1 00:00:02,060 --> 00:00:05,540 (Transcribed by TurboScribe.ai. Go Unlimited to remove this message.) Welcome to the Business Credit and Financing Show. 2 00:00:06,020 --> 00:00:08,460 Each week, we talk about the growth strategies 3 00:00:08,460 --> 00:00:10,240 that matter most to entrepreneurs. 4 00:00:11,020 --> 00:00:13,600 Listen in as we discuss the secrets to 5 00:00:13,600 --> 00:00:16,400 getting credit and money to start and grow 6 00:00:16,400 --> 00:00:17,240 your business. 7 00:00:17,460 --> 00:00:19,820 And enjoy as we talk with seasoned business 8 00:00:19,820 --> 00:00:22,680 owners, coaches, and industry leaders on a variety 9 00:00:22,680 --> 00:00:25,700 of topics from advertising and marketing to the 10 00:00:25,700 --> 00:00:28,140 nuts and bolts of running a highly successful 11 00:00:28,140 --> 00:00:28,720 business. 12 00:00:29,020 --> 00:00:31,340 And now, to introduce the host of our 13 00:00:31,340 --> 00:00:35,300 show, financial expert and award-winning author, Ty 14 00:00:35,300 --> 00:00:36,020 Crandall. 15 00:00:36,640 --> 00:00:38,000 Hello, and thanks for joining us today. 16 00:00:38,100 --> 00:00:39,580 I'm super excited you could be here because 17 00:00:39,580 --> 00:00:41,900 today we are going to help you build 18 00:00:41,900 --> 00:00:45,720 an effective and efficient and profitable real estate 19 00:00:45,720 --> 00:00:46,120 business. 20 00:00:46,220 --> 00:00:47,160 We're actually gonna help you in a lot 21 00:00:47,160 --> 00:00:49,820 of different areas, especially fix and flips. 22 00:00:50,180 --> 00:00:51,560 And with us to help make this happen 23 00:00:51,560 --> 00:00:53,760 as well, one of A&E's most popular 24 00:00:53,760 --> 00:00:54,340 stars. 25 00:00:54,580 --> 00:00:56,380 So with us today is Jameel Damji. 26 00:00:56,460 --> 00:00:58,640 Now, Jameel is a nationally recognized real estate 27 00:00:58,640 --> 00:01:01,660 investor, entrepreneur, and educator with a passion for 28 00:01:01,660 --> 00:01:04,860 empowering others to create generational wealth through real 29 00:01:04,860 --> 00:01:05,100 estate. 30 00:01:05,200 --> 00:01:07,180 Now, as the co-founder of Kegly, the 31 00:01:07,180 --> 00:01:09,740 largest wholesale real estate operation in the United 32 00:01:09,740 --> 00:01:11,920 States, Jameel has helped scale the business to 33 00:01:11,920 --> 00:01:16,080 118 markets and counting, make it a powerhouse 34 00:01:16,080 --> 00:01:16,780 in the industry. 35 00:01:17,040 --> 00:01:18,860 Now, in addition to his success with Kegly, 36 00:01:19,180 --> 00:01:22,020 Jameel is also the visionary behind Astro Flipping, 37 00:01:22,160 --> 00:01:25,080 a thriving community of over 4,000 real 38 00:01:25,080 --> 00:01:26,820 estate investors from around the globe. 39 00:01:27,000 --> 00:01:29,660 Now, this community has collectively generated tens of 40 00:01:29,660 --> 00:01:32,600 millions of dollars in profits, with Jameel providing 41 00:01:32,600 --> 00:01:36,100 guidance, mentorship, and strategic framework that helps members 42 00:01:36,100 --> 00:01:38,240 thrive in the world of real estate wholesaling. 43 00:01:38,360 --> 00:01:41,820 Now, Jameel's expertise and engaging personality also earned 44 00:01:41,820 --> 00:01:44,020 him a spot on the national television as 45 00:01:44,020 --> 00:01:46,280 the host of A&E's popular show, The 46 00:01:46,280 --> 00:01:48,900 Triple Digit Flip, where he flips houses while 47 00:01:48,900 --> 00:01:51,720 sharing his wit and wisdom with viewers, whether 48 00:01:51,720 --> 00:01:54,180 on screen or in person, Jameel's mission is 49 00:01:54,180 --> 00:01:56,180 clear, to teach others how to profit in 50 00:01:56,180 --> 00:01:58,480 real estate while maintaining integrity. 51 00:01:59,080 --> 00:02:01,420 and balance in their personal and professional lives. 52 00:02:01,640 --> 00:02:02,740 Jameel, thanks for joining us today. 53 00:02:02,960 --> 00:02:04,360 Thanks for having me, excited to be here. 54 00:02:04,580 --> 00:02:05,740 Yeah, man, I'm really excited you could be 55 00:02:05,740 --> 00:02:05,920 here. 56 00:02:06,160 --> 00:02:07,639 So let me ask you this, like what 57 00:02:07,639 --> 00:02:09,380 got you into, you're really a specialty in 58 00:02:09,380 --> 00:02:11,000 a lot of different stuff, but what is 59 00:02:11,000 --> 00:02:12,480 a part of real estate that you specialize 60 00:02:12,480 --> 00:02:14,320 and enjoy doing the most? 61 00:02:14,660 --> 00:02:17,620 Well, so I cut my teeth in the 62 00:02:17,620 --> 00:02:18,580 world of wholesaling. 63 00:02:18,800 --> 00:02:20,680 And for those who are unfamiliar with what 64 00:02:20,680 --> 00:02:22,960 wholesaling is, that's where we find a property 65 00:02:22,960 --> 00:02:24,480 that's in distress condition. 66 00:02:24,760 --> 00:02:27,220 You can recognize these in your neighborhoods where 67 00:02:27,220 --> 00:02:29,580 they're boarded up, maybe there was like a 68 00:02:29,580 --> 00:02:31,460 hoarding situation going on in there, but they're 69 00:02:31,460 --> 00:02:34,300 typically vacant and not habitable. 70 00:02:34,480 --> 00:02:37,600 And those properties tend to become eyesores in 71 00:02:37,600 --> 00:02:39,880 the neighborhood and devalue property. 72 00:02:40,200 --> 00:02:43,320 And so my specialty is finding those abandoned 73 00:02:43,320 --> 00:02:47,860 or those unloved properties and placing them with 74 00:02:47,860 --> 00:02:50,080 investors who will then fix and flip those 75 00:02:50,080 --> 00:02:52,640 properties and make them beautiful and put them 76 00:02:52,640 --> 00:02:53,620 back into the retail market. 77 00:02:53,800 --> 00:02:56,960 So for me, my favorite strategy is wholesaling 78 00:02:56,960 --> 00:02:58,800 because it minimizes the risk. 79 00:02:58,920 --> 00:03:01,380 I don't have to necessarily buy the property 80 00:03:01,380 --> 00:03:02,500 and flip it myself. 81 00:03:02,740 --> 00:03:05,360 I can get contractual rights to purchase the 82 00:03:05,360 --> 00:03:07,160 house, and then I sell those rights to 83 00:03:07,160 --> 00:03:08,400 another investor for a fee. 84 00:03:08,780 --> 00:03:10,240 And that's what I created my business model 85 00:03:10,240 --> 00:03:10,500 on. 86 00:03:10,640 --> 00:03:13,480 So we do anywhere between 60 to 100 87 00:03:13,480 --> 00:03:15,940 of those contract flips in my corporate store, 88 00:03:16,300 --> 00:03:18,980 and then nationally hundreds of those every single 89 00:03:18,980 --> 00:03:19,240 month. 90 00:03:19,360 --> 00:03:22,160 And you can make profits on anywhere between 91 00:03:22,160 --> 00:03:25,460 10 to $50,000 on one single contract 92 00:03:25,460 --> 00:03:25,880 flip. 93 00:03:25,880 --> 00:03:27,760 And so it's a very lucrative strategy. 94 00:03:28,040 --> 00:03:31,120 It de-risks in the situation that you're 95 00:03:31,120 --> 00:03:32,400 not really holding anything. 96 00:03:32,680 --> 00:03:34,180 So if the market turns on you for 97 00:03:34,180 --> 00:03:36,260 whatever reason, you're not gonna be exposed. 98 00:03:36,800 --> 00:03:39,160 And it's a great beginner strategy because it 99 00:03:39,160 --> 00:03:41,280 doesn't require you to have a tremendous amount 100 00:03:41,280 --> 00:03:43,160 of cash investment to get involved in it. 101 00:03:43,280 --> 00:03:46,120 So that's where I got started in the 102 00:03:46,120 --> 00:03:47,160 real estate space. 103 00:03:47,460 --> 00:03:50,640 I still wholesale because it's an easy way 104 00:03:50,640 --> 00:03:51,980 to create value. 105 00:03:52,120 --> 00:03:54,780 And it lets me find the best projects 106 00:03:54,780 --> 00:03:55,840 to fix and flip myself. 107 00:03:56,080 --> 00:03:58,520 So I'll pass on other deals to other 108 00:03:58,520 --> 00:03:58,960 investors. 109 00:03:59,140 --> 00:04:00,320 And then when I find the one that 110 00:04:00,320 --> 00:04:02,180 really speaks to me, I'll buy that one 111 00:04:02,180 --> 00:04:03,100 and flip that one myself. 