Nathan: what is going on everybody? We are live here at the payneless wholesaling podcast with my man David Pupo even put his number in there for you.
David: You know where to find me.
Nathan: Give this man a call and you guys probably wondering, okay, well, you know, if you haven’t heard, why should I give him a call? Well, that’s why I brought him on here to explain why he is the go to guy to give a call about seller financing. Is that right? You’re helping people maximize their conversions right now?
David: Yeah, absolutely. And we’ve seen in a lot of in our business. And you know, I was having Hector’s conversations with some of the local people here in the Orlando market that are struggling to understand how to get they know there’s motivation to the seller, but the seller is asking a little bit too much money where say like a cash offer isn’t going to make a lot of sense to them. And they’re having a hard time structuring or finding out how to be able to tap into what a seller mode A motivated sellers.
Nathan: Dang, well, hey, man, I first I gotta say it looks like it’s pretty warm over there. You got the nice little t shirt on the window. Little cracked. It looks like is the weather pretty good there?
David: Oh, it’s in the low 80s right now. It’s great here in Orlando.
Nathan: Yeah, man. I mean, I mean, you know, when I got my jacket on, it’s cold.
David: Yeah, I might have to wear that maybe like a week out of the year.
Nathan: It’s like paradise right there. Well, hey, so for the people that don’t know who you are, who is David Kupo. Can you tell us a little bit about who you are?
David: Yeah. So as you just mentioned, David Pupo. I’m here on the Orlando Florida market, but our wholesaling business handled statewide for Florida. We’re in a couple of other markets. We’ve been in Tennessee, North Carolina, Georgia. And honestly, just I’ve enjoyed a lot of real estate investing, I’ve been able to get a portfolio myself. So I have a couple of multi families, you know, when the property is right, I wouldn’t call myself fix and flipper. But the property is right. I’m gonna I’m gonna definitely make sure we can capitalize on it.
Nathan: I feel like everyone thought they’re a fixer flipper over the last few years because you could take anything and vacuum the house and sell it, you know?
David: Yeah. Yeah. Everybody had the Midas touch right Now that thing is like a like a black thumb.
Nathan: Exactly. So tell us everyone’s facing this right now. How are you maximizing those conversions when you know, you have those sellers that still want a lot for their house? And the buyers are like, I’m paying a lot. What are you doing?
David: Yeah, yeah. So in our wholesaling operation, we’ve seen buyers 15, or 20%, especially for flips across the board, asking for those kinds of decreases. The ones with rentals. They’re a little bit still standoffish, but nowhere near to what the flippers are. The flippers are people that are certainly they’re going into hibernation for a little bit, or they want it at too good to be true prices. Yeah, so what we’ve been able to just do and when it comes to the sellers, right, so we want to always make sure that the sellers have somewhat of a motivation, why do they want to sell at the end of the day is going to be the most priceless thing, you know, we can establish timelines with them, we can of course understand what the condition is of the property. But it always comes back to really the pricing and the motivation. So what we’ve been always able to do is just you got to start understanding what are the biggest priorities for this person, and that is how we contour solution. So like, say, for example, if you’re saying price is a top one for them, and then maybe like a convenience option, we’re going to always make sure that all heck why don’t you list the property? Right? So you want to do a little bit of a reverse psychology, push it back on them and find out why would they list or not list it? Sometimes they don’t want to deal with a realtor, right? So from there, if price is their top priority, there’s only a couple of different options that you can provide to them. A realtor creative financing or there’s obviously a newer structure with no vacations. We’ve done a fair amount of those we’ve learned from a couple of great people like Cory Geary, and Eric Brewer, those are some of the top people I know pays more. He has a really good like section in his course, were for Novations, too. So we found out really a nice little sweet spot with when it comes to creative financing.
Nathan: That’s awesome, man. I love that. So what’s happening right now is you’re running to sellers who are motivated, but they won’t move on price.
David: Right. Right. So if they’re not willing to move on price, then are they willing to accept terms? Right, so that’s like part of the pitch right there. Hey, you know what, and we even have follow up campaigns going in like this right now. Hey, you know, Mr. Jane Doe, or John Doe or whatever. Hey, we noticed that our cash offer for you a couple of weeks ago didn’t quite work out. If we were able to hit that cash offer, or I mean, or that price that you were looking for, would you be able to do terms with us? Or would you be willing to exchange terms? So it gets them open to be like, Well, I am pretty fixed on the price. But what can you do? So at least you’re able to get that door open that was just closed?
Nathan: Yeah. So let me ask you this on your pitch, do you lead with the creative? Or do you lead with the cash offer,
David: we always go in first cash.
Nathan: Got it. So you –
David: we always bring in offers cash because it also does a really good job in anchoring expectations.
