Epic Real Estate Investing - Your First Real Estate Deal | Wholesaling Step by Step | 1246

Episode Date: November 29, 2022

When it comes to wholesaling, people have lots of questions. Some of them are: What market do I pick? How do I find motivated sellers? What do I say to them? How do I know how much to pay? Where do I find a buyer for my deal? Seems like a lot of questions, but don’t worry. Listen to this episode and you will hear all the answers. Make your first step right now! Are you ready? Let’s go! Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terio Media. If you're still trying to get that first deal done, you're in the right place. I'm going to give you everything you need to make that happen right now. And if you commit to listening, following instructions, taking consistent, persistent action. If you commit to that, we'll get it done in the next 30 days. 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-EI.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 R-E-I-Aase.com. Here's Matt. And if this is your first time here, what we do here is we show people how to invest in real estate so they can retire early. And we've helped many, many, many people do that. But that very first deal is frequently the biggest challenge. And once I get my private clients over that hump, their early retirement moves from dream

to a realistic and legitimate possibility. So let's just forget about, though, the early retirement for now. And let's just focus on that first milestone, your first deal. So I'm going to walk you through a very basic and an easy-to-follow plan to flip your first deal in the fastest way possible so that you can put some money in the bank. We'll go step by step. I'm going to share with you a number of resources that you're going to want to write down. So grab a pen, grab some paper.

Some of these are free. Some are not. Some will compensate me for referring you to them and others will not. But what they all have in common is I use them all on a daily basis in my own business. And here at Epic, we flip 10 to 15 properties per month. And we average picking up a rental or two every month also. So get your pen and paper ready as I'm going to walk you through this pretty quickly. But after we're done, if you'd like some additional details and some additional help,

I'll show you how to get it for free. In fact, it's better than free. I'll actually pay you to get some additional help. And I'll explain why when we're done. Now, I'm going to walk you through each step, but real quickly, let's just address the big elephant in the room that everyone is thinking about. Is this a good time to start investing in real estate? Well, the quick answer is it's always a good time.

And here's why. We've got more people than we've got houses, a lot more. So if you can get in and learn how to control the supply, the houses, you've got job security for the next decade at least, and you'll probably be disgustingly wealthy in half that time anyway. One criticism that I frequently get is that I make this look too easy. Well, it's not easy, and it's not get rich quick. But if you want to be wealthy, this is the best shot you got,

and it doesn't take a lifetime to pull it off either. And that's not my opinion. That's what the stats say. Real estate has created more wealth for more people than anything else. And sure, there's other ways to create wealth, but per the statistics, the odds of you make it happen over there are less in your favor. less. See, I did all that research up front, and that's why I chose real estate. It's where the average person has the best shot at joining the 1%. And when I got started, I was feeling well below average.

So here we are. And real estate kept its promise. And it'll keep its promise to you, too, if you keep your promise to it. All righty. So I'm going to get to the step-by-step playbook for your first deal in just a second, but this is important right now. What I'm talking about is the current shifting market. Is this really a good time to get in? Because it's interesting. When, when prices are are high, people wish they would have started when they were low. And when prices are low, people want to wait until the market bounces back. So if that's you, not going to make it. Buying high and selling low is a one-way ticket to the poor house. There's no better time to get started than right now. The market is shifting. Prices are softening. And this happens all the time.

And what also happens all the time is that prices bounce back. And it's my opinion, they're going to bounce back quicker this time than they have in the past. And for a couple of reasons. One, demand is being artificially suppressed per the Fed's monetary. policy. They can't keep it up forever. I don't think they can keep it up much longer because we have a significant imbalance of the population to available housing. We've got many more people than we have houses available. They're going to have to loosen their policy to encourage builders to build more, of which will inherently produce greater affordability for homebuyers. And number two, with the internet and social media completely entrenched in society and our way of life, everything happens now much

faster. You know, in previous market downturns, it would take a while for the public to learn of discouraging or encouraging news. We live in a world today where a simple tweet can spark a death spiral in the markets, or conversely, send the market right to the moon. We've seen it happen multiple times in just the last few years. Besides, timing in the market has been a losing strategy for most. So get in and buy right, and you're going to be all right. Okay, so I'm going to move over to my desk and show you exactly how I do this.

