Mastering Real Estate Dispositions: Ultimate Guide!

Uncover the ultimate guide to real estate dispositions! Learn valuable strategies for identifying profitable opportunities, negotiating deals, and optimizing selling techniques. Master the entire disposition process through real-world examples and expert insights. Elevate your real estate career today!

What is up everybody we are live with investor drive this is an investor’s drive live call where I show you guys how to do this business how to use batch how to get things done instead of theory and thinking about me telling you guys like what you can do let’s actually do it. Let me show you how to do it

I got a deal that I need to dispo All right, and right now I got Henry we got Jeannie What’s up Jeannie got Zhi Shan, so Zhi Shan for all those don’t know him, he’s one of our leads managers and offer on homes, and my wholesaling company, Genie and Henry in the mentorship. So what I’m doing guys is I think the best way to show people how to do stuff instead of just talk about it is to show them and give them opportunities to learn.

So right now, I have a deal that I need to dispo and I am giving Henry and genie and honestly anybody in my mentorship, the opportunity to dispo with me and whatever fee I’m gonna get from this deal. We’re just gonna split. All right. So I’m excited. This is actually a JV deal. I actually have multiple deals, I need this. But right now, we just got a deal submitted from Kansas City from one of my boys, Scott, and he said, Hey, Nate, can you help me dispose this? So I said, Of course I can help you dispel it. And now I am using the batch call to show you guys live, how I’m teaching people how to do it step by step in this process of how to find a deal nationwide how to dispo deal nationwide. Now Jeannie Henry and Zhi Shan, have you ever sold or found a buyer for a deal nationwide? before? Have you ever disputed deal nationwide?

No. Okay, awesome. Some of you have experienced with that. So a lot of people don’t know how to do deals nationwide, right? It’s pretty simple. You just find a buyer in the market that you’re looking at. So we’re actually going to take this from the whole from the beginning process of getting the leads submitted. So you can look at this if you have a wholesaling company and your acquisitions team that gets the deal under contract. This is the process that you would do at this point. What happened with this lead is this is a deal that we got submitted to JV with us and I’ll show you how the process works. So this lead came into our system.

Now it’s time for us to take it through the dispo process and find a buyer. Hopefully, we can find a buyer fairly quickly. And let’s get started. So everybody knows that the process that I teach is called the Payneless Wholesaling process, right, it’s finding your buyers first. But whenever I get a deal submitted to me, it’s usually in an area that I don’t have a ton of buyers and I’m like super tight with so I have to go through the normal process of finding a buyer from start to finish. Okay, but normally, I wouldn’t have to do this whole process because I already have my buyers in place, hence the Payneless Wholesaling method. But this one is one that got sent to us from Kansas City, Missouri. I don’t have a ton of buyers there, I do have a buyer that I’m going to email that bought our last deal in the area. I think it’ll be quick.

But again, I wanted to show you guys how to do this. So step one of getting started in this business is get your mind right, we already passed that pick your market, this is a new market so it doesn’t really apply network and find cash buyers because this is a new area, we have to find buyers not the painful way we have to go and find somebody for a brand new deal which is it’s whatever it happens sometimes you analyze the deal. We’re going to do that you find your leads, then you negotiate you make offers, then you dispose Step A is how to market your deal out if you don’t have a buyer already in place. This is an overview everyone. So Jeanne Henry Zhi Shan, this is an overview, this is not in depth. This is how to get rid of a deal. You can email, you can text blast your list, you can call your buyers, Facebook posts, reach out to local agents, JV with other wholesalers JV with me.

And here’s the dispositions checklist that you guys can use and check out it kind of gives you each step right. It’s a checklist. What I’m going to do right now is I’m going to show you guys step by step how we’re going to go find a buyer for this deal. All right, first thing we do Zhi Shan This is the first thing you did is the lead came to us from sell your deal.io. Someone came in here and said my deals already under contract, they clicked it, they filled out the form, and the form came into our CRM. And here it is Scott submitted the lead the information. Alright, so the first thing we have to do is we have to find out if we have the essential information to be able to dispo it. Okay. Do you have the address, seller name, seller, phone number, and email, we need to know how we can access the property? Is it a lockbox? Are we gonna have to schedule a time with the person we’re wholesaling it with? Do they have a signed AV contract? Is it legit?

