Hey Everyone On Episode #17 We will be talking about wholesaling and my experiences so far. We will be doing a Q&A session as we go like we usually do, but I will also break down how I JV (Joint Venture) My deals. we will go over the contracts needed as well. Also How I started my buyers list.
This is for everyone out there who want to know about Metro Detroit Off Market real estate. We will be interviewing people every week and taking questions from everyone in the comments or they can come on video with us. we will post the link in the chat when the LIVE starts for those who want to come on video with us.
If you want to JV with me on any deals in Metro Detroit market Contact me though
E-Mail: RandyBuysHousesMi@gmail.com
Phone: (586) 307-4765
Join our free Facebook Group
www.facebook.com/groups/metrodetroitoffmarketrealestate/
www.RandyStedwell.com
www.YouTube.com/@randystedwell
www.instagram.com/RandyStedwell
www.twitter.com/RandyStedwell
Hey everybody out there on YouTube land guess who is back for another episode
episode 17 right here either on YouTube and on our website on our Facebook page
Metro Detroit off-market Real Estate Group listen you know I've been looking
forward to this one for a little bit because I didn't really have somebody coming on with me so I'm like you know
what I'm gonna create my own I'm gonna I'm gonna create my own and I'm gonna try to teach
wholesaling to you guys out there see what we can do but I have an extra bonus for you
a huge bonus my man Khalif Williams is
gonna join me on here not only am I going to tell you my process and what I do
but then he's gonna follow up with what he does and how he works so that way now
you get two different perspectives so you know I'm here trying to give as much value as possible to all you so if
you haven't already subscribe to the channel the YouTube channel if you can go over the YouTube If you're not
watching from there watch from YouTube and I will go from there so without
further Ado Khalif how you doing my man I'm awesome I switched my audio settings
am I coming through clear yeah you're coming here Crystal Clear perfect
glad to be here awesome so now we're in metro Detroit off-market Real Estate Group and
he obviously from his background you can kind of see he is actually the admin of
Metro Detroit MI off Market deals there you go oh oh oh oh oh
all right so if you haven't subscribed to his group please go over and hit up
his group it is very valuable so with you know with all that like how
you doing Khalif by the way I'm doing awesome man I I'm
reevaluating Reinventing I think we're all kind of experiencing the same things in the
marketplace oh yeah so just get in even more creative
I mean the the thing is and always has been is building relationships man and that's how I've been getting things done
the second quarter massively is is building relationships nurturing them and putting
stuff together most definitely so with that like what we're gonna do is I all right all right
so I got a PowerPoint presentation that I'm gonna present and it just go it's
bullet points it kind of went too much into detail but I put this together last minute before I was gonna I was just
gonna kind of go off the cuff here and there and I'm like well you know what maybe I'll do a little bit of structure to it
you know they're that way we can kind of keep things moving now if you have
questions please do put them in the chat all right put them in the chat and off
to the side we'll be able to answer them as much as possible is that your little one right there
ah you're muted say hi to everybody what's up no okay now
all right so got a special appearance from The Princess right there so
all right oh yeah so yeah see she even agrees the manager
you agree oh so
bye bye bye bye bye bye
so what I'm gonna do here is I'm gonna go off for everybody here we're gonna
start off with you know first off how do we how do we wholesale real estate this
is a big question everybody's going into it everybody's getting into wholesaling real estate
you know so with with the times right now especially with so many people
sitting here saying you can get in a horse you can do this with zero money down and zero this and
zero that I'm not here sitting here claiming that but at the same point you know you
can't it's gonna take work this is not a get rich quick scheme none of that you
know I'll buy
she is cute she is cute
so so how is zero money how is zero money
down in getting a house yeah I didn't say that I never said
that I'm not I'm not claiming of that saying other people think that and I
don't think that that is you know what I've heard is people saying zero money down for wholesaling
and for put zero money in for wholesaling either way you still gotta Market you you still have time and
you're still gonna have to Market you're still gonna have to put a little bit of money into it
you know things like that but it's a lot lower barrier of Entry than actually
buying the house or getting a loan and putting 20 down or putting three percent down or whatever the case may be so
with that let's see sorry alright so what do we expect to learn from
here I I'm we're gonna try to sit here and go through this
as fast as possible that way if we have time for any questions but basically how to find
deals and we'll go into the different ways inbound marketing versus outbound you know inexpensive ways to Market
as well or yeah what what to do
with a lead once you get it okay how to talk to the seller all right how to
get the price out of them and you know finding out the reasons why all
right finding out their why and setting up appointments or you know
or a time to call them back and the reason I put that there is because there's a lot of people that do virtual
wholesaling so also how to figure out your offer you
know running comps a lot of this I'm not gonna there's a I don't have enough time to go over everything I'm gonna try to
do the cliff notes of everything and then you know at the end if you do want to do a
one-on-one session with me by all means you know usually I do charge for it
but if we're if we record it I'm offering it for free for a limited time
okay depending on my schedule I'll talk about that at the end I also you
know how do you know how do you know what buyers were going to pay I also
what's important for the market every Market's a little bit different and you
know I.E brick versus frame houses in Detroit you know that's a good example
running the numbers for multiple situations there's fix and flips buy and holds and then just buying it
creatively as well you know finding out what the buyers want as far as the return on investment
and here's a this is a golden nugget right here is what are via VIP buyers and how
to get them okay huge
you know also we're going to learn what to do when you have the seller and the buyer okay how do you find a good
title company how do you talk to a title company you know the process on what you
should tell the seller and the buyer okay and here's the most important getting
paid Hallelujah right there getting paid who wants to get paid everyone wants to get
paid all right so how do you get paid creating the relationships and then
afterwards what's next I think this this ending is honestly the
most important for creating the business period what do you think Khalif
100 percent oh yeah
see she agrees too right there 100 percent awesome so we're gonna start off with
how to find the deals oh my God so cute so how to find the deals now again ask
questions in the comments I'd love to hear feedback from everybody okay love
to hear feedback just like just like police daughter there is waving towards it right that come come wave towards me
all right ask your questions all right so different ways to Market
everyone has different and each one of these costs differently all right some
of them are more expensive than others kind of go from there cold calling text
blasting PPC which stands for pay-per-click driving for dollars
creative creating a website for SEO purposes networking on market and agent
Outreach all right so with that agent Outreach I mean right
now I'll tell you what I do is I cold call and I Network okay I cold call Network
and we're also in the process right now of creating the website but
right now it's mainly cold calling we haven't gotten into text blasting
I've tried it before not to say I'm not opposed to trying it again but right now we're just cold calling
