Episode 047: 6 Months Ago We Told This Seller No - How We Saved the Deal and Made 48k in the Process • REI NETWORK
 

We all have dead leads that we wish we could bring back for a second chance. Sometimes time is all that’s needed to turn those dead leads into successful investments. We just closed a deal on a property that we flipped; this was a deal that we initiated a conversation on several months ago, and we initially told the seller we weren’t interested. So what brought things back around for us and the seller, ultimately ending in a good profit for us and a happy seller as well? Time and relationship.

I initially didn’t want to take on the deal that we just closed on; the numbers didn’t make sense. Over the last five months, we maintained our relationship with the seller and kept checking in. The market shifted, and the deal started to make sense financially. When it did, we were able to move forward with the property and eventually make a great profit. You need time on your side, and a great team of people to help you. I’ve never seen this particular property in person. I was able to accomplish a successful flip because I have an incredible team of contractors on the ground that took care of this.

As wholesalers, our number-one role is marketing. We find a property that has an issue or is hard to sell, we purchase the property, solve the problem, and find a new buyer. We are marketers and problem solvers. So much of our success comes from our relationships. Networking and relationships with sellers, mortgage brokers, attorneys, and title companies; this is how we are as successful as we are. Time plays a big role as well. I have deals that I worked on for close to a year before the seller decided to work with me. Keep time on your side, build the relationships; it can really pay out for you as a successful wholesaler.

Watch the Episode:

What’s Inside:

  • Why you should build multiple strategies when looking for investment deals.
  • The importance of building relationships and networking.
  • Why you should invest like you are using your own money.
  • Having a great team on the ground can allow you to invest virtually.
  • Four things to look for when prescreening your leads.

Hey, guys, welcome to the REI Network podcast with me, Gavin Timms. Hey, guys, how are you doing? Welcome back with another episode on the REI Network podcast. I’m actually traveling, and this is my first podcast in the car. I could call it REI in your car. Joe’s done that before and we’re heading back. We’ve just been to Birmingham, Alabama, and we’re on the way back after just kind of looking at some flips. That’s the second time that I’ve been to Birmingham. I’ve done a ton of deals there. We’ve been flipping and we actually closed one today. I was actually at the closing table for the first time, which was pretty crazy on one of my virtual markets. And I met the buyer who bought this flip. We just sort of flipped today for three hundred thousand. We netted somewhere in the range of we’re waiting for a couple of invoices, but it should be around forty-eight to probably fifty two thousand dollars or something like that after the money’s been paid already. Closing realtor fees, closing costs, we should be in that range. So that’s really cool. I think it took us about twelve weeks to do it and we had a ton of problems. I don’t want to make out that it was easy. Making around fifty grand on that flip because we did overpay by sixteen thousand with certain things that went on. We had a contractor, unfortunately, that got into a bad car accident, and we’d already paid him and his crews for certain work. And then we had to bring a new crew in anyway. And it costs about sixteen and a half thousand on one flip at about four and a half thousand on the other. But anyway, we still make good money, so I’m happy we got about forty, nearly forty thousand over asking just shy of that. That was really good. And I met the buyer at the closing table today and he was amazed that while I didn’t live in Alabama, we managed to flip this thing as an investor, and I’d never actually seen the house. And he was blown. His mind was blown. But obviously it comes down to great teams. I had Melissa there who was running it on the ground. But if you build the right teams then you can do it. So on this episode, we’ll tell you a little bit about my day. But also, I think what we really talked about today was, yeah, we talked about the flips and how cool and and to be able to do these things. 

But it comes before that about the art of finding discarded properties, OK, because if you can get control of discarded properties, finding them off market. All right. And what is that? That’s marketing number one in this business is marketing. You are a marketer and you’re in the sales business. That’s it. Marketing and sales. And then when you get control of a property, guess what? You pick your desired outcome. Do you want to flip it wholesale, buy and hold it? Do you want to take it sub two? Do you want to do a lease option, do you want to do a rap owner finance? Doesn’t matter because you have control of it. But still, you should all be doing offline marketing because if you’re a great marketer, you will always make money in this business. 