Do they have something? Are they just daisy chaining and they don’t have the contract and we’re going to waste our time. I only want to work with people that have the contract. Do we understand the property description? Do we have pictures and all the documents uploaded in our CRM? Does that make sense everybody if you’re going to do a deal, you need the right information in the beginning before you can even get started. So next step is I don’t want to dispel any deal if it’s not a deal. If it’s not worth my time. I don’t want to waste my time. So now what I’m doing is I’m looking at the form and looking at the information

And then we got so he has the estimated rehab budget at 50,000. He has the house under contract for 340. And the after repair value of the property is 525. So just from those numbers, it sounds like a deal but let’s take a look. Alright so first thing you have to do in analyzing a deal is you have to find some comps. Alright, so you can use bash leads to find some comps. I love using bash and Zillow back and forth because it’s easy to you know, check on both sources. So this is the property at the moment.

So it says that the value is around 432. Now that’s not always super accurate. So you’d go to comparables and you would check and the reason why it said that is because it just has a wide range, right. Alright, so let’s take a look at this. It looks like partially updated at least the floors it looks like a flip that maybe they just didn’t want to finish the flooring, the kitchen, the bathrooms, Okay, looks like you just need to come in here and paint this bad boy, it looks like it has some issues with some damage here. Bathroom needs to be worked on. Alright, so this thing does still need to be flipped. It’s not terrible, but I don’t see anything that’s telling me that this thing is a super good deal. Let’s try and look here and see what Zillow says.

Okay, so let’s look at this. This is a four three Rs is a five, two, this is about the same square footage. This is a good flip. would you guys say? Yeah, that looks like a very nice one. Yeah. Yeah, looks like a brand new building for me. Very nice. So this has been on the market for 30 days. So if it’s been on the market for 30 days, I know stuff is taking a little bit longer to sell. But I would say if this is taking 30 days, maybe it’s in it’s not under contract yet. Maybe it’s a little high. Take a look at this. This one is under contract for 25. Okay, it’s bigger than ours nicer than ours. But look, this is a great comp. Okay, so it’s under contract, we can assume that it’s under contract around 425. Right. And look, in order for our home to get to this style, we’d have to spend probably 30 to 50k Because look, it’s got the brand new bathrooms, the kitchen looks nice. Got the new countertops in the home that we have not bad, right, but we’re gonna have to paint the whole thing probably finished painting the kitchen counters.

This is a very interesting one. Okay, so here’s it’s got the backsplash. So that’s good. It’s going to need paint no matter what. All right, and the bathrooms, it’s probably going to need a new bathroom to updating. So from looking around at what’s selling, I think 425 is like pushing it to be the ARV the fastest way I could find out is I could call this agent who has this house under contract that’s taking back offers, I could say, Hey, I have a flip that I’m potentially thinking about doing. What do you think something similar like that in that condition would sell for? So what I would do is I would just call this agent and get some information right from him since he just had a property similar to ours for 56 days.

All right. Okay. So now that we’ve analyzed the deal, somewhat, we had to find comparables to understand the after repair value, which we have the after repair value at around 425 430 Until I talked to Jake, so this guy said it’s already been sold. So he actually texted me, I’m just going to tell him that I have a property similar to that one that I have under contract that I plan on flipping and I wanted to ask you if I can sell it for around 520 K? All right, he read it. So let’s see. So I threw out the number 520. I don’t think 520 works, but I’m putting it high. So I think he can just like give me a solid reaction. If you think he’s like, oh, yeah, you can do that or no. All right, well wait for that. jabroni to respond. Now we’re gonna have to calculate the offer for what we can buy the property for, or in this sense where JV is we got to see what we could dispose. So let’s take it to the calculator.

et’s check out what the calculators got to say. So we put the ARV at 425 340 is the purchase price, we’re gonna have to flip this thing. So we’re putting ourselves in the position of the flipper, he’s gonna get hard money 99% of time, put money down, it’s probably going to be a four month hold time just because it doesn’t look like it needs that much work 1% on the potential buyers closing costs, and Scott told us it was going to be about 50k rehab. Yeah, if I want to make a $15,000 wholesale fee, this says that the flipper would be at $31,858 that they would lose.

