Offering Probate Leads Multiple Price Options | Probate Mastermind Podcast #313Katt Wagner
Probate Mastermind Episode #313 | Recorded Live on February 4th, 2021.
In this episode of the Probate Mastermind Podcast, you'll learn how to offer multiple pricing options to personal representatives looking to sell probate property, ramp up your USP, and structure probate deals with unique obstacles.
***Most importantly, we hear more incredible success stories from rookies and veterans that are turning probate leads into listings, acquisitions, and wholesale deals!
These episodes are recorded as a live Question and Answer Mastermind with participation from agents and investors across the country. Thanks for tuning in, and don’t forget to subscribe for future episodes!
00:00 Deal Analysis: Out-Of-State Commercial Property in Probate
Frederick is a wholesaler and just came across his first probate deal. The personal representative is open to allowing an assignment of contract, but Frederick is wondering if the numbers make sense. The property is located out of state and is vacant land zoned for commercial use. Bruce and Jim offer advice on using investor groups to locate the right end buyer for this property and compliment Frederick for asking the right questions to undercover this opportunity.
9:49 How to Build Referral Relationships With Estate Planning Attorneys
Harold is a real estate agent who is starting to get into investing. A client of his is interested in putting their property into a trust to avoid probate in the future, and Harold sees this as a great opportunity not just to help the client, but build a relationship with a local attorney by bringing a warm referral. What should he be prepared for in meeting this attorney? Bruce and Jim advise on approach and language to use.
14:15 How To Wow Prospects With A Great USP
Karen describes how she got stumped by a prospect’s question and it really got her thinking about the value she can bring to the probate space. She worked with Bruce to evolve her USP and reached back out to the prospect, who was blown away by all that she offered.
22:53 How To Offer A Listing AND A Cash Offer
Young is a real estate agent looking to get more into development. He has offloaded his brokerage work to someone he hired so he can focus more on investment deals. When he is speaking with a seller, how can he offer both brokerage and investment options without deterring his client from wanted to work with him and his partner? Bruce underscores that the ability to offer multiple price options is a great way to win an in-person appointment.
33:04 Working Probate Leads: Should I Contact All Heirs or Just The Executor?
Andrew is trying to optimize his prospecting. When making calls, should he aim to contact EVERYONE associated with the probate, or just the executor of the estate? Bruce and Jim discuss volume and bandwidth - Ultimately, if you have a LOT of leads, call every number on the first round of calls, but focus on making contact with the personal representative on subsequent rounds of calls.
37:01 Using a Non-Exclusive Listing Agreement
Mike is working a deal where he might sell at retail, and has two retail end buyers in mind. He’s looking for ways to structure this to keep himself in the deal and get an end buyer quickly. Bruce and Jim discuss options for getting this deal through to closing.
44:08 Reverse Mortgage and Probate Properties
Justin is working with a personal representative who has already received letters of testamentary and is dealing with inherited property with a reverse mortgage. The personal representative isn’t up for dealing with anything complicated and is comfortable letting the property be foreclosed on. The personal representative has already gotten some cash offers that just don’t work for him. Jim offers his advice on figuring out what the property’s worth, what equity there is, and how to use that information to find the best option here.
Looking to hear prospecting tips in action? Check out our live role play series.
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Probate Mastermind Real Estate Podcast Episode #313
A.I. Voice Narration: [00:00:00] Welcome to the Probate Mastermind Podcast. These episodes are recorded live once a week and are hosted by the AllTheLeads.com coaches. Agents, investors, and wholesalers join the coaches each week for everything from marketing tips, sales, psychology, live deal analysis, transaction engineering, advanced real estate strategy and personal development.
You will learn to get more listings, more deals and find financial freedom by listening to these episodes. Be sure to catch show notes at AllTheLeads.com/podcast and join our free Facebook mastermind community: https://facebook.com/groups/AllTheLeadsMastermind
Welcome to all of our impressive agents and investors from across the country. Today is Thursday, February 4th, 2021. And this is mastermind podcast, number 313. We do have two in the queue guys. Don't be bashful. We got plenty of room for more. What invariably happens about five minutes of, we have eight people jump in there and we don't like to leave any.
Questions on the answer. We want to help you and that's what we're here for. And this is an open forum. So please don't be shy, just hit star six and then hit one. And let's go to our first caller first up this week, his phone number ending in one five, six, four. You're up first. Hey, how's everybody doing?
Deal Analysis: Out-Of-State Commercial Property in Probate [00:01:17]Good. Doing good. How about you, sir? I'm doing well. So my name is Frederick Morris. I do wholesale deals and is actually though first a probate deal that came across for me. I discovered wait videos on YouTube. And I always say I was going to call y'all when I, come across a probate deal.
So here we are. Just want to know if this is actual deal right now because first off it's only It's only commercial vacant land. It's not like any of, like how far is this commercially vacant land? And it's about 3,400 square feet. I gave her an offer of 700, 7,000, but the problem is I'm in Atlanta and the properties in Pensacola.