so we're doing outbound marketing I eventually want to get to where there's more lucrative deals
which are inbound marketing and Will some of these in here we'll go over that as well but I you know as far as cold
calling goes you know it's each one of these has its own little science to get to okay so don't
think that oh I'm just I'm gonna do all of them concentrate when you're starting off concentrate on one maybe two okay or
you like a couple of these you could use in combination like driving for dollars cold calling and texting you can use
those together okay with that being said
try to concentrate on one Niche before you move on to the next
so what do you think about that Kelly I would agree with that
I put in the chat which way is the best Randy and oh yeah I'd say the one that you can
be the most consistent with that's going to be your best friend most definitely
so being more consistent is is the key
because consistency honestly that really gets you going you know what
bandit signs God you know what that is one thing I
actually have not done bandit signs but I gotta add this in here
thank you see there there are different things in here Terry Penny actually did that direct mailing I
gotta put that in there all right so those are two things those
are two things that I don't really do at the moment that's why I didn't think of this remember I created this
whole document about an hour ago okay so I apologize for if there are anything
missing and we will add them as we go by the way all right we'll add them as we
go so with that being said yes there are direct mail and abandoned
science those are two that are missing on this list but they are similar
they are those are still the bandit signs are Inc incoming and the the
direct mail is outgoing okay so let's
hear all right so in inbound marketing versus outbound Market we already talked
about the two that are missing which are the outbound are direct mail the inbound is bandit
signs okay what makes an inbound marketing versus outbound outbound means
I have to actively search for the lead I have for instance I have a a a a list
that I'm cold calling I have to actually call them in order to get the lead inbound means they're trying to call me
for an offer okay you always want to get towards the inbound because you're going
to get the more lucrative deals in but coming inbound alright
unfortunately the main reason is is they have mode they have more of a motivation
because they're going to they have actively seeked you out in
order to get an offer from you okay for instance pay per click they they had
to physically click on a button and fill out a whole form in order to get an offer so you know they're more
motivated than a regular cold call I you know going on your website SEO they
had to find your website they had to find all that net inbound is networking
the reason why I put networking as inbound is because
it cultivates all the network all the all the people you met
and now they're coming to you when you when they have a deal that they want you to
either one sell or to buy okay so that's why I called it inbound it is
a little bit of outbound as well okay Khalif what do you think networking
is inbound or outbound it definitely goes both ways
okay I think it's you know outbound in the sense that you have to get yourself
into situations opportunities to network with people
yeah but on the flip side you know you gotta make yourself as available as
you know your schedule allows for people that are quote unquote inbound letter reaching out via text or email DM
however to make sure you're again initiating
yes and responding to those those those inquiries most definitely and you know I'll on
Market I would call it outbound because you're outbounding to on Market
they're not searching you yes they have a little bit of motivation because they're out there but you have to
actively go out there and the problem with on mark is now you're fighting against actual homeowners or other
investors that are out there so you know on Market is a harder
strategy just to let you know they're people out there that like to
say that on Market is very easy and oh yeah if the numbers work they work in
some markets I'm like for instance my market here in metro Detroit even if it's on market for
a certain price and you're trying to sell it above that price you're not you're more likely not going to sell
that deal unless it's the work way too much okay way
too much so which I don't think I've even seen a deal like that so Asian
Outreach is kind of the same thing but the difference is with agent Outreach is you're the reason for agent Outreach is
you're going to go after the properties before they come on the
market okay they're get on their off Market list get those properties before they even hit okay so that that's kind of where I would reach that
inexpensive ways to Market would be Facebook Marketplace Craigslist door
knocking now I haven't done door knocking but I've heard of people doing it okay
driving for dollars okay and networking everybody thinks that driving
for dollars you need an app you need you need all this stuff the the extra
technology in order to do it you got pen you got paper write down the address
okay drive down write down that address and true people search is a free way to
skip trace it may not be the best of data but if you're looking for free ways that's one way
or you can pay the 15 12 to 15 cents per lead and actually get it skip traced
so and then also networking networking
is free okay I go to my local real estate meetups in the area and it's free to go
to them I may have to get a drink at the bar or whatever you know but that's really about it
it's free to enter into a real estate meetup on most of them anyways
go in there Network most importantly listen to what buyers are saying listen
to what they're what they're talking about okay how do you what do you do with the
lead when you get it how do you talk to a seller all right talking with a seller it's kind of its
an art all right that's why some buyers don't do it and they deal with they want to deal with
wholesalers truthfully because in in truth some people are
I hate to say it and hopefully YouTube doesn't skip that but you
know there what do you think Khalif you think some sellers are
you run into some that are are difficult but I want to
challenge you when you're following to a perspective that somebody gave me that kind of helped me oh yeah let's do it
you know especially cold calling right yep you're calling this person out
of the blue asking them from their perspective some personal information
and they have no clue who you are so there I was coached to put myself on
their side of things to make light of that and kind of bring down the the the the the chance of
bringing the out of them by kind of refusing that at first right is hey I know you have absolutely no idea who I
am and apologize for that out of the blue and let them know what you're trying
to do and what you're trying to accomplish you know and and tell them what works
for me is like hey I noticed you owe you know one two three Sesame Street what plans did you have for the place
so that just kind of disarms them and that's just a a free tip just to
let the air out of the room yep because you might run into somebody that may be interested in
selling but they may want top dollar and kinda trying to Railroad you off the phone by
asking an astronomical amount right but definitely you know hey what was
your plans for the place you know that opens up for there to be a two-way dialogue versus you kind of cold
calling and scripting them yep so and that's the thing like and
actually what I what I kind of meant by their I'm not talking about the sellers or I'm talking about
these buyers the reason why they don't market like we do and the reason why
they don't do what we do is because our buyers are sometimes
because all they want to do is do the work they want to get the lead and do the
work and I'm not saying there's nothing wrong with that they don't want to concentrate on marketing
you know they they just want to be blunt run the numbers if it works it works if it
doesn't it doesn't okay we're here to play that middle middleman
okay the middle people that way we try to figure out the problems we
come up with the solutions and then now all the buyers are doing is seeing our Solutions that's it they
don't see all the work that we put into it and if anybody out there sits there
