I’m going to start a little timer cuz the timer thing’s cool let’s do [Music]
all right all right everybody welcome we are live right here this is investor Thrive live weekly call I have my
partners that I work we got David lamorte and Joe how you guys doing today doing great doing great happy Wednesday
happy Wednesday everybody guys it’s important that you start the day off with energy and excitement I got my diet coke ready to rock and roll all right
let’s go so everybody we are G to talk about something that affects me an investor has been investing for quite a
while affects the brand new guy affects everybody someone that’s even been in for 20 years I was on a podcast with someone that was talking to me about the
amount of deals that they have to look at and how do they determine whether it’s worth their time so that’s what we’re going to talk about today is when
you get a seller whether it’s off Market on Market a lead that you see on Facebook a friend brings you a deal and
they say hey I have something are you interested and you have to determine quickly am I going to say no am I going
to look at it how do I determine if this is worth my time do you have all those things David I know we talked about this
a little bit ago you even you even bring this break this down to should I even go to the house you know when the seller
wants to go to the house should I go see it right sure today we’re gonna be talking about should we work something
we can talk about different scenarios but we’ll start with when someone just sends you a lead because that happens to me a lot people will send me a lead on
Facebook or a friend will say hey my I know somebody that wants to sell in this area um or I’ve heard that their house
is listed you should check it out okay so let’s start with there because I feel like that’s the top because if you’re talking to someone and you know they’re
motivated then that’s like a deeper level so let’s start with someone sends you a lead okay so for me like as a as
as we’re looking to work with flippers right we’re wholesalers we’re we’re looking to either uh take the property
down and wholesale it for a fee or if it’s such a good deal you should flip it yourself you really should you should
wholetail it you should you should just take down carpet paint if it’s such a great deal there’s no reason to wholesale something if it’s an easy flip
and you can just put on the MLS yourself right but um the reason why I’m saying
that is like first you got to take a look at the property and you got to determine if there’s flippers or
investor activity in that area okay so I’m going to show you guys a deal that I got sent the other day and I I’ll tell
you quickly if I determined if I should go look for a buyer for it because if you’re new to this everybody what we do
is we look at what other wholesalers other agents have under contract and then we find a buyer quickly and then we
make our assignment fee there we sometimes go off Market but right now um on Market it’s easy especially if it’s
already under contract it’s quick to go get a deal so I’m going to show you show you guys my screen and again with batch
leads I’m not able to show you guys everything because the the YouTube will flag it so I got on my the back here but
let me show you this deal really quick guys and I can look it up here on batch and I’ll actually show you so I get sent
this deal it’s on an email I got and I have buyers in this area in the OR area in the Orlando area so I look at it
quickly all right it looks like a decent home um and you know if I was a flipper
it looks like a a flip that I’d be interested in doing just by looking at the front because it’s not like a weird
layout you can just see from the outside it would be uh pretty normal like neighborhood where there’s probably a
lot of good comparables right because a flipper they’re going to look at something and be like am I dealing with something that’s crazy and it’s like not
like anything else in the neighborhood or is this a cookie cutter home that I can base a lot of my knowledge off of
right so I’ll stop sharing super quick with Bach leads I’ll show you you guys just have to go to property I know it
might be kind of hard to see but right here on the left hand side you go to property you type in the address you press search and that way you can get
more information on the property itself you can click on details it can tell you who owns it um it can tell you bedrooms
bass if there’s any leans any any issues with the property if it’s listed or not
so this is information it can give you and you can go to comparables okay and
you can see quickly on this one that its estimated value on this property it’s about 448 now you don’t always just want
to go off of the estimated value off of whether you’re using Zillow realtor.com batch leads you want to do a little bit
more research into it but that’s usually pretty accurate as of the arv is the estimated value right here and I can
zoom in on that where it says estimated value okay 448
all right so um you just scroll down here and this is has specific filters on
it telling you you know within a mile two miles houses that are you know built within the same time period these are
what they’ve sold for right and it tells you sold it tells you active so quickly I can say Okay batch is saying it’s
around 448 I know it’s in a hot area because if I zoom out this is in the um
winter Winter Park Florida is like a a suburb of the Orlando area heavily
populated so without me having to dive too deep into the data I can say there’s flipper activity there flippers are in
every major Metro if you’re going to work in a little town which I’m going to show you in a little bit that’s where
you got to be a little hesitant if you’re going to work something because it’s like well there might not be be that much investor activity not always
you can still do D in small areas but uh it does help you um if you work in
