Breaking Down a Real Seller Call | TU In Review

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Transcript

SPEAKER_01 0:07

Welcome

Why Unclosed Calls Matter

SPEAKER_01 0:08

back to TU in review, the series where I am going to review a live seller call submitted by a titanium university member. And today is Mr. Adrian Pearson. He submitted this call over to me. It's a pretty lengthy call. It's about 35 minutes. He says there's a ton of objections. The reason why he submitted it over is because he felt like this was a closable lead, but he was unable to close it. Now remember, in this series, I'm not wanting the TU members to submit seller calls that end up in signed contracts. We're wanting them to submit over the deals that don't get closed so we can figure out why and we can work to be better. So shout out to Mr. Adrian Pearson for submitting this so you guys can get better alongside with him. Let's get into the call.

Seller Motivation And Debt Uncovered

SPEAKER_05 1:06

Hi Sean. Hey, my name's Adrian. I was giving you a call about your property there on Terry Lee Lane. Are you still looking to sell that one?

SPEAKER_03 1:16

Possibly.

SPEAKER_05 1:17

Okay.

SPEAKER_04 1:18

Um also looking into maybe refinance. I don't know what I'm gonna do yet for sure, but just trying to see what people are would be willing to offer on it.

SPEAKER_05 1:28

Okay. How much would we look how much would you be looking to get?

SPEAKER_04 1:31

Well, I'm thinking of over 300 right now. That's what I'd like to kind of big spark pre point. Um that's the hell of a deal. I don't want my phone. Can you is it is it ringing in your ear?

SPEAKER_05 1:49

Um, it's not too bad.

SPEAKER_04 1:55

Maybe it'll stop. That's better. Um, yeah, it it's the address is 4808 Terry. I think it's about a hundred or four hundred and nine. If it was up to market specs.

SPEAKER_03 2:11

Okay.

SPEAKER_04 2:12

Yeah, um, it's not it is not laudable right now. The conditions it needs to have carpets to put in it or trigger the floor or something. It has closed doors and interior paint. It's really what it needs. And then a kitchen upgrade, whatever that looks like. It has the old oak uh cabinets in it and stuff. People are liking the paint it look a lot better than I guess this these days.

SPEAKER_03 2:38

Okay.

SPEAKER_04 2:39

So um, but I've I've been here 18 years. Um, I'm behind on my taxes and why I'm selling it, I'm trying to get that satisfied. Yes, and get the debt satisfied. So that's where I'm at with it.

SPEAKER_05 2:58

Okay. Um, if you don't mind my asking, how far behind are you on the taxes?

SPEAKER_04 3:03

29,000 with penalties and late fees.

SPEAKER_05 3:07

Okay, 29,000.

SPEAKER_04 3:10

Yeah, I got 10 jobs for rest, but I got also satisfied child support debt.

SPEAKER_05 3:15

Okay, and how much is that?

SPEAKER_04 3:17

138.

SPEAKER_03 3:20

Okay.

SPEAKER_04 3:21

And then there's a $2,200 fee. Uh failure to get a permit fine with late fees from 2017 has just been the account ring. Um I gotta take care of that's $2,200. I might be able to talk to them now because the things have been fixed that they've cited me for.

SPEAKER_03 3:39

Yeah.

SPEAKER_04 3:40

Um they'll probably work with me if I had cash, you know. Yeah, it probably fell down substantially. And then the other debt is uh the traffic ticket for $1,100 that has to be paid, and that should be pretty much everything.

SPEAKER_01 3:54

Okay. So pretty interesting start to the scall. Um, Adrian obviously using the closure's formula here, he had a choice at the beginning where the seller was kind of like, potentially, I'm also exploring to refinance. He had a uh a path where he could have kind of really tried to hammer the seller on. Well, I only want to have this conversation if you're interested in in selling. He also had the choice to to kind of pull away when the guy's like, I'm taking offers, I'm only taking offers over 300,000. But he decided to go down the path of the the guy said, I'll sell. Um, obviously, if I get the the right amount, I'm looking for offers over 300,000. So he chose to go or for the right amount. That's when he chose to go into the second question, which is how much are you looking to get for? What is that right amount? And that now has led into a ton of reasons as to why this guy probably should sell. I mean, I'm doing this call review in early August. This guy is facing losing his property on October 14th, and he's got a ton of liens on the property for all kinds of different things: child support, traffic tickets, citations from the city. So he's got a lot of reasons, a lot of pain points there. And so excellent decision by Adrian, right? He didn't know it when he when he made that decision to kind of, hey, I'm gonna accept your kind of vague answer on if you want to sell. And now it's led us into all right, we we probably are a solution for the seller, depending upon how much he owes on top of these liens. And so Adrian's got a lot of choices here, he's got a lot of different directions that he can take in regards to the the next questions that he's gonna ask. So I'm curious to see where he takes that.

SPEAKER_05 5:49

Uh see here. Um,

Auction Deadline And COVID Rent Damage

SPEAKER_05 5:52

you mentioned that date of October 14th. What happens then?

SPEAKER_03 5:56

It goes to the auction.

SPEAKER_05 5:58

Oh, to the taxes?

SPEAKER_03 6:00

Yeah.

SPEAKER_05 6:05

And what options are you sploring outside of selling it?

SPEAKER_03 6:10

Well, I mean we're gonna sell it and satisfy the debt.

SPEAKER_04 6:14

I'm trying to get I'm trying to get some of my equity back out of it. I've been here for 18 years. And I got behind during COVID when we couldn't kick out the tenants because uh there were dislocated workers. The state of Oregon wouldn't let people let landlords evicted them while COVID was in in you know, in effect. There was gonna be a subsidy through the Oregon Toast Act that was supposed to cover their their back due rent, but um the people living here uh got behind. They used they used that subsidy to move it to move out of here into another place.

SPEAKER_03 6:52

Really?

SPEAKER_04 6:53

Yeah, they were actually transferred it to a different fucking place, and then I got stuck in a bunch of no-paid, uh, you know, two years of no paid rent.

SPEAKER_03 7:01

Yeah.

SPEAKER_04 7:03

Like three people, so it really set me behind. That's what I always came up with. My texts was by writing rooms in the house here. So after that, it was a nightmare to get certain ones out, and then um I just got gunshot. It's actually the first time I lived here by myself in in 18 years. Uh I got him out of here about four months ago and I've just been staying here alone. So trying to work on the place and get it put back together.

SPEAKER_03 7:27

Yeah.

SPEAKER_04 7:28

But I just don't I don't have the money to do what it needs to get up to full market value. I just don't um put on it in 2009. This is still pretty good shape. I think you could probably he'll he'll pass from that.

SPEAKER_03 7:41

Yeah.

SPEAKER_04 7:43

It's gonna have to be upgraded eventually the next few years, too. But you might get three years out of it, probably. Maybe four. Um, what were you thinking? Are you trying to do an investment flip or are you trying to do a rental?

