Latest / All The Leads Mastermind Podcast / Prospecting Cash Buyers, Structuring Investment Deals, and Estate Advance Funding | Probate Real Estate Mastermind Call #288

Transcript

Prospecting Cash Buyers, Structuring Investment Deals, and Estate Advance Funding | Probate Real Estate Mastermind Call #288 · All The Leads Mastermind Podcast

• 0:00
  Unknown Speaker: Most of my probate deals never saw MLS because the seller would sign and sign in MLS opt out, we would send it through our private buyers list and it would be under contract immediately. And I mean usually within hours.
• 0:30
  Unknown Speaker: Welcome value providing agents and investors nationwide Today is July 23 2020. And this is mastermind call number 288. Just a little bit of a few brief announcements before we get to our callers and by the way, we do have six people in the queue. If you would like to actively participate, just hit star six and then hit one. And first of all, I wanted to announce our winner of the week last week was Rosie, hire Rosie
• 1:00
  Unknown Speaker: Just been with us a little over a month she took mastery and she'd already put together three deals. So congratulations, Rosie, you are our winner of the week. And Chad, I know you have a couple quick announcements also.
• 1:13
  Unknown Speaker: Yeah, speaking of mastery, I know a lot of folks have been waiting on me. We finally got a calendar in place for the rest of the month so mastery will begin on Monday the 27th at three Eastern so it's three consecutive days monday, tuesday wednesday starting at three Eastern finishing whenever we finish
• 1:33
  Unknown Speaker: depends on how interactive the group is how long we run, and if you want to get signed up you can go to probate mastery comm or in subscriber portal, look under the education and training tab in the menu.
• 1:45
  Unknown Speaker: Everything if you weren't here last week we did announce our newest product probate plus and what this is in response to requests from you guys, you know wanting a better quality of data wanting to know more and more and more about each of the estates before you
• 2:00
  Unknown Speaker: Pick up the phone, probate plus, you'll see inside of my my probate leads in your CRM, you'll start to see some different some changes like real estate fields that you're not used to seeing if you click learn more about probate Plus, you can go learn all about it but it's basically a data augmentation that will allow you to with a higher quality data you can focus your marketing dollars and cut your campaign costs by having better data and knowing exactly which ones to go after first. So you can go to all the leads.com forward slash probate plus or click from the subscriber portal and see that action
• 2:41
  Unknown Speaker: and I think it's fair it's fair to say that that's something that you can you will not find anywhere else so it's we're real proud of it and we'd like to see as many you guys take advantage of it as possible. So let's go to our callers we now have eight in the queue. Great job guys. I didn't hardly have to bag and first up this week is
• 3:00
  Unknown Speaker: Phone number ending in 0306. I just was talking about you, Rosie.
• 3:06
  Unknown Speaker: Hi, guys. Thank you.
• 3:08
  Unknown Speaker: Very Welcome. Hello. Thank you. Thanks so much. All right. So just here wanting to talk about my last work experience. So we were able to move the client forward that we got, you know, with a minimum of we'll
• 3:24
  Unknown Speaker: successfully speak to three probate attorneys, as all of them for video calls. I think within two weeks, some of would be ready. So I'm excited about that. My question was specifically around prospecting. So I'm getting at I have around close to 597 leads in my system that we're going through.
• 3:44
  Unknown Speaker: At the same time, what I'm learning is as I was having my daily conversations with my current database, I'm letting them know that I'm a certified probate specialist to see the opportunity there. And one instance that happened last week, my hairdresser
• 4:00
  Unknown Speaker: Was my fear conversation, her mother went through probate and spent four or $5,000 where she didn't have to do any of that. Right. So I was wondering, I tried to introduce with a script that you know, very generally letting people know that I'm a probate expert is true, but I found myself explaining myself a little too much. So my question is, if I would like to introduce myself as a skilled probate specialist, my current database, what is a nice way to go about it, where it's well received and people find me as a resource, so I can nurture some leads out of my people that I already know.
• 4:34
  Unknown Speaker: Hi, my name is Rosie. I've got a team of people here and an awesome and help families going through probate and we mainly help them increase equity and lower stress.
• 4:45
  Unknown Speaker: Okay, so same thing that we're doing other people don't even explain much about it. Just go straight into things for now that's like so people don't feel talk to you say something vague and summarize it like that, right. So I'm Rosie. I hope that
• 5:00
  Unknown Speaker: I've gone through, I help families going through probate, retain more of the generational wealth and get rid of a lot of the stress. Well, what's your natural response to that? What do you mean? Or how do you do that? Or tell me more? Like so something that just a few sentences that will really beg curiosity and make them want to ask you questions. And when they start asking questions and hearing it, same with the prospect, you stay in control as a leader in the conversation, but they're asking you with my permission, please tell me more.
• 5:35
  Unknown Speaker: Tell me more. Okay, good. Good. Okay. So just introduced that one little, I got a lot of practice with this because like, my family doesn't know what I do for a living. They're like, what do you do? And I'm like, Oh, I help families go. What I just told you is like it is legitimately my own explanation.
• 5:51
  Unknown Speaker: Okay. Okay. Also, I like that. I like that. I like the gentleman on so
• 5:57
  Unknown Speaker: that's all for today. Thanks.
• 6:01
  Unknown Speaker: Bruce and I'm going to throw in that that's, that's really good if you are face to face with someone or you're having a conversation on a zoom meeting or network meeting, you can also do this exact same thing through some of your marketing with opt in. So you give people an opportunity to click through to a video or click through to a blog or something that you've done that that explains more. I love the idea of taking people that you already have in your sphere of influence your your database, and giving them additional opt in options and Chad's opt in option that he gave was the ultimate one because they verbally asked Tell me more Well, how do you do that? But if you're not face to face, maybe record a video explaining it and don't give the video away, but give the brief post away on Facebook or the brief email and say if you want to know more click here.
• 6:56
  Unknown Speaker: Absolutely, absolutely. Actually, I'm actually
• 7:00
  Unknown Speaker: I don't think I can recap what you said. But I want y'all to know, I completely understood you. Basically, you guys are saying that communicate through the video in a snippet content where a database can look at it and understand, you know, what I'm offering in addition to real estate, what my expertise is in and how I'm helping things in addition to real estate with, so I got it. I'm excited about it. I'm going to ask you a very random question. I don't think I should be the one asking because my husband handles that part of the business. But we're really trying to master the Facebook ads. And I understand it's not just boosting a post, there's a lot more to it. And they're taking some very intense training. I was planning on making that video that you guys just mentioned Bruce, and running Facebook ads with that to my current database that I have in my CRM that I'm interacting with. Would it be a good attempt in marketing or I'm just throwing some dollars or time our way?
• 7:58
  Unknown Speaker: I would look at it as a brand
• 8:00
  Unknown Speaker: In campaigns, not a marketing campaign, and in my opinion, those are two very different things. Marketing elicits a direct response. Branding builds familiarity. So as long as you don't look at it, and I expect an immediate return on those dollars, like you'll get an indirect return, because you're just browsing through your sphere of influence. But it's the cash conversion cycle on on dollars like that are usually in 112 months. So it's something that don't if you're going to do it, do it with a long term mindset. It's it's low cost. Compared to direct marketing, you can get those impressions for much lower cost. So just engage it like you with it, like you would have, say, a farming campaign, or television or something you're going to do that's a low dollar high touch over basically in perpetuity. And over time, the more people who understand what you do and how you actually affect the community, the community you're living and working in, like, you should really connect with Roger Lacey.