larger areas if you’re wholesaling right for dispo deals so let’s go back to this deal again I haven’t decided to work yet
I just have seen the information that batch has given me and I’m like okay um this is looking pretty decent so far and
uh let’s go back here so what other information can I have so built in
1977 most flippers right now in the Florida area I know that if something’s above 1970 they’re interested now if
it’s below 1970 they’re like I don’t know there’s there’s usually I got to change the pipes maybe electrical so
usually if you can get a home above 1970 that’s something that’s a good thing that flippers would be like okay I’m interested in that um their the cash
price on here is 310 right so that’s a good deal if it really is worth 440 and
you got a 310 you already know that’s pretty good spread you don’t know what the condition is yet but you can say okay that’s a decent spread I you guys
can already tell I think this is a good deal to work because it’s you know it’s in a good area price point points good
um cookie cutter but let’s take a look at some of the
pictures okay so looking at the house um
bathrooms outdated I think this is one of the rooms the the flooring got taken out not
terrible maybe it put in some new doors bathrooms outdated you’re have to redo the bathrooms if you want like new
complete new bathrooms but this is not a rehab that scares most flippers right
they’re not like oh my gosh I got to get like a giant truck and just take out this trash and maybe I’m going to find
some crazy stuff no they’re like this is a complete uh updating right so for me
it’s like okay this this is something I definitely want to work uh I take I take it a step further and I put it into my
calculator and um let’s see right here and I say what would the numbers look
like if I were to wholesale something like like this not true I don’t think arv is quite 445 I
think it’s more like 420 uh but so let’s just put it 420 and it’s at
310 and this rehab the house just quickly to do the numbers that the house
where did it go uh do we we I I want to find out what the square footage is so let me see
2,300 square feet okay so then I would put 2 300 Square ft right here into um
the side where you put the square footage I think a flip like this would take maybe four to five months you take
it uh you take it down and maybe take like two or three months to flip it and then two months one to two months to
rehab it uh sorry to sell it on the MLS that your flipper that you’re working with I’d say 90% of flippers know an
agent that can list it at Cost or they are agent so they don’t have to pay the full six% so I put at three and let’s
see this I think this is like a basic like basic to medium rehab and the
way that basic and medium rehabs work basic is carpet paint medium is
bathrooms carpet paint and kitchen okay that’s medium and then everything is
everything even down to the studs so when we’re looking at this one I don’t
think this one I think this is like in between a basic and a medium I don’t think it’s like that um it would be that
difficult so I would say maybe a little bit less than 24 but let’s put it in here anyway $24 per square foot so we
would go medium and let’s see uh so if you want to make a wholesale fee of
$155,000 and you get the property for 310 and it’s worth $420 you would uh
have to sell it to them for 325 and The Flipper would make 3,975 bucks so
someone that looks at that would be like not worth it I’m not going to make enough money now if that’s why it all
depends on what your buyers think so if the buyer thinks it’s worth 470 450 like batch was saying then it gets closer um
you know and that’s why you need to talk to your buyers because a lot of the time like this deal according to the numbers
I’m running right now it’s it’s iffy right but still um I
think someone would be interested just because of the fact it’s like a nice nice property like compared to other um
you know other ones that you’re probably looking at in Florida so according to this I would work this
deal just because of the area location obviously the numbers don’t always work but I also don’t always just take what
the wholesaler is saying they want all usually say okay they’re probably a little flexible or my buyer um you know
has different thoughts than I do and maybe the rehab’s a little higher than you know it should be maybe it’s a 40K
rehab um at that so let’s see other okay so now you’re talking once it gets into
the 10% plus that’s when a flipper is like yes I’ll do it um so sometimes you
got to change the numbers you don’t want to fluff the numbers and get too crazy with it um I’m more of a guy that’s like
hey let me uh let me be conservative especially if I’m gonna flip it and then if I’m conservative I’m not flipping
this thing but uh I did want to take you guys Joe and everybody watching David
through this process because for me if it’s a property that I think is Cookie Cutter I work it because cookie cutter
means lots of comparables lots of um lots of other ones to base it off of that flippers can use and when you get
something that’s kind of like so Random where people are like I can’t find any comps for it that’s a red flag because
flippers are like I don’t feel comfortable flipping something that has no comps and just kind of hoping it works out right some flippers will do it
but I I don’t I wouldn’t do it any questions Joe David anybody from uh the
live that made perfect sense to me yeah that was a great that was a great breakdown and I agree sometimes you can
you know be flexible with the numbers but um I I like to be conservative as
well too because you want to think as an investor as well Joe do you have any
questions uh no questions just I I mean I I’m hearing things that rehab costs
have gone up so I think using 1824 and 40 may be uh Ultra conservative um
because especially Florida you’ve got supply chain from coid and you got
supply chain problems sorry about that guys no
