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Speaker 5: My graduates from my school being forts bad, drop bags,
Speaker 5: drop Mike, drop bag, drop.
Speaker 3: Wholesaling, one on one, right, So it's a couple of
Speaker 3: things that I had looked at and preparing for this interview.
Speaker 3: So when identifying your market, right, So I so you
Speaker 3: even talked about it as far as like your zip
Speaker 3: code that grandulin all right, So I guess for somebody
Speaker 3: that wants to get involved in wholesaling and they're just
Speaker 3: getting started, like how you just got started, you have
Speaker 3: to formulate a game plan before you do anything in life, right,
Speaker 3: So I guess the first game plan is understanding your neighborhood.
Speaker 4: Is that correct?
Speaker 6: Yeah?
Speaker 5: So understanding like your area, your city, and like every
Speaker 5: city has what they call gentrification, right, Like what happens
Speaker 5: is you're you have neighborhoods that are going to transition
Speaker 5: into mid class likeness. That's what gentification is. So that's
Speaker 5: going to happen all the time. Whether you're a part
Speaker 5: of it or not is up to you. So essentially
Speaker 5: what happens is you need to know what part of
Speaker 5: your city.
Speaker 6: Is up and coming. That's all it means.
Speaker 5: And once you find out that part, whether you can
Speaker 5: do visually are driving around because you know your city
Speaker 5: you've been there since you were a kid, or you
Speaker 5: can use technology which we use list source and do
Speaker 5: a free method of finding this.
Speaker 6: You then find what zip codes are hot. And how
Speaker 6: they do it is they say, all right, how.
Speaker 5: Many cash transactions has happened in this county, and then
Speaker 5: we break it down by zip code and then the
Speaker 5: ones that have the most cash transactions that mean somebody's
Speaker 5: buying these properties.
Speaker 3: Follow the money cash transactions, like somebody's buying a home
Speaker 3: and cash cash. Yeah, And so by doing that, you
Speaker 3: know if more people are buying homes in cash, more
Speaker 3: affluent people are moving into the neighborhood.
Speaker 5: Yeah, because what happens is when somebody buys a house
Speaker 5: in cash more than like there's no financing involved, that
Speaker 5: means it needs a flip.
Speaker 6: Right, So, because you can't really buy flip property.
Speaker 5: With bank financing where they won't they won't, they won't,
Speaker 5: and they won't loan you money on something that needs work.
Speaker 5: The bank is never going to take an upside down
Speaker 5: position on anything. So what's what's the app called lip
Speaker 5: sort list list source list source, Yeah, and I have
Speaker 5: a video like it goes more in detail but list
Speaker 5: sources of things that gives you list of anything kind
Speaker 5: of you want about people, right, but you can find
Speaker 5: out the hot properties or the hot zip codes on
Speaker 5: this way we find out how to do once you've
Speaker 5: mastered your area.
Speaker 2: One of the big things that you talk about is
Speaker 2: driving for dollars? Can you talk about that technique and
Speaker 2: the interests of that.
Speaker 5: That's how I got my first deal was driving for dollars.
Speaker 5: And that just basically means you're driving around looking for
Speaker 5: distressed property physically distressed, right, and these are Yeah, it
Speaker 5: could be like your gutters.
Speaker 6: Are hanging down.
Speaker 5: Nope, somebody hasn't cut the grass, The bushes are high,
Speaker 5: old junkie cars in the driveway that have it moved. Now,
Speaker 5: what happens is we see these every day, but your
Speaker 5: mind has already been trained to block these out. I know,
Speaker 5: if you untrained yourself and and and look, actually look,
Speaker 5: you'll see houses as.
Speaker 6: Yo, the house been there for ten years. Ain't nobody
Speaker 6: ever looked at it?
Speaker 2: Because I was really trained to see like, yo, that's
Speaker 2: the nicest house on the block.
Speaker 5: Correct, and you go past the ugliness. It's just the
Speaker 5: way we look.
Speaker 3: I mean even as a kid, I remember being on
Speaker 3: a school bus and you can always tell like the
Speaker 3: house is the worst house on the neighborhood. They never
Speaker 3: cut the grass, they never the paint's always chip. But
Speaker 3: growing up, you just thinking that people don't care about
Speaker 3: their home, thinking that maybe nobody lives there.
Speaker 4: Correct, maybe it's a distressed property.
Speaker 6: Correct.
Speaker 5: So once you find that distressed property, you need to
Speaker 5: find the owner. And so my buddy Dave Lecho created
Speaker 5: a map called deal Machine, which allows you to drive around,
Speaker 5: take a picture of the property, and it pinpoints it
Speaker 5: and it actually will send a postcard to the owner
Speaker 5: asking if they want to sell it on your behalf,
Speaker 5: on your behalf for you called deal machine Yeah, with
Speaker 5: your number on it. Wow, so you can customize this postcard.
