Tag - Creative Financing

Preview for Probate Mastermind Real Estate Podcast episode 304: NEVER Ask For A Signed Agreement Again: Presumptive Closes, Paperwork M

NEVER Ask For A Signed Agreement Again: Presumptive Closes, Paperwork Must-Haves, and Plan B Options For Appointments. Probate Mastermind Podcast Episode 304

Probate Mastermind Episode #304 | Recorded Live on November 12th, 2020.  Join Us Live Every Thursday | Previous Episodes

 

Episode Summary:

In this episode of the Probate Mastermind Podcast, you'll learn how to: use presumptive closes to win appointments; motivate old leads to sell in Q4; be prepared with the right paperwork at every appointment; leverage flat-rate listings with MLS opt-out; find quality contractors and agent partners; motivate old leads to sell in Q4; and more!

 

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!

 

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Episode Topics, Timestamps, and Resources:

 

Preview for podcast episode segment:  Never Ask For The Listing - How To Use Presumptive Closes

Never Ask For The Listing - How To Use Presumptive Closes (00:55)

Caller is signing a listing agreement today, but the seller was hesitant.  What are some tips for getting a seller to commit right away? The seller mentioned wanting to see what another investor would offer before signing.  Chad and Bruce answer. Caller describes how he turned this lead into a listing at (9:57), after really starting to focus on his probate leads just a couple weeks ago.

Real Estate Tips: Listing Flat-Rate with MLS Opt-Out for Cash Offers

Listing Flat-Rate with MLS Opt-Out for Cash Offers (6:31)

If a seller mentions they have an investor who might be interested in making them a cash offer, and you don’t want to make an offer on the property yourself, what should your next move be? Chad describes a common strategy he uses to generate a frenzy of cash offer: Flat-rate listing with MLS opt-out.

Real Estate Advice: How To Respond to Awkward/Rude Objections

Responding to Awkward/Rude Objections (8:17)

Caller asks for advice on handling awkward/rude objections.  Chad and Jim advise and give a few examples of language to use.

Real Estate Advice: How to Close Prospecting Calls With An Appointment Set

How to Close Prospecting Calls With An Appointment Set (10:49)

Danny and Chad mastermind how to win commitment to an appointment/follow-up contact when a prospect is hesitant.

Real Estate Tips: How To Find Quality Contractor Partners

How To Find Quality Contractor Partners (15:58)

Johnathan is interested in finding quality contractors to work with in his real estate business.  What are some ways to do this during coronavirus and social distancing? Chad and Johnathan discuss.

See More: Rising Lumber Costs and What That Means For You, Your Sellers, and Your Vendor Partners.

Real Estate Marketing Ideas: Branding Beyond the Real Estate Logo

Branding Beyond The Real Estate Logo (17:49)

Johnathan is building out his “Dallas Life Transitions” brand.  Does featuring his real estate logo help or hurt his marketing efforts? Chad discusses.

Real Estate Checklist: Staying On Top of Your Prospecting Schedule

Staying On Top of Your Prospecting Schedule (20:54)

Johnathan and Chad discuss how to use the probate leads CRM to organize follow-ups and prospect efficiently.


See More: Detailed breakdown and CRM walkthrough in Probate Mastermind Episode 301

 

Investor Tip: How to Pitch Your Agent-Partner to Prospects. (23:11)

Sam is working with a family that already had an agent in mind.  One of the family members seems interested in meeting Sam’s agent partner as well.  How can Sam navigate this? Chad breaks down how to make sure, as an investor or wholesaler, you have an agent-partner YOU are confident in.  Next, Chad describes the process and language for setting an appointment and establishing your agent partner as a step above the competition.

Earnest Money Deposit and Buyers Backing Out

Earnest Money Deposit and Buyers Backing Out (26:41)

Joyce is representing a personal representative.  A buyer made an offer during the probate process but wants to back out. Can they do that? Chad gives a simple answer.

Real Estate Tips: Why Winter/Q4 Is A Great Time To Prospect Old Leads

Why Winter/Q4 Is A Great Time To Prospect Old Leads (27:43)

Joyce is getting the same objections from her old leads - Corona, corona, corona. What can Joyce do to build motivation and get personal representatives to stop putting off their real estate needs indefinitely? Chad advises.

Later in the call, at 49:42, Jim and Chad discuss the cash conversion cycle and how real estate deals can close before probate is finished.


See More: Ask The Expert – Everything You Need To Know About Working With A Probate Attorney to Grow Your Real Estate Business, With John Erik Fraker, JD

Buying Probate Properties for 50 Cents on the Dollar

Buying Probate Properties for 50 Cents on the Dollar (30:59)

Woo-Hoo Eddie!!! Congrats on the baby and all the deals you put together during such a big life event!!  Eddie shares deals he’s closing through wholesale, investment, and brokerage strategies.  Then he shares a current deal he’s working on with a personal representative who inherited his brother’s house.  Eddie has the keys to the property but the personal representative won’t sign a contract.  What’s the next move?

Creative Financing: Multiple Heirs and Distressed Property

Creative Financing: Multiple Heirs and Distressed Property (36:52)

Eddie is working with a probate lead involving 8 heirs.  One heir has possession of the property and already has a for sale sign posted, even though the other siblings haven’t agreed to sell or signed releases.  The sibling living at the property is also asking for an unrealistic price.  What’s the next move? Chad probes for more details and suggests creative financing options. Best idea here would be owner-financing and getting the siblings to roll the property into a land trust.

 

Real Estate Listing Appointments: What Paperwork Should You Bring To A Listing Appointment?

What Paperwork Should You Bring To A Listing Appointment? (41:27)

Whether the path forward is listing or selling to an investor, what paperwork should you always be prepared with? Chad discusses listing agreements, letters of intent, purchase agreements, and other information to come prepared with.  He also shares a few strategies for putting deals together on the spot and reading the seller’s body language to determine which way to steer the ship. Chad also describes how real estate agents can make money wholesaling deals with proper disclosure.  Bruce suggests writing reverse offers to buyers when a buyer seems to be on the fence.

 

Real Estate vs. Probate Timeline: How Long Does It Take To Get Paid?

Real Estate vs. Probate Timeline: How Long Does It Take To Get Paid? (49:36)

A listener follows up on something mentioned earlier in the call, that it can take 18 months to close probate cases in some cases.  Chad and Jim offer clarification on cash conversion cycles here: The timelines for property sale and probate court are two different timelines.  Chad discusses some factors that can impact both.

 

How To Find An Investor-Friendly Realtor and Get Paid For Finding Listing Opportunities

How To Find An Investor-Friendly Realtor and Get Paid For Finding Listing Opportunities (52:07)

Ron is an investor and is looking to build a relationship with a realtor to help with deals outside of his driving range. His strategy includes long-term buy and hold, wholesale, fix and flip and creative financing. Chad shares his advice to make sure the agent understands those things and how to establish an amicable relationship from there.

Chad and Ron then discuss how to get paid legally for split work.

 

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Episode Transcript

Transcript: Probate Mastermind Real Estate Podcast Episode #303

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

[00:00:33]Jim Sullivan (Host/Coach): Welcome to all of our astounding agents and investors from across the country. Today is Thursday, November 12th, 2020. And this is mastermind call number 304. We have a full queue, so let's get right to the first caller this week. And first up is phone number ending in zero three zero nine.

Never Ask For The Listing - How To Use Presumptive Closes.

[00:00:55] Caller 1: Hey guys how you doing?

[00:00:56]Jim Sullivan (Host/Coach): Great. How about you?

[00:00:57] Caller 1: Good. Good. So I got a two part question, one more is actually a success story. I was able to reach out to a client over at that property and we're actually signing a agreement today. So I'm excited about that.

[00:01:09] Jim Sullivan (Host/Coach): Awesome!

[00:01:09] Caller 1: What I was going to say next, it took me about a week before she actually signed and I wanted to see, what's the best way to approach something where I know I'm providing value and I know I'm giving them everything that they want, but there hesitant to sign. So I'm just trying to figure out what's the best way to do it?

[00:01:25] Chad Corbett (Coach): Why do you think they're hesitant?

[00:01:26]Caller 1:  Because if they said Oh, we know we'll find out more on Friday, whether we're going to list over, we're going to, go with an investor and we'll agree.

[00:01:34] Chad Corbett (Coach): We'll make a decision then. And w why was Friday relevant?

[00:01:37] Caller 1: I honestly don't know.

[00:01:38] Chad Corbett (Coach): Yeah. my response to that would have been well, what if I could give you both? if we go ahead and list it today, we'll give you exposure to retail buyers that where you'll get probably a 20 to 40% premium.

[00:01:48]And if nobody comes through your investor can always make an offer. And if you would like me to exclude my commission on that particular buyer that you have in mind, I'm happy to do that. I'll write it in right here. Okay. And then you turn the paper and hand them the blue pen.

[00:02:01] Caller 1: Okay.

[00:02:02] Chad Corbett (Coach): So don't ever ask them, don't ever ask for a listing.

[00:02:06] Never you should like presumptively close them all the way through, in a series of small closes, figuring out what their objections are solve for the objection. And then just turn the paper around and hand them the pen and they sign every time.

[00:02:18] Caller 2: Oh, okay. That's cool. I didn't think about that.

[00:02:21] Bruce Hill (Coach): I want to throw in on, what Chad did before he gave you an answer.

[00:02:25] He asked you a couple of questions and ultimately when you get somebody that seems to be hesitant, you need to dig a little bit more and listen, if you don't know the questions to ask, Chad just came up with two questions really quickly. If you don't know those, you can simply insert "tell me more" into the conversation. Hey, we want to wait a little bit. Okay. Tell me a little bit more about that and then be quiet. Don't if they're quiet for a second, it's going to feel like an attorney to you. If not, just be quiet until they, they tell you their motivation for waiting and then you could even follow it up with.

[00:03:02]Okay,  what would the potential benefit to that be? What's the benefit. And tell me more. Those are two really good. one's a statement. One's a command. One's a question, but you're gonna, you're gonna understand it. So a lot of their motivations, and a lot of times they're going to talk themselves out of the waiting.

[00:03:18]They're only stalling because they have a fear of buying something. They're just getting a little bit of buyer's remorse and they're throwing a stall out there just out of habit and they can still overcome it themselves. If you ask the right questions.

[00:03:30] Chad Corbett (Coach): And that's, I could do a better job explaining myself too.

[00:03:33] Thanks, Bruce. What I'm doing in the background is I'm asking myself, what's the emotion driving the behavior? And the behavior is apprehension, right? that's what we're there they're doing. But why is that? If I haven't heard a legitimate reason and they say, Hey, you're the guy for us. We really like what we've heard.

[00:03:51]Let me think about it. You've given me a lot to think about. Then my mind immediately, I'm going okay. What is the fear? It's almost 99% of the time. It's a fear whether it's rational or not, no matter how small it is, it's creating a block in their behavior. So I'm like, what is the figure that is driving this behavior?

[00:04:09] And how can I remove that fear? And a lot of times people just, they know what they need to do, but you've gotten them out of their comfort zone and all they want to do their amygdala is like retreat. Get back into your comfort zone. Even when it's not in their best interest and you'll get a feel for this.

[00:04:23]and that's why I apply pressure the way I do. If somebody, if this were a grieving widow and I felt like she just wasn't ready, my approach is 100% different. But when someone says, Chad, we love what you're doing. We're ready to do business with you. Why don't we just wait a week to see if we can sell it for less?

[00:04:40] That's an that's irrational. So their fear is not representing their best interest in my opinion, as their potential fiduciary. So that's when I grabbed him by the hand and pulled her ass out of the probate quicksand before they ended up costing themselves a bunch of money. And I can feel good about that.

[00:04:55]But that's, what's going on behind the scenes with me, as I'm trying to identify the emotion, driving the behavior. If there's not a good explainable reason, then I'll put pressure on and make them and have them do what's in their best interest. Gotcha.

[00:05:07] Caller 1: That's exactly what happened. She's like, I'm looking for an investor, but at the same time, I want to make more money.

[00:05:12]So just I want to wait till Friday, since I'm meeting with an investor then, and see what they propose to me.

[00:05:16]Chad Corbett (Coach): So you can use Bruce's tactic there and be like, Oh, that's interesting. So tell me why you're you think selling was investors in your best interest? And then you're going to get all of her beliefs.

[00:05:26]So you'll get the belief that selling with a realtor is hard. You'll get the belief that cleaning out a house is more than she can handle. You'll get the belief that it's going to take 60 days. You'll get the belief that she's going to pay more in commissions and end up making less money. And what does that become?

[00:05:40]That becomes your language roadmap for the rest of the conversation. You just literally she'll set up the flags and you just go pluck them out and then hand her the blue pin, but asking, say, listen, that's a lot of folks say that I'm really interested to understand why, because we have a fiduciary responsibility and we, we are.

[00:05:56] Bound by a code of ethics and investors aren't. So as far as where I said, it looks like I'm offering you protection, consumer protection to get you the most amount of equity out of the asset. And it looks to me like you're not interested in that helped me understand. And I'm bringing that fear to the surface right now.

[00:06:13]I'm an investor too. but if I believe that it's in their best interest to sell on the retail market or as is, I'm going to use that language. If I think that it really, they really do need an investor offer, then I'm going to be the one with the blue pen. I'll sign the offer and then slide it over to them.

[00:06:28]Caller 1: Okay.

Listing Flat-Rate with MLS Opt-Out for Cash Offers

[00:06:29] Bruce Hill (Coach): Another thing that you could do is act a little bit confused. It takes a level of confidence, and I don't want to say practice this, but

[00:06:35] Chad Corbett (Coach): -you're really good at it, Bruce.

[00:06:37] Bruce Hill (Coach): You do want to practice and you're acting confused. I'm great at it. You do want to practice  acting confused and say, okay and an investor might be a solution for you why? Why don't I just bring you some investors and. It needs to have, an air of authenticity to it. because if they feel like it's just a trap, it'll play against you. But if you just get a puzzle book on your face and go, huh, okay, I get it.

[00:07:03]why don't I just bring you a handful of investors now you better have the investors if you're going to do that.T hat will normally get them to go well. Yeah. why not? Okay. And then you can turn it around and get the listing side.

[00:07:15] Caller 1: Okay. Cool.

[00:07:16] Chad Corbett (Coach): That's I used to use that tactic too. I hadn't, NAR has muddied the water for us there, a lot of sellers were, they were hell bent to go sell to an investor.

[00:07:25] And if it's a house that I didn't want, I would list it on a flat rate. So I would get, higher than six or 8%, if it was a cheap house, an inexpensive house. I would list it flat rate with an MLS opt-out and then I would just send it out to my list of 138 cash buyers that had real relationships with them.  We would have a frenzy in five minutes and they were always shocked and I'm like, so you create price competition among qualified investors who have been pre-vetted by you. You're technically representing the seller, but you get the double ended and you just, the first page of your offer for the investor is an unrepresented party had done them.

[00:08:00]So I actually did that quite often with if I didn't want the house myself, it's essentially, it's the net result of wholesaling, but it's not considered in that listing. And it's perfectly legal, but NAR has tried to put an end to any MLS opt-outs okay.

Responding to Awkward/Rude Objections

Caller 1: Cool. And then, what are you doing in a situation when you do a USP and the response I receive was like, Oh, probate, that's going. And I just got stuck there. Obviously I'm, I'm just starting out, but I'm trying to get used to it, and I have a little bit of a fear, typically, that's an objection that I never heard before say, thank you.

[00:08:33] Chad Corbett (Coach): Good probate. Is, did you say probate is done

[00:08:35] Caller 1: The objection I received was like, probate is going. after I did my USP. Yeah. Which is odd. I didn't understand what he meant by that.

[00:08:43] Chad Corbett (Coach): What can serve you? Like he gave you an awkward response. So answer him with an awkward response. So probate is going... well or not?

[00:08:51]And then it'd be absolutely silence. If they're being like that with you, just turn it back around probate's going, just give them an awkward pause and say, well or not? And then don't speak because you want to use that silence as your leverage, and it's extremely uncomfortable for people.

[00:09:07] So they've established a pattern that they found the run people off quickly, and just a few words, and you can short circuit that and get to get, to have a real conversation with the person you can use. You can use humor, you can use just and that situation, that's an awkward response.

[00:09:23] So that's what I responded with. But get them out of that loop and then have a good question on deck. Is it going well or not? and then they'll respond and say, the reason I ask is because we actually make a phone call to every single family, every single month and Roanoke County. And I would say at least 85% of the people that say it's going well, ended up calling us back when they're in the, when there's, the stress is up to their ears.

[00:09:45]And then we asked to go do six months of work and a month. is it going that well for you?

[00:09:50]Jim Sullivan (Host/Coach): Yeah, I thought of another one you could say, where did it go? If you want to use a little bit of humor, are you able to find it?

[00:09:55]Hey please come back next week and share, when you get that listing you'll be up for winner of the week.

[00:10:00] Caller 1: So I'm going to meet with them.

[00:10:01] Chad Corbett (Coach): Did you get that listing that you're signing today? Was it inbound or outbound?

[00:10:05] Caller 1: Outbound

[00:10:06] Chad Corbett (Coach): On the phone? Like you own all your followups?

[00:10:08] Caller 1: Yup.

[00:10:09]Chad Corbett (Coach): The first time you talked to them or.

[00:10:10] Caller 1: Yeah. First time I talked to her and met with her at the property, give them my listing presentation. And they said give me until Friday.

[00:10:15] And it's just happened the beginning of this week. And then before you know it, she tells me, good job, thank you for their hard work. you worked so hard for me, I'm ready to assign and just bring them, listen to agreement when we meet. And how long have you been at? Great. Awesome. Repeat that again.

[00:10:27]How long have you been doing this? Honestly since September, but not hardcore to like maybe a couple of weeks ago.

[00:10:32] Chad Corbett (Coach): So you started trying two weeks ago and you already got your first listing on the first phone call.

[00:10:37]Applaud from the crowd!

[00:10:38] Jim Sullivan (Host/Coach): Good job, buddy. We got a very full queue this week, but thank you for leading it off. Appreciate it. Next up is phone number and again one eight five, five. You're up next.

How to Close Prospecting Calls With An Appointment Set

[00:10:47] Danny: Hey guys.

[00:10:48] Jim Sullivan (Host/Coach): Hey, Danny. What's up.

[00:10:49] Danny: So I just want to do a quick follow-up. I know Chad wasn't in the call last week and then you guys gave me some really good insights.

[00:10:54] I want to get some insights from Chad as well. I'm going to, it's the same question. I wrote down everything as well. Chad, if you can give me some insights as well. My question was, what advice would you give me for making sure I definitely get that appointment set up on the call. I'm running into, I know it's a me thing, but I'm calling them.

[00:11:11] Everything's going well, competition going. Great. tell me about the house. Everything I need to know, but making sure I get that appointment set, or at least a follow-up call.

[00:11:19] Chad Corbett (Coach): Tell me where you're losing it. What's the objection where you're not getting the appointment?

[00:11:23]Danny: I believe it's just more so on my side. I'm calling everything going well, I'm getting on.

[00:11:29] Chad Corbett (Coach): All right. let me ask, I'll ask a better question. how are you going in for the appointment? Give me your, tell me what that language is.

[00:11:36] Oh man, I don't. And that's another thing I don't even know if, at the time, like I really was trying to go in for, I was more so tunnel vision on can I get the right questions to ask to know about the property or where everything else I didn't get to know about?

[00:11:51]And by the time, like the end of the conversation came around and it was good. I didn't want to like force upon Hey, I'll call you back at this time or Hey, can I, can we go see the house?

[00:12:01] Danny: Okay. I think that's more,

[00:12:02] Chad Corbett (Coach): So this is something I struggled with early on. I used to ask myself the same question.

[00:12:07]The reason, have you been through mastery?

[00:12:10] Danny: Yeah. Yeah.

[00:12:10] Chad Corbett (Coach): Okay. So you remember the order in mastery, so it's, your USP and then you identify, is there a real estate? Is there an intent to sell? Who are the decision makers? What is the relationship dynamic? And then go for the appointment.

[00:12:23] Before we talk about real estate, we go for the appointment. We identify real estate and then we quickly step away from it. So they don't feel like that's the only purpose of our call. And then we focus on building a rapport by talking more about people and situation, and we set the appointment. It's usually tentative.

[00:12:39]And then you get, you give them a hundred percent of permission to cancel and they never do, because you will reinforce that with so much value after you go, Oh, Hey, real quick, before you go, can I ask you a few questions about the property so I can do my homework and then it becomes a more casual, light, easy conversation.

[00:12:55]And then, and you gather all the other information. So what you're doing is you're accomplishing, I try to accomplish that 10% and then pick after I have the appointment and get the other 90% of the information you're on the flip side of that. And that's how I used to do it. And that's what I tell you in mastery, like everything on that probate seller interview sheet, and during day three, like when we go through the conversation, like literally line by line, I've moved each of these pieces around and put them in the right progressive order where I had the highest close ratio.

[00:13:23]So I would suggest that you focus more on people in situation and get the appointment, even if it's a tentative appointment and then say oh real quick. Can I ask you a few questions about the property? And this is where you get to really show off your value and learn a lot about the property and the finances and all those things.

[00:13:39]So I think that's going to help you. The other thing that will help you is remind yourself every time you pick up the phone, why are you picking up the phone? what's your personal outcome? I'm asking you, what is your personal outcome every time you pick up the phone?

[00:13:52]Danny: Oh, you're you're asking me.

[00:13:53] Okay. for me, it's, reach out to them. If they are in need of any help, and if I can,

[00:13:58] Chad Corbett (Coach): How much money do you make reaching out to people?

[00:14:00] Danny: None.

[00:14:01] So let's get to, what is the prime objective of the call? It's to get face-to-face with this person for any reason, because once they meet you face to face, you close, right?

