Welcome. This is the Real Estate Investing Mastery podcast. Welcome, guys. Joe McCall here, this is the REI Secrets webinar series where I just come on every week or so and I teach I don’t really answer questions as much as I just like to show you what we’re doing, what our students are doing, give you some kind of tricks and hacks that I think are going to be helpful and beneficial to all of you guys. So we’ve got a bunch of people watching right now, some coaching students and students of mine in Zoom. So I’m going to be asking them some questions. I’m going to be looking at their chat here. And also you’re watching this probably right now in YouTube and Facebook.

So hello, what’s up, everybody? You may be watching this later when we’re done. So my agenda today is to look at a deal and make an off. All right. Evaluate a deal. Make an offer. So I need to go into a new market. I need somebody to tell me which market should I look at? And let’s just go look for deals. And if somebody who is watching me now on Zoom can give me a market that I like, I get to choose it like a market that I like. I’m not going to choose a difficult market. Some of your guys, some of you guys are giving me difficult markets like San Diego or Portland. Covington, Georgia Where is that? All right, so what am I to do now?

I’m going to share my screen with y’all. All right. So this is Covington, Georgia. Let’s look at a map. That’s funny. Look, this city has a circle. Oh, it’s near Atlanta. I like small towns outside of big towns. Why less competition? And let’s look here. Covington, Georgia County What county is it? Newton County. So let’s look at Newton County, Georgia. There it is. All right, there is a website that I like to look at. It’s called worldpopulationreview.com/states. Good. I’m seeing my screen. We’re looking good here. If you’re on the YouTubes or Facebook’s, give me a thumbs up comment down below. Let me know you can see me and like me, and this is all good and fine and dandy and your you like what you see? All right, cool. This is world population review. Where’s Georgia? This is Georgia, isn’t it? Alabama, Georgia? Sorry. I mean, I should know that right? And I’ll tell you why I like the small towns, because look at this, this is Atlanta right in this area. I mean, all the way in is huge. It’s monstrous and all the competition. All the investors are focusing in on these dark red counties right here. And what this is, this is a Georgia population by density. So if I was in Atlanta, I probably would not be doing much of anything here in these very expensive counties. Not expensive, then they may not be expensive, but they’re very competitive counties, huge populations.

Now you could go out into the Reds. These are usually like the suburbs, you know, more expensive, expensive homes. But then if you go out one or two more in, you’re in a county like Newton County where you got a population, see over there in the right population of about a hundred and sixteen thousand. But look at the population growth 16 percent. I like that, right? And the other thing I like to see here is Newton County, Georgia. Median home price. Sometimes you get information here from Zillow. That’s pretty good. Newton median Zillow home values similar at two hundred twenty eight thousand, they’re seeing a huge price increase. Everybody is. And let’s look to see if we were to go into. Let’s look at Redfin. Newton County, Georgia. 390 homes for sale. I like that. Let’s look at houses only. Let’s see what we can find. That’s under 400000. It’s one hundred eighty two homes.

Let’s do price low to high. I like to see what are the cheap homes looking like? They’re good. There’s some cheap homes you can imagine. This might be an area where a lot of investors are actually buying homes to for cash flow. Maybe you also got the nice, expensive homes, too. Let’s look again the other way around. From low to high, you’re not getting a ton of cheaper houses. Let’s look at sold for sale off sold on last six months. Sometimes these counties will not have good data. So what I like to see here, this is what the last six months houses sold sort of from low to high years of forty five thousand fifty thousand fifty fifty five fifty seven. You get some pictures here once in a while. Sixty. These properties probably rent for pretty good. Like this property right here? Let’s just look to see what Zillow says. Zillow This house sold for sixty five grand, its three bedroom, two bath, 4400 square foot. And sometimes you can get and rent Zestimate. Holy smokes. Look at this six hundred a month in rent. Are you serious? I don’t know if that’s right, but would you pay sixty five grand for a house, but 20 30 into it to rent it out for six hundred a month? Who would not do that? That’s pretty good.