• 9:00
  Unknown Speaker: Roger if you're on the call,
• 9:02
  Unknown Speaker: john man but Roger is he's in Northwest Arkansas, very different market and the more you're in, but even with 30 leads a month. You know, he gets a fraction of what you get each month but he has built the core of his business is this. And it's because he knows what you're doing. He considers every conversation in addition to his sphere of influence. They go in his database he makes he makes follow up calls. So it's no surprise that he gets guardianship, divorce, probate trust, he gets he gets, he gets, he testifies in court as a real estate expert. He just has a constant,
• 9:41
  Unknown Speaker: constant flow of opportunities, because he has approached it this way for the last at least the last four years. He's been doing what you're proposing just staying in front of everybody with your message. And so if it's somebody with aging parents, or it's somebody who's going through a divorce, like if they understand
• 10:00
  Unknown Speaker: There's a woman here in town that has an entire team of people to help and family transitions like that that branding impression can be really good because when they when they or somebody close to them is in that situation, they'll only think of you. That's what I would say about it. If you're if you're marketing directly to the personal representatives as a saved audience, that's obviously I have a different opinion, that's direct marketing. But if you're just hitting your own database with it, I would just have a long term mindset.
• 10:32
  Unknown Speaker: I just wanted to maximize my return on each conversation I was having a day because in addition to probate calls, I naturally reach out to my fear of death consistently and on daily basis. But just wanted to add one more thing in it and I think it's a no you're right, Chad, that if I do go down the route of Facebook ads, my intention was to set a budget, turn it on for a whole year, build traffic to the website, that is when people look me up, they can find legitimate pain it and it comes
• 11:00
  Unknown Speaker: Little branding to enhance my results when I'm actually prospecting. So that was the intention behind it. And I'm glad that you know, you guys are letting me know that branding does take seven, eight months or nine months and not immediate return. Cool, awesome. I'm looking.
• 11:17
  Unknown Speaker: While we're on this on this topic, I want to remind you, I mean, we did talk about this and mastery, but you've you've been covering a lot of ground quickly. So I'll just remind you that every every one from your sphere of influence that does not have an estate plan should have an estate plan. And I know that statement, but they should. So while you're doing the sphere of influence calls, why not find out just say, Listen, you know, COVID has given me an opportunity to really analyze my level of service. And I'm going to step up for the rest of 2020. I'm going to do what I should have done a long time ago. I'm offering every one of my clients and even even prospects anyone in my sphere of influence gets a free hour with my
• 12:00
  Unknown Speaker: high level estate planning attorney because I've helped enough families now I don't want to see anyone I know go through this and see the expense and the stress of probate. So how would you like to have an hour with our legal team?
• 12:13
  Unknown Speaker: And the only one that says everyone that says yes, get an A, here's, here's, here's how you to monetize this. You've done your goodwill, you've also created an A plus referral. So you can open the door to a new attorney relationship. Or you can reinforce an existing attorney relationship. And with the level of discipline and tenacity that you guys approach your business, I would imagine you could probably get at least two or three referrals a month back from attorneys just by doing that on the calls you're already making.
• 12:46
  Unknown Speaker: Yes, yes. And I just want to share something of my mind would might be naive, so please take it with a grain of salt. I know. probate attorneys could be I don't know where I get the sense but probate attorneys could be hard to get hold
• 13:00
  Unknown Speaker: off or you know, open up for an interview. We, we were able to have detailed conversation with three different attorneys in one week. And what I did is I reached out to my private company, like I remember having a memory of working with metallic company and somebody had a probate issue. So I have a relationship with metallic companies who I do business with, and I asked them what probate attorney do they use when monument of the whale or something like needs to be handled, and their relationship with attorneys are different so I was able to get on their calendar quicker. So anybody out there I'm not sure what I'm saying is any true but this just worked and maybe I'm doing it the hard way. Still some happy to hear you guys out. But this estate planning Chad what you just said, this is powerful, because I think this is the true value add and I'm 100% in agreement. I'm very excited. It will be done this week.
• 13:52
  Unknown Speaker: I believe I want you guys. I want you guys to hear what she just said this is this is one of the most powerful ways to get in front of attorneys.
• 14:00
  Unknown Speaker: is through a warm referral with the with the attorney connections that you already have Real Estate Attorneys, bankruptcy, whatever they are. Deal, go to those attorneys and ask for connections with probate and Estate Attorneys. And that'll that'll open the door wide open to one on ones.
• 14:18
  Unknown Speaker: That sir, all right, Rosie, thank you so much. You know, you got off to such a strong start no pressure, but we expect three deals a week from you from now on. Come in every week and give me some cream. Oh, okay.
• 14:31
  Unknown Speaker: Thank you so much.
• 14:33
  Unknown Speaker: All right. Next up is phone number ending in 4650. You're up next. Hi, this is Michael. I'm in Atlanta, Georgia. And the property that I'd like to discuss is a single family home in Pennsylvania. The The situation is that my mother passed away recently and her estate leaves her
• 14:58
  Unknown Speaker: her property
• 15:00
  Unknown Speaker: equally divided between my brother, my sister and I. So we would each get one third of the estate, including one third of her home.
• 15:11
  Unknown Speaker: My sister has been living in that home for several years and she would like to stay there.
• 15:17
  Unknown Speaker: What I would like to know, it's probably some real basic information for you, folks. But since I'm a new investor, it's all a big mystery. If you could explain the process of how we could change title from my deceased parents to my sister, and how my sister could reimburse my brother and I eat for one third Chair of the home.
• 15:44
  Unknown Speaker: Is your sister credit worthy?
• 15:49
  Unknown Speaker: That is a good question. Nine or 10 years ago, she had a bankruptcy.
• 15:55
  Unknown Speaker: That's okay. She's seven years away. So we'll first we'll first assume
• 16:00
  Unknown Speaker: That she is credit worthy. And this case it's very easy. She will sign a purchase agreement. Who's the personal reference? Are you the administrator, or the executive? Oh, my brother, my brother, administrator. Okay, so she would sign a purchase agreement as the buyer with your brother as the executor. And then you'll close the chain of title using the death certificate letters testamentary list of errors etc. and then show on the home and then the bank will pay you and your brother at the closing table, you guys while the estates bank account will receive the cash funds. And then at the final distribution, you will show that your brother will show the court that the house was worth x. Your sister got her equity in the home and you guys have your equity and cash and the estate's bank account and that will be released to you upon the final disbursement.
• 16:53
  Unknown Speaker: If that doesn't work, if it is if she's not credit worthy, then you can still sell her the home
• 17:00
  Unknown Speaker: So the estate could sell her home with no money down 100% owner financing obviously you just subtract her equity from that from the valuation. And you guys carry first. But you your brother, could you could you could even form an entity and that entity could carry the mortgage or you could do it personally. But you guys would basically extend credit to her. if that's okay with you if you don't need the money right now.
• 17:31
  Unknown Speaker: Okay, theory and charity I heard a devious laughter does that mean that's something you don't want to do?
• 17:38
  Unknown Speaker: I don't because of my past experience with her finances.