[00:14:10]Chad Corbett (Coach): How many have left 10 face to face appointments you have? How many did you fail at?

[00:14:14]Danny: For me, I haven't made a face-to-face myself yet. I've gone in with, I work with  in this, in this, gotcha. Yeah.

[00:14:23] Chad Corbett (Coach): So you're teeing Shaiah up with appointments.

[00:14:25]So of the last 10, how many failed like that? You got the face-to-face appointment.

[00:14:29] Danny: I've gone well, personally, I wouldn't say I've gone to 10 so far myself, but I've gone to four. And from my knowledge and everything, I was having none of them, I told her we always make a up with if we can, view the house, but we've gone and met them.

[00:14:43]So I, man, I wouldn't even say any of them.

[00:14:46] Chad Corbett (Coach): Fair enough. You get my point. What I want you to like during this entire conversation, even after you've gotten the appointment, why do these people need to see me in person? Because when you get there in person, your chance of getting in deeper rapport and closing goes up exponentially.

[00:15:01]Every time you make a prospecting call, deep breath. How do I get face to face? Sometimes it's to put a no trespassing sign on the window. Sometimes it's to get a dog and take it to the SPCA. So it's cared for sometimes it's, to change out the locks on the house to winterize the house, whatever, however, small that reason might be.

[00:15:20]If you can get a decision maker to meet with you, it changes the whole dynamic of this and you no longer have competition. So I want you to focus on that as the primary objective of your next prospecting call being, how do I get face to face then you don't have to be thinking about 10 different ways to set an appointment because you're going to come up with it.

[00:15:37] And it's going to be different every time. You'll know how to close the appointment, because you'll know that the clear reason and the clear outcome of the meeting you in person, and that will drive your language. So you don't need a script. You just need a purpose and your purpose as a face to face appointment this time, actually.

[00:15:53]Danny: All right. Yeah. Thank you me. I was writing all that down as well, and that was good advice. Thank you.

How To Find Quality Contractor Partners

[00:15:58]Johnathan: Hello everybody. This is Johnathan from Dallas, Texas. How's everyone doing today?

[00:16:01] Chad Corbett (Coach): Hey Johnny, Johnathan. Welcome.

[00:16:03] Johnathan: Thank you. Thank you. Thank you. Okay, so I'm going to go right into the questions. Okay. So first when I'm talking about quality contractors, so in mastery, Chad, one of the things, one of the ways you said to meet a quality contractor was, you would be out either at Lowe's or home Depot in the morning.

[00:16:20] Coffee donuts or something of that nature and meeting the people, it looks for the big trucks, people who actually are making money and doing well real business. So in this environment where we are with COVID, how would you change that tactic? in order to meet some quality, contractors, or would you still do the same thing?

[00:16:36]Chad Corbett (Coach): I did the same thing. they have to get out and work and they're, they're doing what they do. So there's a lumber shortage now. So like when I go to buy lumber, I have to go to three or four stores. So you're actually more likely to meet them now than ever, because now they're going to three and four different Home Depots.

[00:16:52] So if you spend three hours under the port, the Portico on the pro side of the home Depot, you'll meet more contractors now than you would have a six months ago. they're having to run all over town for materials.

[00:17:02]Johnathan:  Gotcha. Good deal. All right.

[00:17:04]Chad Corbett (Coach): Another thing you can do something.  And I don't know if I mentioned this in mastery, go to custom cabinet shops, custom kitchen and bath stores. Those are people who are selling to a higher end clientele and, get to know, just let them know, say, Hey, listen, I'm looking for a guy that's, that has some availability right now. I've got jobs lined up.

[00:17:22] Can you please give him my card and just stop into those places were more successful and more organized contracto, the people they have relationships with. So if you've got lumber wholesalers, if you have kitchen and bath stores, granite places, and just say, who do , who do you do a lot of business with that you trust that has some time in their schedule? Can you please make sure they get one of my cards? And it gives you some scale there. Cause you can have people out recruiting for you.

Branding Beyond The Real Estate Logo

[00:17:49] Johnathan: Got you. And if I could differentiate those people from people who are just wanting to do punch work, real quick, all my letters. Okay. I know this is a plus or minus. I need your everyone's opinion on this one. I have on the top of my letters, another hand, I have Dallas Life Transitions, which is, which is my LLC. And then in the middle, I have my real estate logo, which is actually my logo, which is my main, the little fancy way that has real estate under there. Is having my real estate logo, a plus or minus on there?

[00:18:16]I have Dallas life transition. One side. This is in my logo is in the middle.

[00:18:20] Chad Corbett (Coach): You need to test it and find out, all right, so I'll take it off. The only real way to know is to remove it. My inclination is to tell you to take off your real estate logo because you wouldn't be, you wouldn't be building and supporting a brand called Dallas Life Transitions.

[00:18:34] If all you cared about was real estate listings, am I right?

[00:18:37] Johnathan: Gotcha.

[00:18:38] Chad Corbett (Coach): So you're conveying two different things. You're saying here's a broad scope of service that I do to provide service value to my community. But Hey, look, I'm a realtor got me real estate. So take that off. And in the beginning of the conversation, think of it as a funnel, right?

[00:18:53]So in the beginning you have a broad scope of service. And as you learn about the people in this situation, you start to tighten the focus of the conversation at the bottom of the funnel is realist. Because that's what you can directly monetize, but there may be 12 things that are bigger problems in their head and their perception is their reality.

[00:19:11]So if the dog that needs to be taken to the SPCA, because nobody, people are getting tired of going and feeding it every day. If that's the biggest problem in their mind, You need to have a solution for it. So if that was life transitions as a brand that can capture all of that, you, your name as a real estate agent or broker doesn't.

[00:19:29]So they may perceive that as well know, I'll call this guy whenever it's time to sell the house and someone else will get it before then. So that's why I like. That's the, that a brand is you're painting the picture of a vertically integrated solution, like a social enterprise in the community and to dual brand something is just diluting, both brands.

[00:19:48]Johnathan: Gotcha. All right. Good deal.

[00:19:49] Bruce Hill (Coach): One more real quick. real quick before you throw that, Chad almost convinced me cause I was going to take the opposite approach. And and now, now I'm wishy watchy on the opposite approach, but I've

[00:20:00] Chad Corbett (Coach): are you acting confused again?

[00:20:02] Bruce Hill (Coach): I'm actually confused. Yep.

[00:20:04] So I've run two separate companies with, generic brands, not Dallas life transitions, but just generic company names. And both times in my business, both times that I went away for my personal name and two, a company name, I lost conversion. What I realized is most of the time people do business with a person and they're less likely to do business with a company.

[00:20:29] If that company isn't brand. And I, so they do business with you as a person.

[00:20:34] Chad Corbett (Coach): One thing I would say to that is it's an obvious personal letter with his name at the bottom. So he, they're not getting a letter from DLT, saying respectfully DLT, corporate headquarters.

[00:20:45]They're getting it from DL, from the person. I agree with what Bruce is saying, but considering how personal our letters already are, I think that you get around that.

 

Staying On Top of Your Prospecting Schedule

[00:20:54] Johnathan: Okay. One more time. I have one more, one more real quick. I'll all right. It's about follow-up is about followup and everything.

[00:21:00] It's about system. I'm finding it. A lot of my leads are falling through to falling through the cracks because either I'm not calling them back or what day to call them back. And, I don't know if I, should I try paper. I put writing each lead that I needed to call back on the paper, put it in the system, like it folder system, but it becomes junkie.

[00:21:17]What have you guys done in the past in order to make sure that the call that you're going to make the follow-up calls, that you're going to make pop right up so you can, so it's not such a headache to search through and find, okay, I need to call this person back. Or is it today or tomorrow?

[00:21:32] Does that kind of make sense? So this is a system question.

[00:21:35] Chad Corbett (Coach): You just need to start using it. So when you're making a call, are you prospecting from the, my probate leads, the CRM we give you? Yep. Yes. So you have four tabs at the bottom. Tab number three is the option status tab. So that's where you rate the lead.

[00:21:49]You can opt them out of phone calls, emails, whatever follow-up. Excuse me, it tracks the result of your phone call and on, I think on the second tab, you actually schedule your follow-up date. And then on the list view, you sort by followup date, the other thing you can do to more, to customize it and make it more personal to you is on the first tab you can use the shortcode function.

[00:22:08]So if you can say, let's say you're sending a premium mail piece, so you could say. PMP follow-up and that would mean for you, that would mean premium mailpiece follow-up. That would be a shortcode. And now you can sort your list or filter your list by that short code. you know what our goals are, which ones need to get the PMP or which ones has already happened.

[00:22:28]Everything you need to stay organized and save money already built in. It's really simple by design, but every, I think everything you're looking for is there. And we talked about this in pretty great detail. I think it was two mastermind calls ago. Katt can link it in the show notes. but, I think it was two calls ago.

[00:22:45]We actually had a pretty extensive conversation about just all the ways you can use that to get a more efficient workflow.

[00:22:52] Johnathan: Gotcha. So it's user error. All right. If Katt links that I'll take a look at it, I'll still search it. So I'm just looking to maybe, be able to maximize that to the most, be very efficient with it so we can, have success if you guys for, thank you for taking my call.

[00:23:05]Jim Sullivan (Host/Coach): Thank you!

[00:23:06] Johnathan: All right.

[00:23:06] Jim Sullivan (Host/Coach): All right. Next up is phone number ending in three five seven, five. You're up next.

 

Investor Tip: How to Pitch Your Agent-Partner to Prospects.

[00:23:11] Sam: Yes. Hello?

[00:23:12] Jim Sullivan (Host/Coach): Yes, sir. You're on.

[00:23:13] Sam: My name is Sam. I'm calling North Georgia.  A Person out in Cali and I'm here in Georgia and she's the PR is out in California and her sister is here locally in Georgia, and her sister has a realtor, but it doesn't seem like the sister in California is dead set on the realtor. So I was wondering, what can I, how can I sway her to use my realtor here?

[00:23:33]Cause she said it's okay that my realtor gives her a call,

[00:23:36]Chad Corbett (Coach): Does your realtor have probate experience or do they offer the, all the services we talk about on these calls?

[00:23:41] Sam: No. He does not.

[00:23:42] Chad Corbett (Coach): Yeah, it's pretty tough. you're saying, this Apple versus that Apple. Typically my answer would be the, the service we provide is such a differentiator.

[00:23:51] It's very easy to outsell almost any realtor, but if you feel like that, what's your realtor's X factor. why do you call them your realtor?

[00:23:59] Sam: Actually he, cause he's just been here for a while. I haven't gotten many, different, realtors to choose from, Cause it's hard to find somebody that's going to work with you.

[00:24:08]Chad Corbett (Coach): Yeah. If you don't even know what his X factor is or her X factor is it's going to be hard to convince somebody else. typically the direction I go with that as Oh, that's incredible. I'm so glad you have options. let me ask you this. Have you already signed an agreement with that person?

[00:24:22]Okay, great. And when you're, when are you guys meeting? And if there's no meeting scheduled, that means there's probably not that you don't have much competition. It's pretty easy to overcome and then I'll go toward, alright, listen, the reason we'd like to come and try you've trust me. I understand my risk.

[00:24:35] I could be wasting my time. I certainly won't waste yours. I will leave everything with you. but I at least like I have an opportunity to meet with you and see your whole situation. Cause there's a lot of things families don't expect from us. So getting homes cleaned out, getting them secure, getting proper insurances in place.

[00:24:51] Many families don't even know that they could lose everything. so there's a checklist we go through with every family and that's why I like to meet face to face. It's just. it, we can just accomplish a lot more and a lot less time. yeah. Would, could you think you can meet with that other agent before Friday?

[00:25:06]Okay, great. Then help us. How's Friday at one, try to put them in the door in front of me, but I have a huge differentiation point before I do that. So I try to show them the broad scope of service that we can offer. everything that comes along with brokerage, put my competition through the door in front of me, and then they go, that's going to leave so much curiosity that they're going to, they're not, they're going to be very hesitant to sign any, anything with anyone until they meet with me and see if I'm full of it.

[00:25:32] Or if I can actually do what I've said. And then that's back to the very first caller. Like you, you just become a good listener. And and them the blue pen. But if you don't have much faith in your, and your brokerage partner, I would say step one for you is finding a brokerage partner that you're proud to present like that on the phone so you can differentiate them.

[00:25:51]Cause it sounds to me like you don't really believe in their service.

[00:25:54] Sam: Okay. And, there was, there was, one of those. Masterminds that came when you gave options,  and then you crossed out certain ones and you explained to them which one, that they would go with. where could I find that one?

[00:26:05]Chad Corbett (Coach): it's we. And probate mastery. We unpack it all in session two. I show you everything and literally dozens and dozens of options. And that's where the long form where I show you how I, shaped the conversation and use the net sheet, but right there in our, and if you look up a seller net sheet as a keyword, if you go to alltheleads.com.

[00:26:25] And the top, You'll see a global search bar put in seller net sheet. And that should bring up show notes from previous role-plays and masterminds, where we've talked about how we use it.

[00:26:34] Sam: Okay.

[00:26:35]Jim Sullivan (Host/Coach): All right. Thank you, sir. next up in the queue is phone number ending in six, two, four eight.

 

Earnest Money Deposit and Buyers Backing Out

[00:26:41] Joyce Arnston Morris: Good morning. It's Joyce Arnston Morris  in Orange County, California.

[00:26:45]I have two quick questions. If I have a client who has full authority to file for full authority, and I have a buyer that signed an offer to them, and the probate isn't closed yet with the court. Can the buyer back out at any time?

[00:27:02] Chad Corbett (Coach): Who are you representing Joyce

[00:27:03] Joyce Arnston Morris: Oh, I'm representing the PR.

[00:27:05] Chad Corbett (Coach): Okay. whether the buyer can back out is dependent on the contingencies in the contract. What contingency are they trying to exercise

[00:27:12] Joyce Arnston Morris: They just don't want do it anymore,

[00:27:14] Chad Corbett (Coach): That's fine. Send them a release with a $0 earnest money deposit return.

[00:27:18]Joyce Arnston Morris: So they don't get their money back.

[00:27:20] Chad Corbett (Coach): I'm assuming that's what the contract says. So if you guys have held up your end of the deal and it's contingent upon court approval, as long as that court approval wasn't on or before a specific date, then you're within, you're performing with within what you agreed to in the contract.

[00:27:35] So if they've changed their mind, just let them know that it's very simple. You just forfeit the earnest money deposit and then you go sell it to somebody else.

Why Winter Is A Great Time To Prospect Old Leads

Joyce Arnston Morris: Got it. Okay. just one more quick question, Chad. I still don't have an open courthouse in orange County and, my regular, USP and, things that you've taught me to say, aren't really working with my old leads.

[00:27:59]It seems like I need a new. A new approach because they're so old. I haven't had a lead since April.

[00:28:06] Chad Corbett (Coach): Okay. Where did the conversation hanging up? what's the choke point?

[00:28:09] Joyce Arnston Morris: It just seems like I get all the standard objections that a lot mostly. we're just stuck with COVID and we're not moving forward until we get.

[00:28:19]Chad Corbett (Coach): Okay. my first response would be, yeah, trust me. I understand. we've had to, be patient and a lot of families are being patient right now, even when it's not the best thing for the family. Let me ask you this. Joyce, when is your next hearing date? Are you, do you know that. And what I'm looking for is how engaged are they really?

[00:28:35] Or have they just checked out and the attorney sitting on his hands because there's no urgency. And if they do know a hearing date, then that gives me a target, like a follow-up target. if they're just not, if I know they're going to sit on their hands until X date, then I know exactly what I need to follow up is about a week before X.

[00:28:50]So ask them, ask them some questions like that are more procedural questions. Will you help me understand where you're at in the process and, what's the net, what do you think the next, what's your understanding of the next step? and as you, as I start talking about that gives you some time to think and be listening for other chinks in the armor, like things that could be bothering them.

[00:29:09]And, for example, winter, property tax coming due next in your market, as it in December. Okay. So that's a good milestone that, applies to every single conversation. Mr. Smith, I'm sure you're aware that, property taxes, aren't cheap and orange County and they're due on December 5th.

[00:29:24] So if we could get this in someone else's name and your family could save $15,000, do you think that would be in your best interest? We can't do that because -- actually we hope a lot of our clients get full authority from the court, so they actually can sell on the family's timeline, not the state's timeline.

[00:29:40]Is that something you'd be interested in? If we could show you how to do it, to save you a whole lot of time and a whole lot of money. Great. How's Friday at three. I can meet you at the house. And so look for specifics like that, like use, use specific things like their next court date, the next tax event, the election, if you want.

[00:29:57] Like the, the presidential inauguration and whatever your belief is about where your market is headed. You can use that as urgency, but if they've gotten in this pattern of procrastination and the attorneys validating that, because he's also in that, if you watched the interview with John Fraker, and it takes him an average of.

[00:30:15]Nine 10 months to close a probate case, where the average in the state is 18 months. And it doesn't just because they have an attorney just because they trust that attorney doesn't mean they're getting the best service or the, or are having the most efficient process. So poke around and see if there's anything you can do to expedite the process and get them ready, engaged, because it will save them money and then stress. So that's what I would try is

[00:30:41]Joyce Arnston Morris: That's good. Thank you. You're welcome. I will give it a try right now. As soon as the crossover thanks bye bye

[00:30:47] Jim Sullivan (Host/Coach): All right. we only have two more in the queue. We had a few people drop out. If anybody wants to jump in and start at six and hit one in the meantime, next up is phone number ending in five, four, six, four.

50 Cents On The Dollar With Probate Properties

Eddie: Hey, how's it going? It's Eddie here in Kansas city.

[00:31:01] Jim Sullivan (Host/Coach): Hey, Eddie.

[00:31:02] Bruce Hill (Coach): What's up, man.

[00:31:03] Eddie: Bruce. I told you I wasn't get on the call like three weeks ago. And, I've just been two swamped. We had the baby last week, And we weren't able to get on the phone call. but, I have some wins from a couple of weeks ago when I told Bruce, but, I got two contracts signed for purchase, properties I'm gonna purchase. I have. I got one of them assigned already. And we're closing sometime next week, dealer property I'm purchasing on the 18th.

[00:31:28]Then I wholesaled the property that closed a week ago. Monday. And then I purchased property that will we're going to fix up and sell. Hopefully today I was just talking with the title company while we were, while I was listening to this. And she's saying, hopefully we'll close it today. a lot of things coming through that are for the good, Bruce, that property that I was hoping to get under contract.

[00:31:52] I did not get the contract, but the guy gave me the key to the house. So he was like, here's the key? So I'm still like, can we sign a purchase agreement, but he was just like, here's the key. So I don't have to come over here and show you inside anymore. So now we'll

[00:32:06] Chad Corbett (Coach): ....move in and claim adverse possession!

[00:32:09]Eddie: Yeah, I can. Or just, I'll just, start renting it out and do that.

[00:32:13] Chad Corbett (Coach): Yeah, there. Yeah. what do you think his hang up is like he wants to sell it?

[00:32:17] Eddie: Yeah, his brother committed suicide there.

[00:32:19] Chad Corbett (Coach): So what have you, if you just send them, I send them a contract, just send it to him and see if he signs it and sends it back.

[00:32:24]So I've done this with letters of intent in case they sign it. It's a non-binding agreement. if you've already been through the house, you know your price, right?

[00:32:33] Eddie: Yeah.

[00:32:33] Chad Corbett (Coach): Yeah. So what I've done in the past is I will actually sign the purchase agreement, but over the price field, I will put a post-it note that says, call me, let's fill in the blank on the phone, and then I'll send it in a certified envelope, just so I know it gets there and I know it gets attention.

[00:32:50]And when they open it up, it says real estate purchase and sale agreement and they remove the sticky and see the price field blank. Your damn phone rings immediately. And it's a way to break people out of that. And, he obviously is emotionally checked out about the house. He's here's the key, screw it.

[00:33:05]Like he needs to sell that house, but he needs a breakthrough and you need to make it real. if you ever negotiated on some like personal property, if you show up with cash and actually show it to the person, you can buy shit at 30 cents on the dollar. And you're doing as how we do it in real estate, right?

[00:33:22]Show him the reality of the situation by giving him a purchase agreement that he's not expecting. And I'm actually, I had it backfire on me once. Cause I did it with people who I'd never spoken to. I only just so everybody understands, this is only a tactic I use with people I have rapport with. If you do it as a cold mailer, Man, it pisses a lot of people off asking me how I know.

[00:33:42]but it, I have used it in this way where, when people just can't get out of their own way and make a decision, it can create a breakthrough. it's, what's it going to cost you 10, 15 cents to try, or whatever the certified letter costs plus the printing, but that's something you could try.

[00:33:57]Eddie: Okay. I like that.

[00:33:58] Chad Corbett (Coach): So you've gotten four deals in the last month. Is that the timeline you're talking about?

[00:34:02] Eddie: Yeah, the two that I've closed off, like I've literally been working on these two for two years. Like two of them for two years, it's the same seller, but I just kinda kept nudging and kept nudging.

[00:34:14] And, then we found out that it was a dirty title. So then I renegotiated my price paid for quiet title actions to be done, and then had to wait for those to go through and then COVID stopped everything. So then September is when the quiet title came through on two of them. And then the, so those are our two of them.

[00:34:34] They. Third. One is a guy who really didn't like my price at first and said he was going to go and he was going to clean out the whole house and then call me to come back. And so he called me and he was like, yeah, come back. And literally hadn't done anything to the property. We were just, I gave him a little bit higher than what he said he will be originally talking about.

[00:34:54] And he was like, okay, this sounds good. And my buyer, he does a lot in that area. So I signed the assignment contract the same day that I got the contract on that property. And then the last one is actually the first deal I'm closing. Since I bought AllTheLeads. It's the first deal that's come through for all the leads.