So I seen wholesale deals happen online before. I don't know about probate wholesale deals. I don't know. I have to be in Florida or anything like that. Yeah. Frederick if you get a chance, I think it was two weeks or three weeks ago. We did an interview with one of our subscribers Aaron who had I believe last year, he cashed a little over a half, a million dollars worth of checks, wholesaling deals, and it absolutely is possible to do absentee or do remotely.
Let me ask you something though. There obviously there's fewer buyers for the commercial properties. What do you think it's worth? Do you have any idea? I think it might be worth 20,000. That's what I seen on the cops and probably sell it for 20,000 and up a seven. And, they accepted, but I do have to help them because I did watch a little bit of episodes.
And you guys always talk about solving a problem. So I wanted to solve a problem and she doesn't they don't even have a lawyer yet. So I told them I was going to help him find the lawyer and everything. And I don't really know how to. I don't know if there's like a, where, what I should say. Frederick, where do you, where did you find the lead?
Was it one of our probates or was it just random randomly that you realize it's random? Cause I just drive for dollars and I skip tracing. Gotcha. So it wasn't even, yeah, go ahead. Go ahead. No, I was going to say has a probate. So the, you have verified though that the owner has passed away and it does the.
Okay. And it does need to go through probate, correct? Yes, it does. And as far as they don't have an attorney, they haven't filed the probate yet. Yeah. I don't know how long they had the property as well. So I see. Now you mentioned you were in Atlanta and it's in Pensacola. Did you drive by the property or you drove by, or you just randomly, I'm trying to understand the logistics of it.
How did you find it? I would just skip tracing it. It was the wrong number at first, but every time I, it, every time I cold call, I always be like, do you all have any properties that you want to sell that I can give you an offer on it? And this actually did so perfect. Yeah. I asked him that extra question and that, that makes a lot of sense.
What I w I, Bruce May have some suggestions for you. There's not, if you think it's worth 20 and you got it for seven, there, there's a bit of a spread there. For you to sell it yourself? I R I'm assuming you're not a licensed realtor, right? You're strictly an investor.
Okay. So there isn't any yeah. There in any referral issues or something. So you'd have to find either an end buyer or possibly a commercial realtor. I think you're one thing I was going to say, you've got plenty of time. That's the good thing about this? Because by the time they find the lawyer, get the probate filed.
You probably got, four to six months to find your end buyer. So there's not an urgency, there's not an urgency there, but I think you probably do need boots on the ground in Pennsylvania. So ideally would be to find a commercial real estate broker in Pennsylvania that could.
Work out some kind of a marketing or a referral fee to you and find an attorney to get the probate started and, and process it that way. Because even if you find your end buyer in Pensacola, you've still got to get the attorney. You still got to go through the logistics. I would suggest are you're not a subscriber then Frederick, you just were introduced to us.
You're not a lead subscriber. I just always said, once I come across a probate deal, I made it see me on the YouTube video that I seen. That's fine. And I'll have one of our salespeople reach out to you, but go to, if you haven't joined our mastermind, our Facebook mastermind group, all beliefs, all the leads, mastermind.
And just put a post in there. We've got about 14,000 members in there that are part of our group, and we've got a lot of people in Florida. So I would just put a post in there, with the details, got a commercial light under contract. I'm looking for, a commercial broker and investor in the Pensacola area.
And I'll, I think there's a decent chance. You can find someone. That way, that you could work the deal with Bruce. Anything else? Any other suggestions for Frederick? Yeah, I've got a extend on your Facebook recommendation on our group. Guarantee Pensacola is going to have a bunch of local real estate and investor groups in the area.
You might look up Rhea and Pensacola and specifically their Facebook group. And if they allow non-members to drop comments or properties in then I would drop that on the face book group, or at least a real estate group in Florida or Pensacola, drop it out there and see if there's any investors that, that might be interested.
I'm going to. That for 20,000, you're not going to get a whole lot of bites from commercial brokers. I'm not guaranteeing that, but I'm going to bet that a bunch, most of them won't jump on a $20,000 lie, but think that investors would. So go to Facebook and it doesn't even have to be a real estate group.
It could be a Pensacola, a community group or yard sale group. They know the investors, there are a bunch of investors in those groups and so ask, and then when it comes to the attorney, that's easy. Are you familiar with the expression G T S no, I'm not. Okay. It stands for Google that crap,
just just go there. There's a ton of attorneys around that area that some will be big, some will be small. And I would just look up and have a conversation with one or two attorneys down there. Gather four or five email addresses and fire, an email off explaining not the details of the situation, but that you have a client.
That you're working with or a deal you're working with and they need to go through probate and and just have a couple of conversations, pick the best person referral. Okay. And Frederick Bruce. Bruce speck sparked another idea along the same lines. You can actually go to reia.com, which stands for real estate investors, association.com, and a map will come up and just click the panhandle of Florida.
You will find affiliated REIAs in that area. And if you can't. Post directly on their site. I've had very good luck, just call the president. And the phone number of the reel will be posted, call the president of the Rhea and say, Hey, I got a deal who do you know that in your group? Because those groups can be anywhere from a hundred to a thousand people.
And when it's a good deal, I usually find the president of the Rhea says, yeah, me, cause he's president of the Ray, he's probably a deal doer. You know what I mean? So I would try to find. Find the regroup and get ahold of the president and CFP or any of his members would be interested in it.