One of the other things you can sometimes find here in the Newton County home values is what the average rents are in the neighborhood. Sometimes you don’t see it here on Zillow, sometimes you do. Sometimes you can see Rent Value Index here. You can also go Newton median. Rents the department of numbers, if it’s on the internet, it must be true, right? Oh, look at this. I like this. The Department of Numbers and don’t even think that’s a legit government agency, but it’s just somebody’s got the domain and they’re probably making a ton of money on it. All right. Newton County, Georgia Median gross rent one thousand fifty seven. I like it. Strong growing county. It’s outside of the big MSA of Atlanta. OK. But you know, when you’re looking at something like this, don’t ignore like Baldwin County. What about Bibb County? Still, a hundred and fifty three thousand people there? I’m looking for counties that are maybe over 100000. What about Coweta County? Carol Floyd County, Whitfield County. You’ll be surprised, guys, how much good demand and less competition you can find in some of these small counties. We’re looking at Newton County, by the way. You wanna see something cool? If you’re looking for land, if you were and I was looking actually at flipping some vacant land in Georgia, let me show you something real quick.

There’s a website called Landwatch.com That is going to show you if you go to Georgia, G.A. right here, Georgia, and I want to look for I’m a scroll down here. I like looking for five to 40 acres is when I make offers for vacant land or I do marketing for vacant land and I want undeveloped 4600 listings of vacant land between and I want max price one hundred thousand. So I don’t want like the real expensive blocks. Thirteen hundred and seventy six listings. I’m looking for rural vacant land. Guess what you see here? You see the areas that are the most popular for the like in terms of number of listings. You can also see the biggest counties Gilmer County, the 72 listings right now. Lawrence County has 55. Hey, Habersham County. So if I’m going to pull a list, if I’m looking for all right, I want to flip vacant land in Atlanta, Georgia, and I like the mountains because there’s more, you know, that’s where I want to buy land, where somebody is going to actually ride their four wheelers, go camping, go hunting, vacation, get out of Atlanta and in an hour or two hours, be on their own property where they might build a cabin someday, right?

Somebody is asking, What do I do with this land? I flip it. I buy it for twenty five cents on the dollar and I sell it for 85, 90 cents on the dollar. Sometimes the owner financed. So here you go. Just like that. I can see in Gilmer County right here. There’s a lot of activity going on now. These are active listings. But if I look at Gilmer County, look at the kind of properties that people are selling here. Beautiful. A lot of I know Barry is a land investor. LandDiscounts.com. See this beautiful give you think it’d be hard for him to sell this lot? Maybe he’s asking a lot of Maui’s owner financing it. Ninety nine grand. These lots are beautiful. Here’s one five acres. Thirty five grand. Now that’s a drone as beautiful up there as Paved Road is. Got access, guys. You may think who on earth would want to buy this land in the middle of nowhere? We’re selling these things like crazy right now, OK? I don’t know how I got on that, but I was just, we’re talking about Georgia. Oh yeah. And we were looking at this county map here. Not an no where Gilmer County is. It’s up here somewhere, isn’t it? There is. I just saw it. There it is, right there. Gilmer County is only thirty two thousand, but I guarantee you if I went in there and did some marketing, we do texting and letters. I could find two or three deals in about a one month, two to four month, I mean, two to four week period. Vacant land deals get it under contract and sell it, especially if I could offer owner financing. These lots are selling for 40 50 grand. I’d buy it for eight to 10 grand.

Such a good time to be in real estate are you’re doing houses or vacant land and telling you this? I’m just looking to see, well, there’s a lot of activity here and these are great. These are five acre lot selling for forty nine grand. So how much is that an acre? Forty nine thousand divided by five point six nine. That’s about eighty six hundred dollars an acre. I would offer about eight hundred dollars an acre. I would sell these things for seventeen or eighteen hundred dollars an acre. I mean, I’d buy them and then I’d sell them one owner financing or cash. All right. Anyway, so many things this way. I love real estate so much. We’re back. All right.

We’re back in this county. This is Newton County, Georgia. We want to make a cash off on some properties. Now, how do we do that? We’re here in Redfin. Let’s look at a property that’s maybe been on the market for over 30 days. See what we’ve got. These are all the properties that have been on the market over 30 days. I’m going to apply filters and let’s sort it by price, and I’m looking for houses only now you can do fixer upper. But the problem is you’re going to go from eighty three to two. So I don’t usually check that you just sort this by price. These are all going to be properties that need working now. This year, it’s looks like a modular home, not real big on modular homes. Well, maybe it’s not needs a lot of work. It’s on stilts, but some kind of weird thing going on there. They actually did a 3D image of this house. The camera 3D camera thing, by the way, you’re thinking, who on earth would buy that? Well, would you buy it if you got it for 20 grand? I would, and I’d sell it for 75 80 on owner finance. Don’t think you could not buy this for 20 grand? They’re asking 79, but guess what, it’s been on the market for one hundred and twenty seven days. What if you called the agent up and said, Listen, I know this property needs a lot of work, no blind offers, I would say, Listen, how negotiable is the seller on their price? Perhaps dream? Let me log in to prop stream real quick. I’m looking for older listings that have been on the market over 30 60 days. That’s not the house I want to copy.