[00:35:14]Since I started buying them in, I think August, September, something like that, but, and it worked from a phone call. I just called the guy once. He was like, yeah, meet me there today. And he's the same guy that said he got higher offers, but when it was me, because I was more professional,

[00:35:28] Chad Corbett (Coach): That means you're doing something, you're doing it. All right. That's awesome. So what would you say is the average percent of market value? You're getting these, if you, if it's a blended across all the deals, you've gotten in probate, how many cents on the dollar do you think you're averaging?

[00:35:42]Eddie: Probably around 50.

[00:35:43] Chad Corbett (Coach): That's amazing now. And these people feel. They feel served by you, even though you're paying them 50 cents on the dollar. And that's absolute proof that you're providing real value in the community. And this is a realtor heavy call and it's a realtor heavy conversation most of the time.

[00:35:58] And you just heard me compete against you as an investor, but there is a time and place for an offer at 50 cents on the dollar. And like David Pannell was one of our. top producers, he's averaging 55 cents on a dollar 65% of his deals are wholesale are versus listings. And there is a massive need in the community for this, for people who just are done.

[00:36:20] And it's really common for people to say, Oh, we're going to clean it out. We're going to keep it. We're going to run up to cousin, Jerry. And a month later after a blow up argument, everything changes. So you're doing a lot of things right. Your approach is obviously right. Your service is obviously top notch.

[00:36:35] Your follow-up is working for you. Like you're doing a lot of things. And it shows, you're getting a consistent result, so good on you, man. Thanks for sharing all that.

Creative Financing: Multiple Heirs and Distressed Property

Eddie: I appreciate it. I have a question. On, this is one of the, what I should, how I should approach this. This is a lead that I talked to the ladies, the PR, she said she there's eight siblings, which typically when there's eight people, I don't really bother.

[00:36:57]Chad Corbett (Coach): because you need to change your mindset on that seriously. Yeah.

[00:37:01] Jim Sullivan (Host/Coach): Yeah. Those are the best deals because the more heirs, the less interested. Yeah, exactly. A discount the price doesn't affect any of them too drastically the way it would with one. So yeah, I've always found those are the best.

[00:37:14] Eddie: Okay, on this particular one's six, people want to sell there are six siblings and then two step siblings and the step sibling, one of them, he has possession of the house.

[00:37:26]And he has a for sale sign in the I've talked to him and he's yeah, I want to sell it for this much money. how do I, talk to him to be like, has this gone through probate? Do you have the letters of testamentary? What other questions should I be asking him to get him to realize he can't  - he could quit claim deed it to somebody, but legally he can't sell it, from under his siblings like he's trying to,

[00:37:46] Chad Corbett (Coach): Let's find out if that's right. Is there a, will.

[00:37:49] Eddie: No.

[00:37:49] Chad Corbett (Coach): Okay. So state succession law says that all siblings get an equal share, right? If it was a legal marriage, even though another stepchildrenthey have an eighth of it. So that means you need eight signatures or releases.  So if he gets a buyer today, he still has to get all the other siblings to sign.  t sounds like you're not sure if it said if they've ever petitioned for probate.

[00:38:09] Am I right?

[00:38:10] Eddie: Yes. The petition for probate's been filed. Oh,

[00:38:12] Chad Corbett (Coach): Who is the who's the administrator?

[00:38:15] Eddie: I think it's his sister, Wanda. Okay. The person that I called originally, and she's like, my brother, isn't letting us into the house. He's not letting us do anything.

[00:38:23] Chad Corbett (Coach): So she's, but she is the personal representative or the administrator for the estate.

[00:38:27]Have you spoken to the brother?

[00:38:29] Eddie: Yes.

[00:38:29] Chad Corbett (Coach): Have you been in the house?

[00:38:30]Eddie:  I haven't. We tried to set it up a couple of times and just hasn't quite worked out, but, I keep following up with them to set up a time to try and go over there and take a look at it.

[00:38:39]Chad Corbett (Coach):  Okay. Do you think his price is fair or are we off base?

[00:38:43]Eddie: Oh, abs it's, last time I talked to him about going to look, he was like, it is in pretty rough shape. He says he wants 34, it based on the area. And if it's in rough shape, can't do 30. So he's, it will take some talking to get him to come down.

[00:38:58] Chad Corbett (Coach): So do you do creative financing at all? I haven't.

[00:39:01] Eddie: I just picked up the books that you talked about real estate.

[00:39:04] Chad Corbett (Coach): Let me ask you this. If you could have that house for a hundred dollars a month, would you take it?

[00:39:09] Eddie: Yeah.

[00:39:09] Chad Corbett (Coach): Then go buy it with owner financing and they all get what they want.

[00:39:12] Eddie: Okay. It's a good idea.

[00:39:14] Chad Corbett (Coach): Show them how to roll it into a land trust, set up autodraft payments, but a third-party service are in place and you take away all their objections and they all end up making more money over time.

[00:39:23] If they want their money up front, then use that as an anchor and say, okay, listen, I showed you how I can give you a price. If you like, if you want to talk about my price and then it's, we're going to have to change the terms of this. This is my price. This is your price. I'm giving you two ways to sell this house.

[00:39:41] Which one do you think works best for you? So creative financing, even if you just use it as an anchor for the conversation, it can be a great leverage point that gets him past this because he hasn't had that realization. Like you, you've got to bring him to reality. And using giving them a real option, okay, perfect.

[00:39:58]I'll pay you, $30,000 we'll close next week. Can you be moved out by then? And you're getting back on his heels and it's no, listen, like I gave you what you wanted. So here's the blue pen and then you're having a real conversation so that if, as long as you're okay, holding that as a rental or wholesaling, it.

[00:40:15]I would offer him owner finance and  call him to the carpet.

[00:40:17] Eddie: Okay.

[00:40:18] Jim Sullivan (Host/Coach): And I was going to quantify my comment about multiple heirs. That is if they all want to sell, if they don't, they could be a challenge for sure.

[00:40:25] Go ahead. You have one more question, find it.

[00:40:27]Eddie: I have a statement actually. Chad keeps saying, tell us about Chris Voss, his book never split the difference on one of the contracts. I'd given him a price 20,000, he came back. He was like, can you do 22 five? And I did, when I used to do sales training, I called this technique, the sizzling bacon, where you suck air through your teeth, go.

[00:40:48]And then I said, how am I supposed to do that? Just quiet.

[00:40:52]Yeah. And I was just quiet. It was super uncomfortable. It was so awkward, but he was like, all right, sounds good. So beautiful. Anybody who, hasn't picked up that book it's worth listening to or reading.

[00:41:05] Jim Sullivan (Host/Coach): That is awesome. Thank you, sir. We have a full, we got a full queue again. We had a bunch of people just jump in and we're probably not going to get to y'all if we don't get to you, right after the call, reach out.

[00:41:15] We'll get back to you. One-on-one I think we, Bruce, and Chad, are you, do you have a hard cut off at two or can you go a little bit over, two 15? I'm good. I got about 500 staff after.  phone number ending in three eight, six one.

[00:41:27] You're up next.

What Paperwork Should You Bring To A Listing Appointment?

[00:41:27] Wayne: Hey everybody. This is Wayne in the Houston, Texas area. My question relates to paperwork. Oftentimes I go out and after I schedule an appointment and I'm out at the property meeting with the PR, I think I know part of the answer that you might give me here, Chad, and that is, I think I'm probably not as prepared as I should be with paperwork in hand.

[00:41:49] I often just go to work on just establishing the relationship, looking at the property and then coming back later with a, solution, whether it be I'm a realtor. So whether it be me listing it or. connecting one of my investor partners, on the situation. So currently I've got a PR, representing her sister's estate and there's three houses.

[00:42:12]and again, I met him, I met the cyst. I met the PR out there. We toured. To all three properties, two of them were rented to tenants and the third one had a, her sister's son who is living in it. So they're all, they all, they all are in somewhat of a state of disrepair. They need work. So both myself and the PR are uncertain as to what the.

[00:42:34]The, the end game or the path forward is whether it be listing it or selling it to an investor. One of the tenants is interested in buying it. So there's this, at the time of the initial appointment, I don't sign any paperwork. I don't really tie up, the opportunity and, I just kinda go along from there.

[00:42:51]And I'm working on all three properties, currently. And, I guess my question is what is there, as an, I can't, even if I had a good price and I signed a listing agreement, I guess I could put a delay on before going to MLS or, and there's certain paperwork we can do with the Texas real estate commission to.

[00:43:08]to get something signed, but not put it in the MLS yet, but I wanted to get your opinion on how I can secure something so that when this PR gets approached by maybe other investors or other family members, there's a sense of commitment and I've signed something and I'm working with Wayne and, so I have more control over it.

[00:43:27]Chad Corbett (Coach): Sure. So it starts with a commitment like right here and right now that you'll never go on another appointment without paperwork. And unfortunately, I had the same bad habit when I first came from, I came from resort development. So I was selling brand new construction. And once I got the handshake, I would turn it over to an attorney.

[00:43:45] The attorney would write the contract. So my habit was to never do contracts myself because somebody else will do it while I was out selling something else. And I brought that in the residential and I, I probably cost myself at least $200,000 before my hard-headed ass learned the lesson. But. I will never go on an appointment without contracts.

[00:44:04] Even if I have, I leave blank ones in my truck, I've got one of those folding binders that fits in the map pocket in the back of my truck seat. And it as a standard Virginia residential purchase, purchase agreement, and a listing agreement and they stay there and I've actually had the, like the, I've gotten phone calls while I was out.

[00:44:22]There's no time to do the homework. It was moving really fast. And I'm like, you know what, let me run to the truck real quick. And I've literally pulled blank paperwork out of the back of my truck seat and bought houses. So I've had enough experience to learn my lesson. What I'd prefer to do is have a more controlled environment.

[00:44:38] Like I will pull the tax card based on the initial conversation and the tax card. I'll pre-fill as much as possible on both the purchase agreement and the listing agreement. That goes in the left-hand side of the folder and I teach you this and mastery, like I. I have a technique where I opened the folder up where it's clearly displayed.

[00:44:56] So it shows my intent. It shows it to me as importantly to them, but I'm here with intent. And my intent is to serve you and get paid for the service I'm providing. So I slide that folder in front of whichever person has the seemingly as the most social authority, even if that's not the administrator or the personal representative, if somebody else has stronger authority in the family, like in the walkthrough, then that gets slid over in front of them.

[00:45:21]And I'd play a game. Like when they pull the folder out of the paper, out of the folder and start looking through the contracts, then I know I'm done. So I would suggest that you just think about it a little bit and think, my intent is always to get paperwork signed, whether that's a letter of intent, a purchase agreement or a listing agreement, one of the three usually fits.

[00:45:40]Okay. Now, as far as when you're, when it's unclear, what sh what exact tactics you'll be using, choose a strategy, whether it's listing or acquisition, choose your strategy. And if you're unclear on the tactics, go ahead and sign the agreement. You can always amend just about any agreement, right?

[00:45:57]So you can in my listing, I really like this here. Cause I use it this way a lot. We have a listing date and we have a, a listing live date or we have a listing agreement date, and then a list, a live listing date. So it gives me two date fields that I can use and easily show my MLS that I was in compliance and our roles are, it has to be uploaded within 48 hours of the live listing date.

[00:46:20]So I can do it on the November 12th. And my live listing date can be January 2nd. and there's, nothing. So I'm protecting my interest in this property until I get it ready for market. if you don't have that built into your standard forms, just use the additional CaRMS and just figure out your language, additional terms.

[00:46:38] Number one, the effective listing date is X the listing live date that it will go onto. TX XMLs is this date. And as long as I can do that, we can do that. Yeah. That's what I would recommend, but always go with prefilled paperwork if it's an option.

[00:46:53] Wayne: And I'm not an investor, I have investor partners, so I don't have the letter of intent or a purchase agreement. I only get, wouldn't be able to carry, the listing agreement. So just use that to

[00:47:05] Chad Corbett (Coach): That's not necessarily true. If you want to represent buyers as a buyer's agent, then you can pivot and you can say, listen, that's fine. It sounds like you don't really need representation. It seems like you're a very intelligent person.

[00:47:17]I also, I represent buyers as well, and I have several investors that buy in this zip code that I'm sure would be interested. So could I, can I bring you in. Can I bring can I write an offer on the property? And if they say yes, as long as you have a good book of buyer business, like for me, like I could send a few text messages and, walk around and look at the gutter system for 10 minutes.

[00:47:37] And I would pretty much know when I came back around to the front door, whether I could present an offer or not. And you can DocuSign an offer off and do it like in real time, like that's extreme, but you could also go ahead and sign the listing agreement for, even if it's just for 24 hours or seven days, I've done this a lot to sign a listing agreement with a very short listing term.

[00:47:58]And then go out, send it through your cash buyer list. All those investors, get them to give you an offer, have them sign an unrepresented party, had done them. So in that case, you can play the role of the wholesaler, but with, a fiduciary responsibility, you can double in the commission without dual agency and everybody wins.

[00:48:16] So you can use your state forms the same way a wholesaler would use a contract and an assignment. you're getting, and you can do it as a flat fee. Like I was saying that earlier one, I did this on, I took five of $5,000 commission on a $25,000 house. And I knew I could sell it in hours and it took, I don't know, it might've taken 10 hours to get that one ratified.

[00:48:36]but I made 5,000 bucks in 10 hours.

[00:48:38] Wayne I'll, I'll jump in and say it years ago. I've learned that a lot of times as a seller, when you have an interested buyer, you can write a reverse offer to that buyer, especially if the buyer's on the fence. So I started making that technique several years ago.

[00:48:55] Bruce Hill (Coach): And when I meet with a seller and they say, Hey, look, we just want X price. I go ahead and write up the offer and have the seller, the owner, sign it. And I'd say, if I get you a buyer that meets these terms, signatures on the, on this document, the new buyer, they're just going to sign it and you're going to be under contract.

[00:49:14]So if, if you think that. They're going to be good with certain terms. And you think that you have a buyer that would jump on those terms. You can have them sign the purchase agreement ahead of time as well. Okay. That helps.

[00:49:25] Chad Corbett (Coach): I think something that's an important areas is disclose like your representation.

[00:49:30] Wayne: Okay. True.

[00:49:31] Jim Sullivan (Host/Coach): All right. Does that help, sir? Yep. All right. We have one more in the queue chat before we get to the last caller.

 

Real Estate vs. Probate Timeline: How Long Does It Take?

I just got a text question from a caller, like three, three callers ago. it was mentioned that in California, it can take 18 months to close the probate just in case we got any new people.

[00:49:47] We don't want them to think that they're not going to get ever get paid for 18 months. Would you just real quickly explain how you can get full authority in California and be able to close it sooner?

[00:49:56] Chad Corbett (Coach): Yeah. And just because probate takes 18 months doesn't mean that you're not going to get paid. I think that's a common misconception.

[00:50:03] Like real estate is not probate. Real estate is one asset within probate. So even in States where probate takes a long time, which, California, Nevada, Hawaii, like they, they have long processes. It doesn't mean the real estate professionals not going to get paid and the title's not going to transfer.

[00:50:20] So the first thing is understanding that the next thing is understanding, but not all attorneys are created equal. Some are way better than others. And some are way more, proactive, which makes their process more efficient, which shortens the timeline. Great drastically. If they haven't. Petition the court for full authority versus limited authority.

[00:50:39] That's one thing that you can nudge the attorney to do on their client's behalf. And what that allows them to do is fast track the entire process, especially the real estate sale. So in California specifically, and that is very similar when you have the contract and the purchase agreement is ratified.

[00:50:55] That's then submitted to the probate attorney who submits it to the court and that they then appoint a referee. I go out and give them a valuation. Then you wait for the next hearing. And then they open an over bid process. And then your buyer, if you're the buyer, you could be overbid by 10% and it's more like it's an option format.

[00:51:13]If you want to avoid that whole thing, you just need to petition the court for full authority. At which point it looks like it does. And just about, and the really simple States ratified the purchase agreement. Get us a title close. So it's you don't like if you were alarmed by that statement, it did certainly doesn't mean you can't get paid for 18 months.

[00:51:31]But you can, by understanding the local process and being very familiar with it, you can find ways to help the clients. If the attorneys not, you can help push them through. And what you'll find when you do this and get to know a few attorneys, really good probate attorneys, don't allow their clients to have limited authority because it's not in there, but it's not in their best interest.

[00:51:51]but unfortunately they're not all really good. So sometimes we have to help them along.

[00:51:55] Jim Sullivan (Host/Coach): Perfect. Thank you. we have, we're making up for the short call yesterday with a long one today. We'll one more caller in the queue. Last up this week is phone number ending in six, three eight, eight year up last.

 

How To Find An Investor-Friendly Realtor and Get Paid For Finding Them Listing Opportunties

[00:52:07]Ron: Hi, thanks for taking the call. This is Ron in Arizona and I'm new. I got, a couple of things, first of all, my County is two hours away from me. It's not going to be easy for me to drive down there all the time. I want to work with a realtor. There's a realtor there that I respect. I'm not sure how to frame the relationship.

[00:52:28]And I'm also, the second part of the question is I'm not sure what to do to, get some momentum, get the things moving. I'm in a mental framework where I want to know the whole stretch of how things are going to work before I take a step and I'm not getting anything done that way I have to move forward somehow.

[00:52:48]Chad Corbett (Coach): So are you clear on your offer? Like all the ways you can help these families?

[00:52:52] Ron: Yeah. I think I'm clear on that. What I'm not clear though, is, how many to work with their real estate agents? I'm aware that she may be tempted to try to take, what could be a wholesale or a creative finance deal from me and make, turn it into a listing for her.

[00:53:10]And I want to try to, frame the relationship in a way that's not so tempting for her. That she would really value the relationship more than anything. So that may mean that I'm going to have to pay her more for wholesale now.

[00:53:23] Chad Corbett (Coach): You won't cause she's going to get more opportunity than you are. There are more listings in most cases, there'll be more listing opportunities then than acquisition opportunities. It sounds like you're doing creative financing. So you're going to have a higher close rate, but my suggestion is make the two hour drive. Go, take her to somewhere or her choice of where she would like to meet for drinks and, settle in for a couple of hours and really just talk this through and set proper expectations.

[00:53:50]And if you're comfortable with this and she is, I would recommend that you end that meeting with a pledge, like just, it can be the back of a napkin or something you type up and whatever that might be. But yeah. Is, make sure the things that are important when I coach investors to find the right realtor, you need to make sure they understand your strategy.

[00:54:08]So if your strategy includes long-term buy and hold wholesale fix and flip and creative financing. They need to understand those things. Cause they won't know when they're getting out of their lane unless they do. So you guys need to have like standard operating procedures for when somebody is at this level of motivation or this price point, then that's my appointment when they're at, different than it's yours.

[00:54:31]and figure that out. If in the beginning, you may to help build these like procedures, you may actually want to go on each appointment together. So you guys can, you can kick her under the table and be like, no, we're buying this one. What's key is setting proper expectations and getting all the, what ifs up out upfront before anything bad happens and any money gets lost or, it ends up putting the wrong pocket.

[00:54:55]so I would recommend, sit down and really build that relationship, like a bottle of wine, Get a restaurant close to the hotel. Like you sit down and really flush this out and until everything is said, and then that should eliminate any conflicts or confusion.

[00:55:07]Ron: Okay.

[00:55:08] Jim Sullivan (Host/Coach): And then probably want to recommend two rooms right Chad so we don't, it doesn't get too confusing. Okay. Okay. Go ahead. We're running short on time, but you have a follow up question.

[00:55:17] Ron: Yeah. If it turns into a listing for her, is can I ask her for a, a fee on that? Yup.

[00:55:23] Chad Corbett (Coach): She needs to account for income tax liability because she can't legally pay you pretax. unless she has a, unless she holds her license in entity, then she can, but she can pay a marketing fee to you. What might it be cleaner way? And I'm sure her broker would be more comfortable with it is if you actually just split the cost.

[00:55:41] So maybe you pay for the leads. She pays for the male or vice versa. or something like that, if not having the payment tied to a specific piece of real estate is wise, because that way it can't be construed as a commission or perceived as a commission. So if you have a retainer that she pays you a monthly marketing retainer as a marketing fee, then it's, you can clearly say, listen, here's the invoice from the last three months, it's always the same amount.

[00:56:08] That's obviously isn't associated with business activity or any certain the parcel ID, this is just a business arrangement between the two businesses. Or you can just split your credit cards, her credit card on file for mail and yours for leads and see how that equals out.

[00:56:24]Jim Sullivan (Host/Coach): All right, sir. Does that help?

[00:56:25] Ron: Yeah. Yeah. All right. All right.

[00:56:27] Jim Sullivan (Host/Coach): All right. we appreciate all of you guys. Thank you for it was a marathon call. We had great participation. I want to challenge each of you: take one thing, one thought, one idea that inspired you on this call. Go out and put it into practice and please come back next Thursday and share your results with the group.

[00:56:45]Have a great week. Stay healthy, stay productive, and we will talk to you. Same time. Next Thursday, take care everybody. Talk to you soon.

 

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Preview for Probate Mastermind, a Real Estate Podcast that makes advanced sales, listing, and investing strategies easy for any agent, investor, or wholesaler to use.

Wraps, Sub2, Lease Options, B2B Prospecting, and More | A 500-Level Real Estate Mastermind in 50 Minutes | Probate Mastermind Real Estate Podcast #299

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

Probate Mastermind Episode #299 | Recorded Live on October 8th, 2020.  Join Us Live Every Thursday | Previous Episodes

 

TEASER ALERT: We will be recording a special podcast/webinar episode for All The Leads’ Ask The Expert Series next week with an Infinite Banking subject matter expert.  This special guest worked as a Medicare Broker before entering the Be Your Own Banker space.  With a deep understanding of the intersections between Medicare/Medicaid, Estate Planning, and Real Estate Investment Strategy, this Special Guest is someone you’ll want to hear. Make sure you are subscribed to alltheleads.com/blog to get notified when it publishes.

