| by Kenneth Chase | 1 comment

PART 1 of 5➡️ CREATIVE REAL ESTATE WHOLESALING (Short sale, Subject To, Lease Options & Rent to Own)


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Club the twos rentable rent to own these options you know a little every age email winners of attraction a my friend in this five-part series I want to talk to you I want to hear some information with you on short sales that I’m doing the training okay it’s a five part series and you want to be sure you watch everything when talk about real estate also an of course and exit strategies short sales runs of our subject tools rental a rent to own these options you know are going to well every age in a winter well attraction motivated sellers or these are the things we’re gonna talk about in this series it’s a important training they need to take advantage of make sure you watch all five parts of this video does that make sense so we’re gonna have some fun let’s go ahead and and get into it okay alright so there’s this question that came in and about how would you structure this deal motivated seller divorce needs to sell in 30 days or less how home not listed and doesn’t have doesn’t want to use a realtor okay alright so this person says motivated seller okay alright so so far she says divorce okay divorce that she that that is divorce is an event in someone’s life it doesn’t mean multi varicella by the way okay but that could be a source of motivation to sell right need to sell in 30 days or less all right that doesn’t mean motivation either everybody want to sell quick faster simpler easier that doesn’t mean motivation either okay home not listed and doesn’t want to use realtor that definitely does not sound like someone has motivated because somebody is not listening with the route or does not mean that motivated usually it means the anomaly in fact people that are motivated I’ve listed with the route or a lot of times and maybe it has expired and now they’ve run out of time right alright so so that takes me back to this need to sell in 30 days or less motivation means need to sell now and yesterday and before that 30 days or less definitely does not sound like motivation now does it sound like you can’t create a deal out of this year yet no doesn’t you may still be able to create a deal out of this again time is a as an important factor in this right in this tin determine if something is motivated or not need minimum of twenty thousand dollars to be able to walk their own ways that definitely does not sound like motivation if they were motivated they will not be asking for money they would just want to walk okay they just want to get rid of the property I saw yesterday not 30 days or less retail deal is 30 days 60 days 90 days or less that’s typically what people would retail you want of course they want to sell as fast as possible but they may still have up to 30 days 60 days so so far right now okay you have to understand when I’m looking at this type of first scenario I every information that I get I used to prequalify the delete to prequalify the particular prospect okay alright so the property is the gawad property custom home built in 2017 that means nothing to me by the way okay unless I see it only means something to me when I compared with other custom home built in 2017 that means is no more custom right so custom for our type of business as wholesalers as investors custom it’s not always a good thing it just means a lot of time means you have to come up with thee it means you have to come up with the number okay it means you have to come up with the number two to value the property to appreciate the property properly okay so custom it does not make me as an investor it’s not always a plus it could be sometimes okay but it’s not always a plus for me so it’s not really an important information for me at this point square footage 1443 okay lot size 5500 original purchase price again a lot of this information doesn’t mean anything to me original purchase price is 225 thousand dollars okay this could mean something to me but typically not okay but I’ll I’ll let you know once it means something to me okay estimated value 265 okay so the previous number to $25,000 this is what it could mean to me but it still speculation okay but it could tell me that this person has purchased this property recently and not they’re delusional they think the property’s worth $40,000 more and which is which could be why they think they’re doing us a favor by asking for just $20,000 so they’re asking for only half of the equity in their opinion right but again you know that’s just me speculating right now but a lot of times I am right on that okay I’m right on that money but but let’s just keep going right now they are asking for 240 okay so there you go 240 they’re asking for two more of 240 remaining balance or loan is 215 so they’re asking for 240 so what is that saying to you 215 they have to pay off a loan on the property right and they want to forty so the spread between that is $25,000 so they want to be able to close pay for their closing cost and walk away with 20,000 lot number just had enough okay this is kind of like premeditated murder okay usually motivated sellers are not calculated like that they’re not they just want to walk it’s all emotional they just want to walk this property has become a liability for