How to Comp a Deal & Then Sell it to a Cash Buyer

Ever felt stuck trying to figure out the right price for a property only to struggle again to sell it to a cash buyer. You’re not alone today on this live call, we’re going to be tackling this challenge head on learn how to master the art of comping deals and then selling them like a pro.

Welcome back investors. I’m Nathan Payne. And in today’s episode, we’re gonna be diving into how you can calm properties like a freaking pro, you want to be a seasoned pro, even though you’re still a noob. That’s totally fine. I’m going to show you exactly how you can be an expert. So in today’s episode, we’re going to be discovering these few things, the keys to accurately comp of real estate deal the strategies to attract and convince buyers to buy your deal. And we’re gonna be going over some real life examples to illustrate and show you how it can be done effectively.

But before we dive in, what’s the biggest challenge you faced in comping or selling a deal? Let me know in the comments. And don’t forget to hit the subscribe button for more practical real estate insights. So let’s dive right into this life. So you all can see exactly how I comp deals quickly and how I sell them to cash buyers ASAP.

Let’s dive right in. I have a deal that Zhi Shan brought me so he found it if you guys can see my screen right here, this is in LA, I think it’s Lafayette. So he found this deal. And he reached out before he had it under contract, he reached out to the hedge fund and he got a pre offer from them. He said, Hey, I’m negotiating with this seller, what would you be willing to offer? So they offered 253 pre off pre inspection offer and he got it for 240.

Okay, does that make sense? So he kind of got a pre offer before even signing the paperwork. And now what I’m doing is we’re going to go look for a buyer for this deal. I’m going to run the numbers really quick and make sure it makes sense. And we’re going to look for a buyer using batch leads because he has a buyer but we don’t want to just leave it up to one hedge fund saying yes or no or coming back and coming in lower. We want to be able to have more buyers Okay, so this is good for everyone that’s watching this because you guys can see say, Okay, I have a deal whether I got from another wholesaler I got it from my own marketing, whatever. What do I do now? I don’t have a buyer.

Okay, I didn’t do the the beginning part, Nate said, well, let’s let me show you how to do this first thing that I do, David and Shawn is I gotta make sure that it’s actually a deal. I don’t want to have Zhi Shan say, Hey, man, I got this deal. He had the hedge fund check. So I feel pretty confident. But I first want to check. So it’s fine.

The deal. It’s obviously notes in the criteria where you have buyers or it’s a good area, and then it’s analyze it. This is a hard money hard money lender gave him this calculator, and I built on it over the years to make it you know, everything that I needed to do. So let’s analyze this deal. If you look back, I know it’s kind of hard to see, I can’t show you guys on YouTube batch leads, because it will like kick us out because of the information it shows.

But I’m seeing that there’s a lot of houses that have sold and that are for sale in this area around the 400 to 450 range. Okay, so if I wanted to I could click on any of these properties right here. And I can take a look at the picture and see the condition that the house is in to see if it was a flip or not. Okay, so if the house is in a flipped like if it looks like it’s been flipped, I’m going to say okay, that’s a good ARV even if hasn’t sold yet. I’m gonna say okay, that’s a good indicator.

So let’s go here, let’s just be conservative and say 415. Okay, is the ARV that’s what the House will sell for. If I fix it up. Now he negotiated the deal to 240. Okay, this house needs a lot of work. So he got it for 240. If we wholesale to a cash buyer, they’re going to get hard money and like 99% of investors get hard money.

So you have 12% Two points. That’s what you gotta pay the hard money lender for borrowing money about $2,000 a month, you bring 15% down, you hold this house for about six months, because you gotta fix it up might take four, it might take two months to sell it on the MLS, and then you have your closing costs, right. So this house, I think it’s probably going to need because I’ve ran the numbers probably going to need about $60,000 of work.

That’s what the hedge fund said, they’re like yo six about 60k. And then we are going to wholesale this deal to them for about what I think they said they would buy it about 253. So that would mean if we got to 240, we’d make 13,000 on the wholesale fee. So that’s a good deal, right? That’s a 16% return if the house is worth 415.

Now, if it’s not worth 415, it’s worth less than it’s not as good of a deal. And if it’s worth more, it’s a great deal. So you’re looking at this and you’re like that’s a good deal, right, I would definitely do this. And that’s how I determine if something is worth my time to work and find a buyer for right if it gets down to like 10%. Like if I’m over here at I get it to 60 and it’s like less now we’re getting kind of iffy because buyers they want to make sure they want to be at least above 10% return on their money, right? We get right here we say okay, cool. We got we analyze the deal.

Now it’s time for me to look because it’s worth my time. Now what happens if we do this deal and we run the numbers and it’s like, they we agree to 300,000 then we would see oh dang, this is not a good deal. This is not worth my time to work. I need to go back and renegotiate with the seller or the wholesaler or the agent before I do some work because there’s really no point because there’s such a big difference in the spread, right? So for if you guys run your numbers and you see that there’s that big of a difference.