 

More Content Published This Week: October 2020 Updates: Social Media and SEO News For Real Estate Agents and Investors

 

Summary: In this episode of the Probate Mastermind Real Estate Podcast, Chad Corbett discusses advanced real estate investment and infinite banking strategy.  Topics include helping a family pay off Medicaid liens and earning that capital back by leveraging life insurance policies; using lease option to acquire or wholesale probate property; becoming your own banker and turning your SOI into private lenders for real estate investment deals; accessing funds/financing for repairs to maximize equity when a seller has no liquidity or credit, without using your own capital.  Other discussions include winning B2B relationships with real estate attorneys and adjusting your marketing strategy to combat the telesales impacts of COVID-19.

 

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!

 

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Episode Topics, Timestamps, and Resources:

 

Preview for podcast segment on Learn how to become your own banker, help families with medicaid property and estate planning, and regain real estate investments through infinite banking

Advanced Investment Strategy: Infinite Banking, Life Insurance, and Medicaid Properties (0:47)

Eddie is working with a seller who is about to lose inherited property due to a transfer on death to Medicare.  Eddie describes the situation and Chad explains what’s happening and how the situation got to this point.  Then, Chad describes an advanced investment strategy stemming from the Be Your Own Banker (BYOB) philosophy.  This strategy can help settle Medicaid debt out for a much smaller amount, let surviving family members remain in the house, and become a solid financial investment for all parties involved. 

TEASER ALERT: We will be recording a special podcast/webinar episode for All The Leads’ Ask The Expert Series next week with subject matter expert on this subject.  Make sure you subscribe to the alltheleads.com/blog (at the bottom of any blog post) to be notified when the episode is published.

 

Preview for podcast segment on the 1% rule in real estate investing

 

What Is The 1% Rule In Real Estate Investing?(7:06)

Joyce is interested in learning more about the 1% rule for property valuation. The 1% rule is something some investors love and others hate.  Here’s a simple explanation of the 1% rule from the Bigger Pockets Blog.  

Preview for podcast segment on transferring property to family members for trusts and probate

Intra-Family Transfer and Quit Claim Transfer (7:40)

Joyce asks about Intra-Family Transfer and to what extent family members are able to go this route.  Chad describes how Intra-family transfer is really a quit-claim transfer so whether an extended family member is eligible for intra-family transfer or not, quit-claiming the deed is always an option.  In most states, this will be a zero-dollar tax transfer.  

 

Preview for podcast segment on Help your real estate clients with Medicare liens and bills

Helping Real Estate Clients With Medicare Paperwork (8:28)

Danny’s working with a potential probate seller who’s biggest obstacle right now is handling Medicare paperwork.  Chad lists a simple step for finding a social worker or care manager in your area who can help with any of these situations.

See More: Unexpected Places to Find More Listings and Deals – Probate Referrals from Medicaid and Social Workers

 

Preview for podcast segment on attorney referrals for real estate listings

Top Strategies For Building Referral Relationships With Real Estate Attorneys (10:22)

Fed is having trouble getting through the receptionist when calling attorney offices.  How can he get further with his B2B prospecting efforts? Chad describes the two strategies that have always worked well for different personalities, different markets.

See More: Ask The Expert – Everything You Need To Know About Working With A Probate Attorney to Grow Your Real Estate Business, With John Erik Fraker, JD

 

Preview for podcast segment on lease option for wholesaling probate

Lease Options for Wholesaling Probate Property (21:17)

Patrick wants to get started with Probate Leads.  Is Lease Options/Lease With Option To Purchase a viable strategy to start wholesaling probate properties? Yes. Chad describes his 95% close rate with lease options and probates. He describes a situation with a VA Loan to make his case.

See More:

Joe McCall - How to get 95% of your lease option tenant-buyers financed with Chad Corbett 

Shift Happens Session 4: 7 Different Creative Financing Strategies 

 

Preview text for podcast segment on wraps, sub2, liens, equity, and annuities

Wraps, Sub2, Liens, Annuities, Liquidity and Equity! How to Help Homeowners with Financial Urgency Now (25:15)

Ellie and Patrick describe a deal they’re trying to work out.  The seller is an senior who has a cash urgency.  Chad helps Ellie and Patrick do some deal analysis on the spot and gives them a brokerage and investment option for helping the seller get the most out of her equity in the fastest time.

 

Preview for podcast segment on how to Finance home repairs and remodels without cash or credit

 

How to Pay For Repairs and Improvements When A Seller is Tight on Cash (28:08)

Caller is looking for advice on how to help sellers fund and finance repairs when they don’t have the cashflow themselves.  Chad offers different strategies for accomplishing this without having to risk your own capital.

See More:

Offering Sellers Vertically-Integrated Solutions Without Putting Your Own Capital On The Line

5 Ways To Access Equity for Improvements When Traditional Financing Isn’t an Option

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

 

Preview for podcast segment on how to Buy abandoned house next door in probate with late mortgage

 

I Want to Buy The House Next Door.  The Kids Are Done Dealing With it. How Can We Transfer Title? (37:58)

Ryan’s neighbor passed away and Ryan is interested in buying the house himself.  The kids were living there for a while, but they got tired of dealing with it and left  The house is about $8000 late on mortgage payments.  There is only one mortgage. Ryan knows how to contact the kids.  What does he need to do to make sure title can be transferred, and how can he motivate the kids to get out of Probate Quicksand?

 

Preview for podcast segment on Cold Calling Tips for Virtual Wholesalers

 

Building Rapport With A Seller That Has A Bad Impression Of Real Estate Investors (40:55)

Dave is interested in an ancillary probate property that he wants to wholesale virtually.  The property and the surviving spouse are in Brevard County, Florida. The seller is wary of cash offer prices and wants to meet Dave in person.  Dave lives in another state and is wholesaling virtually.  How should he proceed? Chad offers two solid strategies for leveraging a contractor partner and/or earnest money deposits in this situation.  If those don’t work, Chad offers a trick for getting the neighbors to help nudge the seller.

 

Preview for podcast segment on Landline phone use 2020 covid impact cold calls and telesales

 

Are People Finally Getting Rid of Landline Phones? Adjusting Your Marketing for COVID-19 Impact (44:58)

Stefan is in Northern California and is running into a good amount of disconnected lines while making calls.  In particular, the first and sometimes second column of numbers is seeing this happen more often.  Are court delays and economic impacts from COVID-19 impacting prospecting?  In other words, are people making different financial decisions, such as shutting off a landline to save on monthly expenses?  As the nature of telesales changes, how should you adjust your overall marketing strategy? Chad and Stefan discuss.

 

 

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Episode Transcript

Probate Mastermind Real Estate Podcast - Episode #299 Transcript

A.I. Narration: [00:00:00] Welcome to the Probate Mastermind Podcast!

These episodes are recorded live once a week and are hosted by the All The Leads.com coaches.     Agents, Investors, and Wholesalers join the coaches 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.  "

A.I. Narration: [00:00:25] Be sure to catch show notes at All The Leads.com slash Podcast, and join our free Facebook Mastermind Community, " All The Leads Mastermind."

Jim Sullivan: [00:00:34]

Welcome prosperous agents and investors nationwide . We do have five people in the queue. So let's go right to our first, our first person up this week is five, four, six four you're up.

Advanced Investment Strategy: Infinite Banking, Life Insurance, and Medicaid Properties.Eddie V: [00:00:47] Hey, what's going on. It's Eddie, Kansas city. I'm doing probate mastery and, I was on the phone call yesterday, but for some reason, Chad couldn't see me. And I had asked the question about, somebody who's losing their house, in a property that was transfer on death to Medicare, contract for deed on the property. So they have somebody living in the house and the attorney for Medicare told the purchaser, the contract for deed, that they should stop paying the person that inherited the house and not to do anything. So anyway, they had hired an attorney who spoke with the attorney for Medicare and basically said, Hey, we can't do anything.

Chad, in the Mastermind or in Probate Mastery said without more details, you can't really give anything.

Chad Corbett: [00:01:32] I'd I think I understand now.  So what it sounds like to me is that you put, they've put a contract in place as a first position lien . Then this person went into longterm care, racked up a massive medical bill. And then the Medicaid lane subordinated that first position.

So if an attorney has already looked at it and already spoken with their counsel and says, there's nothing they can do, I would say that they probably should just cut their losses, live there as long as they can and move on. Medicaid is not really known to negotiate their liens, typically with medical liens, like with hospitals, you can oftentimes negotiate those for pennies on the dollar, but with Medicaid and IRS, it's pretty tough.

Now there are debt attorneys that. Specialize in negotiating with government entities. If they wanted to try something else, I think the only suggestion I have would be contact a really good, debt negotiation attorney, and have them go after Medicaid to see if they can settle it.

Do you know how much the Medicaid lien is for?

Eddie V: [00:02:27] The Medicaid lien is for $120,000. Okay. And the property you in that house is about 120,000.

Chad Corbett: [00:02:35] They might negotiate it down to 60. Does the family, they probably don't have any other cash.

Eddie V: [00:02:39] I think they have cash and they were told that they could purchase the property for three fourths of what was owed.

Chad Corbett: [00:02:46] So since they transferred title, there's a rule. If you can find somebody, this is one of the more advanced things we might've touched on it yesterday:  You can pay Medicaid that three quarters of what they're due , and the person who steps up to do that can buy a life insurance policy where they are the beneficiary on the insured.

For example, if you, this is common with kids and parents, like savvy families will do this. If you move the property over into the kid's name or into trust, whatever it is, you transfer title out of the parent's name - that starts a five year window. If they have to go into longterm care and Medicaid as to pick up the tab, you can pay three quarters of the property value.

The market value at the time of transfer and Medicaid will release all claims and pay a hundred percent of the medical costs. Now, what you can do to recover that capital is you actually buy a life insurance on your parents and it's, the insured, you are the beneficiary for whatever the face amount that you had to pay Medicaid.

So whenever they do pass away, you get your full principal return. And if you want, you can buy a bigger policy and you can actually make money. Sounds dark, but it's just an estate, an advanced estate planning tactic; one that I've used in my own family because it allows you to move assets around and if your parents didn't plan for longterm care and they simply can't afford that, but they're likely to need it, it's something you can do after the fact, because you didn't start early enough in their life. So that's, if you can find somebody that has the $120,000 to step up and then whoever the mortgagor is if that's the kids or the surviving spouse, they could buy a whole life policy on that person.

And eventually they would be reimbursed. Now whether the numbers work for them, for the people you have involved or not, that will work if you have the right people.

Eddie V: [00:04:34] Okay.

Chad Corbett: [00:04:35] Does that make sense?

Eddie V: [00:04:36] Yeah, it does make sense.

Chad Corbett: [00:04:37] So somebody writes Medicaid a check. It could even be a third party investor. But somebody writes Medicaid check to get them out of the picture. The first stays in position. The contract for deed goes on, the buyer is protected. And then whoever wrote that check buys a life insurance policy on the mortgagor whoever now holds title to that property.

And when they pass away, then they get paid back the death benefit.

Eddie V: [00:04:59] Got it. Okay. That makes more sense. I didn't know who the life insurance policy was going to be put on.

Chad Corbett: [00:05:04] I don't either. And that's, it's, whoever's on title that wrote the contract for deed and holds that first lien position is who you should have the insurance on it.

If that person is 25 years old, it's probably not gonna make sense to pay premiums for 40 years for an investor. If that person is 70 years old, it may make a whole lot of sense to do this deal this way. And you can, everybody can win. Medicaid gets, they settle for what they're willing to take your investor gets, it, they would, it would be a long position, but for example, if that was a 70 year old and they bought a whole life policy and, statistically there might be eight to nine years on that investment.

just demographically. Then they could buy it where it's, let's say they pay 120,000, but they buy an insurance policy for two 50. Now they have to pay the premiums during that person's lifetime, but they could get a massive return on investment if they do that. And there's actually, it's an advanced development, finance strategy.

I've seen $150 million developments built on these type of agreements where you buy life insurance. You're the beneficiary. You give them a cash advance, then you cross collateralize your position to get development financing. So there's a whole world behind the curtain of things like this.

It's legit, it's above board. It's just not talked about that often.

Eddie V: [00:06:16] Okay. Sounds like I just need to get more details from them to what they want to do.

Chad Corbett: [00:06:21] Yeah. And I don't, what state are you in?

Eddie V: [00:06:24] Missouri. This property is in Kansas.

Chad Corbett: [00:06:26] There is a company in West Virginia, that just does what we're talking about.

They walk families through it and help you get the proper insurances and make sure everything's structured correctly. Like there are professional service companies that do just this to help families out of this position. So you can probably find if there's one in West Virginia, that's probably one everywhere.  If you talk to some insurance friends, or some savier finance guys, or potentially some estate planning attorneys, they should know what I'm talking about.

Eddie V: [00:06:53] Okay. I'll give an estate planning attorney call and see what he can tell me about it.

Chad Corbett: [00:06:58] Okay.

Jim Sullivan: [00:06:58] Alright, good luck! Get back to us and let us know how it turns out, please. Next up is phone number ending in six, two, four eight. What Is The 1% Rule In Real Estate Investing?

Joyce: [00:07:06] Good morning! It's Joyce Arnston Morris in Orange County, California. I want to tell you that mastery is wonderful, but I do have a. Two short questions. Chad, you talked about the 1% rule yesterday and I don't.

find anything in my notes about 1% rule.

Chad Corbett: [00:07:23] So it's the way a lot of investors will value rental real estate. As it just a quick measure, I would point you to Bigger Pockets, and put in 1% rule; it's going to bring up podcast, blog posts and forum conversations.

And that'll be way clearer than me trying to explain it. It's a simple, quick valuation metric. Intra-Family Transfer and Quit Claim Transfer

Joyce: [00:07:40] Oh great. And can you tell me which family members can be in an intra family transfer?  I think it's,

Chad Corbett: [00:07:48] I really don't know what the limitation of that is. Obviously immediate family is, it's a quit claim is the same as an intra-family transfer.

So even if it's not booked as an intra family transfer. It can be booked as a quit claim transfer. So if I were to give them my property to a trust, I would quit claim that out and there wouldn't be transfer tax and my state, and I know like Pennsylvania would charge a transfer tax, but most States don't.

So either way, intra-family, I think is reserved fo immediate family. I may be wrong on that. It may go to extended family, but either way, they get the same result with the $0 transfer.

Joyce: [00:08:24] Perfect. Thank you so much. See you at 12.

Chad Corbett: [00:08:27] Alright. See ya.Helping Real Estate Clients With Medicare Paperwork

Danny: [00:08:28] Hey guys, So I ran across someone and I asked him a question, okay, what's been the most stressful thing for you. And he told me that the biggest thing for him is he needs help with the Medicare paperwork.

It was new for me. So I wanted to come on here and ask you guys a quick question about like how I could, provide some value and get back to him on like how he can, Basically get that solved that I don't know how to

Chad Corbett: [00:08:51] so this is Danny. Have you been through mastery?

Danny: [00:08:53] Yeah.

Chad Corbett: [00:08:53] Yeah, you can go back and listen to the recording, but that's where social workers can come into play and be very valuable as a team member.

There's also an emerging field called care managers and those people can help with that as well. So I would start with just Google social services, your city. And have a conversation with one of the social workers and say, here's, we need someone to help this family with Medicaid paperwork.

Is that something you guys do in your office or can you connect me with care managers? And they'll be able to tell you who in town is the best to serve their need.

Danny: [00:09:24] Awesome. Okay. Perfect. All right. I just wrote that down. All right. And now give echo shy on that too. I think we do have someone possibly that can do that.

Okay, then that was pretty much the only question I had. It was just something new that I ran into the first time.

Chad Corbett: [00:09:37] Yeah. Like I said in mastery, it's one of those team members you won't know you need until you need it. And you won't realize how valuable it is until you've used it the first time.

And I've helped many elderly people get, basically save them financially, help them from becoming homeless. Your social worker will make a massive difference in the impact you have eventually. So for everybody listening, if you haven't considered that as a team member, you might not need them today, but it won't hurt to go ahead and make that connection because typically when you need them, it's an urgent situation.

So it's good to have already established that relationship and understand kind of the scope of what they can do as a member of your team.

Danny: [00:10:13] Perfect. Alright, thank you. Appreciate it.

Jim Sullivan: [00:10:15] Alright, thank you. Next up is phone number ending in eight two one three. You're up next.  Creating a Two-Way Referral Relationship with Real Estate Attorneys

Fed: [00:10:22] Hey guys. It's Fed. Good morning. so I wanted to, I want to make sure I reach out to attorneys.

And I'm having a little bit of a challenge. I listened to the interview that Chad did with, I forgot his name. He was an attorney from, San Francisco who also a realtor. So usually when you call, you usually get the gatekeeper, so secretary or front desk, and some I'm trying to figure out what the best way to  jump that hurdle is since I've called numerous ones asking to you speak to the attorney. And for example, one way I tried is I try to look up the docket number on the leads and, I said, hi, I'm trying to speak to, for example, Mr. Corbett, and then they say, what is this regarding? So it's regarding docket, blah, blah, blah.

and I never got a call back. Or I haven't got a call back yet. So I'm just trying to figure out A: What you guys suggest as to how to get through to the attorney. And B: Perhaps what the conversation is. Cause obviously my, from my understanding doing a mastery and other calls is that obviously we want to make sure that we provide them value and an, and let them understand that we're not calling them just to obtain a listing, but instead to work together and generate a referral back and forth, referral to one another,

Chad Corbett: [00:11:43] You're not in Mastery this month, are you Fed?

Fed: [00:11:45] No, I'm not, I actually, I've been wanting to come back in a, I'm probably going to sign up back, but, I'm going to do it again. This coming month.

Chad Corbett: [00:11:53] So I unpack this pretty lengthy yesterday, there's two main value approaches that I suggest, and both have worked for different personality types and Metro markets, rural markets.

You can decide which one's right for you. The first is find a way to bring them qualified referrals. you got to first understand an attorney is a struggling small business owner just like you are, just like every small business owner is. They're unemployed every morning. But unlike us, they have anti-solicitation laws that they have to deal with as part of their code of ethics.

So it's harder for them to gain business than it is for us, because we can do these things. we come here and talk about direct mail and hammering the phones and they're not allowed to do that. So they rely on referrals and that's why a lot of estate planning attorneys do probate because it fills in the, the it's just another stream of revenue.

They would prefer to do estate planning business because in a couple of weeks they can make a couple of thousand bucks versus making a of few thousand bucks over nine to 12 months.

Fed: [00:12:49] Yeah.

Chad Corbett: [00:12:50] Think about it from an business owner to business owner perspective. What value can you provide to them as a business owner, quit thinking about referrals for yourself, and you want to open the door with something of value to help them grow and scale their business and make their life easier.

One of the best ways to do that is to give them qualified referrals. So the people in your family, the people in your neighborhood, the people in your mastermind groups, your past clients, anyone that you ever worked with in the future: If they don't have a living trust, if they have over a hundred thousand dollars in net worth, they probably should.

Because probate costs three to 8% of the gross estate value. A trust for most families is 1500 bucks, 2000 bucks. So it's considerable savings. The hard part is getting those people to think about much less plan for their own demise. So if you can do a sphere of influence campaign, a past client campaign and say, guys, listen, 2020 has given me an opportunity to really take a step back and realize I'm not providing the highest level of service that I could have been all along.

So I've added the team member. We now have estate planning attorneys on staff, and I'd like to offer you free hour consultation with one of our attorneys. please let me know, book yourself into this calendar and put a Calendly link in the email. And let them book directly in just don't put your phone number in there.

Don't tell them who they're going to be meeting with. That's a good way to gather preset appointments. When you walk into an attorney's office, or I would prefer if you would walk in, but if you have to call because the COVID environment, I understand, but if you call it and say, listen, I'm trying to reach John DOE what's this regarding? Actually I have, I have uh, threw myself into the fire. I've got five clients that need an estate plan, and we helped a lot of families and probate. And we see your firm name and especially John Doe's name. And it just seems like you guys are really active and a firm I could trust. Could you put me through so I could see if we're a good fit?

And if they don't they're damn fools. So you're giving him pre-qual, like pre-vetted ready to go a state planning referrals, and he will, no one's ever done that for that attorney and everyone else is like:I'm an investor, I'll have cash. I close quickly. I'm a realtor, look at my listing presentation.

Isn't this flyer nice? And everybody's me, And it pisses the attorneys off. Talk to them. They'll tell you, listen, dude, I don't open that damn mail. No one's allowed my receptionist will be fired if she lets realtors come through the line and it's because they're saying the wrong thing, she won't really be fired if she lets you through.

She'll be commended for letting you through because you just brought $10,000 in revenue to the business with five referrals. So that's approach number one. And that one takes a little bit more, a little more work and you have to have kind of a sphere of influence built the other approach.

It is an exercise that I use for two purposes. One to build your local probate knowledge, the other, to impress the hell out of an attorney and start a good relationship organically. As I said, they have anti-solicitation laws, so they can't direct mail people on a probate list. We know that about 20% of probate at the petition, when it's recorded, they're pro se meaning they're representing themselves.

And there's a lot of the misconception that every probate has to have an attorney. That's simply not true. The state of Texas is contentious in debating that, but it's just not true. So that 20% of people take that they think they're getting off easy and not on saving money. Most of them will end up hiring counsel to clean up the damn mess they made before the probate's over.

So it ultimately cost them more and takes more time. So it's in their best interest to have legal representation for a. an overly complicated kind of bureaucratic process. We want to get them attorneys. We want to also use that as an opportunity for us to get to know the attorneys so we can approach the attorney and say, listen, we have a team of people here locally that help families going through probate.

As part of that, we meet with the clerk every month to make sure we know which families we should be reaching out to. One thing I keep noticing is like 20% of them aren't have no legal representation. And you, and I both know that's a bad idea, right? So also I've come to learn that you're not allowed to directly solicit these people.

