All right, we are live right now with Blaine and Melissa, what is going on?
Yeah. Hey, how’s it going, man?
It’s going good. It’s going good. Hey, we are live. This is the Payneless Wholesaling podcast where our goal is to help people learn how to do real estate the payneless way to avoid the mistakes that hopefully they can listen and learn from from us from people that come on here. And avoid, I guess the pain that comes from doing things the hard way, right. So that’s why so we’ll stop. So you guys, I originally met you through Jerry Norton’s program. Is that right?
That’s right. Yeah. It’s fantastic. Yeah.
Yeah. And you were telling me you went to Puerto Rico. When did you get back, by the way? Because I know you. Jerry does his little Puerto Rico event.
Let’s see. This was in October.
Yeah. It was like the day before Halloween. We got back. Yeah.
Back just before Halloween.
All right. In that deal we did together. So that everybody that’s watching this, we actually were able to do a deal together. It was your first deal. Is that correct? Yes.
was our first deal. And we were working on that while we were in Puerto Rico at the same time, right. Yeah.
So close after Puerto Rico then Right? Yes. Okay. Well, I wanted to have you on here because there’s a lot of people that watch the payments, wholesaling podcasts that maybe they don’t maybe they’re they’re not sure how to get it done. They’re maybe afraid. So I wanted to have you on here to ask you about your experience. How was it for a brand new investor? First deal getting getting this done? Was it nerve racking? Was it hard?
Kinda? Yeah, I would definitely say that as well. It was a big roller coaster as well. Um, I will say a lot of the time. I mean, especially, you know, since it’s your first deal, I you feel a little bit like you’re a fraud. Yeah, I mean, you’re doing the things that that are okay. You’re not like trying to fraud anybody? Like you’re doing everything right. But you just because you don’t know what you don’t know. You feel like okay, maybe maybe I might be doing something wrong.
It’s hard to be confident. That’s right. Is that the word? Like it’s hard to be talking on the phone and all that. Exactly. That’s. Yeah, I think that’s exactly what new real estate investors face is. They’re like, oh, shoot, you know, did I say this? Right. Did I make the right offer? Am I making the right moves? So is that kind of some of the feelings that you were facing when you were making these offers?
Oh, yeah. Like, am I offering like, not enough? Am I going way too low? Because a lot of the comps that we were doing, I was like, oh, man, that’s nobody’s gonna accept that offer.
Yeah. So so let’s talk about this deal. So is that tell me how you found it? And I’ll tell you how I got connected with you too. So yeah, tell me kind of the process of this deal.
So Melissa actually found it. Yeah,
I just I found it on Redfin, actually, in American Horse. So I ran some comps on it gave it to Blaine to look at and he called and made an offer, and the offer was accepted.
We were like, Whoa, we were at our numbers. I were like, okay, so they they were asking for I think it was around 420 for the house, and the ARV that we ran on it. We were like, Oh, well, this looks like it’s probably about 525. So we were like, Oh, well, you know what, we’ll we’ll offer 380 on it. And they accepted it. And we’re like, Oh, sweet. Excellent.
Right. That’s right. Did he represent you the agent represent you? Is that how you got it set up? Actually, no.
We So Jerry Norton Norton does kind of a double dip thing. I so I called him up and I said, Listen, we were will be with a, we were like, how about if you represent us? This was the first thing we operate. We’re like, Hey, listen, well, how about if you just represent both sides of the deal? You can get the the Commission on both sides. And it’s like, well, I don’t necessarily feel comfortable trying to navigate the neutral waters on that. Yeah. And I said, Well, how about if you just send me a thing that just says that we’re unrepresented? And you can keep the other side of the commission on that? So he was he was ecstatic about that.
So what happened is he did he get both sides of the commission, but he just didn’t represent you and you just fill that out yourself?
Yeah, exactly. Um, now that said, I am also I did get my real estate license as well. So I did no, no the paperwork, but I did say listen, you can we will we’ll be unrepresented. But I’ll have you Why don’t you do all the paperwork for us? Okay. So, so he acts They filled out all the stuff and like, just send it over to us to sign on everything. Yeah, he wasn’t technically telling us whether or not we were getting a good deal or not.
Right, that makes sense. kind of tell me your process once you got it under contract, because that’s when we met. We got involved later, but kind of telling me what what happened until we met. Um, let’s see.
So we don’t have a huge whole seller list to fire. Right. Yeah, buyers list to pick from. So we went into the face. I went into the Facebook page, the Jerry Norton Facebook page and mentioned it the deal we had. And then Jerry, I think tagged you, right? Yeah, he, we just reached out to one another.
