How to find motivated sellers wholesale real estate

Nathan: Alright, AJ, so what we’re going to do today, are you ready brother? We’re going to show people how to find motivated sellers through JV with people. Right?

AJ: Right JV with people

Nathan: Through other wholesalers. Look, I don’t have the time right now I got multiple businesses, I don’t have the time to call sellers nonstop. Okay, I do have some time but not all the time. So I like to leverage other wholesalers who are willing to do the grind the work and then I bring in the buyers, okay. And then we JV 50% Okay, 50-50. But again, if you’re in the club, or you’re in the mentorship, you get 60%. What’s going on, Tony?

Tony: What’s going on, guys?

Nathan: Good to see you, man. Yeah, so today, I’m going to show you guys how to leverage other wholesalers that have deals to JV. Do you do that a lot? Tony, do you? Are you JV with a lot of people now

Tony: I’ve never done a JV deal. I’ve got tons of people calling me. I’m just so busy. I don’t have a lot of time to look into their deals.

Nathan: I got it. Well, you know what I mean, if someone brings you a deal, that’s fire, you know, and you have a buyer right in place for it. It’s like free money, right? That’s easy money. So what we’re going to do, Tony is we’re going to show you how to do it, AJ, my VA has been looking at the deals that gets submitted to me from other wholesalers nationwide and analyzing them. And if they’re a good deal, we’ll call them about it. I use a VA to analyze deals kind of like what I was telling you the other day on the call.

Tony: Yeah.

Nathan: So AJ, let’s talk about this. You had Jacqueline submitted a deal and you said it looked decent. Is that right?

AJ: Right. The property was put in under contract for a very low cost. Although it does need a lot of work. It’s actually noted as a total gut, but looking at the ARV I think it’s a pretty decent deal.

Nathan: Okay, AJ, what’s the address on this bad boy?

AJ: The address for this property is, I send it through chat boss

Nathan: Let’s take a look at it again. AJ, while I’m looking at this, you want to explain to the people that are watching and to Tony, what we’re doing?

AJ: Right well, so what we wanted to make sure is that we run the right numbers for the property and we make sure that we maximize as well as a calculator that we’re using to identify if it would be a good deal for flipper or not right.

Nathan: That’s exactly right. We got to run the comps to make sure that they have a good deal. So what does she have it under contract for?

AJ: She had it under contract for 125

Nathan: 125k. Okay, so what did you have the ARV at when you ran it AJ?

AJ: I actually had a 320 since that was the maximum but I think just to be safe, I went to down to 305.

Nathan: Okay, so let’s take a look. This is a very nice flip. Like I meant the exterior looks great kitchens a little older. It looks great on the outside, but the inside doesn’t look that great. I mean, it looks like some of the rooms they just didn’t bother to flip. But the bathroom looks great. This is old looks like they basically just did a little bit. I’m saying 305 is the the ARV on it. And that’s just a range, right? So we’ll throw this in here. 305. And she has it at 150. Is that right AJ?

AJ: 125 is contract. But she also sent me a message saying additional fees would be up to 150.

Nathan: Okay, got it. So let’s just put 150 We put the square footage in here, about 2000 square feet, and it needs everything. So it’s gonna be about 80k plus. So if I wanted to make 20k on this deal, the flipper would make 21,000. How do I get this down, I either get the seller to accept less I get the ARV up or I lower my budget or I take less of a wholesale fee. I mean, those are your options to see if you can make more money. This is potentially someone would do it for around 10%. But probably not like usually it’s between 10 to 20% is what the flipper wants to make. But with the way the market is right now they want homeruns because they’re not trying to get stuck. Now I could be way off on my ARV this thing could really be worth like 345. And now it’s a good deal. Right? So at least I have a decent idea that this is potentially a good deal, potentially. So AJ, let’s give her a call right now. And let’s talk to her because the reason why I have this I was on a call with Jerry Norton, Tony the other day and this was one of his students. And she was saying that she might have to cancel this and I was like, You know what, maybe maybe I might be able to help her but she said that she had a buyer but they backed out because there were taxes and liens on it that made it more expensive to buy it. I was like maybe I can help you find a buyer that would still pay you what you need. You know we can JV on it.

Nathan: Cool. Cool. All right. Let’s call. Hello. Hey, is this Jacqueline?

Jacqueline: Yes, it is

Nathan: Jacqueline, this is Nathan you have some time to talk? Are you busy?

Jacqueline: Um, hold on one second for me.

Nathan: Yeah, of course. Sounds like she works. she’s working hard.

Jacqueline: Okay I’m back.

Nathan: That’s good. Okay, so let’s talk about this deal. I looked at it and I was curious what did you have the ARV at? What did you believe that this could be flipped for or your buyers believe it could be flipped for?

Jacqueline: We spoke with a couple of Realtors in the area and they are paying anywhere between 300 – 320

Nathan: That’s exactly where I was. I was at like 305

Jacqueline: Really? Yeah, no, I personally only as a buyer, and I know that that doesn’t mean anything. But with the four bedrooms, I think it is less the four bedrooms, 2 1/2 baths, equivalent to what is selling in that area, there’s a couple of properties that have been renovated or semi renovated, that sold for 345. And I know that’s the highest, that I personally, you know, think if I was a buyer, I would pay a little more because the other houses are kind of cookie cutters where this house is not.