• 17:45
  Unknown Speaker: So this is a very common situation. A lot of families find themselves in this position and for anyone listening when a family member tells you I'm putting you on the spot, sir, but when a family member tells you that all know, my sister or my cousin or uncle
• 18:00
  Unknown Speaker: Jerry is going to buy it, in my experience, and at least in southwest Virginia, about 80 to 90% of the time, they're not capable of buying it. That's why they're 60 years old. And I've never owned a home. But the family doesn't understand real estate finance. So they truly want them to have the home. But they also want what you want. You want your sister to keep that home, but you want your equity and cash today. So a lot of families will ultimately find that it's simply not an option, and they do have to sell. So if if you're if you accept that as that objection at face value, and then you go away, you might not ever get that person on the phone again. So this is one of those areas where you'll hear me say I'm not a high pressure salesperson, but I see myself as a leader in this situation. So I'm going to push on you and find out just like ask you, is your sister credit worthy, and I'm going to bring that pain to the surface and I'm going to hear that devious laugh and then I'm going to know you need to continue
• 19:00
  Unknown Speaker: is the plan because it's unlikely your sister will be able to pull this off based on what little bit of information I've heard from you so far. So I'm gonna, I'm gonna just give you every bit of service I possibly can. Because the moment she realizes she's not she's gonna have to move out of that house, you're, you're going to be the one that you're going to trust me to handle that maximize the equity. So we can get her equity now to get her into a more, you know, a suitable living situation. So
• 19:29
  Unknown Speaker: asking good questions is very important. Yeah, one thing I was gonna add, even even if she may not be, you know, she may not qualify for an FHA or conventional loan. Remember, in this situation, she's essentially putting one third down. So she's only going to get a 66% mortgage, I would suspect, you could find somebody that would finance that, you know, might be at a slightly higher interest rate. Maybe a private lender, hard money lender, not hard money. That's going to
• 20:00
  Unknown Speaker: to high but I suspect that might be doable so I'd reach out to a really good really creative mortgage broker that has multiple options and run that by him because it may be more it may be more doable than you think in this situation and if you get really stuck sell the house to an investor and let him owner finance it to her
• 20:21
  Unknown Speaker: self to find that find an investor who's doing rent to own or lease with option to purchase or owner financing there's a handful and just about every market they're not easy to find sometimes but if you can get a guy in Pennsylvania who's who's you know has cash and he's willing to buy that home as an investment and you know, do a lease with option to purchase or an owner finance deal with her then you got it all you guys get bought out and she can buy the home from the investor.
• 20:52
  Unknown Speaker: Wow, this is some great info which
• 20:55
  Unknown Speaker: which which market are you in?
• 20:58
  Unknown Speaker: The third way out? Which market are you in? Where's that?
• 21:00
  Unknown Speaker: tours that houses in Philadelphia houses in in Bucks County
• 21:05
  Unknown Speaker: like southeast Pennsylvania. It's a suburb of Philadelphia.
• 21:11
  Unknown Speaker: I have a few investors in Pennsylvania, all private. What's your name? And I'll get with you offline.
• 21:20
  Unknown Speaker: Oh, okay.
• 21:22
  Unknown Speaker: It's Michael
• 21:24
  Unknown Speaker: on cannon.
• 21:26
  Unknown Speaker: And by the way, Bruce, he's, he's in our database as a lead and I have a feeling one of our sales people might be calling him right after the call to talk about that a little bit more. He's in the database. Yeah, answer that phone and and have them connect you with me get you on my schedule. This is Bruce by the way. Bruce, okay. Yep. Very good. Okay. Thank you so much, guys. All right. Thank you, Graham. All crews we have. I want to realizing it's in Philly. If you guys need it. I actually have a friend who specializes in owner financing in the Philadelphia area.
• 22:00
  Unknown Speaker: So if you come up short, I think we've got your back.
• 22:04
  Unknown Speaker: Wonderful. Perfect. Thank you. It's been a big help. All right, glad to hear. Next up and we only have four more in the queue. We probably have room for more guys. Don't be bashful, hit star six and hit one. jump in there now, so you don't get shut out. Next up is phone number ending in 0742. You're up next.
• 22:26
  Unknown Speaker: Hey guys, I am My name is Cameron. I'm in Fresno, California love the whole probate thing.
• 22:33
  Unknown Speaker: I'm in. I'm at the end of an escrow right now. Everything has gone smoothly. And this is the first time I've worked with this attorney. And she's in San Diego. The title company is asking for copies of the notice to perform. Not knowing sorry, notice of proposed action. Sorry, another escrow
• 22:53
  Unknown Speaker: and she's saying she's swearing. It's kind of like it's kind of like adversarial at this point. But
• 23:00
  Unknown Speaker: Between the attorney and the title company. I guess my question is, I'm only familiar with probate escrows having a notice of proposed action and she's saying it's not necessarily because all other four siblings have signed off and given him full authority. So I guess my question is a notice of reduction is standard in every probate escrow, right.
• 23:24
  Unknown Speaker: So you're in one of the most complex, complicated state, your process is a little more, it's quite a bit more complex and most but if your attorney is not communicating, you can all remember you can always call the probate clerk and you know, clear up anything with them. Like kind of do your homework and then re approach the title company and like Actually, I just spoke with the clerk Jane Doe, she said X
• 23:50
  Unknown Speaker: to help them because not it is complex and some people are just, you know, we're all learning. I don't think you can ever learn everything about it.
• 23:59
  Unknown Speaker: But it's
• 24:00
  Unknown Speaker: Attorney if communication is broken down, you can rely on other attorneys or call the probate clerk to get some questions answered.
• 24:08
  Unknown Speaker: Okay, well, I'm, I mean, we're ready to close. It's just the underwriter needing this notice of proposed action which the attorney is swearing up and down is not necessary. And this title company is how to company for all my transactions.
• 24:23
  Unknown Speaker: It I don't know.
• 24:27
  Unknown Speaker: I guess I don't know what my question is at this point. But
• 24:31
  Unknown Speaker: for every sound like your question is, how do I how do I get it closed? Right. And you're in an impasse between the attorney and the title company? Is that? Yeah, yeah. Pretty much. Assuming you've already let go ahead.
• 24:45
  Unknown Speaker: I'm assuming you've already tried the direct approach with the attorney? No, I haven't. But and even early on, she asked why I mean, I always set up probate escrows.
• 24:55
  Unknown Speaker: For offers to indicate a 45 day escrow because of that 15 day period of the notice of
• 25:00
  Unknown Speaker: Post action. And that was how it all kicked off. She said, why is this escrow so long? And I was like, Well, you know, no PA. So we know we don't need she was very stern. We don't need that Who told you we needed that he has full authority? And she's I don't know. So that was my first encounter with that. And I mean, I've been through two probate escrows for this one now. And I'm on where they already are full authority.
• 25:23
  Unknown Speaker: I mean, they both had letters of administration. I didn't need court approval for either one of them.
• 25:28
  Unknown Speaker: Okay, so they both have full authority. Okay, okay. That's a little thority then. Yeah. And that went through that title company.
• 25:37
  Unknown Speaker: No company went through a no, it was last year and went through a different one.
• 25:42
  Unknown Speaker: But they've more than willingly gave up another proposed action.
• 25:49
  Unknown Speaker: Do you still have your closing documents from from one of those closings last year?
• 25:56
  Unknown Speaker: Sure, I could find them.
• 25:58
  Unknown Speaker: So if you can find your your
• 26:00
  Unknown Speaker: Your closing documents, even if you'd call the title company and say, Hey, can you send me the package on this one? And then forward that to the attorney and say, Listen, this was a full authority closing that we did with a different title company. Here's all the documentation. You know, it's I've done my job. I just need your help to finish this. And resistance isn't going to get either of us paid.