112 00:04:03,460 --> 00:04:07,220 So essentially I monetize the deals that I 113 00:04:07,220 --> 00:04:07,720 pass on. 114 00:04:08,180 --> 00:04:09,460 So I love everything you said. 115 00:04:09,860 --> 00:04:12,060 Is it accurate that maybe you make about 116 00:04:12,060 --> 00:04:15,519 10% of the sales price potentially in 117 00:04:15,519 --> 00:04:17,440 profit for a wholesale deal? 118 00:04:17,640 --> 00:04:19,399 Is that, I heard that the other day, 119 00:04:19,459 --> 00:04:20,200 and I don't know if that number is 120 00:04:20,200 --> 00:04:20,480 any accurate. 121 00:04:20,480 --> 00:04:23,040 Not on a wholesale deal, on a flip, 122 00:04:23,040 --> 00:04:26,200 somewhere between 10 and 15% is we're 123 00:04:26,200 --> 00:04:27,240 averaging out right now. 124 00:04:27,540 --> 00:04:30,340 And on a wholesale deal, my average profit 125 00:04:30,340 --> 00:04:32,900 on a wholesale contract flip will be about 126 00:04:32,900 --> 00:04:35,220 10 to $15,000 per deal. 127 00:04:35,440 --> 00:04:36,620 So about 10 to 15K per deal. 128 00:04:36,820 --> 00:04:38,940 Now when you go into wholesale deal like 129 00:04:38,940 --> 00:04:40,520 this to begin with, and you said very 130 00:04:40,520 --> 00:04:41,520 little money out of pocket. 131 00:04:41,860 --> 00:04:44,120 So typically what's being asked for is the 132 00:04:44,120 --> 00:04:45,740 money in the earnest deposit, right? 133 00:04:45,900 --> 00:04:47,700 That you're buying it from, that's the money 134 00:04:47,700 --> 00:04:48,380 you're exchanging. 135 00:04:48,560 --> 00:04:49,140 Correct, yeah. 136 00:04:49,260 --> 00:04:51,960 And so EMD, earnest deposit, is typically the 137 00:04:51,960 --> 00:04:53,900 amount of cash outlay that you need to 138 00:04:53,900 --> 00:04:55,060 get into one of these things. 139 00:04:55,320 --> 00:04:58,280 But there's ways to defer the deposit of 140 00:04:58,280 --> 00:05:01,900 an earnest money until after you pass your 141 00:05:01,900 --> 00:05:02,680 inspection period. 142 00:05:02,880 --> 00:05:05,140 So you can structure these contracts in such 143 00:05:05,140 --> 00:05:07,100 a way where if you really are strapped 144 00:05:07,100 --> 00:05:08,500 for cash and you don't even have the 145 00:05:08,500 --> 00:05:10,520 thousand or $2,000 to put down as 146 00:05:10,520 --> 00:05:12,360 an earnest deposit, you can make it such 147 00:05:12,360 --> 00:05:15,280 that your EMD isn't due until you waive 148 00:05:15,280 --> 00:05:16,500 your contingencies. 149 00:05:16,720 --> 00:05:18,640 Now, typically what happens in a wholesale deal 150 00:05:18,640 --> 00:05:21,240 is you sell the contract during your inspection 151 00:05:21,240 --> 00:05:22,800 period or your contingency time. 152 00:05:23,100 --> 00:05:24,980 And so if you're successful in lining up 153 00:05:24,980 --> 00:05:27,020 a buyer for your contract, you can have 154 00:05:27,020 --> 00:05:28,840 the buyer deposit the earnest money and now 155 00:05:28,840 --> 00:05:29,840 you're into the deal for nothing. 156 00:05:30,160 --> 00:05:32,740 And typically you're lining up those buyers before 157 00:05:32,740 --> 00:05:33,640 you're even going in. 158 00:05:33,700 --> 00:05:35,580 I mean, you have a massive audience of 159 00:05:35,580 --> 00:05:35,860 students. 160 00:05:36,240 --> 00:05:37,780 So that's probably what you're instructing them is 161 00:05:37,780 --> 00:05:39,920 to line up your buyers before you even 162 00:05:39,920 --> 00:05:41,060 go in to make an offer on the 163 00:05:41,060 --> 00:05:41,340 property. 164 00:05:41,420 --> 00:05:42,120 Absolutely, yeah. 165 00:05:42,180 --> 00:05:43,980 So one of the things that we do 166 00:05:43,980 --> 00:05:46,700 well at Kegley is we've built some incredible 167 00:05:46,700 --> 00:05:49,440 relationships across the nation with fix and flip, 168 00:05:49,780 --> 00:05:52,040 mom and pop shops, hedge funds, different types 169 00:05:52,040 --> 00:05:53,640 of real estate investors looking for these types 170 00:05:53,640 --> 00:05:56,360 of devalued or undervalued opportunities. 171 00:05:56,840 --> 00:05:57,720 And they're waiting. 172 00:05:57,920 --> 00:05:59,800 They're essentially waiting for us to get something 173 00:05:59,800 --> 00:06:00,660 good under contract. 174 00:06:00,860 --> 00:06:02,680 And then when we do have one, we 175 00:06:02,680 --> 00:06:04,500 just send it out on an email blast 176 00:06:04,500 --> 00:06:05,660 and the bidding begins. 177 00:06:06,120 --> 00:06:06,880 I love Kegley. 178 00:06:07,100 --> 00:06:08,360 That name is cool. 179 00:06:08,500 --> 00:06:09,740 It's a fun one, yeah. 180 00:06:10,060 --> 00:06:11,620 I mean, I don't want my ADHD to 181 00:06:11,620 --> 00:06:13,240 take me to a sidetrack, but who came 182 00:06:13,240 --> 00:06:13,800 up with that name? 183 00:06:13,840 --> 00:06:14,840 Did you come up with that name? 184 00:06:14,960 --> 00:06:15,720 Funny that you asked. 185 00:06:15,720 --> 00:06:17,600 So my ex-wife and I will probably 186 00:06:17,600 --> 00:06:18,700 have different answers. 187 00:06:18,920 --> 00:06:20,380 I think she thinks she did it. 188 00:06:20,620 --> 00:06:22,220 I feel like I did, but maybe it 189 00:06:22,220 --> 00:06:22,980 was the two of us. 190 00:06:23,040 --> 00:06:26,160 But what happened was we were really struggling 191 00:06:26,160 --> 00:06:28,420 with finding a name that we could get 192 00:06:28,420 --> 00:06:29,920 a good domain for. 193 00:06:30,020 --> 00:06:31,920 So if you've ever tried to buy a 194 00:06:31,920 --> 00:06:34,360 domain from GoDaddy, you'll find that anything that's 195 00:06:34,360 --> 00:06:37,640 single word is gone, or tens of thousands 196 00:06:37,640 --> 00:06:38,220 of dollars. 197 00:06:38,660 --> 00:06:41,160 And so we figured out that maybe we 198 00:06:41,160 --> 00:06:42,920 don't have to use a real word, right? 199 00:06:42,940 --> 00:06:44,280 Maybe we can make a word up. 200 00:06:44,280 --> 00:06:46,640 And so we thought about what do we 201 00:06:46,640 --> 00:06:47,240 do, right? 202 00:06:47,280 --> 00:06:49,120 What is the essence of our business? 203 00:06:49,260 --> 00:06:52,000 And it really is trading your keys and 204 00:06:52,000 --> 00:06:53,560 making yourself happy, right? 205 00:06:53,580 --> 00:06:55,860 So we took Key, we took Glee, put 206 00:06:55,860 --> 00:06:57,400 them together and there you have it. 207 00:06:57,640 --> 00:06:58,000 I love it. 208 00:06:58,080 --> 00:06:58,500 I love that. 209 00:06:58,600 --> 00:07:00,200 And when we talk, we help a lot 210 00:07:00,200 --> 00:07:02,200 of businesses set their business up properly. 211 00:07:02,380 --> 00:07:03,180 It's the same thing I said. 212 00:07:03,300 --> 00:07:05,260 If you want a good company name, you've 213 00:07:05,260 --> 00:07:06,940 got to choose something that means nothing to 214 00:07:06,940 --> 00:07:07,420 anybody. 215 00:07:07,600 --> 00:07:09,320 Then you can get the domain and then 216 00:07:09,320 --> 00:07:10,000 it's something cool. 217 00:07:10,100 --> 00:07:12,000 But Kegley, the way that those two go 218 00:07:12,000 --> 00:07:13,600 together, I just think it's brilliant. 219 00:07:13,600 --> 00:07:15,980 And the underlying meaning, you could tell, Keys, 220 00:07:16,140 --> 00:07:16,340 Glee. 221 00:07:16,760 --> 00:07:17,940 Yeah, it's great. 222 00:07:18,160 --> 00:07:20,040 It's wholesome, it's neat, and it gets the 223 00:07:20,040 --> 00:07:21,980 message across, so all boxes checked. 224 00:07:22,220 --> 00:07:24,180 Yeah, so lessons to everybody watching this, because 225 00:07:24,180 --> 00:07:25,860 this is a really good strategy to be 226 00:07:25,860 --> 00:07:27,420 able to come up with your company name 227 00:07:27,420 --> 00:07:28,740 if you don't have one for one that 228 00:07:28,740 --> 00:07:29,140 you're launching. 229 00:07:29,420 --> 00:07:31,920 So that being said, back to wholesaling, when 230 00:07:31,920 --> 00:07:34,820 you're buying the property and you've got a 231 00:07:34,820 --> 00:07:36,480 tentative buyer lined up. 232 00:07:36,680 --> 00:07:38,940 So when you're evaluating it, how are you 233 00:07:38,940 --> 00:07:39,520 evaluating? 234 00:07:39,740 --> 00:07:41,340 I mean, how does somebody, how do you 235 00:07:41,340 --> 00:07:41,600 teach? 