Epic Real Estate Investing - How to Get a Seller to Say YES! ...even when you do it wrong (LIVE CALL) | 1229

Episode Date: August 23, 2022

It is not always easy to perform at the top, especially when your job includes constant negotiations. But, even then, you can reach your business goals. Listen to Matt’s live call with the seller, and find out how to finish the deal successfully, even when doing it wrong! BUT BEFORE THAT, Matt talks about what seller financing is. Are you ready? Let’s go! Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. What is seller financing? It could very well be the one creative investing strategy for you to take unfair advantage of the extraordinary amount of opportunity that is emerging in the market right now. You ready for it? Let's go. Welcome to the all-new, epic real estate investing show. The longest running real estate investing podcast on the interwebs. Your source for housing market updates, creative investing strategies, and everything else you need to retire early.

Some audio may be pulled from our weekly videos and may require visual support. To get the full premium experience, check out Epic Real Estate's YouTube channel, EpicR-E-I.TV. If you want to make money in real estate, sit tight and stay tuned. If you want to go far, share this with a friend. If you want to go fast, go to rei-Aase.com. Here's Matt. So by the time we're done, you'll know what seller financing is and where the ideal place is to go look for it so you can build your passive income real estate portfolio without

needing a good credit score or a bank. And at the end, I'll even give you my seller finance contract that I and my students use to pull these seller finance deals off. As a real estate investor, it is crucial to keep all of your options open when selling or buying a new property. We discuss every week here numerous non-conventional and creative financing strategies that can offer unique benefits, no matter what side of the deal that you're on. Among these strategies is seller financing. It's a process that essentially eliminates the middleman and allows buyers and sellers to negotiate more directly on the financing of a sale. It works like this. When you own a property that you want to sell, you have a few options and how you can do it. One way is, you could accept cash.

Your house is worth $200,000 will say, the buyer has $200,000 in cash, done deal. Another way is, the buyer can go to the bank, get a loan, and the bank gives you the $200,000 on behalf of the and now the buyer makes payments to the bank. And another way, what we're talking about here right now is, you can sell your property by taking payments directly from the buyer over time. And that's what seller financing is. And just like the first two ways, the buyer takes ownership, their name is going to appear on title, it's theirs,

and they make their monthly payments to you, just as they would a bank. Typically, you would ask for a down payment, but it's not required. It's your property. You can sell it however you want. There's no middleman involved, so anything good. goes. As long as the buyer agrees, you can structure this however you want. It's popular for investors to sell this way because by being the lender on their property as opposed to the owner, they can

create cash flow without the headaches of dealing with tenants. And right there lies a little clue as to where a massive amount of opportunity is starting to emerge in the marketplace. And I'll tell you how to find it in your area in just a minute. Further, sellers that are willing to sell with seller financing are offering a huge convenience to the buyer because they don't have to deal with a bank. And maybe for whatever reason, the buyer can't get bank funding. And in exchange for that convenience, the seller can charge a premium for their property. It's not uncommon to be able to sell above your property's market value when offering seller financing, because lots of buyers want it. They'll compete for it and they'll pay for it. That's how it works on the

seller's side. Let's look at how it works on the buyer's side. On the buyer side, it's essentially the same, but this time you're the one making the down payment, taking ownership of the property and making your monthly payments to the seller. The huge advantage of this strategy is that you can negotiate stuff that most banks wouldn't dream of entertaining, such as zero down, lower than market interest rates, performance-based payoffs, payment moratoriums, deferred interest. The list of what you can negotiate is practically endless. For example, about three months ago, I purchased a property with seller financing, and I was able to negotiate zero down. And, and it was able to negotiate zero down. And a zero-interest loan and a six-month moratorium on the first payment while I fixed it up getting

it ready for my tenant. I finished the rehab early. It's already done. My tenant is in place and I still haven't had to make a payment yet. You see, you're limited only by your own creativity. And you want to start getting comfortable with this way of thinking because there's a ginormous opportunity on the horizon with creative investing strategies like this. You see, as the baby boomer investors age, they're looking to retire and want nothing to do with managing their real estate assets anymore. but they don't want to give up their passive incomes either. So as a buyer, now armed with this creative investing strategy, you can bring a solution to their dilemma,

offering to buy their properties via seller financing. And these sellers, they're pretty easy to find too. And I'm going to show you how to get a list of free and clear homes owned by baby boomers in just a minute. And if you noticed, I just mentioned free and clear homes, homes that have no debt on them, because that's the type of property that seller financing works best for. And what most people don't realize is that,

almost one-third of all the properties in the U.S. are owned free and clear. And anybody can buy real estate with seller financing, but most won't. And there lies your opportunity. All you need is a list of properties owned free and clear. And you can get one in your market for free by going to epicropstream.com, except their free seven-day access and then just download your list. If you like the service, after seven days, you can pay their very reasonable subscription fee. Or if you want to cancel, cancel.

