Epic Real Estate Investing - The Michael Douglas Episode | EREI 168

Episode Date: August 17, 2015

We often discuss how to talk to sellers on this show, but we thought it might be helpful to hear it first-hand.  Today Matt is sharing a call from one of his coaching clients, Doug.  Doug recorded his very first motivated seller call for feedback from Matt.  Listen in as Doug learns more about this potential deal, then learn how Matt advises him to proceed. ------- The free course is new and improved!  To access to the two fastest and easiest strategies to a paycheck in real estate, go to FreeRealEstateInvestingCourse.com or text “FreeCourse” to 55678. What interests you most? E ducation P roperties I ncome C oaching Learn more about your ad choices. Visit megaphone.fm/adchoices

Hey there, Matt here. Real quick. Recently, I held a brand new epic intensive live event where one of my really good buddies was on hand, Matt Andrews, to share his techniques on generating free, motivated seller leads using Facebook and YouTube. Now, this wasn't any ordinary social media training. In fact, it wasn't social media training at all. It's way beyond that. What he does is he leverages Facebook and YouTube to hack into search engine results. I didn't even know you could do this, but sure enough, I'm doing it and it's working. Matt calls this technique search. engine hacking. Really ninja stuff. And it's free to do too. So what I did is I pulled out a good clip of this training from the live events video and I put it up online so you could check it out,

steal it, use it in your market and make tons of money with it. You have our permission. And it's live right now. So go to search engine hacking.com and it's there waiting for you. I won't have it up there forever, but it's up there right now. So go to search enginehacking.com. All rightyty, now on with the show. It ain't what you don't know that gets you into trouble. It's what you you know for sure that just ain't so. Flipping houses can make you rich, but holding them will make you wealthy. Subscribe to a new real estate investing podcast. Hold That House with Matt Andrews and Matt Terrio.

Subscribe for free. Listen, learn, and earn. Hold that house. Subscribe today. This is Terrio Media. Broadcasting from Terrio Studios in Glendale, California. for Epic Real Estate Investing with Matt Terrio. Hello and welcome.

Welcome to Epic Real Estate Investing, the place where I show people how to escape the rat race using real estate. You just got to shift your focus from making piles of money to making streams of money, change that one thing just one time, and you are on your way to financial freedom. Now, it's not the most exciting path, but it is the fastest. And once you get there, life then becomes exciting. And if you'd like to get started the same way that I did, if you happen to be in a similar situation as I was when I started with little to no money,

I really had none, and I had even worse or less of a credit score, if that's your situation, you're going to love what I got. If your situation isn't that bad, you're going to just, you're way ahead of the game. So you can access a free course that I created just for you at free real estate investing course.com. Free real estate investing course.com. It is over there waiting for you right now. Now. All righty.

As I was, you know, sorting through a bunch of ideas this morning and assorting through my Rolodex of guests for what are we going to talk about today. And an email popped up. I received an email in my coaching inbox from one of my coaching clients, new coaching client, Doug. And Doug, he is new. He is just getting started. I mean, he's purchased a few income properties from us already from from cash flow

savvy, our turnkey investment solution. and but a few months ago he just kind of decided I want to be a little bit more hands on so he signed up for coaching with me and he's got his first direct mail campaign out and he's starting to get some phone calls and he'll admit he has no idea what he's doing or what he's talking about but but he's put his faith in moving at the speed of instruction and that he is he is doing that and he's doing it perfectly Anyway, in this email he sent to me this morning. Attached to it was an audio recording of a call that he had with one of his leads. And basically, he just asked me to listen to it and tell him what to do next.

A la moving at the speed of instruction. He's traveling as far as he can see. And when he gets there, he's trusting that I'll show him what to see next and how to see further. So let's listen to the call. And then what we'll do is we'll compare what you would do next and what I suggested Doug do next. All righty? Here we go. Hi, this is Doug.

Hi, how are you? I'm good. Is this Angela? It is. What's your name again? I'm driving. Doug, like Michael Douglas. Okay, Doug.

How are you? I like that. I like that. I needed that laugh, okay? I said like Michael Douglas. I need your help. Okay. I do.