worries man sounds like you got a lot of dogs out yeah yeah yeah my my guard dogs my my two German dos I love it I love it
let me let me mute myself here but Joe I’ll respond to you I understand what you’re saying Joe you like that rehabs
costs have gone up so I agree with you so looking at this deal I’m like oh man that’s not as good but because I know
that Florida where we’re in Orlando it’s pretty hot guess what this house uh this property
we reached out to the wholesaler that has it it’s already under contract it’s already sold at this price so for us
it’s like well shoot this I ran the numbers and it kind of made sense
according to the comps I looked at and the numbers but it’s already sold within a couple days of them putting it out so
there are different buyers that look at different situ uh different properties differently right there’s some that have
like materials and they have like they own the crews and they have to keep their Crews busy because if they don’t
then they’re going to lose their crew members so they’ll sometimes take really small margins right there’s some people that do pad splits that will take uh a
property and they’ll split the rooms so if we always look at something as like okay this has to be a flip and it has to
meet this it’s you know that’s obviously works for the type of flipper that wants to make a specific return but in these
hot areas like this we’re showing you where it’s like you know a good area there’s other there’s other um
opportunities and not other opportunities but there’s other strategies that other people are using so that’s why it’s important to know what your buyers are buying and what
buyers want because again if you just looked at it through one lens of like a flip then you’d be like oh no this one
doesn’t really make sense but again you know knowing your area is so important
because this one’s already sold right so anyway if you work in a really hot area
everybody know what your buyers want and if you run it through the lens uh of a flip and you’re like I don’t know I
always say hey if you’re cool with a couple of your buyers you might as well reach out to two or three of them and
just get their Vibe on it get their opinion be like hey you know I see this good one a good property it meets your
criteria where would you be on this one and then if they’re like man I really like this and then you can go back and
forth and say hey look they’re asking for 310 obviously I have to get paid what would you pay and then you can have
that that conversation with them but that’s uh that’s how I would determine quickly and I know you know I went a
little longer cuz I I wanted to go a little further but that’s how I determine if I would work a deal I don’t let price really determine if I’m going
to work a deal all the time because if it’s a wholesale deal that someone has that usually means they have a a fee
inside which it can be anything from ,000 doll to like $70,000 right they can they have uh room
room to move I I got this deal the other day from a wholesaler here in Utah and
he he said hey help me find a buyer for this at 440 and I was like well what do you have an under contract for he’s like
I got it for 370 so he had what is that a $70,000 fee baked in that he had so if I
were just to just not be like oh bro 440 no way you know he ended up accepting an
offer at 385 so he wanted 440 but he accepted 385 and made
15,000 and and it happens time and time again so if you see a good property hot
location where you got buyers don’t always get uh you know whatever the word is dismayed or or like
not interested in working some just because the numbers don’t work immediately especially if it’s a deal on the MLS or another wholesalers has got
it David do you have something you want to say or Joe do you have anything you want to say to
that I I would just double down on how how you said important it is to
understand your buyers and their buy criteria because you really don’t know um sometimes what they could purchase
that they might have materials they may be able they may just want to keep their Crews busy they may be for all you know
wholesaling to a hedge fund and uh so things like that are always happening so
sometimes you don’t want to judge uh too harshly at the yes I got beat out the
other day um by $100,000 okay so I I got a property the
numbers made sense at 310 the I called the seller and he’s like I got someone at 410 I was like that’s not a real
offer they’re going to bounce and he’s like well call you when it closes and and he texted me the day it closes like
it funded it got paid and I was like oh my gosh like who who who bought that so
I I asked the guy for the buyer’s number called him the buyer ended up was a
wholesaler that ended up closing on it was going to fix up the property and get the the tenant out clean it up and then
he was going to sell it to a hedge fund once it was cleaned uh because the hedge fund had offered like 440 not knowing
the current condition that it was in was terrible right so the guy was just going to take it down clean it and get it out
now I think that’s kind of a gamble it’s very risky but he was willing to do it so that’s you know sometimes you get
paid you get that that um that seller got 100K more than most everybody else
was willing to pay because that one dude was willing to get crazy right so you know sometimes they win like that so
that is how everybody sh I know that was that wasn’t that quick but that’s how I determine quickly if it’s if it’s hot
area if it’s got got a lot of investor activity if it’s above 1970 and it’s you know 32 especially if it meets those
like bro that’s hedge funds are wanting that everybody wants that go definitely try and find some buyers now this is
where it gets kind of confusing now if you’re working in Salt Lake City Utah or
uh Orlando in a specific market and someone brings you deal that’s easier to say yes to because that’s your that’s