And, again, go back and renegotiate, don’t go waste your time. So now that we have analyzed the deal to make sure it’s worth it, what I do is on batch leads, right. And you can do this on Zillow too if you don’t have batch, but I recommend getting batch you can go to properties in the area that are currently listed for sale that look like they’ve been flipped.

And then you can go and call the real estate agent that is listing that or you can skip trace the LLC, you can go to Open corporates, find out who owns it and and skip trace, find the information or the owner and you can call them and say, Hey, I got a property right around the corner. Are you looking to buy more in that area? Right? Simple as that. So we have these properties that are listed for sale around here.

So I can just click on one and that one looks like it’s been flipped. I wish we could get a little closer. Let me see if I can bring this thing a little closer. Okay, there you go. Boom, boom, looks like it’s got like a little casita in the back. Okay, thanks property. It’s cool. It’s one of those colonial style. I like that style. So the house has been flipped, right? So what do I do now, I would go to the information on the MLS right here, and I would contact the real estate agent or I would contact the buyer, right,

I would look who bought it and then skip trace the LLC, and it says that the owner type is company owned, it’s to a real estate consulting, that’s LLC. So again, I could do the legwork and find out who bought it and call them directly or I can just go find the agent that listed it and the agents name is aprea M Brown, and they work at Keller Williams. So let’s let’s go ahead, let’s do the whole process. So aprea Browne, Keller Williams, see if we can get their information.

Okay, that’s the phone number. So I’m going to call her and we’re going to see if she answers or they answer, and we’re going to see if they they’re looking for any more deals. Let’s call let’s see if, let’s see if Apria answers and the thing guys is a lot of times they don’t answer the first call. That’s why I call multiple. Hi, is this Apria? Hi Apria how’re you doing? My name is Nathan. How’s it going today? calling about your property that you have listed on 150 Inglewood drive. Is that still listed and available? Okay. Well, I wanted to ask you a question. I’m actually from Salt Lake City, Utah.

I’m an investor and I come across properties, sometimes in Atlanta areas and work in a couple different markets. And one property doesn’t work for me, I look to wholesale it. I was wondering if you’ve ever worked with wholesalers. And if this buyer that you’re representing is looking for their next flip? Yeah, of course. Well, I guess the reason I’m calling you. Oh, I’m sorry. Go ahead. I didn’t mean to interrupt you. Oh, I was just saying that. The reason I’m calling you is because I see that you work in that area where I have a property under contract right now. And I was wondering if you’d be interested in working with me to bring it to some of your buyers and I can pay you a commission?

If you helped me, you know, sell it. Okay. It definitely is just a numbers game. What do you usually negotiate or work out? If with wholesalers, when you bring a buyer to the property they have? Like, what’s your fee? Okay. No, I get that. Yeah, if you were to list this thing on the market, I totally get it 3% Usually what we pay is usually like if you were to show this to one of your buyers and you bring them to the deal and he wants to buy it we usually pay like anywhere from where from like two to two to $5,000 Depending on the amount of work that it takes.

But is it would that be okay? If we were able to do something like that, if you’re bringing a buyer to this deal that he wants? He wants to flip it Okay, all right. Apria well, what’s the best way to get you this information about this deal? Is it to text you to email you Okay, all right. Well, also I’m just curious because I don’t you know, I’d like to set the expectations what do you think you’d be able to get back to me if I send it to you today on you know, whether your buyer wants it or not? Yeah, all right. April Thank you.

And by the way, just let you know this is a good deal. It was a I already have a hedge fund that wants to buy it so I think if your buyer is looking for more flips in the area, I think it would be a good one for him especially I’m looking at the one he did it looks really good. Alright, alright a prayer you have a good day and we’ll hopefully we can get do deal together. Yep, but that’s it. What do you guys think? All right, we couldn’t hear we couldn’t hear but we can’t hear you.

You couldn’t hear her? Yeah, I was trying to give you the signal but uh oh my gosh I’m so sorry guys is tricky with the CRM or the computer properly. I was a great call she she was like yeah, that’s fine. You can bring me a buyer I wish you guys get it heard it because it was a good call. But that’s it guys. If I do this with enough properties around where I have, you know, talk to enough agents or even just call the guy myself.

We’re gonna get a lot of good buyers and information on whether I have the price at the good, good price if this house just sucks and I just didn’t know it because I’m not familiar with Lafayette but that’s kind of like the digging you got to do and I promise you guys if you do enough of these every day, you’re going to be able to sell deals because this is this is how it’s done. You either email blasts, which half the time people don’t respond anymore because deals suck On individually say hey,

I need you to look at this when can you get back to me? And she said I can get back to you later today. So you want to get that commitment so you’re not waiting like a week. You know? What do you think of that video? Leave a comment so I know exactly what you thought whether it was good whether it’s bad, I want to hear your feedback because I love engaging with you and I will respond see on the next video