What is going on everyone today is the Payneless Wholesaling, hour, the investor drive live, whatever you want to call today, what we’re going to be going over is how to sell wholesale a deal assignment deal that literally you shouldn’t be even be able to do.
Right now I’m doing a deal with one of my students, Henry, where he’s brought me a deal. It looked good, the seller was motivated, but she wanted retail. And I was like, I just don’t think we can get it done. We have an assignment where you got people that were signing into, it’s gonna either be a six to $10,000 deal. And this deal makes absolutely no sense for a wholesale deal.
If you were just to give it to someone just because there’s not a ton of equity in it. We’re basically selling it for retail. But because we have the right terms, because we know how to structure these things. We’re able to get it done. Now look, I’m currently in my Airbnb, I’m on vacation right now. But that is the beautiful thing about wholesaling and do real estate investing is you can do it anywhere. I’m on my laptop, I’m with my family on spring break, and I’m in the Airbnb room. They’re out there having fun eating and I said, Look, I got a batch call committed. And I love batch and I love doing my job, but I’m on vacation. But I said, Hey, I gotta take an hour to make, you know, six to $10,000. I didn’t say that I gotta make take an hour to make that.
But I basically got to get this done. But I can do it from anywhere. I can do it from my Airbnb. I’m in St. George Utah right now. I just went to Zions national park my family yesterday. So I’m going to take a little bit time to show you guys exactly what I have to do to get this deal done. It’s an amazing thing I have to do with this job is have a laptop, and you know batch leads and some software and you can get it done in a cell phone.
That’s it. And an amazing job where you can just literally go do deals anywhere in the United States on vacation. You can do it virtually anywhere. By the way, this deal is in Florida. I’ve never been to buyers, Florida never even stepped in that area. I don’t know what it looks like. I don’t know anything about it. But I’m doing this deal virtually in Florida and the seller is in California.
Do I need to see what the house looks like? Do I need to know that much about it? Do I like need to physically be there not really, I just need a couple certain steps, a couple certain things to be able to get it done. And that’s what I’m going to show you today. Henry is one of my students, I’m going to kind of explain the process that got us to this point for everyone here and what you need to do and what you need to learn in order to get a seller finance deal. Now look, I’m not gonna sit here and say, I’m the guru that I know everything about seller finance, I don’t.
And that’s the cool thing about having the right people in your corner. I have a title company that I can call and ask questions to Christina Moser do titles awesome. I basically call her say, hey, Christina, what do I need to get done? What kind of paperwork? And that’s the thing like so don’t feel you have to be the expert to get deals done. You can leverage other people’s expertise to find out what you need to get done. So Henry, I’m bringing Henry on, let’s say what’s up to Henry, one of my favorite students. Henry, What’s up, brother?
Let’s have Nate Tim
tell me what’s your thoughts have been on this deal? Has it been kind of crazy for you? Like, have you nap in all this?
Yeah, it’s a long conversation. And then a Kiowa communique on this deal is a little bit complicated in the beginning, right?
Yep. So basically, Henry, what did you do on this deal? You brought me someone that wanted to sell right it kind of explain how this happened.
So I meet the seller, and then they modify to sell on the property. So I bring the deal to Nathan and then need to negotiate with them and then lock this property under contract and then I have made to my buyer. And today we couldn’t really have who buyer interested on this deal.
That’s right, Henry.
So Henry told me this deal didn’t really make sense for a wholesale like just to make a lowball cash offer deal, right? So this is what happened, everybody, this seller would have the house listed on the MLS, and she wasn’t able to sell it. But she’s motivated, she wants to sell. So I talked to her. And I said, Hey, look, if I were to buy this thing, all cash, I would be around like 210 or 200,000 of what you owe, that’s kind of what she owes, right? And she’s like, look, no, I want 300,000. And that’s retail that might even be above retail.
And I said, look, the only way I can get you that price is if you give me the terms, right. If I’m able to take over your payment, if I’m able to put no money down and I can pay you out in the future. That’s the only way we can do it. And Henry, do you remember what she said? She said yeah, she’s like, okay, yeah, I’ll take terms so what we did in this situation is we said okay, I can give you retail nothing down. And the reason why I was able to do this Henry is because it Airbnb in that area. It’s about $3,000 a month, right? That you can make plus around there or if it’s short term rental, it’s like 2500 and her mortgage payment at the time that we knew is about 1400 bucks a month.