Speaker 5: So but that that's like fairly new to achnology. When
Speaker 5: I started, they didn't have that. We had to go
Speaker 5: around taking screenshots of drop pin drops on like Apple
Speaker 5: maps or something like that, and then go back home
Speaker 5: and search who owns it.
Speaker 2: So we got we got the property and were driving
Speaker 2: dollars and then you had something called skip tracing.
Speaker 5: Yeah, so that's important. So skip tracing essentially where that
Speaker 5: word skip tracing came from. So I used to be
Speaker 5: a bounty bounty hunter, bail bondsman. Yeah, like house better
Speaker 5: than Doug TV show, This guy shuts it all. So
Speaker 5: skip tracing means that you're skipping a trade, you're tracing
Speaker 5: a skip. Essentially, what that means is somebody who does
Speaker 5: not go to court is considered a skip and you
Speaker 5: need to trace them down. So that's where the word
Speaker 5: comes from. But now we're not really dealing with that.
Speaker 5: We deal with people that that own houses that we
Speaker 5: can't find them. So essentially what happens is you find
Speaker 5: that house with the tall grass, you take a picture
Speaker 5: of it, you write down the address. You need to
Speaker 5: know who owns it? So you go on the county wreckords.
Speaker 5: Every single property in the America is owned by somebody
Speaker 5: or something, right, So in every county there's a tax
Speaker 5: assessor's website, right, so I can look up town who
Speaker 5: owns any house in America? So you go to that
Speaker 5: county's website. So here I think it'd be Westchester County
Speaker 5: tax assessors, right, and then you would put in the
Speaker 5: address of the property and it'll say, oh, this person
Speaker 5: owns that property. Now I need to get a hold
Speaker 5: of that person. So skip tracing is where you put
Speaker 5: that person's name and mailing address into the system and
Speaker 5: it's going to spit out the numbers that that are
Speaker 5: that this person has.
Speaker 6: Yeah, yeah, wow, what's it called?
Speaker 5: Skip skip trac dot com RII skip dot com r
Speaker 5: E I skipped that's yours. Yeah, So that was part
Speaker 5: of that was part of how I got big big
Speaker 5: because I knew because of my old background of skip
Speaker 5: tracing humans. It's the same thing I got skip trace humans,
Speaker 5: but now I have.
Speaker 4: Their name in or address. Did you get this from
Speaker 4: military training?
Speaker 6: Like No, it was just something that we developed as
Speaker 6: bounty hunters.
Speaker 2: So you flipped it because before you were looking for
Speaker 2: people that you actually had to arrest. Yeah, and flipped
Speaker 2: it into it now I'm looking for the person that
Speaker 2: owns this house.
Speaker 6: I need your number. I'm calling you up.
Speaker 4: That's it went off topic a little bit. When when
Speaker 4: were you a bounty hunter?
Speaker 5: Yeah, you got that.
Speaker 6: I got ten, I got ten. I used to have
Speaker 6: a car lot. I used to have all types of stuff.
Speaker 5: Man, I was a bounty hunter in between while building
Speaker 5: that app and getting in the in the real estate.
Speaker 4: Wow.
Speaker 5: Yeah, it actually traveled into like I'm still licensed. Yeah,
Speaker 5: I'm still licensed bound here because jobs. Yeah, jobs, because
Speaker 5: I had to have I'm still a licensed bounty hunter
Speaker 5: and I'm still licensed bonds because I got access to
Speaker 5: data most people don't get.
Speaker 6: I get the same data in the cops. And you've
Speaker 6: leveraged it.
Speaker 5: Yeah, I leveraged that small you know, license into me.
Speaker 3: Now you know. I like because like a lot of
Speaker 3: our guests have similar stories where they've had troubling times
Speaker 3: and he had to like figure things out. And then
Speaker 3: a lot of our guess have seen someone the stories
Speaker 3: where they they use things in their past to help them,
Speaker 3: Like you ever heard John Henry, Yeah, of course, so
Speaker 3: John Henry shout to John. He was telling you know
Speaker 3: his story. He was a dormant dormant and he came
Speaker 3: up and he started a million dollar cleaning business. But
Speaker 3: his marketing plan was to go to other dormant and
Speaker 3: get them to refer their residence.
Speaker 4: He paid them.
Speaker 3: But long story short, he was saying, like, he can't
Speaker 3: call himself a genius for that because that's what he knew.
Speaker 3: He knew the dormant in the street because he was
Speaker 3: a dormant, like you were a bounty hunter. But it's
Speaker 3: like you knew like I can get people's information from this.
Speaker 3: Now I'm in real estate. How can I co mingle
Speaker 3: this and actually make it all work?
Speaker 5: And that's why your failures are your biggest successes because
Speaker 5: that failure taught made me make millions.