So I'd like to propose that we collaborate and let me pay for your marketing and let's get these people to the counsel they need. So if you can sit down with me for 30 minutes and design a checklist or timeline, we'll color everything legal in red. Everything my team does in black and your firm name, a website, email address, phone number, whatever you want.

will now be included in every mail piece I send. So have you got an hour? Have you got an hour? We can sit down and do this. And they make the time they will go to the conference room. And just like if you can trust me on this and just do this, I've yet to have a single person fail at either of these techniques.

And what does, what usually happens is they immediately get divorce referrals. And then shortly after they start getting probate referrals in a month or two, but don't be surprised if you start, if you become a divorce specialist, because you're doing these two things. Almost everyone who does it well ends up getting divorce referrals within a month.

 

Fed: [00:17:39] I'm a hundred percent in! Chad, question hovering above the first suggestion, how you were saying go to go through your sphere and just see who has a net worth, over a hundred and, advise them to get a trust. How do you pitch that to your sphere? Does that know your story or

Chad Corbett: [00:17:56] Tell your story.

So my name's fed this year has really taught me a lot. One of the things it's taught me, I've helped many families going through probate and I've seen how expensive and stressful it is. What I've come to learn is a living trust is about a fifth of the cost of probate.

And in the toughest time your family will ever go through, the court is not telling you what to do. Your family's wishes will be carried out by a trustee. that was told what to do in a controlled environment by everyone. So there won't be any infighting. There won't be any government intervention. There won't be any excessive expense. because I now understand this, I have set up and established my own estate plan, even at 30 years old.

My next step is to make sure everyone that I have the privilege of working with has the same opportunity that I did. So I've retained the local legal counsel to give one hour consultation that won't come at a cost to you. It's something my business will provide. And all you have to do is click here to get scheduled.

And then the calendar, please give us at least 48 hours notice. You change your Calendly setting, where they can't book within 48 hours. They can only book 48 hours out and beyond. That gives you two days to be the clearing house and get those out. And you might give one to each attorney. You might give five to, you might give one to 10 attorneys or five, two to five attorneys.

You'll just have to see what comes back. But if you have a sizeable database and the other thing that I would recommend, you have a blog, you have a WordPress site?

Fed: [00:19:19] I do not know. Okay.

Chad Corbett: [00:19:21] You have social media for your business? Like you have pages.

Fed: [00:19:24] Yes, sir. Yes, sir. Yes, sir.

Chad Corbett: [00:19:26] I would recommend you write the copy as I just suggested, but you also do a video, same exact thing.

Give them more than one way to consume it. Some are going to see it on Facebook and watch the video. Some will see it on your YouTube channel. Some will click the email and they won't click the video to see it, but they'll read the copy. Just do it in multiple formats so you can gather as much interest as you can.

Once you've done that. The next step, if you really, if you want to take this to the next level is take the five that actually followed, took your, took you up on the opportunity, established a proper estate plan and had a good experience, and then start doing interviews with them for future content. And if you don't have a blog, it's okay.

You can put that on YouTube. You can put that on Facebook as a native video upload, Instagram, wherever, but start getting that word out. Look what this guy does for his past client. It's not going to hurt you and your conventional business. It's sure as hell going to help you in your probate business.

Fed: [00:20:19] Absolutely. Thank you. I really appreciate that. I'll start that today.

Jim Sullivan: [00:20:22] Awesome. And Chad it reminds me, yeah, whether it's a personal story or one that one of your clients experience, it reminds me of the roleplay yesterday where the roleplay, I think the Danny did, where ran into a guy where he had taken care of his mom for the last 10 years of her life.

And she wrote out a handwritten will left it with him. It wasn't notarized or witnessed. So now the court was getting involved in telling him that he had to sell the house and split it up with the sisters that hadn't been there in 20 years. Anyway, it was a difficult story where it was not only going to cost the family a lot of extra money to do it that way.

But his mom's last wishes weren't being respected. So as your prospect, you're going to come across stories of that all the time with people that didn't do it the right way. Maybe didn't even file the probate the correct way and use those stories and, the consequences to other people and, and how it affected them as you go through, both the attorneys and the executors.

Fed: [00:21:15] Thank you. Thank you so much. Lease Options for Wholesaling Probate Property

Jim Sullivan: [00:21:17] All right. Well, we only have two in the queue guys. Come on that we need our win of the week, hit star six and hit one. In the meantime, we'll go to our next caller, which is anonymous. You're up next.

Patrick: [00:21:28] Hey, good afternoon guys. Quick question. Good afternoon.

Jim Sullivan: [00:21:32] Is that your real name? Anonymous. Okay. it could be, I'll tell you, but then. Okay, go ahead.

Patrick: [00:21:37] This is Patrick.

Jim Sullivan: [00:21:38] Hey Patrick,

Patrick: [00:21:38] We spoke this morning about doing some of the probate, but also, or wholesaling it, and some of the, advertising to get lease purchase options from the other side. Have you figured a way how to get that done or is it possible.

Chad Corbett: [00:21:51] Yeah. My first probate deal was a lease with option to purchase. What you need to be aware of is how title transfers. So  if real estate was titled and for spouses or partners, If real estate is titled as tenants in the entirety with rights of survivorship, then oftentimes it's essentially a transfer on death clause.

Sometimes that'll re require a spousal property petition, but it'll go from John. John does Jane DOE to just Jane DOE. And at that point, Jane DOE can sign a lease with option to purchase. and that's the very first one I ever did was a surviving spouse. I ended up mailing her off of a high equity list.

It was before I was even. It was my second probate, I think. But, it came together beautifully. I was able to meet him. It really works like in her situation. I tell this story in the beginning of mastery, cause it's probably one of the more complex deals I've ever done. And it was a first "aha!" moment. But they needed as much money as possible and they needed it as quickly as possible.

So we ended up doing it as a lease with option to purchase, even though it was a free and clear asset because we were able to sell at a premium price, take a 4% option fee upfront and a market rent until we got it closed with no rent credits. We credited back to 4% in closing. And I have a 95% close rate on lease options.

If you want it. The only place I've really talked about my system publicly, if you go on YouTube and look up Joe McCall, Chad Corbett, Joe McCall was on the guys that inspired me way back in 2011. When I first got into residential. And, it was an hour or two podcast where I just paid back by showing him, what I did.

So you can check out that and Katt can link that in the show notes, but you can absolutely do these. and back in March on our YouTube channel, there's a playlist called shift happens, and episode four will actually walk you through seven, seven distinct, creative financing strategies that will work on these deals.

And I show so it's lease wrap. So to a contract for deed land contract. There are seven different strategies that I've used on probate leads. That's about two hours long. It's not, it goes wide, but not real deep, but, start there and then look at that and that'll help you get a better understanding of when you can use which strategy of creative financing and probate , episode four of shift happens.

Patrick: [00:24:07] Now, how did you, if they're doing Elisa, how'd you get the money to them quickly,

Chad Corbett: [00:24:11] So I take a 4% option fee on the front first month's rent and last month's rent. So on that deal, we were able to get a 10,200 bucks on the day of signing.

And that was enough money to get her mother out of the hospital and into a rehab. and then, she made $1,100 a month until the buyer's closed, which only took us, I think, six or eight months on that it was a pair of retired Navy, but forgotten to pay utility bill. So they had a 90 day late on their credit.

We just had to clear that and we closed. And so we sold for full price, no commission, no. it was no contingencies and we actually did it just to show you how possible this is. It was with a VA loan and we did the VA appraisal before move in. I documented the source of funds on the front end.

I documented the VA appraisal and put that in the lenders database. And I had my fingers crossed terrified when they exercise their option and the VA underwriter took it. So we proactively did things. that's, just showing you that today demonstrate even one with a government entity that we were able to get this closed.

So it was a probate, it was a lease option. It was done with VA financing. Wraps, Sub2, Liens, Annuitys, Liquity and Equity! How to Help Homeowners with Financial Urgency Now

Ellie: [00:25:15] Okay, great. Hi Chad, it's me, Ellie. Here's the deal? Okay. I have a property that a senior needs to sell. She really needs to get out of there, but the property in order to be I'm being telling Patrick, basically to go with the flow and try to do the lease with option to purchase.

I have multiple people during this time that don't have the best credit. And it's kind of the opportunity to jump into it. Maybe I'm wrong on that part, but the thing

Chad Corbett: [00:25:45] Let me ask you how much equity is in that. Is there equity in the home? The property.

Ellie: [00:25:49] Yes.

Chad Corbett: [00:25:50] Okay. Is there, are there any debt?

Ellie: [00:25:52] How much does she owe?

Patrick: [00:25:54] 40% equity,

Ellie: [00:25:55] 40% equity on the property.

Chad Corbett: [00:25:57] Okay. So you have a first mortgage at a 60 LTV?

Ellie: [00:26:00] Yes.

Chad Corbett: [00:26:01] Okay. And what's her urgency. Is it? She needs cash now, or she needs relief from the debt.

Patrick: [00:26:06] Pretty much cash now and to a little bit now.

Ellie: [00:26:09] And she needs to have some kind of income for her to have the rest of her life.

This property next update built in the nineties.

Chad Corbett: [00:26:17] You could do this as you could do it as a broker and sell the home as a wrap where they take title subject to the first lien remaining in place. The seller takes a second lien for the other 40% and you get her immediate debt relief and you basically turn the house into an annuity.

It's almost like a reverse mortgage, but in her favor,

So you're going to, you're going to minimize the tax consequences. You'll give her a consistent monthly payment. If she doesn't need a lump sum of cash right now, if she would rather have more money over more time than less money upfront, then that structure would work if she needs a lump sum right now, you guys can take it sub two.

Then you could sell it on a wrap as an investor and take a heavy down payment from one of your poor credit buyers. Give that, pass that heavy down payment through to them, or use that to replace your principal that you gave her. Either way, the wrap will work. It's just one way. You don't have to come up with a lump sum the other way you do.

And one way you're acting in brokerage. The other way, you're acting as an investor.

Ellie: [00:27:19] You understand?

Patrick: [00:27:20] Okay. All right.

Ellie: [00:27:21] Thanks you guys.

Jim Sullivan: [00:27:23] Alright. You're very welcome. We only have two more in the queue guys. We're still looking for our win of the week. Yes.

Chad Corbett: [00:27:29] Who, who set this up as a 500 level class today?

What's going on?

Jim Sullivan: [00:27:33] No, we haven't had, we haven't had a simple, it's funny the call yesterday after you hung up, somebody from West Virginia said. What's wholesale. What's probate. The most basic question we ever had, these are really in depth, the complicated questions today. Hey, we're here for whatever you guys need help with.

And there's over a hundred of you on the call. We're still looking for our win and we only have two more in the queue guys. So we got plenty of time left, hit star six and hit one in the meantime, next up is phone number ending in one, four, four, seven. You're up next.

How to Pay For Repairs and Improvements When A Seller is Tight on Cash Are you there are Youngstown, Ohio.

Caller: [00:28:11] I'm sorry I had you on mute. That's okay, go ahead. Yesterday regarding one of the role plays that was done, it was really good. It dealt with,  two brothers. they worked in a restaurant and servers. They needed to sell the property when one brother wanted to live in it.

The other one wanted to sell it. Do you recall that one? Yes. Okay. All right. My question is apparently they didn't have. Cash available. and the house, if they were to sell it, there were some things that needed to be done on roof and miscellaneous other things, titles. I think my question is if the descendants have ready and available funds, How do they get the repairs done or you're supposed to be the people that, take the ball and run with it and show them how to get things done.

But where does the money come from? L

Chad Corbett: [00:29:10] Lots of different ways. Katt, remember to link this in the show notes. There's a tip from the trainer posted. I did a couple well years ago. That's five ways to basically fund improvements, I think is what it was. so I'll spare you that you can watch that.

After this, if you go to all the leads.com and search five ways to creatively finance repairs, I think might've been the name of it. Post. You can use a contractor by turning them into a lender. So typically a contractor is going to be cost plus 15 cost plus 20. You can allow them to add a premium to their invoice, 10%, usually reasonable and standard so they could make cost plus 25 on this job, they would carry the invoice through to.  The closing. They have three layers of protection. They submit an invoice to escrow. They submit an invoice to the court and they're authorized to record a mechanics lien against the asset. So there's three different ways. I can three different layers of security for them as a lender.

And you give them a premium. That's why I tell you to find contractors who are running a business, not working a crappy job. These are the guys that have cash reserves, very professional business. They typically have strong cash reserves. They're oftentimes they're flipping houses, holding their own rentals, these kinds of things.

You can even do things with local real estate investors, pawn shop owners. The we buy gold guys. We buy junk cars. We buy mobile homes depending on what ground work at your end. These guys, these are all they're they're high yield debt investors. So most people don't think outside of the box, I think, Oh, a pawn shop guy.

He's he's not, he's just a savvy small business owner and he's providing a service that's needed in that community. So they typically are flushed with cash. They're looking to make short term high risk loans. This is the safest. if someone's going to advance a thousand bucks on a Ford Mustang, what is it like with, at an appreciating asset?

And you give them an opportunity to make 10% on their money, on an appreciating asset where if you screw up or someone screws up, they double their money. That is a, one of the best deals ever. So you can look at other investors and cash, rich people in your market and your sphere of influence, the easy button way.

Is you simply go to an estate advanced company, the preferred partner that after two years of vetting these companies, we finally found one we're comfortable with and it's probate cash. So probate cash compound, no space. And if you go to all the leads.com again, the top, right where you can, if you're listening to this after the fact, you can see it in the show notes.

Okay. just search probate cash and it'll bring up a, an ask the expert series that I did with the two founders of that company back in, I don't know, July, I think. so that's three there's five on that video, but those three ways, the other ways are you can get a HELOC. You could also do a reverse mortgage. If it's a surviving spouse situation, those two would work. You can use more conventional methods, but. there are a lot of different ways you can do it. I would suggest watch that blog post to watch the probate cash thing. And, you'll have more than one arrow in your quiver whenever you encounter this.

Caller: [00:32:11] Wonderful. Thank you.

Chad Corbett: [00:32:13] The one that I didn't, the other one is you turn yourself into a JV partner. So if you see that this house needs 50,000 work and it could sell for 150,000 more, you have an opportunity. And I would say you have an obligation if you ha, if you are an investor and you know how to do fix and flip, you can step up, establish a basis value for the assets today. Form a fresh LLC, a joint venture, a limited partnership, or a land trust and address the basis value and the control of sale. In that instrument, whatever your attorney's comfortable with, you go bring your contractors in. You pay for the construction and you get a higher listing commission on the way out, which is above the net.

And then whatever's left after you're paid your commission. Whatever that net is, you guys split 50 50, so you can create another, an additional $50,000 in equity for the family and an additional $50,000 in revenue for your company. It's called flipping a free house.

 

Bruce: [00:33:12] I'm going to throw in there, Chad and mention another way for the agents or investors.

it's specifically probably for the agents who don't have the cash to do what you just mentioned. Most of us have clients. that are sitting on cash and they want to be in the real estate space, but they don't have enough to drop into a flip or maybe they're just there, they're waiting.

And for example, I have three or four people that, will fund up to 20,000 in repairs under the same terms that you just mentioned, Chad, I'll take a higher commission. That's my fee for quarterbacking, the repairs, the upgrade. and then they'll take 50% of the, the gain.

So there are lots of ways to do this. Even if you don't have the money or don't have the pawn shop relationships. We have clients all over the place that have a little bit of extra money and want to be involved in real estate investment in one degree or to one level or another.

Caller: [00:34:06] Okay I wasn't

Jim Sullivan: [00:34:08] Awesome. I feel compelled to mention something, Chad, you said this is a 500 level call. If there's anybody on this call that is brand new and has just decided that this is all way too complicated. There's a good chance you'll go your whole career and never use any techniques we've talked about. The beauty of taking mastery is you can make a deal almost any situation, but the vast majority of probate, 90, 95% of them are just motivated absentee owners. They want to cash out. So don't, if you don't understand anything we've said so far, don't be intimidated.

These are very, the advanced techniques that we're talking about today. Good to happen in your quiver. You understand that,

Caller: [00:34:44] Okay, good. No idea. And I hadn't, I wasn't thinking outside the box.

Bruce: [00:34:49] Yeah. Perfect. I'm to, I'm going to throw in one more time. Cause what started this part of the conversation was the role play yesterday, where we went, where we were taking Danny down a pain funnel.

And if you guys didn't listen to the roleplay, go listen to it from yesterday. that particular example. Was a good opportunity to not only find a way to fund repairs for, for a client for a personal representative, but it was also a great opportunity. if you're an investor to go down the pain funnel, dig into the pain, dig into the need.

And make an offer. it was clear on that role play call that, that Danny was not going to be able to, fund some of these repairs himself. So if you don't have the relationships that you have the means to be the investor, Except asking better questions and accentuating that pain, just position the PR to be in a position it'd be in a place mentally where they're ready to actually let the property go as an investment.

Caller: [00:35:49] Okay, great.

Jim Sullivan: [00:35:50] Perfect. We have two more in the queue that should take us nicely up to the top of the hour. Next up is phone number ending in seven seven, seven, seven. You're up next.

Angelique: [00:36:00] Hey, my

Jim Sullivan: [00:36:00] name is

Angelique: [00:36:01] Angelique. I'm

Jim Sullivan: [00:36:01] in Tampa,

Angelique: [00:36:02] Florida. It's my first time actually on the call. And, you are talking about, actually a gentleman was talking about approaching attorneys and you gave  him a nice spiel, but I wasn't able to write anything down because I was in the car.

Is there a way as the, you're able to share that the, the, the information email or anything.

Chad Corbett: [00:36:24] So these are always recorded and archived. So you can find this as soon as tomorrow on our Facebook page, on our website, alltheleads.com or on your favorite podcast platform. Oh, on Facebook.

Where's it at?  it's an, all the leads mastermind has our private Facebook community. We have a, we syndicate to almost every major podcast platform and you can always go to all the leads.com and, in the menu at the top, you'll see the complete system and you'll see role play and mastermind archive, and their every single call we have close to 700 hours of these conversations archived there.

Okay. And you said all the leads.com and I'm looking at the website right now. where is it supposed to go even? I'm so sorry.

so if you go to yes, and YouTube is the other place I forgot to mention. so if you go to all the leads.com. You'll see in the top menu, you'll see ATL success systems and the third or fourth button down thing is this like second or third button down. You'll see mastermind and role play conference archive.

There's a podcast player at the top. The most recent call will be shown in the podcast player. Or you can go down and click into the year, the month and the specific call. Okay.

Remember the Facebook community, be sure to request, to join all the leads mastermind. There's about 11,000 of us in there. And then also on YouTube, be sure to look up all the leads. You'll be notified as soon as these calls are published.

Jim Sullivan: [00:37:54] Perfect. Next up is phone number ending in four seven zero one.I Want to Buy The House Next Door.  The Kids Are Done Dealing With it. How Can We Transfer Title?

You're up next.

Ryan: [00:37:59] Hello. Can you hear me okay?

Jim Sullivan: [00:38:01] Yes, sir.

Ryan: [00:38:01] Great. So my name is Ryan I'm from, Pennsylvania Philadelphia area. so I'm looking to buy this house that is next door. The original occupants owners, passed about a year or so ago. And at the time it is a year, their children walked away from the house.

So really just  I know how to get in touch with the kid.  there doesn't sound like they had a will when they passed, so I'm not sure what the next step is on how to approach them on, getting this house

Chad Corbett: [00:38:30] Well, it's very likely to have to transfer through probate.

Have you done the research on the home? Is it as, are there liens against it? Are there any mortgages?

Ryan: [00:38:40] Only one mortgage and it's several months behind. Okay. You know what the balance is? Is there equity in the home?

About 8,000

Chad Corbett: [00:38:49] The balance is 8,000 or the missed payments are 8,000.

Ryan: [00:38:53] The payments

Chad Corbett: [00:38:54] are 8,000 behind.

How much equity do you think is in the home?

Ryan: [00:38:58] Probably a good 70,000.

Chad Corbett: [00:38:59] Okay. So what you're going to have to do is make contact with the kids. If they haven't petitioned the court for probate, they need to, you might want to call and introduce yourself to the probate clerk and get familiar with the local process first.

Then when you make contact with the kids, yes. Speak confidently. And they will trust that you're going to guide it them through and connect them, get them phone number, email address, office address, and even directions to the office. Once inside the courthouse, go the extra mile before you pick up the phone and talk to the kids and I've had to do this before.

A lot of families just, they just check out and they just walk away. And I've had to take people to the courthouse and help them petition for probate so I could help them. Because that's the first step in the process. Someone has to have the authority to sign the purchase agreement. So one of the family members, or one of them, one of the family members have to step up or a fiduciary has to be appointed a public administrator.

And the first step in that is petitioning. Whoever's going to step up needs to petition the court for probate. Once that happens, you can make them, you can sign a letter of intent with them now to just to protect your position. But once they had the letters testamentary, then they can sign a purchase and sale agreement and you can see, I'm not sure in Pennsylvania, if you have to have court confirmation, you may be able to just go ahead and close.

You may have to submit that to the court for confirmation.

Ryan: [00:40:20] Okay. Her transferred title.

Chad Corbett: [00:40:23] unless the house, it sounds like they have enough equity. They're not going to qualify for the small estate exemption, so they will have to probate the estate. And that's the only way you're going to transfer a title. And I would say time is of the essence on this because the equity is just getting chipped away a day at a time, So that's why I'm suggesting you. Proactively basically hand it to them on a silver platter. Don't make a suggestion to bring a solution.

Ryan: [00:40:47] Okay.

Jim Sullivan: [00:40:48] All right. Get back to us. And if you need any help, offline, just reach out to us and get back to us. Let us know how it goes.

