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Preview for Ask The Expert Episode on Funding For Investment Deals

Funding Real Estate Investments: Hard Money vs. Conventional Lending and Why You Need a Hybrid Option.

Funding Options For Investment Deals Just Got Better:

“Take everything that you know about conventional loans, FHA, VA, Fannie, Freddie, and throw it out the window.”

Finding real estate funding sources can be a bit tricky. First, conventional lending requires credit-worthiness and paid property appraisals; the slow turnaround time also means a deal could be gone before you get your proof of funds.  While hard money lenders offer quick turnaround, even for investors with low credit scores, the downside is they often require hefty down payments and tack on high interest rates. 

Looking to fill the gap between conventional lending and hard money,  Rick Rall and his team at Navigator Private Capital designed funding options for real estate agents, investors, and wholesalers without high interest rates and bulky application barriers.  

Rick’s team is successfully funding real estate deals for beginners and experienced real estate professionals. With generous terms for fast funding and refinancing in one place, there’s no need to scramble to refinance a buy and hold, submit taxes, wait for proof of funding letters, and risk leaving deals on the table.

For investors you can avoid pre-payment penalties, large down-payments, and high interest rates.

For beginners, you can obtain financing without the traditional barriers to qualification.

For realtors, Rick’s strategy can help you turn those houses that sold in less than 3 days into acquisitions so you can start building out your investment portfolio. 

A lender with an expert understanding of investment, brokerage, and title will also provide you with extra guidance over your acquisition strategy.  You’ll have marketable title when you’re ready to sell properties from your portfolio in the future. 

Best of all, Rick’s platform offers 24/7 access to applications and proof of funds letters.

After this episode, you'll understand why having a real relationship with a lender like Rick, someone can act quickly and provide options and guidance that fit the deals you’re working on, can take your real estate business to the next level.

 

EPISODE TOPICS:

  • Hard Money vs. Conventional Lending and Why You Need A Hybrid Option (0:07)
  • How and Why Did You Get Into This Type of Lending? (2:57)
  • The Product-Market Fit: Enabling You To Make Money Any Time You Provide Good Service. (4:13)
  • Different Funding Options For Different Real Estate Agents, Investors, And Wholesalers. (5:45)
  • Experience, Money Down, Credit Checks, Business Loans? Why Rick’s Program is Different Than Lenders Near You. (12:21)

 

 

 

EPISODE LINKS:

Learn More About Rick's Funding Options

More from the Ask The Expert Series

 

 

 

Episode Transcript

Chad Corbett 0:00
Alright, welcome back to another episode of Ask the Expert guys today we have rick roll from navigator, product capital, this conversations valuable if you're a broker or an agent, this can be valuable to you because it's a difference in getting a deal funded and especially in a tumultuous environment, or in a house with with that needs major repairs. This is a way for you to capitalize investors, even if they're new investors. And we'll talk more about the the way they kind of underwrite based on experience level and, and whatnot. But I think that whether you're an investor or in brokerage on listing this, the Rick and these guys, they have a program for just about anything. As you guys know, in this series, ask the expert, we always look for people outside of our wheelhouse, that are experts in their own space, but can benefit both our company and more importantly, you guys and your business and the consumers you're serving. So Rick has a background in brokerage. He's got investment experience, banking, mortgage banking experience, and private money experience. So Rick, I'll let you tell a little bit more about yourself. And then we'll jump in.

Rick Rall 1:15
Chad, thanks again, for the invite, we greatly appreciate it. We did search you out. We'd like the product, the platform that that you've developed, it's very much of interest to us. And it fits a lot into what we do. So let's start out with who we are and what we are. So we started this in 2005, we were looking for an opportunity to serve primarily our investors and through them, or realtors that we help with to get funding in about two to three weeks, you know, from start to finish on properties that are in disrepair. Really the base of our business is we have an investor that comes to us realtor brings us an investor who has a dream for a property could be a single unit could be multi family could be big apartment building. And they want to go in and make a difference. They want to redo the house, put out a good product. And then they want to sell it where they may want to hold it. But let's say they're going to sell it, and they make a nice profit. And ultimately, there's a family or an individual put the house and it makes a difference in that neighborhood. That's what really makes us tick, we give back that way. We never do any joint ventures, we don't take any of the profits, we just want to make sure that our clients are going to be profitable. And that's really what differentiates us from hard money. We've never had a prepayment penalty, we never will we don't have any adjustable rates and the fixed rates, terms go from 12 to 24 months, whatever the client needs. And we get in the box, that's okay, because that's really what we do. It's our money. We're not answering to a bank or a hedge fund or anything of that nature. We've done thousands of these in the traditional side, our concern is that our investors get out making a profit or get out refinancing and keeping the property. So in a nutshell, let's see I was in the traditional mortgage business for 14 years and on my own lending company and brokerage company. It a lot of FHA loans on a VA Fannie Freddie made it through the crash liked it, but it's good not like all these restrictions that came along with the government loans. There's nothing wrong with them just we saw when I had two other business partners, a need in the marketplace. For reliable, consistent funding that was the wasn't being served by traditional lenders. And a lot of people called hard money. We took about three or four years developing our product, our back end systems and raising capital. So we started the company about five years ago. I'm also a licensed real estate broker, I'm a past president of local board of realtors, in Toronto County, Maryland, we have roughly about 3000. Members, so very familiar with the realtor needs. And I know that that takes a segment of your customer base that I think we could serve very well. We obviously serve investors, but we also had a title company at one time. So really, from the real estate side, the title side and the lending side, we had a long background, upwards of 2530 years of peace between the three of us.

Chad Corbett 4:22
You've got diverse experience in real estate, you've been able to see the challenges and frustrations from the angle of investor a broker and the banker. And now you guys kind of fill in the gaps and all those kind of my perception of what you how you see like your profession now. Right like you can serve all the places you've been you can serve with where you are now. And I think you know, that's something that what I liked about our first conversation, you know, not just anybody get those these calls with us. We try to make sure that you know the companies or the peep and the people are good value fit and You know, just like we teach all you guys, you know, there should never be a time where you can't provide a service and be paid no matter why your phone rings, like if there's a, if you have a junk lead in your business and you ran out of skill set, you it's not a junk lead, you know, they're not going to be as competitive on rates and costs as a community bank might be. But they're also not going to be such a pain in the ass and underwriting. So there's a balance with everything. And there's there's a use, you know, having a good understanding of all the financing available to you and to your clients is really important. And you guys have heard me You know, we've had estate advanced companies we've had, we haven't had any community banks on here, but you've heard me on my soapbox talking about community banks. And this is somewhere in between, right, like or hard money. And this is something different that I think it deserves some some space here. So let's talk about the different programs. I mean, when you explain it to me, I kind of see this as an EQ, like an X axis, a Y axis and the z axis. So x would be the amount of experience you've had, you know, what, how many deals Have you done, y would be your credit score, and z might be you know, the loan amount to kind of settle in on on the, you know, the the origination points and the rate of a particular loan product. That's just like, just the way I kind of digested it as you kind of look at multiple variables and choose and basically customize a loan product for each person skill set and situation. But tell us about what it looks like and how you think brokerage, you know, someone who's in who's dealing with probate sellers who typically have a home and has, they're not, they're not in complete disrepair. Typically, they have you know, functional obsolescence or just, you know, they're just dated. So they need light rehabs. A lot of times, you know, landlords love these, but a lot of times they're great flips, especially in areas like yours, but just kind of give them an understanding of how you would deal with you know, that house that hasn't been updated in 20 years. And some ways they might use your program.

Rick Rall 7:08
Sure, let me let me first start by this, since I am on the broker, and actually in Maryland, glad to have Southern licenses. So I have an associate broker's license with Keller Williams, we do a lot of businesses with realtors. And we're allowed to come in house and a lot of lenders a lot of brokerages will have in house vendors that they don't want to bring in someone else because they're running a desk or space. And that's just part of a business model, which I agree with. And I like we don't compete, I've yet to find any brokerage that we compete with their in house lenders, we just augment their services. So, you know, if you want to talk to a manager, or you know, this is what we can bring, we really help realtors close more deals, and we can do them quickly and efficiently. So let's talk about the hierarchy of what we're looking at for a deal. And you had indicated you know that we are not a community bank. And you know, if we are one thing, we are brutally honest, which is their community bank is going to be cheaper, conventional loan is going to be cheaper, our rates range from eight to 12%, one to three points. But we're always looking to work with our clients, those are fixed rates, just interest in when payments. So it really not, we're not hard and fast. If we need to make a movement on a rate four points to make the deal work, we're going to make it work because we're in the business relationship business, we just happen to lend money. So we want to show that we value our clients. And in doing so the services that we bring, but the cost can we can we work with those numbers with them. And doesn't mean we're going to do every deal, because I'm not going to give every deal. But we're really giving every deal a good look to ensure that it's going to be profitable for the client and that we're protected, and they're protected. So when it comes to the clients, we've been doing this a long time. And we really have a hierarchy of what determines whether someone's going to be successful. And the first thing is experience. So we basically have three experience levels, which is one I have done this before I watched HGTV This is so simple, how can I how am I ever going to lose money. And then we have an honest conversation with them. And while we like that to be the case, you know, oftentimes the realist and every one of us knows who's done this, that is not the case. It actually takes a lot of diligence and a lot of hard work to make this work. But we do first time flippers and so that's that was someone has no experience, then we have a second level, but so that's really zero to one depending on the size and the capacity to deal meeting, you know, within a large rehab, is it a medium rehab, is it a you know, just some lipstick on a pig as we call it, you know, some paint and carpet and then we have so that's that's no experience and then we have moderate experience which is anywhere from two to three deals.

And that's someone Who's got in bomba deals understand that we have four or more deals and these are all within the last three years, because we want to be dealing with individuals, you know, if your real estate, its location, location, location, and it's also location, location, location, contractor permitting, you know, handling all the little things that you're not thinking about. So we want to know that they have been doing this, and they get it 20 years ago, we'll give them some experience. But we want to know that they know what's going on in today's marketplace. So we have experience levels. And with that come different lending capacities that will give them an experienced individual, typically, we're going to land at 5% cost. Meaning that if you had a house for a buck 50, and you wanted to put 50 grand into it's 200,000, we're going to need 30,000 into the deal to make sure it works. And that's really your buy in and make sure that you're going to be successful, because we want to make sure that you have the liquid funds to ensure you're going to be profitable. The second thing is cash, which comes right into your down payment, do you have enough money to get in? And if the deal goes sideways, which we do a lot to handle those type of contingency reserves problems when you open up a wall when you didn't account for termites or bad wiring? And that's another thing that really differentiates us is that we're very concerned with making sure that you're getting paid for the work that you do. And that if you have items in the house that weren't accounted for, how are we going to account for them? How are we going to pay for them, sometimes not all the times we'll rather than that alone, other times, we'll talk to the contractors and see if they will have a workout of getting paid on the end, we're not here to stick you with a deal that's not going to close. We're here to make this deal work and make it efficiently work efficiently as possible, which means getting it done in the quickest time possible. Because time is money. Every day, you have a house out there and it's not finished, it's a chance for pipe to break. enterprise and kid in the neighborhood throw a rock through a window, somebody helped themselves to hv AC. And that's a problem. So getting your repairs done quickly and getting paid for them quickly is paramount to us. Everything we do is 100% automated. So we will work out cash situations and then specific deals. And as I said before, when the business relationship business, the more you do, the more you understand with us that we're here to be your partners, not just somebody who has their hand out for their monthly payment. That's not our business model at all, you'd indicated loan amount to but and I think you'd indicated credit score, what we're looking for, for someone that doesn't have any experience is at least a 680 credit score. And that's a middle score. And we you can take everything that you know about conventional loans, FHA, VA, Fannie, Freddie, you can throw it out the window. conventional loans, if you have two borrowers they want you know, they're going to take the middle score of the lowest of the two. We are if you have three people on an LLC, whoever has the highest middle score, that's what we use. So we're trying to find ways to make the deals work.