236 00:07:41,680 --> 00:07:42,840 I know how you, it's going to be 237 00:07:42,840 --> 00:07:43,080 different. 238 00:07:43,080 --> 00:07:43,980 So let me rephrase the question. 239 00:07:44,100 --> 00:07:45,780 How does it, you teach a student to 240 00:07:45,780 --> 00:07:48,860 properly evaluate, to know that there's enough room 241 00:07:48,860 --> 00:07:51,200 in that property to be able to know 242 00:07:51,200 --> 00:07:53,180 what to buy it for so they don't 243 00:07:53,180 --> 00:07:55,180 make a mistake on that first contract? 244 00:07:55,420 --> 00:07:56,360 What a great question, Ty. 245 00:07:56,460 --> 00:07:58,940 So the thing that I really pride myself 246 00:07:58,940 --> 00:08:02,320 on is my capacity to value property. 247 00:08:02,460 --> 00:08:04,800 So what I essentially did early on in 248 00:08:04,800 --> 00:08:06,860 my career was I went to appraisal school 249 00:08:06,860 --> 00:08:08,820 and I learned how to appraise a home 250 00:08:08,820 --> 00:08:09,920 the way an appraiser would. 251 00:08:09,920 --> 00:08:14,140 And then I interviewed a hundred appraisers and 252 00:08:14,140 --> 00:08:17,460 I found out what were the common attributes, 253 00:08:17,620 --> 00:08:20,140 the common values, the things that lined up 254 00:08:20,140 --> 00:08:22,700 between myself and these hundred appraisers. 255 00:08:22,820 --> 00:08:25,680 What were the meat and potato items that 256 00:08:25,680 --> 00:08:27,440 we were looking at in order to determine 257 00:08:27,440 --> 00:08:27,940 value? 258 00:08:28,420 --> 00:08:30,160 And what I was able to do was 259 00:08:30,160 --> 00:08:31,200 come up with a framework. 260 00:08:31,419 --> 00:08:32,980 And that framework is what I call my 261 00:08:32,980 --> 00:08:33,900 appraisal rules. 262 00:08:34,080 --> 00:08:36,880 And when you use these appraisal rules, you're 263 00:08:36,880 --> 00:08:39,600 essentially going by the guidelines of how an 264 00:08:39,600 --> 00:08:41,280 appraiser would value the property. 265 00:08:41,500 --> 00:08:43,280 And you can do this when you commit 266 00:08:43,280 --> 00:08:45,800 the appraisal rules to memory, which I essentially 267 00:08:45,800 --> 00:08:46,160 have. 268 00:08:46,380 --> 00:08:48,140 What it allows you to do is get 269 00:08:48,140 --> 00:08:50,620 really, really dialed in on what a property 270 00:08:50,620 --> 00:08:52,220 would be worth once it's fixed up. 271 00:08:52,340 --> 00:08:54,420 So I teach people how to do that. 272 00:08:54,620 --> 00:08:57,060 I use some free software like Zillow, or 273 00:08:57,060 --> 00:08:59,280 you can even get paid software that mimics 274 00:08:59,280 --> 00:09:01,800 the MLS, whatever you're interested in. 275 00:09:01,900 --> 00:09:03,440 But Zillow is just as good. 276 00:09:03,760 --> 00:09:05,780 And I can show people how to take 277 00:09:05,780 --> 00:09:08,580 a look at the property that you have 278 00:09:08,580 --> 00:09:11,420 as a subject and how to extrapolate what 279 00:09:11,420 --> 00:09:13,260 it could become with a renovation. 280 00:09:13,540 --> 00:09:14,900 And so we're looking for what's called an 281 00:09:14,900 --> 00:09:16,580 after repair value, an ARV. 282 00:09:16,880 --> 00:09:18,760 And so as long as we stay within 283 00:09:18,760 --> 00:09:21,840 the same subdivision, the same property type, plus 284 00:09:21,840 --> 00:09:24,740 or minus 250 square feet in size, plus 285 00:09:24,740 --> 00:09:27,640 or minus 10 years of construction year date. 286 00:09:28,380 --> 00:09:29,440 And we have these things. 287 00:09:29,520 --> 00:09:31,620 It's like, the way I like to think 288 00:09:31,620 --> 00:09:33,000 about it is that if I'm gonna compare 289 00:09:33,000 --> 00:09:35,100 two apples, they can't just be the same 290 00:09:35,100 --> 00:09:35,520 apple. 291 00:09:35,520 --> 00:09:37,840 They've gotta be two apples grown from the 292 00:09:37,840 --> 00:09:39,480 same tree in the same orchard by the 293 00:09:39,480 --> 00:09:40,860 same farmer in the same season. 294 00:09:41,080 --> 00:09:42,980 And when you can get those commonalities, it 295 00:09:42,980 --> 00:09:45,060 gets the accuracy of the value of that 296 00:09:45,060 --> 00:09:48,020 subject property to become pretty precise. 297 00:09:48,440 --> 00:09:49,380 And so I teach that. 298 00:09:49,600 --> 00:09:51,960 I do a YouTube live stream called Straight 299 00:09:51,960 --> 00:09:52,700 Outta Compton. 300 00:09:52,900 --> 00:09:54,480 Had some fun with it because of the 301 00:09:54,480 --> 00:09:57,920 movie and the old 1990s NWA rap song. 302 00:09:58,340 --> 00:10:00,680 And so I do a stream where I 303 00:10:00,680 --> 00:10:02,860 show people, they bring an address and they 304 00:10:02,860 --> 00:10:04,840 put the address into my YouTube comments. 305 00:10:05,240 --> 00:10:06,920 And then I'll show them how I would 306 00:10:06,920 --> 00:10:07,940 value that property. 307 00:10:08,020 --> 00:10:09,860 And I walk through the different things that 308 00:10:09,860 --> 00:10:12,100 I'm looking at, thinking about, and then I 309 00:10:12,100 --> 00:10:14,840 create for them what I believe the after 310 00:10:14,840 --> 00:10:16,060 repair value would be. 311 00:10:16,240 --> 00:10:17,620 And then once you know what the after 312 00:10:17,620 --> 00:10:20,460 repair value is, you have to determine what 313 00:10:20,460 --> 00:10:22,360 it would cost to get you there, right? 314 00:10:22,440 --> 00:10:24,480 And so that will help you determine what 315 00:10:24,480 --> 00:10:25,540 your buy price should be. 316 00:10:25,900 --> 00:10:27,780 So do you help your students with this? 317 00:10:27,860 --> 00:10:29,740 Do they have access to that framework and 318 00:10:29,740 --> 00:10:30,800 the tools that you're using? 319 00:10:30,960 --> 00:10:31,900 Absolutely, yeah. 320 00:10:32,160 --> 00:10:33,720 So if I'm sitting here going, oh, that 321 00:10:33,720 --> 00:10:35,640 makes a lot of sense because I don't 322 00:10:35,640 --> 00:10:38,220 want to interview a hundred appraisers and I 323 00:10:38,220 --> 00:10:39,460 don't want to, I don't know, go to 324 00:10:39,460 --> 00:10:42,420 appraisal school, let alone the vast experience that 325 00:10:42,420 --> 00:10:44,360 you have, then I can go key glee. 326 00:10:44,440 --> 00:10:45,800 And one of the benefits that I'm getting 327 00:10:45,800 --> 00:10:47,840 there is that you're helping me with the 328 00:10:47,840 --> 00:10:49,500 framework to make sure I'm buying the property, 329 00:10:49,640 --> 00:10:49,840 right? 330 00:10:50,180 --> 00:10:50,320 Correct. 331 00:10:50,560 --> 00:10:52,680 The key here is that something has to 332 00:10:52,680 --> 00:10:53,960 be a deal in order for somebody to 333 00:10:53,960 --> 00:10:55,000 want to buy it, right? 334 00:10:55,040 --> 00:10:57,840 Not every property is a wholesale deal. 335 00:10:58,100 --> 00:10:59,720 And that's the thing, something that people have 336 00:10:59,720 --> 00:11:00,880 to keep in mind, right? 337 00:11:00,880 --> 00:11:03,240 We're not in the business of taking equity 338 00:11:03,240 --> 00:11:03,740 from people. 339 00:11:03,940 --> 00:11:06,320 If a home is beautiful or retail ready, 340 00:11:06,640 --> 00:11:08,480 it's not typically for me, right? 341 00:11:08,520 --> 00:11:09,940 Because that's a home that I think would 342 00:11:09,940 --> 00:11:11,940 be better served, sold on the MLS through 343 00:11:11,940 --> 00:11:13,760 a real estate agent to a retail buyer, 344 00:11:13,940 --> 00:11:14,880 getting a retail loan. 345 00:11:15,120 --> 00:11:16,980 The kinds of homes that I typically go 346 00:11:16,980 --> 00:11:19,120 after are ones that aren't even financeable by 347 00:11:19,120 --> 00:11:19,880 traditional lenders. 348 00:11:20,000 --> 00:11:21,940 So these homes need to be purchased with 349 00:11:21,940 --> 00:11:23,000 cash or hard money. 350 00:11:23,260 --> 00:11:25,720 And because of that, we can get a 351 00:11:25,720 --> 00:11:28,120 better discount or a better deal on that 352 00:11:28,120 --> 00:11:28,500 property. 