Okanagan Real Estate Investment Group Podcast Recordings
Okanagan Real Estate Investment Group Podcast Recordings
How to Talk to Motivated Sellers June 2025 Weekly Q and A
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I'm gonna press record recording. We can still kind of chill and get in here a little bit. It's all fine. Welcome, ladies. Before I get started, does anybody have any questions? No? No. Okay. Wonderful. Um I uh I'm so excited for tonight because what uh tonight's about motivated sellers and how to talk to them. All right. So did everybody see the recording or get a copy of the recording of the last event? Anyone? Raise your hand if you did. No? Okay. That's all right. Um I put it on YouTube and I like 25 people watched it. So I was like, oh, I wonder wonder if that was anybody from the from the event. And that's okay. Uh, but it'll it'll be on your email. If you look out for your email, it'll be it'll be on there. And um it it very much leads into today.
SPEAKER_00:So motivating the event that happened in person. What's that?
SPEAKER_04:This is the event that happened in person because I saw no no that was so but that was our in-person's event, and you know what, Fallon? That's so funny you ask because Danuzia was in our at our event all the way out from Ontario with yeah, I'm from Quebec, and when I saw the event, I was like, oh my god, I'm gonna visit.
SPEAKER_00:And then I looked, oh yeah, I can't call.
SPEAKER_02:Yeah. Okay, hold on. Ontario is my originating province, but I flew in from Edmonton at that. Stuck airplane, pretty cool.
SPEAKER_04:I was pretty, I was pretty cool when somebody does that. Not the Julie. Anyway, it was so the live event was great. Oh man, that was a lot of fun. But the last weekly Wednesday, we talked about for sale by owner, um, and uh how to present to motivated sellers, just kind of using a presentation format. So, what's what's happened since then is I've created two presentations for motivated sellers. And they are everywhere. Motivated sellers are everywhere, even in hot markets like Edmonton and Calgary right now. So it's May, it's June of 2025. Wow, I can't believe it's June. And Alberta is definitely a very um exciting market, whether you're in Edmonton or Calgary, even Red Deer. Um I know a gal, she's got smoking awesome deals over in Hannah, Alberta, a little tiny town, Lethbridge. And there are still motivated sellers. So no matter where you're watching this from, there's always somebody uh that's either a motivated seller or about to be a motivated seller. So you want to be ready, you know. You you want to be ready uh in case in case it's a fit for you. So or or even if it's a fit for them, of course, it's got to be a fit for both of you. And the way I mostly work uh and with with all the people that I work with, I I recommend presentations because it's just a really good systematic way to show people how you can help them, and then of course give them give them the capability of deciding whether or not it makes sense to take the next step. So um in a in a motivated seller situation, that's why I have the motivated seller worksheet. And if uh if nobody has the motivated seller worksheet, then there will be a link around here so that you can access it. Okay, what that'll do is let's say uh you see a for sale by owner sign on a lawn and it's kind of sun-faded, and you can barely read the writing. So maybe that kind of gives you an indication that the house has been for sale for a while. Let's say you make the you call and um you you get a hold, you actually get a hold of the seller, you want to know all the details that you can about the house, like square footage and what condition it's in, and um whether or not there have been updates, whether or not there's a garage, uh, the age of the house, just all of the big basically the information that you get that you can get from any feature sheet. Okay. And then also it's called the motivated seller worksheet because if somebody's really motivated, then some nine times out of ten, it means something's not quite right, that they need help. So they should be willing to give you a lot of information. And the two kind of scenarios that I see most often are people uh that may or may not even have a mortgage, but they don't want to be landlords, and maybe they're holding on to a property uh and wanting to sell it, but for whatever reason they don't want to work with realtors or it's not in great condition, or um some other kind of uh issue that's holding them back. So that's usually scenario one. Somebody that actually does have equity, but for whatever reason they don't want to sell. And then the second scenario that I run into a lot are people that actually have too much debt on their property. So it doesn't make sense for them to sell, also sometimes because the house might need work, and maybe there's just not room to sell with a realtor, in which case, you know, if you go back to the previous event, we do talk about a program called Property Guys, Fallon. I know you were there for that. And Danuja, I know you've heard about it, and Christine knows everything about property guys. It's a great way to sell if you want to sell on your own and make more money. And so those are the two big scenarios that I ran into. And um, I just actually am putting the last finishing touches on a rent-to-own course that I've actually uh put together with Christine. And uh she's been all she's been at all of the sessions. So far, there have been four sessions, and what I realized is I really do need to add another session all about what's called sandwich lease options. And that is where somebody has maybe an over-leveraged house that you can purchase from them doing a lease option and leave the financing in place. And what that can do is it can enable them to do better at the end of the day. And I'm gonna show you numerically, like numbers-wise, how that looks. And then I'm gonna run through uh with you another scenario of maybe a house that does have some equity and how you could potentially present to somebody like that. And um those kinds of deals, if you if you're able to get into something that does have some equity, you can wholesale it or you can buy it as a lease option and try to uh sell it as a lease option as well. You can purchase it, do renovations, and do maybe a burr technique. Uh, there are all kinds of options when it comes to buying something that um that's really, really well priced. Okay. And either way, when you're working with a motivated seller, you always want to have their best interest at heart. And while at the same time letting them know that I want, you know, by by putting it this way, you want to sell your house, and I want I want you to sell your house too. And as I do this, I'm probably going to make some money and to be very transparent about that. Okay. So just going into every situation, every scenario, what wanting to create a win-win. So that's just that's absolutely uh fundamental and primary when it comes to these kinds of deals. Uh, and I bring that up because I've been in training in the past where that hasn't necessarily been uh the message that comes across. So I just really hope that, and I know that everybody here that that message makes sense. So I'm gonna share my screen and I'm going to walk you through a presentation that I would give to somebody who is a motivated seller with a fair amount of equity with a house that needs some repairs. And then I'm gonna walk you through a presentation with a motivated seller, and it's actually gonna be the identical property because I'm I'm I'm making this up as a pretend scenario. Uh identical property, but a different situation where it has a lot of debt on it. And and I'm gonna I'm gonna propose uh a scenario where uh we do a lease option purchase. Okay, so that's kind of setting the stage for what's gonna go on here. And again, it should piggyback off the last weekly Wednesday because it does follow it, it it follows basically what I like to call the system of the sales presentation. All right, and you'll see you'll see when I get into this. So I'm sharing my screen and I'm hoping that okay, the first one I'm doing is the wholesale one. Yeah. And I know it's not sharing yet.
