The Titanium Vault hosted by RJ Bates III

The King Closer Talking To Sellers And CLOSING DEALS!

RJ Bates III Episode 884

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0:00 | 35:52

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Cold Open And First Contact

SPEAKER_01

Well, that was a master class on how to talk to sellers.

SPEAKER_03

Hey, is Dean there?

unknown

Hello?

SPEAKER_03

Hey Dean, this is RJ Bates calling about your property there on Buena Vista. Looks like you had uh filled out a form on my website about wanting to sell it. Oh, okay. Let me know when you can hear me.

SPEAKER_04

Okay. I mean it now.

SPEAKER_03

Can you hear me? My name's RJ Bates. I was calling about your property there on uh Buena Vista. Looks like you were looking to sell that property. Is that correct? Yeah. Awesome.

SPEAKER_04

If the price is right, I'll sell anything. Well what?

SPEAKER_03

Let's do it. I don't I don't want the wife, but I'll take the house. How much uh how much is the right price?

SPEAKER_04

Well, right now uh ranch is booming. And because everybody's moving out of New York, California, and everything. And uh I don't know. Uh I like to get at least 225 out of it. And it's worth I mean the the houses in the neighborhood are going 275,300. So I mean there's still enough room to make some I mean it's not it's 40 years old. I mean it's gonna have it's got issues, but it ain't got serious issues. Like it's got a new roof on it. And that was uh 20 what was it, uh $17,000 I put in it. Nobody's cheap down here. But uh, I mean, I don't know. I mean, what are you thinking? I mean looking at it, stuff to satellite stuff.

SPEAKER_03

I'm looking at it right

Seller’s Price And Property Condition

SPEAKER_03

now. Uh what what's got you looking to sell?

SPEAKER_04

I just want to get out of town. I don't um I got too much stuff, as you can see. I got too much stuff.

SPEAKER_03

You you do have quite a bit of stuff there. Um I'm looking at it from the street view right now.

SPEAKER_04

Oh that's uh that's the good view. You gotta keep above it.

SPEAKER_02

Oh all right.

SPEAKER_04

But uh it's not it it really isn't pretty, I mean there's a it's got 40-year-old wiring. You might have to do something about that if you want it up to like code or whatever you guys do. I don't know. And it ain't got stainless steel or none of that, you know, fancy kitchen stuff. But other than that, man, it's not bad. I mean, it's got good bones in it. Uh it was built in 72, I think it was.

SPEAKER_03

Gotcha. Um do you owe anything on it?

SPEAKER_04

Not a dime. I ain't paid the taxes today.

SPEAKER_03

Oh, well, there you go. Well, how much money do you actually need to to get out of town and and go move on about your way?

SPEAKER_04

Well, uh I'd have to have at least 200. Or I might as well keep it because I just paid forward shit. So I mean why go into debt if I don't have to? I mean, I'm hoping to find a little chunk property I can just pay cash for, like I did that one. I bought that I paid cash for that one back in 2004. I think I made like five payments on it, and it was paid for.

SPEAKER_03

Yeah.

Comps, Rehab Math, And Profit Reality

SPEAKER_03

I'm looking around the area here. The issue that I have is um there's some houses that are inside a quarter of a mile of you. There's a there's a house that's about a hundred square feet larger. It's uh it's pending at 250, and it's a brick house that was built in 2020. Yeah, I mean that that's a problem. Um, and then I got a 2006 brick that's the same size as you that's active at 270. Um and I mean your your house is gonna need a little bit of of love, right? I mean, so if I if I bought it for 200, I mean I'm probably gonna be dropping. I mean, I don't know, what do you think? How much do you think I'd have to put into it?

SPEAKER_04

I think you well it depends.

SPEAKER_03

I do you want it, I mean, are you gonna rent it or are you gonna fucking just let's let's let's try to max it out, like to get maximum value. What do you think I would put into it?

SPEAKER_04

Uh probably 20, maybe 25.

SPEAKER_03

Okay.

SPEAKER_04

I mean, if you wanted everything, you know, up to bar, and you redid all the wiring, you know. I mean me, I mean, I just let's paint on it and rent it out because right now we're in 2,000 bucks a month down here.

SPEAKER_03

Right. Yeah.

