How to call for sale by owner house? [PART 2]

In this video, we’re going to follow up on a call for my man Christian’s lead, a for sale by owner house. The last time seller did not answered so we left a message. He decided to take action after seeing a property up for sale by owner immediately next to his residence. We’re going to show you how to call the seller and what the next thing you can do is. Check out this video to learn more.

Hi. Is this Jerry? Yes. Hey, Jerry. My name is Nathan. And I just was wondering do you have? Do you still have about 10 minutes to chat? Yes. Okay, great. Um, yeah. So I was calling about your property. I actually, one of my friends lives right over there. And he said, Hey, you saw that for sale by owner sign. So he he said he sent me the your number to give you a call. But I’m just kind of have a couple questions for you about the property. Is that Is that okay?

Sure. I don’t know the answer. But

it’s all right. So I’m an investor, I usually look to like flip homes. But this one looks like we will be purchasing it and you’re selling it for the land value. Okay. And I was kind of curious, because usually, when I talk to people, they’re their first. I guess their first strategy is to like listed with a real estate agent to see if they can get the most and I noticed you’re selling it for sale by owner. So I was curious if like you’ve explored listing it and you’re just not interested in that, or, or what made you

tired. I retired as an agent about six months ago. Oh, wow. Okay,

so you’re like that? Explain you’re like that? Explain it.

Yeah. And my husband’s an agent, my son’s an agent. So we have multiple agents in the family. But my mother is the one who owns the property. She doesn’t want to pay any real estate fees if she can help it. And honestly, I think I can manage it. I’ve sold commercial properties, let me know, I’m not a current agent. But I know what to do.

No, awesome. Yeah. Cuz I was kind of curious. Because usually, obviously, you know, as an agent you put on on MLS, more eyes will see it. But are you are you mainly looking for, you know, a cash buyer, someone that will like, you know, not have an agent that represents them? And not? Or you’re sort of looking directly to work with a cash buyer?

No, I’d actually prefer if the buyer has an agent, because it all works better if they have an agent. And you know, we’re willing to pay some. I mean, I’m, you know, willing to pay some kind of Bac to the agent. You know, again, this is, you know, trying to talk my mother into selling it. She’s not necessarily willing to pay a lot, but she needs to so, yeah. Anyway,

yeah, I’m not represented. I don’t have an agent. But if we needed to get one involved for you to feel more comfortable, that’d be no problem. But you know, I wouldn’t, there wouldn’t be any

advice. I’m assuming as an investor, you know, what you’re doing? And you’re somewhat sophisticated. And you know, I would be more than I’d be fine with that. But I mean, I’ve had, I’ve probably had 60 inquiries or

more. Oh, my gosh, just from that sign, why most

of them are people like, you know, how much is your house? And when you tell them, I said, if we’re not selling the house? Yeah, no, I

get that that you said that the house is a teardown, so I wouldn’t be looking to buy it. I’m looking at. Well, you said it’s commercially zoned. Right. So I would

try to cannot get a residential permit from the city property. So even I would have to tell people what, even if you wanted to, you know, fix up the house. You can’t get a residential permit? It’s,

it’s commercial. Yeah, no, definitely the value is definitely in the land. So I was kind of you’re an agent. I was looking at some comps online. I’m not an agent, but I was just looking at what I had access to. Do you. Have? You said you wanted 800,000? And it’s almost an acre? Yeah. Just curious. Where did you run comparables on it to kind of get that? Or was that just a price that your mom had in mind? I was curious how you came up with the

comp? There’s another commercial line in town and bolted against that one at the same price?

Yeah, cuz I’ve looked at there was like a point four, six, there’s a couple residential lots, but they go, it seems like they go for a lot less. I think I saw one that was like 146,000. Just for like, a fancy adventure a lot. So is that is that true? As well, from what you’ve seen is, when it’s commercially zoned, the value is a lot higher? Oh, yeah, of course. Okay. Well, have you called the city to find out like any any information, more information on like, what it would take to build on their what they’re allowed allowing to build?

Now? I don’t know. I mean, more, a couple years ago, one of the city manager, city managers, good friend of mine, and I haven’t talked to him in a while. I mean, I’m assuming that you know, what’s next door like? Well, you’re not from the area and next door to the property. There’s an all the dollar. So you’ve got a retail building with Arcane, and I’m sure the city would love this same sort of thing.