There it is. They’ve only owned it five months, so I don’t know what’s going on here. Maybe they tried to hold it. They’re trying to just wholesale it. You bought it for 70 grand. Now they’re trying to sell it for seventy nine, but they’re paying a realtor commissions. I’m wondering if they just bought this thing to try to rehab and they realize it’s not. It’s not going to work. The home is currently owner occupied now. Who knows what’s going on? But you could call the guy, Lee Nicholson, Google, and say, Hey, you know, I’m interested in this property. Just kind of wondering what’s going on with, says owner occupied somebody who actually is living in this thing. Why hasn’t it sold yet? You feel like 79 grand is a fair price for all that work that needs to be done. What’s the lease they would take? Man, I don’t know if they if I could get them something close to 78. Nine. Do you think they would consider creative financing or something like that? So maybe I would give them seventy nine grand for it if they did principal only payments zero down, five grand down? Maybe so they have enough something to pay the realtor principal only payments. So let’s we’ll look at this one in a minute.

Let’s make a cash offer to that one. Let me write down the address here. One nine five White Birch Drive three 0001 six Let’s look at this one here. Yes, the realtor is transactional only, so they’re getting some kind of commission. Ninety nine grand, two bedroom, one bath. Do it yourself. Look at the photos. Pretty beat up house. Kind of ugly inside. Looks decent. Some of you like Joe. Why would investors buy anything out here in coming with such a small town? Well, let’s see what this property would rent for in upstream. They give you an estimate for rent. Didn’t like the address there, did it? Let’s. Sometimes you have to look up Google Maps to get the address. Better address. Copy the address from there. Go into prop stream paste. There it is. You see what I did there. I had to get a better address. Something was different with the address I did from here. Oh, it’s got southwest in there twice. When I put it in, Google Maps gave me a better address than I could put it into. Perhaps another property has only been known three months. They bought it in July for eighty two grand. Well, again, you know what? It doesn’t matter. Let’s say the loan amount loan balances is weird. I’m not sure what’s going on. I don’t care what they owe on it. I’m still going to make a cash offer for the numbers that work for me again.

Call the realtor, try to find out what’s going on with the owner. They try to buy it, hoping that they could rehab it and they gave up. Are they just trying to hold tail it? Maybe the best ones are the ones that are owner occupied, or they’re they’re being trying to be sold by an owner. So the tenant of this home has been in there for for 10 years. Month to month. Right. This house kind of like this one because it has a tenant in there. They’re probably not paying nearly enough. And this is a home that’s been owned by an individual for 15 years. So Christopher and Jessica Crutchfield of Olin this property for 15 years, it’s being rented right now by a tenant. It’s been there for 10 years and they’re done with it. They want to get rid of it, and they live in Covington, Georgia. Prop Stream says it could rent for about nine. Twenty two a month. All right.

You know what? Let’s go back to this house. I want to look at the map set up there. Let’s look here. I like looking at maps because I want to see what’s in the area. No, is it? How close is it to that river? Is it in a flood zone? One of the things that you can if you go to trulia.com and you put in an address, sometimes you get some doesn’t show up for some reason. But sometimes you can go in and see crime zones. Crime maps three zero zero one four. So if you go into a home in that area, let’s just pick this home right here, for example. And you go to a map, you can click crime and see a crime in the neighborhood and on some homes. It doesn’t look like this has it. But maybe in some bigger cities, you can see if there be a link for a flood map. You can see if it’s in a flood zone or not. All right. So anyway, what? I’m looking at a satellite view. I’m looking to see what does a neighborhood look like? Does it have a street view? What’s across the street? What’s down the street? Somebody sitting in a chair? All right. Yeah. Realtor.com also has that same data to kind of depends on the city. Let’s look here. I hear you flood back. It’s Redfin. All right.