353 00:11:28,500 --> 00:11:30,680 And so that's the framework in which we 354 00:11:30,680 --> 00:11:31,460 make our purchases. 355 00:11:31,660 --> 00:11:33,140 And we have to be pretty clear on 356 00:11:33,140 --> 00:11:34,760 what it's gonna take to get this property 357 00:11:34,760 --> 00:11:37,080 from here to there in order to be 358 00:11:37,080 --> 00:11:39,460 profitable, A, as a wholesale transaction, but B, 359 00:11:39,540 --> 00:11:41,300 for your end buyer to then make money 360 00:11:41,300 --> 00:11:41,920 on their flip. 361 00:11:42,180 --> 00:11:43,480 Yeah, which makes a lot of sense because 362 00:11:43,480 --> 00:11:44,940 I think about that in the back of 363 00:11:44,940 --> 00:11:46,080 my head, even though I haven't asked. 364 00:11:46,160 --> 00:11:47,320 I'm like, how do you get real estate 365 00:11:47,320 --> 00:11:48,480 agents to play along? 366 00:11:48,580 --> 00:11:50,340 Like I'm in Florida, so in your Phoenix, 367 00:11:50,520 --> 00:11:52,220 so the demand is not pretty good demand 368 00:11:52,220 --> 00:11:53,020 for properties. 369 00:11:53,240 --> 00:11:54,120 We're in both areas. 370 00:11:54,380 --> 00:11:55,680 So if I'm trying to go in and 371 00:11:55,680 --> 00:11:57,020 I wanna do this and do that and 372 00:11:57,020 --> 00:11:58,460 do that, these real estate agents are gonna 373 00:11:58,460 --> 00:11:59,260 take another offer. 374 00:11:59,420 --> 00:12:00,860 But if I'm coming and buying a distressed 375 00:12:00,860 --> 00:12:03,420 property, there's not as much demand for that 376 00:12:03,420 --> 00:12:03,920 property. 377 00:12:04,200 --> 00:12:05,960 So more than likely, it's easier to get 378 00:12:05,960 --> 00:12:08,260 concessions from the seller and from the agent 379 00:12:08,260 --> 00:12:09,300 to make that deal work. 380 00:12:09,480 --> 00:12:11,580 Correct, and oftentimes if you do it right, 381 00:12:11,760 --> 00:12:13,920 so one of the things that I teach 382 00:12:13,920 --> 00:12:16,240 and the framework of how I generate leads 383 00:12:16,240 --> 00:12:19,580 is by creating relationships with real estate agents 384 00:12:19,580 --> 00:12:21,080 so that you get to take a look 385 00:12:21,080 --> 00:12:23,880 at the property before they ever listed on 386 00:12:23,880 --> 00:12:24,500 the MLS. 387 00:12:24,500 --> 00:12:27,100 And so what you become is the go 388 00:12:27,100 --> 00:12:29,980 -to cash investor for an agent when they 389 00:12:29,980 --> 00:12:31,280 come across a home like that. 390 00:12:31,400 --> 00:12:33,080 Now, the reality is, is when a homeowner 391 00:12:33,080 --> 00:12:35,120 has gotten to that situation where they've got 392 00:12:35,120 --> 00:12:37,040 a home and it's in such distress that 393 00:12:37,040 --> 00:12:40,060 you can't traditionally finance it, there's usually a 394 00:12:40,060 --> 00:12:43,420 situational distress accompanying the property distress as well. 395 00:12:43,700 --> 00:12:46,360 And so these sellers are typically looking for 396 00:12:46,360 --> 00:12:47,420 a fast solution. 397 00:12:47,660 --> 00:12:49,220 And so the more convenient I can make 398 00:12:49,220 --> 00:12:50,920 my offer, the quicker I can make my 399 00:12:50,920 --> 00:12:53,460 closing, the more convenience that I can provide 400 00:12:53,460 --> 00:12:55,380 to the seller and the real estate agent, 401 00:12:55,620 --> 00:12:57,180 the more likely they are to wanna do 402 00:12:57,180 --> 00:12:57,880 a deal with me. 403 00:12:58,140 --> 00:12:59,840 And the reality is, is for the most 404 00:12:59,840 --> 00:13:01,900 part, these folks don't want their houses listed 405 00:13:01,900 --> 00:13:03,700 on the MLS for the entire world to 406 00:13:03,700 --> 00:13:03,840 see. 407 00:13:04,060 --> 00:13:05,640 There was a home I bought not too 408 00:13:05,640 --> 00:13:07,100 far from where I live here in Phoenix. 409 00:13:07,400 --> 00:13:08,080 Sad story. 410 00:13:08,440 --> 00:13:11,400 The children had left, moved to another state. 411 00:13:11,720 --> 00:13:13,860 Mother had passed away decade ago. 412 00:13:14,200 --> 00:13:16,180 Father was living in the house and had 413 00:13:16,180 --> 00:13:18,100 developed a mental illness where he was collecting 414 00:13:18,100 --> 00:13:18,540 feces. 415 00:13:18,840 --> 00:13:20,520 I know this is not probably is what 416 00:13:20,520 --> 00:13:22,380 people wanna hear, but it's the truth. 417 00:13:22,540 --> 00:13:23,800 This is what happened to the poor guy. 418 00:13:23,800 --> 00:13:26,000 The kids hadn't really come to visit him 419 00:13:26,000 --> 00:13:27,820 in a long time and ultimately he passes 420 00:13:27,820 --> 00:13:28,140 away. 421 00:13:28,540 --> 00:13:30,680 And when the kids finally got to the 422 00:13:30,680 --> 00:13:32,320 home and they saw what had happened to 423 00:13:32,320 --> 00:13:33,660 dad, they were heartbroken. 424 00:13:33,840 --> 00:13:35,380 They were absolutely heartbroken. 425 00:13:35,600 --> 00:13:37,860 And they couldn't then take that home, put 426 00:13:37,860 --> 00:13:39,920 it on the MLS so that the entire 427 00:13:39,920 --> 00:13:42,080 neighborhood could see what happened to dad in 428 00:13:42,080 --> 00:13:43,700 the last decade of his life, right? 429 00:13:43,740 --> 00:13:44,620 They were embarrassed. 430 00:13:44,780 --> 00:13:46,100 They were embarrassed for him, they were embarrassed 431 00:13:46,100 --> 00:13:47,640 for themselves and they wanted it to be 432 00:13:47,640 --> 00:13:48,820 a quiet, quick sale. 433 00:13:49,140 --> 00:13:50,380 And so one of the conditions that they 434 00:13:50,380 --> 00:13:52,540 sold me the home with was that I 435 00:13:52,540 --> 00:13:55,560 was not allowed to allow anybody that was 436 00:13:55,560 --> 00:13:58,620 either related to the neighborhood or anyone else 437 00:13:58,620 --> 00:13:59,860 for that matter to come in and see 438 00:13:59,860 --> 00:14:01,720 the home until I had already beautified it, 439 00:14:01,880 --> 00:14:02,060 right? 440 00:14:02,120 --> 00:14:03,500 And so that was a deal that I 441 00:14:03,500 --> 00:14:04,040 made for them. 442 00:14:04,280 --> 00:14:05,980 They sold me the house at a great 443 00:14:05,980 --> 00:14:06,460 price. 444 00:14:06,740 --> 00:14:08,560 I did a great job on the remodel 445 00:14:08,560 --> 00:14:10,180 and they were so happy that that home 446 00:14:10,180 --> 00:14:13,560 became, went back into the retail market for 447 00:14:13,560 --> 00:14:15,780 another home, another family to come in and 448 00:14:15,780 --> 00:14:18,320 build a life and memories and have love 449 00:14:18,320 --> 00:14:18,440 in. 450 00:14:18,620 --> 00:14:20,640 But this is just what happens sometimes in 451 00:14:20,640 --> 00:14:21,400 people's world. 452 00:14:21,560 --> 00:14:23,660 And so when they sought me out, they 453 00:14:23,660 --> 00:14:25,200 wanted to have somebody that they knew would 454 00:14:25,200 --> 00:14:28,140 have discretion in the situation that would comply 455 00:14:28,140 --> 00:14:30,880 with their hopes were for how to manage 456 00:14:30,880 --> 00:14:33,440 the sensitivity of the subject of the home 457 00:14:33,440 --> 00:14:35,320 purchase and then to just do a great 458 00:14:35,320 --> 00:14:35,680 job. 459 00:14:35,940 --> 00:14:37,860 And so I gave them the maximum that 460 00:14:37,860 --> 00:14:39,360 I could give them given the condition of 461 00:14:39,360 --> 00:14:39,640 the home. 462 00:14:39,860 --> 00:14:41,360 So they were super happy with the price. 463 00:14:41,540 --> 00:14:42,620 And then I was able to make a 464 00:14:42,620 --> 00:14:43,940 modest profit once I flipped it. 465 00:14:44,080 --> 00:14:45,580 So it was a win-win situation for 466 00:14:45,580 --> 00:14:47,960 me, win-win situation for the seller and 467 00:14:47,960 --> 00:14:49,920 for the real estate agent who didn't necessarily 468 00:14:49,920 --> 00:14:51,680 wanna be touring that house over and over 469 00:14:51,680 --> 00:14:52,160 and over again. 