If you have experienced, we'll go down to 600.

And if you have a 595, are we going to work with you? The answer is yes. But we want to know why you had an issue. You know, we're not here to continue credit, we're here to help you fix your issues and move on and make money. In regards to loan amounts, you know, our minimum loan size of $75,000. And a lot of people will say, Well, why you're not serving other areas, it's just time for us. We work just as hard on a $75,000 loan as we do on a $750,000 loan. And it's really where our time is best served on we're very upfront that we want to help everybody. It's just we have a demarcation line there. We always get asked, we can do $74,000 based on everything I'm telling you Yes, but I'm not doing $65,000 we want to be here to work. But we need to make sure that we're putting our effort words best, sir. loan amounts go up to $2 million without blinking an eye when we do more than that. Yes, we've done 20 apartment buildings for seven 810 million dollars. You know, so we will do it, you know, we're ultimately concerned with what is our client's goal? And what is there in marketplace. So if it's I'm buying a single family residence and I want to buy it, renovate it and sell it. Fine. That's no issue, because you're going to randomly depending on the marketplace, have buyers and products take them out. For me, Freddie Mac will do up to four years. Same with FHA. So we know that you could do a take out online, whether it's a refinance, or you saw on the mobile you get over four units, you have five unit marketplace. COVID is really hit this market hard. We do have the ability to do as I said, large apartment buildings are over five units. But we want to know what the long term goal is how to get out of the product, and we do have ways to refinance out Have it with, you know, long term financing for over five units. But we want to make sure that we educate our borrowers right up front, it's always about putting a good foundation down. And we know that the road may change some. But knowing what your goals are trying to help be your partner in this, to meet your goals is what's paramount. So we got experience, cache, loan size and credit score, I think we covered that.

Chad Corbett 15:28
And so you like we've we've spent most of our time so far talking about your, your fix and flip product. And I think it's important to, to recognize that there's a lot of opportunities, I'll tell you, you know, when I think back over the hundreds and hundreds of houses that I've represented other people on mainly the ones I've passed to my investors, I think about all the opportunity and all the equity, I sold off into somebody else's balance sheet, right. So the other the other thing that was really interesting to me is you guys have a really attractive long term buy and hold loan. So it's just to get this clear in your in your mind, guys, you know, traditional hard money lender, their their fix and flip quick turn capital. And typically, when we're looking for long term buy and hold, we're going to potentially use hard money, but then we're looking to refinance as quickly as possible. I prefer doing that with community banks. The benefit and working with with Rick is they kind of have it all in house, you don't have to go scramble to refinance because you're getting, you know, acceptable terms on your acquisition. So let's talk a little bit about how you know like a realtor who's who's like, oh, man, I could list this place, but I wouldn't mind owning it. This is in the right schools on the right zip code. And this is, you know, I'm asking you guys like, are you? Are you willing to step out of your comfort zone? If you've got someone that's willing to take that risk with you? Like, are you willing to make more than a 6% Commission on this house and turn it into an annuity? And how do you do that? And I meet so many realtors who and it man, it pisses me off when brokers do this. But so many brokers, you know, they condone everyone buying real estate, because they get paid on commissions, but they don't want their own agents buying real estate and having a portfolio and doing deals. And I have a problem with that. But I think that more realtors should be engaged and we shouldn't be passing these deals on all the time. Like, it's great to say, Oh my god, I sold it in a day. That meant it was probably underpriced. And you maybe you should have bought it right. So what for the folks that are listening that that do want to start building a portfolio and do want to take advantage of some of these deals are finding and probate because a lot of times, we have opportunities to buy these at, you know, 80 cents on the dollar all day long. You know, and then obviously, there's there's opportunity to buy them, way less than that. But most families are okay, taking 80 cents on the dollar. So let's talk about the the kind of the long term buy and hold programs you guys have that might benefit them?

Rick Rall 18:01
Certainly, so there's there's really two paths with that. And you're 100% correct. Now, a lot of the realtors we know, and still a realtor, it's a transactional business and you've got to eat, you got to get paid. And you're looking at, you know, getting a 6% commission or 3% Commission, because it's a big chunk of change versus You know, I'm going to get you know, I'm going to make $200 a month and overage on my rent. So it's really about having an honest conversation with the realtors and saying, you know, you just want to be a transaction guy, what did you do for me last month? Or do you want to have continual passive income coming in to Gilson gives you tax advantages, which is huge. And that's really big to us. So we have really two different paths for this. The first one would be, you know, you buy it, it's in disrepair. And we are the reasons we reached out to you is we love your model. We do a lot of business with Estate Attorneys, but yours is scalable, and it's already scalable. That's where we genuinely appreciate this opportunity. But you know, if grandma lived in the house, okay, two duplexes or single family or an apartment building, but it needs you know, bringing up today, maybe you're going to click on section eight in there, maybe you could use some type of government housing, you have to get a company code. So we could provide the financing. In the first scenario, which would be up to 85%. To do the fix, you know, of the property, maybe up to 24 months to do the repairs. And then you could refinance out and get the money to buy the buy the loan, excuse me buy the house and get the money for the repairs. And then we could look at long term financing for you. And that's the second part of this equation, which is let's say the carpet is okay. It doesn't really need anything, you can go and put some paint on it, maybe a little bit of carpet, do it yourself out of pocket, no problem. That product is going to be 25% down payment, but it just qualifies on the asset itself, which is everything That requalified line. You know, it's one thing I didn't mention in the qualifications part is, we look at your credit, but I don't, we're not looking at your tax returns, we're not looking at your debt to income ratio, we're looking at the asset itself. And on the long term die, what we're looking at is the ability for the property to sustain itself, we're looking for a one to 1.2 ratio. So if you're buying the house, you put 25%, down, you would, let's say you're all in payment was $1,000. And your rents were 1200. dollars, you qualify, I don't care about your car payments, I don't care about your regular mortgage, I don't care about your other investment properties, I'm concerned about this asset, that there is enough money in overage, that you have a profit in it. Pre COVID, we had a one to one ratio, which I thought was very aggressive, and that has not come back, it may come back. But this ensures you're going to have some some spending money, you know, have a little extra money if the water heater breaks, or you need a handrail, things of that nature, we can offer a three year five year seven year and 10 year arm, those rates are very attractive, they are roughly in the mid on the arms, mid fives to low sixes. By the 30 year fixed rate, the yield curve on it is so close that the 30 year fixed rate is in the 6% range. So low sixes to high sixes for 30 year fixed. And that's not conforming rates today, which are in the 3% range, but it's still historically exceptionally good. And it makes the money so affordable, that it really keeps those monthly payments down and your ranks are continuing to rise in most areas. And it helps you be able to afford properties. It's a great avenue we do include on that on that product, you must have your property taxes and homeowners insurance escrowed which is nice. You're not chasing around looking, making sure you made your insurance payment, where your property taxes, everything's included. So it's just like if you have a traditional mortgage through Fannie or Freddie, it's just like that 30 year fixed.

Chad Corbett 22:10
Yep. Yeah. So hopefully, it's clear to you guys, I mean, you've got hard money lending on one side of the spectrum, convention or community bank financing on the other. I think these guys hold a hold a really strong position right in the middle. So you can almost I won't say that it's it's mentorship, but you know, just like with a community bank, you've got somebody that's underwriting you know, asset best asset asset based underwriting, I'm Tongue Tied today, that that's really making sure you don't get yourself into trouble into an unsustainable position. And I will say that, like your your terms are more generous than the community bank right now. I mean, a lot of a lot of community banks went from, like 1.2 to like 1.33, or 1.35, debt coverage ratios, you know, during COVID, and, and everybody seems to be rolling back their ltvs, right, like people were willing to give less and less. A lot of hard money lenders I've spoken to, they've actually rolled back to 65 ltvs. On on everything GSE lenders like Fannie and Freddie, some of the multifamily properties, we were refinancing, they went from an 80%, LTV on a cashout refi to 65, LTV to a 40% loan to cost at the closing table after docs were notarized. So lenders are tightening their belts, it's harder to get your investors qualified through even you know, even sources where we thought we had sound finance strategies, a whole world kind of shifted in the last three months. And I think a lot of banks aren't, aren't admitting just yet, but we've got like over $10 trillion, and basically junk grade corporate debt that these banks have to struggle with over the next two or three years. So having a lender the cat quickly and doesn't have a lot of a lot of distressed assets on their balance sheet can be the difference in getting a deal or not. And I believe we're headed into an environment where it's going to be important to have those those relationships with multiple lenders. Because I think in 12 months, you're going to have more deal flow than you have cash for sure. And you're going to have opportunities. Yeah, even if you're in brokerage, you're going to look at this and go my god if I could have only bought it for that a year ago. And if you don't have your own capital, you should have a relationship with somebody like Rick where you're in a strike position, like you should have lines of credit for your downpayment, you should have money saved up you should have capital reserves in your business for that 25%. So, literally in a matter of a couple of weeks, you could change that the outcome of your career, you know, you can you can grab one of these rental properties instead of passing it along. Take that hundred thousand dollars in equity by stepping up and and it starts with having a good finance strategy in place and having a real relationship with with a lender and Again, we don't invite just anybody to these calls. I think Rick is the kind of person we want to introduce you guys to he's someone who has similar values to you. We all you know, he was attracted to us for the same reasons you were. So, Rick, I'm gonna just instead of trying to take care of it in the video, I'll just say in the show notes guys below the video that you're watching right now we're going to give you a link to with with Rick's contact information, a link to his website and programs. And can we put an application there to Rick, can they? Can we link directly to the application?

Rick Rall 25:37
Yeah, we can. And if I could just real quick. So everything we do is 100% automated, we have a Salesforce, we want to talk to individuals who want to work through these because oftentimes you need to see what the scenarios are. But 24 seven, you can go once you sign up as a member, which gives you access into your account, you can get proof of funds letters, which basically indicate specifics of what you are looking to do with property, you know, ABC lenders wants to buy 123 Main Street for $100,000, your investors can put that information in there. And once we have their signed up and we have their info, it'll come out, they can put you as a realtor, as the context will be immediately out. So if you need to submit an offer, you have a timeframe issue, it'll go directly to them and to you or you could do it yourself at no cost. It's free. Your borrowers and or yourself can go on and do a pre application, the pre application comes over to us. thing our two were contacting you and saying let's talk about your deal. What are the particulars of it? Where do you need help? Is it just straight up or you know where the sticking points, and then we send out what's called a conditional approval. And the conditional approval on a pre application is based off of what you're telling me, this is my score, this is my experience. And we're going off of that we're not pulling your credit, we're just giving you your terms. For those of you that have an investment or or mortgage background, it's like a light do or LP approval, very simple gives you your interest rate, your loan amount, your cost everything soup to nuts, there's a link of documents, which is one thing we didn't talk about, we only link to entities for business purpose ones. So we won't link to an individual. So we need Corporation docs, and purchase contract. And we need insurance. And that's really getting this form, there's a link for that and a link to pay for the appraisal that comes out and you can have it your district

Chad Corbett 27:28
for anyone who doesn't have an entity and if you don't go get one Shame on you, but I know some people don't. And also if you don't want to want to blend, you know if you are in brokerage and you don't want to blend your your rental portfolio with your brokerage business. As far as forming a single member LLC, all you need is five to 10 minutes and 50 to $100 to form your own single member LLC, you don't need an operating agreement, you can just you know, you can send the articles through I mean, that should be all you need, right or just the the formation articles. And now and when I first formed my first LLC on time that it was in Virginia, it took seven minutes. And it took me like a week and a half to get my Ei n number back from the IRS. But so and before I could get a bank account, now you can do it. I've timed myself, I've created companies in under three minutes. And you can have an Ei n within the hour because IRS now they now have a an online system for that. So if you don't have an entity, don't let that be intimidating to you. It's your 50 bucks and 50 minutes from having from form founding, you know, your next company. So for anyone who's like, Oh, don't let that turn you off, you should have an entity I prefer for me saving for real estate, I like single member LLCs taxed as s corpse. And then you you know, buy an umbrella insurance policy to cover for additional liability coverage. But and then within within that I do a lot with land trusts. And that's something I haven't asked you, Rick, are you willing to close into a land trust?