and says that wholesalers don't work I challenge them on that 100
I really challenge them so I want to see in the chat anybody out there that is
watching right now tell me what way you Market or what way you want to Market
whether it be cold calling Direct Mail abandoned sides whether it be networking
anything like that put in the chat what way you prefer to Market I want to
hear that I want to hear how many people out there I I want to I want feedback everybody I want feedback so keep
putting in go ahead and put in the chat and we'll go from there um
this is kind of a very important thing for wholesalers is how to talk to
sellers talking with sellers is not about the numbers it's not about you
know um you know hey do you want to sell okay great I'll give you this
you know you have to build rapport you have to find out what their pain is okay
find out the reason they're they said yes that yes I'm interested in selling okay
all right and so we got we got one person Amber
Tiffany from Facebook said agent Outreach text blasting and networking
100 percent so finding out their pain and figuring out
what they're and I think this is the most important quality is do not lie
sellers will pick up on if you're lying okay be authentic with them 100 if
you're authentic that comes through they will trust you be honest
and be honest with them whether you can help them or not okay try to figure
out where and I'm gonna steal this from Pace Morby he has a huge Story look up
his story on on on this but it's called find the bunnies
okay I'm not gonna tell his story look up on on YouTube Pace Morby find the
bunnies his story on that but it's it's a hilarious story
basically find what their pain is try to see how you can help them okay and I
even talk to Sellers and I tell them hey even if you don't go with my offer
please let me know if there's any other way I can help you um and that goes a long way as well I'm
not sitting here saying use that as a tactic and expect a huge return from people on that what I'm saying is
just be genuine with people and offer to help that's all okay
be creative and see if they would be interested in any type of Creative Solutions as well okay
be with everything with a huge tick right now there's a huge thing with
creative financing and and doing land contracts whatever they may be
see if there's a creative way to make the deal happen okay
so I the next one will be you know get the
price out of it how can you get the price out of them you you talk with them about the
benefits of going with your offer versus an on Market hey Mr seller I'm out here or or the
benefits of going for us is hey you know we pay all the closing costs the
only the number that I give you there's only three things that come out of that number okay
one is any back taxes or up to the closing date of taxes coming out of that
number two any blight tickets from the city those are tickets and people don't
usually know what flight tickets are but so I explain it and I say those are tickets like you know too long of a
grass or anything like that from the city and then any water bill
okay anything anything those three things those only three things that's going to be taken out of yours we'll pay
the any any title fees close closing fees or anything like that
benefit benefit benefit okay those are benefits for our you now if they're
contemplating going on Market just say hey that's not a problem you might even be able to get more on Market it's going
to take longer okay it might take 45 to 60 days on Market
also and I you're gonna have to pay a portion of
closing costs okay on average it takes it's about anywhere from nine to eleven
percent okay in total with commissions and closing costs to sell your house
okay every area is different everything's different so you know I give them a little bit of a range and
that's the truth I'm not spewing any lies this is all true okay now
after that I come to them you also will have people going through your house
constantly you know things like that you know going through me you don't necessarily have to do that we just need
to get a contractor in there a couple times just to get our numbers going good you know things like that and we take it
as is you don't have to do anything to the property benefit benefit okay
so listen to what they're talking about
listen to what their pain is okay and then reaffirm that okay well
yeah you know what you know I I I really need to sell I want to sell the house because I want to move down to Florida
closer to family okay great we can get this done for you and we can get you know get you down
closer to your family you're repeating what they said so that they understand
what your that you're actually listening to them
now that is a huge thing because a lot of people just want to give them the
offer and go over you have to in doing this you're building rapport with them
okay now before you even give them the offer you as you're looking things up oh yeah
I saw you know down the street this one sold for x amount of dollars this one
was completely redone blah blah blah setting their expectations up okay
setting their expectations up for possibly the lower offer by
by viewing a couple comps in the neighborhood okay by listing hey you
know your your neighbor down the street you know they just sold their house it it looks almost identical to yours and
that sold for x amount of dollars and that was completely redone how much do you think you you you
would need to get it you know to get the house where that needs to be
you're getting them to talk about how much the renovation cost is and you're getting them to talk about what you need
okay you have any ideas on that Khalif
a no that that was good especially when you have somebody that's
kind of not in the the same Stratosphere as you as far as asking price is you know you got to put on your education
hat uh 100 and welcome down the path to how you got to your number just again to be
authentic with them and being genuine is that hey you know I'm in this to help you
and in that I am looking to make profit for myself
and here are the Bare Bones numbers and how I got to where I got so again you're not just
yeah being that the hammer right and just throwing a number at them and call me if that works
100 yeah don't be afraid to tell people hey I'm in here to make money people
know that you know unfortunately that that's how it is
so finding out their reason why I I've I I've already hit this before but we're
gonna say it again because this is the most important if they you know find everyone has a reason why they want to
sell okay everyone does if they do not have a reason they're not
motivated to sell and put them up in a follow-up situation put them in a follow-up lead okay
all right find a solution to help their situation okay whether it be back taxes
hey we need you need to close in two weeks you know what let's try to make that happen
all right but in doing that the price has to be lower so we can easily get rid
of it like that keep that in mind okay so
let's see here all right once you get all that information
I still haven't told you to give them the offer yet because you don't know the true
condition now a lot of virtual wholesalers out there will give them an
offer right off the bat first thing based off of what they say and I'm not
saying that's wrong and I'm not saying that's right everyone has a different way of doing
things that's not the way I do things sometimes what I do is I give them a rough ballpark to make sure it's worth
actually going out to the appointment sometimes that works and sometimes it doesn't okay
but what I want to do is either if I'm doing it virtual I will call back to
possibly even get some photo or I'll set up where they can send me some photos okay to give me a rough idea to make you
know things like that and then get them an offer or if I'm not doing virtual if I'm local I set up a time to go see
to actually have an appointment with them okay setting up the appointment
is actually very important because you get H you get the chance to meet them
face to face people people will trust people they can physically go there and
touch they will trust you more if you're in person okay not saying virtual is bad
by any means everyone has their own process okay and within virtual everyone
has their own process of getting photos people can build rapport just over the
phone by all means it's not I build rapport over the phone but