• 26:23
  Unknown Speaker: Okay, yeah.
• 26:25
  Unknown Speaker: Okay, do we want to be right or do we want to close that space? I could. I could, I could give it I can. I don't care about being right. It's but it's about her wanting to be right. You know, in her that's a question.
• 26:37
  Unknown Speaker: Yeah, I've asked that question of attorneys that want to fight before and it's happened multiple times. Attorneys want to fight they want to be right. And I've just asked that question four or five times and they never love it. But guess what, every time I've asked, they always, they always cave and they're like, yeah, we want to get paid.
• 26:56
  Unknown Speaker: And then as a thank you once this deal is done, as it's
• 27:00
  Unknown Speaker: You buy the book, ego is the enemy by Ryan Holiday, and drop it in the mail that attorney.
• 27:09
  Unknown Speaker: sure he'll appreciate that. Yes.
• 27:13
  Unknown Speaker: Right on. Thanks. All right. All right. Good luck. Let us know how it turns out. All right, next up in the queue is phone number ending in 153. You're up next.
• 27:24
  Unknown Speaker: Hey, this is Travis. Again. I saw last weekend. It was a blast. But I got one more question that I want to ask you while I'm getting hung up on for some reason for last few days.
• 27:36
  Unknown Speaker: Sure.
• 27:37
  Unknown Speaker: Okay. So my question is, someone asked, so when I made all most of my leads to PR, see have they have even here she has no one to members and the rest of them be? Again, other family members. Now when I get to that first number, the PR number she doesn't answer and I keep going down lack of good record numbers. Now, my problem the fopr don't ask
• 28:00
  Unknown Speaker: I don't get nowhere with that leads, because I really can't get past the family members. And most of them be what like the mom will be like the mom of the PR be like, oh the person prefer the old lady and the kid who decided that they don't know too much won't anybody talking to the mother protecting the family member so they I can't really get paid down. This is my hang up for some reason. The last few days.
• 28:24
  Unknown Speaker: Don't roleplay
• 28:27
  Unknown Speaker: Oh, yeah, do it.
• 28:30
  Unknown Speaker: Ring ring.
• 28:34
  Unknown Speaker: Who's the person rep near you?
• 28:37
  Unknown Speaker: You are you personally? You're the one getting the objections. So you drive the bus.
• 28:43
  Unknown Speaker: Okay.
• 28:46
  Unknown Speaker: Hey, can I speak with McKenna? No, I'm playing Travis like I'm playing. I'm out bounding this go up a random family member that's not Travis.
• 28:58
  Unknown Speaker: Okay.
• 29:00
  Unknown Speaker: So I bring ringley
• 29:02
  Unknown Speaker: Hello.
• 29:04
  Unknown Speaker: Hi, I'm trying to reach Travis Smith.
• 29:09
  Unknown Speaker: He's not available right now Who's calling?
• 29:12
  Unknown Speaker: My name is Chad. I was reaching out because we have a team here in Atlanta that help families going through probate. And we met with the clerk this week she she identified your family as one that may need some help as you're going through this process. So I was just hoping to touch base and introduce myself to Travis and see if there's any way we can help your family. Could you could you share a good number for him?
• 29:35
  Unknown Speaker: Where we were asked to arm He's my dad and he was the only town so I mean, I'm pretty sure he'll need to help that.
• 29:45
  Unknown Speaker: Yeah, it's not my family. So I don't I don't know if you've seen a little more stressed than usual.
• 29:51
  Unknown Speaker: I'm not really.
• 29:54
  Unknown Speaker: Okay. Well, I tell you what, I'll leave my number with you.
• 30:00
  Unknown Speaker: A lot of families will feel like they've got it handled for weeks and sometimes months. And then when they when they realize they're in over their head, they call for help. If you could just let him know that I called and let him know that there's someone here in the community that can help you guys with anything and everything. Like for example, have you guys have you guys had to deal with cleaning out properties and getting all that taken care of you lost your weekends yet? Or is that still coming
• 30:29
  Unknown Speaker: to you right now? You know it? I don't really think we got into Monday stuff yet.
• 30:34
  Unknown Speaker: Yeah, so you guys that was there, you know, houses and cars and all that stuff in the estate or that your deceased family member not owed anything?
• 30:43
  Unknown Speaker: Yes, it was. It was one house. It was one house. But my dad, like I say I think when other family members are gonna live in it, and my dad he's only child and I'm actually I'm quite sure he don't even have that.
• 30:59
  Unknown Speaker: Okay, well
• 31:00
  Unknown Speaker: If he does, I'm guessing you're going to be the one taking your time to help him. If you could just let him know that we can help get the house cleaned out, get it, get any repairs made, get a proper lease put in place we see a lot of families get in bad situations by just letting people move on without a lease. whatever we can do to have your back that's what we're here for. So if you don't want to be the one moving the stuff and watching your dad struggle through what a lot of families do this past my number along to him.
• 31:29
  Unknown Speaker: Hey, you know what? brace good, man. You know what? I'm always shaking my head. Because I did not get that far. And like now like that How to come face with this morning, this morning. And now I feel like it doesn't mean a situation. I want to pass a number. Hey, right, exactly. Because I brought you into it. I brought your emotions into his problem, right.
• 31:53
  Unknown Speaker: And we showed you I showed you what you had to lose when you weren't thinking about how this is like, Oh, this doesn't affect me at all.
• 32:00
  Unknown Speaker: But then I started taking you away from your girlfriend, and your weekend at the lake and these other things. And I started painting the picture of problems your family has that you and then you're thinking, oh, wow, how selfish your mind, maybe he does need help
• 32:16
  Unknown Speaker: with a swimming pool. Now base were out there, why would wrong yet? And when you say it when you said, Well, I'm quite sure that you're going to be the one hitting right when it ain't like they hit me. And
• 32:30
  Unknown Speaker: this I know what my carry my conversation and carry that long. And I think this way this way that was my hang up. And that was it. The takeaway here it can go it can go a million different ways depending on who's on the phone and what the answers are. But the takeaway is run toward the obstacle. Don't take an objection at face value. Because that's what sales people do. leaders who want to help families through this who know that they have problems even before they know they have a problem. They keep pushing and they keep
• 33:00
  Unknown Speaker: gathering information, and they find out what what what emotions are driving the behavior. In most cases that behavior is apprehension or procrastination. But why? Let's figure out why. And let's let's make this a medical. Let's make this real while we're on the phone because we might not ever get them to pick up again. So, give a little pressure on and you know you're doing the right thing. There's no way that they're not going to get a super high level of service. And you don't get paid until you do what you promise. So you're not pressuring them into anything but receiving help. So push.
• 33:35
  Unknown Speaker: Hi, sounds good. I thank you all so much, man.
• 33:39
  Unknown Speaker: I see you all next week. Thank you.
• 33:49
  Unknown Speaker: Jim, you still with us?
• 33:51
  Unknown Speaker: Yes, I am I muted out there sorry about that. We only have two in the queue.
• 33:57
  Unknown Speaker: Don't wait to the last minute guys. If anybody wants to
• 34:00
  Unknown Speaker: participate, just hit star six and hit one. We've got plenty of time for you. Next up is phone number ending in 4361. You're up next.
• 34:11
  Unknown Speaker: Hi guys. I'm so impressed with the work you guys do.