So let me show you what I just did. I’m looking at the house and Redfin, and I click on this map and I click right here. Flood factor one out of 10 minimal. Just looking to see if it’s in this area where it’s kind of darker. That’s not good. All right. Now let’s say this property on prop stream says it could rent for nine a month. The current month to month tenant is paying six seventy five per month. I’m going to move my things over here. Here is the listing agent. If we called her up, we could say, Hey Alicia, I’m Joe calling about your property there in Laurel Street. Do you mind if I ask you a few questions about this property? Can you tell me a little bit about it? Tell me about this tenant. They’ve been in there for 10 years. They’re paying six, seventy five a month and. Do you think that could go up? What do you think the market rent in that neighborhood is? You tell me a little about the owner. Tell me a little bit about the owner situation. I mean, they’ve had the same tenant for 10 years. Why would they want to rent? Why would they want to sell it? I’m sure, like they’re getting great cash flow on it, right? Their mortgage on it. I’m not going to ask the realtor that.

OK, so there is some kind of there is a small mortgage on it by 25 grand. They just refinanced it a couple of months ago, three months ago. So I try to find a similar situation. Sometimes the realtors won’t tell you. A lot of times it’s just, you know, they’re tired of. They’re selling all their rental properties. They just want to get out of the rental business. But I want to find out like, why sell it? Why not just keep it, keep it renting it out? What’s going on? Does a tenant have to stay? You think ninety nine grand is a good price? Tell me, why is it been on the market for one hundred and forty days? Sometimes you can see a price history. But Redfin, for whatever reason, does not give the price history here. Sometimes Zillow does ask the realtor, Now what’s going on here? It looks like it’s been off the market on the market, pending back relisted contingent. Now it ask the realtor Why hasn’t it sold yet? These when it came in the market re listed pending fell through. What happened? I just want to ask as many questions as you can.

Probably it’s overpriced. Simple as that. Maybe the tenant that’s in there just will not let anybody in to go look at it. So I’d ask those kinds of questions. You know, I’m sure the tenant is been super friendly, right, and lets people in to go look at the house if they’re buying it, if they want to buy it. Is that right? Find out if there is any kind of problems with the tenant not letting people in. All right. So this is a three bedroom, one bath, one one four a square foot. So I’m going to show you how I would make an offer. But first I’m on the phone, I’m talking to the agent and I’m going to look at this map. I’m going to click map nearby homes for sale, and I want to see, all right, what is for sale in this area right now? And when I just did. Let me show you what I just did, and I’m going to oh, I just accidentally close that tab didn’t mean to do that. Let’s look at this property again here real quick. OK, so I’m going to click on this map and I’m going to right click and open in the new tab map nearby homes for sale. And what that does is it puts that house right in the center of the map, so I can see there’s five or six homes for sale in this neighborhood. I’m going to zoom out. There’s still six. Let me zoom out one more time. Now there’s 18. Most sought this table by price. I can see there’s some vacant lots. I’m going to go to more filter’s house only apply filters. All right, so I can see this is the cheapest property that is currently listed for sale, but I can see the next one here is 130 to 149. So it seems like it might be a good price, right?

Let’s go to more filters. Let’s turn for sale off sold on last one year. 102 homes. I’m going to zoom in a little bit more to narrow it down. Now there’s 31 homes. I’m going to sort this buy price. Now look at this. Remember, our house was one one four eight square feet. So I’m talking to that agent. I’m going to ask them. I’ll tell me something. You know, I see some houses here that have sold in that neighborhood in the last year for like sixty sixty four sixty six sixty eight. I’m sure your property’s much nicer. Seventy five, seventy seven eighty Olin. Look at these pictures right here. This looks like a real nice house. Doesn’t need that much work inside paint, cosmetic new kitchen. Maybe, by the way, this property, I’m probably going to sell it, not to a rehab or to a landlord. So again, Mr. Realtor, Miss Real, I’m looking at these properties and I’m talking to them while I’m on the phone.

So it’s a good idea for you to get familiar with Redfin and Zillow. So when you’re talking to agents on the phone, you can pull up the property, click map nearby homes for sale and see the properties that are currently listed active for sale and sold. It’s important that you look at actives and sold there just as equally as important. Now, if I was looking for after repair value, I would probably go into more filters and add in some square footage filter I might do. I might do four thousand five hundred square feet, apply filters and I’d sort by price from high to low. Here’s a hundred and seventy five thousand one hundred and seventy thousand four hundred sixty nine. This looks almost just like our house, so the inside is a real nice rehab. 160 hundred and fifty. You can see the days on market, though this one might be a good comp sold in thirty four days and is literally just down. The street art house is right here. This one is right there, so this might be a good price and it’s a two bedroom sold for one sixty nine. So I might say the RV of this house is one sixty five, but I have to get the tenant out on sixty one fifty. It’s the same house. No, it’s not twenty. But again, I’m sorting this from low to high. I’d ask the realtor, Tell me about these houses I see here on palmetto and broads kind of just about five or six blocks away that are selling for sixty six sixty eight. Why is your house so much nicer than those?

