Epic Real Estate Investing - Why Won't Anybody Buy My Deal? | 693

Episode Date: June 24, 2019

If you can’t sell your flip, there are 2 reasons why you can’t. Listen to today’s episode and find out! Learn more about your ad choices. Visit megaphone.fm/adchoices

Making offers and cashing checks. What's new? What's Next? With Ashley Montaigne. Hey guys, what's up? This is Ash, Matt's assistant. My cat Cody has decided to join me for the making of this episode. So I am truly excited today. As always, Matt's got a great show for you ahead.

But first, I wanted to real quickly share with you what's new and what's next here at Epic Real Estate. All righty, let's start with What's New. in Flight Club where aspiring investors go to get their first or their next deal done. One of our investors, Devin, he has five deals under contract, three in escrow, and one closed. Holy wow. Congratulations, Devin. Super excited for you, super proud of you. Please email us at support at epicproacademy.com to get your pledge back. We'll send that checkout to you and keep it up.

Keep it rolling. If you're looking to get your first or your next deal done, go check out free real estate investing course.com. We'll have all the details on this awesome course there for you. If you'd like to join us, we'd love to have you. If not, that's okay too. All righty. So in the Epic Pro Academy private Facebook group, I wanted to share some of the wins. Our investor posted these last two weeks. So Tim closed a wholesale deal for a solid 10,000 in profit. That's awesome, Tim. Tony closed a deal and signed up two new tenants, which makes all of his rentals 100% occupied. That's awesome, Tony. Chris closed the deal and brought in $20,000 in profit. Josh, Josh got his second deal from what he calls an incredible and brand new

lead machine. He's had the privilege of beta testing. So I'm going to read a little bit of what he wrote in his post here. The seller actually called him to tell him that he'd chosen another investor with a higher offer. But since Josh and the seller are both veterans, it helped build some incredible rapport there. So what Josh did was he sent over an offer to the seller to match the other investor's offer. It was just a thousand dollar difference, along with a photo of himself when he was deployed, and the seller called him right back and told him that he was going to go with him for the property. That's awesome, Josh. Great rapport building skills there. Josh, that's awesome. Nate, Nate signed up for a virtual wholesaling course here at Epic Real Estate, and then he also said,

oddly enough, that his biggest win this past week was backing out of a contract. He ended up finding a home that had some foundation issues, and the owner was unwilling to drop the price to account for it. So he ended up backing out, and he said it was a great decision. Anita, she got a flip under contract. Ryan, he closed on an off-market property. He helped a seller who was facing a tax sale, and he says it should be a great flip for him. Jack, he also closed the deal this past week. Kevin, Kevin closed on a wholesale deal that he said had been dead for at least a year.

The seller said they had met with other investors the summer prior, but reached back out. to Kevin a year later because they liked and trusted him and they were finally ready to sell. Awesome. Great rapport building there as well. Justin, Justin closed on a lot with owner Kerry and Richard. Richard closed on a small $1,000 wholesale deal, but hey, paycheck's a paycheck. Thousand bucks. I'll take it.

That's awesome, Richard. Congrats. And Parker actually posted this separately from Follow Through Friday in our Facebook group, but I thought it was very profound, so I wanted to read it for you. So Parker, he says, for those of you, the ups and downs hang in there. Now we've closed six deals in the last 30 days and have 14 more in the pipeline. Don't stop. Just keep trucking longer than the next guy and you'll get there. It's not a sprint. Thank you for sharing that, Parker. Congrats on all the success that you've had and thank you

so much for sharing this with the other members of Epic. And I know this would be great for anybody looking for some inspiration or some motivation. My last win here in the Epic Pro Academy, Daniel, he shared a $9,000 win with a double closing wholesale. He's still not satisfied and he's going to keep on trucking for what's next. Congratulations, Daniel. Thank you to everyone who shared these past two weeks. All right, let's talk about what's next. We are officially less than a month away from the Epic Intensive, the lead machine workshop in Manhattan Beach, California, July 18th through the 20th. We are giving away some major bonuses to anybody that signs up. We are giving a paid in full one year membership to the Epic Pro Academy, Matt's all-inclusive online training vault.

So you get this bonus as an addition when you sign up. These scholarships are going to expire very soon here. So make sure that you sign up so you can get yours. But it doesn't stop there. So you'll also receive six additional bonus gifts when you reserve your seat. You get a free ticket. You get to bring a spouse or a friend to the intensive. You get to Matt's Epic Fast Formula to 10K in 30 days or less. You get a free e-book, the lead machine architecture. You get a copy of Matt's latest book, no agent needed, but you get that one at the event. And then you also get a copy of the book, Epic Freedom, and then you also get an I Buy House's t-shirt at the event. T-shirt. Tens of tons of bonuses. Tons of bonuses, and we hold nothing back at the Epic Intensive. If you'd like to

join us, go to Epicintensive.com. We also have a few VIP tickets left. So if you'd like to join us, Have a VIP experience, which includes a yacht. You can upgrade your ticket. It's the second page in the registration process online. And we're excited to meet all of you there. Already, that's all that I have for you guys today. See you guys next week for another segment of what's new and what's next. Enjoy the show.