Yeah, that easy, right. That was like that, right. So I don’t know if you know about my story with this deal. But what happened was, with this deal, it was listed at 450. And it just got listed. And one of my mentorship students actually brought me this deal. And he says, Hey, this looks like it needs to be rehab. Let’s make an offer. Can you help me make an offer on it? So I said, Okay, so I ran the ARV, I had the ARV like 500,000 Right when I did it like a five, four ad 500,000. So I called in it needed a lot of work, right, as an older home is like, down 2000 square feet. Maybe even more go there
was there was a crack in the foundation as well. I didn’t realize it when we made the offer just up until this day,
I didn’t know that. So I called I ran my numbers. And I was very, I’m very conservative, like I go high on my estimate my rehab budget just to be safe. And I made an offer at 325. Right. So it was listed at 450. And I said, Hey, I’ll give you 325. And the agent laughed at me, right? The guy that you’re working with you like He’s like, he’s like I got way better offers than that. But I had made an offer like after he got listed maybe a couple days, right. So I was I was brand new. So I made the offer. He laughed and I was like, okay, whatever. And I kind of felt I told the student that I was working with Bryce, and I was like, That’s just how it goes. You just got to make the right offer. So when Jerry tagged me and he sent you send me the deal, I was like, Oh, I made an offer on this one. Yeah. And I had already comped it. So I kind of knew because of the conditional itself, it needed to be lower. So what I told you, I was like, Hey, I have someone for this. But we just got to be lower. So I just told you to renegotiate. Right? And yet you got it done.
So what happened was we we were we had a little family emergency, we had to go to Canada. Turns out like, this was also something that we learned while we were on in route. It turns out your phone doesn’t work in Canada, unless you’ve got like a Guinea card. Right? So we actually started negotiating with him over Skype. Gosh, I had to email and was like, Hey, listen, maybe you gotta get in touch with us. So I got in touch with him. And I said, Listen, turns out there’s this crack in the funding weren’t aware of and I knew a guy I knew again, that’s kind of done that kind of work. And he said it was probably a $50,000 fix, right? So that’s what I told him. I was like, listen to he says about 50 grand is just not gonna work for us. But I mean, unless he wants to come down, like what like to three when I think I said like, 333 30. Yeah, that’s correct. Yeah. And he’s, he’s said, You know what, let me let me get back to you. Then five minutes later, he called me or he Skyped me back. And I was like, yeah, he’s ready to get rid of this. Let’s do this. And then I was like, oh, man, well, I’ve got to be able to find somebody at this point.
At that point, I had somebody that was at, I can’t remember the price, but whatever it was, we got it. It was 25k. Right?
Yeah. All right. It was actually a little a little bit less than that. Because I eventually said, Hey, listen, he does need it for a little bit less. We’re like I offered 310. And that’s when he laughed at me again. I said, You won’t let me call you back in five minutes. And I just kind of waited for five minutes. I called you, he says 320 If you can do it, and he said, alright, we’ll do 320 So that’s what we got it that was 323 20.
And then I think we got dispo to 345. Exactly, yeah. 345. Yeah. So this one’s interesting, because on top of the foundation, it had a zoning issue to right. Yes.
Yeah. It turns out there’s a lot of stuff going on in American foreclose in this house. Like a lot of the people on that street had been just moved. Their property line had been moved about five feet south or No, yeah, about 510 feet south. So part of the house was actually on somebody else’s property line. Right. So we had to get a survey done. And it turns out that getting a survey done And it also requires you to go to the houses around that house to get signed. Because the the the dealer people have to agree that’s fine. Wow.
So we had to jump through some hoops on this one then, huh?
Yeah, the real estate agent actually took care of that for us because I we actually the one of the really smart things that you guys actually suggested was to, to write it out that that they. So I guess to back up just a little bit the the survey needed to be done, the buyer didn’t want to pay for it. The seller didn’t want or didn’t want to pay for it. Right? So we were like, Well, okay, then I guess this needs to be done. So that’s when you guys suggested Well, why don’t we Why don’t we take care of it. We could cover we cover the cost of that. But we write it into the contract that the buyer that the seller, the seller pays for it, and that we reimburse him with for the money that he paid for it at closing. Right so that we’re not stuck, like with the bill.
Yeah, we were okay to pay for upfront, right, because that’s I guess the seller just didn’t want to pay it up front. Right. But he eventually paid for it.