Again, ask the realtor for pictures, any pictures of the inside of the house? What are they going to do if they don’t sell it? Althea, what are they going to do? The owners? I’m just curious, what are they going to do if they don’t sell this house? We’re just going to keep on rent. Doing it, they’re not in a hurry to sell it right. What’s the absolute lowest? Are they negotiable on the price at all? What’s the absolute lowest they could go in if I could make an all cash offer no contingencies. I’ll buy it with the tenant in there and I can pay cash close in a couple of weeks. Just what if? What do you think the lowest they would actually take would be? And again, I’m looking at these comps. I’m I’m seeing houses are sold here for sixty sixty six seventy seventy seven eighty. Some of these houses don’t need much work at all. I’m sure your house is like in pretty good shape, right? They’re asking that much money for ninety nine thousand pushing the paint buttons. OK, I’m also looking at this thinking, you know what’s going on? If I’m looking at the map, I see it’s right next to the river. I might ask some questions like, you know, how close is it to the river? There’s never been any kind of flooding or anything like that has there? I don’t know. Maybe it’s on a bluff or something like that, but I’m asking these questions. I’m looking at. The Street View looks like a nice neighborhood, but some of these houses across the street, a little rundown boarded up. Is this a safe neighborhood or the house? Next door has got some pretty beat up shingles falling off the roof and asking questions to the realtor about the neighborhood because scroll down here.

Now you may think I would never want to live here. I would never. This is probably not a good area to rehab a house. Make it really nice. Maybe? I don’t know. But this is more of a rental neighborhood, so my buyer is going to be the landlord, right? But drive down this neighborhood kids dogs. Oh, I see there’s there’s a house down the street with a bunch of cars parked in the backyard on the grass. Is that is that normal for the area? Oh, there’s an industrial, some kind of industrial warehouse just down the street. You know what that is? I’m not saying I’m not. I’m proposing these things as questions. Do you see what I’m doing here? I’m posing these things as questions like, Let’s look at this map again. Let’s go switch to satellite. We’re the other satellite. Yeah. So here’s some warehouses and some industrial stuff, right? Like this down the street is this is just a big warehouse or something. What do they do there? These buildings kind of look rundown, and just kind of curious, is it is it nice in that area? You know what I’m saying? Like, if you pull up this property on Google Street View and you dragged a little stick man to right here and you’re scrolling around looking at this, where what is this manufacturing warehouse big building here with the ugly barbed wire fence?

So ask the realtor what these things are, because this is probably why this house hasn’t sold. This is probably why this house has been on the market for four months, and it’s probably not going to sell very soon. Yeah, it’s the cheapest one that’s on the market right now, but it’s not one of the cheapest ones it sold. And I guarantee you that tenant’s been in there for 10 years. There’s not been much updating and maintenance. There’s probably a lot of work that needs to be done on that house. All right.

So let me show you how I would make an offer on this product. You interested? I have here a calculator. I called my automated offer pro. You can get this at pertnerwithjoe.net. If you’re interested in this calculator, let me show you you can make out. It helps you come up with after repair value. The cash offer lease option offering auto financing offers. We’re just going to focus on the cash offer right now. You got your personal information there for your company. Click next. You put in the property information here. Now, in this situation, you can you can send an offer directly to the seller and this is what I’ve done before, too. So I’ve looked at these older properties and I’ve copied their addresses, put them into freedom. Soft freedom, soft gives me the name and address of the owner, and I can send the owner a letter. Or you can go into propstreamjoe.com And you can scroll down here. And a lot of times you can see the agent’s information either in Prop Stream or in Redfin and Alethea Rutledge. She’s with Keller Willingham’s Realty. There’s a phone number you could and then you could even google her. Like if we google her right here, Tim Rutledge dot com or agents, there’s your email address. All right. So I could call her. I could email her text her, make an offer. So one of the strategies that I’ve taught before in REI Secrets in these webinar series is looking at these homes and looking in a large area and taking all of the ones that have been on the market over 60 days. You can download that in Redfin. There’s usually a download button right there. You can download them into a spreadsheet and then upload them in the prop screen and get all of the owner’s informations on all of those houses that have been listed for over 30, 60, 90 days. And you can send them a letter or an offer someone to show you what I what I would, how I would create an offer on this property.