Rick Rall 29:00
We have done them. But I'll be I'll be frank, because each one of them are unique, independent in the states where that you're in. And we are the only states that we do not do at this point would be California, North and South Dakota and Nevada. Everything else we do. So we would need to see the land trust itself and give it to counsel just to make sure that we're protected. So the answer is yes. But it depends. We want counsel to look at it just to make sure that we're protected. And because if it goes sideways, you know, because a lot of times in the Land Trust, there's a lot, maybe a lot of fingers, you know individuals in it. And we want to make sure that what we where we've had problems go in the past is there's disagreements among the individuals who were in that trust, that have caused us some issues. So we just want to make sure that if it's going sideways, we have the ability to remedy it. That's all

Chad Corbett 29:48
but anyone who doesn't have an entity, if they're applying with you today as a person, and you come back and be like, Hey, we need an LLC I mean they're you're literally within an hour of getting that done

Rick Rall 29:59
right? You got it perfectly okay, the only thing that we would tell you is this is after years and years of experiences, when you're buying the properties, you know, a lot of these would be through these states. So you shouldn't have an issue. But if it is, say a bank owned, or Yo, that if you put yourself personally as the buyer, again, take everything you know about traditional lending and throw it out the window, when you give us an event and then put your name on it, we don't care, we're still ready to fund. The problem is if the asset managers say Sage acquisitions, or somebody else handling Fannie or Freddie or VA, and they, they want to change it, they want to change it to your LLC, they may have the problem because they didn't sell it to the LLC, they sold it to the individual. So up front to come in with a contract, it's got your name on it, no problem, but I'm not going to lend you individually just give you a dent in changing it to the LLC, we don't have a problem. Just want to make sure you protect it upfront, you're not doing all this work. And then the seller says no, now we can't sold on LLC because it didn't meet the timeframe, you know, of when it was only offered for primary residence and not to investors. That's the only thing I was saying. And the LLC is your duly pointing out. It's very easy to set up in that corporate umbrella, especially if you get an insurance policy protects you from so much. And really want to make sure you're doing this. If you're trying to buy properties to prove to build generational wealth or passive income from you, you need that protection. And as your indicated you do as an LLC and do it as an S corp taxes. An S corp gives you a lot of confidence. You still

Chad Corbett 31:26
Yeah, so like I do LLC, single member LLC taxes an S corp, you set up payroll and pay yourself a regular, you know, reasonable payroll, and you're saving 7% on fica almost 7% on fica right off the top. And then you know, there's there's many advantages to doing that. So don't don't be intimidated by that if you're anyway, that that was just a thought it was kind of a rabbit hole. But I know a lot of folks don't have entities and we commonly get those questions. And it's not, it shouldn't be a big intimidating thing. Now, if you have partners, if you have more than one person, you do need an operating agreement. And you do need to have counsel, in my opinion, don't go to legal Doom or some online service, when you get more than one person involved in an entity that should be carefully structured. But if it's a single member, and it's just you like most of you guys are probably solopreneurs just you can do this in a matter of minutes. And be and be lendable. So anyways, just wanted to take make make a point that you're not disqualified just because you don't have an entity today.

Rick Rall 32:31
If I could mention one thing, too, we're ultimately concerned, our main goal is that our borrowers are successful. And we've done this for so long in one of the kind of overlooked but very important issues that we deal with is title. We don't allow any general exceptions. So you know, if the utility company comes in, and they have an easement for utilities, or whatever, we want to see that. And we'll see this a lot sometimes on the states, we've definitely seen on foreclosures, where there's all types of exceptions on the Schedule B. And we don't take that we'll take exceptions, but for our protection, and really for our bars, reprojection. We want to make sure that there is not a bunch of garbage in there. When we get unreleased tax liens and things of that nature. I'm like, No, you have to remove these, because we want to ensure that when if you're either going to refinance it, or you're going to sell it, that you have an insurable property, you know, we get a lot of stuff with, you know, survey exceptions. Why are you buying a property that your neighbor's shed isn't one, because when you go to sell it or refinance it, you're gonna have a problem. Let's resolve it. Now, I promise. We're, ultimately I'm very much concerned with your ability to do what you want with the property. And a lot of times the federal conference would say, we're not going to take care of that we're not going to do that. Okay, fine, we'll take it to another title company. And it gets resolved, because they're perfectly willing to sell you a title insurance policy, but it just doesn't insure you for that. And that figure comes in when it's down the road, you've done the project, you're moving on with your life, you're selling it and you never resolve it. And you don't have a policy that you can pass on as an owner's policy. It sounds very much into the weeds here. But this is a very important thing that we do for all of our clients to ensure that you have marketable title. When you move on with this property. It's not just lend you the money and move on. We want to make sure that long term you're protected, which ultimately protects us too. But it really is a lot of legwork up front that we handle most of the time or barbers don't even know it.

 

 

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Real Stories and Expert Advice for Handling Cold Calls, Real Estate Appointments: Probate Mastermind Podcast Episode #296

The Interactive Podcast on Probate Real Estate - Pick Your Podcast Platform

Probate Mastermind Episode #296

Recorded Live on September 17th, 2020 (Join Us Live Every Thursday)

 

In this episode of the Probate Mastermind Podcast, you’ll learn how to qualify out the leads that are most worth your time and how to capture 5-star testimonials to generate quality leads exponentially.  You’ll also learn how to navigate in-person appointments when you’re a realtor and investor.  After this call, you’ll be able to turn common objections about cost and commissions into increased motivation. Lastly, you’ll walk away with a ton of motivation from the real stories shared by agents, investors, and wholesalers just like you who are candidly sharing their questions, issues, and success stories.  Thanks, as always, for tuning into to Probate Mastermind!

 

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EPISODE TIMESTAMPS AND RESOURCES:

How To Win Better Real Estate Listings While Prospecting (1:07)

Rosie shares an update on her prospecting results.  She is blocking off productive call time and building meaningful relationships.  Instead of trying to sell her prospects, she’s qualifying her prospects to see who is the best fit for a stellar testimonial when all is said and done.  Rosie landed 3 solid opportunities from cold calling this week and is starting to get inbound/return inquiries from her marketing efforts.

How To Capture A Testimonial From A Real Estate Client (3:08)

Rebel jumps on the call to share a sale she just closed.  The lead responded to the first probate marketing letter she received via All The Leads’ Direct Mail Service.  Chad and Rebel discuss how Rebel put the deal together and had a cash conversion cycle of less than 60 days.  Chad and Rebel discuss how to capture an awesome testimonial from her client.

Cold Calling Tips: Disrupting Patterns (7:42)

Rebel is looking to have longer conversations with prospects who try to rush her off the phone.  Chad describes the pattern a lot of real estate leads get into when too many realtors/investors are calling them and offers advice for disrupting those patterns.

See More: Chad’s Book Recommendation Never Split The Difference by Chris Voss.

I Messed Up A Cold Call. Should I Call The Lead Back? (11:02)

Rebel and Chad discuss re-engaging with leads that hang up.

The Best Way To Get A Complicated Deal To The Closing Table. (13:11)

Rebecca shares an acquisition deal she’s working on.  She describes her diligence in skiptracing the appropriate contact and working through the necessary steps to help the family move forward.  She is in Colorado, the toughest state for Probate in the country.  Chad and Rebecca discuss why Rebecca’s approach works so well, and is so rewarding intrinsically and extrinsically.

Handling The “How Much Are We Going To Owe You?” Question (19:40)

Rebecca describes how she puts her faith in the value she provides.  Her most recent client asked her “how much are we going to owe you for this?” Chad and Rebecca discuss why people shy away from this objection, and why they shouldn’t.

See More: Handling Cost Objections: How To Ask For the Commission/Compensation You Deserve

The ROI of Providing Real Solutions (21:25)

Chad and Rebecca break down the numbers - What’s Rebecca’s ROI for the work she’s doing, and why does going the extra mile to start pay off exponentially in the end?

How To Go On Listing Appointments as A Realtor that Also Invests (25:24)

Caller got a listing off his first letter! Caller is an investor and licensed real estate agent.  Caller is working with another lead and might want to buy the house himself.  Caller asks how he can wear both hats - Chad says don’t, and he explains why. 

See More:

How Do You Talk To The Seller About a Cash Offer vs. Listing? (30:02)

Caller asks for advice on helping a seller figure out what option is best for them, and how to guide them towards the right decision.  Chad discusses. 

How to Dress For A Listing Appointment With A Motivated Seller (35:29)

Eddie V shares a story about how he took a piece of advice from David Pannell: Show Up Ready and Presentable! Eddie put this into practice and got direct feedback that it made a difference.  

See More:

  • David Pannell’s 2019 Case Study: How David is competing with iBuyers in his Market and making Probate a $1,000,000 pillar in his business through listings, acquistions, and wholesaling/whole-tailing real estate.

Your Seller Thinks Dealing With A Realtor/Commissions is too Much? Offer As-Is, Where-Is Sale (36:51)

Eddie’s prospect wants the highest price he can get - What should Eddie do? Chad suggests Eddie reminds his seller of what an as-is, where-is sale looks like and how to get this deal moving forward. Chad underscores that many investors emphasize that a cash offer means no realtor and no commissions, implying that working with a realtor is complicated.  Chad outlines how to turn that impression around and get the sale. Pay attention to the contingencies and win the deal by offering your seller a guaranteed close.  

See More:

How To Land An Appointment When You Reach The Lead’s Spouse (39:10)

What should you do if you’re calling a lead, but their wife/husband/spouse answers? Chad describes how to handle this conversation to either secure a phone number or an appointment.

I Messed Up A Cold Call BAD - But Might Still Get The Listing! (41:35)

Eddie shares a real foot-in-mouth moment anyone who makes cold calls can relate to.  The message is: Keep going, it happens! But next time, don’t try to deduce too much from the data; pick up the phone, ask, and have a conversation.

 

 

 

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Episode Transcript:

Jim Sullivan: [00:00:37] Welcome extraordinary agents and investors from across the country. Today is Thursday, September 17th, 2020. And this is mastermind call number 296.
[00:01:28] Share wins with us, inspire the rest of this group that comes every week nothing's out of bounds. And, we have two in the queue, so let's go to our first caller. This week is phone number ending in zero three, zero six in Austin, Texas.

Rosie Hayer: [00:01:43] I am so glad to be here.  nothing big question. Just wanted to kind of share with you my experience I'll support your advice from last week,   I implemented and, I would say I have good three,  four days off full work.

