Speaker 1 (00:00:00):
Welcome. Welcome everyone. Hope everybody’s having a good night. I’m so glad that you are here to join us on our Tuesday night webinar. Hey, as you guys are rolling in this evening, if you would go ahead, put in the chat where you are from, um, we are trying to, um, set a goal to get everywhere in the country. So we really appreciate it. If you let us know where you’re, where you’re coming from. We’ve got Erica from, Georgia mark from the villages in central Florida, Allen from Dayton, Ohio. So, so glad to have you guys, uh, mark Maricio from Maryland. Um, actually I am in, uh, Dawsonville, Georgia, which is about an hour north of Atlanta. We got Kristen, uh, Christine from Buford, Georgia, Andy from Florida, Steve wise, California, David from St. Augustine. Absolutely love St. Augustine oldest city in America. I believe.
Speaker 1 (00:01:08):
Um, I’ve I’ve much enjoyed going there to visit. Oh yes, Daniel. It is open for Canadians too. So glad to have you here with us tonight. Super, super glad. Yeah. Again, as everybody’s popping on, just let us know where you are. We got, uh, Greg, uh, Glen from Clearwater, Florida, Palm desert, California. Welcome, welcome Janie from Claritin, Pennsylvania, no matter where you are, we are so glad to have you. Um, man, I don’t know about you guys, but I’m having an awesome day, um, having an awesome week, uh, doing some deals, I think, um, here at partner-driven we’re closing about five deals this week with different partners, which is super awesome. Terry from San Jose, California, New Jersey, and the house looks like we got all the way from the east coast to the west coast, all the way to Canada here this evening. God, I can not wait to talk to you tonight about one of my literally favorite subjects, which is, which is working with sellers.
Speaker 1 (00:02:23):
Um, working with sellers is, is I call it my super power, um, because it’s something that I absolutely love. I learned a long time ago, the importance of working direct to seller. So super excited to share some of that with you guys tonight. Um, let’s see, we’ve got Diane from Denver, Colorado, Eugene Faulkner from Chicago, Illinois. Actually, I was just talking to another partner. Eugene, you need to get with rod Atkins, he’s there in, uh, Chicago proper. Um, I think you guys would get along good. By the way, I was talking to one of our partners. I was just telling about another guy that we work with up there. Um, but by the way, you, you and him would definitely get along. You’ve got to get together, go have some coffee. Well, how’s everybody doing today on this beautiful Tuesday, everybody having an awesome day.
Speaker 1 (00:03:23):
Good, good. That’s so good to hear. Well, we’re just going to wait just a few more minutes and let everybody pop on this evening. Um, I do have some, some announcements to make one super cool thing. That’s coming up November six and November 7th is actually our partner driven live event. It’s we had it last week. We talked about that last Tuesday, but it’s literally two full entire days of, of training on how to deal. So if you want up to speed and really go through the content, really start getting your yourself on the right foot, then I suggest you join us for the live event. So if you go to www dot partner-driven live.com, you’re going to be able to go there. You’re going to be able to register and get you in before. Um, the tickets are gone. We are going to limit the tickets to that event, even though it’s virtual, because we’re going to be doing some really cool things.
Speaker 1 (00:04:29):
We’re gonna have some speakers come in. We’re going to do some different breakout sessions. And um, so if you’re going to join us for that on the sixth and seventh, go ahead and register. Now. That’d be awesome. Christopher says it is hot and sniff Seffner, Florida. I agree. It’s well, it’s, it’s probably not as hot here in north Georgia. It’s about 74, but the air conditioning went out in the office and it’s like 81 in here. So I’m like, but I am here in the office here in Dawsonville, Georgia. Well, all right, well, let’s go ahead and get started this evening. So, you know guys, if, if you are here, you’re probably one of two types of people. Number one, you’re, you’re either a partner of ours and we’re already working with you. And this is just another way for you to engage with us on a Tuesday night, along with the daily trainings that we have for you.
Speaker 1 (00:05:27):
So we’re so glad that you guys are here. Okay. Um, or there’s some of you out there that are not yet partners and you’re, you’re really just coming here to, you know, obviously maybe get some training as well to see if kind of, if this is the real deal, if, if this is right for you and Hey, we’re glad you’re here too. So let me kind of go over, you know, get the formalities out of the way before we get into the training tonight. But the one thing we do here at partner-driven or one of the many things we do here at partner-driven is we work with people just like you across America and help them learn real estate investing. Um, we’re going to show you exactly how to find deals, teach you. What’s a good deal. What’s not, um, as well as when you find a deal will actually help you fund the deal, help you close the deal and split profits with you 50 50.
Speaker 1 (00:06:26):
And in guys we’re like I said, we’re already closing five this week with a few, with other partners that we have, and we want you to be the next one. And I really, really hope that you take that leap of faith, because what I’m about to share with you tonight is, is going to be very, very important as we go through this next year or what I feel we’re going to see over the next year here in the, in the real estate market. So, um, I’m just wanting to check the, the chat here. Oh, by the way, I frequently check the chat. So I do not mind at all if during this presentation, if you would like to ask any questions and definitely participate with me, that would certainly help. I would love that. I would love for you to be involved. Any questions put in the chat, certainly appreciate that.
Speaker 1 (00:07:19):
You know, if you thought about becoming one of our partners, if you would like to learn more, um, really all you have to do is go to www dot partner, driven.com. Um, Kristen’s going to go ahead and put a, um, that website in the chat along with a way for you to schedule a call with us. Okay. So if you would like to learn more about that program, we would love to talk to you. We are actively taking applications for new partners, especially as we go into next year, because it’s going to be a big year for sure. Well, you know, I want to kind of go ahead and get into the training this evening and talk to you about what I feel is one of the most important steps as far as real estate investing is concerned, you know, over the past seven and a half, almost eight years now, um, I’ve been able to complete a little over 1600 deals and I’ll tell you without understanding how to work with sellers, I would have never have gotten to that point.