• 34:17
  Unknown Speaker: And I was trying to wade through this probate plus product.
• 34:24
  Unknown Speaker: And one of the things that intrigued me was your ability to spot a short sale.
• 34:30
  Unknown Speaker: I've done quite a few short sales and I'm a real estate guy. I've done quite a few short sales, but I'm curious as to okay. You can spot a short sale opportunity by using probate plus,
• 34:47
  Unknown Speaker: but who cares?
• 34:50
  Unknown Speaker: I mean, the way I look at it,
• 34:53
  Unknown Speaker: if there if you run a short sale, the seller doesn't get a dime. So what is the
• 35:00
  Unknown Speaker: benefit to the estate or to the descendants
• 35:05
  Unknown Speaker: of doing a short sale
• 35:08
  Unknown Speaker: in Chad.
• 35:10
  Unknown Speaker: I'll take this one when he's actually how it's him. And secondly, how would you go about it?
• 35:16
  Unknown Speaker: I guess you have to contact a probate attorney and deal with him or her.
• 35:21
  Unknown Speaker: Yeah, let me let me start off Tim. A lot of you know, my wife and I started a short sale company. Oh gosh, 13 years ago, she's done over 2000 of them and on the server. That's not that's absolutely not true. You guys invented shorts.
• 35:39
  Unknown Speaker: Well, yeah, we had better because we had so many of our own.
• 35:43
  Unknown Speaker: Back in the good old days, but what you're saying logically would seem to be true what what we have been or what my wife is, is frequently surprised by is your right most of the time there's nothing substantial for the estate.
• 36:00
  Unknown Speaker: Gain to gain. There can be exceptions where if the lender came after him, I might jeopardize some other assets. But that's not really a viable reality. But what what we've been surprised was how many people were willing to cooperate with the short sale just because they didn't want to see mom or dad's house fall into disrepair. And you know, and they wanted to see a nice family move in there. And there isn't really a financial incentive for the estate, but there really isn't any work required either. Unlike a living person that has to supply you know, hardship letters and financials and all kinds of documentation. I mean, the deceased doesn't have a bank account. Generally. You just have to have the the executor sign one document, giving the short sale negotiator or yourself permission to negotiate with the bank, and you're pretty much done. So there isn't a lot of work and some of them may just say forget it, but I think we found that at least half
• 37:00
  Unknown Speaker: Maybe a majority of them are willing to cooperate just because they want to see the property end up in good hands and they don't want to see it go into disrepair. So it's certainly worth a try.
• 37:11
  Unknown Speaker: There are there are very isolated cases where we have been able to get a relocation bonus, which is kind of ironic, you know, the person's already relocated for the, for the family, but that that isn't something I would expect or promise. But I would just reach out to the family and in with that attitude that hey, you know, I noticed you're upside down and I know you don't have a lot to gain, but you probably want to see a nice family move into that house and you don't want to see it go into disrepair. You know, if I could do everything for you, and all you got to do is sign one document with Would that be okay? If I kept that house from getting foreclosed? I think you might be pleasantly surprised. The response you'll get from a lot of people.
• 37:50
  Unknown Speaker: Okay, if I understand you correctly, you want to structure it so you could negotiate for them with a bank. There's some sort of permission to do
• 38:00
  Unknown Speaker: Hello, feminist power limited, just a limited power of attorney is all you need.
• 38:06
  Unknown Speaker: Okay?
• 38:08
  Unknown Speaker: Go ahead. Good. If you need one, just reach out to my wife, it's, she'll, she'll give you the one that she uses. It's 954-584-0000 if you need any help structuring it and chill actually even do it for you and she doesn't take any of your commission. She gets the fee out of her fee out of the deal. But if you want to do it yourself, she'll share the document with you that she uses.
• 38:32
  Unknown Speaker: And what's her name? Pam. Pam. Pamela, Pam, last Friday, remember? Okay, let's assume you do that. Jim. Now what how do you get paid?
• 38:44
  Unknown Speaker: while you're in this case, you're a realtor. Correct? Are you a realtor, an investor or both?
• 38:49
  Unknown Speaker: I'm a realtor. Yeah, the bank. It's the bank. It's funny. That's another misconception with short sales. A lot of people think oh, they'll take a better price that there isn't a real
• 39:00
  Unknown Speaker: You're dealing with a, you're dealing with a person in the short sale apartment that has strict guidelines and they have it programmed in to every short sale, they're willing to pay a 6% commission and if they don't pay that, it doesn't mean they're they're going to take a better price for the for the short sale it really doesn't. So they've already got 6% figured in there. So you just act as the realtor. And you know, you go you list the property, you find a buyer, you act as the realtor and you're going to commission.
• 39:34
  Unknown Speaker: Okay, I got it. So
• 39:38
  Unknown Speaker: Well, that makes some sense. All right, answers like whether the other the other thing but before we move on to your next question, the other thing you need to consider everything you've talked about is valid as if there's a single note.
• 39:52
  Unknown Speaker: If there's more than one lien on the property, if there's a second mortgage, that the reason is underwater as long as it's not underwater on online
• 40:00
  Unknown Speaker: The Dom the primary lien, there's always a possibility you can negotiate the second position lien, whatever that might be a mortgage a judgment or whatever it might be, there's always the possibility you can negotiate, negotiate that down low enough. So there actually is equity in the estate. So don't just automatically assume that it's always a first deed of trust. It could be two or three layers of liens. And you could remove layer three and layer two and have equity for the family. So you can create massive value and they can keep the home versus losing the home. So again, always ask good questions.
• 40:38
  Unknown Speaker: Yep, great point. Very true.
• 40:41
  Unknown Speaker: Said helps him to dunk. Yeah.
• 40:45
  Unknown Speaker: Short, dumb question. How do you pay for this? probate Plus, you have to convert to everything or
• 40:56
  Unknown Speaker: so if you don't want to run probate plus, let's say you have a list of
• 41:00
  Unknown Speaker: 100 leads, and you look down through it and you're like, well, I've already talked to these 20. And I don't I know they're not going to sell,
• 41:07
  Unknown Speaker: you go into the option Status tab and select opt out probate plus. And then that way when you run the order, it won't run probate plus on that lead. So in that scenario, you had 100, you opted out 20. When you click get probate plus the order form will actually notice on that list, there are only 80 that are not opted out. So it'll charge you $2 times 80. So you'll be $160 for that list versus $200.
• 41:38
  Unknown Speaker: Okay, I didn't
• 41:41
  Unknown Speaker: want to run it on.
• 41:43
  Unknown Speaker: And if it's a new list, that's a list that you already have. It's if it's a new list, we're just going to run it on everything because we're assuming you haven't spoken to any of them. So it's, it's better, you know, you can run it for $2 and you'll know what they own versus sending mail and making phone calls and tracking
• 42:00
  Unknown Speaker: to figure that out, so on on your new list and your recurring subscription list, it'll just automatically run on everything. If you set it up that way, if you're just doing individual orders, it'll run on the ones that aren't opted out.
• 42:13
  Unknown Speaker: Is it possible for me to do one list to see how it goes or do I have to commit to a long term? No, go to that list and my probate leads, and you'll see a column for probate plus, and you can click there and it'll take you right to the order form. And just pull that list up in the order form and click Submit and it'll it'll run within an hour. Okay, thank you very much, you guys. I appreciate your time. Thank you, Tim. Appreciate you. Alright, we got a full queue now I'm going to close the queue guys. Good job though in the back up. Next up is phone number ending in 7152. You're up next.