SPEAKER_04

So I thought about doing that, but I my credit sucks. And uh I never really bought anything on credit. It's not that I don't pay my bills, it's just I never really bought anything on credit. Yeah, cash for shit.

SPEAKER_03

The issue is is say your numbers are right. Say I I put 25 into it and I pay you 200 and I sell it for 250, which is what that brickhouse in 2020 is selling for. I would be negative $5,000 when I sold it.

SPEAKER_04

Oh, yeah. I see your point. I mean, I do. But I just yeah, I but uh summer's coming. I'm telling you, man, when this town blows up, it's gonna, I mean, another pulse is coming through. And all this shit happening all over the country, man. How's uh if uh the house of the street was on the uh on the market one hour and it sold? The one across that blue one across the street from me? Did you see that one?

SPEAKER_02

Yep.

SPEAKER_04

It was it was on uh the market three days and it sold.

SPEAKER_02

You're talking about one one two eight?

SPEAKER_04

Uh so it's that bright blue, it's a bright blue house.

SPEAKER_03

I gotcha. Yeah, so so I see that, but I I mean there there are some properties that are sitting too. I mean, there's one on the market for 148 days, 169 days. So not everything is moving that fast. But even if that's the case, I mean I don't think I'm gonna be able to get anywhere close to your 200, because otherwise, I mean, I I'd be losing money on on day one. So that's why I was asking, like, how much money would you actually need? And if it's like, well, it doesn't make any sense for you to sell it for less than 200, I mean, I'd I'd why not just list it with a realtor?

Health Crisis Changes The Why

SPEAKER_04

Because they want you to put up this, that, and the other thing, and I ain't got the money right now. So I just had heart surgery and stuff, and I've just done through it. That's why the yard looks like it does. It didn't used to look like it. Like you could take a satellite picture of it, you know, five years ago. It was completely different because I was healthy.

SPEAKER_03

Gotcha.

SPEAKER_04

And my health has gone to shit, and uh it's just getting to be too much. I mean, I I used to go to auctions every weekend, and you know, I mean and uh we've got a scene uh when I had my heart surgery. I hired a I hired a crew of guys to come in there and empty my storage units. I had 15 storage units, and they just come and dumped it right on the front lawn.

SPEAKER_03

So I mean, let me ask you that. I mean, so you're talking about you know heart surgery and your your health not good. I mean, what what happens if you don't get the 200,000 for the house?

SPEAKER_04

I might just stay here. I mean, I'll have to stay, I mean, I have to stay because I mean I I just I mean uh I don't know I don't know. What do you what do you think? What do you think is a good number?

SPEAKER_03

Well, a good number for me is potentially a a different number than what's good for you, and that's why I always want to start off by asking, like, what do you want? What do you need? And and realistically, if the number is you need the 200,000, the the question is, is how do we get to that with where you are? Because the the reality is is to get anywhere close to that, it it has to be through a realtor. But what you're saying is accurate. A realtor's gonna come want that property and they're gonna say, Hey, you got to clean this yard up, and then on the inside, it's probably gonna be cleaned up, you know. It's gotta be it can't it can't scare people that want to come in and and look at it with their kids and and the wife and all that, they can't see past the trees, you know what I'm saying? So the realtor's gonna beat you up on all the stuff that you want to do. Now, if it's more about, hey, I want speed and convenience, then that's where I would come in, but it would be at a discount. And and I mean it it's I can give you a number here in a second, but I'll tell you, I mean, it's gonna be in the low 100s. And I can explain that to you as and the the reason why. I mean, I I'm not one of those guys that just comes in and like low balls homeowners. I don't want to do that, it's just about protecting myself and my company and and what we're trying to accomplish.

SPEAKER_04

You're not in it to you know just be a charity game, you know.

SPEAKER_03

Right. And so, because I mean, when you say 25 grand, normally when a homeowner says I need 20. Go ahead.

SPEAKER_04

I mean, I'm I'm I'm being realistic. I'm not trying to lowball you either. I mean, I'm just like because I've kind of you know, and I don't know, do you bring your own crew or do you hire people around here, or how do you work? I mean, how do you do that?

SPEAKER_03

No, we it would be hiring a a local GC there.

SPEAKER_04

Okay. Yeah, I mean, it depends. I mean, I don't know, man. The worst part of that house is the electrical, probably. I mean, because it's if you gotta get it up to go, because don't if you like buy a house, you gotta have it, it's gotta be up to certain yeah.

