Epic Real Estate Investing - How to Deal with Bad Apples | 977

Episode Date: April 5, 2020

In the current environment, you will experience a lot of frustration and anger among the sellers due to uncertain times we live in. Therefore, Matt explains how to deal with the increasing number of bad apples on the market in order to keep your REI on the highest level! Besides, in this episode, you will find out how you can get 21 Creative Financing Terms for Your Real Estate Investing Toolbox completely FREE! Tune in and find out more! Learn more about your ad choices. Visit megaphone.fm/adchoices

All right, the bad apples, they are out there and they can absolutely ruin your day. They can get into your mind and mess everything up, but we don't want that. So how do you deal with them so that they don't? Well, this could be a real breakthrough for you today. This is Terrio Media. Success in real estate has nothing to do with shiny objects. It has everything to do with mastering the basics. The three pillars of real estate investing.

Attract, convert, exit. Matt Terrio has been helping real estate investors do just that for more than a decade now. If you want to make money in real estate, keep listening. If you want it faster, visit r-ei-aise.com. Here's Matt. Hey, Epic Investor, it's Matt Terrio from Epic Real Estate, where we show people how to invest in real estate with an emphasis on retiring early. That's the goal. Becoming financially free before retirement age.

which gives you the option to retire when you want to. You don't have to retire, but it's nice to have the option. And this is the epic real estate investing show. If this is your first time here, really glad that you found us. And you found us at a very, very opportunistic time. And I'll explain in a sec. But if you like what you hear, make sure that you hit the subscribe button before you go, so you don't miss an episode.

And if this is not your first time here, welcome back. And thank you for sharing this with your friends, sharing it with your family. I would not be here without you doing that. You're the absolute best for doing that. So thank you. All right. So how to deal with bad apples?

That's what we're going to talk about today. And what we're talking about are the people that, you know, through your lead generation, through your marketing. And you talk to some people that can, don't have the best attitude, not having a good time at the time that you called them and they take it out on you. And that can really mess you up. So how do you deal with that? But before I go there, what we talked about in the last couple days was the risk to

your bank account, right? Really, like the big risk in this type of market is the risk to your bottom line, overpaying. And we went through it. And if you missed it, go back to start April 1st, because this is creative acquisitions April, because this type of acquisition is probably going to be more available to you than it has been in the last several years based on this shifting market that we're going into. So to protect yourself from overpaying is really focusing on when property sold and not as much as what they sold for, the number is important. The number is absolutely important. But when it sold makes that number even more important or less important. For example, a house sold 60 days ago for 100 grand and then a comparable house sold last

week for 75, that 75 is the real value. All right? You can't compare 60 and 90 days out comparables and average those together because we were an entire. different world 60 days ago, 90 days ago, even as recently as 30 days ago. Right. So when it sold is going to be really important for you. Two is to notice what is not selling. If you got comparable houses that are on the market that aren't selling, then you know that's what that property is not worth.

Okay. So now you got, this is the most recent sold and this is what we know it's not worth. So those are going to be the numbers you're going to want to look at. Okay. So you don't get the valuation wrong. You can still get it wrong, but it's going to, increase your odds of it being more accurate. Now, the third thing, the great equalizer, equalizer, no, the great protector.

I think your strongest defense against overpaying for property is making offers with terms, buying on terms. And you've probably heard of that, or maybe you haven't, but it's just buying over time. And I ran through a list a few yesterday. I said I was going to have a list for you today. So I did put up a domain name. and there's 21 creative financing terms for your real estate investing toolbox, and then 10 creative deal structure templates that you can just swipe,

you can steal, you have my permission, and you can start copying, pasting these into your offer. So over at epicbreakthrough.com, epicbreakthrough.com. I had that domain name sitting in the closet for a very long time. I was like, I'll use this for that, because this feels like the time for a breakthrough, right? This moment feels like we could all have a real, really big breakthrough.