• 42:54
  Unknown Speaker: Hello, this was my first call and and starting with this whole probate stuff
• 43:00
  Unknown Speaker: So, I have tons of questions.
• 43:03
  Unknown Speaker: My, a friend of mine called me, because the guy that I've used regularly in my real estate transactions, he is actually dying. And he is in the hospital right now and he may not make it through the day. However, the woman he's lived with for over 20 years, he never married, he doesn't have a will doesn't have a truck. They don't have kids. He does have a brother. And she he was the main moneymaker so she has no income to pay any kind of a mortgage. What's my first step? What do I need to do? I want I should have told you, I this is Becky Trowbridge and I'm in Oregon.
• 43:48
  Unknown Speaker: So Becky, I'm assuming that her concern is she wants to stay in the home and maintain our lifestyle. You didn't say that. But that's what I heard right? Oh, absolutely. Yeah.
• 44:02
  Unknown Speaker: What's the dynamic between her and the brother?
• 44:06
  Unknown Speaker: He's helping her. She does have her name on a couple of the vehicles. So he's helping her to get those fully in her name so that they won't be part of any
• 44:16
  Unknown Speaker: probate or whatever they end up going into. And he's trying to help her. I haven't contacted him yet because I just got this call late last night. And for nobody, nobody has your knowledge. Nobody has power of attorney for the patient now.
• 44:33
  Unknown Speaker: Nope, there is none. If anybody would it would be no document.
• 44:39
  Unknown Speaker: Do you know what the common law marriage requirements are in your state?
• 44:44
  Unknown Speaker: I don't
• 44:47
  Unknown Speaker: know my first call would be to a family law attorney. And I would explain the situation and say you know, this is urgent.
• 44:55
  Unknown Speaker: This before we put a strategy together, we just want to make sure that Miss Smith understand
• 45:00
  Unknown Speaker: Her rights and his her his her relationship with the patient. Is that is that going to be recognized as a training on marriage in the state? And if so, what is what are the success? What are her rights and succession? If if it is recognized as a common law marriage, and she has succession rights as a married woman, then she's entitled to probably half of the estate and the brothers entitled to half of this.
• 45:28
  Unknown Speaker: Okay, Becky, I didn't I didn't hear you say this. Maybe I missed it is the is the patient is he? Is he conscious incompetent or is he in a coma?
• 45:40
  Unknown Speaker: He's not in a coma. Well, he's not conscious. He's not competent. They tried to get him to sign a Well, that was just kind of drafted up when he went in. But he spiraled down so quickly. He's, he's not aware to be able to even put an X on the line. Okay, nevermind. I know.
• 46:00
  Unknown Speaker: Good title company has done a number of the deeds at the hospital, but but they have
• 46:05
  Unknown Speaker: no conscious competence. So that's not an option. That was my first. My first claim. Yeah, like I said he may not even make it through the day. So God
• 46:16
  Unknown Speaker: forbid anybody on this call that doesn't have an estate plan. Use today as inspiration, because life can change that cocaine heartbeat. And so many people go through situations like this. Yes. I mean, it's 1500 bucks to set up a trust. It's less than that. The will. And there's no excuse. But, I mean, hopefully, it sounds like the brother is going is willing to do what's fair. And he recognizes her as a sister in law and should treat her accordingly.
• 46:46
  Unknown Speaker: But he's, he may not be obligated to.
• 46:50
  Unknown Speaker: He may not have to. But I was if I were you, I would talk to a family law attorney and at least try to learn of life. Learn as much as you can about her rights.
• 47:00
  Unknown Speaker: And then talk to the brother. And and just you know say Listen, if they you know if they were married she would get x or you know she by the way they were basically common law marriage. So I would like for her to get x Do you agree?
• 47:16
  Unknown Speaker: Hopefully he'll do the right thing It sounds like it's a better situation than some
• 47:21
  Unknown Speaker: Yeah, I think he will and really their their home if if they're out out of town it's not worth much. It's probably less than 300,000 and a couple acres but it's, it's pretty dilapidated, so it's not likely going to come into something really big. And I think I think he'll do good because he has his own family, his own home his own everything so he doesn't need to play house. So it is horribly unfortunate, but surely just felt like they never could afford it.
• 47:55
  Unknown Speaker: All right, well, good luck. Try to get in the middle in a nice way. Let them both know
• 48:00
  Unknown Speaker: Both of them know that you're there to help them equally and hopefully you'll be the one that you know can sell the property for them when they're when they're able to, you know if it has to go through probate or not. Okay.
• 48:11
  Unknown Speaker: Okay.
• 48:13
  Unknown Speaker: All right. We have three more in the queue. Joe layman. You're up next sir.
• 48:19
  Unknown Speaker: I just wanted to give you a success story.
• 48:22
  Unknown Speaker: Oh go but you're you're our winner of the week then because you're you'll be the first
• 48:29
  Unknown Speaker: I had two opportunities which
• 48:34
  Unknown Speaker: were both of the personal representative of the estate just want it to be done with it.
• 48:42
  Unknown Speaker: And I was able to quickly put these under contract didn't even didn't list them didn't put them in multiple just put a deal together with an investor buying them as is where he is 170 thousand is probably about 130,000. Our house fixed up one at 50
• 49:00
  Unknown Speaker: The 8000 it's probably about the same value fixed up, but it had a pool in the backyard. And this investor goes in, cleans them out, picks them up, and then does buying for title deed for contract. And they're perfect properties for him. So anybody out there if you haven't developed a good group of core investors that you can go to immediately and put deals together you need to do that complete to be very fast, quick deals. These came together
• 49:30
  Unknown Speaker: in you know,
• 49:35
  Unknown Speaker: showing one afternoon in less than an hour to see both properties and boom offers on the table expected.
• 49:43
  Unknown Speaker: Yeah, that's great. Thanks. Thanks for sharing that Joe. And that's great advice. Bruce and I actually had this conversation yesterday privately like most of my probate deals, never saw MLS because the seller would Simon sign and MLS opt out. We would send it through our private buyers list and it
• 50:00
  Unknown Speaker: would be under contract immediately. And I mean, usually within hours, because we were selling them at 80 cents on the dollar. And they were in really good condition compared to MLS inventory that landlords are picking through. So we like we did it very discreetly, and very quickly. And you know, they're not, you know, those those aren't sexy numbers, especially for people in the West Coast. But the reality is you just didn't to transaction and a lot of times I would put a flat fee on them. So if it was a $50,000 house, I would just say a $5,000 Commission and the seller is unrepresented. And I would take the full five, or excuse me, the buyers are presented, and I would take the full $5,000 on a $50,000 deal. I made 10% Commission, and I was fully transparent with the family about that. I'm like, you know, it's I'm not going to do this for 1500. But if you're okay with 5000 I'll get this done very quickly. And they're like, yeah, sure, whatever. Like whatever you think that's that's more like we couldn't have done on our own
• 51:00
  Unknown Speaker: So you can you can the volume on these can be much, much higher than conventional deals. And yeah, like a lot of times I didn't even go was only the house one time ever. So I wouldn't be paid 5000 bucks for an hour of work. And the investors always came back like it just keeps reinforcing that relationship. So we've I've said it for years, but you know, having a strong cash buyers list and real relationships with them knowing are they landlord, are they a flipper? Are they a portfolio buyer? Are they a private money lender? Are they a owner finance guy like the guy you called? The better you understand what they're at what their strategy is, the better you can understand their appetite and which deals to send to them. So when you do send them they take you very seriously. So if you don't have cash buyers, I want you to one thing to do right now for anyone who feels like if you don't have at least five really solid cash buyer relationships, meaning if you call their cell phone right now they would know that
• 52:00
  Unknown Speaker: who you are, and they would know that you're the real deal. If you don't have five of those, I'm going to challenge you to get that in place by the end of this quarter and that's you could do it by the end of this week if you wanted to. But we're coming into a period where you're going to make the people who have those cash buyer relationships are going to be the highest the top earners for the next probably two years. So you it's really important right now that you do what just like what Joe's doing, like really focused on getting those strong buyer investor buyer relationships. But if you go to all the leads calm in the top right, put in cash buyers, and you'll see some tips from the trainer videos and you'll see mastermind calls or we talk about long like short term approaches at doing this and longer term approaches and how you find the right cash buyers.