470 00:14:52,320 --> 00:14:54,160 A little bit of time, I imagine, takes 471 00:14:54,160 --> 00:14:56,140 to get the credibility you have. 472 00:14:56,340 --> 00:14:57,740 So that being said, I'm sure a lot 473 00:14:57,740 --> 00:14:59,360 of your students come in with, oh, it 474 00:14:59,360 --> 00:15:00,440 won't work for me type of mentality. 475 00:15:00,700 --> 00:15:02,680 So what are some other strategies you teach 476 00:15:02,680 --> 00:15:05,200 them outside of relationships to go and find 477 00:15:05,200 --> 00:15:06,620 the right wholesale properties to buy? 478 00:15:06,800 --> 00:15:08,380 Well, there's a couple of ways to do 479 00:15:08,380 --> 00:15:08,620 this. 480 00:15:08,700 --> 00:15:11,500 You can go directly to homeowners and you 481 00:15:11,500 --> 00:15:13,540 could go through real estate agents, right? 482 00:15:13,580 --> 00:15:15,700 Those are the two main sources of finding 483 00:15:15,700 --> 00:15:17,340 deals in my opinion, right? 484 00:15:17,340 --> 00:15:18,740 And so one of the ways you could 485 00:15:18,740 --> 00:15:21,520 do is go find lists of people who 486 00:15:21,520 --> 00:15:24,440 own rental properties and talk to folks who've 487 00:15:24,440 --> 00:15:26,840 owned rental properties for five or 10 years 488 00:15:26,840 --> 00:15:29,040 and find out if they're still happy with 489 00:15:29,040 --> 00:15:29,940 owning a rental property. 490 00:15:30,100 --> 00:15:31,820 You'd be surprised at how many mom and 491 00:15:31,820 --> 00:15:34,120 pop real estate investors buy a rental property 492 00:15:34,120 --> 00:15:35,960 and just get in over their heads with 493 00:15:35,960 --> 00:15:37,760 repairs and all of the issues. 494 00:15:37,760 --> 00:15:40,060 And they just couldn't be bothered with wanting 495 00:15:40,060 --> 00:15:41,060 to keep it another day. 496 00:15:41,260 --> 00:15:42,660 And all of a sudden they get a 497 00:15:42,660 --> 00:15:44,360 phone call from a nice real estate investor 498 00:15:44,360 --> 00:15:46,460 who is interested in buying their property for 499 00:15:46,460 --> 00:15:48,340 cash and take this problem off their hands. 500 00:15:48,600 --> 00:15:49,600 And there you have it. 501 00:15:49,720 --> 00:15:50,720 You can create a deal there. 502 00:15:51,100 --> 00:15:53,040 Sometimes I go to the county court office 503 00:15:53,040 --> 00:15:54,160 and I look at probates. 504 00:15:54,360 --> 00:15:56,140 So I go and find out who's passed 505 00:15:56,140 --> 00:15:58,300 away and who's the personal representative of a 506 00:15:58,300 --> 00:15:58,640 probate. 507 00:15:58,740 --> 00:15:59,920 And then I reach out to that personal 508 00:15:59,920 --> 00:16:01,860 representative and let them know that I'm a 509 00:16:01,860 --> 00:16:02,280 resource. 510 00:16:02,540 --> 00:16:04,680 If they want to sell the house quickly 511 00:16:04,680 --> 00:16:06,800 for a cash price, I could be of 512 00:16:06,800 --> 00:16:07,440 service to them. 513 00:16:07,600 --> 00:16:08,860 So that's a great way for me to 514 00:16:08,860 --> 00:16:10,000 get a good lead. 515 00:16:10,240 --> 00:16:12,700 I also pull lists of people who may 516 00:16:12,700 --> 00:16:15,220 have had a life situation that no longer 517 00:16:15,220 --> 00:16:17,420 requires them to own the home that they're 518 00:16:17,420 --> 00:16:18,000 in any longer. 519 00:16:18,160 --> 00:16:21,240 For instance, empty nesters, they tend to hold 520 00:16:21,240 --> 00:16:23,860 onto properties a little too long sometimes. 521 00:16:24,100 --> 00:16:25,820 And so you've got these people in middle 522 00:16:25,820 --> 00:16:28,620 age, children have left the house, but they're 523 00:16:28,620 --> 00:16:31,840 living in these 3000 square foot homes with 524 00:16:31,840 --> 00:16:34,260 five bedrooms and three bathrooms, and it's just 525 00:16:34,260 --> 00:16:34,820 two of them. 526 00:16:35,120 --> 00:16:37,000 And so they've got all of these rooms 527 00:16:37,000 --> 00:16:39,280 that they're just storing belongings in now that 528 00:16:39,280 --> 00:16:41,260 are becoming kind of wasteful for them, where 529 00:16:41,260 --> 00:16:43,180 they could take that money that they've got 530 00:16:43,180 --> 00:16:44,860 trapped in that home and go and have 531 00:16:44,860 --> 00:16:45,500 a completely. 532 00:16:45,880 --> 00:16:47,640 And now a quick break to hear from 533 00:16:47,640 --> 00:16:48,300 our sponsor. 534 00:16:49,300 --> 00:16:50,940 Hey, it's Ty Crandall with Credit Suite. 535 00:16:51,060 --> 00:16:52,560 Many of our subscribers want to get the 536 00:16:52,560 --> 00:16:54,360 most money to grow their business at the 537 00:16:54,360 --> 00:16:55,280 best terms. 538 00:16:55,440 --> 00:16:57,580 Whether you're looking for startup capital, low interest 539 00:16:57,580 --> 00:17:00,260 credit lines and loans, or business credit, we 540 00:17:00,260 --> 00:17:01,240 can definitely help you. 541 00:17:01,280 --> 00:17:03,200 So give us a call at 877-600 542 00:17:03,200 --> 00:17:06,839 -2487, or schedule your free consultation at creditsuite 543 00:17:06,839 --> 00:17:09,180 .com forward slash consult to see how much 544 00:17:09,180 --> 00:17:10,859 money you can get approved for today. 545 00:17:11,220 --> 00:17:12,740 Different experience in life right now. 546 00:17:12,740 --> 00:17:15,240 And so looking at life situations is a 547 00:17:15,240 --> 00:17:19,040 great way to approach this type of strategy. 548 00:17:19,420 --> 00:17:22,960 Again, situational distress is also a great way 549 00:17:22,960 --> 00:17:24,000 to find good leads. 550 00:17:24,220 --> 00:17:27,680 So bankruptcies, divorces, code violations, people who are 551 00:17:27,680 --> 00:17:30,140 in over their head with HOA violations and 552 00:17:30,140 --> 00:17:33,520 city liens and city taxes, tax deeds, tax 553 00:17:33,520 --> 00:17:34,260 liens as well. 554 00:17:34,420 --> 00:17:36,920 People who get majorly behind on their taxes 555 00:17:36,920 --> 00:17:38,900 is a great way to get people out 556 00:17:38,900 --> 00:17:41,240 of that situation and take possession of a 557 00:17:41,240 --> 00:17:42,320 property at a great price. 558 00:17:42,320 --> 00:17:44,620 And so there's a number of different lead 559 00:17:44,620 --> 00:17:46,480 sources for this type of deal. 560 00:17:46,880 --> 00:17:48,900 One of the things that I, and why 561 00:17:48,900 --> 00:17:52,320 I don't necessarily go through directly to a 562 00:17:52,320 --> 00:17:54,480 homeowner, is I like having a real estate 563 00:17:54,480 --> 00:17:56,620 agent involved so that they can be an 564 00:17:56,620 --> 00:17:59,040 advocate for the homeowner to make sure that 565 00:17:59,040 --> 00:18:01,260 everything is above board and that everyone's being 566 00:18:01,260 --> 00:18:01,640 honest. 567 00:18:01,800 --> 00:18:03,860 The reality is there's something to be said 568 00:18:03,860 --> 00:18:06,100 about a real estate agent's fiduciary duty to 569 00:18:06,100 --> 00:18:08,160 a seller to get them the best situation. 570 00:18:08,300 --> 00:18:10,460 Now, best situation doesn't mean numbers. 571 00:18:10,580 --> 00:18:11,700 It doesn't mean just price. 572 00:18:11,700 --> 00:18:13,420 Sometimes it has to do with closing dates. 573 00:18:13,600 --> 00:18:14,920 Sometimes it has to do with, just wanna 574 00:18:14,920 --> 00:18:16,420 leave all the items in the home behind. 575 00:18:16,520 --> 00:18:17,580 I don't wanna have to deal with any 576 00:18:17,580 --> 00:18:19,620 of the dumping or maybe they need a 577 00:18:19,620 --> 00:18:20,180 post possession. 578 00:18:20,320 --> 00:18:21,540 They need to stay in the home 60 579 00:18:21,540 --> 00:18:23,440 days after close so that they can get 580 00:18:23,440 --> 00:18:24,220 their affairs in order. 581 00:18:24,340 --> 00:18:27,180 Whatever that is, I can structure that and 582 00:18:27,180 --> 00:18:30,480 help that homeowner get the best situation for 583 00:18:30,480 --> 00:18:31,160 them as possible. 584 00:18:31,280 --> 00:18:32,540 And when they have an advocate like a 585 00:18:32,540 --> 00:18:34,340 real estate agent involved in the deal, it 586 00:18:34,340 --> 00:18:36,940 just helps everybody make sure that everything is 587 00:18:36,940 --> 00:18:38,600 going the way that it's supposed to be 588 00:18:38,600 --> 00:18:38,840 going. 