them from an emotional standpoint especially but yes including financial standpoint in a lot of ways okay and they just wanna walk okay but this person is being extremely calculative I understand that admire V hunt posted this and she’s a wholesaler like everybody else not just but she’s a hotel like everybody else I understand that you know she posted this but if the if the seller gave you this details and all calculated like this you should consider that that they’re not motivated okay just like that that doesn’t mean you should have talked to them but you have to be very very good at asking the right question to extract the right motivation out of this prospect okay you have to work at selling if you’re if you enjoy selling sure you know if you enjoy selling people and you know how to ask the right question and close them on dropping that price down to five thousand dollars sure okay but that’s not my style personally my style is to do a lot more marketing that I would maybe in a way that I wouldn’t need to be selling people like that I would just focus on talking to people that are already motivated okay alright so so how do you structure this deal okay the first thing I want to do before I dive into the comments down here because this video like I said earlier it’s gonna be a series of five okay and and you need to watch every single one of them to really understand where I’m coming from with this and it’s a save you a lot of headache and time as you continue to build your real estate wholesaling and investing business okay well before I dive into that let me use my calculator there’s a calculator that I use okay so I’m gonna basically say training okay I’m gonna call this training okay and let me see if I can I span this out let’s make this a little bigger all right okay that’s too big 24:25 there you go so you can see better all right okay so I’m gonna pick a column here this is my calculator this is just how I this is how I pre qualified leads very simply so asking all right asking is 240 240 okay all the numbers are in thousands if you look here she says no repairs needed per client no she says bad number bad numbers all this stuff doesn’t really mean anything to me yet these things only means something to me once I see the number and makes sense and I feel and I’m how would I sell once I start thinking how would I sell this that’s when I look at this information what I’m looking at how can I buy this I’m just looking at strictly numbers okay all right so the asking is 240 okay you see the numbers that I you put onto me right here okay estimated cost of repair if they say no repair and I haven’t seen the property I always assume at least $10,000 I always assumed that if I get to the property and it’s for sure for sure purely spanking brand-new that they’ve never lived in before then I can take that out but chances are no chances are this number will be more okay so I’ll leave you like that for now this number is the Zestimate I like to know what the property is worth so even though they’re telling me that this property is what is worth to $65,000 I’m not just gonna believe that I would need personally I use estimate okay these are just preliminary evaluation of what the property is worth these are if zestimates or rito calm julia calm and reffing calm if they don’t have enough data to give me a good number then this is typically not a properly I look for anyway because it’s gonna be that harder it’s gonna be that much harder for me to sell if this plot for this for platform C they don’t have enough data it’s gonna be that much harder for me to sell because again as a real estate wholesaler I’m also looking for ways to sell okay and I get where she’s going she’s probably thinking more subject to income flow cash flow type of deal but I always pre-qualified with also retail value of the property okay so I don’t have the address of this property okay I don’t so the only number I have is the a what they say is worth I’m not gonna believe that but just for the sake of this example I’m just gonna put that number in here she says this what 265 right so I’m gonna tap over okay I’m gonna tap over to here let’s see all right sure my maximum allowable offer base of this could normally be this calculation right here okay let’s see here so I’m gonna take all of this out everything here out I’m gonna call this 265 basically all right and that will this number is basically telling me that my best offer if I was to buy this or put this on a contract to be able to flip its 162 so let’s go look at that okay they are asking 240 I’m Way too far off of off of them so it’s typically they’re not motivated okay that’s number one Q that did not motivated the numbers doesn’t show that from a retail standpoint okay so my offer is 162 okay actual sales price will have to be 162 okay if I do decide if they can’t do that I’m just not I’m not gonna do the numbers okay I’m not gonna do number it’s not if they’re 165 or 170 I look at the number a little closer but 240 is too far off okay and the way this actual sales price is calculated is it picks the lowest okay the minimum of 240 which is asking and my maximum allowed we offer and that’s what that is okay the total cost of acquisition which is TCA will have to be 172 which is I am assuming that this number will remain 10 if this number goes to $50,000 it changes this