I need it bad. Yes. Let me tell you. I got, excuse my French, but I really got shit it on, okay? Okay. I went in with another guy back in before the market went under, and he and I both, quote, unquote, was supposed to have bought that house on Sharon Street. Okay.

How did it end up with just my name? And on top of that, they've got other investors that are in on that house, too, And I think those investors jumped in on that house when they knew they were getting ready to get that stadium and stuff going over there and all that. Oh. So now, from what I understand, I just got a certified letter from the city saying the grass is too high. I'm sending a guy over there to cut it. But now, but now it's so many, I think it's a lot of liens on it because it's not, I don't know if it's liens or if it's just a lot. of other investors in on that house okay so well no um not a not about liens with multiple

investors it all depends on how the title or your deed is written out to now if it I don't even know where that is I don't know anything I didn't even know the thing was just in my name okay okay so crazy but it has your name it does have my name okay it does have your name okay It does have your name. We got to look in to see if there are actually anybody else other than you. Now, I found your name on, yeah, I found your name on the county record. We have to look into see, yeah, well, one step at a time, Angela. So we'll figure out, first off, we just really need to figure out how many names are listed on this title.

That's the problem, right? It has to be everyone because there's some sort of partnership that's went on. Now, if it is truly your own name, then heck, you got control, let's get it out of the way so we can get you a piece of mind. What I want, Michael Douglas, is if that's the case, and I can do that, all I want you to do is, let's see what we owe on those back taxes. you know, we pay the back taxes, and that's it. You can have it. I don't care about stadium coming, because a lot of people say, oh, you should sit on the eye.

I don't want that shit. I don't want it. You can do what you want to do and make a mansion. All right. I don't care. Sit on it and then let them hold it for parking. I don't care, but I don't have time to deal with it. I just don't.

Okay. Let me go. I'm going to go talk with my team about this, but I'm going to really need to do a little bit more digging about this place. What is the name of the property? Or the property address? You would ask me that.

You got it on that piece of paper. You mailed me. Hold on. I'm sorry. I'm in the car. That's why. Yeah, I'm in the car. Hold on.

It's 13th Sharon Street, northwest. Okay. Okay. Okay. 13 Sharon Street, Northeast. All right. And, all right. Is there currently anybody living in that place?

Oh, no, no, it's boarded up. I had to board it up. Oh, really? Okay. I had to board it up, yeah, because it was vagrants. And, you know, I mean, it didn't fall. I didn't know about all this stuff to the city, start getting on me about it, you know? Oh, okay.

So I had to pay this guy like $2,000 to go in there and fix it up, board it up, bring it up the code. I had to go back to court, you know, I'm dealing with all that kind of crap. God, it's pulling, it's pulling your hair out. I mean, I can't do it. with it and then honestly I just wanted it to just be like bewitch blinking that go away and it didn't so I just got a certified letter today along with your letter saying the grass needs to be cut so I called this guy and he's going to go over there and cut it and all of that okay you're my you know what you're my you're my top priority today I'm going to get you on that I love you Michael

Douglas I love that I love that so I'm okay I'm going to I'm going to keep you in the loop day by day, okay, so we're going to get the situation. And I tell you what, text me. A lot of times I'm in a meeting or something. You can text me at this number here. Are you here in Atlanta or are you in California? I'm in California because I'm here. However, I'm traveling to Georgia next month because I got several properties out here, out in Georgia.

Okay. I didn't even call you for early. I thought maybe you might have been No, the 404 number. You know what? It's my way to help connect with people because people when they see a number they don't recognize, they're just like,

oh, who is this? What is this? I'm a very comfortable person, so I'm like, okay, you know, I'll throw in my Georgia number as well too. And from there, it's fine. I mean, there's the most important. Well, that's when I saw the San Francisco address and then an Atlanta area code.

Yeah. Okay, well, you make me priority and you can text me because I'm in and out of meetings and doing stuff. I sell insurance, so. Oh, okay. Home insurance or house home? No, I work with a lot of seniors. I don't do the home stuff. I don't do PNC.

I do a lot of, I work a lot of seniors and stuff. Yeah, the Medicare advantages and the supplements and, you know, all that good stuff. You got it. Just text me or call me if you have to, but if you text me, I'll hit you right back. I know what you're saying. Yeah. You're in the middle of saying you got it. I'll be on top of that.