Yeah, yeah. I live in Sandy. I’ve been to Santa Quinn a couple times. But it’s just, it was nice, because my friend saw that. And we’re always looking for properties that aren’t on them last because, you know, it’s usually able to negotiate without the fees involved.

And I, you know, I’m going to tell you, I mean, I tell people all the time if you’re interested, make an offer, and you never know what a buyer will accept and I can’t tell you that either. I mean, I I know what my mom says she’d like to get but if somebody actually made a reasonable realistic offer, you know, I mean, 300,000 is not going to cut it but you know, the law might just consider it so

yeah, yeah. Is there like a timeline that you’d like to make a decision by is like you’re the first person that can get you an offer that makes sense you’re willing to pull the trigger. Do you want to wait a little bit? Just kind of curious? No, we’re not. We’re not. We have a timeline. Okay. All right. So the unreasonable price. Yeah. Yeah. That’s

what it is. Because, you know, I mean, we were in a rush, it’d be probably 200,000. learners to be blunt about it, of course.

Yeah. And like you said, once that offer comes across, you know, it makes sense. And everyone feels good about it. You know, you could make a decision today if it was the right offer, right?

Well, no. But it won’t be today, because we have an 85 year old woman who was on the edge of dementia. So that it would be you know, I think it would be relatively soon after the offers made, I would, if anybody makes an offer, I would say like, there’s no point in putting deadlines. Like if they used a regular rep CD, there’s no point because you know, she’s gonna use her. She’s gonna ignore your deadline and decide when she wants.

Wow, yeah, a contract with no deadline. That’s, you know, so let me ask you this.

I mean, I’ve sold commercial properties, and it’s fairly common for them not to have, you know, to have pretty open ended deadlines, because it takes so long the present. Yeah, and so it’s stupid. You know, commercial properties. Essentially, it’s a mustard, Russian, but it’s stupid to put deadlines and when, when there’s usually a lot of due diligence that has to go online, and sometimes financing takes longer. And so rather than constantly rewriting it

your eye, and I think you already said in the text, that you’re not looking to finance the property, you just want to you just want to be out of it cashed out or alone.

She’s 85. Claire’s, she doesn’t doesn’t need to finance anything.

Okay. So to kind of tell me, you have a lot of experience, I’ve been doing this for a while, what would you what would be the best case scenario for you? Would you want someone to come up with an offer, go under contract, don’t really worry about putting a deadline, let someone do their due diligence and talk to the city before they close? Or what’s your expectation?

So what I would anticipate best scenario is, first of all, the person who wants it needs to talk to the city before they make the offer, exterminating felt, you know, they can do what they want to do or see what the limitations are failing, then I would say, when I say no deadlines, I’m going to save for this kind of property, I think it ought to be closing within 60 days, I think 60 days due diligence for this commercial properties. Great. We don’t do that, you know, we don’t want to partner with anybody. I don’t want to wait anybody else in order to make an offer? And then, you know, once they do, they can be offered go for it. And, you know, pretty straightforward, clean offer. I’m gonna say so.

Right. Yeah. Because with the due diligence, I’m trying to think if I were to call the city and get a, you know, let ask them the questions and figure out if we’re able to build and do what we wanted to, and we went under contract, the 60 day due diligence would just be to kind of do the the odds and ends that need to happen before. You know, I guess we closed right.

And if we close sooner at the rate, but you know, I would say yeah, and the city, the city knows, I mean, they’re very aware of the city’s city offices right across the street. So they’re very aware of this property, and what not to get the dilapidated house versus three tore down and have something else built so. So you know, I think, depending who you talk to, you’ll find that they’ve been got some pretty good ideas already of what they’re willing to allow and can give you information pretty quickly. So

Well, what I what I just very transparent with how I work. So this I’m I’m mainly work. When I buy properties, I mainly look at like apartment complexes, and, you know, to rehab property. So I’m kind of newer to the land and developing, but I do have a couple business partners that, that do that. So my goal would be to reach out to them and see if we could partner on this opportunity. So I guess my question for you is, are Is there any buddy that like, I need to like, do I need to act quicker then because I would hate to like go through the process of like reaching out trying to figure out, you know, call the city work with people, and then I get done. And then you’re like, Oh, I already signed. It’s under contract with someone else. So I just want to waste my time, you know, or your time.