SPEAKER_03:And I have to find it. There we go.
SPEAKER_04:So this is actually um the same presentation that I used for the last uh the last event that I did. Just how to put together a presentation for a motivated seller. And so in this, in this deal proposal, it's for um, I I just simply call it a deal proposal for the Ethel Street property. And first and foremost, I already went, uh, I already went over why it's important for you to look at the motivated seller working sheet. And this is what I this is what in this um pretend scenario that I was able to kind of gather the important highlights of this particular seller. So this is mom and dad's house. The kids are out of town. Uh, they found me through a mutual uh connection from my real estate investment group. They want to sell this house badly, they're afraid of it sitting on the market too long. They've had a realtor go through it, and the realtor said, well, if you really wanted to sell, then you need to do about$50,000 worth of work. The house is vacant. They feel like they have not a lot of options, they can't afford to wait, they can't afford to hang on to this thing. There is two, and there's only$200,000 worth of debt on the property, and it's worth about$900,000. So there's a lot of equity in this house. But the, you know, but they they really don't want, you know, they really still feel like they don't have a lot of options. And this is literally what could be happening to people right now, like literally in the city of Kelowna. We are here in a buyer's market, means that meaning there's tons of property on the market, and a lot of these are older homes, and a lot of these are situations where um where it's just this, where somebody is an older couple and they've moved on to the next chapter of their life, whether that be moving in with the kids onto an old folks' home. Um, and it's happening more and more and more because the greatest generation, that's who I like to call them, are getting older and older, and the baby boomers. So I'm back in presentation mode, and we're gonna go over the seven things. I'm gonna go over our credentials, I'm gonna talk about numbers on the deal and what is proposed, how it's gonna work, some of the benefits, some of the potential drawbacks. And at the end of this and of our time together, I just uh want to make sure you know that I'm going to ask you for a decision. And if we decide to move forward, then great. And if we decide that it's not a fit, then that's okay too. Okay. Uh, but if it is a fit, I do want to take a couple of minutes to make sure we go over our next steps together. And before we get into things, I want to make sure that you have enough time. So are we still good for 20 minutes or 45 minutes or however long you set up the meeting? So this is me. My name's Julie Hoffman. I've been doing in real estate since 2001. I've done hundreds of deals. Uh, we've lost everything at one point and built back up. Um, you know, I'm just gonna kind of go over my background. This is me as the team member. This is somebody that uh I work very close with when it comes to financing. All right. So this is Craig Van Dolder. He gives good loans. He likes to go mountain biking, he's very talented. He's he's helped not only myself, but dozens of other members of just members of my uh my Okanagan real estate investment group that I know of. I know he's helped hundreds of people. Uh, this is the one of the lawyers that we'll be using. He's a Kelowna-based lawyer, he understands uh these kinds of real estate deals, so he's a great member to key uh team member to have. Um, in addition to just buying this house, which is what we're gonna propose, we have lease option experience, have created a lease option course. I bought a house, I bought my house through lease options and um was able to sell creatively. That's a little bit off topic here, but that's okay. And here are some of the people that we have helped in the past. So, this property, what it uh these two both are in peach land. This house with this property we bought from the developer because the developer needed to sell off a chunk of land, and so we were able to get it for a really great put price and um convert it into uh make it uh more and more houses. This property right here was from an older couple down in Vancouver, and uh they were ready to move on to their next step in life. And uh with the sale, with the sale proceeds of this house, they were able to make their next their next steps in their in their um retirement home that much that much better and help their money, their wealth that they had built up over time last that much longer. This house right here was from a lovely couple who had who had lived in the house for 30 years and had done tons of upgrades to it, and they had already bought a house up in the shoe swap. So uh when we when we were able to buy their house, they were able to move on again also to the next chapter. So we kind of have a tendency to work with next chapter people. This is my husband, his name's Jeff Hoffman, and he really understands the nuts and bolts literally of houses, uh, what kind of condition they're in, what they might need, um, and really uh help us with dialing in when it comes to numbers and renovations and upgrades and that sort of thing. And he and I have been working together since uh 2001, since we, you know, since uh practically we were we got married in 99, so it's it's been quite a while. So uh this is your house. It's a three-bedroom, two-bath. We know it's in a great area, and what we propose is that we purchase the house for$750,000. Now, I know right now everybody just going off script, but I have$760,000 later on in the presentation. Don't let that distract you. I just know that it's there and I just thought of it. So heads up, everybody. So this out, so so this house, though, this is these are the details. This is what you've told me about it. You kind of explained to me your situation that you want you're wanting things to move on. So I just want to go with go through with you a comparison of what might happen if you were to sell to us now, or if you were to hold on and potentially sell with the realtor. So, selling with the realtor, you're gonna have to deal with showings. Um, sounds like you're gonna have to do a lot of money worth of upgrading, you're gonna have holding costs, and you don't really know what that's gonna mean as far as um how long that's going to take. You you might worry, you might just feel like it's a hassle. And plus, on top of that, when it finally does sell for you know who who knows how much, you're gonna be paying out of pocket for a realtor commission versus selling to us, where we can have your money to to you within the next 60 days. There won't be showing unless it's okay with you. We promise to make it uh completely easy for you, as easy as possible. We'll take the house as is, where is you don't have to touch a thing. Hopefully, this will give you peace of mind. You can't really put a price tag on it. Um we'll take care of everything and we'll even pay your label fees. So we acknowledge that your house is probably worth a bit more than what we're asking to buy it for, but it's our hope that um in addition to helping you sell the house, that you understand that we'd also like to make some money on this deal. And I'm gonna talk about that again right now. So we'd like to purchase the property for$750,000. Full disclosure, we are since we're since full disclosure, we're getting it for a decent price. We're likely gonna find another buyer. You see, we've got a large network of people, people who are in the business of finding houses like yours, putting a fair amount of money into them, and either refinancing it or renting it out, uh, primarily with other real estate investors. So that is what our objective will be. That said, we might end up buying it ourselves as well. It just depends, but I want to be, you know, I want to be transparent with you because I'll make sure that it's all written there in the paperwork for my protection as well as for yours. And again, full disclosure, we hope to make some money on this deal. So I just want to stop right now and make sure that you are okay with that. You don't have