And if you're listening on the podcast, there's going to be a lot of visuals. So if you like what you hear, you're probably going to like it even more if you see it. And so you can find this video at EpicR-E-I.TV by the same title as the podcast. All right. So I'll see you at my desk. All righty. So let's get started. Step one.

And that is by picking a market. My little rule of thumb for picking markets is we want to look at the minimum population of 100,000 people, a median price point between $200,000, is kind of the sweet spot. It's not a hard number. It's just kind of a rule of thumb. You can certainly go outside of that, you know, 10 years ago, 12 years ago, I was wholesaling, properties in Los Angeles for $500,000, $700,000. So it certainly can be done in all markets, but the odds are a little bit more in your favor

of getting the deal done in that price range. All righty. So if your market qualifies as that with a minimum of population of 100,000 people and you've got a neighborhood or a county or a city somewhere where that being price point is between $2,000 and $3,000, I would recommend you stay there. I think you're shot at getting a deal done. Your first deal done is far greater that you can be there in person. Now, you can do this virtually, and I'm going to show you how to do it virtually,

but you're going to miss out on some opportunities because you are doing it virtual. You will be at somewhat of a disadvantage if you are trying to buy the same house. Someone that's local is trying to buy. You can't underestimate the face-to-face relationship or the rapport that can be built when you're dealing face-to-face. So there's kind of two places that you're going to look at. I like this little website called Realty Track. They've been around forever, but they keep adding new stuff, and you might want to check it out. If I just picked any old city, I'll just say Las Vegas.

Go here and I want to see if we have the world price point. So if you go to resources and just go to market trends and you can see our median price point is 324, it's close enough. I'm okay with that. So there's 300,000. And then I would just go to Louisville, Las Vegas population and boom, 600,000. So we got at least of 100,000.

So checks all the boxes. So Las Vegas, I live here. This is where I'm focused. So if your market doesn't check those boxes, then you can look for other markets that you think would be appealing. But how does it that come? And this is put together by one of my students. actually RIA student, Josh Miller.

He put together this really cool research tool. And here's a video. It's pretty elaborate and pretty intense. So here's a little video. It's about 10 minutes long. She'll see how to use all of these features. So you can look at all the cash sales in the area. You can pick your market based on demographics.

You can pick your market based off of MLS data. You can research land as well. But a really nice shortcut is this, just pick out the best markets. And we can just go to our population right here. And I could just say, say 100,000 to a million and competition. Competition meaning there's almost no investor activity there at all. 11 means there's a lot of investor activity. I want there to be some investor activity because I want there to be some game in town.

It's not rocket science. But at least that narrowed it down quite a bit, right? And then here's my price point. So I can say 200,000, breathe it. But now I've got all of these markets. This is what's left with these dark blue spots. And then I can go and sort these by based off the population, based off the competition. At least the competition is right there in Johnson,

County in Indiana, St. Charles, Missouri, Douglas County, New England, peak of where your competition is going to be, Burlington County, New Jersey, Fayette County. All right, that's a really cool little tool. Help you pick a market really fast and maybe want to pick out a couple of them. There's another tool that I've been using to help me pick markets, and you might have heard it before, Privy. Well, it's nice about Privy is you can go in and look at where all of the fix and flips are happening, where all of the investor-tivity.

is. But this map, and I'm going to use this several times, we've got a step-by-step training because it's got a bunch of really greatures. Here in the blue, that represent where they have direct MLS access. In the yellow is where they have third-party MLS access. So if you use PropStream, that's third-party MLS access. So that's where they have that. And then everywhere else where you don't see a color, that's just public records.

And then these spots here that you see in red are direct MLS access coming soon. Right. So if I were just to say, jump in here to St. Louis, you can see these little blue clusters. This is kind of showing you how many deals are there. So here's six. side of 46. That means there's a lot of investor activity there. So I'm going to zoom in on that. I'm going to go for the fix and flips. And it's showing me where all the fix and clips are

happening. So this is someone that purchased their house and sold it within a 12 month time period. Here's all the fix and flips that have sold in the last year. So you can kind of look for these little clusters. All of the kind of right in here, this could be a really good market. There's a lot of fix and flips happening there. I can just kind of check my area up to see is there any investor activity there or all. And so you can kind of use this to checks and balances, say, against the hottest zip.com. All right, so we picked on market. Next, we've got to pick a list.