So we have no offers. I’ve had lots of inquiries. I’m going to say I’m going to say I’ve probably had two out of the 60 inquiries two that I’d say were from people who actually knew what they were doing. And obviously it’s not uncommon star or LoopNet. It’s not going to know as so you know, we’re not necessarily going to reach the people who do know what they’re doing. Yeah. But this I mean, the other reason because I could put it out, I mean, like I say, you know, I’m not activated, but I have agents who are all around me and my synth house. So we could put it on MLS pretty quickly. This, this option is working for my mom, because she doesn’t necessarily want to sell it. So we’re kind of giving her a chance to, you know, kind of get the idea and kind of think about it and, and, you know, realize that, okay, I can kind of get used to so I guess there’s centennial, this is that means that, you know, I don’t have a rent on it. It’s just people who drive by or hear about it or spread the word. Right. So, you know, so no, you don’t have any issues at this point. I don’t have anybody making offers any of this was two or three series inquiries. You know, they were kind of off. Well, let me think about it. And that’s fine. You know, take your time. Think about it all you want. So, you know, I’m gonna, you know, no, you don’t have to rush.

Okay, gotcha. changes, I

can certainly let you know on say, y’all y’all ever but which, you know, I love your state, you’re new to this. But this is what I found as an agent and also an investor in real estate. About the time I tell you, no one’s interested, suddenly, six offers, it sat for six months with nothing. So you know, that whole thing about, you know, once it’s out there in the atmosphere, I totally believe that

no, that’s true. In my experience, like what I focus on me like mainly is, if I don’t know how to do something, I usually I have a pretty good exclusive network through like going through a lot of coaching programs and knowing like going to meet up so I know who does land. So my goal, if if that’d be okay with you is to reach out to them see, who’d be open to partner with me on this. And then, you know, try to take it down and go through that due diligence process, even before we need to sign paperwork. But But again, I don’t I don’t want to do that, if that wasn’t a good option for you, like, you know, for me to reach out to the people that I work with.

Know you have, I’m gonna say take the time you need to because you know, when we sell this deal, I want it to go to somebody who does understand what we do something, it’s a great piece of property. understands what they have and make the best are good. So no, take the time you need. There’s nothing like our mark before you

invest. Yeah, yeah, for sure. And if you could just get keep me in the loop. If someone does come and you’re like, hey, we’re thinking about accepting this. And then I kind of know, I need to hurry a little bit. Because, again, what what I focus on is mainly, you know, single family and apartments, but this would be an easy situation. I wholesale a lot. I don’t know if you’re not familiar with that term? Oh, absolutely. Yeah, yeah. So that if that’s ever something that you’d be interested in as well, where I could, you know, just reach out to my whole network right now, I wouldn’t plan on blasting this out, because I don’t have the contract. But if, if you were ever interested, I could send it all to all the buyers that I know, in Utah, we could get bids and see what they’re willing to offer. But I don’t know if that’s something that you’re interested in at the moment.

I’m flexible, we’re flexible, right?

Yeah. Would that be something that it because that’s a lot of the time, what I do is I tell the seller, like, hey, look, this is where my price would be. But I know, I know that there’s a lot of buyers that can pay more than me, if I if we can sign an option to purchase agreement, which allows me to just reach out to my network, like legally and say, Hey, this is a property, what would everyone pay for it? And then I take those offers, and then I present them to you. And then you know, if you like any of them, you can accept them, then we can proceed. But that’s that’s what I do a lot of time when my cash offers and accepted?

Well, you know, and I would say, I’m sure we consider it. Just have to have it whatever we do have to make sure it’s simple enough and clear enough for me to explain to my mother so she’ll understand what we’re doing and not get, you know, frightened off or worried. One thing we’re talking about here, but now if I was that

it would I don’t think it would frighten or at all because basically all we do is we have the option to purchase agreement says hey, you know, if we’re able to find a price at this offer, then we can proceed. If the seller if you feel you know, like you’re ready to go. And most of the time I’ll be honest, it probably will probably come in a lot lower than what you’re wanting but at least we would have like some concrete offers and then you know we can make the decision from there.