your Market but if people are bringing deals from Kentucky Oregon places that you’ve never done deals I’ve done deals
all over the country so I know how to find buyers but sometimes people get deals that are outside their markets and
they’re like they think about it right they’re like um maybe it happens all the time just I just got this text message U
from my buddy uh to look at this deal so let me show you guys he said hey man
he’s a window cleaner and he said hey I just cleaned the windows of this property in Pendleton Oregon and uh the
lady the grandma that passed away her granddaughter inherited the property she
I just cleaned the windows she lives in Michigan it’s really um you know I think they want to sell it quick you should
give them a call so I was like I’ll take a quick look right this is a very quick look um I look at the house okay so it’s
outdated and uh that’s pretty much all I know about Pendleton Oregon at the moment I got an outdated house and the
windows are clean but at least I know that there’s motivation involved uh because the the uh the granddaughter
lives in Michigan and she doesn’t um probably want to deal with it so is Pendleton a hot area is that something
that uh you know there’s going to be a lot of invest activity if you guys just look Pendleton Oregon is uh is a pretty
dang small town um so the next thing I’m going to do just very quickly I’m gonna
see if there’s investor activity in in the area okay so I’m G to take this
house uh where was the address does this happen to you guys by
the way like Joe like you get some kind of random and you’re like maybe I should look yeah happened to me today actually
I was just looking at one right before our call and I use the calculator to to help look at it my numbers are way
different but I’m still going to call the agent because you don’t know never know you just want to don’t take too
long on it right but let’s take a look at this three it’s a three three so let’s kind of see if there’s any
uh any other properties that kind of meet the criteria of of
this in the area let’s see three three let’s look at this one so this is
not okay complete not a comp right completely different
um I’m really just looking to see if there’s like any if there’s anything that looks like it’s been like completely flipped like if I can look at
the pictures be like okay there’s obviously a flipper around here uh that
flipped yeah yeah I would say it’s in pretty good shape looks like some of
it’s been flipped that’s that’s 650 let’s take a look at this
flipped let’s see all right
no because if because really like if you can see if there’s houses that are being flipped quite a few of them what you can
do this is like a new build or newer home you can just call the agent that’s
listing the property and you can say hey um you know is your guy looking for more properties to flip I have one that I
think he might be interested in now this one is on Market so You’ definitely like want to negotiate and get it lower um
but guys like for me in the time that I have like it’s not really worth my time to like call agents or look deeper into
this T pedon is super small um I don’t think it’s like a place that I’d probably spent uh too much of my time or
anytime looking for a deal um plus it’s on market now if it was off
Market if it was like you know hey I know this girl she’s thinking about listing it and she hasn’t yet um before
she does she wants to get cash offers obviously I would you know give a call and see what I can do but um yeah on
this one it’s probably a no-o plus $4.49 and you can get this house for 650
which is you know a th000 square feet more I think they’re I think they’re a little high for their asking price just
quickly looking been sitting a while too I didn’t realize that first oh this one
yeah the subject house right 43 days uh yeah mean if you guys want to
have some fun I can call it and we can we can I can talk to agent and we can see what happens but
uh yeah we don’t have to if you guys don’t want to um but yeah that’s quickly
for me determining like okay not worth my time outside of my market doesn’t seem like there’s a lot of investor
activity in the area and I would probably have to Deep dive pretty far to find a cash buyer that would want this
and I’d have to negotiate it probably like 50 at least 50 or $100,000 less than what it’s listed for on the MLS for
a cash Buy in that area to be like hey it’s worth working with you versus me just waiting till uh you know or me just
calling directly right like you you want to be able to provide value especially if you got a deal on the MLS you can’t
just call an investor and say hey investor uh are you interested in this house I haven’t called I haven’t
negotiated haven’t done anything then they’re like well hey bro you haven’t done anything pretty much other than see
a property uh and you haven’t provided any value there’s no reason for me to you know work with you but if you called
an a an investor and said hey I have a property on the street I’ve negotiated it and I got a really good deal I think
it would make you know make sense for you if you’re looking for more flips and they’re like okay well what you got then that’s the value you would provide right
so that’s uh that’s pretty much it guys and and when it comes to appointments
with David on going on appointments it like is it worth going to see a house
right that’s what we talked about for me asking price doesn’t really matter because uh if the house if the seller’s
Mot at if they have a a quick timeline like they want to close within a short amount of time and the condition of the
house needs work those things are more important to me than what they want for the house because what they want for the
house is it doesn’t matter if they’re not going to get that an offer for it
like my aunt had her house for sale for like 850 that’s she believed deep down that’s what it was worth and you know
she listed it for that and she didn’t get 850 she ended up getting less like 790 or something like that but for her