SPEAKER_05 7:55

Or um, it would really depend on what the numbers look like. I would either do a flip or a rental, um, would be obviously my two main options. What do you think would be best for it?

SPEAKER_04 8:08

Well, it it would make it great. Like I've used it as a recovery house when I first bought it.

SPEAKER_01 8:15

I absolutely loved that question by Adrian. The seller is is trying to explore what is Adrian looking for? Is he looking for a flipper rental? I love Adrian kind of flipping it back around and saying, I don't know, what do you recommend? And and that's kind of our way of being like, you know, you know more about the property than we do. So you tell me, you're asking me to give you $300,000. You know I'm an investor. How does that make sense? This is kind of like when you put them in the four seller buckets and you're you're looking at it as hey, highly motivated, incorrect price. We have to educate them. The beginning stages of educating a seller is having them educate us on their thought process, their numbers. So now he's asking, he's already starting that process, and it was very fluid and natural because the seller actually kind of started that process.

SPEAKER_04 9:14

I was actually not really recovery, but recid recidivism, which is where it's re-entry program. Um, and I ran it to people that went through a program here at Eugene called sponsors. After they did their 90 days ago, then I ran a room to them because I was feeling friendly, and so that worked out good. I did it by the week. And it's actually the house has actually got five bedrooms in it right now. It's classified as a three-bedroom, but that was one of the permanent issues. I had an office out in the garage that has a loft bed in it that I lived in, and then I rented the other four rooms. So it was pretty feasible for me, even though things were rolling right.

SPEAKER_03 9:49

Yeah.

SPEAKER_04 9:50

But I've been here a long time. 18 years is a long time to be in that spot.

SPEAKER_05 9:54

It is, for sure.

SPEAKER_04 9:55

Yeah, my kids are growing up now and gone, and and so um it's like a country boy, I like to get back out out of city limits and take the boy out of the country, but you can't take the company out of the boy kind of thing, you know?

SPEAKER_05 10:09

Yeah, I understand that for sure.

SPEAKER_04 10:12

Yeah. It's been tough for me to live in the city, but I haven't had a car's license, so it worked out good because I have the bus line and other means of you know, electric bike and stuff like that, so I was able to get around and do what I needed to, but um I'm gonna be petitioning the courts and hopefully get my license back during the next couple months, so that gives me more options and um I'm just trying to figure out what way to go with it.

SPEAKER_01 10:34

Okay, so so side note because we can see Adrian's screen, and now we're gonna have to blur this out to be on YouTube.

Stop Chasing Unicorn Comps

SPEAKER_01 10:44

But what he's doing right here is he's clicking around and he he's trying to find the the sold values of the properties, and and I can almost kind of read into Adrian's mind. And if you've been doing acquisitions for a while, we we you probably have have experienced this before, but it's almost like he doesn't want to accept that the the $300,000 number is an incorrect number because he can sense that this seller is highly motivated, and so it feels to me, and maybe I'm incorrect, maybe he does this on every deal, but it feels like he's trying to find higher comps, a unicorn comp. He's he's clicking the bedroom count from three to four to see if that impact the values. He's using Zillow a lot instead of going into prop stream. I would have I don't mind him going to Zillow just to kind of look around, but I would rather go to Zillow to look at like the actives today, what they're listed for, and and then just rely on the sold comps inside of prop stream. It's gonna give you all the information that you need right there. It's gonna show you the bed and bath count and the square foot and the year built and the days on market and all of that. I mean, the facts are this is this is a incorrect price. We're we're not gonna be able to come up to that $300,000 number. And we've really got to understand the dot process. I know he says he wants to capture some of his equity, but how much equity, why, and and then how does that satisfy him? What happens if he doesn't get an offer above $300,000?

SPEAKER_05 12:19

Kind of once you do get this sold, what is your plan? I know you mentioned a little bit of it. Go out to the country, like do you have a spot picked out, or what does that look like for you?

SPEAKER_04 12:30

Well, I'm just gonna try to find something small that uh maybe has an ultra or something on it. Something like that. It's I'll do something simple. Um I'll be 57 this year. Um I'm not trying to build mansions or kill snakes, you know what I mean? I'm just right now at the end of the line here, so I want something that that is um commercial friendly, I guess you'd say.

SPEAKER_05 12:56

I'm not sure I understand what you mean by that.

SPEAKER_04 12:58

I'm a car nut and I'm a um I do metal art and I do metal fabrication, so I have a ton of stuff that's industrial area in my neighbors in the neighborhood. This is uh uh HOA, and they so they give me shit all the time because I just got cars from our still cars that are getting worked on the driveway, and it's it's a really quiet neighborhood. Um I pretty much pay here more than all the neighbors. Uh most of their kids live in their houses now here. So I've been here a long time, but we came in 08.

SPEAKER_03 13:29

Okay.

SPEAKER_04 13:30

So yeah. So uh you know now, I'm I'd like to find a political residential spot where I could hook up a Heinz Kaiser building or something, maybe, and just live in a loft.

SPEAKER_05 13:40

Yeah.

SPEAKER_04 13:41

See how things play out.

SPEAKER_05 13:43

Kind of have your shop down below and then live up above.

SPEAKER_04 13:46

Yeah, if I was close enough to the city where that was feasible to do, because I do make a lot of money just transferring cars and fixing skills for people.

SPEAKER_03 13:52

Yeah.

SPEAKER_04 13:53

I got a tire machine, I run a little tire store, and um I'm always buying and selling stuff up garage sales and storage unit auctions and whatnot.

SPEAKER_05 14:01

So yeah, I need somewhere to put it all in between.

SPEAKER_04 14:04

Yeah, just be busy. This house has got oh my god, I had no idea I had so much stuff until I started trying to clean out these two rooms that I'm just they're packed full of just unbelievable amounts of shit.

SPEAKER_01 14:16

So this is uh unfortunate circumstance. The the question that Adrian chose to ask, you know, where are you gonna go after you sell the property? Do you have a place? And now here we are, the seller's rambling and telling us about how successful he is, and he owns a tire shop and all this. And it's like we've got to steered away from what we do need to be talking about. Now, this was a discovery and exploration questions to see if, hey, the there's another pain point there associated with the move or the timeline and whatnot. But Adrian's got to find a way to take control of this and get it back on point to talking about the property and what the seller needs here. Because as of right now, we're we're not discussing that at all.

SPEAKER_04 15:01

Like, why do I even keep it? Because there's something they should have probably went to Goodwill from the storage units, but you're thinking we're gonna have a big sale and make a buck on it, but people don't pay nothing at a gross sale, you know.

SPEAKER_05 15:10

Oh, yeah, they're just up there uh looking for looking for deals.

SPEAKER_04 15:15

I'd like to get an auction thing going would be ideal.