Speaker 1 (00:08:31):
So, you know, really, I believe one of the most important things that you can do is hone your skills in when you’re working with sellers, some of the best deals that are out there are going to be direct to seller. And what does that, what do I mean by direct to seller? What I mean by that is you actually talking to the person that owns the property and making them an offer for the property. Okay. Um, I’m not getting any of the properties I’m doing off of the MLS or from other wholesalers. Not because I don’t appreciate what they do cause I actually wholesale myself. But to me that’s just not where their deals are. Um, they haven’t really been in a couple of years. And also if you structure your business where you always rely on someone else to find your deals, then you know, what type of business are you really setting up when it’s on the backs of someone else finding your deals for you. So I encourage all of you to really take that to heart and really understand how important it is that you’re able to work direct with sellers on, on everything that you’re doing. And tonight that’s literally what we’re going to be talking about. Hey guys, give me just one second. This light is literally blinding me.
Speaker 1 (00:10:02):
I’m so sorry. I just could not take it anymore. All right. So you know, why is working with sellers so important? Number one, you don’t have middlemen. Number two, what you’re able to do is you are, what you’re able to do is you’re also able to work out whatever types of deals that you’re able to talk to the seller about. Okay. So one of the few things that I do is I do wholesaling fix and flips creative financing deals. And you know, I’m a big proponent of solving sellers issues. Whenever I go to, um, when I go to meet with someone, not every time when dealing with a seller, is it all about the cash that you’re going to give them, they can have other issues going on. So being able to actually understand what someone’s issues are, you’re able to offer, you know, more options for that person to help them out.
Speaker 1 (00:11:03):
Also go in, you know, going forward with what’s going on right now, guys, I, if you’re looking to get into real estate, or if you already are in real estate, you really need to start taking this seriously. I want you to kind of look at what’s going on with the world right now. Okay. Expecially, when it comes to mortgages and potential foreclosures coming up in the future. I mean, does anybody else put in the chat? Does anybody else see that? Like I’m seeing it, are you seeing potential foreclosures come in the future? Absolutely. There’s no way. There’s no way with, with people not being able to pay their bills, loss of jobs, the memorandums that are coming out. I mean, it’s, it’s going to very, very hard for individuals to get themselves out of these potential situations. And, and you know, one thing that that I love to do is I do love working.
Speaker 1 (00:12:05):
Pre-foreclosures why, well, obviously when you’re working a deal, you’re not in this business not to make money, right? It’s you’re, you are in this business to make money, but if you are, some of you are like me, I also really appreciate the personal contact with individuals and being able to help them out of their situations. I mean like literally 10 years ago, I was in a similar situation with, with bankruptcy over 10 years ago. And I really did not understand or know what my options were and guess what there’s going to be a lot of people that feel the exact same way. And it’s not just going to be at their house is foreclosing. It’s never just one thing in life. Have you ever heard that? Like bad things come in three, it’s probably a superstition. I get it right. But you know, for me, when you’re, when a lot of people are in foreclosure, it’s not just that they may have lost their jobs.
Speaker 1 (00:13:10):
Somebody could have passed away, they could have, you know, lost their relationship with a significant other. So things just pile and pile and pile on top of one another. And guys, in my opinion, if you’re really wanting to, to be in this business and be successful, you should want to be out there and help these individuals that are in this situation. And the terrible part is, is there are tons and tons of individuals out there that not only are in pre-foreclosure, but they have equity in their home. Yeah. Real equity in their home. So do you know, what’s going to happen to these guys. They’re going to lose their house back to the bank. They’re going to lose their equity. When you have a foreclosure on your record, do you realize that that stays on your credit for seven years, seven years? Anybody that’s ever been in foreclosure or bankruptcy?
Speaker 1 (00:14:14):
I mean, my goodness, it’s like a Scarlet letter on your chest that you carry around because for seven years, it’s on your credit report when you help someone out of foreclosure, but possibly purchasing their house prior to them, losing it back to the bank. Yeah. It might show some missed payments on their credit report and they can fix that within a year or so, but after, but after you know, who wants that for seven years and you know, I talk a lot to people about the fact that when you get in these situations, like I did, what do you do? You stick your head in the sand because you’re thinking, oh my gosh, it’s going to fix itself or what else is coming next? But what people need to understand is where you are today is not where you’re going to be a couple years from now because you’ll hear a lot of individuals in this situation say to you, well, I don’t care if the bank takes it back or not.
Speaker 1 (00:15:15):
I hear that so much. So, you know, you’re going to let them take it, take your house away from you anyway. And you’re going to get nothing in return, especially if you have equity who really, really wants that. Okay. So I do want to talk about pre-foreclosures a little bit just to make sure everybody understands what the exit strategy is there. Okay. So what’s a notice of trustee sale comes out. Um, and that is public knowledge that indicates that someone is in a pre-foreclosure status. So they still own the house. Okay. The bank does not, and they may have not have set an auction date yet. But what it means is they’re getting notifications from the bank, letting them know, Hey, you’re not, you know, obviously you haven’t been paying this and you haven’t been paying that. So we are going to move to an auction status.
Speaker 1 (00:16:12):
Okay. Now a lot of times people again, will tend to just stick the letter here, stick the letter here. But if you can go in and start meeting with these sellers prior to them getting to an a couple of weeks before the auction, you can really help them out expecially with equity. It, especially if they have equity, assuming that your goal is to buy fix and sell it or potentially wholesale it. Um, I’ll tell you why a little bit, I don’t normally wholesale pre-foreclosures, but for those of you out there that like creative financing deals such as like subject to maybe taking over someone’s mortgage. This is also a time of great opportunity whenever, when December and I saw someone say it and they said a tsunami is going to happen in December. They’re not talking about a big waterfall. They’re talking about the fall, you know, of, of all of these individuals that are getting these notices right now.
