[Deal Finding Friday] Finding deals for my cash buyer!!

So everybody, what is the Privy call? Well, it’s deal finding Friday where we actually go and make offers using privy and showing you guys how to get it done. Alright, so if you haven’t been watching Nathan Valley or me, we’ve done a 30 day challenge, you need to watch the Dave in value because he’s crushing it using privy. And today, I actually made an offer on a property in Atlanta where I was doing my challenge. It was pending, they accepted another offer. So I was like, Okay, well, whatever. But I made a really good relationship with the agent. So the agent just texted me this morning and said, Hey, man, that deal fell through, are you still interested? So that is why you make offers you make offers to make relationships mainly. So people can just call you and say, Hey, that deal fell through Do you want it?

So we’re going to start off the call with me calling this agent making the offer on this property, then I’m going to show you how if you have a buyer using the Payneless Wholesaling method, you find a buyer, you find their criteria, and then you look for a deal for them. But that’s, that’s what we’re gonna do today. So everyone tune in, let’s freakin take some action. So this is the property I made an offer on because the hedge fund that I’m working with in Atlanta, they just want the 1% rule. So for all of you that don’t know what the 1% rule is, all the 1% rule is is can it rent for 1% of the purchase price each month, okay, so we go to my trusty calculator, it does wholesaling does 1% Rule does bird, Novation, amortization and creative financing flip, and it does a client net sheet. So if you’re talking to a seller, you can actually put the numbers in, and it will tell them what they’re going to walk away with. So instead of them thinking, going and talking to a bunch of different people like hey, look, this is what you’re gonna get, depending on no matter if you go cash, if you flip, if you listed as is, or if I do innovation, and it does create it to you. I’m just fixing it. That’s kind of how I was able to figure out this deal is it’s listed for 245. Okay, that’s the purchase price, and it can rent currently in the area I just looked for about 2000. So right now, it’s not quite the 1% rule. It’s about point eight, two, right? If it was the 1% rule, it would rent for 2450. Right? So I need to get this offer at I need to make an offer around 200,000. Right, if I want to get it the 1% rule. Now the 1% rule does not work nationwide.

For all of you that are watching me in Nathan Valley, what we teach is it’s called the Payneless Wholesaling method, you could call it reverse wholesaling, you call working backwards, whatever you want to do, but I call it Payneless Wholesaling, because I think it’s the easiest way to get started as a real estate investor, if you have an idea of what people will buy, it’s easier to go get deals. And again, if you’ve tried to find a deal for one of your buyers, and they don’t want it well at least you have a good like I guess idea of what people want in that area since you already had a buyer there. Right. As we looked over here in the discord channel, if we go to the buyers, let’s see the deal finders and you go the Buy Box criteria. You taught Byron Ogden, Ogden, Utah, three bedrooms plus south the 27th Street Max budget of 500,000 would like a basement east of Washington Boulevard. So what I can do here is I can go and I can click on deals, right, I can find fix and flips. Now this these people might want to fix and flip, right, they might want to buy and hold. But this is going to find some deals, you can change the criteria to whatever you want, right? You can go to filter, and you can say, hey, look, they told me they want a max of 500,000. They want at least three bedrooms. They do actually yeah, they want a basement. And let’s see timeline. I guess it doesn’t matter bill, they didn’t care. They didn’t care about all this.

So let’s see if there’s any opportunities here that we can get them a good deal. Let’s see they wanted south of 27th Street. So previous founders, three opportunities of homes under 500,000 square feet, sorry, 500,000 is the budget that we can go make offers on this look at this one. 330 is what it’s currently listed for and they bought theirs at 209. So that’s what kind of pretty says previous like, hey, just look at see what they bought it for and make that offer right I run my numbers a little bit different than for me. So let’s I’d like to put in my my Flip Calculator. So let’s see this. Let’s assume that it’s worth 425 Okay flipped because I don’t think it’s valid, one’s not selling it for 49. If I were to make the offer at 330, like it’s currently listed for in this thing, Nathan I’m in this 2000 square feet, if I’m gonna get this thing fully flipped. This is a it’s not a like a teardown but it’s going to need everything of a medium rehab on 2000 2352 square feet. So you put the square footage in here 2300 could be two, you put medium so it’s about a $56,000 rehab. So what this is saying to me is if this rehab took me four months and I listed it on the MLS I’m just gonna say five months because it probably would take a little longer if it takes me five months to actually get it fixed up and sold and I sell for 425 and I get it for 330 my flippers net margin target usually shouldn’t be between 10 and 20% is actually 3% at this purchase price right not gonna not gonna work we need to get it in the green. So what price would I have to offer to get it in the green? I’d have to offer Around 250. Right? So let’s let’s make it just right at 15%, maybe 258 58, right. And I want to wholesale it right? So I want to make some money. So let’s say I want to make $15,000. So I would just subtract what I need to make 243. Okay, so if I, if I wholesale it to someone for 258, I’ll make 15,000. Right? Because you’re just adding your wholesale fee, this is the price you need to get at. So I’m going to call her I’m going to make an offer to 43. If she denies it, well, that’s fine, because we also have this buyer who potentially might be interested that Nate has, if I can get it even remotely lower than 330 This family might be like, Yeah, I’ll freakin I’ll buy it at 305. Right? Right.