SPEAKER_03

40 four 40-year-old electrical is is going to be a problem. And then I mean, you said you took care of the roof. I would be potentially concerned about the plumbing too.

SPEAKER_04

If no, plumbing's easy. I mean, no, the plumbing's good.

SPEAKER_03

Okay.

SPEAKER_04

Yeah, I mean the plumbing's good, but it's like it uh it's like 20 foot of underneath the crawl space there. You know, where you can got a good door stand-up kind of thing. Yep. Um, and it's like one straight line. Uh it's got uh about a three or four-year-old uh water heater in it. I had to replace it a couple years back. And uh but I no there, I mean, uh it's got a big old three-inch pipe for the you know, big plus everything out down to the toilet, you know, all that kind of shit. I mean, it's uh they did a good job on the puppet, they really did.

SPEAKER_03

Okay, well that's uh that's good.

SPEAKER_04

Yeah, I might need a new toilet if you want something modern or whatever, if you know you know but uh if it's a good toilet, I mean it's not a you know bucket or anything, so right. But uh but there's one by the back tire. But uh yeah, that's uh I mean uh it need carpet. I mean he needs carpet, I don't have cartridge, so I'm sure you'd need carpet or something.

SPEAKER_03

Right.

SPEAKER_04

Right.

SPEAKER_03

And uh I mean what I would tell you is is that I would probably end up putting anywhere between 40 to 50,000 in the rehab into this.

SPEAKER_04

Yeah, I mean it's possible, but I just I mean I don't know, I'm a I'm a cheapskate joker.

SPEAKER_03

But that's in order to maximize the value, right? And that's where I think we could get to potentially the 250,000, uh-huh. Um in what the re resale value would be. But in order for me to be able to be profitable on that and for it to make sense, that's where I'm coming in in those low 100s. So my question to you would be with you saying, like, hey, this is becoming too much, like the health, you're you're not able to take care of the property as much. Is that to the point where it makes sense to sell the house for a discount, or is it make more sense to try to find a way to do the improvements yourself and listed on the MLS to try to get closer to that 200,000?

SPEAKER_04

Yeah, I understand, yeah, I see that. But uh, I mean, like how like in uh I mean we're talking like hundred, I mean what?

SPEAKER_03

I mean let me see here.

SPEAKER_04

Sorry, I couldn't I can't pick up nothing. I mean, I can't even like look at a piece of property right here. I mean it's 150 to be and that would take care of I mean that's I can show you a hook go up to uh Knox and there's a trailer up there. 497 look at that and he's getting that they offered him uh what was 197 for it. And it's got uh two lots.

SPEAKER_03

Right.

SPEAKER_04

Oh well I'm looking at a a great sign uh if you want to build a house, man. I know there's some nice he's got nice four lots, man.

SPEAKER_03

I I would say a great example of what I'm looking at is 292 Rhea Street, which is right around the corner from you.

unknown

Uh-huh.

SPEAKER_03

Um it sold to an investor for cash for 110, and then they fixed it up, and now they have it listed on the market. And so that is an example of what I'm talking about, and that's a 1980 build, um, similar square footage to yours. That I would want to be somewhere in that range. Probably I could probably give you a little bit more than the 110, um, but that would be what what I would need to be at as an investor. And so the the situation for you is like you're looking at you're walking away with a lot less than the number that you had in your mind, but I would also ask you to think about the 200 is going to take you improving the property to get there. So not only do you have to invest money yourself to get to achieve that number, but you also have to do the work, and then you have to list it, and you have to go through the showings and the inspections and get it approved for a loan and all of that. So it's it's a little bit more than just some of the repairs, and like you said, that electrical is an issue, and then when you come in with electrical work, then you're talking about there's drywall and then texture and paint and all of that that comes along after you do you replace electrical.

unknown

Yeah.

SPEAKER_03

And so that's why when I say like I'm thinking 40 to 50, it's not just about oh hey, it's 10 grand for the electrical, it's everything that comes after the electrical is done.

SPEAKER_04

Yeah. I got everything to really do all the repairs that I need done. I just can't do it myself anymore. Sucks getting old, dude. It does. And if you're partying or you drink or smoke or anything, but put that shit. Let me tell you. I mean, we're talking experience, you're talking time.