Speaker 1 (00:17:17):
And guess what you can go in there and you can buy these properties. Also, let me tell you this, the quicker that you get to these individuals, the better off they are. Okay. The reason for that is, is because every day that goes by every week, that goes by the bank is just adding more and more fees, more attorney fees, more, you know, all just sorts of types of fees on top of, of what they have their redemption period of their redemption amount that they need to pay. So when working these particular leads, it’s super important that you get onto this as soon as possible. Okay. Now, by the way, if you guys have any questions about pre-foreclosures, you can put that in the chat. I’d love to answer those for you. So here’s the perfect case scenario. Someone are not perfect, like in a situational, but perfect.
Speaker 1 (00:18:16):
As far as a way that you’re going to be able to kind of get one of these particular deals done when someone’s in pre-foreclosure and they have equity into the property. When they have this equity, a lot of times you’re able to buy the property. Okay. Then you’re able to put a little bit of money back into their pocket. So they’re able to kind of move on to the next stage of their life. Um, you know, when you’re moving out of a property, I mean, it’s, it’s, you’re maybe you are going to go rent somewhere. Well, you go deposit on this at a posit on this moving expenses. So it’s nice to be able to offer these sellers a little bit of money so that they are able to kind of move on to that next stage. Okay. So let’s, I’m going to kind of break it down in simplistic terms.
Speaker 1 (00:19:06):
Um, Nolan Vargas wants to know where do we find these, these notices? Well, these notices are actually, these notices are actually, you can go to your, your local county to figure this out, or you can utilize, um, deal driven, which is a software, um, which is a software that we have created to pull lists, to do virtual driving for dollars. Um, you can pull equity, all sorts of things like that, and that’s deal driven.com. Um, so, you know, you know, actually since we’re here Newland, um, tell me, where are you located? What, like city and state I’ll show you guys exactly how to pull pre-foreclosure notices in your area, utilizing deal driven. If you would like me to, oh, Gainesville, Georgia Newland, by the way I live in Delonda right next to you. Um, Sandy’s in Albuquerque New Mexico. Okay. So if you don’t mind, I’m going to go ahead and do a screen share here.
Speaker 1 (00:20:12):
All right. So I, what I’m doing is I’m inside of deal driven and I am, let me go back here is I am looking to build a list of people that are in pre-foreclosure. Okay. So I’m going to go to the lead building search. I’m going to put the city and state here. We’re just going to use Newland, which is in Gainesville, Georgia, you can use a radius search, or you can draw a polygon area to find this in your area. For, for this particular thing here, I’m going to actually pulled us out to 35 miles around Gainesville, Georgia. Okay. Um, now I’m still not done yet because I want to go and pick some of the, the list that I want to pull it up. I called this, um, lists stacking. Okay. So I’m going to be looking for pre-foreclosures. If you’ll notice. I started out with 10,000 records now in a 35 mile radius of Gainesville, Georgia.
Speaker 1 (00:21:18):
I actually now have 432. Well, you know, you could pull all of the people that are in pre-foreclosure if you wanted to, but I’m going to filter this down a little bit because remember how I was telling you guys, it’s nice if they have equity. Okay. Because equity is the difference between what someone owes in the property and what’s it’s worth. So if you’re looking to buy, fix and sell without the equity, there’s not going to be a profit margin in there. Okay. So we’re going to stay actually, I’m going to do single family and multifamily here. And when it comes here to equity, I’m looking for at least 35%. I may even go to 40% equity. Okay. All the way at most. I’m not going to put anything there, but that’s all the way to a hundred percent. Okay. Normally when I’m pulling lists, I’m going to pull it up a valuation, but because they’re in pre-foreclosure, I’m not going to worry about it. You could also use bedrooms and baths and an auction date. I want the auction date to be, let’s see here after let’s say today’s date. Okay.
Speaker 1 (00:22:42):
So once I pulled that, now I can show my results here. So essentially using deal driven, you can look up all of the pre-foreclosures in your area and find the details on it. Like, look at this one on bluff valley circle. This person is an out-of-state owner. It’s non-owner occupied and they’re in pre-foreclosure. Okay. Um, this one is in pre-foreclosure it’s likely vacant and they’ve had a recent mail delivery change. This one right here would be something I would really, really look at. Um, and, and what you’re going to do is you’re going to pull your list. You’re going to skip trace them. And then we’re going to talk about that here in the future. But you can go to your local county. You can go to multiple places to pull lists for pre-foreclosures using deal driven. That’s how I’m pulling pre-foreclosures in my area.
Speaker 1 (00:23:38):
So normally I’m looking for a certain amount of radius around my PR my, my, my area I’m for at least 35 to 40% equity. Okay. Um, again, cause I’m looking for that profit margin and I want you to think about that. Did you see all of the people that are around Gainesville, Georgia that have 40% equity, 347 people are in pre-foreclosure right now, 347 in Gainesville. Georgia is not a huge city in relative to a lot of places that have been put up. Okay. So now let’s, what we’re going to do is we’re going to talk about what’s your take on foreclosure.com um, aimless, you know, really when you’re email@example.com or auction.com, you’re looking at properties that have already been taken over by the bank. Okay. So for me, I’m trying to get to sellers prior to them being backed bank owned. Um, it’s just, there’s too much competition in bank owned properties and making offers on those right now. And my goal is really to kind of help people that were in a situation like, like I was in. Okay. So that’s, that’s kind of what I’m looking for. Do you have to be a certified private money broker before making deals? No, you don’t. Um, I don’t have a license, a real estate license nor a brokerage. Um, if I’m borrowing money, it’s I, you know, I’m borrowing money from a broker.