being virtual is not a situation that I have at this moment doesn't mean I
won't change that establishing a renovation costs
so after you go set the appointment based on what they say or whatever
establish a renovation cost uh everyone has their own renovation costs we will
be coming out with a
we will be coming out with a Excel spreadsheet that that you'd be able to
purchase and we might give it away a few times uh of a it's called a calculator
it's a deal calculator and we'll have a rough estimate of uh
estimation rough estimate of uh renovation costs in there
based on square footage whether it be medium heavy or light rehab okay
uh be very careful on that this is where experience comes in
handy okay if you want to hear see a a deal
calculator us offer it by all means reach out uh
you know put in the chat let us know you know we're working on the deal calculator right now so
you know I'm trying to make sure that whatever we put out is going to be the best for everybody all right
you know Khalif how do you establish a rental cost
I guess there's kind of two ways I do it the first way is ultimately on the
seller side is when I'm talking to them and getting a feel
for what you know they want for the property what their idea of the rental cost is because sometimes
that's the reason why they wanted to sell it as is right they got a quote for the work needed and they can tell you exactly to the T
how much is needed on the back side of that is you know your buyers are going to be different
based on their exit strategy being either a hold or a flip
as well as how high end of a renovation costs
they're going to incur flipping the property so
on the front end it's it's definitely not imperative to have it down to an exact science
you just want to have a ballpark because even you know newer wholesalers get caught up in the weeds
with not taking action because of they don't know you know repair cost
wise what to do yep so a good thing is I mean honestly in
my opinion is getting in there meeting with the seller getting good pictures getting video
then at that point you can come back to the lab and again with your network
trying to reach out to somebody that's a little more seasoned than you or there's apps out here like Angie's
lists and things like that where um there's contractors and things of that nature that can help you out with
figuring out those numbers sometimes they'll they'll even come to the appointment with you to give you a free quote
um to figure that out so I guess I say all that to say the most important part on figuring out renovation costs is
getting that appointment and getting in there yep um because you can always Circle back around
um and even sometimes it's a negotiating tactic if you have no idea and you may lock that up too high
because now you've had somebody walk through let you know what's it going to cost to put it together and kind of have
that meeting in the minds with the seller and that's actually one important thing is is that you know dealing with
experience and then also dealing with your buyers say you did lock it up too high and you think the renovation cost
is going to be 20 grand and you tell your buyer your buyer comes to you and
just they they don't give you an offer or they just blatantly lose they
blatantly just don't answer you what I would do and what I've I've done this in the past is I say hey I
understand this my deal might not be a good fit for you but tell me why tell me is it the renovation cost is it you know
what what do you expect the renovation cost to be on this project
and you know what would you what price would make it
work for you and if that would be something if that's the only hiccup for you
and by listening to that feedback and by listening to enough of that
that is what will make you a better wholesaler that is what makes you better on the next deal as well and helps you
maybe if you have an offer from this guy who says you know what you put it out
there at 50K and you estimate the budget of 15 or 20K
for a renovation they come back and say this is going to be a 40K renovation all day long this
would be a deal for me at like 40 okay
you know so now what can you do you can go back
say if I can get this down to 40 for you okay
and say you've got it locked up for 40. all right and you're trying to sell it for 50.
now you can go back to the seller get a price reduction and say if we give you if I if you give
me this price reduction we'll close in however long your buyer
just told you you can close it a week two days three days four days okay
whatever the whatever the case may be now you might not make as much as you
wanted to make say you had a 10K spread and that just ate up all your 10K but now you got to go for a price reduction
and now you'd only make 5K well guess what 5K and a fast closing a guaranteed
closing is better than nothing you know so that's the way I I've done
that with some deals where I'm not putting it out a second time I listen to my buyers who came through and walked
through it so that's where you need to make sure
you communicate with your buyers and don't just blow them off when when they say sorry is it the price is too
high you know so with that
how to run comps I'm going to tell you I could do a whole episode on how to run comps all right a whole episode
it's an art it's a it's a skill in an art form it really is okay in Detroit is
in my opinion Detroit is probably one of the hardest cities to run comps in
what do you think Cleve yeah it can be a challenge if you're not in
you know I guess the to split it up you have your wholesale zones
your rehab in your prehab zones and then you have you know the war zones
when you get down into the war zones they may be easier to comp because
all the houses are selling for pretty much next to nothing
that's why you want to stay out of that's why it's labeled the war zones when you get into your wholesale
zones it's a little bit more challenging because just this part of the Midwest
especially Detroit is heavy on the rental side yes so you may get into a area where you
can't find any Soul comparables because a lot of the homes are either rentals or
it's a block of homeowners you know that have been there forever yeah so it's tough it's tough to comp
them out in Detroit so to your point it is more
of an art from just experience of being in the field and again you know leaning on your buyers that you find that buy in
that area to see what they're paying for them and that's the motion thing most important thing is talking to your
buyers trying to figure out what they're paying okay in the suburbs you can start
off with a half a mile out and don't cross major roads or anything like that
your normal comping videos out there if you look back in the beginning of the
year one of the First videos or actually one of the last videos we did at the end of last year on my YouTube channel is we
actually did a comping video into for Detroit and the Metro Detroit area by all means go back look at it we'll do
another one later on but it is it will help you at least in that area and
if you don't know how much reach out to your network for instance you can reach out to me you can reach out to Khalif
and say hey what do you think this house will go for this is the condition this is you know
blah blah blah you know they're looking to get this I'll tell you what I think I could we
could sell it for and you know what you should get us you know under contract for but the thing is
is that if you come to me and you ask me that and then you say you got under contract
where I think I could sell it for and you want to sell it for more I'm probably going to tell you to kick
rocks no offense it's just you didn't listen you know I get that all the time what do
you mean you get that too Khalif yeah and I I think that's just
a fear piece which comes to bite you in the butt because you tell you know
somebody gives you actually your opinion and say hey I think we can sell this for
40 to 50K right 50k being a a a long
shot and they go back to the seller starting low and then are so scared to
to lose the potential deal they offer on the far end of the spectrum and then come back to you hey I
gotta locked it up but it's like you got locked up for where I said we can move it at so exactly ultimately you
you're going to spin your wheels trying to move it because we've already figured what it was so for and then you're going
back to the seller anyway to try to get a reduction so you know I was taught I Can't Remember by who but