But I think between those three ideas, you ought to be able to find somebody and good job. Now that you got your first deal, I think it's time to get you signed up as a subscriber. I'll have one of our sales people reach out. You said it was a reia.com. What's your Facebook group calls.
Our Facebook has all the leads mastermind. All the leads mastermind. All right. All right, sir. Congratulations on finding a deal. Good job. Asking that extra question. It a lot of people don't do that. So good job with that. All right. One more question. I'm done. So this little people, I was getting ready to put it on contract, but I didn't know if I needed an attorney for it because of probate need for it.
You probably want to try to get it under contract, but if it was me, I would probably just vent and make sure it's a deal first. And then you probably want to put it on a Florida far by our contract form. You probably don't want to put it on one from your state. It never hurts it to get it under contract, as long as you can leave yourself an out, but I might just make a phone call or two and don't give out the.
Exact specifics and make sure that it is a deal and you are able to do something with it and then go back and say to your seller, great news. I found somebody in that area. I'm going to go ahead and send you over an agreement and you can probably get the person in Florida to help you draft on the Florida.
All right. All right. I appreciate y'all. All right. Likewise. Thank you, sir. Thank you. All right, next up is phone number ending in three, three, one five. You're up next? Yeah, that's how you know
How to Build Referral Relationships With Estate Planning Attorneys [00:09:49] My name is Harold. I've been actually getting caught up on your guys' podcast 30 days. I think it's really great information.
I got it to a situation with a client of mine. I'm a real estate agent also moving into the investment side too. And it turns out one of my clients who are elderly was asking crossing property. And that's what you guys were saying. We're getting Harold, we're getting a little bit of an echo.
Are you on a speaker phone or something? Can you pick up. Can you hear me? It's about the same but that's okay. Are you hearing that too, Bruce? It's an echo effect. Yeah. It could be good place. Yeah. Go stick your head out the window. Yeah. Yeah. Is it better now?
Yes, actually. That's seems a bit better. Yes, sir. Okay. My fault. Client of mine accurate about. Putting their property into a trust. So I thought that will be a good opportunity to meet an attorney and probate because now you're bringing value to them instead of just asking them for business.
So it turns out that I ended up talking to an attorney. We had a great conversation on the phone. She offered to meet up for some coffee next Thursday. So my question to you guys will be like, what are tips that you can give that I can get this attorney to give me a shot, with her cases, what I'll come in a close, like I know way more than I really do, et cetera.
Okay. I'll take this one. So the there's one thing a lot, and I'm not sure if you are have you, if you've taken this and become a certified probate expert or not, but let's assume that you have, I'm waiting for the class. I'm waiting for you guys. We're waiting. Okay. Okay. Assuming that you you have, and this is.
More speaking to those of you that, that are certified probate experts at this point. I actually am, and I don't present myself as a certified probate expert when I'm talking with attorneys because to an attorney it's a bit offensive. They're the ones that took three extra years of school and passed the bar and probably had a lot of specialization classes and tests.
So I don't present myself there. I present myself as a guy, a real estate agent who is. Working to try to offer more value to my clients and specifically my personal representatives, clients and the attorneys that are working with them. And I say would something like, and then I described. A basic level of services that I offer.
So what some, what would an agent that helps the families clean the house out and helps organize the state sales and assists with things like lawn yard care and property cleaning. Would that be a benefit to your clients and would it make your job easier? And I just ask questions and if they say yes, I'll usually follow up with what else.
Would make your job easier and your client's life easier. So I want them to actually feed back to me what they see and maybe they give me something that I've never thought of before, but for the most part I want that attorney to feel like they have the biggest say in the service that I offer to them and their clients.
So I don't want to go in and just tell them all the things that I do without them having input. The. Other big thing with with an attorney that I do when I walk in is I assume the referral relationship. I assume that they know that I want referrals from them. And instead of saying, will you refer me?
I'll say I don't want this to be a one-way street. Where you give me all the referrals in the business. And I don't give anything back to you. I want this to be a two-way street where I give you value. What value can I give you? So now we've just skipped right over my request and gone straight into an assumption that they're already going to be referring me.
And unless they correct me I really think that I'm right. And I, it implies a referral relationship without me having to beg for it. That's pretty good. That's pretty good. All right, sounds good. We'll definitely put that to the test next Thursday. And hopefully I'll come back on Thursday and I'll let you know what happened, Bruce.
I've never heard that before. I love that. I love both of those lines. Great advice. Yeah. All right. Go get 'em and come back next week and let us know how you did appreciate your participating. Absolutely. Thank you, sir. We have four more in the queue, guys. We still squeeze a few more in if you want to hit star six and then hit one in the meantime, next up is phone number ending in five eight one nine.How To Wow Prospects With A Great USP [00:14:15]
Good afternoon. This is Karen Braithwaite Yarn. The name of my company is ABC real estate group, LLC. We've been in the business of buying rehabbing and selling homes since 2015. And my husband discovered ATL. And we're very happy for that. We've mailed out now, too. List of a hundred each leads. And I spoke with Bruce yesterday and he was telling me that he works as leads list for at least six months before we start to noon lists.