SPEAKER_03

I I completely understand, man. And unfortunately it's unfortunate because I I do have to talk to people in similar type of situations frequently where it's like I own this house free and clear, and I want to be able to cash out my equity, but my health won't allow me to do certain things that I used to be able to do. And what do I do? You know, and of course, from my standpoint, it's you know, I I my job is to to buy houses, and so I you know, but I also feel for you where it's like you want to be able to sell this one and go move into something that's easier for you to maintain, probably newer in a different location.

SPEAKER_04

I just want to get out of town.

SPEAKER_03

I mean, I'd take a two-bedroom, I mean, that's four-bedroom, you know, and it's got and I've been just yeah, so one of the things that um have you contemplated that if you were to walk away with say a hundred thousand dollars from this house, would you be okay getting a mortgage on your next property with a hundred thousand dollar down payment?

SPEAKER_04

Uh probably not, because I I mean, dude, then they got uh they changed all the laws on like social security and everything. And when I uh got sick and everything, they uh I was supposed to get like uh $2,700 a month, and then the pandemic hit. And then everybody was fucking sucking off the government's pity, and I got they only gave me one year back pay, they owed me from 2016 back pay. And I only got one year's worth of back pay. And I uh I lost, I mean, I had to sell my Harley, I had to sell trucks and cars, I had to sell just about everything I had to get to keep above water because I mean they the doctors don't play games, they'll come take your shit. My heart operation was uh what was it, $275,000 to put in a def put in a defibrillator and a uh a face maker. It was $275,000 and the insurance. I didn't uh they covered well they covered yeah, I can't cover a lot. But still I owed uh I think it was my fur my out of my pocket twenty-five thousand dollars now. I mean, they want it now, you know.

SPEAKER_02

Right.

SPEAKER_04

And it was just like, I mean, everything hit me. And uh I mean I had a little that's I mean I had a little uh I got a handy man, you know, fixed up kind of you know business going. And it was just uh I mean everything hit the shits at one time. So you know, I don't mean to make you feel sorry for me or anything. I'm just I mean we're making it, but I got cut down. I mean I don't get anywhere near $2,700, let's just put it that way. I get $956 a month.

SPEAKER_03

And that's that's basically your sole income?

SPEAKER_04

Pretty much. My wife does, you know, she works part-time and stuff, but you know, she ain't degrades to health. I mean, you know, for another month, I'll be uh 60 years old. I know they ain't old and if I took care of myself, but I can't have both ends. I drank drugs and rock and roll at the whole, you know. And I've built bridges and I use my body and uh now paying for it.

Creative Options Beyond A Cash Sale

SPEAKER_03

So that I mean, because you own the property free and clear, there is the option where you could create this as a source of income for you, where instead of taking a lump payment, you could receive the payments and monthly installments and be the bank. Is that something that you would potentially be interested in?

SPEAKER_04

Yeah, but still, I mean, if I put a hundred thousand dollars down on asset, it means you know, um, then I have nothing else. I mean, there's nothing to like if it needs fixed up, you know, because every house needs something, you know. You can have all the instructions you want better than that. And it's still gonna be uh there's not there, but you know I just I don't know, man. I mean I really want I don't know what I want to do, to be honest. I mean there's I just don't see me finding something as good as I got right now for 100 grand anywhere. I mean unless I go out in the middle of fucking nowhere.

SPEAKER_02

Where do you want to move to?

SPEAKER_04

Just have the country a little bit. I mean, you know, you know it doesn't I mean I like to say kind of in Missouri because it's cool area, it really is. But uh I mean you got you got hunting, you got entertainment, you got whatever you want to do, really. And uh it's uh pretty good place to live. I mean, the schools are good.

SPEAKER_03

You know, the schools are good, uh but like give me give me a city that you would want to move to, just like Mildred, Powersight, Dickens, where where are you thinking?

SPEAKER_04

Parasite wouldn't be bad, uh uh Omaha wouldn't be bad. That's where architecture just was always right. Um you know, somewhere like in the uh Alpina, maybe. I mean, just you know, just little towns.