Nathan: Of course, yeah,
David: it sets up it sets up creative financing really well on the back end, that if like, say, like a house that we know is worth, like 300, and we came in and we are anchored at like 180, my creative financing solutions after that are gonna see much more appealing,
Nathan: you’re gonna love it, they’re gonna they think you’re the man. So so how about this on a lot of the creative financing deals you’re doing? Are they do they have a ton of equity, and you’re just able to negotiate them not getting all of it, or a lot of people have little equity. And it’s easy, because you’re basically able to get their equity out just by doing the deal.
David: It’s a mixed bag. It’s literally a mixed bag. We have certainly found out that the more equity comes in, I would say the multifamily world. If you’re dealing with single families, they’re not going to usually have as much equity.
Nathan: Yeah, cuz right here in Utah, it’s pretty difficult. Depreciation was so high, right? So a lot of people have like 200 $300,000 of equity. So when you do you present terms, they’re like, Yeah, where’s my all my money, though? You know, like, I need that money out.
Nathan: What would you say to someone like that? Let’s say let’s do a roleplay. Or just like a scenario, I have $80,000 of equity. And I have a big problem at this current offer. You’re giving me it’s 80,000 hours equity, how would you say how would we get you get past me wanting all that? Because no, not a lot of sell. Buyers are going to give 80K equity. That’s that’s more than a downpayment.
David: Right, right. So I would want to first find out, why do you need that? 80k.
Nathan: So okay, let’s have a scenario like this finance 2.99%. She wants to do it, but she needs like 50k of equity, but her house is trashed. So someone would put 50 have to fix the whole thing up and the house is in pre foreclosure. So on top of the 50, she’s behind 12. So no one’s coming in bringing in 62 and then putting 40 into a house. And there’s they’re in way too much, right?
David: Well, I don’t know, I don’t know where the mortgages are. And I don’t know what it’s probably worth.
Nathan: So I’ve ran the numbers, I love this one. It’s a situation where like, the house is pretty much almost gone. Like it’s they’re upside down so much. They have a solar lien on the house. So on top of that they gotta pay the solar, there’s debts, it’s crazy. But anyway, in this situation, let’s just say I have 80k, I need to sell because my son’s in jail. And let’s just do the scenarios, okay, hey, look, I need the 80K I got to pay off my son’s debts, I lent him money, my son lent him money, we want to get paid back, he’s gonna be in jail for five years, I’m not gonna see him, we need the 80,000 to pay off what he owes. And we also, you know, we want to make some money,
David: hey, i totally get it. I understand why. And those are all very valid reasons. The only issue that I’m having coming up with the 80,000 for you, Nate is really, that after I have to go in and do any repairs, and any fixing up and expenses, or paying off any existing liens, I will now be in your situation where I might have to go behind on my mortgage. So I understand that you want 80,000. But is there something that you would feel comfortable that would at least be able to get you to get a lot of those burdens off of your your plate that we could still come up with a solution where we’re able to get this off of your plate. And then we’re also in a situation where we could be able to continue making the payments for you?
Nathan: Well, you know what, maybe if you could do like, maybe I could come down a little bit, maybe like 50, if you could trim it down to 50. I mean, the house right now, I’ve been getting a lot of cash offers that like 200,000, I don’t want to sell it for that I want I want 230 I want 230 for the house, I owe 180 With all my fees, all that that’s, that’s why I’m really trying to get I can do 230. And if you give me 50k My equity upfront, I’d be able to pay everything off. And I’d be out of here.
David: Well, I’ll tell you what we’re making. We’re making some really good progress. I’m gonna make sure that whatever we come up with, you have to you’re at least coming out out of you’re not coming out of pocket, we’re at least trying to help you out with being able to pay for any of those. So you mentioned a couple of different circumstances with your husband or your your child going to jail. What do you think that is going to be to be able to get them out?
Nathan: So it’s not necessarily them gelling? They’re not going to get out it’s more than they left a lot of debt behind that, you know,
David: Oh, I see. I see. And there’s the debt attached to you guys as well or is it only his debt
Nathan: it’s just him just but but we want to be able to help him when he gets out of jail not be swamped in debt. Right. That’s kind of our goal, and we got to get paid back. I mean, I gave him a ton of money on did so and to be honest, like I’ve even come to a point where I might just even let the house go just because it’s such a big headache for me. And I don’t even care like if I don’t get at least 50 If you give me like 10 or 15 I’ll just let it go, I don’t even care,
David: I totally get it. Those are a lot of those are a lot of circumstances that are on your plate, what we can to be able to do is let’s, let’s get off, make sure that we have all your expenses lined up, because the last thing you want on this one, Nate is that you guys go into a foreclosure situation, you’re not going to make any money. And now you’re going to have absolutely trashed credit for at least the next 10 years. And it’s going to be very difficult for you to be able to say buy another house when that opportunity is right, or in another situation, even to just go rent a property. It’s going to make all these situations for you much heavier if you decide to go forward with a foreclosure.