Speaker 1 (00:25:18):
What is the approximate age of the pre-foreclosure leads on? So every month at the very beginning of the month, we update our data inside of deal driven. So it’s updated each and every month. Um, if it does have pre-foreclosures that I’m not utilize that information, look it up on another site to figure out what the equity is, have to figure out how much they owe on their property so that I’m able to skip, trace them, get the owner’s information. So that’s what I would do. Short sales for me right now is it’s kind of a dead business, um, until things progress a little bit further, um, because normally with a short sell, they have to be listed for up to a week with a realtor and take highest and best.
Speaker 1 (00:26:04):
Alright. So what I would like to do is I would like to talk to you about how do we market and how do we get in touch with these people that are in a pre-foreclosure status? Right? Um, number one, you heard me talk a little bit, you heard me talk a little bit about skip tracing. What skip tracing is, is what we’re doing is we’re looking at phone numbers for the individual that actually owns the property and sort of deal driven. You’re actually able to sometimes pull their email addresses and their social media profile. So yes, absolutely. I’m going cold call people that are in pre-foreclosure and try to set an appointment, which I’m actually going to go over that exact script with you here in just a little bit.
Speaker 1 (00:26:53):
Also, the other thing I’m going to do is I’m going to send everybody on my list a letter, okay. Now I realize that this is, is, can be a little bit, you know, older and antiquated way of doing it, but let me tell you, it absolutely works. I love direct mail. I spend a lot of money on postcards for other type of marketing, but I’ll tell you when it comes to pre-foreclosures, I actually will hand write my envelope to the seller every time. And I will formulate my pre-foreclosure letter to that individual. Why do you think I want to take the time to send a handwritten envelope to everybody that’s on my pre-foreclosure list. There’s lots of different types of motivated sellers. And let me tell you someone that is in pre-foreclosure is somebody that is definitely a motivated seller. Barbara said post personal contact.
Speaker 1 (00:27:56):
It stands out from the rest. You guys are absolutely right. People open them. It’s personal. Yeah. I mean, think about it when you get an envelope in the mail and it’s handwritten, what do you think? Oh, somebody invited me somewhere. Somebody sent me money. I’m going to open it. So part of marketing is just someone seeing your marketing material, right? So you’re not going to have tons of these where this is not going to be worth your time, but I do encourage you to take that extra step, um, and write those envelopes. Should the letter be typed?
Speaker 1 (00:28:35):
All my letters are typed for pre-foreclosure, but I will hand sign the bottom of these letters every time. And one good way to find these letters. Um, I use a nine, I don’t know what an 89 envelope is. I’m assuming that’s a regular number 10 envelope. I’m not a hundred percent sure there. Oh, an invitation envelope. Yes. Amos invitation envelopes work really, really well. Um, so I do that a lot for my driving for dollars leads, but with pre-foreclosures generally I may use, um, I may use my, uh, regular number 10 envelope because it’s a little bit more official. Yeah. I do kind of have a template for these letters. And by the way, I would like to mention the, the, when you’re sending a letter from you personally, or from your business, it should really match your personality. Okay. And I hate to send you to Google, but I want to give you something to Google real estate investing pre-foreclosure letters, real estate investing pre-foreclosure letters.
Speaker 1 (00:29:45):
Now, gosh, you can go to tons of websites and go buy these letters. I promise you. It’s not that hard to go find the letter that you want to use that matches your personality, make it yourself and send it out. It is going to be the difference and in you doing a deal or not, I promise you paying someone else to send this particular letter out your open rates. Aren’t going to be as high as if you did this yourself. Okay. So that’s one place that you can find those particular letters. Let me make sure I’ve got all of my questions asked here. All right. The other thing that I do and you know, I’m, I’m a little bit more willing to, to definitely go out there and find as many leads as I can is I’ll take everybody on that list and I’ll actually put a note on their physical door.
Speaker 1 (00:30:40):
Yes. You heard me, right. I’m going to go put a note on their physical door. I remember I was telling you, there are a lot of different types of leads that you can work. Some of which are super hot leads, which are pre-foreclosures, you’re only, you know, some of you, we’re only going to have 10 or 15 of these in your town. So what you might as well do is work these to the greatest extent, send letters. And they put a note on the door when you’re driving by. Okay. By the way, I always keep, um, a legal size pad in my truck. And actually I have a legal size pad that looks like a post-it note so that I could stick it on the door. Cause let me tell you whatever you do, don’t ever use scotch tape to put a note on the door because it will peel the paint off.
Speaker 1 (00:31:25):
Ask me how I know. Okay. But those other type of letters, you, the, the, the post-it notes, I’m telling you, what about won’t do that otherwise kind of stick your letter in the door. Okay. So now what I want to do is I want to talk about the phone call to me. This is one of the most important things that you can do, um, is, is, is really work on these, on these phone calls and call everybody on your list. I’m going to do a combination of sending my letters, putting the note on the door and calling them. Because again, I want to get to as many people as possible that are on that list. Okay. So, um, I’ve actually got a script here that I use for pre-foreclosures. You are more than welcome to take a picture of your screen. I’ve used this for many, many years.
Speaker 1 (00:32:23):
Um, when working with pre-foreclosures now, if you hear me talk about making a lot of other calls, such as like a driving for dollars call, or maybe a cold call to a marketing list, I’m usually like super excited, very, you know, high energy. And I’m going to be very polite and nice on this particular phone call as well. However, okay. Remember what these individuals are going through. It’s going to be better if you have more of an empathetic tone. Okay. So remember that empathetic tone when you’re making these calls. The other thing is guys, be yourself when you’re making these calls. A lot of you don’t like to make phone calls. Is there anybody on this call that just kind of hates making cold calls, anybody here that hates making cold calls?