you know it's kind of have the mind frame to always be closing but always be willing to walk
away if the numbers don't make sense because in the long run you just end up spending more time not getting it locked
up for the right price and you know you wear out buyers
because you know you're taking them through a property where you know it's priced too high and you're
wearing the seller out because you know you're promising them X number when you know that's a long shot where you should
you know be truthful with them at the number that makes sense that you know you can
execute what you said quickly efficiently you know get the house off of their hands and get them a check
instead of you know eating up essentially that due diligence period just to come back to them you know let
them know that you may need to go another Direction oh 100 and that's the thing that I see a
lot is people get through here and they just they're afraid to walk
away okay they're afraid that this you know I got this great lead and it you
know what I just don't want to let it go but you're not going to close it
so you're going to put in all this work and it's not going to happen or you're going to make very very little money
okay and I get that you want to push it and push it but you have to stick to the
numbers okay as soon as you try to push it above and and I've been kicked in the
butt before on this so many times where I tried to push it you know what I think
I can try to push it for this it just doesn't work out you know
you have to look at you know what is working in the neighborhood what is not
working you you really do because thing is is that you can't
I hopium is not a good business strategy period
you don't want to run a business on hopium okay and if you don't know what hopium
is by all means ask me I'll I'll tell you all day long because
I spent my 20s in hopium and I got nowhere
so I'm gonna tell you opium does not work period all right you have to stick
to the numbers as a business person you have to stick to the numbers all right
you know with that look you have to look at properties that are like so
similar similar products for instance brick versus brick houses frame versus
frame houses Bungalow versus Bungalow if you can all right
um same same you know same style houses
you know two-store you can't take a two-story versus a bungalow like it just doesn't really work so you have to do
light for like and then you can't do a new build versus a 1930s house okay
it just doesn't work same style house all right
it's all Basics by all means I'm happy to go into it in later videos
um also let me know in the comments whether you want more of those videos I I'll try to try to make them
how do you know what buyers will pay it's simple
ask them okay but I get a even less simpler way then
all right even more complicated way but you look in the neighborhood
and look in the neighborhood and look for cash buyers in that neighborhood
okay see what cash buyers are paying all right not only what cash buyers are
paying you can tell when somebody's buying a lower in the neighborhood you can tell when someone bought a fix and
flipper okay so see what those people are buying those fix and flippers you
you just saw one uh you know down the street that's a fix and flipper that
just sold for you and that's your comp look to see what that fix and flipper bought it for
okay see how much work he is a similar amount of work he had to put into it
guess what you at least got a neighborhood of a price a ballpark
all right then do your numbers backwards network with Buyers at real estate
meetups talk with them see what they're doing
this is not if you have a huge ego and just want to boost yourself and
boost yourself and yeah I'm doing this and I'm doing that um
by all means this is not the thing for you you have to learn to listen to people okay if you
don't you're not going to go very far
know what's important in your Market I know in Detroit brick is important
but as soon as I get out to the suburbs it becomes less important
okay keep that in mind every Market is a little bit different
all right some people you know find it in certain markets duplexes are more important than
anything else they they get a higher premium okay
look for patterns in the neighborhoods and I so I'm trying to make this as generalized as possible so
it's not just for Metro Detroit I'm using us as example because this is the
market that I work in police Works in okay but this will work in any Market
out there you have to look for all of this in all the other markets I don't know I got a 855 number calling me just
keeps calling me that's crazy anyways talk with your buyers listen to their
buying criteria if you talk to enough buyers and listen to enough their their criteria is going
to be very similar okay know the market by getting getting in
there and doing deals okay learn how how do you how do you learn anything by
diving in you don't keep analyzing analyzing analyzing you're that's you're never
going to know how to do a deal if you just keep analyzing
you have to sometimes Dive In I've locked up deals too high and had to
let deals go because of that and I've learned from every single deal that I've done and every single day deal that I've
not done because of that what I mean by that deal that I haven't done or I mean the deals that I had to let go because I
had them priced too high because I was working on those hopium I you know what I I hope a buyer can
pay this much for it you have to understand you're not here to sell buyers on one deal
okay you're here to sell buyers on multiple deals that you want the buyers
to come seek you out because you have the good deals not because you got one
over on them so if you got one over on them guess
who's not coming back to you they're not going to make money once once they figure out they're not going
to make money they're not going to buy another deal from you what do you think about that Khalif
a yeah that's the I'd agree with that especially when you get to doing this
long enough and you are focused on building your
buyers list ultimately you you can probably attest to this Randy you you do you
essentially do or offload your deals to the same handful of buyers
not for any reason other than they know what they want they're willing to give you a number and
they'll close quickly yes and and those those become your
VIPs I hope I'm not jumping ahead or anything a little bit but that's all right
it's all right we can talk about it yeah and they're they're the ones that are they're gonna be valuable to you
for this reason and it makes your job a lot easier because now you're not
spending your wheels casting a super wide net on a whole bunch of different marketing channels you're just looking
exactly for the deals that these guys want because you know if you find them they're gonna buy them
correct so so again I guess just getting and I'm me
and Randy talked about this offline is I'm in focus and more so nurturing my
buyer relationships to know exactly what they want if I do send them something they don't
want you know apologize and take that opportunity to have a meeting or a conversation with them to hone in on
what they do want so that again you're being efficient with your time because at the end of the day you're a marketer
and everybody doesn't want your product so stop wasting your time if that's all
you have or wasting your money if you have a little bit more of that to expedite things on
you know producing a product that you don't have a buyer that wants it most definitely
so I had you know what this movie I'm not even gonna attempt to say the
name moose yeah I I'm gonna put I'd butcher that name and I apologize for that but I want
to answer their questions says Hey guys thank you for the info do you have experience with wholesaling seller
finance slash land contract deals more specifically how would you come out the
future value to know if it's a good deal Okay so
I'll get my answer and then I'll have Khalif give his answer okay in my opinion
you don't you don't put out the future what happens is with a seller finance
deal or a land contract it's all about the cash flow
if it cash flows okay price is the now the last thing that I have to worry
about then the main thing that I'm worrying about with with land contract or seller finance is actually whether
cash flows and whether it makes the my buyer money every month okay look at