And let’s say we’re sending it to the agent. And I forget the agent’s name was Alisha Rutledge copy. Normally I would not. I mean, I would. I would fix that. So it’s not all caps. In fact, let’s just do that anyway. Lisa Rutledge OK. Property Address 18 Laurel Street, Covington, Georgia Sellers mailing address. I might do something like this. Realtor. OK. Seller’s mailing address, I get this from prop stream, Joe. You can get it from Freedom Store about Oh, by the way, you can see it, the properties this investor owns, they own six properties. They have some good equity. They might just be getting tired landlords. They may be have more that they want to sell to, right? Always ask about that. So here’s their mailing address. Greendale Road, Covington next.

Now, how do we determine the RV of this house? There are several different ways that I like to do it. You can do the averages of Zillow, Trulia, Redfin, Realtor.com, whatever they tell you. The estimated worth of the property is, for example, prop stream in this example says the house is worth about 253 173. Now that’s the house they live in. That’s the house the owners live in. Perhaps Dream says 96 one three zero. Zillow may not give you what the property’s worth because it’s listed for sale right now. They’re not going to give you a Zestimate. Sometimes they’ll give you an estimate of value for homes in that neighborhood. Let’s see if know what RealtyTrac sometimes gives you. Estimates, OK? And it also gives you two Zillow ninety to one hundred seventy seven five seventy. Zillow was 90 to 100. There was another one called Adam for seventy seven five seventy. Sometimes you can also get property values. Realtor.com home value. So if you can see that they’re collateral analytics one of three CoreLogic. Ninety eight a.m. Ninety eight ratings down, by the way. Can you have a virtual assistant? Do this for you? Yep, you can. And you should. So one of these was 103. The other one was 98 nine hundred ninety seven nine. All right. So the average of all of those is ninety four. Now, what do you think of that? You remember when we were looking at Redfin and I looked at this from high to low, if it was fixed up, you could probably sell it for one sixty five one sixty. This is where when you got to use one of those judgment calls. All right.

Well, what are similar homes actively listed for right now? Turn sold off actives on apply filters. This one’s for sale for 149. All kind of nice inside. Doesn’t need any work. Can I really sell mind for one? Sixty five with this one’s for sale for one fifty? All right. Well, here’s the thing when you’re in this price range of when you’re wholesaling a house to a landlord versus an investor buyer, you’ve got to figure there’s two different ways to calculate an offer. The one is the offer price that you know an investor landlord would pay for and the price that a rehab or investor would pay for. The way this calculator works, it does the average of these here for the RV. Ninety four to eight three is what they say the averages of the RV. I tell you what I’m going to do. I think if I fix this thing up, really nice like I bet you, I can sell it pretty fast for one third. I don’t know. All right. Let’s put that in here.

Let’s say we’ll use the RV 130 and I’ll show you how I prefer to make offers in this price range on the next screen right here. All right. So here is my cash offer section, and there’s two methods I like to use the RV the after repair value time 70 percent minus repairs minus fee and then the Method two is the average of the lowest sold times a certain percent when it comes to buying rental properties and rental neighborhoods to sell to wholesale to a landlord. You’re probably going to be more likely using the average of the lowest sales if you’re in an area where homes are selling for fifty three fifty. Nicer homes, you’re going to probably be more likely using the RV time 70 percent minus repairs minus fees. This is a house that in that a rehab is going to want to buy. All right, so let’s say the I could sell it fixed up for one 30, you want 70 percent of that square footage. One one four eight repairs. I usually do dollar per square foot. Let’s do thirty dollars a square foot. The rehab is going to be about thirty four thirty five grand on there. I want to make at least $10000 wholesale fee, so my method one cash offer is going to be about forty six thousand dollars right now.

Method two is the average of the lowest sold times a certain percentage, and I usually do 80 percent. So let’s look at Redfin here, and let’s change more filters sale off sold on. Let’s look at the last one year. Apply filters. Sort this table from low to high. And here we go. I like seeing this. A lot of these properties are in a similar window. They’re 60, 64, 66, 68, 70, 75, 77, 80. That is one two three four five six seven eight. So if I go into my calculator here now, your VA could put in the address right here, or they can just type this in 60, 64, 68, 70, 75, 77, 80. All right. So the average of all of those is seventy thousand five seventy one times 80 percent. So my method to cash offer is 56. So now I have Method Cash offer number one forty six thousand method to 56.