Speaker 1 (00:33:24):
Yeah, absolutely. You do. I know a lot of you are going to say that. And a lot of us are afraid to make calls because you’ve been forced to use a script you’ve been forced to talk or to sell something. What you need to take out of your mind right now is that you are not trying to sell anything. Okay? What your goal is, is you are trying to build a relationship with someone on the other end of the phone, quit trying to pretend or talk like somebody else, just be yourself. People are going to know the difference. So if you are yourself, what that’s going to do is that’s really going to take some of that fear away. And as we’re on that subject, I would like to bring something else. Right.
Speaker 1 (00:34:19):
And Daniel, yours, you said what’s an empathetic tone. I’m actually going to go through the script and you’ll hear kind of that empathetic tone. Okay. Um, but I do want to kind of, as we’re going into making these calls, I want to run something by you guys. There are, you know, basically there’s two types of people in the world. Okay? Number one, they’re fighters. And number two, there are Fleers and this is in any situation and I’ll tell you, 90% of the population are flares, right? They are. And why do you think individuals choose to fleet any situation in life? I mean, any situation, whether it’s a phone call, maybe it’s a snake came by who? Maybe with any situation in life. Why do you think people choose to flee a situation? Go ahead and put that in the chat. Now T Pierce is right.
Speaker 1 (00:35:26):
It’s easier just to walk away fear. They don’t want to deal with it now or later. You’re exactly. They’re scared fear. That’s right. Lack of self-confidence fear of the unknown. Right? Great answers guys. Great answers. Would you guys not all agree that almost every answer to that is going to be based off of fear. You’re they’re afraid. They’re afraid that they don’t know. They’re afraid that, you know, they met maybe led them to the wrong situation. That’s right. When you are making these calls, guys, I want you to listen up to this. Okay? Your job is not to get a deal on these phone calls. That is not your job. Your job on these phone calls is to stop someone from fleeing the situation. Okay? Whenever you’re making a call, well, how do you do that? You, yourself, you tell the truth. You really come across with what you’re trying to say. Okay? You use your own personality. Again, people love to do business with who they know and they trust. And, and most people can tell whether you’re being true to yourself or you’re being a different person. So don’t be afraid to make these calls because of fear. Don’t even look at it as getting a deal. Look at it. As that, you are here to build a relationship with these individuals. Okay?
Speaker 1 (00:37:02):
And let me look at the chat real quick, and I’ll get to some of these questions in a minute. I want to go through this, this call and how I make it. Okay. I’m actually going to go over two types of calls tonight. Number one is the pre-foreclosure and number two is the driving for dollars call. Cause I want to show you how these two different calls are a little bit different. Okay? Hey John, this is Julie. How are you doing today? Oh, good. Good. Why should? The reason that I was reaching out is because I received your information, you know, from a list that leads me to believe that you guys need to sell your property. Usually they’ll say, well, what lists are you talking about? Well, John, I did notice that your property is in a pre-foreclosure status. And I specialize in helping people, just like you avoid foreclosure by buying their home prior to them, losing it back to the bank. And in a lot of cases, we’re actually able to, you know, bother property is, well, let’s put a little bit of money into your pocket so that you’re able to move on with your life in a better position. So I was wondering if there’s any way I could come out there and take a look at the property and meet with you and see how I could best help you. John, you think tomorrow at four would work for you.
Speaker 1 (00:38:31):
So I don’t like to come out in a pre-foreclosure and say, I know you’re in pre-foreclosure. I want to lead them into that conversation. Okay. Also at the beginning of the call, this is kind of weird for a lot of people. But when you say like, Hey John, this is Julie, how are you doing today? A lot of you are worried about whether John’s going to be on the other line. Don’t worry about that. I like it whenever John says like Julie, Julie, who like I should know her, it breaks down boundaries. Okay. So when you’re making these calls, a lot of people are going to be like, well, I’m working something out. You know, give me a couple of weeks. You’ve got to do what you’ve got to do to try to meet with them as quickly as you can. Okay. And I let people know, Hey, if we wait a couple of weeks, that might cost you a couple thousand dollars out of your pocket. Especially by the time the bank puts all of their fees and attorney’s fees on it. Why don’t you just let me come out there tomorrow and see what I can do. If you guys choose to go another route, it’s no harm, no foul. I’m not going to hold you to anything. Okay.
Speaker 1 (00:39:43):
That call really is that simple. Okay. Okay. You want to know if, what if you don’t have any money to put in their pocket for moving? Let me kind of explain to you how you would get that. Okay. So let’s just say David, that the, the after repair value of the house. Okay. Or let’s just say, what it’s worth right now is a hundred thousand dollars. Okay. Let’s say that they owe $55,000 on their mortgage. That’s the outstanding mortgage that’s going to be foreclosed on. Okay. It’s worth a hundred. They owe 55. Well, generally you’re going to be offering somewhere between 65 to 70% of what the property is worth. So if they owe 55, right, and you’re going to be offering, let’s say 70% of what the property’s worth. My offer is 70. They owe 55. Okay. So what they’re going to do is that closing minus and closing fees and things that are essentially going to walk away with $15,000 at closing, that’s not necessarily coming out of your pocket. David does, did that answer that question? Does anybody have any questions around that? What I’ve just discussed there.
Speaker 1 (00:41:15):
I want to do all of my deals virtually I’m from New York city. How can I use cold calling scripts to do virtual deals, seeing the property, et cetera. Okay. You can do all of this stuff virtually. Okay. You can do all of that, this virtually, however, you’re going to need updated photos. And I’m also, um, and I’m also what I’m going to do is I’m going to have them do a virtual walkthrough through FaceTime or Facebook messenger. Cause a lot of times when you get photos from sellers, they’re from a couple of years ago and you want to make sure that what you’re seeing is what you’re seeing now. And if you are going to be doing a fix and flip, you really need to see the property regardless. Or you’re going to senior inspector or you’re going to need to, you know, definitely have your construction gods in there.