So that was very helpful to know. So he gave me a wonderful lead because I was trying to find folks who are here to ask them how they are doing grant Cox. Mr. Cox has done in the Virginia area. That's not too far from me. And he asked me a question, what value was I bringing? And I hadn't answered that question completely.
For myself or going forward, even though I have my website up now, my ATO website is up, but I had to really think about that. It took about 20 minutes wrote out my elevator speech and I sent it to him. Now he had not. In any way indicated he was going to read it and comment, but he did it. It was just amazing.
And he added some things to it that I hadn't thought about that would make it more effective and sent it back to me with best witches. So I just want to say the folks in this group were marvelous. I thank you very much. And lastly, when I talked with Chris the other day, I forgot to ask him about the probate seller interview sheets.
One of the interview sheets is a single page I'm assuming. And then the other is seven pages long. Just wanted to make sure I was correct with that information. I have been both in front of me and I'm assuming that. The short one is if you're that folks are trying to get you off the phone real quick.
And the longer one is if they give you an opportunity to actually ask them something, is that correct? So yeah, you are correct. Did you download those from the, all the lead site or where were those things that I had shared with you on our call? The one of the ladies in the office, I don't re Darcy.
I think she sent them to me. And then you sent me the probate seller interview sheet, the single page one, but she's sent to both that and the other 57 pages. You're correct. The single page interview sheet is a list of every kind of idea that you want to either convey or question that you want to ask.
And it's not, the questions are not written out in a linear fashion, or even the exact way that you want to ask. It's just a good standard list of categories of questions and how which. Information. You want to gather if you're talking about their family, if you're talking about their attorney relationships, if you're talking about their house so it's categorically there.
And then the seven page one is when you get further into a conversation and you want to really start building out that rapport. And now there's one thing that I do want to clear up for those of you that are listening. Everybody's going to have a different strategy and a different budget.
So Karen mentioned really working a single list for six weeks and then moving on to another list. What the coaching strategy behind that really is for most people is that you take your risks and you work on that list for six months. You can simultaneously add. Additional lift sign, but if you're really gonna see the fullness out of any given list you're going to work that list for about six months and you don't have to wait for six months before taking another one on, unless you have a budget restriction.
If you can continue to take other lists on, as long as you see that through for six months to really get the fullness and the most, the highest conversion.
You still there? Karen. Okay. I am. And I do have a question, but I'm looking at this probate seller interview sheet again, and the one that seems to have seven pages to it. It's the first page. I'm assuming you just fill out with date personal representative attorney phone number, email. And then the next page is powerful questions and closes.
And the seventh page is sales approaches, common objections, and it ends on point number four, hinge close. Okay. So Karen that, that document, there's a better document for scripting that doc document. And we'll take that down or won't distribute that. The first page is the interview sheet and the additional pages are techniques for creating a script and techniques for closing.
I have a better one that I can share with you or our other subscribers that get a coaching call. Than that. You should use the single page for your interview sheet, and that basically could go in your folder. When you start a relationship, then you start a dialogue with someone, you could put it in a folder for that person or that lead, and it will.
Gradually gather all the information that you want to know about them while you're working toward doing a deal with that person or family, the other seven page document. Just get rid of that one and get with me for the new dialogue sheet. That's what you're calling it. So I can differentiate it from the probate sellers review sheet.
Yep. Probate dialogue, cheat. Okay.
That help Karen. Thank you very much. Karen, we have two more in the queue. I just wanted to say it's interesting. It came up on our call yesterday. By the way, if you haven't listened, great role play call yesterday. Bruce, I agreed it was the best to ever, but we talked about on there, the value of having that sheet next to you, but it's not.
The scripts, the dialogues, the interview. It's not meant to be linear where you go through one question then other than another, it's just a great idea to have an extra series of questions sitting there. So if you get stuck in the conversation, Ask any question, while they're answering, you can think about the best next question to ask.
So it's just a tool to have, to keep the conversation going and flowing, but it's not necessarily meant to be linear. And you can tell we're always evolving our tools. If there's anything that's seven pages, that's probably a number of years old where we've Bruce has done a good job of boiling it down and making it more concise.
And. You should never really have to go through seven pages of questions. So it's not meant to be used that way. I just want to. Okay. Just wanted to clarify if I really should get rid of it, because it does have great idea. Yeah, it's up to you just, don't just don't feel like you have to use it and don't, don't let it clutter your approach by having too many things to use and say, but yeah, read it, absorb it.
And but maybe keep an easier to use more concise one with you while you're actually making your calls. Excellent. Excellent. I just want to say one more thing real quick. My husband and I used to sell insurance and reverse mortgages. We have clients from those days, many of which are seniors now.
So we fortunately saved their lists. Some of them are no longer with us. I'm sure, but we're going to mail to everyone, our letter that we normally send out with the The mailing through ATL and see if we can clean some more clients that way. In fact, I'm talking to one to two o'clock this afternoon, and my husband just talked to one of our old clients from our insurance days and they are giving us two more leads.