Yeah, and then do you take a commission or something for that? Are you an agent or No,

I have the cash I have the buyers pay my my fee so it doesn’t come out of what you have to pay. So for example, if it hypothetically if you want 800,000 And they offered 820. Then they would give me you know a portion of that they would pay my my feet. It’s called a wholesale They paid my signup fee, so it doesn’t come out of what you get.

Okay, that makes sense. I’ve Okay, that’s great. Yeah, yeah, I’ve seen away. So that’s

yeah, that works for you. And the good thing about an option to purchase agreement is like it’s not binding, like if you, if you don’t want to sell it, like, there’s no problem not going to make you but at least we’ll have some options. So all I’ll need is just your email. And I can, if you could text that to me, and then I’d have to send it, I’ll sign it. And I’ll have I don’t know, are you able to sign? Or would your mom need to sign it?

If she owns it, she’d have to say, though, is timeframe because I know typically, these kinds of deals. So, you know, we wouldn’t want it tied up for very long, because I know.

How long could you give me? You feel comfortable?

I mean, now, I’m attaching my mom and my siblings.

Usually, typically, we, within 14 days, I’m able to send it out to my network and say, Hey, what would you pay for this? And no, so if 14 days would be fine with you, that would give enough people?

Yeah, I was thinking like, you know, we’re not into 12 months or eight months, you know, no, no, no, no. Three months would be, you know, somewhat reasonable. But, yeah, that’s fine for, like, you know, I don’t know, two months or something, that’d be fine. Give us time to do your thing.

Yeah, yeah. So 14 days would just give me enough time to get the interest in the offers coming in, and then to do the due diligence. And then once we go with a specific offer, then they would want their specific like, you know, 30 to 60 days. But this is just to gauge interest and and see who’s who’s serious without you having to pay commissions or even put it on, you know, any of those.

Yeah, I’ll send you my email address and you say still have to run this past my six months, we kind of try to manage your affairs.

Okay. Yeah. And it’s

fairly simple. With a five year old. It’s like dealing with a large two year old.

Now I’ve actually I’ve dealt with a lot of situations where you know, the kids are helping navigate the situation. So I’m patient understand the situation, you got to navigate it tactfully.

It’s true. It’s kind of a pain. So in your investments, do you have any other state investments? Do you follow up on those at all? Or do any of those? I’m thinking like, specifically, Wyoming or Idaho?

I do. Yeah. So I actually invest nationwide. So I have a deal right now in Colorado, that it’s a it’s a 12 Plex, I come across quite a bit. So if you if you’re a buyer, or anyone in your family is a buyer, and we can always connect on that way to

where’s the 12th place located?

It’s called Salina, Colorado, it’s outside of Pueblo. Are you familiar? Yeah. So it’s, uh, this one came from siren, a lot of online marketing. This one came from our pay per click ad campaigns, and it’s a seller that wants to sell is 12 Plex. But we’re in the middle of negotiating like the price and everything and then I was gonna wholesale it like get get it for a certain price. And then, you know, assign it to someone and, you know, make a little bit of a fee. But is are you interested potentially in that that would be

sophisticated enough to actually calculate it a cap rate? Can I do it?

I have the Yeah, I have the performance and the cap rate, I haven’t all that information. So if you are interested, I can also email to you as well. The seller is open to financing the property. So if you if you’re interested in picking up something in that area with terms, we could work something out. We’d probably be cash. Yeah, terms can get a little can get a little shaky sometimes.

Well, it depends. But I mean, we have we have we have some cash we need to do something with and we actually pulled out all of our investments out of Utah and went to other states because a we could get

much better pricing cash flow way better. Oh, yeah.

Much, much better. But we also live you know, we’re flaming gorgeous.

I do yeah. Yeah, well, we

live there which means we’re right on the Wyoming into Idaho and Utah, Colorado.

That’s amazing. I love that so so what I can do is if you kind of give me a Buy Box or an idea of where you’re looking to invest i i coach, I teach people how to get started in wholesaling and real estate investing and I also look for my own apartment opportunities, but I want Utah and you’re saying you want out of Utah so this this might work good. I come across a lot of opportunities.