Either way, you've got your free list of free and clear properties. To find these properties owned by Baby Boomers, just adjust your search criteria to a minimum years of ownership of 20. I just did that same search right here in Vegas where I live, and there are 8,343 properties owned free and clear by owners who have owned them for 20 years or more. And you'll be able to check your market in the very same way. And then you can download your list and you can just start contacting these owners and making your offers.

I contact them with direct mail, with text messaging, and the telephone. yet you can get the phone numbers of the owners from Epic PropStream 2. And a big time saver that I use and you might want to use it too, I go to this little website called Fiverr. Type in real estate cold caller in the search bar, and I have them call these owners screening for motivation, and when they find one, they set an appointment for me to call the owner back. Saves me a ton of time.

Now, when you find a seller that will give you seller financing to buy their property, all you need to do is just write it up on a standard real estate purchase agreement, noting the price on the contract, and then in the term section, list the down payment that you negotiated, the interest rate, and the term of the loan. And of course, anything else that you were able to negotiate. And from here, you could hire an attorney to put the finance contract together for you, but it's not necessary. I just give my title officer, the purchase agreement, a copy of my seller finance contract, and then she just puts it all together for me.

And if you'd like to dive in and make some quick money in real estate and flip a house in just one day while using my funds to do it, I'll show you how you can pull this off in your market right now at matsfreetraining.com. We'll be back with more right after this. Boarding for flight 246 to Toronto is delayed 50 minutes. What? Sounds like Ojo time.

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Concern by your gambling or that if someone close you, call 1-8665331-260 or visit Comexonterio.ca. Hope is not a financial strategy. Let's get back to work. A Rock Star got another live call for you today, and I will admit right off the bat that it's not my best effort. Although it did end up in a yes, not my best work. I noticed some mistakes and some things that I would have.

done differently. I said some things I wouldn't normally say. I did some things I wouldn't normally do. And, you know, as you're watching, take notes and see if you can pick those things out of how you might have been it differently or what you know where you notice there might have been a mistake made. And we'll compare it at the end. Oh, and the audio, not the best. We didn't have a great recording of the caller, but my producer did do the best that they could with the caption. So you should get the gist of the whole thing. We had to edit out a few spots that were a little rough. But it's all there. All right. So take a look and then I'll see at the Yeah.

Hi, this is Matt. And I know you're working with Jennifer and about your property potentially for sell in Florida. Yes. Okay. Oh, good to be right, right. So she was, she had to run out real quick. So she just left me some notes and I wanted to be respectful of your time and keep our appointment.

So is it still a good time for you? Yes, I can talk to you now. Okay. Very good. Yeah. She put a number of you. of different stuff that we're looking at right now that we might buy this week. And she thought yours was a good contender.

So I wanted to confirm some of the information I got from her and then ask you a few more questions. Is that okay? The condition of the property, you don't know. You haven't been there, right? Well, I don't know. My sister, my two years ago. And all my family members, so I don't know if those. Got it.

Okay. So hopefully we can save you from that. that for sure. So you really have no idea what the condition of the property is in. No, I don't. Okay. And then she said that there might be somebody living in it, that you don't know who that is, that person is either. Yes. Okay. All right. So we've certainly dealt with this before. We should be able to take care of this for you. If we chose to buy the property, are we going to need to pay off any taxes, liens or a mortgage or anything like that? There's no mortgage, just the taxes or due for this year and I refuse to pay them because I'm not

spending another penny on that property until it is empty. Okay, very good. All right, so we could probably take care of that for you as well. I'm looking at the most current market conditions. I'm still doing a little bit of research, but do you have an idea as to what properties like this one is selling for? I was never interested in property so I don't have a clue but I love what people that's telling me or different the quotes on. Okay. So did you and Jennifer talk about price at all? Well, she said she couldn't give more and you would have to do that since you write the checks.