So I say that to say this, if you've been in other businesses, use your client list. They are very painful for many times over most probably. And they will know you. So that's a one, opening. Great idea. Great idea. And you remind me of one of our most successful clients, bud Thompson. He not only does that, but everybody he meets in the probate transaction.
The neighbors, the mortgage company, the inspectors, the, the title company. He adds them to his serve influence. So every deal that bud does, he probably. Adds, five to 10 people to his sphere of influence because he met them inappropriate situation and they, he wants to be able to get like the first caller said today you don't necessarily just have to rely on your leads for deals, they can come from everybody that, so I think that's a great idea.
Good advice. All right. We appreciate ya. Next up is phone number ending in seven three five five. You're up next.
How To Offer A Listing Price AND A Cash Offer [00:22:53] Hey, my name is Young here in Boston. I just signed up for you guys a couple of days ago. Can you hear me okay? Yes, sir. Okay, great. So I actually I'm pretty active real estate agents and I'm just want to get out of it and get more into development.
I do property management and development too, as well. And so I wanted to drop the the agency partners. So I hired somebody in to take all my agents leads for me. As part of my team. And so what I'm doing is I'm trying to find actually investment properties. And I just want to see, like, how do you really segue when you talk to somebody and cause I really wanted to try and purchase a property.
Can you segue from that? If they don't want to sell at two, the cash offer price. How do you, same way that to, Hey, I have a team member that can list your property. I feel when I come in as such a number does not give me the greatest number, it has a disconnect there.
Where do you offer them two different solutions? You're. You you want to do the ladder, you want to offer two different solutions or at least to go into an appointment, having a general idea of what they're looking for. And in a perfect world, you would ask that question before we meet let me ask you, is the house in disrepair?
Is there anything that you don't want to deal with? And see if they have any thing that they don't want to deal with at all. And then say, would it make more sense for you to get maybe a cash as is offer? Would it make more sense for you to go on the market and try to maybe get a little bit more, but put more into the property and just see what they're saying?
If they say, Oh, no, we definitely want full value. Send your partner. If if they say, no, we've, it needs a lot of work and we're not going to do it. Then you know that they're probably going to take a cash offer from you. And if you just don't get an idea either way, go ahead and present. Two or potentially three different options.
You could have, I have about six or seven different options that I know I have at my disposal, but I try to only present two or three tops. If I'm in front of someone, I don't want to give them choice overload. So what you're going to want to do is either figure it out before the appointment, which way you're going to go.
And if it's a listing, send your partner. And and if you can't figure it out, just present two options in the appointment and let them choose. And if I want someone to take the cash offer that I have, if I prefer that they, if I really want to wait it to where that's more advantageous, I'll say here's the cash as is offer.
You can walk away from the house and not do anything else. Here's the here's what we think that you might net if you listed, but here's a list of 10 things that you're probably going to need to do. To get that net and and then let them kind of work through the process of figuring out, do we want to put the work in to get this tickets this higher net?
And if they do they list and if they don't, they sell to you. It is normal for me to just give her like an offer on the spot, because if I do an offer in a spot, it's going to be a little hard for me to kinda, get those numbers like for the list, because it depends on what they're depending to do for they list it. You know what I mean? Cause there's just like a there's 10 things could be a wide range of price, if they list, what kind of what do you mean by, on the spot? Are you talking about in the house or on the phone? In the house?
Because you can't really put anyone, any price at all on the phone, you have to see the house. Yeah. So normally I just go through and you've got an idea having a real estate background. I'm sure you have an idea of what that house might list for if it was in, if it was cleaned out and had a couple of repairs.
So if they say, Hey, we'd really like to know a ballpark of what. We might lift for you just say this is just a ballpark. It's not exact, but based on my knowledge of the market, you might be able to get this. But but I think that you're going to need to clean the house out. You're going to need to repair the gutters.
You're gonna need to change the kitchen out, paint the walls and change the light fixtures and give them a list of some. General things too, to get the ballpark that they might list for. It doesn't need to be exact. It doesn't need to be an offer. Say, are you willing to do these things? If it meant that you'd be in this general price range listing.
And if they say yes, then you've sent your partner in. You send your agent. And if they say, no, you go, okay, this is my offer. What do you want to sign my offer? Okay. Second question I have is one of the things that sound I hear people presenting themselves with is that they're there to help facilitate other things too, as well.
Like your recommendation attorney helped them clean out the place organize in a steep sale. So what happens when they're like, Oh, that's great. If you could do all that stuff for me, but I don't want to sell the house to you or listed with you. How do we handle that? Because I do want to help people, but at the same time I don't want to spend hours doing something for free too.
How do you handle that? Would handle that one as I'd get myself a good local concierge. If you have one they are not there. They're in every market. They're just often hidden because they're not promoting their business to investors and real estate agents, but these are local people that often cater to the elderly.
They do their shopping, they pay their bills, say clean their house. They set up and quarterback a lot of different services. So get yourself a concierge and utilize. That person as as someone that can become the bottleneck so that you're not the bottleneck and these ancillary connections and services that you offer turn it over to them.
You don't have to spend money, they can be hired outside of what you do. And the other thing is you really utilize those needs that, that these families might have you utilize it to build a deeper referral relationship with your partners, with your team members. I will tell you that what you're asking doesn't come up very often.