Who are we going to reach out to? So we're going to be looking for distress. We're going to be looking for people that are behind on their mortgage payments. Over here, a realty track, they've got some of this access. You got foreclosures. You got pre-foreclosures. You got bank loan properties, got auctions. You are looking for people that are willing to sell their house at a discount,

want to sell it quickly. So our whole idea is we're going to exchange equity for peace of mind. So we've gone through some sort of distress. It's financial distress. it's personal distress or maybe the property itself is in distress. There's so many different lists and a lot of them can be found right at your county quarter's office. So this is Clark County, every website is a little bit different place.

So you have to do a little bit of research. I can go over here and search the records at the county. And then I got all these different types of searches I can do. But I'm going to go over to document type and I can look for different types of document groups here. And I can look for notices, which might be something I want to do or any sort of restrictions on the property. or I can look for liens,

anything having to do with the IRS, foreclosure documents. Okay, so that's one way you can get lists. Then there's a bunch of other services, and I already showed you one Privy. I subscribed to multiple numbers of these, and a lot of them have a lot of overlapping area to where features would be redundant.

But each one of them has their own little things that I like, that little nuances that I just can't be without. One of them is PropStream, which is probably one of the more popular ones. I think it's $99 bucks a month, and you get abscess to all kinds of stuff. This is Epic Property Fighter. This is the version we give out to our REIA's clients.

But inside, it's the same engine. But you can pull all kinds of the lists here where, for example, we have the auctions here, but I equity, you got vacant, you got liens, cash buyers, bank-owned properties, pre-foreclosures, and you have full access to the multiple listing service. In Privy, you've got a lot of the same data. If I went overhead to their filter, foreclosure, senior owners, entire landlords vacant these zombie properties. You can get all of those.

That's just the vacant properties. Right. So now you got a bunch of lists of vacant properties. You come right over here, download. There's a little download button and you pull all those out. Okay, so that's another way to get a list. Service I'm really excited about now is actually our own service and I was involved in creating it called Deal Engineer. So it has everything that you've seen already that PropStream has, has everything that Privy has, with a couple exceptions, then I'll get to that a little bit later.

But one thing they got, that's really nice. I just went to Las Vegas. So we're in Las Vegas and if I do the lead types, I've got the absentee owners, active listings, cash buyers delinquent tax activity free and clear high equity low equity upside down board investor foreclosures long term owner potentially inherited pre foreclosures vacancy and zombie properties it's the platform that I know of that has the most options all under one and then you can list stack all it so if I wanted to look at let's do vacant board investors all of these right here these will be are my board investor which is a long term owner that has a vacant house and if I wanted to say another thing

for just the free and clear houses could make really good you know seller if finance type deal. There's a bunch of those. So we got what, 1934 of those. Then they have this artificial intelligence, which is the part that I'm really excited about. You can buy specific zip codes. And what they do is they pull from like 500 different data points. Like what magazines do the do the people read? What are they shop? What do they subscribe to? What are their neighbors like that even tracks neighbor activity? And it takes all these data points. And then it bounces it off of people in the past that have sold their property to discount. and look for those similarities.

But what it does is it takes that data and gives the property a score. I'll show you how this works. It's really cool. It pulled up the zip code. There's 8,139 homes out here. You can see each property has a score. And it's a score in a range of zero and 1,000. So the higher the number, the more likely that house is going to sell in the next 90 days at some level of distress.

If you have a house that's scored 1,000, it's 17 times more likely to, to sell than in the other house. So anything over 500 is something you might want to look at, but the higher the number is 600, 700, 800, the better. So if I want to come over and kind of sort these 8,000 properties, and I just want to look at the ones that are most likely to sell it a discount, something that I could potentially wholesale. I can come over here to the AI scores and start narrowing this down.

So I only want properties that are above 700. What that give me? That could be on a 951. That could be a list that I want to market to. These are high probability, all of these houses, in the next 90 days we'll sell at some sort of a discount. And then I can go ahead and I can sort this

by wholesale score. We can see it starts at the 712. That's the low score. And I can just change this little arrow. And I get all my most motivated people up on top of it at 66. So that seems to be the highest score right now is a wholesale opportunity in this zip code.