We’d have to have a conversation with Nate right? The buyer, the buyer, the broker, right? Con about Hi, this is Laurie. Gosh, to these agents never pick up their phones, but I don’t know how people pay them to represent them. Hi, this is Laurie. I can’t come on. Laurie, you try. I’m about to call the seller and say Yo, your agent does answer the phone. Hey, Laurie. I’m calling about the listing on 838 36. East. Are you free for a call? I can call you back in about an hour. If that works. That’s Laurie say Yeah, sure. That sounds good. Sounds good. Okay, so unfortunately, you guys aren’t going to get to hear me talk about Laura talk to Lori because she’s going to call me back in about an hour. But it’s all good. So anybody that’s watching in the on the live Any questions so far, because all we’re doing is reverse engineering. We have a buyer, we’re looking for a property for them. We’re making moves, we got someone say right here, Molokai, I really need to learn 1% rule and start using it for higher offers. So Malikai, super easy, 1% rule, all you do is you say is a monthly rent 1% of the purchase price, then that is a 12% rental yield for the year and then 1% rule. So for example, in this property, it’s really hard to hit the 1% rule in Utah, because things are overpriced. So this one is 325. There’s no way this thing rents out 1000 square feet for 3000 to 250 bucks. Right? So 1% rule does not work in the United States. I’m sorry, in Utah doesn’t work in Utah. It doesn’t really work in the Midwest in the West Coast, right? California, Oregon, Arizona. It’s mainly like this southern states. And then if you’re Midwest, you need like 12% or 20%. Nate Didn’t you say sometimes you’d even get 20%? And yeah, you wouldn’t? People wouldn’t want it.

Yeah, dude. Yeah, Midwest was great. So I was always in West Michigan. And I mean, dude, like sometimes you’d have like a 2x rent, like, on average, like, that’s what guys want it in a lot of these kinds of smaller markets. And I’m not even like Warzone neighborhoods, where I’m like, Dude, the rent is like, like two times. Sorry, Nate. Sorry to cut you off.

Let me answer this real quick. Yeah. Hello.

Hey, we were just texted about one of my properties.

Yeah. Is this is your dad’s mark. Is that right? Yes. Okay, cool. So he you, I’m assuming you guys, you said you’re the brother, the brother buyers or something like that? Is that what you guys are? Our business name is brother by house. There it is. Okay. flipping properties, we’ll just have our deadlifts. So that’s I just wanted to make sure so you guys are flipper. So you flip this, this is obviously flip this one, right? Yeah. Okay. So I, this is kind of the situation I’m in because I’m a flipper, too, I have a property I’m trying to buy from a seller and they need a place to move into and they kind of told me what they want. And it falls right into this area. So I have a buyer that would is interested, but I was just calling this you know, see what deal we could get for them. That’s why I kind of made you the offer because obviously if they got to 285 It’d be a great deal for them. And I’d be able to buy their house and flip it but you guys flipped it. So you have you have a specific margin you have to hit so I just thought I’d be quick about and just be like what’s the lowest you would take? Where would it make sense for you and I could get them to move into non for sure. What was your name? My name is Nathan, Nathan Payne.

Oh, okay. Yeah, I see all your posts in the investor groups, I think

Yeah, that’s me, man. I’m all over. I’m all over that, that that Facebook group.

I guess to break it down what’s the most you would pay instead of the least we would.

So it’s interesting because I have to, I’m gonna buy it and then sell it to them so I’d probably have to do a double close. So what’s the least I guess? That’s a great question. Um, if you want to know what’s the most I can do and I want to know what’s the least you can do what I said to 85 because then I’d probably sell to him for like 300,000 but 25 doesn’t work for you guys. Like what could you do like 300,000 and I could you know, sell to them probably for like 310

I’m not sure so technically we we refined this so we own it. So we’re right now we’re just debating on if we’re keeping as a rental or if we you know we threw it on the markets to see if somebody would pay what you want. Just so you know, it appraised About six months ago for 325. Okay, if you if you could hit 309 and then sell it to whatever your buyers you want, we would do that. Okay. 309 mates, I guess that would be if if your cash and didn’t have an agent or yourself representing you?