Speaker 1 (00:42:12):
Okay. You want to start wholesaling first. Okay. I’m going to get to, I’m going to stay on that topic. So I’ll tell you one big reason why I don’t wholesale. Pre-foreclosures this is a personal preference of mine. This is not that you can not do it. Okay. I just want to kind of put this in your mind. Imagine meeting with someone that’s in pre-foreclosure. Okay. And they put all of their eggs in the basket that you’re going to help them out. Okay. By buying their home prior to them, losing it back to the bank. Okay. So you get it under contract. And then your goal next is to do what is to find a buyer, correct? To find a buyer that you can assign that contract to. Okay. Now what happens if your back in buyer backs out of the closing date, that’s a week before the auction, what do you think happens?
Speaker 1 (00:43:16):
The problem there is is that if you’re backing buyer backs out, your, the seller has just put all their time and energy into you and they will end up losing their home. So if you do not have a great relationship with your buyers, if you don’t know, 100%, it’s going to close. I do not. I really do not suggest wholesaling pre-foreclosures unless you have a big buyers list that understands, I just don’t want it on my conscience that I told somebody I was going to go help them and a back-end buyer back out. And I don’t have the funds to close on the deal. I just don’t. I just wouldn’t be able to live with myself. However, if you’ve got good buyers and you know, they’re going to close, then that’s, that’s a different story. I just wanted everybody to kind of understand that philosophy there. Okay. So Nolan, um, can you explain it again? How he walked away with $15,000? Yes. Okay. So let’s say set property is worth $100,000. Okay. Generally, generally, you’re going to offer on a fix and flip 65 to percent, whichever one you’re choosing, depending on your marketplace, let’s use 70%. So you’re taking 70% of what the property is worth. That’s going to be your offer. I’m not even getting into repairs right now. Okay. So on a hundred thousand dollars property that doesn’t need any work, what would your offer be?
Speaker 1 (00:45:00):
70,000, correct? They owe $55,000. So your offer 70, they owe 55. The difference that they’re going to walk away with is the difference between the 55,000 and the 70,000, which is 15 grand. That’s how they’ll be able to walk away with money. Sometimes in some deals, there are not, there’s not enough equity to give them money, to move out. Okay. But if you can squeeze that in there, it really helps because you do want these individuals to move out at closing. So giving them some money, um, to do that or knowing they’re gonna walk away with some money is only going to help them get out of there faster with less issues. I promise you that, okay.
Speaker 1 (00:45:50):
Sandy wants to know how do we know how much the property’s worth? Okay. So there’s you, there’s two different ways of looking at how much a property is worth. There’s an as is value, which is how much is it worth right now? And then there’s something called an ARV, which is an after repair value. Meaning once you put work into it, how much is it worth? Then you can get really good comps from a local realtor. You can look at our website called deal driven, and it will give you comps. It’ll also give you as is values. You can look at websites like Zillow, Trulia, really, or realtor.com. Not all of those are necessarily my favorite, but that’ll give you a good idea of what a property is worth, but I’ll tell you before I buy a property, I’ll always have the realtor. That’s going to sell it on the backend. Tell me what they could sell it for, because what they tell me they could sell it for really does matter to me because that’s what I’m holding it too.
Speaker 1 (00:46:51):
Hold on just a second guys. Let me look at the chat here. Christopher wants to know, is it possible to sell the pre-foreclosure by listing it and selling it to another buyer before it goes to foreclosure? Yes, Christopher, it is, but it all depends on time. If you’re three or four months ahead of the auction, okay. That might be something you may want that not be feasible. If you’re three weeks away from me at three, four weeks away from the auction, it’s going to be absolutely impossible. You’re looking at actually buying them. Okay. Actually buying the what if in the next 12 months that property will go as down to $50,000? Well, Daniel, it depends on if you are looking to keep it, or if you’re looking to sell it off quickly, normally when you’re selling properties, there’s going to be indicators that the market is going down.
Speaker 1 (00:47:55):
And that is not right now. I mean, I don’t know if any of y’all have noticed, but literally almost everything that goes to the market is selling above asking price right now. That’s why it’s it’s you kind of have these two worlds where you’re gonna, people are gonna need help. And the market’s hot. That’s a very, very odd time in the real estate market. And there’s going to be the sliver of time where it creates a lot of opportunity for investors. That’s why I’m encouraging you to night to really kind of get on this and start working it. Yeah, we did. We just had a bidding war on one of our partners deal. Exactly.
Speaker 1 (00:48:38):
Do someone said, do you want to check the property? They left and make sure it’s in good conditions before they get their check. Okay. Yes. Generally, they’re going to get their money at the closing table. Okay. But it really doesn’t matter if it’s a pre-foreclosure or any other type of deal. I’ll always do a walk through the day before closing or the morning up because I want to see what it is right before I close on the property, you would be amazed what tenants, what homeowners do to property sometimes what they remove for properties prior to closing. And you definitely do, do not want that.
Speaker 1 (00:49:20):
David wants to know, can you do a lease option? So if they are in a period where they can redeem that mortgage or catch up current, right? What you could do, David is you could pay, they get their mortgage paid back to current. Let’s say they owe eight grand. Okay. You could catch their mortgage up, back to current by paying the grand, go to a regular closing and do a subject to, okay. And then you’re willing to sell it with a lease option on the back end. I’m not sure what you’re wanting to do there, but you, you would want to do a subject two on that deal. And then you could lease option and do a wrap on the back end.