a problem with that, do you? And so just kind of breaking script, this is where somebody might say, Well, yeah, if it's worth way more, I want way more. And you know what? That might be the end of the presentation. But I need to remind, and I need to remind you that if you have gone through a full motivated seller worksheet and you've gauged how somebody uh is talking, that should have come up in that conversation. But if it comes up here, that's okay too. You know, at least you've given it a try. So you do you want to bring it up, you want to bring it up as soon as possible so that everybody's going into everything, eyes wide open. So there are some obvious benefits to selling to us this way. Sale within 60 days. That's that's less than two, that's two months or less. No more showings. Again, we'll just take it the way that it is. We take care of everything, we're gonna pay your legal fees. You're not gonna be out of pocket for this property, except for you know, the two months of carrying carrying costs if it takes us that long. But of course, there are risks. There are risks whenever you enter a real estate purchase contract or any kind of business deal. We could fail. We might have to adjust the price, we may have too many challenges with this sale. Something could happen to us, there could be some major issue with the property that we didn't discover, which forces our hand and having to walk away. You could end up listing it after all. Again, if we fail, because that could happen, and you might at the end of the day feel like it's been a huge waste of your time. Those are some risks that might happen. So, just a number summary. This is where I made the error in the math, ladies. So your patience is, ladies and gentlemen, anybody that's watching this, um, we're gonna have a 60-day exit. There might be some showings, but we're gonna keep we're gonna keep that to a minimum. We'll sign uh sale paperwork, pay your legal fees, and you'll end you'll end up with$750,000 because that was the original number. Julie, so the summary of growth. All right, we're gonna give you another 10. How's that sound? We're gonna give you another 10. So your summary of growth of your of your money situation is that it's gonna you it's going to be$760,000. You're gonna know exactly where you're at in the next 60 days or less. So at this point, I just want to know do you have any questions for me? And then this question question. Um, or no, that's pretty, that's pretty straightforward. Awesome. I really only have one question for you. Is there any reason you would not want to move forward with us on a deal like this? And so somebody might say, so there are there are things that you can either uh have responses to or sorry, there are things that either things that you can change or things that you can't change. Somebody might say, Yeah, you know, before I got on this presentation, I talked to my brother-in-law and he said that we shouldn't sell it for anything less than$770,000. So if this thing's worth$900 as is and they want$770, I've I've still got$130,000 spread there. So I may consider it. I may even be able to say, well, let's say I can do that. Is there any other reason? Okay, and so that's how those are good responses if somebody does have uh issues that you can control. But uh, you know, if somebody if if you ask this question, is there any reason you would not want to move forward with us on a deal like this? And they come back with something like, Well, yeah, I just made my my mom a promise uh on her deathbed that I would never sell to a girl named Julie. Well, I'm not changing my name. So there's nothing I could do about that. That's just a silly example, but there are there are examples that people will give. Um, let's think of something more uh reasonable. Let's think of something that somebody might say, and that is well, yeah, if it's worth 900, then I want 900. Well, okay, that's great. Because my offer is this, what you want is this. We have a why our gap is too wide, and that's okay. Um and if that and if that happens, then so either ways, okay. So so it's either something you can control or something that you cannot control, or is my this is a this is the only time I really like it when people say no to me. Is there any reason you would not want to move forward with us on a deal like this? No, there's no reason. This sounds perfect. Wow, we've been looking for you for the op for six months. Where have you been? Awesome. Either way, if it's a yes, if it's a no, if it's a it's not a fit, if it's a I need to think about it, if it's a whatever, that's fine. You say thank you. All right, so let's say, okay, let's let's back up a bit. And if somebody says, yeah, I just don't make a decision like this unless I've thought about it for at least um 86 hours. Again, I'm being kind of silly. So it's like, okay, well, 86 hours. That uh that means um why did I have to use such uh uh complicated math? Let's just so so in 86 hours, uh I'm gonna text you and see if you are still um I'm gonna text you to get back together. Uh do you see any reason why you would not, you know, at least be able to respond to me? And that's three and a half days. Sorry?
SPEAKER_02:That's three and a half days.
SPEAKER_03:No, thank you. Thank you.
SPEAKER_04:Well done. 12. Math lady. Math lady right here. Three and a half days. So let's just say I reach out to you in three and a half days. Um, do you think that there tell you what? Let's set up a meeting right now for three and a half days from now. Uh, is this a good time for us to meet? Yes or no? Blah, blah, blah. You set up the next, you set up, you set up the next question. Okay, so it's it's a few, yes, it's a few scenarios. And either way, how however, however direction it goes, you just say thanks. So if they are wanting to move forward, they're just like, no, this is great. I feel comfortable. I've talked to everybody, and they are just like, sell the house, you know, because that'll happen. Next steps. Here's what next steps are. We're gonna complete paperwork. You're gonna have conditions, I'm gonna have conditions. We're gonna make sure we both have lawyers. Um, we're gonna have we're gonna have uh, we're gonna need to just get in there and have a quick inspection and make sure everything's good. Uh, you might wanna you might need to show this to like your probate lawyer or something like that. Whatever you need to do, we're gonna get some paperwork complete, okay? Some ink to paper. That'll be the offer on your house. We're gonna communicate really well. Then if everything goes as we think it could go, your house is your house is going to be sold. So that's that's how you do that. That's how you do something that has a tremendous amount of equity. And again, there's multiple exit opportunities here. If you've got a bunch of investors lined up who are dying to uh get into a house like that in Kelowna, um, maybe this is where you set it up so that you buy it with an investor, do the renovations, do a bird, great. Maybe you wholesale it. Um, maybe you buy it yourself because you're ready to buy it and um and and and do all of the improvements and rent it out. And uh maybe, okay, this is a whole other maybe when it comes, especially when it comes to wholesaling. And it's one of the reasons why I love wholesaling so much. Uh maybe you get it under contract, you dig a little deeper, and you find something huge. Like uh it's not, it's still on a septic, and the only way to get it purchased, the only way for it to make sense is you're gonna have to do uh some kind of big expensive city hookup, okay? Maybe you know, just maybe something big comes up and you walk away. There's nothing wrong with that, or you get it under contract and um you find out there's just not an appetite. Uh you can't give it away. You can't give this contract away. Nobody wants it for$5,000, nobody wants it for$5. In which case you say, you know what? I know you wanted to sell it, I wanted to sell it to you. Uh the buyer didn't work out. All the best of luck to you. Thank you for, you know, thank you for your time. Keeping in mind you did warn them about that. All right. So before I move on to the other to the next uh example, who has questions? Oh yes.