[00:01:55] Where we spent, 9,200 minutes on the probate work, which is meaningful work, which means to call out, have meaningful conversations, have meaningful follow-up. And I'm just happy to announce that we got three solid, very nice leads. And we are finally getting call backs from people saying, Hey, it seems like you guys do  power of attorney work and last wills.

[00:02:16] Yeah. So people are starting to call back and it's starting to flow. So I just wanted to  share with you guys. I  implemented rather than 90 minutes, I did a hundred minutes. So at 10 minutes, I can kind of to you guys mastermind calls to warm up my head. then stick to at least good 90 minutes.

[00:02:31]what I was looking for is meaningful relationships. So the conversation is not about setting an appointment. It's actually thinking, is this the person I can serve the best and would it qualify for an ultimate testimonial at the end? So I just want to say thank you. It's working. I'm very happy with my one week results and I will bring more numbers.

Chad Corbett: [00:02:50] That's amazing. You're a heck of an action taker. Thank you for sharing with everybody Rosie that. You're a great example. Thank you, Chad. Thank you. And I did another estate sale interview that I will be posting.  Please know, I just want to take a moment and say I'm openly sharing on the group because I'm really wanting to be open to feedback and kind of helps me get over my own fears too, in one or the other way, you know,   when I get to the, in front of you guys, good, bad, whatever feedback I get, it boosts my confidence.

[00:03:16]So I thank you so much, everyone for participating and giving me the word. it allows me and encourages me to go after more.  I'm looking forward to being some big numbers. Thank you.

Jim Sullivan: [00:03:25] Awesome

Chad Corbett: [00:03:27] She's openly, openly sharing her best work to get better.

[00:03:31] So that's awesome.

Jim Sullivan: [00:03:33] Rosie, you're not lacking in energy and enthusiasm, and it's obvious why , you're doing as well as you do. So please keep coming back and sharing, that's a great way to start the call.

[00:03:42]All right. Next up is another enthusiastic person Rebel you're up next!

Rebel Taylor: [00:03:46] Wow, he just knew that was my number, huh?

Jim Sullivan: [00:03:51] Yup. Got it memorized.

Rebel Taylor: [00:03:52] I wanted to call and say hi and let you know that, We did get a sell and everything off of a letter, actually the mail outs that you do.

Jim Sullivan: [00:04:00] Wonderful!

Rebel Taylor: [00:04:02] Just a little place, you know, actually it was a friend that left it to her  but it was just pretty cool to have one that went all the way through and it was not on the market long. I think it was on there for seven days.  We got it sold and closed on it not too long ago.  The things that you offer do you work.

Chad Corbett: [00:04:16] So what services did you end up providing? Was it a very simple deal? How did it compare to any other listings?

Rebel Taylor: [00:04:22] It was very simple. It was just a little house that really needed to be mowed down. It was an investment property, an investor actually ended up buying it. The house did not have any AC, but I mean, it was a really easy, easy sale. It really was.

Chad Corbett: [00:04:35] Cash conversion cycle was inside of like 60 days, all was done? So you made contact, listed it, sold it probably in a matter of a couple of weeks.

Rebel Taylor: [00:04:43] Yes. Yes.  Their's was a three week close, so that was all in a 30 day.

Chad Corbett: [00:04:48] Yeah.   We get used to looking at what other realtors are doing.  And it's like, Oh man, I mean, who doesn't want the $700,000 listing that needs no improvements whatsoever. It's just ready to go to market. But you know, with those just takes us longer to sell those and you work a lot harder for that commission. With probates a lot of times, like your story is very typical.

[00:05:06] I would say over 90% of mine, went that way.   So you listed as-is, where-is. And you get offers with no contingencies cash closings somewhere within two weeks to 30 days.  For me, it was easier than wholesaling. I was just doing it on MLS was as-is where-is.   You can do  a high volume of them very quickly with a lot less work than it would take on a conventional listing.

[00:05:27]  And I think the reason I'm  highlighting that is a lot of times we talk about more complex things on these calls. And I think some people are  intimidated by some of the more advanced things we discuss, but this is an everyday deal. These are the ones that roll through consistently.  There's deferred maintenance. There's motivation There are people looking for that type of inventory. They're great. I'm betting a landlord bought it. Am I right?

Rebel Taylor: [00:05:47] Oh, yeah,  he wasn't a builder also. So it was more for the land and it was over there in Lakeland. It needed to be mowed down and a new house built,  but I don't know what he did with it.  I haven't went back over there to look, but, yeah, the lady we met out of it, we're hoping to get more clients from her because he ended up turning out almost like family. Every time I went to the lady's house, I was leaving with food and drinks and, Oh my goodness gracious. The sweetest lady I could have ever met during this. Okay.

Chad Corbett: [00:06:15] Now say Rosie, listen and Rebel. I don't know if you were on last week's call, but Rosie was looking for purpose to build prospecting discipline, and her purpose became, getting six amazing video testimonials, and I would encourage you to do the same, especially while that person holds you in such high regard, and while they feel like you relieved a lot of their stress.  Reciprocate, take her a pan of muffin and be like, Hey, let's make a video. or just jump on zoom and do it. But let's capture that story

Rebel Taylor: [00:06:43] She would do it for us. She fell in love with me and my partner. And so that's a great idea. I will definitely go do that.

Chad Corbett: [00:06:51] Don't be afraid to go long form and then edit it down and to, you know, a two minute clip, but you can use the rest for b-reel.

[00:06:59] So over time you can build these kind of customer testimonials mashup videos, right? When you have 50 people just pull snippets from each of those. And just capture everything you can about her experience, like get a great quote from her. And then edit that down into a little, testimonial highlight reel,   Then you've got the whole conversation that you can use in the future and something that I want to underscore guys, I can't emphasize enough how important it is that when you get this right, you need to document that because nobody else is.

[00:07:29]Collette Meyers does a good job of this. So if you go to collettesellshouston.com. She has a great probate website where she captures her testimonials. And I would love to see everybody doing that because you do the work. You build these relationships if you don't capture it and trust me, I'm not nearly as good at it as I should be either because it let's take a commitment and it is uncomfortable sometimes, but it is worth so much when you can document their success as your service   It helps other people identify with you, especially when they're getting your letter, going your website, trying to figure out who you are, because it sounds too good to be true.

[00:08:03]And anyone else who sends a letter I highly doubt that anyone else has gone to that level. So every time you have these success stories, please take the time to capture it.

Rebel Taylor: [00:08:12] I liked how you said that. Cause I think you can take a long video putting in what you need to for certain things and still have it for everything else that you need. I think good is a great idea. Great idea. Awesome. Thank you.

Chad Corbett: [00:08:24] Thank you for sharing Rebel. And what was your question?

Rebel Taylor: [00:08:27] You're going to laugh though.  Alright, I do get some people calling me back and things like that. I have a pretty good ratio of people calling back. I really do, or speaking to people, but I cannot get a lot by a lot of them. I don't know. I think within the last couple of days we've gotten three that were serious that I sent my information to.

[00:08:47] I'm like your girl Rose. I don't go for the appointment. First. I go for the relationship first.  But I can't get past this part of, your line where if I could take something off of your plate, what would it be? I found that to be a great line, but, people are like, look, what do you want?

[00:09:03]And I try to tell them what I'm offering or they just cut me off right there. Am I using it too early or what?

Chad Corbett: [00:09:11] No, there's other people muddying your water. So when- they have an abrasive response like that, I want you to pay attention to the words you use, but say something like, it seems like, it sounds like it feels like - don't be accusatory, but what you want to do is think about what emotion are they feeling that's driving this behavior. And how can I change that emotion? probably what's  happening is somebody's calling with an unskilled self-interested, you know, like rookie wholesaler is calling, hammering them, trying to buy the house for 50 cents on the dollar.

[00:09:44]Which is fine. Maybe that's what they want, but they want to do it on their own terms. Right. So they've learned to run those people off. if you can say, you know, it seems like you've gotten the wrong impression of what we do. And what's crucial is that you shut your mouth, just absolute silence.

[00:10:01] And that's th e tool, that becomes a lever in the conversation. So it seems like you might be upset and misunderstanding what it is our team can do to help you. And let that awkward silence, let the awkward silence hang there and they're gonna, process and it's going to be more uncomfortable for them, the silence than it is for you.

[00:10:20]You've heard me, probably recommend it before Chris Voss and the book, Never Split The Difference he calls this tactical empathy. So you focus on why they're behaving the way they are. And then influence that.  All you're trying to do is short circuit, their nervous system to get them off the pattern that's become comfortable for them because they found a way around people off by being a little abrasive.

[00:10:41] And you're not being accusatory, or you're saying seems like you might've had some bad experiences and don't really understand why I'm calling.

Rebel Taylor: [00:10:48] Right, right, right.

[00:10:49] And

Chad Corbett: [00:10:49] it's almost impossible for them not to engage with you at that point.

Rebel Taylor: [00:10:52] Oh, that's fantastic. Okay. I'll try that now. That sounds good because they would cut me right there and some of them, I mean, it was just like, damn, I'm going to quit using that line, but I know it's a good line!

Chad Corbett: [00:11:02] Here's the great news. If you master this objection, if you find a way through that obstacle,   guess what everyone else is feeling the same way you are right now, they're getting shut down, but they're, they're not on this call. So if you find your way through it, it's fine. Let them muddy the water because it just creates a more impactful contrast when you show up saying the right thing.

Rebel Taylor: [00:11:23] Well, very good. Thank you, Chad. That, that all helped. It helped a lot. I really appreciate that. Cause  was not knowing that to say, to get them, to let me, by that point, you know, and I've lost a few calls that way,  got shut down too quickly. And now let me ask you this, I guess, because they don't know who called and who didn't call except for my name is rebel.

[00:11:44]I could call him again and try it again. Is that something that should be done or not?

Chad Corbett: [00:11:51] Yeah, I don't ever be afraid to reengage. I mean, what happens if you don't call, like, you know that outcome, right?

Rebel Taylor: [00:11:57] Yep. I do. I do. No doesn't hurt. That's what I always say. So. Alright, well then I might just get back with them again and you know, I'll be like now, is there something I can take off your plate?

[00:12:08]And then if they shoot me down again, I know how to come back.

Bruce Hill: [00:12:12] Rebel,  if they start to shut you down or, let's say that there isn't venom in it, but they say nothing or they say, no, everything is taken care of another really great approach. If there's not peace behind their answer is to say, you know what? Rebel. I completely understand. As a matter of fact, I feel the same way, but you know, if there was something that I could take off your plate, what would it be? So they just told you that they didn't need anything, but, but then you follow it up with, I, completely understand.

[00:12:41] most people I talk to have things handled as well, but if there was something I could take off your plate and all of a sudden you'll get to the bottom of it, a lot of people will come out and they'll answer. I use this specifically a lot when it comes to people saying, no, we don't know what we're going to do with the house yet.

[00:12:57] Okay. I completely understand that if you didn't know what you were going to do with the house, which way would you be leaning? And then they'll say, well, we're probably going to sell it next week. Well, you know, why didn't they say that to begin with? But if they're just prepared with an answer, like Chad said, they're accustomed to that approach working to shut people down and they're not ready for the follow up question. That really says the same thing.

Rebel Taylor: [00:13:21] I like that too. Thank you, Bruce. Thank you very much. That was a great idea too I've got that written down now because they do do that.  They go from the, you know, whenever the plate thing right into we've already got everything handled and it's like, Whoa. And so that helped a lot. So thank you.

Jim Sullivan: [00:13:36] Okay. No, I'm just going to say Rebel's the one to beat with her win of the week and we do have eight in the queue. You guys, we're going to have to book to get through y'all.   The next up is phone number ending in two eight, five eight. You're up next.