Ryan: [00:40:54] Alright, thank you.Building Rapport With A Seller That Has A Bad Impression Of Real Estate Investors

Jim Sullivan: [00:40:55] Alright, next up, Chad, do you have to leave for mastery? Are you good? No, Mastery's at three today. Okay, good. We have two more in the queue. Then next up is seven four, two eight.

Dave: [00:41:06] Oh, Hey guys. I was just calling real quick. I had a old lead I, that's where I'll leave. I decided to do a text message campaign on, just to see if I get some response.

I did get a couple and one in particular was very interesting. It's the reverse of what you typically think. she wanted nothing to do with talking on the phone. She wanted a text. And then went at it more as an investor

Jim Sullivan: [00:41:32] offering to buy, see

Dave: [00:41:34] if she would be considering we'd consider an offer on the property.

She said, sure. she kept pushing for a price. And so I threw something over, and I think, I just needed to get on a call with her or zoom or something. Her initial response actually was, a little bit suspect. I want to meet you in person.  and I said, I'm remote and zoom call. And she's no, if you're interested in sending an offer, go ahead.

And, so now it's stalled out. I gave her a number. She said, send me pictures of houses like mine you bought at that number. I guess I'm wanting to really understand before I put a whole lot more time into she's really looking to sell or she's just dragg ng me along. It's a little bit of a concern.

Chad Corbett: [00:42:18] Is this on Brevard County, Dave?

Dave: [00:42:20] It is. Yup.

Chad Corbett: [00:42:21] Do you have someone that can go by and meet with her? Let me ask a better question.

Dave: [00:42:25] Is she in

I haven't gotten there. Apparently. She must be if she's wanting to meet personally, she's got to go in her life, phone number and, yeah, I've never come across this one.

I'm assuming she is there because of that admission.

Chad Corbett: [00:42:41] You have a contractor on the ground?

Dave: [00:42:43] I do. Yeah.

Chad Corbett: [00:42:44] I think what I would do here to get her attention, because she's probably shopping you as my opinion. And I'm sure I'm telling you what, you already know. You don't have rapport and she's trying to hold you at arms length because she's afraid you're going to take advantage of her based on the experience she's had with somebody else.

Dave: [00:42:58] Sure.

Chad Corbett: [00:42:58] If you can get your contractor over there to meet with her or caretaker and he can do a video. And then I would overnight her, or at least send them a priority express envelope, a legitimate purchase and sale agreement with a fat earnest money deposit. Are you going to close on this one?

Dave: [00:43:14] Probably not. I got a couple of buyers straight there that are ready to go.

Chad Corbett: [00:43:19] Okay. A trick that I've used and situations like this pump the earnest money up because everyone else was offered a hundred bucks in earnest money or 10 bucks in earnest money. So if you can show her in good faith, you had a guy go over there, you looked at it.

You're not bullshitting her. you have had a partner put eyes on the house and give you a construction estimate and you can enclose that construction estimate so she can see that it's legit send her a purchase agreement. with everything, but the price filled in. and, put a post it, note on it and say, I've done my research to let you know I'm serious.

And then I, that I, and, she'll see an earnest money deposit, let's say 50,000 bucks, or maybe 20,000 bucks make it surprise her, but I wouldn't go over 20% in case a guy's using financing. you don't want to have to deal with that. So maybe 20% earnest money. And then just ship it off to her in an unconventional way, like a FedEx overnight, or a USP S express priority.

And you can just on the post it note, just say, I don't know how to finish this without talking to you. So please call me when you're ready to speak and put the ball in her court and show her that you're serious, that you're gonna, you're willing to step up and you have already, and you'll probably get a call back cause no one else is doing that.

I bet.

Dave: [00:44:31] Okay.

Chad Corbett: [00:44:32] The other thing that if you don't get a response and, in addition to that, the other thing you can do is have your contractor take a Manila envelope with him and seal it and tape it inside the front door where it can be seen from the street. Neighbors will be calling her saying, Hey, someone posted something on the house.

there's this yellow envelope. Should I go get it? Do you want me to get it? Do you have a key? And you'll get her attention that way too.

Dave: [00:44:54] Okay. Good stuff. Thank you. Yep.Are People Finally Getting Rid of Landline Phones? Adjusting Your Marketing for COVID-19 Impact

Jim Sullivan: [00:44:58] Last step is phone number ending in one seven five nine. You're up last.

 

Stefan: [00:45:03] Hi, I'm Stefan  out in Northern California. I'm just getting started on the weekly calls after sending out my letters. And the last, I did about 20 calls, yesterday. And, about 50% of the leads, the numbers have been disconnected and the email addresses are no good.

And I'm, since I'm just starting, I'm not sure. Is this normal or is it is a COVID because I noticed the death date on a lot of these leads is back in March or April, and I'm just getting the lead, now, That's quite a delay between the time of the passing. me getting it, getting the lead.

Chad Corbett: [00:45:38] Sure. We're at the mercy of the court on that. So there wasn't much we could do as far as the numbers, like that's an extremely high rate of disconnected numbers. Typically, we have 80 to 90% accuracy and connectability on our numbers. If you could email support and let us know which specific list you're talking about, what we'll take a look at it and see, if we can figure anything out about it, it may just be the nature of your area.

Jim Sullivan: [00:46:04] Chad, I was just going to ask, is it the second, third and fourth column of numbers? It's mostly disconnected or is it the first and second? Have you noticed?

Stefan: [00:46:12] Oh, I usually start at the top with the first number and then I work my way down and usually it is the first and second number. A lot of times that are disconnected. Okay. Yeah, so many people are, abandoning their landlines. So there could be part of it, I just connect to my landline in my house cause they never use it. I just use my cell phone.

But, that might be part of it. I don't know. But I was just wondering, cause I'm just getting started. So yeah. So I thought it might be unusual and it's probably partially due to the virus thing going on with the delays.

Chad Corbett: [00:46:41] I'm really curious if it's because of kind of the economic uncertainty and people trying to

preserve as much cash as possible. I wonder if a lot of people have started to shut down landlines. Cause it's just one expense they've been thinking about getting rid of, but this was finally the last straw and they said we can live without it.

Stefan: [00:46:59] Yeah, that could be part of it. Cause I know there's a lot of them, after you've been in sales for a number of years, you can start recognizing. A landline, They looked different than cell numbers. I thought one, I could send a letter to the people who I couldn't reach the phone and just say, Hey, listen, I tried to call you, but your line, your numbers disconnected.

Did you get my letter?

Chad Corbett: [00:47:18] Yeah. If you're not, you should be sending letters to all of them. If you're not doing that, you're definitely losing a lot of opportunity.

Jim Sullivan: [00:47:27] I've got to say also that there that makes the win. If the first and second are disconnected, it really makes that third, fourth and fifth phone number more valuable because probably most people aren't going to go the extra mile.

It might be a relative of the person you're trying to look for, but. I would call all the way through all the numbers and see maybe if you get better success with the, what, the ones that are related to them. And Chad said, yeah, do send them letters also.

Stefan: [00:47:52] So how often, would you say send the same letter again in a different letter? Switch frequency?

Chad Corbett: [00:47:59] Ideally it's, with direct mail and probate, it's more about being there when they're ready. Some will be ready immediately. Like the day as a day after filing, there'll be ready to sell. Others will take two to three years. And in your market you have long judicial backlogs right now.

I mean there's people waiting three and four months just to get to their next hearing. so they've been. Paying, paying for the property insurance and all the caring expenses and everything. So it's a lot of those older ones are even more motivated now. And a lot of the newer ones will become highly motivated after they sit around and do nothing for several months.

So all that said, if you have a budget to support it, you should be marketing for at least a year. if you really want to do well with this and extract every bit of opportunity, stretch it out the two years, we found a lot of success of the 24 months. You can get a pretty decent conversion rate.

So it's what your budget will support. But I would, as a absolute bare minimum is three months of letters. One letter per month for three months on each one, followed by a phone call. But ideally like our most successful subscribers, they're continuing to mail until they've spoken to everybody.

They're continuing to call until they've spoken to everybody. And there's no surprise. Those are the people that are in seven digits of revenue with this one single strategy and one single County. Huh. All right. good take. Yeah, I guess I'll probably, what do you think about, I don't know. I think maybe I should send a different letter every time I thought that I tracked pretty meticulously my first 12,000 pieces of mail.

I had six return to senders. I had about a 2% conversion rate and most, all the letters that are available to you. I was shuffling through doing sequences, Doing the same one over and over, and it really didn't change it wasn't, it was barely measurable the difference the content on the letter.

It was more about the time that it got there. It just went on when they're ready and they will call. And, there's a common theme between all of our letters. I'm not proposing that any old letter will work. I'm saying that the letters we've provide to you guys have, are backed by. Tens of thousands of dollars of button, budgets to prove they work.

So it doesn't, as long as you're choosing it from that, from our letter, poor mailbox motivated all of those work and they've all worked in various types of markets. So don't overthink it. And, it's I found ultimately after doing this for awhile, what worked for me best was to send the same letter three times on autopilot and never looked back.

And I was able to maintain 6% conversion rate over time, sending the same letter over and over because by the time a month passes and they've gotten letters from other people, they don't even recognize the redundancy, but. When they're in the right mindset and they get your letter and see the contrast of that to all the other ones, they don't even need to remember.

They've seen your letter before. They just need to know that you're different and they're going to call you first and probably only you.

Stefan: [00:51:01] Alright. Okay. thanks. I appreciate that.

Jim Sullivan: [00:51:04] All right, sir, we appreciate you. Anything else?

Stefan: [00:51:07] No, that's it. Thanks.

Jim Sullivan: [00:51:09] All right, guys, that you are the last caller of the day.

I want to thank each and every one of you for being here today. I want to particularly thank those who actively participated. 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 and share the results with the group.

Next Thursday, stay healthy, stay productive, and we will talk to you. Same time. Next Thursday. Take care, everybody.

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Preview for Probate Mastermind Real Estate Podcast Episode 298

Cold Call Tricks for Common Objections | Wholetaling vs Wholesaling and How COVID is Impacting Investment Strategy | PLUS 15 More Real Estate Q&As. Probate Mastermind Real Estate Podcast #298

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

Probate Mastermind Episode #298

Recorded Live on October 1st, 2020.  Join Us Live Every Thursday and check out previous episodes

 

In this episode of the Probate Mastermind Podcast, you'll learn new ways to handle cold call objections like "Court's delayed, call me back later!" and "I am not interested."   The coaches break down price options, estimating repair costs and ARVs, and how COVID's impact on the lumber market is affecting investment strategy.  Chad breaks down wholetailing vs. wholesaling.  Other topics covered include optimizing long-term marketing for old leads, partnering with an attorney for creative financing, using Letters of Intent in place of contracts, and real success stories, feedback, and insights from participants.

Shout out to MaryLee for her recent double-side PLUS referral transaction! Hear about it at 12:18. “I have really overcome my fear of making those telephone calls and feeling like I'm not being of service.  Now. I realize what a tremendous success it was and how helpful it was to everyone all around that I no longer feel intimidated that I'm bugging them or I don't have offer any value.”

 

These episodes are recorded as a live Question and Answer Mastermind with participation from agents and investors across the country, and can be found at AllTheLeads.com/Blog or in the “All The Leads Mastermind” Facebook Group. Thanks for tuning in, and don’t forget to subscribe for future episodes!

 

Get Probate Leads

Get Certified in Probate Real Estate

 

 

 

Handling Cold Call Objections: "Court's Delayed; Call Me Back Later!" (0:38)

Caller is getting the “Call Me Back” objection more than ever because of Coronavirus and court backlogs.  The seller is concerned they can’t do anything without their letters of testamentary or until probate is closed.  Chad shares tips for handling this common cold call objection.

See More: “Our Probate Attorney Said We Can’t Sell Until Probate is Closed!” Handling Objections – Mastermind Highlights

Real Estate Contracts vs. Letters of Intent (2:44)

Can you sign paperwork to purchase a house or list a house before a probate lead has their letters of testamentary?  Chad discusses the difference between enforceable real estate contracts and letters of intent.  Even though they’re not legally-binding, letters of intent are extremely powerful and using one has a lot of pros.  

Sales Psychology and Language: Future Pacing (3:37)

Bruce describes a sales technique called ‘Future Pacing,’ and how you can win a commitment by getting the your prospect to picture themselves in the future with their problems solved.  This effective technique will help you win commitment when responding to objections that deal with waiting, procrastinating, and uncertainty about where to start.  

Creative Financing 101: Learn The Different Strategies and When To Use Them (4:54)

Josh (Pennsylvania) has a SUPER motivated seller that’s dealing with a reverse mortgage.  The ARV value would cut out all the equity in the deal.  Jim and Chad breakdown going the Short Sale vs. Sub2 route.  Next, Josh asks how to present this. Chad details how to educate the seller on both options.


See More: Chad’s Book Recommendation - Chris Fontaine: Real Estate On Your Terms

Chad’s Webinar on 7 Different Creative Financing Strategies and the Pro’s and Con’s of Each.

Partnering With A Real Estate Attorney For Creative Financing (8:14)

How can a real estate attorney help you compared to a title company? How can you find attorneys to work with and make sure they are strong partners for real estate investment? What’s the best way to approach an attorney to work with them on creative finance paperwork, deals and closings?

How to Jump Into Probate Real Estate (11:30)

Ken is looking for advice on getting started as a probate real estate agent. 

See More: The Probate Leads System, Probate Mastery course, the All The Leads Facebook Mastermind, and the All The Leads YouTube Channel.

Mary Lee Shares Her Success Story: Trusting the Process and Providing Value (12:18)

Mary Lee describes a phenomenal deal she’s closing.  She initially marketed to the lead back in June through the mail, and they reached out to her via text message two weeks ago.  Mary Lee describes how she navigated the deal by offering three different solutions.  The house was a hoarder house.  She ended up double-siding the transaction on this house, referring the personal representative to an agent in California to help her buy a house with the funds, and the seller is super happy! Mary Lee describes how this deal is expanding her sphere of influence.  Mary Lee was about to throw in the towel on marketing to probate leads, but just like that the ROI came through! 

Chad and Mary Lee reflect on how deals like this make you fearless and solidify confidence in the value of your work.

Cold Call Tips: Follow-Ups and Converting Leads to Clients (17:35)

Dave is interested in using ringless voicemail.  How risky is it to leave automated voicemail drops; can you get sued? Chad explains why the litigation risk of ringless voicemail is growing in 2020 and suggests an opt-in strategy to protect yourself.

See More:

  1. Probate Quicksand and Pulling Personal Representatives Out Of It
  2. David Pannell’s 2020 Case Study: See how David Pannell has built wealth through probate real estate as an agent AN investor.

Price Options, Estimating Repair Costs and ARVs, and Choosing The Best Deal Structure (23:12)

Caller is looking for clarity on how to price properties out and choose the most profitable deal structure.  Chad and the caller discuss the different price options and the math behind calculating repair costs, after-repair values, and return on different listing, acquisition, or creative finance strategies. Chad also discusses how rising repair costs due to lumber market supply chains make as-is a much safer strategy right now.

See More: Rising Lumber Costs and Real Estate Investment Strategy: Why YOU Should Motivate Sellers To Skip Repairs and Sell AS-IS 

Wholetailing vs. Wholesaling Real Estate (26:28)

Chad and Jim discuss what wholetailing is, how it’s different from wholesaling, and why it’s often a better and more profitable strategy in today’s market.

Steve Shares His Experience with QLS and Chris Fontaine's Coaching (29:36)

Steve has taken Chris Fontaine’s course and is using his QLS (Quality Leads System).  Steve shares his praise for Chris’s work and how well it ties into what Chad teaches as far as creative financing and the probate real estate niche.  Overall, if you understand how to provide options you can carve out an opportunity anywhere.

Tips For Prospecting Unrepresented Probate Leads AND Winning Attorney Referral Relationships (31:09)

Mary is about to send letters out to her first list of probate leads.  She sees a section in one of All The Leads’ letter templates that mentions helping unrepresented petitioners find a qualified probate attorney.  Mary is curious how many probate leads are unrepresented at the time of filing.  Chad breaks down the statistics on pro per and pro se filings in probate. Then, Chad describes how offering to help someone find quality representation is not only a viable prospecting strategy on the lead side, but also for winning B2B relationships with attorneys by bringing them referrals they can’t solicit for themselves.

I'm an Investor. How Can I Find An Investor-Friendly Realtor Partner? (35:14)

Mary is a real estate investor.  Sometimes her prospects want to go the listing route.  Should Mary get her real estate license? Chad discusses how every agent and every investor can make more money by offering both options, whether by getting licensed themselves or working with a strong partner.

See More: Why EVERY Investor and Agent Should Have an Agent/Investor Partner.

How Asking The Right Questions While Prospecting Can Up Your Follow-Up Game  (39:10)

Eddie is sticking to his prospecting schedule and getting his cold calls and follow-up calls made.  He’s trying to find the “Sweet Spot” for making follow-up calls.  He wants to be aggressive without bothering people.  Bruce shares his strategy and conversational language for finding the follow-up sweet spot.  It all comes down to the individual’s ideal situation and adjusting your follow-up strategy to match that individual’s ideal situation.

How To Overcome the "I am not interested" Objection (41:44)

Eddie is looking for tips on handling cold calls that end with “I’m not interested, we have it all handled, *CLICK.*” Bruce explains his technique for responding to this objection before people can hang up.  It works so well, the prospect usually won’t offer any follow-up objection at all.

Old Leads: Tips For Optimizing Your Long-Term Marketing (45:59)

How old is too old? How long are probate leads worth marketing to? Chad gives his magic number at 3 years, and Jim shares a deal he closed yesterday on a two year-old lead.  The coaches offer advice on how to optimize a marketing schedule to maintain followup to old leads.  Bruce also plugs Probate Plus+ as a tool to check who still has property to sell.

Cold Calling Widows/Surviving Spouses in Probate (48:32)

How often should you call widows/surviving spouses? Chad lays out a tentative schedule, and more importantly emphasizes the value you can bring by helping surviving spouses early in the process.  Chad shares how the first widow he helped left a lasting impact. 

See More: Cold Calling Widows/Surviving Spouses in probate

 

 

 

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Episode Transcript

Probate Mastermind Real Estate Podcast #298 Transcript

A.I. Narration: [00:00:00] Welcome to the Probate Mastermind Podcast! These episodes feature: live questions, Deal Analysis, and Best-Practice Tips on everything from personal development, sales psychology, creative financing, marketing, and more.  Hundreds of Agents, Investors, and Wholesalers from around the country join the All The Leads Coaches: Chad Corbett, Jim Sullivan, and Bruce Hill , each and every week.

Be sure to subscribe at AllTheLeads.com/Podcast, and join our Free Facebook  Group " All The Leads Mastermind."

Thanks for listening to the Probate Mastermind Podcast!

(Disclaimer: As with any live recording, things happen, this audio has been cleaned up for better listening experience.  Let's go to the first caller)

Handling Cold Call Objections: "Court's Delayed; Call Me Back Later!" [00:00:38]Caller 1: [00:00:38] Hey guys, quick question. During COVID right now it's taken a lot longer to get their letter of testamentary than they'd like. Personal representatives are having trouble, or they don't think they have any authority to do anything and hold off and give you the kind of "call back later".

So my question is in situations where, the letter of testamentary has not been released yet personal representative has basically no power to do anything yet. What can you do to earn their business or get them to commit to you guys and help out?

Chad Corbett: [00:01:09] So until they get the letters. Yeah they can't really do anything as far as selling anything, but you can prepare the real property for sale, including staging personal property. So for example, we could take everything to a storage unit and have it ready to go or get it out to the garage or the outbuildings. Have a plan in place and you can do things like that to help, just get them ahead of the curve.

I like to use it. The metaphor of, everybody's familiar with Disney world. And the lines there. So whenever the gate opens, would you rather be the first person at the gate? Would you rather be just getting off the tram and then you get to stand there for another three hours?

So there's some things that we can do that you know, that don't require the letters testamentary,that we're going to have to do anyway. We're going to have to value the personal property, organized personal property, schedule a sale, get posted, no trespassing sign, get proper insurances in place.

Others. There's a lot of things, not a lot of things. There are some things that you can do that will make them feel like they're making progress and will create a bond with you. there's some service we can give them, even if they don't have the authority to sign contracts and actually convey property.

So things like that, just through asking good questions, find out what their needs are. Just, what's been the toughest thing. If you had the letter of testamentary, what would be the first thing you would do today? What do you feel is most important that you're not allowed to do right now and get them talking, get them telling you what's stressing them out, but.

Basically, other than selling anything, you can do just about everything else. You just don't want to go sell everything before the court actually gives them the authority.

Real Estate Contracts vs. Letters of Intent [00:02:45] Caller 1: [00:02:45] Got it. And are you allowed to sign paperwork to purchase a house or and put it as a closing date of when they're able to sell, as opposed to putting a closing date, like 30 days, is that possible?

It wouldn't be a valid enforceable contract. So just use a letter of intent. So for anyone who's listening, even in brokerage, like you can purchase a letter of intent to list. And, you and your broker could come up with that. It's not worth the paper it's threatened on, but it's very valuable because it creates a mental commitment.

So they know they signed something and they know that emotionally they were serious  when they signed.  And they made the commitment. It just helps insulate you against competition. It's not enforceable. And not that you would ever want to litigate that anyways, but it's something you can do to try to get, get the mental commitment to protect your position.

Okay.

Sales Psychology and Language: Future Pacing [00:03:38]Bruce Hill: [00:03:38] I'll throw in and say a lot of times when you're dealing with, these folks they're not in a position where they have their letters testamentary, they can't sell anything or do that much. It's a really great way to throw in, Hey, look, I completely get it, but in other words, let them off the hook.

I completely get it. There's not a whole lot you can do right now. You don't have to worry. I'm not going to try to sell you on anything. But real quick, tell me a little bit more about the process and I love Chad's, that question you asked If you did have your letters, testamentary, what would be the first thing you do is that how you phrase that?