Nathan: Yeah, honestly, I don’t think my son’s going to be able to buy another property ever, even if we saved it. I mean, you know, he’s got it. He’s a felon, he’s got that on his record. You know, he’s got terrible credit right now. I don’t think it ever can be able to, you know, five years, it’s not going to be able to get recovered. I feel I don’t know what to do,
David: Right. And believe me, I totally get it. It’s not an easy situation. But the last thing you want to be is the anchor that’s dropping down. And now you can’t save him either. And now you’re both going down. Yeah. So now let’s talk about this. I’m gonna write down all your expenses, let’s make sure that we get that covered for you. And we have a little bit of cash in your pocket to be able to at least get out of this property in this situation. So a you don’t have a credit impact B. You don’t have to go through a foreclosure and then see we just take this headache off of your plate. How’s that sound?
Nathan: Sounds good. Let’s write it all down. Great job. I love it. Yeah, so this situation that was replying in your group playing, I have a great relationship with the lady, I offered her 15. And she’s like, that won’t even cover anything. I’m just gonna let it go. And I talked her for like an hour, I did this live. And she just like, she came to like a point or mind where she was just like, done. You know, I’ve called her multiple times, we’ve talked, but she’s just like, look, I think my son got himself in a terrible situation, I don’t even get home anymore. I’m done. Like 15k doesn’t even do anything for me. So that’s kind of where I’m at with her. And it’s, it’s a really, really bad house, like the house is destroyed. So it’s like an 80K rehab on top of someone having to come in with 15 Catch it up, which is it’s a bad spot. So we’re almost like, hey, let’s just watch this thing. Wait, wait till goes to auction. And then the liens will be wiped out. Maybe we can buy it. But I think it’s –
David: It’s a tough situation. Because what you want to ideally be able to do, of course, is help them get out of some of the financial burden. But we have we have the solar panel issue in Florida all the time. It is the biggest multilevel marketing scheme I’ve ever seen sweep the nation besides me reverse mortgages, and it’s crazy.
Nathan: Yeah. And they put liens on the houses, you got to pay him off. It’s crazy man.
David: Yeah, assuming it or you have to or you have to assume it. And that’s a couple of $100 themselves. And that is a big obstacle here in Florida. If you are trying to do subject to you it’s making sure you understand all the other additional mortgage or liens that are attached to something like that.
Nathan: So you deal with a lot of that were they you have to whoever either you’re taking on the mortgage or someone else’s wrapping it they have to, I guess assume the solar
David: Yeah, yeah. So we always make sure that we have the we have at least the company that they’ve gone through, we have a cool conversation with it. Hopefully they have a contract contracts a lot easier and more times than not most of the solar panel companies as long as you give them notice. They’re assumable
Nathan: Okay, is that a hassle? That sounds like such a hassle. Check this out. So there was one lady who died and her her daughter inherited it and they would not talk to her the solar company would not talk to her daughter wouldn’t talk to us who bought the house, but luckily, they went through bankruptcy and it wiped out the solar lien. And they so we didn’t have to pay it off. So
David: Oh, man. That’s a lot.
David: I was extremely lucky man. These solar people like Sorry, we can’t talk to you. We’re like, dude, the person’s dead. And they’re like, well, we need a power of attorney. I’m like they’re dead. They can’t get do a power of attorney and they’re like, it’s like you’re dealing with very low level people that you have to go through that.
They’re like bill collectors.
Dude, it was rough. But anyway, hey, we veered off but hey, I think this is great content man is what people want to see.
Yeah. Hey, I listen. These are these are the types of conversations that we’re having every day. There’s we have to understand, you know, you I love that you brought it up like this person is just feeling like they’re drowning. Right and that’s and that’s when I brought in like Don’t be the other part of that anchor that goes down with your son right? You got to get back to like, you let this go there is no salvation for helping him out on the other side.
Yeah, and it seems like you have that conversation a lot just like hey, don’t be the reason why this guy is screwed for his life. You know, he’s already in a bad spot but she’s almost at that point where she’s like, Oh, I don’t even care he can deal with it’s like you’re really putting them in a tough spot when I’m willing to take this over. Right?
Yeah, the subject to ones of course. You know, you have to be able to understand what’s going on with that. The ones I like really, really though these are like my bread and butters are being able to create principal only seller finance deals. That is In my world like heaven, that’s my real estate habit is being able –
to they would they would have to own the property outright, correct?
Yeah, they would have to own it outright. My avatar for it is people that are multifamily investors that have high equity in a property, I can bring in partners, if I want for downpayment reasons or any kind of rehab reasons, and it’s still going to cash flow in a fantastic way.