If you have been in real estate for a little while and you're kind of struggling to get the results that you want, and you never hit your stride, it's my opinion that this is going to get a whole lot easier for you. There's going to be a lot more opportunity created for you if you know how to use your terms. So go get the 21 creative financing terms for your real estate investing toolbox. There's a giant list of them. I'll continue to go over these, but there's something I want to share with today because it kind of came up about the bad apples.

and then we'll do 10 creative deal structure examples. That's there as well. So that's for yours for free. A gift to you. All right. Epicbreakthrough.com. All right. So what we talked about yesterday in the last two days is the risk to your bottom line,

the big financial mistake you could make, and that's overpaying for property. The next big risk is the risk to your mindset right now. And that's kind of what has shown up on the last, I would say, 20. four hours with my clients. And I'm referring to the bad apples that are out there, right? The bad apples.

We call them the rotten apples here at Epic. There's four types of apples you're going to talk to in case this is your first time hearing this. The first type are your red apples. Those are the people that need to sell. That's where you want to spend all your time. You want to spend all of your time and all of your focus on those red apples. But it's a very small percentage of the people that you talk to.

It's only about 3%. The second color apple or the second category, are your green apples. And these are the people that want to sell, but just might not have enough motivation to do it at a big enough discount for it to be a deal for you right now. But it's not a bad time to spend a little bit of your time with them to see if there is a deal to be had.

So that's about 12%. So between the red and the green, that's about 15% of the people you talk to, people that you're going to talk to. But the red apples is where they deserve all your time. The biggest portion of the people you're going to talk to are what we call the brown apples. And these are just the people

that are curious, right? They might be thinking about selling them. They got something in the mail. They saw a little advertisement somewhere. They clicked on it. And what's this all about? I might have to sell in the next six months. Let me just see what this is all about.

And so they're curious. But they don't really want to sell right now, and they certainly don't need to sell. And that's about 70% of the people that you're going to talk to. So that's the most of them. So once you've identified someone that you're talking to as a brown apple,

you don't want to spend any more time with them. You want your follow-up system to spend time with them. Because they called you for a reason. They know something that you don't. They might be in a position or probably going to be in a position pretty soon or somewhere in the future that they're going to need to sell. And they're probably going to want to do it fast. That's why they called you.

They don't want to deal with a realtor. That's why they called you. They don't want to do repairs. That's probably why they called you. But you can't force them. I don't care how good of a negotiator you are. What a gift for gab. how likable and trustworthy you are and how competent you are, you can't force those brown apples

to become red. Really, only time in their circumstance is going to do that. So you just want to stay in touch and let your follow-up system do that. And that's actually where the bulk of your money is. That's where the bulk of your income is going to come from is from those brown apples. So you don't want to lose touch, right? You just kind of have to wait out the time and wait for their circumstances to change and stay in touch and be on top of mind once it does. Right. So there's the category. So between those two, we've got 85% of all the people we talk to are going to be red, green, or brown. But we've got this 15% down there at the bottom. We call them the rotten apples. And these rotten apples are those that report you to the direct mail police. Those that call you a scammer and

cuss you out. Those are the people that just aren't happy to hear from you and don't have anything nice to say at all. And we affectionately refer to you. to them as crazy. Okay. And so what we do with the rotten apples is we just flat out ignore them. Okay, flat out ignore them. By the way, there is no direct mail police. There is no direct mail jail.

They like to threaten those types of things all the time, but they have no idea what they're talking about. There's no such thing, right? So, but somehow something's just not going on good in their life. And you caught them at a time where you're the lucky one that they get to take out their frustration, their fear. their anger out on. And so right now, in the current environment,

you're probably going to experience and interact with a lot of red, green, and brown apples that are showing up as rotten apples. Because life is not good for us right now. And people are handling it in different ways. And so what do you do? Well, I would say you still ignore them. Okay?

You still ignore them. but if someone hits you up and says, how'd you get my information? Why are you doing this right now? Da, da, da, da, da. Like, don't you know what's going on in the world? Or you get that type of interaction. They bring up the current event.