Speaker 1 (00:50:13):
Some wants to know for wholesale. And do we need the ARV to give the owner an offer? Or are we just using the comps? Many, the repairs that are needed. I really feel like if you’re going out to make an offer, you should really know what the ARV is. Okay. It sometimes will make your offers a little bit higher. Okay? Because sometimes you’ll see properties that need 30 grand worth of work. And, but if you put the 30 grand into it, it’s worth 60,000 more. You see what I’m saying? So when you’re truly making an offer and I was remiss not to, to explain it like this, the first time generally, you’re looking for 65 to 70% of the after repair value minus your estimated repairs. Okay. Now, if you’re wholesaling and I’m not talking necessarily about, pre-foreclosures just motivated sellers in this market right now, I would move it all the way to 74% Janey of ARV Monish repairs. So 65% like a screaming deal, 74% is a, oh, I don’t know if that one’s going to work or not, but because you have the ability to renegotiate throughout the deal, I’m going to give it a try. Anyway.
Speaker 1 (00:51:33):
I hope that helped Janie for that question. And God’s right now because of the way that things are selling. If you’re out there wholesaling right now, you need to really be aggressive. You need to put as many properties under contract as possible. You can always renegotiate. And I’m seeing investors pay ridiculous amount of money for properties. Okay. More so than I’ve ever seen. And it really surprises me. So when you’re wholesale and another owner is picking up that property. So you should really, the person that has the most contracts under contract is going to close the most deals. If you’re doing this correctly, you are not going to do every deal that you put under contract. And again, we start with pre-foreclosures, but I’m now kind of segmenting into other deal types or other types of motivated sellers. Okay.
Speaker 1 (00:52:31):
Now we’re running out of Thomas evening to do our driving for dollars script. That’s okay. I’ll cover that with you guys in another day, we’ve got so many good questions coming in. I really don’t mind to sit here and answer any questions you guys may have. I have a property I’m looking at 95,000, but they’re not motivated to sell. I can probably okay. He has a property he’s looking at and they, and the owners want 95,000. He can probably sell it for 125,000 once it’s updated. But I think it would be 10 K or less.
Speaker 1 (00:53:18):
And they want to take less than that. They want to take, and they won’t take less than 95,000 because that’s what they, oh, we’ll call the, the idea of them actually come into closing with money. If they owe 95 is going to be zero to none. I wonder kind of what that property is worth as is, is it like one 15? Is it a good rental market too? Can you, can you tell me that call? Is there a lot of renters in that market and how much does somebody pay rent in there? I’m just trying to think if you could wholesale this property to somebody ’cause, sometimes it’s not all about the repairs that need to be done, because if it needs 10,000 worth of work, it may be a perfect rental. Okay. But actually I have to look yes. $1,200 for, oh, I would 1000% call put that under contract at 95,000.
Speaker 1 (00:54:21):
Okay. So what he’s saying is, is he’s got an ARV of 1 25, the owner owes 95,000 and it needs $10,000 worth of work. So if you looked at that correctly, let me see if I can get my calculator out to show you guys. All right. I’m going to share my screen. My calculator here real quick. So Kyle’s deal says that the ARV is 1 25 times 0.70. That would give me my, that would give me 70%, but it needs $10,000 worth of work. Now, with that being said, his offer price should be $77,500. You, he would probably make about a $10,000 wholesale fee on this particular deal, however, and not to get down another rabbit hole here. There’s one other thing about this property is it it’s kind of a heavy rental market and rentals. If I’m reading this correctly are going for somewhere around $1,200 a month, right? If you look at the 10% rule on that, someone might pay up to one 20 for that. So, absolutely all day long, I would try the 95,000. I’m not saying it’s going to be a slam dunk deal for you call, but it’s worthy of you giving it a try. And I would market it as a potential rental. Cause even if it needs 10 grand worth of work, I bet you it’s rental ready right now.
Speaker 1 (00:55:57):
And by the way, guys, when you’re a partner of ours, we have daily training calls. We have one-on-one calls. This is exactly what we talk about each and every day when you’ve got a deal that you’re working with and you’re a partner, all you got to do is schedule a call with our master coaches. And we go over these deals one by one by one, that way you’re confident to kind of move on. And once you find the deal and he’d help fund it, we’re for that too. So if you’re ready to partner with us tonight, go ahead and schedule the call it, call partner-driven dot com. Um, let me see here. Any other questions guys?
Speaker 1 (00:56:45):
Oh, by the way. Um, I know a lot of you were asking like questions about the partnership in the chat. Let me, let me kind of just make this easy on you guys. If y’all would like to just call somebody and ask them tonight. Um, you could actually call Michael Walker. Okay. Michael Walker. And his phone number is (801) 494-9111. Okay. Give Michael a call. He’ll answer any questions that you may have about the program, what it costs. We do different things for certain people. So that’s, I don’t want to throw a price out there, but I’ll tell you this. It’s less than the cost of a down payment for a loan to buy a property, promise you that. Okay. And he’s there waiting on you guys to call. So if you want to call tonight, go ahead and do so. So yes, Lee, we do fund deals with our partners. We take all the risk. We, we purchase it. We train you along the way and literally split the profits down. The middle partner gets half. We get half Sandy. Yes, you do need to go through the training to be on the daily training calls. And we do that every day at 9:00 AM Eastern standard. We do a Monday night call, a Thursday, 3:00 PM call. Um, and you can schedule calls with our coaches like 12 hours out of the day. All right. Any other questions before I let you go this evening? I do not mind to hang around and answer any questions you have,
Speaker 1 (00:58:28):
But you know, really, if you got anything out of tonight, you know, I talked to you a few things about working, you know, with sellers about some tricks of the trade, but I want you to hear me. If you have ever thought about getting into this business, I believe this is a great time to do so. Don’t let opportunity pass you by. I mean, I was tired for so many years, let an opportunity pass me by. And this business literally changed my financial life. So, um, I’m really passionate about it because you know that cliche, if I can do it, you can do it like seriously. If I can do it, you can do it. You know, I didn’t grow up with a silver spoon in my mouth. I don’t have this long repertoire of things that I’ve did in the past necessarily. Um, but I do love working with people. I do love helping people. Um, and that’s, what’s really helped me with my investment company. And even though I train people to do this every day, I’m still out there doing deals each and every week. Why? Because it’s my favorite thing to do.