Rebecca: [00:13:49] Oh Hey! This is Rebecca. I think I was on this call about a month ago. I really don't have a question. I just do, you know, work the probate area I work actually everything, but, I can tell you the one I'm working on right now that nobody else knows about. And it's more about just digging deep. Like that's kind of what I do is I never give up, on a lead and I do call them over and over again, unless they tell me to.

[00:14:15]Go jump off a cliff or something like that. but I have one right now, it's all boarded up. Okay. That's how I found it. I do walking for dollars, not driving for dollars. cause I walk six miles a day and I go to different neighborhoods. So she died seven years ago. It's boarded up.

[00:14:32]there's no will the 23rd person on the skip trace. was her only living son. And so he didn't know where to start with probate. So that's what I'm doing is process. I told him I'm not an attorney. I tried to get a pro bono attorney because they're supposed to do that in Colorado, they're supposed to give her their time, but I didn't have any luck with that with CO

[00:14:56]He doesn't even have his certificate or his mother's death certificate. So he's got to get his birth certificate in Kansas City,  get his mother's death certificate, and then I'm going to go over with them to court and hopefully get him an informal appointment as personal rep.

[00:15:12] It only cost him 199 bucks. Plus I think it's $20 for the letters. And so the house has about $200,000. It's a little small house. I mean, it's quite 1200 square feet, but it's got about $200,000 in equity. I do want to be fair to them. You know, he keeps asking me, cause this got a reverse mortgage on it,  that's a whole other story with a fraud case with Wells Fargo. But anyway, I just don't give up. I just really am strong on the relationships and this is the truth that let's say something happens. And I don't end up with this house. maybe we have to do a short sale and the numbers don't work.

[00:15:50] I don't worry about that because I know that I. Have built a relationship with them when I know that they're already telling me like, no one's taking this time, you know? No, one's really talked to them about the house because I think people give up. That's why, because it took me quite a while to find the person I needed to find.

[00:16:09]And then, so that's all I really have to say. If everything goes well the next three weeks, it should be all done.

Chad Corbett: [00:16:15] That's awesome. So what part of Colorado are you in?

Rebecca: [00:16:17] I work all of Colorado, but I'm in, in basically the Denver Metro area is what I work and then I also work in Oklahoma.

[00:16:27]So I have a home in both places and I come up here for three months then and I rent my house out to nurses while I'm gone. It's not Airbnb, it's nurses that are travel nurses. So that way I don't have to worry about regular renters in here.

[00:16:41]

[00:16:41] I have a criminal justice background also.

[00:16:43]And, the other thing is I've been through this with my family. I lost three family members in a five year period.  I feel like maybe I'm almost over empathetic with people, but, I guess the thing that bugs me about people that bug people that have an inherited house or probate house is they go after it right after they die.

[00:17:04]And I just don't tolerate that. There's all kinds of things. Like my parents had everything organized. It was in a trust. It was simple. It still took us a year and a half

Chad Corbett: [00:17:16] So there's a lot to unpack here. I want to, for the benefit of everybody else, I want to highlight a few things. You are probably the most disadvantaged person on this call because of your market. So Colorado, because so, so many people were so aggressive at pursuing families. They actually seasoned their probate data. So it comes through late, however, People with your mindset, like people who have empathy and compassion, they do really well in Colorado.

[00:17:44] And I want you guys to pay attention to that common thread running through all of these, these motivating stories today.

[00:17:52] It's it's about relationships and letting the consumer's need dictate the service. Not trying to force them into a, you know, an and to your model. So you can hit your numbers and your KPIs. This is about slowing down, providing a real service to your community and getting the result that you want anyways, it's just in a different way.

[00:18:12] Right? So Colorado is the toughest state I've ever coached in. It's the toughest state we've ever had to write a letter we've ever read to write letters for it is, and the cash conversion cycle is longer, but it's because these people get a ton of pressure on the front and there's no compassion whatsoever.

[00:18:29] It's, gimme your house as cheap as I can get it. And this goes on for awhile. Then everyone else just stops and they're out harassing new people. So are folks who think like you do, who act like you do okay. That come through, you know, they're, they're still breaking a 2000% ROI in the toughest market in the country to do probate in, they're still exceeding a 2000% ROI

[00:18:52] So pay attention to what these ladies today have shared with you. What's working for them. It works anywhere and everywhere. If it works in Colorado, it works anywhere. And the other thing is, like your tenacity, like your willingness to follow up. I don't know if you watched, you know, David Pannell's update video we did a few weeks ago, but that's really his X factor.

[00:19:12] The seven digits secret and probate is: Actually care and follow up, follow up, follow up. And if you do, you'll catch them when they need your help, they will respond and, and you don't really have any competition if that's how you're doing business.

Rebecca: [00:19:29] I am a woman on her own Island here. Let me put it that way. I've been doing this. 10 years. And I was in criminal justice for five of those. So kind of doing this on the side. So went into it none of this stuff phases me guys.

[00:19:45] Like I can't even, you know, people say, Oh, that house has unlike, you know, you're, you're scared of a house that has stuff in it. You gotta be kidding me. And so it just doesn't, I don't want to say it doesn't phase me, but nothing surprises me in this business.

[00:20:00] No family situation. I can always figure it out if they just work with me. That's what I'm trying to say. So, I mean, something crazy can happen and another investor might come along, but I just don't worry about it because I know I've done the best I can. And you know, she, the wife kept asking me last night, how much are we gonna owe you?

[00:20:21] You're not paying me anything. I'm just buying the house. She said, like doing all this work for us for, I said, no. I said, you know, you guys like y every month by the city.

Chad Corbett: [00:20:35] A lot of people struggle with the objection of, you know, well, well, how much is this going to cost me?

[00:20:40] How are you getting paid? And I want you, I want everyone to pay attention. That's not a bad objection. That's a good objection because what it shows you it's demonstrating the amount of perceived value you already have in their mind. So when they're like, Holy crap, what is this going to cost me?

[00:20:55] That means you're you're on the right track. you're doing it. don't, and this isn't necessarily for you, but for anyone else who's listening, that's getting this objection. If you're getting a price objection, or how much is this going to cost me? That's a good check end point.

[00:21:09] That means you're on track because they, they, they have a desire to work with you. They have because of their conditioning in a capitalist society, they're thinking, well, this sounds too good to be true. It's going to cost an arm and a leg. And that's a great opportunity for you to drive home another value point.

[00:21:26] We don't get paid at dime until we do what we promise, or if you're the buyer, you know, we'll get paid in six or eight months when we finish this house and turn the keys over to a new homeowner, 'we'll be paid in due time.

[00:21:37] But I learned a long time ago, the best way to get what I want is to help enough other people get what they want. So would it be okay if you don't pay me anything right now?

Rebecca: [00:21:47] It has to be, in your heart and soul. I mean, having been through this myself and, we've got so many lawyers in our family.  That's why I don't flip houses with my brothers, cause we probably couldn't even decide on the color of paint for a living room.

Chad Corbett: [00:22:02] Let me ask you this. Are you, and I'm kind of putting you on the spot here in front of everybody, but are you happy with, the growth in your business?

[00:22:08] Like, is it, growing the way you thought, do you feel good about that?

Rebecca: [00:22:12] I kind of pivoted. I mean, I'll tell you, honestly, I worked the MLS. Pretty hard. I went from doing private sellers into really just full time MLS. I'm not an agent, but I had agents that put in the offers for me. Then as I've moved along, what happens is I have agents that call me with a house that they're struggling with.

[00:22:36] Believe it or not in Denver, or they're saying, you know, can you come in, but X amount, I won't list it, but this is what we need to get for this. And so, you know, it may be a probate house or divorce, or it's usually something going on. I've been focusing on vacant houses. That's my primary thing and code enforcement. And a lot of them are Probate, like nine times out of 10.

[00:23:01] Or it's a tired landlord inherited or they live out of state or they're like this family, you know, and he just, they just didn't know what to do. That's what the whole problem was. I think that, it was overwhelming for them to start.

[00:23:18]And that's why I love helping other investors, you know, that maybe don't understand the process of what it takes, whether it's a divorce or, probate or whatever it might be.

Chad Corbett: [00:23:28] It seems like there's, there's some doubt, like you're going deep and you're building a real relationship and providing very high level of service. The only time that would be bad is if, you're doing going on four hour appointments and you're out there, you know, spending hours and hours and hours to do this, but if we just narrow it down to that one deal you've got $200,000 in equity, I think you said.

[00:23:49] Right?

Rebecca: [00:23:50] Right.

Chad Corbett: [00:23:50] So relative to that outcome, that $200,000 income to you, to your company,   how many hours of work do you think you'll do to get to that, 200 grand?

Rebecca: [00:24:00] Well, to be honest with you, I haven't even met them in person at all. This has just been on the phone. So, I would say I have, maybe about two hours in it right now.

Chad Corbett: [00:24:12] Okay. And then you have all the work to flip it, to get to that.

Rebecca: [00:24:16] Yeah. Yeah. I would like if I call the clerk of court out there and They're all shut down because of COVID. So when I called the clerk, the probate clerk, you know, I said, look, I've called all these lawyers. This family doesn't have the money. And all these clinicals sheets kind of walk me through.

[00:24:32] I said, this is what it is. Can he do this, you know, without going to court? And she said, it sounds like he can, but he's okay. Show up out here and all that. And she'll do it in 30 minutes, you know? So. That was a relief I mean, hopefully he won't have to have a court hearing or anything. It'll just be, his birth certificate, her death certificate to do it.

Chad Corbett: [00:24:51] Well, what I heard was you have a need for validation on, how you're doing this. And I don't hear anything that makes me think this is a bad idea for you. You're out there. You're being true to your core values based on your life experience. And you're going deeper than most people do or will, but look at the net result of that.

[00:25:10] You're making a tremendous amount.

Rebecca: [00:25:12] I'm not the only one that saw this boarded up house.

[00:25:16] I have another one out in Lakewood and I sold that in like two hours.

[00:25:22]so you, you get the ones like this and then the next one you get so easy. So it kind of levels out is what I'm trying to say. You know?

Chad Corbett: [00:25:30] Yeah, it's important to me. Like I love when people like you become part of our community and it's important to me that you don't doubt yourself because it sounds like you're doing great work and you're getting a great result.

[00:25:41]What you're doing is really helpful and you're making a ton of money doing it. So keep doing that.

Jim Sullivan: [00:25:45] Thank you so much. I, it sounds like you'd be a great case study for Chad as far as the motivation and the mindset, man. You've got it.   I really appreciate you sharing. Thank you!

Rebecca: [00:25:55] Thank you.

Jim Sullivan: [00:25:56] All right. Next up is phone number ending in two, four, five zero. You're up next.

Caller: [00:26:02] Hey guys, how are you doing?  Great. I wanted to share. Number one is success story.

[00:26:07] And number two, I have a question for you. So, my, my success story, I, I sent out my first mailings. I know in my second or third month now, something like that, but I got a deal off my first mailings. It's it's a listing agreement. I'm a licensed realtor and an investor. And it's really cool to see that happen as quickly as the first letter, which I did not expect whatsoever.

[00:26:30] So that was cool. And I'm finding a lot of ways to help that particular family navigate the process and the listing we'll, we'll be going live in about one week. So I'm helping them with a lot of things other than just listing the house, which serves them well, because I come from a contracting background,

[00:26:45]anyway, I'm excited. So. I have a question. I'm a licensed realtor.  I'm working with another lead I have a great rapport with them, a good relationship with them.

[00:26:53] I've met with them twice in person and we're down to the nuts and bolts of making an offer on the property or, and they accept that offer or we list it and try to get out a higher dollar amount by listing it. How do you navigate that process where you're trying to wear both hats?