Speaker 6: You know, you just put me on and put me
Speaker 6: in a different category.
Speaker 3: And that's important for people to understand too, because a
Speaker 3: lot of times everybody's doing something and even like your
Speaker 3: path to success might be totally different from what you're
Speaker 3: currently doing, but you could still use what you did
Speaker 3: in the past in some capacity to help your success
Speaker 3: in the future.
Speaker 6: Absolutely, yea.
Speaker 2: So now we go at that, we got the address,
Speaker 2: how do we get the property under contract?
Speaker 5: So you're gonna call a person and you're simply gonna
Speaker 5: have a conversation. A lot of people, there were a
Speaker 5: lot of people fall short. People hate talking to people
Speaker 5: that they don't know.
Speaker 4: Elevator script.
Speaker 5: Yeah you So we've developed a lot of scripts over
Speaker 5: the time. But it's real simple. Immediately, you need to
Speaker 5: identify who you are. Hey, my name is Max. I'm
Speaker 5: a local real estate investor. Right that puts their guards down.
Speaker 5: But if somebody calls you and says, hey, in a
Speaker 5: moment of your time, yeah done, I'm hanging out, you
Speaker 5: ain't even getting past that. Especially in New York. You're
Speaker 5: not getting past that at all. You mightn't get pick
Speaker 5: up banging on you. Yeah, so then somebody's intrigued. Okay,
Speaker 5: you're a real estate investor. I was going to pass
Speaker 5: the property down on one two three Main Street, and
Speaker 5: I think you may own it. I was wondering if
Speaker 5: you were interested in even selling it.
Speaker 6: All. That's simple.
Speaker 5: You're gonna get yes, no, or maybe or you're going
Speaker 5: a lot of f us in between there, right so,
Speaker 5: or you got the wrong number?
Speaker 6: Right? Do you?
Speaker 7: Well?
Speaker 5: Do you know who owns that property. Oh yeah, I
Speaker 5: owned that property. Okay, well great, are you thinking about
Speaker 5: selling it? Well, I got it from my mom and
Speaker 5: I actually live in the city now, and you know,
Speaker 5: I don't It's need some work and I really don't
Speaker 5: have you know, the time.
Speaker 6: And I don't want to keep paying the taxes.
Speaker 5: Okay, Well, I'm a real estate investor actually specialize in
Speaker 5: buying properties like this. Would you be interested in the
Speaker 5: cash offer? Actually I would be, And then that's when
Speaker 5: you start that negotiation. Well great, well what type of
Speaker 5: what number were you looking for? You know, what can
Speaker 5: I give you cash that would just make you walk
Speaker 5: away from it? Then that starts. That's called anchoring, giving
Speaker 5: somebody that making somebody give you a price to anchor
Speaker 5: themselves on.
Speaker 2: And that doesn't happen just in you know a lot
Speaker 2: of people think that can't happen in a fluent neighborhoods.
Speaker 6: But you said, all absolutely, that's what should be looking.
Speaker 5: Yeah, I mean for us in the South, like a
Speaker 5: two hundred and fifty thousand dollars house is a nice neighborhood, right,
Speaker 5: So I own a couple of those right off of
Speaker 5: people that you know, just it happens a lot people
Speaker 5: inherit things that they don't want. I mean not in
Speaker 5: our culture, but there's a lot where people like really
Speaker 5: will inherit.
Speaker 6: A quarter million dollar house.
Speaker 5: Was makers and be like, I live in Denver, I
Speaker 5: don't want to go back to mom's house. I remember
Speaker 5: having Christmas there in ninety three. I don't want to
Speaker 5: trying to I'm not trying to go back. So things
Speaker 5: like that, and then just there's so many different ways
Speaker 5: where people don't want a house.
Speaker 6: It's like a car.
Speaker 3: It's pretty common, Like you said, not in our communities,
Speaker 3: unfortunately never happens. It's pretty common in other communities, and
Speaker 3: you'll be surprised.
Speaker 5: But you know, actually it happens more than we actually
Speaker 5: think of our community. We just don't realize, you know,
Speaker 5: like because it's considered the hood, so you don't want
Speaker 5: grandma's house, and you just let it go for taxing Linquin,
Speaker 5: and then somebody like me comes and buys it for
Speaker 5: ten thousand dollars.
Speaker 6: Yeah.
Speaker 3: So as a wholesaleer, the person you're always offering cash offers,
Speaker 3: it's always have to be casual.
Speaker 6: Yeah, because no bank is going to find a bank.
Speaker 5: Yeah, so you got to go find somebody else that's
Speaker 5: in the business of flipping property.
Speaker 2: So we're telling private or hard money loans.
Speaker 5: Typically, yeah, they can have access to private or hard
Speaker 5: mini loans.
Speaker 6: Private is through relationships.