SPEAKER_02:The news ya, you go first. Hi, so at some point in this, are you gonna show us all uh our uh the buyers, the wholesalers, uh homework that they have to prepare ahead of time? Like exactly, super simple. Where exactly are you gonna get$700 and whatever dollars in 60 days?
SPEAKER_04:Oh, so um so you're asking where am I gonna find$760,000 in 60 days?
SPEAKER_02:Yeah, so at some point during the presentation, I'd like to know like step one, step two, so and so all the steps that we do ahead of time before we even talk to the seller, right? Because you have to make sure that all your all your all your back homework is ready, ready to go. Because in 30 60 days, you have to be ready. So it's not actually 60 days, that's the that's the pretty number. Going to be earlier, right? We have to calculate the the banking time and the communication time, which usually sets up at least three weeks.
SPEAKER_04:Okay, so uh Danujia, how many wholesales have you done?
SPEAKER_02:Zero.
SPEAKER_04:Oh, okay. All right, I just wanted to gauge where you're at. So this presentation is not about uh it's it's not about wholesaling necessarily, because there's like like we have a whole 10-session course on wholesaling itself. So I'll try to summarize it uh quickly and efficiently. When you go to do uh do a wholesale and you get ready to buy a house, you get ready to find a deal like this. Ideally, what you may or may not already have built up is a buyer's list. And so there are lots of different ways to uh to create a buyer's list through your network, through email campaigns, through Facebook groups, through having multiple conversations, letting people know, hey, I'm wholesaling and I'm looking for this kind of property in Edmonton. Do you know anybody who might be interested in a property like that? So, um, like you said, to be ready, you want to have some people, ideally, who could let's just say pay cash,$760,000 for this property, or you know they've been pre-approved and they have the down payment and they have the money to do the renovations. Yeah, so essentially a buyer's list. And the other option that you can have, the other option that there is, is once you've found this property and you have it under contract, it's at that point you can again, I and I like Facebook and I like my email list because my email list has kind of grown quite quite a bit since uh since it started like about 10 years ago. And that's just from networking and that sort of thing. And you may already be on people's list where there's like a deal alert. Hey, I have this property available, and here are the details, and um, here's how you can make money. So if you're interested, uh reach out to me, and then it's at that point that uh you've got the property on a contract, and hopefully somebody will buy that contract from you, and that's what a wholesale um assignment of contract deal is all about. So, like, there's not, we don't have enough time here right now to go through all of those details. This is kind of under the assumption that you're ready to uh ready to wholesale, and that's because you've taken lots of courses or you've taken a course, or maybe you've just googled like crazy on YouTube about how to do wholesale deals because all three ways are doable and are available for sure.
SPEAKER_01:Okay, got it. Awesome, Christine. I was just curious about the legal fees because you're telling the the seller that we pair we're paying all the legal fees, so we're paying legal fees on both sides, right?
SPEAKER_04:Yeah, sounds like this would be a situation where and I threw it in there as you don't have to pay their legal fees. But if I think this is a good enough deal deal and and I know what I know, and again, it goes back to you know what what what I just went over with Danujia. This is this is assuming you've done your homework, this is assuming that you've looked at a lot of property, this is assuming that you are so dialed into the market that you know this is a good deal, okay, or at least you're like 80% confident. Yeah. So um, in this scenario, uh I'd say, uh, because I know Ethel Street, I know how popular it is, I know all the benefits. Christine, you do too. Um, you well, you might. I think you do. Ethel's a pretty good area. Yeah, but it's a really good area, great walkability, lower mission, which is the most popular place. It's on the flats. Anyway, um, I'm okay to pay somebody's legal fees because I know what that math is, and I know I'm still walking into like plenty of meat on the bone, and I'm confident that I'm gonna be able to find a wholesale buyer.
SPEAKER_01:Perfect.
SPEAKER_04:Yeah.
SPEAKER_01:Okay, so thank you.
SPEAKER_04:Yeah, yeah, you're welcome. Thanks. And those are great questions. I'm glad you, I'm glad you both asked both of those questions. You don't have to pay somebody's legal fees, like at all. Um but it can't happen. Okay, anything else? Okay, great. So let's go over to the next one. I have it open. That's wholesale. Where's our the where's our friend Alan? Oh, she had to go. She must have had to go. She can watch the recording. Yes, we're recording. Yes, we are. Okay. All right, we're back again. So if you hadn't noticed, this I really like to do the same thing over and over again. And it is back to it goes back to some coaching that I did a long, long time ago for network marketing. And it's so ironic that we're talking that I'm talking about this today because I just had this little webinar thing with uh my coach, his name is Mark J. Um, and and he says this one thing. It's called do the same thing. And it's another version of create a system because systems enable ordinary people to achieve extraordinary results. So as we go along in this presentation, it's my hope that you can see that it's very similar to the presentation that I just gave, but it has a different uh it has a different twist on it because it's a different scenario. Okay, and I'm gonna go over that like I did the previous one. So this is for a rent-owned sale, otherwise known as a lease option. So thank you so much for being here. Are we still are we still good for 35, 40 minutes, depending on questions? Yeah, and then they say yes, awesome. Or another scenario is oh no, I forgot to tell you I need to be done in 15 minutes. Okay, so I'm just preparing everybody because I love to talk about this. If you think a 45-minute meeting is gonna be now a 15-minute meeting, you've got to get your phone out and you gotta watch your time, okay? Use that and even say that say, oh man, I'm gonna watch my time then. I'm gonna put timer on for 15. I'm gonna put a timer on for 12 minutes because if we're not done yet, I just want to take a couple of minutes to make sure that we can we have time to reschedule this so that I can go so that I can go through the rest of it. She must have uh she she just uh came back, fallen. Okay, so again, you've got to be able to bob and weave as these things come up because if I think I have 45, but I only have 15, I want to make sure that again, I've got the time to plan the next step. Okay, hi Fallon, welcome back. Hope you're okay.
SPEAKER_00:Yeah, it's my computer is acting up, but thank you. So me, I'm I'm in another business at home, and I'm working. Yeah. Thank you.