What would you use? Well, considering they’re asking right now, 99, somebody ask, would you consider a numbers of beds and best kind of. Yes and no. If I had too many comps, I would probably do that. But sometimes these comps don’t have bedrooms in it, and these are all the same size. They’re almost like the same footprint. So I’m looking mainly at the square footage, and you could even do the average of the square footage that is sold here. And if you scroll down on this page, sometimes it gives you a dozen here. Sometimes it gives you a summary. Well, here you go. The average is for that zip code. But anyway, I’m just looking at the size of the house, so I have two methods for cash offers. If I buy it for forty six, I’d have to sell it for fifty six if I buy it for fifty six and I have to sell it for sixty six.

So again, I’m going back here to Redfin. I’m going to change sold off for sale on I’m a zoom out if I’m going to sell my house for sixty six, what’s my competition like? I don’t have much competition here at all. So I’m looking at this calculator. I like the average of the lowest sold. So I’m going to use this cash offer 56, four or five seven. I’ll put down a $1000 money deposit. I’ll give them a deadline of Friday for my off. And by the way, this took me way longer than it normally does because I’m talking through it, kind of walking through it right now, I’m getting an error message. I need to have at least three to six. So I had one too many. I had one, too many. You get it now. I might also do owner finance. Let’s skip lease options that don’t like typically doing lease options on lower in homes. What I might do on financing let’s do next before we move on past lease option, we do have to put market rent in here because this value is required and we said this property would rent for nine. Twenty two, right? Let’s do eight ninety five for the market. Rent the Zillow, see what it would rent for, they’re saying. 12:45 Let’s look to see what similar properties are renting for here.

Wow. Now these are obviously newer homes. There’s nothing cheaper to rent than six hundred a month for this house in this neighborhood. These are all newer, nicer homes. I’m going to stick with 895 a month and rent. OK, now I’m going to go to next and I’m going to go to the owner financing section. There’s two ways you can make owner financing on principal only payments and interest only payments. Typically, the way I like to do that is if the as is value of the home is this. And this is kind of what they’re asking, they’re asking ninety nine for. I might put that in your ninety nine thousand K now give them full price with zero down and I’ll do 50 percent of the market rent for principal only payments. So if they’re willing to do on financing, I might give that to them. I might give them ninety nine zero down principal only payments for forty seven fifty a month until paid, so they get paid off in 18 years if they want interest. So it’s like price in terms of they want terms. All right. So I want a little bit of discount. There might give them a little less than they want a down payment. I might give them five percent down, but I want three percent interest and I’ll do a balloon in 10 years, something like that. OK? You can play with that. Click Submit. Now with this calculator does is it gives you now some options that you can give to the seller. And here’s my favorite is the cash offer. I’m going to open this up in word and I’ll share it to you. Your new share word. Word up.

1. This is what I like to send to the sellers and I’ll send them this. It’s four pages and I’ll send us to them through Freedom Store. But here it’s addressed to the realtor. Your email it to the realtor. You could, you know, obviously email it to the sellers as well. But hey, this sheet of paper and this is in word two so you can go in here and edit things. The sheet of paper is worth fifty six thousand dollars for the next 30 days. Dear Lisa. Great talking to you today. If you want to sell your property, I’ll pay you cash for it quickly. Do you have any questions?

And then here is a one page contract fifty six thousand dollars. This is a really good, solid contract. Then Page three. Here are all the benefits you’ll experience when you sell your property to us. We’ll buy it. Other investors are going to give you a lot of contingencies. We have a ton of experience. The other guys who knows with us, you’re going to get the best title agents, attorneys, professionals all working to get you to get your home sold. Most of the time, their competition is just a one man show. Here we’ll buy your property without having to move the tenants out. Other investors don’t want the home vacant. You’ll never have to make any repairs. For other investors, make sure you read the fine print. We’re constantly communicate with you. Other guys makes sure they’ll only talk to you if things are going OK. You’ll have a transaction handled by licensed and insured title agent are the guys we care will ensure that you have the proceeds from the sale of your property. The day of closing. Other guys read the fine print. You’ll never have to pay any commissions are the guys read the fine print. So it’s just a table saying here are the benefits you receive when you sell your property to us. You scroll down. You can tell the seller. Here’s another table. Here’s two ways to sell your property, by the way would you give this to a realtor? It’s telling them you have to pay any commissions. This is something you send. Either take this out or send it directly to the seller or just remove that.