Speaker 5: Hard money is going to be through your resume essentially, right,
Speaker 5: you know you flip seven houses this year, of course,
Speaker 5: will loan your money because you know what you're doing.
Speaker 5: Private money is based off of yo. I know you
Speaker 5: got some money sitting in your IRA and you want
Speaker 5: to put it to work. But yeah, you want to
Speaker 5: find that person that makes his money through flipping. You know,
Speaker 5: one thing I understand is that people have money, they
Speaker 5: got to spend it, right, So it depends just where
Speaker 5: you at on that food chain.
Speaker 4: And people that have money always want to make more money.
Speaker 6: That's how they live.
Speaker 2: They eye quadron of day life. So we got now,
Speaker 2: we got the contract. Now we got to get to
Speaker 2: the closing.
Speaker 3: Before so I had a question. Sorry, So cold calling,
Speaker 3: this essentially is cold calling when you're people are because
Speaker 3: very few people understand cold calling. Yeah, I've done in
Speaker 3: coke calling before and I don't I don't like it,
Speaker 3: so but I can see how this can stop people
Speaker 3: from actually moving forward, right, this is a big thing.
Speaker 4: It's not.
Speaker 3: If you don't if you've ever done it before, you
Speaker 3: can't fully appreciate. It's like one of the most nerve
Speaker 3: wracking things you can do. Like literally, like you make
Speaker 3: up every excuse in the world not to Coco. Like
Speaker 3: you like walk around the neighborhood, you get lunch and
Speaker 3: you say it's too early, It's it's too late, call tomorrow.
Speaker 3: You make all kinds of excuses. So how do you
Speaker 3: because you have to either that or you're knocking on
Speaker 3: somebody's door.
Speaker 6: Every comm every deal ends on the phone.
Speaker 5: Every single deal you do, whether you like it or not,
Speaker 5: is gonna end up on the phone at some point
Speaker 5: in time.
Speaker 4: To like what do you tell people to like ease
Speaker 4: their nerves to co call.
Speaker 6: One thing we do is we give them scripts. Oh
Speaker 6: they have to make it up.
Speaker 5: Yeah, So I want to give you your scripts and
Speaker 5: then you're going to give you most common rebuttals so
Speaker 5: that you can have an ends.
Speaker 6: Right.
Speaker 5: So, like I like if you go to your if
Speaker 5: you're going to ask your mom and you always what
Speaker 5: she's gonna say, it's more easy for you to ask
Speaker 5: a question because you already got the answer because you
Speaker 5: know her response. So it's the same thing like when
Speaker 5: you go talk to these strangers, these people you don't know,
Speaker 5: you're gonna, You're gonna they got three answers, three or
Speaker 5: four different answers they're gonna give you, and you need
Speaker 5: to be able to rebundle those things.
Speaker 3: You know what got me over my fear of cocon
Speaker 3: in too personally, I still don't throw a lot of cocone,
Speaker 3: but just got me out of my because I had
Speaker 3: I was terrified by it.
Speaker 4: I had this.
Speaker 3: I had to sit down and say, am I going
Speaker 3: to die? If you're not gonna die, it's not that bad.
Speaker 6: Did you make money from go call liver?
Speaker 4: I have? Yeah, I have.
Speaker 3: And at the end of the day, the worst nobody
Speaker 3: they don't know you, and the worst they can say
Speaker 3: is no.
Speaker 6: Or cuts you out. Who cares? We're gonna go to
Speaker 6: the next question. Yes, it's just they don't know you. Yeah,
Speaker 6: just keep going, keep moving. You get cussed out on
Speaker 6: the subway, here, all the time, anywhere, so that normal.
Speaker 6: Don't take it personal.
Speaker 3: It's not gonna kill you. It's not that serious. That's
Speaker 3: how I look at it. So what is the maximum
Speaker 3: allowable offer?
Speaker 5: So the the the m o A is the maximum
Speaker 5: amount of money that you can offer on this property
Speaker 5: and still make a profit. So I'll break it down,
Speaker 5: so like, if a house is worth one hundred thousand
Speaker 5: dollars fixed up right, we did. We found that out
Speaker 5: by doing comparable properties. We've seen that the house down
Speaker 5: the streets sold for one hundred thousand, very similar square footage,
Speaker 5: bedrooms and baths. The house up there sold for ninety eight.
Speaker 5: So now we're in a one hundred thousand dollars range.
Speaker 5: So we know that the flipper is going to fix
Speaker 5: this and sell it for one hundred thousand. So it's
Speaker 5: to sell one hundred thousand dollars.
Speaker 6: Now in my.
Speaker 5: Market, it's lukewarm. It's not like an La or a
Speaker 5: Phoenix or New York where you properties go above.
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Speaker 5: Then beyond asking price a bunch right, so we take
Speaker 5: off we minus thirty percent from the actual ARV the
Speaker 5: after repair valuable property.