SPEAKER_03

So there's like uh there's a half acre lot in Fors Forsyth? Forsyth? However, you say that. Forsyth, yeah, Forsyth. Forsyth. $50,000 half acre lot. I mean, what if you just bought a lot like that in $30,000? like a mobile home on it. I mean, I don't know. I'm just throwing out the idea. I'm just on I'm on Zillow right now and I'm just taking a look. I mean, just to see what's available over in a random city that you choose. And I'm seeing there's quite a bit. I mean there's 15 acres available for 65,000. I mean I you know I this is some some land I could go to just houses um and see but I it's gonna be hard to get something that is that you wouldn't have to make any sort of monthly payment. I mean there's there's stuff available I mean there's a two bedroom one bath thousand seventy square foot for 75,000 in Rockaway beach this place looks cool as hell yeah it's just uh they got uh it's a mom and pop water company you know mom and pop uh sheriff's department mom and pop's uh you wanted to live in the country you're gonna get mom and pop if you go out to the country yeah mom and pop's one thing but these guys are like I mean they've they're racketeary I mean they they really hear you all right well here we go two bed one bath 900 square foot 110 000 and four sight see there's stuff available yeah I mean I'm just saying and I'm looking at this this is a cool house I mean it's it's stone on the outside I mean it ain't fixed up on the inside by any means but it's it's still a cool property I mean there's stuff available is what I'm saying I I just the situation really I mean I this the situation is is that with us yes we're going to be at a discount but we are here for your convenience so we move on your time frame and we we want to help you in with the situation that you're in so if that means you need 90 to 120 days to go find another property that matches the amount of money that you would be receiving then we can do that.

Convenience Versus Listing With A Realtor

SPEAKER_03

If you go on the market you no longer are getting convenience you are inconvenienced. You have a realtor that doesn't care they're going to try to get as much money as possible for the property they're gonna tell you everything that you need to do your buyers are going to do inspections they're gonna have loans there's gonna be appraisals there's gonna be inspection items you're gonna have to invest money to get the property that approves through all of that and so the situation that you're in is you've got to make a decision on do you want to go through that process or do you want to work with somebody like me that would be convenient but for a price did you hear me oh man I hope you heard that that was uh I brought I broke everything down in an epic fashion did you not hear anything I said uh off at the last probably five words or whatever oh well the last five words were discount I need a discount that that was the last thing I said basically so that's that's just it's really up to you on and what is the most important thing to you and and how you see that playing out through those two scenarios. If you're in a position to where you can deal with the inspection items and the realtors and the showings and all that then I I tell people all the time you should not sell to me you should absolutely go try to get as much money as possible by listening with a realtor but if that's not in the cards then I I would I think I need to be at 115 is what I need to be at I mean I with all the I just uh well it's not only me you got it proved this way it's my lady too right now if you had a log cabin out in the middle of nowhere or somewhere I'd I'd do it in a heartbeat I would you can find me a two bedroom log cabin with water and sewer and you know basic necessities we can find them there okay so why not why don't we just sign a contingency contract to where over the next 90 to 120 days you take the time and we go find you that property for that price this happens all the time I'm buying a house right now contingent upon me selling another property I mean it's it's very common for there to be contingencies in the contract and that's why I'm saying I offer convenience yes it it comes at a price tag because I'm an investor but I don't need to close on this in seven days hell I don't need to close on this in seven months we could take 10 months for as long as I care all I care about is is that I'm getting it at a price point to where when I fix the property up I could be profitable on the back end for my investment and then whatever we need to do in the meantime to give you time to find the next place to go I'm willing to work with you on that all right uh well let me roll it over to my wife and say we're gonna try to find her log is she there nothing no she I'm a I'm a meta buddy myself. I gotcha well when would be a good opportunity for me to speak to to both of you together so I can kind of break down because I mean I I know how this goes she's gonna be like well I don't know I mean it would be better if I had an opportunity kind of explain this to both of you guys is there a time frame in which I could speak to both of y'all I bet tomorrow sometime uh like uh 11 o'clockish somewhere around you know anytime yeah I mean we're there all most of the time okay so tomorrow around eleven yeah something like that okay all right well let's do that eleven or anything I mean it could be because like I said we're we're there all day I mean we don't go nowhere.