Hey, rock star Matt here. And I just wanted to thank you. Thank you for listening. Thank you for sharing this with your friends and your family. at almost a decade running now, we just wouldn't be here if you weren't doing that. So I'm really grateful for you

and I've got a really good show for you today as well. But before we start, I wanted to ask you a really quick question. I was just thinking, and I'm curious, are you breaking the bank right now on your time and your money,

spending more and more on marketing, trying to buy discounted real estate. Because real estate investing trends, the trends have really gotten out of control lately. It's time to go back to the basics. To buy discounted real estate, you only have to focus on three things, just three things. One, contacting leads, two, setting appointments, and three,

making offers. And if you want to crank it up, setting up a really good automated lead machine, that's the way to do it. Do that and you're good to go. And before we get started today, this podcast, as you know, it's all about finding discounted off-market real estate deals. And if you're really serious about finding these types of deals and finding them at will, then you might like to join us at the upcoming live three-day epic intensive lead. Machine Workshop in Manhattan Beach, California. It's July 18th through the 20th. And if that sounds good to you, then have a look at epicintensive.com.

Now, let's get started with the show. Boom. Today we're going to talk about flipping properties. And the main thing we're going to focus on is why isn't anyone buying your deals? This is Terrio Media. But before we get started, if you're serious about finding discounted real estate and if you really serious about finding deeply discounted real estate, then you might like to check out a test program that I've put together, shows people how to do just that using little to no money.

And you can check that out over at free real estate investing course.com. All righty. So when it comes to flipping real estate, and I'm talking about flipping real estate, I'm talking about whether you're flipping it after you fixed it up or you flip it before you fixed it up, or if you're flipping it before you even own it, if you just have the contract, if you're going to be flipping the contract, we all. know that we need to find a buyer in order to make that happen, right? But a huge thing that holds people back is their lack inability to find buyers. And people get stuck, worried about

getting stuck with the property. They get worried about canceling contracts. How are they going to look? They don't want to do that to the seller. They think they're going to look bad or they get a little nervous about having to go back and renegotiate with sellers. And it all makes sense. I mean, we've all been there. If you've been in this business for any length of time and got a few deals under your belt, you certainly have been there if you've ever flipped any properties. You've had one of those properties. That was just difficult for you to find a buyer for, right?

And there are really only two things. Here's the thing. Two things or two reasons as to why someone will not buy your deal. Okay, the first reason is you don't have the exposure. You haven't shown it to enough people. There's a basic tenant of marketing. that says exposure creates demand and demand drives value. And all you have to really do is just focus on the exposure.

And with today's access, the reach that the Internet gives us, you don't have to do a whole lot to achieve some super huge exposure. And so that's typically not the issue for people, lack of exposure. Sometimes for sure. But the second reason is, it's not a deal. And a lot of people don't like to hear that. And,

you know, what is a property worth or what defines a deal? Well, what defines the deal is the market. What is the market willing to pay for that deal? And what most people don't realize is

there's more money in the system than there are deals. And when you have a deal, there's no shortage of people willing to throw their money at you for that deal. And so, I mean,

imagine this. You are a real estate investor. You get up each and every morning to go find your deal. And you're like, oh, my gosh, if I find a deal, hopefully I'll be able to find the person with the money. That's kind of what's going on through most people's head. Some variation of that story. Little that you know is the lender,

whether that's a private lender, whether it's a hard money lender or the conventional lender, the guy sitting behind the desk over there at Wells Fargo or Bank of America. They're over there. They get up each and every morning. Gosh, I've got all of this money to lend. Hopefully, someone's going to walk through my door because someone's going to call me with a deal. Both sides don't realize that that's the conversation that the other one is having.

So there's no shortage of money in the system for your deal. And I want to tell you what there is that you can actually do about it. But if you want to find more deeply discounted real estate without breaking the bank, go check out free real estate investing course.com. That's what we do over there. And it might be a good fit for you. Take a look. And if it is, join us, already.