SPEAKER_01 15:19

Like a license to be an auctioneer, they'd like to just coach full of stuff and you know so Adrian's on the profit calculator right here. I do agree with his after-repair value of $400,000, especially just on a quick glance. I'm not diving into the comps or anything like that, but I feel like that's a fair number. Um, I do think the the rehab of being 40 grand, I think that's light. I think that's that's pretty light. And so that's gonna cause us, you know, he's putting in a contract price to sell our 250,000, $20,000 wholesale fee that puts $42,000 profit to the end buyer. I just think that the issue there is uh that the rehab is light, and so that's gonna throw everything off. I do like the fact that he's being aggressive with the $20,000 assignment fee. Now, again, he he might be toggling the numbers, but just on a first glance, right here, the only thing that I would really change is that contract price to sell her and the rehab.

SPEAKER_04 16:16

Well, it's I do a lot better, I think.

SPEAKER_03 16:19

Yeah.

SPEAKER_04 16:20

Uh most of this hair is gonna go in the garbage can. I'm not gonna leave a mess. I got a fifth wheel I need to get out of here yet. It's falling apart, full of hardwood lumber. Um, trying to market that right now. Um and get that thing cut up and out of here. I'm gonna turn it into a flatbed and just throw what I have to take with me on it and get out of here with it. I'll leave the plant. So we'll see. Might all end up at the scrapyard. Uh, just depends on how we do on the house.

SPEAKER_03 16:45

Yeah.

SPEAKER_04 16:45

Um, I my main thing is I did the time I just want to get some equity back out of it.

SPEAKER_03 16:50

Oh, yeah, for sure.

SPEAKER_01 16:51

And I've been getting really insulting offers from Ah, that's that's like the first real misstep there of Adrian's, where the seller's like, you know, I just want to get my equity back out of it. Instead of saying, Yeah, yeah, sure, I would have liked to have asked them, you you brought up you you want to get equity out of the house. How much equity are you looking to get? How much equity do you have in the house? How much do you want net in your pocket? One of those questions right there would have been fantastic instead of just agreeing with the seller, because by agreeing with the seller, it didn't it didn't do anything, he didn't hear it. Like he he just breathes right there. He's still talking. I would have loved to have seen a question there, Adrian. A couple people, and it's just really discouraging. Where oh well maybe letting him ramble a little bit longer because that next sentence was important. I've been getting some really insulting offers, and it's been really discouraging.

Insulting Offers Become The Leverage

SPEAKER_01 17:52

This is a this is a major talking point right here. This is where Adrian Adrian really needs to kind of shift the conversation to let's get down uh what we need, what's been happening, why has that been insulting, what's been the feedback? This is important.

SPEAKER_05 18:09

Where have those offers been, if you don't mind my asking?

SPEAKER_04 18:12

Uh one was at 225 and one was at 245. What was uh excuse me, that's not correct. It was it was uh 185 and 225, is what you came in at.

SPEAKER_05 18:25

185 and 225.

SPEAKER_04 18:28

Yeah.

SPEAKER_05 18:29

Okay.

SPEAKER_01 18:30

That's what I thought. Funny enough, Adrian literally has on his profit calculator a contract price to sell or 225, which is the same offer that he's already received, that was insulting. Now, Adrian could go back to the profit calculator and try to manufacture a deal and start toggling numbers, or he sits back, doesn't touch his keyboard, doesn't touch his mouse, and says, let's have a conversation about why was 225 insulting to you? Why did they tell you that they were coming in at 225? Why do you think that's insulting? How did you come up with the numbers that you're coming up with? Because now we and then in the education process, we want to reverse engineer and show how we're coming to that because that's what our competition is not going to do. They just lowballed him probably and told him 225, and he doesn't understand why that's the offer, so it's insulting and discouraging.

SPEAKER_04 19:30

I paid for it 18 years ago, so I mean, come on, you gotta be better than that. Yeah, that wasn't perfect, but it's still a good solid home. It's um it's right in the front in the middle bathroom, uh, underround the toilet stuff has all been fixed two years ago. I did did that whole floor in there and cut all the rod out of there from where I had a water leak I wasn't aware of back in there behind the toilet. Um, the master bathroom seems Ah ah, we missed a moment here, Adrian.

SPEAKER_01 19:56

You almost gotta hold on. Before we go down that path, I'm pretty sure you tell me about the dry rod around the toilet, but I want to talk about these other offers and what like you gotta take control during that moment right there.

SPEAKER_04 20:08

It should be pretty solid, but it might it might need to be opened up, but it shouldn't be a big deal. Um everything looks pretty good, it's just there's a split, you know, linoleum around the toilet. So I don't know what the extent of that could lead to, but it feels real solid underneath it.

SPEAKER_03 20:23

Yeah.

SPEAKER_04 20:24

Um the kitchen has marble going in the floor right now that that comes off the dining room corridor in the main entryway. It's all done in 12 by 12 marble tile. Um that was done probably eight years ago.

SPEAKER_03 20:40

Mm-hmm.

SPEAKER_01 20:41

Ah, he did what I didn't want him to do. He went and he and he changed the price from 225 to 245. Adrian, that's you you you listening to the seller and being afraid of asking questions about why was that an insulting offer? You think you're going to fit right in line with that? Our job is to buy it at the right price, not not just to go get it signed. So if you felt like 225 was the right price, you should have kept it there. And I'm not saying that's what you were thinking, but I I did kind of anticipate that you were gonna go back to the profit calculator and change that price. And and what's happened here is you you're kind of falling into the I'm always agreeing with the seller. I understand. Yeah, I got you. Instead of silence, question. That's if if I could make one huge change for you, critique, that would be it so far. You've done you navigated this conversation pretty well. It's just there's been times where you miss the opportunity to ask a question based off of what the seller said by agreeing with him. And because he's a talker. He kind of shifts the topic on you. And that moment just like a minute ago, where we were talking about the other offers, how they were discouraging and insulting. We got to get back to that.

SPEAKER_04 22:14

I'm redoing the kitchen because it didn't get crowded right and they all broke and cracked. So I had enough tile. I was just going to brighten it up and throw that in there. Um so they'll have a new moral floor in it. So that just matches through the main part of the house. I don't know if you guys just ripped that out and go purgo a lot of places like one floor through the whole building, but I don't know. I'm old fashioned, I like the transition.

SPEAKER_05 22:36

Yeah, it just kind of depends.

SPEAKER_04 22:38

Yeah, depends on if you're living there or what you're doing with it.

SPEAKER_05 22:41

Yeah.

SPEAKER_04 22:42

But um, that's where I'm at. And so you can do your math and your homework, and you want to make me an offer, you have my number.

SPEAKER_01 22:52

See, the the seller talked for so long, he's trying to get off the phone now. Um, and I I have no idea why you're back on Zillow, why you're looking at your computer and comping. You've got all the information that you need. You need to be 1000% all in on having this conversation. In fact, Adrian, I had a a call review with Hunter Spencer and Cameron Lawfrin the other day. And and Cameron was doing the exact same thing where where he was so comping and underwriting and numbers oriented. I told him, you have to get up and you have to walk away from your computer at this point. Start pasting your office. Get away from this. You need to be solely focused on what the seller is talking about and what questions you're gonna ask to find out how we can get the seller to come to the price that we need. Because October 14th is coming and he's saying these offers that he's received. Do we even know what that net amount was to him? Do we even know what the net amount he's desiring is? Does he even know? Sellers, more often than not, have no idea how the math actually works when they sell a property. And so we need to start diving into that, and you definitely do not need to be comping and underwriting anymore at this point.