their cash on cash return okay so now how am I going to be able to
put my my fee on that that fee goes through the down payment okay if the
if the seller wants 25 Grand down and I want to put 10 grand on top of that
now I will my buyer pay 35 Grand down on a house
okay will that work maybe maybe not maybe you gotta talk to
the seller and try to get a lower down payment so you can get actually get paid so
that's my opinion every every situation is different but the main key
is Cash flowing does it cashflow what do you think about that cliff
yeah I mean I think I would say the exact same thing on your end
cash flow meaning on a hold perspective yep but you got the the flip
perspective too is the the cash on cash return so on the flip you're not
worrying so much about cash flow you're worrying about if you got to put this 25 or 35 Grand down
and then your repair cost and your holding cost which is you
know what it's going to cost you to actually own the property while you're flipping it yep if
putting that all together with paying off the if it's a
mortgage that the seller's leaving in place or if it's a land contract once
you have your proceeds from the flip if that makes sense yes so that's another piece of it too so
I mean I don't think I get what you mean by Future Value but I mean if we were realistically able to
tell that we would be having a very different talk tonight if we can be sitting in the
Bahamas right now I'll tell you that right now for sure for sure now another thing is that it brings up is also
a lot of people this is what they forget to do even on the seller finance you
have to look at the updated taxes okay because this person probably didn't
bought it back in 1990s or early 2000s and
they've had it for so long well guess what now when you buy it even doing a
land contract it uncaps the taxes and you have to look at the new taxes okay
you have to look at all of that all right so with that being said always run
your numbers with the updated taxes and updated insurance everything all right
make sure you run your numbers properly all right
so that answers their question there all
right wanted to how you run your numbers on a
Fix and Flip and hold I'm gonna quickly do this there's so many videos out there on this on a flick Fix and Flip it's ARV
times 70 minus repairs minus whole fail fee wholesale fee equals your maximum
allowable offer you're buying hold is your potential income okay minus your expenses
times 12 for 12 months equals your net income then you have to take that
and you divide it by purchase price closing costs and renovation costs all
added up okay that equals your cash on cash return Buy and Hold that is the number
for k for a Buy and Hold investor is what is their cash on cash return I'll give you an example in Detroit they need
to be around 18 percent 18 to 20 percent the reason me is
there's a lot it's a lot riskier area okay you go in the suburbs of Detroit
usually they're okay with 10 to 12 percent okay so may the main reason for that is
because in Detroit you're not going to get as much appreciation okay your your
income is coming from that cash flow the cash on cash return okay in the suburbs you're at least going to
get some of the the appreciation with it as well so that's why they'll they'll get a
lower return so that they can get it being a safer neighborhood get also a more appreciation year over year
okay sometimes the numbers don't work okay and you have to go creative
okay and you have to with creative deals
the purchase price don't really matter too much you just have to make sure that
it cash flows okay so Terry Penny says less most
definitely less alright I understand that so I think that's what
she means is just in in the suburbs there's less
period And I 100 agree with her alright so that's the reason why you know
let me I always forget when I have to go over here all right finding out what buyers want
for a as far as a return on investment ask him it goes back to the exactly what
we did ask them get to know what they pay having experience working with
them and working in the market really helps ask people other wholesalers and
you in the market that you're working if you don't know buyers JV with other
wholesalers you can always JV with me you can JV with with Khalif me and Khalif's JV done a lot of deal okay a
lot of deals okay and I JV with a lot of other people here as
well but you know that's where building relationships are important okay if you
do want a JV with me by all means give me a call my number is right here at the bottom and my emails scrolling through
the banner here okay I'm happy to work with anybody who wants to work with me
and kind of go from there so I again getting to know your buyer talk
with other wholesalers JV with other wholesalers all right here's a big one right here what are
your VIP buyers and how to get them VIP buyers we've already talked about this a little bit they are buyers that you
network with and that you trust okay these are buyers that I can go on an
appointment I can bring them with an appointment with me walking through there
we go outside they give me their number they walk away and I try to negotiate the deal okay
is that right is that I never Market that property because guess what I just got my buyer telling me exactly
what he paid for it I just need to get underneath his price I've done that many times I have a few
quite a few I have a few VIP buyers that I that I can do that with
if you are a buyer B comes a wholesaler VIP buyer okay that's how you'll get
more deals all right someone can send you someone I can
send pictures to as well and they'll give me a renovation budget they'll give me an idea what they pay for it whatever
the case may be okay you know building trust networking you
know networking with them building trust with them and so on and so forth
all right what do you think about this colleague yeah I just want to speak I guess
from the wholesaler perspective yeah with the buyers is just to
kind of bring something back around that you spoke on earlier is if we send you a
deal it's just like press right they say there's no such thing as bad price yeah
you know it doesn't hurt our feelings there's no love loss if it's not the deal for you just give us you know the
feedback that you can give us or just let us know it's not the deal for you because what we don't want to do is
you know cause ourselves to give you blindness to our deals coming
across oh 100 percent I've had I've had deals where you know I
have buyers who I send a lot of volume to don't really get any feedback and then
you know I go to open up a property and they're there through another wholesaler
and it's like I sent you this deal so now at that point you got
you know another wholesaler in between me and the seller so you could have
potentially saved yourself some money on the acquisition and you know I take some responsibility for that is we should
probably be taking the next step outside of just emailing the deals to actually personally reaching out to our buyers
but I've seen that more times than I care to count where you know I've sent
a VIP of mine a deal that they got from someone else you
know and they liked it and ended up moving forward and it could have saved them you know a couple of grand or in
some cases maybe tens of thousands of dollars because it was such a good deal that you know I initially sent out that
you know somebody was able to partner with me and and still make some money oh exactly 100 and that's the thing is
is that you have you work with these other wholesalers now when I JV with
somebody and I'm sending out to my buyers there's other wholesalers out there that will add their fee on top
okay and there's nothing wrong with that okay
but how I'm I decided that I'm running my business where I don't want to add my
fee on top I want to work with people that have direct to seller
and I want to we both put it out at the same price and
we split the fee whatever that is okay whatever we agree upon we split it whether it be 50 50 60 40
whatever the case may be okay normally a normal wholesale deal for me is we split
this fee 50-50. okay there are extenuating circumstances and
things like that but a simple fact is is that I want to advertise at the same price because I've had it in the past
and I've been screwed before where I added my fee on top
we've gone through the deal halfway through the D halfway through closing my buyer sees the original seller's