Chad Corbett: [00:27:08] Don't  so I started doing this as an investor and when I saw that I wasn't going to get it for the price that I needed to as an investor, I would try to switch to my realtor hat in the appointment and you can literally hear rapport shatter and fall on the floor.

[00:27:22]I, it just, I never found that a really effective way to do it. And I've worked with other wholesalers who, you know, they send their leads to me and I try to just be the realtor. And they're just the investor. What I ultimately figured out is I just need to focus on being Chad and when I walk through that front door, I don't have an outcome for me in mind.

[00:27:41] The outcome is all about them. So whether I buy it or whether I listed it, it doesn't matter. Because I'm going to monetize that either way. And I will say I've walked away from a lot of houses with signed listing agreements. And I was very disappointed because I wanted to buy them, but always let their needs dictate the strategy.

[00:27:58]From a marketing standpoint, if you're offering brokerage services in your letter, if it says we can list the home,  meet the minimum or compliance requirements  for me that just in a light gray number eight font in the footer of the letter, it has my brokerage name, address, phone number, and then asterisk: "Ethics are of utmost important to us. If you have an agency relationship with a licensed, real estate agent, please disregard this letter. And that's been enough to protect me. I have had complaints when I've, you know, mailed letters to someone who already had their property listed. the board, the state board was like, Nope, you're good.

[00:28:31]And so that covered me.

Caller: [00:28:32] Interesting.

Chad Corbett: [00:28:32] The point where I disclose license status is I focus on people and situation. Even when I get to the house, I don't disclose,  in my state, you're not required to disclose really until you start discussing numbers or, you know, agency issues.

[00:28:48] So if we're talking about the personal property, walking through the house, the only thing I'm focused on is building and reinforcing rapport with the person I was on the phone with and building rapport with everyone else that's present. And then when we get back, I teach in mastery, I'll show you exactly how I do this.

[00:29:05] But when we get back to where we first started in the home, I literally just walk out of the room without saying a word and open the folder and put it on the counter.  And then that's when I'll disclose.   The initial phone call happens, the property tour happens.  I guess them a voice and get all their concerns out or all their expectations out.

[00:29:22] And then I actually will disclose there's there's a chance that, that before we jump into the numbers and other things and make sure. Decisions. I just want to let you guys know. There's a chance that we may be working together in an agency capacity.  I am a licensed real estate agent and four in four different States.

[00:29:38] I'm not sure how we're going to be working together, but all that matters to me is that we're working together. That sound good to everybody and I'll go through it. Something like kind of casually like that.  It happens at the same time in every appointment. So when the investigator called me, I'm like, no, actually this was on the letter.

[00:29:53] We met or, you know, actually in that case, I didn't meet with him. It was another agent that got, bothered that their client got my letter, but I've never had any, any complaint from the clients or the families. But if I ever did I have a pretty clear process, right? So the letter has the  disclosure requirements. The website meets the disclosure requirements.  And before I ever discussed price or strategy, I disclose license status and I do it at the same time every time.  So that's how I found  that to be really fluid. And you're very nimble when you do it that way.  If you remove the title of real realtor or investor and just be you, then you're, very nimble and you can be a transaction engineer on the spot, and it's never been a problem for me once I figured that out, this became a lot more fun and a whole lot easier.

Caller: [00:30:41] Interesting. So after you've built that rapport and you've disclosed this in your conversation and meeting with them, how do you navigate going about what's best for them, whether it be a cash offer on the property to get it sold quickly or listing it do you offer them an option for both Like here's a cash offer price and here's a suggested listing price, for example.

Chad Corbett: [00:31:03] Nearly every appointment I go on has three options, sometimes four or five.

[00:31:08] The three that I can offer pretty much anyone, a cash sale, an as-is, where-is sale. My definition of that, that is at what point can I all but guarantee this will be a ratified agreement in seven days or less and close with And then, retail. So, you know, you use your retail price.

[00:31:25] Now, if the house is in disrepair and they're willing to put money into it, or they're willing to partner with me, then there could be a fourth scenario. So you can, you have cash as is, current retail or renovation retail, like top ARV. But I use a net sheet and you can find it in the All The Leads Mastermind Facebook group in files, or you can find it in subscriber portal.

[00:31:48] There's a net sheet template, and it's just a very simple spreadsheet and it puts the three scenarios side by side. So quite honestly, I rarely ever use it, but it's there in case I need to,  it's a great visual tool show them. So, based on all this information gathering and focusing on people in situation and asking questions, getting them to tell me stories like the rapport building is it's it's Intel, right?

[00:32:12] Like I'm, I'm learning what, their problems are, what their goals are.  And they don't even know it. If it's done correctly, it's just. Organic conversation.  But when we get back to the countertop and I opened the blue folder, all those stories are in my go ahead. And I know what, you know, what their challenges are, what they're capable of, how much money's in the bank account, how much equity is there and the property.

[00:32:31] So, so, you know, guys, listen, based on everything we've talked, talked about, it sounds like there's really no cash. And you guys don't want to go through the stress of a renovation. So this, you know, retail price based on the condition of the home, I just feel like it's really not an option. Wouldn't would you guys agree with that?

[00:32:46] And then I strike through it and I'm like, so that leaves us with two scenarios we haven't as is whereas sale, which means we won't accept any contingencies. It's going to greatly limit the pool of buyers. We'll most likely sell this to a landlord or a first time home buyer that has saved up for a down payment to renovate the home.

[00:33:01] so we can get a higher price. It's going to take longer. We could expect a 45 day window here. based on everything you've told me, it's really important that you guys get this behind you now, so you can move forward. I'm not sure if this one works for you. I think what might be best based on, you know, your level of motivation, is just take the cash price - we'll buy it with everything in it. You don't have to lift a finger. Take what personal property you want and we'll deal with the rest. And within a, probably three to five business days, we could have this close at this price. Which of those two do you think is best for you? Which feels most comfortable?

[00:33:32] And they'll self-select right there.  And the highly, highly motivated ones will always they'll go to the cash. And even though you show them what they have to lose, kind of illustrate it for them, it's like, you know, in order to get this price over here on the right, you're going to have to risk a considerable amount of capital.

[00:33:48] You're going to have to go through, you know, the management of the renovation, and you're going to take risk. We're in a market where, you know, during an election year, during a recession,  something, you know, conditions could change. So there's a significant amount of risk involved to get this number. Are you guys comfortable with that risk?

[00:34:05]Okay. Let's just say that that's not an option. If you don't want that exposure, you don't have to do it. So you just kinda knocked them, you know, through, through deduction, you find out what's best for them and they feel like they chose because you gave them all the options in a very transparent way.  And the net result of that is ultimate trust.

[00:34:22]when I started buying houses, This way versus just going in as an investor and mentioning, Oh yeah, I'm a realtor. If this doesn't work out, I can and help you. Like the people I worked with the sellers were so much more trusting and open. And even when you, wholesale it and they see that someone else is closing and you're getting a 15, $25,000, spread, they don't care because you were straightforward with them.

You were transparent and they know what they could have gotten, but they knew they understood what commitment and risk it would take to get that. So that's how I do it, Bruce. I know you had something to add too.

Bruce Hill: [00:34:58] All my appointments, I take a menu with me. And that menu typically has three or four options. And Chad mentioned sometimes up to five or six. It really reduces the risk of them going with someone else. It reduces the risk of price resistance because ultimately they're the one in control. Many times we get in the way of their buying. So, the old adage says everybody loves to buy, but nobody likes to be sold.

So instead of ..

Caller: [00:35:28] Right.

Bruce Hill: [00:35:28] ..budding into  their buying process, asking questions and presenting options and letting them choose. And then when they say, well, you know what we're thinking about? Maybe this one or that option, instead of saying, okay, let's sign right here. Let me try to sell you on something you say, okay.

[00:35:44] Which, which one is more beneficial or, or why is it that you're leaning toward those and let them start the buying process instead of us diving in and starting the selling process. A good sales pitch is a great way to ruin a relationship.

Caller: [00:36:00] Gotcha. That's really useful and helpful. I appreciate both your input.

Bruce Hill: [00:36:03] Good deal.

Eddie V: [00:36:05] Hey, said I can ask my question. I don't know if Jim's on here.  Okay. just to, just to give people a testimonial I was doing what David Panell said: Look professional and set yourself apart from everybody else.

[00:36:18]So, anyway, I've been dressing more professionally. I wear a button up shirt.

[00:36:22] Nice dress shoes. Nice jeans. Showed up with the flyer that All The Leads made for me and gave it to the guy, walked through. Not sure if the deal is going to work out or not. He's looking for the highest cash offer. and, I gave him a number. I tried to give him a listing number and an owner finance number, but he didn't want to take any of those, but he was like, you know what?

[00:36:45] You weren't this cigar smoking suspender, slapping kind of guy, who's just trying to sell me on something. And he was like, I really appreciate that.

Chad Corbett: [00:36:52] Good good for you and anyone who, I won't recap everything, but David we've talked about that twice now. I usually wear jeans, a button up a sport coat and a pair of really nice leather shoes.  That I know has gotten me deals because people have told me that and it's meeting the expectations of the generation you're serving. So these people didn't come up at a time where they watch Gary V. Well, you know, wear a tee shirt and drop the F bomb every 30 seconds. So they have a certain expectation of what standard of professionalism you should have.

[00:37:20] So whether that's how you dress all the time or not now be authentic to yourself, but out dress your competition because it will make a difference.  The other thing I wanted to say, Eddie is the next time you find yourself in that situation. A lot of times sellers have a perception and a lot of investors are marketing  using that against realtors, that it's complicated. No realtors involved, no commissions paid, yada yada yada it's, it's a big part of their marketing. Right?  So remind him what an as-is where-is sale looks like. You know, most, most investors are going to close on a 30 day timeline if you're selling as is, whereas in a market site, like in the part of the market cycle, we're in, can you close it in 30 days?

[00:38:01] Sure you can. People were falling all over themselves to get inventory right now, investors and consumers. So. Remind him that, but it doesn't have to be painful. Like listen to, you know, either way we can close inside of 30 days this way you get more money, this way I get more money. What do you think is best for you?

[00:38:19] And I've taken a lot of as-is whereas listings, where I was going to be cut out on the cash price, because there's no way in hell I was paying what that person was paying, and they weren't gonna make any money either. They just wouldn't know that for three or four months until they did their final accounting.

[00:38:33]But sometimes. Newer investors will price you out of deals.  And you can take that deal back by pushing on the, as is where is, and showing them that they can close on that same timeline with the same amount of money with no contingencies and without the risk of that person using the weasel clause. So point them to the contingencies in the contract and be like, okay, so they gave you that number, but do you pay attention to the contingencies?

[00:38:59] "What's the contingency?" Well, that's, that's what the, you know, oftentimes they'll write a contract in such a way that if they can't sell it or come up with the money that they don't have right now, they'll pull the rip cord and you're left empty handed. You still have the house. You've got another month of carrying costs and you have no recourse.

[00:39:15]So. if you could have somebody who's held to a standard of professional ethics and state law dictates how they have to, how they serve, can you see how that might be in your best interest? If you get the same amount of money in the same amount of time, but you're working with someone who has a lot more to lose.

[00:39:31]And so you can take that back. If you're getting priced out of your own deal. Just take it back as a listing. And I'm sure investors on this call are cringing, but I've had it done to me too. But if you feel like you're going to lose a deal, that's, that's the beauty of having a license. You're nimble.