And you know, P itI, principal taxes, insurance interest, it was about 1700s So you could still cashflow pretty good. Sounds like Okay, someone would be able to take on this property cashflow, and then in two years, they’re hoping when that balloon payment is due that is worth more than 300,000, right? So they’re cash flowing, they get an investment property with pretty much no money into it. And you know, there’s investors interested. And there’s also people that would be willing to live there that have bad credit, that would be willing to do it as well. So that was kind of our goal. So we got it signed, two years is very short on a balloon payment, usually want five, but I said, Okay, let’s try it. So two years.
So we looked around, Henry has a buyer, he’s an investor out of Canada that is interested, and he wants to buy some more properties in the United States. And he’s willing to do at the moment, 10 down, and you know, make those payments and then balloon it out two years, I have an investor from Salt Lake City that I’m tight with, that’s willing to do five to $6,000, depending on you know, we structure it. And that’s kind of where we’re at that point. Now. Look, I’m totally willing to make six to $10,000 on something that was not a deal at all right, Henry, this is not a wholesale deal. Traditionally, you couldn’t get it done right. And the only way this makes sense is if you know, you’re able to do it creatively.
So I just got off the phone with my title company in Utah, my title lady, I said, Hey, can you help me out? This is a Florida deal, but can you help me draft up the paperwork, and she’s like, of course, I can do that. So she told me exactly what we need. So I’m gonna tell you guys, what you need in that paperwork. And I know this is a batch call. But this is kind of what happens is you use this information from batch, you mark it to this specific area, you get a seller, and you need to be able to know how to navigate these offers that you make you make a lowball you make a low cash offer. If it isn’t accepted, then you go to the next option, we say, Look, I know you want retail, the only way I can get you retail is if we list this property, or if we buy on terms. So I never give up. I don’t just say okay, let me follow up with you. And check. I say, Okay, there’s some other options we can explore. So that’s what we’re doing with this. So don’t be throwing away your leads of people that want to sell but they want retail, because you can get it done like we’re doing on this one.
Now, what’s the next step? I just talked to Noel Henry, the seller, and I’m saying, Okay, we’re good to go. We just need to discuss a couple things with you. So this is kind of what happened. When we first talked to the seller, we believe she told us that the PI ti of her property of the payment was about $1,300, right, including principal interest, taxes and insurance. All right, so we have to at least cover that or pay higher than that to get this deal done. So I said, Okay, we can do 4% interest, 300,000 Because that’s what you want. And our payment would be like 1432. So would have covered all that.
So I just looked at her mortgage payments, actually 1722 pi TI. So what I believed we were gonna have to pay on that is actually we’re gonna have to pay a little bit higher again, where we’re at right now is it’s time to assign this to our buyer. I have a buyer that’s willing to pay five to $6,000 and he’s ready to go. He’s like, Yeah, just send me the paperwork. Now Noel, the seller we’re working with, we just have to maybe sign another addendum because today is the end of our, we’re supposed to close, we’re gonna sign another denim. I’m gonna put in a little bit more verbiage in the paperwork so we can get it done.
But other than that, we’re pretty much done at this point. We just have to send all this to the title and get it wrapped up and bam. That’s it, brother. I know it’s a lot. So anyway, there was a comment that came through I want to answer from amfa trees and Z she says how do I pull subject to lists from batch leads. So the thing is, was subject to is there are certain lists that you can pull that are lower equity because usually subject to is when people don’t have a lot of equity in their property.
o you can pull lists of people who have just purchased properties, you know, that might have different indicators like absentee owner maybe like you know, tax delinquent evictions, you can do other things. But the way I do it is I just offered to everyone that I talked to if I make them a low offer on any list, I pull absentee owner high equity, any of the lists and batch that have motivated sellers, you want to be able to pitch creative terms to anybody that doesn’t accept your initial low offer so I don’t think there’s a specific list unique personally for me that you need to target for subject to or seller finance, I just think you need to be able to know how to pitch it.
All right. And for anybody else that’s gonna watch this in the future guys. This is it. This is a full blown like navigation of like showing you exactly how to do this. And sometimes there’s areas and places you go that you’re new and you got to figure it out. And that’s about taking action. That’s how you get started. You take action, and you learn as you go.
Hey, Henry, thanks, man. I appreciate that. Well, let’s get paid.
Let’s get paid on this one. Let’s get it done.
I’ll talk to you later.
I’ll keep you in the loop and for everybody that’s been watching the Payneless Wholesaling hour this is it. This is how you get it done. There’s nothing to it, but just do it. Thanks for watching.