Contingency Plan And Next Call Setup

SPEAKER_03

I gotcha and then how about this what you tell me what would it help you with the having a conversation if I sent you a contract and it outlined the all everything that we spoke about today where it's hey I'd be buying the house 215 or 115 but then contingent upon you guys finding another property that fits your needs in however many months and then that way when we go over this together we can read through the contract together and if it's a good fit then you can sign it. If not we go on about our ways would that be would that help you kind of conversating with her yeah I mean I don't want to sign nothing because I mean I know it's gonna sound stupid but man I have been had it broke off in me so many times on doing and I I I'll hunt you down like a dog if you took my property I mean I'm not saying you would no don't get me wrong but there are people out there that get you to you know say a bunch of fancy words and stuff and I'm not the most educated in the world but you know I can be con not very easily I could be connected I mean if I was to lose you know dude stupidity well to be clear I wouldn't want you to sign anything until I speak to both you and your wife um and then outside of that what you would be signing would be a contract to sell me the property and you could look it over we could we could call a title company that we would be using they could it kind of show you how this works um you could contact your own attorney um if you wanted to to have a third party review the contract but I wouldn't want you to sign anything until you phone understanding exactly what you were signing okay I mean you're the most honest one I have to talk to I mean I've talked to several people but uh none of them check it there's this one bunch that are really assholes they wanted to give me like 50,000 what was their name uh it's an Oriental bunch oh well his name was probably King Kong I actually like him he's actually a sweet man but he sucks at what he does it's okay one of these days I'll teach him but I'm actually I I actually I'm I'm fairly well known in in the industry and one of my big sticking points is that we should be more transparent with the sellers uh about what we're trying to accomplish and just being honest with you and breaking down the numbers and showing you how we get there um because one of the biggest things that's frustrating for you guys is when you don't understand how we just told you a really low number and I it makes sense but it's this is real life like you just had heart surgery like you this is your your house your livelihood so I I understand this um so I I just want to be respectful of your situation and hopefully we can make this a win-win situation where we can help you guys get what you want and also make it a profitable deal for us. So um let's let's do this hardware box when it's all over with right well let's let's have I'll call you tomorrow at 11 o'clock and we'll go over this together with your wife and and if it's a good fit then let's do business and if it's not um we'll wish each other the best of luck okay all right sounds cool all right thanks dean hey no problem again my name's RJ Bates RJ Bates yes sir all right well thank you rj for being honest with me yes sir thank you sir bye bye bye bye well that was a master class on how to talk to sellers thank you sir thank you i was trying to remember all those things that i say during the tu implementation calls when I did call reviews like what would I say to myself right

Post-Call Breakdown On Ethics And Language

SPEAKER_03

now um no they think what do you think the issue is there just lack of committing or you know because you got it you got him there you got him at he's gonna do it why couldn't couldn't how confident are you that you can find him something for 115 I mean that doesn't seem hard i've got i i pulled one up i mean just literally in one of the little towns he said what if you said i will find you a house oh i i fully plan on on doing that i mean yeah i don't i don't want to say i will find you a house uh because i don't want to be brokering real estate right so we we have to be very clear in our communication in the fact that our company will support him and give him the resources to be able to find him a house and so we'll go find a local realtor probably inside of TU that could come in and support him in that role um but I don't I don't want to use the improper language there um just especially because we're on live and I want everybody to understand like the the the importance of the words that we choose right uh you know you and I are are big on talking about the regulations and everything that's brought down on us real estate agency yeah right I I think we we would be fools if we didn't think that Jerry and I are not scrutinized over the language and the words that we use here and so for all of our friends over at NAR we're not brokering real estate we're doing everything the correct way so uh you know I listen I I think the guy is in a position where he has to come to terms I think that was a great conversation there to get him to where he understands and like he said I don't understand why someone's offering me 50 and and this is the difference between what we do in TU and what the industry does where it's oh you just anchor him at 50 and maybe you'll come up to 75 and you get a hell of a deal well sure maybe that's the case but when you actually listen to the man and you hear everything that's going on and is that fair to him are we really showing him all the options uh I I think this is uh a fair deal I think I can make anywhere between a 10 to $15,000 assignment fee. Um it's just outside of Branson Missouri so it's not a bad location. It's a location that we've done a significant amount of deals and so I think tomorrow I'll I'll either myself or my team will hop on that. And uh we we should as long as the wife is not a a huge problem we should be able to get that locked up