Eddie V: [00:39:47] Got it. Okay. Well that's good. Good advice. So I've been shooting for a hundred calls a day or a hundred dials. Not every number works, but a hundred dials a day. I don't quite get there, but I get close. And one of the issues that I've been coming across is like Say I'm calling for Steve and I get Mary  Mary is Steve's wife. And then, Mary's like, well, what's this that's my husband. What's then regards to. And I, I usually just do the exact same thing I would do with Steve. I'd tell him the exact same way. And they not always, sometimes they're like, Hey, here's the number, but more often than not, they're like, no, we're fine.

[00:40:25]When I did Sandler training, I was told, never take no from somebody who can't tell you. Yes. She might influence yes but...

Chad Corbett: [00:40:31] Two things. One try to get his phone number from her if she won't do that, go for the appointment with her and him because, have you ever met a wife that didn't really have social leverage on her husband?

Eddie V: [00:40:44] Yeah, I know that she will be influential.

Chad Corbett: [00:40:48] Yeah. If it's tentative and it probably will be, she'll be like, well, I don't know his schedule. Okay. Fair enough. Well, listen, I'm calling every other family in town today that that's going through what you guys are going through. So just to, to kinda, I'm sure you guys know what we can do to help your family.

[00:41:03] I'm going to give you that spot on Thursday night at six, could you put that on the calendar and just let your husband know? And if it doesn't work out, we can find a different time, but set the tenantative appointment. And then like, as soon as you get that done, you ask, you know, ask her a few more questions and find some way to provide value to her.

[00:41:19] So find some way to show her the benefit of meeting you guys. and chances are he'll be there.  If she won't give you his phone number. Get it on her calendar and then employ her to go make sure he shows up.

Eddie V: [00:41:31] Okay. Okay. That's helpful. And then...

Bruce Hill: [00:41:33] The previous scenario that you laid out, I'm going to give you a resource that I use to get listings priced accurately. And that is a site called Terradatum. It's a Clarus Market Metric resource.

[00:41:45] It costs like a hundred bucks a year. And if you ever need to show someone a clear and concise data and it gets them to accurately priced the house should strive for that. So, Terradatum is T E R R a  D a T U m.com. And anybody there needs pricing strategies and data. It's the best resource I've ever found.

[00:42:10] All right, go ahead.

Eddie V: [00:42:12] I just had a foot in the mouth moments the other day. Like, I just felt like a complete ass, but, so I called him, this lady named Lisa something and the descendant was the same last name. And I was under the impression that it was her, her brother. And she was, she was like, yeah.

[00:42:32] And Monday I'm celebrating my first anniversary. And I was like, congratulations. And she was like, well, he died. And I did not know that it was her husband who died. And I was like, well, I'm an asshole. But, anyway, those happens. I figured I'd share a, not a success story, but something that, I assume other people might find valuable that not everything's perfect.

[00:42:58] I still think it might be a possibility to get the listing.

Chad Corbett: [00:43:02] Thanks. Thanks for sharing because it, show yourself some grace man. Like there's no way you could have known that. Right. And. I'm glad you shared because a lot of people try to deduce too much from the data.

[00:43:14]So they look at the addresses, they look at the names, they look at very limited data points they have, and try to piece together a story. And what's the alternative. Pick up the phone and ask, and that builds a relationship. So the lesson for you here is don't try to deduce the whole story and figure out the whole story through deduction.

[00:43:32]It's rare that that would ever happen. And 90% of people are probating a sibling or a, parent's estate, not their spouse at a young age. So don't be too hard on yourself, but also use it as a lesson. Like, remember this, the next time you call, it's rare, but sometimes we've had kids, you know, the, the decedent was actually a child who had over a hundred thousand dollars net worth. So their estate had to be probated. So you never know who the decedent might be. Don't go into a conversation acting like you already know, or, you know, or we're operating on assumptions.

[00:44:06]go in everyone the same way, focus on people in situation. And when you understand both and you'll, you'll be the perfect solution.

Eddie V: [00:44:14] Okay. Perfect.  Thank you.

Jim Sullivan: [00:44:16] All right, guys. Hopefully you can hear me now. Despite the tech issues, I think this was, you know, we get 150 people on this call.

[00:44:24] It's going to happen. We're going to talk over each other. We're going to have issues with the conference service, muting each other out. But it, I think it's one of our best calls ever, as far as just the, the mindset and the success stories and just some really awesome examples of, the way you should and can approach this amazing niche.

[00:44:43] So as I always do, I want to thank each of you for being here today. I want to particularly thank those that actively participated. We're going to have a real hard time picking of the four success stories a winner of the week, but we will do that and we will let you know. And I want to challenge each of you:

[00:44:58] Take one idea. One thought, one thing that inspired you on this call. Go out and put it into practice and come back next Thursday and share your results with the group. Stay safe, stay healthy, stay productive. Make it a great week. And we will talk to you. Same time. Next Thursday. Take care, everybody.

[00:45:16] Goodbye.

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Graphic visualization of rising framing lumber prices during Covid-19 backlogs

From Christopher Schwarz. View original post on LinkedIn.

 

First, I thought about Jim Forsythe discussing a deal he's working on during a Probate Training Call last month.  Jim is helping one of his probate leads sell timberland they inherited.  Because Jim understands the importance of finding the right buyers, he sought out sawmill investors.  As a result, Jim and his seller received competitive offers from buyers who understood the real value of this land.

 

Next, I thought about my contractor friends and the concerns they're expressing about lumber costs.  Because property owners are putting off repairs, contractors are short on income.  With sellers losing motivation to sell, many real estate agents and investors think a shrinking pipeline is inevitable. 

 

Quickly, I remembered Chad's strategy for contracting vendors in advance for bulk work.  The goal here should be two-fold: Build strong relationships with vendor partners (during a time where much of their work is being delayed), AND offer vertically-integrated solutions to sellers.

 

 

Listen Now: Chad's Mastermind Prospecting Strategy, Timestamped at 27:40

 

 

Better Real Estate Training Means You Can Help Sellers Make Better Decisions Now.

Motivated sellers that were ready to list with ARV (after repair value) pricing now face a new obstacle of rising lumber costs.   Many of these sellers think their only (and best) option is to sit back and wait indefinitely to move forward with selling their property.

 

Sellers might not realize that they can net more by minimize holding costs and selling as-is.  Sellers likely don't realize how creative financing options can help them, either.  You play a vital role in educating your sellers.  Are you offering these options, and are you educating your prospects on why they might be good solutions for them?

 

Get Chad Corbett's free Training Webinar and Infographic on 7 Creative Financing Strategies You Should Know

 

 

 

Current events will only kill your pipeline if you let them.  If you make the deal make sense, your sellers will move forward.  Get the training to grow your skill set now so you can offer great solutions in any situation, and surround yourself with real estate masterminds so you can always learn something new.

 

Enroll in Probate Mastery

 

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Probate Real Estate Expert Shares tips and advice for marketing, prospecting, and scaling listings and acquisitions in his business 2020

Million-Dollar Producer Shares Updates on Year 2 Listing and Wholesaling Probate Real Estate.

Before diving into this interview, it might be worth checking out David’s 2019 interview where he and Chad Corbett discuss the roadmap to the Million-Dollar-Club in Probate Real Estate. Also, be sure to subscribe on YouTube, to this blog below, and get in the All The Leads Mastermind group to stay up to date with David’s progress.

 

 ‘There isn’t anybody going through Probate we can’t help, that we can’t monetize.’

 

To start, David Pannell is one of the top-performing Probate Investors/Probate Agents in the country.  As such, we’ve asked him to share his strategies and insights with the All The Leads community.  David combined the Probate Mastery approach with the dedicated prospecting strategies he developed in a decades worth of converting FSBOs and Expireds.  As a result, he consistently converts probate leads at high rates.  Above all, his skill set has him out-competing iBuyers, Agents, Investors, and Wholesalers in his market with ease.  Meanwhile, David is already finding the financial freedom to “semi-retire,” as he calls it.

 

The only way to truly learn a skill is by actually doing what you’ll have to do in the real world.  Without a doubt, David’s laying out a roadmap for any real estate agent, investor, or wholesaler looking to up their skillset and make more money with Probate real estate. Best of all, you can Watch or Listen to his Year 2 Case Study however you prefer:

 

 

 

 

  • 0:00 Introductions: See More: David’s 2019 Interview On Year 1 in Probate
  • 1:47 The #1 Thing I Learned About Using an ISA for Investment Deals
  • 3:10 This is Our Best Lead Source: 47 Transactions, Two Producers, 4000 Leads.
  • 3:35 How David Leverages his Probate Book as A Story-telling Piece.
  • 4:44 The Best Way to Hire an ISA for Probate: See More Role Play Playlist David used to design his training.
  • 6:17 EVERY Probate Lead Can Make You Money.
  • 7:15 David and Chad discuss his live follow-up call with a probate lead
  • 9:29 Consumer Psychology: How David designed His Key Marketing Piece.
  • 10:48 The Marketing Sequence of A Top Producer in Probate: David shares his marketing pieces and schedule.
  • 12:26 Segmenting Lists: Social Variables vs. Property Variables. See more: Probate Plus+ Property Fields
  • 14:28 Navigating Listings, Investment, and Wholesale deals . See More: The complete probate leads system
  • 16:00 The 80-20 Rule: How to Leverage Time, Generate Revenue, Reinvest, and Scale.
  • 20:50 Work-Life Balance and How To Retire Early Through Probate Real 
  • 27:47 Building a Real Cash Buyers List and Segmenting It. 
  • 38:41 Building Your List of Attorneys
  • 39:39 Becoming THE Probate Expert In Your Market

 

 

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David Pannell Headshot - Probate Real Estate Investing, Wholesaling, and Listing All The Leads SubscriberAbout David:  David has been in real estate for 12 years.  At first, he worked with buyers through the short sale/REO period between 2007-2010. After that, he switched his focus towards listings in 2011.  Specifically, he generated leads with open houses and SOI leads. David eventually hired a coach and quickly mastered Expireds/FSBO marketing.  As a result, he started to ramp up his acquisitions.  Since then, David has worked directly with ATL, GGMS, and B-School to learn and scale his business. After solidifying Probate as one of the main pillars in his business in 2019, he set forth to build an even better prospecting system.  In mastering the empathetic approach, the team is looking forward to a third of their projected 300 closings in 2020, to come from probate listings/cash deals alone.


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If you are a real estate agent or real estate investor looking for real estate leads and you want to offer a service to your community then you really need to consider becoming a probate expert. Firstly, over the next 40 years over $136 Trillion in assets will pass from one generation to the next.  Secondly, nearly 80% of that wealth is locked up in real estate. As a result, there will be a huge opportunity for you to build a strong pillar in your business while your competition is still out begging for business from the same leads they’ve worked for the past 20 years.  Thirdly, All The Leads provides all the tools you need to become the probate expert in your market in one place. Learn more about our probate leads system.

USERS DESCRIBE ALL THE LEADS

 

 

 

 

 

 

 

Probate Plus

Preview for Live Probate Expert Phone Call and Testimonial from Probate Real Estate Client

Probate Expert Shares a Live Probate Call

Learn from the Probate Experts and Build a Better Business with Probate Real Estate.

David Pannell is one of the top-performing Probate Investors/Probate Agents in the country.  Combining the Probate Mastery approach with the dedicated prospecting strategy he developed in a decades worth of converting FSBOs and Expireds, David consistently converts probate leads at high rates and leaves lasting impressions on the people he helps.

David Pannell recently helped Betty get through the probate process and sell her home.  Even though Betty was contacted by plenty of agents and investors she was reluctant to speak with, David built a relationship by calling and checking in on Betty periodically.  Betty saw David could get the job done, David delivered, and Betty is now a great testimonial for the value David provided as a Probate Expert.  