I thought that was really good.

Chad Corbett: [00:04:13] Yeah. And what I'm trying to do is get them in the mindset. I want to get them in the mindset of okay. If I had it, what I commit to this guy and if I can get them to mentally internally say yes, then I'm good. And then I hand them the blue pen and the letter of intent.

Bruce Hill: [00:04:28] Yep. There's something called future pacing. In sales, you get people to start imagining themselves the results that they get down the road. And that's a really good opportunity to future pace them without them feeling like they have to buy what you're selling and you get them kind of thinking about the future.

And it's a very strong, emotional connection that forms between you and a prospect. When you can ask them about the future.

Caller 1: [00:04:52] Got it. Thanks guys.

Jim Sullivan: [00:04:53] All right. You're very welcome.

Creative Financing 101: Learn The Different Strategies and When To Use Them. [00:04:54]Caller 2: [00:04:54] Hey, what's up guys? Can you all hear me?

Jim Sullivan: [00:04:55] Yes, sir.

Chad Corbett: [00:04:56] Loud and clear.

Caller 2: [00:04:57] Cool. Few questions guys. I was listening to the call you guys put out yesterday, but the gentlemen on there asked about subject to, or actually had asked about a scenario and I think Chad had proposed a subject to, or a wrap or something like that.

Some sort of creative financing I'm trying to learn about. Subject to, and I did buy the book that you suggested Chad, on audio book. d into it yet. Just bought it this morning, but I've also found Propelio, which I guess is a CRM and a data pooling website. But anyway, they have a really good YouTube channel with a guy named Grant Kemp.

And he's supposedly really savvy with the. Subject is, he's one of the, one of the big boys when it comes to creative financing.  But my question was. I'm going to go through those.

And I'm just about to get my realtor's license along with my wife. And, we're just kinda trying to figure out how, really trying to get some value to offer these people when we're calling them, whether it'd be probate or pre-foreclosure vacant homes or whatever, you know, wholesaling a part of that, obviously listing as a, is a part of that as well and brokerage. But the creative financing, where do you guys suggest, I know you said that author of that book did have a program, which grant Kemp does also, I think the, entry-level, mastermind or whatever, it was like five grand a year.

And then he had a big boy when it was like 25 grand. And I spoke with him on the phone actually, obviously we're not trying to go that route now. We just want to learn and bump our heads. But what do you guys suggest as far as getting into creative financing and, just learning all this information I've been in the probate mastery twice. And I've got a pretty good grasp on that, but where do y'all suggest going for the creative financing education?

Chad Corbett: [00:06:30] A good starting point. We did a series back in March called 'Shift Happens' when Covid began. Have you watched episode four?

Caller 2: [00:06:38] I haven't man. I've listened to everything you guys have done except

Chad Corbett: [00:06:40] Episode four of shift happens, seven specific creative techniques that will work in this environment really well,  how to negotiate a free deal. And I've been pushing everybody to Chris Prefontaine. He has the book, 'Real Estate on your Terms.' And then he has a course, I think it's called well now it's his course, but, I think his courses either a thousand bucks or 1500 bucks, we currently don't have any affiliation with him, but he's doing it right.

He's doing creative financing with ethics. And so I've been sending everyone his way. just because I believe in what he's doing. I think he's doing it right. He's doing it ethically. It's good quality education. 1500 bucks is nothing.

Caller 2: [00:07:23] Right. And is he hitting subject to the raps, the, all the different kinds of Creative Financing?

Chad Corbett: [00:07:29] Yep, and then the other thing also my friend Brandon Turner, who does BiggerPockets real estate podcasts. He wrote a book you can go to biggerpockets.com or it's also an Amazon. It is 'Buying Real Estate With Low or No Money down by Brandon Turner.

Caller 2: [00:07:45] Never read it, but I got it.

Chad Corbett: [00:07:47] Okay. That's a good book too. Brandon's a sharp dude.

Caller 2: [00:07:50] Oh, sweet.

Chad Corbett: [00:07:51] Those are the two guys that I send people to. I have creative financing courses in my head, but I haven't gotten them out. Those are the guys that I trust to send folks to. I wouldn't, I would, yeah, I know.

There's some people on this call that have taken, Chris's QLM course and really got a lot from it for a thousand bucks. It's yeah. Honestly, it's not very much money

you know, you'll make that back 10 fold on your first deal.

Partnering With A Real Estate Attorney For Creative Financing [00:08:14] Caller 2: [00:08:14] For sure. And also I heard, you mentioned going to a real estate attorney. Here in Georgia, that's what we have to do. We don't have a title company.

Chad Corbett: [00:08:21] Yeah.

Caller 2: [00:08:22] I heard you propose, going to them and asking them how the paperwork works exactly.

Chad Corbett: [00:08:25] I'm sure you 50 grand to look over your shoulder or they'll split your deals. I don't recommend it man. Like with creative financing, it's so easy to take advantage of people are so easy to make mistakes. I actually liked to have the attorney be the actually mentoring you. And the attorney you want to choose is the one that's representing the investors who is closing deals for the investors who are buying as the courthouse steps that were bought at tax sales by and short sales.

So they have a lot of experience dealing with issues and more, advanced real estate tactics. And that person you're going to have to go to him eventually anyways and make sure that your paperwork's right, the clauses are right. So paying somebody  50 grand to mentor you and tell you how to do that stuff at a very broad level?

Just go local. Even if you have to pay the guy 200 bucks an hour for his time. That's how I did this. Like I basically sit down and wrote all my own contracts and then took them to an attorney and I'm like, alright, shoot holes in this. And they're like, where did you get this? And I'm like, I wrote it, but I trust my paperwork especially now because we did it together, me and the attorney. Hey Jim, are you there?

Jim Sullivan: [00:09:37] Yeah. That's your microphone's cutting in and out significantly. About 80% of the time. You're fine. And the other 20% is you're in a tunnel. I don't know what that music was. That music started playing...

Chad Corbett: [00:09:50] This is my first call with my AirPods Pro.

I trusted them and I shouldn't have

Caller 2: [00:09:54] And Chad, if I'm approaching an attorney like that before I really get started, just trying to get that the nuts and bolts, make sure I know what I'm doing. What do you suggest that I say to that attorney? even if I have to pay him, 250 or whatever, to sit that with him for an hour, how do you suppose

Chad Corbett: [00:10:09] So the way I did it, I found out what attorney that, the more advanced investors were using. I went, introduced myself, "Hey, listen, we'll be doing creative financing, lease options, wraps, sub 2s. and I really would like to, make sure I have my head wrapped around it. And I know exactly how to write a good contract before I start.

Can I bring my paperwork in and sit down with you? And obviously with the intent of you being my kind of exclusive attorney for closings", and they said, "Absolutely, come on over!" And we sat down and.  I think I asked them to throw an invoice at me. They weren't going to charge me because they saw it as an opportunity to earn future business for their closing business, for escrow business. So you probably won't have to pay them. Just say listen, I'm looking for an attorney that - I want to make sure that I'm doing this right. And that I'm mitigating as much risk as possible on my side, obviously, but also on their side. And in exchange, I want to have an exclusive office that I run my creative financing closings through. Am I in the right place?

And they should perk up and be like, absolutely, come on. Let's talk about it. It's so much just like with most of our vendor relationships, usually you don't have to pay or exchange money. It's reciprocal value, goes a long way.

Caller 2: [00:11:26] Never hurts it though. Cool. Thanks so much go enjoy the beach, man.

How To Jump Into Probate Real Estate [00:11:30] Ken Maxwell: [00:11:31] Hi, good morning. My name is Ken Maxwell. I'm in New York in the Bronx and I'm just..

This is my first time call in and I'm just curious to understand what is the process to get started as a probate agent. what would you recommend that we do in the beginning and continuously.

Jim Sullivan: [00:11:52] Kevin, have you spoken to any of our salespeople yet here they walked you through the program or not?

Ken Maxwell: [00:11:58] No.

Jim Sullivan: [00:11:59] Yeah. That would be a good place to start. They'll give you the best practices after the call. I'll have somebody reach out to you at this number if that's okay, but, very simply, you get the leads, we've got a fast track program. You can go through in an hour and then just start learning. We have a ton of information on our website that you can absorb in the meantime.

Mary Lee Shares Her Success Story: Trusting the Process and Providing Value [00:12:18]. Next up is four zero four six. You're up next.

Mary Lee: [00:12:23] Hi, this is MaryLee. I have a success story I want to share,

Jim Sullivan: [00:12:27] Great! We like those!

Mary Lee: [00:12:29] So, I got my first batch of letters sent out to my leads in June. And two weeks ago, I got a text from one of those leads, asking if I could help with the sale of a house. She lived in California and the property was in a different state where I live. And I said, absolutely. So what I ended up doing was giving her three options.

I was going to sell it with all of its contents, I was going to sell it. with all of the contents removed and have an estate cell company manage the interior belongings, personal belongings of the deceased, or I was going to buy it myself and deal with it. And we got a really great offer from a cash buyer who was planning on living in the house, but was also perfectly capable of managing the patient personal belongings inside the house.

It was a hoarder house filled with valuable collectibles. So it was rather interesting. I ended up, double siding the transaction and the seller is pleased. She has her fund and I referred her to an agent in California, that's going to help her buy a house in California.

So I just wanted to say, thank you.

Three months into this. I was starting to get really weary and feeling well, the system's not working for me. I'm not saying the right thing. It's not a good idea for me to invest my money, my marketing money into this program. And then I had that phenomenal success story. I also personally met the attorney at the property so that he knew what I was dealing with and he knew that I was credible.

So it was a win for the neighbors. It was a win for the buyer, the seller, the attorney, and for me. So I wanted to thank you for all the little gems along the way that you pick up, that I picked up by doing the mastery course repeatedly, and by really having faith that the system works if you follow it and do the training.

Sometimes as agents, we spend a lot of time getting ready to do the work, and we forget to take the next step and do the work. So this was a big deal and I just wanted to thank you.

Chad Corbett: [00:14:59] That's such good advice and thank you. Thank you. I'm curious though. Yeah, you should you share the negative emotions with it.

So what are your emotions now, like now? What does it mean to you?

Mary Lee: [00:15:11] I have really overcome my fear of making those telephone calls and feeling like I'm not being of service. Now I realize what a tremendous success it was and how helpful it was to everyone all around that I no longer feel intimidated that I'm bugging them or I don't have offer any value.

Chad Corbett: [00:15:34] Exactly. And you're proud now, aren't you?

Mary Lee: [00:15:37] Yes, I am. Thank you, Chad. I do feel a lot of pride.

Chad Corbett: [00:15:42] That's what probate mastery is about!

Bruce Hill: [00:15:44] Tell us what the attorney said to you.

Mary Lee: [00:15:47] Oh, I called him to let him know the transaction had closed, asked him if he needed anything from me. And then I asked for referral business  and he said, if someone needs a real estate agent, you are by far the top of the list and I absolutely will send business your way.

Chad Corbett: [00:16:03] That's amazing. Thank you so much for sharing. I'm happy. You've got momentum now. So now what? Are you doubling down?

Mary Lee: [00:16:12] I am. And I'm actually considering taking on another County. So like a good sign. and I did speak to my sales rep there and we've talked about it and I'm looking forward to helping more people because now I know people really need this service, even though when you talk to them and they give you all kinds of bits of objections, there's a reason they're giving you objections.

Right? Chad. And so by being - exactly. So I'm just really excited about it and I'm really pleased that it was so smooth. And furthermore, I need to tell you this, Bruce, my transaction coordinator has been in the business for 35 years as a transaction coordinator. She said in all my years in real estate, this is probably the most brilliant transaction I've ever seen.

All The Leads Coaches In Unison: [00:17:04] That's incredible. So thank you. Wow. That's awesome. You said you were credible. I would say you're incredible. So that's a great story. Thank you. Thank you. Good attitude. Great results. you're definitely, in first place for the winner of the week, and I know that's that why you shared it.

Mary Lee: [00:17:23] Yay!!

Jim Sullivan: [00:17:23] I think you probably inspired a lot of other people on the call.

We really appreciate it.

Mary Lee: [00:17:27] Sure. Thank you.

Jim Sullivan: [00:17:30] All right. Next up is phone number ending in one 805 five. You're up next?

Cold Call Tips: Follow-Ups and Converting Leads to Clients [00:17:36] Danny: [00:17:36] Hey guys, it's Danny. Glad to be back on the call and definitely just want to say that, her success story definitely inspired me. And that's a great on her for that. My question, of course. Glad to be back

So I've been doing this now for about a month and almost two weeks. Done a lot of growth and improvement in the way I'm handling calls, staying on calls longer, generating the leads I want, but I'm not getting so much the closes.

And I really feel like I'm at one last hurdle. I guess just the way I'm talking? Or the way I'm presenting my pitch or how I'm just talking to the prospect. And so I don't want to stop. I want to go even harder right now because I know that's when I'll, hit the Green Land.

my only question then is when I'm presenting my pitch and I've started implementing the two to three things that the family struggle with, and the open ended question, and that works really well. They either  don't have the letter of testamentary yet, or, they might feel scared, so they don't want to like fully work with us.

 

Chad Corbett: [00:18:41] Sometimes you just have to relax, Danny and David Pannell is a great example of this. He will just step back and continue to follow up until they're ready. And then sometimes it doesn't matter how much you want it or how aggressive you want to be.

It won't help you move forward.  It's not easy to get out of probate It's a process, right? Rather than looking at this as how can I be more aggressive to get what I want? Just understand that over time you'll build that momentum and you'll have enough come list me business, or come buy this business six to eight months in those start to become regular occurrences.

Understand that with a commitment to this long term comes a momentum that really can't be replaced with more phone calls or more aggressive marketing tactics. Eventually you'll get to a point where you'll have enough letters out there and enough follow up phone calls made.

You'll have Five times the deal flow, and you'll be closing tons of these deals. we can't always force people to do what's in their best interests. We can try to influence them, but some people just go back into their shell and I bring them, but it's what makes them comfortable. So being more aggressive is not always the answer is, I guess my main point is maybe you're not doing anything wrong other than not having enough patience for the process.

For some people it's different area to area areas are yeah. More fast paced cash, conversion cycles, quicker or others. It just happened more slowly. I think you're doing the right things. you show up, you do the work you role play with us. Like you, you really care my caution to you is that if you put too much focus on what more can I do?

What more can I do? What more can I do? And you don't get that result. You might be discouraged and just understand that sometimes we have to wait for them to catch up with us.

Danny: [00:20:31] All right. All right. And that makes complete sense. Yeah, I got ya.

Bruce Hill: [00:20:35] So Danny, I'll go ahead and chime in here.

I've seen you make some incredible incremental steps. Each time you get on these calls and each time we communicate and you're getting better and better each time you were learning how to be more of an influential leader, which is the most important thing. You're still very early in this conversion cycle.

So as Chad mentioned, don't get discouraged because we have typically three to four months conversion cycle in my experience. And, you're early in it. And your pipeline is filling up your rapport that you are continuing to build each time you communicate with these people is only growing. Multiple years ago I had a client of mine that said now a client and one of my best.

Referral partners who blew me off for two years, And about every eight or nine months, she would shoot me a message that just said, Hey, don't, don't give up on us. And that was the only reason I didn't give up on him. And every time she'd sent me that message, she'd say we are so busy or overwhelmed at work.

We can't even think about responding to you. Can't even think about looking at houses in one day, two years later. They call me, we go look at houses and we look every single day for a week, every day for a week. And it was a really nice price point. So I didn't mind and about halfway through, I said, I guess your schedule's lightened up.

And she said, what do you mean? We're busier now than we've ever been before! And she'd forgotten about the busy excuse that she'd been giving me. And what I took from that is she was too busy based on the priority that buying a house was in their life. Not that they were too busy to do it. It's just that it wasn't a priority to them at that point.

And  because I built rapport through the time that business came to me. And, you'd be shocked at the amount of influence that I have in times that I spend with them now because it's easy. I call, they answer the phone and it's because I was there. And had rapport when they were ready. We have to look at these the exact same way. These are our families that might just not be emotionally ready yet. And we can increase our influence over them, but we can also spend time caring about them, loving on them, building rapport so that when they. Emotionally get over that hurdle. You're the only person that's there.

Cause I guarantee almost everybody else is going to drop out. I guarantee it. So keep doing what you're doing. Keep calling and keep building rapport, stay in front of them.

Danny: [00:23:01] Gotcha. Alright. That's great. Thank you for all that information guys. And thank you for talking to me about this. I'll be sure to bring in my success story once it comes in.

Thank you guys.

Price Options, Estimating Repair Costs and ARVs, and Choosing The Best Deal Structure. [00:23:11] Jim Sullivan: [00:23:11] Sounds great! Alright, next up is so number ending in four six, six, three. You're up next.

Caller 3: [00:23:18] Thank you. I wanted to go back to, something that Chad did a couple of weeks ago and it was, he broke down his, three or four pronged, offer strategy and it was, Briefly, it was a cash sale, which was, he described his contract now cash in seven days.

second was as is, whereas, which I think he described as a contract in seven days and cash in 30 days. And then I think he put in as is, but for a retail price and I'm gathering from that he was proposing no fixes, but still wait for a conventional buyer. and then fourth was, a renovation retail where, the sellers would fix it themselves, take on all that responsibility and then sell for top retail.

What I wanted to know is  how the um, on a percentage of, after repair value basis. If I were doing it, I would think, the cash sale would be 70%. Of after repair value, less repairs or better.

And therefore it's such a good deal. You'd want to keep it for yourself. And then maybe the as is, whereas maybe 80% are, maybe the retail price, maybe 90%. And then of course the renovation retail would be a hundred percent, of retail value. Am I thinking about those percentages approximately correct?

Chad Corbett: [00:24:35] The one you left out would be number five, creative financing. Another option where you could even sell above retail price. I'm assuming the term was long enough. So if you have a house that's slightly underwater or they feel like they don't have enough equity to sell and pay commissions, then the fifth scenario would be a creative financing that would stretch your term out over two to 10 years, or you would have appreciation or principal pay down where it would appraise and they couldn't close. So that would be number five.

As far as the values. You have the traditional ARV times 70% minus repairs equals your cash price.

The problem with that formula is most people don't know how to estimate repairs. And in 2020, the cost of lumber has gone up almost 900% over the last five months, like lumber went from $200, a board foot to $950 a board foot just in the last quarter. So repairs are extremely hard to estimate period, but really this year they're more challenged because of supply like material, Supply chain was just so and easier formula is I find the as-is value. So my definition for as-is, it's kind of intuitive I suppose - but knowing your market, seeing what things sell for what pretty much all but guaranteed go under contract for. And seven days and close in 30 days with no contingencies.

What is that price? If you take that price times 75%, pretty much it comes within half - and I've done this test on spreadsheets. over and over-  It comes down to a few percentage points. It's like single digit percentage points. So that old tried and true 70% minus repairs formula. But the difference is you don't have to become a construction estimation expert to get there.

Wholetailing vs. Wholesaling Real Estate [00:26:28] So if a house would sell for a hundred grand, for sure. If we could get an under contract this week. And we could pay 75 cash and that would be a wholesale price. And that kind of gets you to the cash price and the as is price, the, as is price. I don't really have a formula. Like I don't say ARV minus 80 because every house is different.

One has foundation issues. The other is functionally obsolete. The other just needs cosmetic rehab because it had a shag carpet and pink tile. You just have to look at the neighborhood and it's an intuitive valuation, but that said most of my as is where is sales come in about 80 cents on the dollar of what I would sell them for retail if he did the work.

And they're usually bought by landlords or first time home buyers who have saved up to do their own renovation.

Jim has done a lot of flips and he might have some advice on this as well, but that's how I value my stuff.

Jim Sullivan: [00:27:20] Yeah, I agree. I'll tell you I've become more in favor of what you call wholetailing. And  it seems like the houses that I do a lot of work to, I have a hard time getting the money back out of them.

The most profitable ones are the ones. I just get them looking halfway decent, put them on the market and let somebody else take a little bit of the profits at least recently. So you're right. Chad, it's much harder to estimate the repairs now. I closed on one yesterday morning. I put it on the market this morning and I've got two offers on it already.

This market is crazy right now, okay. Go ahead. No, go ahead.

Caller 3: [00:27:55] And with the whole-tailing. are you white boxing? It, meaning, are you just kinda, if it's got a hole in the roof, obviously you, take care of the major things, but then you leave as much of the interiors to the new homeowner. or to the buyer, to just let them do what they ultimately would want to do anyway. Is that what you're thinking.

Correct.

Jim Sullivan: [00:28:15] We

Caller 3: [00:28:15] met someone

Jim Sullivan: [00:28:15] out there yesterday. He's putting on a new side deck, roof and replacing rotten facial board. And I'm replacing the AC compressor, the bare bones. But the inside of the house, I just gave it a good cleaning, vacuum the carpet and put it back up for sale.

I just find that, like Chad said, it is hard to estimate what you're going to spend on it. And it seems like you always go over and when you do it that way, you're opening it up to an owner occupant that might want to put some money into it. And you're also leaving a little bit on the table for the next investor that comes along.

Caller 3: [00:28:44] ...And that also sounds like you're getting it better than just landlord quality. It seems like a homeowner would not be as scared away if some of those bigger expenses were taken care of, is that. So are you getting 85%, 90, 90%?

Chad Corbett: [00:29:00] A good way to think about this is if I go into this house, what would it take to get it to pass on FHA or VA appraisal?

Caller 3: [00:29:09] Okay. Yep.

Chad Corbett: [00:29:10] So anything, safety, sanitary, major mechanical needs to be replaced, but cosmetic things like if it has a pink bathtub, it has a pink bathtub. It will pass in effect. Like it would pass an FHA appraisal. you can give it to people who you can talk to people who are using financing. Just think of it that way.