SPEAKER_05 24:14

I mean, uh, just so I'm sure you said that can be used as a five bath or a five-bed. How many official bedrooms are in it right now?

SPEAKER_04 24:21

It's three, three official bedrooms, but the master is split in two, and there's two closets in it, so it works out well like that.

SPEAKER_03 24:27

Okay.

SPEAKER_04 24:28

Um, I could I could tell these this it's just a pony wall put in there like a divider wall that splits in like a T.

SPEAKER_03 24:34

Yeah.

SPEAKER_04 24:35

So the back bedroom is like eight foot, maybe seven foot by uh I would say fourteen, and then the other fourteen, uh the other part is gonna be these seven feet by uh fourteen wide discounted divider splitting it with another door that that where it's technology like where the hallway would be, uh the closet area.

SPEAKER_03 24:55

Okay.

SPEAKER_04 24:56

So you can out you come into the master bedroom and you go past the the first closet on the left and pass a door on the right that goes into a little like eight by eight little it there's just a tiny little box of the room. That would make a good office. It has a loft in here as well.

SPEAKER_03 25:10

Okay.

SPEAKER_04 25:11

A little loft, so there's up you know, there's storage above where you can put the built bed on top and store below. Um the room is really probably seven foot by nine foot.

SPEAKER_03 25:22

Okay.

SPEAKER_04 25:23

But then with the door open, and you have the big the hallway, right? There's a corridor, I call it the corridor, and then there's a big closet, and then it's a fanny deck closet right next to it, adjusting in the master bedroom. Um, but it has a divider that has another door in it that goes to the back section. I can send you pictures of it if you want.

SPEAKER_00 25:42

Okay, yeah, that'd be great.

SPEAKER_04 25:43

Um, well, because at a certain point a week, um, you're actually getting 13 months, and then uh, you know, that's $500 a month every four weeks.

unknown 25:55

Yeah.

SPEAKER_04 25:55

So it worked out good when I had all you know all four of them ready. It was worth it.

SPEAKER_05 26:01

Yeah, that's definitely uh paying some bills for you.

SPEAKER_04 26:04

Yeah, I did. I lived here a long time without a house payment. So I paid the house off in 2012.

SPEAKER_01 26:10

Nice. Definitely gotta move away from the oh awesome, gotcha. Yeah, I completely understand. Like those those small little agreements, oh man, it's it's crushing the conversation because he's such a talker, like you're not really adjusting to like his personality, and so like every time you do that, he has a tendency to just keep talking and then shifting the conversation. Like, I'm gonna now talk about something else, you know. Like, yeah, I used to get $500 a month in rent, and then it was awesome. Oh, yeah, that's great. Paid some bills for you. Yeah, the closet's six by 12, and it's like, oh, now we're talking about something else. It's just really killing the conversation because you keep agreeing with him instead of asking him something. So you I know in your mind you're like, oh, I've really got this guy opening up talking, but we're not capitalizing on the moments that are are coming up throughout the conversation because we just keep agreeing. And honestly, it sometimes it's like, why are you agreeing? Like, he wants $300,000 and we're talking about $500 a month in rent. Like, it's no, no, I don't want to say yes to any of that. We we got to shift it back to what we want to talk about.

SPEAKER_04 27:30

Yeah, that was kind of a good thing, but kind of a curse at the same time because I haven't charged anything since then, and so I'm having a problem borrowing money, even though I have a $410, $410,000 home. I can't borrow 10% of that to pay my taxes, it's become an issue.

SPEAKER_05 27:46

Yeah, it's crazy how that works off. Like I paid off uh my car not too long ago, and my credit score actually went down because they said I'd lost the debt. Like I lost the good debt. It's crazy.

SPEAKER_04 27:59

Yeah, they want us to be uh they want us to they want that interest.

SPEAKER_03 28:03

Yeah. Yeah.

SPEAKER_04 28:06

I'm paying for it now because they're like, well, it's not liquid assets. Well, the hell it ain't that we're like can't run away with the house, you know.

SPEAKER_05 28:13

Yeah. No, I read, I think it was a tweet someone said, like, I think credit scores were made up in like 1988. And then, like, I mean, before then you could buy, you know, anything just based on you know a checkstub and everything like that. Since then there's this fictional three-digit number that determines a good chunk of what you can do in your life, and like the person ended it with like uh boomers really, you know, chopped themselves up and then pulled the ladder up behind them.

SPEAKER_03 28:45

Mm-hmm.

SPEAKER_05 28:46

That's crazy.

SPEAKER_04 28:47

Yeah, it is. I mean, I bought my house in 96, I just went out bank statements.

SPEAKER_03 28:54

Mm-hmm.

SPEAKER_04 28:55

And they didn't, I mean, I was working for I just started my own business and working for myself, and it was pretty new, but they went out the bank statements for six months, and they were like, yeah, give you your finances also.

SPEAKER_03 29:06

Yeah.

SPEAKER_04 29:06

Yeah.

SPEAKER_01 29:07

They'll do that today too if you if you're running a business or whatever, but so I mean, like we also had a massive mortgage crisis like two years after that.

The Net-To-Seller Question Appears

SPEAKER_05 29:18

But how much would you be looking to walk away with? You know, it looks like you have around 46,000 in debts you need to satisfy. How much do you need in your pocket to walk away?

SPEAKER_04 29:30

Well, obviously, as much as I can get out of it. I mean, it isn't gonna take a hundred thousand dollars to fix this place up to market value. I I painted the exterior last summer. Um, so it's got great paint. It's fighting on the outside. I mean, it'll it'll fly with flying colors we get past that part. The roof is gonna be questionable, but I think it'll be okay. You might the guy might get up there and scratch a little more of the moss stuff that's in between the edges of the shingles and maybe put Thompson's water seal on it or something. I see a guy doing that, he's called roof renew. And he just all he does is he just demosses it and then Thompson's water seals it. It's crazy. I'm in the wrong business.

SPEAKER_03 30:14

No, that's right.

SPEAKER_04 30:15

It doesn't look like a new roof, it just makes it shiny, so people think they got hey, cool, it's coded.

SPEAKER_03 30:20

Yeah.

SPEAKER_04 30:21

No, it isn't, but anyhow, more power to still if he can get people to buy it.