Speaker 4: Right.
Speaker 5: So now if you did that one hundred thousand minus
Speaker 5: thirty percent, you're at seventy thousand and let's just say
Speaker 5: you walked that house and you went in there, and
Speaker 5: you think it needs twenty thousand dollars twenty five thousand dollars,
Speaker 5: and just say twenty thousand, twenty thousand repairs. So you
Speaker 5: know that this flipper is gonna spend twenty thousand to
Speaker 5: get it to the point where he can actually put
Speaker 5: it on the mark for one hundred, so you're gonna
Speaker 5: deduct that. So we went from one hundred to seventy disrepairs.
Speaker 5: Now we at fifty. So if you actually buy this
Speaker 5: property at fifty thousand dollars right now, it's actually a
Speaker 5: good deal for the flipper.
Speaker 6: But you ain't made no money yet right.
Speaker 4: Assale and those wholesaless you didn't get it right.
Speaker 5: So if the flipper himself knocked on this door, talk
Speaker 5: to him, he'd be able to buy a fifty. But
Speaker 5: you need to make some money, so you need to
Speaker 5: throw a pad or a buffer in there. So you
Speaker 5: need to be offering. If you want to make ten thousand,
Speaker 5: your offer needs your maximum allowable offer needs to be
Speaker 5: forty thousand, right, So now you're gonna sell your contract
Speaker 5: for fifty forty for the forty that they got to
Speaker 5: buy the house ten for your assignment total of fifty.
Speaker 5: Right now we're back where where the flipper is gonna
Speaker 5: make some money. But if you want it at forty,
Speaker 5: you're never going to offer forty. You're gonna offer below that.
Speaker 4: Thirty.
Speaker 5: Yeah, so you do over thirty. So typically fifteen percent
Speaker 5: below what you want is where you want to be at.
Speaker 5: So that you do that, you put you around thirty
Speaker 5: six thirty four thousand.
Speaker 6: Dollars to have the wind built in exactly the wind
Speaker 6: built in, and you never know, they might take thirty.
Speaker 6: You never know, right, you can come up with twenty.
Speaker 3: So let me ask you this because essentially it's like
Speaker 3: a middleman situation, right.
Speaker 6: This whole world's about most richest companies in the world
Speaker 6: are middleman.
Speaker 5: True Amazon, Walmart, True Uber, Airbnb, Airbnb. They don't own anything.
Speaker 5: They're middlemen. Amazon is a logistic company. They make products,
Speaker 5: They house products that other people make.
Speaker 6: And you buy. They have cloud stores.
Speaker 5: Part dealerships. You can't buy a car in America without
Speaker 5: going through a dealership.
Speaker 6: They're middlemen. They don't make the.
Speaker 5: Car, they're middle they're middle men.
Speaker 6: Middle Men make the most money in America. You got
Speaker 6: to solve a problem with convenience.
Speaker 3: True, this is true. So that's true. But so my
Speaker 3: question is a question is all right, but why not?
Speaker 3: Why is it more appealing in your opinion, to be
Speaker 3: on that side of it as opposed to just buying it,
Speaker 3: like just being an investor. Yeah, it's more risk involved,
Speaker 3: being arrested, It's a lot more risk, more money involved.
Speaker 5: More risk and more more risk, more money. But do
Speaker 5: you want a a a fast nickel or a slow dime?
Speaker 5: Depends on your business model. I see, so I see
Speaker 5: this a lot. I see where wholesalers think it's a
Speaker 5: negative connotation to the name and they want to be flippers.
Speaker 5: And then I see flippers looking at wholesalers and wanting
Speaker 5: to be wholesalers because.
Speaker 6: They see the proput margins higher, the.
Speaker 5: Risk versus reward. Now, can Amazon make every single product
Speaker 5: they have in the store? Absolutely? Do they want to
Speaker 5: take that risk of holding inventory that they own for.
Speaker 4: What a fast nickel or a slow down? I like that.
Speaker 2: So if we're doing this, if we're wholesaling as a
Speaker 2: side thing, right, how much did you how many properties
Speaker 2: you think we have.
Speaker 6: To do it before it becomes a full time situation.
Speaker 5: It depends, right, everybody has their free their freedom mark.
Speaker 6: You know.
Speaker 5: I always used to say if I made six figures,
Speaker 5: I'd be great, right, you know that's not you figures,
Speaker 5: so like it's not, it's it just depends where you
Speaker 5: want to be at right now. Some people love their job.
Speaker 5: So I've spoken to school teachers. They love their job,
Speaker 5: they love their passionate about what they do. But if
Speaker 5: they can get one property a month, they make an
Speaker 5: extra ten grand a month.
Speaker 6: That'll start teaching.
Speaker 5: No, they're gonna keep teaching because they just supplement your
Speaker 5: life because it gives you what you want.