589 00:18:38,840 --> 00:18:41,660 So I prefer working through real estate agents 590 00:18:41,660 --> 00:18:44,360 just for liability standpoint and to make sure 591 00:18:44,360 --> 00:18:46,580 that everybody's being taken care of in the 592 00:18:46,580 --> 00:18:47,340 appropriate way. 593 00:18:47,780 --> 00:18:49,660 But that doesn't mean that I won't necessarily 594 00:18:49,660 --> 00:18:51,240 just buy directly from a homeowner. 595 00:18:51,360 --> 00:18:52,980 I just think that you open yourself up 596 00:18:52,980 --> 00:18:56,540 to more issues and potential liability going directly 597 00:18:56,540 --> 00:18:58,080 to a homeowner who may not be educated 598 00:18:58,080 --> 00:19:00,620 on price and understand what the value is 599 00:19:00,620 --> 00:19:01,740 of the property that they're selling. 600 00:19:01,880 --> 00:19:03,680 So for me, it's just, I prefer real 601 00:19:03,680 --> 00:19:05,820 estate agents, but there's a lot of wholesalers 602 00:19:05,820 --> 00:19:07,300 that go directly to the seller as well. 603 00:19:07,300 --> 00:19:10,180 Any advice on finding the right real estate 604 00:19:10,180 --> 00:19:10,560 agents? 605 00:19:11,300 --> 00:19:13,940 All real estate agents come across this type 606 00:19:13,940 --> 00:19:14,320 of home. 607 00:19:14,600 --> 00:19:16,320 And so one of the things I don't 608 00:19:16,320 --> 00:19:18,660 do is filter through who I should talk 609 00:19:18,660 --> 00:19:19,620 to and who I shouldn't. 610 00:19:19,660 --> 00:19:21,560 The reality is, is that even the agent 611 00:19:21,560 --> 00:19:23,800 who maybe sells three or four houses a 612 00:19:23,800 --> 00:19:25,940 year, eventually will get their hands on one 613 00:19:25,940 --> 00:19:26,680 of these types of homes. 614 00:19:26,680 --> 00:19:30,000 And they are even less aware of what 615 00:19:30,000 --> 00:19:31,360 to do with that type of property when 616 00:19:31,360 --> 00:19:32,200 they get their hands on it. 617 00:19:32,260 --> 00:19:34,800 So for me, I cast a wide net 618 00:19:34,800 --> 00:19:37,280 when I'm talking to agents and I develop 619 00:19:37,280 --> 00:19:38,120 those relationships. 620 00:19:38,400 --> 00:19:40,240 And because I perform on the promises that 621 00:19:40,240 --> 00:19:41,620 I make and the contracts that I write, 622 00:19:41,820 --> 00:19:44,740 I become a go-to person for them 623 00:19:44,740 --> 00:19:46,440 in whatever market that I'm working in. 624 00:19:46,640 --> 00:19:49,160 But for a strategy for people, if you 625 00:19:49,160 --> 00:19:52,120 were watching this podcast and thinking, hey, this 626 00:19:52,120 --> 00:19:55,000 sounds like a pretty decent approach, what could 627 00:19:55,000 --> 00:19:55,440 I do here? 628 00:19:55,560 --> 00:19:58,780 Well, one of the best sources for potential 629 00:19:58,780 --> 00:20:00,660 leads is the MLS. 630 00:20:01,240 --> 00:20:03,080 So you can go onto Zillow and you 631 00:20:03,080 --> 00:20:04,560 can look at properties that have been maybe 632 00:20:04,560 --> 00:20:08,060 sitting on the market, 60, 90, 100 days 633 00:20:08,060 --> 00:20:09,760 and look through the pictures. 634 00:20:10,300 --> 00:20:12,960 And if the home looks dated or distressed 635 00:20:12,960 --> 00:20:15,120 in any way, then what that means is 636 00:20:15,120 --> 00:20:17,120 that the real estate agent or the sellers 637 00:20:17,120 --> 00:20:19,040 have overpriced that home. 638 00:20:19,520 --> 00:20:22,160 The markets rejected the number that they've put 639 00:20:22,160 --> 00:20:22,960 on this price. 640 00:20:23,060 --> 00:20:25,020 And so there's motivation that's starting to brew 641 00:20:25,020 --> 00:20:25,280 there. 642 00:20:25,560 --> 00:20:26,980 Now the real estate agent knows the home 643 00:20:26,980 --> 00:20:29,180 is overpriced and they're probably just acting on 644 00:20:29,180 --> 00:20:31,100 the seller's behest to price it at that 645 00:20:31,100 --> 00:20:31,400 number. 646 00:20:31,680 --> 00:20:33,180 And so they're waiting for the seller to 647 00:20:33,180 --> 00:20:34,380 come to reality. 648 00:20:34,380 --> 00:20:36,360 And the seller needs a little bit of 649 00:20:36,360 --> 00:20:37,780 prodding to get to that spot. 650 00:20:38,140 --> 00:20:41,280 And so my favorite strategy in getting these 651 00:20:41,280 --> 00:20:44,260 is going after a stale listing that's sitting 652 00:20:44,260 --> 00:20:47,220 on the MLS for like 100 days and 653 00:20:47,220 --> 00:20:49,180 just asking the realtor, I'm looking at this 654 00:20:49,180 --> 00:20:51,300 property, I see that you've got it priced 655 00:20:51,300 --> 00:20:53,120 at, let's just make a hypothetical here. 656 00:20:53,240 --> 00:20:54,880 You've got it priced at $300,000. 657 00:20:55,320 --> 00:20:57,620 And so I started looking around in the 658 00:20:57,620 --> 00:21:01,260 neighborhood and I found that $300,000 would 659 00:21:01,260 --> 00:21:02,620 be the right number for this house if 660 00:21:02,620 --> 00:21:04,140 somebody had renovated it fully. 661 00:21:04,400 --> 00:21:05,980 And I think it's gonna take 80 grand 662 00:21:05,980 --> 00:21:08,040 to get to that number judging on the 663 00:21:08,040 --> 00:21:09,720 pictures that you've posted here online. 664 00:21:10,420 --> 00:21:13,000 And so there's a big gap between where 665 00:21:13,000 --> 00:21:15,400 you're listed and what this property is worth. 666 00:21:15,540 --> 00:21:17,760 So the question here is who drove price? 667 00:21:17,860 --> 00:21:18,660 Was it you or the seller? 668 00:21:18,960 --> 00:21:20,800 And quite often they'll just be honest. 669 00:21:20,920 --> 00:21:24,160 My client was really wishful that they'll get 670 00:21:24,160 --> 00:21:25,920 a really great price, but they know they're 671 00:21:25,920 --> 00:21:27,800 overpriced and they're just waiting for somebody to 672 00:21:27,800 --> 00:21:28,280 write an offer. 673 00:21:28,460 --> 00:21:29,640 Wonderful, I'm the guy. 674 00:21:29,800 --> 00:21:30,900 I'm the guy who's gonna give you an 675 00:21:30,900 --> 00:21:31,320 offer today. 676 00:21:31,320 --> 00:21:33,140 It's not gonna be anywhere near where you're 677 00:21:33,140 --> 00:21:34,560 listed at, but I think you know that. 678 00:21:34,860 --> 00:21:36,080 But it's gonna be fair and it's gonna 679 00:21:36,080 --> 00:21:36,720 be realistic. 680 00:21:37,080 --> 00:21:38,680 How quickly does your seller wanna close? 681 00:21:38,720 --> 00:21:40,700 Because I wanna factor that into my numbers. 682 00:21:41,060 --> 00:21:43,320 And so I put together a strong case 683 00:21:43,320 --> 00:21:44,940 for why my price is where it's at, 684 00:21:44,980 --> 00:21:45,940 and I make a presentation. 685 00:21:46,300 --> 00:21:48,200 And one out of every 10 times it 686 00:21:48,200 --> 00:21:48,580 sticks. 687 00:21:48,820 --> 00:21:51,960 How do you make the decision between wholesaling 688 00:21:51,960 --> 00:21:53,200 and fix and flip? 689 00:21:53,320 --> 00:21:55,140 So I'd imagine you're in the know, you've 690 00:21:55,140 --> 00:21:57,280 got all these people sitting at these opportunities. 691 00:21:57,560 --> 00:21:59,540 Some of them are wholesaling, you're just moving, 692 00:21:59,540 --> 00:22:01,480 and then you find the one you love. 693 00:22:01,700 --> 00:22:03,480 And that's the one as you're describing, you 694 00:22:03,480 --> 00:22:04,000 fix and flip. 695 00:22:04,280 --> 00:22:06,640 How do you determine which one that you 696 00:22:06,640 --> 00:22:08,600 really love and wanna fix and flip versus 697 00:22:08,600 --> 00:22:08,980 wholesaling? 698 00:22:09,160 --> 00:22:10,580 Well, there's a few factors, right? 699 00:22:10,660 --> 00:22:13,720 So there's sometimes I make the judgment based 700 00:22:13,720 --> 00:22:16,720 on architectural features, like I'm a sucker for 701 00:22:16,720 --> 00:22:18,060 a mid-century modern home. 702 00:22:18,320 --> 00:22:19,800 And so if I can get my hands 703 00:22:19,800 --> 00:22:22,700 on something that was designed by a famous 704 00:22:22,700 --> 00:22:25,980 mid-century architect like Ralph Haver or Al 705 00:22:25,980 --> 00:22:28,700 Beadle, then I will buy that home and 706 00:22:28,700 --> 00:22:30,760 flip it myself because I just nerd out 707 00:22:30,760 --> 00:22:32,820 on that kind of renovation. 