Yeah, he so yeah, the the Yeah, the seller eventually, technically paid for it.
Yeah, just didn’t want to come up with the money. So this deal was really interesting, where it came from 450, where they listed it really high. Right. But because this, this happens, like you buy a property, you know, I’m sure 380 would have worked if there wasn’t all those issues, right. But none of that was disclosed that you really can’t see that that much on the picture. So you get a property under contract, you do your due diligence, you find out more information, property line issues crack in the foundation. So what this taught me, as I did this deal with you, is getting a house under contract, you can find out a lot more. Now you don’t want to get into a contract just to renegotiate it. That’s not worth anybody’s time. But there’s a lot that can happen by just making that move. Right. Just taking action and getting under contract.
Oh, yeah. And there’s a lot that you can negotiate after you’re under contract I found out as well,
Of course, yeah. So it’s not always just, you know, you’re one and done. You saw you agree on a price because things happen, right things you find out more information happens all the time, even in traditional real estate, not even for investors, like people find out that, you know, there’s issues. So really, really, things deal. So let me ask you this, I think we told the we had the seller and the buyer, right, we signed an addendum saying we’re wholesaling it right. So did the agent know, we ended up wholesaling it?
Yeah, so the, so it at least here in Utah, if you I, you can’t hold or at least you can’t assign the contract to somebody else, unless the seller actually signs off on you’re being paid to assign it. So we had to. So when I explained it to the agent, I basically said, Listen, we got we’ve got partners that are that are helping us out with this deal. We haven’t decided how we’re going to dispose of it yet. If we’re going to do it or not. But we need to be able to assign this to somebody else. And he he was totally okay with that.
Great way to explain that to an agent, by the way for everybody that’s will watch this or is watching like that simple, right? Not that crazy. People buy properties all the time together, you know, not weird, just say, Hey, we’re gonna work with some people on this deal. We need the right to be able to sign in if we decided to take that option.
We just need the flexibility to know what we’re I mean, to be able to do whatever we need to to make the make it happen, right.
Yeah. And the way I found this buyer, by the way, I’ve never worked with this buyer before I called my title company that I work with GT title. And I said Who do you know that’s buying in Ogden? And Christina GT title told me Scott she said Scott’s buying an OG and I talked to him about a deal I had an Ogg and he didn’t want it. And I said, Hey, you wouldn’t by chance be interested in American Fork, would you? And he’s like, Yeah, sure. Send it to me. Just like that. That’s that’s how I was able to get it done. So nothing crazy. I was trying to reach out to him about another deal but just brought the property up to him about this one. And we were able to wholesale it no problem. Yeah, it was awesome. So tell me where you guys are at right now. Are you? Can I use consistently still making offers on market what do you what are you doing at the moment? I know I know. Making offers consistently can be difficult, but uh, yeah, tell me what’s up right now.
Yeah, um, so Melissa is our finder. She comes through and she comes to the MLS all like every night and then I will call and make offers in the in the afternoon. or mornings? Yeah, yeah. So we’re working away on it.
Still making offers and perfect sound perfect for us yet again. But yeah, getting that first one done, though. Like, I feel like, yeah, I can do this. Let’s do it. Yeah, it felt way better after the first.
Yeah, it’s always the first one, then you find out, okay, I can do this. It’s real. Really all it is, is you know, negotiating and then paperwork after that, right finding that environment paperwork. So that’s really exciting. And I want to let you know that I had a good time working with you. And if there’s anything else that you need any buyers you need, whether it’s here in Utah, or anywhere I got your back, I can help you find buyers, because that’s kind of what I focus on, mainly. And I told you guys, I don’t know if you knew this, but the Payneless Wholesaling method where I try to find the relationships with my buyers and then reverse engineer and find out what they want. That’s kind of like what I focus on. And I actually have some, maybe you guys can help me out. But I have some buyers right now in Ogden that are very aggressive, they’re like, well, they need to find something. So if you if you’re looking, if you want to work with me, if you find something in those areas, I can kind of give you the criteria to search. And if you find something, then you know we can we can JV on it, just like we did on this one.
Yeah, fantastic, guys. Excellent. And I guess just a quick plug for anybody that does want to JV with you, we didn’t actually have a contract with you while we were working it out. So I guess, I guess what I really want to get across is, you guys are trustworthy. Like I found the deal. I got it all set up. But it didn’t work out where I had a contract out. So we kind of had me as the middleman working with with the sellers agent, and you guys at the same time, sure, but nothing was signed until until at the very end. And it is always exactly as we talked about. It was fantastic. I mean, not that I just not having a contract for everything. But it was fantastic working with you guys, because I never felt that anytime I can get, you know, screw you.