So those are the different ways to choose a list. People ask what's the best list out there. Is it pre-probate? Is it tax liens? Are they pre-foreclosures? I would have to say this is the best list. It's the only resource that I know that has the scoring mechanism in it and has this artificial intelligence has this much data.

This is the one I'm marketing to right now. All right. So now, how are we going to reach out to them? Well, we need to get their phone numbers. So inside of deal engineer, you can go ahead and you can skip trace. It's nice and convenient. That's really easy to do. Cropstream also has a skip tracing feature that's really nice and easy to do.

Sometimes the convenience outweighs the savings. If you're going to do a massive amount of skip tracing, or if you don't have either of these services and you don't have access to skip tracing. So you want to go use a skip tracing service. What skip tracing is, it's that we're going to run, take all of these properties. For example, would take all of these properties, 931 properties. I'll go ahead and download them into a spreadsheet. Then I go upload them, or I could just do it right here from deal engineer,

but I could upload them to a third party, and they would give me their phone numbers and a lot of the services are now providing email addresses as well. I need to be able to contact these people. So I need their phone numbers at least, and if I can get their emails even better. And the best service that I know that's out there when it comes to the data is seller skipforce. And their pricing is extremely, extremely competitive. So six sets per match if you belong to their subscription. So once we got that, now how are we going to contact them?

Sending it via SMS, I mean, you could do this from your phone, your own cell phone if you want. I know a couple of people that do it from Google Voice. They don't do it that way. And there's a bunch of different services out there. But I don't think anyone beats Launch Control. I think Launch Control is by far the big gorilla in the industry. They're a little bit more expensive, but the features in the, the capabilities that it has.

It looks at your text messages and it automatically removes all of the illegal words per the phone company. They have little detectors out there to recognize who's spamming and stuff like that. They're 100% compliant. They've gone to great lengths to make sure that they rotate your phone numbers. They rotate your messages. They have drip campaigns and the follow-up sequence is fantastic that they have already preloaded in there for you.

But if you're going to do text messaging, SMS marketing correctly, I would do this. I would use launch control. The other way you could reach out to people is good old fashioned direct mail. The other cool thing about deal engineer is they've got the direct mail loader right in. So I could just click this button, set it over here to direct mail. And then I'll come over here and I can just click direct mail and what type of direct mail do I want to do? And then I can just click the button and continue and I go straight to direct mail and it's all done. Or you don't have access to deal engineer.

You can go to another service that provides pretty much the same type of service to where you can send out actual campaigns. You know, there's a lot of places out there that will send out postcards. They'll send out letters and pretty straightforward. Order the direct mail. You give me a list and it goes out and it arrives in the mailbox. So it's kind of hard to mess that up. But there are some other services out there has some really cool features. And the other place that I like is mailmix.io over at PrintGenny.

And what they'll do is they have all these great pre-written mailing pieces, but you can set up campaigns. What I could do is I could go over to my deal engineer this list right here. I could export this and upload it over here at PrintGenie. and I could assign them all a campaign. I can send them a letter, then a postcard, and then a little thank you letter, and another kind of letter, another postcard,

and a little yellow letter with handwritten message on there. And then in between, I can send them emails, and I can send them text messages. And being set up these really nice campaigns, they have a bunch of preset ones there also. Essentially, you order your marketing for the next six months, and you don't have to worry about it again. It's just automatically done.

It just goes out. Really great service, and it's just very dependable, and you don't have to worry it again. worry about it again. Just load it up, push the button, and you're done with that part of the marketing. You can also go ahead and start cold calling. You don't have to use direct mail. You don't have to use SMS.

If you're low on the budget, then you got your phone. You just got the call. Or you can go over and hire somebody to do that for you. If you go to VAs for real estate.com, my good friends over at Rocket Station, they have pre-trained real estate investing virtual assistance. And they go through six weeks of training before you ever get to talk to them. and they know how to help you with landing their deals. They understand how syndications work,

how land flipping works, how subject two's work, how creative financing and all that stuff. They're already pre-trained and set to go, and they're really not that expensive. And if you've got a full-time job or you sell to be working while you're working your full-time day job, this is a really great option for a lot of people.