And that’s exactly what we did. Right? Our rule is and I’m not saying we’re 100 percent perfect. I talked about it on one of our flip’s today. This one we closed. I didn’t want to do this. I didn’t want to take it on. The only reason that we did is because the market has demanded it. The market has gone up so much over the last five months that the numbers started to work. OK, we’ve been working this lead for two years, two years. And we finally, I want to say, seven months ago, gave the lead over to a realtor and said, hey, will you help this, this gentleman, will you list this house. See if you can bring in a buyer and just we don’t want anything. Just help him out. Anyway. They did. They brought a buyer in and last minute he couldn’t close. And this guy who owns the house was devastated. And he came back, the realtor brought it back and said, hey, look, like the buyers just pulled out. We can’t do it. He bought a car and done something crazy and couldn’t close on the property. So we looked at it and we owned it hard. And I got my rule is, if I can’t wholesale, I don’t buy it right. And I stick by I stick by it. Well, I didn’t stick by it, did I, really? Because I was like, the margin is tight, but I think we can do something. And it developed. We bought it and the plan was, was to put fifteen thousand into it and sell it for I think the buyer price was one seventy. We’re going to try and put fifteen in, and we’re going to sell it for like two thirty-five. That was the plan. Anyway. We did, we bought it. We started putting money in and decided to look at the area. It was going up and up and we thought, well, if we put more money in, we can get more out. So obviously that’s what happened. So we ended up putting about I think fifty grand and fifty sixty thousand and something like that. And we obviously put more in, took a lot longer, twelve weeks, still, but managed to sell it for three hundred thousand. Now this is the highest. So actually the appraisal came in, we listed this thing at two fifty seven fifty or something. The appraisal came in at three ten. I could not believe it. We sold it, we accepted the offer at three hundred grand at the time and yeah we got the deal done but it’s by far the highest comp in the area from the closest one to it was two eighty or two eighty five, so everyone in the neighborhood absolutely loves us on that one. So that was a great win. So it all came down to finding that. 

So how do we do it? I know that’s probably what you’re thinking. And it’s not rocket science, right. Is being consistent pulling list. You all know I’m very much into the cold calling. I do a little bit of texting and I’m actually jumping back into direct mail. As you probably are all aware, texting is going to go away or it’s going to get harder and harder. We don’t do too much of it, but we do, we do some. And I’m going to be looking at direct mail a little bit, especially because we’re flipping and we have bigger spreads. So I can afford to spend a little more on marketing if it’s going to bring in deals. But my number one source still is cold calling. I have, I think, all the three flips we have on the go right now, including the one we just sold two are from cold calling. One was we bought from a cash buyer. It was one of our cash buyers that didn’t want it. He likes to work high end and we paid him a seven thousand wholesale fee. He’s not a wholesaler. He just had a relative that brought him the deal. And that’s the one, that’s the second one that’s going on the market next week. We should make about sixty thousand on that. And that’s profit. That’s after pay in money costs and closing, realtors, and everything like that. So that’s pretty cool. The third one that we’re in, the last house we did today, I’m excited because that one was kind of a disaster still, which is cool to see because now I really get a feel for the end product once it’s done. This one was another one in the seventy thousand seventy-two thousand. It needs about sixty thousand in work. This one’s going to sell for about two fifty. So we got we should have 100k on that. Obviously, anything can happen, but it’s so padded out it doesn’t matter if it does go an extra twenty-five thousand over. If something does happen then the spreadsthere to allow it. And the cool thing is like I don’t mind, I’m buying these, I can show hoods that I actually own it, my company owns it and what we’re doing. And that’s not again it’s not the chess or anything like that. But it’s actually I’m very much in this business. I love real estate. I love investing from a virtual level. 