Like what does it take to get it to that level?

Okay.

Steve Shares His Experience with QLS and Chris Fontaine's Coaching [00:29:35] Jim Sullivan: [00:29:35] Oh, you're very welcome. Appreciate it. Next up is phone number ending in five nine one six. You're up next.

Steve: [00:29:42] Hey, good afternoon. My name is Steve. Just want to do, piggyback on what Chad said earlier with Chris Prefontaine.

I am in the QLS system, quality leads system, which, Chad recommended. Yeah, it really is a niche for the niche working probate, because now you can provide many other options. Now the shift happens that Chad did back, I think in either March or April was pretty incredible and really planted the seed.

And like Chad said, it's a little over a thousand dollars. And one of the things that Chris talks about is you buy the program, you can do deals immediately, and they fully recommend that you do everything through an attorney, which ties into what Chad said. They do offer other coaching, which you can pay for considerably, provides you with perhaps greater credibility as you start off , but he'll be the first one to tell you don't need to do the coaching, although they count it. And you can purchase the program and you can do it. And Chad, I'm trying to get Chris to contact you for a future podcast and look forward to the listening between the new England accent and the accent from Appalachia.

I'm gonna have you go through and show you guys and show you really share some incredible nuggets.

Yeah, you are. You're one of four people in the last quarter would have said you guys have to get together and do something. So I'm looking forward to meeting Chris.

Thank you, Chad.

Chad Corbett: [00:31:04] Good. I'm sure it'll be magic whenever we find time to get together. So I appreciate you connecting us.

Tips For Prospecting Unrepresented Probate Leads AND Winning Attorney Referral Relationships [00:31:09] Jim Sullivan: [00:31:09] All right next up, we have four more in the queue for seven zero two. You're up next?

Mary: [00:31:15] Yes. Hi, Mary. Hi, so this is the first time with you guys, we just started a couple of weeks back  and I got some on my list. I'm looking, I have two question quick one. So I look at one of our letters that we are, editing, if there's something in the letter that I'm not quite understanding, and if you can just, shine a light in it. So one of that we were looking at said something. yeah.

What is it? I am here to assist in a process of communication between the relevant parties and in the acquisition of an experienced probate attorney. So am I not understanding? So when people go through probate, they already have their own attorney, right? They're working through that process, is it not?

Chad Corbett: [00:32:00] About 80% of the time. So they have a choice and some people make a choice to go pro se. And before that, before the confirmation hearing, which if they go through the confirmation hearing without an attorney, it becomes pro per and so about 20% of the time people think that they can, they, and this is with the exception of central to Western Virginia, everywhere else in the country pretty much it's there to use attorneys, but in those markets where attorneys are pretty much always, very common. Still about 20% of people think, Oh, we're just going to do this on our own. And we're going to save money. Ultimately, they ended up in most cases, they end up costing themselves a considerable amount more because they have to pay for billable hours to clean up the damn mess they made.

So it's usually not in anyone's best interest to go through a bureaucratic, overly complicated process without counsel. It's a great opportunity for us to build attorney relationships by connecting them with those people who have, or would do who do not have attorneys. And that's one of the tactics we use to open the door to new referral, referral partner relationships with probate attorneys.

Mary: [00:33:15] Okay. okay. So I did not realize that 25% would be, they don't have attorney. So obviously I have it in my letter. I should have an attorney that. I have a relationship with just about wait.

Chad Corbett: [00:33:27] One of the ways you can do, one of the things we suggest is you go sit down with an attorney, like your first visit with an attorney is.

Hey, my name's Chad. I have a team of people here in Roanoke that helps families going through probate. As part of that, we need a good attorney on the team for those that don't have representation. And then it's my understanding that you can't direct market for business. So what I'd like to offer is if you and I could sit down and design a checklist or a timeline, your firm name and contact information at the bottom.

And that'll be part of every mailer.  Have I come to the right place? You have a half an hour? And then let them sit there and literally list out every single little, no matter how small every patch it could be done from the time the petition was filed, until probate is closed and then color the legal aspects become one color.

The non-legal aspects become another color. And whatever you think is passed, you can do it as a timeline, or you can do it as a checklist, but it's powerful. Jeez, because even the people who have an attorney probably haven't gotten a piece like that. Like they don't, they're waiting for the attorney to tell them what to do.

So you're giving them like a usable checklist, even if they already have to have, representation, but the ones that don't have representation, they're going to look at it and go. Oh crap. I didn't know where to do all this stuff. Maybe we do need an attorney and there's a good chance. I'll call the attorneys page and usually looking forward at a probate attorney specific.

That's what they do. Usually it's probate or any yeah. Typically attorney and an estate planning attorney are synonymous. They're usually doing both sides of the business.

I'm an Investor. How Can I Find An Investor-Friendly Realtor Partner? [00:35:14] Mary: [00:35:14] Okay, so I've been hearing, I listened to some past calls from you guys and it  seems like a lot of the people are actually real estate agents, I'm not.

I was thinking about doing it, but right now I'm not sure if I am. If my prospects do want to list it with an agent, what kind of ideal or what kind of, how would I offer that? If I'm looking for real estate agents work with me, for those people that really want to list them in the MLS , how would I approach that?

Chad Corbett: [00:35:42] First off, do you like growing your wealth, your personal net worth? And why are you paying real estate agents when you're a real estate expert? You're paying real estate commission. Why?

Mary: [00:35:52] So I don't have, I don't want to pay, but if I'm not real estate agent, and that's what my client wants to do..

Chad Corbett: [00:36:01] So what I'm saying is you're not a real estate agent yet. Are you doing ethical business or are you screwing people knowingly and openly?

Mary: [00:36:10] No,

Chad Corbett: [00:36:10] So, it was a rhetorical question. I would encourage you to get your license. There's a lot of bad advice out there about investors not getting a license. And the reason I say it's bad advice, it's going to cost you hundreds of thousands, if not millions of dollars over your career.

You know your market enough to risk your own capital, which is more than most real estate agents will do. Step up and hold yourself to a higher standard of ethics. It's Easier to compete with other investors and you don't have to refer your business out.

So now I'll get off my soap box. You should have a good brokerage partner. And a good place to find someone who understands your side of the business, if you go to biggerpockets.com and look under, I think it's community. Yeah. And you can search real estate agents who are on the bigger pockets platform. And that's a pretty good first level filter. If they have found bigger pockets, they pretty much know what value they can provide to investors, or they are an investor and they understand the investment side of the business. Either way, they have their license, they're looking to do something with it. So they're probably a good brokerage referral partner, but I would encourage you to stop giving away that 3% chunk on every deal. Cause if you have courage to risk your own money in the marketplace, you obviously know your market and if you're doing business ethically, there's no risk whatsoever in being a licensed investor.

You pay 50 bucks for a separate LLC and run a separate bank account, but it can make a huge difference over the trajectory of your career. It can be millions of dollars difference.

Mary: [00:37:46] All right. I actually did take the class. I just never went. I had some life crises coming, so I never took the test, but I was planning to do that.

I was just wondering since I don't want to wait till I'm going to be. And I'm starting now with the probate. We've been some doing some other real estate investing, but probate is, this is a new one that we always wanted to get in. Okay. So..

Chad Corbett: [00:38:08] What market are you in?

Mary: [00:38:10] I'm in Salt Lake City.

Chad Corbett: [00:38:12] Okay. Yeah. So in most major Metros, you'll have several real estate agents who have created a profile and became active on Bigger Pockets, and that means they're already working with investors.

Mary: [00:38:23] I do know quite a bit of them.  My question was more, okay. Let's say I did give it, what am I gaining? Am I gaining anything?

Chad Corbett: [00:38:30] Oh, sorry. Okay. Oh, I'm sorry if I'm asking. So you can take marketing fees, they can, for example, if you have a good lead flow, if you're giving them a lot of referrals, maybe they pay for your mail, you pay for the leads or vice versa, or they could give you cash marketing fees, they could pay you in Visa, like prepaid visa gift cards, just the marketing fees.  There's ways hat you can do it, where you won't get in trouble, but. obviously I'm pretty solid on my view that every investor should have a license. If they're not taking advantage of people, they have no risk.

Mary: [00:39:07] I absolutely agree with you. Alright, thank you very much. That's answer my question. Thank you!

How Asking The Right Questions While Prospecting Can Up Your Follow-Up Game [00:39:12] Chad Corbett: [00:39:12] Jimmers! Bueller?

Jim Sullivan: [00:39:14] We have a couple more in the queue, Chad. Can you handle a couple minutes over today? Are you good?

Chad Corbett: [00:39:19] Yeah, I'm good.

Jim Sullivan: [00:39:19] Okay. Next up is five, four, six, four.

Eddie V: [00:39:23] It always seems to cut out on you, Jim, when it comes to me! And this is Eddie here in Kansas city.

Jim Sullivan: [00:39:28] It's been the whole call today with Chad's mic, I think, but it's okay. we can understand him.

Eddie V: [00:39:33] Okay. I'm really just trying to figure out what's too much. I answered this in the, in, I think two or three calls ago, but what's too much to be bothering these people?

I know David Pannell, he does every seven days, but I'm like, if I talk to that person on Monday, let's say, do I wait another seven days to call them back? I'm just trying to find out most of the things I have questions about. I can go to YouTube or look it up on All The Leads. They just haven't been able to find it today.

Like a schedule on, if you want to be aggressive, here's how often you would call and send letters. And here's, maybe if you're not as aggressive or don't have as much time, here's what you can do. Cause I have the time to be calling people more. I just don't know. Where's the point where it's too much.

Or what's the, sweet spot.

Bruce Hill: [00:40:22] Eddie, it's Bruce. When you communicate with someone. So let's say you have already spoken with them. Whether it's in the middle or towards the end of the call, you say, Hey, by the way, were you guys going to be keeping your real estate or selling the real estate? And they say selling. Ideally what you want to do is go down a little bit of a funnel with them where you might start.

Mike. Okay. There's lots of ways to start and we don't recommend specific way, it's up to you, but it might start with something like, can you tell me a little bit more about that? Yeah, we're just not there yet. we're a couple of months away. Okay. in a perfect world, when would a couple of months be, are we looking at two or three?

Okay. There they say three months. There's a bunch of family members involved, you just ask questions and they start to share with you what their ideal experience looks like, and you really tailor your followup approach with that person around their ideal experience. So if somebody tells me three months, I'm going to call them in a month and ask if anything has changed.

If they say, yeah, we're probably a month away, I'm going to call him in a week. Hey, just want to make sure that everything was on track. Did you guys run into anything? So I really base that on the information I'm able to gather on the previous call. There's no set formula for what you're asking.

It really depends on what their timeframe is. And if you ask good questions, they will tell you what their ideal experience is going to look like.

How To Overcome the "I am not interested" Objection [00:41:44]Eddie V: [00:41:44] Okay. What if says, we've got this, we've got it taken care of.

Bruce Hill: [00:41:48] We've got it taken care of. So are we talking about the house or are they just say, Hey, we're all good, we've got it taken care of.

Eddie V: [00:41:55] They've got it all good. I think specifically, this is one that somebody just, Hey, we've got it taken care of. Thanks. Click call them back seven days again?

Bruce Hill: [00:42:04] I don't know. What do you think Chad? I would probably do a couple of weeks. It depends on how far, how long into the process they are. If they're a relatively new lead, I might do seven days. If they're a lead from three months ago, I might do a couple of weeks.

And a lot of times, Eddie, so there's a particular sales training that, I'm not allowed to say the name of on online that you and I have talked about Eddie. If you have an appropriate intro it's rare that someone's gonna say, Hey, we got it all handled, click.

I don't experience that a whole lot. But people do tell me that they have it all handled and one approach that you can use if someone says, Hey, no, we're pretty good. Is you can use the approach of letting them off the hook and saying, Hey, I'm really glad to hear that you have no idea how many people I talked to that are overwhelmed.

So I, you're probably pretty organized. And now my particular approach, if we go there is to say, Hey, before I let you go, were you guys planning on keeping the house or were you planning on selling it and just kinda letting them off the hook? it gives them a sigh of relief, Oh God, thank God.

I don't have to come up with another objection. And then you just go into a, another question and start down that line. Normally, if they feel like they're off the hook, they're not going to be as rigid.  Especially if they've said that they, I have it handled. So you might even pair it back to them when you follow up.

Hey, I know a couple of weeks ago you said you had everything handled. Just wanted to see how the process was going for you. Have you guys gotten a little closer to deciding what to do with the house, have you gotten a little further along any struggles and maybe they say the same thing, but. A few times that barrier is going to break down.

It always happens with enough communication and enough times where they hear you and remember, you naturally build some rapport.

Eddie V: [00:43:47] Okay. Okay.

Chad Corbett: [00:43:49] So Eddie, I would split this into two categories, have had dialogue, not had dialogue.  So to the root of his question, how much is too much?  until you've had dialogue with them, meaning you've had a meaningful conversation - not a hang up. Like we've got it handled hang up. That's not a contact. Then you can continue to be as aggressive as you want to be. If it's every day, if it's twice a day until you've actually had a true conversation and had two way dialogue with a person, then you should be aggressive. Once you've had dialogue with them, at that point, everyone becomes a thumbprint.

Some you want to follow up with daily. Some you want to follow up with quarterly because they're in such deep, emotional pain. You don't want to push them on others or just standing in their own damn way and making their situation worse. So you want to call them every day, but the takeaway is it depends on what you know about the situation, how aggressive you should be after you have the dialogue.

So the people who are hanging out who are saying, we've got it handled and hanging up. Call them every day until you have the real conversation. And then you'll know how often to follow up with them. Just use your intuition. once you understand the people and the situation, then it's easy to determine how often you should call them because you understand what they're going through.

You understand the value you bring to that situation and there's no, it all becomes different. And until you have dialogue, just, be as aggressive as you want to be. And that's David, he's hitting the phones every day for the first seven days. So he establishes dialogue and then based on each individual conversation, he spreads them out over a year.

I think some people he's okay, that's a surviving spouse. I'm going to call her back in three months because she'll be in a different state of mind. This guy is out of town. He had no relation to the family member. He was a friend who was appointed. I'm calling him back tomorrow because he's ready to get this behind him.

So each one becomes different once you have dialogue. But I would encourage you to think about it that way: Once you've had a real conversation with them, then you'll know what the right followup sequence is.

Old Leads: Best Way To Maximize Your Marketing Over Time [00:45:59] Jim Sullivan: [00:45:59] All right. And thank you for your patience.  Six, six two eight. You're up next.

Caller 4: [00:46:03] Hey. Yeah, so I've got some older leads. How old would you consider them to not be really useful anymore? Is there a timeframe on that

Chad Corbett: [00:46:12] Three years.

Caller 4: [00:46:14] Three years? Wow.

Chad Corbett: [00:46:17] We've had a lot of success through two year-old lists. I've personally listed them and bought them 25 months in. If you put a number to it, like where you should quit probably three years. A certain number of people, have their act together and they'll proactively move through the process quickly,  but we have a lot of different personality types in the world and a lot of different situations within that. So some people, their heads in the sand and initiate the process, then they pull back and then they just completely shut down.

They don't do anything for months. And then one day they have this breakthrough and they're more motivated than they have ever been because they're ashamed of the lack of progress made. And that happens anywhere from one day to at least two years. two years as you should. And if you had the budget and the bandwidth, I support it.

And they, All The Lead System is designed to make sure you're not spending, you're not marketing to people who have already said, we don't need your help, but we don't want your help. If you can afford it, you should be marketing for two years minimum. And every month our CRM will help you cut your list down.

So you're only marketing to the ones you haven't spoken to. But the people that need our help the most are the ones that put their head in the sand six, eight, 12 months ago. And haven't achieved anything. They're the ones that really need us and you'll find them two years out for sure.

Jim Sullivan: [00:47:39] Hey Chad, the one I closed on yesterday was two years old, had probably it was filed two years ago.

Bruce Hill: [00:47:44] Especially if you're running probate, I'm going to, I'm going to plug probate plus here really quickly. If you have an old list and you don't want to be marketing to a hundred people that are old, run pro probate plus against it. See where CC, who still has real estate. it'll show you who you should be marketing to.

One of my closings contacted me two years after his father had died that the property had been vacant for two years. Contacted me. He pulled back just like Chad just mentioned. He pulled back for another year and a half and then called me to Lish. And so that was three and a half years after the date, his father had died and it had been vacant the whole time.

So some people just take time that their situation, their emotional stability. There's a lot of different reasons to say might take time.

Cold Calling Widows/Surviving Spouses in Probate. [00:48:32] Caller 4: [00:48:32] Okay. Can I ask one more question? I appreciate your input. What would you suggest on the surviving spouse contact schedule?

I get it to where they're kind of a bummer on the first call. You don't want to call them too early, but, is maybe three months or something?

Chad Corbett: [00:48:47] Everyone's different. There's if you go to all the leads.com in the top, Type in surviving spouse. And there's a tips from the trainer video I did, I don't know, four or five years ago. And I kinda tell you the story of what encouraged me to get on the phone early on, often with surviving spouses, because so many people shy away from them. They're the people that most often need our help. The most, they just don't know it yet and they haven't admitted it.

So yes, it's not apparent in their psychology yet. So if you can make contact with them, it's a different tactic. It's low pressures to not talk about real estate. You need to really take my advice, focus on people in situation, let them know there's a service here in the community and help with anything and everything.

And just, if they feel like they're emotionally raw, just back away, listen, I'll call you in a couple months. See if there's anything that you could use help with them, but more as branding and marketing, you want them to be aware that you are you're a safety net for them, because what we know from the nursing home industry, 78.8% of senior citizens plan to die in their homes, there's no contingency plan.

What we know from the federal reserve, the average senior citizen. Yes. $24,000. Oh, an illness hospital of Saul property, just upkeeping a property, having the correct, social security checks on an app because they were getting to now they're only getting mom, their situation changed and it might take them a month or two months or three months to realize that they're not, I think, situation when they do.

I will call who they trust. So if you've made contact and you found some way to make them feel comfortable, even if that's just making them aware that there's a safety net in the community, you will be their first phone call when they need you. So don't shy away from the surviving spouses. Just remember, I'm not calling to list this house.

I'm calling to see how I can help her or help him. And if you can build rapport and that person trusts you, then when they're ready, you'll be okay. The only phone call and I've got dozens and dozens of stories like this, the very first deal I ever did was the one that gave me the courage to always make that call.

And if you search surviving spouse in the top, Of all the leads.com, you can hear the story about it, about Drusilla, or that was Pam.  It's, a softer approach, some will list right now, others will take two to three years, but now they're probably the ones that can benefit the most from our service when they realize it.

Jim Sullivan: [00:51:30] All right, guys, another great call. I want to thank each and every one of you for being here today, we had great participation. We had some really good inspiring stories. I think I know who our winner of the week is. We'll be reaching out to you and I want to challenge each of you. Take one, thought one idea. One thing that inspired you on this call, go out and put it into practice and come back Wednesday, actually for our role play, call and share with the group.

Thank you so much, guys. Stay healthy, stay productive, and we will talk to you next Wednesday at 2:00 PM. Eastern take care, everybody.

A.I. Narration: [00:52:05]  All The Leads hosts Cold Call Role Play trainings the first Wednesday of Every Month. On these calls, agents and investors can jump in the hot seat with our coaches to test their cold call scripts.  To join the Role Plays or Probate Mastermind sessions, join the All The Leads Mastermind Group on Facebook for Free.  Thanks for tuning in to Probate Mastermind!

 

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How can you protect yourself from risking your own capital when a motivated seller needs additional services (cleanouts, repairs, rehabs etc…)?

Offering Sellers Vertically-Integrated Solutions Without Putting Your Own Money On The Line Is Easier Than You Think!

The best way to position yourself and your brand is to provide unique value your competition can’t (or won’t!) offer.  How can you provide a wide-array of services when you’re just starting out? How do you respond to a client who asks “How much is this going to cost upfront?” And how can you protect yourself from risking your own capital?


 

On our 235th Mastermind Q&A call, Alesha from Ft. Myers had some questions about building her vendor list with all of these considerations in mind.  Is it important for her to find vendors that will allow invoicing at closing? How can she confidently handle seller’s questions on cost?  In most cases, vendors will get paid after they’ve done what they promised anyway, but Chad offers his advice.

Susan from the Bay Area, California builds on what Alesha was asking: She is curious if we have any documents to help secure payment at closing for additional vendor services paid for up front, as she put her capital on the line once before and got burned.  Chad recommends agents and investors not to put themselves in the position to risk their own capital by providing the services themselves (though he describes how he has made exceptions twice with elderly clients who were very honest and traditional – You can still use your discretion!).  Chad offers key advice; liens are a great tool your contractors can use to ensure payment; for clean-out companies and others, you can leverage a lender who will write their own agreement to secure payment or who will take a premium to hold the risks themselves through to closing.

Don’t be afraid to educate and ask these vendors if they are prepared for this work – they will be important team members as you come across situations where this is needed and you will all build strong business relationships with new clients this way.

 

Bonus Tip: Liquidity isn’t the only option available to a seller who wants to make improvements before selling their property – Get creative with these 5 ways to access equity for improvements when traditional financing isn’t an option: http://alltheleads.com/5-ways-access-equity-improvements-traditional-financing-isnt-option/ )

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In our latest from our Tips From The Trainer vlog series, Chad discusses 5 Ways Real Estate Agents, Investors, and Wholesalers can access and leverage equity to make improvements on a home.

Today’s video was inspired by a question from Susan B. in California. Susan has an opportunity with a home owned by a 92-year old widow with a fixed income in Palm Springs.  She wants to be able to access 75k in equity to fix the property because she knows she can make that another 150k through construction. The owner has equity but no liquidity, so most lenders don’t want to work with her. What are the best options?  Watch below!

 

 

Thanks for watching! Let us know some of your favorite creative financing strategies by dropping a comment below!

 

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