Speaker 1 (00:59:35):
We do not have Instagram and Facebook lob called meetings. We have zoom meetings, any advice on establishing a buyer’s list? Absolutely. Here’s the best thing. And there’s tons of strategies, which by the way, um, if you come to our virtual, our virtual lab event on the sixth and seventh, we have an entire one-hour segment dedicated to building a buyers list. Okay. But let me kind of give you one key thing here. Um, when you have deals, okay, it’s easier to find buyers. When you have deals, a lot of people get into this business and they start building the buyers list first, before they find deals. And I get that because you’re worried that you cannot sell the contracts without a buyer. Okay? You’ve got to have a little bit of faith, the best way to find the best to buyers or to go find good deals when you’ve got a good deal, buyers will come to you. So do things that are really, really going to make you money in this business. And that’s finding good deals. That’s what I would spend in my a hundred percent of my time doing, you know, Sandy, you said, you know, you got into real estate for less stress. Let me tell you being able to what you want to do, being able to do what you want to do every day on your schedule is locked changing.
Speaker 1 (01:01:11):
Let me see here. Barbara says I literally have no experience at all in real estate investing, but I want to be trained so that I can control my own destiny and build that laugh. I want, how long does the training take to complete to get started? Well, Barbara, we do not have like a start and an end period to our training because I’m a firm believer that you should really start. When you start. I want you to get out there and start doing things that are going to make you money. Immediately sitting through trainings is going to be helpful for you because you’re going to learn a lot, but not taking action day one. Isn’t going to make you money and it’s not going to get you closer to your goal. So training’s never over. When it comes to real estate investing, I still go to the trainings to this day, all the time.
Speaker 1 (01:02:00):
I have a mentor all the time. I learned new strategies, but if you work really hard at it and you, you really kind of get the concepts down, you can get your first deal done within a couple, two to three months. Now I’ve seen lots of people do that. It’s just important that you do not stress yourself with paralysis of analysis and try to take in all of the information at once without taking action, because it partner driven. We’ve got master coaches. I want to teach you how to go out and find deals, how to set appointments, how to make offers, worst case scenario. You get an appointment on your first day and guess what we’re going to be there for you. You’re going to be able to schedule a call with us directly, and we’re going to literally help you throughout that entire process. I don’t want you to wait until you learn some complete program to go out and start making money, because that doesn’t make any sense to me.
Speaker 1 (01:03:01):
Let me scroll down and see here. And if I’ve missed anybody’s comments, please forgive me. I would like to know if I tend to seminar, how would that help getting any closer to becoming a partner? I understand concepts and feel comfortable. Confident I could supply deals now, Dave. Well, um, obviously the training is going to tell you a little bit more about our partnership. It’s also going to get you closer to understanding a little bit more about what’s going on in today’s market. Also. I’ve got some cool guest speakers coming in different parts of real estate, just to provide more and more information. But you know, to be our partner, you do have to have a little bit of skin in the game for us to be able to, to, um, to be able to fund your deals. And I’ll, I would love to work with you on those deals by the way, Glenn is right. Don’t whenever we talk about that and God’s, I love this encouragement. You give people in the chat, just like Glen said, don’t treat it as a hobby. This isn’t a hobby. It’s your business. It’s not a side gig. It’s your business.
Speaker 1 (01:04:12):
I came across a home that just hit the market for 395,000 per deal. Driven at the comps are 6 44. Sorry if I’m weirdly looking close here. Okay. So he saw a property that hit the market for 3 95. Cops are saying it’s worth three, three, I mean 6 45. Can you still put a contract on the home? Absolutely. You can still put a contract on the home, but I’ll tell you if it’s a good deal. And it’s been there longer than about six hours. It’s probably not a deal. Okay. It’s just probably not because anytime you’re using deal driven or any of these other websites, they’re pulling comps based off of comparables around it. So probably the one that’s listed at 3 95 either needs a lot of work to get it to that, that, that ARV of 6 45 or the cops could be off a little bit.
Speaker 2 (01:05:18):
Speaker 1 (01:05:23):
Yeah. Or it could be an outlier, but with, with technology today, the way that they come through that the MLS, a lot of people run macros through the MLS. They just place offers on absolutely almost everything that is listed. All right, let me check the Q and a here. Um, Darryl Knox said, may I ask a question about direct skip? Absolutely. Go ahead and put that here or in the chat. And someone wants to know what the number for Michael is. Again, it is 8 0 1 4 9 4 9 1 1 1 1. I’ll put that down here in the chat again. All right. So, um, I don’t know what your question is about the skip tracing or what question you have about that.
Speaker 1 (01:06:37):
All right. Any other questions guys? Hey, did everybody enjoy this evening at the very least? Is anybody a little bit more motivated to go out there and really, really work on their real estate investing business? Please tell me that you are, whether you liked the webinar tonight or not, you should be wanting to really improve in yourself. The time is now. Opportunity is at your, at your feet. Let’s all go get it. Okay. Let’s really all go get it. Okay. Awesome. Awesome. Well, I appreciate each and every one of you. Thank you so much for taking the time this evening to spend your time with us. Um, here at partner-driven, as always, we’re always here Tuesday nights at 7:00 PM. For those of you that, that you know, would like to be on this broadcast, um, for those of you that are partners, we can catch you tomorrow morning at 9:00 AM for the Wednesday call. Thank you, Eugene. I appreciate it. And as for Taylor, I’m so glad to have you guys have a blessed evening, um, and we will talk to you later. Bye.
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