it changes this okay it changes that number right there which is my my maximum allowable to 122 you see that but I’m zoom is 10 right if the property is custom a custom-built house last year typically means I will need to make sure that everything is upgraded everything is brand new it doesn’t mean no repair it means I will probably want to put some taste in it well I won’t want to make sure the property confirmed with the rest of the property in the neighborhood but there’s always some kind of money to spend on repair okay that’s why I put $10,000 default or more depending on when I inspect the property but this is just me prequalify the the lead okay cost of funding for that 172 if I was to rehab this property my cost of funding this property I always had some 15 percent okay so that would be $26,000 okay I’ll be $26,000 okay a cost of closing and holding on to the property for at least one year okay besides funding the property it’s probably about twelve thousand dollars I always assume about seven percent okay I was asking about seven percent actually is several hours assume about ten to seven percent so imagine or tea again when you’re purchasing a property but you wanna assume worst case scenario okay worst-case scenario okay what’s good so that’s actually I always assume 10% for closing and all didn’t present it could be less than more but this is just how I estimate this numbers to make it to make it make sense okay so for this particular ideal I my food for me to find us one seventy two thousand ten percent is about $17,000 okay now this one is total cost of the project that would be 17 plus 26 plus one times two that’s two fifteen that’s already total cost of project for me to 15 so all money in if assuming this properties was 265 every dime must be on the two hundred and fifteen thousand dollars and that would net me about fifty thousand dollars remember all closing costs all it’s already estimated right and now me a return on investment for the total cash investment in spite of the fact that that money didn’t come out of my pocket 23% okay so it’s basically me flipping $215,000 not my money because I financed it using this $26,000 none of my money I changed that money increase by 23 percent within the 40 50 60 days span for rehabbing the property if I didn’t rehab the property I would have probably walk away with 10 of this fifty thousand dollars ten or twenty and somebody will still be profitable does that make sense that’s if I were straight out traditional flipping the property or rehabbing the property does that make sense so this numbers are already feeling okay now there’s some arguments here that Miss hunt is arguing here and you know we’re gonna look into it and again this is strictly my opinion if it makes sense to you it makes sense to you if it doesn’t make sense if what she’s saying makes a lot more sense please by all means there’s no one way it’s not a one-way street in this business and it really depends on what you’re comfortable with for me I’m comfortable with the numbers being comfortable okay if the number is not comfortable I’m not comfortable okay so I want to sleep nice at night I want to go to bed sleeping in real nice at night if I feel like the homeowner is gonna turn around and say they’re screwed up some once I’m out some wait two years from now I’m not gonna be comfortable I don’t want to do business that way I want to go to bed I don’t care if I haven’t made any money today I just want to go to bed sleeping with some peace in my mind okay and I’m sure most of you feel that way but what makes you feel that way may be different from mine what makes me feel that way maybe different from Miss hunts okay so but I’m just gonna point out my difference in opinions as people continue to talk about this so what I notice is that any time numbers doesn’t work out right like this that means they’re not gonna accept my offer this is my offer right here this will be my offer these are the numbers that will make me make money okay these are the numbers that I need in order to make money some alpha I mean make sure that’s a little lighter right this number right here maximum allowable offer will allow me and my investors and everybody to make money and including the homeowner to be comfortable because I will basically outrightly purchase the property out of their hands they can’t turn around that didn’t they didn’t choose to sell them in the house they have to agree to this number that means they have to move it that means the property has to be a complete liability for them to be willing to sell at this price if they are earning too much so for example if you go back okay so that’s today’s part of the series make sure you download the book smart Willis the wholesaling comm smart real estate wholesaling dot-com you can see the link on the screen make sure you download the book and take advantage of the information in the book is absolutely for free and make sure you stay plugged in on this because you know this is getting better and better as you get to it make sure you don’t miss any part of this series and hopefully you’ve been enlighten and educate it and I’ll see you on the next one and these

1 Comment

OLA Tux Abitogun

Sep 9, 2018, 12:19 am Reply

What do you like most about what you saw/heard in this video?

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