Yeah, now we put Although Well, funny story, so I had, you know, my husband had a couple he had some real specialty clients that were investors who all had money and like annuities or mutual funds, and they pretty much pulled the money market funds out all those and invested in multi units or in rentals with his help, and there’s like, wow, was this ever a good thing to do? So yeah, one of those in one of those clients have his head and 18 units in Payson, that he was going to sell us and we, and we figured, well, okay, we’ll pull out the funds that we have and put it into that as our final retirement move. And it was gonna be like, 1,000,004. And the cap rate was like, there was a lot of room there because the bill, you know, the building was in. It could be that

you said, Sorry, you said it was an 18 unit for 1.5. Yeah, that’s pretty good. I just did one, it was an eight unit and Springville. For one 1.1. So, yeah,

well was like five years ago.

Okay. Okay, gotcha. Yeah, Mountain View, probably worth a lot more, right.

Probably, what happened was my client when my husband was trying to sell another building for the same buyer, and he had, or the same guy, the same seller, and he had a buyer come up and say, you know, I’m sort of in that builder, but what it really wants to 18 flexes across the street, which my husband said, well, amazingly, they’re owned by the same guy. And he decided it’d be better off for him to services by selling both units, which left us kind of an alert with a bunch of money and know where to invest it. So we moved out here, we’re wandering around that domain and comes to 12 clicks. Wow. But we ended up purchasing for $380,000.

And I can’t believe that 12 Flex for that. That’s amazing.

Right now we’ve put 100,000 into it. But still, and the cap rate right now is probably see, it’s probably that night. Well, because I got it. First of all, it’s probably done nine or 10.

That’s amazing. Yeah, yeah, that doesn’t, that doesn’t exist, where we’re, you know, in Salt Lake, you

know, the thing is, is we run across this all the time, that’s me about buying in places like Wyoming since I now live in a rural country, it’s you just have to be aware of what’s available. In terms of services, like, you know, I have, I have buildings in Canberra, Wyoming, which is a lovely little town, and there’s one repair guy, you know, so he’s my first, you know, my, my go to guy, but that’s the hard thing about being in rural areas, is how do you get them serviced? And so, you know, there are a lot of opportunities, but I’m not going to jump on them. Because I’m thinking, I’m not going to drive six hours to personally fix it. Yeah. And if I couldn’t find a plumber, then forget it.

Well, you know, I’m really glad I made this contact, because like I was telling you, I, I’m doing a lot of apartment complex marketing. And one of my, my family members actually, like he, he has a website where he generates a lot of traffic for apartment complexes. So we’re getting leads from, you know, all over and a lot of rural places as well. So, you know, well, maybe I can send you ones that look good. And I can send you the breakdown to the when we underwrite them. And if you like it, or maybe you know, your husband knows a couple people that need to place their money somewhere, maybe we can work together.

Yeah, that’s okay. I’ll send you my email address. Okay,

so what we’ll do, just to recap, is I’ll send you if you can send me your mom’s name, I will send you an email with the option to purchase agreement just for 14 days. So I can send this out to my buyers that buy land in Utah. And then I would, you know, present those offers and what come in to you and say, do any of these look good? And if they do, we can move forward? If not, no worries. And I can also send you that 12 Plex to look at.

Okay, this will not be a restaurant because my mother lives in Springville to air miles away. She’s not going to sign anything online. So, okay, so I’m anticipating being back in Springville for maybe in two weeks, and then I’ll be able to town for like, two months off and on. So I will do it. I can’t get the sign. But this is probably going to be a slow burn. I’ll be honest, and just because of logistics, if nothing else.

Yeah, yeah, no, I understand that. Well, if it’s going to be that long, and I’m not really do putting this online or doing anything like on the MLS or like on Zillow or anything. Do you even care if we signed some of that? Do you mind if I just reach out and send some emails and some texts out to see if people would be interested or would that be okay?

Yes, if they can, if you come up with something, you know, then we’ll figure out how to get the contract signed.

Yeah. Cuz the purpose of the option to purchase agreement is just so we’re on the same page, but verbally if you’re good and I’m good, you know, not not worried about it.

Verbally we’re good about that. Send me your

email. and I will send you the 12 Plex info and you know, I’ll put you down as a buyer that if you just tell me Idaho, Wyoming what parts as I get leads from those areas, I can send them your way as well. Okay, sounds great. Is Jerry right? Yes. All right. Thank you Jerry talk to you soon. Thank you better bing bada boom guys just transparent we’re gonna wholesale the House who’s got a buyer who wants land in Santa Quinn, Utah. Let’s do it easy to be transparent be honest let’s get these


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