All right, so there’s two ways to sell your property. Determine the price. Prepare your home advertising. Wait for an offer. Advertise, Wait for an offer. Hold an open house. Wait for an offer for show properties. The buyers wait for an offer, negotiate sales price, make the repairs. Or you could say. Get a low ball up, make necessary repairs. Prepare all the contracts, coordinate and follow up or sell your house to us. Get a check it close. All right. So I like to create PDFs out of these things, so I just turn it into a PDF. I don’t know if you can see this and send it to Celera again if you’re sending it to the realtor. You might want to take out the commission language and you have to realize a realtor is going to want to use their contracts. It’s fine. Not a big deal, but this is the typical letter that I like to send with a cover letter to the owners of these properties, and I’m going to send this letter. This offer every 30 days as a follow up.

One other thing I wanted to show you real quick is my three option letter of intent. Number three for owner finance. So this document here let me do a news screen share. All right. This is a letter that includes, Hey, it’s nice talking to you about your house. Here are three different options that we might be able to buy your house. You scroll down. This is a letter of intent with multiple options. Mr. Seller, I can pay you cash right now. 56 Grant. I can do seller financing with interest only payments. I can buy it for 90 for you. Maybe that’s too much I may do. Eighty four. I’ll make a down payment of this. You’ll have to fix this number in the calculator, but I’ll pay you four grand down, four grand down and carry the remaining balance interest only monthly payments of obviously this have to be fixed with a full balance of eighty thousand do in 10 years or owner financing. I’ll pay you ninety nine thousand, maybe do a $1000 down payment with the remaining balance $447 over two hundred twenty one months. And then the next page is a cover letter like here are the here’s what owner financing is summary of the benefits for owner financing, and then a one page report of how to sell your house, as is that a fair price on the date of your choice? But you can include cool. All right.

There’s other options in this calculator as well. This calculator Automated Offer Pro gives you a blind owner financing offer letter. Looks like this. I know you can’t see it. Let me share my screen. So if you wanted to and I’ve done this many times, we download all the properties that have been on the market over 90 days and send blind owner financing offers to the owners of the properties. It gives them a letter of intent. Pay them full price with principal only payments for forty eight per month just gets the conversation going. So what this does? All right. So that was all I wanted to share. Hope that made some sense. All right. Here’s the point. Get on the phone. Get on the phone. Look for properties in these smaller towns. This is where are you going to find great deals, guys? Look for smaller properties, so look for properties in smaller towns outside of the big towns. Look for the ones that have been on the market over 30 days that need work and call the agents up. Talk to them. Ask them questions about the house, OK, and then send a cash offer if you’re dealing directly with the owners.

Sometimes what I like to do is find the owners of these properties that have been on the market for a long time. Send them a letter, skip, trace them, call them, text them and make them an offer. You know, you could even send an email to the realtor. Listen, if I could get your seller, your client, their asking price of ninety nine thousand, do you think they might consider something creative like seller financing or lease purchase? You’ll be surprised how many realtors will say, Yeah, maybe I’d consider something like that. Right?

So get on the phone. Start calling realtors. Start talking to them, asking them about their properties. Remember, was it? Last week I called a realtor and she said, Yeah, I got a property for you. Maybe here. And it was not what I was calling about. It’s another one that’s not listed on the MLS yet, by the way. She never responded to my email. She sent me an email. I responded back to her and I asked her, What would what would the seller take for this property because it wasn’t listed? She’s not responding to me yet, but anyway, get on the phone and talk and you can tell that agent listed. If you bring me a deal, you could represent me. I don’t have a buyer’s agent representing me right now. You can get both sides of the commissions, so now you get that agent to start bringing you deals. All right.

Hope that helps. Hope you guys got something out of that. All right. If you did, please, if you’re watching this on YouTube, subscribe to my channel. Give me a thumbs up. Like this video. You’re watching this on Facebook? Please share it. And yeah, that’s it. If you want this calculator that I just showed you to, by the way, you can get it at partnerwithjoe.net. Go there. Check it out. I have a 30 day class in there that teaches you how to find and wholesale deals and you get this calculator. It’s included.

All right, guys. Bye bye.