SPEAKER_04:So I think that your internet might have chopped into that a bit. Do you want to just kind do you want to put that in, right? Type it in the chat. Just mute your mute yourself and type what you said into the chat. And then I and then I can respond to it. Because I didn't understand half of what you said, but because I think it's your computer. Yeah, you're frozen. Okay, poor girl. Don't worry, Fallon. I think you're gone. But uh you're gonna get uh you're gonna get the recording. Don't worry, sweetheart. Okay, we got you. All right, so let's dive into the rent-to-own proposal. So again, this is the motivated seller worksheet of setting the scene. Scene. I like to pretend I'm in the movies, okay, sometimes. There just stay with me. Stay with me, folks. This is the scene. This seller wants badly to sell. She's also afraid of it to sitting on the market. Um, I forget off the top of my head how she got the up. She's moved. She's already moved, she's already switched jobs, and she left the house behind. It has a$650,000 mortgage, and the realtor said that um it's gonna be about$50,000 for her to get it um in good enough shape for the realtor to sell it. And then um a value, it might it might sell for about$750. Okay. Might sell for about$750. The house is vacant, she feels like there are no options, and she just cannot afford to wait. And I I don't know how many times I gotta tell you folks. Um if somebody says there's no deals out there, it's not it's just not true. There are people like this who need help, who need your help. Okay. And um, they they definitely are out there. So keep that in mind. So this this is a scenario. Um, and I'm the lease option buyer or the rent-to-owned buyer. I know that there's equity. Uh, I know, and I and I know that uh I've I've either I've got somebody with me, a joint venture partner or something that is capable of holding on, that has about$800,000 to put toward renovations, to save up for a war chest, um uh and holding costs and legal fees. Again, uh the house is vacant, so we can renovate it really, really easily and we can sell it, we can wholesale it, or we can uh we can uh we can rent it out or we could sell it as another lease option, which is called a sandwich lease option. All right, so also with a house like this, I know if I can get into it as a lease option buyer, I can develop it later, I can wait for the market to recover, I can maybe use short-term rentals as an option, house hacking, all kinds of different options. I love single family homes because there are so many options. I love all kinds of properties too, but I just really love single family homes, especially in older areas with big lots. Um, and again, this is a, and I don't think actually, I don't think I said this. I don't know why I said again, this is a no-bank qualify opportunity because what I'm gonna do is I'm gonna propose is that we buy it from them as a lease option. So, again, how I start the presentation. We're gonna go over seven things: credentials, numbers on the deal, what is proposed, how it'll work, the some of the benefits, some of the drawbacks, because there's always drawbacks, folks. Uh, at the end of this conversation, at the end of our 35 minutes together, I'm gonna ask you for a decision. So um, this may be something that's a perfect fit for you, and it may not be. And uh we may discover that it's not a perfect fit for us to move forward either. Either way, it's fine. But if it is a fit and we should move forward, I just want to make sure that we have enough time to go over our next steps together.
SPEAKER_01:Julie? Yeah, sorry to interrupt. I think we're still looking at your past presentation. Thank you.
SPEAKER_04:You gotta oh poor, you poor people. I'm sorry. Oh no. I'm so excited about this. All right, school. So let's go back. We'll go back around.
SPEAKER_01:There we go. Seven things. Okay.
SPEAKER_04:So this is the presentation rent to own, aka lease option. Thank you so much, Christine. And thank you, everybody, for your patience. This is the lease option presentation, aka rent to own motivated seller worksheet comes up with they want, they need badly to sell, it's sitting on the market. It's got a high, high more it's got a pretty high mortgage. You know, there's no money in the budget for renovations because this person just moved, the house is vacant, and they feel like there are no options. They just simply cannot afford to wait. Lease option buyer in this case knows that there's some equity here. There's some meat on the bone. And that this lead this lease option buyer, myself or myself and a joint venture partner, likely a joint venture partner, has like$80,000 to put toward the reno, to take over things, to have a war chest, have money there for uh legal fees and holding potentially holding costs while the property gets renovated. Um, since it's vacant, you can renovate it, rent it out. We've done that so many times, and it's been absolutely amazing. Yes, there can be issues when it comes to renters, and it and it can it can also go extremely well. I can say with 100% confidence that the Oganagan is someplace everybody wants to live. And so we I rarely have trouble with renters, uh especially because I I really try I really buy in only good areas. Um the other option is well, I can buy it as a lease option, and I can also sell it as a lease option. So I could put a tenant buyer in the property, and there are all kinds of benefits to that. I'm not gonna go into too much depth uh because we have a whole rent to own course about some of the benefits of uh rent to own and why it can make so much sense for an investor. Um, and then when it comes to let's say we decide to uh buy it and just rent it out, there are so many options when it comes to single-family uh homes, especially single-family homes that are older on big lots because they can be developed. Um you can buy time because you can just fit, you can fill it with equity building tenants. So in a lot of cases, you can do short-term rentals, house hacking, house hacking for those of you who don't know, it's like house hacking, what's that? That's where somebody can moves into a house that has maybe four bedrooms, and um the person takes the one bedroom and rents out the other three. I know so many people, that's exactly how they started uh investing in real estate. So it's it's something that can work. It's not for everybody, but it definitely can work. And what I really want to emphasize is in a situation like this, when you find a deal that is a little that, for lack of a better word, overleveraged, then it can be a very good, no bank qualify opportunity. And let's face it, financing's tough to get. So if you have an opportunity where you can buy a house as a lease option where the seller can just keep their financing in place, that is a really awesome place to be in. And we've done it over and over and over again. And not only, you know, of course, benefited from it, but also we've also been able to help a lot of people in a jam. I'm gonna talk about that in a little bit. So, again, back to the presentation. We're gonna go over seven things: our credentials, numbers on the deal, how it'll work, some of the benefits, some of the potential drawbacks. At the end of this conversation, the end of our 35, 40, 40 minutes together, um, I'm gonna ask for a decision. I just want to give you a heads up. And um, on one hand, you might decide that this is a great fit for you. On the other hand, you might decide that it's not. I just want you to know either way, it's 100% okay. If it is a fit for you, then I just want to make sure we take time to go over the next steps together, all right, so that we can get you helped out as soon as possible. So this is me and blah, blah, blah. I'm so great. La la la. Um, this is my mortgage broker, and he can help things along because he's gonna end up getting us the financing so that we can buy you out in the next five years, because I'm gonna propose a five-year plan. This is the lawyer that we will use uh for the lease option at front up front, because what we're gonna need to do is put an option to purchase on your house. And we, of course, we're gonna use lawyers to do that. You're gonna have a lawyer, and I'm gonna have a lawyer. I've done over 25 lease options myself. I've created a lease option course. I've bought my house that I live in right now with this big red and white painting behind me. Um, and I've also sold personal homes as lease through lease option as well as investment property. So there's a lot, I have a lot of