, one car garage roof that needs some repair contingency. Let's do 10 percent contingency total beta. Yeah, it's a total beater. OK, now here property after repairs. We're not adding any new square footage. We're not adding any bedrooms. We're not adding any baths to one and a half. The garage is still have a one car garage and the finished quality. Now we're going to do average. You know, if I was going to do a full luxury rehab, that's where you'd pick that. And now you pick which market it's in. Let's just pick Indiana. Indianapolis, that'll adjust for housing market rehab costs, create estimates, boom. Just like that. We've got a rental, great rehab and a fix and flip rehab. Scroll down for rental. Great rehab. It's about twenty five bucks. Twenty five thousand for retail fix and flip about fifty two thousand. So remember my calculator. I said about thirty bucks per square foot so we got fifty two thousand seven ninety divided by seventeen fifty. That's about thirty dollars a square foot right there.

OK, and so this is really cool because this will get you this is really, really scary. Accurate. I'm telling you, I've seen I've talked to contractors, rehabbers that look at this like this is amazing. This is really good. Now you might not you might spend a thousand dollars in light fixtures, but you might only spend two thousand and flooring. So these things go up and down. But these are just rough estimates that are going to get you really close to accurate rehab estimates for rental grade. Twenty five grand for fix and flip. Fifty to now you can attach these and print this as a flier when you're advertising the property. I don't know if you can see this, but it creates this attachment. You can then save this to attachments.

So what that does is right here. If I click on attachments in a minute, it'll attach this. That thing I just did to here, let me refresh my screen. It takes a minute. There it is. The estimate for repair. So when you're sending this out to your buyers, you can actually send this to them, too. But that this rehab estimate or by the way, really, really cool and helpful. The deal analyzer is also really helpful and awesome for Fix and Flip. And again, guys, this is freedomsoftJoe.com. So you put in the information of what you purchases for the amount that you've purchased it, finance, finance. It picks up costs, closing costs, property taxes, insurance, miscellaneous holding costs, your first loan, second loan if you're financing it with a hard money lender or whatever, how much you sell it for in your estimate, estimated profit.

So let's say on this house, we buy it, buy it on the bottom of July. Twenty six, we buy it for one hundred thousand. We financed it. We're going to put fifty grand in it for rehab and you can make that part of your second loan or first loan. Let's just say we're paying cash for the fix up costs and we're going to have three thousand dollars in closing costs. We've got three thousand dollars a year in property taxes and fifteen hundred dollars a year for insurance. Well, for just the project, a thousand dollars for just a project. We've got maybe two hundred dollars a month in utilities, maybe one hundred dollars a month and two hundred dollars a month in unknown. Miscellaneous holding costs for total project cost is this we're going to get a first loan for that offset. I don't know what that is, but down payment, let's say we have to put a 10 percent down payment down. We're paying eight percent interest on that money. No points. Second loan. We're not doing any of that. So we're going to sell it in September. Twenty second to the RV. After we fix it up to twenty five, we're going to pay an agent commission, six percent. We're going to have three thousand dollars in closing costs. We're going to have one percent seller concessions. So our cost of sale is that Rendel analyzer. And here we go. So our total project cost is one fifty six. We're financing ninety cost of sales, one eighteen grand for the last two months. We're going to need sixty six grand in cash. Our total estimated net profit on this deal is fifty grand cash on cash return. Thirty one percent. Obviously this is a really good deal. All right.

But you can go back here and change some of this. You say, all right, well, we're going to sell it for maybe to ten Rundell analyzer. OK, now a cash on cash is twenty three percent for net profits. Thirty five. That might work. You can also do analyzers settings this quarter if you can see this right now, but you can say you can change what's going to be red, yellow or green based on your net profit, your cash on cash or your annual ROIC. Yeah, looks like you can see it there. OK, now you can save this to your attachments. And when you're sending this out to your buyers there it is a fix and flip analysis. You can send this as a PDF to your buyers, potential buyers to show them what they could potentially make on this deal. All right. All right.

Malcolm's got a good common question here. When I'm giving sellers options, do I give them all the options at once or just one at a time? It depends. So if the seller is motivated, I'm on the phone with them and they want to sell. I'm just going to give them one offer at a time. If they're not motivated, if it's a cold lead, they're like, no, I don't want to sell it or no, you're out of your mind. If you they're mad, whatever. I'm going to send them all three options in the mail. So I always in my office in the physical mail after I talk to the seller. So I like to send the three options after I've talked to them on the phone. If I'm talking to them and they're like, yeah, I might want to sell, but they're not super motivated. Just kind of depends on the conversation. Right. But generally, if they're motivated, I'm going to send them one offer at a time. The first one that I want, if I know there's equity and I know they need their cash and they need to close now, I'm not going to send them a lease optional from a system of want them and walk through them with that over the phone. If I know there's not enough equity but there is some cash flow, I might send them just to lease option offer on the phone. If they're like, no, I'm not that interested, then I'm going to send them an offer in the mail, follow up and I might do all three options. I'm going to do the cash offer knowing that they're not going to take that, but it positions my lease option offers that much better. I might do all three.

So every single deal is different. Gilbert, I don't know the answer to my question. I am on module eighteen and partnered with Joe. Should I stop Simplist Options and focus. Focus on partner. OK, Gilbert. Good question. Simple lease options is my class. That's my flagship course. That's my main program. It teaches you how to do this option subject to or finance partner with Joe is just cash deals. Partner with Joe teaches you how to do wholesaling traditional wholesaling. OK, you need both. You need both. Because if a seller says no to your cash offer, you need to offer them something else. You can offer them a lease option. And that's what the simplest options course is going to teach you how to do. Make sense. Good guys.

I appreciate all the kind words, giving me some really kind words here, but I. And good. Thank you, Harry. One more question. Gerri's ask this twice a year. What's the difference between a sandwich lease option and a normal lease option? In my mind, they're the same now. In my mind, there's three different types of options. Just a straight up option is I'm going to give you an option. And I have the 90 days to buy your house at this price. That's a straight up normal option. There's no lease involved. You have 90 days to either exercise your option or forget it. And then there's a sandwich lease option where you're going to stay in the middle. You're going to buy it from the seller and rent it from the seller at this certain price. And you have five years, then you're going to turn around and put a ten a buyer in. It is going to buy it from you at a higher price leaser, from you at a higher lease. And you're going to stay in the middle. You're going to get cash now, cash flow, cash later. That's a sandwich lease option. You're staying in the middle. Your average profit on one of those is going to be 30, 50 grand over three to five years. Then there's the lease option assignment or the wholesaling lease option. And this is where you get it under lease option with a buyer. And then you turn around and you sell that lease option agreement to a tenant buyer. They say that right. You get it under contract with a seller to lease option it from the seller at a certain price. And then you just turn around and you sell that contract to a tenant buyer for five thousand dollars assignment fee and you're done and out of the deal. Makes sense.

All right, guys, I appreciate you all. If you have some questions about lease options and how to do those, how do you do lease options? I have a master class you can go watch right now at SLOclass.com. Go check it out.

If you want to learn how to do cash deals, go to  PartnerWithJoe.net and I'm out of here. Appreciate you guys. I hope you got some good value out of this. Let me know what you think. If you're watching this on YouTube, please subscribe. To my YouTube channel, comment down below, give me a thumbs up if you like this, if you're listening to this on a podcast or Facebook and you want to see all the other videos I've done, go to my YouTube channel. Just do a search for Joe McCall and you'll find it there.

Appreciate you guys very much.

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