Oh, oh, got it. Okay. Yeah, I definitely, I definitely write the checks. But, uh, all right. So I mean, the way it works with with real estate. is like we can really only pay what the market is willing to pay for us. So we just look at real estate course. So I'm familiar with that. Okay, perfect. All right. Super.

So have you considered, what's the lowest price you would likely consider for it? You tell me what your offer is. Okay. See, I have people writing all cards and sending the letters in the mail, offering me over $300,000 for it. Wow. Okay. And have they followed up with you and giving you an offer?

No, because they didn't call something to me in the mail. Got it, got it. Yeah, so I deal with a lot of people that have that type of experience. We see this all the time where real estate investors, quote-unquote, investors, they call themselves. They like to send stuff like that in the mail to where it entices you to call them. And then when they get you on the phone, right, right? well, then you probably don't have the first-hand experience. Maybe I can save you from that agony because they'll go ahead and they'll get you the call on one price

and then they'll offer you a different price. And then one guy sent me on a picture of a property that it's sold like down the street. Got it. And did that one have a price on it? Yes, it was over $350,000. Okay. I'm seeing that one too. So there were a couple, there was one for 350.

That might be the same one. There was another one for 360. And that was back in March and April. And I don't know if you. Yeah, no, I'm looking at it right now. So I don't know if you've noticed what the market is doing, but it's changed quite a bit. Nothing is sold on the last 90 days. In fact, the number of active listings has gone up quite a bit.

So. As I said, I'm not interested in properties in Miami. I don't like daughter. I would never live in Florida. Okay. So I haven't been looking at anything. Okay. I understand.

No, so what I was explaining was there's just a lot more available on the market and nothing is selling right now, not in your area. So that's what I was just saying. So there's nothing currently that is sold. In fact, there was one that sold just a third of a mile away for 127. I don't know if you, you don't know that because you're not interested in the area, but I'm just kind of sharing that information with you. So the 350,000, the market is adjusted. I've got a number of properties I'm looking at right now. And in order for me to stay in business and keep the lights on, I need to be able to make a little bit of money for myself.

So, and there's so much uncertainty with your property as far as the condition. And then somebody else that we're going to have to take, we're going to have to address and try and get them out of there. There's a big mystery. So what we could do is put it under contract at a price. We'll go look at the property and then we can bring back at all the information that we found and then kind of get a list of expenses of what it would take to fix it up and what it's going to take to get the person out of there. And then we could have that conversation then.

Would that be something suitable? I don't know if they're going to let you in that, first of all. Well, if you're the owner of record and we enter a contract, that contract will give me the right to enter and inspect the property with your approval, whether there's somebody in there or not. I know. Okay. So what we could do is we could enter the contract at a certain price, but contingent on the interior inspection. and then we could take care of that and then you wouldn't have to go to Florida.

I'm not going to Florida anyway. I understand. So. Okay. So I'm going to Florida. I put a slab on my sister and my family. And I'm, I understand. So, well, in that scenario,

what happens if you don't sell the property? I'm not paying anymore taxes on it, so they'll take it back in taxes. That's what's going to happen. with it. Okay. And you'd be okay with that or would you like to get some money for it? I would be okay with that because I've spent a lot of money on that house and I'm not spending anymore with my money. I'm going to be honest with you. And I would rather the city take the back in back taxes, whether I spend my money for somebody else to stay in that house. I refuse to

pay another penny on it. I understand completely. I wouldn't want to either. But I would like to. Oh, good. So what I would like to do is actually get some of that money back for you. Is that something you'd be interested in? What is your offer? Again, I would hate to give you a price, and then once I see the property, I wouldn't be able to back it up because it would be in terrible condition. On the other hand, I'd hate to go and see the property and discover that I could have offered you more. So I don't know where we stand because you haven't seen the property and I haven't seen the property.

Well, I'm not going down if you see the property. So whatever happened with that property at this point, I'm going to be honest. I really don't care. I understand, but do you care about getting some money for it? It doesn't matter. I've lost too much money already on it. I'm not spending another penny on it. Okay.