experience in lease options. These are some examples of people that we've helped. This was a condo, this was Lisa. She was in big trouble. She won, she, her boyfriend had moved, she was pregnant with his child, it was her second baby. She needed to go. We helped her do that. Uh, this is a house in Gallagher Canyon in Kelowna. These folks were in serious financial trouble. They were able to move on to a farm in Salmon Arm and go on with their lives. This house was over this house, was over in West Kelowna, and uh the buyers had a nightmare tenant. They paid cash for the property. We did a leak, we did a lease option with them. Instead of them making like$400,000 on their house, they ended up making over$600,000 on the house because we paid them monthly cash flow for five years. So they did really, really well. And uh this house is in Beaumont, Alberta, and we helped a real estate investor who took one of those, you know, raw, raw we buy houses courses that I sell, by the way. But you know, he just graduated from a seminar and he got in a little bit over his head, and it happens, happens to the best of us, happened to me. His name is David, and he bought this house and held on to it for close to a year vacant, and it was just bleeding him dry, the poor guy. So we were able to step in, help him out, and uh ended up instead of him losing like 60 grand, he broke even at the end of the day. So it's great. So we have a lot of experience doing this. So it's important to talk about your experience, folks. That's my point on this slide. And if you don't have experience, well, you need to team up with somebody that has experience because that's the beauty of teams and leverage. You can leverage other people's network, you can leverage other people's time, you can leverage other other people's money and also their experience. So here's Jeff, uh another member of the team. He's my husband, and he and he's just gonna make sure the house is always well looked after. Sprinklers break, he knows how to fix them. Uh house needs to be re-roofed, he knows exactly how to deal with that and how to do it economically. So he's a good, really, really valuable guy to have on the team. So this is your house on Ethel Street. Three bed, two baths. It's in a great area of Colona. We're really excited about it, and we want to buy it from you in five years for$750,000. Um, it's not it, it's um not quite worth that right now, but we're willing to pay that price because it just needs some stuff done to it as we both went over. So let's just say you were to sell this house right now with a realtor. You're gonna have showings, you're gonna have to spend all that money in order to upgrade the house. Um, you're gonna have holding costs, there's gonna be worry, there's gonna be hassle and expenses to pay uh your realtor. Um versus us as selling as a rent to own. We're gonna take over all your payments right away. We are gonna look after the property and make sure that the grass is mowed and that uh you know the windows are clean and that it looks good. Uh we'll take it as is where it is. This will hopefully give you peace of mind. We're gonna take care of everything and we're even gonna pay your legal fees. So let's do some math. Let's like get into some brass tax. Let's say you list the house for$750,000. Well, statistically, right now, houses are selling for about 95% of what they are listed at. So you're gonna end up selling, you're probably gonna, you know, just based on what's happening in the world, you're gonna probably get an offer for around$720,000, maybe less, maybe more, but probably, but just based on what's going on, probably around$720. Um you're gonna have to, and if you're gonna get$720, you're gonna have to put$50,000 into it. So there's gonna be that expense. There's gonna be$26,000 of holding costs because um that's quite a few months. Sorry, there's$12,000 of holding costs. If you sell it for$720,000 through real through the MLU, through the MLS, that's$26,000 in realtor fees. So, and you're gonna have you're gonna have worry because you're just not gonna know what's going on. And quite frankly, it probably will be a hassle. So, at best, I would hazard to say that you might net out of this property, if you're to list it right now, maybe$20,000 versus selling to us as a rent to own, we'll agree to$750,000. There won't be a realtor fee, so you're gonna save$26,000 there. You're not gonna have to put$50,000 in because we're gonna take care of that. We're gonna take over immediately, so you're not gonna have holding costs. You, since you already have financing in place, over the next five years, you're gonna have$23,000 of debt pay down. So I'm gonna go off script real quick. How do I know that? That is from my deal analyzer. That is uh it's a it's an automatic calculator that helps you calculate math on property. So, what it has is an amortization schedule. There's a full tutorial that goes with it. There's a link around here to find the deal analyzer. And if you can't find it, then find me and I'll get you the deal analyzer. Anyway, I know that over the next five years, this mortgage is gonna be paid down$23,000. You can't put a price tag on the peace of mind that you're going to have by knowing that this property is off of your hands. Again, we will take care of anything, and we're even gonna save you$1,700 in legal fees. So just comparing that math, you're gonna net about$20,000. It's not negative, even though I put it in red ink. You're gonna save all of this money on the right, which is a net of uh which means you're gonna be ahead by$142,000. So that's an obvious benefit right there, the difference uh in your bank account of working with us versus selling with a realtor right now. So we will purchase the property for$750,000,000 in five years. Um, we're either going to rent it out or we're gonna find another lease option buyer. We might help somebody else get into home ownership. And I want to be fully transparent with you here today. We hope to make money, we want to make sure that you're okay with that. So that's not gonna be a problem, is it? And that's where you hope to say, no, you're gonna help me. And look at all those numbers, and where do I sign? So here are some benefits. Uh it's kind of uh it's obvious. We're gonna pay, you're gonna have peace of mind, you're not gonna have to show it, we're gonna take it as it is. Of course, though, there are risks, lots of them. We could fail, we might have to adjust the price. There could be challenges with the sale, the challenges with the tenant, challenges with the tenant buyer, the property could crash, the values could crash, you could end up having to list after all, and this all could be just a big gigantic waste of time. All of that is possible. I'm not gonna pretend like it's not. Uh, so summary on the sale. Uh, we'll sign paperwork now to get everything uh, you know, inked to paper. And then in five years, you're gonna have to sign again because we're either gonna have buy the house out or we're gonna, well, no, in five years, we're gonna buy the house out from you one way or another. Okay, so you will have to sign twice, once for the lease option and once once for the final sale where we exercise our option to purchase this house. Um, again, we'll pay legal fees and you're gonna end up with a head by$142,000. So you're gonna be$142,000 ahead. At this point, do you have any questions for me? Question, question, question, question, question, question. And I really only have one question for you. Is there any reason you would not want to move forward with a deal like this? It's the same question as last time. And no matter what happens, if it's a fit, if it's not a fit, if they need to think about it, I at least know when they're done thinking, might be three and a half days. I might not use such complicated math next time. I don't know. It depends on how silly I'm feeling. Either way, you say thank you. Thank you for your time. And if we are moving forward, then the next steps are to complete the lease option paperwork. We're gonna communicate during this whole process over the next five years. We're gonna take over your payments, management of the property, and we're gonna have to do paperwork paperwork again at the end of the day uh for the eventual sale, actual sale of the property. So those are two scenarios. One where you take over as a lease option, and one where you buy something with a tremendous amount of equity. So, what questions do you have uh when it comes to this side of things? The lease option presentation.