And I've got a lot of students that do a combination of all of these. They'll send direct mail, they'll send text messages, and they'll do the cold calling. They'll do it all. and that's how they find lots of deals. So once you launched your marketing, now it's time to pick up the phone

when those calls are coming in and you're going to talk to the sellers. In this part, the conversation, this is the most important part of this entire process. Picking a market really easy. The lead generation really simple as you just saw. You can literally just download your list, set it and forget it and you're done.

But now when those calls start coming in, this is where the real work begins. This is where the real skill of real estate investor is going to determine your success or not. But it's a skill like any other skill. It's something that can easily be learned and is led to a massive repetition. But there's some key nuances that you want to really keep at top of mind when you're talking to sellers. First of all, you are an investor. You are there to buy a property at a discount so you can make money. You are not a service provider. You're not a real estate agent.

So that's first. The second thing would be you want to have the mindset of being a problem solver because the only people that are going to be calling you are calling you because they have a problem. 93% of the entire market is going to be calling a real estate agent and go through the traditional conventional means of selling a house. That's 7% that's going to be calling you. They got a problem. So you need to be the problem solver. Do you want to be a reluctant buyer? You want to not come off like you need the deal, even if you do need the deal. It's the seller's job to convince you to buy. It is not your job to convince the solution. seller to sell.

Key distinction between a real estate investor and a real estate agent. So there are a lot of different types of scripts out there. And I love scripts. When I became a real estate agent, this was about 13, 14 years ago, and I did that for four or five years. I was really nervous and afraid that I was going to look dumb in front of people and say the wrong thing. So I wanted to make sure that I had everything down.

I knew exactly what to say. So I went to every single real estate agent training guru out there. And I downloaded their scripts and took some of their trainings. and I went and practiced, drilled, and rehearsed those words and those scripts. I had them all backwards and forwards. I knew them better than the guru that was teaching it. But what I found out when I went out into the real end of the field is that, you know, as well as I knew my script, the seller didn't know their script.

And it would throw me off all the time. So I still, even though I knew exactly what to say, it was still awkward and very uncomfortable and it didn't flow like it probably should have. When you're talking to a motivated seller, there's a real person on the other end. They've got a problem. typically they're not finding themselves on any sort of winning streak in light. And when things are going bad for people, they tend to get worse before they get better.

They're nervous. They're scared. And they're looking for someone that could actually help. So if you show up to that phone conversation as a problem solver, but you don't have to solve their problem, you want to make sure that you're going to get compensated for solving their problem. So you're being this reluctant buyer. Like, I don't know.

If I can't help you, I will. As long as you have that mindset and you feel that genuinely, the right words are going to come out of your mouth. Be interested, be curious, ask a lot of questions. Let them talk. Let them tell you about what's going on with them. Let them tell you about what's going on with their house. Understand that the actual deal is going to come from that seller's situation.

What is causing them to be motivated? What caused them to call you versus calling a real estate agent? They've got bigger fish to fry than going out there through the conventional means of a listing and marketing and open houses and going through the appraisal process. They don't have time for that. The real estate agent can't solve their problem the way that they need to be solved for them. That's why they're calling you. So be interested, listen.

And when you get stuck on things to say, what I like to show my clients and I like to direct them towards using what we call a framework. It's a nine-point framework. We call it a seller interview. And what's nice about is you just have to check these nine boxes, but you don't necessarily have to check them verbatim and you don't have to check them in a perfect sequence. Lends itself to a lot of flexibility in that conversation. It lends itself to greater rapport ability.

with the seller. And that's really, really key because these distressed sellers are going to sell their house to the people that they actually like. You hear that all the time that people do business with the people that they know like and trust. And so knowing them and liking them and trusting them are very, very important. I'm not saying they're not. But if they like you, if they really feel that you care and they feel that you're there to actually help them, you're more than likely going to win that business. And one thing that we kind of focus on, We have a bunch of different strategies and approaches, different types of sales techniques and everything. But what we found really is the greatest sales technique today is not to have any technique at all and to genuinely care, be honest, transparent,

and just kind of speak without filters, like what's on the top of your mind and just speak that way to sellers and help them out. We're going to position ourselves as the problem solver, as the good cop. We need a bad cop for that strategy to work. We make the market the bad cop because at the end of the day, the market is going to dictate what the value of that property. is that's going to dictate whether or not you can make money from that property and the seller can still get what they want out of it to create that win-win outcome. It's Mr. Seller, I'd love to give you that price and I'd love to close that amount of time. No problem with me as long as the market doesn't get in the way.