Nathan: Yeah, so that’s the kind of the hard thing is people like cookie cutter, they like to be able to buy something that they know a flipper, especially, they want to know if they buy something they can sell it. So when you get something like yours, which is it’s different. It’s like doesn’t have a paved driveway, from what I can see. It’s kind of back there. It’s not cookie cutter, sometimes that’s more of a risk. Right. Okay, I know, I looked at one that just sold in I think a month ago that sold for 345. That one was like really nice cookie cutter. But yeah, I think that would probably sell faster than this one, just because this one’s kind of off off of the road, it’s probably less desirable. So that’s why I’m thinking there’s probably telling you between 300 320. Right? So I put in my numbers, I got 305. There’s no pictures, I don’t think you send any what’s the condition? Is it a complete gut job, like completely needs to get re updated everything?

Jacqueline: Yeah, I do have pictures. But I didn’t have time to send them at the time they filled out the form to complete that job to my understanding.

Nathan: So I put about an ADK rehab, I think you said you have 125. But the liens and taxes are about 25k.

Jacqueline: Well, so I have a contract. And for 102. I was given the contract by you know, was doing a double closed, and I have a contract and health or somebody bought it from me for 125.

Nathan: Someone bought it from you at 125.

Jacqueline: Okay, let me give you all of the numbers. So he owes 92. I believe that with the interest and then I put in a contract for one on two, and it stopped the auction.

Nathan: Okay.

Jacqueline: But then after that, when we asked for a payoff, we got a letter from the bank for 119.

Nathan: Okay.

Jacqueline: And then after that, though, since the attorney’s office had been handling it, they have found some judgments. And so now it is actually yesterday, I got a payoff from her. And she said 127, which he keeps going up,

Nathan: it’s gonna keep going up, the longer you take, because there’s attorney fees that’s accruing more money, right? It’s just like more charging around there. So you’re saying currently, the breakeven for them just even sell is 127. Right?

Jacqueline: Yes.

Nathan: And if you want to JV with me and me get involved, we usually just split the deal. 50/50, the wholesale fee, so you don’t have to work with me. I’m just saying like, if you did want to, I would try and find a buyer for this. And then we would split anything we make over 127. But the thing is, the seller would have to accept just selling the house for 127, they would walk away with nothing, which I’m assuming they want something.

Jacqueline: Yeah. And we were trying to get them something initially. But now that the base is going up so much, I don’t think that is going to happen. So I’ve been talking to him about that I have not given him a definitive answer. But I did tell him that with the judgments and liens something that it basically eaten up, everything that he was going to get

Nathan: Is he willing to just sell it to you for what he owes,

Jacqueline: I am supposed to talk to him to see if he has any interest, I told him at the minimum, maybe he would be able to pay off the judgments and fees by selling the property. So I’m going to talk to him and see if he is just interested in selling and walking away with nothing. At first, we were trying to get him at least $10,000. But we don’t have it.

Nathan: Yeah, and you know what we could do on this one, if we work together as we could potentially give him you know, some money up front, maybe like a grand to move out. And then we could say, hey, well, we can give you five or four. So we’ll give you five total. But we’ll give you one just to be able to move out. And then we can give you for in two years or three years. And we’ll just take over, we’ll pay off, we’ll catch the loan up, we’ll do everything. And we’ll just take over the payments because I’m sure their interest rates pretty low.

Jacqueline: And I’m not sure because I actually am partnering with a realtor. I forgot what the interest rate is. I know we’ve discussed it, but I’m partnering with somebody who was kind of working on the banks and talking to the bank. I received a text message probably just about 30 minutes ago, an hour ago and somebody wanted to go out and see the property. So what I’ll do is I will let you know, the prior. I actually asked him last night as well as he was interested in coming up and so he is supposed to let me know today. I will keep in mind. And also I think I saw something on your website that said if I sign up for something that it would be a 60/40 split.

Nathan: Exactly. Yeah. So I have a club which I think you should join anyway because it’s like super helpful. I could do a weekly call where I answer your questions like basically what we’re doing right now I do this with you in a group, everyone’s kind of It’s a community where we help each other and it’s not so much like a coaching course where you come to me and I’m the only one that talks like it’s more of a community where we meet and we talk and we help each other out on every Tuesday. I send you leads every month you get 1000 Skip trace leads that have said they want to sell you get 10,000 that have already been skip trace and you get you know a bunch of other resources for 99 bucks a month right now, now Friday I am raising it to 297 because my coach told me he’s like hey, it’s way too cheap. So if you want to do that you should join before Friday and then you get a 60/40 If we do this and if we don’t do this we potentially can do deals in the future together.

Jacqueline: Yeah, so what I’ll do is I will keep your offer in mind and you know if something happens and you’re the last man standing I will give you a
call

Nathan: I don’t mind being the last man standing it’s all good but I do want to let you know do not cancel this contract. I know you’re talking about it, don’t do it because you can’t make this work. You just don’t want to wait too long. Why are these fees keep going up and it’s harder to get the deal done.


Jacqueline: So when I say last man standing I don’t mean use the last app I just mean that you know if somebody

Nathan: That’s what I thought you meant.

Jacqueline: You know, I don’t mean you’re the last option that came out wrong. I’m waiting on just a couple more and see what they say

Nathan: okay

Jacqueline: Yeah, I will let you know as soon as I know as soon as I hear from my partner

Nathan: Okay, talk to you soon.

Jacqueline: Have a great day.

Nathan: Thank you you as well.

Nathan: I think it’s a good deal. I mean, I looked at it and I’m sure Richmond is a hot place and this is a desired property an area so she doesn’t need me and I’ll be straight up with Tony I’ll be straight up with you or anyone I work with if they don’t need me I tell them that’s how I work with sellers to is to say hey seller you don’t need me right now your house is in great condition just list this and then they say no, no, I want to I want to sell right now today and then I said Okay, great. Let’s proceed. You always want to go to sales technique called going negative. You want to push people to the no just so they can if they are interested in working with you. They tell you no. Yes, yes, I do want you don’t push them away. They like bring you in