• 52:50
  Unknown Speaker: And I'll give you a hint it's not about buying a list from some soft piece of software. It's done organically and it's done easily but it's done in your community.
• 53:00
  Unknown Speaker: Thanks for sharing that joke. That's That's awesome, man.
• 53:03
  Unknown Speaker: And I pass Great job. Okay. initial phone call one visit to the property, one visit to the property with the buyer. deal done.
• 53:13
  Unknown Speaker: Yeah, you know, john was I was Chuck, I was chuckling a little bit when I think it was Becky said it, you know, it's not a big deal. It's only 300,000. I was thinking, well, Roger Lacey and Joe layman. I mean, that's five deals, but you, you just do 10 of them a month to make up for your low sales price. That's all Hey, it works anywhere. That's great. Hey, Joe. Yeah. Have you been in probate plus, are you using it?
• 53:40
  Unknown Speaker: I probate plus didn't show the
• 53:46
  Unknown Speaker: information out of my MLS it you know, you'd be I think my MLS is one. Oh, that's right. I talked to somebody about this for you.
• 53:56
  Unknown Speaker: Yeah, so we have like 90% MLS coverage, but you
• 54:00
  Unknown Speaker: And one of those MLS is it won't release their data, right?
• 54:04
  Unknown Speaker: Well, I don't know what this what it is, maybe we need to talk about the downside of the call of this call. But there's even without the MLS, even without the MLS information where I see this as valuable to you, if you sort by equity percentage, and you see that, like all the free and clear assets, Brian, you can you could you could really build the relationship with this investor, like go buy him lunch and be like, hey, how many houses are you trying to buy this year?
• 54:32
  Unknown Speaker: And each month, you could send him a list of property addresses or you know, you could send them something but like, Listen, I've got 12 this month that are free and clear how many like in these zip codes, which ones would you be interested in? And then you can actually approach those families and and be have a very direct conversation and say, Listen, I have a gentleman who I understand you're the administrator of an estate, we've got a team that helps with almost anything but
• 55:00
  Unknown Speaker: I'm specifically calling the day because someone asked me to call you to see if I could, if they would, you know, if you would be willing to sell the home and that's in the estate, but you can kind of go window, let him window shop and then go after the the deals that fit his criteria. It sounds like he's probably doing volume if he's buying two in a month, and 67% of these homes are free and clear. So they're great for that type of strategy.
• 55:29
  Unknown Speaker: You could potentially
• 55:32
  Unknown Speaker: go you know, just target your effort, your investor effort with probate plus, it'll help you find the right opportunities for them.
• 55:40
  Unknown Speaker: Okay, just thought about it. But you don't need to do that because everything else comes through. We're pulling everything else from tax like tax databases, mortgage databases.
• 55:51
  Unknown Speaker: You know, valuations like it's there's stuff coming from all directions. So even if we don't have the MLS feed and your from your your MLS
• 56:00
  Unknown Speaker: All the other data is still there.
• 56:03
  Unknown Speaker: Already. Chad, we got two more in the queue. Okay, going an extra five or 10 minutes over. Do you have a two o'clock call? No, I'm good. You're okay. All right, we got two more in the queue. We're going to finish up real quick. Hopefully, y'all can hang around for another 10 minutes. Next up is phone number ending in 6742. You're up next.
• 56:24
  Unknown Speaker: Hi, there is Catherine. I have two questions. One question is the errors in the personal representative when they get the distribution? Is that money tax free? Or is that considered to be like a capital gains?
• 56:43
  Unknown Speaker: Most of its tax free so like the real estate specifically, you can look up, step up basis. So like if you inherit a million dollar home, you don't have to pay capital gains on a million bucks. But there will be the basis will be established where
• 57:00
  Unknown Speaker: The value where you inherited that will become your basis value and then whatever gain you make on it, you will pay on that.
• 57:07
  Unknown Speaker: So it's not it's not like if you have you know, a million dollars in assets you're going to be taxed at a million dollars and you know, a CPA in your State would be that would have the better answer, but you're not heavily taxed on you know, in until you get into, I think it's 12 million bucks is where they really start to nail you with tax.
• 57:28
  Unknown Speaker: But for most estates on on these call, you're not gonna have much tax liability.
• 57:34
  Unknown Speaker: So a lot of the PERS when, you know, when they're going through probate and they don't have money to fix it up and stuff. I know you talked about that in probate cash, but where do they do they use their own money for the most part, if because everything is stuck in the estate?
• 57:53
  Unknown Speaker: Well, most people won't want to so if the estate has money, one of the first steps one
• 58:00
  Unknown Speaker: They get the authority as they go gain access to a bank account or open a bank account for the estate, and then they can use that money for repairs to, you know, to get more equity out of the property. A lot of times there's no money there, the average senior citizen only has $24,000 in liquidity to their name,
• 58:19
  Unknown Speaker: which means half of them have a lot less than that. So a lot of times is just not an option. That's where we can get creative. We can bring in, you know, an estate advance company to advance some cash, and then they get paid back at the very last minute on the last line of the distribution with the family. Or we can turn our contractors into lenders and we can get them paid at the closing table or at the final distribution. We can go to investors who can who can, you know, advance money to them and take mortgages on property or different things. So there's lots of different ways oftentimes, you know, it's the family doesn't need to put their own person
• 59:00
  Unknown Speaker: money into the estate, we can show them how to not take the risk by paying, you know, a reasonable interest rate to an investor or company or contractor.
• 59:13
  Unknown Speaker: Okay, great, thanks. My second question is
• 59:17
  Unknown Speaker: dealing with creative financing, like structuring a deal.
• 59:23
  Unknown Speaker: When is it best to use the lease option or the contract for deed? And what happens if we go under, you know, a contract like this and there's repairs you know, do I lie use my own money or try to borrow money to do the extra repairs even though I have this contract 40 that I'm taking over payments are
• 59:44
  Unknown Speaker: saying the more for monthly? I guess I'm just wondering like the only the only time
• 59:51
  Unknown Speaker: the only time you should ever use your money is when you're a principal in the transaction. If you're an agent in the transaction, don't put your money
• 1:00:00
  Unknown Speaker: The deal, it's not necessary, you're taking unnecessary risk. If you're buying the property, and then your sandwich and sandwich lease option, yeah, then then you put your money into it or you sell it as is where is. So as far as the best time to use owner financing versus lease with option to purchase is outside of the scope of what time we have left here. So I'll point you to we did a series back in March called shift happens. So if you go to youtube.com, forward, slash all the leads, click on playlist, and then go to the shift happens playlist, Episode Four, I made a matrix of the seven most the seven most common creative financing strategies that can be used in this space and in this market environment. And I spend two hours showing you the benefits the pros and cons to both the buy side and the sell side. So then I give you examples of when and how each of those
• 1:01:00
  Unknown Speaker: We'll be used and we talk about
• 1:01:03
  Unknown Speaker: straight owner financing rap subject to second mortgage lease with option to purchase
• 1:01:11
  Unknown Speaker: several several million contract for deed land contract. So there's seven seven specific strategies and I tell you when to use them when not to use them when it's beneficial to the buyer or the seller and when it's not beneficial to the buyer or seller. And that will I think, give you everything you're looking for.