So we always position the market as the bag. We're the good guy to the back. And if the seller understands that's you, too, you, the buyer and the seller against the market, we're going to go out there and beat this market together that creates a great report, It creates a bond. It creates a trust. It creates a lot, a lot of deals. So now let's look at what do you actually offer. What are you going to offer for a property? How do we figure out what a property is worth?

This is really, really important, particularly right now. So I'll go back over to the different tools that we have available to us. I just use deal engineer and say I was looking at this house right here, 2412 Canosa Avenue. That's your house? Wow. What are the odds? But we'll just pick that house randomly and we'll go right here, the comparables and it'll pull up a bunch of comparables right here for you and you can go ahead and identify between the number of bedroom, the distance, the square footage, the lot size.

So when it comes to determining what a property is worth, what we're really looking at is what are similar houses like the one you're looking at, what have they sold for? So the biggest factor that's going to determine similarity in a property is going to be the location. We'll say it's all about location, location, location, right? I like to start with as narrow as possible. In the Midwest and the South, you kind of want to get really, really tight.

In kind of the Western and Eastern coast, you can dial it out a little bit more to like a half mile or so. So now we'll dial it in a little bit more using the size. First is the location, next is the size. So our property here is 1431 square feet. Here's my range here. It's got a default to 1,200 to 1,800. So I want to remove the higher end of these properties or the higher size of these properties.

Say down to 1600 because I don't have to 1,600. because I don't want a $1,800 square foot house, that the sale of that property be factored into my average because that's going to throw my average up on the high end. But I'm glad that I'll leave the small ones in. So I've got my distance, my location, and I've got the square footage. And now what's really important is when did these things actually sell?

And I want to get the most recent data possible. So I always start with this, what happened last month, and see how many of that gives me by its search. No results. So now I have to go back in, say, let's go last two months, see that helps me out there. So I got one. So this one sold for $371,000.

I want at least three to five sold properties to come up with a nice little average that's going to get me in the ballpark. So 371 with just, that might be where I'm at, but I only have one property to bounce that off of. So let me just back it out to, say, three months. Hit the search button. Let's see what that gave us.

Right, so we've got a couple more. So I'm going to go ahead and check these, check all of these. That's calculating my average price right down here. So this says, what, 319? Well, that's about where I'm at. So that's about what I'm thinking my market value is at the moment. So now how do I go ahead and come up with what's a good offer for me? So let me come over here, change my camera real quickly.

So my value is $319,000. And now I want to go ahead and get a discount off of this. I want to see where my profit is if I were going to fix flip this. And you'll see anywhere from 70 to 85% and it depends on the market. And I'm going to show you that a little bit later of how this can vary. What is multiply say by 75%. So that's going to be our equity. That's going to be that profit that we get to keep.

And then we're going to subtract our repairs. Okay. So our repairs, you just kind of evaluate really quickly is that a light, medium or heavy rehab. And what I'll do for my quick and dirty math, if it's a light rehab, I'll do $20. per square foot. I'll do $25 a square foot for a medium rehab and I'll do $30 a square foot for a heavy rehab. That's really bad then I can go up to 35, 40. But these numbers here, I'm looking right now just at what will get the house clean, working, up to code, and safe. I'm not trying to get on the cover of better homes and gardens with this budget. I just want to

allocate something in my offer. Right? So if I did this right now, that will give me 319,000 times. 0.75 equals $239,000, $2.50. Let me go back to my property to see what my square footage was again. It was 1431.

Say it was a light rehab. So I'm going to use this. Multiply that time is 1431. And that's going to be in May 1431 times. 20. So that's going to be $20,000 in repairs. I just realized I really erased my number. My first number tires .7 are equal to that 239-250 minus .620. So if I were going to fix and flip this property, I tend to want to be around 210,000 bucks.

I don't want to pay any more for this property that $210,000. Now, if I didn't want to fix a flip it, And I wanted to wholesale it. I wanted to sell it to a fixing flipper. So this is what they're going to make, right? But now we have to take out hard focus. So we go ahead and they, I want to make $10,000 or minus other $10,000 for me. Well, now my max price is going to be $200,630.