SPEAKER_01 30:25

So, how much do you think I think double down on your question? You asked the question, he didn't give you an answer. He went on a ramble about a story about demossing the roof. This is this is where you got to double down. Now, I think you're gonna go back to the rehab because he said it's not gonna take a hundred thousand. I don't hate that, uh, but I I still after that, I want you to go back to so how much do you need to net in your pocket? I understand you want as much as possible, but you're already like this is where you could leverage those other offers. So let's talk about like what is the number that you would say yes to in your pocket?

SPEAKER_05 31:10

I need to put into it to get it up to market value.

SPEAKER_04 31:13

Well, are you gonna do the work or are you gonna hire it?

SPEAKER_05 31:16

I gotta hire it out.

SPEAKER_04 31:17

Yeah, you're gonna probably spend 60 to 70,000, is what my lady friend thinks.

SPEAKER_01 31:22

Okay, I told you your 40,000 was light, even the sellers coming in. Now, Adrian, I I'm just gonna pick on you a little bit because I I know that this is kind of a an issue of you. I I think sometimes you're you're light on that that rehab. Um, and I I don't know why. I I would have liked to have seen you assume a little bit more. I mean, just on the street view. I mean, this guy's talking about he gets citations from the city for all the junk in the front yard. I mean, when you pulled it up on Zillow, you saw the exterior. I mean, it wasn't this guy, it doesn't look like he's living like a real clean lifestyle. I mean, it looks like this is going to be man cave, uh, pretty dirty, not really rehabbed. And he's doing the same thing that all elderly men do. Well, I painted the exterior of the house. I replaced the roof in 2009. What about the bathrooms and the kitchen? Oh, well, you fixed the dry rot around the toilet. Okay, like we know that bathroom has to be fully remodeled. We know the kitchen has to be fully remodeled. Interior, I mean, dude, I would almost go as far as to say I can almost guarantee this house smells like cigarette smoke. Like, we have to start making some of these assumptions. That $40,000 number was always wrong. And so now here we are at the 17-minute mark. And now you're back on the profit calculator and readjusting your numbers because the rehab number's wrong, that means your your price is wrong, everything's gonna readjust, and we're going to need to be significantly lower. Honestly, you're that 225 number that you had was was the correct, you should have never pivoted off of that. Probably gonna need to be a little bit less than that, but at least there you had the $20,000 buffer on the assignment fee, and it wouldn't have been a big of an adjustment mentally for you. And I kind of see it on your face right here, like, oh shit, like the sellers tell me 60 to 70. And you know, the sellers usually like now maybe he's accurate because he says his lady friend thinks that's how much, but this was a misstep way back in the beginning when you were underwriting.

SPEAKER_04 33:44

Okay, and because in these all new doors, interiors are those six-panel cheap doors, you know, just the paper type door. But they're hammered, every door in the house is hammered. Okay, and it's gonna be transparent with you. So, I mean, just plan on all the doors, including the entryway and probably the patio door, should be replaced.

SPEAKER_03 34:02

Okay.

SPEAKER_04 34:03

And I gotta bid on that for eleven hundred dollars, which is crazy because I can buy one for $199 and put it in myself and save myself $900, you know.

SPEAKER_03 34:11

Yeah.

SPEAKER_04 34:12

So, I mean, that's something we could talk about if I needed a couple extra days to stay here. Maybe I'll put a door in for you or something like that.

SPEAKER_05 34:18

Yeah, we can work that out for sure.

SPEAKER_04 34:20

I'm pretty handy like that. I just can't do it for myself. That's the problem. It's like I'm I'm also a mechanic, you know, my cars are new or run very good. So everybody else's shit runs crazy. Yeah, it's life out of device like that. But you know.

Numbers Overload Loses The Room

SPEAKER_05 34:34

Okay, so you're saying, you know, the market value of the house is gonna be around 400?

SPEAKER_04 34:39

409, I think it was last time I checked, but it could have come down to I'm not sure where we're at today. I haven't reached it.

SPEAKER_05 34:46

I mean, that's close to what I'm seeing. So, you know, I buy it for I can sell it for 405. I'm gonna have to put 70 into it to get to that number.

SPEAKER_04 34:55

Yeah, possibly you will you would, yeah. I I mean that's that's why I I would think. Because I mean a guy could come in here with a paint sprayer and white it out. There's there's no bad damage to the walls or nothing. It just needs to be freshened up, couldn't paint, you know.

SPEAKER_03 35:08

Okay.

SPEAKER_05 35:15

So let's say, you know, let's say I can get out of there for 55.

SPEAKER_04 35:20

Yeah, yeah.

SPEAKER_05 35:23

Okay. So you can sell it for 405. And then 55,000 in repairs. So 405, I'm gonna do some math here. See where I need to be. So 405 minus 55 is 350. Um for me, I've got closing cost and holding costs. So I'm gonna pay the closing cost when I buy it from you. I'm gonna split the closing cost when I sell it after I flip it. And I like to account for about five percent in holding costs, just to you know, keep the lights on, utilities, things like that. Um so that's around 12%.

SPEAKER_00 36:09

Okay. Why are we talking percentages? What's happening right now? Way too detailed, way too detailed.

SPEAKER_01 36:21

First of all, you should never change that $70,000 to $55,000. That's just gonna come back and bite you in the ass later. You should have kept your ARV at $400,000, $70,000. You should have adjusted the contract price, you should have stayed in the pocket with asking questions. So you think the the after repair value is $400,000, $70,000 re-amp. So, how'd you come up with your asking price of $300,000? I want him to say you buy it from me for $300, you put $70,000 into it, you're $370,000 in, you can sell it for $409, you're making $40,000 in profit. I want to hear him say that. Because then you could say, Well, what about the holding costs? Like taxes, the literal thing that he's about to lose his house to, Adrian. I have to account for taxes and utilities and cost of capital, and then I've got closing costs, and then I want to make profit. So I think this is why those insulting offers, like, did anybody talk to you about these other things? But again, it's hard because we had that moment to talk about why he thought those offers were insulting, and we never revisited that. And that's such a massive missed opportunity on this call. Because we want to understand why he thought that was insulting. I want to hear him say, because if you buy my house for 225 and you put 70 into it, you can sell it for 409, you're walking away with $115,000 in profit. I want to hear him say that because now we know how to educate him. But what's happening right now with like the 5% and the 7%, and that's 12%. You're giving him points of argument. Just holding costs, closing costs, that's realtor commissions, and when I buy from you, the title fees and whatnot, and then I want to make profit. Stop using percentages. We don't want to do that.

SPEAKER_05 38:48

You said 7,000?

SPEAKER_04 38:50

Your holding cost, yeah.

SPEAKER_05 38:52

Oh, yeah. Uh yeah, so my closing cost, my holding cost, that's around 12%. So that's around 40,000. Because that comes that's 12% of the resale value.

SPEAKER_01 39:05

All we're doing is giving him a point of argument at this point. This this you're you're losing the deal right here.

SPEAKER_04 39:12

Oh my god, is that right, Neil?

SPEAKER_05 39:14

Yeah, I mean, it's crazy, especially the closing costs.

SPEAKER_04 39:17

You call it holding costs, that's like time you sit on it, right?