SPEAKER_01:Uh no, nothing for me. This is this is good. Hold on.
SPEAKER_02:So um, how does a seller justify in their head that since they're not as experienced with the theory as we are, um we keep saying the same sentence, saving 142,000 over five years, so that's$28,400 a year. Right? Yeah. Are we helping them balance in their head? Well, if I if I sell now, I'll be in I'll lose$142,000, but I'll get I'll I'll get this idea, I'll get this concept of this house out of my docket, like it won't be in my life anymore. Yeah, right?
SPEAKER_01:Yeah.
SPEAKER_02:Versus you know, we're gonna give them the m because in their head, they don't have to do anything else except do the mortgage payments, right? Because the the financing will still be on their name, right?
SPEAKER_04:Yes, but they'll be cut uh which scenario? This one. Uh sorry, the uh where we buy it as a rent to own? Yeah, yeah, but they're covered, like we pay them so that it's covered.
SPEAKER_02:Right, okay, okay, but in in there, because they're not real estate investors, they're just regular T4 people. I don't know how to call them. I call them muggles and non-muggles, right? In their heads, their only responsibility is oh my god, I still have a mortgage under my name, which is like the big X, whether or not I have to pay for the money or not. Julie's gonna give me the money for this, but still on my paperwork I have a mortgage. So, how is that justifying them in their head um saving let's just like let's just call it$29,000 a year over five, right? Because they think that five years is like a forever time versus right now. So, what makes you think that five years is a forever time? Because they're not investors, and I don't think that they can can um see that it is a short time. And you know, if I sell my if I sell my house in 30, 60, 90 days with a realtor, that's less than a year and I'm done. Now I'm now if I take this option, like we're like devil's advocate, if I take this option with this person who's making this presentation. Oh my god, I'm gonna be in this mix for the next five years. Okay.
SPEAKER_04:So uh sorry, I know you've done a lot of real estate. How many uh lease options have you done? That one, zero. Okay, okay. Well, I just thought maybe you have done a lot of them because I know you've done a lot of real estate for a lot of years. So yeah, I happen to have an unfair disadvantage when it comes to these kinds of deals because I've been through bankruptcy and I've been through foreclosure, and it's awful, and it's really tough to hold on to a house that you no longer want, and it's really, really, really tough to pay a mortgage on a house that's just sitting there vacant. So every time we've done this, it's been a relief for the people, even if it took five years. And um, yes, waiting 90 days and just letting a realtor sell it is absolutely an option for somebody, and it's not like they wouldn't be ahead. They might be ahead, it's just real skinny at 20,000, you know, but that's a total fit for some people. And what ends up happening with with lease options and rent to own and and working with really motivated sellers, and I'm talking off-market people, I've only done um a lease option once with a realtor, and it was a sophisticated realtor who understood the deal. He's the one that uh I worked with with the I mentioned Gallagher Canyon with these these folks who who moved up to Salmon Arm. He understood what was going on with them, and he and he approached me about it because he knew I could probably help these folks move on, and we did like they were they were up to here, and these payments were killing them, and we took over. We actually sold it as a lease option and and had things covered.
SPEAKER_02:So they might take let's just call it they might take the bait, knowing that this whole cesspool of their problem will be solved by another person. Bait well, this up this proposal, this this oh okay too.
SPEAKER_04:Okay, yeah, all right. So let's say they they like they they they think our offer is a good idea a good solution for them.
SPEAKER_02:Yeah, we're just giving someone else the headache that we think, but this somehow this Julie person came into our life and she thinks our headache is not a headache. So here, take it.
SPEAKER_04:Yeah, and and that's what people sometimes will decide to do. Okay, yeah, and it may be tough to believe. It's easier to believe if you've been through it. Yeah, yeah. Yeah, that's that's a good question, though.
SPEAKER_01:Like, why would somebody ever do this? So just um an expansion of that too, and I might be missing something. So if we do this option, they still have the mortgage in their name, right?
SPEAKER_04:Yeah, yes.
SPEAKER_01:So how do they go and buy another house?
SPEAKER_04:Yeah, they probably don't.
SPEAKER_01:Okay, so they go rent or something.
SPEAKER_04:Well, and some people like the scenario. Uh this scenario, she already moved, she already bought another house. Oh, that's right.
SPEAKER_01:Okay, that's right.
SPEAKER_04:And this one is maybe she went and she rented. I don't know. Like I would know. I would know, but I didn't specify that in the presentation. But I'll tell you that um uh these folks that I helped in Gallagher, that we, I shouldn't say I, it's totally a team, um, that we helped in Gallagher, they bought a house in Salmonar.
SPEAKER_01:Okay, so they bought a house first, left this one vacant, yep, and then just waiting for this opportunity.
SPEAKER_04:Okay, and then yeah, like the people in I saw talked to you about West Kelowna. I showed that slide, they had paid cash for this house, and they just had this terrible tenant situation, and it lasted for like literally two years. Wow, they bought a house, they bought another house, like 10 minutes away. Wow, but they still had this house, and some people are that's where they're at, and um, and some people go and they rent, like I told you about Lisa with the condo and the baby and the daddy and the Saskatchewan. She went and lived with him, and I think I don't know what I can't remember what his situation was. I think he was rent taking, but you know, she went and the family came together, and that's what made the most sense for her. Yeah, okay, okay, and that and people that happens to people. Yeah, yeah. So it's kind of a beautiful thing. Yeah, I think it's a beautiful thing. It's one of the most beautiful things about this strategy.
SPEAKER_01:I like this.