That’s amazing. So you’re able to give them convince them to take principal only now they don’t want any interest.
Oh, man, so so I’m gonna be I’m gonna be calling on a couple of different podcasts coming up soon. And I’m going to be sharing with people a lot of of like a triple offer approach that I that I’ve been able to, I would say, I would love to say, Master, but I’ve gotten just let’s just say I’m really good at it. And the triple offer approach that I’ve been able to create is being able to come up with solutions that no matter what works for the buyer, and now the seller is being able to come up with a solution that works best for them. But at the end of the day, right, just like those game shows what’s behind all these doors, it’s always us. We’re the person behind every door.
Dang, well, hey, where can we catch you on those other podcasts when you drop that good info?
Yeah. So I’m going to be dropping on Joe McCall. Next week. Him and I have already been strategizing without one. I’m doing one, I think tomorrow with Neil Timmons, who’s based out of Idaho, and he is a monster. Nobody even knows about Neil and Neil has been doing a crazy good job over there. I actually met him through another mastermind as well. And you just find out some great people and being able to come up with like, say like that. Like I said, the triple offer approach is something where we anchor them low with cash, and then we bring them up to a reality of a principle only approach and then that seems like salvation.
Wow, I freaking love it, dude. Well, hey, man, I think anyone that’s watched this today has got a little taste of how creative financing can help them maximize their conversions, right? Because if you’re just making low offers right now, you’re shooting yourself in the foot. Good luck doing deals you need to be have everything right, like creative innovation, fix and flip wholesale. Wholesale. You got to know it. All right.
100%. Yeah. And so when when COVID was first happening, I had there like the realization like oh my god, this is it. This is like I’ve been learning about all this stuff with creative financing. And I’m like, this is the opportunity because at that time, everybody believed that there was going to be this just humongous like tidal wave of foreclosures about to happen. But of course they did with the forbearance program, they just tacked it on the end, and there was nowhere near what we expected. But you know, I was I was prepped and ready, man, I was going through material, I was practicing roleplays. With my teens, I was also being able to do this live with sellers. And we started we started structuring a lot of subject to deals. We were also like I said, we started building that muscle for the seller financing deals, and it’s been pretty damn awesome.
Yeah. And do you feel like there’s gonna be a wave of foreclosures coming soon?
I don’t know exactly about a wave. But I certainly think there will be. I think we have to see what a lot of these bigger s&p 500 companies are about to do. They’ve been giving the indicators that they’re going to do layoffs. And if these big big companies are about to do layoffs, I think that will be the first domino that really will not I guess I can’t say it really the first domino but with everything being as inflated as it is, it doesn’t even have to be interest rates. Interest rates are the obvious one in real estate right? But I mean, you can’t even go to a grocery store and not drop $100 for like two days of meals right? Crazy in its current current of eggs is like five or $6 It used to be $1.50 like a year ago, you mad gas is all time highs.
My wife she we had chickens and we raised them for like four years and she just sold them because she’s like I’m tired these chickens we need we should have kept the chickens for the eggs. They’re too expensive
man that’s that’s a couple that’s a couple of weeks of meals man.
Man like they we come off wrong time to sell the chickens yeah eight of them cuz she was like a little she loves like two little farmer
hen house huh?
Yes, we have we have chickens we we got like pads we got garden we got it all so anyway, dude is fun chat with you. And I’m sure we’ll we’ll cross paths again. And anyone that listened to this podcast, I’m sure they got a lot out of it. So David, how can they reach you? I know you got your phone number. How else can anyone that tuned in reach you?
Sure? Yeah. So of course, you know, one of the biggest ways is through social media. You could find me through Facebook, Instagram. I am now on Tiktok too. You can find me under David Pupo. There’s like five of me in the nation. In my handle. My handle on Instagram is dollars with David and yeah, I’m posting content out there every day. If not reach out to the phone number and then an email is David at my Florida House.com But yeah, man, it’s easy. Just Just reach out to me. I’ve also been really pushing a lot harder on being able to help people out with the JV dispo programs because that was also an operation I thought was going to be needed. A lot of process oriented like just structure to it to get maximum exposure because as we mentioned, you know, the flippers are sitting to the wayside so how do we get all these other investors still buying properties?
100% Well, I love it man and appreciate you providing value to the crew, the investor Dr. Nation.
Yeah, absolutely man, thank you so much for having me. It was really fun. Hey, I love that we jump into roleplay that doing with our team every morning so it’s always fun to do
a role playing field did that’s the way to grow like everybody that watches me it’s like look, sales skills is not You’re not born just being a master salesman. You practice practice makes you better, right? So roleplay that’s how you master it. You do it every day. So you know how it is?
All right, guys. We’re out. Peace out.
Thanks, guys. Appreciate it.