And that’s what’s unique. I’m going in these houses, guys, and we did a lot of content. So make sure you follow me on YouTube. If you want to see this, go to REI Network with Gavin Timms. Make sure you subscribe to the channel. Follow me on Instagram as well at Gavin Timms and Facebook. Just get on social because I’m going to be dropping them as they’re ready. And it’s pretty cool that I’m walking in these things. I’m investing. I’ve never even seen them. And it’s because of the team, right? It’s because of building the right team, having the right partners. And when you do that and everyone’s kind of making money, we’ve got crews that we send from property to property where we can kind of control the crew doesn’t work for us, but they literally work full time on all of our projects. So we’re trying to keep them busy. So it keeps our costs down on that rehab. So that helps with the speed. I mean, they’re working last night, at work until 10 o’clock they were there. We had five or six in one house today because they’re trying to list this thing in the on the market next week. So that’s pretty awesome as well. So we’ll see how that goes. So, yeah, I don’t know in terms of the list, let me talk about that. So. All right, cool. So you shared what you doing and these are some big wins and hopefully some big motivation for you. But let’s talk about the list, OK? How you get getting these leads. So it’s super simple. I pull lists you can use, Batch. If you haven’t already signed, no go to batchleads.io/gavin Batchleads.io/gavin. You can get five thousand property records there. You can skip trace the main batch, make sure you remove the no litigators and the no DNC and all that and get calling them. Right. Get on the phone and start talking to potential sellers, tired landlords. The less that you can pull, we pull all kinds of less, depend on the market, we’ll pull absentee owners. We will post that like tired landlords, where they own a second house. We will pull vacant; we’ll pull tax delinquent code violation. We even pull owner occupied. Right. Owner occupied still works well. Our biggest spreads actually come from owner occupied pulling that. And then what else. What else. What are the criteria do you need to know? Well, it depends on what type of deal you’re doing. If you’re a wholesaler or you’re a rehabber and you want to find discounted properties, then obviously you want to make sure that there’s equity 40 percent, 100 percent equity plus or no, you could do length of residence, maybe ten plus years knowing that they’ve owned it. So there might be some more pain there. You could do eight to ten plus years, whatever. You might want to put a cap on it if you’re in a low-end area. And that’s kind of where you’re looking for deals and that’s where the activity is and you’re not doing high end properties, maybe you want to put a current home value up to two hundred thousand or three hundred or depending on what your area is, you can do single family, multifamily, triplex, duplex, quad’s. So that’s kind of the criteria that you can pull with these lists and go from there. 

Now, if you’re on the creative side, then, maybe you want to fish where there’s less equity, maybe you want to do from no zero equity to like thirty percent equity, right, where less people are marketing again, especially on vacants. I mean, I would do everything vacant so you can get literally find the deal, solve the problem. Remember, we’re in kind of a property solutions company or business. You’re there to solve problems for the seller. You don’t want to be a one trick pony. But in my mind, my next breath, I want you to also stay focused. So focus on one thing if you’re new, whether that’s cash offers or lease options, whatever it is. But you want to build multiple strategies as you go so you can literally say there’s no lead going to get left behind. All right. So that’s really, really important. So that’s some criteria that you can kind of pull. And once we get our data, like I said, you can skip, trace it and get it into like a cold call software. Batch has actually launched their own their own dialer now, which I’m looking at moving all of my agents over to. I get actually aseven-day free trial for you. And I’m trying to give you give this stuff away free because it is free for seven days right now. There is a cost to it after that. But getting get out, test it. So all these resources are going to cost you little to no money to at least test them. Actually, like, this is a fantastic this is gave me more leads. If you want to try a BatchDialer.com/Gavin, you actually get seven days free. So BatchDialer.com/Gavin. Sign up. Use it. Move your leads over to Batch, get calling in the dialer and go from there. But what I do is I actually get VAs doing it from the Philippines. We hire them, train them, they’re five dollars an hour. 

They make all our outbound calls, they prescreen leads, trying to get the four pillars on that conversation. So looking at kind of the condition of the property. Right. Number one is condition, number two is the price. Can you get a price out the seller? Number three is the timeline. And then number four is a situation of motivation. If we can get some of them points, it actually allows us to get a prescreen lead into the system and then acquisition or you is the investor can get on that lead and understand kind of where what the situation is. 

Now, I will say this, especially with cold calling and outbound marketing, is it doesn’t matter if the if the seller wants too much money because they will, why wouldn’t they? Why wouldn’t a seller want too much? I don’t care if they want too much money. I want to know why they’re even here. Why do they even want to offer on their property? Why do they even give us this information? And why didn’t they just say, no, I don’t want to sell? Because guess what? That’s what would normally happen. So everyone says, no, I don’t want to sell. That means, yeah, they don’t want to sell, but the ones that want to sell, when they want too much money, it’s your job of of the sale cycle that is getting on the phone, asking the right questions, building the relationships, OK, and actually getting to the core problem to see if you can solve the problem. Because if you can’t, if there’s no problem there, right? You’re not going to be able to, they’re not motivated. You can’t do business with an unmotivated seller. They will become motivated, or they are motivated. They’re just not letting up. And time means everything. I’ve just told you about the three deals that we got. One was the referrals of wholesale, but the other two one was two years and one was ten months on the two flip. So I didn’t say they closed last week or they just came in. Sorry. And we just got them within one phone call. The lady, the lady that we got a testimonial from the last flip. Twenty-five times on, on follow up. Twenty-five times in ten months. And she said from her own mouth that we delivered everything that we said. We did not negotiate anything. We delivered on it and we was we followed up and we checked in and we checked in. She wasn’t ever any point wondering if we wanted to buy this property. We were helping her. And that’s what you want. And when you see if you want to listen to this testimonial, I’ll get it to you and you’ll be like, yeah, there’s no way. 