Yeah. It's pretty rare that anyone's going to ask you to do something for free and not give you a shot to sell the house. And I go so far as to say I'm willing to do all these things, because I know that it's going to earn me the right to make you an offer on your house. And so I lay out that expectation up front that I'll do all this for free, or at least connect to you for free, because you're going to give me a chance to sell the house.
And I don't say it so abruptly, but that's the strong implication. And and if they're not going to sell a house to, or through you, they're probably not going to ask you for all those extra services. And if they do. Utilize the concierge and use it to build your referral network network and relationships.
Yeah, I was just going to piggyback on that a little bit. I felt going back to your first question that you were maybe still a little confused, there might my own experience. I've been a realtor and an investor my entire career. And if you ask enough good questions in the initial conversation.
Almost always you'll determine whether they're going to be a investor or a realtor deal. , like Bruce said, rarely do they ask you for all those extra services. I find it pretty rare that the heirs want to spend money to fix up the house, to get top dollar for it. They usually. Either just want to list it and be done with it, or they just want to sell it real quick and get their cash.
But if you ask enough good questions, just questions there's a lot of different ways I can help you. What's more important to you, time or money. Are you looking for a quick sale or, and usually they will tell you it's about a 90 10 in my market. About 90% of these people are going to be listing candidates and about 10% of them.
Are going to be quick flips. And if they generally a rule of thumb that I noticed that they don't have some compelling urgency, they're probably not going to sell it cheap enough for me to buy it. If they do, they're probably not going to have time to list it. So if you ask a lot of good questions upfront and I, one other thing I will tell you, I've shared this before.
This is pretty rare, but I have had people say I'm not really sure. Can you give me both options? And I go out of my way to be honest with them and say, in, in good shape, fixed up. If you're not in a big hurry, I, you probably get 300,000 for the house, but as an investor, to sell it quickly and take on the risk, I'd probably have to get it for about two 40.
And I can't tell you how many people have called me back and said, every other investor, they talked to told them it was worth 200. So they didn't have any intention of listing in any way and they appreciated my honesty. So they'll go ahead and sell it to me for two 40. So just, I think the more questions you ask in your initial conversation, most of the time, by the time you go out there, you're going to know, do they have the money?
Do they really want to put the time and effort into it? You're going to pretty much know in your initial conversation, whether they're a flip or a a listing candidate, does that make sense? Yup. Yup. Yup. We can go ahead and piggyback on that really quick with a good question to ask that you should be asking everyone that you have a conversation with is how much do you think the house is worth?
You can phrase it any way that you want, but you need to know how much they think it's worth because you might be surprised Both positively or negatively on what they think it might really be worth 200. And I say, I think one 50 and they might they might say two 50 but at least get an idea of what they think it's worth.
And then I would follow up that question of their answer with the question. Is there any work that you need to do to make sure that you get that value? And see if they will list off everything that needs to be done. That'll give you a really good idea through the conversation of which way you're going to go as well, because if they say, yeah, it's worth about one 80 and yes, I've got to clean the house out and I'd probably have to replace the roof and the HVHC and the kitchen.
Then you've got a really good idea when you go to that meeting, which way they're going to lean. Do you think seeing how much it's worth versus how much it appraises, which one's better? I asking them. Do you mean? Yeah. Yeah. Saying how much? Yeah. How much do you, I think it's worth, I wouldn't ask about an appraisal.
Most of the time they haven't gotten one. And if they have the appraiser usually on, on a, just an independent appraisal in my experience, most appraisers go high. So I'm not going to ask them about the appraisal.
All right, we appreciate it, sir. We have three more in the queue. Next up is eight eight, eight eight three one. You're up next.
Working Probate Leads: Should I Contact All Heirs or Just The Executor? [00:33:04] Hi, this is Andrew from New Jersey. Andrew wanted to ask how you don't want to ask a quick question as it relates to When you get a probate lead from the courthouse, they usually have all of the next of kin and then have maybe one or two administrators or executors or interests on there.
And my question is, do we contact everybody or do we focus mostly on the the executives of these things? So I think that you contact everybody. In my world, I usually take the first round of phone calls and concentrate on the executor. First round. If the executor hasn't answered and doesn't return my call within a day or two I just assume that they might be part of the 80% that don't answer unknown numbers.
So I start my second round and all subsequent rounds of calls, all call all of the numbers. And you get people that answer the phone that are obviously not the executor. And one good way to go about that. And this is just a little bit of a pattern disruptors. Just say, let's say you're calling John and a woman's voice answers.
You say this doesn't sound like John and get a little chuckle. No, a lot of times they're not going to say I'm his cousin or I'm his sister. They're just going to say no. And then you say I was trying to reach John, give the last name and and simply say, okay I'll tell you what this is. Mary does.
This might relate to you too. Could I take 60 seconds and tell you why I'm calling? And that's a great introduction and way to get into your presentation, your offer with the person that's not the PR. And you heard me chuckle a little bit there because Bruce and I when I was doing it, I did the opposite.