Speaker 6: Now, I've had people say that and then actually quit.
Speaker 3: Yeah about that teaching, Yeah, it's not coming to work tomorrow.
Speaker 6: So if it.
Speaker 5: Depends on your lifestyle, where you want where you want
Speaker 5: to be at. For me, I wanted to run a
Speaker 5: multi million dollar company. So we do between like seven
Speaker 5: and twelve deals.
Speaker 6: A month sometimes, okay.
Speaker 5: And you know that's where we're at, and we're not
Speaker 5: We're not the largest. You know, we got guys across
Speaker 5: the country doing way more deals than that.
Speaker 6: But my overhead is pretty thin and we have a
Speaker 6: good lifestyle doing what we do.
Speaker 3: So what would be the obviously depends on the market,
Speaker 3: Like in your market, what's the profit margin on average.
Speaker 6: Deal for your average deals?
Speaker 4: Thirteen three thirteen three hundred.
Speaker 6: Yeah, we track our KPIs pretty well.
Speaker 4: What's KPI?
Speaker 5: That mean Key performance indicators? So you're you're your need
Speaker 5: to know. I need to know how much money I'm
Speaker 5: spending to get a deal?
Speaker 6: Right? How many calls do I need to make to
Speaker 6: get a yes? Right?
Speaker 5: And then did you start to get an average how
Speaker 5: much money do I spend on this marketing effort before
Speaker 5: it turns into an appointment? How many appointments do I
Speaker 5: go on before it turns into a contract. And if
Speaker 5: you know your numbers and your business, and this is
Speaker 5: any business, then you scale.
Speaker 3: So you're doing thirteen one thousand a deal, you're doing
Speaker 3: thirteen of those a.
Speaker 6: Month, so it's like one hundred.
Speaker 5: Well, our top ends twelve, right between seven and twelve
Speaker 5: deals a month, so we're average around like ten.
Speaker 2: Let's say if you do test, you're talking about one
Speaker 2: hundred a month.
Speaker 6: A month.
Speaker 4: Yeah, good calendar, yeah a good month.
Speaker 6: Yeah.
Speaker 4: Okay, So what is assignments? Now you have to catch
Speaker 4: buy you have assignment.
Speaker 5: Assignment is Essentially, you have that original contract with the seller,
Speaker 5: and you're going to sign your contract to that person.
Speaker 5: So let me give you an example. So let's just
Speaker 5: say you pull up. We're sitting over at the bodega.
Speaker 5: I'm in New York, can use those words, sit at odega.
Speaker 5: You pull up, and you be like, Yo, Max, I'm
Speaker 5: out of here, bro, I'm going to Living Vegas.
Speaker 6: You know, I just got this new Mercedes right here.
Speaker 6: I don't want it.
Speaker 5: I paid cash for it. I paid one hundred thousand
Speaker 5: for it. I got it two years ago. Yo, give
Speaker 5: me forty five thousand cash. You can have this.
Speaker 6: That's a brand new S five fifty. Take that right.
Speaker 6: So do I have the money sitting at the bodega? Nah?
Speaker 5: But I know my man down here gotta use car dealership.
Speaker 5: So I said, all right, meet me back here Friday
Speaker 5: with the money. I'm gonna have the money for you.
Speaker 5: It's Monday, so I ain't got the money, but I'm
Speaker 5: gonna go get it right.
Speaker 6: Because it's important.
Speaker 5: So I'm gonna go hit you up and say, Yo,
Speaker 5: you know I got a two thousand and eighteen S
Speaker 5: five fifty for fifty thousand dollars for Friday. But you
Speaker 5: gotta buy it Friday. My man said, cool, I'll bring
Speaker 5: you the money Friday, all right, meet me at the bodega.
Speaker 5: You meet me at the bog They with fifty You
Speaker 5: said you wanted forty forty five.
Speaker 6: I may hand you the money. You're gonna hand me
Speaker 6: the key. I may hand you the keys you're gonna
Speaker 6: give me.
Speaker 5: I got the middle part. You go sell it because
Speaker 5: that's your job. Your business is selling cars. You wash
Speaker 5: it up, you clean it, put some tire set on it,
Speaker 5: stick it on the car, lote for seventy five thousand.
Speaker 6: It's still a deal. And you may five thousand.
Speaker 5: I made five thousand you on a plane in Vegas
Speaker 5: cause you just sick and.
Speaker 6: Tied of New York life.
Speaker 5: And you just supplementing your business. You just made a
Speaker 5: profit by investing your money. So so I signed my
Speaker 5: contract to him that I had with you. Now, when
Speaker 5: I signed that contract with you for Friday, between Monday
Speaker 5: and Friday, what can you do with that car?
Speaker 6: So it says nothing.