 

David shared with us (with consent) the recording of the live phone call where Betty committed to letting David get over to the property and begin the sales process. David was able to sell her home for $34,000 more than the PREVIOUS listing agent had it listed for. Listen Below:

 

Things to Know:

  • David called this probate lead multiple times until he won the deal.
  • Betty specifically recalled that David was the one that sent him “those nice brochures” in the mail.
  • The mailer included a mention of Estate Sale help, which drew Betty’s attention.
  • Betty was a dependent administrator who had concerns of Covid and having people in and out for an Estate Sale.
  • Betty was concerned about the cost of Estate Sale, as another company estimated 45% commission.
  • Betty lives over 240 miles from the property.
  • David laid out price options (cash offer and get it over with, clean it out and take a bit more time to get a higher price on the market).  
  • David offered Betty to make either option happen.
  • David landed permission to get over to the house with his Mom to price out some of the items for sale and look at the property.

 

Most importantly, when David can use his story of helping Betty to show his next client how much value a Probate Expert can bring to the table.

 

 

 

GET PROBATE LEADS

 

 

Next week, catch David Pannell as he sits down with Chad Corbett for a 2020 Case Study, a follow up to their 2019 interview where David discusses his roadmap to the Million-Dollar-Club in Probate Real Estate. Subscribe on YouTube, to this blog below, or get in the All The Leads Mastermind group to catch the Case Study when it’s published.

 


David Pannell Headshot - Probate Real Estate Investing, Wholesaling, and Listing All The Leads SubscriberAbout David:  David has been in real estate for 12 years.  He worked with buyers through the short sale/REO period between 2007-2010, switching to listings in 2011. He has also since ramped up his acquisitions.  Like many, he started with open houses and SOI leads. He eventually hired a coach and quickly mastered Expireds/FSBO marketing. He now works directly with ATL, GGMS, and B-School to learn and scale his business. He is focused on solidifying 3 major pillars in 2019, one of which is probate real estate.  In mastering the empathetic approach, the team is looking forward to a third of their projected 300 closings in 2020, to come from probate listings/cash deals alone.


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LinkedIn: https://www.linkedin.com/in/citiesrealestate/
Twitter: https://twitter.com/CitiesRE


 

If you are a real estate agent or real estate investor looking for real estate leads and you want to offer a service to your community then you really need to consider becoming a probate expert. Over the next 40 years over $136 Trillion in assets will pass from one generation to the next and nearly 80% of that wealth is locked up in real estate. This is an opportunity for you to build a strong pillar in your business while your competition is still out begging for business from the same leads they’ve worked for the past 20 years. All The Leads provides a system driven by ever-expanding knowledge and experience. To see how many leads we gather in your county each month, click here.

 


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USERS DESCRIBE ALL THE LEADS

 

 

 

 

 

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Ways to Find Investment Properties

If you really want a great property in which to invest you have to know how to increase your odds of finding fantastic deals. And while you can find a worth property in which to invest by looking through the MLS listings – your best odds are to use several resources to help you scout the best potential investment. Here are nine resources savvy real estate investors use:

Networking: By growing and cultivating your network of professionals you can let people know you are looking. Doing this will sometimes create certain opportunities. For example, some owners out there who want to sell, but haven’t yet listed their property may actually contact you.

Drive around looking for “For Sale by Owner” signs: This is the hard way to do things since competition using this method will be quite stiff.

Find abandoned properties: Owners who don’t want to incur the expense of caring for a certain property are often willing to part with the property for a song.

Use the internet: Use a search engine and enter the type of real estate you are looking for. This can lead you to some interesting opportunities but it can be quite time consuming.

Talk to bankers: You should already have bankers in your network of contacts that can help you. They may be able to help you learn about a foreclosed investment property.

Offer your contacts a finder’s fee: Let your contacts know what is in it for them to help you achieve your goals.

Eviction notices: You can often get a lead on investment properties by scanning your local newspaper’s eviction notices. Or you can get the information at the courthouse. After all, a landlord who just went through the process of evicting tenants can be a very amenable seller.

Old FSBO ads: Look for two-month-old “For sale By Owner” ads. If these have not sold they may be ripe for an investment. This is because owners often give up the effort but not completely.

Purchase our leads: Our leads are well vetted. Additionally, we offer our professionals the knowledge base to use these leads effectively.

Of course, it isn’t just about finding a potential investment property. You have to have the knowledge too. Our Probate Mastery Course can be one means by which you can find and utilize the probate property leads that we can give you. These leads are vetted and much more reliable than the above methods. Our real estate seller leads can make your business prosper in a way that it never has before.

Preview for All The Leads Ask The Expert episode with ProbateCash - Estate Advance funding

How to Get Your Clients Cash UPFRONT When Inheritance Is Tied Up in Probate – Estate Advance with ProbateCash

How Can A Probate Cash Advance Help You And Your Sellers?

At All The Leads, we’re always telling you to add more spokes in your wheel to offer families in probate better solutions.

 

America’s courts are backlogged today more than ever. In some places, it can take up to two years to get money from an inheritance. Court delays can be very frustrating and create real hardship, especially during a time where many Americans have been impacted by Covid-19.

 

More importantly, delayed inheritance payouts and a lack of funds can actually make it harder to sell estate property. Without cash to fund routine home maintenance or relocate those still living on the property, there can be intense pressure to sell the family home for less than fair market value simply to get the estate closed and the creditors paid. 

 

A ProbateCash advance can relieve the financial pressure — making it possible for heirs to preserve and enhance the value of estate property that otherwise might have to be sold for a mere fraction of its value. It can allow you to provide more options and more value to the families you work with, which in turn helps you land more deals and listings.

 

As part of our Ask The Expert Series, Robin Shapiro and Sean Driscoll join Chad Corbett to discuss how their Probate Estate Cash Advance program can become a valuable tool in your probate real estate business. Whether your seller is trying to access funds for a probate attorney, to cover repairs and maintenance for real estate, to maketax/mortgage/lien payments, or anything else, adding Estate Advance as a spoke in your service wheel will enable to you provide better solutions.

 

 

Watch the video and grab the ProbateCash Summary and Contact Information Below!

 

GET THE SUMMARY

 

 

 

All The Leads is the Premier Provider of Probate Leads Nationwide, but we do so much more!

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Are You Truly Committed to Real Estate Investing?

There are several questions you should ask yourself before embarking upon a career in real estate investing. The first question should be whether or not you are truly committed to making real estate work for you. After all, this is not a business for the faint of heart. In order to truly turn a profit, you must be at times ruthless when dealing with buyers and sellers but ethical and compassionate enough to deal with people who are have recently suffered a great loss.

Another reason a serious commitment is needed in order to make real estate work for you is that there will be ups and downs along the way. The stock market waxes and wanes on a frequent and often unpredictable basis. However, property values in general rise gradually over time. This means that even if the values in a community falter, chances are that they will eventually recover.

Those who bank on the slow and steady growth strategy in real estate are referred to as buy and hold investors. These investors are truly committed to their investment. Some of them choose to hold the property as a vacation property while others opt to earn an income on the property by renting it out to families or vacationers.

Those who own rental properties, for example, must also be committed to making their investments work for them. Rental properties are not a “hands off” type of investment, as they will need to be maintained in order to remain in demand by tenants. You must also make constant efforts to keep these properties managed and occupied.

Some investors retain the services of property management agencies in order to handle the minutia of month-to-month details and collections. This is a great idea whether you have one lone rental property or a vast portfolio of rental properties. If you keep the rental property that you have invested in good condition throughout the years they can become liquid assets in time. In other words, they may actually pay for themselves a few times over if you invest for the long-term rather than trying to get a make quick money grab.

With all this said, commitment alone is not enough. You also have to posses the knowledge to succeed in any kind of real estate investing. This includes, of course, probate property. Not only can we sell you real estate seller leads, we can also train you on how to put them to use with our online Probate Mastery Course and our archival conference calls.

4 Habits of Successful Real Estate Investors

It takes more than a little savvy to become a successful real estate investor. As we have pointed out many times on this blog, it also takes quite a bit of skill, knowledge, the right network that can be exploited at just the right time. It also takes quality leads. However, another key to being a successful real estate investor is to adopt the habits of successful agents and investors who are out there with thriving businesses. To achieve lucrative real estate investment goals, implement the following real estate investor tips.

Clarify your real estate investment goals: It always helps to have clarity of purpose when you are venturing into any business. As you evaluate your goals, ask yourself the following questions: How much money am I willing to invest in real estate? Do I have good credit? What does my business need to grow? Am I looking for a tax break? As you ask yourself these questions, also make sure that you set a realistic time frame for yourself.

Learn how to use the tax rules to your advantage: Every dollar you save on taxes can be used to invest in real estate. Make sure to add someone who is knowledgeable about tax law to your list of contacts. Their knowledge could be useful to both you and your clients.

Know the market: Effective real estate investors and agents go out of their way to acquire an in-depth knowledge of their particular market. They do so by keeping abreast of trends, mortgage rates etc. This helps them to better serve their clients and enables them to predict future trends that could affect their investments. Finally, it can also help you discover new listing leads.

Stay educated: Knowledge is power when it comes to this industry. As a real estate investor you should be knowledgeable about laws, regulations, trends and terminology related to the profession. This will help you better adapt to regulatory changes and it will also help you be of greater value to your clients. We can provide you with some of this knowledge through our archival conference calls. We can also provide you with the best real estate leads for agents on the Internet.

Real estate investing represents an awesome opportunity to explore new avenues. It can help you grow your business and secure your financial future.

Tips for Valuing a Property

There is an old saying in real estate that everyone knows – The most important three factors are: location, location and location. Indeed, it’s the first thing to consider when valuing a house. So, what makes a good location? There are some general elements which are obvious like:

  • How accessible the neighborhood is to the schools, shopping centers, restaurants.
  • Adjacent neighborhoods: Are they equally desirable?
  • Where the home is situated: A house located at the end of the street will generally be less noisy hence more desirable. If the street is a dead end it’s even better.
  • The size of the lot, its shape and the square footage of the house itself.

In addition to these external considerations listed above there are many important internal elements that can affect the value of a house such as:

  • Closets with as much additional storage space as possible.
  • Split bedroom plans, with bedrooms on each end of the home are increasingly popular with buyers.
  • Plenty of bedrooms, baths and restrooms.
  • Large and convenient kitchen with as many cabinets and cooking space as possible.
  • A spacious basement.

 

Alternate Ways to Assess a Home’s Value 

Use online valuation tools: You can use public records like property transfers, deeds of ownership and tax assessments along with some mathematical modeling to get a rough idea of a property’s value.

Use the FHFA House Price Index Calculator: The Federal Housing Financing Agency’s house price index (HPI) calculator applies a more scientific approach to home valuation. Armed with millions of mortgage transactions gathered since the 1970s, the FHFA can track a property’s change in value from one sale to the next. This can then give you a good idea of its value in the current market.

Home Inspections

We cannot emphasize enough the value and necessity of an extensive home inspection. Do not let anyone, not family of the deceased or their agents, dissuade you from having the property thoroughly inspected! A professional inspection can give you a clear idea of the home’s value and what may need to be done if it contains defects. 

Our Probate Listing System and training resources give you valuable information that can help you gain real estate mastery. This course is comprehensive and complete giving you such valuable information such as how to build your probate team and how to make a difference as a real estate professional. Do yourself and your client a favor by increasing your knowledge as many professionals have. We also sell vetted real estate seller leads