I appreciate you saying that. Because there are times where I, for me, I’m like, Hey, let’s just work it, let’s see where it goes. And then if it goes somewhere, then let’s let’s sign the paperwork, right. And I just figured by the time we felt like it was going in somewhere, we were already pretty open and honest. And you know, we were like, Yeah, doesn’t really need to happen yet. So not not always how you should do it. But also, if you feel like you could work with someone you can trust and integrity is like super important this business. So really, if someone’s going to screw you, they’re not going to last very long in this business, because then everyone’s going to know about it. So I’m actually right, yeah, so you got to you got to stay true to your word, and help people out and, and for you to like now, you know that model too. So if you, if anyone comes to you and has a deal, then you can do the same thing. You can go find them a buyer be like, you know, reach out to the buyer that bought this deal. I can give you his info. Maybe he’s looking for another one in the future. But it’s all about networking. It’s all about just putting yourself out there and you can get deals. Yeah, absolutely. Cool. Well, I’ve had a great time chat with you about the deal. I think what I want everyone to know is you just have to take action. And I appreciate that you you too are taking action. You know, she’s finding the deals you’re making the offers. That’s, that’s what it takes. You know, I think that’s awesome that you did that.
Yeah, I mean, you can study for as long as you then pick up as much as you can, but until you actually start doing until you actually start making a call and talking to somebody, it’s never gonna happen.
So that’s so true. And it’s so interesting that I made that same call. You did but you what was the difference? Right time Right place, right? Yeah, I didn’t follow up. I made the offer. He laughed. I was like I had seen going to work you came in? And who knows? Who knows? Maybe that offer for 325 that I anchored them with in the beginning. Maybe that helps, right? Maybe maybe that Oh, sure.
I guarantee it did. I’m sure he got that. I told him that 50,000 hours lesson. He’s like, Well, the other everybody else has been offering that. So this must be what it’s worth.
Right. Right. So I want to let everyone know also that don’t be discouraged when your offers get rejected because you might be that person like you guys were for me that just came in at the right time where they’ve been beat up enough where they’re like, Okay, fine. I I got it listed way too high. Let’s just take it right. No, you know, it’s interesting to me, I would think that the agent would have probably called back some of those other offers. I’m sure someone made an offer like 350 or something, but are a little bit higher, but they really don’t, they don’t like keep a lot of agents don’t keep like a Rolodex or like a list of people who have made previous offers. They’re just like, Fine, let’s just get it done. So I’ve always wanted them always like Man, if I make an offer I hope the agent just remembers me but we can see in this situation it didn’t happen. So you really got to follow up is really important too, because they’re not going to call you because again, I made the offer 325 We did what did we end up three 20 So this morning, he could have called me and been like, hey, you know got 5k More but then I would have probably been lower right. So it’s very, very interesting that that I think that I think that they call me but they never do.
Say hello.
Oh, well do you have any any advice you want to give out to people that are going to watch this any any anything you’d like to kind of let the wholesaling nation now, um,
It gets easier the more that you do it call calling up agents or calling up somebody and making an offer that you feel like is going to be insulting is a, it gets easier as you do it. And you’ll learn that listen, if you if you kind of just let them know, Hey, listen, I realized this was kind of low. But in order for it to work for us, this is what the numbers gotta be. It’s fine. If you say no, but you know, it’s this is where we’re at. And just making the offer. It’s like, it’s like people with McDonald’s offering fries with that. Like, I mean, who cares? You say no. And they’re like, oh, okay, sweet.
I love that. I think that’s awesome. So you’re saying, just get out there? Make the call. Make the offer? And don’t Don’t be so nervous about it. Right, like, exactly. Just make it. Yeah, I think everyone struggles with that. It’s like, wow, you gotta listen at 450 I haven’t struggled on this one. I’ve been in it for a while. And when he was at 450 I did 325 I struggled. I was like, Man, that’s 125k low. He’s gonna be annoyed with me, right? Yeah. You got it. You gotta go for it. You got to be strong and do it. Well, I really appreciate it Blaine, Melissa, for coming on. And, yeah, let’s keep in touch. Hopefully we can do some more deals together and I can help you out and you can help me out.
All right, we’d love to. Thanks, man.
Thanks for coming on. I’ll talk to you later. Bye