SPEAKER_05 39:20

Yeah, the time I sit on it as I'm doing the flip, and you know, uh and the electrical and all that. Yeah, yeah, yeah. And just, you know, every month that it sits on market, I'm having to peek repay all that stuff. So, you know.

SPEAKER_04 39:33

Well, any gonna shit. I mean, if this place was ready to go, it would still admit it. Like it all spit it off. My neighbor still is in two days.

SPEAKER_05 39:39

Okay.

SPEAKER_04 39:40

So maybe I can it's a good location, and they're building all around us like crazy. So it's only gonna go up.

SPEAKER_05 39:46

So maybe I can back out.

SPEAKER_04 39:48

It's a pretty quiet neighborhood too, though. It's sort of the outskirts of West Eugene, so okay.

SPEAKER_05 39:54

So I'm gonna back out a little bit of that. So I'm gonna say 405 is what I can sell it for. We said 55 for the repairs. I'm gonna take out 35 for my hard cost. So that puts me at 315 right now.

SPEAKER_00 40:12

Yeah.

SPEAKER_05 40:13

Okay, and then that is if everything goes right.

SPEAKER_01 40:20

This is way too detailed. Well, I I don't know why why we're doing this. This is way too detailed, and it's it's giving the seller so many points of argument and disagreement. We're we're losing this. Is where the deal got lost, right here, Adrian. This and not asking the question about the other offers being insulting.

SPEAKER_05 40:46

And me not even building in any kind of profit.

SPEAKER_04 40:50

Now, the other thing you have to consider is there's zone now, they changed the zoning here, so this is zoned for two tiny homes, too. It has a pretty good size lot compared to a lot of the houses here on Terry Lee. And it has access to Roosevelt back. So back here asked this gate, which is really important because we don't you can't have the tiny homes fire while you can chase the fire. So that's a bonus. Um, the other thing that's gonna cost you is fences, it needs it needs fences all the way around it.

SPEAKER_03 41:21

Okay.

SPEAKER_01 41:23

This is why we don't lower our rehab costs. I that 55,000, that 40,000 was a pipe dream. 55,000 ain't admin. The seller already told you 70, is probably even higher than that. Um, and because we we talked so many numbers, and you said I gotta back in the profit and all this. If we're at that point, it needs to be all right, so we agree that this could be worth 405. I'm gonna have to put 70 into it. I've got to account for holding costs and closing costs. So that's how I'm coming up with I need to be in the low twos. But that should have been following the conversation about why the other offers in the high ones and low twos were insulting. So then you can be like, I think this is what the other investors were seeing. I think this is why their offers are coming in. How you beat them is through that education. They just said I need it at 185. You've gone the polar opposite, where now you've reverse engineered it with not accurate numbers, okay? 405, 55, all of this, and then you got you even lowered your holding cost because he told you days on market would be two days. Don't know why we would do that. That's a fixed number. We never adjust that. So now you've done that and you've told him 315. So every dollar below 315 is your profit on a bad rehab number and a lower holding cost. This is how we manufacture deals, and we end up having to terminate, it gets rejected by dispo, or or we have to renegotiate.

SPEAKER_04 43:15

I did that last time. So in the ports face B. So that tells me that it's it's the other party's liability. So what I did when I did the fences right after I bought it, I talked to each homeowner and I did the labor and they did the material. That's how we worked it out.

SPEAKER_03 43:30

That's number.

SPEAKER_04 43:31

Yeah, but I got this stuff at cost because I I grew up in a lumber yard and I got connections in WBMA people.

SPEAKER_05 43:37

Nice.

SPEAKER_04 43:38

That helps. Yeah.

SPEAKER_05 43:40

Okay. So I mean, if I'm at 315 right now without you know keeping my lights on and being fair to my business, if I'm putting in 55, 60 for a rehab, I want to make sure that it's worth my time.

SPEAKER_04 43:56

Absolutely. And then you might have a guy that needs 60 days to move out to get. out of your way.

SPEAKER_05 44:01

Yeah.

SPEAKER_04 44:01

So I mean depending on what happens with with me being able to find a place to go because I I can't live in my trick.

SPEAKER_05 44:07

Yeah. So with all that being baked in, you know, the numbers kind of put me around 235, 240.

SPEAKER_04 44:17

Yeah, if you want to make a killing, yeah. I mean that's just that's not even a killing.

SPEAKER_05 44:23

That's just making sure that you know I'm I cover myself if that makes sense.

SPEAKER_01 44:30

Like that's not that's what you get for telling him that your break even number was 315 because it ain't 315. And so now he's gonna combat you. You gave him that point of arrow yeah if you want to make a killing you're gonna go make 70 grand 65 grand yeah it's gonna be really hard to overcome because of the way that you explained it to him.

SPEAKER_05 44:58

Not a home run deal by any means that's just a barely penciling deal here's the situation.

SPEAKER_01 45:06

When you tell a seller who can't pay their $20,000 $26,000 he can't pay his $1,100 uh traffic ticket okay he's about to lose his home that he's owned for 18 years due to $2000 in in property taxes. When you tell somebody like that that hey $50 $60 $70 in profit because of the way that you explained it is not a home run deal it's gonna be hard for them to kind of swallow that. And like it makes sense to us because we we get that there's risk associated with this but now you're going to have to kind of argue with the seller about all the things that could go wrong but you already made it so tight on the numbers and there was just a an easier more vague way to have this conversation and just uh the lost point of leverage there with not tight like you now are just along the lines of the other offers. You just offered more because you manufactured the numbers to offer more and and you should have never offered more you you should have hit that head on and to be honest with you probably offered less and you probably could have gotten it not on maybe every single one of these types of conversations but there's going to be a percentage of them that you will contract because you're going to be the only person that's willing to have that conversation that educational conversation and talking about these numbers but not in such great detail to where you're you're handing over like percentages and dollar amounts and also telling somebody that hey me making 60 plus thousand dollars profit off of your house is not a home run deal okay well all right that's that's where you're at that's where you're at so that's good information I got an offer on the table for 285 right now so I am I mean you're asking 300 you got 285 on the table why haven't you taken that well I just want to see I just I just just right now started getting uh uh offers again so I mean not two years ago I was at 412 if I walked out the door and and and left everything sitting here I would have absolutely hammered that because I feel like that was a lie he told you earlier that he uh had an offer at 185 and 225 that's when you had the profit calculator at 225 and you decided to jump it up to 240 I think that 285 offer is bullshit and I'm calling him on it what 285 you told me it was 185 i i would have been all over that I got an offer from 412 and I I don't know why I didn't take it as in the middle of July I should

The 285 Offer And Credibility Check

SPEAKER_01 48:08

have walked out the goddamn door and went to the airport.