Speaker 5: You couldn't sell it because if you sold it, I
Speaker 5: would assued you for pacific performance of a contract.
Speaker 6: So you couldn't.
Speaker 5: You already said to me, Yo, all right, Friday, I'm
Speaker 5: gonna I wrote a contract. You're gonna You're gonna give
Speaker 5: me that car on Friday, and I'm gonna pay you
Speaker 5: the X amount.
Speaker 6: Now, But do you keep an attorney with you? Oh?
Speaker 6: You just write in these contracts? How does this work?
Speaker 5: Once you have a standard template contract, you have it.
Speaker 5: But this is real estate, like you, nobody's gonna run
Speaker 5: off with the house, right but people know that you
Speaker 5: know you made an agreement.
Speaker 6: And here's here's what happens.
Speaker 5: When you when you put up with that car and
Speaker 5: we signed that contract. This is one part I did forget.
Speaker 5: We have what they call a I gave you consideration
Speaker 5: on that contract, which means money. So when we sign
Speaker 5: that contract, I was like, Yo, here go one hundred dollars.
Speaker 5: Hold on to that, and now I'm gonna get you
Speaker 5: the rest of the money Friday. So now you accepted
Speaker 5: this hundred bucks on this contract. Now mean you in
Speaker 5: a valid contract with actual consideration right now. Typically on
Speaker 5: real estate contracts, you have what you call a.
Speaker 6: Due dillage period.
Speaker 5: And usually at one hundred dollars in my market will
Speaker 5: buy you ten days. So I know from the day
Speaker 5: I signed the contract with you on your house. I
Speaker 5: got ten days to go out and find a buyer.
Speaker 5: If I can't find a buyer by the seventh, I'm
Speaker 5: a no in twenty four hours because I'm gonna shot
Speaker 5: the property out. If I can't find a buyer's I'm
Speaker 5: gonna call you up. Hey, man, you know I miss
Speaker 5: something on that house. Either we're gonna renegotiate or we
Speaker 5: are going to just cancel the contract.
Speaker 6: How do you find a buyer?
Speaker 5: Well, they sharks, they have to spend money.
Speaker 3: I was just thought about something, so correct me if
Speaker 3: I'm wrong. But all business is kind of the same.
Speaker 3: So these kind of business principles are very relatable. So
Speaker 3: this is how I'm understanding it from my thirty minute
Speaker 3: education so far, the easiest way to go was to
Speaker 3: be there's people that buy home. There's real estate investors, right,
Speaker 3: that's the job. But they may not necessarily have time
Speaker 3: or they don't want to knock on doors and cold
Speaker 3: co and all that. So now you as essentially the
Speaker 3: broker in this situation. You're doing that work that they
Speaker 3: don't want to do. But they kind of need you
Speaker 3: and you need them. So you establish relationships with big
Speaker 3: time real estate investors in the neighborhood. You call them
Speaker 3: with deals. Look, I got this property, Da dada. You
Speaker 3: establish your relationships with them, and they kind of become
Speaker 3: reoccurring clients. It makes your job easier because now you're
Speaker 3: not just winging it trying to just find random people.
Speaker 3: You develop strong relationships. It makes their job easier because
Speaker 3: they're not just winging it trying to find random properties.
Speaker 3: They trust you because they know that you've established good
Speaker 3: relationships and you know good properties, you know good price in.
Speaker 5: You've got correct Yeah, you bringing a consistent product. They
Speaker 5: need to spend money. That's how they make their money.
Speaker 5: They decided to be on that side of the equation.
Speaker 5: They don't want to go And that's why this business
Speaker 5: takes no money because all it takes is hustle. It
Speaker 5: ain't cost you nothing to go knock on that door,
Speaker 5: ride down the street. But once you have that house,
Speaker 5: now you need to be in the relationships where you
Speaker 5: find people that when.
Speaker 2: You started, Yeah, how did you develop the relationship to
Speaker 2: get a buyers?
Speaker 6: I put it on Facebook market Place that was it.
Speaker 5: Yeah, And the guy called his wife called me, and
Speaker 5: then that weekend he agreed to buy it.
Speaker 3: So do you have like a team of investors and
Speaker 3: enabled in your area now that you kind of like
Speaker 3: work with on a continuous basis.
Speaker 6: I'm six hundred, six hundred.
Speaker 4: So how do you like email blasted out?
Speaker 5: To be email blast and text blasts? So we use
Speaker 5: mail Chimp to send out emails and we sell this
Speaker 5: send out. We use call loop dot com to send
Speaker 5: out a blast text message?
Speaker 6: Are they like fighting over the deals sometimes? Oh? Yeah,
Speaker 6: that's what you want. I'm frizzy. So you don't want
Speaker 6: to come buddy buddy with no investor. No, it can't
Speaker 6: be too close because I'm in a marketplace.
Speaker 4: Business is business.