Right? Right, right. So you’re just saying we’d like no realtor fees 309 out the door, you’re saying cash too, because I’m trying to think if there’s a way that we can get them to buy it, and I just get like a marketing fear. I don’t know, I’m not even involved. And maybe they can just buy straight from you. And I’ll have to figure out how that works. But 309 That’s kind of the best you guys are able to do without commissions and fees.

Yeah, yeah, we would. We’ll come around closing cost without price. But yeah, so it’d be 309. No, without a buyer’s agent.

Okay. Yeah, let me let me call let me let me find out, because I think it’s just best to be transparent. That’s that’s kind of what I’m doing. They need to move out into a new place so I can buy their home and flip it. So by the way, I’m curious what what are rents even going for in this area? Because you guys, you said that you’re potentially going to just rent it?

Yeah. So have you seen have you looked at the pictures of the property? Yeah, it looks good. Looks good. Looks like you did a good job. Yeah.

Have you seen the configuration of it? As much as I can see from the pictures that are online, it looks like kind of like a mobile home style, but

it’s sort of like a triplex. So there’s three bedrooms, three baths, and each bedroom has an exterior entrance and their own mini split. So and then a communal kitchen. So it’s a it’s a single family home, but you can rent it legally here in Ogden by the room.

So that’s what your you guys were planning on doing? Yeah.

So plan was to rent it to three or so college kids or I mean, or single family? Whoever wants to do it. But yeah, so it’d be it’d be a good rental to have. That’s kind of how it’s laid out.

What What would the rents be for each each sounds like each individual room and bathroom? What would you what do you think you could get for each each room

Depends on if you’re including utilities or not, but if you’re not including utilities, I bet you could get what we were shooting to get was anywhere between 700 On the low end. 850 on the high end.

Okay. So 850, about 800 between that range per door or per room?

I would say. That’s not bad

. Yeah. Cool. Well, let’s see that.

Let’s see the return on that. So if I were to buy that just keep it as a rental at three on pay. So it’s 9% rental yield. Okay, that’s not bad for Utah. Well, I appreciate it. Let me get back to you. Because a lot of this is just, it’s up to them if they want to, they want to move in. And if I can get it, if it makes sense. How do you guys get most of your deals? Because I see that you actually it looks like we have like four listed right now.

Yeah, so we do direct seller, everything. So we’ve been wholesaling and flipping for four years or so now and sweet. Yeah, that’s how we find the majority of our stuff.

Do you mainly focus in Ogden?

No, we’re mainly just in northern Utah. north of Salt Lake, we do stuff in Salt Lake, but a lot of it is just north of Salt Lake and Weaver County and just out of state stuff as well.

Do you have anything right now? Because I so I coach, you guys have probably seen a lot of my stuff, like you said on the Facebook, but I have one of my students is a flipper. And he’s he just finished his flip in Ogden. He’s looking for another one. So I was you know, might as well ask you, do you have anything coming in the pipeline up there?

I’m not in Ogden. We have stuff up in Idaho, but we’re local. Okay.

Well, can you guys throw me on your list? And if I either I buy it, or I have a student that would want to buy it would that? Would that be cool? I don’t know how you guys send out your deals.

Yeah, we just we just blast them out. Okay. There’s less so cool.

Well, yeah, add me on there. If you can. I’ll text you my email. And then I’d get my blast, too. And yeah, I’ll get back to you about this. Let me let me see if they’d be interested. Thanks, guys. Appreciate it. Cool. Transparency. These guys are flippers they’re wholesalers. They they’ve seen me my stuff. So they’re, they’re cool. That’s a good combo. Right?

So the funny thing is, like, even that conversation, like that wouldn’t have happened via text on the phone. He still came down 15 grand. Yeah, you know what I mean? Like so that’s, that’s kind of the power of like, when you have conversations with people, you know, on the phone or in person versus just text your text, he wouldn’t he wouldn’t have bothered with that back and forth. He would just be like, Nah, man, like, forget it, you know, just let me know your highest number. And if it works, I’ll let you know. But on the phone, you can be a bit more tactful you can have those conversations you can ask a little bit about you know, what’s he got going on? Learn his situation, you know, and because you can always work with him, you know, right now you’re calling him about this house. I’m trying to get a deal. But for him, it’s like dude, you could always like sell him a deal down the road. So rather than just texting a really low offer, and like making him upset and kind of hurting that relationship on said you hop on the phone, you’re still able to kind of make a low offer without insult To him, and you just created a new relationship that you could sell him a deal down the road to, or he could seek at hand one off to you. If he’s like, Hey, this property isn’t a good fit for me. Does this work for you? And you’re like, yeah,

exactly. All right, Nate, you got anything else left to say, Man.

I think that is it. I think you said it all. Hope everybody be safe. Have a good weekend. And guys, go go talk to some sellers. Go talk some agents with Thomson buyers, get some deals, go sell some meals, and I want to hear all about it.