she was totally fine with that after she realized after a lot of time that that’s what the offers were coming in at so
don’t let price always like stop you in your tracks I know a lot of people it does where they’re like oh you know
they’re asking for so much it doesn’t matter I I did a deal on the MLS a couple months ago where they had listed
at 450 and we ended up closing at the deal at 320 okay so
$130,000 less because we found out that that that property lines were weren’t correct we had to re redo the property
lines the house had a lot more issues so sellers can have like you know big thoughts about what they want but as
long as there’s motivation timeline’s quick and uh the condition needs work
work that lead right whether it’s an agent wholesaler or a um off Market
100% let’s see at Joe David any questions I think we got one question one guy from uh the Youtube saying
um yeah so any anything uh from the lot from the uh audience or you
guys I didn’t have a specific question I would just you know um say that that’s
why it’s so important to first be close with your buyers and also I think be honest with yourself on this journey
it’s not like being an employee or an entrepreneur on this journey so you got to be honest about what resources you
have and who you have that you could talk to and how quickly you could move that and it’s like if you don’t like yes
you could maybe go into that market and find that thing and spend a few days and that could be a deal that could closes
and you could make money on it um but you could get lost in things like that
so I think it’s about determining okay I have whatever you have that day like and every day is different like today I have
a different amount of buyers than two weeks ago so with what the projects that are coming to me right now now what can
I feasibly do what are my current resources that I can use where it makes
sense to take time and do this you know because sometimes you can plug and play and it’s worth that to dive in and
sometimes you can’t because you don’t have those current resources and it might take a day or two just to get those resources and sometimes that’s not
the best move so right it time is what time is the most precious thing we have as investors because we get to determine
you know how we use it not only that but like where we deals we work right so if I spend all day in Pendleton Oregon
looking for a buyer for this deal is that the best use of my time when you know I have five or six other deals I
can work in um Orlando probably not um but check this out let me say this
really quick everybody leveraging your network is the next is the best thing to
do when you get deals all over right like if you get opportunities so for example David if I have a deal in Long
Island and I don’t have buyers in Long Island what I would do I would just say hey David you got buyers what do you
think about this deal I’ll give you the lead let’s split the deal 5050 you work it I brought you the lead you you bring the buyer that that way I’m able to
leverage my ability to work my own deals focus on my own market and we can still do deals together same with you Joe like
if you get a deal in Orlando or Texas um you know or even Long Island you could send it to him or I you know we can work
together and you guys can leverage the networks that are there and that’s why um you don’t have to pass up deals but I
wouldn’t work on them like aggressively yourself uh unless like we’re in
Pendleton Oregon like I was showing you and this house someone’s like hey dude the the seller’s willing to take 120 you
know and you’re like okay I might as well just buy that myself and relist it or you know put some work into it if
it’s a no-brainer obviously you know you you guys know that if it’s like 50% of Zillow uh estimate but that’s not how it
always works but speaking of networking check this out guys I’m 1.5 hours from
Pendleton Scotty Washington Texas look at that may I call the agent of course
you can Scotty go ahead if you get the deal Scotty give me 20 bucks how’s that
sound yeah man definitely call so this is the situation Scotty um this my buddy
just cleaned the windows here and they said again that the owner um of the property lives in Michigan so you
already know it’s absentee owner uh that’s as far as much as I know and uh
that’s just that’s the information that I’ve been given but yeah so you could at least go into it knowing that you know
there’s it’s outdated and there’s some um some motivation there thank you you got it okay all right good luck Scotty
that’s awesome see guys isn’t that awesome like the power of networking and all that that’s great perfect SC and
Scotty asked good for you Scotty other people be like I’m just gonna call forget that love them so just know guys
as you do get opportunities sent to you be uh yeah keep me posted Scott cool
yeah just know as you get opportunities sent to you leverage your network stay focused in your area because uh you know
opportunity costs are real you know if you start working something random which a lot of I actually see a wholesaler
that sends out like deals all over the country and I’m like hey you would do so much better if instead of trying to find
deals for properties that are all over the United States and you’re having to find buyers in New Market every day just
focus on one market or two and then you know through time you’re going to be able to have a better you know
relationships in that area move stuff right yeah exactly cool guys well that
was it and uh you know we’ll wrap it up we’re gonna head out of here and if you need anything you can hit up David he’s
in Long Island Joe I’m sure if you got if people want to reach out to you because you work in the Orlando market they can reach out to you um you guys
can reach out to me I mean we’re here to do deals we’re here help you guys succeed so we’ll see you on the next one peace out everybody have a great day yep