• 1:01:28
  Unknown Speaker: Okay, great shift happening Episode Four.
• 1:01:32
  Unknown Speaker: All right, last up this week has been patiently waiting since the top of the hour is phone number ending in 3937. Europe last
• 1:01:42
  Unknown Speaker: thinks hi Chad. This is Bo again. I spoke to you last week. But
• 1:01:49
  Unknown Speaker: I was asking the questions about how to properly do the transaction does a realtor and I have spoken to
• 1:02:01
  Unknown Speaker: One of the brokers here, and they were kind of vague, like,
• 1:02:07
  Unknown Speaker: as far as the documentation that you were telling me about last week, like, I would like for you to tell me pretty much what you told me last week again, but if you could just say it slower because he kind of like blowing it off. I think it's because you're so familiar with it. So you're just like, you know, nailing it, but I kind of missed it. So, if you wouldn't mind just coming in again, like a little slower this time, but to actually write it down.
• 1:02:38
  Unknown Speaker: So forgive me I know I've talked to a lot of folks, we're just talking about the paperwork that we need to look properly list a piece of real estate and probate.
• 1:02:46
  Unknown Speaker: I'm not necessarily listed because that would just be like doing traditional, real realtor work. But if I want to because I remember I was saying
• 1:02:56
  Unknown Speaker: because what the realtor we have to do
• 1:03:00
  Unknown Speaker: Do all this disclosure or whatever. And so, I was asking like, if you could do like a flat fee for. Okay, I remember now we talked about multiple ways to get paid. Yes. Other Yeah.
• 1:03:15
  Unknown Speaker: Okay. So the way you get paid on your license
• 1:03:20
  Unknown Speaker: is you and then I'm going to give you this and the, I guess, in my preference.
• 1:03:27
  Unknown Speaker: As a realtor.
• 1:03:29
  Unknown Speaker: You will represent the seller and the seller only. So you'll have an exclusive right to represent seller agreement. When you bring the investor and you're going to have you're going the front page of the purchase agreement is going to be an unrepresented party addendum. The names of these forms might be different in your market, but you'll find them and What's that? It's just an explicit, no, no, it's just everyone's saying that we understand who like nobody is representing the buyer.
• 1:04:00
  Unknown Speaker: They don't need representation. And the way we pitch that as a benefit to the buyer is Hey, mister seller just like on an auction platform, or unlike on an auction platform where you would pay a four or 5% buyer's premium. I'm actually not going to charge you any commission as long as you don't need representation. So would you like to save 3%? And I'll just leave you unrepresented. Okay, great. So he, he's seeing that as a no cost, but high perceived value. And then you're just going to take the full listing side commission. The reason I like that structure, I don't believe in the agency, I don't think that you can fairly represent to people and opposing positions just can't happen. So you limit that's one of the number one ways people lose their real estate licenses and dual agency arguments debates. So just don't put yourself in that position represent one side.
• 1:04:53
  Unknown Speaker: If you're going to do it on your license, I would do it that way. And you can do it as a percentage or you can do it as a flat fee. You'll address that
• 1:05:00
  Unknown Speaker: In the listing agreement not in the purchase agreement. So in the listing agreement you can write in, you know, for you could even do 6% or $5,000, whichever is higher, but I usually choose one or the other. To do this off your license as an investor, you should have it separate you should have an entity like an LLC, you should have an Ei n number of bank accounts, and none of that should be commingled with your license. Your purchase and sale agreement needs to have a disclaimer I
• 1:05:34
  Unknown Speaker: disclosures on it. My disclosure is I'm going to do my best here but
• 1:05:42
  Unknown Speaker: seller recognizes that Chad Corbett, the managing member of resolutions Real Estate Services, is a licensed real estate agent and West Virginia, Virginia, Hawaii, Tennessee and yada yada and is entering into this contract with the sole intent of making a profit
• 1:06:00
  Unknown Speaker: Period capital bold, no agency relationship exists. And I make them initial that and the additional terms and sign the contract. So if anyone ever says anything about me practicing brokerage without a license, they can see where they initialed the disclaimer in the listing agreement. And then they sign the listing agreement. And that has happened to me. And the investigator congratulated me on being thorough and being ethical. And he closed the case immediately. Because I wasn't practicing without a license. I was being a principal in the transaction.
• 1:06:37
  Unknown Speaker: By the way, if you ever these these calls are always posted. You can always go back and listen, you can even their podcasts or on our website, there's links you can always you know, have your broker listen to it.
• 1:06:50
  Unknown Speaker: If something gets lost in the transaction
• 1:06:53
  Unknown Speaker: during the translation, I should say, okay, and the last thing I wanted to ask so you were saying
• 1:07:00
  Unknown Speaker: This would be as far as doing a listing, but like the previous gentleman was saying that they didn't list the property. He just
• 1:07:11
  Unknown Speaker: basically gave information to an investor that he knows and they were able to close the deal the next day. Would this be like the similar steps or the similar process rather, so we didn't, I didn't ask you exactly how he structured the deal, but if let's just assume that he only represented the buyer. So he contacted the seller had a relationship with some, let's just consider them a fizbo. And he contracted directly with the buyer on an exclusive right to represent buyer with X percent or X number of dollars if they if they buy a property at 123 Walnut Street. So you can do that you can have a specific buyer's agency agreement with a flat fee or a percentage the same as you can with with the seller.
• 1:07:58
  Unknown Speaker: I just find that that's
• 1:08:00
  Unknown Speaker: You know, we're reaching out to the seller offering a service, I usually end up signing the agreement with the seller, and then leaving my buyer unrepresented like, so they feel like they don't have to pay a commission. Ultimately, the Commission's coming out of their money. But that's
• 1:08:18
  Unknown Speaker: the big takeaway. All right. And your broker, your broker will appreciate me telling you this, but the big takeaway is, pick aside my represent one party.
• 1:08:29
  Unknown Speaker: Perfect and Carlos freebus. I'm sorry, we got to leave you in the queue. Or actually he dropped out if you need if you anytime, guys, we, we close down and we don't get to your question. Just contact us right away after the call and we'll help you one on one.
• 1:08:43
  Unknown Speaker: Carlos was in there, buddy. I see. He's gone now. All right. Well, thank you guys. I want to end this call the way I always do, I want to thank all hundred and 50 of you for being here. I want to particularly thank those who actively participated. I want to challenge each of you. You heard some great ideas, some great stories, too.
• 1:09:00
  Unknown Speaker: One thing that inspired you on this call, go out and put it into practice. And please come back next Thursday and share your results with the group. Make it a great week guys, stay productive, stay healthy, and we will talk to you same time next Thursday. Take care