I would call through all the phone numbers and then go on to the next one. I think if I were doing it today, I would use Bruce's method. I think it makes a lot more sense. The other thing I would say it really does depend on your number of leads. It as far as efficiency, if you're getting 20 leads a month and you've got the time, then you might want to just power through all the phone numbers.
If you're getting 300 of them it's much more important that you speak to the most likely person first. And then I, that I would definitely use Bruce's method go through the more higher volume of leads you have. I think the more it makes sense to call the first number first, and hopefully they'll call you back and you won't have to get to the subsequent numbers.
Absolutely. That's so true because in some cases I will have multiple phone numbers, for, let's say that one individual. So I've been calling through just the first number, just trying to get through everybody as, as quickly as possible. I guess typically do you. Would you, if one person has, let's say four phone numbers to call, would you call all four phone numbers at one time or will you just move on to the next one?
And then in the second round called the second phone number that's available. How many leads are you getting every month? So I go down to the union County, so it's usually around a hundred to 200 a month. Okay. Then I personally, I would use Bruce's method. Then you've got, that's a lot of leads. It's a lot of calls to make.
Your neighbors. Yeah. Yeah. Call the one that looks the most most relevant. If it's disconnected or there's no voicemail attached to, it obviously dropped down, but I'd like to get through that list as quickly as possible with that many leads. And then the second time, go ahead and dial each and every number associated with the lead.
But the first time let's just get through it and try to find the low hanging fruit. That's willing to have a talk with you. And then every time after that call all the numbers. Okay. Thank you guys. All right. Thank you guys. We have two in the queue. We probably can squeeze one or two more in if somebody wants to jump in, just hit star six and hit one.
Next up is phone number ending in zero zero five five. You're up next.
Using a Non-Exclusive Listing Agreement [00:37:01] Hey guys. How you doing? Michael? Great. Hey Mike runner. Negotiating a seller I'm dealing with them. What kind of just run you by this deal? I'm working on the the after repair value is four 50. It's about 50 and he says, Mike, you need to guarantee me three 50.
My number is 300 as an investor. So basically I do believe that the retail market is between three 90 and 400. And this house in a very desirable area. No question. My take is, I'd be putting on a realtor's hat. Don't have the buyers right now. However, I do have two colleagues to two buddies of mine that are realtors that have already told me that they have buyers looking for exactly this, the challenges.
I'm just wondering what you would do if you're in this situation, he hasn't given me a listing or anything like that, yet he or I already disclosed, I got two people. Please get me in. It's been a struggle to get into the house because they live in another state and they only come once in a blue moon.
So he's basically look I'll I'll I'll pay a commission. But I need to net three 50 and you let me know when those two people want to see it and I'll meet you at the property. And I'm just wondering if you have any comments or feedback on how we would structure this, especially with, with the two realtors that have buyers, because, in an ideal situation, I just, put up a small deposit, which I don't mind risking if.
God forbid things go South and then I would assign the contract, but it's hard to assign contracts. I haven't done it too often with retail buyers, unless they're cash buyers and both of these guys are qualified, but they're they're maybe to get mortgages.
So how would you be nimble in this with the paperwork and I just love to hear your take on it. So Mike is there, they are both retail and user buyers. They're not investors. Am I correct in that? Yeah. These two people who would be paying probably it'd be tough. They're probably, I think the qualified for around three 90, which if you factor in like percent closing costs, including commissions puts him with at three 50.
So yeah. I would just go ahead and take arrange for them to go in, make sure that they're that they're agents, this doesn't fully protect you, but but make sure that their agents know that you're going to be involved as well. You guys go look if and their offer needs to needs to account for enough commission to cover your Acting as middleman, in which case if the deal was good, you would act as the listing agent work for the seller and let the other agent work for the buyer and just make sure that they know that their offer has to has to net the seller a certain amount.
And if it's three 50, it's three 50 otherwise you could go ahead to the seller and say, look, I have these two buyers, let me sign a non-exclusive listing. Four and come up with a price and say it's good only for these two buyers over the next week. And I'm going to list it at 5%, 6%, 7%, 15, whatever you want.
And and just line up for those buyers to come in with that non-exclusive listing agreement. Cause it sounds to me like the seller probably is not wanting to sign an exclusive yet. Is that a fair assumption on my end. Yes, they were really hoping to avoid any they are open to it.
If push comes to shove, they were very disappointed that I can't come up to three 50. Cause they really like a, just for me to be personally signing a contract or some in cash buyer investor at three 50. We, we can't always get what we want. My, my. Idea is that they will definitely sign a listing probably, but I exposed myself to potentially, having some other agents swoop in and get the listing if I don't deliver.
And I was almost like looking to see if there's a hybrid, some kind of solution that might be like some way that I can be like doing an assignment that way I personally. I don't, there's no listing involved with me. I don't have to necessarily split my commission with my broker because I'm not the broker.
So that means I'm giving up something more. Also, if I have more control, and the push comes to shove and there's pushback with mortgage and the buyer can only go up to three. Yeah. Something that nets a little up in three 50. I can, either take some off my end or I'll go back to the realtor.