I'm trying to send you some money. I don't want you to spend any money. What kind of money are you trying to give more? Well, if I see it right now, per the market conditions, it looks like your property is worth right around the 300 that you're, you got the offer for. Then once we evaluate what the condition is, after I carve out a little bit of profit for ourselves, I'm anticipating we could be somewhere anywhere from, and this might be difficult to hear, but we could be as low as 120, like the one that sold just down the street,

or we could be as high as the 300 and everything if everything was fine. So we're right in a huge range. So what we could do is we could enter the, just kind of pick a number there in the middle, enter the contract, but we'll make it contingent on the interior inspection. And then once we go in and look at it, we'll get estimates on what it will take to restore it to its full market value. We'll share that information with you. And then we can. Well, you know you're going to have to restore it so that there's full market value because people living and they aren't doing anything. Because I pay for taxes or something after my.

I'm supposed to die. There was five years of back taxes. I paid back. There would be no house if I hadn't paid those taxes, okay? Sure. I understand that. So if we put, if we just put a tentative number of $200,000 on the contract and then we'll make that contingent on our interior inspection, then once we've done our inspection, we'll share that information with you

and we can make any adjustments if necessary. Would that be okay? Yes. Okay. So what I'll do is I will have, I'll speak with Jennifer. I'll have her write it up. And then when can she call you back when, do you have a computer, ma'am? Do I have a computer? Yes. Do you have access to email? I get my text messages on my phone. Okay. So the, what I would need is some way for us to have you authorize the contract. So I could do that via email or we could send a mobile notary over. Which one would be better for you? The email.

The email? I got it. I got it. Okay. So does Jennifer have your email address? Yes, she does. Okay. Perfect.

Got it. Okay. Would you have, would you want her to call you back tonight or would tomorrow morning be better for you? I got it. I got it. So I want to take it off your hands. I want to put some money in your pocket. Make it happier.

Try to sell that house. I understand. Let's just put it into it. You tell me what time you want Jennifer to call you tomorrow. Okay. I will let her know not to call you in the morning. Okay. We'll go ahead and we'll put it up.

And then if you have any questions, she'll be able to answer those for you. All right. You have a nice night, ma'am. Thanks, here. All right, so I made this call on behalf of one of my students. And there's a few things that I noticed after watching this again. first was I wasn't really in the zone.

I wasn't in game mode. I had just come off another call with a student. I knew I had an appointment coming up and I was trying to help my student with this call. And I think my mind was just kind of somewhere else. And I was maybe a little bit not rushed, but I knew I had somewhere else to be. So I was trying to wrap it up. And I really regret that part of it because typically I would have built a whole lot more rapport with this caller, particularly in her situation.

I mean, she had a sister that had passed away, and she was in, you know, several states over from where the actual property was. She had a really bad experience. She was tired of dumping money into the property. And those are all opportunities where you can really empathize the seller and really, you know, connect with them and where they get the confidence that you're on their side and you're really trying to help. That's how I would normally go about it.

It's how I always go about it. But in this scenario, I want a little too fast. I mean, I still went through the motions and it had all happened, but, you know, in hindsight, I would have done it, try to get that relationship a little bit deeper because even though we got the yes, later on down the road, that can impact one way or the other of how this ultimately will turn out. And the other thing I noticed was it's a little too easy. You know, I got the yes a little too quickly. And, you know, sometimes that all works out.

That's not a big deal. But I've had those quick yeses so many times. or enough times in the past and I've had, you know, a fast yes, but it feels like it might be a little bit reluctant and that was kind of the situation here. And when you get a quick yes or a reluctant yes or somewhere in the middle, somewhere on the borderline, you want to push back a little bit. You want to confirm that this is really what they want to do. And, you know, a lot of newer investors will have a tendency to, ooh, I got the yes, yes, score. Let's move on. Next step. And that can really blow up in your face later on down the road.

So you want to kind of push back and confirm, and that's, I didn't do that either. But we'll see how this turns out, right? That's it. And that wraps up the epic show. If you found this episode valuable, who else do you know that might too? There's a really good chance you know someone else who would. And when their name comes to mind, please share it with them and ask them to click the subscribe button when they get here and I'll take great care of them.

God loves you and so do I. health, peace, blessings, and success to you. I'm Matt Terrio. Living the dream. 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.