And they throw that in your face. Your response is really simple. And it should be very similar to this all the time anyway. But if I've never shared this with you, I just kind of want to arm you with some things to say that can subdue the situation. So first thing is like, just understand it's not their fault. Okay. It's not their fault.

And you're going to experience more of them in this market. But something to the effect, oh, I'm sorry. It sounds like this isn't really good timing. You know, I've been doing this for years. I buy data to locate properties that fit my investment criteria. Sometimes it's a good fit. Sometimes it's not. Maybe this does not a good fit.

But do you have a house for sale? Okay. So you're just explaining it. You're being 100% truthful, 100% honest, that, you know, I've been doing this for a while. I buy data and based on my investment criteria. Most of the time it's not a good fit, but it's a good fit enough of the time to where, you know, it's what I do.

Do you have a house for sale? Just let them know that you didn't zero in on them specifically, that you're not intruding into their world. This is just what I do all day, right? This is what I do. I've been doing it forever. And that's that. So if they question you on the timing,

the other part is, or the element, that you can put in there. You don't have to say these exact, but just be straight and truthful. Hey, I buy data. That's what we all do. I bought a list. Bought a list. Your house came up. And sometimes it's a good fit. Sometimes that's not. Do you have a house for sale? The other part, if they question the timing, you know, I've been doing this for years and I still have to work and I'm able to. So this is what I do. Do you have a house for sale? Okay. So it kind of diffused all that. So you don't feel all weird or like you're intruding or you're being insensitive because we were doing this three weeks ago. And there's no reason you shouldn't be doing it now. you're just going to interact with the, you'll probably have a little bit more interaction with those people that appear to be rotten apples, but I'm going to say for the most part, still only 15% of them are. It's just going to be really difficult to tell or discern the difference between that are really rotten and those that are just red and green and having a bad day and kind of freaked out by the today's environment. Okay. So just, you know what? I buy data. This is what I do. Sometimes it's a good fit. Sometimes it's not. Do you have a house for sale? Always finish with

question. Okay. So you're not on your heels. Always finish with the question. Do you have a house for sale? Great. And then just move on to the next lead if they say no. Very simple. Okay. So still, ignore them. Ignore the frustration in people's voice. Ignore the anger in people's voice. They've just, they need somebody to take it out on. And, you know, you cross them at just the right time. Lucky us, right? But here's the thing. There are plenty out there, plenty of property owners out there that got bigger fish to fry, then going to the market with the real estate agent and waiting to get full price for their house. People are going to need cash, and you're going to be able to help them. And I think this is a really good service. Certainly, we get paid handsomely for it. Absolutely. But we're changing

equity for peace of mind. And the country could use some peace of mind at the moment. All right. So it's not going to be a great fit for everybody, but you're just looking for those where it will be a good fit. All right. So tomorrow, what I'm going to do is I'm going to start walking through all of the creative financing terms that you have available to you now. And I'm going to put some more deals together, put some more structures together, and then kind of explain and walk you through those.

If you'd like to go deeper with this and follow along, you can go grab the entire list that I use as well as those 10 creative deal structure templates that you can just copy and paste. You can steal and put them into your offers. You have my permission to take them. And then if you want to do that, then we head over to Epic, Breakthrough. Epicbreakthrough.com, and it is yours. All right? So if you found this episode valuable, there's a really good chance that you know someone else who might find it valuable as well.

If that makes sense, share it with them and ask them to click the subscribe button when they get here. And you will be rewarded with 10,000 points for that. And when they get here, I'll take great care of them. All right. So that's it for today. God loves you. And so do I. Peace, blessings, and success to you. I'm Matt Terrio. Living in the Great. Yeah, yeah, we got the cash flow. Yeah, yeah, we got the cash flow. You didn't know, home for us, we got the cash flow. This podcast is a part of the C-suite Radio Network.

For more top business podcasts, visit c-sweetradio.com.