That's my number right there. As I'm going into this meeting with the seller, I'm thinking I want to be no more than this. Now, I'm going to know a lot more once I actually walk into the property, once I I see the condition once I've seen the neighborhood, once I've driven by the comparables. I'll have more information to work with. But just before I go meet with that seller and look at their property, this is kind of what I'm looking at. This is my reference point. Now, if I'm doing this 100% virtually, then I'm going to look more closely to all the details, like particularly the condition, get the best pictures I can get.

And maybe I actually narrow it down to the lot size and add that factor in and actually look at the bedroom bathroom configuration. I can go into much more detail. I want to do this all virtually. But if I'm going in person, then I'm not even going to waste my time doing that. I got other leads to call. So this is just down my reference point. I got my appointment with the seller and go over and see the house. And then I want to put that the offer there.

Now, in a shifting market, like the one that we're in right now, there's something else that you want to look at. By fact, started my number here at 319. I want to see what's my competition. If I'm going to fix and flip this property and sell it to a retail buyer, I want to know if I'm going to be competing against in the market, particularly a market that's shifting the way it is and it's slowing down a little bit. I'm going to come over to see what's actually active,

what's on the market. So I'm going to take the actives there, pending, give it to sold. What I want to see is our properties that are priced higher on the market than what I, in fact, in mind at. Otherwise, I'm going to make an adjustment. I'm going to go look and say, let's just use a different tool now.

I'll come over to something as simple as Zillow. So there's our hands. house there right now we'll go ahead and we'll take this one here or to zillow check it out the phone list for 350,000 30,000 price cut and has been on the market for 82 days so we know it's worth that because it's not selling I looked at another one here this one Howard looks like this really good gleep okay so someone obviously lives in there doesn't like a but that's brand new on the market, 14 days. For 310, they've already done a price bet at 10.

So that 300,000, it's only been 14 days, but this 310 hasn't sold yet. So it might be too high also. So look at this last one here. And this is 309. And this is a fix and flip brand new in the market. It's 12 days. So I have this price at 309.

It's super nice. So I want to make sure when I'm done with my fix and flip, It looks at least this good, and I want to be priced lower than what they're priced at. It's kind of difficult to tell what they'll be priced at moving forward, because it might take two months, three months to do the work on this. So a quick rule of thumb of how we're operating right now is we're just taking this node right here that we're starting with 90% of that. We're deducting 10%.

So I really use this 287-100, and I'm off by that by our 75%. So I gives us 215, $2.50 minus our repairs there. So I give us 186. If we're going to fix, look to this ourselves, we're not a wholesale list. We just want a quick paycheck. So we're going to go ahead and subtract our 10,000 year. But yeah, we're looking at it more of a purchase price of $1.676.6.

630. I know the most that we want to pay. If we want to hit all of our calculations that the market is giving us, these are the numbers that the market's given us, We have no control over this. This is what the market says. Once you'd come to an agreement with on the price, you're just going to present your offer to the seller.

And you'd have a written purchase agreement that you can give right there to the seller, which ideally what I would suggest that you do. But if you can, if it's virtual or they're out of state, then you just send them a dockey signed document and you get the document signed that way. All right. So now you have to go find that fix and flipper buyer. Where do we find those? Particularly if this is your very first deal, you might not have a list.

You probably don't have a list. But let's go look at this. First place, I always always. go to is I will go to Craigslist and just sold a houses for sale. Real estate for sale and I'll post my deal there. And a lot of people, I think, ignore and underestimate Craigslist. It's still one of the biggest websites on the internet. It's got all of the eyeballs.