Okay, so what I would do Zhi Shan at this moment in our CRM is we would message we would email or text or call Scott, we just say, hey, ran the numbers, the numbers don’t make sense. According to our flip evaluation or calculator, a flipper is going to lose. And you can send this to someone in an email. So they get the screenshot and they can see exactly what numbers we ran. Now look, we’re using an expert right now I’m texting an expert, he says does seem kind of high on the ARV. Have you done any MLS comps on it? So I’m actually just going to send this agent the address of the property and we’ll see what he says. So let’s move forward on the next step of the process. So we just calculated it, we know that it’s not low enough. So if this is a JV deal, which it is we liked the deal, we would send them a JV contract, you would just fill out the contract. That’s how you do it. Here’s the

The agreement now this deal that we have, again, I don’t think it’s a deal for a flipper, you then you’re trying to sell to a landlord buyer. And then it’s not ready because look, the bathroom is jacked up. So this has to be sold to a flipper. And Scott is given us until the 11th to find somebody, so I’m out on this one. But that is how you analyze a deal. And that’s the thing with you guys. If you have a company, you have your acquisition guys that are excited, they just trying to get the deal under contract, they send it to the dispo team, the dispo team needs to analyze and be like, Hey, this is actually a piece of trash. But since you guys Jeannie and Henry, you work by yourselves, you would just have to run these numbers, and you can get stuff under contract and try if you want.

I think that’s a waste of time. That’s why I tell you the Payneless Wholesaling method where you have buyers, and you can just ask them what they would pay. And luckily, we have a buyer in this area that I can just email really quick and just say, hey, we sold your last property. These are two that we have under contract, would you be interested if he’s not interested, but I’m out on this.

So the agent is saying was it listed on the market when you spoke with the seller? Oh, do my man’s calling. Hello? Hey, Nathan. Yeah, how you doing? Hey, what’s going on, buddy? Hey, I appreciate you giving me a call. I was just kind of looking at potentially flipping this house and looks like my numbers are off. Yeah, well, that’s why I was like, it’d be probably a lot easier if I just give you a call back. You can call me right in the middle of something. That’s why I didn’t answer your good. I know, you probably got a lot going on.

But yeah, no, I think I was when I was running comps I was doing within the last year. So it was giving me higher numbers and what it looks like things are going for the area right now. We had a little trouble selling mine there on board. And I think a lot of it was just timing. So you probably have a better advantage than I do because we’re coming up into the more hot season. Right. So, but I would say you’re probably still looking at somewhere between 415 and 425. Man. Yeah. Yeah. And I want to be safe too, because I have it under contract at 340. Right. So if I can sell for 430 and I put, let’s say 50k into it. I’m losing 15k Like after everything’s said and done, like hard money and everything else.

Yeah, I would, I would definitely try and renegotiate that purchase price if you still want to try and take it down for sure. 100% Well, let me ask you this. So I look to flip and I’m out of Utah. But you know, I’m trying to get into other you know, other markets that are a little bit less expensive than the Salt Lake market. Sure, if I am able to renegotiate this one and I still don’t feel comfortable. Do you by chance have any buyers that might be interested if I can get it low enough that I could, you know, assign it to you or you bring the buyer and I pay you a commission? Yeah, I mean, I’m sure we can figure something out, you know, we would be interested in in it ourselves.

But we would have to get it for quite a bit lower than 340. You know what I mean? What would make sense for you? Maybe if I can get it negotiated low enough. I can just you know, wholesale to you guys. Sure. Honestly, man, I would say we would have to probably be at 300 is the most we could pay for it. Okay, cool, man. Send me whatever you got. Take a look at it. I really appreciate your time. I’m glad we made this connection. So we’ll definitely do some business together. I appreciate it. Wow. Whoa, we’re doing deals guys. That’s how it’s done later on, buddy.