So if you get your deal under contract and you're unable to find a buyer, what do you do? Well, here's what you do. First thing is, you've got to really handle it before it comes up, meaning something that we use over here called transition agreements. And they're essentially kind of what they sound like is you make a new agreement verbally in every transition of the transaction. And really, it's just all about. expectations. So you're a Mr. Seller. This is what I'm about to do. And when I'm all done, either we're going to do this or we're going to do this. Is that okay with you? So by laying that

foundation of what's going to happen and then this is what I'm going to do, this is what you're going to do, and then we're going to have this come to this meeting of the minds and we get to make a new decision at that point. That's what's called a transition agreement. And so you're setting the expectations and you are getting, letting the person know it might work out. It might not. So a transition agreement, right after you get the contract signed, it might sound something like this. Okay, Mr. Seller, I think I got everything I need. I'm going to go ahead and I'm going to start my due diligence. This looks like a really good property. I think it's going to be a great addition to my portfolio. But I won't know for sure until I finish my due diligence. And based

on, you know, what you showed me in the basement, that, you know, that little crack on the wall, I don't think it's going to be a big deal. And I'll know more later on. And if it is, I'll bring it up. And if it's not a big deal like I don't think it is, then I won't bring it up. Okay? And also, if it turns out that this doesn't really fit my criteria for my portfolio based on what I find, don't worry about. I've got a network of other investors that are probably more than likely to go ahead and take it off your hands as well. What's most important is that you just get what you were promised in the time that you were

promised it that you want to get your money on that closing day. Is that right? Okay, perfect. All right. So that's a transition agreement. And you laid the foundation up front. for things that could potentially go wrong. And I snuck an extra one in there.

I don't know if you noticed. But the first thing is, just before I'll remember one little thing about the house after taking the tour of the house after I got the contract signed. And it might be a little crack in the basement, like I said. It could be a stain in the ceiling, like a water stain or something like that.

Just anything that you noticed that's not perfect about the house. And just kind of bring it up. Hey, I noticed this over there. There's a water stain in the corner. I don't think it's a big deal. It doesn't look too bad. But I'm going to have it looked at.

And if it is, I'll be sure to bring that back up and then we can decide what we're going to do with it then. All right. So you're leaving yourself a spot to where you can come back and freely negotiate because they gave you permission to, right? That's one way. Then the second thing that you want to keep in mind is you're going to always make the market the bad guy. Because you're not, you're going to have a little bit of resistance and might butt heads a little bit. If you come back and say, you know what, I can't sell it.

or you know what, I can't buy it. It's not worth it. You don't want to say anything that's your opinion. It's the market that's gotten in the way, right? So the market is the bad guy. The market dictates what a property is worth. And you know what, Mr. Seller, after I conducted my due diligence, I noticed that there were some other sales that happened over here, and that's kind of adjusted the market a little bit. And then I know you and I, we both thought that this needed repair and we've kind had an idea that was going to cost this much. But after the inspector looked at it, and I had a couple contractors looked at,

turns out it's going to cost way a little bit more than we thought. So that whole time, I'm blaming the market. I'm blaming the inspector. I'm blaming the contractor. This is what they found. I'm not coming back with my opinion. And you get a much smoother, easier transaction that way. You get a much more cooperative seller.

And because you're using logic with it and you're using the emotion by being on the seller's side. The market's getting in the way. All righty. So that's how you do the two ways that you can handle it. And the thing that I always like to say there, well, Mr. Seller, this is what the inspector said and this is what the market is doing. So the property just isn't worth what we thought it was worth when we entered the agreement. So how much of this are you willing to share with me in this newly found liability? And then you just be quiet and you wait. You wait for the answer. That's a really nice way to say it. We have found, we have a new discovery. we have noticed something and it's not good news. It is a liability and it is newly found. So Mr. seller and Mrs. Seller,

how much of this are you willing to share with me? And just wait. And if whatever number they say is acceptable, then boom, you get the amendment to the price and you move on. Okay? So those are the two ways. And by the way,

if you're serious about your real estate investing, check out the free course, free real estate investing course.com. And I'll show you how to do all of this and much more, elaborate means and give you the scripts and everything and the dialogue that we do. We use a few of those transition agreements in different parts of the transaction. And they work wonders.

They build rapport. They make you likable. They make you trustworthy. They demonstrate that you are competent. And it just creates much better communication between you and the seller. It creates a much more cooperative and smoother transaction. So you can get the list of all of those things over at free real estate investing course. already so where were we?

Here's what we know. If you can't sell your flip, there's only two reasons that you can't. One, you haven't told enough people about it. You're lacking exposure. Second, it's not a deal. It's not the deal you thought it was. And the best way to handle that is up front before you actually need it. Another word or phrase that you use for the transition agreement is something called an

upfront contract. You'll hear those things use interchangeably. same thing. So you handle it up front before it becomes an issue. And then the fourth thing that you want to remember is you're always blaming it on the bad guy. And the bad guy is the market in this instance. All righty. And don't forget, go over to free real estate investing course.com. And if you like what you heard, join us because this is what we do. This is what we do all day. We make a bunch of money doing it. All righty. So good night. God bless to your success. I am Matt Terrio, living the dream. Take care.

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