And maybe they'll just, him and his broker will accept two and a quarter to 2%, so we can all make it work. Any ideas to do this in a way that would be like a, an assignment. So that I, as the assigner who's the, who can, takes everything, that I, if I want it to, who can then who's in the driver's seat, so to speak.
A couple of options there. Number one, we don't know that the seller will accept a contract with an assignment clause if they will, by all means, lock it up and to sign it. If they won't, your two choices are really. A non-exclusive listing agreement for only those couple of buyers that says how you and the buyer's agent are going to get paid, or you could do maybe a buyer agency agreement where you and the other agent both represent the buyer at a little bit of a higher commission.
And then you represent the buyer, bring the buyer in and get a commission. It really depends on whether it's. The buyer. So you would do represent the buyer with the other agent. If the seller won't do an assignment contract or won't give you a nonexclusive listing, but I would bet that the other that the seller would give you at least give you a non-exclusive listing, laying out a commission.
That would be, I think that's what they're going to give you. Yeah, I'll be honest with you. They, so are just caring about three 50. They would happily do an assignment and as long as they are netting three 50, but they're only that they're only care. Okay. Yeah. Yeah. To simplify it, that do it.
If they're willing to do an assignment and you know that you can, the house is worth three 90 signing the contract. So my question then is back to have you, and I haven't had any experience with this. Have you had experience with signing a contract to a retail buyer who needs to get a mortgage and what's your experience been like?
That hasn't been a problem because there's no, there's, you're using my investor contract. I'm not using a realtor's contract. Maybe I can do that. That's fine. But any experience with assignments on a retail buyer, who's getting a mortgage. As long as you is, as long as your deal, the seller gives you enough time and flexibility.
I wouldn't see any problem with that. Give yourself enough time to where if two weeks later, the first buyer backs out, you still have a week to put another deal together. You'll be fine. Don't sign a three-week close. In other words, maybe sign a two months close or a two and a half months close and you should be fine.
Makes a lot of sense. I appreciate it. Thanks. Thanks a lot. I really appreciate perfect and perfect timing. We have one more person in the queue last up this week, his phone number ending in five, five to eight. You're up last.
Reverse Mortgage and Probate Properties [00:44:08] Hey, this is Justin. I had a quick question. I'll be relatively quick.
Situation where a representative just received letters of Testament, Terry, he does have real estate. There was a reverse mortgage on it. He wants it to just be foreclosed, like he's done with it. I didn't really know what angle as far as creatively, how to, how you get around that, he's got some cash offers that doesn't work for him.
So he just reached out to the lender and basically let them know that to go ahead and foreclose on it. It means repairs and he's already put together a state sale that's coming up. Any advice on that, Justin is there enough? Equity there that that you are an end buyer could give them $5,000 or a significant amount of money so that he wouldn't want to walk away from it, or is it upside down?
With the reverse mortgage. What do you, what's the equity's position? That's a great question. That's something that I should ask him. I just got off the phone with him before I called then I went to call him and see what you guys might advise me to do. But so basically just ask him, where he's at with the mortgage, how much the house is worth.
And I wrote down some notes while listening to you guys as like answers to. Generally, depending on when the reverse mortgage was taken out and what the market's done generally reverse mortgages do have some equity, they don't lend up to 95%. It's usually 60, 70%. So there may be, he may just be perceiving that.
This isn't worth it. There's, it's in such bad shape. We're so far behind, but I don't want to mess with this, but do you have any idea? What do you think the house is worth? I haven't even looked into the house. Like I said, I just got off the phone with his guy fingers. So that's something that I should probably be next then.
Yeah, definitely ask those questions. Before you call back. Look do some preliminary research and get general idea of what it's worth. Maybe a general idea of what it's worth in great condition, average condition and poor condition. Just so you, you have an idea and then just say, what kind of condition ask, what kind of condition is the house in and the ed, and then followed up with, do you have any idea how much it might be worth right now and how much you owe.
Okay. And if it sounds like there's a spread there, just say, look, I know you were going to give the house back. Would it be worth a quick look just to make sure that you're not losing a whole bunch of money. Okay. Who would say no to that? I don't know anybody to say no to that. Is it crazy for me to come out and just to check?
There you go. Okay. Thank you. Perfect. And we haven't talked about this in a while, but if you find out there is no equity in this situation, you, it probably won't work but my wife has done over 2000 short sales. It amazes me how often the executors, even if there's nothing in it for them.
They don't want grandma's house to get foreclosed. They want a nice family moving into the neighborhood. In most cases, if there's little or no equity or it's upside down, you can still do it as a short sale. It sounds like in this case, they don't care about that. So you're probably going to have to put at least a few thousand dollars in their pocket, or they're just going to let it go.
So you know that, but yeah, I get those questions answered and if you need any help with the deal, just reach out to us. Okay. I will do. I appreciate it. Awesome. This might be the first time in 313 calls. We finished two minutes early. Want to say each and every one of you, we had a great turnout today.
I want to thank all of you for being here. I want to particularly thank the half a dozen or so people that actively participated, and I always end these calls the same day. I want to challenge each of you. 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 the results with the group.
Be safe, be productive, have a great week. And we will talk to you all same time. Next Thursday. Take care of everybody.