SPEAKER_04 48:10

Yeah not everything here I really should have that was a great offer but there's a ton of stuff here too like tools and I mean I got a full blown shop here. So that offer of 280 is that like in writing and fish official no it is not but he he was uh really shocked when I hung up the phone and told him no I'm don't I'm not taking any officers under 300 right now so I mean you can offer it but I'll write it in my book if I don't I mean just based on what you told me house can sell for 405 you need 70 and work how is an investor gonna buy it for 300 investor yeah an investor really can't probably that's the problem you know and if I had the money if I could get this reverse mortgage and have the money but I hate I just hate the terms on those that would give me the money to finish the house and pay off these taxes and get them off my back um you know and I wouldn't have a payment still but when I die it's not gonna do no favors for my kids. Yeah and that kind of sucks because we've been here a long time yeah so so what do you do? I'm still trying to make up my mind what I'm gonna do. Yeah so I mean too much going on all the time.

SPEAKER_05 49:28

And you tell me if I'm wrong but it sounds like you're really looking for a cash offer to just kind of you know take it off your plate let you move on so you're not having to do a ton of repairs and everything.

SPEAKER_01 49:41

Because I mean the way you described it I don't think you can list it on the market can you um no no I gotta get this permit thing lifted and all that you know it's uh there's some things that gotta be done but uh I mean I could do it for way less than 70 000 myself okay I mean that was what's gonna eat you up that's what's gonna kill you is the contractor's sir you can't do it for less than $70,000 because you can't even pay your twenty thousand dollars in taxes so I mean like this is where we have to kind of like bring the seller back to reality and be like what are we talking about right now I mean sure anybody could do the work for less than $70,000 because if you're gonna live there you don't care about achieving maximum value.

SPEAKER_04 50:27

Labor. Yeah they're gonna hit you the eye on it you know because you know you're flipping especially if you're doing as a as a flip property because they want their cut about 70 bucks an hour ain't it for a contractor today I mean it's not cheap by any means that's for sure yeah yeah yeah so um so I don't know what I'm gonna do yet I um yeah because you said I mean it's nice to have my house paid off I don't want to end up with a $2,000 house payment again.

SPEAKER_00 50:56

This is true.

SPEAKER_04 50:58

And it you know it's um it's been nice and I'm comfortable as hell here and I'm just you know my roots are deep but at the same time I'm asking myself do I want to die here do I want to finish my my last chapter somewhere else and so being still though that's a hard decision to make for me. Yeah I had a partner that was saying let's go here let's go there I would be more inclined to do what they wanted to do and it would be easier but I'm indecisive I've been stuck and that's why I'm I'm pushing the clock now I've got to do something she or get off the pot.

SPEAKER_05 51:28

Yeah so um but you're coming in at 235 I think 235 240 in that ballpark.

SPEAKER_03 51:38

Okay.

SPEAKER_05 51:39

And you know this would be you know I'd close on your timeline it sounds like you got some things to get in order so I'd definitely work with you there. Um you could leave what you want to in the house take the things you want to take with you so I mean I could handle the bulk of the cleanup especially if you're going somewhere a little smaller not have to worry about that.

SPEAKER_04 52:01

I gotta take a truck in the dump's what six miles from here I really don't want to stick anybody with a mess.

SPEAKER_05 52:06

I mean it's you wouldn't just be a shit you wouldn't believe some of the houses some of the states of houses that I've bought in the past so you're definitely not going to bother me any cool shit too though. Yeah I mean way less cool shit than just actual shit. Yeah yeah I don't know I was a house mover we would go and move these buildings and they they still have the college kids shit in them yeah yeah so I mean yeah I mean it's it's I guess it makes it that much more special when you do find something worthwhile as opposed to yeah 40 years of newspapers with cat piss all over them. Yeah I know what I mean if those houses when you lift them up to move them I'll tell you what it's yeah it's pretty nasty other so little yeah like that dry dirt anyhow um okay well uh I don't know what to say I'll consider it but I've got someone who's offering me a little higher than that right now so I mean I mean if you really do have an offer for 285 and that's a legitimate offer and they're gonna hold I would hold their feet to the fire and say send me a contract send me your terms and let me see if your offer is legitimate or if they're just blowing smoke up your ass.

SPEAKER_04 53:28

Right how do I go about doing that?

SPEAKER_05 53:30

I mean I'd call them and say hey 285 let's do it and see what how they react like if it's a real buyer then they'll send you a contract and still move they'll try and move forward with it. I would say at that number make sure that you're clear with the terms like make sure they're not going to try and list it make sure they're gonna close on your timeline make sure you know it's a pretty solid deal um and then I mean if obviously you don't know me for Adam if they do end up sending you a contract and you want me to take a look at it just to see if there's anything I see from an from an investor standpoint that would give me a red flag I'd be happy to do that. But again you don't know me so who am I?

SPEAKER_01 54:16

That means a lot to me I appreciate that is one of your strongest moments so far in the call right there unfortunately I know I've said this numerous times I it's about 20 minutes too late. I really wish we would have talked about the other offers it's just it's sometimes why I hate call reviews because I know everybody wants me to review the entire call but there's always the moment where I feel like the call breaks and then it's like well if we never get to it then all of this is kind of irrelevant. This was your your first uh moment kind of really kind of going after the competition here a little bit and hey make sure that they're legitimate that they're a real buyer they send that over to you what are the terms going to look like make sure they're not gonna listen on the MLS this is a really strong moment and you can see how much the seller really appreciated you for this moment.

SPEAKER_05 55:17

Appreciate that very much yeah but I mean just the way I see it at 285 based on what you've told me I think that would have a hard time getting it to the clothes table. Yeah it might and if it if it operates like win win who offered me 315 and then uh everybody said run like hell from that so I probably repolled it but yeah so I mean guaranteed if they said they could pay me 315 no problem and I'd had 90 days to move and and everyone I talked to said no not with win win they're no good they're gonna add an add on all this other shit on there and yeah a lot of times people tell you like oh this is I mean it's do you get those I get like a like a fake check in the mail probably every week or so saying someone's gonna give me at or above market price for my house and then when you look into it well yeah that's their initial number and then they're gonna do a walkthrough and they're gonna find X, Y, and Z and they're gonna subtract all that from the price and a lot of times the price that you end up with is you know considerably less than what they got in the door with Yeah I hate that.

SPEAKER_04 56:25

Yeah so oh go ahead I just say that's part of the game that's the game you play in that in that line of work or whatever you're investing is gonna be fun though how many houses do you own?

SPEAKER_01 56:40

I own I feel like we're we're just kind of wasting time at this point and and we're not coming to the conclusion. And now now he's kind of exploring he's gonna ask you questions to see if you're legitimate or not but I I don't even know if he's really considering your offer um I I like the strong moment there a couple minutes ago but the the call kind of felt like it it went off the rails when when you made your offer and he was like I got another offer at 285 and I don't know if I'm gonna sell I'm gonna think about it. I didn't think you kind of grabbed the reins there and really hammered him on Sir October 14th is coming pretty quick. Like we got to start making some moves here because we've got to open up title we got to do due diligence like that I would have really tried to to kind of because there is a timeline concern right this isn't a hey I inherited a free and clear property and we've got all the time in the world like there is an actual legitimate timeline concern here would have liked to have seen you be a bit more aggressive uh and right here it just feels like we're just shooting the shit outright by myself just my personal home I'm partners on around three or four let's see we're up to four mainly in the KC metro and then as far as flips I've done me and my partners have done I couldn't even count at this point.