So yeah, just see what you can find out. And I mean, like I say, I don't want to get any money in my hand. I don't. I just want those taxes paid on it and y'all can have it. I did another property like that he did to me over an East Point. a guy just like that. And he just paid the back taxes and it was his. So I'm like, good.

Yeah. Good ridden. So this one might be a little different. I know it is, but I don't know what else to do. And I just said, I've got to get me an attorney to get out of this crap because this is crazy. But if it all can work it, then work it. Okay. What kind of amount of back taxes you got going on?

I have no idea. Two years, three years. Okay, no idea. All right. I don't know. I have no. idea. I have no idea. No, none whatsoever. So, okay. And it might be that I might still have to owe something because the house file ain't worth a flip. But the area, I'm telling you, that area over there,

they're building that new dome, the Georgia Dome, that whole area over there, I think, and I might be crazy even selling it like this, I should sit on it. But I think they're going to come through and get, and want some parking, I swear, I swear, I'm thinking it's coming. That Dome is only like a block way. Yeah. But hey, let's focus on your piece of mind first at hand instead of that Georgia Dome because that one, who knows? It might be almost a good thing, but it won't be much I can do with it if everyone else that's on there is not agreeing to sell to the city for the parking space that they're probably going to be looking for when the dome is complete in about two or three years.

So it might be a good thing for you. So look into it. Get with your fault. See what you can do. Text me, call me. We'll take it from there. Okay. I'm going to definitely text you because that's what you prefer.

So we'll do that way. Or if you, you know, if you need to call me, call me in front of all your group of people and everything. Then just call me. We can, you know, we can do that too. But that's my plan right there just to do it all like that. There's no mortgage or anything on it. Oh, it's all paid out. Yeah, the mortgage company that had it folded under.

Oh. How does that work out then? I don't know. I'm just telling you what was told to me. Okay. You'll see all that probably when you pull everything up. Okay. Got it.

All right. I'm going to plug you in. All right. When I see a number come up, I'm going to say it's Michael Douglas call. I got to get it. So. All right, Angela. Don't think about this.

Don't get shed it on like I did. How about that? I must have been. No. I feel to go through and do that. I'm like, why did I let this man make a fool of me like this? That's all right. If I had food with him on my head when I went up that morning.

But I'll be looking forward to hearing from you. Likewise. All right. Thank you. All right. Take care. Yeah. Have a good one.

Okay. Bye, bye. Bye. Okay, first, big round of applause for Doug and his first motivated seller call. He did a fantastic job. So you heard Doug answer a lot of questions that I know many of you are actually afraid of receiving. And you'll notice that it's not a rocket science. Just to answer the question.

There's no secret answers to these questions. I mean, if the motivation of the seller is truly there, your answers for most of the questions, they don't even matter. right? They feel like a scary question and then you answer it and then you're right on to the next subject because really all that seller is concerned about is selling their house. So don't worry about it. And for all of those that wonder, here's another thing to learn, for all of those that wonder, why would anyone ever sell their house at a discount? That's probably the most common question that I get at my live events where I have a lot of new investors in the audience. Why would anyone sell it at a discount when they could sell it for full price on the open market? Well, now you know.

Life gets in the way. You've got people that own property that have made some bad decisions. You've got some people that are just kind of experiencing bad circumstances. They've had some bad luck. Or they just did not get the result that they thought they're going to get when they originally got into it. Whatever it may be, life happens. And that's what creates motivation. You know, a house is very important to you and I.

This is how we make our living. This is how we make money. For a lot of people out there, it's just a house. And for a lot of people, that house may be a pain in the butt that they just want to go away. And then that's where we step in and they trades their peace of mind. And in exchange, we get some equity. We give them peace of mind. They give us equity back. All righty. So that's a second thing there. And then what else? Oh, also that I think a good lesson there was, don't worry about not knowing everything. Because as you heard, and I think we heard it a couple

weeks ago with another seller that we're listening to, most of the time the sellers don't know anything either. So don't worry about having to get this right. Don't worry about having to be perfect and know everything A to Z before you start getting the phone ring. Most of the time, the sellers don't know anything either, right? So let's talk about what we're going to, what we originally set out to talk about. What would you do next?