SPEAKER_04:Yeah. Okay, cool. Anything, any other questions?
SPEAKER_01:No, I think that's good.
SPEAKER_04:Okay, well, we went over a lot. I know we went over a lot. Um, those are exact examples of what you can do. The copies of these PowerPoints will be made available to anybody that wants them. You just have to reach out to me and let me know. And um, it might be near the recording, but it may, I'm trying to figure out how to make that work. But I'm findable. If you found me here, you can find you can find me however else you could find me because you're either seeing this on email or on Facebook or on email.
SPEAKER_02:And then there's uh the other piece of like listening to the theory and listening to everything that you say and owning it, and then actually doing it your own self. Yeah, it's nine 9 p.m. calls Julie. Um, Julie, um I said email or Facebook.
SPEAKER_04:Where did I say? Just kidding. I'm remarkably at my phone. I'm remarkably, I'm remarkably at my phone. But yes, I mean it's uh it's a cool strategy because some people, this is their own. I'll I'll tell you a story. We have uh I work with this uh woman named JC, and they had a tricky situation in Ontario, and they they were staring down the barrel of a hundred and thirty thousand dollar loss, and she is an investor. She sold uh her house as a rent owned. And with the down payment that these people put down and the monthly payments ticket they're gonna make, and the fact that they're gonna take over all of the maintenance and they're gonna pay the top taxes and they're gonna cover the insurance, uh, she's gonna be ahead cash flow, and they're gonna get all this lovely debt pay down, it's a nice mortgage on it. And at the end of five, it's five years, the end of five years, instead of losing$130,000, they're gonna break even, they're gonna be made whole, which is awesome. And something that's even more fun is Trisha and Michael, this lovely couple with these beautiful little kids. Now they live across the street from the elementary school, so the kids can walk to school. They live in a house that's been completely renovated, top to bottom, so they don't worry about their kids having allergies and mold and some of the disgusting things they had to deal with as renters, and they never thought they would ever be homeowners, and they're working their butts off to make this deal happen. And that is really special to be part of that.
SPEAKER_01:I love this option, yeah.
SPEAKER_04:It's pretty cool. Pretty cool. So, um, all right, everybody. I have one more thing I want to talk about. I always forget to talk about it because I don't know why, but I do. So here we are, and I gotta be careful of my language and I gotta talk better because words are powerful. And it's um I so we have, I'm gonna set this link up nearby too. There's gonna be so many links. Everybody's gonna be a lot of links. Check out all the links, please. A lot of people don't know that I've got all of these courses, and the rent-to-own course isn't even on here yet. So it's how to find deals, how to how to put together creative deals, all of our monthly membership recordings. Oh, can you see this? You can't see it. You can't see my library because I'm not sharing my screen. Dear board, Julie, come on. Of course, we're just talking. We're just talking and talking. So this is my this is the library. So we have a digital bandit sign course, and um, we have students that have found wonderful deals using bandit signs. I know those I buy houses signs, they work, and um they can be very, very powerful. So, this is how to find deals online. Here's the original bandit sign course right over here. These are outside signs. You'll see them on telephone polls and in yards. People get in trouble with the city, but it's still kind of fun. Street Smart Buyers, how to buy deals creatively. Um, monthly membership. This has a this is like 108 recorded recordings from 2018 when we started uh recording and keeping track of all the content. So it's a ton of valuable information. We have a wholesaling course. So Danuji, you had these questions about wholesaling. This is where you find out about wholesaling and whether or not it makes sense for you to start doing that. But it's my favorite way for people to get started in real estate without taking a lot of risk. It's very powerful, powerful stuff. Uh, my free real estate and my tools are some are they're the foundation of what's used. So I talked about the motivated seller worksheet and my deal, my deal analyzer. Those two tools are in this course how to raise capital for coaching and courses. It's for people that maybe they have a tough time being able to afford coaching. You can create a win-win and you look at that course and you see how raising money for real estate, you'll be infinite if you know how to raise money in order to buy houses. So this is my library, and it it's uh with the exception of the wholesale course, you get everything in this course except for the wholesale course for$97 a month. All right. So um, if that's something that you think might be a fit for you, it is a lot of information for low barrier of entry. I want to help as many people as I can. Uh, I the link for this will be around here. Okay. All right. So thank you for being here. I talked about how uh words are just so powerful. We had this great, I'm gonna end on this, okay? We had this wonderful event. It's so cool that both of you are here because both of you were there. And we talked about, we had Melanie Robinson, who's a fantastic speaker. And if you're looking for an awesome speaker, then you gotta look up Melanie Robinson. I can help you find her too if you're watching this recording. And she told us to uh when we're going to be going into a nervous situation or a scary situation to create is it the ring of fire, the ring of greatness, the ring of what? Does anybody remember? It was a circle of something, wasn't it? I guess the circle of power. I don't know. Something like that. I can't remember what it was. So everybody's gonna think I'm so silly. That's fine. Tonight's the silly night. This is me.
SPEAKER_02:Oh, hold it back. Hold it back close to you. Oh, there we are. Ladies' rhymes just fell short in districts. That's me.
SPEAKER_04:Thank you. I was 18 and very springy. And I remember it being a time in my life where I was so proud of myself. And so the circle of power, the exercise that you do is you're entering a scary situation. You think of a time when things were going great and you felt confident and you felt like you believed in yourself because that's not always the case. Sometimes we doubt ourselves, and sometimes we go through challenges, and then we say, you know, we get the devil invades our thoughts with, hey, you're not good enough, you're not smart enough, you can't get this done. So the circle of power is where you can put those times when you feel awesome about yourself, you you put it in the circle, and then you you step out and you think of something else that's awesome, and you put it in the circle. And this is one of the things that I think of because I was a really good basketball player, and I just felt great about myself at that time in my life, and it works. And I'm hanging it up in my office, and I encourage you to do something similar because life is just better when you when you know how awesome you are. It's not about thinking how awesome you are, is it that you know how awesome you are? Everybody is awesome, especially if you're here, you ladies, rock stars. Fallon, I know she would be if she could. It sounds like she has some technical problems. And if you're if you're watching this or you're listening to this, you're awesome too because you're doing something that most people are not willing to do. So I'll leave it at that. See you next Wednesday. Don't know what we're talking about, but I know it's gonna be fun. Awesome. Thank you, Julie. See you guys, bye, ladies.