708 00:22:33,180 --> 00:22:34,980 But other times it's just convenience. 709 00:22:35,480 --> 00:22:36,800 How far of a drive is it for 710 00:22:36,800 --> 00:22:37,940 me to my home? 711 00:22:38,280 --> 00:22:40,260 And is there enough profit margin in here 712 00:22:40,260 --> 00:22:41,440 for it to be worth my time? 713 00:22:41,580 --> 00:22:43,600 And so I make the decision based off 714 00:22:43,600 --> 00:22:44,660 of potential profit. 715 00:22:44,920 --> 00:22:46,980 I make the decision based off of my 716 00:22:46,980 --> 00:22:48,280 own personal interests. 717 00:22:48,520 --> 00:22:51,440 And then lastly, just distance from where I 718 00:22:51,440 --> 00:22:51,740 live. 719 00:22:52,160 --> 00:22:53,880 When somebody is getting into fix and flipping, 720 00:22:54,160 --> 00:22:55,840 I would imagine the one thing that would 721 00:22:55,840 --> 00:22:58,360 scare me being new to it would be, 722 00:22:58,360 --> 00:23:00,140 I don't know what my true costs are 723 00:23:00,140 --> 00:23:01,280 gonna be to fix this thing up. 724 00:23:01,340 --> 00:23:02,860 Like I would imagine that's a problem that 725 00:23:02,860 --> 00:23:03,920 a lot of your students deal with. 726 00:23:04,080 --> 00:23:05,780 How do you help them get over that 727 00:23:05,780 --> 00:23:08,240 hump to get enough confidence to really stick 728 00:23:08,240 --> 00:23:09,820 it out there and make the first jump 729 00:23:09,820 --> 00:23:10,660 into fix and flip? 730 00:23:10,880 --> 00:23:14,560 Well, funny enough, I track rehab costs across 731 00:23:14,560 --> 00:23:15,180 the nation. 732 00:23:15,500 --> 00:23:17,580 And so I provide for the students in 733 00:23:17,580 --> 00:23:20,940 my community a pretty solid dollar per square 734 00:23:20,940 --> 00:23:24,480 foot estimate on where renovations will be if 735 00:23:24,480 --> 00:23:27,080 it's a cosmetic job and where renovation costs 736 00:23:27,080 --> 00:23:28,320 will be if it's a full gut. 737 00:23:28,580 --> 00:23:31,760 And outside of California and New York and 738 00:23:31,760 --> 00:23:34,400 some other areas in the North and Southeast 739 00:23:34,400 --> 00:23:37,160 there, I'm pretty accurate on what those numbers 740 00:23:37,160 --> 00:23:37,760 tend to be. 741 00:23:37,920 --> 00:23:40,220 And because we're always paying attention to pricing, 742 00:23:40,680 --> 00:23:43,680 that number is dynamic and typically changes by 743 00:23:43,680 --> 00:23:45,580 the quarter, but it's pretty close. 744 00:23:45,800 --> 00:23:47,120 And so if we can give a good 745 00:23:47,120 --> 00:23:49,900 ballpark estimate on where we think the renovation 746 00:23:49,900 --> 00:23:51,860 will come in based on square footage and 747 00:23:51,860 --> 00:23:54,200 condition, then that just allows us to input 748 00:23:54,200 --> 00:23:57,980 a pretty standardized number into our calculation so 749 00:23:57,980 --> 00:23:59,420 that we can make offers fast. 750 00:23:59,840 --> 00:24:02,360 Now, of course, during your inspection, you're gonna 751 00:24:02,360 --> 00:24:03,920 get into the meat and potatoes of what 752 00:24:03,920 --> 00:24:05,140 things are actually gonna be. 753 00:24:05,300 --> 00:24:07,500 So not only will your buyers be bringing 754 00:24:07,500 --> 00:24:10,300 in their contractors, but if you decide you 755 00:24:10,300 --> 00:24:11,920 may wanna flip it yourself, you may go 756 00:24:11,920 --> 00:24:13,060 and get some bids yourself. 757 00:24:13,240 --> 00:24:15,300 And then you can see how close the 758 00:24:15,300 --> 00:24:18,020 estimate was to where the numbers actually came 759 00:24:18,020 --> 00:24:18,260 in. 760 00:24:18,400 --> 00:24:21,320 So that makes a great opportunity to determine 761 00:24:21,320 --> 00:24:22,140 where the costs are. 762 00:24:22,140 --> 00:24:23,840 But I think when you're first getting started, 763 00:24:24,160 --> 00:24:27,480 it's really important to learn from somebody who's 764 00:24:27,480 --> 00:24:29,800 done this, speak to fix and flippers in 765 00:24:29,800 --> 00:24:32,440 your neighborhood or in your state and local 766 00:24:32,440 --> 00:24:35,000 market, go to networking events and talk to 767 00:24:35,000 --> 00:24:36,560 people who are in the business and ask 768 00:24:36,560 --> 00:24:38,000 them, where are you coming in right now, 769 00:24:38,100 --> 00:24:40,260 dollar per square foot on a cosmetic remodel? 770 00:24:40,700 --> 00:24:42,780 And a lot of people would be happy 771 00:24:42,780 --> 00:24:43,400 to tell you. 772 00:24:43,520 --> 00:24:44,920 You can ask them, where are you coming 773 00:24:44,920 --> 00:24:46,700 in dollar per square foot on new construction? 774 00:24:46,960 --> 00:24:48,400 And they'll be happy to tell you. 775 00:24:48,500 --> 00:24:50,040 You can also ask, where are you coming 776 00:24:50,040 --> 00:24:51,440 in on your dollar per square foot on 777 00:24:51,440 --> 00:24:52,440 a full gut remodel? 778 00:24:52,820 --> 00:24:54,580 And again, they'll be happy to tell you. 779 00:24:54,740 --> 00:24:57,120 You'd be surprised at how sharing real estate 780 00:24:57,120 --> 00:24:58,660 investors can be with one another when you 781 00:24:58,660 --> 00:25:00,180 get them in the right environment and you 782 00:25:00,180 --> 00:25:01,040 ask the right questions. 783 00:25:01,220 --> 00:25:04,520 People love being asked their opinion and people 784 00:25:04,520 --> 00:25:07,580 love sharing their expertise when you give them 785 00:25:07,580 --> 00:25:08,780 the opportunity to do so. 786 00:25:08,940 --> 00:25:10,380 So get out there and ask questions. 787 00:25:10,940 --> 00:25:13,940 You have a phenomenal supportive community and you 788 00:25:13,940 --> 00:25:15,720 talk about, when we've talked a little bit 789 00:25:15,720 --> 00:25:17,440 about avoiding mistakes, what is one of the 790 00:25:17,440 --> 00:25:18,060 worst you've seen? 791 00:25:18,140 --> 00:25:20,240 Like somebody that comes into you, because there's 792 00:25:20,240 --> 00:25:21,640 so many things that could go wrong here. 793 00:25:21,740 --> 00:25:23,340 And that's why you have your community, right? 794 00:25:23,360 --> 00:25:25,600 You provide the guidance, the tools, the resources, 795 00:25:25,740 --> 00:25:28,040 the mentorship, everything somebody needs to avoid the 796 00:25:28,040 --> 00:25:30,040 mistakes and cut the line to succeed. 797 00:25:30,280 --> 00:25:32,160 So what's a horror story that you've heard 798 00:25:32,160 --> 00:25:34,220 or seen, maybe you, maybe somebody else, but 799 00:25:34,220 --> 00:25:35,940 that didn't know what they were doing and 800 00:25:35,940 --> 00:25:37,280 came in and you're like, oh my gosh, 801 00:25:37,300 --> 00:25:38,220 I can't believe that happened. 802 00:25:38,280 --> 00:25:40,400 Where your training would have helped them avoid 803 00:25:40,400 --> 00:25:41,220 that mess. 804 00:25:41,620 --> 00:25:44,680 I think the most common mistake, and I 805 00:25:44,680 --> 00:25:46,460 don't necessarily think it's a horror story, but 806 00:25:46,460 --> 00:25:49,820 I think it's where wholesalers, it's like the 807 00:25:49,820 --> 00:25:51,140 wholesaler graveyard, right? 