Based on what you heard, what would you do next after you hung up the phone? And I'll let you think about that. And while you're thinking about it, I'll tell you what I told Doug to do. So I said, Doug, first things first, you got to get the property under contract. First thing. And probably even more so than this than any other deal. I mean, that's always the first thing. But really here.

And the reason why is because there's a little bit of work to do here, right? Or a lot of work to do. I mean, you've got to research title to make sure that she is the only one on title and that there's no other decision makers in play. So you've got to search title for all of the list. liens that Angela mentioned. She mentioned all there's these tax liens and stuff and who knows what else is on there. So now you've got a search title for that. And then she also mentioned that the property was boarded up, but it's been boarded up for a while. So it's pretty safe bet that you're

going to have to, you're going to have some repairing to do. There's going to be some rehab necessary. So you definitely have to go in and get an estimate of repairs. So all that together, there's some pretty time intensive work here that needs to be done. So before Doug goes and invest his time and all that work, he needs to get control of the property. He's not going to go out there and work for free, and I don't want you to go out there and work for free either. You've got to get control of the property. And what did she say she was willing to sell the property for?

She said, you can have it. I don't want anything, she said. Just clear all the liens and the property is yours. You can take it. So what do you write on the purchase agreement to get the property under contract? What do you write? Do you write zero? No, you don't.

In order for a contract to be valid, for a contract to be valid, there must be consideration offered for that agreement. And $0 doesn't count as consideration. And we can go deep into what consideration means, but $0 doesn't count. So it needs to be at least $1. So I just recommended Doug to write in $100. Write in $100, get it under contract, open up escrow, and then have a title search done. Let the escrow officer, the title officer, the closing attorney. attorney, let them do the title search and learn what the liens all add up to and make sure that

she's legally the owner, and that she's the only owner and then find out what all those liens are, those tax liens if there are any. And maybe there's some other types of liens on there as well. She said she's already getting calls from the city about weeds and stuff like that and grass. So maybe they've got a weed abatement or a weed lien on there. Who knows what there is? We've got to find out.

So that would be the next. then, you know, once you've got an assessment on that and you got all that work performed, run some comps. See what the property's worth. Because it's not uncommon that you find a property where there are more liens to be paid and more repairs to be completed, of which amount up to more than what the property is actually worth. Like those tax liens could be $50,000 bucks and there could be $20,000 worth of repairs. That total $70,000, but the property might only be worth $40.

So you definitely want to know what the property's worth and you want to know what's owed on it before we take that that next step. Okay. We want to find out what the property is worth and we'll just cross that bridge when we come to it. Maybe there's something we can do. Maybe there's not anything we can do. But those are the two basic pieces of information we want to know. What's owed on the property? What's going to be required to get it at least starting at zero.

And then you want to know how much you can get out of it should you not want to hold on to it yourself. All right. So what we want to do here. is we want to get control of the property, get under contract. That's the first step. Let's just do that. We're just going to travel as far as we can see. And when we get there, then we'll see further. Then we can cross that bridge when we come to it. All righty. So great job, Doug, rock star. Contrary to popular belief, a lack of funding is not the biggest barrier to starting a business. It's excuses. But don't let a lack of funding be your excuse. We are epic fast funding. And we'd like to fund your business with up to

$150,000 in revolving credit lines. If you've got 60 seconds and a solid credit score, you could have access to your funds in as little as seven days. Go to Epicfastfunding.com to fill out our 60-second application. It's fast, it's simple, up to $150,000 in as little as seven days. Go to Epicfastfunding.com. That's it for today. I'll see you right here next week on another episode of Epic Real Estate Investing. I'm Matt Terrio. Living the dream. You've been listening to Epic Real Estate Investing, the world's foremost authority on separating the facts from the BS in real estate investing

education. If you enjoyed this show, please take a minute to visit iTunes and share your thoughts. Thanks for listening. We'll see you next time here at Epic Real Estate Investing with Matt Terrio. This podcast is a part of the C-suite radio network. For more top business podcasts, visit C-desweet Radio.com