SPEAKER_04 58:14

Now how is this getting all the way out to Kansas City that's weird.

SPEAKER_05 58:18

So like I said you entered um you entered into my website okay or no sorry yeah I had it I had an ad on Facebook that you answered is how I got your information. Interesting that you're in Kansas City and I'm in Oregon but yeah you can yeah I mean we can flip you know it's to the point now with technology and stuff. I've got a really good partner out in Oregon that I work with on a lot of my deals out there. It's just about you know finding the right connections finding the right people and then just kind of zeroing in on areas you like it's cool.

SPEAKER_04 58:53

Yeah I mean it's a good area here yeah this is a nice town to live in Eugene it's it is it's expensive but it's it's really pretty here.

SPEAKER_05 59:01

Yeah no Oregon is crazy.

SPEAKER_04 59:03

Yeah you're like 45 minutes from the coast right here and you're two hours from the desert it's just a good spot.

SPEAKER_00 59:09

Yeah that's no that'd be cool.

SPEAKER_04 59:12

Yeah it is cool it's been a good place to to live for sure I've been here since 72 um been in Oregon for a minute are you familiar with cottage grove?

SPEAKER_01 59:24

I'm not yeah it's about 30 miles south of here all right I'm looking on the map right now yeah that's that's a neat little town that's where I grew up okay they got a quarter mile clay oval that's like the fastest quarter mile clay track on the west coast spring cars and all that the circuit runs through there that's a big deal for that town then they have uh it's the cover bridge capital of America there's cover bridges all around the whole area which are authentic old old railroad bridges that they're not in use anymore but they made you know historic monuments oh really jump off them and swim and have a day there you know picnic at the bridge kind of a big deal down there in Cottage Grove it's a neat little town yeah for sure there's the bohemian mines and stuff for like 45 minutes out of town we're just talking at this point we're just talking oh what is what is happening this is this is crazy Adrian you just let this guy kind of I don't know if you thought that there was gonna be an opportunity for you to ship this back or you didn't know how to kind of wrap it up but we're we're just literally but we're we're entering we are we are firmly in the friend zone go up there and go gold pan and stuff there's a lot of gold up there still it's pretty neat yeah that's cool especially when gold's a five grand right now it's it's going crazy to be buying gold not houses I mean I wish that's what I'm gonna do if I sell this I'll buy gold I'll tell you what who knows what Trump's gonna do to us oh I don't even want to get started that's a whole nother thing that I don't have time for I hear you okay well Sean here's what I'm gonna do just so you can see my exact terms and what I'm offering I'm gonna shoot you that offer for 240 so that way you can just see exactly you know that way you have a firm offer in your hand to compare against others.

SPEAKER_05 1:01:26

Um like I said if I were you I'd call that 285 guy and hold his feet to the fire and see if they're actually willing to commit to those terms and if not maybe we can talk.

SPEAKER_04 1:01:39

Yep you'll be second in line for sure if that's if if that guy's real okay so yeah for sure.

SPEAKER_05 1:01:45

I've got your email here is shall work. Okay. Alright I'll get the shot over to you in the next five six minutes and um can I call you uh next week sometime?

SPEAKER_04 1:01:58

Yeah please do.

SPEAKER_05 1:02:00

What's a good time for me to reach you?

SPEAKER_04 1:02:01

Uh if you send me a text and then and then let me text you back and tell you what works because I'm just all over the place all the time.

SPEAKER_05 1:02:08

Okay.

SPEAKER_04 1:02:09

Yep I'll just send you a follow tires but sometimes I'm you know I'm just running errands or whatever in the car. So it's best just to text me and then I'll get right back to you.

SPEAKER_05 1:02:18

Okay sounds good. I'll shoot you a text with a link to that um contract and seeing what a good time to connect is.

SPEAKER_04 1:02:26

Appreciate your time and thank you for your offer.

SPEAKER_01 1:02:27

All right sounds good we'll talk soon oh man I did not like how that ended we never asked them what is going to be your decision making process what is the timeline in which you're gonna make a decision are you gonna wait until you know September are you gonna wait until October 1st like how are you making these convers or decisions um we never went back to how much net did he need in his pocket we never understood why the other offers were insulting we never really even explored the 285 and who that was and how did that offer come to be and why didn't he tell us that when he told us 185 and 225 he never told us about this 285 offer uh what was so important about an additional $15,000 when he's asking 300 and he received 285 why why was that so important to him and then there at the end we're just like hey I'm gonna write you up a contract I'm gonna send it over to you so you can see my terms do you want me to call you next week and when all this did was is put you in a position of follow-up and so if you're navigating conversations like this on a regular basis you're just going to have a ton of work to do all the time following up with people that essentially told you no but you didn't know why and you didn't know when they were going to make that

Debrief And The Fixes To Close

SPEAKER_01 1:04:00

decision. So didn't like that overall Adrian I thought there were some really strong moments in the call I still think that the the biggest moments for you are stop agreeing silence question stop with uh gotcha yeah yeah yeah oh yeah that's cool I understand no silence open ended question that's one thing two you got to go back to moments you got to double down on the questions you got to really explore um I really thought that you you tried to manufacture this deal um and I know that you have tried to overcome some like issues with comping and underwriting but right here you tried to allow you finagling numbers on on the profit calculator instead of diving into questions and getting the seller to explain to you what they need to accomplish and so it to me it felt like you feared the no so instead of getting told no we went into the maybe so you can have more work to do you're gonna write a contract you're gonna follow up next week I would have rather have seen you really dive in to what happened when when are you going to make the decision? Why haven't you accepted these other offers? What's important to you? Explain and educate why we need this in the low twos high 100s 240 is not going to work I don't like to offer felt like the numbers are off I felt like you even disagreed with the number the the seller's numbers to make them worse in your favor to make them better for him uh just we kind of gave up on on the education process the key to educating a seller is is repeating yourself getting the seller to truly understand where you're coming from too detailed on holding costs and percentages and all of that. It should have been about ARV, rehab, the price because we need profit holding costs, closing cost. That's it too detailed on the minutiae there inside of the numbers uh and and because of that you you kind of deleveraged your position with saying I'm firm I'm a hard cost at 315 just was really hard right there. Man Adrian you are you're really close but there's some things here that I I fear have been issues that you've been battling for a while and you're kind of defaulting to them over and over again. So hopefully this call review helps you um I appreciate you giving me this to put out here on YouTube for everyone that's watched this far hell of a call review hour and seven minutes show Adrian some love in the comments show me some love in the comments by giving me a like we'll see you guys next time