advertisement selling it for five grand less 2500 less whatever that whatever it was
and now they're upset with me they won't purchase another property with me they may close on this because they want
the deal but they won't purchase another property for me so I've made it a point in my business
practice to do that I'm not saying that putting adding your
fee on top is not good because I tell other wholesalers to do that when I do my advertising okay
I'm just now when I jv on a deal unless I have a direct buyer right there then
and there and and my buyer knows that I'm adding my fee on top
where I I'm fully transparent unless that happens I'm gonna make it a habit where we
advertise in the same thing and that's it so you have any thoughts on that
belief yeah yeah I mean it's it's kind of just like you said on
the other on the other side of things when you work with a wholesaler and that's their preferences their prices their
price and if they want to work with you they instruct you to add your fee on top
yep you know if you're confident and you can put it out there and procure a buyer
I don't think there's anything wrong with that at all just from the fact that
your buyer needs to do their due diligence on the deal and if the deal makes sense
at the price that you advertise it at it shouldn't matter
and my buyers tell me all the time you know if the deal makes sense for me at the number you send it over I don't care
what you make on it right so that's that's the kind of people you
want to deal with because at the end of the day you know this is our bread and butter this is what we're doing to feed
our families we're not trying to screw anybody or anything of that nature we're just trying to put deals out there
and if it works it works if it doesn't it doesn't exactly there'll always be you know
there'll always be more deals just to your point I've had that same situation happen you know I've had deals
where I've been instructed put my fee on top and you know there's no way to prove it but my marketing at a higher price
might have procured a buyer to that wholesaler initially at a lower price so
you can't get caught up in the messy middle it's just you know volume moving on to the the next one if this
one doesn't work or you know celebrating this one working and still moving on to to try to get the next one done
yep 100 and that's where developing these relationships help so
again you know let's move on a little bit we're gonna go to how to find a good
title company real quick I'm gonna move pretty a little bit faster just because we're running out of time here how to find a good Tire
Company ask other wholesalers ask your buyers Network at the real estate
meetups and then just try them try them on a deal see how they are oh
you don't like them you don't like how they did this or whatever maybe it was just that deal try another one see how
they are okay you know how to talk to them ask them do
they do assignment of contracts that's huge it's most important okay
do they work with other whole with wholesalers okay if they don't even know what a wholesaler is
or what an assignment contract is move on okay
it's not your title company they have to be investor friendly okay
you know and then folk just ask them what's the process to start trying to work
90 of the time is all through email 99 of the time
okay the process yeah the process of
what should I tell the seller and the buyer okay
so here is you're in the middle you got your buyer over here your seller over here
okay you can't put them together because the seller you don't want the seller knowing what the buyer is buying
it for or anything like that in most cases anyways
so you just keep each one updated on the process make sure the buyer
sends in their EMD deposit because even though you don't you you may or may not
require a EMD with the seller you better require a EMD with your buyer
okay follow up with the title company to make sure you're the they deposit the EMD okay earnest money deposit that's
what EMD stands for if you don't know ask the buyer on how much of a notice
they need from the title company for a closing date all right
so we're going to go through this whole process if they're using hard money if they're using whatever the case may be
you're going to get everybody on the email chain you're not going to put the seller on the email chain
okay but you put the buyer in there because the buyer knows everything and you're the only link to the seller okay
so you're going to do the closing date you're going to do all that at the title company asks for the seller's
information that's perfectly fine they will reach out to the seller on a separate email with you okay have make
sure they include you on that email all right most importantly keep the seller updated
in the process most people this is what happens they get the signed contract
now I gotta go find a buyer and here's the seller over here like hey
hi we signed this contract I I haven't heard from you in a week two weeks three
weeks are we closing no I don't know tell me what what's
going on now they're getting hit up from other wholesalers because you're marketing this and you got some bad wholesalers who's
trying to go behind your back to get to give them a higher offer okay
and they for now you get yourself into a situation
I say it is a situation because there's ways to get around that but the thing is is that you as long as you build good
rapport with that seller okay and you keep them updated in the process
they're not going to listen to anybody else I'm going to tell you that right now
they will actually tell you when somebody calls them with another offer
so just keep that in mind all right so most important is keep the seller
update on the process you have to do that make sure the seller sees the
seller closing documents and not the buyer closing documents
there is a difference the seller closing documents will not have the assignment fee in there the buyer closing documents
will okay so it'll be a there's a seller statement and a buyer statement and the
buyer statement is where you'll see your fee the seller statement they will not and
you have to make sure a good title company will know to do that okay
you got any any ideas about that no no that's that's good practice to
make sure they're updated and make sure that you send them the right statement and they'll get you know to review that
important piece on the seller reviewing it is it's going to be preliminary
but they're going to have an idea on what they're going to be walking away on closing day
there's been some instances where documents for whatever reason don't get produced until you're signing and then
you have lights or you have back taxes or water
pads six thousand eight thousand plus water bills which you know each the the
seller's proceeds up I've had instances where that caused the seller to have to come to closing with money so
that's a good practice to make sure the seller sees that well in advance before closing so you know the deal
doesn't blow up at the closing table 100 so
now here's another thing is getting this is we're almost to the end you guys we really are we're almost to the end
when you say Getty when you see that getting paid here that's the end I'm going to tell you that getting paid how
do you get paid the title company should pay you either by check or wire the
amount your assignment fee is okay whatever is stated in that HUD statement okay well they don't call them HUD
statements they call them just statements now but whatever is in that statement for you all right
we're in Michigan we're a title State okay every other state there's other
states that are in an attorney state it's very similar the process is very similar I haven't dealt with an attorney
State before so I can't really comment on that too much but I I know the
process is very similar as title all right as a title company so this is something that I I always
have to make sure I follow up with the title company title companies are slow they are busy they're very busy they
have multiple closing per day I have to constantly follow up with them to make sure hey did this get funding
when are you are you sending out this or this and that I have to always follow up I've never
not once not gotten paid I just have to follow up because everybody's busy especially when you
come to a holiday closing our closing that's just before a holiday it's crazy okay
because I am not at the closing table okay where