It doesn’t matter if it’s dial up or mail. It doesn’t matter if one of your text messages or your calls, here there was no way she was going to sell that property to anyone else but us. If you watch it, you’ll understand exactly kind of what I mean. So building them relationships, the reason I called REI network, REI network. Right. Because it’s all about network. That’s how passionate I am about it, because that is how I have created opportunity after opportunity from doing deals in Maui, doing deals in Florida, doing deals Alabama, in Georgia, I’ve done deals in Louisiana, Dallas all over. And it’s only because of relationships. And if you understand that the more relationships you can build and the better your networking is, the easier it is to do deals. And this is not just I’m not talking about wholesaler’s or cash buyers. I’m talking about everybody, mortgage brokers, OK, attorneys, tile companies, all of these people that will step in and help you out if you have them relationships. We’ve got really big into private money, we’ve been trying to raise private money for about four weeks and we’ve just got we should have locked up about two million from one person if we want. We’re not if we need to use it. We’ve just got another one on board today who can phone within two hours. He’s like he knows what we do is local to Alabama. And he gave us the go ahead. Look, we know the business. You guys do our fund into ours. Just let me know. And that’s relationships. Right. And that’s why I want to do I want to try and get about five million raised. 

So as I need it and I only invest personally with if it was like my own money, I bought the third flip. And people like investors, you know, they’re probably listen to this and have done flips. No, you should never use your own money. And I agree you shouldn’t use your own money, but you’re going to tell me that I’m going to now a hundred grand. I mean, I think that’s a pretty safe bet. I’m not I’m not putting it on the stock market. Right. And I’m hoping for the best. I’m not putting in crypto and hoping it goes up. I’m putting it into real estate with a hundred grand spread net. And I’m thinking, all right, well, we could bulldoze this thing and rebuild it and still make money. So I think my money’s pretty safe. So we close that one pretty quick. So I’m very calculated with that and I am with the investors as well. So if anyone is listening here that wants to invest in what we’re doing as well, then reach out. If you want to put your money somewhere and you want to invest in anything, then get in touch. 

And also, more importantly, we’ve just changed our mentorship program. And I’m pretty passionate, excited about this. The whole layout is new. My team’s more involved with diving deep into case studies and the things that we’re doing. We’re going to be doing calls most days. Last week we did five coaching calls last week. This week, we’ve done four. We’ve been every day this week and it’s been pretty amazing. We’re helping our clients. We’re actually going to be co-wholesaling with them, if they want. We’ll actually work leads with them and it’s pretty awesome. So we’re trying to change the game. If you’re interested in getting into kind of the culture that we’re building and it’s kind of, no we talk about no lead left behind. I’m talking about no client left behind. Right. Everyone’s going to do deals. It’s a six-month program and it’s going to be what you need to get to that next level. And I’m pretty, pretty excited about it. My one-to-one people are in it and they like this format, its a game changer. So I don’t think anyone is offering it. Anyone is doing anything like it. And again, I feel like I’m pitching because I kind of am. But I’m going to be putting this out there because I’m passionate and the feedback I’m getting from clients and come and test it, come and see. And here’s the other thing. Like I’m going to be doing if you sign up and within the first week, if you think that that’s nonsense, I’ll give you a seven day. And you’re right. Join us for a week. And if it’s no good, I’ll write you a check back out. No problem. But I think your investment that you put in to what you’re going to get out is crazy. So check it out. Go to REInetwork.com/join, REInetwork.com/join. Let’s get on the phone. At least have a conversation. Yeah, I’m, I’m pretty excited about that. So make sure, make sure you do that. And we’re going to teach you everything about wholesale. I’m very active in the group answering all your questions and yeah, it’s pretty awesome. So anyway, we’re driving back. It’s getting a little dark. If you watched me on YouTube and Gabe’s holding the camera here and his hands are shaking, so we’ve had to get done. I appreciate you all. Make sure you give us a like and subscribe. Hopefully you got some good information from me. If anything, I said that you have questions. I’ll put it in the comments. I will personally be in there answering them. And yeah, I just want to say thank you. I’m going to be trying to get out more. We can make sure you follow me on social media. Everyone have a great rest of your day when you listen to this. Otherwise have a great year. All right. Thanks, guys. 

 

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