Speaker 5: Yeah, so you say you're going to give me fifty
Speaker 5: but you say fifty two. That's where I'm going. Everybody
Speaker 5: gotta eat.
Speaker 6: I got to eat all facts.
Speaker 4: This is dope. This is actually pretty dope. I got
Speaker 4: actually pretty dope.
Speaker 6: Now for the clothes. I got a question.
Speaker 2: I saw this in one of your is a double closing?
Speaker 2: I've never heard that before. What is a double closing?
Speaker 5: So essentially, people that are now not good with setting expectations.
Speaker 5: I like to say with the buyer or seller, with
Speaker 5: your client, they don't know that you are going to
Speaker 5: make profit from this deal, or sometimes the profit is
Speaker 5: too much.
Speaker 6: Now we'll say not all the time. Sometimes the profit
Speaker 6: is just too much.
Speaker 5: So a double close is where you said, just to
Speaker 5: say that house down the street we're talking about instead
Speaker 5: of thirty, you got it for ten thousand, right, and.
Speaker 6: Now you're selling it to the end.
Speaker 5: Now you're selling it to the flipper for fifty thousand,
Speaker 5: so you're making a forty thousand spread. And sometimes if
Speaker 5: you don't have the right buyers, they may be like,
Speaker 5: I'm not paying you fifty thousand. You got it for ten, right,
Speaker 5: But the numbers really work for him, but he not
Speaker 5: giving you that. So sometimes you go ahead and use
Speaker 5: transactional funding to close on that first ten thousand and
Speaker 5: then turn around the next minute and sell it to
Speaker 5: my guy over here. But what happens is on a hudsheet,
Speaker 5: which is a sheet that everybody has to use. It
Speaker 5: close the property, it's gonna say what you bought it for.
Speaker 5: But if you do a double close, he's never going
Speaker 5: to see that side of the transaction. So it's something
Speaker 5: that I tell people never really I've never done one, right,
Speaker 5: So it's not really needed, especially if you just got
Speaker 5: to set a good expectation if you have good cash buyers.
Speaker 5: And this is one of my things I say to
Speaker 5: cash buyers, if I find a property for a dollar
Speaker 5: and the numbers work for you at one hundred thousand,
Speaker 5: would you.
Speaker 6: Be upset with me making a ninety nine thousand dollar fee?
Speaker 6: If they say yes, kick him out.
Speaker 5: Because when you change your mindset, you realize money is
Speaker 5: not a limited thing. When I started to think that
Speaker 5: I had to get these properties because you know, you
Speaker 5: got money, when I changed it and said, there's guys
Speaker 5: out here that if they don't flip houses, they don't eat,
Speaker 5: they need me, you know, so I no longer look
Speaker 5: at some money as a limited commodity.
Speaker 4: Attorney state versus title state, what's the difference with that?
Speaker 5: Let me see, New York is an attorney state and
Speaker 5: North Carolina's an attorney state. So in states, you have
Speaker 5: two ways you can close the real estate transaction. Title companies,
Speaker 5: which essentially due to title research and look up the
Speaker 5: property and make sure it's free and clear, are called
Speaker 5: title states their actual companies. And then you have attorney states,
Speaker 5: where only attorneys are allowed to close real estate transactions.
Speaker 5: And North Carolina and New York is an attorney state.
Speaker 5: I believe Philly is a title company state. In Baltimore
Speaker 5: is a Baltimore.
Speaker 2: What's the process of setting up a closing with the
Speaker 2: title company.
Speaker 5: Yeah, so, once you get that first contract with the homeowner,
Speaker 5: you're gonna send the contract to the title company or
Speaker 5: attorney and tell them to start title search. And all
Speaker 5: title search does is to make sure the property is
Speaker 5: owned free and clear, no lians on cumbers is on
Speaker 5: the property, and that it can be transferred smoothly to
Speaker 5: the new owner. And then once they do that, then
Speaker 5: once you have that paperwork and you're out finding your buyer,
Speaker 5: and then you call them and say, hey, look, I
Speaker 5: have an assignment of that contract I gave you, And
Speaker 5: all they're going to do is switch your name with
Speaker 5: the new buyer's name, and your fee is written on
Speaker 5: that contract. And at the closing you're gonna get your money,
Speaker 5: and then the sellers are gonna get their money and
Speaker 5: the buyers are gonna walk away with the property.
Speaker 4: And the contract depends on each date, it's different.
Speaker 6: Yeah, yeah, typically it's just different. Easy.
Speaker 4: Once you have on it's like a template that.
Speaker 6: Yeah, you keep filling it out.
Speaker 5: Yeah, my graduates from my school being force.
Speaker 4: Back, drop Bag Drop, Mike, drop Bag, drop Drop.
Speaker 5: Hey everyone, this is Tatiana Manning post of Real Talk
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