everyone's signing everyone you know I have to make sure that everything is
funded and can by communicating with the title company okay we've had issues like
that before to make sure sometimes it's delayed the closing by a day or two okay you have to always make sure
by doing this you're creating the relationships title companies will want
to create a relationship with you as a wholesaler because you do multiple deals
okay you bring them business period so you're going to be a great asset to
them all right by doing this deal you've now created a relationship with the title company
you've created a relationship with the buyer you even create a relationship with a seller first like well you just
the seller just sold you their house what kind of relationship does that create
you know how many sellers have multiple homes you know how many sellers have multiple
have friends that are looking to sell their home or invest other investors that they work
with hey you want to go to this guy over here you know he I just worked with him he made it as smooth as can be
okay remember you're not there to do only one deal you're there to you're there to
create a business to do many more deals it's just as simple as that
now what's next following up following up with the upcoming leads
okay but don't forget about the people that you left that you networked within
in the past don't feel don't forget about your follow-ups okay
I get I get probably 90 of my deals from follow-ups okay from following up with people
constantly okay you never know when a lead is gonna just fall on your lap
okay just because you have a relationship with that person okay uh
with someone that you've already did a deal with I've had people come out of blue call me up and hey I got this deal
you know what I just bought it but you know what I I don't have the funds to get rid of it
uh at the moment I just want to get rid of it you know this is what I paid is
what I'm looking to get rid of it for blah blah blah so on and so forth I've had I've had other buyers do that
all right people do business with people they know and trust that's it
this goes for sellers buyers everything okay
and lastly rinse and repeat
rinse and repeat we're here to make a business not one deal
okay if there's any questions please put them in the chat I know we've been going for
a long time let me know what questions you have if you're not on the live put them in
the chat and I'll answer them later on by all means if you stayed here for I
know this is an hour and 21 minutes it's crazy you know and then this is all our social media
now I will say we are I'm I'm working on my website at the
moment and I'm working on a on a section for it for our podcast where this will
be it will be right on our home it it helps a lot
if you go there take a look at it things like that but we're also working on a part where we're going to be get
giving away either free or contracts or you can purchase the contract or when
we do the deal analyzer and we'll be able to do that as well where you can that's a place where you're going to be
able to purchase the deal analyzer that we're going to be making so
randystadwell.com you know that's where all this is I'll show it to you real quick on our
on here
there we go and
hold on
so randystudwell.com this is the the website here podcast if
you want to join Venture with me click on the joint venture link click on this link right here what it will do is it'll
take you to this form that you fill out and as
soon as you hit submit it goes to my Podio it goes to my and I will reach out
to you as soon as you as soon as you as soon as I can and we can take it from there
so if you want a joint venture with me click on that click over here if you want us to buy your property if
you are the owner you can use this form or just click on the joint venture form still click on that as well either way
works for me you know go check out our website this will be the the home page here
which is for our podcast we try to get them updated as fast as possible
I've been working on these I have the transcripts down here for what we say
I'm doing a lot a lot of that's for SEO purposes so
and we only put part one in the video and then you can click on here for the longer form video click on the title so
by all means you know let me know what you think I'm happy to hear feedback and
kind of go from there so we'll check that out
that's it Khalif what'd you think about today no that was awesome
I just got one point yeah bring it on and help me out yes just on getting paid man
a line I've been using probably the last two years now is
you know at closing after everything's done I pull the seller to the side and I ask them hey do
you know how I bought your property and they're like yeah I have no idea
well the last house I bought seller made a nice chunk of change and didn't know what to do with it and they
became a private lender and they lended me money from their proceeds to buy your house would you
like to do the same and you'll be surprised man a lot of
people want to get into real estate and have no idea what to do and you just literally were the expert they dealt with in this
so don't don't let that opportunity pass you by to
again you know funding is hard to come by especially if your Ducks aren't in a
row as far as credit and having cash in hand for down payments and stuff to utilize these folks as private lenders
because you obviously know what the hell you're doing and if you can show them how they have some money that if they
don't have a plan for you know they're gonna blow it yes to show them how to to get a cash
on cash return and you know you have a couple of those to repeatedly call up
anytime you have a deal it's a great way to get some private money you're able to set your own terms to create
you know a win-win for yourself and you know your seller turned private lender so that's just one thing I wanted to to
put out there because a lot of people always hit me up for hard money lenders and private money lenders
that's how I I choose to get them just because you want to you know set your terms you don't want that person to
be in the business so much where they're dictating what you're doing you just want somebody that's hands off that just want to return on their money that's the
The best way to get it is to build that relationship 100%.
so build that relationship and if you don't ask you don't know
what's the worst thing that they can do is say no and that's just the same as you not
even asking in the first place exactly exactly so the way I see it is the worst
thing they can do is say no so why not ask yep all right so 100 I really appreciate
you Khalif coming out here with me um yeah everyone out there out here in
YouTube land you know please let you know this is
this is is really good it's really good so Marvin Marvin asks like PL tip I
don't know what PL tip means so private Linder private lender tip
okay yes private lender tip 100 awesome yeah that was really really good so
um yeah that was it it is really good um
by all means if you don't know if you don't ask the questions you you don't know so
um thank you everyone out there for watching thank you for if you are
just joining or anything like that please watch the video backwards I had this great PowerPoint I put together an
hour before we had this and that was 25 slide I can't believe I got that down in
between like literally an hour so just before we had this so that's crazy
but you know I'm looking I'm going to be improving it actually and then
um through our website we are we're we're building strides man we're doing
strides you know I'm gonna do a deal analyzer we're gonna do everything that
we can to try to help out as many people as I can lastly if you want to do
a one-on-one with me please reach out to me if we record it I'm doing them for
free at the moment normally I do charge so go from there
I'm for instance I'm doing one on Wednesday I'm doing a one-on-one with
when on Wednesday through zoom and we're going to be recording as well so it it's going to be awesome I really appreciate
it Cliff one I'm gonna bring you down hold on there we'll talk talk in a minute but for everybody else
I really appreciate you coming out here you know I really appreciate you
doing this sticking with me and let's all do deals together enjoy my life thank you have a good day
see you on the next one
there was once a day that I would pray for you I'd go and misbehaved just so you notice