808 00:25:51,160 --> 00:25:53,220 It's where the ambitions and the hopes die, 809 00:25:53,440 --> 00:25:55,480 is when somebody doesn't come in and really 810 00:25:55,480 --> 00:25:59,740 take seriously the numbers and understand where value 811 00:25:59,740 --> 00:26:00,400 should be at. 812 00:26:00,480 --> 00:26:03,660 They're not spending enough time really learning how 813 00:26:03,660 --> 00:26:06,640 to comp a property, understanding where a property 814 00:26:06,640 --> 00:26:08,220 needs to be bought at in order for 815 00:26:08,220 --> 00:26:09,640 it to be a wholesale deal or a 816 00:26:09,640 --> 00:26:10,380 good fix and flip. 817 00:26:10,540 --> 00:26:12,640 And they just try throwing spaghetti at the 818 00:26:12,640 --> 00:26:12,880 wall. 819 00:26:13,280 --> 00:26:15,100 Now, what ends up happening when that happens 820 00:26:15,100 --> 00:26:17,940 is they lock up contracts too high and 821 00:26:17,940 --> 00:26:19,740 then they get themselves into a pickle with 822 00:26:19,740 --> 00:26:21,420 a real estate agent who's upset with them 823 00:26:21,420 --> 00:26:24,060 and the wheels fall off and they feel 824 00:26:24,060 --> 00:26:25,760 terrible because they have to cancel the deal. 825 00:26:26,060 --> 00:26:27,740 Now, typically they're not gonna lose any money 826 00:26:27,740 --> 00:26:29,240 on that because if you cancel during your 827 00:26:29,240 --> 00:26:31,620 inspection period, you'll get your earnest deposit back. 828 00:26:31,740 --> 00:26:33,400 But what ends up happening is they fail 829 00:26:33,400 --> 00:26:35,760 and in that failure, they lose confidence. 830 00:26:36,160 --> 00:26:37,620 And after a couple of times of doing 831 00:26:37,620 --> 00:26:39,040 that, they give up. 832 00:26:39,160 --> 00:26:40,960 And that's a shame because if they had 833 00:26:40,960 --> 00:26:43,880 just spent some time really understanding value and 834 00:26:43,880 --> 00:26:48,180 really taking this craft seriously, it's a skill, 835 00:26:48,440 --> 00:26:48,540 right? 836 00:26:48,640 --> 00:26:50,500 Learning how to value property is a skill. 837 00:26:50,660 --> 00:26:52,860 And you wouldn't tell somebody to go frame 838 00:26:52,860 --> 00:26:55,240 a house if they didn't understand how to 839 00:26:55,240 --> 00:26:55,780 be a framer. 840 00:26:55,900 --> 00:26:57,380 If they didn't learn the skill, why would 841 00:26:57,380 --> 00:26:58,860 you try doing it? 842 00:26:58,960 --> 00:27:00,300 So one of the skills you need to 843 00:27:00,300 --> 00:27:02,080 learn when you're wholesaling homes is how to 844 00:27:02,080 --> 00:27:02,820 value property. 845 00:27:02,900 --> 00:27:03,960 And if you're just gonna come in and 846 00:27:03,960 --> 00:27:06,260 start making phone calls and writing offers willy 847 00:27:06,260 --> 00:27:08,260 -nilly, well, you missed the point. 848 00:27:08,500 --> 00:27:10,720 You haven't gained that really important skill that's 849 00:27:10,720 --> 00:27:12,600 gonna help you succeed at the business. 850 00:27:12,720 --> 00:27:15,440 And so when you've canceled contracts and you 851 00:27:15,440 --> 00:27:18,060 start to get frustrated because nothing's working, it's 852 00:27:18,060 --> 00:27:18,760 your own fault. 853 00:27:18,900 --> 00:27:20,900 And that's what I see 80% of 854 00:27:20,900 --> 00:27:22,060 wholesalers doing. 855 00:27:22,440 --> 00:27:23,860 And that's why they quit, right? 856 00:27:23,920 --> 00:27:25,420 And so the really good ones are the 857 00:27:25,420 --> 00:27:28,380 ones who they spend time learning how to 858 00:27:28,380 --> 00:27:32,180 value, they make mistakes, they screw it up 859 00:27:32,180 --> 00:27:34,060 a few times, but they know that eventually 860 00:27:34,060 --> 00:27:35,020 they're gonna get it right. 861 00:27:35,180 --> 00:27:36,640 And the more practice and the more reps 862 00:27:36,640 --> 00:27:38,480 that they do, the closer and closer and 863 00:27:38,480 --> 00:27:39,940 closer they're gonna be to getting these numbers 864 00:27:39,940 --> 00:27:40,240 right. 865 00:27:40,420 --> 00:27:41,980 And then eventually something clicks. 866 00:27:42,100 --> 00:27:43,700 And then once it clicks, and then once 867 00:27:43,700 --> 00:27:45,800 they get consistent on their lead generation and 868 00:27:45,800 --> 00:27:47,420 they get consistent on the number of offers 869 00:27:47,420 --> 00:27:49,120 they're putting out on a daily basis, and 870 00:27:49,120 --> 00:27:51,520 they get consistent on communicating and building relationships 871 00:27:51,520 --> 00:27:53,460 with buyers, what ends up happening is a 872 00:27:53,460 --> 00:27:56,120 business forms and then their lives change. 873 00:27:56,400 --> 00:27:58,680 And so if people can just learn the 874 00:27:58,680 --> 00:28:01,020 techniques, learn the tools, and then have some 875 00:28:01,020 --> 00:28:03,440 consistency and know that it's not gonna be, 876 00:28:03,660 --> 00:28:05,180 nothing is easy. 877 00:28:05,360 --> 00:28:07,680 Nothing worthwhile is just gonna fall out of 878 00:28:07,680 --> 00:28:09,540 the sky and be a cakewalk to do. 879 00:28:09,760 --> 00:28:11,300 What I do is difficult. 880 00:28:11,560 --> 00:28:13,480 It takes time, it takes effort, it takes 881 00:28:13,480 --> 00:28:15,540 tenacity and consistency. 882 00:28:15,780 --> 00:28:17,400 But if you put the work in, you 883 00:28:17,400 --> 00:28:19,360 can build a business where you're making 50 884 00:28:19,360 --> 00:28:22,420 to $100,000 a month and not taking 885 00:28:22,420 --> 00:28:23,040 any risks. 886 00:28:23,540 --> 00:28:25,140 For me, that's a great life. 887 00:28:25,640 --> 00:28:27,960 You know, it's interesting because if I take, 888 00:28:28,060 --> 00:28:29,280 and by the way, phenomenal advice. 889 00:28:29,360 --> 00:28:30,620 I mean, if I listened to what you 890 00:28:30,620 --> 00:28:33,320 just said and I replaced real estate with 891 00:28:33,320 --> 00:28:35,340 running a business or starting a business, it's 892 00:28:35,340 --> 00:28:36,240 exactly the same thing. 893 00:28:36,320 --> 00:28:38,400 I mean, like if you're watching this, I 894 00:28:38,400 --> 00:28:40,780 really suggest that you literally go back two 895 00:28:40,780 --> 00:28:42,680 minutes and start over what he just said, 896 00:28:42,680 --> 00:28:46,040 because what he's describing is exactly where entrepreneurs 897 00:28:46,040 --> 00:28:46,720 fail. 898 00:28:46,900 --> 00:28:49,580 I mean, spot on exactly what happens. 899 00:28:49,900 --> 00:28:51,880 And that advice is so telltale. 900 00:28:52,020 --> 00:28:53,660 I mean, literally, like my hair stands on 901 00:28:53,660 --> 00:28:55,780 my arm because it's like, you literally describe 902 00:28:55,780 --> 00:28:59,120 why business owners fail at whatever they're doing. 903 00:28:59,380 --> 00:29:01,020 And then you followed it up with the 904 00:29:01,020 --> 00:29:03,040 exact path that you need to take to 905 00:29:03,040 --> 00:29:03,420 succeed. 906 00:29:03,540 --> 00:29:04,840 So I just, it means a lot that 907 00:29:04,840 --> 00:29:06,680 you say that because everybody watching here today 908 00:29:06,680 --> 00:29:07,200 is an entrepreneur. 909 00:29:07,640 --> 00:29:07,800 Thank you. 910 00:29:07,880 --> 00:29:10,200 Yeah, and these parallels are true, right? 911 00:29:10,200 --> 00:29:12,500 I think one more thing that not a 912 00:29:12,500 --> 00:29:14,200 lot of people talk about, but I don't 913 00:29:14,200 --> 00:29:14,960 fear doing it. 914 00:29:15,120 --> 00:29:17,140 I think that there's a connection between the 915 00:29:17,140 --> 00:29:19,780 spirit and your success in entrepreneurship. 916 00:29:20,340 --> 00:29:22,680 And there's a lot that you can do 917 00:29:22,680 --> 00:29:25,100 from the inside that will reflect on the 918 00:29:25,100 --> 00:29:25,440 outside. 919 00:29:25,940 --> 00:29:28,720 And so for me, I was able to 920 00:29:28,720 --> 00:29:31,020 take the journey inward because of entrepreneurship. 921 00:29:31,100 --> 00:29:33,620 It's what led me to practices like meditation 922 00:29:33,620 --> 00:29:35,000 and breath work, visualization. 923 00:29:35,980 --> 00:29:40,160 And those practices have accelerated my life and 924 00:29:40,160 --> 00:29:42,640 accelerated my success to a degree that I 925 00:29:42,640 --> 00:29:43,680 can't explain. 926 00:29:44,160 --> 00:29:47,440 And so I invite people who are curious 927 00:29:47,440 --> 00:29:50,120 about why they're here, what their purpose is 928 00:29:50,120 --> 00:29:52,440 and how they may be able to do 929 00:29:52,440 --> 00:29:54,160 more with less. 930 00:29:54,560 --> 00:29:56,860 Maybe it's not outside that you need to 931 00:29:56,860 --> 00:29:57,040 look. 932 00:29:57,160 --> 00:29:58,040 Maybe you gotta go in. 933 00:29:58,440 --> 00:29:58,900 That's powerful.