They've got some rules that you kind of have to keep up to date with. They've got this algorithm thing that can kind of interfere with your plans. But just keep on posting. Post three times a day, four times a day. And just keep on posting your deal. and your phone will ring. You will get inquiries. It might not all be great inquiries,

but your phone will ring. You'll be talking to people and just keep your eyes and ears open for opportunity because there will be buyers there. You might find sellers, you might find contractors or property managers. You might find a great real estate agent. It's going to be open to all of those conversations

because there's a lot of opportunity that will cover your way through Craigslist. And there'll be some crazies too. So I'm not saying everything's going to be great. But it's free and you will get to talk to some genuine. Next will be Facebook. marketplace. More to Facebook. It's kind of taken place of Craigslist anyway, but a lot of eyeballs over here and just type in real estate for sale over here in the search results and you'll get

all of this and then put your property there. People will reach out to you. Now, keep in mind when you post over here that they will be contacting through your Facebook profile so they're going to know all the information about you. So if you want to clean up your social media profile before you start marketing property, that might be a good idea. There's a couple other places you can go to. For example, Kigli, go over to my friend, Jamil and he's got a massive buyer's list. You submit the deal over there. They're going to charge you for it.

But if you're unable to find a buyer on your own, then this might be a really good option for you. Another really good friend of mine is Josh over at Trelli. He does a very similar thing that Kigley does. And then another great resource. And this is why I subscribe to me one of the bigger reasons. But let's go over to just deals. I'm going to go to the fix and flips. So here's all the fix and flips in this area.

But these are all fixing flippers. These are all buyers. And we know that they're all buying properties in this area. But what you can do is kind of zoom out a little bit. And I'm going to get this little pencil here and say my deal was right in here somewhere, draw a big little circle. So in this area, these are all fixing flippers. I can see them all right here. This was just sold a couple days ago as the record is.

So he closed yesterday. this closed a couple weeks ago. All right. So these are people that are actually active in the market right now that are fixing and flipping properties. So if I just took any one of these houses, so I'll just randomly pick this one here. And you can look at the before and after.

So this is what I was like before. Here are after pictures. So it's all nice and neat. So we know this is a fix of the book. So we can reach out and call this person about our deal. Now, obviously, this is in a different market. I could go back over to Las Vegas. I'll do that and we'll come down in towards the code,

which was 8-9104. Here's my area. So I'm going to go for the fix and flips. Here they all are. And this one just closed last week, so I could click on there. And he paid $460,000 for this house. Fixed it all up, as you can see.

So it was definitely a fix and cook for. It's got on all stage. It looked beautiful. So we purchased this 69% of ARV. And this is one of the things I like about Privy, is that I had my own formula. If we were to go back and look at my numbers here, I can go with 176-630,

and our market value was 287 divided by 287. So that was at 61% of market value. Now, if I go back here to this property, well, mine is at 61%. they paid 69% of market value for theirs. So if I get my price, I for surely got a real legitimate buyer right here that blips properties in this area

and actually pays a percentage of market value than I did. So if I got it for 61%, they paid for 69. Maybe I sell it to them for 67%. So I make a good, nice little spread, and they also get a better discount than the deal that they found on their all. And I can go to this download button. I can download all 75 of these flips here. And that's 75 buyers.

And I can just go through this list and start calling and say, Hey, I got a deal. I noticed the house that you purchased over on St. Louis Avenue. I saw the work that you did inside. You did a great job. Are you still in the market? Are you looking for other deals? Perfect.

I noticed that you paid about 66% of ARV on that one. I have a deal that's even better than that. Should I send it over? And now you've got real conversations. and people are valuing the deals that you're sending to them. They're going to pick up your phone call. It's going to be really easy to find buyers this way. And now you're in a genuine conversation because you know what they pay for a property

and you got it for much cheaper than that. And the exact same zip code, the exact same neighborhood. And I've got 75 chances to make that happen. So that's another way to find buyers. And that's why I like a lot of these different services and why I stay subscribed to so many of them because they all got little nuances that I find useful and I use every day. So now that you found your buyer and you've got your seller, contract, you take it to your title company, your escrow officer, your real estate attorney,

whoever you're using as your closing agent, a little different in each market. But you go say, I've got this one over here. I have it under contract for 176 and I have a buyer over here that's going to buy it for 186. And you give those instructions to your closing agent and they go ahead and take care of that transaction and that little $10,000 gap. They make sure that that goes to you at close. So there you go.

That's how I do it. And if you like to go deeper and work together on this for free, I think you'll like what I've put together. And when you discover how I'll actually pay you to help you, you'll like it even more. Head over to free course in real estate.com for the details. And I'll explain there how I'll pay you to help you get your first deal done. 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 to cash flow.

This podcast is a part of the C-Suite Radio Network. For more top business podcasts, visit c-sweetradio.com.